APRIL 9A/LBMA DEFAULTS ON ITS GOLD DELIVERY: ANDREW MAGUIRE EXPLAINS THIS LBMA FIASCO ON A MUST VIEW VIDEO//GOLD//HUGE SPREAD BETWEEN LONDON SPOT AND FUTURE PRICES: LONDON SPOT GOLD CLOSES UP $37.30 TO $1687.30//SILVER UP 60 CENTS TO $15.50//ALMOST 88 TONNES OF GOLD STANDING AT THE GOLD COMEX//FED INITIATES ANOTHER 2.3 TRILLION DOLLAR LOAN TO HEDGE FUNDS AS THE EX. FOR PHYSICALS BLEW UP//SCARY! MANY RECOVERED PATIENTS OF THE CORONAVIRUS SHOWING NO ANTIBODIES..AND RE INFECTIONS ARE APPEARING//CORONAVIRUS UPDATES FROM AROUND THE GLOBE//UK NOW INITIATES DIRECT FUNDING OF DEFICITS//OIL DEAL MADE BUT NOT ENOUGH//OIL FALLS/IN THE USA 6.6 MILLION MORE SOULS GO ON UNEMPLOYMENT//

GOLD:$1687.30  UP $37.30   The quote is London spot price

 

 

 

 

Silver:$15.50//UP $.60  London spot price

 

 

 

 

 

Closing access prices:  London spot

i)Gold : $1685.80  LONDON SPOT  4:30 pm

 

ii)SILVER:  $15.44//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

APRIL comex gold price CLOSE 1.30 PM:  $1729.10

MAY COMEX GOLD:  1739.70 1:30 PM

JUNE GOLD:  $1753.70  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE JUNE: $66.40

 

CLOSING SILVER FUTURE MONTH

SILVER APRIL COMEX CLOSE: 15.18

SILVER MAY COMEX CLOSE;   $16,05…1:30 PM.//SPREAD SPOT/FUTURE MAY:  55 CENTS  PER OZ

 

 

the gold market continues to be broken as future prices are much higher than spot prices.  The comex is desperate to fix things but they have no available gold.

If one is to buy gold and or gold coins, the price is around $2600. usa per oz

and silver; $29.00 per oz//

 

LADIES AND GENTLEMEN: YOU ARE NOW WITNESSING FIRST HAND THE DIFFERENCE BETWEEN PAPER GOLD/SILVER AND THE REAL PHYSICAL STUFF!!

 

COMEX DATA

 

 

 

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

today RECEIVING: 137/265

ISSUED: 63

EXCHANGE: COMEX
CONTRACT: APRIL 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,665.400000000 USD
INTENT DATE: 04/08/2020 DELIVERY DATE: 04/13/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 H MORGAN STANLEY 105
661 C JP MORGAN 63 137
686 C INTL FCSTONE 6
690 C ABN AMRO 160 13
800 C MAREX SPEC 36 8
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 265 265
MONTH TO DATE: 27,666

NUMBER OF NOTICES FILED TODAY FOR  APRIL CONTRACT: 265 NOTICE(S) FOR 26,500 OZ (0.824 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  27,666 NOTICES FOR 2,766,600 OZ  (86.050 TONNES)

 

 

 

 

SILVER

 

FOR APRIL

 

 

5 NOTICE(S) FILED TODAY FOR 25,000  OZ/

total number of notices filed so far this month: 784 for 3,920,000 oz

 

BITCOIN MORNING QUOTE  $7316 DOWN  44  

 

BITCOIN AFTERNOON QUOTE.: $7257 DOWN $100

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $37.30: AND NO PHYSICAL TO BE FOUND ANYWHERE:

WITH ALL REFINERS CLOSED//MEXICO ORDERING ALL MINES SHUT:   WHERE ARE THEY GETTING THE “PHYSICAL”?

 

 

WE HAD ANOTHER STRONG DEPOSIT OF 2.92 TONNES (PAPER TONNES/NOT REAL STUFF)

 

GLD: 988.83 TONNES OF GOLD//

 

 

WITH SILVER UP 60 CENTS TODAY: AND WITH NO SILVER AROUND

 

A HUGE DEPOSIT OF SILVER WAS ADDED TO OUR SLV INVENTORY TONIGHT: 1.84 MILLION OZ

 

 

 

RESTING SLV INVENTORY TONIGHT:

SLV: 402.381  MILLION OZ./

 

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL  BY A TINY SIZED 56 CONTRACTS FROM 139,000 DOWN TO 138,918 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE TINY LOSS IN OI OCCURRED DESPITE  OUR STRONG 21 CENT FALL IN SILVER PRICING AT THE COMEX. WE  HAD ZERO LONG LIQUIDATION. IT SEEMS THAT THE SMALL LOSS IN COMEX OI IS DUE TO  BANKER SHORT COVERING PLUS A CONSIDERABLE EXCHANGE FOR PHYSICAL ISSUANCE ALONG WITH A STRONG GAIN IN SILVER OZ STANDING. WE HAD A VERY STRONG NET GAIN IN OUR TWO EXCHANGES OF 925 CONTRACTS  (SEE CALCULATIONS BELOW)

 

 

WE HAVE ALSO WITNESSED A STRONG AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A  STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   MARCH:  00 AND MAY: 981 AND JULY: 0 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  713 CONTRACTS. WITH THE TRANSFER OF 981 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 981 EFP CONTRACTS TRANSLATES INTO 4.905 MILLION OZ  ACCOMPANYING:

1.THE 21 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.065  MILLION OZ INITIALLY STANDING FOR APRIL

 

WEDNESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 21 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS WERE TOTALLY UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY  SILVER LONGS FROM THEIR POSITIONS, AS WE DID HAVE A STRONG NET GAIN OF 981 CONTRACTS OR 4.220 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER JUDGING BY THE HUGE GAIN IN PRICE.

OUR SPREADING OPERATION HAS NOW SWITCHED INTO SILVER…..

SPREADING OPERATION FOR OUR NEWCOMERS:

WE HAVE NOW COMMENCED IN SILVER 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 MAY.

 

 

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

 HERE IS A BRIEF SYNOPSIS OF HOW THE CROOKS FLEECE UNSUSPECTING LONGS IN THE SPREADING ENDEAVOUR;

 

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

 

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

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO SILVER AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX SILVER OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF APRIL HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF MAY FOR SILVER:

 

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

 

 

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

7243 CONTRACTS (FOR 6 TRADING DAYS TOTAL 7243 CONTRACTS) OR 36.215 MILLION OZ: (AVERAGE PER DAY: 1207 CONTRACTS OR 6.035 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF APRIL: 36.215 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 5.17% 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:          929.69 MILLION OZ.

JANUARY 2020 EFP TOTALS SO FAR: 181.61 MILLION OZ

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

MARCH EFP’S …..                     452.280 MILLION OZ  //TOTALS//AND A NEW RECORD FOR THE MONTH)

APRIL EFP SO FAR                   36.215 MILLION OZ.  (EX. FOR PHYSICALS BECOMING A LOT LESS)

 

 

RESULT: WE HAD A TINY SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 56, DESPITE THE CONSIDERABLE $0.21 LOSS IN SILVER PRICING AT THE COMEX /WEDNESDAY THE CME NOTIFIED US THAT WE HAD A VERY STRONG SIZED EFP ISSUANCE OF 981 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 STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  925 CONTRACTS (DESPITE OUR 21 CENT LOSS IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 981 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 56 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH A 21 CENT LOSS IN PRICE OF SILVER/ AND A CLOSING PRICE OF $14.90 // WEDNESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY AS WELL AS A GOOD INCREASE IN QUEUE JUMPING//AMOUNT STANDING!! 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.695 BILLION OZ TO BE EXACT or 99.2% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 5 NOTICE(S) FOR  25,000 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: 23.005 MILLION OZ/APRIL 4.065 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 SMALL SIZED 1494 CONTRACTS TO 478,556 AND 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 COMEX LOSS IN PRICE  OF $0.60 /// COMEX GOLD TRADING// WEDNESDAY// WE  HAD CONSIDERABLE BANKER SHORT COVERING ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A STRONG  EX. FOR PHYSICAL ISSUANCE AND THIS WAS COUPLED WITH OUR SMALL LOSS IN THE PAPER PRICE OF GOLD. THUS THE LOSS ON THE COMEX WAS DUE TO  CONSIDERABLE BANKER SHORT COVERING, ZERO LONG LIQUIDATION, A  VERY STRONG INCREASE IN GOLD OZ STANDING  AND OUR SMALLISH GAIN IN EXCHANGE FOR PHYSICALS , . WE GAINED A SMALL 104 CONTRACTS  (0.323 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 1598 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 0. MAY: 0, AND JUNE 1598.; DEC 0 AND ALL OTHER MONTHS ZERO//TOTAL: 1598.  The NEW COMEX OI for the gold complex rests at 478,556. 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 FAIR SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 104 CONTRACTS: 1494 CONTRACTS DECREASED AT THE COMEX AND 1598 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 104 CONTRACTS OR 0.3323 TONNES. WEDNESDAY, WE HAD A TINY LOSS OF $0.60 IN GOLD TRADING.…..

AND WITH THAT TINY LOSS IN  PRICE, WE  HAD A TINY SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 0.104 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 (FELL $0.60). AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WERE  UNSUCCESSFUL  (SEE BELOW).

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

 WE HAD  A SMALL SIZED INCREASE IN EXCHANGE FOR PHYSICALS  (1598) ACCOMPANYING THE SMALL LOSS IN COMEX OI  (1494 OI): TOTAL GAIN IN THE TWO EXCHANGES:  104 CONTRACTS.  WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)A MONSTROUS INCREASE IN  STANDING AT THE GOLD COMEX FOR THE FRONT APRIL MONTH,  3) ZERO LONG LIQUIDATION AND  …ALL OF THIS WAS COUPLED WITH THAT TINY LOSS IN GOLD PRICE TRADING//WEDNESDAY

 

 

 

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 APRIL : 36,964 CONTRACTS OR 3,696,400 oz OR 114.97 TONNES (6 TRADING DAYS AND THUS AVERAGING: 6160 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 6 TRADING DAY(S) IN  TONNES: 114.97 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2019, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES

THUS EFP TRANSFERS REPRESENTS 114.97/3550 x 100% TONNES =3.23% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS EXPLODED THIS MONTH.

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   2437.87  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE                1,098.93  TONNES  (//(*AND A NEW ALL TIME RECORD ISSUANCE//22 DAYS)
APRIL TOTAL EFP. ISSUANCE:               114.97  TONNES  (EFP ISSUANCE BECOMING A LOT LESS)

 

 

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 TINY SIZED 56 CONTRACTS FROM 138,977 DOWN TO 138,918 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) HUGE BANKER SHORT COVERING , 2) THE ISSUANCE OF A CONSIDERABLE SIZED NUMBER OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A GOOD INCREASE IN SILVER OZ STANDING AT THE COMEX FOR APRIL AND 4) ZERO LONG LIQUIDATION

 

 

EFP ISSUANCE 981 CONTRACTS

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: 981; JULY: 00 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 981 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE TINY OI LOSS AT THE COMEX OF 56 CONTRACTS TO THE 981 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GOOD GAIN OF 925 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES  4.625 MILLION  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: 23.005 MILLION OZ//APRIL 4.065 MILLION OZ//

 

 

RESULT: A TINY SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 21 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// WEDNESDAY. WE ALSO HAD A STRONG SIZED 981 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

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

 

 

(report Harvey)

 

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 10.54 POINTS OR 0.37%  //Hang Sang CLOSED UP 329.96 POINTS OR 1.38%   /The Nikkei closed DOWN 7.47 POINTS OR 0.04%//Australia’s all ordinaires CLOSED UP 3.43%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0589 /Oil UP TO 27.29 dollars per barrel for WTI and 34.12 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0589 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0713 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

LET US BEGIN:

GOLD

Let us head over to the comex:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A TINY 1494 CONTRACTS TO 478,556 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 TINY COMEX OI LOSS WAS SET WITH OUR LOSS OF $0.60 IN GOLD PRICING //WEDNESDAY’S  COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (1598 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)   ZERO LONG LIQUIDATION AND 3)  ANOTHER STRONG INCREASE IN GOLD OZ STANDING AT THE COMEX WITH THAT HUGE STANDING  APRIL/GOLD…  AS WE ENGINEERED A FAIR GAIN ON TWO EXCHANGES OF 1178 CONTRACTS.

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF APRIL..  THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 1598 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 0, MAY: 0  JUNE : 1598 AND 0 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1598 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:  104 TOTAL CONTRACTS IN THAT 1598 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A SMALL SIZED 1494 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A CONSIDERABLE AMOUNT OF EXCHANGE FOR PHYSICALS WITH A HUGE BANKER SHORT COVERING ACCOMPANYING OUR STRONG COMEX GOLD TONNAGE STANDING FOR DELIVERY.

 

 

 

THE BANKERS WERSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL BY $0.60). THEY WERE  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED 0.323 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 104 CONTRACTS OR 10400 OZ OR 0.323 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:  478,556 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 47.86 MILLION OZ/32,150 OZ PER TONNE =  1488 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1488/2200 OR 67.63% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 205,948 contracts

CONFIRMED COMEX VOL. FOR YESTERDAY137,206 contracts//

APRIL 9

APRIL GOLD CONTRACT MONTH

 

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  

136,706.860

OZ

BRINKS

HSBC

 

 

 

No of oz served (contracts) today
265 notice(s)
 26,500 OZ
(0.824 TONNES)
No of oz to be served (notices)
546 contracts
(54600 oz)
1.70 TONNES
Total monthly oz gold served (contracts) so far this month
27,666 notices
2,766,600 OZ
86.05 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

i ) We had 0 deposits into the dealer

 

 

total dealer deposits: nil  oz

total dealer withdrawals: NIL oz

we had 2 deposit into the customer account

i) Into HSBC 32,022.545 oz

ii) Into Brinks:  104,684.315 oz

 

 

 

 

 

 

 

total deposits: 136,706.860   oz

 

 

 

we had 0 gold withdrawals from the customer account:

 

total gold withdrawals;  nil   oz

We had 0  kilo transactions

 

We had only 0 4 KC bar transaction

ADJUSTMENTS: 1

:  dealer to the customer:

HSBC: 50,022.954 oz was adjusted up to the dealer from the customer account

 

 

The front month of APRIL saw its open interest register 811 contracts for a LOSS of  958 contacts. We had 1460 notices filed yesterday so we GAINED A VERY STRONG 502  contracts or AN ADDITIONAL 50,200 oz will  stand at the comex as these guys refused to morph into London based forwards and they also negated a fiat bonus

 

 

May saw its ANOTHER GAIN of 384 contracts to stand at  2753.

June saw a  LOSS OF 1147 contracts down to 347,851

 

 

We had 265 notices filed today for 26,500 oz

 

FOR THE  APRIL 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 63 notices were issued from their client or customer account. The total of all issuance by all participants equates to 265 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 137 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 APRIL /2020. contract month, we take the total number of notices filed so far for the month (27,666) x 100 oz , to which we add the difference between the open interest for the front month of  APRIL. (811 CONTRACTS ) minus the number of notices served upon today (265 x 100 oz per contract) equals 2,821,200 OZ OR 87.75 TONNES) the number of ounces standing in this  active month of APRIL

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

No of notices served (27,666)x 100 oz)  + 811 OI for the front month minus the number of notices served upon today (265 x 100 oz which equals 2,821,200 oz standing OR 87.75 TONNES in this active delivery month which is  a great amount for gold standing for a APRIL. delivery month.

THIS GREATLY SURPASSES THE PREVIOUS RECORD OF 42. TONES OF GOLD STANDING IN ANY MONTH

We gained 502 contracts OR an additional 50,200 OZ WILL  STAND AT THE COMEX as these guys decided it best to look for metal on the this side of the pond, first before travelling to London..

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

341,434.443 oz PLEDGED  MARCH 2020  JPMORGAN:  10.62 TONNES

42,548.308.00 PLEDGED  APRIL 3/2020: SCOTIA:            1.3234

TOTAL PLEDGED GOLD NOW IN EFFECT:  560,194.208  OZ OR 17.424  TONNES

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 120.24 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS

total registered or dealer gold:   4,429,068.994 oz or  137.762 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:  341,434.443 oz (or 10.6200 tonnes)
total pledged gold:
c)  pledged gold at Scotia: 1.3234 tonnes or 42,548.308 oz which cannot be settled  (1.3234 tonnes)
total weight of pledged:  560,194.208 oz or 17.424 tonnes
thus:
registered gold that can be used to settle upon: 3,868,874.7  (120.34 tonnes)
true registered gold  (total registered – pledged tonnes  3,868,874.7 (120.34 tonnes)
total eligible gold:  12,812.580.591 oz (398.52 tonnes)

total registered, pledged  and eligible (customer) gold;   17,241,649.585 oz 536.28 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:  without a  doubt… held in London not N.Y.:  150.33 tonnes

total gold net of 4 GC:  381.700 tonnes

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

 

 

end

SILVER

April 9/2019

And now for the wild silver comex results

Total COMEX silver OI FELL BY A TINY SIZED 56 CONTRACTS FROM 138,977 DOWN TO 138,918 (AND MOVING FURTHER FROM  OUR 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 TINY OI COMEX LOSS TODAY OCCURRED DESPITE OUR STRONG 21 CENT DECREASE IN PRICING/WEDNESDAY.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A CONSIDERABLE ISSUANCE OF EXCHANGE FOR PHYSICALS 2) STRONG INCREASE IN SILVER OZ STANDING AT THE COMEX, 3)  HUGE BANKER SHORT COVERING ZERO LONG LIQUIDATION OCCURRING WITH OUR HUGE SILVER ADVANCE. 

WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF APRIL

.APRIL ACTIVE DELIVERY MONTH.

 

THE FRONT MONTH OF APRIL HAS A TOTAL OPEN INTEREST OF 29 CONTRACTS, AND AS SUCH LOST 1 CONTRACTS.  WE HAD 5 NOTICES SERVED UPON YESTERDAY SO WE GAINED 4 CONTRACTS OR 20,000 OZ WILL STAND AT THE COMEX AS THEY REFUSED TO MORPH INTO LONDON BASED CONTRACTS AS THEY LOOK FOR METAL ON THIS SIDE OF THE POND.

 

THE BIG CONTRACT OF MAY SAW ITS OI FALL  BY 5143  UP TO 63,708.

JUNE SAW A GAIN OF 3 CONTRACTS RISING TO 28.

 

 

We, today, had  5 notice(s) FILED  for 25,000, OZ for the APRIL, 2019 COMEX contract for silver

APRIL 9/2019

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 613,165.430 oz
CNT
DELAWARE
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
NIL
No of oz served today (contracts)
5
CONTRACT(S)
(25,000 OZ)
No of oz to be served (notices)
24 contracts
 120,000 oz)
Total monthly oz silver served (contracts)  789 contracts

3,945,000 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  0 deposits into the customer account

into JPMorgan:   0

ii)into everybody else: 0

 

 

 

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

JPMorgan now has 160.819 million oz of  total silver inventory or 50.04% of all official comex silver. (160.819 million/321.170 million

total customer deposits today: 607,477.800   oz

we had 3 withdrawals:

 

i) Out of CNT:  602,338.380 oz
ii) Out of Delaware: 5981.35 oz
iii) out of Scotia:  845.700 oz

 

 

total withdrawals;  613,165.430  oz

We had 0 adjustments: and all from the dealer to the customer:

 

 

 

 

total dealer silver:  82.152 million

total dealer + customer silver:  320.059 million oz

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the APRIL 2020. contract month is represented by 5 contract(s) FOR 25,000 oz

 

To calculate the number of silver ounces that will stand for delivery in APRIL we take the total number of notices filed for the month so far at 789 x 5,000 oz = 3,945,000 oz to which we add the difference between the open interest for the front month of APRIL.(29) and the number of notices served upon today 5 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the APRIL/2019 contract month: 789 (notices served so far) x 5000 oz + OI for front month of APRIL (29)- number of notices served upon today (5) x 5000 oz of silver standing for the APRIL contract month.equals 4,065,000 oz.

WE GAINED 4 CONTRACTS OR AN ADDITIONAL 20,000 OZ OF SILVER WILL STAND AT  THE COMEX.

adjustments:
Out of the dealer Delaware:  25,364.193 oz was adjusted out of the dealer and this lands into the customer account of Delaware

 

 

 

 

 

TODAY’S ESTIMATED SILVER VOLUME: 80,446 CONTRACTS //

 

 

 

 

FOR YESTERDAY:  65,356 CONTRACTS..,CONFIRMED VOLUME

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 65,356 CONTRACTS EQUATES to 326 million  OZ  46.67% 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 FALLS TO -1.38% ((APRIL 9/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -0.10% to NAV:   (APRIL 9/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1.38%

(courtesy Sprott/GATA

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

NAV 15.54 TRADING 15.44///DISCOUNT 0.62

END

 

 

And now the Gold inventory at the GLD/

WITH GOLD UP $37.30 TODAY: ANOTHER HUGE CHANGE IN GOLD INVENTORY: A STRONG 2.92 TONNES WAS ADDED TO THE GLD//GOLD INVENTORY RESTS TONIGHT AT..988.63 TONNES

APRIL 8/WITH GOLD DOWN $.60//ANOTHER HUGE CHANGE IN GOLD INVENTORY/;; A STRONG 1.45 TONNES WAS ADDED TO THE GLD/GOLD INVENTORY RESTS AT 985.71 TONNES

APRIL 7/WITH GOLD UP $.30: ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 5.27 TONNES OF GOLD INTO THE GLD INVENTORY//INVENTORY RESTS AT 984.26 TONNES

APRIL 6//WITH GOLD UP $32.00//ANOTHER STRONG DEPOSIT INTO THE GLD; A HUGE 7.02 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT : 978.99 TONNES

APRIL 3//WITH GOLD UP $7.80 TODAY//ANOTHER STRONG DEPOSIT OF 3.22 TONNES INTO THE GLD/INVENTORY RESTS AT 971.97 TONNES

APRIL 2//WITH GOLD UP $31.80 TODAY: ANOTHER STRONG DEPOSIT OF 1.75 TONNES INTO THE GLD//INVENTORY RESTS AT 968.75 TONNES

APRIL 1/WITH GOLD DOWN $7.70 TODAY: ANOTHER CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.62 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 967.00 TONNES

MARCH 31//WITH GOLD DOWN $32.70//A MONSTROUS PAPER DEPOSIT OF 10.84 TONNES INTO THE GLD//INVENTORY RESTS AT 964.38 TONNES

MARCH 30/WITH GOLD DOWN $6.10 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 953.54 TONNES

MARCH 27.WITH GOLD DOWN $16.40: A BIG  CHANGE IN GOLD INVENTORY AT THE GLD  A HUGE DEPOSIT OF 4.39 TONES INTO THE GLD/INVENTORY RESTS AT 953.54 TONES

MARCH 26//WITH GOLD UP $24.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 13.17 TONNES INTO THE GLD/INVENTORY RESTS AT 949.15 TONNES

MARCH 25/WITH GOLD DOWN $11.40 TODAY//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 11.99 TONES INTO THE GLD INVENTORY////INVENTORY RESTS AT 935.98 TONNES

MARCH 24//WITH GOLD UP $67.00 TODAY: A HUGE  CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 15.80 TONNES OF GOLD INTO GLD////INVENTORY RESTS AT 923.99 TONNES..THIS PROVES THAT THE GLD IS A FRAUD AS LONDON SUSPENDED DELIVERY AS WELL AS ALL REFINERS.  THEY HAD NO WAY OF GETTING ANY PHYSICAL OZ INTO ITS INVENTORY//

MARCH 23//WITH GOLD UP $76.00 TODAY: A  HUGE PAPER WITHDRAWAL OF 21.50 TONNES FROM THE GLD////INVENTORY RESTS AT 908.19 TONNES

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 tonnes

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

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at

APRIL 9/2020/  988.63 tonnes*

IN LAST 796 TRADING DAYS:   +42,49 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 696 TRADING DAYS;+217,47  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

APRIL 9/WITH SILVER UP 60 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A HUGE DEPOSIT OF 1.84 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 402.381 MILLION OZ.

APRIL 8//WITH SILVER DOWN 21 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 401.541 MILLION OZ///

APRIL 7/WITH SILVER UP 26 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 5.766 MILLION OZ INTO THE SLV..//INVENTORY RESTS AT 395.826 MILLION OZ

APRIL 6/WITH SILVER UP 50 CENTS TODAY: ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 395.826 MILLION OZ.

APRIL 3//WITH SILVER DOWN 15 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 746,000 OZ INTO THE SLV//INVENTORY RESTS AT 395.826 MILLION OZ

APRIL 2/WITH SILVER UP 65 CENTS;  A SMALL CHANGE TODAY..A WITHDRAWAL OF .335 MILLION OZ TO PAY FOR FEES//INVENTORY RESTS AT 394.826 MILLION OZ/

APRIL 1/WITH SILVER DOWN 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 395.181 MILLION OZ//

MARCH 31/WITH SILVER UP 2 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY: A DEPOSIT OF 1.679 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 375.181 MILLION OZ//

MARCH 30/WITH SILVER DOWN 44 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 393.502 MILLION OZ.

MARCH 27/WITH SILVER DOWN 5 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MONSTROUS PAPER DEPOSIT OF 8.115 MILLION OZ INTO THE SLV../INVENTORY RESTS AT 393.502  MILLION OZ//

MARCH 26/WITH SILVER DOWN 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 385.387 MILLION OZ///

MARCH 25/WITH SILVER UP 44 CENTS TODAY: TWO HUGE CHANGES IN SILVER INVENTORY AT THE SLV: TWO DEPOSITS OF 7.369 MILLION OZ AND 2.239 MILLION OZ OF PAPER SILVER INTO THE SLV////INVENTORY RESTS AT 385.387 MILLION OZ//

MARCH 24//WITH SILVER UP 100 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 375.779 MILLION OZ///

MARCH 23//WITH SILVER UP 70 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV; A DEPOSIT OF 2.332 MILLION OZ OF SILVER INTO THE SLV////INVENTORY RESTS AT 375.779 MILLION OZ

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

 

 

APRIL 9.2020:

SLV INVENTORY RESTS TONIGHT AT

402.381 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 4.59/ and libor 6 month duration 1.23

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

G0LD LENDING RATE: – 3.36

ONLY GOLD VAPOUR PRESENT AND ACCOUNTED FOR.

 

XXXXXXXX

12 Month MM GOFO
+ 2.29%

LIBOR FOR 12 MONTH DURATION: 1.05

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.24

GOLD NON EXISTENT

end

 

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

A MUST LISTEN TO INTERVIEW OF CHRIS POWELL WITH RORY HALL

(GATA)

In Daily Coin interview, GATA secretary says gold is the secret knowledge of the financial universe

 Section: 

3:22p ET Wednesday, April 8, 2020

Dear Friend of GATA and Gold:

Interviewed today by The Daily Coin’s Rory Hall, your secretary/treasurer explains why gold is the secret knowledge of the financial universe, the determinant of the price of all capital, labor, goods, and services in the world, which is why governments long have been striving to control it.

The interview is 40 minutes long and can be viewed at The Daily Coin here:

https://thedailycoin.org/2020/04/08/gold-the-secret-knowledge-of-the-fin…

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

end

the following is the most important interview that you must see.  Andrew Maguire explains in detail what is happening inside London right now and why the LBMA has defaulted on gold deliveries.  He outlines the complete bust of the BIS….

a must view

(courtesy Harvey Organ, C Powell/Andrew Maguire)

Gold contracts default, deliveries rationed in London, trader Maguire says

 Section: 

3:07p ET Thursday, April 9, 2020

Dear Friend of GATA and Gold:

In extended comments given this week for a weekly promotional video for Kinesis Money, London metals trader Andrew Maguire reviews in detail the ongoing collapse of the fractional-reserve gold banking system based in London.

While Maguire’s topic is complicated, this seems to be the essence of his remarks:

The new gold futures contract offered by the New York Commodities Exchange, purporting to represent a quarter interest in an unallocated 400-ounce bar held in London, is just another form of “paper” gold meant to replace the “exchange for physicals” form that recently has purported to settle most contracts in New York.

..Gold price suppression lately has been meant to protect the U.S. bond market and bond derivatives held by too-big-to-fail banks.

— Recent overwhelming demand for physical delivery in gold in London has caused the unprecedented divergence between spot gold and gold futures prices.

— In recent days gold contracts presented for delivery in London have been defaulted on, while other deliveries have been fulfilled only partially, metal being rationed among claimants, with huge premium payments required for delivery.

— The London Bullion Market Association no longer can make an effective daily market in gold and has irretrievably lost its credibility.

— Ever since a discussion of the gold issue in Parliament last summer, British market regulators often have been warned about the danger posed to taxpayer-backed banks by naked shorting in the gold market but have done nothing about it.

— Pent-up demand for physical gold is far greater than what can be met by the limited resumption of operations by Swiss refineries.

— Foreign-exchange price ratios now imply a gold price well above $2,000 and a silver price above $50.

— The world financial system was already breaking down before the virus epidemic, with the epidemic just accelerating it.

Maguire’s comments begin at the 16:40 mark of the Kinesis Money video at YouTube here:

https://www.youtube.com/watch?v=4fM66h1fZQo

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

end

iii) Other physical stories:

HUGE NEWS!!

Kevin Wallien

8:18 AM (4 minutes ago)

to me
Harvey IMO this is a powder keg with the fuse lit. Can you pass it on.
Well this sure looks nefarious. I have been trying since March 17 to get my street name equities into DRS to no avail. Keep an eye on DTCC. This is all crumbling.
Take a look at the first paragraph on PDF. Everything else at DTCC is functioning it seems but processing titles. Could it be the titles are all being used as collateral by the DTCC? After all they are the clearing house for trillions of centrally cleared derivatives making them the ultimate counterparty when one side can’t pay.
“Effective at the close of business on Wednesday, April 8, 2020, DTC is suspending all physical processing services until further notice due to ongoing concerns related to the COVID-19 virus. All other DTC services remain Business as Usual.”

https://www.dtcc.com/-/media/Files/pdf/2020/4/8/13276-20.pdf

“To date, has there been any operational impact on DTCC due to the coronavirus?
Effective at the close of business on Wednesday, April 8, 2020, DTC is suspending all physical securities processing services until further notice due to ongoing concerns related to the COVID-19 virus. Please refer to Important Notice B#13276-20: Temporary Suspension of DTC Physical Securities Processing, posted April 8, 2020, for more information. We will reassess the situation and update the status on Thursday April 30, 2020. All other DTC services remain business as usual. DTCC remains open and we continue to provide uninterrupted access to our products and services to our clients across the globe.”

https://www.dtcc.com/~/media/Files/PDFs/Email-Files/Client-FAQ-Coronavirus.pdf?mkt_tok=eyJpIjoiTURFellqVXhPR0V5TVRSaiIsInQiOiJPSzFvVE1qM0ZWTWdXR1ZzZlB3c1pNYWJmOWZUUjh1Qyt0b29sYmV4cnIwWWRXYXdWTjQrSXNaOHpyYWQ1RlNIWVFQeGhoYTN3cDJaRFwvb1JPRGdzR2c9PSJ9

Kevin
end
Gold spikes higher after the Federal reserve announces announces $2.3 trillion in loans to business…no doubt much of this is going to cover the huge hole with respect to the losses on shorts on those Ex. for physicals which blew up last week…
(Kitco)

Gold price spikes higher after Federal Reserve announces $2.3 trillion in loans

Kitco News

(Kitco News) –The U.S. Federal Reserve continues to throw more money in to the U.S. financial system to support the sputtering economy.Thursday, the U.S. central bank said that it would provide up to $2.3 trillion dollars in loans for all businesses impacted by the growing COVID-19 pandemic.“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” said Federal Reserve Board Chair Jerome H. Powell said in a statement.”The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible,” he added.Gold prices have shot higher in reaction to the latest central bank announcement. June gold futures last traded at $1,722.80 an ounce, up more than 2% on the day.Commodity analysts have said previously that they can’t be anything but bullish on gold as governments and central banks around the world flood financial markets with liquidity.Jim Wyckoff, senior technical analyst at Kitco.com said that investors should forget about bazooka analogies to previous stimulus measures. He said this latest announcement is another atomic bomb of liquidity.“The $2.3 trillion stimulus means the Fed is all-in and then some on getting the U.S. economy back in shape as soon as possible,” he said.Wyckoff added that he expects the latest announcement to continue to drive gold prices higher.

“The massive infusion of money into the U.S. financial system cannot help but produce worrisome price inflation down the road. It’s likely the smart-money metals traders have realized this and are buying those hard assets as an inflation hedge,” he said.

The latest announcement from the Federal Reserve comes after a wild March. In three emergency announcements the U.S. central bank bought interest rates down to the zero bound range and introduced unlimited quantitative easing measures.

end
Zero hedge//same story as above:

Fed Unveils New Bailout Program, Will Provide Up To $2.3 Trillion In Loans To “Support Economy”

In our report from last night that JPM has halted all non-government guaranteed small business loans on what we surmised was fears of a default tsunami set to hit America’s companies, we asked “just how bad is it going to get” and implicitly, if not commercial banks, then who will fund America’s “main street” businesses?

We got the answer this morning when the Federal Reserve announced its latest series of sweeping, unprecedented action to backstop the credit pillars supporting the entire economy and provide as much as $2.3 trillion in additional loans during the coronavirus pandemic, including starting programs to aid small and mid-sized businesses as well as state and local governments“The funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.”

Among the various initiatives are:

  • The Main Street Lending Program will “ensure credit flows to small and mid-sized businesses with the purchase of up to $600 billion in loans.” This means that the Paycheck Protection Program will likely be expanded by an additional $250BN to reach a total of $600BN.
  • Expanding the size and scope of the Primary and Secondary Market Corporate Credit Facilities and the Term Asset-Backed Securities Loan Facility to support as much as $850 billion in credit
  • A Municipal Liquidity Facility which will offer as much as $500 billion in lending to states and municipalities, by directly purchasing that amount of short-term notes from states as well as large counties and cities
  • Fed Can and Should Take More Risk Than It Did During ’08 Crisis, Tarullo Says

“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” said Chair Jerome Powell. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”

As we explained previously, this is part of the Fed’s “Multitrillion Dollar Helicopter Credit Drop“, whereby the Treasury provides the Fed with $454 billion set aside in the passed $2.2 trillion aid package for Treasury to backstop lending by the Fed. The Treasury’s contribution, can be thought of as “equity” — that is, Treasury will stand in a “first loss” position on every loan made to corporate America.

The Fed then contributes the “leverage” — the money that will help make loans using the Treasury’s equity and be levered 10-to-1. Such leverage assumes no more than 10% capital losses (on “AAA-rated” paper), as the Fed is not allowed to be impaired. Of course, in a real crash the losses will be far greater but we’ll cross that particular bailout of the bailout when we get to it. The loan fund, now levered up ten-fold thanks to the Fed’s own $4.1 trillion, will then make loans to businesses.

“Effectively one dollar of loss absorption of backstop from Treasury is enough to support $10 worth of loans.” Fed Chair Powell said in in a rare nationally-televised interview two weeks ago. “When it comes to this lending we’re not going to run out of ammunition” and he is right – the Fed can apply any leverage it wants; after all the value of the collateral it lends against is whatever the Fed decides!

Visually, the magic of the Fed’s 10x leverage looks as follows:

The overall size of the Fed-Treasury loan fund depends on how much Fed money will be supplied for every dollar of “equity” the Treasury contributes.

In theory, the answer is a function of what is called the “credit box.” If the loan program makes loans only to investment grade companies (those rated BBB or higher), the Fed will contribute more capital than if the loan program makes loans to companies with lower credit ratings or no ratings at all. In other existing Fed loan programs, the Fed supplies about $9 for every $1 of Treasury capital, but in those programs the loans are secured by extremely high-quality collateral (often AAA).

 

In practice, the Fed – which can “print” an infinite amount of dollars in exchange for any “collateral” including baseball cards, donkey turds, used condoms or oxygen – can lever up 20x, 50x, even 100x or more with zero regard for the underlying collateral.

Fast forward to today when we are now seeing this “credit paradrop” in action.

Commenting on the new Main Street Lending Program, the Fed said that it “will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year. Eligible banks may originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses. Banks will retain a 5 percent share, selling the remaining 95 percent to the Main Street facility, which will purchase up to $600 billion of loans. Firms seeking Main Street loans must commit to make reasonable efforts to maintain payroll and retain workers. Borrowers must also follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act. Firms that have taken advantage of the PPP may also take out Main Street loans.”

Separately, to support further credit flow to households and businesses, the Federal Reserve will broaden the range of assets that are eligible collateral for TALF. As detailed in an updated term sheet, TALF-eligible collateral will now include the triple-A rated tranches of both outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations. The size of the facility will remain $100 billion, and TALF will continue to support the issuance of asset-backed securities that fund a wide range of lending, including student loans, auto loans, and credit card loans.

The Municipal Liquidity Facility will help state and local governments better manage cash flow pressures in order to continue to serve households and businesses in their communities. The facility will purchase up to $500 billion of short term notes directly from U.S. states (including the District of Columbia), U.S. counties with a population of at least two million residents, and U.S. cities with a population of at least one million residents. Eligible state-level issuers may use the proceeds to support additional counties and cities. In addition to the actions described above, the Federal Reserve will continue to closely monitor conditions in the primary and secondary markets for municipal securities and will evaluate whether additional measures are needed to support the flow of credit and liquidity to state and local governments.

This may not be the end of it: the Fed explained that it and the Treasury “recognize that businesses vary widely in their financing needs, particularly at this time, and, as the program is being finalized, will continue to seek input from lenders, borrowers, and other stakeholders to make sure the program supports the economy as effectively and efficiently as possible while also safeguarding taxpayer funds. Comments may be sent to the feedback form until April 16.”

Powell is scheduled to speak at 10 a.m. New York time in a webinar hosted by the Brookings Institution.

end
(courtesy Pam and Russ Martens)

The New York Fed, Owned by Multinational Banks, Is Nationalizing Capital Markets

By Pam Martens and Russ Martens: April 9, 2020 ~

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

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

For the first time in the history of the Federal Reserve, it has signed on to a plan with Congress to nationalize the unmanageable debts of global banks and other multinational corporations and put the U.S. taxpayer on the hook for the losses. Conducting the bulk of these programs will be the Federal Reserve Bank of New York, known as the New York Fed, which is a private institution owned by (wait for it) multinational banks.

Because the New York Fed is owned by multinational banks and is allowed to create trillions of dollars out of thin air to conduct bailouts of global banks and multinational corporations since it created this precedent in 2008, it is effectively functioning as a multinational central bank with the Federal Reserve in Washington, D.C. and Fed Chairman Jerome Powell little more than titular props for what’s really going on.

According to the language in the recent stimulus bill (CARES Act) passed by Congress and signed into law by President Trump, together with an interview Fed Chairman Jerome Powell gave to the Today show on March 26, the nationalization of bad debts will work like this: the U.S. Treasury will hand $454 billion of taxpayers’ money to the Federal Reserve. The Fed will, in turn, hand the bulk of this money to the New York Fed. The New York Fed will then create Special Purpose Vehicles (SPVs) using the $454 billion as loss absorbing capital (equity) to leverage its purchases of bad debts to $4.54 trillion. Ostensibly, if debt markets keep sinking and the New York Fed needs to buy up more bad debts from the global banks and multinational corporations, Congress and the U.S. Treasury will put the U.S. into ever deeper debt to oblige our multinational overlords. (Before the last financial crisis, U.S. national debt stood at $11 trillion. It has more than doubled in a dozen years to the current $24 trillion. Much of that growth resulted from fiscal stimulus measures to shore up the U.S. economy that multinational banks on Wall Street destroyed in 2008.)

So far, the Fed has newly announced it will be engaging in outright purchases of corporate bonds in both the primary and secondary markets, exchange traded funds, asset-backed commercial paper along with its ongoing purchases of Treasury securities and agency mortgage-backed securities. It is also making trillions of dollars in revolving loans to multinational trading houses against collateral that includes stocks. (Former Fed Chair Janet Yellen was on CNBC recently advocating for the Fed to consider outright purchases of stocks and junk bonds, effectively nationalizing those markets as well.)

Powell explained the newly hatched plan as follows on the Today show:

“In certain circumstances like the present, we do have the ability to essentially use our emergency lending authorities and the only limit on that will be how much backstop we get from the Treasury Department. We’re required to get full security for our loans so that we don’t lose money. So the Treasury puts up money as we estimate what the losses might be…Effectively $1 of loss absorption of backstop from Treasury is enough to support $10 of loans.”

Some writers have suggested that this amounts to the U.S. Treasury taking over the Fed. But according to the text of the stimulus bill, the Treasury is simply the provider of the taxpayer cash to the Fed. And as we can see by the contracts now being drawn up by the New York Fed to hire Wall Street firms to manage these programs, the contracts are being signed solely by the New York Fed and the Wall Street firms. (See Icahn Called BlackRock “An Extremely Dangerous Company”; the Fed Has Chosen It to Manage Its Corporate Bond Bailout Programs.)

This is exactly what happened during the last financial crisis: the New York Fed was put in charge of the bailout programs and then farmed them out to multinational banks like Goldman Sachs and JPMorgan Chase – who are among the largest shareowner owners of the New York Fed. In fact, JPMorgan Chase, while Dimon was sitting on the Board of the New York Fed, signed a highly lucrative contract to serve as custodian for the New York Fed’s purchases of agency mortgage-backed securities, which currently total $1.45 trillion. That contract has now been in effect for more than 11 years as the Fed promised to unwind that program, but never did, and is now doubling down on it.

During the more than 11 years that the New York Fed has allowed JPMorgan Chase to hold $1.45 trillion of Fed assets, it has pleaded guilty to three criminal felony charges and is currently under another criminal probe by the U.S. Department of Justice for turning its precious metals desk into a racketeering enterprise. One of JPMorgan Chase’s primary regulators is (wait for it) the New York Fed. One of the former bank examiners for the New York Fed, Carmen Segarra, was pressured by the “relationship managers” at the New York Fed to change her review of Goldman Sachs. The pressure was so intense that she went to the Spy Store, bought a tiny microphone, and taped the internal conversations. When she wouldn’t change her review, she was fired.

Let’s remember where all of these bad debts came from on which the U.S. taxpayer is now going to eat the losses. These multinational corporations and multinational banks issued debt in order to buy back trillions of dollars of their own shares to inflate their profits so that their CEOs and other top executives could claim great stock performance and get paid 200 to 400 times what their average workers were getting paid. According to the Economic Policy Institute, CEO compensation has grown 940 percent since 1978 while the typical worker’s compensation has risen by just 12 percent during that span of time. Jamie Dimon has become a billionaire as a result of stock options at his bank.

Today’s unprecedented nationalization of capital markets is the end result of the moral hazard Congress created by allowing the New York Fed, owned by multinational banks, to oversee the bulk of $29 trillion that the New York Fed created out of thin air during the last financial crisis and used to bail out its own shareholder banks and foreign global banks that were interconnected via derivative contracts that were blowing up.

The definition of a multinational bank is one that physically operates in more than one country. An international bank, on the other hand, is one that engages in cross-border transactions but does not set up operations in more than their home country.

Four of the largest shareowners of the New York Fed are the following multinational banks: JPMorgan Chase, Citigroup, Goldman Sachs, and Morgan Stanley.

JPMorgan Chase describes itself as “a leading global financial services firm with assets of $2.4 trillion and operations worldwide…we operate in more than 60 countries with more than 240,000 employees worldwide.”

Citigroup says: “In a word, Citi is global. Our more than 200,000 employees operate in a network of 1,000 cities and 160 countries and jurisdictions worldwide.”

Goldman Sachs brags that it “maintains offices in all major financial centers around the world.”

Morgan Stanley calls itself a “true global citizen, with offices and employees around the world.”

How did the underpaid, overworked, and now jobless American workers become the lender of last resort to global billionaire bankers?

The Federal Reserve Board of Governors hoped that the details of its negligence in turning over its infinite money creation to the New York Fed during the last financial crisis would never see the light of day. It battled media lawsuits to get the details of the sums loaned out and to whom for more than two years. When it lost at both the District Court and Appellate Court in New York, a group called the Clearing House Association, which included JPMorgan Chase and Citigroup, attempted to get the U.S. Supreme Court to overturn the  public’s right to know about the Fed’s secret money spigot. The Supreme Court did not take the case and the scandalous details were revealed as a result of that as well as the Dodd-Frank financial reform legislation of  2010 mandating the release of the details of some of the programs by December 2010.

Foreign central banks got $10 trillion of the $29 trillion in loans. The following chart shows where the other $19.5 trillion in cumulative loans went.

Largest Recipients of Federal Reserve Bailout Funds, 2007 to 2011

Largest Recipients of Federal Reserve Bailout Funds, 2007 to 2011
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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 THURSDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/7 AM EST

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0589/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0713   /shanghai bourse CLOSED UP 10.54 POINTS OR 0.37%

HANG SANG CLOSED UP 329.96 POINTS OR 1.38%

 

2. Nikkei closed DOWN 7.47 POINTS OR 0.04%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 100.1/Euro FALLS TO 1.0859

3b Japan 10 year bond yield: RISES TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.85/ 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:: 27.29 and Brent: 34.42

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.35%/Italian 10 yr bond yield DOWN to 1.62% /SPAIN 10 YR BOND YIELD UP TO 0.79%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.97: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.79

3k Gold at $1671.50 silver at: 15.33   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 106/100 in roubles/dollar) 73.09

3m oil into the 27 dollar handle for WTI and 34 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 108.85 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 .9701 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0559 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 0.35%

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 0.74% early this morning. Thirty year rate at 1.34%

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

6.  TURKISH LIRA:  UP  TO 6.7262..

Futures Reverse Rally As Oil Slides Ahead Of Surge In Unemployment Claims

U.S. stock index futures dipped on Thursday, reversing a 3-day rally as investors braced for another staggering weekly jobless claims number, while European stocks clung to modest gains on the last trading day before the Easter holiday. Oil initially rose in the wake of Russia signaling readiness to cut output although US resistance to join the conversation has sparked concerns today’s OPEC+ meeting could end up a major disappointment.

Early in the overnight session, futures continued their multi-day ramp on early signs the coronavirus outbreak in U.S. hot spots was close to peaking, with the S&P 500 ending more than 3.4% higher after President Trump suggested the government could reopen the country in phases and maybe ahead of schedule. However, sentiment has warned as the session continued ahead of today’s plethora of risk events.

First and foremost, traders will eye the number of initial jobless claims which are expected to have surged by 5.5 million this week,  (Harvey:  actual 6.5 million ) and to 15 million in the past three weeks. Estimates in the survey were as high as 9.295 million, and the final report from the Labor Department is expected at 8:30 a.m. ET.

Then again, the worse the initial claims number, the better it will likely for stocks. As DB’s Jim Reid writes, “brace yourself ahead of what will likely be the strangest Easter weekend in your lifetime as today we have another weekly jobless claim report to look forward to in the US. Having said that the S&P 500 has rallied on the day of the staggeringly bad numbers over the last two weeks (+6.24% and +2.28% respectively) so it may be as much a curiosity of how bad unemployment is going to be in the short term as much as it is about markets.”

A major event today will be the OPEC+ virtual meeting, where the Kuwait Oil Minister said the intention is moving towards reaching an agreement to lower output by a large amount between 10mln-15mln bpd, even though the Kremlin declined to comment on reports their maximum cut would be 2mln BPD. Russia and Saudi Arabia still need to settle differences regarding plans for a global oil production cut according to sources, regarding baseline and quantity with Vladimir PUtin saying he has no plans to talk to Trump or the Saudis. Meanwhile, yesterday we learned that consumption in India, the world’s third-biggest user, has collapsed by as much as 70% with the country in lockdown which is why Goldman said that even a 10mmb/d oil cut would have no impact on its $20 oil price target.

In Europe, the Stoxx Europe 600 Index trimmed an advance amid reports that Italy and the U.K. may extend lockdowns to combat the coronavirus outbreak, though it stayed higher overall. The impact of the outbreak continued to surface in corporate results with Switzerland’s largest banks bowed to pressure to delay dividends even as UBS Group AG reported a surprise jump in first-quarter profit.

Earlier in the session, most Asian stocks rose, led by energy and finance, after rising in the last session. Australia’s S&P/ASX 200 gained 3.5% and India’s S&P BSE Sensex Index rose 3.1%, while Japan’s Topix Index dropped 0.6% as did the Topix with Hiramatsu and Bic Camera falling the most. The Shanghai Composite Index rose 0.4%, with Jiangsu Jiangnan High Polymer Fiber and Lifan Industry Group posting the biggest advances.

Investors have been trying to figure out how and when the $90 trillion global economy can begin to reboot in the wake of the coronavirus. While the White House’s top health advisers develop criteria to reopen the U.S. in the coming weeks if trends hold steady, the pandemic continues to exact a heavy toll. Italy’s new cases crept up after several days of declines, raising questions about whether plans will be delayed for relaxing the stringent restrictions on public life. The coronavirus may be “reactivating” in people who have been cured of the illness, according to Korea’s Centers for Disease Control and Prevention.

“It’s all a question of when the economy reopens and how quickly that happens,” said Nancy Davis, chief investment officer of Quadratic Capital Management LLC. “We aren’t out of the woods.”

Attention also is turning to oil where Bloomberg reports that Saudi Arabia and Russia are still disagreeing over the baseline for OPEC+ oil-production cuts, with the kingdom insisting that reductions should be measured against a baseline of April output (i.e. the 12mmb/d) not the February baseline of 9mmb/d, which is what Russia demands. The group is debating supply cut in the range of 15-17%, said one delegate, while Russia is ready to cut its production by 1.6m b/d, or about 14%, according to the Energy Ministry. All OPEC+ members expect voluntary cuts from the US, even as Trump says organic decline in US production will meet the production cut quota, while OPEC insists these would come too late. Last minute jitters hit the price of Brent which tumbled by $2, erasing all the session’s gains.

In FX, the USD was initially weaker, with the Bloomberg Dollar Spot Index edging lower and most Group-of-10 currencies were range-bound. EUR/USD gained modestly. Norway’s krone climbed against all G-10 peers after Algeria’s energy minister was reported as saying an OPEC+ meeting on Thursday will discuss an output cut of up to 10 million barrels a day. The yen was steady while Japanese government bonds climbed after a sale of five-year notes drew the strongest demand in a year

In rates, 10Y yields dropped by 5bps from 0.78% to 0.73% last, while bunds were little changed while Italian government bond curve bear-flattened.

To the day ahead now, and there are a number of highlights to look forward to. From central banks, Fed Chair Powell will be giving an online webinar hosted by the Brookings Institution, where he’ll give an economic update. We’ll also hear from San Francisco Fed President Daly. In terms of data releases, in addition to the aforementioned weekly initial jobless claims and also the University of Michigan’s number, we’ll get March data including US PPI and Canada’s net change in employment. Looking back into February, there’ll also be the UK’s monthly GDP reading, the German trade balance, Italian industrial production and the final wholesale inventories reading from the US.

Market Snapshot

  • S&P 500 futures up 0.2% to 2,740.50
  • STOXX Europe 600 up 1.2% to 330.66
  • MXAP up 0.7% to 140.61
  • MXAPJ up 1.5% to 454.19
  • Nikkei down 0.04% to 19,345.77
  • Topix down 0.6% to 1,416.98
  • Hang Seng Index up 1.4% to 24,300.33
  • Shanghai Composite up 0.4% to 2,825.90
  • Sensex up 3.5% to 30,928.06
  • Australia S&P/ASX 200 up 3.5% to 5,387.32
  • Kospi up 1.6% to 1,836.21
  • German 10Y yield fell 0.7 bps to -0.313%
  • Euro up 0.2% to $1.0874
  • Italian 10Y yield rose 3.6 bps to 1.479%
  • Spanish 10Y yield rose 0.8 bps to 0.849%
  • Brent futures up 3.2% to $33.90/bbl
  • Gold spot up 0.6% to $1,655.84
  • U.S. Dollar Index little changed at 100.06

Top Overnight News from Bloomberg

  • ECB President Christine Lagarde renewed her plea for a strong fiscal response to the impact of the coronavirus, urging governments to get over their differences as they go into a second round of talks on Thursday
  • A rise in new coronavirus infections in Germany, Italy and Spain is raising questions about the speed with which Europe can begin to relax its stringent restrictions on public life
  • The coronavirus may be “reactivating” in people who have been cured, according to Korea’s Centers for Disease Control and Prevention
  • U.K. Prime Minister Boris Johnson spent a third night in the critical care unit where his condition was improving, as British officials draw up plans to extend the lockdown in an bid to control the coronavirus crisis
  • U.K. Chancellor of the Exchequer Rishi Sunak is poised to increase emergency borrowing from an overdraft at the Bank of England to keep injecting fiscal aid to the economy while staving off immediate pressure to sell more gilts The U.K. economy unexpectedly contracted 0.1% in February from the previous month, with the downturn driven by a huge drop in construction. In the three months through February, growth stood at 0.1%

Asian equity markets were mostly higher as the region marginally benefitted from the tailwinds from Wall St where major indices were underpinned by hopes of a coronavirus peak nearing and amid a surge in energy prices on optimism for a potential output cut deal at today’s OPEC+ meeting. ASX 200 (+3.4%) was buoyed after parliament approved the record AUD 130bln stimulus bill to support jobs and with upside led by notable strength in financials and tech, while energy names were lifted by the surge in oil prices after reports suggested potential cuts of 10mln-15mln bpd were being touted and that Russia was ready to join in on an OPEC+ deal. Nikkei 225 (U/C) lagged amid a choppy currency and after source reports noted the BoJ is to project an economic contraction but added there was no consensus yet within the central bank whether this would warrant additional easing. Hang Seng (+1.4%) and Shanghai Comp. (+0.4%) also traded positive but with gains capped as the former heads into the extended Easter weekend, while upside in the mainland was also limited after the PBoC refrained from liquidity injections and the Politburo reiterated the view that China was facing increasing difficulties for economic development. Finally, 10yr JGBs nursed the prior day’s losses and reclaimed the 152.00 level amid the underperformance in Japanese stocks and following stronger demand at the 5yr JGB auction.

Top Asian News

  • Turkey to Temporarily Ban Layoffs, Offers Help Seen as Pittance
  • Bank Indonesia Sees Further Gains in Rupiah as Currency Rallies
  • Taiwan Rejects WHO Claim of Racist Campaign Against Tedros
  • Bank of Japan Sees All Parts of Country Hurting From Virus

European stocks initially followed suit from the mostly positive APAC handover but drifted off highs as the session got underway (Euro Stoxx 50 -0.3%). Sentiment was originally supported as hopes lingered of a coronavirus peak nearing and amid firmer energy prices heading into the “make or break” OPEC+ and G20 energy meetings. However, tail risks remain that the Eurogroup may reencounter a roadblock in talks later today. Bourses overall see a mixed performance, Switzerland’s SMI (-0.6%) underperformance as heavyweights Nestle (-2.0%), Roche (-1.6%) and Novartis (-0.9%), which together account for over 50% of the index’s weight, extend on losses. Germany’s DAX (+0.4%) remains somewhat resilient, potentially aided by cautiously upbeat comments from the German Health Minister, who stated that recent infection numbers indicate a positive trend and lockdown measures could soon start to be eased gradually if the trend continues. UK’s FTSE (+1.7%) outperforms as energy names see large-cap tailwinds from the energy complex. Sectors have also lost steam after opening firmer across the board – now mixed, albeit no clear risk tone can be derived. The breakdown also offers no real signal of the sentiment, although hopes of a slowing virus outbreak see Travel & Leisure outperforming. In terms of individual movers, Credit Suisse (+0.4%) and UBS (-0.4%) waned off opening highs – the Swiss banks decided to split their dividends in half, as advised by the Swiss Regulator FINMA. SAP (+2.0%) rises despite guidance cuts for total revenue and operating profit – the Co. raised its predictable revenue guidance.

Top European News

  • U.K. Economy Unexpectedly Shrank Before Virus Restrictions Hit
  • Sunak Taps BOE Overdraft to Keep Crisis Stimulus Cash Flowing
  • Polish Anti-Crisis Shield Comes With Risk for Private Owners
  • Czech Stocks Are Set to Exit Bear Market; Patria Says Buy CEZ

In FX, the Greenback is relatively mixed and rangebound vs G10 counterparts awaiting the latest weekly US jobless claims release for further evidence of COVID-19 collateral damage to the labour market. However, the next big directional and sentiment drivers could well come from external sources such as the OPEC+ meeting and Eurogroup response to the coronavirus if global oil producers and Finance Ministers can overcome differences to set a deeper output cut pact and deliver coordinated fiscal stimulus. In the meantime, little motivation for the DXY to deviate outside recent ranges that have been tethered to the 100.000 anchor as the index rotates from 100.300 to 99.899.

  • GBP/NZD/EUR/CHF/AUD – Major outperformers to varying degrees as the Pound rebounds firmly from post-UK (trade in the main) data lows after another update on PM Johnson indicating further improvement, with Cable finally breaching multiple tops around 1.2420 and Eur/Gbp retesting the 0.8750 mark that sits just above key chart support in the form of the 200 DMA (0.8748) and a Fib retracement (0.8747). Meanwhile, the Kiwi is consolidating above 0.6000 and Euro remains capped circa 1.0900 awaiting news from the delayed Eurogroup and any extra insight from ECB minutes in the interim – preview of the release available in the Research Suite. Elsewhere, the Franc is still straddling 0.9700, but rooted to 1.0550 against the single currency and Aussie has lost some altitude from a 0.6250 peak.
  • JPY/CAD – Even tighter confines for the Yen either side of 1.0900 and some decent option expiry interest also keeping the headline pair in check (1.2 bn at 108.40 and 1.3 bn from 108.95 to 109.00). However, the Loonie continues to unwind gains and may even extend its retreat towards a 1 bn expiry at the 1.4100 strike depending on how bad looming Canadian jobs are – Usd/Cad currently nudging 1.4050 for reference.
  • SCANDI/EM – Back to winning ways for the Nok and Sek, as the former forges more momentum on firm pre-OPEC oil prices alongside the Rub and Mxn, while the latter gleans some encouragement from signs of peaks in daily nCoV case and mortality rates elsewhere. Similarly, the Zar is making more headway ahead of an expected briefing from the SA Finance Ministers to outline anti-global pandemic measures.
  • RBA Financial Stability Review said regulatory authorities have been working together to minimise economic harm from pandemic but noted financial market uncertainty is elevated and that the heightened uncertainty related to pandemic is compounding usual volatility in financial markets. RBA added that capital levels are high and banks’ liquidity positions improved over recent times, while banks also entered the downturn with high profitability and very good asset performance. Furthermore, it stated that many households in the period ahead will find finances under strain due to efforts to contain the virus. (Newswires)

In commodities, WTI and Brent front month futures continue trade firmer amid hopes of a coordinated OPEC+ output cut at today’s historical call among producers, and with scope for further action at tomorrow’s G20 energy webinar. Prices were bolstered late-doors State-side after the Algerian and Kuwaiti Energy Ministers expressed optimism towards a joint cut towards the upper end of the expected range, with the latter floating a cut between 10-15mln BPD. The complex received another boost in EU trade after sources stated that Russia is reportedly willing to curtail output by a maximum of 2mln, more than the 1.6mln BPD (equivalent to 15% of Russian oil output) reported yesterday. That being said, separate sources note that sticking points remain between Saudi and Russia regarding volumes and baselines – with Riyadh opting for current production levels to be used as a benchmark whilst Moscow prefers an average of Q1 output levels. Nonetheless, WTI extends gains above its 21 DMA (USD 24.69/bbl) and remains near session highs. Brent futures meanwhile breached resistance at the psychological USD 34/bbl, whilst the difference between the benchmark widened to above USD 7.50/bbl from around USD 5/bbl this time last week. Elsewhere, spot gold prices remain perky above USD 1650/oz after rebounding from recent support at USD 1640/oz ahead of the Eurogroup meeting later today, whilst a modestly softer Buck offers some tailwind. Copper meanwhile remains on the back foot after failing to convincingly breach resistance just above USD 2.3/lb, with prices hovering around USD 2.275/lb at the time of writing.

US Event Calendar

  • 8:30am: Initial Jobless Claims, est. 5.5m, prior 6.65m; Continuing Claims, est. 8.24m, prior 3.03m
  • 8:30am: PPI Final Demand MoM, est. -0.4%, prior -0.6%; PPI Final Demand YoY, est. 0.5%, prior 1.3%
    • PPI Ex Food, Energy, Trade MoM, est. 0.0%, prior -0.1%; PPI Ex Food, Energy, Trade YoY, est. 1.28%, prior 1.4%
    • PPI Ex Food and Energy MoM, est. 0.0%, prior -0.3%
  • 10am: Wholesale Inventories MoM, est. -0.5%, prior -0.5%; Wholesale Trade Sales MoM, prior 1.6%
  • 10am: U. of Mich. Sentiment, est. 75, prior 89.1; Current Conditions, est. 84.1, prior 103.7; Expectations, est. 60.7, prior 79.7

DB’s Jim Reid concludes the overnight wrap

Brace yourself ahead of what will likely be the strangest Easter weekend in your lifetime as today we have another weekly jobless claim report to look forward to in the US. Having said that the S&P 500 has rallied on the day of the staggeringly bad numbers over the last two weeks (+6.24% and +2.28% respectively) so it may be as much a curiosity of how bad unemployment is going to be in the short term as much as it is about markets.

These last two weeks have come in sequentially at 3.283m and 6.648m. DB is forecasting a further 4.5m claims today. As a reminder the worst in 53 years of data previously was 695k in 1982. Ahead of this the US closed in so-called “bull market” territory after seeing this landmark hit intra-day on Tuesday. The S&P 500 closed up +3.41% with the surge in oil (more below), as another round of stimulus (in the $250-500 billion range) continues to be discussed for small businesses and also on reports that Dr. Brix and Dr Fauci, the immunologist and infectious disease experts that have been coordinating the virus task force are working with the White House to construct plans to reopen the economy. In practise this will be very challenging but the markets love the idea of it. As risk continued to rally, the VIX fell 3.4 points to the index’s lowest levels in over a month at 43.35 last night.

Oil resumed its strong rally with Brent crude up +3.04% and WTI up +6.18% on initial reports out of Algeria that OPEC+ could cut as much as 10million barrels a day, which was hoped for as a best case scenario. Then reports came out of Russia that they were ready to cut their production by 1.6million barrels per day. This gave the original price move some credence. According to our colleague Michael Hsueh, this would be many times larger than cuts Russia has made in recent history, and they had only been entertaining cuts of 1million barrels previously. While this news came out too late to affect energy companies in Europe, the S&P 500 energy sector finished +6.74% higher. After the US closing bell the Kuwaiti oil minister upped the ante by suggesting talks were moving in the direction of the 10-15 million barrels a day cut.

Both Brent (+1.40%) and WTI (+3.19%) have pushed on further this morning which is helping markets in Asia advance. The Hang Seng (+0.70%), Shanghai Comp (+0.28%), ASX (+2.10%) and Kospi (+0.90%) are all up however the exception is the Nikkei which is down -0.32% as we go to print. In FX, the Norwegian Krone (+0.71%) is the notable mover this morning following the oil move. Elsewhere, futures on the S&P 500 are flat while yields on 10y USTs are down -2.4bps to 0.749%.

In terms of the virus, yesterday was the day we passed 1.5 million confirmed cases worldwide, with fatalities above 88,000. NY State now has roughly 10% of worldwide cases, and yesterday announced the most deaths (779) in a single day yet, with the only consolation being that it was the lowest day-over-day change in fatalities. The UK also announced a new high for deaths in a day (938), even as new case rates and hospital admissions improve. We have seen this in many regions, where fatalities may be more of a lagging indicator as they can continue to rise when people who have been hospitalised for long periods sadly pass away even after case curves flatten. Elsewhere Spain and Italy continue to improve though not as fast as we saw in China which complicates the exit strategy timings even if markets are getting more confident on this. For all the tables, graphs and bullets please see our sister daily – The Corona Crisis Daily – in an inbox near you very soon.

Back to markets and European equities underperformed, though they managed to pare back gains into the close with the STOXX 600 ending +0.02%. Continental markets struggled a bit as shortly after we went to press yesterday, we got the news that EU finance ministers had failed to reach an agreement on an economic rescue package and would instead be resuming their discussions again today. Eurogroup President Mário Centeno tweeted afterwards that “After 16h of discussions we came close to a deal but we are not there yet.” It seemed that once again, the traditional dividing lines between north and south that dominated in the European sovereign debt crisis were at the forefront, with reports suggesting that the Netherlands and Italy clashed over the conditionality that would be associated with a credit line from the ESM.

After the meeting, the Dutch finance minister, Wopke Hoekstra, tweeted that “Because of the current crisis we have to make an exception and the ESM can be used unconditionally to cover medical costs. For the long term economic support we think it’s sensible to combine the use of the ESM with certain economic conditions.” So an offer of no conditionality in the case of medical costs, but not if this is about “long term economic support”. Italy was resistant however, with Reuters saying that while they were willing to accept a reference on sticking to the bloc’s budget rules, they were not ready to commit to anything more specific. It’s also worth noting that the Italian government are under political pressure domestically, with League leader Matteo Salvini saying that “I hope the government won’t accept ESM, it would be illegal and senseless”. So all eyes on whether they can reach an agreement today and meet the two-week deadline to present proposals that was set by the European Council summit of leaders back on March 26th.

The effect of the failure to reach agreement was evident in sovereign bond markets, where peripheral spreads in Europe widened noticeably at the open yesterday (Italy 10yr +18bps), though they went on to narrow through the day. By the close, the spread of Italian and Spanish yields over bunds (broadly unchanged) were up by +3.3bps and +2.1bps respectively. Elsewhere credit marginally benefited from the risk on move in the US, with US HY cash spreads tightening -7bps, while IG tightened -9bps. In Europe HY spreads tightened -11bps and IG -5bps.

After a series of quite savage downgrades of economic forecasts in recent weeks, the most interesting yesterday was on global trade, with the World Trade Organization’s latest forecasts projecting that the volume of global merchandise trade will fall by between 13% (in their optimistic scenario) and 32% (in their pessimistic one). Their economists think that the declines will “likely exceed” the declines in trade as a result of the global financial crisis. The falls come on the backdrop of an already weak performance for global trade, with world merchandise trade actually falling by -0.1% in 2019 as the major economic blocs ratcheted up trade tensions. This leans towards our view that domestic economies will open up quicker than international travel will. See our “The exit strategy” link here for thoughts on the sequencing.

Staying with the economy, another area seeing deterioration is the US housing market, where data is continuing to show that the impact of the coronavirus and the subsequent rises in unemployment have begun to filter through. The weekly MBA mortgage applications from the US saw a further -17.9% decline in the week to April 3rd, while the Purchase index is now down by 33% compared with a year ago.

Fed minutes from the March 15th meeting were released yesterday, revealing very little new information. Nevertheless, there was a scenario analysis laid out by the committee around the thought process regarding the surprise cuts, “In one scenario, economic activity started to rebound in the second half of this year. In a more adverse scenario, the economy entered recession this year, with a recovery much slower to take hold and not materially under way until next year. In both scenarios, inflation was projected to weaken, reflecting both the deterioration in resource utilization and sizable expected declines in consumer energy prices”. While too early to judge which of those scenarios we are currently on, the longer the restrictions are necessary, the more likely the second becomes reality.

To the day ahead now, and there are a number of highlights to look forward to. From central banks, Fed Chair Powell will be giving an online webinar hosted by the Brookings Institution, where he’ll give an economic update. We’ll also hear from San Francisco Fed President Daly while the Bank of Korea will be deciding on interest rates. In terms of data releases, in addition to the aforementioned weekly initial jobless claims and also the University of Michigan’s number, we’ll get March data including US PPI and Canada’s net change in employment. Looking back into February, there’ll also be the UK’s monthly GDP reading, the German trade balance, Italian industrial production and the final wholesale inventories reading from the US.

 

3A/ASIAN AFFAIRS

THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 10.54 POINTS OR 0.37%  //Hang Sang CLOSED UP 329.96 POINTS OR 1.38%   /The Nikkei closed DOWN 7.47 POINTS OR 0.04%//Australia’s all ordinaires CLOSED UP 3.43%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0589 /Oil UP TO 27.29 dollars per barrel for WTI and 34.12 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0589 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0713 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea/Coronavirus

This is very scary!! some recovered patients are showing no antibodies.  This is why reinfection is occurring or the virus is remaining in the body dormant.  regardless, this will make returning to work impossible. We therefore need to use hydroxychloroquin as a prophylactic until the vaccine is made available.

(zerohedge)

South Korean Scientists Warn: COVID-19 Can Spontaneously “Reactivate” In Cured Patients

Yesterday, we reported on some new research that has just been published in the the Lancet, a journal of non-peer-reviewed research that is nonetheless viewed as an extremely credible resource. The report, published by scientists at a university in Shanghai, claimed that some COVID-19 patients showed few, or, even more alarming, no COVID-19 antibodies in their blood after recovering from the illness.

And now, another report highlighting the extremely concerning susceptibility that humans have to this virus has been released. Researchers in Seoul have found several cases wherein patients who’ve recovered from COVID-19 have seen the disease “reactivate”, possibly because the virus was still lying dormant inside them, and had been reawakened, somehow.

The Straits Times reported that about 51 patients who had been “cured” in South Korea have tested positive again, the Korean Centers for Disease Control said during a media briefing. Rather than being infected again, the virus may have been reactivated in these people, given they tested positive again shortly after being released from quarantine, and likely didn’t have time to reacquire the virus and see it go active, said Mr Jeong Eun-kyeong, the KCDC’s director-general.

“While we are putting more weight on reactivation as the possible cause, we are conducting a comprehensive study on this,” Mr Jeong said.

“There have been many cases when a patient during treatment will test negative one day and positive another.” A patient is deemed fully recovered when two tests conducted with a 24-hour interval show negative results.

Despite having one of the earliest outbreaks, South Korea has only recorded 200 deaths and reported falling new daily numbers since cases peaked at 1,189 on Feb. 29. The KCDC reported just 39 new cases on Thursday for a total of 10,423. One of the world’s most expansive testing programs and a tech-driven approach to tracing infections has helped the country contain its epidemic without lockdowns or shuttering businesses.

Fear of re-infection in recovered patients is also growing in China, following a string of reports claiming some patients had tested positive again – or even died from the disease – after supposedly recovering and leaving hospital.

As of now, scientists are still trying to understand this phenomenon, and nothing is set in stone.

But we fact that there’s a growing body of evidence to suggest that many people just can’t build up an immunity to this drug doesn’t bode well for prospects of a universally effective vaccine.

end

b) REPORT ON JAPAN

Japan/Russia/the Globe//Coronavirus update Thursday

Japan & Russia Report Worrisome Surge In New Cases, Italian PM Warns “EU Could Fail” Over Outbreak: Live Updates

Summary:

  • Italian PM says “EU could fail” if bailout package isn’t handled
  • Russia, Tokyo report record jumps
  • Russian case total passes 10k
  • Over the past 24 hours, the US reported 32,176 new cases
  • US moves to try and stop the IMF from approving Iran’s request for a $5 billion bailout
  • South Korea warns risk of virus “reactivating” in cured patients
  • 332,000 people have recovered globally so far
  • Dr. Fauci says US deaths might be “closer to 60k”
  • 19 Syrians have tested positive as health orgs alarmed by outbreak
  • President Trump says US could reopen in phases “ahead of schedule”
  • Spain has now confirmed 152,446 cases of the virus
  • EU pressures Netherlands to drop opposition to bailout plan
  • Support for ‘Unity Government’ surges in the UK
  • Italian PM says lockdown might start to lift at end of April
  • Spain government celebrates lockdown achievements as opposition suspects cases are undercounted

*    *    *

Update (0800ET): Offering some more surprisingly optimistic comments, Dr. Fauci said in what have become routine morning comments in the press that he now expects US fatalities due to the virus to be “closer to 60k” than the 100k-200k previously anticipated. Trump once said that as many as 240k might die.

“The real data are telling us it is highly likely we are having a definite positive effect by the mitigation things that we’re doing, this physical separation,” said Dr. Fauci during a Thursday morning interview with NBC.

“I believe we are going to see a downturn in that, and it looks more like the 60,000, than the 100,000 to 200,000” projected fatalities, he said.

Futs have been somewhat volatile this morning, but as it stands, it looks like the Dow will open lower by less than 1%.

However, the trickle of optimistic headlines garners a lot of attention, even more concerning signs that recovered patients might still be vulnerable to the virus have emerged. The coronavirus may be “reactivating” in people who had appeared to be cured of the illness, according to Korea’s Centers for Disease Control and Prevention.

Adding to the optimism, as of Thursday, more than 332,000 people have recovered from coronavirus, according to data from Johns Hopkins.

*    *    *

As Holy Week draws to a close and the long Holiday Weekend begins, the optimism that helped inspire the biggest bounce since the ‘rona rout appears to have faded, and Dow futs are back to being three figures in the red Thursday morning, pointing to a lower open as traders realize the ‘plateaus’ supposedly reached in Italy, Spain and New York didn’t really mean anything. And while the Germans truly do seem to be on top of things, other hotspots in Europe are already cropping up, as China tightens its borders as experts warn about a ‘second wave’.

Over the past 24 hours, the US reported 32,176 new cases of coronavirus and 1,901 new deaths, raising its totals to 432,727 cases and 14,768 dead, with the most widely followed projections suggesting that the US will pass half a million confirmed cases before Easter Sunday. Yesterday, NY reported its biggest one-day jump in deaths yet, and the pace of spread appeared to accelerate across Europe.

Now, we wake of Thursday morning to find that officials in Tokyo and Moscow have reported record numbers of new cases (that, and Russia recorded its biggest daily jump in deaths).

Meanwhile, as the US moves to try and stop the IMF from approving Iran’s request for a $5 billion bailout, the Ayatollah has once again chosen to retaliate in the only venue Trump truly understands: Twitter.

Khamenei.ir@khamenei_ir

is a major problem for mankind. But we won’t forget that in Vietnam, Iraq, etc. hundreds of thousands of ppl were killed by the US. Even now, millions suffer from the tyranny of the US & its allies in Yemen, Palestine, etc.
Mankind has worse problems than Corona.

Experts in Europe insist that the lockdowns, social distancing and other measures taken to combat the spread of the virus, and that may be true, but what about places like Iran, Afghanistan or other battered, broken countries that simply don’t have the resources to combat the virus. To be fair, Iran, despite the sanctions, still has money and resources, relative to places like Syria, which is struggling with an outbreak that has alarmed international aid agencies.

Despite the continuing civil war, a war seemingly without end as it nears the 10-year mark, enough tests have been run on Syrian citizens that 19 have been confirmed, and two deaths have been confirmed. Testing, however, is “virtually non-existent” throughout the country, and many fear that the camps of impoverished, displaced peoples in the country will be rapid breeding grounds for the virus.

However, since the west and Iran have their hands full, Syrian President Bashar al-Assad is going to need to rely on whatever he receives from Russia to combat the virus. And  on Thursday, Russia reported 1,459 new cases of coronavirus and 13 new deaths, the biggest daily increase to date, bringing its total case load past 10k. In total, 76 Russians have died.

As the race for treatments continues, Pfizer reportedly expects to be able to test a new antiviral medication for coronavirus in humans by August or September, accelerating the clinical trial timeline as the US drug giant expands its work in the battle against the virus. On the political front, Oliver Dowden, the UK culture secretary, has suggested the public should prepare for an extension of the current three-week coronavirus lockdown that ends on Monday. Foreign secretary Dominic Raab, who is deputizing for Mr Johnson while the prime minister is in intensive care, will chair a virtual meeting of the government’s emergency planning committee (Cobra) on Thursday afternoon. Meanwhile, polls show support for a national unity government – as it gradually becomes clear that, after spending his third night in the ICU, the PM might need another week or two to recover.

As the numbers of new cases continue to fall, Spain’s government is hailing “encouraging” progress, a sign that the strict lockdown imposed by PM Pedro Sanchez last month, is working. However, members of the opposition have accused the government of deliberately undercounting cases, and since testing is uneven across the country, it’s extremely likely that the true number of cases is at least modestly higher than the total recorded.

According to official figures published on Thursday, so far 15,238 people with coronavirus have died, 683 of them in the last 24 hours, compared with 757 the previous day and a peak of 950 a week ago. Overall, Spain has now confirmed 152,446 cases of the virus as of Thursday morning, an increase of 4% over Wednesday’s count. This is roughly the same rate of increase that has been observed throughout this week, and is below the 25%-30% growth rates seen in the very recent past.

And apparently, even an unprecedented pandemic isn’t enough to inspire comity among the member states of the fractious EU. As we noted last night, the ECB’s Christine Lagarde urged them in a letter published in several European dailies to set their differences aside and agree on a multilateral plan that will be strong enough to help revive Europe’s recession-bound economy. EU governments ratcheted up the pressure on the Netherlands on Thursday to unblock half-a-trillion euros of economic support ahead of a meeting of finance ministers, as the country has emerged as a key antagonist to Italy in the negotiations to help support Europe’s most damaged economies. The Scandinavian countries like Netherlands have seen the virus spread, but mortality rates have remained low.

Still, the optimistic numbers seen this week are apparently inspiring the Italian government toward some dangerous thinking: Italy may start lifting some restrictions by the end of April provided that the slowing trend continues, PM Giuseppe Conte said during an interview with the BBC. That doesn’t seem like responsible talk for a country with roughly 20k deaths and a health-care system that was completely overwhelmed just weeks ago. Conte also warned that the “EU could fail” if members don’t step up and do what’s right. Using language that has been employed by Angela Merkel and others, Conte warned that the outbreak is the biggest challenge facing Europe since WWII. The BBC noted it was Conte’s first interview with the English-language press since the outbreak exploded in Italy 7 weeks ago.

As the first European countries start to plan their course back to normal, President Trump is doing the same in the US, critics be damned. He said last night that he had a plan to reopen the country in phases that might help get the economy back up and humming “ahead of schedule.”

Conte added that if member states don’t agree to an “adequate” fiscal package for the states hurt the worst by the outbreak (a group that includes Italy) the project could collapse.

But even as the outbreak finally appears to be heading down the back slope in Italy and Spain, other European nations, the Netherlands, Belgium, the UK, etc., are rising up to take their place.

end

3 C CHINA

4/EUROPEAN AFFAIRS

Spain:

no wonder gold is rising:  Spain announces a guaranteed free money program i.e. a guaranteed income to all

(Mish Shedlock)

 

Spain Announces Guaranteed Free Money: What’s Really Going On?

Authored by Mike Shedlock via MishTalk,

Spain is about to implement Universal Basic Income. But let’s put the correct label on what’s happening.

Universal Basic Income

Please note Spanish Government Aims to Roll Out Basic Income

The Spanish government is working to roll out a universal basic income as soon as possible, as part of a battery of actions aimed at countering the impact of the coronavirus pandemic, according to Economy Minister Nadia Calvino.

Social Security Minister Jose Luis Escriva is coordinating the project and plans to put some sort of basic income “in place as soon as possible,” with the main focus on assisting families, Calvino, who also serves as deputy prime minister, said in an interview Sunday night with Spanish broadcaster La Sexta.

But the government’s broader ambition is that basic income becomes an instrument “that stays forever, that becomes a structural instrument, a permanent instrument,” she said.

Honest Thieves

At least the Spanish government is honest about its redistribution thievery.

They do not all pretend that it’s temporary.

Honest Theft*****™*** is the best one can hope for these days.

Guaranteed Free Money™

Rather than labeling this Universal Basic Income (UBI), I propose Guaranteed Free Money™ (GFM)

The money is not really free, however. Government will tax the hell out of everyone then return a portion to everyone.

Of course, some people will put in way more than they get back.

So this is really a redistribution scheme that robs the middle class and upper classes then redistributes the money to everyone to make it appear like a “universal” benefit.

Then again, the MMT crowd will propose this really is “free money“, that taxes don’t have to be collected, and we can all live in a fairy tale economy of Guaranteed Free Stuff™ (GFS).

Guaranteed Free Stuff™

  1. Guaranteed Free Money
  2. Guaranteed Free Healthcare
  3. Guaranteed Free Education
  4. Guaranteed Jobs
  5. Guaranteed Standard of Living

In case you are wondering “What can possibly go wrong?” please look at Venezuela, Cuba, or Zimbabwe for some extremely likely answers.

Meanwhile, I have a suggestion: Buy Gold.

For discussion where and how, please see No WSJ, Gold is Not the New Unobtanium: Where to Buy?

Also see Gold’s New Breakout is Very Bullish: Here’s Why

end
UK
Now it is official:  The UK is the first central bank to openly monetize its government deficit.  Our good friend Andrew Bailey is very busy this morning.
(zerohedge)

UK Unleashes Helicopter Money: In Historic Move, BOE Becomes First Central Bank To Openly Monetize Deficit

In a historical move, the Bank of England announced this morning that it will begin to finance the short-term needs of the Treasury, in other words it will directly monetize the UK deficit, something central banks had – for the past decade – denied they do or would do.

The BOE move will allow the government to bypass the bond market entirely until the Covid-19 pandemic subsides, financing unexpected costs such as the job retention scheme where bills will fall due at the end of April. Ironically, as the FT notes, although BoE governor Andrew Bailey opposed monetary financing earlier this week, Treasury officials felt it was best to have the insurance of the central bank willing to finance its operations in the short term.

In a statement on Thursday, the government announced it would extend the size of the government’s bank account at the central bank, known historically as the “Ways and Means Facility”, which normally stands at just £370m. This will rise to an effectively unlimited amount, allowing ministers to spend more in the short term without having to tap the gilts market. In 2008, a similar move saw the facility rise briefly to only £20bn.

And so helicopter money has arrived, with the UK Treasury now taking de facto control of the central bank.

The Ways and Means facility had long been used as a financing means of government for day-to-day spending before the BoE would sell government bonds to the market, but by 2006, it had become an emergency fund with the financing of government undertaken by the Debt Management Office on a scheduled basis. Less than a month ago, the Bank of England said there was little chance there would be any need to use the facility, demonstrating just how much stress government finances have come under in the past few weeks.

In a call with journalists on March 18, Mr Bailey said the facility was just a “historical feature”.

“I don’t think at the moment we’re facing an inability of the government to fund itself, so, yes, it’s there, but it’s not a frontline tool,” Bailey said just weeks ago.

Then, just a few days ago, the governor pledged not to slip into permanent monetary financing of the government in a Financial Times op-edWell so much for central bankers having any insight into what will happen in the future… or even in just a few days.

The move highlights the extraordinary demands on cash the government has experienced in recent weeks, which it feels it cannot finance immediately in the gilts market.

The scale is likely to be large. The government has already tripled the amount of debt it wanted to raise in financial markets in April from £15bn announced in the March 11 Budget to £45bn by the start of this month.

Although the gilts market showed severe stress in the middle of March as the coronavirus crisis deepened, the government has so far had little difficulty raising finance, especially as the BoE had already committed to printing £200bn to pump into the government bond market to ensure there was sufficient demand for gilts and improve market functioning.

This direct monetary financing of government would be “temporary and short-term”, the Treasury said in its statement.

“As well as temporarily smoothing government cash flows, the W & M Facility supports market function by minimising the immediate impact of raising additional funding in gilt and sterling money markets.”

Market reaction was muted. Sterling was trading 0.1 per cent higher against the US dollar at just below $1.24 shortly after the announcement, while the yield on the benchmark 10-year UK gilt was flat at 0.37 per cent.

However, While the BoE stated that the debt monetization would be “temporary and short-term”, it will be no such thing. Richard Barwell, head of macro research at BNP Asset management and a former BoE official, said temporary moves such as this often became more permanent as time passed.

“Persistent monetary financing feels inevitable. Central banks just need to figure out a plan for how to best get into it and how they might eventually want to get out of it,” he said.

Tuomas Malinen of GnS economics however put it best:

It would result in the complete socialization of the capital allocation process. The last time this happened on a systemic scale was in the former Soviet Union, a socialist controlled-economy experiment and global superpower which existed from 1917 till 1990.  The thing to remember with socialist experiments is that they always concentrate power—economic and political—in the elite.

end
UK/BOJO LEAVES INTENSIVE CARE:

UK Prime Minister Boris Johnson Leaves Intensive Care

Though he remains hospitalized, UK Prime Minister Boris Johnson has left intensive care, Downing Street said Thursday afternoon.

The news will come as great relief to Britons who rallied around the PM this week as his condition deteriorated markedly, nearly leading to his intubation.

Fortunately, he was able to avoid that – though he did briefly receive oxygen assistance.

It remains unclear when Johnson will return to leading Britain. Dominic Raab said Thursday that he hadn’t spoken with Johnson directly in days, but assured the public that an update would arrive by the evening.

The PM has reportedly been moved back to the ward in the unnamed UK hospital where he is receiving treatment. His office said that he remains in “good spirits”.

All told, he spent 3 nights in the ICU.

Given his speedy improvement, we can’t help but wonder if he was given the ‘quine.

END

FRANCE/B.N.P. PARIBAS
Just the beginning:  France’s largest bank lost 200 million dollars on equity derivative trades as the market crashed..
(zerohedge)

Largest French Bank Lost $200MM On Equity Derivative Trades As Market Crashed

BNP Paribas SA, the largest French bank, lost hundreds of millions of dollars on complex stock trades as markets crashed in March, Bloomberg reports. Traders at the Paris-based bank, which together with SocGen has long carved out a niche in sophisticated derivative trades which worked great as long as the market was levitating unperturbed – lost an estimated €200 ($219 million) on equity derivatives once the market tumbled. According to Bloomberg, the trades that went awry included dividend futures and structured products.

BNP lost about 100 million euros on structured products, ostensibly by taking the other side of trades they sold to retail investors across Japan and South Korea; the trades were linked to baskets of stocks and other assets. The bank also lost about 100 million euros on dividend futures, with losses surging at one point to about 300 million euros before improving.

Dividend futures are derivatives that investors use to speculate on the payouts that companies make to shareholders. They have tumbled to historic lows in recent weeks as some of the world’s biggest corporations shred their awards in response to the coronavirus and, in some industries, pressure from regulators.

According to a JPM note, BNP and its crosstown rival SocGen are some of the biggest arrangers of dividend futures. Banks in this business are often “structurally long dividends,” JPM analyst Kian Abouhossein wrote, which means they were betting on an increase in payouts and “exposed to a decline in dividend expectations.” Alas, that’s precisely what happened.

That said, it’s unclear how much the losses will weigh on BNP Paribas’s overall first-quarter results. Banks taking a hit on dividend futures could likely offset them with gains elsewhere, Abouhossein wrote. He estimated that overall equities revenue at BNP Paribas could climb 13% year-on-year to 550 million euros.

While the French bank lost in the chaos, US banks were winners:JPMorgan and Citigroup made hundreds of millions in revenue from equity derivatives, as previously reported.

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

SAUDI ARABIA/CORONAVIRUS

Saudi Hospitals Alerted To “Influx Of VIPs” As 150 Members Of Royal Family Have COVID-19

Despite the Saudis starting as early as February in shutting key public sites down in the kingdom, including the historically unprecedented shuttering of the pilgrimage to Mecca, it’s been reported this week that COVID-19 has hit the Saudi royal family hard.

A source close to the royal family told The New York Times Wednesday that up to 150 members of the Saudi royal family have contracted the coronavirus.

Appropriately titled Coronavirus Invades Saudi Inner Sanctum the Times report says that even King Salman has been moved to isolation near the city of Jeddah, after his nephew and governor of Riyadh, Prince Faisal bin Bandar bin Abdulziz al Saud, tested positive. The prince is said to be in intensive care in serious condition.

 

Prince Faisal bin Bandar bin Abdulaziz Al Saud is now in intensive care. Image via Reuters.

Crown Prince Mohammed bin Salman is also working isolation on the Red Sea coast, as are many of his ministers. There are thousands of princes as well as ministers close to the family across the kingdom.

The situation appears dire, from which even Saudi elites cannot escape:

The senior Saudi prince who is governor of Riyadh is in intensive care with the coronavirus. Several dozen other members of the royal family have been sickened as well. And doctors at the elite hospital that treats Al-Saud clan members are preparing as many as 500 beds for an expected influx of other royals and those closest to them, according to an internal “high alert” sent out by hospital officials.

“Directives are to be ready for V.I.P.s from around the country,” the operators of the elite facility, the King Faisal Specialist Hospital, wrote in the alert, sent electronically Tuesday night to senior doctors. A copy was obtained by The New York Times.

“We don’t know how many cases we will get but high alert,” said the message. It directed that “all chronic patients to be moved out ASAP” and only “top urgent cases” will be accepted, according to the report.

 

AFP via Getty

And then there’s the fact that the princes’ high spending luxury life styles have been hampered by the outbreak: “Many of the thousands of princes in the family are believed to have brought back the virus after traveling to Europe, the newspaper reported, citing doctors and people close to the family.”

The country at this point has 41 deaths from the virus and 2,795 cases, however, health officials warn the number of cases in the weeks ahead “will range from a minimum of 10,000 to a maximum of 200,000,” according to the words of Saudi health minister Tawfiq al-Rabiah.

 

Via NYT: Mecca has sat empty since late February. The kingdom has since gone on lockdown.

Thus leaders in Riyadh are expecting the kingdom’s numbers to peak in parallel with the US expected peak, now the global epicenter with over 430,000 cases.

END

6.Global Issues

There is considerable evidence that the spread of the coronavirus was due to the considerable increase in frequency used by 5 G.  The theory is based on  high 5 G frequency causes ordinary coronavirus to mutate and thus our resultant pandemic. The jury is still out of this but many believe it is true and they are burning down towers.

(zerohedge)

 

Public Fears, Anger Over 5G-Virus Conspiracy-Theories “Shouldn’t Be Underestimated”

A conspiracy theory linking 5G to the coronavirus has spread like wildfire. In fact, so many people believe this theory that over the weekend, numerous 5G base transmission systems were burned down in Britain amid claims aired on social-media that the technology contributes to the spread of COVID-19.

There are now floods of posts on Facebook claiming the coronavirus outbreak was caused by 5G, the fifth generation of mobile internet. Many of the claims center on the idea that the virus originated in Wuhan because the Chinese city had deployed 5G networks last year.

The attention that these discussions are getting (and the actions they are enabling over the health worries) are, according to Jefferies’ analysts, a cause for concern as they could lead to a possible drag on its rollout in democratic countries.

Jefferies analyst Edison Lee wrote in a note yesterday that, while most “will laugh” at a scientifically unproven claim, public worry over potentially adverse health impacts of 5G due to radiation shouldn’t be underestimated.

He added that, “public fears, even if not based on fact, could pressure governments to stall the rollout of the technology,” and in fact he notes that two cantons in Switzerland have already decided to hold referendums on 5G.

So, is there any truth to the claims that 5G is causing the coronavirus to spread? And where did this idea originate from?

Wired traced the conspiracy theory linking 5G with the coronavirus to a Belgian newspaper’s interview with Dr. Kris Van Kerckhoven.

The newspaper headline read “5G is life-threatening, and no one knows it.”  A tweet showing the newspaper article can still be found here, although the article has reportedly been deleted from the newspaper’s website.

Irma van der Meer@meer_irma

Wilrijkse arts waarschuwt voor gevolgen 5G: “Het is levensgevaarlijk en niemand die het weet” https://www.hln.be/in-de-buurt/wilrijk/wilrijkse-arts-waarschuwt-voor-gevolgen-5g-het-is-levensgevaarlijk-en-niemand-die-het-weet~a5b1e6f4/  via @HLN_BE

NWO Forum@NWOforum

Artikel verwijderd. Zegt weer genoeg.

View image on Twitter

Valuewalk.com’s Michelle Jones reports that in the interview, Van Kerckhoven not only claimed that 5G technology was dangerous, but also said it could be linked to the coronavirus. At the time of the article, COVID-19 wasn’t yet a global pandemic. Almost all of those who had been infected were in Wuhan, China.

The article that triggered the conspiracy theory linking 5G to the coronavirus noted that since 2019, many 5G cell towers had been constructed around Wuhan. The writer then considered whether the virus and 5G could be related.

“I have not done a fact check,” he wrote. “But it may be a link with current events.”

And the seed was planted…

According to The Guardian, some suggest that the coronavirus is real, but 5G is making it worse. Others have claimed that the symptoms so many people have come down with are actually caused by 5G towers rather than by the coronavirus. Others say the pandemic isn’t even real. Instead, the pandemic is supposedly designed to cover up the installation of 5G towers.

As TheMindUnleashed.com’s Derrick Broze notes, having extensively researched the the potential dangers posed by the unprecedented roll out of this 5th generation of wireless technology across the world, while  concerns has been steadily gaining steam over the last year, but over the last month I have noticed a trend in the “5G Awareness” community (and the larger truth community as well) where someone sees a piece of information that fits their bias or preconceived notions and accepts the information as truth without doing any research.

These individuals then proceed to spread the news to anyone else who will listen. And just like that blogs, articles, and videos filled with misstatements and half-truths quickly go viral.

These theories include the believe that there is no such thing as CoViD-19 and the symptoms are in fact being caused by radiation released from 5G small cells and towers.

There is no evidence to back these claims.

There is also the theory that radio frequency radiation is weakening the immune system of individuals and thus allowing CoViD-19 to kill them. Some online commentators have speculated that the potential deployment of 5G infrastructure using 60 GHz frequencies could be affecting oxygen uptake in humans, leading to shortness of breath and deaths which are officially attributed to coronavirus.

While there are legitimate studies detailing the impacts of EMFs on the immune system and damage to cells, as well as at least one interesting study on 60 GHz affecting oxygen uptake in the atmosphere, as of now we have no direct evidence to support these claims.

Perhaps the strongest statement made by a professional with experience on the effects of radio frequency radiation comes from Dr. Martin Pall, a Professor Emeritus of Biochemistry and Basic Medical Sciences at Washington State University. Pall is a published and widely cited scientist on the biological effects of electromagnetic fields and an expert in how wireless radiation impacts the electrical systems in our bodies.

Dr. Pall recently released a new report titled Role of 5G in the Coronavirus Epidemic in Wuhan China which offers the theory that the suppression of the immune system by exposure to 5G towers could weaken the body and increase the detrimental effect of CoViD-19. Dr. Pall concludes:

It is my opinion, therefore, that 5G radiation is greatly stimulating the coronavirus (COVID-19) pandemic and also the major cause of death, pneumonia and therefore, an important public health measure would be to shut down the 5G antennae.”

Dr. Pall also notes that more studies need to be conducted on 5G before the global roll out is complete to properly determine the biological effects of the technology.

Despite the lack of hard evidence for the coronavirus-5G connection, videos by dubious researchers claiming a direct link between 5G and CoViD-19 are going viral.

As Michelle Jones concludes, conspiracy theories linking new technology to health concerns are not new. When mobile networks installed 3G equipment in the mid-2000s, there was a similar outcry claiming a link between 3G and health problems. Others have made similar health claims about microwaves and Wi-Fi networks.

And once again, scientists say there is absolutely no evidence that 5G can be linked with the coronavirus. According to the BBC, NHS England Medical Director Stephen Powis describes the conspiracy theory as “the worst kind of fake news.”

Dr. Simon Clarke of the University of Reading said the claims about 5G making people more susceptible to catching COVID-19 or somehow being used to transmit the virus are “complete rubbish.” Although very strong radio waves can cause things to heat up, 5G technology is not strong enough to heat people up to any meaningful level. He said many studies have shown that the energy levels from 5G radio waves are tiny, so they aren’t even close to being strong enough to have a negative impact on the immune system.

Other experts believe that there are serious health risks related to 5G, even if its not tied to Coronavirus.

end
Global shipping containers:
we are witnessing an unprecedented surge of blank sailing
(zerohedge)

Container Lines Face “Profound” Threat As COVID-19 Sparks Unprecedented Surge Of ‘Blank’ Sailings

The global economy is unlikely to experience a V-shaped recovery for the second half of the year as the containerized shipping industry is quickly sinking, and the fallout could persist into 2021.

Copenhagen-based Sea-Intelligence reported on Monday that 212 sailings over the last three months had been canceled in response to major shipping lines reducing capacity along routes in developed and emerging markets. The total number of “bank” (canceled) sailings has quadrupled over the last week, reported American Shipper.

Sea-Intelligence CEO Alan Murphy said earlier this week that container carriers started cutting service as China’s economy ground to a halt in February to mitigate the spread of COVOID-19.

“It is clear that the primary purpose of the capacity reductions [is] to prevent a catastrophic drop in rate levels,” Murphy said on Monday. “The cost savings are also important, as they too are measured in the billions, but they pale in comparison to the impact declining rate levels will have.”

Murphy said the virus shocked global supply chains and could soon produce “profound” financial impacts on carriers. He said his best-case scenario is a 10% decline in volume, and container rates hold steady, that would result in carriers losing upwards of $800 million this year. As for the worst-case scenario, volumes and rates crash as they did a decade ago, carriers would lose a mind-boggling $23 billion this year.

We noted last month that undeliverable goods began piling up at Chinese ports, which has also started to happen at US ports, indicating that global trade remains depressed. This all suggests that distress in the shipping industry could persist into 2021.

As the full devastation of the virus depression emerges, Lars Jensen, CEO of SeaIntelligence Consulting, said: “it is clear that carriers are highly likely to blank far more sailings [if] we begin to see rates slide too far.”

Jensen said the increase in bank sailings could lead to balance sheet deterioration for top carriers.

“Carriers’ survivability in the coming months hinges on the depth of their current liquid reserves, their ability to attract additional liquid reserves [and the extent they are] able to postpone larger payments and potentially refinance debts.”

And for some proof that a V-shape recovery in the global economy is a distant dream. The World Trade Organization (WTO) published a new report on Wednesday that offered some truly apocalyptic estimates for global growth:

“World trade is expected to fall by between 13% and 32% in 2020 as the COVID 19 pandemic disrupts normal economic activity and life around the world.” 

And if that wasn’t enough, the Organization for Economic Co-operation and Development (OECD) also released a report that suggested all major economies had plunged into a “sharp slowdown.”

And determining when the global economy recovers depends on the duration of the virus outbreak. The virologists at JPMorgan show that much of the world is still in the late accumulation cycle:

And here’s the bad news, the virus could return in a second or third wave, just as the Spanish Flu pandemic did.

Signs of recovery were hopeful in China over the last month as Wuhan’s lockdown recently ended, and it appeared people were getting back to work. But now fears of a second virus wave appear imminent, dashing any hope that an economic recovery in the country could be seen in the first half.

To sum up, probabilities are increasing that a V-shaped recovery will not be seen this year in the global economy as container vessel operators should start realizing the “worst-case scenario” with global depression unfolding across the world.

end

7. OIL ISSUES

Oil plunges with news that the supposed deal is nowhere near enough to what is needed.  Goldman Sachs now expects WTI to drop back to 20 dollars.

(zerohedge)

 

Oil Plunges As Saudi Deal “Nowhere Near Enough”; Goldman Now Expects WTI To Drop Back To $20

Moments ago, we reported that as part of what is the largest production cut deal in history, both Saudi Arabia and Russia will cut their output by 20%, capping their output to 8.5MM b/d in May and June under the new OPEC+ deal removing about 5 million barrels. The remaining countries in OPEC+ will contribute another 5 million or so with Bloomberg reporting that all members of OPEC+ have agreed to cut their output.

The market is unimpressed, though; after rallying as much as 10%, crude has swung to a 7% drop.

The reason: as we noted earlier, in a world where there is as much as 35MM b/d in less demand, the 10MMb/d production cut is, as Bloomberg puts it, “nowhere near enough.”

Worse, it appears that even the so-called deal is not really a deal, with Mexico reportedly objecting in the last minute, and Kazahkhstan and Brunei also unhappy:

Amena Bakr@Amena__Bakr

Kazakhstsan, Brunei and Mexico consulting with their governments on their base line… they are not happy

And just when everyone thought there is a deal, an energy reporter notes that “the drama continues…. the smaller producers are holding up the deal now!”

Amena Bakr@Amena__Bakr

The drama continues…. the smaller producers are holding up the deal now!

Assuming there is a deal, what happens to oil next?

Well, according to Goldman which predicted precisely this outcome – namely a 10mmb/d production cut today – WTI is headed back to $20. For those who missed it yesterday, here again is the summary:

Our updated 2020 global oil balance suggests that a 10 mb/d headline cut (for an effective 6.5 mb/d cut in production) would not be sufficient, still requiring an additional 4 mb/d of necessary price induced shut-ins. While this argues for a larger headline cut of close to 15 mb/d, we believe this would be much harder to achieve, since the incremental burden would likely need to fall on Saudi Arabia to be effective. Further, our price modeling suggests that Brent prices near $35/bbl already reflect such an outcome, with last week’s rally having brought crude prices to levels that likely slow the large-scale US production drop that are necessary to a deal in the first place.

Net, while the prospect of a deal can support prices in coming days, we believe this support will soon give way to lower prices with downside risk to our near-term WTI $20/bbl forecast. Ultimately, the size of the demand shock is simply too large for a coordinated supply cut, setting the stage for a severe rebalancing.

And some more details:

The ability for the US to participate in coordinated cut is limited by regulation (as we discuss in this footnote) although such hurdles are unlikely to prevent a deal. First, the US administration has expressed its willingness to use political/defense leverage or tariffs on Saudi and Russia oil imports to obtain a cut. Second, and perhaps most importantly, the US can point to its contribution with upstream activity already dropping and the US Department of Energy forecasting on April 6 that production would be falling by 2 mb/d by year-end relative to its previous March forecast.

Assuming that a deal is reached – our base case now – the key question will be whether its size and timing will improve global oil balances sufficiently to support prices above current levels. This is key, as a cut that would prove too little too late would lead to storage saturation and additional necessary production shut-in, with distressed producers driving physical crude prices and spot oil prices sharply lower. Our updated 2020 global oil balance suggests that a 10 mb/d headline cut would not be sufficient, still requiring necessary price induced shut-ins on top of such voluntary curtailments.

To come to this conclusion, we update and refine our 2020 global oil balance (we provide a full breakdown of this analysis in Section 2 of this report). First, we once again slightly lower our demand expectations as isolation policies get deployed in a still growing number of countries and with their lift date increasingly pushed back. We now expect a hit to April/May/June global oil demand of 22/16/9 mb/d (19/12/6 mb/d previously). Second, we introduce an estimate of peak monthly storage fill capacity, which starting from current stock levels is of 17 mb/d in April (with 20 mb/d likely achieve last week[3]), 13 mb/d in May and only 5 mb/d in June. From a base-case production perspective, we broadly maintain our last published production forecast from March 17 (which reflected steady declines in output but did not allocate the necessary shut-in), allowing us to estimate both the sizes of the voluntary and necessary shut-ins.

While this would simply argue for a larger 15 mb/d “headline” cut (with “effective” supply reduction of 10 mb/d), we believe it would be much more difficult to pro-actively allocate an incremental 5 mb/d of voluntary cuts across countries that do not have Saudi’s geological oilfield flexibility, with the Kingdom’s own ability to cut to 8 mb/d likely challenged. In fact, recent price levels would likely keep US crude prices at levels that disincentivize the large scale US production drop that backdrop the rationale for the cuts in the first place. As a result, an 10 mb/d “headline cut” that would still require additional large but short-lived price-induced cuts is likely the preferred outcome for core-OPEC, as it ensures the contribution of many producers (and higher OSPs even should Brent prices return to their lows).

While the prospect of a deal can support prices near current levels in coming days, we believe this support will soon give way to lower prices, due to both positioning and fundamentals. First and foremost, we don’t believe that a 10 mb/d “headline” production cut can shore up oil balances with lower prices still needed. Second, the sharp short-covering rally of the past week has already brought prices to the levels that we forecast in 3Q20 when the surplus would be ending, a still uncertain outcome. Third, downward price pressure in coming days will be exacerbated by the roll of the long WTI future positions underlying the recent increase in speculative buying[4], as visible on April 6 and in early 2009. Fourth, the potential inability to broker a cut sufficiently large to support seaborne crude prices suggests that Saudi producing at high levels instead to maximize cash flow would actually not be irrational, an outcome that appears mis-priced, with the WTI options market currently only assigning an 18% probably that prices reach $15/bbl by mid-May.

Ultimately, the size of the demand shock is simply too large for a coordinated supply cut, setting the stage for a violent rebalancing (see Top of Mind – Oil’s Seismic Shock page 9). Looking forward, our base-case remains unchanged, with a shift to a deficit by July and a gradual recovery in Brent prices (from lower levels than currently) to $40/bbl by October as inventories start to wind down. The path of the demand recovery will be of course essential to how this price recovery plays out. But after such a violent rebalancing, supply cuts will matter increasingly and could create upside price risks later this year.

It will take time to restart the 10.5 mb/d of shut-in wells (6.5 mb/d voluntarily and 4 mb/d out of necessity) which could also lead to permanently lost productive capacity. For example, if we assume (1) a recovery in OPEC/Russia production through 3Q-4Q20 back to 1Q20 levels, (2) that production declines expected outside of shut-ins (due to lower capex and decline rates) don’t reverse and (3) that 1 mb/d of the remaining production cuts take at least a year to return online, our oil balance would feature fully normalized inventory levels by early 2021 and point to Brent prices at $55/bbl. While such a rally could be delayed by a faster unwind of the cuts, it does illustrate that the violent rebalancing we expect in coming weeks can set the stage for a potential large price recovery later this year.

After all that, it appears that oil trading algos have finally had time to google supply and demand, and what was a 12% gain earlier in the session ended up a 9% loss.

end

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.0858 DOWN .0002 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 108.85 DOWN 0.079 (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 1.2420   UP   0.0029  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.4038 UP .0034 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  THURSDAY morning in Europe, the Euro FELL BY 2 basis points, trading now ABOVE the important 1.08 level FALLING to 1.0859 Last night Shanghai COMPOSITE CLOSED UP 10.54 POINTS OR 0.37% 

 

//Hang Sang CLOSED UP 329.96 POINTS OR 1.38%

/AUSTRALIA CLOSED UP 3,43%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 329.96 POINTS OR 1.38%

 

 

/SHANGHAI CLOSED UP 10.54 POINTS OR 0.37%

 

Australia BOURSE CLOSED  UP 3.43% 

 

 

Nikkei (Japan) CLOSED DOWN 7.47  POINTS OR 0.04%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1661.60

silver:$15.17-

Early THURSDAY morning USA 10 year bond yield: 0.74% !!! DOWN 4 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.34 DOWN 4  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early THURSDAY morning: 100.10 DOWN 2 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

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And now your closing  THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.91% DOWN 7 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.02% UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.78%//DOWN 5 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,60 DOWN 5 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 82 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.35% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.95% 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 THURSDAY

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

Euro/USA 1.0932  UP     .0072 or 72 basis points

USA/Japan: 108.38 DOWN .545 OR YEN UP 55  basis points/

Great Britain/USA 1.2451 UP .0059 POUND UP 59  BASIS POINTS)

Canadian dollar UP 25 basis points to 1.3979

 

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The USA/Yuan,CNY: AT 7.0432    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0503  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.6494 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 5 IN basis points from WEDNESDAY at 0.72 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.34 DOWN 4 in basis points on the day

Your closing USA dollar index, 99.48 DOWN 69  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 THURSDAY: 12:00 PM

London: CLOSED UP 164.93  2.90%

German Dax :  CLOSED UP 231.85 POINTS OR 2.24%

 

Paris Cac CLOSED UP 64.10 POINTS 1.44%

Spain IBEX CLOSED UP 118.80 POINTS or 1.71%

Italian MIB: CLOSED UP 240.80 POINTS OR 1.39%

 

 

 

 

 

WTI Oil price; 25.46 12:00  PM  EST

Brent Oil: 33.46 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    73.75  THE CROSS LOWER BY 1.30 RUBLES/DOLLAR (RUBLE HIGHER BY 130 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.35 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

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

WTI CRUDE OIL PRICE 4:30 PM :  23.43//

 

 

BRENT :  31.83

USA 10 YR BOND YIELD: … 0.73…..down 4 basis points

 

 

 

USA 30 YR BOND YIELD: 1.35..down 3 basis points..

 

 

 

 

 

EURO/USA 1.0930 ( UP 70   BASIS POINTS)

USA/JAPANESE YEN:108.45 DOWN .487 (YEN UP 49 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 99.53 DOWN 59 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2464 UP 74  POINTS

 

the Turkish lira close: 6.6710

 

 

the Russian rouble 74.20   UP 0.86 Roubles against the uSA dollar.( UP 86 BASIS POINTS)

Canadian dollar:  1.3961 UP 43 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.35%

 

The Dow closed UP 285.80 POINTS OR 1.22%

 

NASDAQ closed UP 62.67 POINTS OR 0.77%

 


VOLATILITY INDEX:  41.71 CLOSED DOWN 1.64

LIBOR 3 MONTH DURATION: 1.311%//libor dropping //but Libor/OIS remaining high

LIBOR/OIS SPREAD: 1.241.

 

 

USA trading today in Graph Form

Gold Soars Along With Everything Else As Fed Ends Capital Markets As We Know Them

As we noted earlier,  The Fed’s actions this morning mean “free markets are dead.

Guggenheim’s Scott Minerd summed up exactly what The Fed has done with its actions today:

“The Fed has made it clear that it will not tolerate prudent and responsible investing.”

The Fed just went full Leeroy Jenkins…

And gold is starting to signal fears over fiat…

Something is brewing…

And the spot-futures markets are decoupling as physical (geographic) shortages rear their ugly heads again…

Source: Bloomberg

As Bloomberg notes, the internal mechanics of the gold market are again showing strains under this rally. Gold futures are trading more than $50 above the spot price in London.

Until recently, that was unheard of in a metal that’s so utterly fungible, so easy to transport and where trade channels are so deeply established. But with planes grounded and refining capacity severely restricted, don’t expect the arbitrage to break down immediately.

Bloomberg’s Garfield Reynolds was quick to note, the global business environment is being transformed – we are all socialists now.

This is about more than just the failure of earnings estimates to keep up with the virus impact – investors need to disregard projections that an end to the crisis will restore the pre-outbreak status quo.

Decades of pushing government out of business are being reversed in mere weeks, with policy makers telling companies where, how and if they should operate – whether they can pay dividends, buy back stock or fire employees.

In other words, governments are almost fully taking over free markets, with the profit principle dethroned as the key business driver.

This changes the rules of the game for investors.

Indeed, as Bob Rodriguez details ominously,

With the events of the past three weeks, the perversion and conversion to a dystopian capital market and economic system is virtually complete.

As for me, with the Fed’s announcement of unlimited QE and its “will buy or support almost anything,” along with the pending passage of a $2-2.5 trillion stimulus package, this is the end of the capital markets as we have known them.

We have now entered unlimited QE and MMT where there is no escape.

It is the Roach Motel all over again.

In Chairman Bernanke‘s 2010 Washington Post op-ed, he argued that QE would lead to a virtuous economic cycle; therefore, the Fed would eventually be able to exit from its QE operations. I argued that once initiated, a reversal would be impossible. It would be like the Roach Motel, “You can check in, but you cannot check out.”

With the initiation of the Fed’s complete takeover and control of the US financial economy, there is now absolutely no accurate pricing discovery in the capital markets and we have entered a period of total manipulation. In light of this, the only markets I have an interest in are those where the heavy hand of government is not involved or only minimally involved. This leads me to rare commodities and collectibles. The public equity and debt markets are now nothing more than greater fool markets that are led by the greatest fools of all, the Fed and the Congress. US capital markets, RIP!

This is no small matter!

When everything is essentially socialized as to risk, a return vs risk evaluation is essentially meaningless since the risk side of the equation has been truncated.

Over a period of time which I cannot estimate yet, I will continue my preparation for a far different economic and financial environment.

Capital deployment strategies will likely have to change from what has been the norm in the post WW2 environment. We are in a New World Order.

So let’s survey the damage from The Fed’s “there’s no limit to what we can do” words and actions this morning… and that is perhaps why USA’s sovereign credit risk is beginning to show some cracks…

Source: Bloomberg

First things first, the market knows best as to when and how the virus peaks…

Source: Bloomberg

Because the market did a great job of understanding the virus when it first broke out…

Source: Bloomberg

Stocks loved The Fed’s actions but as futures show, the effect of yet another $2.3 trillion in promises wore off fast…

Small Caps were best on the day as Nasdaq lagged…

This (admittedly shortened) week was among the market’s all-time best week’s ever…Small Caps were up a stunning 17%-plus and The Dow gained over 12.63% – the second best week since 1938 (+12.845% 2 weeks ago, +12.59% Oct 1974, +14.15% Jun 1938)

This was the biggest short-squeeze week ever…

The Dow tagged a 50% retracement, then fell…

The Dow is up 30% from its lows…

The other big story of the day was OPEC’s utter failure – after spreading rumors of a possible 20mm production cut… they managed less than half of that for just two months…

…and WTI went from +12% to -8% on the day…

The Dollar traded lower today…

Source: Bloomberg

As The Fed’s actions may have alleviated short-term dollar liquidity stress…

Source: Bloomberg

Treasury yields were lower today (even with stocks bid), but the curve continued to steepen with the short-end outperforming…

Source: Bloomberg

10Y remains rangebound…

Source: Bloomberg

The Fed’s “we’ll buy any and all of your crap” policy sent HY credit markets soaring with HYG having its best day ever…

Notably, HY “caught down” to VIX today again…

Source: Bloomberg

Crytpos were flat to modestly lower today, holding the week’s gains…

Source: Bloomberg

While gold and oil stole the headlines, silver was best among the major commodities…

Source: Bloomberg

This week’s ugliness in crude and strength in silver has left the Oi/Silver ratio at a record low… well below the apparent ‘floor’ of 1.5 ounces of silver per barrel that has been in place for 35 years…

Source: Bloomberg

Kyle Bass once said“Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It’s That Simple!”

Source: Bloomberg

It seems that insurance is starting to pay off.

So stocks have two of their best weeks ever… and the US economic data suffers its worst monthly crash ever…

Source: Bloomberg

The reason stocks rallied…

Fun-durr-mentals? Nope!

Source: Bloomberg

Simple! – The Fed injected $440BN in last week, total is now $6.3 trillion

And stocks are now more expensive than they were at the peak in price…

Finally as Mercutio McG (@JAMcGinley), noted so poignantly, “if the market gets back to ATHs while we are shutdown, it only proves the bears right. That the whole thing was a giant Fed fueled ponzi.”

end

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

Gold Is Soaring…

The Fed just went full retard (even fuller retard than it had gone two weeks ago) and along with its promise to buy pretty much anything and make all collateral money-good, it has eased an apparent resurgence in dollar liquidity stresses.

The FRA-OIS spread had been blowing out, signaling dollar tightness… well that’s eased now

And the dollar is losing ground fast…

And as the extreme policies of The Fed ripple through markets, so gold is soaring, reflecting the abuse of fiat that is occurring in real time…

And the paper-physical gold markets are decoupling once again…

As Egon von Greyerz recently reminded,  remember you are not holding gold to measure the gains in debased paper money. Instead you are holding physical gold as insurance against a broken financial system that is unlikely to be repaired for a very long time.

end

ii)Market data/USA

 

Another 6.6 million Americans have filed for unemployment insurance.

A Shocking 17 Million Americans Have Filed For Unemployment In Past 3 Weeks

Two weeks ago it was a record 3.3 million initial claims;  last week it was an  additional (upwardly revised) 6.875 million in initial claims, and this week another 6.606 million claims (almost exactly our expectation of 6.5 million).

That is a shocking 16.78 million people who have applied for unemployment benefits in the last three weeks.

Source: Bloomberg

And of course, last week’s “initial” claims and this week’s “continuing” claims… the highest level of continuing claims ever

Source: Bloomberg

The three-week tally implies an unemployment rate of around 13% or 14%, surpassing the 10% peak reached in the wake of the last recession.

Put another way, we have lost 1132 jobs for every confirmed US death from COVID-19 (14,817).

This is simply stunning.

“The U.S. labor market is in free-fall,” said Gregory Daco, chief U.S. economist at Oxford Economics in New York.

“The prospect of more stringent lockdown measures and the fact that many states have not yet been able to process the full amount of jobless claim applications suggest the worst is still to come.”

And another important note is that weekly jobless claims data are based on “hard facts”, UBS points out, unlike survey data
which is subject to quirks around:

a) some of the treatment of supply chains, which has flattered data,

b) the fact that many respondents will not be replying to surveys during the virus disruption period, and

c) survey data will give more accurate assessments during ‘normal’ times, perhaps not as much in unusual times.

Of course, the government is coming to the rescue. As a result of the freshly-passed ‘relief’ bill, self-employed and gig-workers who previously were unable to claim unemployment benefits are now eligible. In addition, the unemployed will get up to $600 per week for up to four months, which is equivalent to $15 per hour for a 40-hour workweek. By comparison, the government-mandated minimum wage is about $7.25 per hour and the average jobless benefits payment was roughly $385 per person per month at the start of this year.

“Why work when one is better off not working financially and health wise?” said a Sung Won Sohn, a business economics professor at Loyola Marymount University in Los Angeles.

With more than 80% of Americans under some form of lockdown, up from less than 50% a couple of weeks ago, this is far from over.

Picking up on our analysis from last week, BofA notes that data from Google Trends reveals further pickup in searches for “unemployment benefits” and “filing for unemployment,” which could argue for even more upside from here.

Worse still, the final numbers will likely be worsened due to the bailout itself: as a reminder, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed on March 27, could contribute to new records being reached in coming weeks as it increases eligibility for jobless claims to self-employed and gig workers, extends the maximum number of weeks that one can receive benefits, and provides an additional $600 per week until July 31. A recent WSJ article noted that this has created incentives for some businesses to temporarily furlough their employees, knowing that they will be covered financially as the economy is shutdown. Meanwhile, those making below $50k will generally be made whole and possibly be better off on unemployment benefits.

END
as expected…
(zerohedge)

March Class-8 Heavy-Duty Truck-Orders Collapse To Worst In A Decade

Preliminary orders for Class 8 trucks in March plunged to their lowest levels since February 2010.

And to make matters worse, one could argue that March wasn’t even fully affected by the coronavirus and that April’s numbers could wind up being significantly worse.

ACT Research said that orders for March were just 7,800, which falls 51% lower than what was considered an “easy” year over year comp. FTR Transportation Intelligence estimated March orders at 7,400. All four major heavy duty truck manufacturers suspended production for March as a result of the virus, according to FreightWaves.

ACT is now estimating that 2020 production is going to be 53% lower than the 345,000 build in 2019. Meanwhile, the industry was already looking mired in a slowdown before the virus even hit.

Kenny Vieth, ACT president and senior analyst said: “On a seasonally adjusted basis, March was the weakest Class 8 order month since February 2010, and with COVID-19 becoming an even hotter topic over the course of March, one wonders about the impact on order activity on a go-forward basis.”

FTR stated the obvious: the uncertainty around the virus is limiting orders to only what people definitely need for the short term. They predict orders will stay under 10,000 per month until the economy eventually recovers.

Contributing to the issue is the fact that many carriers already have newer trucks in their fleets. The industry has been plagued by a backlog since a production spree caused an inventory glut back in 2018.

Don Ake, FTR vice president of commercial vehicles said: “The only good news here is that the number was still positive despite the high number of expected cancellations. The gross order number is probably higher than 10,000 trucks, which means at least some fleets need more vehicles.”

But carriers with contracts for items like consumer goods and paper goods aren’t seeing a slowdown. Jeff Shefchik, president of Paper Transport Inc. in De Pere, Wisconsin, said: “We always knew [toilet paper] was important and saw it as not a very glamorous product. But all of the sudden, it became very glamorous.”

END

iii) Important USA Economic Stories

Many expect a 13% unemployment by June.  The real number is much much higher

(zerohedge)

COVID-19 To “Shock” US Economy Into Deep Contraction, 13% Unemployment By June, WSJ Survey Says

The Wall Street Journal published a new monthly survey that outlines the severe economic impact of shutting down cities across America to mitigate the spread of the COVID-19 pandemic.

The survey of 57 economists from April 3-7 includes 14.4 million job losses and a surge in unemployment through spring, with the possibility of a recovery in the second half of the year.

Economists told The WSJ that the U.S. labor market is in free fall, could see an unemployment rate as high as 13% in June, and roughly 10% by December. As of March, the jobless rate was elevated at 4.4%.

The outcome of the virus pandemic spreading across the country with 399,929 confirmed cases and 12,911 deaths, has turned into an economic and social crisis.

A depression will unfold in the second quarter, and the survey expects GDP to contract by at least 25% on an annual rate.

“This is the worst external shock in anyone’s living memory; it is as if a meteor hit the Earth and now we have to put it back on its axis,” said Grant Thornton economist Diane Swonk.

Most of the economists, or at least 85% that were surveyed, believe an economic recovery will be seen in the second half of the year. Their estimates are between annualized growth rates of 6.2% and 6.6% in the third and fourth quarters, respectively.

Here’s what they believe growth will be on the full year:

“For the full year, measured from the fourth quarter of 2019 to the fourth quarter of 2020, economists expect gross domestic product to shrink 4.9%. That compares with expectations of 1.2% growth just last month. Full-year growth was 2.3% in 2019. Economists now forecast full-year growth of 5.1% in 2021,” said The WSJ.

Many of the economists that were surveyed were split among the shape of the recovery in the second half.

“Can’t retire 20% of the economy and expect rapid rebound,” said economists Matthew Fienup and Dan Hamilton of California Lutheran University, who was part of the 45.1% of respondents expecting a U-shaped recovery.

The economists also said the Federal Reserve would hold interest rates on the zero lower bound through 2021. The average forecast in rate policy was a 25bps increase by the end of 2021.

The monthly survey showed 100% of economists thought the virus would be a “significant drag” on full-year economic growth in 2020,” up from 75% a month earlier.

“The economy will remain shellshocked at least this year,” said Loyola Marymount University economist Sung Won Sohn. “No time to raise rates.”

When it comes to corporate profits, economists expected earnings across companies in the S&P 500 to plunge 36% in the second quarter versus the same period last year. On an annualized basis, economists believed earnings would decline by at least 19%.

The WSJ notes, “One thing economists don’t see coming are further sharp selloffs in financial markets.”

Economists are making a bold statement in calling a possible bottom in markets as the economy plunges into depression.

Odd that almost every economist surveyed expects a recovery in the second half. What if that is not the case? 

Maybe these economists need to read the latest WTO and OECD reports listed below. It would undoubtedly change their minds about recovery this year…

And a kindly reminder from Sven Henrich via NorthmanTrader.com, “January WSJ survey: 100% expect no recession in 2020.”

Sven Henrich

@NorthmanTrader

January WSJ survey: 100% expect no recession in 2020. https://twitter.com/deitaone/status/1247887143331958789 

*Walter Bloomberg@DeItaOne

*WSJ SURVEY: 84.6% EXPECT ECONOMIC RECOVERY TO START IN 2H 2020

It appears these so-called experts are blinder than bats…

END

Americans not making their mortgage payments soar by a huge 1064%

(zerohedge)

Americans Not Making Their Mortgage Payments Soar By 1064% In One Month

Earlier today we reported that the “The Liquidity Crisis Is Quickly Becoming A Solvency Crisis“, and nowhere is this more true than for US homeowners (their servicers, and their lenders).

According to the latest Mortgage Bankers Association Forbearance and Call Volume Survey which highlights the “unprecedented, widespread mortgage forbearance already requested by borrowers affected by the spread of the coronavirus”, the total number of loans in forbearance grew to 2.66% as of April 1; just one month ago, on March 2, the rate was 0.25%, or a 1,064% increase in just one month.

For loans backed by Ginnie Mae, which serves low- and moderate-income borrowers, the surge was much  greater, with total loans in forbearance soaring to 4.25% from 0.19% one month ago.

Overall, the MBA reports that total forbearance requests grew by 1,270% between the week of March 2 and the week of March 16, and another 1,896% between the week of March 16 and the week of March 30.

According to Bloomberg, borrowers with relatively low credit scores, many of whom live paycheck to paycheck, are most likely to seek relief. Over the past two years, Ginnie Mae has guaranteed $583 billion of 30-year mortgages with FICO scores below 715, according to data compiled by Bloomberg. However, the longer the coronavirus shutdown lasts, the higher the FICO cutoff for those borrowers unable (or unwilling) to make mortgage payments.

“MBA’s survey highlights the immediate relief consumers are seeking as they navigate the economic hardships brought forth by the mitigation efforts to stop the spread of COVID-19,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “The mortgage industry is committed to providing this much-needed forbearance as mandated by law under the CARES Act. It is expected that requests will continue to skyrocket at an unsustainable pace in the coming weeks, putting insurmountable cash flow constraints on many servicers – especially IMBs.”

The surge in nonpayments comes as the U.S. economy has largely shut down to stem the spread of the coronavirus. The government is requiring lenders handling payments on federally backed loans to give borrowers grace periods of as much as six months at a time with no penalties. Predictably, loan servicers have been flooded with borrowers requesting help.

As the tide of requests to stop mortgage payments come in, the MBS reported that according to mortgage servicer call centers, the wait times increased to 17.5 minutes from under two minutes three weeks prior, and the abandonment rates grew to 25% from 5%. It could get worse: as Americans lose jobs by the millions, mortgage companies say they’ll soon get overwhelmed.

Of course, the problem with a solvency crisis is that it creeps up along the financial chain and loan servicers, which are required to pay bondholders whether or not borrowers pay, are themselves facing a liquidity shortfall that could be devastating for some independent mortgage companies. The MBA said that 3.45% of loans held by nonbanks have gone into forbearance. What’s worse is that while it is easy for people to stop paying their mortgage, it will take months if not years to get all those who stopped paying to restart again.

* * *

Unfortunately, this is just the beginning. As we reported last week, according to Moody’s Analytics, as much as 30% of homeowners – about 15 million households – could stop paying their mortgages if the U.S. economy remains closed through the summer or beyond.

“This is an unprecedented event,” said Susan Wachter, professor of real estate and finance at the Wharton School of the University of Pennsylvania. She also points out another way the current crisis is different from the 2008 GFC: “The great financial crisis happened over a number of years. This is happening in a matter of months – a matter of weeks.”

Meanwhile lenders – like everyone else – are operating in the dark, with no way of predicting the scope or duration of the pandemic or the damage it will wreak on the economy. If the virus recedes soon and the economy roars back to life, then the plan will help borrowers get back on track quickly. But the greater the fallout, the harder and more expensive it will be

Meanwhile lenders – like everyone else – are operating in the dark, with no way of predicting the scope or duration of the pandemic or the damage it will wreak on the economy. If the virus recedes soon and the economy roars back to life, then the plan will help borrowers get back on track quickly. But the greater the fallout, the harder and more expensive it will be to stave off repossessions.

“Nobody has any sense of how long this might last,” said Andrew Jakabovics, a former Department of Housing and Urban Development senior policy adviser who is now at Enterprise Community Partners, a nonprofit affordable housing group. “The forbearance program allows everybody to press pause on their current circumstances and take a deep breath. Then we can look at what the world might look like in six or 12 months from now and plan for that.”

But if the economic turmoil is long-lasting, the government will have to find a way to prevent foreclosures – which could mean forgiving some debt, said Tendayi Kapfidze, Chief Economist at LendingTree. And with the government now stuck in “bailout everyone mode”, the risk of allowing foreclosures to spiral is just too great because it would damage financial markets and that could reinfect the economy, he explained.

“I expect policy makers to do whatever they can to hold the line on a financial crisis,” Kapfidze said hinting at just a trace of a conflict of interest as his firm may well be next to fold if its borrowers declare a payment moratorium. “And that means preventing foreclosures by any means necessary.”

Take for example Laura Habberstad, a bar manager in Washington, D.C., who got a reprieve from her lender but needs time to catch up. The coronavirus snatched away her income, as it has for millions, and replaced it with uncertainty. The restaurant and beer garden where she works was forced to temporarily shut down. Laura has no idea when she’ll get her job back, nor does she have any idea how to look for a new job. After all, how do you search for another hospitality job during a global pandemic? Now she’s living in Oregon with her mother, whose travel agency was also forced to close.

“I don’t know how I’m going to pay my mortgage and my condo dues and still be able to feed myself,” Habberstad said. “I just hope that, once things open up again, we who are impacted by Covid-19 are given consideration and sufficient time to bring all payments current without penalty and in a manner that does not bring us even more financial hardship.”

Borrowers must contact their lenders to get help and avoid black marks on their credit reports, according to provisions in the stimulus package passed by Congress last week. Bank of America said it has so far allowed 50,000 mortgage customers to defer payments. That includes loans that are not federally backed, so they aren’t covered by the government’s program.

Meanwhile, Treasury Secretary Steven Mnuchin has convened a task force to deal with the potential liquidity shortfall faced by mortgage servicers, which collect payments and are required to compensate bondholders even if homeowners miss them. The group was supposed to make recommendations by March 30.

“If a large percentage of the servicing book – let’s say 20-30% of clients you take care of – don’t have the ability to make a payment for six months, most servicers will not have the capital needed to cover those payments,” QuickenChief Executive Officer Jay Farner said in an interview. But not Quicken, of course.

Quicken, which serves 1.8 million borrowers, and in 2018 surpassed Wells Fargo as the #1 mortgage lender in the US, has a strong enough balance sheet to serve its borrowers while paying holders of bonds backed by its mortgages, Farner said,  although something tells us that in 6-8 weeks his view will change dramatically. Until then, the company plans to almost triple its call center workers by May to field the expected onslaught of borrowers seeking support, he said.

Ironically, as Bloomberg concludes, “if the pandemic has taught us anything, it’s how quickly everything can change. Just weeks ago, mortgage lenders were predicting the biggest spring in years for home sales and mortgage refinances.” Instead, just a few weeks later the US housing market has fallen into an abyss that could be far worse than the Great Depression.

end

And 30% of USA renters did not make an April payment of rent

(zerohedge)

Over 30% Of US Renters Didn’t Pay April Apartment Rent

Landlords across the country have been left in the lurch after nearly one-third of apartment renters in the US didn’t pay any of their April rent during the first week of the month, according to new data from the National Multifamily Housing Council to be released Wednesday.

The shocking figure comes as 10 million new unemployment claims were filed in the past three weeks due to the COVID-19 pandemic.

According to the report cited by the Wall Street Journal, just 69% of tenants paid any rent between April 1 and 5 vs. 81% the same week in March and 82% in April 2019.

 

The count includes renters who only made partial payments. Many renters who haven’t yet paid may still pay later this month, NMHC said, and an uptick in paperless payments over the weekend may not be reflected in this initial count.

The data come from 13.4 million rental apartments analyzed by several real-estate data firms, including RealPage, Yardi and Entrata. The properties included are considered investment grade with a tenant base that may skew higher-income than the median renter. The data don’t include single-family homes, and the apartments counted exclude public housing and other subsidized affordable housing. –Wall Street Journal

The Journal also notes that some tenants will receive temporary protection from evictions “by a patchwork of federal and local laws,” but the reality is that as unpaid rents pile up, so will mortgage defaults as landlords struggle to satisfy their obligations – which will in turn affect fixed-income investments backed by said mortgages.

Standing in the way of this cascade is a promise by the federal government which will allow apartment building owners to defer their government-backed mortgage payments, while the Federal Reserve has also vowed to buy bonds tied to certain multifamily loans, according to the report.

That said, the measures don’t address loans held by banks without a government guarantee – leaving over 2/3 of financed rental units subject to foreclosure.

end
JPMorgan halts all non government guaranteed small business loans
(zerohedge)

Just How Bad Is It Going To Get: JPMorgan Halts All Non-Government Guaranteed Small Business Loans

With America’s small and medium businesses suffering from cardiac arrest now that the economy is in a indefinite coma, it is hardly a surprise that the largest US bank, JPMorgan Chase has been inundated with more than 375,000 requests for $40bn of loans under the $350bn small business rescue scheme, a higher number of applications than any other bank, its consumer head Gordon Smith told President Donald Trump on Tuesday.

It is in this context that the FT reports that Chase has temporarily stopped accepting applications for small business loans outside the government’s Paycheck Protection Program. A Chase spokeswoman told the FT that the bank was now devoting all of its small business underwriting resources to processing these applications and had “temporarily suspended” taking other applications from small businesses. The bank was continuing to process non-PPP applications already in train, she said, and would revisit the issue of new applications next week.

This means that any small business that have borrowing needs beyond the PPP’s limits, or if they want to borrow for purposes beyond wage bills, they would need to seek other facilities or other lenders.

Ok fine, JPM is so busy trying to bail out mom and pop shops, it doesn’t have time to deal with anyone else. Why is that a story? Here’s why.

First of all, even before the Treasury announced it would hand out PPP loans to eligible business, the issuance of commercial and industrial loans exploded, and in the past month soared by nearly $400 billion, the fastest increase on record.

There is a good reason for this surge, and it has to do not only with a surge in demand but also supply – after all such loans are some of the highest margin products US commercial banks offer, in fact one can argue that it is not prop trading or frontrunning the Fed, but issuing loans that is the primary business of – you know – commercial banks!

Furthermore, loans are not only extremely profitable over their lifetime, they are also secured by assets, effectively eliminating downside risk for the bank lender. Said otherwise, of all bank products, these are the ones US commercial banks want to flow no matter what. One final point: bank lending is the most scalable, as it involves a minimum amount of upfront work which creates an extremely lucrative revenue stream since traditionally only a tiny percentage of loans default, at which point the bank’s loan workout teams kick in.

Unless… that’s no longer the case.

Which brings us to what is the much more likely reason why the largest US commercial bank has decided to suddenly no longer participate in the one product that is the bread and butter of large US commercial banks.

As a reminder, there is one way that PPP loans are unique – they are guaranteed by the Treasury, which means that JPMorgan carries absolutely no risk when it issues the loan. Worst case, the loan defaults and the bank issues a refund request to Uncle Sam, which then quickly makes JPM whole. Simple enough.

But all those other loans that flooded the system and are still flooding the system… see they don’t have a government guarantee, they only have a loan-to-value, and if the value of the underlying assets is virtually nil – as would be the case in a depression and a wave of defaults, well… there goes your supply.

And even though loans normally pay generous interest over their lifetimes, that is not the case if JPMorgan’s default assumptions have soared alongside the surge in new issuance.

Said otherwise, the only reason why JPMorgan would “temporarily suspend” all non-government backstopped loans such as PPP, is if the bank expects a default tsunami to hit coupled with a full-blown depression that wipes out the value of any and all assets pledged to collateralize the loans. Futhermore, why issue loans that will default in months if not weeks, just as bankruptcy courts fill up with millions of cases (assuming the coronavirus clears out by then, as the alternative is simply unthinkable – a default tsunami without any functioning Chapter 11 or Chapter 7 process) when JPM can simply stick to the 100% risk-free issuance of government-guaranteed small-business loans which pay a handsome 1% interest, especially if it makes JPM look patriotic by doing its duty to bail out America.

If indeed it is the case that JPMorgan is quietly stepping away from the non-government backstopped lender market, expect all other banks to soon do the same, and other big and not so big US banks such as BofA, Citi, and Wells Fargo to follow just as quietly in JPM’s footsteps and halt loans to all small business across America due to fears of a default tsunami.

If that indeed happens, and if America is about to not only find itself locked out of normal-course funding, but flooded with thousands if not millions of corporate bankruptcies, what happens then? Will the Fed expand its functions to become a “bankruptcy court of last resort” for all of America and offer unconditional DIP loans to millions of small and medium businesses, while equitizing existing lenders (and making equityholders whole)?

Since this is unlikely, inquiring minds want to know just how bad will the US depression get over the next few months if JPMorgan has just put up a “closed indefinitely” sign on its window.

end
This ought to be fun:  We Work stopped paying rent on multiple locations. They are going bust
(zerohedge)

WeWork Has Stopped Paying Rent On Multiple Locations

Amid asset sales, boardroom battles, and seemingly endless litigation, WeWork has decided to jump on the “well, why should we have to pay according to a signed contract when no one else is” bandwagon and is reportedly skipping rent payments on numerous properties.

Amid an effort to aggressively cut costs as the economic downturn crushes any revenuesThe Wall Street Journal reports, according to people briefed on the matter, that WeWork has yet to mail in its April rent check at numerous properties while it tries to renegotiate leases. (Quick aside – WeWork mails in its rent-checks?)

WeWork believes in the long-term prospects of our locations and our relationships with landlords across the world,” a WeWork spokesperson said in a statement.

“Rather than implementing a companywide policy on rent payments, we are individually reaching out to our more than 600 global landlord partners to work in good faith towards finding asset-specific solutions that benefit all parties involved.”

WeWork isn’t treating all landlords the same. While some reportedly say they have been paid, others say they are still waiting for their checks.

One glance at the company’s bond price tells you all you need to know about the cash situation at this once almost $50 billion market cap mockery of an office space company.

Bloomberg’s Gillian Tan reports that WeWork executives have been pitching solutions including revenue-sharing agreements. Such deals would give landlords the chance to collect a portion of future revenue generated by each property. Early indications are that landlords are reluctant, people with knowledge of the matter said last week.

Mark it zero, Masa-san!

end
Reuters;  USA GDP will contract 30% in second quarter and 5% in all 2020.  I think that they are terribly underestimating the damage.
(Reuters)

U.S. GDP will contract 30% in second quarter, 5% in 2020: PIMCO

Kate Duguid

NEW YORK (Reuters) – The forced closure of businesses across the United States and surge in unemployment due to the coronavirus pandemic will force U.S. growth to contract by 30% in the second quarter and 5% overall in 2020, Pacific Investment Management Co (PIMCO) wrote on Wednesday.

In a blog post, Tiffany Wilding, a North American economist at PIMCO, wrote that evidence from recent jobs reports suggests the unemployment rate may rise as high as 20%.

 

After pandemic, Fed policymakers see slow U.S. recovery

The 30% contraction in growth in the second quarter would likely be followed by two quarters of recovery, Wilding wrote. While two quarters of contraction is shorter than the four recorded in the 2008 financial crisis, the depth of the shock is far greater – quarterly contractions did not rise above 8% during that time.

California-based PIMCO is one of the world’s largest investment firms with $1.91 trillion assets under management as of Dec. 31 2019.

“The speed and magnitude of the U.S. labor market disruption has been sharper than any we’ve seen in recent history, suggesting that the decline in overall activity has also likely been much more severe,” wrote Wilding.

In spite of the already enormous spate of layoffs, the number of jobs lost is likely to continue to rise as more states close non-essential businesses. The figures are also expected to rise as unemployment offices work through a backlog of claims. Wilding notes that the government’s March employment report showed that layoffs had begun earlier than suggested by weekly unemployment data, and were spread across industries, including healthcare, which PIMCO had expected to remain resilient.

In spite of the U.S. government’s unprecedented fiscal and monetary stimulus programs, there are still meaningful risks to the U.S. economy, the post said. The stimulus may not be large or fast enough to prevent waves of bankruptcies, and the pandemic experience may fundamentally change U.S. consumer behavior.

 

Additionally, there are segments of the market that are excluded from the stimulus and bond-buying programs, including speculative-grade companies, which are likely to experience a surge in bankruptcies. Those defaults, and the loss of millions of jobs, could ultimately worsen the economic crisis.

After the peak of the pandemic in the United States, which is currently forecast for May or June, PIMCO expects a recovery in growth as businesses reopen and rehire workers. Some sectors may bounce back faster than others. Construction and some manufacturing, along with other industries dependent on advanced lending and project planning are likely to recover more slowly.

end

NO QUESTION ABOUT IT:

the purchase of bonds by the Fed is causing a huge scarcity.  They will now taper again to onoy 30 billion per day.

(zerohedge)

Fed Tapers QE Again, Will Buy “Only” $30 Billion In Treasuries Per Day

From an initial $75 billion per day, The Fed reduced its daily buying to $60 billion per day, then  last week announced another ‘taper’ in its bond-buying program to $50 billion per day for next week. Now it has slashed its buying to “just” $30 billion per day.

Having implicitly confirmed there is now a shortage of bonds as demonstrated by the recent repo ops that saw zero submissions as instead of using repo to park bonds with the Fed Dealers merely sell them back to the Fed, the NYFed has announced it will continue cutting back, or tapering, its “unlimited QE” bond-buying next week.

iv) Swamp commentaries)

The crook Pelosi warns that the next Business Stimulus Spending Bill would not pass unless the Dems. get what they want

(zerohedge)

Pelosi Warns Next Small Business Stimulus Spending Bill Would Not Pass House If Democrats Don’t Get What They Want

Unlike the Phase 3 of the fiscal stimulus, which represented $2.2 trillion in bailout aid for America’s small and medium business, and which passed through Congress without a glitch if with some delays, the next – Phase 4 – stimulus sought by Republicans may face far greater hurdles.

According to Reuters, House Speaker Nancy Pelosi said on Wednesday that $250 billion in coronavirus relief for small businesses desired by Republicans would not pass the House of Representatives on its own under current procedures, which require a unanimous vote of those present while most of Congress is out of town.

The reason why the aid would not get unanimous Democratic support is because Pelosi and Senate Democratic Leader Chuck Schumer are demanding that more aid for hospitals, local governments and food assistance be added to the small business aid proposal that the Trump administration and Republicans want passed this week.

Pelosi was speaking in an interview with National Public Radio. Asked if there are limits on spending for coronavirus relief, she said “No, we have to spend what we need.”

Which leaves republicans with two options: delay the passage of the next stimulus indefinitely, even though according to many the current $350 billion allocated to the PPP small business rescue program will be insufficient, or concede to Democrats and add far more pork to the bill.

Considering that according to Goldman, the US deficit will soar to 18% of GDP in 2020…

… and public US debt will hit 99% by the end of FY2020 and to 108% of GDP by 2023 from the current level of 79%…

… one can ask “what difference does it make?” After all, going forward the Fed will likely have to monetize all debt in perpetuity or risk losing control of long-term rates. In fact, one can probably also ask: why should anyone pay taxes ever again?

end

So true…free markets are dead…The Fed is now to start buying junk bonds and junk etf  and junk toilet bowls, fish tanks, soiled condoms,

old Playboy magazines.and….

(zerohedge)

 

Free Markets Are Dead: Fed To Start Buying Junk Bonds, Junk ETFs

Back on March 23, when the Fed unveiled it would start buying investment grade corporate bonds, we said “now that the Fed is effectively all in, it will buy stocks and junk bonds next.”

We were right.

But let’s back up. A few days ago, we pointed out that the day so many credit bears had been waiting for had arrived, when a record $150BN in investment grade bonds were downgraded to junk, becoming so-called fallen angels, and sparking concerns about what will happen to the $1.3 trillion junk bond market as hundreds of billions of formerly investment grade debt is downgraded to junk and violently reprices the entire high yield space.

Those concerns were answered this morning when as part of the Fed’s expanded $2.3 trillion loan/bailout program, the Fed announced the expansion of its Primary and Secondary Market Corporate Credit Facilities, which will now purchase – drumroll – junk bonds.

In the term sheet of the revised term sheet of the Secondary Market Corporate Credit Facility, the Fed now writes that “to qualify as an eligible issuer, the issuer must satisfy the following conditions”

The issuer was rated at least BBB-/Baa3 as of March 22, 2020, by a major nationally recognized statistical rating organization (“NRSRO”). If rated by multiple major NRSROs, the issuer must be rated at least BBB-/Baa3 by two or more NRSROs as of March 22, 2020.

An issuer that was rated at least BBB-/Baa3 as of March 22, 2020, but was subsequently downgraded, must be rated at least BB-/Ba3 as of the date on which the Facility makes a purchase. If rated by multiple major NRSROs, such an issuer must be rated at least BB-/Ba3 by two or more NRSROs at the time the Facility makes a purchase.

The section in question:

The same logic applies to Fed purchases in the Primary Market: going forward the Fed’s Primary Market Corporate Credit Facility, where a Fed SPV will purchase qualifying bonds as the sole investor in a bond issuance; and purchase portions of syndicated loans or bonds at issuance, it will also include junk bonds and junk loans:

But wait there’s more: in addition to buying the IG ETF LQD as we noted two weeks ago, going forward the Fed will also be buying junk ETFs such as JNK:

The Facility also may purchase U.S.-listed ETFs whose investment objective is to provide broad exposure to the market for U.S. corporate bonds. The preponderance of ETF holdings will be of ETFs whose primary investment objective is exposure to U.S. investment-grade corporate bonds, and the remainder will be in ETFs whose primary investment objective is exposure to U.S. high-yield corporate bonds

Translation: buy JNK with leverage as market prices are now terminally disconnected from underlying fundamentals.

Finally, the Fed also laid out the type of leverage it will apply using the Treasury’s equity “investment” as a capital base, noting that the facility “will leverage the Treasury equity at 10 to 1 when acquiring corporate bonds from issuers that are investment grade at the time of purchase and when acquiring ETFs whose primary investment objective is exposure to U.S. investment-grade corporate bonds.” Additionally, “the Facility will leverage its equity at 7 to 1 when acquiring corporate bonds from issuers that are rated below investment grade at the time of purchase and in a range between 3 to 1 and 7 to 1, depending on risk, when acquiring any other type of eligible asset.”

In short, the only asset that the Fed is now not directly buying is stocks, and here too it’s just a matter of time before the Fed unveils it will start buying the SPY.

end

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

After falling smartly during early Asian trading on Wednesday, ESMs rallied sharply during the last hour of Nikkei trading.  The rally lasted until 1:50 ET.  ESMs then tumbled on this:

EU ministers fail to agree coronavirus economic rescue – A persistent stand-off between a camp of financially ailing southern European Union states led by Italy on one side and the Netherlands acting as the bulwark of the fiscally conservative north on the other was blocking progress…Italy was ready to accept a generic reference to the need to stick to EU budget rules, but nothing more specific, they said, adding that with the uncertainty of the epidemic’s effect on economies, it was impossible to design detailed criteria…https://www.reuters.com/article/us-health-coronavirus-eurogroup-suspensi/eu-ministers-fail-to-agree-coronavirus-economic-rescue-in-all-night-talks-idUSKBN21Q0MJ

Despite a bunch of ugly economic news, ESMs and stocks soared for the entire US session on Wednesday.  More positive Covid news appeared and Trump indicated his team is ready to start reopening small cities & towns.  The Murray Model again revised its projections sharply lower.

@AlexBerenson: @IHME_UW updated its model again – two days after the last revision. Total deaths fell from 81K to under 61K hospitalizations fell from 140K to 90K (1/3 last week’s projection)…

IHME Model Revised Again, Cutting Coronavirus Death Projection by Over 35 Percent in Days

Both Birx and fellow task-force member Dr. Anthony Fauci said last week that the country could face between 100,000 and 200,000 total deaths from the pandemicregardless of whether Americans continue to comply with the most stringent social distancing guidelines

https://www.nationalreview.com/news/ihme-model-revised-again-cutting-coronavirus-death-projection-by-over-35-percent-in-days/amp/

@AmericaNewsroom: There’s been a stabilization and a decrease in the hospitalizations, admission to intensive care and the requirements for intubations,”- Dr. Anthony Fauci updates on the battle to contain the coronavirus outbreak [about 1.5 hours before the NYSE open]

@realDonaldTrump: FLATTENING OF THE CURVE!  Once we OPEN UP OUR GREAT COUNTRY, and it will be sooner rather than later, the horror of the Invisible Enemy, except for those that sadly lost a family member or friend, must be quickly forgotten. Our Economy will BOOM, perhaps like never before!!!

Trump Team Preps Plans to Reopen Economy That Depend on Testing

The White House is developing plans to get the U.S. economy back in action that depend on testing far more Americans for the coronavirus than has been possible to date, according to people familiar with the matter. The effort would likely begin in smaller cities and towns in states that haven’t yet been heavily hit by the virus. Cities such as New York, Detroit, New Orleans and other places the president has described as “hot spots” would remain shuttered…

https://www.bloomberg.com/news/articles/2020-04-07/trump-team-preps-plans-to-reopen-economy-that-depend-on-testing

People increasingly realize the fear and panic generated by models and ‘experts’ was totally bogus.  And, there is a growing realization that there are financial and political incentives to overstate Covid fatalities.

When the MSM started to question the models last weekend, it didn’t take long for massive revisions to appear.  At the Covid daily briefing on Tuesday evening, a reporter got Dr. Birx to admit that Covid deaths are being overstated.

@chrisbergPOVNOW: SHOCKING: MN Sen & Dr. @drscottjensensaid that he received a 7 pg doc from @mnhealth to fill out death certificates with a diagnosis of COVID-19 whether the person actually died from COVID-19 or not.  Why is MN inflating COVID-19 death numbers?

https://twitter.com/chrisbergPOVNOW/status/1247680994821509121

Decline in Heart Attack and Stroke Patients Alarms Doctors [Cuz it’s medically impossible!]

Doctors in many parts of the United States have reported 40-60%  drops in admissions for heart attacks and strokes, one cardiologist wrote in the New York Times…[Wrongly classified as Covid?]

https://townhall.com/tipsheet/elliebufkin/2020/04/08/decline-in-heart-attack-and-stroke-patients-alarms-doctors-n2566557

Journalist @ellie_bufkin: With the knowledge that all people who died with even suspected COVID-19 infection, regardless of other illnesses, are being counted as victims of the virus everything is kind of up in the air about what else is going on.

@DineshDSouza: Now why would hospitals, the medical establishment and the Coronavirus Task Force exaggerate the death figures? 1. To enhance their authority and importance 2. To increase their funding 3. To prove retroactively how amazing they are when the inflated numbers drop sharply

@adamscrabble: The Hamburg health authority now has test-positive deaths examined by forensic medicine in order to count only “real“ corona deaths. As a result = deaths has already been reduced by up to 50% compared to the official figures of the Robert Koch Institute.

Hamburg only wants to count “real” coronavirus deaths

https://www.t-online.de/nachrichten/deutschland/id_87636856/coronavirus-hamburg-will-nur-echte-covid-19-tote-zaehlen.html

At the Covid daily briefing yesterday, CNN’s Jim Acosta asked if Covid deaths are being inflated.  Birx pathetically tried circumlocution.  It failed miserably.  So, Fauci jumped in and said it’s a conspiracy issue that can be addressed in some book later.  ‘Conspiracy’ is the reflexive accusation to troubling questions.

Obesity is a major risk factor for those with coronavirus, says France’s chief epidemiologist… obese patients are at greater risk of severe complications and remain contagious nearly twice as long

https://www.dailymail.co.uk/health/article-8200025/Obesity-major-COVID-19-risk-factor-says-French-chief-epidemiologist.html

If you rely solely on the MSM for elucidation, you’ve been getting beaucoup fake news and a several-day delay on essential news.  We screamed for about a week that Covid data indicated that the experts and the Covid models were horribly wrong – and the MSM was ignoring it for political reasons.

@IngrahamAngle: At some point “the experts” could claim “the models” show that private vehicle ownership kills millions worldwide, that “flattening the curve” on climate change is a global imperative, requiring private travel ONLY for “essential activities.” Then what?

    The forbearance and patience of the American people has been extraordinary–they’ve lost their basic civil liberties, jobs, income, opportunities, school, and family members. Every day that goes by in shutdown is a day closer to that patience wearing out. At some point, the president is going to have to look at Drs. Fauci and Birx and say, we’re opening on May 1.  Give me your best guidance on protocols, but we cannot deny our people their basic freedoms any longer.

     The creation of government “health and immunity” databases to determine who is allowed to work, worship, travel, gather with others?  Is that what freedom looks like bc of a virus that started in China?

U.S. Consumer Comfort Suffers Biggest Weekly Drop on Record

The Bloomberg Consumer Comfort Index tumbled 6.4 points in the week ended April 4 to 49.9, the lowest since October 2017, according to data released Wednesday. In the past three weeks, the measure has plummeted more than 13 points, also the steepest drop in records back to 1985.  The comfort report’s gauge of confidence in the economy lost a whopping 10.6 points last week to 44.4, the lowest reading since July 2017. A measure of attitudes toward the buying climate slumped 5.9 points to the weakest level since the end of 2017. The CCI’s third gauge, views of personal finances, hit a four-month low…

https://finance.yahoo.com/news/consumer-comfort-u-suffers-biggest-134500033.html

OECD Says Leading Indicators Flag Biggest Monthly Drop on Record

The OECD said its leading indicators, which are designed to flag turning points in economic activity, suggested all major economies had plunged into a “sharp slowdown” with only India registering as being in a mere “slowdown”. The indicators were flagging “the largest drop on record in most major economies”, the Paris-based OECD said in statement, adding that huge uncertainty over how long lockdowns would last severely muted their predictive value…

https://www.nytimes.com/reuters/2020/04/08/world/asia/08reuters-health-coronavirus-oecd-economy.html?searchResultPosition=1

McDonald’s Withdraws Forecast after Covid-19 Bludgeons Sales – BBG

Comparable-store sales…declined 3.4% in the first quarter…with this measure plunging in March after growing 7.2% in the previous two months…

Apple Quietly Cuts Orders from Chinese Suppliers as Hopes for Q2 Rebound Fade

The Commercial Times, a Chinese-language mainland business publication not widely followed in the US, Foxconn  confirmed that Apple has cut orders at several factories around the mainland, citing comments by party officials responsible for monitoring the factories (that’s the way it works in China)….  https://www.zerohedge.com/geopolitical/apple-quietly-cuts-orders-chinese-suppliers-hopes-q2-rebound-fade

For the past few weeks, NY Mayor de Blasio has squawked that he needs more federal support.

New York City auctioned off extra ventilators due to cost of maintenance

New York City auctioned off hundreds of city-owned ventilators at least five years ago under Democratic Mayor Bill de Blasio’s administration, according to an investigation by ProPublica.

   The city acquired the ventilators in 2006 under former Mayor Michael Bloomberg’s administration, when a new strain of the flu was circulating in Asia, according to a report from the New York City Department of Health and Mental Hygiene obtained by the news outlet… The 14-year-old report obtained by ProPublica shows the city was keenly aware of the consequences of a potential pandemic, almost predicting the exact scenario that played out this year, according to the investigative outlet…

https://thehill.com/homenews/state-watch/491651-new-york-city-auctioned-off-extra-ventilators-due-to-cost-of-maintenance

How New York City’s Emergency Ventilator Stockpile Ended Up on the Auction Block

A 2006 pandemic plan warned that New York City could be short as many as 9,500 ventilators. But the city only acquired a few hundred, which were ultimately scrapped because it couldn’t afford to maintain them…  After the 2008 financial crisis hit, tax revenues dried up. Over the next five years, the city health department’s budget was slashed by about $290 million, or 17%, and federal preparedness funding plummeted…  https://www.propublica.org/article/how-new-york-city-emergency-ventilator-stockpile-ended-up-on-the-auction-block

@nytimes: The Cook County jail in Chicago, a sprawling facility that is among the largest jails in the nation, has emerged as the largest-known source of U.S. coronavirus infections, according to data compiled by The New York Times [Another reason for high Covid cases among blacks in Chicago]

@paulsperry_: The two officials heading President Trump’s medical response to the COVID-19 outbreak–Dr. Fauci & Dr. Birx–are tied to the Clintons thru their Democrat activist spouses, raising suspicions political bias may play a role in friction with Trump strategy handling crisis

[PS – Per the WaPo: Birx’s husband, former Clinton advance man Paige Reffe…]g

Bernanke rejects Great Depression comparisons as he says GDP could slump by 30%

“This is like a natural disaster, and the response is more like an emergency relief than it is a typical stimulus or anti-recessionary response.” He said he was “pretty pleased” with the fiscal and monetary responses… https://www.marketwatch.com/story/bernanke-rejects-great-depression-comparisons-as-he-says-gdp-could-slump-by-30-2020-04-08

The US government had little debt when the depression began (16% of GDP in 1929).  Hoover did unprecedented fiscal spending to boost the economy after the 1929 Crash.  FDR campaigned against Hoover’s profligate spending.  Hoover produced a bounce for stocks that ended on April 17, 1931.  Credit Anstalt declared bankruptcy on May 11, 1931; the Great Depression commenced in earnest.

https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-major-events-3306287

US corporate debt of over $10T is a record 47+% of GDP – and GDP will fall sharply now.

The Long Shadow of the 1976 Swine Flu Vaccine ‘Fiasco’ – Some, but not all, of the hesitance to embrace vaccines can be traced back to this event more than 40 years ago

    To avoid an epidemic, the CDC believed, at least 80 percent of the United States population would need to be vaccinated. When they asked Congress for the money to do it, politicians jumped on the potential good press of saving their constituents from the plague, di Justo writes…“With President Ford’s reelection campaign looming on the horizon, the campaign increasingly appeared politically motivated,” Kreston writes… The real victims of this pandemic were likely the 450-odd people who came down with Guillain-Barre syndrome, a rare neurological disorder, after getting the 1976 flu shothttps://www.smithsonianmag.com/smart-news/long-shadow-1976-swine-flu-vaccine-fiasco-180961994/

Doctors say bar soap is more effective than liquid soap, hand sanitizer

As liquid soaps and sanitizers remain elusive, bar soaps are in relatively plentiful supply. And, doctors say they’re as effective or better. [We use Dial because mom told us that’s what is used on newborns.]

https://www.firstcoastnews.com/article/news/local/bar-soap-its-more-available-and-doctors-say-its-better/77-bac492a1-2787-451c-8c39-c9b813d25566

@MSNBC: Sen. Sanders: “Today, I congratulate Joe Biden, a very decent man who I will work with to move our progressive ideas forward … I will stay on the ballot in all remaining states and continue to gather delegates, while VP Biden will be the nominee.”

Bernie Sanders suspended his Democratic presidential campaign yesterday.  However, he is retaining his delegates.  Either Bernie is angling for another payoff, like in 2016, or he thinks there’s still a good chance that Biden might not cross the finish line.

@realDonaldTrump: Bernie Sanders is OUT! Thank you to Elizabeth Warren. If not for her, Bernie would have won almost every state on Super Tuesday! This ended just like the Democrats & the DNC wanted, same as the Crooked Hillary fiasco. The Bernie people should come to the Republican Party, TRADE!  Wow, Bernie is unwilling to give up his delegates, and wants more of them! What’s that all about?

Biden adviser, ObamaCare architect Zeke Emanuel says US should ‘prepare’ for coronavirus measures to last 18 months – the U.S. “will not be able to return to normalcy until we find a vaccine or effective medications.”… Emanuel, one of the architects of the Affordable Care Act, also known as ObamaCare…”I know that’s dreadful news to hear,” the Biden adviser continued. “How are people supposed to find work if this goes on in some form for a year and a half? Is all that economic pain worth trying to stop COVID-19? The truth is we have no choice. … Conferences, concerts, sporting events, religious services, dinner in a restaurant, none of that will resume until we find a vaccine, a treatment, or a cure.”…https://www.foxnews.com/politics/biden-obamacare-architect-zeke-emanuel-says-u-s-should-prepare-ourselves-for-coronavirus-social-distancing-to-last-18-months

Can you image Biden running on a platform that maintains the shutdown of chunks of the US economy, and RELIGIOUS SEVICES, for another 18 months or until a Covid vaccine appears?!?!?

Trump on why Obama has not endorsed Biden yet: “He knows something that you don’t know; but I think I know; but you don’t know.”

Some MSM outlets attributed the big equity rally on Wednesday to Sanders ending his campaign.  For crying out loud, everyone knew Bernie was finished a month ago!  “Stupid is as stupid does!”

Fox: S&P 500 joins Dow in exiting bear market as Sanders suspends presidential campaign

Shocking video shows man in medical mask sucker-punch NYPD cop

Nelson Jimenez, 31, launched his attack in front of a crowd of bystanders who had gathered… to watch the arrest of 27-year-old robbery suspect Yoemdy Castro, law enforcement sources said…

A second cop who responded to the fracas was also punched in the head in an off-camera incident…

https://nypost.com/2020/04/07/man-wearing-medical-mask-sucker-punches-nypd-cop-in-the-bronx/

Illinois Mayor [Alton] Calls on Police to Crack Down on “Stay-at-Home” Violators – Then 48 Hours Later They Catch His Wife at a Bar [Laws are for the ‘little people’]

https://www.thegatewaypundit.com/2020/04/illinois-mayor-calls-police-crack-stay-home-violators-48-hours-later-catch-wife-bar/

Well that is all for today

This has been a very tiring week

I wish everyone a very Happy Easter weekend and to all our Jewish friends

a very happy Passover week.

I will see you MONDAY night.

 

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