MARCH 20//DOW DOWN ANOTHER 913 POINTS//GOLD UP $5.50 TO $1481.80//SILVER UP 39 CENTS TO $12.41//CORONAVIRUS REPORT FROM AROUND THE GLOBE//FED TO THE RESCUE WITH MULTIPLE FACILITIES TRYING TO STEM THE HUGE LOSSES IN THE USA//

GOLD::$1481.80  UP $5.50

 

 

Silver:$12.41//UP 39 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

 

 

 

Gold : $1495.45

 

SILVER:  $12.57

 

 

 

COMEX DATA

 

 

 

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

today RECEIVING:  4/16

EXCHANGE: COMEX
CONTRACT: MARCH 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,478.600000000 USD
INTENT DATE: 03/19/2020 DELIVERY DATE: 03/23/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
435 H SCOTIA CAPITAL 6
657 C MORGAN STANLEY 2
661 C JP MORGAN 4
737 C ADVANTAGE 11 1
800 C MAREX SPEC 5
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 16 16
MONTH TO DATE: 1,866

 

NUMBER OF NOTICES FILED TODAY FOR  MAR CONTRACT: 16 NOTICE(S) FOR 1600 OZ (0.0497 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1866 NOTICES FOR 186600 OZ  (5.8041 TONNES)

 

 

 

 

SILVER

 

FOR MARCH

 

 

21 NOTICE(S) FILED TODAY FOR 105,000  OZ/

total number of notices filed so far this month: 4162 for 20,810,000 oz

 

BITCOIN MORNING QUOTE  $6679 UP $685 

 

BITCOIN AFTERNOON QUOTE.: $6226 DOWN 115

GLD AND SLV INVENTORIES:

 

GLD: 929.69 TONNES OF GOLD//A HUGE  CHANGE:

A PAPER WITHDRAWAL OF 7.46 TONNES OF GOLD FROM THE GLD..

 

 

 

 

 

Two transactions at the SLV today:

a)A MONSTROUS 1.026 MILLION OZ WAS WITHDRAWAL WITH SILVER UP 39 CENTS

and then

 

b) A DEPOSIT OF 3.638 MILLION OZ/

RESTING SLV INVENTORY TONIGHT:

SLV: 373.447  MILLION OZ./

 

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

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IN SILVER THE COMEX OI FELL BY A CONSIDERABLE SIZED 4357 CONTRACTS FROM 164,039 DOWN TO 159,682 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020.  THE LOSS IN OI OCCURRED DESPITE OUR HUGE 38 CENT GAIN IN SILVER PRICING AT THE COMEX. WE HAD ZERO LONG LIQUIDATION,  AS ALL OF THE LOSS IN OI IS DUE TO  BANKER SHORT COVERING PLUS AN ATMOSPHERIC EXCHANGE FOR PHYSICAL ISSUANCE AND A STRONG INCREASE IN AMOUNT STANDING AT THE COMEX. WE HAD A GOOD NET GAIN IN OUR TWO EXCHANGES OF 149 CONTRACTS  (SEE CALCULATIONS BELOW)

 

 

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

; MARCH:  00 AND MAY: 4506 AND JULY: 0 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  4506 CONTRACTS. WITH THE TRANSFER OF 4506 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 4506 EFP CONTRACTS TRANSLATES INTO 22.53 MILLION OZ  ACCOMPANYING:

1.THE 38 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

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

21.725  MILLION OZ INITIALLY STANDING FOR MAR

 

THURSDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 38 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE   UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE  SILVER LONGS FROM THEIR POSITIONS. AS WE DID HAVE A GOOD NET GAIN OF 771 CONTRACTS OR 3.855 MILLION OZ ON THE TWO EXCHANGES!

 

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

68,238 CONTRACTS (FOR 15 TRADING DAYS TOTAL 68,238 CONTRACTS) OR 341.150 MILLION OZ: (AVERAGE PER DAY: 4545 CONTRACTS OR 22.74 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR: 341.15 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 48,71% 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:          772.36 MILLION OZ.

JANUARY 2020 EFP TOTALS SO FAR: 181.61 MILLION OZ

FEB 2020 EFP’S TOTAL :  ……     259.600 MILLION OZ

MARCH EFP’S SO FAR…..          341.15 MILLION OZ (14 TRADING DAYS AND ALREADY SURPASSED FEB AND JAN MONTHLY TOTALS)

 

 

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 4357, DESPITE THE $0.38 GAIN IN SILVER PRICING AT THE COMEX /THURSDAY… THE CME NOTIFIED US THAT WE HAD A VERY STRONG SIZED EFP ISSUANCE OF 4506 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

 

TODAY WE GAINED A GOOD :  149 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: (WITH THE 38 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 4506 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 4357 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH A  38 CENT GAIN IN PRICE OF SILVER/ AND A CLOSING PRICE OF $12.12 // THURSDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY AS WELL AS A HUGE INCREASE IN QUEUE JUMPING!! 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.8240 BILLION OZ TO BE EXACT or 117% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 21 NOTICE(S) FOR  105,000 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//TODAY’S RECORD OF 244,705 IS SET WITH A PRICE OF: 18.91 (FEB 25/2020)

 

.

 

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:  5.075 MILLION OZ.//FEB 1.480 MILLION OZ//MAR: 21.725 MILLION OZ
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A CONSIDERABLE  12,384 CONTRACTS TO 553,681 AND MOVING FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE  LOSS OF COMEX OI OCCURRED WITH OUR TINY LOSS IN PRICE OF $0.90 /// COMEX GOLD TRADING// THURSDAY// WE  HAD CONSIDERABLE BANKER SHORT COVERING ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING AN ATMOSPHERIC  EX. FOR PHYSICAL ISSUED AND YET THIS WAS COUPLED WITH THAT TINY FALL IN PRICE.  ON THE TWO EXCHANGES DESPITE THE TINY FALL IN PRICE, WE GAINED A GOOD 3777 CONTRACTS  (11.75 TONNES)

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS AND CRIMINALLY SIZED 16,161 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 16,098. MAY: 0, AND JUNE. 63 AND ALL OTHER MONTHS ZERO//TOTAL: 16,161.  The NEW COMEX OI for the gold complex rests at 553,178. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A STRONG INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 3777 CONTRACTS: 12,384 CONTRACTS DECREASED AT THE COMEX AND 16,161 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 3777 CONTRACTS OR 11.75 TONNES. THURSDAY, WE HAD A TINY LOSS OF $0.90 IN GOLD TRADING…...

AND WITH THAT TINY LOSS IN  PRICE, SURPRISINGLY WE STILL HAD A GOOD SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 11.75  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (LOSS $0.90). AND IT SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WERE UNSUCCESSFUL AS WE HAD A STRONG GAIN IN OUR TWO EXCHANGES:

SEE BELOW:

 WE HAD  A HUMONGOUS INCREASE IN EXCHANGE FOR PHYSICALS  (16,161) ACCOMPANYING THE STRONG LOSS IN COMEX OI.(11,881 OI):  TOTAL GAIN IN THE TWO EXCHANGES:  3777 CONTRACTS.  WE NO DOUBT HAD HUGE BANKER SHORT COVERING, STRONG INCREASE IN GOLD OZ STANDING AT THE COMEX, AND NO LONG LIQUIDATION…..COUPLED WITH THAT TINY LOSS IN PRICE

 

 

SPREADING OPERATION FOR OUR NEWCOMERS:

WE HAVE NOW COMMENCED IN GOLD THE ILLEGAL SPREADING OPERATION \ FOR NEWCOMERS, HERE ARE THE DETAILS:

 

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

 

 

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

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

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

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX 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 FEB HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF MARCH FOR SILVER:

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

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON  ACTIVE MONTH OF MAR.BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN GOLD WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (APRIL), 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.”

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAR : 277,534 CONTRACTS OR 27,753,400 oz OR 863.24* TONNES (15 TRADING DAYS AND THUS AVERAGING: 18,502 EFP CONTRACTS PER TRADING DAY  (*NEW ALL TIME RECORD FOR A MONTHLY EX. FOR PHYSICAL ISSUANCE)

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 15 TRADING DAY(S) IN  TONNES: 863.24 TONNES

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

THUS EFP TRANSFERS REPRESENTS 863.24/3550 x 100% TONNES =24.31% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS EXPLODED THIS MONTH.

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   2087.21  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE SO FAR   863.24  TONNES  (//(15 TRADING DAYS//AND A NEW ALL TIME RECORD ISSUANCE)

 

 

 

 

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

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

1.Today, we had the open interest in SILVER FELL BY A STRONG SIZED 4357 CONTRACTS FROM 164,039 DOWN TO 159,682 AND FURTHER FROM OUR COMEX RECORD //244,710(SET FEB 25/2020).  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.

ALL OF THE LOSS IN COMEX OI WAS DUE TO 1) BANKER SHORT COVERING , 2) THE ISSUANCE OF AN ATMOSPHERIC NUMBER OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A HUGE INCREASE IN SILVER OZ STANDING AT THE COMEX WITH ZERO AMOUNT OF LONG LIQUIDATION

 

EFP ISSUANCE 4506

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  0:  AND MAY: 4506; JULY: 0 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 4506 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI LOSS AT THE COMEX OF 4357 CONTRACTS TO THE 4506 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GOOD GAIN OF 149 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES  745.000  OZ!!! AND 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: 5.075 MILLION OZ//FEB: 1.480 MILLION OZ//MAR: 21.725 MILLION OZ

 

 

RESULT: A LARGE SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 38 CENT FALL IN PRICING THAT SILVER UNDERTOOK IN PRICING// THURSDAY. WE ALSO HAD AN ATMOSPHERIC SIZED 4506 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. THE ENTIRE LOSS OF COMEX OI WAS DUE TO SPREADER LIQUIDATION AND THAT HUGE ISSUANCE OF EX. FOR PHYSICALS.

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 UP 43.49 POINTS OR 1.61%  //Hang Sang CLOSED UP 1059.94 POINTS OR 5.05%   /The Nikkei closed DOWN 173.72 POINTS OR 1.04%//Australia’s all ordinaires CLOSED UP .93%

/Chinese yuan (ONSHORE) closed UP  at 7.0783 /Oil UP TO 26.39 dollars per barrel for WTI and 29.16 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0783 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.1065 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING 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

 

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

iv) Swamp commentaries)

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

 

LET US BEGIN:

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A STRONG 12,384 CONTRACTS TO 553,178 MOVING FURTHER FROM OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS FALL IN OI WAS SET WITH A TINY LOSS OF $0.90 IN GOLD PRICING //THURSDAY’S  COMEX TRADING//). HOWEVER WE ALSO HAD AN ATMOSPHERIC EFP ISSUANCE (16,161 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2) ZERO LONG LIQUIDATION ……AS OUR TWO EXCHANGES ROSE STRONGLY IN TOTAL OPEN INTEREST..DESPITE THE TINY LOSS  IN PRICE….  BASICALLY LONGS JUST TRANSFERRED OVER TO LONDON COUPLED WITH CONSIDERABLE BANKER SHORT COVERING AT THE COMEX

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF MARCH..  THE CME REPORTS THAT THE BANKERS ISSUED AN ATMOSPHERIC SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 16,161 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 16,098, MAY: 0  JUNE : 63 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 16,161 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:  3777 TOTAL CONTRACTS IN THAT 16,161 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A STRONG SIZED 12,384 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP ATMOSPHERIC AMOUNTS OF EXCHANGE FOR PHYSICALS COUPLED WITH A HUGE BANKER SHORT COVERING.

 

 

 

THE BANKERS WERE  SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL BY $.90). THEY WERE MOST DEFINITELY  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES 11.75 TONNES WAS MAINLY DUE TO BANKER SHORT COVERING AND ISSUANCE OF EXCHANGE FOR PHYSICAL ISSUANCE. 

 

 

NET GAIN ON THE TWO EXCHANGES ::  3777 CONTRACTS OR 377000 OZ OR  11.75 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:  553,178 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 55.31 MILLION OZ/32,150 OZ PER TONNE =  1722 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1722/2200 OR 78.28% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 284,012 contracts

CONFIRMED COMEX VOL. FOR YESTERDAY:

401,858 contracts//

MARCH 20

 

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 nil oz

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
16 notice(s)
 1600 OZ
(0.0397 TONNES)
No of oz to be served (notices)
259 contracts
(25900 oz)
0.8056 TONNES
Total monthly oz gold served (contracts) so far this month
1866 notices
186600 OZ
5.8041 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 kilobar entries

 

 

 

total dealer deposits:nil oz

total dealer withdrawals: nil oz

we had 0 deposit into the customer account

i) Into JPMorgan: 0  oz

 

ii) Into everybody else: 0

 

 

 

 

total deposits:  0  oz

 

 

we had 0 gold withdrawals from the customer account:

 

 

total gold withdrawals;  nil   oz

 

ADJUSTMENTS: 

Out of HSBC:  25,981.287 oz was adjusted out of the CUSTOMER and this lands into the DEALER account of HSBC

 

 

The front month of MARCH saw its open interest register 275 contracts for a GAIN of 142 contracts.. We had 62 notices filed on THURSDAY so we gained 204 contracts or an additional 20400 oz will stand on this side of the pond as they refused to morph into London based forwards.  The bankers are seeking rapidly depleting physical supplies of gold.

 

APRIL HAD  a LOSS of 12,662 contracts DOWN to 214,763 contracts

May saw its ANOTHER GAIN of 106 contracts to stand at 409.

June saw a loss of 47 contracts up to 225,803

 

 

We had 16 notices filed today for 1600 oz

 

 

 

FOR THE  MAR 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 16 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 4 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 March /2020. contract month, we take the total number of notices filed so far for the month (1866) x 100 oz , to which we add the difference between the open interest for the front month of  MAR. (275 CONTRACTS ) minus the number of notices served upon today (16 x 100 oz per contract) equals 212,500 OZ OR 6.609 TONNES) the number of ounces standing in this  active month of MAR

thus the INITIAL standings for gold for the MAR/2020 contract month:

No of notices served (1866)x 100 oz)  + (275 OI for the front month minus the number of notices served upon today (16 x 100 oz )which equals 212,500 oz standing OR 6.609 TONNES in this active delivery month which is  a great amount for gold standing for a MAR. delivery month.

We gained 204 contracts or 20400 oz will stand for delivery at the comex.

 

 

 

NEW PLEDGED GOLD:  BRINKS

3027.500 OZ  REMOVED TO THE PLEDGED ACCOUNT JAN 10.2020/Brinks

176,211.457 oz NOW PLEDGED  JAN 21.2020/HSBC  5.4807 TONNES

380,014.443 oz PLEDGED  MARCH 2020  JPMORGAN:  11.8200 TONNES

TOTAL PLEDGED GOLD NOW IN EFFECT:  556,225.90  OZ OR 17.3007  TONNES

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE ONLY 38.337 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS.

HERE IS WHAT STOOD DURING THESE PAST 7 MONTHS:  AUGUST 27.153 TONNES

SEPT:                                                                      5.4525 TONNES

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

NOV……                                                                5.3841 tonnes

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

JAN……………………                                                    8.448 TONNES

FEB……………………………………………..                             25.611 tonnes

MARCH………………………………………………………..              6.609 TONNES

 

total: 162.524 tonnes

 

ACCORDING TO COMEX RULES:

 

IF WE INCLUDE THE PAST 9 MONTHS OF SETTLEMENTS WE HAVE 25.88 TONNES SETTLED

 

 

IF WE ADD THE 9 DELIVERY MONTHS: 162.524  tonnes

 

Thus:

162.524 tonnes of delivery –

25.88 TONNES DEEMED SETTLEMENT

 

=136.664 TONNES STANDING FOR METAL AGAINST 38.337 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:   1,788,775.742 oz or  55.63 tonnes
which  includes the following:
a) pledged gold held at HSBC   which cannot settled upon   176,211.457 oz x ( 5.4807 TONNES)//
b) pledged gold held at JPMorgan (added March 2020) which cannot be settled upon:  380,014.443 oz (or 11.820 tonnes)
total pledged gold:  556,225.900 oz or 17.30 tonnes
thus:
registered gold that can be used to settle upon:1,232,548.8  (38.337 tonnes)
true registered gold  (total registered – pledged tonnes  1,232548.8  (38.337 tonnes)

total registered, pledged  and eligible (customer) gold;   8,661,900.593 oz 269.421 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..

WHY ARE THEY NOT SETTLING?

 

THE COMEX IS AN ABSOLUTE FRAUD

end

 

And now for the wild silver comex results

Total COMEX silver OI FELL BY A CONSIDERABLE SIZED 4357 CONTRACTS FROM 164,039 DOWN TO 159,682 (AND MOVING FURTHER FROM THE NEW ALL TIME RECORD OI FOR SILVER SET ON FEB 25.2020(244,710) ECLIPSING OUR PREVIOUS RECORD, AUGUST 25/2018 RECORD (244,196).  THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9.2018/ 243,411 CONTRACTS) . OUR CONSIDERABLE OI COMEX LOSS TODAY OCCURRED DESPITE OUR 38 CENT INCREASE IN PRICING/THURSDAY.  THE LOSS IN OI WAS MITIGATED WITH 1)  A HUGE ISSUANCE OF EXCHANGE FOR PHYSICALS 2) HUGE INCREASE IN SILVER OZ STANDING AT THE COMEX, 3)  HUGE  BANKER SHORT COVERING COUPLED WITH WE ZERO LONG LIQUIDATION. 

 

 

WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF MAR.

MAR ACTIVE DELIVERY MONTH.

 

THE FRONT MONTH OF MAR HAS A TOTAL OPEN INTEREST OF 204 CONTRACTS  WITH A LOSS OF 82 CONTRACTS. WE HAD 86 CONTRACTS ISSUED YESTERDAY SO WE GAINED 4 CONTRACTS OR 20,000 ADDITIONAL OZ WILL STAND FOR DELIVERY AS THEY REFUSED TO  MORPH INTO LONDON BASED FORWARD CONTRACTS AS WELL AS NEGATING A FIAT BONUS. THEY AGAIN ARE TRYING TO FIND PHYSICAL SILVER ON THIS SIDE OF THE POND TO WHICH THERE IS NONE.

 

THE NEXT CONTRACT MONTH OF APRIL SAW A GAIN OF 31 CONTRACTS UP TO 429 CONTRACTS. THE BIG CONTRACT OF MAY SAW ITS OI FALL  BY 4558 DOWN TO 100,055

 

 

We, today, had  21 notice(s)  for 105,000, OZ for the MAR, 2019 COMEX contract for silver

THE  DELIVERY MONTH OF MARCH.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
MARCH 20/2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 751,210.230 oz
CNT
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,215,152.450 oz
Scotia
No of oz served today (contracts)
21
CONTRACT(S)
(105,000 OZ)
No of oz to be served (notices)
183 contracts
 915,000 oz)
Total monthly oz silver served (contracts)  4162 contracts

20,810,000 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

**

total dealer deposits: 0 oz

total dealer withdrawals: 0 oz

i)we had  1 deposits into the customer account

into JPMorgan:   0

into Scotia: 1,215,152.450 oz

 

 

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

JPMorgan now has 160.819 million oz of  total silver inventory or 49.62% of all official comex silver. (160.819 million/323.442 million

total customer deposits today: 556,207.600   oz

we had two withdrawals:

i) Out of CNT:  150,780.250 oz

ii) Out of Scotia:  600,423.480  oz

 

 

 

 

 

 

total withdrawals; 751,210.230  oz

We had 0 adjustments:

total dealer silver:  80.212 million

total dealer + customer silver:  321.187 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The total number of notices filed today for the MAR 2020. contract month is represented by 21 contract(s) FOR 105,000 oz

To calculate the number of silver ounces that will stand for delivery in MAR we take the total number of notices filed for the month so far at 4162 x 5,000 oz = 20,810,000 oz to which we add the difference between the open interest for the front month of MAR.( 204) and the number of notices served upon today 21 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAR/2019 contract month: 4162 (notices served so far) x 5000 oz + OI for front month of MAR (204)- number of notices served upon today (21) x 5000 oz equals 21,725,000 oz of silver standing for the MAR contract month.

WE GAINED 4 CONTRACTS OR 20,000 OZ WILL STAND FOR DELIVERY ON THIS SIDE OF THE POND

 

 

 

 

 

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

 

TODAY’S ESTIMATED SILVER VOLUME: 80,461 CONTRACTS //

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 86,399 CONTRACTS..,

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 86399 CONTRACTS EQUATES to 432 million  OZ  61.7% 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

NPV for Sprott

 

1. Sprott silver fund (PSLV): NAV RISES TO +1.68% ((MARCH 20/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -1.68% to NAV:   MAR 20/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into POSITIVE/ 1.68%

(courtesy Sprott/GATA

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

NAV 13.51 TRADING 12.87///DISCOUNT 4.75

END

 

And now the Gold inventory at the GLD/

MARCH 20//WITH GOLD UP $5.50//A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 7.46 TONNES FROM THE GLD////INVENTORY RESTS AT 922.23 TONNES

MARCH 19/WITH GOLD DOWN 90 CENTS: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 929.84 TONNES

MARCH 18/WITH GOLD DOWN $48.00: NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 929.84 TONNES

MARCH 17/WITH GOLD UP $37.60: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.75 TONNES FROM GLD INVENTORY//INVENTORY RESTS AT 929.84 TONNES

MARCH  16/WITH GOLD DOWN $30.00/ A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 12.59 TONNES/INVENTORY RESTS AT 931.59 TONNES

MARCH 13//WITH GOLD DOWN $73.60: A HUGE WITHDRAWAL OF 9.02 TONNES OF PAPER GOLD FROM THE GLD//

INVENTORY RESTS AT 944.18 TONNES

MARCH 12/WITH GOLD DOWN $55.05 TODAY:  NO CHANGE IN GOLD INVENTORY AT THE GLD/953.26 TONNES

 

MAR 11/WITH GOLD DOWN $14.95?/A HUGE WITHDRAWAL OF 10.53 TONNES//INVENTORY RESTS AT 953.26 TONNES

MARCH 10/WITH GOLD DOWN $14.25//A HUGE 8.00 TONNES OF PAPER GOLD DEPOSIT INTO THE GLD//INVENTORY RESTS AT 963.79

MARCH 9//WITH GOLD UP $1.50 : NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 955.60 TONNES

March 6/WITH GOLD UP $6.25 A MASSIVE 21.37 PAPER TONNES OF GOLD INTO THE GLD INVENTORY//INVENTORY RESTS AT 955.60 TONNES

MARCH 5/WITH GOLD UP $25.40//NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS TONIGHT AT 934.23 TONNES

MARCH 4//WITH GOLD DOWN 1 DOLLAR: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 934.23 TONNES//

MARCH 3//WITH GOLD UP 48.55 TODAY; NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 934.23 TONNES

MARCH 2//WITH GOLD UP $27.00// no change in gold inventory at the gld//inventory remains  at 934.23 tonness

FEB 28/WITH GOLD DOWN $73.00 WE LOST NO GOLD FROM THE GLD/INVENTORY REMAINS 934.23 TONNES

FEB 27/WITH GOLD DOWN $3.45: A HUGE WITHDRAWAL OF 5.86 TONNES FROM THE GLD

FEB 26./WITH GOLD DOWN  TODAY/ GOLD INVENTORY INCREASES BY 6.15 TONNES//GLD INVENTORY AT 640.09 TONNES

FEB 24/with gold up $28.40//NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 933.94 TONNES

FEB 21/WITH GOLD UP $28.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A HUGE PAPER DEPOSIT OF:2.34 TONNES   //INVENTORY RESTS AT 933.94 TONNES

FEB 20/WITH GOLD UP $9.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A HUGE 1.76 TONNES OF GOLD DEPOSIT//INVENTORY RESTS AT 931.60 TONNES

FEB 19/WITH GOLD UP $8.25 TODAY//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 5.85 TONNES//GOLD INVENTORY RESTS AT 929.84 TONES

FEB 18. WITH GOLD UP $17.00//A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.76 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 923.99 TONNES

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

MARCH 20/2020/Inventory rests tonight at 927.23 tonnes

*IN LAST 783 TRADING DAYS: -15.00 NET TONNES HAVE BEEN REMOVED FROM THE GLD

*LAST 683 TRADING DAYS;+ 151.13. TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MARCH 20//WITH SILVER UP 39 CENTS TODAY: 2 HUGE CHANGES IN SILVER INVENTORY AT THE SLV; A PAPER WITHDRAWAL OF 1.026 MILLION OZ FROM THE SLV AND THEN A PAPER ADDITION OF 3.638 MILLION OZ INTO THE SLV.////INVENTORY RESTS AT 373.447 MILLION OZ//

MARCH 19/WITH SILVER UP 38 CENTS TODAY//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: ANOTHER 5.597 MILLION OZ OF SILVER VAPOUR ADDED TO THE SLV INVENTORY//INVENTORY RESTS AT 370.835 MILLION OZ/

MARCH 18//WITH SILVER DOWN 75 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MONSTROUS 12.035 MILLION PAPER OZ ADDED INTO INVENTORY//INVENTORY RESTS AT 365.238 MILLION OZ//

MARCH 17/WITH SILVER DOWN 20 CENTS TODAY; A BIG CHANGES IN SILVER INVENTORY AT THE SLV; A WITHDRAWAL OF 3.735 MILLION OZ FROM THE SLV INVENTORY: INVENTORY RESTS AT 353.203 MILLION OZ///

MARCH 16/WITH SILVER DOWN 177 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESETS AT 356.938 MILLION OZ//

MARCH 13//WITH SILVER DOWN 155 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.893 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 356.938 MILLION OZ;

MARCH 12/WITH SILVER DOWN 77 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.119 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 359.828 MILLION OZ

MARCH 11/SILVER DOWN 16 CENTS:  A SMALL WITHDRAWAL OF .467 MILLION OZ AT THE SLV/INVENTORY RESTS AT 360.947 MILLION OZ//

MARCH 10/WITH SILVER DOWN 10 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.414 MILLION OZ//

MARCH 9/NO CHANGE IN INVENTORY LEVELS: SLV INVENTORY RESTS AT 361.414 MILLION OZ//

MARCH 6//WITH SILVER DOWN 10 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.414 MILLION OZ

MARCH 5//WITH SILVER UP 15 CENTS TODAY; A SMALL WITHDRAWAL DUE TO FEES ETC//INVENTORY RESTS TONIGHT AT 361.414 MILLION OZ..

MARCH 4/SILVER SILVER UP 3 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.880 MILLION OZ//

MARCH 3/WITH SILVER UP 44 CENTS//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: A LOSS OF 5.75 MILLION OZ FROM THE SLV../INVENTORY RESTS AT 361.880 MILLION OZ

MARCH 2//WITH SILVER UP 18 CENTS//NO CHANGE IN SILVER INVENTORY AT THE SLV..INVENTORY RESTS AT 367.632 MILLION OZ//

FEB 28/ WITH SILVER DOWN 18 CENTS: a loss of 1.867 million oz//inventory rests at 367.632 million oz

FEB 27/WITH SILVER DOWN TODAY: A STRONG GAIN OF 747000 OZ OF SILVER INTO THE SLV

FEB 26\WITH SILVER DOWN TODAY,A HUGE GAIN OF 5.319 MILLION OZ OF SILVER INTO THE SLV//INVENTORY RESTS AT 368.752 MILLION OZ

FEB 24/WITH SILVER UP 35 CENTS TODAY; NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.433 TONNES

FEB 21//WITH SILVER UP 22 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.433 TONNES

FEB 20/WITH SILVER DOWN 7 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.433 TONNES

FEB 19/WITH SILVER UP 23 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 363.433 MILLION OZ//

FEB 18/. WITH SILVER UP 42 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.433 MILLION OZ.

 

 

MARCH 20.2020:

SLV INVENTORY RESTS TONIGHT AT  373.447 MILLION OZ.

 

END

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.17/ and libor 6 month duration 0.98

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

G0LD LENDING RATE: – .19

 

XXXXXXXX

12 Month MM GOFO
+ 1.06%

LIBOR FOR 12 MONTH DURATION: 0.92

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.14

end

 

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Alasdair Macleod: Payments panic and the end of fiat currencies

 Section: 

2:34p ET Thursday, March 19, 2020

Dear Friend of GATA and Gold:

Though it seems impossible to keep track of the virtually infinite money pouring out of electronic pipelines all around the world, GoldMoney research director Alasdair Macleod today published a magnificent synthesis of what is happening and what it is likely to produce: the collapse of the financial system it is meant to save.

Macleod’s essay includes from pointed observations about gold. Among them:

“… From December 2015 the gold price began to rise from $1.050 to current levels, which is the appropriate non-fiat measure of the dollar’s purchasing power. This fact says much about gold and silver’s reaction last week, which was to fall heavily in paper form while physical demand led to shortages and premiums everywhere. And now we have credible reports of refinery output being curtailed, particularly in Switzerland’s Ticino canton, where three of the large Swiss refiners are based.

… 

After the mid-1980s, gold was used as a low-interest-rate form of collateral for the purchase of other higher-yielding assets. In recent years that function has ceased, and gold has become a plaything of bullion banks, which are skilled at using futures and forwards to soak up speculative demand in a highly profitable fleecing of speculative interest. The continuance of this game depended entirely on the Fed and other central banks setting the framework for prices of financial assets in the wider context by retaining an iron control over markets. Recent events have shown that that has almost certainly come to an end and increasingly the bullion banks see a logic in getting out of the gold and silver paper business by squaring their books. …

“The dichotomy is between the world of financial assets and the real world of people. Events over the last few weeks have raised the possibility that the central banks, particularly the Fed, in whose dollars everything is priced, are losing control over the whole financial system. Normally scared into financial submission, ordinary people are not buying the establishment’s Kool-Aid anymore. They know nothing, they do not understand what is happening, but at the margin they want precious metals at any price.

“The monetary authorities find this behaviour unacceptable. They have routinely killed off embarrassing price rises in gold and silver as the means of subduing public interest. The prospect of monetary inflation following a coronavirus lockdown will make it impossible to repeat the exercise successfully because of the monetary inflation involved.

“Meanwhile bullion banks are in a bind, having far greater gold and silver obligations than their access to physical gold for cover. These obligations are overwhelmingly in paper, futures and forwards, as well as liabilities to customers with unallocated accounts. Anecdotal evidence also suggests that customers with allocated accounts have already had difficulties getting physical delivery in recent years. Therefore, while public demand for physical bullion has been increasing, the bullion establishment has become badly exposed to the monetary consequences of the coronavirus pandemic.

“Central banks and the Bank for International Settlements cannot afford to see a bullion bank blowup and doubtless have been working behind the scenes to prevent one. Gold is likely being leased to the bullion banks, giving them some liquidity on paper, but in practice it never leaves the central bank’s vault and therefore its possession. Futures are sold with the purpose of triggering the speculators’ stops, creating an avalanche effect on the price. The intention is for bullion banks to either get at least square in their positions or preferably long, because they know that when the suppression exercise is over, the price of gold and silver will rise dramatically in the face of fiat money expansion.

“What they don’t know yet is the fate of fiat currency. We know from analysing John Law’s experience in 1720 that in 2020 we are likely to see the end of it very soon. Conventionally expressed, that gives gold and silver prices of infinity and moves of a hundred bucks or so are immaterial.”

Macleod’s analysis is headlined “Payments Panic and the Ending of Fiat Currencies” and it’s posted at GoldMoney here:

https://www.goldmoney.com/research/goldmoney-insights/payments-panic-and…

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

END

Payments panic and the ending of fiat currencies

The unilateral response from governments to the coronavirus is to helicopter money to people and their businesses in unlimited quantities. Their priority is to keep the debt-driven Keynesian show on the road, and policy makers are approaching the task with unseemly gusto.

There was evidence that the credit cycle was already on the turn with the global economy entering its regular period of financial and economic crisis even before the coronavirus hit. Thinking it is only a matter of dealing with the pandemic before returning to normal is therefore a common and fatal mistake. The combination of current events is leading to an infinite problem: central banks, and the Fed in particular, are trying to backstop everything and they will undoubtedly fail.

The central issue is the dawning inability of the Fed, in charge of the world’s reserve currency, to keep financial markets under control. The quantities of money required to rescue the US economy and dollar-centric supply chains abroad are potentially far greater than anyone realises and will destroy not just the dollar, but the whole fiat money system of rigged financial markets upon which debt financing depends. The EU is in a similar but more parochial fix with the addition of a banking system visibly on the verge of collapse. 

The timescale for the demise of unsound fiat currencies is likely to be very short, by the end of 2020 – exactly three centuries since a similar fiat currency experiment failed in John Law’s Mississippi bubble.

Introduction

Doubting Thomases must surely realise by now that the central banks are in danger of losing control over financial market prices, not just for a short period of time, but more drastically than that. Besides a new round of quantitative easing announced last Sunday – $500bn into Treasuries and $200bn into agency debt – the new target for the Fed funds rate was lowered to 0 – ¼ %. This 1% cut followed an earlier reduction in the funds rate of ½ % as well as last Thursday’s announcement of a $1.5 trillion cap on three-month and one-month repos. To these sums we must add the $60bn in purchases of coupon-bearing securities also announced last Thursday.

Taken together, that is a liquidity injection into the American banking system of $2.206 trillion, which in context will be the equivalent of a 59% increase in the Fed’s balance sheet since the repo crisis started in September.

A further source of monetary inflation is in the dollar swap lines with the Bank of Canada, Bank of England, Bank of Japan, the ECB and the Swiss National Bank.

Clearly, the Fed is doing everything it can to achieve a number of objectives simultaneously. It needs to ensure the funding is in place for the US Government, which is dramatically increasing its spending. It must ensure the banks have sufficient reserves so as not to foreclose on its customers, thereby preventing a deflationary contraction of bank credit. It needs to inject liquidity into wholesale money markets to ensure no financial entity becomes insolvent. It is trying to anticipate future negative effects of the coronavirus, which are likely to be far greater than anyone dares admit in public. Heroically, the Fed’s public mission is to rescue the American economy single-handedly by providing the money required. And last but not least, it must retain control over financial market pricing to deliver these objectives.

Over the last fortnight that control was demonstrably lost. Equities crashed and government bonds soared, but values of the latter were somewhat false, because in the absence of liquidity market makers increased their bid/offer spreads and reduced their size; that is to say the quantity of bonds they were prepared to deal in on the widened quote were nominal. As well as volatility, the market makers, being brokerage subsidiaries of the banks, were restricted in the amount of liquidity provided by their parents, reflecting a wider systemic shortage.

The Fed hopes that by providing an unprecedented quantity of dollar liquidity that normality will return, and all its objectives listed in the penultimate paragraph above can be achieved. But, returning to a theme of recent Goldmoney Insights, the relationship between the dollar and financial assets has become eerily similar to that between John Law’s livres and his Mississippi bubble three-hundred years ago. The massive printing of livres and livres bank credit to support Law’s asset bubble failed, firstly by undermining the purchasing power of his livres to zero measured against gold and silver, and then by failing to prevent a collapse in the targeted financial asset, his Mississippi venture.

Today, the situation is only different in that the Fed is trying to save the status quo rather than construct a new one. But from December 2015 the gold price began to rise from $1050 to current levels, which is the appropriate non-fiat measure of the dollar’s purchasing power. This fact says much about gold and silver’s reaction last week and this, which was to fall heavily in paper form, while physical demand led to shortages and premiums everywhere. And now we have credible reports of refinery output being curtailed, particularly in Switzerland’s Ticino canton where three of the large Swiss refiners are based.

After the mid-eighties, gold was used as a low interest rate form of collateral for the purchase of other higher-yielding assets. In recent years that function has ceased, and it has become a plaything of bullion banks, skilled at using futures and forwards to soak up speculative demand in a highly profitable fleecing of speculative interest. The continuance of this game depended entirely on the Fed and other central banks setting the framework for prices of financial assets in the wider context by retaining an iron control over markets. Recent events have shown that that has almost certainly come to an end and increasingly the bullion banks see a logic in getting out of the gold and silver paper business by squaring their books.

Estimating dollar liquidity requirements

It is worth noting that the global economy as well as that of the US is on the cusp of a credit cycle that was turning into its regular contractionary stage, even before the coronavirus exploded onto the world stage. The massive expansion of both base money and bank credit since the Lehman crisis coupled with American trade protectionism replicates the situation in late-1929 when the Wall Street crash began, the Dow fell 89% and the great depression followed. The twin vectors behind those events are of different relative force today. Then, trade tariffs were jacked up 30% on average by the Smoot-Hawley Tariff Act, more than today’s American protectionism against Chinese imports. But this time, the expansion of money and bank credit over recent decades is far, far larger, and we are entitled to expect a synergistic effect between these two factors leading towards a similar result.

That being the case, the coronavirus is an added burden on the world’s economy which was already tipping into a slump, and will be particularly damaging for its reserve currency, the dollar. The disruptions the pandemic brings to supply chains are a dramatic advancement and escalation of what would have happened over time anyway.

Across all businesses there are those which have assets that can be sold and have cash at the bank to draw down, and there are those whose cash and liquid assets are limited or barely exist. When the former category draws down on cash reserves, deposits at the banks are reduced. The banks then have to either borrow the difference in money markets or reduce their holdings of assets, usually in the form of loans, Treasury bills, Treasury bonds, commercial bills or commercial bonds. Inevitably, the choice will devolve down to a reduction in the banks’ individual balance sheets, satisfied by reducing their loan books and by asset sales.

On the other hand, there are businesses running on overdrafts, which will find out if their banks are still good for pre-agreed overdraft ceilings. Given the drawdowns on business deposits from their more liquid customers, it is likely they will seek to reduce overdraft ceilings to help balance their books.

But businesses also face decisions as to whether they and their customers will survive the pandemic. Government promises to help is usually offered in loans, in which case they will have to be repaid, merely putting off the evil day. Many SMEs will choose to close in order for their owners to rescue what they can rather than face a drift into bankruptcy. Some will try to survive by cutting costs, such as airlines laying off staff on unpaid leave, or by lengthening payment times, passing the problem to their suppliers.

The notional exposure of America’s banks to this aspect of difficulties faced by private sector businesses is illustrated in outstanding loans and leases, which according to the St Louis’s FRED database stands at $10.12 trillion.

Screen Shot 2020 03 19 at 11.48.29 AM

FRED’s chart above shows how the last credit crisis caused a contraction in outstanding loans and leases, and we know that this crisis is bound to do so again. But what will be the scale of the developing credit crisis, given that by bunching payment issues the coronavirus has increased the impact and its suddenness?

To estimate a ballpark figure, we should look at gross output (GO). Unlike GDP, which captures final sales value, GO includes the payments between production stages, and is illustrated in FRED’s chart below.

Screen Shot 2020 03 19 at 11.48.46 AM

The effect of the last credit crisis in 2008-2009 was significant, knocking about $4 trillion off the total. This time, with the added burden of widespread supply chain payment failures it obviously will be far larger. We can only guess what a national shutdown will do. If, as in Italy and France, Americans end up only being able to buy pharmaceuticals and food, that would preserve only 8% of GO. Payment failures will therefore be a significant part of the remaining $36 trillion of the GO statistic.

Not only are all goods, but services are affected as well. And supply chains are not as simple as the term might suggest with a one-dimensional series of inputs leading to a final product. Inputs from many other sources are required in each step of the way. It is no exaggeration to say that the interconnectedness of all these processes accounts for nearly all of private sector GO.

That payment failures are beginning to have an impact is seen in the enhanced level of repo facilities daily extended by the Fed. It can only escalate from here.

Dollar payments in supply chains are not confined to US domestic manufacturing but apply to dollar-denominated chains of imported goods in other jurisdictions, of which Apple’s iPhone manufacturing supply chain is a prime example. All it takes is one small delivery hitch and suddenly expected payments that do not materialise have to be covered all down the line, We cannot know the true extent of the likely problem, but with major economies being disrupted by the virus for more than a month or two and with everyone working on a just-in-time basis the banking system will end up with deposit drawdowns, demands for increased overdraft facilities and non-performing loans totalling as much as two or three times FRED’s total loans and leases outstanding from businesses, not just in America, but in dollar trade settlement chains abroad as well.

No wonder there are emerging liquidity issues in the system. But with the Fed and the US government promising to underwrite all businesses facing difficulties as a consequence of the virus, the inflationary consequences for the dollar will be staggering. The responsibility of the dollar being the world’s reserve currency is that the Fed’s remit must also cover both domestic and foreign dollar settlements if it is to continue to maintain control over pricing in American financial markets.

Realistically, the chances of success are close to nil, partly because the Fed will be slow to offer facilities to those parts of dollar-settling supply chains outside the countries with existing currency swap agreements. China, South Korea and Taiwan, and others will have to resort to liquidation of dollar reserves, including US Treasuries. And then there are those that rely on dollar funding in the broader sense: Credit Suisse’s Zoltan Pozsar highlights Scandinavia, Southeast Asia, Australia and South America, to which we can add the entire shadow banking systems in London and all other non-US financial centres.[i]

Unless it implements Section 133.3 of the Federal Reserve Act (which allows the Fed to lend directly to non-banks) the only channel for liquidity flows is through commercial banks in the federal system. Even if the Fed makes infinite liquidity available to them, the Fed will be unable to stop banks from managing their risks as they see fit. Banks will at the margin reduce their balance sheet leverage and collectively risk descending into a cycle whereby collateral liquidation leads to falling values for financial assets, forcing further liquidation of collateral when formally secure lending becomes uncovered. This was one of the evils of fractional reserve banking identified by Irving Fisher in the great depression. And logic simply tells us liquidity provided by the Fed will be readily absorbed by the banks and not passed to many of their riskier customers, particularly in the SME sector.

We should be in no doubt that while it is easy for the government and its central bank to promise funds to businesses so they can continue to trade, it is virtually impossible in practice for them to do so in a timely manner. But if, as hopefully this article has demonstrated, payment disruption and failure is likely to be on a scale far greater than outstanding loans and leases, the debauchment of the currency will without doubt undermine its purchasing power. As we have shown above, the total settlement chain at risk onshore in the US is captured in GO, which officially stands at $38 trillion. For comparison, the amount of money in public hands, that is cash, checkable deposits and savings deposits, is just under $14 trillion, the bulk of which is matched by bank credit, which will almost certainly contract. If the US Government and the Fed are to make good on their promise to rescue businesses from the coronavirus, they are committing themselves potentially to helicopter considerably more money through the banks than is currently held in public hands.

It cannot happen in one hit: that would be absurd. It is more likely that it will be dispensed in tranches, of which last week’s $2.206 trillion is the first. Whether Mnuchin’s announcement of $1.2 trillion being helicoptered nationwide is part of or additional to that announced by the Fed is immaterial. Once that is absorbed, not only would markets depend on further tranches being rapidly announced and rapidly delivered, but they will begin to discount the consequences as well.

Screen Shot 2020 03 19 at 11.49.13 AM

Given that the Fed is backstopping it all by expanding its own balance sheet, in a matter of a few months its monetary base will have to expand to unknowable multiples of the current $3.44 trillion, shown in FRED’s chart, above.

The government funding problem

It will be impossible for the Fed to dramatically expand the monetary base without undermining the purchasing power of the currency, particularly since it had already been expanded by an unprecedented 350% in the wake of the Lehman crisis eleven years ago. The principal method deployed is expected to be the same, that is to say quantitative easing. The advantage to the Fed is QE funds the government borrowing requirement and bolsters commercial bank reserves at the same time.

Before the current hiatus the Congressional Budget Office forecast a Federal Government budget deficit of just over a trillion dollars. Government spending, not least on coronavirus related issues, is likely to be greater than forecast, and tax revenues, if they are not merely put into abeyance will fall considerably. Consequently, the deficit will rise, and it is conceivable it will be running at twice the forecast level. When markets settle down from recent events, traders will be asking themselves who else, other than the Fed, will buy US Treasury bonds. And then there will be a further question: with banks, non-banks and foreigners dashing for dollar liquidity, who will buy their existing holdings of Treasury debt?

The funding problem can only be estimated in an omnibus fashion, by wrapping up government borrowing needs, bolstering bank balance sheets, dealing with global payment failures etc. into one solution. Before the coronavirus hit and began dislocating the entire financial system, credit cycle analysis assumed a slump could double the budget deficit, adding a further trillion or so to existing government funding requirements. Rarely has consideration been given to additional systemic issues because they were unknown. That is no longer the case.

Given that through QE or asset purchase programmes all the funding and liquidity problems highlighted in this article are likely to be addressed, it is no exaggeration to say that by the year-end that could involve doubling or tripling the quantity of US Treasury bonds and bills in the secondary market, perhaps taking them from $16.7 trillion currently to over $40 trillion. Then there is a secondary problem: of the existing pile of $16.7 trillion, $9.8 trillion is owned by foreigners, likely to be forced to sell them down in the search for liquidity or simply to avoid portfolio losses.

Since we are focused on the dollar as reserve currency, we have not even scratched the surface of problems in other currencies. The eurozone in particular has banking problems, which given the likely economic and financial effects of the coronavirus will see major bank failures in a matter of months, if not in weeks.

Only last night the ECB announced a further €750bn stimulus to its existing asset purchase programmes, from which individual nations will fund their promises to subsidise industry and employment. The British and European governments stand ready to shower their populations with money. The British this week announced a package of support amounting to an estimated £320bn, helicoptering money and bridging loan facilities to small businesses everywhere. Echoing Mario Draghi, in the words of both Boris Johnson and his Chancellor Rishi Sunak repeated multiple times, whatever it takes.

France announced a similar €300bn package as well, Germany has promised €500bn, and others are following suit. The ECB’s €750bn is already too little. Everywhere, the fiat currency solution is print, print, print. With interest rates at or below the zero bound it is all that central banks can do, while their governments will face declining tax revenues as well as increasing welfare commitments.

Thus far, there is no recognition yet of the pan-European supply chain problem. The EU’s GO is similar in scale to that of US GO, additional to all announced inflationary support allocated so far.

It is suddenly becoming clear that the global Keynesian experiment of the last ninety years faces an existential crisis. The explosion of funding requirements can only be satisfied so long as bond markets maintain current valuation levels. In other words, we have become dependent and complicit on markets rigged by the state and are facing the same fate as that of John Law’s France exactly three hundred years ago. Once the problems started, his unbacked currency became valueless in about ten months. As then, the fate of financial markets today depends entirely on fiat currencies, because their issuers are becoming the only buyers of their own debt.

Price inflation; myth and reality

Government statisticians have succeeded in goal-seeking a two per cent rate of price inflation by statistical method. Part of the market control mechanism has been for this and other government statistics to be accepted by investors as true. That being the case, a low-growth outlook, in other words one that does not threaten a rise in price inflation, broadly justifies the current pricing levels of government bonds. Given their personal experience that the rate of price inflation is actually considerably higher, one would think that managers of bond funds would realise the deceit, but the fact is that they are blind to it. Being prepared to ignore the reality of their own experience and accept the authorities’ version of the rate of price inflation is central to government control over price levels in financial markets. If, as independent sources such as Shadowstats.com and the Chapwood Index conclude, prices are rising at approximately a ten per cent clip then a 10-year maturity US Treasury bond should have a gross redemption yield of at least that, implying a market price below well below fifty cents on the dollar.

A collapse in US Treasury prices of that magnitude would be a disaster for government finances, and the whole Keynesian scheme. The cost of debt funding would rapidly spiral out of control. Given our thesis that funding payment failures and other objectives will require a veritable explosion in the quantity of government debt forced on the market, it is almost certain the dollar’s value in terms of purchasing power will be fatally compromised. It will initially be reflected in the dollar price of gold, as described in the introduction to this article.

Supplies of the basics that people buy for their day to day existence are already in short supply with supermarket shelves empty, which tells us that following the initial stages of the current economic and financial dislocation prices will rise, even before taking into account the acceleration of monetary debasement already in the works. Price rises of these staples could lead to price controls, which will only make things worse, a playbook seen throughout history from the time of Diocletian (284-305AD) onwards.

But this inflation is different in many ways. Instead of being primarily a collapse of purchasing power driven by the public’s rejection of their state’s fiat currency, it will be driven by a matching, but slightly lagging collapse of the whole panoply of financial asset values. That at least is the lesson of the only other recorded instance of it happening, John Law’s pre-Keynesian scheme.

The outlook for gold and silver

The current market hiatus has seen a breakdown between financial markets and physical bullion, with supplies of coin and small bars sold out. To add to supply problems, it is rumoured that the three major Swiss refiners based in the Ticino canton are either in lockdown or having logistical problems.

The dichotomy is between the world of financial assets and the real world of people. Events over the last few weeks have raised the possibility that the central banks, particularly the Fed in whose dollars everything is priced, are losing control over the whole financial system. Normally scared into financial submission, ordinary people are not buying the establishment’s Kool-Aid anymore. They know nothing, they do not understand what is happening, but at the margin they want precious metals at any price.

The monetary find this behaviour unacceptable. They have routinely killed off embarrassing price rises in gold and silver as the means of subduing public interest. The prospect of monetary inflation following a coronavirus lockdown will make it impossible to repeat the exercise successfully, because of the monetary inflation involved.

Meanwhile, bullion banks are in a bind, having far greater gold and silver obligations than their access to physical gold for cover. These obligations are overwhelmingly in paper, futures and forwards, as well as liabilities to customers with unallocated accounts. Anecdotal evidence also suggests that customers with allocated accounts have already had difficulties getting physical delivery in recent years. Therefore, while public demand for physical bullion has been increasing, the bullion establishment has become badly exposed to the monetary consequences of the coronavirus pandemic.

Central banks and the Bank for International Settlements cannot afford to see a bullion bank blow-up, and doubtless have been working behind the scenes to prevent one. Gold is likely being leased to the bullion banks, giving them some liquidity on paper, but in practice it never leaves the central bank’s vault and therefore its possession. Futures are sold with the purpose of triggering the speculators’ stops, creating an avalanche effect on the price. The intention is for bullion banks to either get at least square in their positions or preferably long, because they know that when the suppression exercise is over, the price of gold and silver will rise dramatically in the face of fiat money expansion.

What they don’t know yet is the fate of fiat currency. We know from analysing John Law’s experience in 1720 that in 2020 we are likely to see the end of it very soon. Conventionally expressed, that gives gold and silver prices of infinity, and moves of a hundred bucks or so are immaterial.

end

 

the dollar’s huge rise is spurring foreign exchange interventions from our other central banks

(Reuters)

Dollar rampage spurs FX interventions, speculation of big G7 move

 Section: 

By Karin Strohecker and Sujata Rao
Reuters
Thursday, March 19, 2020

LONDON — From Brazil to Norway, policymakers are leaping to defend currencies against the onslaught of the dollar, which scaled three-year peaks today, raising speculation that a joint move by the world’s biggest central banks may be in the offing.

Unlikely, most market-watchers say. But these are unusual times, and Norway’s central bank earlier in the day threatened to intervene to lift the crown, a step it hasn’t taken in more than 20 years.

… 

The warning followed the crown’s 30% plunge versus the dollar in less than three weeks, though oil’s price collapse contributed.

But the dollar’s brutal ascent — up 6.5% this month against a basket of peers — has sent almost every other currency reeling. Amid the crisis caused by worries about how badly the coronavirus pandemic will hit the world economy, investors, and companies around the world have been scrambling to get their hands on the market’s most liquid currency. …

Could the answer lie in large-scale global intervention to tame the greenback?

Most top central banks, with the exception perhaps of Switzerland, are committed to letting markets determine exchange rates. Yet many welcomed Norway’s shift; Danske Bank economist Frank Jullum urged it to buy crowns “by the bucketful.”

One issue is that piecemeal central bank interventions are often doomed to fail as individual economies usually lack the firepower to influence currency markets for any length of time But shock-and-awe moves such as the coordinated Group of Seven moves to weaken the yen, seen after the 9/11 terror attacks or the 2011 Japan tsunami, have worked. …

… For the remainder of the report:

https://www.reuters.com/article/us-health-coronavirus-interventions/doll…

* * *

iii) Other physical stories:

J Johson’s commodity report.

https://www.jsmineset.com/2020/03/20/so-far-14-central-banks-dropped-their-rates-in-march-2/

 

So Far, 14 Central Banks Dropped Their Rates In March

Posted March 20th, 2020 at 9:31 AM (CST) by J. Johnson & filed under General Editorial.

 

Good Day,

 

It seems too much is going on; the news is overwhelming. We‘ve witnessed over the past week our Federal Reserve cut rates to zero with reactions from Canada, and the UK, but not Europe. We all know that Repos are accelerating, more than doubling the doublings since September and the creation of new money is like watching Mount St. Helen’s and Krakatoa going off at the same time with falling debris not affecting the population, yet. The fast-rising value in the US Dollar, is acting like a blow off top, as I witnessed the Dollar gain another 200+ basis points during the day. I am also quite certain that our long-term focus, over all these years, regarding the devaluation of the Dollar and the rise of precious metals, is much closer to happening.

 

What I haven’t heard or seen, is how many central banks have adjusted their rates? Since I watch currencies, I figured my sources would have an article, in kind words, telling me what’s happening up there in the canopy of international currency, but alas. Maybe I need another set of sources, considering! Sometimes, asking a search engine a question that gets an accurate response is trying, very trying, but sometimes we can get good answers! Like this one I found. It’s not a story, but a list that shows 14 central banks have already reduced rates so far this month. (click the “date of change”).

 

While main stream media continues to fail to deliver, with the banks running rates to the ground, and in a fear type way, it’s comforting to come here every day and to listen to the boys; Jim, Bill, Dave, and Denny, talk about things the media can’t/won’t, as the world’s financial system seems to be melting down before our very eyes. The Boys Challenge the Narrative with big breaths and common sense … stay close and as always …

 

Stay Strong!

Jeremiah Johnson

JeremiahJohnson@cableone.net

More JJ posts can be found with purchase of a JSMineset subscription

 

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: 67.0728/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1065   /shanghai bourse CLOSED UP 43.49 POINTS OR 1.61%

HANG SANG CLOSED UP 1059.94 POINTS OR 5.05%

 

2. Nikkei closed DOWN 173.72 POINTS OR 1.04%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 102.09/Euro RISES TO 1.0728

3b Japan 10 year bond yield: RISES TO. +.09/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 110.16/ 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:: 26.39 and Brent: 29.16

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.28%/Italian 10 yr bond yield DOWN to 1.65% /SPAIN 10 YR BOND YIELD DOWN TO 0.79%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.83: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.51

3k Gold at $1506.50 silver at: 12.66   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 10/100 in roubles/dollar) 62.99

3m oil into the 26 dollar handle for WTI and 29 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 110.16 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 .9816 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0536 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.28%

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 1.00% early this morning. Thirty year rate at 1.62%

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

6.  TURKISH LIRA:  UP  TO 6.5141..

Quad-Witching Craze: Futures Blast Off, Nasdaq Limit Up… But Can It Stick

After a week of vomit-inducing limit up, limit down market moves, the week is set to end with another rollerocoaster bang, as the notorious gamma-slashing quadruple witching – the expiration of options and futures contacts – coincides with the ongoing market volatility.

Having started off the overnight session on the backfoot, Emini futures then surged on Friday along with stocks and bonds globally in a day of solace for risk parity funds, as investors relished the unprecedented government measures to shield jobs and economies from the accelerating coronavirus pandemic, while the dollar slumped after a record-breaking eight-day rally. U.S. stock index futures firmed over 4%, with Nasdaq futs briefly hitting limit up at the end of another torrid week for financial markets that have been battered by growing evidence of the economic damage from the coronavirus pandemic.

However, in this market past performance is certainly no guarantee of future returns, and never more so than on days like today when a surge in trading is expected: volume over the last four weeks has been higher than past quadruple witching days, according to Bloomberg. Adding the expiration of these contracts means there could be price swings throughout the day – and especially at the open and close – in a market that has recently been mainly a one-way street of sell orders.

Meanwhile, with equity futures surging in the pre-market, and open interest on S&P 500 options rising to the highest on record, that’s just a taste of what’s to come in the trading day ahead. Not to mention it’s Friday, and as Bloomberg notes the tendency has been to cut positions ahead of the weekend to hedge against headline risk.

Shares also jumped across Europe, where stocks were set for the best back-to-back gain since 2008 on the ECB’s unprecedented easing. The Stoxx 600 Oil & Gas index jumped as much as 8.3% after crude oil saw its biggest single-day jump on record and are continuing to rise after U.S. President Donald Trump waded into the price war between Saudi Arabia and Russia. The Stoxx 600 Travel & Leisure Index also gained as much as 9.8%, the most intraday since Oct. 2008, and outpacing a broader market rally. The sector rises for a second day after closing at the lowest since June 2012 on Wednesday.

Earlier in the session Asia was sharply higher as well: markets added more than 7% in Seoul but were closed in Tokyo for a holiday.

Taking advantage of extremely thin liquidity, Treasuries rose, with the 10Y TSY yield dropping below 1%, as bonds across Europe also gained.

In FX, the dollar weakened against its major peers after vaulting more than 8% in the previous eight sessions. As it reversed, at one point the Bloomberg dollar index fell the most in more than four years.

The pound, Australian dollar, Norwegian krone and South Korean won all leaped more than 2% versus the greenback, as dollar-swap lines kicked in at more central banks.

After surging the most on record, oil extended its rebound from a day earlier, but it was still down double digits on the week.

Market Snapshot

  • S&P 500 futures up 3% to 2,474.75
  • STOXX Europe 600 up 3.8% to 298.82
  • MXAP up 3.2% to 126.70
  • MXAPJ up 4.9% to 411.64
  • Nikkei down 1% to 16,552.83
  • Topix up 1% to 1,283.22
  • Hang Seng Index up 5.1% to 22,805.07
  • Shanghai Composite up 1.6% to 2,745.62
  • Sensex up 4.5% to 29,560.24
  • Australia S&P/ASX 200 up 0.7% to 4,816.63
  • Kospi up 7.4% to 1,566.15
  • German 10Y yield fell 7.8 bps to -0.271%
  • Euro up 0.9% to $1.0788
  • Brent Futures up 5.8% to $30.13/bbl
  • Italian 10Y yield fell 68.6 bps to 1.568%
  • Spanish 10Y yield fell 11.8 bps to 0.761%
  • Brent Futures up 5.8% to $30.13/bbl
  • Gold spot up 2.6% to $1,509.79
  • U.S. Dollar Index down 1.3% to 101.38

Top Overnight News from Bloomberg

  • Treasury dealers’ holdings of long-dated paper jumped the most on record in March as leveraged funds rushed out of large trades held against futures, causing liquidity to quickly evaporate
  • German Finance Minister Olaf Scholz threw his weight behind the government potentially taking stakes in companies to boost their capital and help offset the impact of the coronavirus
  • U.K. Chancellor of the Exchequer Rishi Sunak and Prime Minister Boris Johnson will set out moves to support companies hit by the pandemic, after what officials described as very positive talks with business leaders and unions
  • Italy Prime Minister Giuseppe Conte is weighing extending the ban on non- essential activities until at least May 1, daily La Stampa reported
  • The World Health Organization said the coronavirus pandemic is now infecting people at a faster pace. It took three months for the first 100,000 cases, but only 12 days for the next 100,000
  • Hong Kong suffered its biggest daily increase in new coronavirus cases since the pandemic first reached the city in January, underscoring the mounting challenge to contain the spread after residents rushed back from abroad this week

Asian equity markets traded higher as the region took its cue from the mild rebound on Wall St amid continued policy efforts to contain the coronavirus fallout including the latest 15bps emergency cut by the BoE and with the US Senate working on a deal which would provide USD 1200 cash payment to individuals. ASX 200 (+0.7%) was underpinned by supportive measures including the RBA’s first ever QE operation and the Australian Banking Association announcement that banks will defer loan payments for 6 months on small businesses impacted by the outbreak, while real estate led the gains as the sector found restitution from its recent collapse after the big 4 banks lowered business and home loan rates. KOSPI (+7.4%) outperformed and triggered a side-car as it atoned for the prior day’s substantial losses and related stoppages, while Hang Seng (+5.1%) and Shanghai Comp. (+1.6%) conformed to the rebound after China’s coronavirus epicentre of Hubei reported no new cases for a 2nd consecutive day, but with gains in the mainland restricted by continued PBoC inaction in which it skipped liquidity operations again and disappointed calls for a cut to the Prime Loan Rate. As a reminder, Japanese markets remained closed for Vernal Equinox holiday.

Top Asian News

  • Cathay Pacific Scraps 96% of Flights as Virus Stops Travel
  • Brokerages Hit by Margin Calls Are Rushing for Dollars in Korea
  • AustraliaScrambles as Cruise Passengers Test Positive for Virus

European bourses opened with gains of around 5%, and subsequently extended on this given a grinding bid in futures as we entered early EU hours; albeit, indices are just off of highs at present. The region remains underpinned by remarks from EU Commission President von der Leyen which received a wider airing – noting the EU is to loosen debt rules, while specific details were not provided this does follow reports out of Germany yesterday that they wish to apply an exemption to the debt brake, while the debt comments from the European Commission are likely in reference to Growth & Stability Pact deficit limits. Following the EU cash open sentiment continued to improve, to the extent that the Nasdaq March’20 future briefly touched the 5% limit-up level at 7649; with the E-mini S&P and DJIA not far from their respective levels (circuit breakers/limit down levels are listed on the Newsquawk headline feed). Sector performance sees all sectors firmly in the green, with some notable outperformance seen in Energy (+7.0%) as the broader crude complex has rebounded significantly after yesterday’s sell-off. In terms of individual movers, Osram Lich (+23%) is by some measure the stand-out after AMS confirmed they are to close on their acquisition in Q2. Other movers are largely moving in-line with sector/bourse performance, with a number of the Stoxx 600 laggards arising from the FTSE 100 which has been weighed on by Sterling’s substantial resurgence this morning; ahead of measures from Chancellor Sunak.

Top European News

  • Europe Stocks Set for Best Back-to-Back Gain Since ‘08 on Easing
  • Italy Set to Tighten Its Lockdown as Fatalities Top China
  • Bank of England Cancels Annual Stress Test of Major Firms
  • Maersk Suspends Guidance as Virus Disrupts Supply Chains

In FX, consolidation and corrective trade in the currency markets after the DXY surged to new peaks a fraction shy of 103.000, with the index back below 102.000 amidst a broad recovery in G10 counterparts and EM rivals that are also getting a reprieve from a relief rally in related commodities. However, the Greenback remains bid in volatile conditions ahead of the weekend as the coronavirus vigil continues and global Central Banks join forces with Governments in emergency and/or unprecedented policy action to combat the adverse effects of the pandemic.

  • AUD/NZD/NOK/GBP/CAD – All leading the comeback from multi-year lows, with the Aussie reclaiming 0.5900+ status and Kiwi more stable above 0.5800, while the Norwegian Crown is outperforming its Swedish peer on the firmer rebound in oil rather than another impromptu Norges Bank rate cut (-75 bp) and more liquidity measures. Similarly, Sterling has not suffered a severe hangover following yesterday’s BoE salvo, as Cable holds well above worst levels within a massive 1.1414-1.1877 range awaiting UK Chancellor Sunak’s supplementary fiscal support package that may be unveiled around noon, while the Loonie is nursing more losses between 1.4151-1.4536 parameters ahead of Canadian retail sales data.
  • JPY/CHF/EUR – Also attempting to regroup, but hampered somewhat by the latest upturn in risk appetite plus holiday impacted Japanese participation due to Vernal Equinox Day. Nevertheless, Usd/Jpy has retreated from 111.00+ to sub-110.00, Usd/Chf towards 0.9800 vs almost 0.9900 at one stage and even Eur/Usd has managed to clamber back over 1.0700 from almost 1.0650.
  • EM – Regional currencies are all benefiting from the aforementioned improvement in sentiment or less COVID-19 angst for the time being, but the Rouble is underperforming after the CBR held rates as expected to leave the focus on the tug-of-war over crude prices and market share with Saudi Arabia that Russia has attempted to play down.

In commodities, WTI and Brent front-month futures extend on yesterday’s rally, which saw prices climb over 20% as the complex was buoyed by signals that US President Trump could intervene in the Saudi/Russia price war at “an appropriate time”, with reports of potential sanctions on Russia in a bid to stabilise markets. The benchmarks also experience an underlying bid from reports that the US DoE is planning on stockpiling crude for the SPR. Overall risk appetite also aids the complex in grinding higher after the European Commission President stated that the Union is to loosen debt brakes. WTI May’20 has reclaimed USD 28/bbl to the upside whilst its Brent counterpart gain ground above USD 30.50/bbl, with technicals futile at this stage, meanwhile the spread also widens vs. earlier in the week. Elsewhere, gold prices stage a rebound as DXY loses impetus from its recent rally, and as liquidity concerns somewhat fades for the time being amid a string of Fed liquidity announcements. The yellow metal reclaims a USD +1500/oz status having printed a recent trough just above USD 1450/oz. Finally, the overall sentiment bolsters the red metal back north of USD 2/lb, having briefly lost the handle during the prior session.

CME raised crude oil NYMEX futures margins by 20.4% to USD 5600/contract from USD 4650/contract and is reportedly changing its dynamic circuit breakers for oil to 15% from 7%. Furthermore, CME raised COMEX 5000 silver futures maintenance margins by 14.3% to USD 8000/contract, raised Palladium futures NYMEX initial margins by 9.3% to USD 38500/contract and raised Platinum futures NYMEX margins for specs by 11.1% to USD 4400/contract.Goldman Sachs sees restraint by core-OPEC could raise Brent to USD 30/bbl from its forecast of USD 20/bbl in Q2, while it added that production quotas could result in USD 5-10/bbl upside to its 2021 price forecast of USD 40-50/bbl.

US Event Calendar

  • 10am: Existing Home Sales, est. 5.51m, prior 5.46m
  • 10am: Existing Home Sales MoM, est. 0.92%, prior -1.3%

DB’s Jim Reid concludes the overnight wrap

Working from home has ruined my exercise regime. As regular readers will know I walk to the station, walk from station to office, walk to meetings and walk just for the sake of walking. A slow financial market Forest Gump. At the moment walking is limited to between my kitchen and my study. So my calorie and step count on my iPhone has taken a severe hit. However in-spite of being as busy as I can remember (apologies if I haven’t responded to an email. I can’t keep up) I’m now trying to get into a routine of answering emails twice a day from my exercise bike. So if you get an email from me I’ll more than likely on my bike. In fact I’m writing this paragraph on it too.

Thankfully it was a relatively boring day. Ok, as you’ll see below that wasn’t the case everywhere but the S&P 500 (+0.47%) did at least finally see its first move of less than 1% in either direction for the first time in 13 days. That was the longest streak since September 25th 2002 when we saw a run of 15 +1% absolute move days. In fact, it’s the first time in over a week that the index has seen a move of less than 5%. For comparison, in all of 2019 we never saw the S&P move more than 3.5% either way in a single day. In Europe, equities saw larger gains, with the STOXX 600 up by +2.91%, with energy companies leading the advance on both sides of the Atlantic as oil came off multi-year lows.

That’s where the boringness ends though as there were spectacular moves elsewhere and note that some of them were very positive. WTI oil (+23.81%) saw its biggest daily move since we have daily data going back to March 1983. Brent crude (+14.43%) had its biggest daily advance since the drone strike on Saudi oil facilities back in September. President Trump gave an extra push to oil at the end of his Covid-19 press conference, saying that he would get involved with the oil price war between Saudi Arabia and Russia when it was appropriate. The administration also pledged to aid shale-drillers who are struggling in the geopolitical crossfire, by buying as much as $3bln of oil from smaller domestic producers – smaller than 5,000 workers. Mr. Trump’s comments came after his administration announced earlier that they would be purchasing as much as 77mln barrels of crude to fill the Strategic Petroleum Reserve, with 30mln being delivered over the next 2 months. Though it is yet to be confirmed whether the additional buying will be enough, given the degree of oversupply coming from Russia and Saudi Arabia, however Trump does have some leverage through security deals in place with the Kingdom. Prior to Trump’s comments, Brent was already up +7.5% and WTI +17.8%.

During that press conference, the President also said an old malaria drug – chloroquine – as being approved for use against Covid-19. However the FDA later clarified that the drug has not yet been approved for use against the disease, but that it would be tested in a clinical trial. Chloroquine has already been cleared in general as safe by the FDA though, and so US doctors are allowed to prescribe it if they feel that it is medically appropriate. Much like we saw with Gilead’s possible treatment yesterday, the market is eager for a medical solution. Equities initially popped on Trump’s comments.

The relative calm has continued into markets this morning where futures on the S&P 500 are up +0.28% as we type those on the Nasdaq are up a bit more at +0.67%. Asian markets are also broadly up with the Hang Seng (+2.81%), and Kospi (+4.80%) seeing the biggest advances in the region while the Shanghai Comp is up a more modest +0.47%. Japanese markets are closed for a holiday. After three days of big gains the USD index is -0.78% this morning with all the G-10 currencies advancing against the greenback. Oil has risen further with Brent crude up +2.74% and WTI +4.40% this morning after yesterday’s record gains. In other news, California has announced a statewide stay-in-place order overnight.

Back to yesterday where in sovereign bond markets, there was a significant tightening of European spreads following the ECB’s announcement of their €750bn Pandemic Emergency Purchase Programme the night before. The spread of Italian 10yr yields over bunds fell by -73.5bps, their largest daily move lower since December 2011, while for Greece, where the ECB granted a waiver that will allow them to buy Greek sovereign bonds, the spread fell by a massive -152.5bps. Other countries also saw dramatic reductions in their spreads, with Spanish spreads down by -38.4bps (biggest tightening since October 2012) and French spreads by -16.0bps. Credit finally saw some 2-way tension as the CSPP got an implicit uplift. Euro IG massively outperformed on an adjusted basis with iTraxx Main (IG) -21bps and Crossover ‘only’ -33bps. A 1:4 ratio is broadly normal. Over the last few days it feels like the market liquidity issues for corporates are being helped by the massive programs from the Fed and the ECB. However what the authorities can’t do is tell us how long economies will be shut down for and how bad the earnings/economic hit will be. Our base case is that as the bias moves away a bit from immediate company liquidity it will move to the economic impact and as such HY has more relative stress to come than IG. For completeness in cash, EUR IG and HY were +2bps and +20bps wider at index level yesterday while USD IG and HY widened +48bps and +78bps. So we’re still seeing a significant underperformance of USD IG where spreads are now at 351bps.

Unsurprisingly, credit fund outflows have become worse in the last few days as investors scramble for liquidity. Funds’ cash buffers have been shrinking rapidly and forced selling is taking hold. The anecdotes have been confirmed by most recent weekly fund flows data released overnight, showing record-breaking withdrawals. For more details, see our report called ECB and BoE vs. Accelerating Corporate Bond Fund Outflows published earlier this morning, which puts the recently announced additional central bank purchases of corporate bonds in the context of recent outflows and the overall market size. You can see the full report here.

Talking of liquidity issues, we’re certainly not out of the woods in dollar funding terms as hoarding continues. With the Bloomberg dollar index climbing to yet another record high yesterday (+1.58%), our head of FX research, George Saravelos put out a report yesterday on the dollar crunch (link here). He writes that he’s worried that in spite of the Fed’s new commercial paper funding facility, as well as the USD liquidity being provided from other central banks via FX swap auctions, that it wasn’t working to solve the ongoing dollar “hoarding” crisis. According to George, the current lack of dollar liquidity is potentially more structural in nature. And while he says governments are moving in the right direction, it’ll take time for the various measures to come into place.

The policy moves did keep coming though. The Bank of England’s MPC unanimously voting to cut rates by a further 15bps down to 0.1%. This is their lowest level ever, which is quite something considering that unlike the Federal Reserve (which was founded in 1913), the Bank of England has been around since 1694!. Furthermore, while Governor Bailey said afterwards that he wasn’t in favour of negative rates, he ruled nothing out. The BoE also announced that they were increasing asset purchases by a further £200bn, which includes UK government bonds and sterling non-financial investment-grade corporate bonds, though the majority will be in government bonds. In response to the decision, UK gilts, which had been underperforming before the announcement, erased losses with 10yr yields ending the session -7.2bps at 0.72%. In the US, 10yr Treasury yields traded in a 25bp range overnight and through the day before finishing -3.5bps lower at 1.16%. We also saw the 2Yr/10Yr curve continue to steepen (+4.2bps to 69.4bps), now at levels last seen in February 2018.

On the monetary moves elsewhere, the Federal Reserve announced that they were establishing US dollar swap lines with 9 further central banks, adding to their existing swap lines with the ECB, BoE, BoJ, SNB and BoC. Other rate cuts included Indonesia lowering by 25bps to 4.50%, South Africa by 100bps to 5.25%, and Taiwan by 25bps to 1.125%. That said, it wasn’t just easing yesterday, with the Swiss National Bank keeping their policy rate at -0.75%, while the Danish central bank actually raised its key rate by 15bps to -0.6% in order to defend the Danish Krone’s peg against the euro.

On the fiscal side, Bloomberg reported that the White House was considering the idea of issuing both 25-year and 50-year bonds to finance the stimulus package that US Senate leaders unveiled after the US markets closed. As has been discussed for the last few days, the deal centers on $1,200 checks sent to individuals ($2,400 for married couples) that would be in the form of a tax rebate. The bill includes $58bln for the airline industry and over $350bln for small business loans and distressed areas of the economy, however there is a cap being put on executive salaries and severance pay. Republicans are going to try and get Democrats on board as quickly as possible, and as mentioned yesterday that some senators want to vote on it as soon as this weekend. There were also reports from Germany that the country’s government wanted to suspend the debt brake, which would mean the government would no longer be constrained by constitutional limits on borrowing. The cabinet is thought to be signing off on the request in the coming days and a decision on this could come as early as next week. With the debt brake gone, Bloomberg suggested that the government would use its resources to build a EU40bln fund supporting the self-employed, small businesses, and other ventures aimed to stimulate the economy.

On the virus front, we continue to look for a plateauing in Western cases. Italy’s daily case growth seems to have shifted to the low teens this week after being in the high teens last week and the 20% range two weeks back, though the total number of deceased in Italy surpassed those in China as the number of infected in Italy continue to strain the healthcare system. The US, France, and Germany continue to grow at sharper rates than Italy, but the social measures enacted in those countries to bend the curve came later and so expect to see cases continue to grow there at a fast pace for a few more days at least. This is especially true in the US, where testing is beginning in earnest and so there will be a coinciding spike in cases – e.g. NY state has started the drive thru testing centers seen in South Korea and expect more to come online. See the daily table and charts in the “View Report” link at the top.

With initial data coming in on the economic impact of the coronavirus, it’s no wonder that we’re seeing such a sustained policy response. In terms of the releases out yesterday, the weekly initial jobless claims reading from the US spiked up to 281k (vs. 220k expected), a level unseen since September 2017. And this was for the week ended March 14, so doesn’t account for any deteriorations since then. There was also the Philadelphia Fed business outlook, which fell to -12.7 in March, the lowest since July 2012 and the largest monthly deterioration on record. Finally, the Ifo business climate reading from Germany fell to 87.7, its lowest level since August 2009, and the expectations reading also fell to 82.0, its lowest since January 2009.

Turning to the day ahead now, and data releases scheduled include the Euro Area current account for January, the UK public finances for February, Canadian retail sales for January and from the US there’s existing home sales for February. There’ll also be a rate decision from the Russian central bank.

END

 

3A/ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED UP 43.49 POINTS OR 1.61%  //Hang Sang CLOSED UP 1059.94 POINTS OR 5.05%   /The Nikkei closed DOWN 173.72 POINTS OR 1.04%//Australia’s all ordinaires CLOSED UP .93%

/Chinese yuan (ONSHORE) closed UP  at 7.0783 /Oil UP TO 26.39 dollars per barrel for WTI and 29.16 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0783 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.1065 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING 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 AFFAIRS

HONG KONG/CORONAVIRUS UPDATE 

Hong Kong Reports Largest Surge In Infections Yet As Experts Warn ” We’re On The Edge Of All-Out War” With COVID-19: Live Updates

When historians look back at this time, we suspect that California Gov. Gavin Newsom’s landmark decision to order more than 40 million Californians to remain at home on Thursday night will be remembered as an important demarcation point – the beginning of a more heavy handed response as it becomes increasingly clear that too many Americans are simply ignoring the government.

So far, NY Gov. Andrew Cuomo and President Trump have insisted that they have no plans to issue lockdown orders. But with the number of confirmed cases expected to soar in the coming days and over the weekend, the situation is certainly evolving rapidly, and rumors about other states considering preemptive lockdowns (remember, the whole point is to stay “ahead of the curve”) continue to circulate.

Over the past week, central bankers around the world have slashed rates, stepped up bond buying programs, promised to expand their back-stopping of credit markets and – most importantly – urged the politicians in charge to do their part and pass massive fiscal stimulus. Late last night, the Senate unveiled a $1 trillion package that will feature direct transfers to many Americans.

In the US, futures are pointing higher amid mounting hopes for a second straight close in the green. The improved sentiment is ostensibly due to the latest wave of central bank interventions. But that didn’t stop a team of economists at Bank of America from releasing a new note calling for a global recession, with GDP growth dropping to 0% for the year in 2020. Explaining the shift in their thinking, the team wrote: “Our first piece on the virus shock was titled ‘Bad or worse’; now we amend that to ‘Really bad or much worse.'”

The World breathed a sigh of relief Thursday night when China reported no new domestically-transmitted cases of the coronavirus for a second straight day. Meanwhile, Reuters just reported that the foreign ministers of South Korea, China and Japan have held a video conference on Friday to discuss cooperation on the coronavirus pandemic as concerns grow about the number of infected people arriving in their countries from overseas, threatening to set off a second wave of infection. The State Department is doing its part: It issued a ‘Level 4’ travel warning last night advising Americans not to travel abroad, and for any Americans still outside of the country to either come home, or ‘shelter in place’.

Unfortunately, it appears the dreaded ‘second wave’ of infections is already looming over Hong Kong.

After reporting 14 new cases in a single day earlier this week, a surprisingly large jump for a city that was widely praised for its swift and heavy handed response to the outbreak (proving that the city had retained the hard-learned lessons of SARS), Hong Kong on Friday reported a record jump in new cases as the city-state braces for a wave of new illnesses, many involving travelers from abroad and the HK residents they’ve infected.

Friday’s surge of 48 cases is the largest daily jump since the outbreak began; it’s equivalent to roughly a quarter of all cases confirmed in the city previously, according to the SCMP.

Even as the virus swept through parts of China and elsewhere in the region, Hong Kong managed to largely control its outbreak. Now, as life in the financial center had begun to return somewhat to normal, the wave of new cases is worrying experts who say it could lead to widespread community transmission. The city now has more than 250 confirmed infections.

The new confirmed cases take the city’s total number to 256, and a top microbiologist said Hong Kong might be on the edge of an all-out “war” against an explosion in infections.

The Centre for Health Protection said 36 of the latest round of infected people, aged between four and 69, had a travel history. One of the local cases is a taxi driver who had picked up passengers from the airport.

When asked whether the government should ban non-locals from entering the city, Dr Chuang Shuk-kwan, head of the centre’s communicable disease branch, said all the fresh infections were residents, except one – an Australian who had been to the United States and Portugal. He was transiting at the airport and sent to hospital after feeling unwell.

As the paper explained, thousands of people returned to the city this week, and the spike in new cases prompted the city’s government to announce new quarantine measures requiring anyone arriving from abroad to self-isolate for 14 days, measures that have also been implemented by China. Also in China, the People’s Daily reports that catering halls and shopping malls are reopening in Beijing.

Whether you trust the Chinese numbers or not, there’s no question that the CCP leadership has reason to be cautious after saving President Xi from a historic embarrassment: According to Johns Hopkins, the number of confirmed cases ROW is now 2x the number from mainland China.

Meanwhile, Spanish authorities announced Friday morning that the death toll in the country has broken above 1,000 as citizens near the end of their first full week under an enforced lockdown.

The country reported 1,903 new cases, and 169 new deaths, raising its total to 19,980 cases and 1,002 dead.

Meanwhile, on social media, snippets of video have circulated offering glimpses into the life on lockdown in Madrid and elsewhere around Spain.

RΛMIN NΛSIBOV

@RaminNasibov

Spain

Embedded video

Since the first case of COVID-19 was confirmed in the US, there has been no shortage of bitterly ironic headlines during this outbreak (remember when Rudy Gobert licked all those microphones?). But overnight, Altria Group – one of the largest tobacco companies in the world (it was better known as Phillip Morris before it rebranded a few years back) – said Howard A. Willard III, its Chairman and CEO, has tested positive for COVID-19.

Let’s hope he’s not a smoker.

END

CHINA/USA/GLOBE

USA Congressman demands Beijing pay reparations for unleashing the coronavirus

(zerohedge)

Congressman Demands Beijing Pay Reparations For Unleashing The Coronavirus On The US

With more Republican Senators pointing out the dangers of relying on China-focused supply chains for critical products like medications, others are warning that the US government must hold Beijing accountable for failing to suppress the outbreak before it became a global pandemic.

Building on President Trump’s vexing insistence of referring to COVID-19 as a “Chinese virus” in an effort to subtly push back against Chinese propaganda seeking to blame the US for the outbreak.

Liberals sometimes seem like lose the ability to think logically once an accusation of ‘racism’ has made. But in this case, Beijing almost seems like it’s trying to literally edit history. Given the circumstances, we think Trump is justified in wheedling China, not to say that there aren’t other factors to consider.

For example, Beijing possesses a certain capacity to wreak havoc in the US. As we’ve discussed, they could retaliate by dumping Treasurys and/or disrupting supply chains. They could send Elon Musk and Tesla packing, just like how they almost booted FedEx during the Huawei showdown. There are many other options.

Regardless, Beijing’s attempts to push its twisted narrative are growing increasingly brazen, as the following video, aired on Chinese state-run television, shows:

黃子茵 霧亭 全民大契約@wutingzy

Central China TV
“Expert” : “The US pushed out the vaccine so quickly, that only means they have been working on it way before the pandemic.”
Host: “So we can conclude that the US had this virus in their possession long ago”

CCP nonstop smear campaign

Embedded video

Which is why some are demanding that some restitution should be made, as Beijing would surely demand the same if the shoe were on the other foot. Rep. Jim Banks suggested that President Trump should “demand reparations” from Beijing during an interview with Tucker Carlson on Fox News.

Carlson referred to Banks as “one of the few and loudest voices” speaking out about holding China accountable.

We suspect that over the coming weeks, this idea will move closer to the mainstream political conversation as frustration builds over the unprecedented economic and public health crises.

Watch the interview below:

END

Beijing’s Claim Of No New Infections Contradicts Reality On The Ground

After conducting the largest quarantine in human history, China is now claiming, for a second day, that there are zero new local cases of COVID-19.

For those who aren’t inclined to take the CCP at their word, however, ample evidence exists to prove that China is lying – about both the number of dead and the ongoing situation.

Jennifer Zeng 曾錚@jenniferatntd

Latest figures released by China Mobile show that they have lost 8.116 million users in Jan and Feb. Where are these users now? Switched to other carriers? Or, they couldn’t carry their phone to the nether world?
Chinese report at: https://bit.ly/2QxDobi 

View image on TwitterView image on Twitter

Jennifer Zeng 曾錚@jenniferatntd

No new cases in ? This notice to residents says there is one confirmed case at Golden Elegant Garden on Mar 17. Patient felt unwell on Mar 15, went to Xinhua Hospital on Mar 16. Test came back on Mar 17 as positive.

View image on Twitter

Expanding greatly on this notion is the Epoch Timeswhich confirmed video evidence of people lining up outside a fever clinic in Wuhan – along with the March construction of a new, makeshift hospital and other facilities. Continue reading below.

Authored by Nicole Hao via the Epoch Times

Chinese citizens report long lines outside of hospitals, new makeshift hospitals, and forced quarantines

For the first time since the virus outbreak began, China’s national health commission claimed on March 19 that there were no new infections in the entire country.

But Chinese citizens describe a different reality.

In Wuhan, ground zero of the epidemic, residents witnessed long lines at hospitals while more facilities were reportedly being set up to accommodate ill patients.

Meanwhile, netizens said they don’t trust the Chinese regime’s narrative.

The CCP virus, commonly known as the novel coronavirus, first emerged in Wuhan in December 2019.

The Epoch Times refers to the novel coronavirus as the CCP virus because the Chinese Communist Party’s coverup and mishandling allowed the virus to spread throughout China and create a global pandemic.

Hospitals

In a video posted to social media on March 19, a Chinese citizen shows the Wuhan Union Hospital, one of 46 designated facilities to treat COVID-19, and the queue in front of it. “Look, Look! People are lining up in front of the fever clinic at Wuhan Union Hospital,” the person says. The Epoch Times confirmed the footage was filmed at the hospital.

More than 30 people are seen waiting in line, keeping a safe distance from the person in front of them. A hospital security guard is stationed nearby, dressed in a protective suit and wearing an N95 mask.

Those waiting in line wore masks, some dressed in surgical gowns or plastic raincoats—worn by many during the initial outbreak as people sought to protect themselves from contracting the virus.

Meanwhile, Mr. Wu, a resident in nearby Huanggang city, cried for help. He said no hospital in Huanggang or Wuhan could diagnose his disease because all the facilities he visited were full of virus patients.

Wu’s daughter told The Epoch Times in a phone interview: “I called doctors from Wuhan. They said it’s very possible that my father has a kidney tumor, but they couldn’t accept him. … Their hospitals are full of [virus] patients.”

New Facilities

On March 19, a construction worker shared a video of a new makeshift hospital set up within a stadium in suburban Wuhan.

“After another night, our mission is almost complete,” the man said. “A new makeshift hospital will be in operation soon.”

Ms. Li, a resident in Wuhan, told The Epoch Times that authorities have recently set up so-called relay stations around the city. Typically set up inside universities, diagnosed virus patients are being held there in quarantine.

After the 14 makeshift hospitals were closed [on March 10], they set up 300 relay stations. I believe they are like a new type of makeshift facility,” Li said.

Coinciding with Chinese leader Xi Jinping’s first visit to Wuhan since the outbreak, authorities closed down the makeshift field hospitals, saying there was no longer a need for them.

Ms. Li also said many people are undiagnosed and self-isolating at home. “[From what I know], each residential compound in [Jiang’an district, an area of Wuhan] has infected virus patients. The patients are forced to stay at home.”

Ms. Zhang, another Wuhan resident, believed the epidemic was much more severe than authorities are admitting.

“If the outbreak isn’t critical, it [the government] would allow us to return to work. Now all roads are still blocked, and businesses have not resumed production in Wuhan,” Zhang said in a March 17 phone interview.

Since late January, Wuhan has been under lockdown. To prevent the virus from spreading, workplaces were closed down, public transportation and road travel banned, and public events canceled.

Aside from Xinjiang and Guizhou, two remote areas of China that recently reopened high schools and middle schools for seniors who will take entrance exams, all schools in other provinces and regions are closed.

China’s schools have remained closed since the Lunar New Year holiday. Classes are held online.

Netizens

Many netizens are skeptical of the authorities’ claims that the epidemic has been contained. One widely circulated article posted onto a Chinese internet bulletin board said that only when three criteria are met will it indicate that the epidemic is truly over.

The three criteria are: all schools in China reopen; North Korea and Russia reopen their borders to China; and the CCP holds its Lianghui (“Two Sessions”), the Party’s annual conference for its rubber-stamp legislature and the advisory body, the Chinese People’s Political Consultative Conference.

This year’s Lianghui was scheduled for March 3 to March 13. On Feb. 24, the Party announced that it would be postponed due to the epidemic.

END

4. EUROPEAN AFFAIRS

FRANCE

Basically, Martial law has been declared in France:  citizens are forced to fill out a form every time they leave home

Watson/Summit News)

Martial Law France: Citizens Forced To Fill Out Form Every Time They Leave Home

Authored by Paul Joseph Watson via Summit News,

The coronavirus lockdown in France literally forces citizens to ‘show their papers’; They have to fill out a form explaining why they are outside and present it to police.

A translation of the form posted online shows how citizens have to provide their name, date of birth, address and declare their reason for leaving quarantine.

Travel to a workplace is allowed, but only if the individual can prove they don’t have the capacity to work from home.

Other reasons include purchasing “essential necessities in authorized establishments” (how this can be proven is unknown), visiting family for “compelling reasons,” assisting vulnerable people and traveling for medical reasons.

There also appears to be an exemption for exercise so long as it takes place locally and not with groups of people.

Videos posted online show people being stopped by police and asked to explain their reason for being outside. Those without paperwork have to fill it in on the spot and face fines of up to $148 if caught lying about their activities.

100,000 extra police have been deployed to patrol streets and enforce the lockdown.

Meanwhile, in Spain, authorities are using drones to yell at people who disobey quarantine.

A video clip from the BBC shows police telling people walking in a Madrid park to go home. This message is then amplified via a loudspeaker attached to the drone.

BBC News (World)

@BBCWorld

Police in Spain have been using drones to check the streets for anyone ignoring Spanish orders to stay home during the coronavirus outbreak

On Saturday, the country’s 47 million citizens were ordered to stay indoors except for necessary tripshttp://bbc.in/2QjUZDr

Embedded video

*  *  *

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end
ITALY

“Worse Than War”: Italian Army Convoy Removes Coffins From Overwhelmed Town

Reuters has confirmed widely circulating which shows a deeply disturbing apocalyptic and dystopian scene of a large convoy of military trucks removing bodies from a town in northern Italy which has been devastated by coronavirus.

Local government and morgue facilities in the town of Bergamo, northeast of Milan, have been overwhelmed by the number of cases and deaths.

“Italy ordered the army to move bodies from a northern town at the center of the coronavirus outbreak where funeral services have been overwhelmed as the government prepared to prolong emergency lockdown measures across the country,” Reuters reports.

Alessandra@alessabocchi

I was sent this video from Bergamo, Italy. The military has been asked to transport dead bodies and coffins because there are no more spaces in the crematoriums or the mortuaries.

Embedded video

The local newspaper Eco di Bergamo was among the first media outlets to publish the footage, which also went viral on social media.

Some 60 coffins were transported to crematoria outside the town on Wednesday night alone, the Italian newspaper reports:

Army vehicles brought numerous coffins, about sixty, from the cemetery of Bergamo to the crematoria of other regions where there are municipalities that have made themselves available to accept them.

𝓓𝓻 𝓔𝓵 𝓜𝓸 𝓐𝓽𝓲𝓴𝓾 𝓐𝓫𝓾𝓫𝓪𝓴𝓪𝓻@DRElMo_ATIKU

This isn’t a war or movie scene. What you’re seeing are military trucks conveying coffins of victims from Bergamo, Lombardy, Italy to a cremation Center. There’s no more space for them in d hospitals. I’ve never seen anything similar. In , our govt is joking

Embedded video

The footage shows a long column of military trucks transporting coffins from the town’s overwhelmed morgue and churches, as local government and religious leaders can’t keep up with conducting funerals and burials.

 

Italian army truck leaving a crematorium in Bergamo on Wednesday night, via Corriere TV.

The city’s crematorium has been reportedly operating 24-hours a day, as the region’s large population of elderly have been especially impacted by the deadly virus.

Other cities are expected to receive the bodies being transported by the army, such as nearby Parma, Brescia, Domodossola, and Modena — the latter about 110 miles away.

Italy as the European epicenter for the outbreak on Wednesday witnessed a terrifying leap in deaths as the total rose by 475 to almost 3,000. This included a record 4,207 confirmed new infections in one day.

Bergamo sits in Lombardy province, which has over 4,000 cases and more than 300 deaths. Townspeople have reportedly been forced to resort to forgoing funerals altogether for their relatives as the situation gets ever more dangerous for infection.

“The crematorium of Bergamo, working at full capacity, 24 hours a day, can cremate 25 dead,” a city authority said as reported the ANSA News Agency. “It is clear that it could not stand up to the numbers of the past few days.”

 

Via The Daily Mail

One grieving relative of an elderly local man that died of Covid-19 also told media outlets: “I think it’s worse than a war,” as obituary pages in the local newspaper has recently extended to ten pages long.

END
UK/LONDON/CORONAVIRUS
London hospital has now run out of beds amid the virus outbreak
(zerohedge)

“Critical Incident” – London Hospital Runs Out Of Beds Amid Virus Outbreak

A hospital in London has declared a “critical incident” after it has run out of hospital beds, reported SKY News.

Sky News

@SkyNews

BREAKING: Northwick Park Hospital in Harrow has declared a ‘critical incident’ due to a surge in patients with .

Latest updates 👉 https://trib.al/fjiEGYS

Embedded video

The “critical incident” was declared at Northwick Park Hospital in Harrow, where it appears a surge in COVID-19 patients has used up all hospital beds and ICU-level treatment at the facility. This means that the most vulnerable might not be able to get the treatment they need, which implies the mortality rate in London could be on the cusp of surging.

We’ve pointed out all week that the UK “missed the critical containment window to suppress the epidemic curve,” which is now resulting in a surge of virus patients at hospitals.

 

Cumulative Confirmed UK Cases 

Dr. Jessica Potter, a respiratory specialist in the UK’s National Health Service, warned on Thursday that hospitals across the UK “are overwhelmed” and “on the brink of collapse.”

We also outlined how 10,000 troops have been told they could deploy at any given time if social order deteriorates. With one hospital being overwhelmed, it’s only a matter of time before others are as well.

 

UK Virus Map 

secret government document was leaked earlier this week that said 80% of Britons could be infected, and the virus would not clear out of the country until Spring 2021.

Britons should prepare for the worst and hope for the best. The “coronavirus winter” is here.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

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 1.0728 UP .0073 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN

 

 

USA/JAPAN YEN 110.16 DOWN 1.150 (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 1.1753   UP   0.0263  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.4307 DOWN .0192 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  FRIDAY morning in Europe, the Euro ROSE BY 73 basis points, trading now ABOVE the important 1.08 level RISING to 1.0728 Last night Shanghai COMPOSITE CLOSED UP 43.49 POINTS OR 1.61% 

 

//Hang Sang CLOSED UP 1059.94 POINTS OR 5.05%

/AUSTRALIA CLOSED UP[ 0,93%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 1059.94 POINTS OR 5.05%

 

 

/SHANGHAI CLOSED UP 43.49 POINTS OR 1.61%

 

Australia BOURSE CLOSED UP. 93% 

 

 

Nikkei (Japan) CLOSED DOWN 172.72  POINTS OR 1.04%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1502.80

silver:$12.65-

Early FRIDAY morning USA 10 year bond yield: 1.00% !!! DOWN 16 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 1.62 DOWN 17  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 102.09 DOWN 69 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: 0.94% DOWN 15 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.09%  UP 3   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.73%//DOWN 17 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,62 DOWN 17 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 89 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.94% 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 1.0657  UP     .0003 or 3 basis points

USA/Japan: 111.44 UP .131 OR YEN DOWN 13  basis points/

Great Britain/USA 1.1700 UP .02101 POUND UP 210  BASIS POINTS)

Canadian dollar UP 138 basis points to 1.4362

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0958    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1320  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.5573 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +.09%

 

Your closing 10 yr US bond yield DOWN 22 IN basis points from THURSDAY at 0.94 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 102.61 UP 3 in basis points on the day

Your closing USA dollar index, 97.15 DOWN 14  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 39.17  0.76%

German Dax :  CLOSED UP 318.52 POINTS OR 3.70%

 

Paris Cac CLOSED UP 193.30 POINTS 0.50%

Spain IBEX CLOSED UP 47.50 POINTS or 0.74%

Italian MIB: CLOSED UP 264.88 POINTS OR 1.71%

 

 

 

 

 

WTI Oil price; 24.36 12:00  PM  EST

Brent Oil: 28.53 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    79. 82 THE CROSS LOWER BY 0.15 RUBLES/DOLLAR (RUBLE HIGHER BY 15 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.32 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 :  22.43//

 

 

BRENT :  27.54

USA 10 YR BOND YIELD: … 0.88..down 27 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.48.down 27 basis points..

 

 

 

 

 

EURO/USA 1.0651 ( DOWN 10   BASIS POINTS)

USA/JAPANESE YEN:111.21 DOWN .103 (YEN UP 10 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 102.71 DOWN 4 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.1571 UP 81  POINTS

 

the Turkish lira close: 6.5595

 

 

the Russian rouble 80.02   DOWN 0.87 Roubles against the uSA dollar.( DOWN 87 BASIS POINTS)

Canadian dollar:  1.3034 UP 21 BASIS pts

USA/CHINESE YUAN (CNY) :  7.1318  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 7.0961 OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.29%

 

The Dow closed DOWN 913.21 POINTS OR 4.55%

 

NASDAQ closed DOWN 271.06 POINTS OR 3.79%

 


VOLATILITY INDEX:  66.75 CLOSED DOWN 5.25

LIBOR 3 MONTH DURATION: 1.195%//libor dropping like a stone

 

USA trading today in Graph Form

Stocks Suffer Worst Week Since Lehman Despite Biggest Fed Bailout Ever

This has been the sharpest market selloff in history…

This was the worst week since Lehman (and worst 4 weeks since Nov 1929) for The Dow Jones Industrial Average…(Dow was down 18% during the Lehman week and 17.35% this week)

Source: Bloomberg

Despite The Fed gushing a stunning $307 billion into the markets – almost double its previous biggest liquidity injection (in March 2009)…

 

Maybe it was the ‘stock’ and not the ‘flow’ after all…

Source: Bloomberg

Stocks still have a long way to go to erase all the delusion (compared to actual profits)…

Source: Bloomberg

And if you think stocks already fell too much, think again… Total market cap to GDP is just now retesting the peak of the housing bubble levels!

Source: Bloomberg

As @TaviCosta notes, “This puts into perspective… We truly were at absurd valuations.”

Never Forget!!

Chinese markets are mixed since the Wuhan flu began with tech-heavy super-leveraged ChiNext still green as the the megacaps get pummeled…

Source: Bloomberg

In Europe, “Whatever it takes” wasn’t enough…

Source: Bloomberg

Nasdaq remains notably higher since President Trump’s inauguration, S&P is barely higher but The Dow, Transports, and Small Caps are all underwater now (the latter two crushed)…

Source: Bloomberg

And US stocks are testing a serious trendline…

Source: Bloomberg

With the Median US Stock down over 50% from its highs…

Source: Bloomberg

The US Stock markets have lost almost $30 trillion in the last few weeks…

Source: Bloomberg

And US stock market volatility has not been this extreme since Black Monday in 1987 and Black Monday in 1929…

Source: Bloomberg

Credit markets are utterly collapsing with nothing The fed did this week helping… HY is the worst since the financial crisis…

Source: Bloomberg

And HY has a long way to go if it catches up with fundamentals…

Source: Bloomberg

And investment grade credit is getting crushed at a record rate…

Source: Bloomberg

Treasury bond vol has exploded – at its sharpest rate ever…

Source: Bloomberg

Bonds and stocks have completely decoupled, trading down together and breaking the ‘normal’ correlation regime…

Source: Bloomberg

Very volatile week in bond-land but thanks to today’s buying pressure, most of the curve ended lower in yield (dominate dby the short-end) as stocks collapsed…

Source: Bloomberg

10Y yields were marginally lower on the week (amid a massive 65bps intra-week range) and back below 1.00%…

Source: Bloomberg

Muni yields ended up 60bps today – refusing to improve despite The Fed’s new facility…

Source: Bloomberg

Amid all this carnage, negative-yielding-debt worldwide has evaporates rapidly as bonds have been dumped everywhere (sending yields higher)…

Source: Bloomberg

The dollar is up a stunning 9 days in a row…as the global dollar shortage creates an unstoppable bid every day after Europe opens…

Source: Bloomberg

This is the biggest 9-day surge in the dollar (a shocking 8%-plus) ever – more than when Soros broke the Bank of England…

Source: Bloomberg

Cryptos had a big week, extending gains from last week…

Source: Bloomberg

With Bitcoin up 85% from last week’s lows…

Source: Bloomberg

Absolute carnage in commodities this week as a strong dollar and ugly fundamentals slammed copper and crude…

Source: Bloomberg

Precious Metals were pummeled this week as the dollar soared with Platunum worst and gold best…

Source: Bloomberg

But oil was the real headline on the week – utterly devastated and Putin’s comments today spoiled the party from yesterday’s best day ever… This was WTI’s worst week since 1991…

Finally, as a reminder, Santiago Capital explains why The Fed Swap Lines aren’t working… (and in fact are making things worse)…

Santiago Capital@SantiagoAuFund

Just a quick note to remind everyone that dollars flowing via swap lines are not a gift.
They are loans.
Loans are future demand for dollars.
Demand.
Demand for dollars is off the charts.
So while swap lines provide ST liquidity, they increase overall demand.
THEY INCREASE DEMAND

Embedded video

For a month, global stock markets refused to take any notice of the virus that was taking hold in China… not our problem… we’ll be fine… Fed will rescue us… v-shaped recovery… and then…

Source: Bloomberg

And the prediction market says that the Wuhan flu has done what Schiff and the Democrats couldn’t with three years of bullshit narratives…

Source: Bloomberg

And what happens next?

Source: Bloomberg

And this is not very reassuring – as all the chatter of helicopter money has sent USA sovereign credit risk notably higher…

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

US Equity Futures Tumble After California State-Wide ‘Stay At Home’ Order

Having been ramped up to unchanged from post-close lows, news that CA Governor Newsom has issued a state-wide “stay at home” order, futures tumbled…

Dow futures are down over 300 points…

It’s Quad Witch tomorrow so we should expect plenty of high gamma swings between now and the open tomorrow.

END
14 million poor souls have been laid off due to the Coronavirus
(zerohedge)

14 Million Americans Have Been Laid Off So Far Due To COVID-19

A staggering 9% of working Americans, or 14 million people, have been laid off as a result of the Chinese coronavirus panic, while 25% of workers have had their hours reduced according to extrapolated polling by Survey USA.

A SurveyUSA poll taken one week ago showed just 1% of Americans would take home no paycheck.

Of note, in California alone, Governor Gavin Newsom said on Thursday that unemployment insurance filings had spiked by 80,000 on Tuesday alone, vs. the usual rate of around 2,000 per day.

Meanwhile in Ohio, jobless claims have spiked to nearly 140,000 vs. last week.

Of those laid off, per SurveyUSA, high school educated workers are twice as likely to have lost their jobs as college graduates, while women and older workers are almost twice as likely to have been laid off than men and younger workers.

Early markers on the road from recession to depression as the Coronavirus threatens to stop the world from spinning on its axis show that 1 in 4 working Americans have had their hours reduced as a result of COVID-19, according to SurveyUSA’s latest time-series tracking poll conducted 03/18/20 and 03/19/20.

Approximately 160 million Americans were employed in the robust Trump economy 2 months ago. If 26% have had their hours reduced, that translates to 41 million Americans who this week will take home less money than last, twice as many as SurveyUSA found in an identical poll 1 week ago. –Survey USA

Methodology: SurveyUSA interviewed 1,000 USA adults nationwide 03/18/20 through 03/19/20. Of the adults, approximately 60% were, before the virus, employed full-time or part-time outside of the home and were asked the layoff and reduced-hours questions. Approximately half of the interviews for this survey were completed before the Big 3 Detroit automakers announced they were shutting down their Michigan assembly lines. For most Americans, events continue to unfold faster than a human mind is able to process the consequences.

And Goldman Sachs’ research appears to confirm this ugliness, as they compile anecdotes from recent press reports and company announcements to estimate the magnitudes of the increase in layoffs and decline in consumer spending due to the virus.

March data available thus far show a sharp contraction in US activity, with very weak manufacturing surveys, a 33% increase in initial claims over the last week, and large declines in our monthly activity nowcast and the high-frequency indicators we are tracking to gauge the impact of the coronavirus.

Many US states have reported unprecedented surges in jobless claims this week and Goldman estimates based on these news reports suggest that nationwide jobless claims will rise to roughly 2¼ million (seasonally adjusted) in the next claims report covering the week of March 15-21, a roughly nine-fold increase over the pre-virus level.

Here are the key data points available so far by industry below.

Hotels.

Hotels are expecting to run at much lower occupancy rates than usual.

  • According to the President of the American Hotel & Lodging Association, hotel occupancy is currently around 10% to 20% in the busiest cities of the country, compared to around 80% a few week ago.
  • Many hotels in New York City have reported under 10% occupancy rates, with the largest hotel in the city (Hilton Midtown) shutting down.
  • A survey of New Orleans hotels showed that many have completely shut down, while others are operating at only 10 to 15 percent of their normal occupancy levels.
  • Data from the hotel market-tracking firm STR suggests that last week’s hotel occupancy was down 24% relative to last year. This will likely fall further.
  • Chicago’s downtown hotel occupancy rate fell to 35% last week, down from 85% in the same period last year. Occupancy rates in Seattle and San Francisco also fell below 40% last week.
  • At least 14 hotels have already closed in Las Vegas.

Restaurants. 

Many states have banned in-person dining in restaurants and bars, although takeout and delivery are typically still available.

  • The most recent data reveal 40-90% year-on-year declines in OpenTable reservations across major cities.

Public Transportation. 

Almost all airlines have announced cuts in capacity, and ridership on trains and buses is also down.

  • United Airlines announced cuts in capacity of about 50% for April and May. Even with cuts announced, they are expecting load factors to drop into the 20-30% range.
  • Delta Air Lines announced overall capacity reduction of 70%.
  • American Airlines has cut capacity for international long-haul flights by 75%.
  • Amtrak is cutting the frequency of the Northeast Corridor routes by 60%.
  • C&J Bus Lines, which provides intercity bus service in the northeast, has seen passenger volumes drop by 70% in the last week.
  • Subway ridership in New York City was down 20% year-over-year over the full week of March 7-13 and was down 40% by the last two days of the week.

Sports & Entertainment. 

Many major events have been cancelled, and services involving large scale gatherings are likely to be very limited.

  • All major sports leagues have cancelled or postponed their seasons, including the NBA, NCAA basketball, MLB, NHL, MLS, PGA Tour, and NASCAR.
  • Many if not all large concerts have been cancelled following the CDC’s recommendation of no gatherings of more than 10 people and the outright ban of large gatherings by several states.
  • Movie theaters across the country have shut down.
  • Disney World, Disneyland, Universal, SeaWorld, and theme parks across the country have shut down.
  • Many if not most large museums have shut down.

Retail

  • Thousands of US stores are closing, including major retailers.
  • Large department stores such as Macy’s, Bloomingdale’s, and Nordstrom have closed all of their US stores.
  • Apple and Microsoft have closed all of their retail stores in the US.

Casino Gambling

  • All casinos in Nevada have closed.
  • Almost all major casinos across the country have also closed.

Goldman is not alone, BofA warns that jobs will be lost but even more hours will be cut.

We expect a total of approximately 3.5 million jobs will be lost with the biggest hit in 2Q of 1 million per month. This will send the unemployment rate higher, nearly doubling to 6.3%. The industries to be hit the hardest are leisure & hospitality and retail. These sectors have a high share of hourly workers – about 80% for the former and 70% for the latter. And these workers struggle to work from home. This means they are vulnerable to a reduction in hours worked and likely outright job cuts.

We look for initial jobless claims to spike to 3 million in the week ending March 21st, reflecting the mass layoffs/furloughs across the country due to the COVID-19 outbreak.

On the spending side, the numbers are even more devastating, as Goldman shows:

 

Finally, the interest in unemployment-related services continues to rise…

(zerohedge)

iv) Swamp commentaries)

“He Must Resign From The Senate And Face Prosecution”: Tucker Carlson Blasts Burr For Liquidating Stock While Downplaying COVID

Fox News‘s Tucker Carlson had some serious words for Sen. Richard Burr (R-NC), who sold off a significant percentage of his stocks on February 13 – raising between $628,000 and $1.72 million in 33 separate transactions.

Carlson noted Burr sold “more than a million dollars in stock in mid-February after learning how devastating the Chinese coronavirus could be.

“He had inside information about what could happen to our country – which is now happening – but he didn’t  warn the public. He didn’t give a prime time address. He didn’t go on television to sound the alarm. He didn’t even disavow an op-ed he’d written just ten days before claiming America was ‘better prepared than ever for coronavirus.”

Instead what did he  do? He dumped his shares in hotel so he wouldn’t lose money. And then he stayed silent.

Now maybe there’s an honest explanation for what he did. If there is, he should share it with the rest of us immediately. Otherwise, he must resign from the Senate and face prosecution for insider trading. There is no greater moral crime than betraying your country in a crisis, and that appears to be what happened.”  -Tucker Carlson

Perhaps Burr was simply reading Zero Hedge’s coronavirus coverage?

Watch:

Andrew Feinberg

@AndrewFeinberg

Wow. Add @TuckerCarlson to the list of folks calling on @SenatorBurr to resign.

Embedded video

Meanwhile, a second Senator has come under fire for similarly selling stocks before the market took a dive – selling between $1,275,000 and $3,100,000 between January 24 and February 14.

Sen. Kelly Loeffler, R-Ga., has become the second lawmaker to have reportedly sold stock weeks before the coronavirus outbreak triggered a stock market downfall.

The Daily Beast reported on Thursday that Loeffler sold stock that was owned by her and her husband and January 24, which was the same day she sat in on a closed-door coronavirus briefing as a member of the Senate Health Committee with the Trump administration, which Dr. Anthonly Fauci was in attendance.

According to the report, she sold stock in Resideo Technologies “worth between $50,001 and $100,000,” whose stock price “has fallen by more than half” since January. –Fox News

27 out of 29 February transactions by Loeffler and her husband were sales. One of the buys worth $100,000 – $250,000 – Citrix, is a teleworking software company, which has risen since the pandemic has progressed.

END

trouble ahead?

 

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

Federal Reserve Board broadens program of support for the flow of credit to households and businesses by establishing a Money Market Mutual Fund Liquidity Facility (MMLF)

    Through the establishment of a Money Market Mutual Fund Liquidity Facility, or MMLF, the Federal Reserve Bank of Boston will make loans available to eligible financial institutions secured by high-quality assets purchased by the financial institution from money market mutual funds…

https://www.federalreserve.gov/newsevents/pressreleases/monetary20200318a.htm

Bank of England announces further rate cut [to 0.1 from 0.25] and ramps up bond-buying program

Increase the BOE’s bond-buying program to $645 billion ($752 billion), up £200 billion…

https://www.cnbc.com/2020/03/19/bank-of-england-announces-further-rate-cut-and-launches-new-bond-buying-program.html

German manufacturing expectations record fastest-ever plunge

Germany’s three main economic institutes… outlooks that ranged from a mild contraction to an historic crash wiping out 9% of GDP…   https://www.reuters.com/article/us-germany-economy-businesssentiment/german-manufacturing-expectations-record-fastest-ever-plunge-idUSKBN2161BF?il=0

Trump’s Covid-19 daily briefing highlights

Bloomberg @business: Trump says Mnuchin, lawmakers working on more stimulusClinical trials underway on new treatments, president saysU.S. reviewing drugs approved abroad to fight virus. “I’ve directed the FDA to eliminate outdated rules and red tape so we can move on this fast.”

     OAN’s @_StephanieMyers: We’re going to make that drug available almost immediately… that’s why the FDA has been so great” regarding anti-malarial drug chloroquine and hydroxychloroquine

    FDA Commissioner Hahn: A lot of drugs are in the pipeline, adding while prohibited by law from talking about specifics re: Remdesivir, it is under consideration with the FDA, already.

@DailyCaller: “Why was the United States not prepared” for a pandemic?  President Trump: “I called for a ban from people coming in from China long before anybody. In fact, it was your network, I believe they called me a racist because I did that.”

Trump accuses liberal media of ‘siding with China’ on coronavirus pandemic

A journalist from One America News Network…sked him about “major left-wing news media, even in this room, have teamed up with the Chinese Communist Party narratives and they’re claiming you’re racist …”  “They are siding with China,” Mr. Trump said. “They’re siding with many others — China is the least of it. If we had an honest media in this country, our country would be an even greater place.”…

https://www.washingtontimes.com/news/2020/mar/19/trump-accuses-liberal-media-siding-china-coronavir/

Italy: Virologist says fears of racism slowed Italy’s coronavirus response; Florence Mayor urged Italians to “hug a Chinese” – the reason the disease has struck Italy so fiercely is because the government delayed imposing travel restrictions on people coming from China… There was a proposal to isolate people coming from the epicenter, coming from China,” Palù told CNN. “Then it became seen as racist, but they were people coming from the outbreak.”…

https://voiceofeurope.com/2020/03/italy-virologist-says-fears-of-racism-slowed-italys-coronavirus-response-florence-mayor-urged-italians-to-hug-a-chinese/

Italy’s death toll from the coronavirus overtakes China’s [3405 in Italy]

https://www.cnbc.com/2020/03/19/coronavirus-death-toll-italys-is-now-higher-than-chinas.html

WH Covid-19 coordinator Dr. Birx said virus cases will spike for two to three days as testing increases.  US cases hit 10,000 last night.

Municipalities Face Short-Term Cash Crunch, Pushing Up Borrowing Costs

A muni-market selloff that started last week is snowballing, pushing up state and local authorities’ cost of borrowing over a one-week period… Interest rates have spiked to 5.2% on floating-rate municipal securities called Variable Rate Demand Notes, or VRDNs, up from 1.3% last week… the iShares National Muni Bond ETF (MUB), has lost 14.5% since the selloff started March 9, and is now trading at a 5.8% discount to its net asset value…

https://www.barrons.com/articles/municipalities-face-short-term-cash-crunch-pushing-up-borrowing-costs-51584648881

@EmeraldRobinson: Folks, it looks like we have found some treatments for coronavirus that really work.  Plaquenil is showing promise in multiple trials.  South Korea is using Kaletra with Plaquenil on patients with good results. Trials for Favilavir & Remdesivir are promising. It’s good news.

@thehill: [Sen. Dem-VA] Tim Kaine to President Trump: “Quit the inflammatory China-bashing.

Tucker Carlson: The coronavirus pandemic was avoidable. China hid the truth about it from the beginning – Every day at White House news conferences about coronavirus, brainless reporters waste the public’s time with complaints that the administration calls the Chinese coronavirus “Chinese.” On Wednesday, an ABC reporter did it. “It’s racist!” That’s what the media is talking about in the middle of a life-threatening pandemic.  And the Chinese know this. They know that wokeness is our Achilles heel, and they know they can control us with it. They know that any conversation in this country, no matter how serious, can be shut down instantly by somebody, maybe a mindless ABC correspondent, saying “racism,” and that’s why they’re pushing it…

https://www.foxnews.com/opinion/tucker-carlson-coronavirus-pandemic-china-hid-truth

Coronavirus: China’s war on the truth – The Chinese regime prevented its scientists from finding ways to contain the epidemic. Their “crime”? Releasing the sequence to the world before the Chinese authorities did… “Chinese laboratories identified a mystery virus as a highly infectious new pathogen by late December last year, but they were ordered to stop tests, destroy samples and suppress the news…”A regional health official in Wuhan, centre of the outbreak, demanded the destruction of the lab samples that established the cause of unexplained viral pneumonia on January 1. China did not acknowledge there was human-to-human transmission until more than three weeks later…

    Unfortunately, the World Health Organization did the opposite, “praising” China for fighting the virus. Europe has also been busy appeasing China…  http://www.israelnationalnews.com/Articles/Article.aspx/25355

What We Still Don’t Know About the Wuhan Virus [Fox News’s Laura Ingraham summary]

Number 1: The true morality rate…Number 2: Contagiousness…Number 3: Why some get sick and some don’t…Number 4: Patient “Zero”?… Number 5: Trusting the Chinese…Number 6: China’s relationship with the World Health Organization… China is co-founder of the WHO, and China provides an enormous amount of funding to it… https://www.redstate.com/stu-in-sd/2020/03/19/what-we-still-don%e2%80%99t-know-about-the-wuhan-virus/

US health company will offer $135 at-home coronavirus tests where results will be available in just 48 hours from next week – Everlywell, a Texas-based company that offers lab tests directly to consumers, is rolling out an at-home coronavirus test on Monday…

https://www.dailymail.co.uk/health/article-8132593/US-digital-health-company-offer-home-135-coronavirus-test.html

[GOP] Senate Intel chair unloaded stocks in mid-February before coronavirus rocked markets

Around the time that Burr [R-NC] sold his shares of major corporations, including several hard hit hotel companies, he publicly expressed confidence about the U.S. government’s ability to fight the virus.   However in late February, Burr privately warned that the virus is “much more aggressive in its transmission than anything that we have seen in recent history,” according to a recording obtained by NPR…  https://www.opensecrets.org/news/2020/03/burr-unloaded-stocks-before-coronavirus/

@NeilWMcCabe2: My guess? Burr’s leftwing staff gave it [recording] to the leftwing operatives at NPR

[Burr, a NeverTrump Republican, has hindered investigations into intel misdeeds & the whistleblower.  Tucker Carlson and others are calling for Burr to resign.]

@seanmdav: Burr did nothing for three years to uncover the blatant FISA abuses committed by agencies he allegedly oversees. He did nothing to hold any of the corrupt agents accountable. But boy was he quick to sell off his stocks after getting Wuhan virus briefings.

OAN’s @jennfranconews: Senate GOP are considering direct cash assistance to Americans as part of a stimulus package: $1,200 check per person for those who make up to $75K; Phased out at $95K; Lowered $5 for each extra $100; Add $500 per child; No money for those with income of $99,000+

The Fed balance surged a record $356.3B to a record $4.668 trillion. (+$292B week ended 10/1 in 2008)

CNN had actor Sean Penn instruct citizens ‘what needs to be done in a crisis’.  You can’t make this up!

https://twitter.com/redsteeze/status/1240812561747984384

Today – Usually stocks rally late on the afternoon before expiry because traders expect investors will buy stocks on the expiry open to replace expiring futures contracts.  The fact that stocks declined near the end of the last hour is a big negative.  Furthermore, ESMs declined after the NYSE closed.

Obviously, expiration can exert unhealthy pressure on stocks.  Usually on expiry, the opening is strong on buying from holders of expiring futures contracts.  A soft opening today will be a negative.  The past three Fridays have had monstrous rallies late in the session that erased huge losses.  Expiring call option contracts and the probable liquidation for the weekend could thwart upward manipulators.

The huge problem is that forced liquidation of assets will continue, especially with the weekend looming.  Until the credit market greatly improves stocks will have trouble or short-lived rallies.

Will Team Trump do it usual verbal intervention?  It won’t matter.  ESMs hit 2341.00, -50.00, seconds after they opened last night.  They have bounced around like ping pong balls all evening, in a 36-handle range.  ESMs are -45.0 at 21:45 ET.  CA issued a ‘stay at home’ order; PA closed businesses.

S&P 500 Index 50-day MA: 3133; 100-day MA: 3136; 150-day MA: 3075; 200-day MA: 3042

DJIA 50-day MA: 27,270; 100-day MA: 27,610; 150-day MA: 27,272; 200-day MA: 27,105

Expected economic data: Feb Existing Home Sales 5.51m

S&P 500 Index – Trender trading model and MACD for key time frames

Monthly: Trender andMACD are negative – a close above 3769.78 triggers a buy signal

Weekly: Trender andMACD are negative – a close above 3477.46 triggers a buy signal

Daily: Trender andMACD are negative – a close above 2775.46 triggers a buy signal

Hourly: Trender is negative; MACD is positive – a close above 2451.69 triggers a buy signal

 end

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

(Greg Hunter)

 

China Virus Treatments Coming, Economic Damage Done, Ponzi Ending

By Greg Hunter On March 20, 2020

Looks like there is good news to report on effective treatments for the “China Virus” coming to the public. One is in the form of the anti-malaria drug — Chloroquine. It has been scientifically proven to be effective in treating this virus. There are also a few others, and President Trump is cutting red tape at the FDA to get them approved fast.

Now the bad news. The financial damage done by the China Virus is increasing and is not reversible. Layoffs are increasing, and businesses are going bust. Now, the Governor of California, Gavin Newsom, is telling people to shelter-in-place until further notice. Top money manager Ray Dalio says the world could lose $12 trillion because of the China Virus.

I use to say the pretending is ending when it come to our Ponzi economy propped up by fraud, crime and money printing. Now, I say the pretending has ended. Trillions will be lost, and many trillions will not be paid back now that the biggest debt bubble in history has popped.

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

-END-

see you on Monday

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