MAY 14//GOLD CLOSED UP $19.25 TO $1731.90//SILVER UP 33 CENTS TO $15.83//GOLD OZ STANDING FOR DELIVERY AT THE COMEX: 27.53 TONNES//HSBC CUSTODIAN FOR GLD BORROWS GOLD FROM THE BANK OF ENGLAND INTO THE GLD (NOT SURE IF THIS IS LEGAL?)//WAR OF WORDS BETWEEN CHINA AND THE USA ESCALATE/CORONAVIRUS UPDATE FOR TODAY/ANOTHER 2.7 MILLION AMERICANS RECEIVE UNEMPLOYMENT BENEFITS//FBI SEIZES CELL PHONE AND OTHER RECORDS OF SENATOR BURR/TRUMP ORDERS THE SENATE TO CALL OBAMA TO TESTIFY IN THE “OBAMAGATE” SCANDAL//MORE ON THE FLYNN–JUDGE SULLIVAN FIASCO//MORE SWAMP STORIES FOR YOU TONIGHT//

GOLD:1731.90  UP $19.25   The quote is London spot price

 

 

 

 

 

Silver:$15.83  UP 33 CENTS (London spot closing price)

 

 

 

 

Closing access prices:  London spot

 

 

i)Gold : $1730.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $15.87//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

MAY COMEX GOLD:  XXX

 

JUNE GOLD:  $1738.40  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $6.60.//PREMIUMS WENT UP AGAIN

 

CLOSING SILVER FUTURE MONTH

 

SILVER JUNE COMEX CLOSE;   $16.04…1:30 PM.//SPREAD SPOT/(LONDON) VS FUTURE JUNE:  21 CENTS  PER OZ//PREMIUMS UP AGAIN//HUGE DIFFERENCE

 

 

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 $2800. usa per oz

and silver; $31.00 per oz//

 

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

DO NOT PAY ANY ATTENTION TO WHAT THE CROOKS ARE DOING AT THE COMEX AND LONDON LBMA..PHYSICAL IS THE NAME OF THE GAME AND NOTHING ELSE

 

COMEX DATA

 

 

 

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

today RECEIVING: 33/142

issued 90

EXCHANGE: COMEX
CONTRACT: MAY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,713.900000000 USD
INTENT DATE: 05/13/2020 DELIVERY DATE: 05/15/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 1
118 H MACQUARIE FUT 12
132 C SG AMERICAS 1
323 H HSBC 1
657 C MORGAN STANLEY 2
661 C JP MORGAN 90 33
686 C INTL FCSTONE 12
690 C ABN AMRO 6 61
737 C ADVANTAGE 41 11
800 C MAREX SPEC 5 5
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 142 142
MONTH TO DATE: 7,900

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 142 NOTICE(S) FOR 14200 OZ (0.4416 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  7900 NOTICES FOR 790,000 OZ  (24.572 TONNES)

 

 

SILVER

 

FOR MAY

 

 

8 NOTICE(S) FILED TODAY FOR  40,000  OZ/

total number of notices filed so far this month: 8709 for 43,545,000 oz

 

BITCOIN MORNING QUOTE  $9723 UP  415 

 

BITCOIN AFTERNOON QUOTE.: $9675 UP 531

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $19.25: AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 

NO CHANGE IN GOLD INVENTORY AT THE GLD//

 

GLD: 1,092.14 TONNES OF GOLD//

 

 

WITH SILVER UP  33 CENTS TODAY: AND WITH NO SILVER AROUND

 

NO CHANGES IN SILVER INVENTORY AT THE SLV//

RESTING SLV INVENTORY TONIGHT:

SLV: 423.658  MILLION OZ./

 

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE  BY A FAIR SIZED 508 CONTRACTS FROM 135,987 UP TO 136495 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE FAIR SIZED GAIN IN  OI OCCURRED WITH  OUR 2 CENT GAIN IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS DUE TO STRONG  BANKER SHORT COVERING PLUS A SMALL EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A TINY DECREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY. WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 618 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUMONGOUS 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 SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   MARCH:  00 AND MAY: 0 AND JULY: 110  AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  110 CONTRACTS. WITH THE TRANSFER OF 135 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 110 EFP CONTRACTS TRANSLATES INTO 0.550 MILLION OZ  ACCOMPANYING:

1.THE 2 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.380 MILLION OZ INITIALLY STANDING FOR MAY

 

WEDNESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 2 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY AMOUNT OF SILVER LONGS FROM THEIR POSITIONS. THE GOOD GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A TINY LOSS IN SILVER OZ STANDING FOR MAY,3) SOME BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 706CONTRACTS OR 3.530 MILLION OZON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

 

 

 

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

7672 CONTRACTS (FOR 10 TRADING DAYS TOTAL 7672 CONTRACTS) OR 38.36 MILLION OZ: (AVERAGE PER DAY: 767 CONTRACTS OR 3.835 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 38.36 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 5.48% 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:          1,027.05 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                               95.355 MILLION OZ.  (EX. FOR PHYSICALS BECOMING A LOT LESS)

MAY EFP SO FAR:                   38.36 MILLION OZ

EXCHANGE FOR PHYSICAL ISSUANCE FOR THE PAST 30 DAYS IS A LOT LESS.  NO DOUBT THAT THE COST TO CARRY THESE THINGS HAS EXPLODED AND AS SUCH CANNOT BE DONE AS FREQUENTLY AS BEFORE.

 

RESULT: WE HAD A FAIR SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 508, WITH OUR 2 CENT GAIN IN SILVER PRICING AT THE COMEX ///WEDNESDAY THE CME NOTIFIED US THAT WE HAD A TINY SIZED EFP ISSUANCE OF 110CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A GOOD SIZED OI CONTRACTS ON THE TWO EXCHANGES:  508 CONTRACTS (WITH OUR 2 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 110 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A FAIR SIZED INCREASE OF 508 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 5 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $15.50 // WEDNESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.7050 BILLION OZ TO BE EXACT or 100.7% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 8 NOTICE(S) FOR  40,000 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 4.660 MILLION OZ//MAY  45.380 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 ROSE BY A HUGE SIZED 14,321 CONTRACTS TO 511,060AND CLOSER TO OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE HUGE SIZED GAIN OF COMEX OI OCCURRED WITH OUR CONSIDERABLE  COMEX GAIN IN PRICE  OF $9.65 /// COMEX GOLD TRADING// WEDNESDAY// WE  HAD STRONG BANKER SHORT COVERING , A STRONG SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A  GOOD  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR GAIN IN THE PAPER PRICE OF GOLD.

WE HAD A VOLUME OF 0  4 -GC CONTRACTS//OPEN INTEREST  7

 

WE GAINED A VERY GOOD SIZED 15,914 CONTRACTS  (53.84 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 1593 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 0. MAY: 0, AND JUNE 1593.; AUG 200 AND ALL OTHER MONTHS ZERO//TOTAL: 3169.  The NEW COMEX OI for the gold complex rests at 511,060. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A VERY GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 15,914 CONTRACTS: 14,321 CONTRACTS INCREASED AT THE COMEXAND 1593 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 15,914 CONTRACTS OR 49.49 TONNES. WEDNESDAY, WE HAD A GAIN OF $9.65 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A VERY GOOD SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 53.84 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $9.65).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL  (SEE BELOW).

4 GC VOLUME: 0  // open interest 7 

 

 

END

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A FAIR SIZED INCREASE IN EXCHANGE FOR PHYSICALS  (1593) ACCOMPANYING THE HUGE SIZED GAIN IN COMEX OI  (14,321 OI): TOTAL GAIN IN THE TWO EXCHANGES:  17,310 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)A STRONG INCREASE IN OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT MAY MONTH,  3) ZERO LONG LIQUIDATION; 4) HUGE COMEX OI GAIN,  AND  …ALL OF THIS WAS COUPLED WITH OUR GAIN IN GOLD PRICE TRADING//WEDNESDAY

 

SPREADING OPERATIONS

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO GOLD…..

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 SILVER AS THEY NOW BEGIN TO MORPH INTO GOLD AS WE HEAD TOWARDS THE NEW FRONT MONTH WILL BE JUNE.

 

 

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

 

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

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

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

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

 

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

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 29,142 CONTRACTS OR 2,914,200 oz OR 90.64 TONNES (10 TRADING DAYS AND THUS AVERAGING: 2914 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 10 TRADING DAY(S) IN  TONNES: 90.64TONNES

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

THUS EFP TRANSFERS REPRESENTS 90.64/3550 x 100% TONNES =2.55% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS DISSIPATED THIS MONTHTHE COST TO THE BANKERS TO CARRY THESE CONTRACTS IN LONDON IS BECOMING TOO GREAT FOR THEM.

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   2656.89  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:               243.45  TONNES  (EFP ISSUANCE BECOMING A LOT LESS)

MAY TOTAL EFP ISSUANCE:                     90.64 TONNES

 

 

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

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

1.Today, we had the open interest at the comex, in SILVER, ROSE BY A FAIR SIZED 508 CONTRACTS FROM 135,987 UP TO 136,495 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 GAIN IN COMEX OI WAS DUE TO 1) SOME BANKER SHORT COVERING , 2) A TINY ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A TINY DECREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 110 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: 0 JULY: 110 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 110 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI GAIN  OF 508 CONTRACTS TO THE 110 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  GOOD GAIN OF 0618 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 3.090 MILLION  OZ!!! OCCURRED WITH THE 2 CENT GAIN IN PRICE///

 

 

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 2 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// WEDNESDAY. WE ALSO HAD A VERY TINY SIZED 110 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

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

(report Harvey)

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 27,71 POINTS OR 0.96%  //Hang Sang CLOSED DOWN 350.56 POINTS OR 1.45%   /The Nikkei closed DOWN 352.27 POINTS OR 1.74%//Australia’s all ordinaires CLOSED DOWN 1.74%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1027 /Oil UP TO 26.24 dollars per barrel for WTI and 30.15 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1027 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1271 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST  7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC  : /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%

 

COMEX DATA//AMOUNTS STANDING//VOLUME OF TRADING/INVENTORY MOVEMENTS

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A HUGE SIZED 14,321 CONTRACTS TO 511,060 MOVING CLOSER TO  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 CONSIDERABLE COMEX OI GAIN WAS SET WITH OUR GAIN OF $9.65 IN GOLD PRICING /WEDNESDAY’S COMEX TRADING//). WE ALSO HAD A FAIR EFP ISSUANCE (1593 CONTRACTS),.  THUS WE HAD 1) STRONG BANKER SHORT COVERING AT THE COMEX AND 2)   ZERO  LONG LIQUIDATION AND 3)  ANOTHER INCREASE IN GOLD OZ STANDING AT THE COMEX//MAY DELIVERY MONTH , STRONG COMEX OI GAIN// …  AS WE ENGINEERED A HUGE GAIN ON TWO EXCHANGES OF 15,914 CONTRACTS.

WE AGAIN HAD 0    4 -GC VOLUME//open interest remains at 7

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF APRIL..  THE CME REPORTS THAT THE BANKERS ISSUED A GOOD SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 1593 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 0, MAY: 0  JUNE : 1593 AND 00 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1593 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:  15,914 TOTAL CONTRACTS IN THAT 1593 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A HUGE SIZED 14,321 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A GOOD AMOUNT OF EXCHANGE FOR PHYSICALS WITH A SOME BANKER SHORT COVERING, ACCOMPANYING A STRONG INCREASE IN COMEX GOLD TONNAGE  // STANDING FOR DELIVERY (SEE CALCULATIONS BELOW)….AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A CONSIDERABLE RISE IN PRICE

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE BY $9.65)AND, THEY WERE  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A CONSIDERABLE 49.49 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 15,914 CONTRACTS OR 1,591,400 OZ OR 49.49 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:  511,060 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 51.10 MILLION OZ/32,150 OZ PER TONNE =  1589 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1589/2200 OR 72.24% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 224,206 contracts//volume very low

CONFIRMED COMEX VOL. FOR YESTERDAY269,982 contracts// volumes very low

MAY 14 /2020

MAY GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
19,553.406 oz
BRINKS
LOOMIS
INCL.3 KILOBARS
Deposits to the Dealer Inventory in oz 269,314.994 oz

Brinks

Manfra

 

 

 

Deposits to the Customer Inventory, in oz  

82,979.481

OZ

BRINKS

LOOMIS

 

 

INCL 2250

KILOBARS

No of oz served (contracts) today
142 notice(s)
 14200 OZ
(0.4416 TONNES)
No of oz to be served (notices)
953 contracts
(95300 oz)
2.964 TONNES
Total monthly oz gold served (contracts) so far this month
7900 notices
790,000 OZ
24.572 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 2 deposits into the dealer

I) Into Brinks:  260,411.018 oz

ii) Into Manfra:  8903.976

 

 

total dealer deposits: 269,314.994   oz

total dealer withdrawals: nil oz

we had 2 deposits into the customer account

i) Brinks:  10,641.981 oz
ii) Into Loomis:  72,337.500 oz  (2250 kilobars)

 

 

 

 

 

 

 

 

total deposits: 82,979.481    oz

 

 

we had 2 gold withdrawals from the customer account:

i) Out of Brinks:  19,456.956 oz

ii) Out of Loomis: 96.45 oz 3 kilobars

 

 

 

 

 

 

 

total gold withdrawals; 19,553.406   oz

We had 3  kilobar transactions  +

 

We had 0  4 KC bar volume transactions/7 contracts oi

 

 

 

 

ADJUSTMENTS: 3 //    

First one: dealer to customer

From Brinks:  1543.200 oz  48 kilobars

Next two: customer to dealer

From HSBC  160,690.698 oz
and Scotia:  40.873.470 oz

 

 

 

 

 

 

The front month of May registered a LARGE total of 1095 oi contracts for a GAIN of 98 contracts. We had 281 notices filed upon yesterday so we GAINED 379contracts or an additional 37,900 oz will stand as these guys REFUSED TO morph into London based forwards and thus negated a fiat bonus

The next delivery month after May is the huge delivery month of June.  Here June saw a GAIN OF 1057 contracts UP to 260,296 contracts. July had a loss of 3 OI contracts  and thus 258 contracts  outstanding.  Next comes August another strong delivery month and here the OI ROSE by 11,527 contracts up to 153,048 contracts.

 

 

We had 142 notices filed today for 14,200 oz

 

FOR THE  MAY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 90 notices were issued from their client or customer account. The total of all issuance by all participants equates to 142 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 33 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 MAY /2020. contract month, we take the total number of notices filed so far for the month (7900) x 100 oz , to which we add the difference between the open interest for the front month of  May. (1095 CONTRACTS ) minus the number of notices served upon today (182 x 100 oz per contract) equals 885,300 OZ OR 27.53 TONNES) the number of ounces standing in this  non active month of May

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

No of notices served (7900)x 100 oz + 1095 OI) for the front month minus the number of notices served upon today (142) x 100 oz which equals 885,300 oz standing OR 27.53 TONNES in this non active delivery month. This is  a record amount for gold standing for any May delivery month or any non active delivery month.

We gained 379 contracts or an additional 37900 oz will seek out metal on this side of the pond as they refused to  morph into London based forwards.

 

NEW PLEDGED GOLD:  BRINKS

3027.500 OZ  REMOVED TO THE PLEDGED ACCOUNT JAN 10.2020/Brinks

144,088.952 oz NOW PLEDGED  JAN 21.2020/HSBC  5.4807 TONNES

322,144.443 oz PLEDGED  MARCH 2020  JPMORGAN:  10.020 TONNES

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

19,290.600 oz Pledged May 8/2020   INT DELAWARE:  .600 TONNES

17,853.197  oz pledged May 8.2020   MANFRA:            .553 TONNES

 

TOTAL PLEDGED GOLD NOW IN EFFECT:  545,925.500  OZ OR 16.980  TONNES

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 211.01 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 27.53 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  7,330,136.980 oz or 227.99  tonnes
which  includes the following:
a) pledged gold held at HSBC   which cannot settled upon   144,088.952 oz x ( 4.4817 TONNES)//
b) pledged gold held at JPMorgan (added March 2020) which cannot be settled upon:  322,144.443 oz (or 10.0200 tonnes)
total pledged gold:
c)  pledged gold at Scotia: 1.3234 tonnes or 42,548.308 oz which cannot be settled  (1.3234 tonnes)
d) pledged gold at Manfra:  17,853.197 oz  which cannot be settled:   (.5553 tonnes)
e) pledged gold at int.Del.    19,290.600 oz  which cannot be settled:   (.600 tonnes)
total weight of pledged:  545,925.500 oz or 16.905 tonnes
thus:
registered gold that can be used to settle upon: 6,784,211.4  (211.01 tonnes)
true registered gold  (total registered – pledged tonnes  6,784,211.4 (211.01 tonnes)
total eligible gold:  15,948,314.132 oz (496.059 tonnes)

total registered, pledged  and eligible (customer) gold;   23,278,451.112 oz 724.05 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   128.632 tonnes

total gold net of 4 GC:  595.42 tonnes

 

end

 

I have compiled  data with respect to registered (or dealer) gold taken on first day notice for each of the past 24 months

The data begins on first day notice for the May month taken on the last day of April 2018. and it continues to present day.  Thus 24 data entry points.

 

I then took, how many deliveries were recorded by the CME for each and every month.  I also included for reference the price of gold on first day notice.

 

The first graph is a logarithmic  graph and the second graph, linear.

You can see the huge explosion of registered gold at the comex along with deliveries.  Gold owners are very clear people.  They would know full well that

the gold at the comex is unallocated and that they would not be stupid enough to keep their gold at the comex especially in the registered category once deliveries are asked upon. If physical gold was present it would be have removed from the comex… It shows there is no gold at the comex.  They are just trading in sticky paper.

 

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

 

END

MAY 14/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A FAIR SIZED 508 CONTRACTS FROM 135,987 UP TO 136,495(AND 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) . THE GOOD OI COMEX GAIN TODAY OCCURRED WITH OUR 2 CENT GAIN IN PRICING//WEDNESDAY. WE GAINED A TOTAL OF 706 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A TINY DECREASE IN SILVER OZ STANDING AT THE COMEX, 3)  SOME BANKER SHORT COVERING , 4) ZERO LONG LIQUIDATION,5) GOOD COMEX GAIN IN OI AND ALL OF THIS OCCURRED WITH OUR SMALL 2 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MAY

THE FRONT DELIVERY OF MAY SAW  375 OPEN INTEREST CONTRACTS STANDING  AND THUS WE HAD A LOSS OF 136 CONTRACTS.  We had 132 notices filed yesterday so we LOST 4 contracts or an additional 20,000 oz will NOT stand at the comex as these guys  morphed into London based forwards and thus they accepted  a fiat bonus for their efforts.. It looks like there is no silver over here and thus they must travel to London to get the stuff.

 

AFTER MAY WE HAVE THE NON ACTIVE MONTH OF JUNE.  HERE JUNE SAW A LOSS OF 9 CONTRACTS RESTING AT 457.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI GAINED 49 CONTRACTS UP TO 103,160 CONTRACTS

 

 

We, today, had  8 notice(s) FILED  for 40,000 OZ for the APRIL, 2019 COMEX contract for silver

 

MAY 14/2020

MAY SILVER COMEX CONTRACT MONTH

Silver Ounces
Withdrawals from Dealers Inventory 5052.263 oz

CNT

Withdrawals from Customer Inventory
 1,145,130.463 oz
CNT
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
993,801.361 oz
HSBC
LOOMIS
Scotia
No of oz served today (contracts)
8
CONTRACT(S)
(40,000 OZ)
No of oz to be served (notices)
367 contracts
 1,835,000 oz)
Total monthly oz silver served (contracts)  8709 contracts

43,545,000 oz)

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

 

 We had 0 deposit into the dealer:

total dealer deposits: nil oz

i) We had one dealer withdrawal of 5052.263 oz from CNT

total dealer withdrawals: 5052.263 oz

i)we had 3 deposits into the customer account

into JPMorgan:   0

ii)into HSBC: 723.717.260 oz
iii) Into Loomis:  180,769.751 oz

iv) Into Scotia: 89,314.350 oz

 

*** 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 51.22% of all official comex silver. (160.819 million/314.220 million

 

total customer deposits today: 993,801.361    oz

we had 2 withdrawals:

i) Out of Brinks: 515,646.236  oz

ii) Out of CNT:  629,484.227 oz

 

total withdrawals; 1,145,130.463     oz

We had 1 adjustments   customer to dealer

Out of Brinks:  5245.240

 

 

total dealer silver: 90.608 million

total dealer + customer silver:  314.220 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the MAY 2020. contract month is represented by 8 contract(s) FOR 40,000 oz

 

To calculate the number of silver ounces that will stand for delivery in MAY we take the total number of notices filed for the month so far at 8709 x 5,000 oz = 43,545,000 oz to which we add the difference between the open interest for the front month of MAY.(375) and the number of notices served upon today 8 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 8709 (notices served so far) x 5000 oz + OI for front month of MAY (375)- number of notices served upon today (8) x 5000 oz of silver standing for the MAY contract month.equals 45,380,000 oz.

We LOST 4 or an additional 20,000 oz will seek out metal on the London side of the pond as they ACCEPTED a London based forward contract..

 

TODAY’S ESTIMATED SILVER VOLUME: 49,042 CONTRACTS //volume very low

 

 

FOR YESTERDAY: 48,405 CONTRACTS..,CONFIRMED VOLUME//extremely low volume

 

 

YESTERDAY’S CONFIRMED VOLUME OF 48,405  CONTRACTS EQUATES to 242 million  OZ 34.5% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  FALLS TO- 1.12% ((MAY 14/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -0.05% to NAV:   (MAY 14/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1.12%

(courtesy Sprott/GATA

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

NAV 15.95 TRADING 15.87///NEGATIVE 0.73

END

 

 

And now the Gold inventory at the GLD/

MAY 14//WITH GOLD UP $19.25 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1092.14 TONNES

MAY 13//WITH GOLD UP $9.05 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 11.07 TONNES/INVENTORY RESTS AT 1092.14 TONNES

MAY 12//WITH GOLD UP $6.60 TODAY; A SMALL CHANGES IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL OF .58 TONNES FROM THE GLD///INVENTORY RESTS AT 1081.07 TONNES

MAY 11/WITH GOLD DOWN $12.65 TODAY: NO CHANGES IN GOLD INVENTORY: //INVENTORY RESTS AT 1081.65 TONES..

MAY 8/WITH GOLD DOWN $7.00 TODAY; A BIG CHANGE IN GOLD INVENTORY: A PAPER ADDITION OF 5.85 TONNES/INVENTORY RESTS AT 1081.65 TONNES

MAY 7/WITH GOLD UP $29.65 TODAY : A SMALL CHANGE IN GOLD INVENTORY AT THE GLD//A PAPER ADDITION OF .41 TONNES/INVENTORY RESTS AT 1075.80 TONNES

MAY 6//WITH GOLD DOWN $17.00 TODAY/ A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A PAPER ADDITION OF 3.68 TONNES/INVENTORY RESTS AT 1075.39 TONES

MAY 5/WITH GOLD DOWN $1.65 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER ADDITION OF 3.81 TONNES//INVENTORY RESTS AT 1071.71 TONNES

MAY 4//WITH GOLD UP $12.00 TODAY//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A MASSIVE PAPER DEPOSIT OF 11.4 TONNES INTO THE GLD////GOLD INVENTORY RESTS AT 1067.90 TONNES

MAY 1/WITH GOLD UP $8.45 NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1056.50 TONNES

APRIL 30/WITH GOLD DOWN $15.95 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1056.50 TONNES

APRIL 29/WITH  GOLD DOWN $7.65/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 8.19 TONNES OF GOLD INTO THE GLD////INVENTORY REST AT 1056.50 TONNES//

APRIL 28/WITH GOLD DOWN $4.50//NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1048.31 TONNES

APRIL 27/WITH GOLD DOWN $12.75//A HUGE  CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 5.85 TONNES INTO THE GLD////INVENTORY RESTS TONIGHT AT 1048.31 TONNES

APRIL 24/WITH GOLD DOWN $4.90 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS TONIGHT AT 1042.46 TONNES

APRIL 23/WITH GOLD UP $10.00 TODAY:  NO CHANGES IN GOLD INVENTORY AT THE GLD///INVENTORY RESTS TONIGHT AT 1042.46 TONNES

APRIL 22/WITH GOLD UP $40.75 TODAY:; TWO HUGE CHANGES IN GOLD INVENTORY AT THE GLD//A)A MONSTROUS  3.8 PAPER TONNES WERE ADDED TO THE GLD INVENTORY AND B) ANOTHER HUGE 9.07 TONNES OF PAPER GOLD ADDED LATE IN THE DAY//INVENTORY RESTS AT 1042.46 TONNES

APRIL 21/WITH GOLD DOWN $21.60 TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A MONSTROUS ADDITION OF 7.9 PAPER TONNES TO THE GLD INVENTORY//INVENTORY RESTS AT 1029.59 TONNES

APRIL 20//WITH GOLD UP $10.00 TODAY; NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1021.69 TONNES

APRIL 17/WITH GOLD DOWN $27.80 TODAY: SURPRISINGLY NO CHANGES IN GOLD INVENTORY AT THE GLD///INVENTORY RESTS AT 1021.69 TONNES TONNES..THE STRING OF 12 STRAIGHT STRONG DEPOSITS ENDS..

APRIL 16/WITH GOLD DOWN $4.50 TODAY: ANOTHER HUGE CHANGE IN GOLD INVENTORY: A STRONG DEPOSIT OF 4.10 TONNES WAS ADDED TO THE GLD INVENTORY//INVENTORY RESTS AT 1021.69 TONNES/12TH STRAIGHT STRONG DEPOSIT

APRIL 15//WITH GOLD DOWN $19.10 TODAY; ANOTHER HUGE CHANGE IN GOLD INVENTORY; A STRONG 7.89 TONNES WAS ADDED TO THE GLD INVENTORY//INVENTORY RESTS AT 1117.59 TONNES.//11TH STRAIGHT STRONG DEPOSIT

APRIL 14/WITH GOLD UP $23.55 TODAY: ANOTHER HUGE CHANGE IN GOLD INVENTORY: A STRONG 15.51 TONNES WAS ADDED TO THE GLD INVENTORY/INVENTORY RESTS AT 1009.70 TONNES//THIS IS THE 10TH STRAIGHT STRONG DEPOSIT//THIS IS A FRAUDULENT VEHICLE..THEY HAVE NO PHYSICAL GOLD IN THE TRUST..

APRIL 13//WITH GOLD UP $27.65 TODAY: ANOTHER HUGE CHANGE IN GOLD INVENTORY: A STRONG 5.36 TONNES WAS ADDED TO THE GLD//INVENTORY RESTS AT 994.19 TONNES

APRIL 9 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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at

MAY 14/ GLD INVENTORY 1092.14 tonnes*

LAST;  820 TRADING DAYS:   +145.84 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 720 TRADING DAYS://+320.98  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

MAY 14//WITH SILVER UP 33 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV.//INVENTORY RESTS AT 423.65 MILLION OZ

MAY 13/WITH SILVER UP 2 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 2.79 MILLION OZ INTO THE SLV..//INVENTORY RESTS AT 423.65 MILLION OZ//


MAY 12/WITH SILVER UP 5 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 3.076 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 420.861 MILLION OZ//

MAY 11.WITH SILVER DOWN 5 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 417.785 MILLION OZ//

MAY 8/WITH SILVER UP 11 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MONSTER DEPOSIT OF 4.661 MILLION OZ OF SILVER INTO THE SLV..///INVENTORY RESTS AT 417.785 MILLION OZ//

MAY 7/WITH SILVER UP 45 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 413.124 MILLION OZ//

MAY 6/WITH SILVER DOWN 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 413.124 MILLION OZ//

MAY 5/WITH SILVER UP 17 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 413.124 MILLION OZ///

MAY 4//WITH SILVER DOWN 5 CENTS TODAY:2 HUGE PAPER CHANGES IN SILVER INVENTORY AT THE SLV.i).A  LARGE 1.399 MILLION OZ OF PAPER SILVER REMOVED FROM THE SLV//..//INVENTORY RESTS AT 411.427 MILLION OZ and ii) A LARGE 1.647 MILLION OZ OF PAPER SILVER ADDED TO THE SLV//  INVENTORY RESTS AT 413.124 MILLION OZ//


MAY 1/WITH SILVER FLAT IN PRICE: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 412.826 MILLION OZ///

APRIL 30/WITH SILVER DOWN 26 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 412.826 MILLION OZ//

APRIL 29/WITH SILVER DOWN ONE CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 412.826 MILLION OZ//

APRIL 28 /WITH SILVER DOWN 2 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 412.826 MILLION OZ..

APRIL 27/WITH SILVER UP ONE CENT TODAY: TWO SMALL  CHANGE IN SILVER INVENTORY AT THE SLV: a) A WITHDRAWAL OF 373,000 OZ FORM THE SLV// b) A SECOND WITHDRAWAL OF 466,000: ////INVENTORY RESTS AT 412.826 MILLION OZ//

APRIL 24//WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 413.665 MILLION OZ

APRIL 23/WITH SILVER UP 0 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.891 MILLION OZ INTO THE SLV/////INVENTORY RESTS AT 413.665 MILLION OZ//

APRIL 22/WITH SILVER UP 42 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY: A PAPER WITHDRAWAL OF 1.865 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 410.774 MILLION OZ//

APRIL 21//WITH SILVER DOWN 60 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER ADDITION OF 1.398 MILLION OZ INTO THE SLV INVENTORY//INVENTORY RESTS AT 412.639 MILLION OZ//

APRIL 20//WITH SILVER UP 16 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.797 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 414.038 MILLION OZ//

APRIL 17/WITH SILVER DOWN 24 CENTS TODAY; A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.3999 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 415.437 MILLION OZ//

APRIL 16/WITH SILVER UP 5 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV////INVENTORY RESTS AT 415.437 MILLION OZ//

APRIL 15//WITH SILVER DOWN 45 CENTS TODAY: TWO HUGE CHANGES IN SILVER INVENTORY AT THE SLV TWO HUGE DEPOSITS: A DEPOSIT OF 1.679 MILLION OZ AND ANOTHER 5.222 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 415.437 MILLION OZ//

APRIL 14./WITH SILVER UP 51 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A MASSIVE PAPER DEPOSIT OF XXX MILLION OZ//INVENTORY RESTS AT 408.536 MILLION OZ//

APRIL 13//WITH SILVER DOWN 29 CENTS TODAY;  A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MASSIVE PAPER DEPOSIT OF 6.155 MILLION OZ////INVENTORY RESTS AT 408.536 MILLION OZ//

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.

 

 

MAY 13.2020:

SLV INVENTORY RESTS TONIGHT AT

423.65 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.25/ and libor 6 month duration 0.68

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

G0LD LENDING RATE: -1.57%

NEGATIVE GOLD LEASING RATES//GOLD SCARCITY AND CENTRAL BANKS CALLING IN ALL OF THEIR GOLD LEASES

 

XXXXXXXX

12 Month MM GOFO
+ 1.84%

LIBOR FOR 12 MONTH DURATION: 0.77

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.07

NEGATIVE GOLD LEASING RATES//GOLD SCARCITY AND CENTRAL BANKS CALLING IN ALL OF THEIR GOLD LEASES

 

end

 

 

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

Irish House Prices To Fall 12% to 20% This Year and Will Fall Until “Signs of an Economic Turnaround Emerge”

Home price decline will be poorest performance in the market since 2012

Source: Globalpropertyguide

via Irish Times

KBC Group sees house prices in the Republic falling by 12 per cent this year, as the economy deals with the coronavirus crisis, the Belgian banking giant signaled on Thursday.

The figure is described as a “base case” in an analyst presentation prepared by KBC Group for analysts as it seeks to map out potential bad loan losses across its markets.

It would mark the first decline in Irish residential values since 2012.

House prices are expected to rally by 8 per cent next year, according to KBC Group slides. However, a pessimistic scenario could see home valuations plunging by 20 per cent this year and a further 5 per cent in 2021, it said.

“Irish house prices and transactions increased at a modest pace in early 2020. However, property market activity is likely to remain weak until signs of a broader economic turnaround emerge,” it said.

“While the Irish economy began 2020 with substantial positive momentum, the Covid-19 pandemic is likely to have a large negative impact on activity reflecting the effects of a significant health-related shutdown on domestic demand as well as weaker export markets,” KBC said.

“In common with other countries, the Irish jobs market has suffered a major shock as a result of the pandemic. Although government measures have supported incomes and sought to maintain workers links with affected companies, unemployment could end the year around twice the 5 per cent rate seen at the start of 2020.”

Full article via Irish Times

Editors Note: Many property markets around the world were very overvalued prior to the coming financial and economic crisis. Ireland’s residential market had recovered and was edging towards the massively overvalued levels seen at the top of the market.

Dublin residential property prices were showing signs of overvaluation again having risen 93% from their 2012 lows. In the rest of Ireland,
residential property prices had risen 81.5% from the bottom of the market in May 2013. Housing and apartments had again become completely unaffordable to hardworking middle and working class people.

Both residential and commercial, retail and office, property markets globally are vulnerable now given the sharp global recession or depression that is coming. Incomes have fallen and will continue to fall sharply. Rents are falling and will continue to fall sharply. Banks will be more hesitant to lend to first time buyers and indeed to investors. Another banking crisis is likely and one need only look at the share prices of Irish banks and indeed of many international banks such as Deutsche Bank to see this. Therefore, for a period of time banks may stop lending again.

Price falls of up to 50%, as was seen in Ireland in the 2007 to 2012 period, are to be expected in the more overvalued markets.

As ever, we are optimists but it is important to consider the facts and the real challenges we will face in the coming months. Let’s hope for the best but be prepared for less positive outcomes.

Receive Our Award Winning Market Updates In Your Inbox – Sign Up Here

Gold in USD – 3 Days

NEWS and COMMENTARY

Gold inches higher on U.S. stimulus talks; jobs data awaited

HSBC Lost About $200 Million in One Day on Gold Market Turmoil

European markets slide after warning from the US Fed

Hedge-fund titan David Tepper says stock market is the ‘second-most overvalued’ he’s ever seen

BOJ’s Kuroda says no need to deepen negative rates now

Gold On the Verge of an Upside Breakout

Watch and Read Other Key Points From Interview Here

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

13-May-20 1699.85 1708.40, 1383.85 1394.74 & 1568.11 1573.09
12-May-20 1703.45 1702.40, 1381.84 1379.80 & 1574.50 1565.87
11-May-20 1698.80 1702.75, 1375.35 1378.55 & 1570.20 1571.81
07-May-20 1688.65 1704.05, 1366.29 1387.78 & 1565.21 1582.38
06-May-20 1698.90 1691.50, 1373.56 1366.73 & 1574.71 1564.13
05-May-20 1696.30 1699.55, 1363.83 1363.72 & 1566.36 1562.91
04-May-20 1703.70 1709.10, 1371.14 1374.63 & 1558.72 1563.83
01-May-20 1673.05 1686.25, 1332.08 1347.15 & 1523.14 1536.68

30-Apr-20 1716.75 1702.75, 1373.92 1361.69 & 1577.86 1568.91
29-Apr-20 1706.00 1703.35, 1371.97 1368.64 & 1569.69 1568.10
28-Apr-20 1708.10 1691.55, 1367.68 1357.98 & 1571.11 1559.27
27-Apr-20 1717.25 1714.95, 1381.36 1380.19 & 1582.96 1581.18
24-Apr-20 1727.25 1715.90, 1401.32 1391.59 & 1604.96 1589.09
23-Apr-20 1727.55 1736.25, 1399.49 1405.84 & 1601.78 1608.64
22-Apr-20 1702.65 1710.55, 1377.95 1388.28 & 1567.46 1576.44

 

NOTE: Inbound deliveries to our Loomis and Brink’s vaults in Zurich, Singapore, London and Dublin have resumed and to ensure liquidity, investors can move their assets to our vaults from safe deposit box companies, bullion stored with banks or digital gold platforms or ETFs.

We have resumed buying non stored bullion again and are buying gold and silver coins and bars at attractive premiums. Please email us for shipping instructions to vaults: support@goldcore.com

Please share our market updates with family, friends and colleagues in order to protect their financial well-being

Be well !

Mark O’Byrne
Executive Directo

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Deeply troubling..if is where GLD is getting its gold…it borrows it from the Bank of England?

(Ronan Manly)

Ronan Manly: Amid London gold turmoil, HSBC gets gold for GLD from the Bank of England

 Section: 

8:34p ET Wednesday, May 13, 2020

Dear Friend of GATA and Gold:

As the gold market began buckling in March and April under the pressure of increased demand and the worldwide virus epidemic, Bullion Star researcher Ronan Manly discloses today, the exchange-traded fund GLD, managed by bullion bank HSBC, began stocking itself with what appears to have been borrowed central bank gold vaulted at the Bank of England.

These transactions, Manly writes, are acknowledged deep in GLD’s quarterly report to the U.S. Securities and Exchange Commission, filed May 8.

… 

Manly adds that these transactions probably created another double-counting of a substantial amount of gold in the world financial system — gold claimed by central banks even as it was being claimed by GLD as well.

According to Manly, the GLD filing with the SEC implies:

“A) There isn’t enough gold in the HSBC vault in London to fulfill SPDR Gold Trust basket creation requests from GLD Authorized Participants.

“B That gold that is ultimately borrowed central bank gold at the Bank of England is being used as a source of GLD gold holdings.

“c) That there are physical gold float shortages in the London physical gold market as well as liquidity problems of London Bullion Market Association market makers in the London paper gold market.”

Of course while these transactions were being undertaken, the LBMA was assuring the world that all was well with the gold market and any problems were just challenges of transportation logistics caused by the epidemic.

Mainstream financial news organizations obediently parroted the LBMA’s assurances, as usual declining to ask any critical questions.

Manly asks: Do these gold shortages and double-countings in London continue? Is GLD still borrowing central bank gold from the Bank of England?

To find out, call the LBMA and the Bank of England if you want, but you’ll probably do better just to watch for more footnotes in HSBC’s SEC filings — that is, if HSBC and GLD don’t blow up in force majeure first.

Manly’s report is headlined “Amid London Gold Turmoil, HSBC Taps Bank of England for GLD Gold Bars” and it’s posted at Bullion Star here:

https://www.bullionstar.com/blogs/ronan-manly/amid-london-gold-turmoil-h…

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

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

Your early 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: 7.1027/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1271   /shanghai bourse CLOSED DOWN 27.71 POINTS OR 0.96%

HANG SANG CLOSED DOWN 350.56 POINTS OR 1.45%

 

2. Nikkei closed DOWN 352.27 POINTS OR 1.74%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 100.50/Euro FALLS TO 1.0784

3b Japan 10 year bond yield: FALLS TO. –.01/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.07/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 26/24 and Brent: 30.15

3f Gold UP/JAPANESE Yen DOWN 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 -.53%/Italian 10 yr bond yield UP to 1.81% /SPAIN 10 YR BOND YIELD DOWN TO 0.79%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.34: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.03

3k Gold at $1715.90 silver at: 15.51   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 30/100 in roubles/dollar) 74,24

3m oil into the 26 dollar handle for WTI and 30 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 107.07 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 .9748 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0511 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 0.53%

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 0.61% early this morning. Thirty year rate at 1.29%

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

6.  TURKISH LIRA:  UP  TO 6.9683..

“The Bear Market Rally Is Over”: Futures Slide As Dollar Surges, Lifting Bonds

S&P futures slumped lower after Novartis CEO said a coronavirus vaccine may not be available until 2H 2021 and European stocks declined on Thursday as investors worried that the current economic downturn maybe be here for longer than initially presumed after Fed Chair Jerome Powell warned of unprecedented risks from the coronavirus, while waiting the latest American jobless data after another steep sell-off on Wall Street.

“Views are beginning to firm that the 2020 bear-market rally may have run its course,” said Perpetual Investment Management head of investment strategy Matthew Sherwood.

After two sessions of sharp declines, the three main US stock indexes slumped for a third day following a report that President Donald Trump is “looking at” Chinese companies that trade on American exchanges, and are now headed for their worst week since mid-March, as hopes of a quick economic recovery were dashed following sobering comments from Federal Reserve Chairman Jerome Powell and leading U.S. infectious disease expert Anthony Fauci.

Among early movers, Cisco Systems Inc rose 2.5% premarket after beating quarterly revenue and profit estimates, as lockdowns globally boosted demand for its remote-work tools and networking equipment.  Norwegian Cruise Line Holdings, the S&P’s worst performer since the sell-off began in February, rose in the premarket after saying there continues to be demand for cruise vacations, particularly beginning in the fourth quarter. The earnings season is in its final stretch with 448 S&P 500 companies having reported so far. On average, first-quarter earnings are expected to fall 12.2%, according to Refinitiv data.

The Stoxx Europe 600 Index fell, with insurance and auto shares among the biggest laggards. The Stoxx Europe 600 Basic Resources Index fell as much as 2.1%, as tensions between the U.S. and China flare up, while Fed warns about economic risk and Goldman Sachs sees iron ore falling. The big  four diversified miners all fell: Rio Tinto -1.2%, BHP -1.2%, Glencore -3.2%, Anglo American -3.5%.

Earlier in the session, Asian stocks fell, led by energy and finance, with Japan and Australia suffering some of the steepest falls after rising in the last session. The Topix declined 1.9%, with Sawafuji Elec and eRex falling the most. The Shanghai Composite Index retreated 1%, with Chahua Modern Housewares and Sailun Group posting the biggest slides

Emerging-market stocks and currencies weakened after Powell warned of unprecedented risks to the economy if policy makers fail to address the fallout from the coronavirus. MSCI’s measure of developing-nation equities resumed losses after a day of stability, while almost all currencies weakened against the dollar. Mexico’s central bank was forecast to cut its key rate by 50bps to the lowest since 2016 later in the day. Investors are assessing whether financial markets are adequately pricing the economic reality of a pandemic that’s shut down factories and prompted a surge in unemployment across the globe. The extra yield they demand to hold developing-nation debt instead of Treasuries climbed. “The chairman hit a nerve,” Commerzbank strategists including Frankfurt-based Ulrich Leuchtmann said in a note. “His speech provided a reason to allow already existing fears to take their course.”

The rally in global equities from March lows – which was driven by hopes of a pick up in business activity as several U.S. states eased lockdowns put in place to curb the spread of the coronavirus – is showing further signs of stalling this week amid comments from some big-name investors such as Druckenmiller and Tepper that stocks have run up too far amid the economic uncertainty. Fed Chairman Jerome Powell suggested that additional fiscal support could be needed to combat the effects of the pandemic. In that vein, Republicans rejected a $3 trillion stimulus measure drafted by House Democrats, but the draft plan has the seeds for an eventual, smaller compromise.

In FX, the biggest overnight mover was the dollar, which broke out of a descending triangle, jumping to the highest level since April 26. The Bloomberg Dollar Spot Index strengthened for a fourth consecutive session, rising alongside the yen, as souring market sentiment kept haven currencies in demand. The greenback’s advance continued against most of its G-10 peers amid risk-off moves in Asia and Europe after Federal Reserve Chair Jerome Powell warned of economic challenges from the coronavirus pandemic, and took negative rates off the table. “The downbeat message from Powell has contributed to more risk off trading conditions overnight which is also helping to support the U.S. dollar,” said Lee Hardman, currency analyst at MUFG.

Yesterday we explained why the next dollar surge may be only just starting as an avalanche of treasury issuance drains roughly $1 trillion in market liquidity.

The yen and Canadian dollar led gains among Group-of-10 currencies, while the euro hovered after slipping below 1.08 per dollar. The Swedish krona led losses and the Australian dollar weakened a fourth day against the greenback after the nation’s employment plunged by a record in April. The pound fell to a one-month low on weak risk sentiment and speculation over more central bank easing.

In rates, treasuries are bull-flattening for a third straight session, with long-end yields dropping back under 1.30% following solid demand for Wednesday’s 30-year bond auction. Treasuries also benefit from weakness in stocks after Novartis CEO said a coronavirus vaccine may not be available until 2H 2021. Treasury yields lower by more than 6bp at long end with 2s10s and 5s30s both flatter by more than 3bp; 10-year yield drops 4bps to 0.615%. European bonds mostly gained though underperformed Treasuries, amid fears of a lasting downturn. German Bunds are cheaper by 3bp vs. Treasuries, gilts wider by almost 4bp.

In commodities, WTI and Brent front-month futures remain on the front foot after a somewhat choppy APAC trading session, with fresh modest impetus across the complex derived from the latest IEA oil market report – which proved more optimistic vs. its OPEC and EIA counterparts. The agency cut their 2020 demand growth forecast by 690k BPD (vs OPEC’s 2.23mln BPD and EIA’s 2.9mln BPD) while stating that the decline in H1 oil demand is not as steep as originally feared – with an improvement in the balance seen amid deep production curbs and reopening economies, however, IEA Chief Birol stated that he does not believe the recently announced cuts (i.e Saudi, UAE, and Kuwaiti over-compliance) are enough to balance the markets.

To the day ahead now, the data highlight today will likely be the weekly US initial jobless claims. Meanwhile, there’s also be the final German CPI reading for April, Japan’s machine tool orders for April, the Italian trade balance for March and Canadian manufacturing sales for March. From central banks, Bank of England Governor Bailey will be speaking on a webinar, and we’ll also hear from the Fed’s Kashkari, Bostic and Kaplan, along with the ECB’s Vice President de Guindos. Finally, the ECB will be publishing their Economic Bulletin, while the Mexican central bank will be deciding on rates.

Market Snapshot

  • S&P 500 futures little changed at 2,813.50
  • STOXX Europe 600 down 1.7% to 328.36
  • MXAP down 1.4% to 144.70
  • MXAPJ down 1.3% to 465.75
  • Nikkei down 1.7% to 19,914.78
  • Topix down 1.9% to 1,446.55
  • Hang Seng Index down 1.5% to 23,829.74
  • Shanghai Composite down 1% to 2,870.34
  • Sensex down 2.5% to 31,205.67
  • Australia S&P/ASX 200 down 1.7% to 5,328.72
  • Kospi down 0.8% to 1,924.96
  • German 10Y yield fell 1.4 bps to -0.544%
  • Euro down 0.03% to $1.0815
  • Italian 10Y yield fell 8.7 bps to 1.628%
  • Spanish 10Y yield fell 1.7 bps to 0.718%
  • Brent futures up 2.6% to $29.96/bbl
  • Gold spot little changed at $1,716.54
  • U.S. Dollar Index little changed at 100.23

Top Overnight News

  • Germany recorded the highest number of new coronavirus cases in five days as the government gradually lifts restrictions on daily life
  • The coronavirus is threatening to turn the long- lasting fault line cleaving Europe between its richer north and poorer south into an economic chasm putting its currency at risk
  • The Bundesbank is talking to German authorities amid a stand-off over a controversial court ruling that questions the European Central Bank’s bond-buying program, ECB Executive Board member Fabio Panetta said
  • A change in the way Bank of Japan Governor Haruhiko Kuroda talks about the possibility of cutting the bank’s negative interest rate may suggest the option is now further down on the list of his favored tools
  • Activity is continuing to pick up in funding markets on both sides of the Atlantic, though in Europe pricing remains a sticking point as rates have advanced in high-grade commercial paper
  • The outlook for global oil markets has “improved somewhat,” with demand a little stronger than expected and supply reined in by a brutal price crash, the International Energy Agency said
  • Roche Holding AG’s coronavirus antibody test was cleared by a U.K. health authority, a boost to Prime Minister Boris Johnson as he seeks ways to gradually relax lockdown restrictions
  • While the rest of the world has sheltered at home, Swedes have continued eating in restaurants, shopping, and going to work. The Swedish model trades more disease for less economic damage

Asian stocks traded negatively with global risk appetite dampened by ongoing US-China tensions and ongoing questions about reopening efforts. ASX 200 (-1.7%) was led lower by energy and financials after similar underperformance of the sectors stateside and with participants digesting alarming employment data that showed a near-600k decline in jobs. Nikkei 225 (-1.7%) remained under the influence of a firmer currency and with earnings releases also providing a catalyst for price action including Sony. Elsewhere, Hang Seng (-1.5%) and Shanghai Comp. (-1.0%) were both downbeat as US-China tensions turned up a notch after source reports noted China will soon impose countermeasures on those seeking COVID-19 damages from China and after US President Trump extended the executive order protecting the US supply chain from Huawei and ZTE for an additional year, while the PBoC also disappointed expectations for an MLF announcement and associated 20bps rate cut which both failed to materialize. Finally, 10yr JGBs were initially higher as prices benefitted from the risk aversion and gains in T-notes, but with upside later reversed after a mixed 30yr auction which resulted in lower accepted prices.

Top Asian News

  • New Zealand Projects Surging Debt on Historic Fiscal Stimulus
  • Russia Outbreak Spreads to Neighbor With Jump in Mongolian Cases
  • Australian Equities Drop as Employment Slumps by Most on Record
  • Kuroda Hints Cutting Rates May Now Rank Lower in BOJ Toolkit

Europe has taken the downbeat lead from the APAC session (Euro Stoxx 50 -1.9%) as rising tensions between US and China continue to weigh on sentiment, whilst Fed Chair Powell’s heavy downplaying of NIRP does not aid the equity complex. Major bouses see broad-based losses with no real stand-out across major indices. Sectors reside firmly in the red across the board with steeper losses seen in cyclicals (ex-telecoms). The sector breakdown sees Auto and Parts alongside Travel & Leisure as the laggards. Telecommunications reside at the top of the list – losses in the sector are cushioned by earrings from Deutsche Telekom (+0.6%) who topped Adj. EBITDA estimates, confirmed guidance, and said the outbreak is having a limited impact on Co’s financials. Sticking with German earnings, Merck (+1.1%) remains underpinned after topping estimates on all Q1 metrics, whilst guidance printed in-line with analyst estimates. Other earnings-related DAX constituents include: Wirecard (-0.7%), RWE (-0.7%). Elsewhere, Fiat Chrysler (-1.7%) and PSA (-1.1%) are pressured after simultaneously pulling FY20 dividend; the dividend was a component of their merger. Finally, Roche (+0.2%) remains afloat after its COVID-19 antibody test had been approved by Public Health England. Co. is in talks with the NHS and the UK government regarding a phased roll-out of tests as soon as possible. UK government is in negotiations to purchase millions of kits.

Top European News

  • Nosediving German Economy Isn’t Just Suffering Amid Virus
  • BMW Faces Shareholder Scrutiny Over $1.8 Billion Dividend
  • U.K. Virus Fight Boosted by Clearance of Roche Antibody Test
  • U.K.’s Housing Revival Plan Seen Unlocking $100 Billion of Deals

In FX, we start with the AUD/NZD: Not quite role reversal, but the pecking order has changed down under to an extent following a near 600k plunge in Aussie payrolls, a marked rise in the participation rate and predictions for more pronounced jobs market pain to come. Aud/Usd has duly pulled back further from 0.6500+ peaks to pivot 0.6450 and Aud/Nzd is losing momentum below 1.0800 even though the Kiwi remains under pressure post-RBNZ on heightened NIRP expectations and the NZ Government boosting its COVID-19 recovery fund to the tune of 20% of GDP. Indeed, Nzd/Usd has now lost grip of the 0.6000 handle ahead of April’s manufacturing PMI.

  • JPY – The Yen continues to buck the overall trend and outperform an otherwise strong Dollar, with the DXY looking more comfortable above 100.000 within a 100.420-140 range, as risk-off positioning intensifies and keeps Usd/Jpy capped on advances through 107.00. No adverse reaction to more dovish rhetoric from BoJ Governor Kuroda balanced with the unflinching belief that Japan will not return to deflation and it is not necessary to ease benchmark rates further even though recession will continue in Q2.
  • GBP/SEK/NOK – The Pound continues to fall victim to bearish historical patterns and increasingly negative technical impulses as Cable relinquished another round number at 1.2200 to test deeper support ahead of 1.2150 (circa 1.2166) before finding underlying bids, with perhaps some fundamental weakness emanating from BoE Governor Bailey acknowledging that markets are anticipating more QE. Meanwhile, the aforementioned risk aversion has knocked the Swedish Krona out of its stride and back under 10.6000 vs the Euro, but firm crude prices following a less downbeat IEA monthly report in terms of global demand destruction are helping Eur/Nok in a downward trajectory near 11.0000, albeit off Wednesday’s sub-10.9250 two month lows.
  • CAD/CHF/EUR – Buoyant oil is also underpinning the Loonie either side of 1.4100 vs its US counterpart in the run up to the BoC’s FSR, while the Franc is back in a bind or divergent position given Usd/Chf holding above 0.9700 in contrast to Eur/Chf edging back down towards 1.0500, as the single currency straddles 1.0800 against the Greenback after light stops were tripped at the big figure, but not larger ones said to be sitting beneath at 1.0775. Note, Eur/Usd is shrouded in a cluster of big option expiries today spanning 1.0750 to 1.0930 – check out the headline feed at 7.23BST for full details and the other major strikes in play.
  • EM – Not even the deteriorating mood amidst heightened COVID-19 2nd wave and US-China relations or rising crude costs can dent the Try’s ardour it seems, as the Lira remains above 7.0000 and drawing traction currently from hopes that the CBRT can arrange swap lines with foreign peers..

In commodities, WTI and Brent front-month futures remain on the front foot after a somewhat choppy APAC trading session, with fresh modest impetus across the complex derived from the latest IEA oil market report – which proved more optimistic vs. its OPEC and EIA counterparts. The agency cut their 2020 demand growth forecast by 690k BPD (vs OPEC’s 2.23mln BPD and EIA’s 2.9mln BPD) while stating that the decline in H1 oil demand is not as steep as originally feared – with an improvement in the balance seen amid deep production curbs and reopening economies, however, IEA Chief Birol stated that he does not believe the recently announced cuts (i.e Saudi, UAE, and Kuwaiti over-compliance) are enough to balance the markets. Elsewhere, Saudi Arabia has reportedly cut oil sales by half to the US & Europe, deeper cuts than for Asia, as output has been reduced, according to sources. Shipments to some US and European buyers will fall by 60-70% vs. normally contracted volumes. This comes in the context of Aramco raising OSPs across the regions, lower sales to Europe and the US could be a function of the lower demand from lockdowns. Aside from that, news-flow has been light for the complex – WTI June resides around session highs north of USD 26/bbl (vs. low 25.18/bbl), whilst Brent July similarly sees itself north of USD 30/bbl (vs. low 28.88/bbl). Elsewhere, spot gold remains relatively flat north of USD 1700/oz and around the middle of today’s tight USD 1712-1719/oz range awaiting fresh macro stimulus or Dollar action. Copper prices meanwhile tracked losses across equities alongside the soured sentiment, and reside in proximity to USD 2.400/lb, having tested support at USD 2.3350/lb earlier in the session.

US Event Calendar

  • 8:30am: Initial Jobless Claims, est. 2.5m, prior 3.17m; Continuing Claims, est. 25.1m, prior 22.6m
  • 8:30am: Import Price Index MoM, est. -3.2%, prior -2.3%; Import Price Index YoY, est. -7.35%, prior -4.1%
  • 8:30am: Export Price Index MoM, est. -2.3%, prior -1.6%; Export Price Index YoY, prior -3.6%
  • 9:45am: Bloomberg Consumer Comfort, prior 36.9

DB’s Jim Reid concludes the overnight wrap

Yesterday we published Konzept – DB Research’s magazine. You can see it here. The theme of this edition is “Life after Covid-19” where we look at twenty articles covering how the world will be different going forward. We cover macro and micro themes as well as how the post virus landscape will change your life.

One of the lead features concerns whether this virus will end up being deflationary or inflationary. It’s fair to say that this argument splits DB Research like few others. To give you a feel for the debate we included the opposing views across two conflicting articles in the magazine. On this we have this morning launched a podcast (in our Podzept series) where I moderate a discussion between the lead authors. We have Robin Winkler in the red corner fighting for his deflationary views and Oliver Harvey in the blue corner countering with his inflationary views. You can listen here or you can subscribe to Podzept on Spotify, Apple & Google Podcast and Stitcher – simply search for Podzept.

In our monthly sentiment survey you can vote as to whether you think this crisis will be inflationary or deflationary. The survey has many other questions about your views on how the virus is impacting your life and the world around you. We also include market related questions. This link is here and the results will be published over the next few days.

As markets continue to grapple with what “Life after Covid-19” might look like, it was another weak day yesterday, with global equity markets falling further. We just about managed to cope with a downbeat assessment from Fed Chair Powell but couldn’t after additional evidence that the US/China relationship is souring further.

On the latter President Trump initially tweeted that “dealing with China is a very expensive thing to do. We just made a great Trade Deal, the ink was barely dry, and the World was hit by the Plague from China. 100 Trade Deals wouldn’t make up the difference – and all those innocent lives lost!” This was followed by China Global Times headlines saying that China is “extremely dissatisfied” with the possibility of the US sanctioning or otherwise punishing China over the coronavirus epidemic and would look to retaliate and were “mulling punitive countermeasures on US individuals, entities and state officials like Missouri’s attorney general, who filed lawsuits against China in seeking damages over the coronavirus pandemic.” This was all prior to a Bloomberg report saying that the Federal Retirement Thrift Investment Board in the US, a savings plan for federal employees, would not be allocating roughly $50 billion of its international fund to track an MSCI All Country World Index, capturing China. The move was reportedly backed by the President’s administration and some members of Congress.

Adding to the negative US/China news, the high profile founder of Appaloosa Management, David Tepper, called the US stock market the most overvalued that he had ever seen outside of the tech bubble in 1999, calling some tech valuations “nuts”. These comments mirrored those of fellow seasoned investor Stan Druckenmiler the day before. He called the risk-reward of equities the worst he had seen in his career. Tepper also questioned whether there have been misallocations of capital following the actions of the Fed, but also acknowledged that the stock market may not retest the March bottoms.

In terms of the moves, equity indices fell across the board with the S&P 500 down -1.75% and the NASDAQ also down -1.55%. Even though the market rallied nearly one percent in the last 30 minutes of trading this was still the first time in over 3 weeks that we’ve seen the S&P fall by more than 1% for two days in a row, while the VIX index climbed +2.2pts to its highest level in over a week. European bourses also experienced sustained declines, with the STOXX 600 down -1.94% and the DAX losing -2.56%.

Asian markets have followed in tow this morning with the Nikkei (-0.86%), Hang Seng (-1.11%), Shanghai Comp (-0.47%) and Kospi (-1.00%) all down. Elsewhere futures on the S&P 500 are trading flat while yields on 10yr USTS are down -1.1bps. In other overnight news, Saudi Aramco announced a cut in contractual volumes for June loading to at least eight Asian customers, signaling that the country might be adhering to the announced production cuts. WTI oil prices are up +0.55% as we type.

Fed Chair Powell in his hotly anticipated address yesterday warned that the outlook was “both highly uncertain and subject to significant downside risks.” Though Powell’s conclusions will probably come as no surprise, what was notable from his remarks was how he dwelled for some time on the permanent effects that a recession of such a large magnitude can have, commenting that they “can leave behind lasting damage to the productivity capacity of the economy.” So markets certainly had some pretty negative headlines to ponder. When it came to future policy, he said that “we will continue to use our tools to their fullest until the crisis has passed and the economic recovery is well under way”, and that “additional fiscal support could be costly, but worth it if it helps avoid long-term economic damage and leaves us with a stronger recovery.”

The main takeaway however was on negative rates, where Powell said that the FOMC’s views hadn’t changed and that it wasn’t something they were looking at. Following the remarks however, Fed funds futures are pricing negative rates in Jan 2021 on Bloomberg’s WIRP page.

With investors moving out of risk assets into safe havens, sovereign debt rallied yesterday on both sides of the Atlantic, with yields on 10yr Treasuries down by -1.3bps to 0.653%, and those on bunds also falling by -2.5bps. Fed Chair Powell’s comments did not seem to have too much influence on yields given 10yr yields did not move until the risk off tone hit all assets slightly later in the US session. There was a tightening in peripheral spreads in Europe, with those on ten-year Italian (-6.3bps), Spanish (-2.8bps), Portuguese (-5.4bps) and Greek (-3.7bps) debt all moving tighter over bunds. And over in the UK, 2-year gilt yields fell to a record low of -0.03%.

Late last night news came out of Italy that the government has approved a €55bn fiscal stimulus package, which will focus on liquidity for small businesses and individual loans. As much as 15 billion will be set aside for companies to pay workers currently on furlough, with additional emergency funds for the unemployed. There will also be roughly €4bn in tax cuts for Italians as well as a €500 bonus for some to use on holiday spending for some. The Italian stimulus plan came alongside news that BoE Governor Bailey said that additional bond purchases would be coming. He acknowledged that it is “pretty clearly” investors expect more QE and that the central bank has kept the option open to do more. There was also a bit more acknowledgment that the BoE are effectively financing the deficit for now and spreading the costs of the pandemic over time. Previously the BoE have been a bit more hawkish on acknowledging that they are effectively financing the government.

When it comes to the short-term path of the economy, economists will be paying close attention to the initial weekly jobless claims report today from the US covering the week through 9 May. This is the first since last Friday’s April jobs report confirmed that the US now has its highest unemployment rate since the Great Depression, at 14.7%, and unfortunately it’s likely that we haven’t seen the worst of that yet. In terms of today’s claims number, the call from our US economists is for a 2.503m reading, which would mark the 6th week in a row that the number has declined, down from a peak of 6.867m in the week to March 27th. However, even if you benchmark it from the pre-Covid total number of nonfarm payrolls, that implies we’re still seeing well over 1% of the workforce making initial claims in a single week.

The economic data yesterday begun with figures that showed GDP had contracted by -2.0% in Q1 (vs. -2.6% expected), which is the largest quarterly decline for the UK economy since Q4 2008. Unsurprisingly, the real damage was evident once the lockdown had begun in March, with a month-on-month decline of -5.8% (vs. -7.9% expected), in contrast to +0.1% growth in January and a -0.2% contraction in February. Furthermore, that’s the worst monthly contraction on record in monthly data that goes back to 1997.

Wrapping up with yesterday’s other data, and Euro Area industrial production fell by -11.3% in March (vs. -12.5% expected), which was the biggest monthly decline since the formation of the single currency back in 1999. Meanwhile US producer prices fell by -1.3% month-on-month in April (vs. -0.5% expected).

To the day ahead now, and the data highlight today will likely be the weekly US initial jobless claims. Meanwhile, there’ll also be the final German CPI reading for April, Japan’s machine tool orders for April, the Italian trade balance for March and Canadian manufacturing sales for March. From central banks, Bank of England Governor Bailey will be speaking on a webinar, and we’ll also hear from the Fed’s Kashkari, Bostic and Kaplan, along with the ECB’s Vice President de Guindos. Finally, the ECB will be publishing their Economic Bulletin, while the Mexican central bank will be deciding on rates.

 

3A/ASIAN AFFAIRS

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 27,71 POINTS OR 0.96%  //Hang Sang CLOSED DOWN 350.56 POINTS OR 1.45%   /The Nikkei closed DOWN 352.27 POINTS OR 1.74%//Australia’s all ordinaires CLOSED DOWN 1.74%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1027 /Oil UP TO 26.24 dollars per barrel for WTI and 30.15 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1027 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1271 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST  7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC  : /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

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/CORONAVIRUS UPDATE/THURSDAY

Trump may delist Chinese companies trading on the NYSE

(zerohedge)

Trump Warns “We’re Looking At Chinese Companies” On NYSE, Nasdaq As Global Outbreak Nears 4.5M: Virus Updates

Summary:

  • Trump sits for interview with Maria Bartiromo
  • Trump: ‘I wonder what would happen if we cut ties with China?’
  • Wisconsin Supreme Court strikes down stay at home order
  • Maryland to start reopening Friday
  • French government ‘incensed’ by Sanofi offer to give vaccine to US first
  • Singapore reports another 750+ cases
  • Japan starts using remdesivir on COVID-19 patients
  • Burundi latest African country to boot WHO
  • UK minister defends timing of nursing home lockdown
  • Spain sees ‘center’ of outbreak shift from area surrounding Madrid to Catalonia

*        *         *

Update (0800ET): Adding to the anti-China rhetoric this morning, President Trump allegedly mused to Bartiromo hat he “wonders what would happen if the US cut ties with China.”

Adding about his “good friend” President Xi: “Right now, I don’t want to speak to him…We could cut off the whole relationship, if we did, what would happen?” Trump says of China. “You’d save $500 billion”. In addition to once again hinting at cancelling Treasury debt held by China, Trump also said he would prefer “a stronger dollar” – sending the greenback higher, as it marked an unusual u-turn from Trump’s typical insistence that rates are too high and the dollar is too strong.

*        *         *

As health authorities in Wuhan scramble to test as many of the city’s 11 million residents as possible after discovering a handful of new cases, in the US, more states are scaling back their ‘stay at home’ orders while President Trump tells Maria Bartiromo that he ‘disagrees’ with Dr. Fauci and believes the US should reopen schools sooner rather than later.

Prodded by Bartiromo, Trump said the US should “take a look” at Chinese companies listed on the NYSE and Nasdaq (maybe he can hire Carson Block to lead the investigation). Trump has threatened to push for the de-listing of Chinese companies from US exchanges in the past (most notably back in September).

Last night, we reported some late-breaking developments in the US: The Wisconsin Supreme Court struck down the governor’s stay at home order, and Maryland Gov. Larry Hogan announced that the first big step toward reopening would begin Friday at 5pmET.

Liberals are about to lose their minds on Thursday as fired government scientist, bureaucrat and now “whistleblower” Rick Bright, who ran a tiny federal agency responsible for doling out testing grants to private drug companies, pivots from accusing Trump of unfairly funneling money into hydroxychloroquine research to warning that the US isn’t doing enough to suppress a “second wave” of the virus that isn’t expected until later this year.

The US faces the “darkest winter in modern history”, with “unprecedented illness and fatalities”, unless federal officials develop a more “coordinated” virus response.

Around the world, the number of confirmed coronavirus cases has passed 4,444,444 as it closes in on 4.5 million. The number of new cases confirmed on Wednesday was down slightly from the prior day.

As it struggles to manage its gradual reopening, the French government was incensed earlier this week by pharmaceutical giant Sanofi’s promise to supply early vaccine samples to the US. On Thursday, the government declared it was “unacceptable” for a French multinational to give the US copies of the vaccine before it had been distributed in France. Imagine the fuss Trump’s political opponents would probably make if he issued an order like this (though it would certainly play extremely well with the president’s base).

Here’s some more background on that from WaPo:

The government pushback came after comments that Sanofi CEO Paul Hudson made Wednesday.

“The U.S. government has the right to the largest pre-order because it’s invested in taking the risk,” Hudson told Bloomberg News. The United States, Hudson said, expanded its investment in the company’s vaccine research in February and thus expects that “if we’ve helped you manufacture the doses at risk, we expect to get the doses first.”

With the British economy just beginning to reopen, the FT reports that almost half of active UK businesses expect their cash flow to dry up within the next six months, according to a survey from the ONS. Meanwhile, British Health Minister Edward Argar (note to Americans: this is a different governmental role from the one held by Health Secretary Matt Hancock) defended the conservative government’s decision to lock down care homes, saying it couldn’t have acted sooner because there wasn’t yet “evidence of community transmission.”

In Spain, the number of coronavirus-linked deaths climbed on Thursday, even as the overall trend pointed to a slide, as the epicenter of the country’s outbreak moved to the northeastern region of Catalonia.

Spain’s health ministry reported 217 coronavirus deaths (data is reported with a 24-hour lag), the highest number in six days, and up from 184 the day before. That brought Spain’s official death toll to 27,321, although this excludes cases where people were not tested for coronavirus, likely leaving out many deaths in Spanish long-term care homes. During the last week, the number of deaths reported was down nearly 20% from the prior week, while the number of new cases reported fell 30% to 4,064. However, the distribution of new cases suggests the center of the outbreak is moving away from Madrid and toward Catalonia and its capital, Barcelona.

As the virus spreads unimpeded in Brazil, the country’s president, Jair Bolsonaro, who has dismissed the virus as a “little flu” has repeatedly tested negative, according to official sources.

Back in Asia, Singapore on Thursday counted 752 new infections as the outbreak among mostly migrant workers living in packed dorms continues to spread. Only 2 of those cases were Singaporean citizens, which is about on par with previous releases.

As the number of new cases slows in Japan, PM Shinzo Abe’s government revealed Thursday that it had begun treating patients with remdesivir, the experimental antiviral produced by Gilead that has been heralded by Dr. Fauci as the most promising treatment available right now – though he and even Gilead itself warned that much more research is needed to determine the drug’s actual efficacy in treating the virus.

Finally, in Burundi, government officials followed the Tanzania and kicked out a WHO official who had warned about the risks stemming from crowded political rallies, the Washington Post reported.

Get ready for something similar to transpire later this year when Trump pushes to re-start his famous campaign rallies.

END
CHINA/USA
Chinese disinformation campaign is spreading on social media throughout the world.
(zerohedge)

Exiled Businessman Exposes Sweeping Chinese ‘Disinformation Campaign’ On Social Media

Were you surprised by the sheer volume of vitriolic tweets about President Trump’s decision to use the phrase “Chinese virus”? Well, one London-based Chinese businessman/dissident says he has evidence that might explain this phenomenon, and shed some light on how Beijing manipulates social media platforms to exploit and shape public opinion far beyond the borders of the mainland.

China has been using armies of “bot” accounts on platforms like twitter to harass and criticize those who speak out against the Chinese government in Beijing and its handling of the outbreak, and spread disinformation about the origins of the virus that – you guessed it – blame the American military for unleashing the virus in Wuhan.

The dissident said that during the week before last, he identified more than 1,000 bot accounts on Twitter which he believes to be part of a government-backed “Swarm”. He’s also identified dozens of suspicious pages on Facebook.

Between April 25 and May 3, Strick said he identified more than 1,000 accounts on Twitter that were associated with the Chinese disinformation effort, as well as more than 50 different pages on Facebook. He estimated that 300 or 400 new Twitter accounts were joining the network each day, as part of the Chinese campaign.

“The network has evolved and is still growing,” said Strick, in an interview. “I believe it’s a state-backed Chinese campaign.”

Strick said his research is just the latest to highlight one aspect of China’s sweeping propaganda campaign to rewrite history as far as the virus is concerned. Yet, liberals who complain constantly about Fox News brainwashing are acting as the CCP’s “useful idiots” by amplifying these fake voices.

Strick’s work is the latest research suggesting China has ramped up disinformation around the coronavirus, to dilute their own culpability and shift blame elsewhere, although some have cast doubt on certain findings or suggested they may warrant further investigation.

In research published last week on the investigative website Bellingcat, Strick described the operation as a “well-structured information campaign” that was working in a coordinated way “to skew the narrative around varying topics, and to push set agendas.”

The operation bears some of the same hallmarks as a network of 900 accounts that Twitter uncovered in August last year, which the company identified as “a significant state-backed information operation focused on the situation in Hong Kong,” operated from mainland China.

And get this: A cybersecurity analyst quoted by BBG said the spam bot campaigns resembled the MO of an infamous Beijing-backed group known in the industry as “Spamouflague Dragon”.

Ben Nimmo, director of investigations at Graphika Inc., said the accounts identified by Strick appeared to be linked to a network known as “Spamouflage Dragon,” which was previously identified promoting attacks on Hong Kong protesters by using hijacked and fake accounts on YouTube, Twitter, and Facebook.

In a September 2019 report, Graphika described Spamouflague Dragon as “an active and prolific, but ultimately low-impact, cross-platform political spam network,” whose actions “appeared designed to support the Chinese government and discredit its critics, both at home and abroad.”

For what it’s worth, China’s Foreign Ministry dismissed the claims as “unfounded” (shocker), and Twitter affirmed that while it’s working tirelessly to crack down on these malicious, foreign-influence-spreading bots, the company is preoccupied right now with silencing conservative voices.

China’s Ministry of Foreign Affairs on Wednesday called reports of a Chinese disinformation campaign “completely unfounded.”

“China opposes disinformation,” ministry spokesman Zhao Lijian told reporters at a regular briefing in Beijing. “As to Chinese officials opening accounts on Twitter and other social media platforms, the purpose is to better communicate with the world and introduce China’s situation and policies. We want to strengthen communication and exchange with the outside world to enhance our mutual understanding.”
A Twitter Inc. spokesperson said in a statement that it was working to “pro-actively monitor” the platform “to identify attempts at platform manipulation and mitigate them.”

“If we identify information campaigns on our service that we can reliably attribute to state-backed activity either domestic or foreign-led, we will disclose them,” the spokesperson said.

Facebook Inc. didn’t respond to a request for comment.

Strick said many of the accounts were focused on attacking Guo Wengui, an exiled Chinese businessman, now based in the U.S., who is a fierce critic of the ruling Communist Party government. The accounts were also promoting baseless claims linking vaping and Covid-19, as well as amplifying conspiracy theories about biosecurity incidents in the U.S. under the hashtags #coronavirus and #TruthAboutCovid.

The accounts also promoted content that included criticism of pro-democracy protesters in Hong Kong.

Many of the accounts on Twitter, he said, had Chinese names and posted content in both English and Chinese, while other accounts in the network used Russian account names written in the Cyrillic alphabet, possibly to deflect attribution of the accounts away from China.

On May 8, the U.S. State Department’s Global Engagement Center said it had identified “a new network of inauthentic accounts” on Twitter, which it said we “created with the intent to amplify Chinese propaganda and disinformation.” It isn’t clear if the accounts were the same ones identified by Strick.

Want to learn more about how to spot a bot? For regular users of social media, the process should be fairly easy, but many still mistake bots for humans (that’s why they’re still effective). Strick offers some advice above on how to spot a bot.

But we suspect that as we get closer to election day, this “inference” from China (which hasn’t generated anywhere near the outcry that the (now proven to be total bs) ‘Russia collusion’ narrative, you’ll notice) will become even more widespread.

end
CHINA/WUHAN
China is now going to test all 11 million Wuhan residents and the results would surely set off a firestorm in the USA
a good read…
(zerohedge)

Why China’s Move To Test 11 Million Wuhan Residents Could Set Off Firestorm In US

After six new cases in the past days popped in Wuhan, despite health officials thinking corovavirus was finally eradicated in the place of its origin, authorities say they are planning to undertake the hugely ambitious task of testing all of the city’s eleven million residents starting in about a week.

It will mark the first mass testing of its scale to be carried out anywhere, with scientists and governments across the globe sure to be interested in the data it produces, given it could portend second wave ‘flare-ups’ in other countries, should the results show more than expected are still being infected in Wuhan.

The six new cases reported Sunday and Monday were the first since the city’s strict lockdown was finally opened. The nightmare scenario is that Wuhan could again be impacted by ‘resurgent’ flare-up clusters.

 

Via AFP

City districts have been ordered to draw up ground level data and a plan needed to test all residents in their area, to be submitted within ten days.

As Bloomberg writes, the drastic and herculean effort that will be involved is driven by fears in Beijing they could be dealing with a serious stealth resurgence of the virus:

The ambitious move to test everyone in Wuhan reflects China’s anxiety over a resurgence of the epidemic, which it managed to stamp out through draconian restrictions that locked down hundreds of millions of people at its peak in February. Wuhan was sealed off from Jan. 23 until April 8 in a months-long ordeal that saw scores die as the local health system collapsed.

Should it be the case that new large clusters are found as a result of the mass test push, it will no doubt spark a deeply pessimistic outlook for Europe, Russia and the United States.

 

Looking across the Yangtze River in Wuhan, AFP via Getty.

The Wuhan data, which could possibly start to produce results in as little as weeks or a month, could spark a firestorm of controversy surrounding the already sensitive debate on reopening in the West.

In short newly uncovered clusters in Wuhan would give leverage to those politicians and state governors in the US pushing to extend lockdown orders, at a key moment the White House is hoping for a national loosening up of business closures and public restrictions. This also at a time states are increasingly clashing with federal policies for opening back up.

Some recently published controversial scientific models and forecasts designate that many states shouldn’t even start opening until mid to late July. For each side, the Wuhan data will likely tip the scales of the debate, either in the optimistic or pessimistic direction.

end
CHINA/USA
War of words is heating to a boil between Trump and Beijing
(zerohedge)

“We Could Cut Off The Whole Relationship” – War Of Words Between Trump And Beijing Is Heating Up

A solid chunk of President Trump’s latest sit-down interview with one of his favorite reporters – the OG “money honey” Maria Bartiromo – was devoted to the president’s latest belligerent musings about China, the latest in an escalating tit for tat as at least one hedge fund titan subtly warns that ‘World War III’ between the US and China might be a tail-risk worth hedging against.

Asked about the US-China bilateral relationship, Trump replied “we could cut off the whole relationship,” saying the US “could save $500 billion” by doing so. For those who don’t understand the significance of this last remark, it’s a reference to cancelling some of the massive pile of Treasury debt held by China. Rates have continued to drop even as China has dumped a large chunk of its US foreign-exchange holdings, which has prompted some economist know-it-alls to insist that the Fed could simply soak up the entire slug of debt held by China, dismissing the risk of a destabilizing spike in interest rates.

“There are many things we could do,” Trump said, “we could cut off the whole relationship.” explaining that if that happened “[US would] save USD 500bln if you cut off the whole relationship. At what point – and I said this for years…and I said it about other countries also. Nato, I was able to get them to pay hundreds of billions more. You know who is my biggest fan in the world? Secretary Stoltenberg [the head of NATO].”

After that, Trump launched into a tangent about NATO before Bartiromo managed to bring him back to the topic at hand. Moving on, she  pressed Trump about whether he’s raised any of these complaints with President Xi, with whom he has reportedly spoken at least one time since the beginning of the year.

Trump waved away the suggestion, saying he hasn’t spoken to Xi recently and seemed to suggest he doesn’t plan to. He added that China had “called” about the trade deal today and yesterday (the two sides reportedly held a virtual meeting last week). But with China, unfortunately, “you can’t have an even deal”…seeming to suggest once again that the “Phase 1” trade deal is as good as dead, even as China ramps up its agriculture purchases.

Pro-Beijing tabloid the Global Times responded to the interview almost immediately, urging China to take “tougher countermeasures” against the US’s recent “provcations.”

 “China needs to take tougher countermeasures against the US, given the latter’s recent hyped up provocations, including accusing China of stealing US COVID-19 vaccine information, experts and Chinese netizens said.”

Meanwhile, the paper’s editor, a prominent CCP mouthpiece, hinted at the possibility of an armed conflict.

Hu Xijin 胡锡进

@HuXijin_GT

I am asked a lot recently: Will a war break out between China and the US? My answer: The two countries increasingly dislike each other, various conflicts are rising, therefore, risk for a military clash is increasing. But meanwhile, they both don’t want a war. Am I right?

Shortly after Trump’s interview aired on Fox Business, former Alphabet Chairman Eric Schmidt appeared on CNBC’s “Squawk Box” to rebut Trump’s comments in an obvious attempt to signal to the national party that Silicon Valley still values its business relationship with the mainland, even if the political climate in the US appears to be turning.

“They’re not coming back – and that hurts us. we are stronger globally when we have a common information platform when we communicate with each other…we’re never going to be great friends but we can collaborate on common problems.”

“On business, you’ve had all sorts of instances of companies working together without trusting each other…why can’t we do that with China? When we compete, we want to win…I strongly believe American technology can win with all the other challengers.

We need to be on a footing where we get China to use these platforms not the opposite.”

We understand where Schmidt is coming from. With his still-extremely-close ties to Alphabet and now-formal role in the US government, Schmidt sees China through the rose-colored glasses of Silicon Valley: It’s a market where money grows on trees.

As we mentioned earlier, Trump also said he’s examining Chinese companies that trade on the NYSE and Nasdaq  but don’t follow US accounting rules. “We are looking at that very strongly,” he said, though he warned that taking action could backfire.

Schmidt probably winced when the president declared to Bartiromo that the “era of globalization” is over.

But as far as we can tell, there are some obvious errors in Schmidt’s reasoning, most glaringly this: The Communist Party has no interest in allowing any American multinationals to take a dominant position in China, and – what’s more – the party is willing to guarantee that this won’t happen by adopting policies that disadvantage foreign competitors while subsidizing Chinese state-backed companies. While Beijing under Xi has made a few token gestures toward “liberalization”, it’s clear that the president’s authoritarian bent has already moved China in the opposite direction, more aligned with the hardliners in the party who have been suspicious of the US since the 1970s, and whose suspicion, bitterness and contempt only intensified after the fall of the Soviet Union.

END
CHINA/USA

China Slams US As “Perpetrator Of Largest Cyber-Theft Worldwide” As FBI Issues ‘High Alert’ For Virus Data Hacks

US federal agencies say they are on high alert for cyberattacks out of China targeting health research and pharmaceutical companies in efforts to steal coveted and valuable coronavirus data and possible breakthrough solutions to the pandemic, such as vaccines and experimental treatments.

The Department of Homeland Security and the FBI further have issued a “public service announcement” of what they called a “significant threat”, saying health research sectors “working on a COVID-19 response should all be aware they are the prime targets of this activity and take the necessary steps to protect their systems.”

While over the past month some international health bodies as well as US agencies have singled out Iran as a main perpetrator of COVID-19 related data theft and hacks, US officials threw the spotlight on Beijing this week.

 

Simon Saw-Teong Ang

“China’s long history of bad behavior in cyberspace is well documented, so it shouldn’t surprise anyone they are going after the critical organizations involved in the nation’s response to the COVID-19 pandemic,” Christopher Krebs, director of the Cybersecurity and Infrastructure Security Agency, told The New York Times earlier this week.

Per Axios:

The FBI and CISA recommended that research institutions “patch all systems for critical vulnerabilities, prioritizing timely patching for known vulnerabilities of internet-connected servers and software processing internet data.”

  • The agencies pressed institutions to scan for unauthorized access, modification or anomalous activities and to improve internal credential requirements to gain access to research.
  • They also cautioned that increased media attention about virus research done by a specific organization will lead to increased “cyber activity.”

Chinese state actors already have a long recent history of intellectual property theft, which was one of the driving elements behind growing Trump administration criticisms which led to the trade war. And on that front, as we reported Tuesday amid the coronavirus data theft warnings, it appears the feds may have reeled in their first big fish:

The government on Monday unsealed a wire fraud charge against a University of Arkansas professor and NASA researcher with ties to the Chinese government. Simon Saw-Teong Ang allegedly failed to disclose ties with the Chinese government and Chinese companies while also being employed as a professor at the University of Arkansas and accepting NASA research grant money.

Specifically the court documents allege that “Ang had close ties with the Chinese government and Chinese companies, and failed to disclose those ties when required to do so in order to receive grant money from NASA.”

The court documents further say Ang simultaneously held positions in China while also being under official employment at the University of Arkansas. The FBI was reportedly tipped off after his name was mentioned in a Chinese news article highlighting his achievements as part of a program called Thousand Talent Program scholars.

This comes after a series of similar cases uncovered and investigated by the FBI of Chinese nationals with ongoing ties to state-linked entities in the communist country being found in high positions at US research universities and labs, such as a recent example at Emory University.

To be expected, Chinese officials and state media hit back Thursday, turning it back on Washington, charging that it’s actually the US which “has a history of perpetrating the largest cyber-theft worldwide” and adding it’s China that should be worried about its own COVID-19 research.

Global Times

@globaltimesnews

The US has a history of perpetrating the largest cyber-theft worldwide. China has more reasons to worry about its own research stolen, as it leads the field, said a FM spokesperson on Thu. FBI and DHS earlier claimed that Chinese hackers are targeting US’ COVID-19 R&D.

Embedded video

“We are leading the world in COVID-19 treatment and vaccine research,” China’s Foreign Ministry said at the start of the week. “It is immoral to target China with rumors and slanders in the absence of any evidence.”

But with US-China relations arguably at their lowest point in history, more such instances are likely to be spotlighted and investigated.

Ang himself knew full well the illegality of concealing his ties while receiving NASA funding, and essentially confessed his concealment of continuing links to China in private communications. Emails revealed as part of the court case show he previously wrote to a colleague in China: “Not many people here know I am [a Thousand talents program scholar] but if this leaks out, my job here will be in deep troubles,” according to ABC. “I have to be very careful or else I may be out of my job from this university.”

END

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Saudi Arabia:

A key Saudi diplomat who resided in Washington at the time of 9/11 (Mussaed al Jarrah) was responsible for tasking the hijackers.  His name has been known for years but the FBI mistakenly released his data.  This could be a bombshell in court presidings

(zerohedge)

 

FBI ‘Mistakenly’ Releases 9/11 Bombshell In Court: Key Saudi Diplomat Who “Tasked” Hijackers Named

It’s being called “a complete government cover-up of the Saudi involvement” according to 9/11 victims’ families who are in a lengthy ongoing lawsuit seeking to expose Saudi involvement in the 9/11 attacks and US efforts to cover it up.

A new bombshell has been dropped which the families of victims are hailing a huge success: FBI court documents inadvertently left a key Saudi embassy official’s name unredacted, revealing one of the government’s most sensitive secrets regarding the September 11 attacks and state sponsorship.

Yahoo News exclusive reveals, based on what has since been admitted as “a giant screw-up,” the identity of “a mysterious Saudi Embassy official in Washington who agents suspected had directed crucial support to two of the al-Qaida hijackers.”

Ironically the ‘accidental’ release of the information was related to filings by Attorney General William Barr and acting Director of National Intelligence Richard Grenell to get information pertaining to the kingdom’s role in the attacks permanently banned from public access, citing the usual “state secrets” and national security concerns.

The FBI mistakenly revealed the identify of a top Saudi embassy official who had continuing direct contact with individuals involved in running the Los Angeles al-Qaeda terror cell which produced some of the hijackers: his name is Mussaed Ahmed al-Jarrah.

Al-Jarrah was an official diplomat of the Saudi foreign ministry and embassy in D.C. who oversaw Ministry of Islamic Affairs employees at Saudi-funded mosques and Islamic centers throughout the US from 1999 and 2000. Crucially he’s been revealed as a key “link” between the Saudi government and the Los Angeles cell, specifically two terrorists which went on to fly a plane into the Pentagon.

The Yahoo News report describes the huge significance of the Al-Jarrah revelation as follows:

Fahad al-Thumairy, a Saudi Islamic Affairs official and radical cleric who served as the imam of the King Fahd Mosque in Los Angeles and Omar al-Bayoumi, a suspected Saudi government agent who assisted two terrorists, Khalid al-Mihdhar and Nawaf al-Hazmi, who participated in the hijacking of the American Airlines plane that flew into the Pentagon, killing 125.

After the two hijackers flew to Los Angeles on Jan. 15, 2000, al-Bayoumi found them an apartment, lent them money and set them up with bank accounts.

A redacted copy of a three-and-a-half page October 2012 FBI “update” about the investigation stated that FBI agents had uncovered “evidence” that Thumairy and Bayoumi had been “tasked” to assist the hijackers by yet another individual whose name was blacked out, prompting lawyers for the families to refer to this person as “the third man” in what they argue is a Saudi-orchestrated conspiracy.

That “third man” is newly revealed by the FBI ‘mistake’ as Al-Jarrah — believed to have “tasked” intermediaries to assist some among the 9/11 hijackers.

Current and former FBI officials speaking on anonymity have said that top leaders at the bureau have sought to quash this whole investigation from the start. “There were definitely people at FBI headquarters who wanted this closed,” one former official told Yahoo.

The report continues:

Relatively little is known about Jarrah, but according to former embassy employees, he reported to the Saudi ambassador in the United States (at the time Prince Bandar), and that he was later reassigned to the Saudi missions in Malaysia and Morocco, where he is believed to have served as recently as last year.

Jarrah has been on the radar screen of the lawyers for the 9/11 families for some time and is among nine current or former Saudi officials who they suspect have important information about the case and have sought to either question them or get access to FBI documents that mention them.

The families have also tapped former agents to help investigate the activities of the potential witnesses, including Jarrah.

Jarrah “was responsible for the placement of Ministry of Islamic Affairs employees known as guides and propagators posted to the United States, including Fahad Al Thumairy,” according to a separate declaration by Catherine Hunt, a former FBI agent based in Los Angeles who has been assisting the families in the case.

Hunt conducted her own investigation into the support provided to the hijackers in Southern California. “The FBI believed that al-Jarrah was ‘supporting’ and ‘maintaining’ al-Thumairy during the 9/11 investigation,” she said in her declaration.

 

Mussaed Ahmed al-Jarrah (left), via Gulf-based Thumbay Group.

Musaed Ahmad Al-Jarrah (pictured above left, and below), former Saudi Foreign Ministry official assigned to the Saudi embassy in Washington, DC between 1999 and 2000.

 

Via Saudi 24 News

A spokesman for the 9/11 families whose father was killed in the attacks, Brett Eagleson, said of the Jarrah revelation that ultimately it confirms a Saudi chain of command behind 9/11 which goes direct to the Saudi embassy in D.C.

Below: Prince Bandar bin Sultan, Saudi Ambassador to the US, speaking to former President George W Bush at the Bush Ranch in Crawford, Texas, in August 2002. An ‘indirect link’ between Prince Bandar and an al-Qaeda suspect is revealed in a 9/11 investigatory report. Al-Jarrah reported directly to Prince Bandar, who later became Saudi intelligence chief and kingdom’s national security council head.

 

Via Reuters

“It demonstrates there was a hierarchy of command that’s coming from the Saudi Embassy to the Ministry of Islamic Affairs [in Los Angeles] to the hijackers,” Eagleson said.

And no doubt there’s still a mountain of evidence kept secret by the US government concerning the real 9/11 story. At this point we’re still surely at the mere tip of the iceberg as the official narrative continues to unravel even by the mainstream media’s belated admission (whereas in prior years any critical approach to official Washington’s 9/11 mythology got one dismissed as ‘conspiracy theorist’ and ‘truther’ etc..).

Given the 9/11 lawsuit driven by victims’ families is nowhere near finished, it is likely to slowly chip away and wrest more damning information from the feds.

END

6.Global Issues

World’s largest shipper, Maersk, warns of continued collapsing volumes and they dash all hope for a V shaped recovery

(zerohedge)

World’s Largest Shipper Warns Of Collapsing Volumes, Dashes Hope For V-Shaped Recovery

A.P. Moller-Maersk A/S, the world’s largest container line, warned Wednesday that global trade will continue to falter with volumes declining by at least a quarter in 2Q20. Maersk dashed all hope that a V-shaped recovery will be seen in the back half of the year, rather suggesting a U-shaped recovery is more plausible.

“Looking into Q2 2020, visibility remains low as a result of the COVID-19 pandemic. We continue to support our customers in keeping their supply chains running, however as global demand continues to be significantly affected, we expect volumes in Q2 to decrease across all businesses, possibly by as much as 20-25%,” Soren Skou, Maersk’s CEO, was quoted in a company press release.

“2020 is a challenging year, but as we proactively respond to lower demands and show progress in our transformation and financial performance, we are strongly positioned to weather the storm,” Skou said.

Maersk pulled its full-year guidance for 2020 in late March, due to the COVID-19 pandemic that has severely damaged the global economy. In an interview with Bloomberg, Skou said he’s expecting “some sort of U-shaped recovery.”

“Right now, we believe we are at the bottom and we will probably be here for a while,” Skou said. “But in the third quarter, the fourth quarter, we should start to see some recovery.”

Maersk continued to reaffirm a gloomy outlook but was able to deliver some growth in operating profit for the first quarter. Revenue increased slightly to $9.57 billion, which was better than estimates of $9.36 billion.

Shares in Maersk plunged nearly 6% in trade on Wednesday. When macro matters once more, Maersk shares tend to sell ahead of a global selloff.

Maersk’s warning comes as the WTO last month indicated the pandemic will likely result in one of the worst collapses of international trade in the post–World War II economic expansion.

On Tuesday, IMF managing director Kristalina Georgieva said the current global economic outlook continues to deteriorate and has suffered the worst blow since the 1930s. The fund will publish downward revisions to its global economic forecasts next month, Georgieva said.

In mid-April, the IMF forecast a decline of 3% in global output, with emerging and developing economies contracting by 1% and advanced economies by more than 6% in 2020.

Georgieva spoke with FT on Tuesday, she said: “With the crisis still spreading, the outlook is worse than our already pessimistic projection. Without medical solutions on a global scale, for many economies a more adverse development is likely.”

It could take several years or more for global GDP to recover back to 2019 levels.

Investing legend Stan Druckenmiller called the V-shaped recovery a fantasy during a webcast Tuesday.

As of late, the V-shaped narrative for the Global and or US economy continues to unravel, suggesting more of a U-shaped or even L-shaped recovery is ahead.

end

Just take a look at the Baltic Dry Index…the lowest ever

Baltic Dry Index

 

end

CHINA/USA THE GLOBE//

A good one:  the USA is targeting China and may even stop all private investment with Chinese firms.  If this were to happen the broad USA shortage would escalate

 

(courtesy Michael Every)

Rabobank: A Broad US Dollar Shortage Would Erupt If There Is A New Trade War With China

Submitted by Michael Every of Rabobank

Hand A, Hand B, Handout

Yesterday saw Fed Chair Powell in the spotlight, and he had a few key things to say. First, things are looking grim for the economy. Rather than merely cheer-leading that H2 and 2021 were going to see a V-shaped US recovery he stated “the path ahead is both highly uncertain and subject to significant downside risks.

The UN would agree, with what looks like a vast underestimate that 130m people may slip into poverty globally in the wake of the virus: we could actually see that happening in just one or two large economies if things aren’t handled right. Even Australia just saw a jobs number of -594K, even worse than expected, and the US equivalent of nearly 8 million. (The wunderkind at the ABS did manage to replicate their usual monthly statistical bafflement, however, in showing that the unemployment rate only rose from 5.2% to 6.2% vs. 8.2% expected. *Sigh*.)

However, Powell dismissed the need for negative interest rates, even if US futures markets have been flirting with the idea, adding that the evidence that they are effective as policy “is very mixed”. That’s being generous given negative rates have failed to generate a recovery in Japan or Europe, and technically are a form of partial default reflecting that there is just too much private-sector debt out there.

Then Powell made clear that the Fed can only lend, not spend, and that the path forward needs to be fiscal.Indeed, “Additional fiscal support could be costly, but worth it,” he added. Indeed. And what a refreshing change from the economic illiteracy displayed by Trump economic advisor Stephen Moore, who talking on The Hill argued that state spending can never create a job or produce any kind of recovery because it just moves money from one hand to another. Is this mantra really what they are thinking in the White House? ‘Moore is less’?

Moore openly implies if a bank makes a loan to company A for project X, creating USD de novo to do so, and that new USD debt/money circulates around the economy, then this is economic growth – even if that loan has to be paid back with interest from within the same economy (so from hand A to hand B). Yet if a government issues a bond for project Y, which the central bank buys with USD created de novo, and that new USD debt/money circulates around the economy, this is NOT economic growth – even when the debt carries almost no interest and/or does not have to be paid back at all in some cases. (Even Italy, within the straightjacket of the Euro, which the German constitutional court wants to tighten the straps on further, is expanding state spending by EUR55bn: yes, it’s completely inadequate – but it will help growth.)

This is not to say that all state spending is good, or useful, or even necessary; this is not to say monetization is how we should all start our day. Yet not all private borrowing is good, or useful, or even necessary – and they can’t monetize in an emergency. To not understand the role of government stimulus in this new age of MMT and unprecedented socio-economic crisis surely displays an awesome political tin ear or an iron skin, or both. (On which note, the UK Daily Mail yesterday flagged that the currently very generous British government is going to tighten its belt post-Covid, with pay freezes –even for the heroes currently getting clapped? I guess claps are free…– and tax hikes. Won’t that help a struggling, demand-weak economy?)

Powell, by contrast, does perhaps get it(?) However, what’s interesting is he is saying this even as stocks are still riding high overall, the last few days aside, with debates over whether this is a bear-market rally or a new bull market.

So let’s be a little cynical. Perhaps –just perhaps– the Fed is happy to see a larger fiscal deficit because it knows this not only counters a huge shift to net saving by the private sector as unemployment soars and corporations sit on their hands or downsize; it also helps keep the US external balance in the negative. In other words, the larger the US fiscal deficit, the larger the current-account deficit, and the more USD might be able to leak out to emerging markets. That is likely going to matter again soon.

After all, China’s Global Times is claiming Beijing is drawing up a list of US individuals and entities to be “punished” if they continue to pressure it over Covid-19: this as two bills are now at various stages before Congress, one of which includes the provision of sanctions vs. China, including its ability to access the US financial system. Moreover, following the US decision not to allow a government pension fund to invest in Chinese equities, we are seeing a trial balloon in the same direction for the private sector. A conservative US think-tank, the National Legal and Policy Centre (NLPC), has approached the CEO of the world’s largest asset manager to request it to divest its holdings of 137 Chinese firms listed in the US, of which 30% are allegedly “under the influence and ultimate control of the Communist Party of China”, which raises “ethical questions”. The NLPC specifically cites the precedent of such investment firms recently divesting from fossil fuels on ethical, not financial, grounds to argue that failing to apply the same benchmark in terms of human rights “will amount to empty virtue-signalling.”

Might this activist divestment trend grow? Just look at the current geopolitical and US domestic political backdrop. President Trump is falling further behind Biden in the polls, and just tweeted:

“As I have said for a long time, dealing with China is a very expensive thing to do. We just made a great Trade Deal, the ink was barely dry, and the World was hit by the Plague from China. 100 Trade Deals wouldn’t make up the difference – and all those innocent lives lost!”

No olive branch there. This suggests that –as we have repeatedly warned– the risks ahead are still a three-step drying-up of USD flows to China: trade, tech, and capital. Broader USD shortages would then erupt as China has to scale back on its own purchases, or devalue hugely, or both.

In which case the Fed is right not to be worrying about hand A and hand B, but just handing USD out. Because we will all need them, and still be clamoring for them.

7. OIL ISSUES

 

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 1.0784 DOWN .0037 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS/PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL RED

 

 

USA/JAPAN YEN 107.07 UP 0.137 (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 1.2190   DOWN   0.0049  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.4110 UP .0020 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 37 basis points, trading now BELOW the important 1.08 level FALLING to 1.0784 Last night Shanghai COMPOSITE CLOSED DOWN 27.71 POINTS OR 0.96% 

 

//Hang Sang CLOSED DOWN 350.56 POINTS OR 1.45%

/AUSTRALIA CLOSED DOWN 1,74%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 350.56 POINTS OR 1.44%

 

 

/SHANGHAI CLOSED DOWN 27.71 POINTS OR 0.96%

 

Australia BOURSE CLOSED DOWN   1.74% 

 

 

Nikkei (Japan) CLOSED DOWN 352.27  POINTS OR 1.74%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1715.70

silver:$15.51-

Early THURSDAY morning USA 10 year bond yield: 0.61% !!! 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 1.29 DOWN 6  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early THURSDAY morning: 100.50 UP 25 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.86% UP 2 in basis point(s) yield from YESTERDAY/

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

SPANISH 10 YR BOND YIELD: 0.76%//UP 3 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,82 UP 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 106 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.54% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.36% 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 1.0784  DOWN     .0037 or 37 basis points

USA/Japan: 107.19 UP .249 OR YEN UP 25  basis points/

Great Britain/USA 1.2198 DOWN .0041 POUND DOWN 41  BASIS POINTS)

Canadian dollar UP 12 basis points to 1.4079

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

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

THE USA/YUAN OFFSHORE:  7.1207  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.9425 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 4 IN basis points from WEDNESDAY at 0.61 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.28 DOWN 7 in basis points on the day

Your closing USA dollar index, 100.48 UP 24  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 DOWN 162.51 OR   2.75%

German Dax :  CLOSED DOWN 205.64 POINTS OR 1.75%

 

Paris Cac CLOSED DOWN 71.82 POINTS 1.65%

Spain IBEX CLOSED DOWN 85.80 POINTS or 1.29%

Italian MIB: CLOSED DOWN 315.68 POINTS OR 1.84%

 

 

 

 

 

WTI Oil price; 26.85 12:00  PM  EST

Brent Oil:  30.77 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    73.94  THE CROSS HIGHER BY 0.01 RUBLES/DOLLAR (RUBLE LOWER BY 1 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.54 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 :  27.76//

 

 

BRENT :  31.29

USA 10 YR BOND YIELD: … 0.63…down 2 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.30%///.. obviously did not buy the dow/nasdaq rally

 

 

 

 

 

EURO/USA 1.0790 ( DOWN 23   BASIS POINTS)

USA/JAPANESE YEN:107.28 UP .345 (YEN DOWN 35 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 100.31 UP 6 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2223 DOWN 15  POINTS

 

the Turkish lira close: 6.9273

 

 

the Russian rouble 73.52   UP 0.42 Roubles against the uSA dollar.( UP 42 BASIS POINTS)

Canadian dollar:  1.4044 UP 47 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.54%

 

The Dow closed UP 377.37 POINTS OR 1.62%

 

NASDAQ closed UP 80.56 POINTS OR 0.91%

 


VOLATILITY INDEX:  32.61 CLOSED DOWN 2.67

LIBOR 3 MONTH DURATION: 0.392%//libor dropping like a stone

LIBOR/OIS: .392- 06 =  .332%

TED SPREAD: LIBOR VS 3 MONTH TREASURY: .265%

 

USA trading today in Graph Form

Banks, Bonds, Black Gold, Bitcoin, & Bullion Bounce Despite Jobspocalypse

Over 36 million newly jobless Americans in the last 8 weeks… and the Nasdaq is up over 30% in the same period…

Mixed bag in US stocks today (more below) with Dow best, Small Caps and Trannies lagged…

This is the 7th week of the last 8 with massive job losses and gains for The Dow…

  • 3/26 – 3.31mm jobless, S&P +6.24%, Dow +6.38%
  • 4/02 – 6.87mm jobless, S&P +2.28%Dow +2.24%
  • 4/09 – 6.62mm jobless, S&P +1.45%, Dow +1.21%
  • 4/16 – 5.24mm jobless, S&P +0.58%, Dow +0.12%
  • 4/23 – 4.43mm jobless, S&P -0.04%, Dow +0.18%
  • 4/30 – 3.84mm jobless, S&P -0.92%, Dow -1.17%
  • 5/07 – 3.17mm jobless, S&P +1.15%, Dow +0.89%
  • 5/14 – 2.98mm jobless, S&P +1.15%, Dow +1.62%

Major sell program at the open today (almost historic)…

But, the NASDAQ Composite is red year to date (8972)…

Source: Bloomberg

Banks were panic bid today…

Source: Bloomberg

US equity markets rebounded almost perfectly off critical technical levels today…

Dow futures soared over 800 points off the lows

Some claimed the bounce was due to positive comments from Nelson Peltz on CNBC – who mention that he was optimistic that “a vaccine is going to come sooner than later,” suggesting that the Pfizer CEO had said something positive (but Pfizer has not even started its trials and has only one vaccine in Phase 1). In fact Peltz poured cold water on the broad market, saying he had two new positions, was not buying the market:

I’m not buying the market: I’m buying specific companies. In this case, two companies that I like very much.”

Peltz comments hit around 1230ET and as the chart shows, there was no reaction at the time… but what what retail heard on their apparently delayed feeds: buy all the things!

After two ugly days, shorts were squeezed once again today (and banks and energy gains – worst performers YTD – suggest this was nothing but a squeeze bounce)…

Source: Bloomberg

The Dow and Small Caps bounced off their 50DMA…

The Fibs held…

At 1345ET The Fed’s Kashkari said he had “more confidence in the signal from the bond market than the stock market…” Equity bulls better hope he is wrong…

Source: Bloomberg

It’s pretty clear the market wants negative-rates no matter what Powell et al. say…

Source: Bloomberg

Bonds were bid today…

Source: Bloomberg

Bitcoin was bid today…

Source: Bloomberg

Gold Bullion was bid today…

Source: Bloomberg

Silver had even bigger day, back above $16…

Source: Bloomberg

Oil prices surged today, extending the week’s gains…

WTI June topped $27,50

The Dollar dropped today…

Source: Bloomberg

As the peso soared after Mexico cut rates by 50bps (yes!?)…

Source: Bloomberg

Finally, American consumers ain’t buying what American stocks are selling…

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

COVID-America: 84,136 Dead, 36 Million Jobless, Nasdaq +30%

The string of unprecedentedly huge spikes in jobless claims continues. In the last week 2.98 million Americans filed for unemployment benefits for the first time (notably worse than the 2.50 million expected).

Source: Bloomberg

The small difference WoW suggests a second wave of unemployment is hitting…

That brings the eight-week total to 36.47 million, which ismassively worse than the prior worst eight-week period in the last 50-plus years.

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

Source: Bloomberg

Connecticut saw a massive surge in initial jobless claims last week(we suspect this is more systems catch up than a sudden resurgence)…

And as we noted previously, what is most disturbing is that in the last eight weeks, far more Americans have filed for unemployment than jobs gained during the last decade since the end of the Great Recession… (22.13 million gained in a decade, 36.47 million lost in 8 weeks)

Worse still, the final numbers will likely be hurt even more 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.

As Mises’ Robert Aro noted earlier in the week, the stimulus packages being handed out across this world provide us with an opportunity to document the anticapitalist process as it unfolds in real time, keeping in mind that when these inflation schemes fail, it will likely be blamed on capitalism.

The combination of increasing the money supply in order to pay people not to produce goods or services has consequences that not a lot of people are talking about.

It flies in the face of the free market and is as nonsensical as a negative interest rate. A loan that is forgivable is unconventional to say the least, because a loan is normally defined as an amount borrowed that is expected to be paid back with interest. When a loan is given on a first-come-first-served basis for the purpose of paying people not to work and is forgivable because it’s guaranteed by the United States government, we shouldn’t call it a loan.

It may be called socialism, maybe interventionism, and some may still prefer the term statism; but one thing is certain when it comes to the Paycheck Protection Program: it’s not capitalism!

Welfare cliffs are of course not the only reason so many capable Americans languish in partial dependency on government assistance. Dreadful government schools in poor areas and systematic obstacles to getting a job, such as minimum wage laws and occupational licensing laws, are also to blame. But the perverse incentives of America’s welfare system really hurt, and the CARES Act may have been a serious tipping point.

But, hey, there’s good news… well optimistic headlines as Treasury Secretary Steven Mnuchin said he anticipates most of the economy will restart by the end of August.

Finally, it is notable, we have lost 314 jobs for every confirmed US death from COVID-19 (784,136).

Was it worth it? Well of course it was – US equity markets are roaring higher (though the last 3 days reality may be starting to set in again)…

 

 

 

end

U.S. jobless claims climb another 3 million as coronavirus damage mounts

May 14, 2020

MarketWatch

More than 22 million Americans receiving unemployment benefits

The numbers: Nearly 3 million people applied for unemployment compensation last week after losing their jobs in the coronavirus crisis, but a historic wave of layoffs is likely to continue to abate as states take the first halting steps toward reopening their economies.

More than 36 million people have applied for jobless benefits since the pandemic struck two months ago, including self-employed workers and independent contractors made eligible for the very first time under a federal relief program.

Some 33 million have applied under existing state unemployment laws while an additional 3 million have filed claims under the federal government’s Pandemic Unemployment Assistance Program. These figures are unadjusted, reflecting the actual number of claims processed.

Not all of these employees are still out of work. Some have been called back to their jobs in indusdtries deemed essential. Others have returned to their jobs as many states reopen parts of their economies, particularly in less populated areas where the coronavirus is mostly absent.

Yet the the unemployment rate has likely reached 20% unofficially, goverrnment data suggest, and it’s likely to rise again in May.

What happened: The mind-numbing torrent of layoffs has tapered off from a pandemic peak of 6.9 million at the end of March, but the economy cannot afford to keep losing a few million jobs a week. Many states are trying to reignite their economies, but so far it’s been slow going.

Last week the states of Florida, California, Georgia, Texas and New York reported the most new jobless claims, according to the Labor Department.

Lots of states are still underreporting new claims, however, because of antiquated computer systems and small staffs that have been unable to handle the crush of applications. It may be some weeks before they are all caught up.

As of May 2, roughly two-thirds of the all the people who’ve filed new claims during the pandemic have been approved fore benefits. These so-called jobless claims rose to an unadjusted 22 million from 18 million in the last week of April. Continuing claims are reported with a one-week lag.

The true number of people who are out of work, however, is still not known. Last week the government said 20.5 million workers lost their jobs in April, but the number is almost certainly higher.

Before the viral outbreak, new jobless claims were in the low 200,000s each week and stood near a 50-year low. Only about 1.7 million Americans were collecting benefits and the unemployment rate was at a half-century low of 3.5%.

The big picture: The economy appears to be close to bottoming out, but it’s faces a long road back to recovery despite trillions of dollars in federal spending to cushion the blow.

Millions of jobs thought to be temporarily at risk might end up permanently destroyed, retarding any economic rebound. And as long as the coronavirus replicates and resists treatment the economy cannot return to its old patterns.

-END-

 

iii) Important USA Economic Stories

Despite opening up their state, Georgia’s Covid 19 hospitalizations drop

(zerohedge)

Georgia COVID Hospitalizations Drop After State Reopens

Weeks after Georgia ended its shelter-in-place order and allowed businesses to reopen, the number of patients hospitalized with coronavirus hit a record low since hospitals began reporting COVID-19 figures, according to Gov. Brian Kemp.

“Today marks the lowest number of COVID-19 positive patients currently hospitalized statewide (1,203) since hospitals began reporting this data on April 8th,” wrote Kemp on Saturday, adding “Today also marks the lowest total of ventilators in use (897 with 1,945 available).”

Governor Brian P. Kemp

@GovKemp

Today marks the lowest number of COVID-19 positive patients currently hospitalized statewide (1,203) since hospitals began reporting this data on April 8th.

Today also marks the lowest total of ventilators in use (897 with 1,945 available).

We will win this fight together!

View image on Twitter

According to Newsmax, Kemp has urged all state residents to get tested regardless of whether they are symptomatic, as Georgia has significantly increased testing capacity.

Late last month, Kemp started allowing businesses to reopen as he ended his shelter-in-place order.

This included permission for restaurants to open for dining on the premises, although with new restrictions, and allowed other businesses to also reopen with special conditions as well.

These relaxations came as public health officials warned such a move might spark a new wave of cases, although the experts said that any potential upswing in cases might take a week or longer to appear. –Newsmax

When Kemp decided to lift the restrictions late last month, Democrat Stacey Abrams – a Vice Presidential hopeful for Joe Biden’s bid, said Kemp’s decision would be “putting more lives in danger.”

Looks like she was wrong.

end

This Republican is nothing but a deep state operative. He was useless in exposing the Democrat Russiagate hoax (now called Obamagate).  The FBI raided his office and home and seized his cellphone.  They are looking into inside trading

(zerohedge)

FBI Seizes Senate Intel Chairman’s Cellphone As Probe Into Suspicious Virus-Linked ‘Insider Trading’ Heats Up

Although the public outrage over stock trades made by GOP Senators during the early days of the US coronavirus outbreak appears to have subsided, the DoJ’s investigation into the ‘controversial’ stock trades has continued apace. And in the latest update, the LA Times revealed late Wednesday that FBI agents had seized the cellphone of Sen. Richard Burr during the course of the investigation.

Burr, who is best known to Americans in his capacity as chairman of the Senate Intel Committee, reportedly turned over his phone to agents after they executed a search warrant on his home in the Washington area.

The seizure is a sign of a “significant escalation” in the investigation, the paper said.

The seizure represents a significant escalation in the investigation into whether Burr violated a law preventing members of Congress from trading on insider information they have gleaned from their official work.

To obtain a search warrant, federal agents and prosecutors must persuade a judge they have probable cause to believe a crime has been committed. The law enforcement official said the Justice Department is examining Burr’s communications with his broker.

Such a warrant being served on a sitting U.S. senator would require approval from the highest ranks of the Justice Department and is a step that would not be taken lightly. Kerri Kupec, a Justice Department spokeswoman, declined to comment.

A second law enforcement official said FBI agents served a warrant in recent days on Apple to obtain information from Burr’s iCloud account and said agents used data obtained from the California-based company as part of the evidence used to obtain the warrant for the senator’s phone.

Notably, the leak – which reads like something the NYT or WaPo would ordinarily publish – follows a federal judge’s decision to try and stop the DoJ from dismissing the charges against former Trump NSA Michael Flynn.

 

Was this ‘leak’ really intended to show the public that the DoJ remains non-partisan in the Trump era? We wouldn’t be surprised. But the fact remains: If these senators broke the law, they will almost certainly face charges.

Of course, Burr wasn’t the only lawmaker to get caught up in the scandal:

Others who have come under fire for stock sales include Rep Sens. Kelly Loeffler (R-Ga.) and James Inhofe (R-Okla.) as well as – what’s this? – powerful California Democrat Dianne Feinstein.

END
Militia in Michigan are planning their return to the state capitol building protesting Whitmer’s say at home orders
(zerohedge)

Lansing Braces For Another Militia Fueled State Capitol Protest

Militia groups in Michigan plan their return to the state capitol building on Thursday to protest Democratic Gov. Gretchen Whitmer’s stay-at-home orders that have been enforced for virus containment purposes.

Thursday will be the next round of protests as anti-quarantine demonstrators have already flooded the state capitol building in a series of rallies, with armed and unarmed folks, many of whom have demanded the government reopen the crashed economy. The protests started around the time President Trump tweeted “LIBERATE MICHIGAN!” in mid-April.

Whitmer said the planned protests make it “much more precarious” for her administration to reopen the economy. She was on ABC’s “The View” on Wednesday discussing her thoughts on the upcoming protest:

The View

@TheView

Michigan Gov. @gretchenwhitmer calls some protests in her state “racist and misogynistic” and urges others “to stop encouraging this behavior because it only makes it that much more precarious for us to try to reengage our economy.” http://abcn.ws/2RiH3wd

Embedded video

“These protests, they do undermine the effort, and it’s very clearly a political statement that is playing out where people are coming together from across the state, they are congregating, they’re not wearing masks, they are not staying six feet apart, and then they go back home into communities and the risk of perpetuating the spread of COVID-19 is real,” she said. “While I respect people’s right to dissent, they need to do it in a way that is responsible and does not put others at risk.”

The View

@TheView

Michigan Gov. Whitmer defends her stay-at-home orders, saying “what we’re doing is working” but protests “undermine the effort.”

“While I respect people’s right to dissent, they need to do it in a way that is responsible and does not put others at risk.” https://abcn.ws/2Z2qZB8

Embedded video

The View

@TheView

Gov. @gretchenwhitmer says threats made on her life and armed protests in Michigan’s capitol “certainly does” bother her.

“I respect people’s right to dissent, but that does not extend to endangering other people’s lives and we take it very seriously.” https://abcn.ws/2WO5EZw

Embedded video

Whitmer has found herself in a heated debate with protesters over when the economy should reopen. In late April, several rounds of demonstrations brought people with rifles, shotguns, and pistols to the state capitol building, demanding the state legislature to lift the public health orders.

Here are several images from armed militia inside the state capitol building on April 30.

Joyce Karam

@Joyce_Karam

Protests in Lansing starting to bear resemblance with militia parades in Middle East.

This guy brought his assault rifle to protest the 6 ft social distance guideline for

Embedded video

The governor’s stay-at-home order is expected to be lifted in late May. But there are already new concerns that a second coronavirus wave could cause officials to extend lockdowns, which is what happened in Los Angeles on Tuesday. If Whitmer continued lockdowns, there would be no doubt that social instabilities would be seen.

According to The Guardian, Michigan attorney general, Dana Nessel, is investigating “credible threats” made on social media pages by people who have called for Whitmer’s assassination. “Wonder how long till she’s hit with a shotgun blast,” one wrote. Another said they hope Thursday’s protesters are “armed to the teeth” because “voting is too late.”

Detroit News said counter-demonstrations are expected on Thursday, which could escalate tensions further, considering one group is armed.

Lansing Mayor Andy Schor said state police would be closely monitoring the rally and work with law enforcement at the capitol building to ensure the safety of the governor and lawmakers.

Leadership on both sides of the political aisle have denounced the protesters’ “intimidation” tactics for their use of brandishing weapons.

The Republican state senate majority leader, Mike Shirkey, said, “these folks are thugs, and their tactics are despicable. It is never OK to threaten the safety or life of another person, elected or otherwise, period.”

We noted Wednesday that these so-called “thugs” protected a shop owner from getting arrested by police in Owosso, Michigan after the owner defied public health orders and opened up his barbershop.

The risk of reopening the economy too quickly could spark a second coronavirus wave, Dr. Anthony Fauci told the Senate HELP (that’s Health, Education, Labor, and Pensions) Committee on Tuesday. Certainly, Whitmer would enforce that if she had the opportunity, suggesting lockdowns are becoming political.

We have noted, lockdowns are quickly becoming political, quarantine extensions are already being seen in Los Angeles, this suggests that other cities, regions, and or states could follow.

end

Corn prices are plummeting due to overplanting, as well as China not living up to its deal.  The pandemic is also causing major problems in logistics as well.

(zerohedge)

 

 

Ag Nightmare Could Result In “Corn Mountain” As Prices Collapse

 In early January, President Trump told his followers at a campaign rally in Toledo, Ohio, that the “economy is booming,” and farmers should “go buy larger tractors” ahead of the trade deal that was signed mid-month. Farmers bought those tractors, extra seed, and fertilizer, gearing up for the “greatest year ever,” as trade with China was supposed to ramp up.

In a cruel twist for farmers, a diplomatic spat between Washington DC and Beijing has unfolded in recent weeks as the US-China trade deal is at risk of falling apart. Beijing wants the Trump administration to renegotiate the deal due to the external demand for agricultural products that have collapsed from the pandemic. President Trump has responded by saying there’s no appetite for negotiations as it now appears China will have trouble upholding its end of purchase agreements.

This is turning out to be a significant problem for US farmers who bought those new tractors and planted way too much seed this year. Farmers, already battered by the president’s trade war last year, collapsing income, and plunging spot prices, could be left absolutely devastated this year with overplanting.

Reuters said corn farmers are set to face steep losses this year as spot prices tumble to the lowest in a decade, and the planting season is the second-largest since the Great Depression.

Several issues plague farmers this year: China not upholding its end of the trade deal, the collapse of the biofuel market, and deflationary pressures from a global economy tumbling into depression

Rich Guebert, 68, a farmer near Ellis Grove, Illinois, said, “We thought there was light at the end of the tunnel,” while referring to the prospects of the trade deal. Then he said, “corona came in and reared its ugly head.”

Corn contracts teeter on the verge of a bear market as a “mountain of corn” will likely drag on prices and lead to continued turmoil for farmers in rural America.

Without China upholding its end of the trade deal and or weather events like last year’s flooding — spot prices are expected to plunge even further. This would likely suggest the Trump administration would need to supply additional farm bailouts to rural America.

 

“We can’t raise corn at that price,” said Roger Hadley, a farmer in Woodburn, Indiana. “All farmers raising corn will be in the red.”

Purdue University estimates that Hadley and other farmers like him in Woodburn, expend about $606 per acre to plant corn. At current spot rates of around $3 per bushel, these farmers would need to yield 202 bushels per acre to break even, which would surpass the county’s 2014 record of 185.8. This means all farmers in the area will likely lose money on every acre planted.

Ted Seifried, the chief ag strategist for Zaner Group in Chicago, said many farmers would see spot prices sub $3 per bushel by harvest, a level that has not been seen since the last financial crisis.

The USDA reported Monday that corn is being planted at the fastest pace in years.

A Reuters poll outlined that domestic corn stocks could rise to 2.224 billion bushels by Septemeber 1. That would be up 132 million bushels from USDA’s April outlook report. The poll said the nation’s corn stockpile would increase to 3.389 billion bushels by September 2021. If that happened, it would be the most significant domestic corn supply since 1988 and fourth-largest ever.

A perfect storm of factors could leave the US with a mountain of corn by the end of this year’s harvest and through next year. This is just more evidence that farmers will experience several years of more pain.

* * *

Despite piss-poor corn fundamentals, Bloomberg outlines how a technical bounce could be in the cards:

The last time corn was this out of favor it took about a month to surge more than 30%. And it could happen again. It all depends on ethanol, which accounts for about 40% of U.S. corn production. If consumption of gasoline blended with ethanol ticks up, near-record short positions in the fuel additive offer potential upside momentum in the event of a squeeze.

Ethanol prices have jumped 25% since April 1, as producers have cut production by more than 45%. Over 70 plants have been idled and another 70 have reduced their output, according to the Renewable Fuels Association. There’s also upward price pressure on byproducts of ethanol production. For example, distiller dried grains, a protein-rich feed for cattle, are above their three-year average and the ratio to cash corn prices is the highest since July 2016.

Of course, there are caveats. A weak Brazilian real makes ethanol exports from there more competitive on international markets. Another bumper crop of U.S. corn with little storage space available could push prices below $3.00 a bushel. And if job losses continue to curb gasoline demand, ethanol will suffer as well.

end
Tyson foods
The company is reducing meat prices after last week’s big surge.  Their aim is to keep beef on family tables
(zerohedge)

Tyson Foods Slashes Meat Prices To “Keep Beef On Family Tables”

Tyson Foods Inc. will be reducing prices on certain products for the remainder of the week, according to The Wall Street Journal. This comes after surging meat prices and shortages at some retail shops in the first half of May.

The Arkansas company, which processes about 25% of the nation’s beef, will discount prices of ground beef, roasts, and other beef products by as much as 30% through Saturday. Price reductions will be given to restaurants, grocery stores, and other customers for a limited time.

Noel White, Tyson’s chief executive, said the reduction in price on specific products is a move to keep beef affordable. This comes at a time when prices have soared due to production woes seen at processing plants across the country. He said discounting prices will help “preserve consumer demand” as processing plants come back online after some were shuttered for virus containment purposes.

“We’re doing this because we want to help keep beef on family tables,” White said.

Don Close, a senior meat analyst for Rabobank, said consumers have been struck hard by the economic turmoil and have downgraded from rib-eye steaks to hamburgers.

“Clearly, with the price run-up we’ve seen in recent weeks, we’re seeing demand erosion,” he said.

Wholesale beef prices have nearly doubled over the last several months as tens of millions of Americans have lost their jobs, and economic depression unfolds.

The reason for soaring beef prices, as we’ve explained several times: an unprecedented collapse of the nation’s food supply chain as over a dozen meat processing plants have been shuttered due to the coronavirus pandemic.

Last month, Tyson Chairman John Tyson warned in a full-page ad in several newspapers:

END
Rental car business is in shambles and this can easily be illustrated by looking at Hertz
(zerohedge)

Hertz Cancels 90% Of New Car Purchases, Further Pressuring Already Desperate Automakers

One harsh reality of the coronavirus lockdown has been the rental car industry, amid a broader travel industry, grinding to a total halt. This has led to several consequences that we have been documenting at length here on Zero Hedge.

The main consequence is that auto dealers are losing billions of dollars in fleet sales, which we documented just last week. Fleet sales account for 1.7 million vehicles per year, or about 10% of total U.S. auto sales.

Another consequence is that rental car companies have nowhere to store their inventories. Parking lots across the U.S. are full of rental cars, forcing some rental car companies to even rent out the parking lots of unused sports stadiums to store their cars.

This, combined with a massive demand drop off, has led to a massive inventory glut for auto dealers, who are being forced to consider major incentives across the board to try and sell vehicles when the consumer makes their way back to the showroom.

It’ll be difficult, as the price of used cars is also plunging and Americans are known for buying used cars, instead of new ones, in times of economic peril.

Now, it looks as though the situation for the auto industry is getting even worse.

Hertz, which is currently in the fight of its life against bankruptcy, has cancelled 90% of its new car purchases for the 2020 model year, according to Bloomberg. The move will likely hit major automakers hard.

General Motors, Fiat and Ford will be hit the hardest, as they made up 21%, 18% and 12% of Hertz’s vehicle supply, respectively.

Chief Executive Officer Kathy Marinello disclosed the company’s plans (or lack thereof) in a conference call on Tuesday after the company reported a larger loss than expected and admitted it might not be able to continue as a going concern.

Management didn’t seem to expect a “V-shaped” recovery, to say the least.

Marinello said: “The coronavirus created a major disruption as the global travel market and the used-car market effectively shut down. We have to be pragmatic about the timing of an economic rebound, including a second wave of the virus in the fall. So we are focused on safeguarding liquidity.”

Rental car sales fell 77% in April and Fiat was the hardest hit with loss of total fleet sales, according to Cox Automotive.

END

Hertz continues to try and negotiate with its lenders ahead of a May 22 debt deadline. Should the company not meet its obligations by then, it may risk bankruptcy. There was no status about the company’s bankruptcy talks on the conference call.

Usually, that’s not a good sign…

iv) Swamp commentaries)

 

 

The pit grows deeper.

Rand Paul holds an emergency press conference and wants to senate hearings on the abusive unmasking of Flynn

https://www.citizenfreepress.com/breaking/breaking-rand-paul-holds-emergency-senate-press-conference/The gloves are off:

end

The gloves come off:

(zerohedge)

“No More Mr.Nice Guy” – Trump Urges Senate To Call Obama To Testify

After the unmasking of the unmaskers (including Biden), ObamaGate  is growing…

And President Trump clearly won’t let it go (and why should he after three years of utter bullshit)…

Donald J. Trump

@realDonaldTrump

If I were a Senator or Congressman, the first person I would call to testify about the biggest political crime and scandal in the history of the USA, by FAR, is former President Obama. He knew EVERYTHING. Do it @LindseyGrahamSC, just do it. No more Mr. Nice Guy. No more talk!

We won’t be holding our collective breaths however, but it would be deliciously ironic if the president who claimed “no scandals” during his presidency, was brought down after leaving office by the biggest scandal in US history.

end
Insane and very political..
Democratically appointed judge appoints another Democrat prosecutor to argue against DOJ dismissal. This should be appealed to the 2nd circuit
(zerohedge)

In Stunning Move, Flynn Judge Appoints Gotti Prosecutor To Argue Against DOJ Dismissal

The judge in the Michael Flynn case has gone full activist – refusing to dismiss the case after the Department of Justice requested to drop charges so that an outside party could file an opposition briefing known as a “friend-of-the-court”, or “amicus” briefing.

Today, Judge Emmet Sullivan took things one step further, appointing former Gotti prosecutor and judge, John Gleeson, to argue against the dismissal and to determine whether Flynn should be held in contempt for perjury.

Techno Fog@Techno_Fog

New Flynn Filing –

Judge Sullivan appoints retired Judge John Gleeson as amicus “to present arguments in opposition to the govt’s motion to dismiss”

Sullivan – also orders Gleeson to address whether the Court should hold Flynn in contempt for perjury.

View image on Twitter

As we noted earlier, What makes it bizarre is that the Judge, Emmet Sullivan, denied this type of third party intervention 24 times during the case – yet has suddenly changed his mind after an activist group which calls itself the “Watergate Prosecutors” moved to file an amicus brief, according to the Washington Examiner.

And as Trump ally and attorney Victoria Toensing noted, the Supreme Court ruled last week that entertaining outside interventions such as these was a “drastic departure” and an “abuse of discretion.”

Victoria Toensing@VicToensing

Does Judge Sullivan read SupCt decisions? Last week SupCt held using amici was “drastic departure” and “abuse of discretion.” Why amici for @GenFlynn now when Judge refused Flynn friends amici 24 times. Judge shld be removed from case…then from Bench.

To the casual observer, between Flynn’s first legal team (from Eric Holder’s law firm) and Judge Sullivan exposing himself with these bizarre 11th hour decisions, one could reasonably conclude that the fix was in on Flynn, until he swapped legal teams and Trump found an Attorney General with a spine.

Earlier:

Flynn’s lawyer, former federal prosecutor Sidney Powell, filed a six-page motion Tuesday evening slamming the decision, writing: “This Court has consistently — on 24 previous occasions — summarily refused to permit any third party to inject themselves or their views into this case,” adding “the proposed amicus brief has no place in this court.”

“No rule allows the filing, and the self-proclaimed collection of ‘Watergate Prosecutors’ has no cognizable special interest,” the filing continues. “Separation of powers forecloses their appearance here. Only the Department of Justice and the defense can be heard.”

Powell told the Washington Examiner that the judge had denied all previous third-party interventions “until DOJ moves to dismiss and begins to expose the wrongdoing of the Obama administration.”

Flynn’s lawyers have touted recently released FBI records as being exculpatory evidence that was concealed from the defense team. The documents suggest that now-fired FBI agent Peter Strzok and the FBI’s “7th floor” leadership stopped the bureau from closing its investigation into Flynn in early January 2017, even though investigators had uncovered “no derogatory information,” after intercepts of Flynn’s communications with a Russian envoy emerged. Emails from later that month show Strzok, along with then-FBI lawyer Lisa Page and several others, sought out ways to continue investigating Flynn, including by deploying the Logan Act. –Washington Examiner

On Tuesday, Sullivan wrote in his order that “given the current posture of this case, the Court anticipates that individuals and organizations will seek leave of the Court to file amicus curiae briefs,” adding – while quoting Roger Stone judge Amy Berman Jackson (there’s a clue) in saying that “while there may be individuals with an interest in this matter, a criminal proceeding is not a free for all.”

“Accordingly, at the appropriate time, the Court will enter a Scheduling Order governing the submission of any amicus curiae briefs.

Earlier in the case, however, Sullivan wrote of similar amicus brief requests: “The Federal Rules of Criminal Procedure do not provide for intervention by third parties in criminal cases … Options exist for a private citizen to express his views about matters of public interest, but the Court’s docket is not an available option,” adding “the docket is the record of official proceedings related to criminal charges brought by the United States against an individual who has pled guilty to a criminal offense” and “for the benefit of the parties in this case and the public, the docket must be maintained in an orderly fashion and in accordance with court rules.”

end
Seems that democrat appointed Marie Yovanovitch lied under oath and she had extensive interview with Biden and Barisma
(John Solomon)

Impeachment Boomerang: Contacts Exposed Between US Embassy & Hunter Biden-Connected Ukraine Energy Firm

Authored by John Solomon via JustTheNews.com,

During President Trump’s impeachment, former U.S. Ambassador Marie Yovanovitch testified to Congress that she knew little beyond an initial briefing and “press reports” about Burisma Holdings, the Ukrainian natural gas firm that had hired Vice President Joe Biden’s son Hunter and was dogged by a corruption investigation.

“It just wasn’t a big deal,” she declared under oath on Oct. 11, 2019.

But newly unearthed State Department memos obtained under the Freedom of Information Act show Yovanovitch’s embassy in Kiev, including the ambassador herself, was engaged in several discussions and meetings about Burisma as the gas firm scrambled during the 2016 election and transition to settle a long-running corruption investigation and polish its image before President Trump took office.

Yovanovitch, for instance, was specifically warned in an email by her top deputy in September 2016 — three years before her testimony — that Burisma had hired an American firm with deep Democratic connections called Blue Star Strategies to “rehabilitate the reputation” of the Ukrainian gas firm and that it had placed “Hunter Biden on its board,” the memos show.

She also met directly with a representative for Burisma in her embassy office, less than 45 days before Trump took office, a contact she did not mention during her impeachment deposition.

The discussions about Burisma inside Yovanovitch’s embassy were so extensive, in fact, that they filled more than 160 pages of emails, memos and correspondence in fall 2016 alone, according to the State Department records obtained under FOIA by the conservative group Citizens United.

The contacts included a detailed private letter hand-delivered to Yovanovitch by one of Burisma’s lawyers in September 2016, a briefing later that month from her staff on Burisma’s issues, and a meeting scheduled between the ambassador and a Burisma representative shortly before Christmas 2016 as the Obama administration was preparing to leave office.

Yovanovitch, who recently retired from State, did not respond Tuesday to a message sent to her private email seeking comment. Her lawyer during the impeachment proceedings, Lawrence S. Robbins, also did not respond to an emailed request for comment.

State officials declined comment.

David Bossie, a former congressional investigator and current outside adviser to Trump who runs Citizen United, said the documents his group obtained raise questions about Yovanovitch’s testimony last fall and what else Congress may not know about the embassy’s involvement with the Hunter Biden-connected Burisma firm.

These new records clearly don’t support Ambassador Yovanovitch’s testimony under oath during [Rep. Adam] Schiff’s sham impeachment. Her sworn testimony must be investigated and scrutinized just like in the case of General [Michael] Flynn,” he said. “You can’t have two sets of rules.”

The impeachment hearings last fall, which focused on efforts by Trump and his lawyer Rudy Guiliani to find evidence inside Ukraine on the Bidens and Burisma and to remove Yovanovitch from her job as U.S. ambassador, included testimony from Yovanovitch herself.

During that deposition in October 2019 she made no mention of direct contact with Burisma representatives and instead suggested her knowledge about the company and its legal travails was limited mostly to a briefing she received in preparation for Senate confirmation as ambassador in summer 2016 and subsequent news media reports.

Hunter Biden’s work for one of Ukraine’s largest energy companies, which generated more than $3 million in payments to his American firm over two years, stirred controversy in both Ukraine and the United States because his father oversaw U.S. policy for Ukraine while Burisma was long a focus of a criminal corruption probe in Ukraine. State Department officials have said they believed the relationship created the appearance of a conflict of interest.

“What do you know about the investigation of Burisma?” Yovanovitch was asked at one point during her October testimony.

“Not very much. And, again, that happened before I arrived,” she testified. “… Burisma wasn’t a big issue in the fall of 2018 — 2016 when I arrived.”

“Were you aware at that time of Hunter Biden’s role with Burisma?” she was asked at another point.

“Yes. As I mentioned, I became aware during the Q&A in the prep for my testimony,” she answered.

Yovanovitch said she believed she learned from press reports that Burisma’s criminal case had been dormant by the time she arrived in Kiev in late summer 2016.

“I’m trying to understand your testimony, because earlier in the day you said that, based on press reports, your understanding was that it was dormant. You may have had additional information it was dormant, or you don’t know?” Rep. Lee Zeldin, R-N.Y., inquired at one point.

“Yes. And all I can tell you is it was a long time ago and it just wasn’t a big issue,” she said.

“So I just want to understand your position. Obviously, you knew that Burisma was dormant, based on press reports. That was what you stated earlier,” Zeldin pressed.

“Uh-huh,” she answered.

“But you’re saying that you may have had other information, but you don’t recall that now?” the lawmaker followed.

“I may have had other information, but I don’t recall how I had that impression …” she answered.

During a nationally televised impeachment hearing a month later in the House, Yovanovitch doubled down on her testimony that Burisma and Hunter Biden weren’t on her radar when she took over as ambassador. “It was not a focus of what I was doing in that six-month period,” she testified anew.

But the memos show Yovanovitch was informed that the criminal cases were actively being settled in fall 2016 and that Burisma and its founder Mykola Zlochevsky were trying to repair the company’s reputation with the U.S. Embassy.  

For instance, a briefing memo prepared for Yovanovitch’s 30-minute meeting Dec. 8, 2016 inside the U.S. Embassy with Burisma representative Karen Tramontano noted that Tramantano worked for the lobbying and strategy firm Blue Star Strategies.

“An Atlantic Council member and Washington veteran, Tramontano informally represents Mykola Zlochevsky, the Burisma CEO, who has long been the target of law enforcement proceedings in Ukraine,” the memo stated.

The memo added that “his [Zlochevsky’s] official US representatives sent a letter in September (attached) asking that the embassy reconsider its position on him.”

The new memos aren’t the first to raise questions about Yovanovitch’s testimony. Last November, Fox News challenged another portion of her testimony denying she had contact with a Democratic House staffer after the network said it obtained emails showing Yovanovitch did in fact have the contact on her private email, and not her official State email.

Sen. Ron Johnson, R-Wis., the chairman of the Senate Homeland Security and Governmental Affairs Committee, has been trying to subpoena documents about Blue Star Strategies and its work for Burisma for weeks but has been blocked by opposition from Republican Sen. Mitt Romney, whose friend serves on the Burisma board. Johnson and Senate Finance Committee Chairman Chuck Grassley, R-Iowa, are now seeking to interview witnesses who previously served at the embassy.

The memos show that both Blue Star Strategies and the Atlantic Council, a nonprofit policy organization, played a role in fall 2016 pressing the U.S. embassy in Kiev to change its position on Burisma and Zlochevsky, whom the embassy viewed as corrupt. Zlochevsky has long denied any wrongdoing.

For instance, after the U.S. Agency for International Development, the State Department foreign funding arm, was told by the embassy’s Deputy Chief of Mission George Kent not to accept a $7,500 donation for Burisma for a clean energy event in Ukraine in late summer 2016, a former U.S. ambassador to Ukraine named John Herbst working for the Atlantic Council reached out.

Herbst asked to meet with Yovanovitch in September 2016 and secured a private dinner date instead with Kent in Ukraine, the memos show. “I will factor into our conversation the Zlochevsky Affair,” Herbst wrote to Kent as he prepared for their dinner.

Kent, long a critic of Burisma, is one of the witnesses Johnson and Grassley are seeking to interview. He went out of his way to mention the Burisma-Hunter Biden connection during one of his  pre-dinner email exchanges with Herbst in which he decried alleged “payoffs” to Ukrainian officials “to do nothing” about the Burisma investigation.

“I have no doubt such arrangements were made, apart from Mr. Zlochevsky (who also put Hunter Biden on the board of his Burisma Energy company),” Kent wrote.

One of the maneuvers Blue Star planned was to take the new Ukrainian prosecutor general Yuriy Lutsenko, who held the fate of Burisma in his hands, to the United States for an event with the Atlantic Council, a move that would have created positive press for Lutsenko in both countries, the memos state.

Kent discouraged doing so and eventually sent a memo to Yovanovitch alerting her that “Lutsenko now likely not to go to DC with Blue Star.”

She followed up with a request to be briefed. “Thanks George. At some point appreciate discussing in more detail some of the folks referenced,” the ambassador wrote in a Sept. 4, 2016 email.

Within a few days, Yovanovitch received a direct letter from one of Burisma’s American lawyers, John Buretta of the Cravath, Swaine and Moore law firm in New York, alerting her that Lutsenko’s office was dropping a long-running corruption investigation of Burisma without filing charges based on a Ukrainian court ruling favorable to Zlochevsky.

Buretta’s letter to Yovanovitch said the allegations against Zlochevsky were “baseless,” and the lawyer asked the U.S. embassy to drop its long-running narrative that Burisma was somehow corrupt.

“We respectfully request that Your Excellency take into consideration these objective facts when considering the narrative promoted by some, and no doubt to be repeated again, in disregard of the facts and the law and the decisions by courts,” Buretta wrote the ambassador.

Yovanovitch immediately forwarded the letter to Kent. “What is this about?” she emailed.

Kent, the memos show, then arranged a special briefing for Yovanovitch later in September to get up to speed. The planned subject of the briefing, the memos show, was “Zlochevsky, Burisma, Cravath and image rehab campaigns.”

One of the topics for the briefing, Kent wrote colleagues on Sept. 16, 2016, was “Zlochevsky/Burisma – asset recovery and past crimes of the Yanu regime as they intersect U.S. corporate/individual interest,” an apparent reference to Hunter Biden’s role with the company.

In a separate email to Yovanovitch, Kent was more explicit about the Biden connection. “This is further to the Blue Star effort to rehabilitate the reputation of their non-client in the US, former ministry of ecologies Zlochevsky, who clearly has retained the services of a blue chip law firm (Cravath) and his energy company Burisma, which in turn has Hunter Biden on its board,” Kent emailed the ambassador.

By November 2016, with Trump now the president-elect, Burisma’s American emissaries were in full motion to get a second corruption case against Burisma — this one involving tax evasion — settled in Ukraine. They succeeded by early January, just days before Trump took office.

The American legal team for Burisma also wanted to improve relations between the gas firm, where Hunter Biden worked, and the U.S. embassy and USAID, the foreign aid arm, the memos show.

The Dec. 8, 2016 briefing memo prepared for Yovanovitch detailed the lobbying efforts by Blue Star.

“USAID spoke to Blue Star Strategies representative Sally Painter by phone and indicated that we would be open to discussing other forms of cooperation between USAID and Burisma, and agreed to meet with Burisma Government and Public Affairs representative Vadim Pozharskyi,” the memo to Yovanovitch explained. “In the November meeting, Pozharskyi briefed USAID on Burisma and the gas sector more broadly but did not propose specific ideas for cooperation.”

U.S. officials directly familiar with the Dec. 8, 2016 meeting confirmed it took place and that Yovanovich attended, but did not know whether the ambassador read the briefing memo beforehand.

After Yovanovitch met with Blue Star’s Tramantano, word surfaced in Ukraine that Zlochevsky had settled the second case against Burisma with a fine, and the Ukrainian news media was up in arms, critical that the owner and his company with Hunter Biden on its board had escaped more serious penalty.

One headline forwarded by email to the ambassador read, “Activists cry foul as courts, prosecutors clear Zlochevsky.”

“Lots of accusations/innuendo,” a State official wrote Yovanovitch and Kent on Dec. 29, 2016, forwarding another news article that alleged Burisma may have dumped natural gas into the market as a political payoff for getting off in the criminal case.

“Mentions Biden’s son and Kwasniewski are on board of Burisma, which allegedly had a subsidiary dump natural gas recently as a way to pay bribes” to Ukrainian officials, the State official wrote Yovanovitch.

A few hours later on that same day, the embassy’s deputy economic counselor followed up with Yovanovitch about the payoff allegations. “The dumping part is true,” the official wrote.

By early January 2017, as Vice President Joe Biden prepared to make a final visit to Ukraine before leaving office, officials around Yovanovitch worried the Burisma scandal might taint the visit. They forwarded news articles to the ambassador, some which were critical of the Bidens.

A Jan. 7, 2017 email from a State official to Yovanovitch, for instance, provided a summary of recent news reports about the impending Biden visit. “Ukrainian political scientists speculate on the purpose of the visit,” the email told Yovanovitch.

One of the speculations quoted in the memo was that Biden “has a business interest” in Ukraine because his son worked for Burisma. “Perhaps the behind the scenes part of the visit can be attributed to the fact that the Ukranian authorities guaranteed some business positions to the former Vice President and his family,” the memo quoted one Ukrainian figure as saying.

Kent had long feared the Bidens had created the appearance of a conflict of interest with the Burisma relationship and testified during impeachment he tried to warn the vice president about his concerns in 2015 but got rebuffed. As the media speculation about Biden’s last visit got more intense and nasty, Kent lamented to colleagues in a Jan. 17, 2017 email that copied Yovanovitch: “Burisma – gift that keeps on giving.”

For the Atlantic Council and Herbst, Kent’s line was prophetically, and literally, true.

On Jan. 13, 2017, Herbst emailed Kent that the Atlantic Council had just accepted a donation from Burisma.

“I wanted you to know before it becomes public that the Atlantic Council decided to accept support for its program from Burisma,” Herbst wrote.

“We looked at the matter closely and weighed it over for a month. Information provided by the Cravath lawyer for Burisma in the London case was an important factor, although some uneasiness remains.”

END

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

Powell rejects using negative rates as a policy tool

“I know that there are fans of the policy, but for now it’s not something that we’re considering,” he said.

https://www.marketwatch.com/story/powell-rejects-using-negative-rates-as-a-policy-tool-2020-05-13

Board of Governors of US Federal Reserve: Current Economic Issues – Chair Jerome H. Powell

The scope and speed of this downturn are without modern precedentsignificantly worse than any recession since World War II. We are seeing a severe decline in economic activity and in employment, and already the job gains of the past decade have been erased…

    The record shows that deeper and longer recessions can leave behind lasting damage to the productive capacity of the economy. Avoidable household and business insolvencies can weigh on growth for years to come. Long stretches of unemployment can damage or end workers’ careers as their skills lose value and professional networks dry up, and leave families in greater debt. The loss of thousands of small- and medium-sized businesses across the country would destroy the life’s work and family legacy of many business and community leaders and limit the strength of the recovery when it comes. These businesses are a principal source of job creation-something we will sorely need as people seek to return to work. A prolonged recession and weak recovery could also discourage business investment and expansion, further limiting the resurgence of jobs as well as the growth of capital stock and the pace of technological advancement. The result could be an extended period of low productivity growth and stagnant incomes…  https://www.federalreserve.gov/newsevents/speech/powell20200513a.htm

Fed Chief Says More Relief Spending May Be ‘Costly, But Worth It’

Additional government spending may be necessary to avoid long-lasting fallout from the coronavirus pandemic, Federal Reserve Chairman Jerome Powell said Wednesday…

https://www.npr.org/sections/coronavirus-live-updates/2020/05/13/855201084/fed-chief-says-more-relief-spending-may-be-costly-but-worth-it

Powell effectively stated that there is little that the Fed can do; so, he shifted blame to politicians.

Conditioned traders bought the plunge when the NYSE opened.  ESMs soared to 2867.25 by 10:34 ET.  Alas, another equity/ESM plunged appeared; ESMs tumbled to 2829.50 at 11:26 ET, 4 minutes prior to the European close.  Yes, you can assume European traders were NYSE opening dip buyers and they had difficulty exiting their holdings before European bourses closed.

The Powell decline accelerated after the European close.  ESMs tumbled to 2792.75 at 12:19 ET.  A Noon Balloon materialized; but it ended in 30 minutes.  ESMs and stocks then vacillated until the last-hour manipulation appeared.  It failed immediately.  Another attempt appeared with 30 minutes remaining.  It ended in 5 minutes. The final rally effort appeared with 10 minutes left in the session.

Good news from Germany on Covid-19 might have contributed to the overnight ESM rally.

Germany’s coronavirus reproduction rate [“R”] dips below critical threshold [1] https://reut.rs/2zxDdae

German Judges Strike Back, Say ECB Isn’t Master of Universe

“The message to the ECB is actually homeopathic,” Huber, 61, said Tuesday in Sueddeutsche Zeitung. “It shouldn’t see itself as the ‘Master of the Universe.’ An institution like the ECB, which is only thinly legitimized democratically, is only acceptable if it strictly adheres to the responsibilities assigned to it.”

https://www.bloomberg.com/news/articles/2020-05-12/ecb-isn-t-master-of-the-universe-german-top-judge-says

Since Trump’s election, the MSM has tried to frame almost every special election as a referendum on Trump.  The few times that Dems won, the MSM heralded the demise of Trump.  On Tuesday, Republicans, as expected, won the special election for Wisconsin’s 7th Congressional District.  However, the 14.4-point margin was unexpected.  A huge surprise appeared in big-blue California.

In the 2018 election, the Dem candidate won CA-25 by 9 points.  On Tuesday, the GOP candidate won by 12 points [mail ballots pending].  This is the first time that the GOP has flipped a Dem Congressional seat in California since 1998.  Dems poured an enormous amount of resources into the race, including Governor Newsom allowing a polling place in a heavily Democratic district – a usurpation of his mail-in vote edict.  Trump and Repubs screamed ‘Dems are trying to rig’ the CA-25 special election.

You can be sure that Democratic leaders nationally, especially governors and burgermeisters that have instated virtual house-arrest edicts, are now trying to ascertain if CA-25 is an aberration or if it signifies that people are fed up with authoritative government.  PS – The MSM is ignoring the CA-25 story.

If Obamagate worsens, and the odds are absurdly high that it will, Dems will have some very tough decisions.  How hard do we fight?  Who do we save?  How do I save myself?  Does Joe have to go?

Vox on CA-25: The special election race is a likely bellwether for this fall’s general election

Because it’s expected to be close, the race is seen as a national bellwether for this fall… https://www.vox.com/policy-and-politics/2020/5/12/21255915/california-special-election-campaign-katie-hill-house-seat

Pennsylvania health official moved mother from nursing home as deaths skyrocketed

The health official responsible for overseeing nursing homes in Pennsylvania — where nearly 70 percent of the state’s coronavirus-related deaths have occurred — moved her elderly mother out of one of the facilities as deaths skyrocketed, a report said… In March, Levine ordered long-term care facilities in the state to continue to accept coronavirus patients who had been discharged from hospitals, but who were unable to return to their homes…[Laws and edicts are for the little people!]

https://nypost.com/2020/05/13/pennsylvania-health-official-moved-mother-from-nursing-home/

High-risk states are seeing fewer new coronavirus cases

The first stages of reopening haven’t produced a surge in coronavirus cases in most states — at least, not yet…  https://www.axios.com/coronavirus-cases-map-high-risk-states-8ceeaa05-cc07-4e8b-b9f4-df3a3315f143.html

Dr. Anthony Fauci Salary: Coronavirus Head Earned $384,000 in 2018 [Shutdown the economy. What do I care?]  https://www.ibtimes.com/dr-anthony-fauci-salary-coronavirus-head-earned-384000-2018-295398

Foreign Affairs: Sweden’s Coronavirus Strategy Will Soon Be the World’s

Herd Immunity Is the Only Realistic Option—the Question Is How to Get There Safely

    Sweden asked its citizens to practice social distancing on a mostly voluntary basis. Swedish authorities imposed some restrictions designed to flatten the curve: no public gatherings of more than 50 people, no bar service, distance learning in high schools and universities, and so on. But they eschewed harsh controls, fines, and policing

https://www.foreignaffairs.com/articles/sweden/2020-05-12/swedens-coronavirus-strategy-will-soon-be-worlds

@CBSNews: President Trump says he was “surprised” by Dr. Fauci’s warning about reopening schools during the pandemic and says it’s “not an acceptable answer” http://cbsnews.com/live

Last night: IDPH [Illinois] working to remove COVID-19 deaths that occurred unrelated to diagnoses from data totals, Ezike says [Suddenly seeking the truth; need excuse to re-open Illinois?]

https://www.shawmediaillinois.com/2020/05/12/idph-working-to-remove-covid-19-deaths-that-occurred-unrelated-to-diagnoses-from-data-totals-ezike-says/adzwefs/

Last night: Wisconsin Supreme Court strikes down “Safer-at-Home” order

“Palm’s [WI Sec of State] Emergency Order 28 is declared unlawful, invalid, and unenforceable.”

https://legalinsurrection.com/2020/05/wisconsin-supreme-court-strikes-down-safer-at-home-order/

NYC health head rejected NYPD mask plea: ‘I don’t give two rats’ asses about your cops’ [March]

https://nypost.com/2020/05/13/nyc-health-commissioner-wouldnt-supply-nypd-with-masks/

Jeffrey Gundlach @TruthGundlach: Mayor Garcetti said “We’ll never be completely open until we have a cure.”  It was reported he said “The city of Los Angeles won’t fully re-open until there is a vaccine”.   A cure is not a vaccine. Why not just report the truth, media?

Today – Jobless Claims will dictate early US trading. Initial Jobless Claims are expected to be 2.5m and Continuing Claims 25.0m.  Given any chance, the usual suspects will try to foment a rally.  ESMs opened +12.00 last night on the Wisconsin Supreme Court ruling that opens Wisconsin.

CBS’s Catherine Herridge blew up the Internet yesterday afternoon with this:

CBS_Herridge SCOOP @CBSNews obtains @RichardGrenell notification to congress declassified “unmasking list” Flynn between late 2016 and January 2017 [Biden was on the list (1/12/17)!!!!]

https://twitter.com/CBS_Herridge/status/1260635872271228928/photo/3

https://twitter.com/CBS_Herridge/status/1260635872271228928/photo/1

Grenell releases list of officials who sought to ‘unmask’ Flynn: Biden, Comey, Obama intel chiefs among them

https://www.foxnews.com/politics/grenell-releases-list-of-officials-who-sought-to-unmask-flynn-biden-comey-obama-intel-chiefs-among-them

Biden was at the WH meeting on January 5, 2017 at which Obama purportedly unleased an operation against Flynn.  One week later, Joe asked the NSA to unmask Flynn’s communications.  Two days ago, Biden told George Stephanopoulos on ABC that he knew nothing about the investigation. After George pressed Joe about being in the meeting, Biden changed his response to: I was aware that there was — that they had asked for an investigation but that’s all I know about it…”  Bernie Sanders, come on down!

In A Surprise Send-Off, Obama Awards Biden Presidential Medal of Freedom January 12, 2017

[The same day that Biden made the request to unmask Gen. Flynn’s communications. Some coincidence!]

https://www.npr.org/2017/01/12/509545778/in-surprise-send-off-president-obama-awards-biden-presidential-medal-of-freedom

@ChadPergram: Biden campaign: “The only people with questions to answer are Grenell, Sen. Grassley, and Sen. Johnson for their gross politicization of the intelligence process.” [Transparent Strawman attack]

Obama Chief of Staff Denis McDonough Unmasked General Flynn in January [5] 2017

https://www.thegatewaypundit.com/2020/05/huge-obama-chief-staff-denis-mcdonough-unmasked-general-flynn-january-2017/

The MSM ignored or downplayed unmasking news, including CBS – and it was their scoop! PS – It is a crime to leak unmasking information or to use it for political gain.

@adamhousley: There was NSA product being gathered on General Michael Flynn before the Kislyak phone callThat is flat out spying. Also…this is just PART of the list Ezra Cohen found a couple of days after Flynn was fired…Flynn is the tip of the iceberg…this gets worse…

     More: I’m told don’t fixate on the requestor. It is possible these were just the accessor codes being used which is a grey area. For example Powers could have been used by Rhodes. Biden may have been his Nat Security Advisor…either way it implicates them.  It’s all about the timeline to prove a man, an innocent man, was set up. Biden, Brennan unmasking request came on the same day as Ignatius column on the General Flynn-Kislyak call. This….is…not….good.

Ex-NSC @RichHiggins_DC: As you folks look at the new unmasking info on Flynn a couple of points: Point 1.) This was the start point of the discovery Point 2.) it only gets worse from here…much worse.  The info revealed today was found by Ezra Cohen executing an audit that was ordered by Gen Flynn

Prominent sports handicapper @phillygodfather: **ALL OUT BURIAL ALERT**   It’s time I bet the HOUSE on @realDonaldTrump in 2020.

CNN Poll Shows Trump Crushing Biden in Battleground States by seven full points, 52 to 45 percent.

https://www.breitbart.com/2020-election/2020/05/13/nolte-cnn-poll-shows-trump-crushing-biden-in-battleground-states/

Dems should put Biden in quarantine ASAP.  If some reporter presses Joe on the unmasking, Biden could indignantly exclaim, “You’re damn right I ordered the Code Red!”

Fox’s @ChadPergram: Sen. Rand Paul (R-KY) says he is writing to acting DNI Rick Grenell, inviting him to testify next week about the unmasking of Michael Flynn. Paul has questions about what President Obama and former Vice President Biden knew. Paul chairs the government oversight subcommittee.

Obamagate: Obama Must Testify- The question: “What did the President know – and when did he know it?” by ex-Ronald Reagan aide Jeffrey Lord

     Obamagate has arrived. And it is now, finally, time to ask the legendary question from the Senate Watergate Committee’s Senator Howard Baker that was asked in the day about President Richard Nixon.

https://thejeffreylord.com/obamagate-obama-must-testify/?utm_source=socialflow

@TomFitton: Each improper “unmasking” targeting Flynn is a seditious attack on our constitutional republic. Obama gang used NSA intelligence resources like “Google” to search for dirt on its political opponents. Worse than Watergate [GOOG CEO Schmitt visited Obama WH at least 427 times!]

https://thehill.com/policy/technology/277251-report-highlights-hundreds-of-meetings-between-white-house-and-google

@RandPaul: Remember we went through this thing called impeachment? They said President @realDonaldTrump was using the govt to go after a political opponent? This is VP Biden using the spying powers of the US to go after a political opponent. He’s caught red-handed here.”

@alexsalvinews: Fox News’ Brit Hume calls the media’s coverage of alleged collusion with the Trump campaign and Russia the “worst journalistic fiasco” he’s seen in his 50-year career:

https://twitter.com/alexsalvinews/status/1260421578413821954

@JasonMillerinDC: Beyond parody: CNN taps [teenage] Greta Thunberg for ‘expert’ coronavirus panel

Impeachment Boomerang: Contacts exposed between US embassy, Hunter Biden-connected Ukraine firm Ambassador’s impeachment testimony omitted mention of Burisma meetings, letters.

   During President Trump’s impeachment, former U.S. Ambassador Marie Yovanovitch testified to Congress that she knew little beyond an initial briefing and “press reports” about Burisma Holdings, the Ukrainian natural gas firm that had hired Vice President Joe Biden’s son Hunter and was dogged by a corruption investigation…

    But newly unearthed State Department memos obtained under the Freedom of Information Act show Yovanovitch’s embassy in Kiev, including the ambassador herself, was engaged in several discussions and meetings about Burisma… She also met directly with a representative for Burisma in her embassy office, less than 45 days before Trump took office, a contact she did not mention during her impeachment deposition…

The discussions about Burisma inside Yovanovitch’s embassy were so extensive, in fact, that they filled more than 160 pages of emails, memos and correspondence in fall 2016 alone, according to the State Department records obtained under FOIA by the conservative group Citizens United…

https://justthenews.com/accountability/russia-and-ukraine-scandals/impeachment-boomerang-contacts-exposed-between-us

Well that is all for today

I will see you FRIDAY night.

 

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