MAY 18//INTERESTING RESULTS ON 8 HEALTHY SUBJECTS PROPELS MODERNA AND THE STOCK MARKET//DOW UP 911.95 POINTS//NASDAQ UP 220 POINTS//GOLD WHACKED BY $15.40 DOWN TO $1731.80//SILVER UP 40 CENTS//PALLADIUM AND PLATINUM ALSO UP//COMEX GOLD NOW IS WITNESSING A HUGE 31.6TONNES STANDING FOR METAL IN MAY (OFF MONTH))/GATA ISSUES LETTER TO THE CFTC///SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1731.80  DOWN $15.40   The quote is London spot price

 

 

 

 

 

Silver:$17.12  UP 48 CENTS (London spot closing price)

 

Closing access prices:  London spot

 

 

i)Gold : $1732.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.00//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

MAY COMEX GOLD:  XXX

 

JUNE GOLD:  $1733.50  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $1.70.//PREMIUMS WENT UP AGAIN

 

CLOSING SILVER FUTURE MONTH

 

SILVER JUNE COMEX CLOSE;   $17.45…1:30 PM.//SPREAD SPOT/(LONDON) VS FUTURE JUNE:  33 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: 48/552

issued:  186

EXCHANGE: COMEX
CONTRACT: MAY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,753.400000000 USD
INTENT DATE: 05/15/2020 DELIVERY DATE: 05/19/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 1
118 H MACQUARIE FUT 237
132 C SG AMERICAS 2
159 C ED&F MAN CAP 5
323 H HSBC 2
657 C MORGAN STANLEY 32
657 H MORGAN STANLEY 273
661 C JP MORGAN 186 48
686 C INTL FCSTONE 18
690 C ABN AMRO 137
737 C ADVANTAGE 59 42
800 C MAREX SPEC 29 20
905 C ADM 13
____________________________________________________________________________________________

TOTAL: 552 552
MONTH TO DATE: 9,372

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 552 NOTICE(S) FOR 55,200 OZ (1.8600 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  9372 NOTICES FOR 937,200 OZ  (29.150 TONNES)

 

 

SILVER

 

FOR MAY

 

 

123 NOTICE(S) FILED TODAY FOR  615,000  OZ/

total number of notices filed so far this month: 8861 for 44,305,000 oz

 

BITCOIN MORNING QUOTE  $9654 DOWN 41 

 

BITCOIN AFTERNOON QUOTE.: $9700 UP 20.00

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $15.40 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD// A PAPER DEPOSIT OF 9.06 TONNES INTO THE GLD//

 

GLD: 1,113.78 TONNES OF GOLD//

 

 

WITH SILVER UP  48 CENTS TODAY: AND WITH NO SILVER AROUND

WOW!!!

TWO HUGE CHANGE IN SILVER INVENTORY AT THE SLV//: A PAPER DEPOSIT OF 8.39 MILLION OZ INTO THE SLV..IN A MID AFTERNOON DEPOSIT

AND THEN:  LATE IN THE AFTERNOON:  8.109 MILLION OZ// TOTAL DEPOSIT: 16.500 MILLION OZ//

RESTING SLV INVENTORY TONIGHT:

SLV: 440.157  MILLION OZ./

 

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE  BY A HUGE SIZED 5108 CONTRACTS FROM 141,211 UP TO 146,319 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE HUGE SIZED GAIN IN  OI OCCURRED WITH  OUR VERY STRONG 81 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 SMALL INCREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY. WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 6427 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 STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   MARCH:  00 AND MAY: 0 AND JULY: 1178  AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1178 CONTRACTS. WITH THE TRANSFER OF 1178 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 1178EFP CONTRACTS TRANSLATES INTO 5.89 MILLION OZ  ACCOMPANYING:

1.THE 81 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

45.455 MILLION OZ INITIALLY STANDING FOR MAY

 

FRIDAY, 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 81 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 STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL GAIN IN SILVER OZ STANDING FOR MAY,3) CONSIDERABLE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 6286 CONTRACTS OR 31.43 MILLION OZ ON 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:

9500 CONTRACTS (FOR 12 TRADING DAYS TOTAL 9500 CONTRACTS) OR 47.50 MILLION OZ: (AVERAGE PER DAY: 791 CONTRACTS OR 3.783 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 47.50 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 6.78% 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:          1,036.35 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:                   47.50 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 HUGE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 5249, WITH OUR STRONG 81 CENT GAIN IN SILVER PRICING AT THE COMEX ///FRIDAY THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1178 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A GOOD SIZED OI CONTRACTS ON THE TWO EXCHANGES:  6286 CONTRACTS (WITH OUR 81 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1178 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A HUGE SIZED INCREASE OF 5108 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A HUGE 81 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $16.64 // FRIDAY’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: 123 NOTICE(S) FOR  615,000 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  45.455 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 GOOD SIZED 3875 CONTRACTS TO 525,627 AND CLOSER TO OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE GOOD SIZED GAIN OF COMEX OI OCCURRED WITH OUR STRONG  COMEX GAIN IN PRICE  OF $16.30 /// COMEX GOLD TRADING// FRIDAY// WE  HAD STRONG BANKER SHORT COVERING , A HUGE 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 LARGE GAIN IN THE PAPER PRICE OF GOLD.

WE HAD A VOLUME OF 4  4 -GC CONTRACTS//OPEN INTEREST  11

 

WE GAINED A STRONG SIZED 7505 CONTRACTS  (23.34 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 3630 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 0. MAY: 0, AND JUNE 2780.; AUG 850 AND ALL OTHER MONTHS ZERO//TOTAL: 3680.  The NEW COMEX OI for the gold complex rests at 525,368. 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  GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 7,505 CONTRACTS: 4134 CONTRACTS INCREASED AT THE COMEX AND 3630 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 7505 CONTRACTS OR 23.34 TONNES. FRIDAY, WE HAD A GAIN OF $16.30 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A VERY STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 23.34 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 $16.30).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL  (SEE BELOW).

4 GC VOLUME: 4  // open interest 11 

 

 

END

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A GOOD SIZED INCREASE IN EXCHANGE FOR PHYSICALS  (3630) ACCOMPANYING THE GOOD SIZED GAIN IN COMEX OI  (3875 OI): TOTAL GAIN IN THE TWO EXCHANGES:  7505 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) GOOD COMEX OI GAIN,  AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//FRIDAY

 

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 : 35,547 CONTRACTS OR 3,554,700 oz OR 110.57 TONNES (12 TRADING DAYS AND THUS AVERAGING: 2962 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 12 TRADING DAY(S) IN  TONNES: 110.57 TONNES

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

THUS EFP TRANSFERS REPRESENTS 110.57/3550 x 100% TONNES =3.11% 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   2676.92  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:                     110.57 TONNES (EFP ISSUANCE STILL LOW// PREMIUM COST TO THE BANKERS IS HUGE..SO ISSUANCE IS LESS)

 

 

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

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

1.Today, we had the open interest at the comex, in SILVER, ROSE BY A HUGE SIZED 5108 CONTRACTS FROM 141,211 UP TO 146,319 AND CLOSER TO 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) CONSIDERABLE BANKER SHORT COVERING , 2) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A GOOD INCREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 1178 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: 1178 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1178 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 5108 CONTRACTS TO THE 1178 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  HUGE GAIN OF 6286 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 31.43 MILLION  OZ!!! OCCURRED WITH THE 81 CENT GAIN IN PRICE///

 

 

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 81 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A GOOD SIZED 1178 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)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 6.96 POINTS OR 0.21%  //Hang Sang CLOSED UP 137.30 POINTS OR 0.48%   /The Nikkei closed UP 96.76 POINTS OR 0.48%//Australia’s all ordinaires CLOSED UP 1.18%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1146 /Oil UP TO 32.10 dollars per barrel for WTI and 34.52 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1146 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1335 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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 GOOD SIZED 3875 CONTRACTS TO 525,368 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 SMALLISH COMEX OI GAIN WAS SET DESPITE OUR STRONG GAIN OF $16.30 IN GOLD PRICING /FRIDAY’S COMEX TRADING//). WE ALSO HAD A FAIR EFP ISSUANCE (3630 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 , FAIR COMEX OI GAIN// …  AS WE ENGINEERED A GOOD GAIN ON TWO EXCHANGES OF 13,208 CONTRACTS.

WE AGAIN HAD 4    4 -GC VOLUME//open interest rises TO 11

 

 

 

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 3630 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 0, MAY: 0  JUNE : 2780 AND 850 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 3630 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:  7,505 TOTAL CONTRACTS IN THAT 3630 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED 3875 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 CONSIDERABLE 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 $16.30)AND, THEY WERE  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A CONSIDERABLE 23.34 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 7505 CONTRACTS OR 750,500 OZ OR 23.34 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:  525,368 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 52.53 MILLION OZ/32,150 OZ PER TONNE =  1637 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1637/2200 OR 74.40% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 287,122 contracts//volume very low

CONFIRMED COMEX VOL. FOR YESTERDAY230,863 contracts// volumes very low

MAY 18 /2020

MAY GOLD CONTRACT MONTH

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
12,351.475 oz
includes 15
kilobars
Deposits to the Dealer Inventory in oz 18,210.407 oz

Brinks

Manfra

includes 3 kilobars

 

 

 

Deposits to the Customer Inventory, in oz  

498,569.662

OZ

BRINKS

HSBC:

JPM

includes

 

2,000 kilobars

HSBC

 

 

 

No of oz served (contracts) today
552 notice(s)
 55,200 OZ
(1.717 TONNES)
No of oz to be served (notices)
783 contracts
(78,300 oz)
2.43 TONNES
Total monthly oz gold served (contracts) so far this month
9372 notices
937,200 OZ
29.150 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:  96.453 oz  3 kilobars

ii) Into Manfra:  18,113.954 oz

 

 

total dealer deposits: 18,210.407   oz

total dealer withdrawals: nil oz

we had 3 deposits into the customer account

i) Brinks:  3800.38  oz
ii) Into HSBC: 64,302.000 oz  (2000 kilobars)

2nd day in a row , HSBC has added exactly 2000 kilobars

iii) JPMorgan:  430,467.282 oz

 

 

 

 

 

 

 

 

total deposits: 498,569.662    oz

 

 

we had 2 gold withdrawals from the customer account:

i) Out of Brinks:  482.25 oz  (15 kilobars)

ii) Out of HSBC: 11,869.225

 

 

 

 

 

 

 

total gold withdrawals;  12,351.475   oz

We had 4  kilobar transactions  +

 

We had 8  4 KC bar volume transactions/7 contracts oi

 

 

 

 

ADJUSTMENTS: 2 //    

 

customer to dealer account

From HSBC  50,637.825 oz
and JPM:  964.54  oz  30 kilobars

 

 

 

 

 

 

The front month of May registered a LARGE total of 1335 oi contracts for a LOSS of 238 contracts. We had 920 notices filed upon yesterday so we GAINED 682 contracts or an additional 68,200 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 LOSS OF 3360 contracts DOWN to 257,707 contracts. July had a GAIN of 18 OI contracts  and thus 287 contracts  outstanding.  Next comes August another strong delivery month and here the OI ROSE by 4926 contracts up to 165,420 contracts.

June is not falling in OI fast enough.  It looks like we are going to have another dilly amount of gold oz standing for June.

 

 

We had 552 notices filed today for 55,200 oz

 

FOR THE  MAY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 186 notices were issued from their client or customer account. The total of all issuance by all participants equates to 552 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 48 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 (9372) x 100 oz , to which we add the difference between the open interest for the front month of  May. (1335 CONTRACTS ) minus the number of notices served upon today (552 x 100 oz per contract) equals 1,015,500 OZ OR 31.58 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 (9372)x 100 oz + (1335 OI) for the front month minus the number of notices served upon today (552) x 100 oz which equals 1,015,500 oz standing OR 31.58 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 682 contracts or an additional 68200 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 222.21 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 31.58 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  7,756,893.391 oz or 241.27  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: 7,210,956.79  (224.29 tonnes)
true registered gold  (total registered – pledged tonnes  7,210,956.79 (224.29 tonnes)
total eligible gold:  16,343,643.920 oz (508.35 tonnes)

total registered, pledged  and eligible (customer) gold;   24,110.537.311 oz 749.93 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   128.632 tonnes

total gold net of 4 GC:  621.30 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 18/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A HUMONGOUS SIZED 5108 CONTRACTS FROM 141,211 UP TO 146,319(AND CLOSER TO 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 HUGE OI COMEX GAIN TODAY OCCURRED WITH OUR VERY STRONG 81 CENT GAIN IN PRICING//FRIDAY. WE GAINED A TOTAL OF 6286 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A CONSIDERABLE ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL INCREASE IN SILVER OZ STANDING AT THE COMEX, 3)  CONSIDERABLE BANKER SHORT COVERING , 4) ZERO LONG LIQUIDATION,5) HUMONGOUS COMEX GAIN IN OI AND ALL OF THIS OCCURRED WITH OUR STRONG 81 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MAY

THE FRONT DELIVERY OF MAY SAW  353 OPEN INTEREST CONTRACTS STANDING  AND THUS WE HAD A LOSS OF 25 CONTRACTS.  We had 29 notices filed yesterday so we GAINED 4 contracts or an additional 20,000 oz will stand at the comex as these guys refused to  morph into London based forwards and thus they negated  a fiat bonus for their efforts..

 

 

AFTER MAY WE HAVE THE NON ACTIVE MONTH OF JUNE.  HERE JUNE SAW A LOSS OF 17 CONTRACTS RESTING AT 448.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI GAINED 3983 CONTRACTS UP TO 111,605 CONTRACTS

 

 

We, today, had  123 notice(s) FILED  for 615,000 OZ for the APRIL, 2019 COMEX contract for silver

 

MAY 18/2020

MAY SILVER COMEX CONTRACT MONTH

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 1,237,178.310 oz
Brinks
CNT
Scotia

 

 

Deposits to the Dealer Inventory
584,184.000 oz
CNT

 

Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
123
CONTRACT(S)
(615,000 OZ)
No of oz to be served (notices)
230 contracts
 1,150,000 oz)
Total monthly oz silver served (contracts)  8861 contracts

44,305,000 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 1 deposit into the dealer:
i) Int CNT: 584,184.000 oz ??

total dealer deposits: 584,184.000 oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 0 deposits into the customer account

into JPMorgan:   0

ii)into everybody else; 0

 

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

JPMorgan now has 160.819 million oz of  total silver inventory or 51.22% of all official comex silver. (160.819 million/314.220 million

 

total customer deposits today: 0    oz

we had 3 withdrawals:

i) Out of Brinks:   300,469.09  oz

ii) Out of CNT:  335,805.53 oz

iii) Out of Scotia: 600,903.09

 

total withdrawals; 1,237,178.310     oz

We had 0 adjustments

 

 

total dealer silver: 91.192 million

total dealer + customer silver:  313.568 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the MAY 2020. contract month is represented by 123 contract(s) FOR 615,000 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 8861 x 5,000 oz = 44,305,000 oz to which we add the difference between the open interest for the front month of MAY.(353) and the number of notices served upon today 123 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 8861 (notices served so far) x 5000 oz + OI for front month of MAY (353)- number of notices served upon today (29) x 5000 oz of silver standing for the MAY contract month.equals 45,455,000 oz.

We GAINED 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: 91,529 CONTRACTS //volume very high

 

 

FOR YESTERDAY: 88,770 CONTRACTS..,CONFIRMED VOLUME//extremely high volume

 

 

YESTERDAY’S CONFIRMED VOLUME OF 88,770  CONTRACTS EQUATES to 443 million  OZ 63.4% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 0.65% ((MAY 18/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO +0.26% to NAV:   (MAY 18/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.65%

(courtesy Sprott/GATA

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

NAV 16.29 TRADING 16.21///NEGATIVE 0.47

END

 

 

And now the Gold inventory at the GLD/

MAY 18/WITH GOLD DOWN $15.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A PAPER DEPOSIT OF 9.06 TONNES./INVENTORY RESTS AT 1113.78 TONNES

MAY 15.WITH GOLD UP $16.30 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 12.58 TONNES/  INVENTORY RESTS AT 1104.72 TONNES

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 18/ GLD INVENTORY 1111.78 tonnes*

LAST;  822 TRADING DAYS:   +167.48 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 722 TRADING DAYS://+342.62  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

MAY 18/WITH SILVER UP ANOTHER 48 CENTS TODAY: TWO BIG CHANGES IN SILVER INVENTORY AT THE SLV I.E. 2 PAPER DEPOSIT OF ( I) 8.39 MILLION OZ AND THEN ( 2) 8.109 MILLION OZ//INVENTORY RESTS AT 432.048 MILLION OZ// (TOTAL DEPOSITS 16.500 MILLION OZ///)

MAY 15/WITH SILVER UP 81 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV: /INVENTORY RESTS AT 423.65 MILLION OZ.

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 18.2020:

SLV INVENTORY RESTS TONIGHT AT

440.157 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 3.00/ and libor 6 month duration 0.66

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

GOLD LENDING RATE: -2.34%

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

 

XXXXXXXX

12 Month MM GOFO
+ 2.06%

LIBOR FOR 12 MONTH DURATION: 0.76

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.30

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

 

end

 

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

GATA asks CFTC if it has ever audited Comex gold

 Section: 

10:25a ET Monday, May 18, 2020

Dear Friend of GATA and Gold:

GATA today asked the U.S. Commodity Futures Trading Commission whether it has ever audited the gold reported to it by the New York Commodities Exchange as being eligible or registered for sale and delivery on the exchange.

In a letter to commission Chairman Heath P. Tarbert, your secretary/treasurer and GATA consultant Harvey Organ wrote:

“Recent turmoil in the gold markets in the United States and the United Kingdom has raised questions about the integrity of certain market participants, including the New York Commodities Exchange (Comex) and the London Bullion Market Association.”

 

The letter asked:”– Has your commission ever audited the gold kept in Comex-approved vaults and reported to the commission as registered or eligible for sale and delivery?

“– If such audits have been conducted, when and what did they find?

“– Who conducted these audits?

“– Were these audits ever made public? If so, when and how? May we see them?

“– Are future audits planned? If so, when and who will conduct them?”

In recent years GATA has put similar critical questions to the CFTC without getting answers. Several of those questions have been pressed by U.S. Rep. Alex X. Mooney, R-West Virginia, but the commission has evaded his inquiries too.

Especially avoided lately by the commission are whether it is is aware of futures market trading by the U.S. government, its agents, and other governments, and whether it has jurisdiction over manipulative trading by the U.S. government:

http://gata.org/node/20089

While the commission refuses to answer whether it is aware of futures trading by governments, filings by CME Group, operator of the New York Commodities Exchange, with the CFTC and the U.S. Securities and Exchange Commission show that CME Group provides special discounts to governments and central banks for surreptitious futures trading:

http://gata.org/node/18925

GATA’s new letter to the CFTC is posted in PDF format here:

http://gata.org/files/GATALetter-CFTC-Comex-05-18-2020.pdf

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

For the first time, hedge fund giants like Paul Singer, Crispen Odey  and David Einhorn are lining up behind gold

(Bloomberg/GATA)

Hedge fund luminaries are lining up behind gold again

 Section: 

By Jack Farchy, Nishant Kumar, and Ranjeetha Pakiam
Bloomberg News
Sunday, May 17, 2020

Forget plunging oil prices and a collapse in consumer spending. Some of the most-prominent investors are raising alarm bells over the looming threat of inflation, and turning to gold for protection.

Money printing by central banks and vast state stimulus packages are rekindling interest in one of the oldest stores of wealth. It’s a revival of a trade that became popular in the wake of the 2008 crisis, as money managers piled into gold for similar reasons, but were ultimately disappointed as inflation was kept in check.

Yet the unprecedented scale of the government response to the coronavirus crisis is feeding the argument that this time will be different.

… 

Hedge fund luminaries including Paul Singer, David Einhorn, and Crispin Odey are among those bullish on gold, according to recent letters to investors. So are large asset managers like Blackrock Inc. and Newton Investment Management.

“Gold is the only escape from global monetizing,” Odey wrote. Gold futures were the third-largest position held by his flagship Odey European Inc. fund at the end of March. “In the short term, the money will be made on the inflation bet.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2020-05-17/hedge-fund-luminaries…

end

The USA destroyed one rival to its currency but there are still others.  Andrew Maguire’s Kinesis which is backed by gold will live forever.

(Forbes.com/GATA)

Billy Bambrough: The U.S. just destroyed a potential dollar rival — Is bitcoin next?

 Section: 

By Billy Bambrough
Forbes.com, Jersey City, New Jersey
Sunday, May 17, 2020

The U.S. Federal Reserve and President Donald Trump are fearful of challengers to the almighty dollar.

Bitcoin, a new form of digital money called cryptocurrency that is scarce and exists independently of government, heralded a wave of technological rivals to the dollar — with Facebook creating libra and China digitalizing its yuan.

This week the U.S. financial regulator shut down messaging app Telegram’s decentralized crypto project — igniting fears that the U.S. could again try to destroy bitcoin if it becomes a threat to the dollar’s shakey supremacy.

Following a long-running battle with the U.S. Securities and Exchange Commission (SEC), Telegram walked away from its blockchain-based Telegram Open Network (TON) and its native cryptocurrency, gram.

“Unfortunately, a U.S. court stopped TON from happening,” Telegram’s founder and chief executive Pavel Durov revealed this week, drawing a line under the embattled two-and-a-half year project.

Back in 2018, Telegram, now based in Dubai and boasting 400 million monthly active users, raised a staggering $1.7 billion from almost 200 private investors to fund development of the TON network and gram token.

The SEC blocked Telegram’s much-hyped public fundraiser just two months later. In October last year, the SEC ordered Telegram to halt the sale of gram tokens, finding it in violation of the Securities Act.

This week the SEC hammered home the final nail in the TON coffin.

“The U.S. court declared that grams couldn’t be distributed not only in the United States, but globally,” Durov wrote. …

… For the remainder of the commentary:

https://www.forbes.com/sites/billybambrough/2020/05/17/the-us-just-destr…

* * *

end

iii) Other physical stories:

Nevada: The Real ‘Golden’ State

Thanks to the world famous silver discoveries of the 19th century that unveiled Nevada’s precious metal potential, the state today is known by many as “The Silver State”.

However, as Visual Capitalist’s Nichaolas LePan notes, it’s possible that nickname may need to be updated. In the last few decades, Nevada has become a prolific gold producer, accounting for 84% of total U.S. gold production each year.

Today’s infographic from Corvus Gold showcases why Nevada may have a better case for deserving California’s nickname of the “Golden State”: we look at the state’s gold production, exploration potential, and even its rich history.

A Defining Era for the American West

The discovery of the Comstock silver lode in 1859 sparked a silver rush of prospectors to Nevada, scrambling to stake their claims. News of the discovery spread quickly throughout the United States, drawing thousands into Nevada for one of the largest rushes since the California Gold Rush in 1849. Mining camps soon thrived and eventually became towns, a catalyst that helped turn the territory into an official state by 1864.

Interestingly, many of the early mines also produced considerable quantities of gold, indicating there was more to the state than just silver.

  1. The Comstock Lode: 8,600,000 troy ounces (270t) of gold until 1959
  2. The Eureka district: 1,200,000 troy ounces (37t) of gold
  3. The Robinson copper mine: 2,700,000 troy ounces (84t) of gold

The Comstock Lode is notable not just for the immense fortunes it generated but also the large role those fortunes had in the growth of Nevada and San Francisco.

In fact, there was so much gold and silver flowing into San Francisco, the U.S. Mint opened a branch in the city to safely store it all. Within the first year of its operation, the San Francisco Mint turned $4 million of gold bullion into coins for circulation.

While California gold rushes became history, Nevada mining was just beginning and would spur the development of modern industry. In 2018, California produced 140,000 troy ounces of gold, just a fraction of the 5.58 million oz coming out of Nevada’s ground.

Nevada Gold Mining Geology: Following the Trends

There are three key geological trends from where the majority of Nevada’s gold comes from.

  1. Cortez Trend
  2. Carlin Trend
  3. Walker Lane Trend

Together these trends contributed nearly 170 million ounces of gold produced in Nevada between 1835 and 2018, making it the United States’ most productive gold jurisdiction, if not the world’s.

The bulk of production comes from the Cortez and Carlin Trends, where mines extract low grade gold from a particular type of mineral deposit, the Carlin Type Gold deposit. It was the discovery and technology used for processing these “invisible” deposits that would turn Nevada into the golden powerhouse of production.

Today, the world’s largest gold mining complex, Nevada Gold Mines, is located on the Carlin Trend. The joint venture between Barrick and Newmont comprises eight mines, along with their infrastructure and processing facilities.

Despite the prolific production of modern mines in the state, more discoveries will be needed to feed this production pipeline—and discoveries are on the decline in Nevada.

Looking to the Future Through the Past: The Walker Lane Trend

The future for gold mining in Nevada may lie in the Walker Lane Trend. This trend is host to some of the most recent gold discoveries, and has attracted the interest of major mining companies looking to conduct exploration, and eventually, production.

Walker Lane stands out with exceptional high-grades, growing reserves, and massive discovery potential. It also played an integral role in the history of the state beginning with the 1859 discovery of the Comstock Lode, and it seems likely to continue doing so in the future.

end

Bill Holter

2:13 PM (29 minutes ago)

to BillMidasme
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 MONDAY 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: 7.1146/ GETTING VERY DANGEROUSLY past 7:1

//OFFSHORE YUAN:  7.1335   /shanghai bourse CLOSED UP 6.96 POINTS OR 0.21%

HANG SANG CLOSED UP 137.30 POINTS OR 0.58%

 

2. Nikkei closed UP 96.26 POINTS OR 0.48%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 100.28/Euro RISES TO 1.0820

3b Japan 10 year bond yield: FALLS TO. –.01/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.27/ 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:: 32.52 and Brent: 34.52

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 RISES TO -.53%/Italian 10 yr bond yield UP to 1.81% /SPAIN 10 YR BOND YIELD DOWN TO 0.80%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.34: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.99

3k Gold at $1764.00 silver at: 17.55   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 76/100 in roubles/dollar) 72.84

3m oil into the 32 dollar handle for WTI and 34 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.27 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 .920 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0518 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 0.66% early this morning. Thirty year rate at 1.36%

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

6.  TURKISH LIRA:  UP  TO 6.8575..

“We Print It Digitally”: Futures, Gold Soar After Powell Vows “Lot More We Can Do”

It took Jerome Powell just two days to confirm what we said late on Friday, namely that with the Fed expected to boost QE by over $3 trillion (assuming Powell doesn’t cut rates negative), the Fed chair said that “there’s a lot more we can do” and just so everyone, including Ben Bernanke understands what the Fed does, he added “We print [money] digitally… we have the ability to create money digitally and we do that by buying Treasury Bills or bonds or other government guaranteed securities.” Of course, traders ignored the “other” part of Powell’s message, namely that the recovery would take at least until the end of 2021, or the implication that stocks first need to crash before the Fed unleashes more QE, and as a result S&P futures surged more than 2% overnight, rising above 2,920, with the last 30 points in that burst coming after news out of biotech company Moderna which reported it may be getting closer to a coronavirus vaccine.

Positive sentiment was boosted by ongoing reopenings with California’s economy is now three-quarters open after virus restrictions were eased, while Apple said it will open more than 25 U.S. stores this week, adding to almost 100 globally, and helping push Apple stock 1.5% higher.

“With the worst of the pandemic likely behind us, central bank supported equity markets are unlikely to re-test their lows,” said Seema Shah, chief strategist at Principal Global Investors. “Yet, while reopening momentum may well carry risk assets a bit higher over the near term, the tepid economic recovery and deep uncertainty over the virus outlook argue against a pivot to more risk-on positioning.”

The Stoxx Europe 600 Index jumped 2.5% on gains in mining, energy and airline shares. The Stoxx Europe 600 Basic Resources Index rose as much as 4.3% as base metals climb following optimistic housing data from China and gains in risk assets, while iron ore extends its surge on supply concerns. Diversified miners jumped: Rio Tinto +4.5%, BHP +4.2%, Glencore +5.5%, Anglo American +5.1%. Several European countries ended bans on short selling, as they continued to report the lowest number of daily deaths from the virus since March.

Asian stocks also gained, led by energy and materials, after rising in the last session. Most markets in the region were up, with Australia’s S&P/ASX 200 gaining 1% and Thailand’s SET rising 1%, while India’s S&P BSE Sensex Index dropped 2.5%. The Topix gained 0.4%, with Optim and Orchestra HD rising the most. The Shanghai Composite Index rose 0.2%, with Kama and Shanghai Phoenix Enterprise Group posting the biggest advances.

Powell vowing to crank up the printing presses helped not just stocks, but also gold which traded at its highest price in seven years, fast approaching all time highs, and while silver jumped it has a way to go to catch up to gold...

… while West Texas oil rose above $30 a barrel for the first time in two months as producers in the U.S. and elsewhere continued to cut activity.

In rates, Treasuries are little changed except at long end where yields are ~2bp cheap vs Friday’s closing levels, with futures volumes slightly below 20-day average levels. Fed Chair Powell, in televised interview Sunday, said U.S. recovery could “stretch through the end of next year.” Supply is in focus with inaugural 20-year bond sale Wednesday and IG credit issuance expected to total $30b to $35b this week. Treasury 10-year yield higher by 2bps at 0.66%; bunds outperform by 1.5bp, gilts by 2.5bp amid focus on upcoming bond redemption in July.  Gilts climbed as traders bet the Bank of England will take its benchmark interest rate below zero in December.

Powell’s comments and the renewed euphoria sent the dollar sharply lower and commodity currencies higher. Norway’s krone and Australian dollar led gains among G-10 currencies as risk sentiment was boosted by oil prices topping $30 a barrel for the first time in two months, and the reopening of some economies. The pound edged higher, after erasing an earlier slide to an almost two-month low on a BOE official’s comment that the institution was examining unconventional policy measures, including negative interest rates. Money markets currently price in the probability that the BOE will take the Bank Rate under zero in December. The euro gave up some modest gains as London came into the market. Italian bonds advanced, extending their outperformance over euro-area peers as equities rose. The yen edged lower on weaker haven demand; Japan’s economy shrank an annualized 3.4% in the three months through March from the previous quarter

No major economic data or earnings are expected.

Market Snapshot

  • S&P 500 futures up 2.1% to 2,910.00
  • STOXX Europe 600 up 2.1% to 334.98
  • MXAP up 0.2% to 145.08
  • MXAPJ up 0.04% to 466.86
  • Nikkei up 0.5% to 20,133.73
  • Topix up 0.4% to 1,459.29
  • Hang Seng Index up 0.6% to 23,934.77
  • Shanghai Composite up 0.2% to 2,875.42
  • Sensex down 2.6% to 30,276.13
  • Australia S&P/ASX 200 up 1% to 5,460.54
  • Kospi up 0.5% to 1,937.11
  • German 10Y yield fell 1.8 bps to -0.549%
  • Euro down 0.07% to $1.0812
  • Italian 10Y yield rose 4.5 bps to 1.688%
  • Spanish 10Y yield fell 4.2 bps to 0.718%
  • Brent futures up 3.7% to $33.71/bbl
  • Gold spot up 1.1% to $1,762.39
  • U.S. Dollar Index little changed at 100.38

Top Overnight News from Bloomberg

  • Investors are now betting the U.K. will join the negative-rates club by the end of December. Spurred by Bank of England Chief Economist Andy Haldane’s comments that the institution is looking at unconventional policies — including negative rates – – more urgently, overnight interest-rate swaps for December’s meeting dropped below 0% for the first time.
  • China said President Xi Jinping was invited to address the opening ceremony of the World Health Organization’s decision-making meeting, shortly after Peter Navarro suggested Beijing sent airline passengers to spread the coronavirus worldwide
  • German Chancellor Angela Merkel and French President Emmanuel Macron on Monday will discuss a range of topics, including a new recovery fund to help the European Union weather the worst recession in living memory, according to an official familiar with the plan
  • Hedge funds, market-making firms and other traders across Europe can resume short-selling of equities this week after regulators lifted bans instituted when markets plunged during March’s coronavirus outbreak
  • Some 108 million people in China’s northeast region are being plunged back under lockdown conditions as a new and growing cluster of infections causes a backslide in the nation’s return to normal

Asia-Pac bourses began the week with modest gains and US equity futures extended on their rebound as participants digested recent comments from Fed Chair Powell who continued to dismiss the prospect of negative rates but suggested the Fed was not out of ammunition and that further action may be required. ASX 200 (+1.0%) outperformed with the advances led by strength across mining names after gold prices rose above USD 1750/oz and WTI crude futures reclaimed the USD 30/bbl level. Nikkei 225 (+0.5%) was also higher but with gains capped following GDP data which was better than expected but still showed Japan’s economy moved into a recession. Hang Seng (+0.6%) and Shanghai Comp. (+0.2%) were kept afloat after Chinese officials pledged further support including PBoC Governor Yi Gang who reiterated that China will implement more powerful monetary policy and China’s Government Work Report draft also stressed the launching of stronger macro policies. However, the gains were limited by ongoing tensions following the US move to prevent Huawei from acquiring semiconductors and chipsets made using US technology, while India’s NIFTY (2.3%) failed to hold on to opening gains with sentiment pressured after India extended the lockdown again to May 31st and surpassed China in the number of coronavirus cases. Finally, 10yr JGBs were initially flat with price action kept lacklustre amid the gains in stocks, weak GDP data from Japan and with participants awaiting the 5yr JGB auction which resulted in firmer accepted prices and in turn spurred JGBs upon return from the lunch break.

Top Asian News

  • Thailand Forecasts Its Economy Will Contract as Much as 6%
  • Japan’s Economy Sinks Into a Recession Set to Deepen Sharply
  • Huawei Crackdown Sends Shockwaves Through Asia Supply Chain
  • Rare Stumble by Listed Firm in Japan Fuels Record Drop in Shares

European bourses post gains across the board [Euro Stoxx 50 +2.4%] and piggy-back on the positive lead APAC lead following supporting comments from Fed Chair Powell that the Central Bank was not out of ammo and can do more if needed in which he suggested there are no limits to what we can do, meanwhile BoE’s Haldane posited the Bank was looking at options beyond and alongside negative rates. That being said, investors need to juggle COVID-19 and the prospect of escalating protectionism between US and China. Earlier source reports via Nikkei noted TSMC has stopped orders from Huawei, albeit this was downplayed by the chip-company as “market rumours”, adding that it cannot disclose order information. If true, this can mark a major blow to the Chinese telecom and could prompt China’s unveiling of “unreliable entity list”. As a reminder, China’s Global Times’ Chief Editor last week said: “if US further blocks key technology supply to Huawei; will restrict or investigate US companies such as Qualcomm (QCOM), Cisco and Apple (AAPL), and suspend the purchase of Boeing (BA) planes.” Back to Europe, sentiment seems more driven by Central Bank comments thus far and as economies continue to ease lockdown restrictions, with broad-based gains seen across major indices; albeit, Italy’s FTSE MIB (+1.3%) is the laggard after Italy’s regulator lifted the short-selling carpet ban ahead of schedule and in synchrony with France, Spain, Greece, Belgium, and Austria. Sectors are all in positive territory with the energy sector the outperformer whilst cyclicals outperform defensives – reflecting risk appetite. The breakdown also shows gains led by oil and mining-related sectors, while Travel & Leisure also resides towards the top. In terms of individual movers, Deutsche Telekom (+1.4%) rises with the market but underperforms the DAX (+2.9%) amid reports SoftBank Group is said to be in discussions to sell a large chunk of its T-Mobile (TMUS) stake to Deutsche Telekom. If the transaction is completed, it would boost Deutsche Telekom’s share to over 50%. according to WSJ citing sources. Note: T-Mobile’s largest shareholders are Deutsche Telekom (42.1% stake) and SoftBank (23.8% Stake). Meanwhile, Diageo (+2%) is underpinned by reports Co. is said to be mulling options to delist United Spirits, according to CNBC-TV18 citing sources. Ryanair (+7%) was bolstered post-FY earnings in which it expects a smaller Q2 loss vs. Q1, Co. also boosted its liquidity. Finally, AstraZeneca (+1.4%) outpaces the broader Pharma sector amid reports it will produce as many as 30mln COVID-19 vaccines available to the UK by September if trials are successful. However, FT’s Elder, on the Co. being the largest FTSE 100 by market cap, suggested that such rises “most commonly, feel like a sell signal”

Top European News

  • Thyssenkrupp in Fresh Talks to Merge Ailing Steel Division
  • How Germany’s Relentless Contact Tracers Helped Beat Virus
  • U.K. Gets Fresh Warnings of Economic Scars Before Sunak Speaks
  • Billionaire Barclay Brother’s Video Shows ‘Bugging’ at The Ritz

In FX, the non-US Dollars are revelling in a risk on start to the new week, or rather clawing back lost ground amidst high flying precious metals (Gold Usd 1760+ per oz at one stage) and the ongoing revival in crude prices (WTI Usd 31+ and Brent almost Usd 34 per barrel). The Aussie is building a firmer base on the 0.6400 handle and Kiwi is pivoting 0.5950, while the Loonie has rebounded from under 1.4100 even though the DXY remains firm above 100.000 within a 100.470-280 range on the back of gains forged vs ‘safer-havens’ and other G10s with a bigger weighting in the index.

  • JPY/CHF/EUR/GBP – Renewed risk appetite has sapped demand for the Yen relative to the Greenback in the low 107.00 area, but Usd/Jpy looks capped ahead of 107.50 where hefty option expiries reside (2.2 bn), while the Franc remains mixed after comments from SNB’s Maechler noting that the currency would be significantly stronger without increased levels of intervention evident in yet another marked rise in Swiss bank sight deposits. Usd/Chf is currently above 0.9700, but Eur/Chf still eyeing 1.0500 as the Board member also refuted that the round number is a line in the sand akin to the old official 1.2000 floor that was pulled in January 2015. Moreover, the Euro still looks top heavy vs the Buck on ventures through 1.0800 following Fitch cutting France’s AA ratings outlook to negative from stable and also downgrading Austria from positive to stable. Elsewhere, dovish guidance from BoE’s Haldane has added to the Pound’s seasonal weakness, though Cable has rebounded from sub-1.2100 and Eur/Gbp is off 0.8950+ peaks ahead of more from the MPC via Tenreyro with specific focus on any further mention of NIRP.
  • SCANDI/EM – No shock to see the Nok, Rub and Mxn welcoming the latest rally in oil, while the Sek is tagging along on broadly bullish risk sentiment and the Try has extended its already impressive recovery to almost 6.8300 vs the Usd after Clearstream and Euroclear both suspended Lira trade on electronic platforms citing a lack of liquidity due to COVID-19 restrictions. On that note, Chinese President Xi will open the World Health Assembly and the Yuan is on a weaker footing in advance of his address and the NPC. Eur/Nok is hovering near 11.0000, Usd/Rub circa 73.0500, Usd/Mxn under 23.9000, Eur/Sek below 10.6400 and Usd/Cnh just shy of 7.1450..
  • SNB’s Maechler acknowledged the CHF’s appreciation, but stated it would have been much more pronounced if we hadn’t been prepared to intervene more heavily; when asked if 1.05 in EUR/CHF was being an informal upper limit responded ‘no, we look at the entire currency situation’. Additionally, rejected the possibility of a special profit payout from the SNB to the Swiss Gov’t given COVID-19. (Newswires/NZZ)

In commodities, oil futures continue on their upwards trajectories, aided by a rosier demand prospect as economies reopen and with supply contained by producers. Furthermore, reports via Energy Intel noted that OPEC+ could reportedly extend current production cuts to year-end. The production cuts are to be eased from July according to the original pact. Sticking with OPEC, Saudi and Kuwait also agreed to suspend output at the Khafji field in the neutral zone in June, expected cuts to total 80mln BPD. Meanwhile, Friday’s Baker Hughes Rig Count continued to show receding US drilling activity. WTI June and July both trade comfortably above USD 30/bbl, with the front-month holding up heading into tomorrow’s June expiry, thus far suggesting subsiding fears of storage scarcity. Despite a lion’s share of open interest and volume in the July contract, participants will be observing the June contract after WTI May fell deep into negative territory heading into its expiration. Brent July also remains on the front-foot, towards the top if a USD 32.69-34.00/bbl intraday band. WTI June had risen over WTI July in early trade. Spot gold extend its post-Powell gains after the Fed Chair noted that stocks and asset prices could suffer a significant hit and the post coronavirus recovery could last through 2021, while he added the Fed is not out of ammunition and can do more if needed in which he suggested there are no limits to what we can do. The yellow metal sits at an over-seven-year high at USD ~1760/oz (vs. range USD 1743.33-1764.46/oz). Copper prices are supported by the overall risk appetite, but the red metal trades within recent ranges. Meanwhile Dalian Iron ore rose over 6% at one point amid higher demand prospects with economies and factories reopening.

US Event Calendar

  • 10am: NAHB Housing Market Index, est. 34, prior 30
  • 2pm: Fed’s Bostic Holds Virtual Discussion About Economy

DB’s Jim Reid concludes the overnight wrap

The weekend wasn’t bursting with new information. It does feel like we’re in the middle of a phoney war at the moment with all of us waiting to see how efficiently the various economies are able to re-open given all the social distancing that will be required. As you’ll see below last week was the worst for most equity markets since the lows in March but there were still a lot of dip buyers about.

Fed Chair Powell’s recorded appearance on CBS’s “Face the Nation” last night was probably one of the highlights over the weekend. Having said that he didn’t really say too much new but continued a recent pattern of being relatively cautious on the timing and strength of the recovery even if he said people should never bet against the American economy. On negative rates, he said “I continue to think, and my colleagues on the Federal Open Market Committee continue to think, that negative interest rates is probably not an appropriate or useful policy for us here in the United States.” He also reiterated that the Fed hadn’t exhausted its options for aiding the economy and noted that the Fed can increase its emergency lending programs and make monetary policy more supportive through forward guidance and by adjusting the Fed’s asset-purchase strategy. Mr Powell will be speaking again before the Senate Banking Committee tomorrow, and then making some opening remarks at a Fed Listens event on Thursday. So plenty of opportunity for him to continue to get this message across this week.

In other news, after markets closed on Friday, the Trump administration said that it is barring any chipmaker using American equipment from supplying China’s Huawei without US government approval. Commerce Secretary Wilbur Ross said in a tweet that “We must amend our rules exploited by Huawei and HiSilicon and prevent U.S. technologies from enabling malign activities contrary to U.S. national security and foreign policy interests.” That’s weighed on Huawei’s Asian suppliers like TSMC (-2.18%), AAC Technologies Holdings Inc (-5.63%), Optical Technology Group Co (-10.45%) and Win Semiconductors (-6.52%) this morning. China’s Ministry of Commerce has said that it opposes the new U.S. rules and will take all necessary measures to defend the rights and interests of Chinese companies and urged Washington to help create conditions for normal trade and cooperation between enterprises.

Despite the weakness in those tech names, most Asian bourses have started the week on the front foot with the Nikkei (+0.68%), Hang Seng (+0.40%), Shanghai Comp (+0.61%) and Kospi (+0.74%) all up. Futures on the S&P 500 are also up +1.15% as we type while WTI crude oil prices are up +3.74% to $30.48. Spot gold prices are trading up +0.95% this morning to $1,760/oz. Meanwhile, Sterling has pared earlier losses after BoE Chief Economist Andrew Haldane hinted over the weekend that the BoE is examining possible unconventional monetary policy measures.

The main data release this week will be the flash PMIs for May from around the world on Thursday and Friday. The consensus is expecting services in Europe to bounce from low teens to the mid-twenties area and manufacturing to go up a few points in the thirties. The PMIs are diffusion indices, with respondents simply saying whether things are better or worse than the previous month so they are a little difficult to calibrate to growth at such extreme levels of activity but they will be a big curiosity nonetheless. For the rest of the week’s data see the day by day week ahead guide at the end.

There’s a raft of central bank events this week, including a number from the Fed. The highlights are likely to be the two sets of remarks from Fed Chair Powell that we mentioned above. Aside from that, there’ll also be remarks to digest from Vice Chair Clarida and New York Fed President Williams on Thursday, as well as other regional Fed Presidents throughout the week. Finally on the Fed, it’ll be worth keeping an eye out for the release of the minutes from April’s meeting on Wednesday. On Friday, the ECB will also be publishing their account of the most recent monetary policy meeting.

Earnings season continues to wind down over the week ahead, with over 90% of the S&P 500 companies having now reported. This week will only see a further 22 companies from the S&P 500 and 30 from the STOXX 600 announce earnings. In terms of the highlights, today we’ll hear from Ryanair, Lufthansa and Panasonic. Then tomorrow we have Walmart and Home Depot, before Wednesday sees Lowe’s, Target and Experian report. On Thursday, there’s Nvidia, Medtronic, Intuit, TJX and Hewlett Packard Enterprise, and finally on Friday there’s Deere & Company and Alibaba.

Finally on Friday, the National People’s Congress will open in China. Our economists expect that the central government will unveil more fiscal measures, aimed at supporting households and encouraging consumption. Another thing that will be interesting to see is whether a numerical GDP target for this year is made, since Bloomberg reported previously that one option that could be done instead is to have a description of the GDP goal.

Recapping last week now and there was a decidedly risk off tone. The S&P 500 fell -2.26% last week (+0.39% Friday), which was the worst weekly loss for the index since the March lows. Technology and Healthcare stocks outperformed slightly, but the NASDAQ still fell -1.17% on the week (+0.79% Friday), the worst weekly loss since the first week in April. The heavily Technology weighted index is still up an impressive +0.47% YTD.

European equities also declined on the week. The Stoxx 600 was down -3.76% (+0.47% Friday) over the five days. The DAX declined -4.03% (+1.24% Friday), while the Italian FTSE MIB fell -3.37% (-0.09% Friday), and the CAC slid -5.98% (+0.11% Friday). Asian indices were down less than their European and American counterparts. The Nikkei fell just -0.70% over the week (+0.62 Friday) and the CSI 300 lost -1.28% (-0.32% Friday), while the Kospi fell -0.95% (+0.12% Friday). One risk asset that did rise on the week was oil. The commodity continued to rally for a third week in a row after WTI futures went negative back on 20 April. Last week WTI futures rose +18.96% (+6.79% Friday) to $29.43/barrel and Brent crude rose +4.94% on the week (+4.40% Friday). Oil pricing continues to recover as suppliers cut production and demand prospects improve.

The VIX rose +3.91 pts to 31.89 last week (-0.72pts Friday). That was the largest weekly increase since 20 March, when the S&P 500 was at its recent lows. Despite oil prices continuing to rise, the pullback in equities and the subsequent rise in volatility saw HY credit spreads mostly wider on the week. US HY cash spreads were +26bps wider (+1bp Friday), while IG was actually -2bps tighter on the week (-1bp Friday). In Europe, HY cash spreads were +22bps wider (+1bp Friday), while IG widened +7bps (flat Friday).

Even with equities falling, sovereign bonds yields were either flat or just slightly down. US 10yr Treasury yields were down -4.0bps (+2.1bps Friday) to finish at 0.643%, 10bps from the March lows. Meanwhile, 10yr Bund yields rose +0.6bps over the course of the week (+1.2bps Friday) to -0.53%. 10yr Gilts were similarly little changed on the week, down -0.4bps (+2.7bps Friday). Peripheral debt went in different directions. Spanish 10yr yields tightened -4.2 bps to Bunds over the 5 days, while Italian BTPs widened +1.1bps. In other havens, gold rose to its highest level since November 2012, rallying +2.41% (+0.77% Friday) to $1743.67/oz.

Economic data last Friday continued to show the fallout of the coronavirus. US industrial production fell by -11.2% in April (slightly above the -12.0% expected), following a -4.5% decline in March. This is the largest monthly decline in the 101 years that the index has run for. Retail sales in the US fell by -16.4% in April (far more than the 12.0% expected), following an -8.3% decline in March. There was a -60.6% fall for electronics and appliance stores, while clothing and clothing accessories stores fell by -78.8%. The preliminary U. Michigan Sentiment Survey for April offered some good news, coming in at 73.1 (vs. 68.0 expected). In Europe, Euro Area employment in the first quarter fell by 0.2%, the first decline since Q2 2013. German GDP contracted by -2.2 % in the first quarter, the largest quarterly contraction since Q1 2009.

 

3A/ASIAN AFFAIRS

i)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 6.96 POINTS OR 0.21%  //Hang Sang CLOSED UP 137.30 POINTS OR 0.48%   /The Nikkei closed UP 96.76 POINTS OR 0.48%//Australia’s all ordinaires CLOSED UP 1.18%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1146 /Oil UP TO 32.10 dollars per barrel for WTI and 34.52 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1146 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1335 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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

The mess at Softbank:

(zerohedge)

SoftBank’s Latest Presentation: A Surreal Slideshow Of Unicorns Running, Plunging, Flying

Going into today’s Softbank results, we knew they would be catastrophic, and sure enough the company did not disappoint (the bears), when the poster child for all that is wrong with the central banks’ “everything bubble” (and the company which last October we said would be the “bubble era” short of the century) reported this morning that it lost 1.9 trillion yen ($17.7 billion) in 2019 after writing down the value of its numerous “unicorn” investments, including WeWork and Uber Technologies.

The company posted an overall operating loss of 1.36 trillion yen in the 12 months ended March and a net loss of 961.6 billion yen, confirming preliminary earnings results released last month. The losses are the worst ever in the company’s 39-year history.

As Bloomberg adds, the company’s $100 billion “unicorn incubator”, the Vision Fund, went from the group’s main contributor to profit a year ago to its biggest loser. Uber’s disappointing public debut last May was followed by the implosion of WeWork in September and its subsequent rescue by SoftBank. The plunge in Uber’s share price was responsible for about $5.2 billion of Vision Fund’s losses in the period, while WeWork contributed $4.6 billion and another $7.5 billion came from the rest of the portfolio, SoftBank said. The $75 billion the Vision Fund has spent to invest in 88 companies as of March 31 is now worth $69.6 billion.

Indicatively, WeWork’s valuation is now $2.9 billion, down more than 90% from its peak. SoftBank has invested more than $10 billion in the company, which means it is underwater by about $7 billion on the office subletting company whose future is now more opaque than ever.

To be sure, Son has been struggling with the impact of the coronavirus on the portfolio of startups weighted heavily toward the sharing economy which have been crushed by imposed social distancing norms and regulations. Son’s investments in hotel-booking service Oyo Hotels & Homes and Uber, among the biggest in his portfolio, have also fared poorly. Oyo, in which SoftBank invested about $1.5 billion, last month furloughed employees in countries outside its home market of India as it struggles to survive the virus. Uber’s shares are trading about 28% below its IPO price.

Having learned from the “best” – such as Boeing – Son responded forcefully in preempting another plunge in Softbank stocks, unveiling two share buybacks in rapid succession. The first 500 billion yen repurchase announced in mid-March initially failed to lift SoftBank’s stock. When the shares plunged more than 30% in the week that followed, Son unveiled a 2 trillion yen follow-up. Hilariously, SoftBank has already used roughly half of the first allotment. The company said on Friday that it had bought 250.6 billion yen of its own stock since March 13 under the original re-purchase plan.

Which, naturally means, it’s time for #3: before the earnings were announced on Monday, the company said it plans to spend up to 500 billion yen more to buy back shares through next March. The announcement is part of a broader plan to sell assets to raise as much as 4.5 trillion yen over the coming year to buy shares and slash debt. SoftBank is likely to raise the funds by selling its stakes in Alibaba Group Holding Ltd., Japanese telecom unit SoftBank Corp. and the company that results from the merger of Sprint Corp. and T-Mobile US Inc.

But while none of the above will come as a surprise to anyone, investors were still eagerly expecting today’s earnings if for no other reason than to see what slides Masa Son would stuff in his presentation.

As a reminder, in the past the Japanese billionaire, perhaps unaware that he moonlights as a comedian, added slides such as the following which were probably meant to telegraph a deep sophistication and to confuse the dumbest money, when in reality the slides were simply idiotic :

Masa did not disappoint, and prefacing by saying that “the situation is exceedingly difficult,” Masa said that “our unicorns have fallen into this sudden coronavirus ravine. But some of them will use this crisis to grow wings.”

And then, perhaps in hopes of killing Q&A time with five (5) surreal slides meant to provoke awkward silence and also to show to everyone precisely what goes on inside his brain, Son showed just what he meant:

Which unicorns will successfully “fly” out of the coronavirus valley? Why obviously those who overcome these two modest “challenges”: collapsing demand and a cash inferno.

Son’s parting words of wisdom: where manufacturing, electricity and food processing pulled the global economy out of the Great depression…

… this time it will be such ‘revolutionary’ services as online meetings, food delivery, online shopping and video streaming that will bail out the global economy….

… resulting in that utopia for every Ponzi scheme: “happiness for everyone.”

Want more? Read the full thing here.

3 C CHINA

CHINA
China admits it ordered early virus samples destroyed.  The WHO visited Wuhan twice in Jan and Feb and strangely did not ask to see the labs.. What where they doing there?
(zerohedge)

Pompeo Was Right, China Admits It Ordered Early Virus Samples Destroyed

While perhaps somewhat out of context, it appears US Secretary Of State Mike Pompeo was right when he accused Beijing of failing to provide, and in fact destroying, samples of the virus at the start of the outbreak.

The South China Morning Post reports that Liu Dengfeng, an official with the National Health Commission’s science and education department, confirmed China had ordered unauthorised laboratories to destroy samples of the new coronavirus in the early stage of the outbreak, but claimed these orders were given for biosafety reasons.

“The remarks made by some US officials were taken out of context and intended to confuse,” Liu said at a briefing in Beijing.

Liu claimed that when the illness was first reported in Wuhan, “national-level professional institutes” were working to identify the pathogen that was causing it:

“Based on comprehensive research and expert opinion, we decided to temporarily manage the pathogen causing the pneumonia as Class II – highly pathogenic – and imposed biosafety requirements on sample collection, transport and experimental activities, as well as destroying the samples,” he said.

However, SCMP reports that according to a provincial health commission notice issued in February, those handling virus samples were ordered not to provide them to any institutions or labs without approval. Unauthorised labs that obtained samples in the early stage of the outbreak had to destroy them or send them to a municipal center for disease control and prevention for storage.

Additionally, in what is an odd stream of admissions and clarifications, another senior official, Li Mingzhu, with the health commission’s international cooperation department, rejected other US claims about access early on, claiming that the WHO did not make any request to visit the lab during two trips to Wuhan, in January and February.

“The WHO has never made a request to visit a certain laboratory, so the statement that the WHO was denied a visit to the Wuhan laboratory is untrue,” Li said.

So one wonders what exactly WHO was doing there, if it went at all. Of course, we would expect Tedros to fully corroborate these reports.

The odd timing of these ‘clarifications’ and simplicity of their claims makes one wonder why China had not simply announced this two or three months ago? What could they have had to hide if, as they said today, this was all “in line with Chinese standard practices”?

 end
Sunday/CHINA.USA WHO
The USA and its allies will confront China and demand an investigation into the origin of the Coronavirus with today’s annual two day WHO summit
(zerohedge)

US And Its Allies Will Confront China, Demand Investigation During Tomorrow’s Annual WHO Summit

Since the coronavirus outbreak, the profile of the World Health Organization has skyrocketed, and so have suspicions about its motives and alliances. Which is why this year’s annual meeting of the organization’s members – which is slated to begin on Monday – should get interesting.

As the US, Australia and other skeptical western states are expected to confront China and about the possibility of an investigation into Beijing’s and the WHO’s handling of the outbreak during its earliest days.

The coronavirus will be the focus for the World Health Assembly meeting, to be attended by all 194 WHO member states plus observers, and where policies and budgets are reviewed and approved.

But all eyes will be on how countries – including the US, Australia, Canada, France and Germany – pursue an investigation into China’s handling of the pandemic within the framework of the global health body. That could include taking the Chinese government to the international court.

Leaders of these countries have already made clear that they want an inquiry, including investigating the origin of the virus, whether it was initially covered up by China, and if Beijing was slow to tell the world that the virus was being transmitted between humans.

The WHO has itself been under fire, attacked for praising China’s pandemic response as “transparent” despite Beijing’s suppression of whistle-blowers and information at the start of the outbreak.

Beijing has, of course, rejected accusations that it covered up the virus during the initial weeks after the outbreak, as well as claims the virus might have leaked or, worse, been purposefully released, by a biolab in Wuhan. And while the CCP has said it would support a WHO-led inquiry into the virus’s origins, it has simultaneously slammed Australia, the US and other countries that have insisted on an investigation in the face of Beijing’s reticence and obvious reluctance by accusing them of “politicizing” the outbreak (language that, like CCP criticism of phrases like “Chinese virus” and “Wuhan virus”, has found its way into the rhetoric of the American left).

However, hypothetically speaking, even if the WHO authorized an investigation, which stumbled upon some new evidence or a ‘smoking gun’ to suggest that China is much more culpable than initially believed, there’s little the WHO could do to hold China to account. Legally speaking, the WHO has the power to refer cases to the International Court of Justice in the Hague. However, China has already flouted the ICJ once, a gesture which underlined the fact that the ICJ has no power to enforce any of its decisions, as the SCMP reminds us.

The last time the Chinese government was sued in the international court was in 2016, when the Permanent Court of Arbitration ruled in favour of the Philippines over the South China Sea. It said Beijing’s territorial claims to the area lacked legal basis and were contrary to an international maritime convention. Beijing did not take part in the trial and has rejected the legitimacy of the ruling.

Thanks to its position as a permanent member of the UN Security Council, China is effectively immune to any kind of legal or police action from an international standpoint. A decision against China by the ICJ would require a vote by the Security Council to approve enforcement, a vote which China would obviously veto.

Another mechanism, though it has also never before been used (just like the WHO has never actually referred a case to the ICJ), is the International Health Regulations. Enacted and adopted by all WHO members in 2005, the IHR “suggests” – a key word – that all conflicts brought before the WHO should be resolved in a matter “related to its interpretation or application through negotiation, meditation and conciliation.”

But the IHR has already been repeatedly violated by almost every WHO member (travel restrictions are one example).

“The WHO has never taken another state to the ICJ, and I do not anticipate that,” said Steven Hoffman, professor of global health, law and political science at York University’s Global Strategy Lab in Toronto. “If it happens it will be unprecedented.”

[…]

“There are a lot of challenges as to how countries can successfully resolve disputes. Dozens of countries have violated regulations under the IHR in the Covid-19 pandemic and even back in the days during Ebola,” he said.

“When countries imposed targeted trade and travel restrictions on a particular country, it was already a clear violation of Article 43 of the IHR. There is no effective way to complain or seek recourse among countries. China has been subjected to such restrictions and in theory they can take those countries to the ICJ, but I also do not think they will,” he said.

With few obvious alternatives, politicians in the US have been pushing to pass a federal law that would allow plaintiffs to sue the Chinese state in US courts. Last month, Missouri became the first state to sue the Chinese government since the outbreak began. The lawsuit, filed in the US District Court for Eastern Missouri, alleges Beijing’s denials and cover-ups led to a pandemic that caused “enormous loss of life, human suffering and economic turmoil.” Republican Senators have introduced a bill that would allow US citizens to sue, potentially creating an avenue for those infected and the families of survivors to sue.

Gian Luca Burci, adjunct professor of international law at the Graduate Institute Geneva, said national lawsuits and unilateral actions by the US government would do more reputational than legal harm to China. “While there’s a low legal risk, there is a political and reputational risk here,” he said.

Negative repercussions could be multifarious and damaging.China is concerned that there will be any kind of international investigation – China would have to consent to one, but it is not clear they would,” he said. “There is a need for a fact-finding mission to confirm what happened, and what went wrong, in China and around the world.”

Certainly, tomorrow’s meeting is bound to be unbelievably tense considering the continuing escalation between the US and China. The 73rd World Health Assembly begins Monday and will continue on Tuesday. We suspect it will draw far more interest from investors and the public than in years past.

end

CHINA//MONDAY MORNING

I can see that this will not go over well with the USA/globe:  Beijing begins construction of a P 3 biolab

(zerohedge)

Can’t Make This Up: Beijing Begins Construction Of A P-3 Biolab

As the new trade/tech/diplomatic/cultural (in fact, everything but kinetic) war between the US and China is heating up by the hour, one would think that China would do everything in its power to defuse one of the core accusations by the Trump administration, namely that the Wuhan Institute of Virology (WIV) in China was the source of the global coronavirus pandemic (going so far as to spark unofficial demands for hundreds of billions in reparations from Beijing for its “criminal” actions), an allegation which Peter Navarro on Sunday expanded when he accused China of deliberately “seeding” the world with the “China virus”:

“The Chinese behind the shield of the World Health Organization – for two months – hid the virus from the world and then sent hundreds of thousands of Chinese on aircraft to Milan, New York and around the world to seed that,” Navarro said on ABC. “They could have kept it in Wuhan. Instead it became a pandemic.”

Well, one would be wrong, because in a “completely unexpected” twist – assuming China was indeed telling the truth and that the WIV had nothing to do with the original viral release – on Friday, a senior Chinese official confirmed Secretary of State Mike Pompeo’s allegation that Beijing had told labs in the country to destroy coronavirus samples in early January.

Recall that in a May 6 press briefing, Pompeo accused China of covering up the Covid-19 outbreak as it emerged in the central city of Wuhan, saying China’s National Health Commission had ordered destruction of samples of the virus on Jan. 3.

Asked about those comments at a press briefing in Beijing on Friday, NHC official Liu Dengfeng confirmed that the commission had issued these guidelines at that time “for pandemic prevention and control, which also played an important role in preventing biosafety risks.

“If the laboratory conditions cannot meet the requirements for the safe preservation of samples, the samples should be destroyed on the spot or transferred to a professional institution for safekeeping,” said Liu, supervisor of the commission’s Department of Health Science, Technology and Education.

Chinese law has clear rules for the handling of highly pathogenic samples, he said, and we are sure that it does… but wait a gosh darned minute? According to Dengfeng, China is basically admitting that the coronavirus samples – which were held in China’s P-4 rated, top “biosafety” lab in Wuhan which incidentally is also where the virus was leaked from according to a mountain of circumstantial evidence – were not safe in the Wuhan lab and thus had to be destroyed?

Considering that one of the core arguments made by the Trump administration (and this website) is that the virus (whether genetically engineered or otherwise) was released (hopefully without premeditation although there is no way of knowing for certain) by the Wuhan lab, China’s actions essentially confirm that the Wuhan Institute of Virology was unsafe, and thus every last sample of the virus had to be destroyed.

Of course, the real reason why China destroyed the samples was different, and it had to do with not only destroying all the evidence but crushing any hope of finding what the real source of the pandemic was. As the WSJ reported, “Public health experts say it is likely too late to investigate the role of the market in Covid-19’s spread and that proving its origin might now be impossible.” And with China destroying the last remaining coronavirus samples, well – there goes any hope of proving or disproving that the virus emerged from the Wuhan Institute of Virology.

Just as China wanted.

So with all that in mind, and with China’s track record in biotechnology, “gain of function” experiments and reputation of deadly viral “containment” destroyed, what does China do? Why it plans to build an entirely new biolab, only this time not in the industrial backwater of Wuhan, but in the capital itself.

According to the Global Times, China’s capital Beijing will build its own, P-3 rated laboratory “to improve and explore infectious disease detection capacity” Lei Haichao, director of Beijing Municipal Health Commission, said at a press conference on Sunday, Chinanews reported.

There is no P-3 laboratory in Beijing now, while the nation’s only P-4 lab – which as a reminder  is the highest level of biosafety precautions, and is appropriate for work with agents that could easily be aerosol-transmitted within the laboratory and cause severe to fatal disease in humans for which there are no available vaccines or treatments” – remains in Wuhan.

When COVID-19 emerged, the nation’s capital had 17 facilities equipped with nucleic acid testing capabilities. Within two months, 70 institutions had added testing capabilities necessary to conduct 51,000 tests daily, Lei said.

Recently, the highest number of tests completed in one day is 30,000, indicating ample reserve capacity. However, the ability of Beijing laboratories to target infectious diseases needs to be explored and improved in the long term, according to Lei.

Of course, testing is just one of the many aspects that a biosafety level 3 lab does. According to the CDC’s “Biosafety in Microbiological and Biomedical Laboratories” manual, P-3 labs are appropriate for work involving microbes which can cause serious and potentially lethal disease via the inhalation route. This type of work can be done in clinical, diagnostic, teaching, research, or production facilities. Here, the precautions undertaken in BSL-1 and BSL-2 labs are followed, as well as additional measures including:

  • All laboratory personnel are provided medical surveillance and offered relevant immunizations (where available) to reduce the risk of an accidental or unnoticed infection.
  • All procedures involving infectious material must be done within a biological safety cabinet.
  • Laboratory personnel must wear solid-front protective clothing (i.e. gowns that tie in the back). This cannot be worn outside of the laboratory and must be discarded or decontaminated after each use.
  • A laboratory-specific biosafety manual must be drafted which details how the laboratory will operate in compliance with all safety requirements.

In addition, the facility which houses the BSL-3 laboratory must have certain features to ensure appropriate containment. The entrance to the laboratory must be separated from areas of the building with unrestricted traffic flow. Additionally, the laboratory must be behind two sets of self-closing doors (to reduce the risk of aerosols escaping). The construction of the laboratory is such that it can be easily cleaned. Carpets are not permitted, and any seams in the floors, walls, and ceilings are sealed to allow for easy cleaning and decontamination. Additionally, windows must be sealed, and a ventilation system installed which forces air to flow from the “clean” areas of the lab to the areas where infectious agents are handled.  Air from the laboratory must be filtered before it can be recirculated.

So after Wuhan and the whole “coronavirus thing”, what do Beijing residents have to look forward to?

According to the CDC, biosafety level 3 is commonly used for research and diagnostic work involving various microbes which can be transmitted by aerosols and/or cause severe disease. These include Francisella tularensis, Mycobacterium tuberculosis, Chlamydia psittaci, Venezuelan equine encephalitis virus, Eastern equine encephalitis virus, Coxiella burnetii, Rift Valley fever virus, Rickettsia rickettsii, several species of Brucella, chikungunya, yellow fever virus, West Nile virus, Yersinia pestis.

Oh, and the SARS coronavirus, SARS-Cov-2, and MERS coronavirus. Just in case the world really needs that second wave.

 END
CORONAVIRUS UPDATE MONDAY

100 Million Chinese Back Under Lockdown As Americans, Europeans Flock To Parks & Beaches: Live Updates

Summary:

  • 108 million under lockdown in NE China
  • Beaches, parks reopen across US, Europe
  • New Zealand reopens schools Monday
  • Italy plans to reopen most restaurants & businesses by week’s end.
  • New cases in Brazil, Russia slow as deaths accelerate
  • In US, all but 4 states have “partially reopened”
  • WHO annual meeting begins with keynote from President Xi
  • South Africa reports largest single-day spike in cases

* * *

With two weeks left in May, the pace of deaths across the US has slowed substantially, a reflection of the progress made by the worst-impacted states like New York, Michigan, New Jersey, California and Washington State, and – importantly – a repudiation of the alarmist forecasts published by the NYT earlier this month calling for the rate of US COVID-19-linked deaths to hit 3,000/day. Yesterday, the US reported just 808 deaths(remember, these data are reported with a  24-hour lag) according to data provided by Johns Hopkins University.

As of Monday morning, the US had confirmed 1,486,742 cases (with thousands of patients likely going undiagnosed) and 89,564 deaths, placing it on track to surpass 90k deaths by the end of today.

Ryan Struyk

@ryanstruyk

Reported US coronavirus deaths on date:

Feb. 17: 0 deaths
Mar. 17: 111 deaths
Apr. 17: 37,054 deaths
May 17: 89,562 deaths

Meanwhile, as outbreaks in Russia and Brazil continue to rage, both countries have officially counted hundreds of thousands of additional cases over the last 2 weeks. The two countries, which boast the No. 2 (Russia) and No. 4 (Brazil) highest ‘official’ case counts in the world, are approaching the problem from different angles: In Russia, President Putin is ratcheting up lockdown and social distancing measures, while Brazil – under President Jair Bolsonaro, who has dismissed the virus as “a little flu” – continues to reopen its economy to the consternation of its neighbors.

The death toll has ballooned in the South American nation to 16,118 as of Monday morning in the US, the 6th-highest rally in the world. Two weeks ago the death count was 7,025. On Sunday, Brazil reported 485 additional deaths and 7,938 more cases. That was after Brazil on Saturday reported 816 more deaths, second only to the US with 1,218, and more than 14k additional cases. The numbers pushed Brazil past Italy and Spain on the ranking of hardest-hit countries. Brazil’s “official” tally was 241,080, though with testing rates that lag far behind Europe, many suspect the accurate number is much higher.

While most of the US and Europe have continued to reopen, Chile’s capital city Santiago was locked down on Sunday following a resurgence of new cases and deaths linked to the virus.

AFP news agency

@AFP

VIDEO: With near-deserted streets and police checks, the seven million people of Chile’s capital, Santiago, began a strict quarantine Saturday after a sharp resurgence of coronavirus cases

Embedded video

Russia said Monday that it recorded 9,000 new coronavirus cases over the last 24 hours, the lowest level since early May (the country was reporting more than 10k cases a day). Health officials reported 8,926 new infections in the last 24 hours, bringing the country’s total to 290,678, the second-highest in the world after the US. It was the lowest number of new virus cases since May 1, when Russia announced 7,933 cases, according to the Japanese Times.

A little further south in New Zealand, hundreds of thousands of children were preparing to return to school on Monday after a 2-month ‘home education’ break.

Hundreds of thousands of New Zealand children returned to school Monday after two months of home education as part of a COVID-19 lockdown, according to the AFP. With a population of 5 million, NZ recorded just 1,149 cases of the virus and 21 deaths, attributed to a strict lockdown adopted in March. Most of NZ’s lockdown measures ended on Thursday.

Back in the US, as more states start the process of reopening, Apple is planning to reopen more than 25 of its branded stores in the US, according to a Reuters report. The company said on Sunday that by the end of the week, 1/5th of its retail stores worldwide will have reopened.

Yesterday, we reported that tens of millions of Chinese in the northeastern part of the country had been placed under lockdown again following a new outbreak near the border with Russia. Apparently, that number was way off: Right now, some 100 million Chinese are back under lockdown.

Bloomberg QuickTake

@QuickTake

Some 108 million people in China’s northeast region are being thrown back under lockdown as a new cluster of infections emerges.

More @business: https://trib.al/AMpi8Aq

Embedded video

Some 108 million people in China’s northeast region of Jilin are back under lockdown conditions, BBG reports, in “an abrupt reversal of the re-opening taking place across the nation, cities in Jilin province have cut off trains and buses, shut schools and quarantined tens of thousands of people.” The strict measures have dismayed many residents who had thought the worst of the nation’s epidemic was over.

People “are feeling more cautious again,” said Fan Pai, a worker in Jilin. “Children playing outside are wearing masks again” and health care workers are walking around in protective gear, she said. “It’s frustrating because you don’t know when it will end.”

Meanwhile, according to another Reuters report, beautiful summer weather across the northern hemisphere is enticing millions of people in virus ‘hot spots’ from NYC to the Mediterranean coasts of Italy and Spain to visit public parks and beaches, making them the primary centers of recreation in the COVID era.

Most cities and towns have adopted new precautions to prevent the virus from spreading. Many individuals are choosing to keep their distance and wear masks. Greeks flocked to beaches on Saturday as more than 500 beaches reopened, coinciding with temperatures of 34 Celsius (93.2 Fahrenheit).

As the number of new cases accelerates rapidly across Africa, stoking fears about new ‘hot spots’, South Africa reported its highest single-day jump in reported coronavirus cases on Sunday, with an increase of 1,160 infections, according to the country’s National Department of Health. That brings the total number of cases to 15,515, with the Western Cape province accounting for ~60% of that total.

In Brooklyn’s Domino Park, white circles were painted on the lawn to help sunbathers and picnickers keep a safe distance. About half the people in the park appeared to be wearing some form of face covering as they congregated in small groups on a warm Saturday afternoon, as cops in masks kept watch.

In Italy, many restaurants, bars and cafes have reopened now that Italy has seen daily deaths drop to levels not seen since the early days of the pandemic.

TRT World Now

@TRTWorldNow

Italy’s restaurants, bars and cafes among businesses allowed to reopen as country records lowest single-day Covid-19 death toll since its two-month lockdown began

Embedded video

After releasing consumer-goods pricing data that hinted at a wave of destabilizing deflation headed China’s way, the mainland press has been searching far and wide for “foreign” experts to reassure the Chinese people that China’s economy will hit its pre-COVID growth benchmarks, just like President Xi said.

China Xinhua News

@XHNews

The Chinese economy is resilient enough to keep its growth rate despite the impact brought by the pandemic: Egyptian experts

Embedded video

As we reported last night, the WHO is holding a two-day annual meeting starting Monday. Chinese President Xi Jinping delivered the keynote address on Monday while members battle over whether to authorize an investigation into the early days of the outbreak in Wuhan, as well as pushing for Taiwan to be made a full member of the organization over the rapid resistance of the CCP.

END

4/EUROPEAN AFFAIRS

Anti lockdown protests accelerate all across Europe..a second Covid 19 wave threat is also emerging

(zerohedge)

Anti-Lockdown Protests Accelerate Across Europe As Second COVID-19 Wave Threat Emerges

Anti-lockdown protests were seen in several European cities on Saturday in defiance of social distancing restrictions. From gatherings in London’s Hyde Park to Poland to Germany — people were furious about government-enforced lockdowns. Warmer weather trends, such as a heatwave across parts of Europe, could quickly affect mood negatively and lead to more social instabilities. 

These protests have been increasing over the last several weeks. Read:

Police in several German cities had their hands full on Saturday as thousands of people lined the streets. Officials in Stuttgart said the permitted number of 5,000 demonstrators was quickly exceeded, and mask-wearing was required, or people risked a 300 euro ($325) fine.

Ruptly

@Ruptly

Nearly 5,000 people took part in a rally against restrictions in on Saturday, ‘s largest such protest over the weekend.

On March 11, said that the measures were necessary in order “to win time in the fight against the virus.”

Embedded video

About 1,000 protesters were seen in Munich, around the Theresienwiese event grounds, which is the site of the now-canceled  Oktoberfest. We explained last month, the canceling of the event has severely impacted the local economy and could devastate local brewers to hop farmers.

Faruk Firat@FarukFirat1987

Jetzt Anti-/Regierung/-Proteste in . Deutsche Polizei sperrt Zugang zur Theresienwiese

Embedded video

Protesters in both Stuttgart and Munich were angry about lockdown measures enforced via Chancellor Angela Merkel. Other demonstrators were mad about rumors of a vaccine plan by Bill Gates.

Stuttgart protest 

An anti-vaccine protester in Stuttgart

German protests were led by several groups, including Resistance 2020 and COMPACT. The first group questions official government data on confirmed cases and deaths, and alleges the government is overinflating the data to seize more control over the population. The second group describes itself as a “sharp sword against imperial propaganda.”

“Why aren’t you telling us the truth, Mrs Merkel? How we are losing our freedom, jobs and health?” says COMPACT.

Folks on social media described the German protesters as “covidiots” who risk triggering a second wave of infections that could lead to extensions or stricter lockdowns. We noted last week that this would undoubtedly continue to crash Germany’s economy.

The economic effects of the countrywide lockdown have been devastating. Several weeks ago, we showed how the labor market had been obliterated.

Germany and other member states have begun to relax some lockdown restrictions, a move to restart the economy. Germany’s professional soccer league resumed games over the weekend without fans — as it appears reverting to pre-corona times will be a challenging and drawn-out process.

And for more color on reopening Europe, a border spat has erupted between Spain and France last week, suggesting a V-shaped recovery of the EU will not be seen this year.

Elsewhere, dozens of people in Poland were arrested for violating social distancing restrictions during protests. Police used tear gas to suppress demonstrators as the city of Warsaw said the gathering was illegal because there was no permit.

Notes from Poland 🇵🇱@notesfrompoland

There have been further protests in Warsaw today against the government’s lockdown measures and alleged lack of support for businesses.

Like last week, police clashed with and detained some protesters, including an opposition senator, Jacek Bury

Embedded video

Britain saw anti-lockdown and anti-vaccine protesters assemble in Hyde Park in central London and were met with police. Many chanted freedom songs and held signs blasting lockdowns. London Metropolitan Police Service arrested about a dozen people as police dispersed the crowd.

The Telegraph

@Telegraph

🚨 Jeremy Corbyn’s brother was arrested during an anti-lockdown protest in Hyde Park yesterday

📣 Piers Corbyn was heard claiming that 5G and coronavirus are linked

📌 Follow the latest coronavirus news here: https://www.telegraph.co.uk/global-health/science-and-disease/coronavirus-news-uk-lockdown-schools-deaths-cases-tests-latest/ 

Embedded video

ANews@anewscomtr

Anti-lockdown protesters were arrested in Hyde Park on Saturday at a rally to protest lockdown restrictions. While protesters faced off against police, others enjoyed a stroll round the London park

Embedded video

Across the Atlantic in the US, demonstrators held rallies requesting state governments to reopen economies so people can get back to work.

Nick: capitalism is the virus@RickNauchbauer

Reopen Nassau County/ Long Island Protest in East Meadow NY today! This is where I’m from 😂😂😂

Embedded video

Garrett Soldano@GarrettSoldano

Our ripple is spreading! Be proud Michiganders that our outcry has boiled over to other states!

The image below is from the protest today called “ReOpen San Diego”. And they have an order in San Diego that says, “No gatherings of more than one person”.

View image on Twitter

barely informed with elad 🕵🏻‍♂️@elaadeliahu

Joe Biden outs me as a Lib at the Reopen NY Protest to Anti-Vaxxers

Embedded video

Nick: capitalism is the virus@RickNauchbauer

Large crowd at the Reopen Long Island protest today in East Meadow. Most were not wearing masks and obviously very close to one another. The crowd even chanted at one point “No More Masks! No More Masks! Reopen Nassau!!!”

View image on Twitter

If a second COVID wave triggers additional lockdowns in the Western world — people will likely become more infuriated with government and result in larger social demonstrations.

 

end

France and Germany hatch a plan to help its poorer club med boys.  We await the Netherlands’ verdict on this issue

(zerohedge)

 

Euro, EU Bonds Surge On Merkel/Macron EU Bailout Fund Headlines

It’s not ‘coronabonds’ yet, but on a day like this it doesn’t matter.

Reuters headlines from France’s Macron and Germany’s Merkel have sparked a panic bid for EURUSD, European stocks (and US stocks), and European peripheral debt.

The two core European leaders agreed to back a plan for a 500 billion-euro ($543 million) recovery fund to help the European Union weather the worst recession on record.

Merkel said the fund will be within the framework of the bloc’s budget, which will have authority to borrow money.

EUR spiked…

Italian bonds were panic bid…

But, even as Germany and France find common ground, the world’s largest trading bloc isfar from reaching an agreement over a package to help stricken member states and this is not the official recovery plan which the European Commission is due to present May 27.

We await the response from Netherlands, who until now at least, have been a vocal opponent to commonly issued debt.

The plan, which will have to be endorsed by the European Parliament and national governments, would see most of the funds spent on public investments and reforms in the countries most deeply affected by efforts to contain the disease.

 

END
An Austrian study finds signs of human intervention in the development of the COVID 9
(Watson/Summit News)

Austrian Study Finds “Sign Of Human Intervention” In COVID-19

Authored by Steve Watson via Summit News,

A scientific study in Austria has found that SARS-CoV-2, the coronavirus that has led to a pandemic, was likely created in a lab, barring some “remarkable coincidence” that led to the virus naturally evolving to be optimised to attack human cells.

The study was led by Nikolai Petrovsky, a vaccine researcher at Flinders University. The scientists in his team discovered that the coronavirus is optimized for penetration into human cells, rather than animal cells, which means that the theory that it emerged from an animal market and jumped to humans naturally is unlikely.

Lifesite News reports that the scientists “used a version of the novel coronavirus collected in the earliest days of the outbreak and applied computer models to test its capacity to bind to certain cell receptor enzymes, called “ACE2,” that allow the virus to infect human and animal cells to varying degrees of efficacy.”

“They found that “the novel coronavirus most powerfully binds with human ACE2, and with variously lesser degrees of effectiveness with animal versions of the receptor.”

The authors believe this means that the virus “became specialized for human cell penetration by living previously in human cells, quite possibly in a laboratory.”

The Study notes that  “a virus would be expected to have highest affinity for the receptor in its original host species, e.g. bat, with a lower initial binding affinity for the receptor of any new host, e.g. humans. However, in this case, the affinity of SARS-CoV-2 is higher for humans than for the putative original host species, bats, or for any potential intermediary host species.”

It continues, noting that a “possibility which still cannot be excluded is that SARSCoV-2 was created by a recombination event that occurred inadvertently or consciously in a laboratory handling coronaviruses, with the new virus then accidentally released into the local human population.”

Dr Petrovsky added in a statement that, rather than being rapidly genetically spliced and mutated, the virus shows signs of being  ‘cultured’ to evolve over time.

“Our and other analyses of the genomic sequence of the virus do not reveal any artificial gene inserts that would be the hallmark of a gene jockey, genetic engineers who manipulate or even create viruses by splicing in artificial inserts into their genome.” Petrovsky said.

“These are generally easily recognisable and hence clear signatures of human intervention in the creation of a virus. The fact that these artificial inserts are not present has been interpreted by some to mean this virus is not the result of human manipulation.” he added.

“However, this logic is incorrect as there are other ways in which humans can manipulate viruses and that is caused by natural selection,” he continued, adding that “you can force [a] bat virus to adapt to infect human cells via mutations in its spike protein,” after culturing it for a few years.

“The result of these experiments, according to the doctor, would be “a virus that is highly virulent in humans but is sufficiently different that it no longer resembles the original bat virus.”

If all of this sounds familiar, it is because this is exactly what the scientists inside the Wuhan Institute of Virology were doing with bat borne coronaviruses.

From Live Science:

The WIV lab, along with researchers in the U.S. and Switzerland, showed in 2015 the scary-good capability of bat coronaviruses to thrive in human cells. In that paper, which was published in 2015 in the journal Nature Medicine, they described how they had created a chimeric SARS-like virus out of the surface spike protein of a coronavirus found in horseshoe bats, called SHC014, and the backbone of a SARS virus that could be grown in mice. The idea was to look at the potential of coronaviruses circulating in bat populations to infect humans. In a lab dish, the chimeric coronavirus could infect and replicate in primary human airway cells; the virus also was able to infect lung cells in mice.

That study was met with some pushback from researchers who considered the risk of that kind of research to outweigh the benefits. Simon Wain-Hobson, a virologist at the Pasteur Institute in Paris, was one of those scientists. Wain-Hobson emphasized the fact that this chimeric virus “grows remarkably well” in human cells, adding that “If the virus escaped, nobody could predict the trajectory,” Nature News reported.

In an email to LifeSite, Dr Petrovsky said that his study suggests that “there are some highly unusual features, including optimal human adaptation, that in the absence of identification of a close to identical virus in an animal population from which COVID19 could have arisen, would point in the direction of human intervention at some point in the evolution of COVID19.”

He added that scientists have been unable to find any evidence of this coronavirus strain present in animals, which would support the natural evolution theory.

“If an animal vector and virus could be found then of course this would resolve the matter completely,” Petrovsky noted, adding

“One would have thought that the Chinese would be intensively sampling all conceivable animals trying to find such a virus to exonerate their labs. If no such intense search is going on (which I don’t know one way or the other) then the inference could be that they are not looking because they already know what they might find.”

“Whilst the facts cannot be known at this time, the nature of this event and its proximity to a high-risk biosecurity facility at the epicentre of the outbreak demands a full and independent international enquiry to ascertain whether a virus of this kind of COVID-19 was being cultured in the facility and might have been accidentally released,”  Petrovsky concluded.

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Turkey intervention in Libya is not doing too good as Hafter is gaining strength.  Turkey demands a new NATO intervention in Libya which will not happen

(AlMasdarNews.com)

Turkey Demands New NATO Intervention In Libya: “Haftar Must Be Stopped”

Via AlMasdarNews.com,

Turkey issued a strong condemnation of the Libyan National Army (LNA) leader, Field Marshal Khalifa Haftar, accusing him of intensifying attacks on civilians.

The statement also called on NATO to intervene in order to stop the Libyan National Army and its supporters, especially Egypt, the UAE and France.

“Haftar and his supporters have become more aggressive by launching attacks targeting civilians,” he said, considering that it was similar to what he described as “the Syrian regime’s aggression against its people.”

“They are targeting civilians, including hospitals. Why this aggression?! Because they are beginning to lose their edge in the field,” the Foreign Ministry said.

They stressed that Turkey “believes that the only solution in Libya is the political one, and for that it seeks to achieve a ceasefire there.”

“In the next stage, Haftar must be stopped,” they continued. Those supporting it must be stopped. NATO should play an important role in this regard.”

Gregg Carlstrom

@glcarlstrom

At this point is there anyone left who hasn’t gone to fight in this war? “A team of Western mercenaries linked with two Dubai-based companies was briefly deployed to Libya to assist Russian-backed strongman Khalifa Haftar.” https://www.bloomberg.com/news/articles/2020-05-14/western-mercenaries-went-to-libya-to-help-moscow-s-man-un-finds 

Western Mercenaries Went to Libya to Help Moscow’s Man, UN Finds

A team of Western mercenaries linked with two Dubai-based companies was briefly deployed to Libya to assist Russian-backed strongman Khalifa Haftar in his offensive to capture Tripoli, according to a…

bloomberg.com

Turkish Foreign Minister Mevlut Cawushoglu said, “Egypt and the UAE, along with France, clearly support Haftar,” adding that “French hostility to Turkey has increased after the Peace Spring operation in northern Syria,” which was launched on October 9, 2019 against Kurdish forces, whom Ankara considers terrorists.

Turkey is the largest external supporter of the Libyan Government of National Accord (GNA), a political entity that is recognized by the United Nations.

end

 

6.Global Issues

Coronavirus update/Saturday

COVID-19 Deaths Top 300k, Cases Top 4.5 Million; Brazil & Russia Now World’s Most Dangerous “Hot Zones”: Virus Updates

Summary:

  • Germany’s Bundesliga re-starts play
  • FinMin Scholz mulls rescue package for towns, cities
  • Hungary ends Budapest lockdown
  • Global case total passes 4.5M, deaths top 300k
  • UK death toll nears 35k
  • Trump says US will restore some WHO funding
  • American soup kitchens see 70% spike in traffic
  • Cambodia claims it’s officially “virus free”
  • Mexico reports record jump in cases
  • Wuhan tests 100k+ during first day of mass-testing drive

* * *

Despite a few close calls, it appears Germany is pushing ahead with its reopening. And in a major symbol of Europe’s “return to normalcy” (as the first stirrings of a second wave of SARS-Cov-2 have emerged in mainland China, South Korea & Singapore), Germany’s Bundesliga, the German Federation’s top-flight soccer league, is holding its first round of games since the outbreak began on Saturday.

Five matches including a derby between Borussia Dortmund and Schalke 04 mark the restart of the league, though they are taking place under strict health and hygiene protocols. Stadiums are empty, coaches are wearing face masks and handshakes are banned.

Here’s the schedule, for any Europeans – or sports-deprived Americans – interested in watching (times all ET):

Additionally, German Finance Minister Olaf Scholz is reportedly working on an aid package worth €57 billion ($61.65 billion) to help towns and cities cope with a plunge in tax revenues caused by the coronavirus crisis. Dems in the US have argued that states need more aid to deal with their own drop in tax revenue, which is part of the reason they’re pushing for another relief bill (though the $3 trillion price tag they’re currently pushing is widely considered DOA).

As more European countries ease their lockdowns, Hungary PM Viktor Orban said Saturday he would gradually lift lockdown restrictions in Budapest beginning Monday, two weeks after it ended the lockdown in the rest of the country.

The biggest news Saturday morning is that the global number of coronavirus cases passed 4.5 million, according to data from Johns Hopkins University.

Unfortunately, as the outbreaks in Russia and Brazil flare out of control and testing ramps up for the first time, the number of new cases reported globally climbed to its highest level since late April, with 97,500 new cases (More than 1/4 were from Russia and Brazil alone).

Meanwhile, the global death toll from the virus has topped 300k.

On Saturday morning, Russia confirmed 9,200 new coronavirus infections, bringing the country’s official number of cases to 272,043.

While many places are unwinding their lockdowns – including countries like Brazil, which has seen the outbreak explode as its president has continued to resist any actions to suppress the outbreak even as health-care systems in the Amazon are overwhelmed – others are tightening restrictions. In Chile, the capital city Santiago is imposing a lockdown to keep people from entering as Brazil’s neighbors increasingly fear the outbreak in that country will make things worse for the entire continent.

The Hill

@thehill

Lockdown begins in Chile’s capital city after COVID-19 cases grow.

Embedded video

Moving on to the UK, the Department of Health and Social Care reported the latest batch of new figures Saturday morning. The UK’s confirmed deaths are now just a hair below 35k.

Department of Health and Social Care

@DHSCgovuk

As of 9am 16 May, there have been 2,489,563 tests, with 136,486 tests on 15 May.

1,742,028 people have been tested of which 240,161 tested positive.

As of 5pm on 15 May, of those tested positive for coronavirus, across all settings, 34,466 have sadly died.

CORONAVIRUS: Daily update As of 9am 16 May, there have been 2,489,563 tests, with 136,486 tests on 15 May. 1,742,028 people have been tested of which 240,161 tested positive. As of 5pm on 15 May, of those tested positive for coronavirus, across all settings, 34,466 have sadly died.

In the US, President Trump announced Saturday morning that he planned to restore 10% of the US’s funding for the WHO, putting the US on an even footing with China.

  • Trump Says U.S. Considering Restoring Partial Funding to World Health Organization
  • Trump Says U.S. Could Provide 10% of What It Previously Sent to WHO
  • Trump: New U.S. Contribution Would Match Amount China Is Giving to The Group

While many younger, single Americans are enjoying the enhanced unemployment benefits (indeed, many American workers are earning more per week via the combination of unemployment and additional relief than they would have working, according to data shared by the Wall Street Journal) others with families to feed are turning to food banks in unprecedented numbers. As the FT reported Saturday, “America’s food banks are being pressed into service as never before” as unemployment surges forcing many working-class and middle-class families to visit food banks for the first time.

Feeding America, the largest organization representing food banks in the US (it represents 200+ individual charities across the country), says it has experienced a 70% increase in the number of people seeking food assistance since the crisis began. Of the newcomers, ~40% say they’re visiting for the first time.

While this all might sound pretty dire for the world’s largest economy, a team of Goldman analysts has stumbled upon another potential complication. After rectifying America’s Treasury issuance with the Fed’s balance-sheet expansion, it appears that individual investors might be left with a $1.6 trillion wad of paper, ready to monkeyhammer interest rates higher. Keeping in mind the market’s reaction to Fed Chairman Powell on Wednesday, we suspect the Fed will be looking for any pretext to further accelerate its already-unprecedented balance sheet expansion.

Cambodia on Saturday reported that all of its confirmed coronavirus patients have now recovered from the disease, and the southeast Asian country hasn’t reported a single new case for weeks. Joining the growing number of European countries that are easing travel restrictions (but typically only for select nations within the Schengen zone), the Italian government passed a new decree to allow travel across the country, as well as to and from other European countries starting on June 3, Al Jazeera reports.

Mexico’s health ministry confirmed 290 additional coronavirus deaths on Saturday and 2,437 new infections, the largest jump in new cases since the start of the pandemic. The new infections brought confirmed coronavirus cases to 45,032 and 4,767 deaths in total, according to the official tally, though many suspect the true number of infections is  much higher due to the number of deaths recorded (evidence that the government has deliberately undercounted has also sowed widespread doubt). Mexico’s previous highest daily confirmed cases total was a day earlier on Thursday, when authorities reported 2,409 new infections.

Finally, the city of Wuhan has succeeded in conducting 113,609 nucleic acid tests on May 15, according to local health authorities. That’s approximately 1/10th of the number of daily tests they will need to carry out to hit their goal of testing 11 million ppl in 10 days.

As we have reported, Wuhan has launched a city-wide testing campaign after confirming its first cluster of COVID-19 infections since the end of the citywide lockdown that made the city’s residents prisoners inside their own homes.

The number of tests administered on May 15 in the city of 11 million residents marked a new record. But still, officials are nowhere near hitting their unrealistically ambitious targets.

end

A must read..the final collapse by Egon Von Greyerz

Von Greyerz: “You Can’t Avoid The Final Collapse”

Authored by Egon von Greyerz via GoldSwitzerland.com,

As the Nasdaq makes a new high for the year, the world outside the stock market timebomb is falling apart. For example the UN agency, The International Labour Organisation (ILO) reports that 1.6 billion jobs are at risk in the global economy. That is half of the global workforce of 3.3 billion. Particularly vulnerable are the 2 billion people in the informal economy. For most of these vulnerable people, this means no income, no food and no security reports the ILO. This is a human tragedy on a massive scale and most people in the Western world are totally unaware.

HALF UK ADULTS PAID BY THE STATE

Looking at the UK, 23 million people which is half of all adults are now paid by the state.  This includes people being furloughed, on unemployment benefits and public sector workers and pensioners. That is just an incredible proportion of the population which are getting free money for making no productive contribution. Yes, the human side is of course incredibly important and suffering people should be helped. The problem is only that THERE IS NO MONEY. What half of the adult population is receiving is money that doesn’t exist but is just printed out of thin air and thus has no real value.  

REAL US UNEMPLOYMENT 39%

If we take the US, Q2 GDP is forecast at -35%.  Over 20 million have lost their jobs and both small and big businesses are going into a black hole. Most of these 20 million have no savings and couldn’t survive for one month without government handouts. If we take the real US unemployment figure based on ShawdowStats, it is now 39%. If we compare that to the 25% unemployment during the depression in the 1930s, it is a staggering figure. 

If the world, as I believe, has now entered a secular downturn of major proportions, many of these 20 million will never get their jobs back. That either means no income, no food, and nowhere to live or the government assisting these people permanently. Both of these outcomes will lead to perdition.  No income means misery, disease and eventually a lot of people dying. Money printing is sadly no solution either. Once money is printed on a larger scale, the currency will be totally debased, become worthless with hyperinflation to follow. Just look at Venezuela with a major part of the population struggling to survive.

THERE IS NO SOLUTION

This is what is so sad with the current economic crisis – there is no solution. Nobody should believe that it is the Coronavirus that has caused this catastrophe for the world. CV was the catalyst but the underlying problems have been there for a long time. The Great Financial Crisis in 2006-9 was temporarily patched up with trillions of money printing but it was never solved. The GFC was only a rehearsal and now the world is facing the inevitable collapse of the financial system.

 

CENTRAL BANKS PANICKED IN AUTUMN OF 2019

That there was something rotten in the Kingdom of Denmark the World became crystal clear in the late summer and early autumn of 2019. The ECB then made it clear for a second time that they will do whatever it takes. And then the Fed started with daily and weekly Repos of $100s of millions. We have never been told the reason for these Central Banks’ panic actions but it is totally clear that the financial system is crumbling under the burden of massive debts and derivatives.

And then in February-March this year the most horrible catalyst in the form of a pandemic hit a fragile world economy at the worst possible moment. In my opinion, the world economy, lumbered with debts and deficits, would have crashed without the Coronavirus. But CV makes the problem much bigger and will cause the economic collapse to happen much faster.

What central banks around the world are doing will not make one iota difference when it comes to saving the world economy. You cannot solve a debt problem with more debt. The bankers have managed for some time to fool the world that creating money out of thin air can create wealth. But the world will very soon realise that it can’t. Global debt has more than doubled since the last crisis started. It was $125 trillion in 2006 and now global debt is over $270 trillion. With the current money printing that figure will soon be over $300T and later increase by $100s of trillions. 

MISPLACED IRRATIONAL EXUBERANCE

It is totally incomprehensible that stock market investors have for 7 weeks been buying the dip in the light of the world collapsing around them. They seem to be totally oblivious to the world economy. Instead they are just focusing on the injection of liquidity in the form of worthless money. These investors seem to believe that finance stands above everything else and is totally detached from what is happening in the real world. 

It seems that these investors believe there is only one important sector in the economy which is finance and money printing. The worse the economy turns, the more money is printed and stock market investors love it. This is why the Nasdaq Composite has just made a new high for the year. This is just unreal. The world economy is totally paralysed but who cares when you have money printers who can just create trillions out of thin air. 

And who cares about companies making profits when central banks can create all the money the world needs. So it is really fortunate for investors that the money business is booming and causing all this euphoria in stock markets. To make money in the stock market you don’t need companies producing goods. All you need is a friendly central banker who keeps on printing.  Or at least until now!

YOU CAN’T AVOID THE FINAL COLLAPSE 

What these investors don’t realise is that “there is no means of avoiding the final collapse of a boom brought about by credit expansion”. This is what the wise Austrian economist von Mises said. I urge you to read his words below:

Central banks and governments are now printing more money which makes it clear that we won’t see a voluntary abandonment of credit expansion

Instead, the world is now in the final stage of credit expansion which will lead to hyperinflation and “total catastrophe of the currency system involved.”

Sadly this is totally unavoidable.

So what is going to be the likely effect on markets in the coming weeks and months:

MARKETS

The irrational exuberance in stocks is soon coming to an end. It could end next week or last another couple of weeks. But whenever it comes, the next fall will come as a shock for investors and be at least as bad as the initial fall. Long term we are looking at stocks collapsing more than 95% in real terms. 

GOLD AT $20,000

Let’s just look at the Dow/Gold ratio which topped in 1999 at 45 and is now 13.7. This ratio has been in a correction up since 2011 but has now resumed the downtrend. This correction is very similar to the correction in the 1970s. See the red arrows below in the graph.

What makes this 200-year chart so fascinating is the amplitude of the moves. Since the creation of the Fed in 1913 and the closing of the gold windows by most countries (the US being the last in 1971), the chart is showing major swings and tops and bottoms are much more exaggerated than before 1913. This is caused by the constant interference of central banks and their manipulation of markets. There are no real markets today. Prices are set in a casino that has little resemblance with reality. The credit expansion and fake money has led to fake prices in virtually all instruments. If you don’t believe that, just wait to see what will happen next in markets.

As the Dow/Gold chart shows above, the next target in the ratio is likely to be 0.5:1 or lower. In 1980 it was 1:1 (Dow 850 and Gold $850). The trend line is now at 0.5 which means that the Dow is likely to fall by at least 96% vs gold in the next few years. In my view, it could even overshoot and go a lot lower.

But even if the Dow only fell to say 10,000, at a Dow/Gold ratio of 0.5, that would mean a gold price of $20,000 which I believe is very probable, even without high inflation.

SILVER AT $1,666

Even more interesting is Dow/Silver Ratio. The Gold/Silver ratio is now over 100 but is in the next few years likely to return below the long term average of 15.

If we then look at the Dow / Silver ratio this shows how traditional investments will totally collapse against hard assets and especially against silver which is dramatically undervalued. The chart below shows what a major move we are likely to see. This ratio is now at 1573. In 1980 it was at 17:1. If it falls to the long term trend line it could reach 6. That is a 99.6% fall of the Dow vs Silver in the next few years. That is both spectacular or devastating depending on which side you take. So silver is likely to outperform most investments in the next few years and lead to enormous gains. But we must remember that silver is incredibly volatile and not for widows and orphans. We recommend to our investors to hold 20-25% silver and 75-80% gold in order to sleep well at night.

Let’s say that the Dow declines to 10,000 in the next few years. With a Dow/Silver ratio of 6, that would mean a silver price of $1,666. Certainly not impossible.

Normally the real moves in the metals are always led by silver. The gold/silver ratio has come down from 126 in mid-March to 110 today and looks like it is about to fall more strongly very soon. Silver is now going up slightly faster than gold which is what we want to see when the uptrend in the metals resume.

So I expect a major move up in gold and silver to be imminent. But as I keep warning investors, you are not holding metals for gains measured in worthless paper money but for financial survival and for protection of your wealth against a collapsing financial system. 

end

Michael Every…

Rabobank: Who? WHO?

Submitted by Michael Every of Rabobank

Who? None other than Fed Chair Powell – saying on ’60 minutes’ for a mainstream audience that “Assuming there’s not a second wave of the coronavirus, I think you’ll see the economy recover steadily in the second half of this year.” However, he then added “For the economy to fully recover people will have to be fully confident, and that may have to await the arrival of a vaccine,” and that a full recovery could take until the end of 2021. So while no Great Depression in his eyes, no V-shape either, and no return to normality until medicine or nature step up to the plate. That looks a timely call as Friday saw retail sales collapsed the most on record in April.

Powell also reiterated that he was not of the view that negative rates will be useful in the US, but that there is a lot more the government can do, perhaps via direct support to states and municipalities. Moreover, he stressed there is a lot more the Fed can do too – so yield curve control and more QE? At least that’s what he’s most likely to explain to the Senate when he testifies tomorrow. In which case, then Fed will be hoovering up more of the safe (and not so safe!) US assets out there that markets would otherwise be able to get hold of. And failing to do so will see a further USD liquidity squeeze as the rest of the market steps up to buy those safe assets instead.

Meanwhile, the ‘WHO’ is in focus today as geopolitics comes (even more obviously) to the World Health Organisation. We are going to see a motion (with the final vote apparently Wednesday) to push for an international investigation into the origins of COVID-19. The one that the sudden problems exporting Australian beef and barley to China have nothing to do with. (And – who?! The Aussie Trade Minister is now warning about the risks of doing business with China and that firms may want to look at diversification!)

So far at least 62 countries including Russia(!), and perhaps as high as 116 together with a block of African states, are co-sponsoring a motion for a virus investigation. China and its supporters are not. The event has all the makings of a contemporary Khrushchev-bashing-his-shoe-on-the-table-at-the-UN moment.

More so as on Friday the US Commerce Department tightened its limitations on the export of key technology to Huawei, this time with what look like real teeth, to target third parties and third countries; and China’s Global Times immediately reported that Beijing is considering striking back with measures at key US firms, including Boeing. Plus US Secretary of State Pompeo has just warned Hong Kong that “any action to interfere and impinge on Hong Kong’s freedoms” in the form of steps against US journalists, who have already had to leave China in some cases, “would impact” the looming US assessment of Hong Kong’s autonomous status.

The latter will now come after this Friday’s National People’s Congress (NPC) in Beijing, which is expected to announce several key policy decisions with market impact. One will be if there is a GDP growth target for 2020 or not, and if so how high; another will be how to achieve it, with the same fiscal vs. monetary vs. outright monetization debates reportedly taking place in Beijing as in the West, and as debt soars regardless – the IIF now sees China’s total debt-to-GDP ratio at 314% and rising rapidly; a third may be China’s international stance, and whether to continue to with its “Wolf Warrior” diplomatic stance. Recall all these decisions will be taken as the BIS show that CNY only accounts for 4.3% of international currency transactions, up from 4.0% in 2016, vs. 88% for USD, which is also on the other side of 95% of CNY transactions. Indeed, the BIS conclude the Chinese currency has made “marginal progress” in its internationalisation in the past three years. That backdrop does not sit so well with either major monetization of debt or global feather-ruffling.

Can one say the same for the UK and GBP? PM Johnson, taking brickbats at home on several fronts, has said that the virus is going to linger in Britain, which does not suggest a return to full normality. Johnson also apparently refuses to embrace austerity, which is sensible,…but then places the responsibility on the BOE – who are already monetizing a small portion of the new UK debt, pretending that QE is not more of less the same thing in real terms, and are now openly talking about negative rates ahead. All that is happening as the UK and the EU are walking in opposite directions over a new trading relationship, with a non-negligible likelihood that Hard WTO Brexit will follow at the end of the year. Put that kind of major monetization and global feather-ruffling together and we have Cable at 1.2099 when we started at 1.32, so down 8.7%.

So this remains the trend we expect to see: more monetary easing; more fiscal easing; more de facto monetization behind acronym fig-leaves – or maybe without; and hence more downwards pressure on FX and upwards pressure on USD. Oh, and lots more geopolitical rumbling both as cause and effect. Look to Japan and see why.

Apart from the US, who can run a massive current-account deficit and still MMT away happily because of the global need for USD, it’s that magical current-account surplus that will dictate if a country can sustainably use MMT to prop up its post-Covid economy without markets then pricing for a Weimar or Zimbabwe endgame. BUT NOT EVERYONE CAN DO SO AS A SURPLUS IN ONE LOCATION IS A DEFICIT SOMEWHERE ELSE (and the US can’t and won’t be that for everyone. Certainly not for China.) That means more supply-chains shifting, and from a far broader interpretation of ‘national security’ than just who and can’t make masks.

It’s about who can and can’t make money.

end

 

At the WHO conference, over 100 countries back a Covid China probe

(zerohedge)

“We Are With Them!” – Trump Celebrates As More Than 100 States Back COVID China Probe

President Xi’s generous promises to share a (non-existent) Chinese COVID vaccine “with the world” while extending some $2 billion in aid to the poorest nations apparently failed to dissuade the 54-member African Union bloc of nations from supporting a resolution calling for a WHO-led investigation into China’s handling of the coronavirus outbreak.

Of course, Xi said during his keynote address during this year’s annual meeting of the WHO (which is being held virtually) that China supports a “comprehensive evaluation” of the factors behind the outbreak, while Chinese tabloid editors have sneered that the world better not complain when the outcome shows the US, not China, is responsible for the outbreak.

Hu Xijin 胡锡进

@HuXijin_GT

China is not afraid of an independent investigation into the origin of the coronavirus, hope the US is not afraid of it either. Regardless where the virus originated, China’s stance is the same. But if the investigation finds it originated in the US, Trump’s reelection is doomed.

President Trump promised in a tweet shortly after the news broke that “we are with them” regarding Australia’s resolution for a COVID inquiry with a tweet…

Donald J. Trump

@realDonaldTrump

We are with them! https://twitter.com/sbsnews/status/1262114445536440320 

SBS News

@SBSNews

India, Japan, Britain, Canada, New Zealand, Indonesia, Russia, and all 27 EU member states are backing Australia’s push for a probe into the COVID-19 pandemic. https://bit.ly/2Zd6wJS

…which prompted even more Chinese disinformation.

Hu Xijin 胡锡进

@HuXijin_GT

The WHA should take note: President Trump said last week that the US began developing COVID-19 vaccine on Jan 11. But at that time the whole world, including China, knew little about this virus, where did the US acquire the knowledge? It should be a focus of the investigation.

A coalition consisting of more than 110 nations has formed to back the inquiry, according to reports in the Australian press.

The African Union’s 54 member states will co-sponsor the Australian motion, joining 62 other countries including Russia, Indonesia, India, Japan, Britain, the US and Canada, along with all of the European Union’s 27 members as well as Brazil, South Korea, Mexico, Turkey and New Zealand.

Australian Foreign Minister Marise Payne on Monday said it was encouraging to see so many countries backing the inquiry.

“I think what it illustrates is a broad view that given the experience of COVID-19 – over 300,000 deaths, millions of people around the world losing their jobs, the impact on economies from one corner of the globe to the other – that there is a strong view that it is appropriate to engage in a review of what has happened.”

“I don’t want to preemptively speculate about the outcome, those discussions will be under way later this evening. I think it’s a win for the international community.”

Repudiating Beijing’s claims that the investigation is ‘political sabotage’, Australia’s Deputy Chief Medical Officer Paul Kelly said on Monday it was important to “get to the bottom” of what had happened during the early days of the outbreak.

“I think the most important thing, rather than apportioning blame to one particular country or another country, is that we get to the bottom of what’s happened. And part of that is about the origin, where this virus came from,” he reportedly told a group of journalists.

Meanwhile, Australia is mulling whether to file a complaint against China with the WTO over the 80% tariffs on barley exports imposed on Monday after an “investigation”. It’s just the latest reminder that Beijing is no stranger to ‘political sabotage’ of its own.

As we noted earlier, Rabobank’s Michael Every warned clients in a note published Monday morning that this year’s WHO meeting will be especially tense, saying it “has all the makings of a contemporary Khrushchev-bashing-his-shoe-on-the-table-at-the-UN moment.”

end

 

7. OIL ISSUES

OIL/IRAN/USA/VENEZUELA

At least 5 Iranian tankers loaded with gasoline is heading across the Atlantic to feed gas starved Venezuela. We may end up with a tanker off off the Venezuelan coast.

(zerohedge)

US Headed For Another ‘Tanker War’ With Iran – This Time Off Venezuela’s Coast

Iranian state TV has announced at least five least five Iranian-flagged tankers are transporting fuel to Venezuela through the Atlantic Ocean and plan to break the American blockade on the Latin American country.

Iran has warned that any US attempt at intercepting its fuel tankers “would have serious repercussions for the Trump administration ahead of the November elections.”

 

File image via National Iranian Oil Tanker Company (NITC)

State-funded PressTV underscores that “Iran is shipping tons of gasoline to Venezuela in defiance of US sanctions on both countries in a symbolic move guaranteed by Tehran’s missile prowess.”

Both countries have been targeted under US sanctions and various levels of covert military action of late. President Trump has taken a personal interest in renewed pressure on Maduro, within the past months reportedly pushing his generals to go forward with a ‘naval blockade’ of the socialist nation.

State media has further emphasized that the Iranian fuel tankers will not attempt to conceal their presence or mission: “Iran has intentionally hoisted its own flag over the huge tankers which are navigating through the Atlantic before the eyes of the US Navy,” according to the report.

Reuters has also reported that US defense officials are planning a potential response:

The United States has a “high degree of certainty” that Venezuelan President Nicolas Maduro’s government is paying Iran tons of gold for the fuel, the official said, speaking on condition of anonymity.

“It is not only unwelcome by the United States but it’s unwelcome by the region, and we’re looking at measures that can be taken,” the official said.

The contentious issue of closer ties between Tehran and Caracas became center stage after in April a series of sanctioned Iranian Mahan Air flights landed in Venezuela to transport badly needed equipment to fix fuel refining plants for domestic gas consumption amid a severe national shortage.

Reuters Venezuela

@ReutersVzla

Exclusive: U.S. weighs measures in response to Iran fuel shipment to – source https://reut.rs/3btmGBD

View image on Twitter

Secretary of State Pompeo at the time called on all countries to block airspace for such ‘banned’ flights. In the past months the US administration reportedly ordered a naval build-up in the Caribbean in order to thwart ‘illegal’ sanctions-busting activities involving Venezuela.

With the Iranians now brazenly advertising their efforts, and with Trump apparently in the mood to renew counter-Maduro efforts, things look headed toward another ‘tanker war’ showdown such as played out in the Persian Gulf and Mediterranean last summer (when the UK and Gibraltar captured an Iranian tanker, but then Tehran returned the favor with the IRGC capture of the Stena Impero tanker).

But given such a scenario could repeat in what the US sees as its own backyard of the Caribbean, things would get much messier and likely more aggressive.

END
CHINA/OIL
A record 117 tankers each carrying around 2 million barrels of oil is heading to China
(Paraskova/OilPrice.com

A Record Fleet Of 117 Tankers Is Bringing Super Cheap Crude To China

Authored by Tsvetana Paraskova via OilPrice.com,

While the rest of the world is tentatively coming out of lockdowns, China is taking advantage of the cheapest crude oil in years to stock up as demand is starting to return in the world’s largest oil importer, Bloomberg reported on Friday, citing tanker-tracking data it has compiled.

At present, a total of 117 very large crude carriers (VLCCs) – each capable of shipping 2 million barrels of oil – are traveling to China for unloading at its ports between the middle of May and the middle of August. If those supertankers transport standard-size crude oil cargoes, it could mean that China expects at least 230 million barrels of oil over the next three months, according to Bloomberg. The fleet en route to China could be the largest number of supertankers traveling to the world’s top oil importer at one time, ever, Bloomberg News’ Firat Kayakiran says.

Many of the crude oil cargoes are likely to have been bought in April, when prices were lower than the current price and when WTI Crude futures even dipped into negative territory for a day.

Last month, emerging from the coronavirus lockdown, China’s oil refiners were already buying ultra-cheap spot cargoes from Alaska, Canada, and Brazil, taking advantage of the deep discounts at which many crude grades were being offered to China with non-existent demand elsewhere.

China was also estimated to have doubled the fill rate at its strategic and commercial inventories in Q1 2020, taking advantage of the low oil prices and somewhat supporting the oil market amid crashing demand by diverting more imports to storage, rather than outright slashing crude imports.

China’s crude oil imports jumped in April to about 9.84 million bpd as demand for fuels began to rebound and local refiners started to ramp up crude processing, according to Chinese customs data cited by Reuters.

end

8 EMERGING MARKET ISSUES

BRAZIL/CORONAVIRUS UPDATE

“Bolsonaro Is A Virus” – Opposition Leader Calls For President’s Impeachment As Brazil Reports Record 15k Cases In A Single Day

It’s become blindingly obvious that the coronavirus outbreak in Brazil has spiraled out of control, offering an example of the consequences of minimal containment efforts, and causing unease across Latin America, as Brazil’s neighbors move to close borders to ensure Brazilians don’t carry the virus across the border.

As the situation spirals out of control, President Jair Bolsonaro is spending more time egging on his most radical supporters, who are now openly calling for a military takeover of the government, and a return to a military dictatorship with Bolsonaro at the head. Though, as the Washington Post was forced to admit, most Brazilians view the likelihood of a military intrusion into public life as remote.

Just hours after Brazil’s health minister resigned following less than a month on the job, the country’s public health officials reported a record 15,305 cases during the prior day. Before resigning, Health Minister Nelson Teich had criticized Bolsonaro’s presidential decree calling for beauty parlors and gyms to reopen. While Teich gave no reason for his resignation, his predecessor was sacked by Bolsonaro for disagreeing with the president’s opposition to lockdowns. Bolsonaro believes that the virus is nothing more than a “little flu” and that it will inevitably spread.

Brazil’s Globo newspaper reported that Teich disagreed with Bolsonaro’s insistence on using hydroxychloroquine and chloroquine to treat the virus, and sources said this disagreement was the last straw.

Military members of Bolsonaro’sn cabinet are pushing for deputy health minister Eduardo Pazuello, an army general on active duty, to become the new health minister, making his current “interim” position permanent, according to Reuters.

Teich’s predecessor, Luiz Henrique Mandetta, was fired in April after he urged Brazilians to observe social distancing and stay indoors.

Over the past week, Brazil has surged past Germany and France on the global coronavirus depth chart and, in terms of its coronavirus caseload, it has become arguably the world’s worst hotspot, since epidemiologists suspect that more than a million cases have probably gone diagnosed, along with tens of thousands of deaths.

The record number of cases brought Brazil’s total north of 218,000 cases, and the 824 new deaths recorded in the last day brought Brazil’s death toll to 14,817.

The governor of Sao Paolo state lashed out at Bolsonaro on Friday, comparing him to a virus: he said Brazil is suffering from two viruses right now. the coronavirus, and the Bolsonaro virus.

Karim RAFFA@karimraffa

“Unfortunately right now in Brazil, we combat two virus: the coronavirus and the Bolsonaro virus.”

João Doria, Sao Paulo’s governor says the decisions he’s making for his city are backed by science, and not politics pic.twitter.com/mhNzfvQhwD @QuickTake

Embedded video

While his supporters push a military takeover, Congressional opposition leader Alessandro Molon warned that Brazil was heading toward a public health catastrophe, and has started pushing for Bolsonaro to be impeached.

“Bolsonaro does not want a technical minister, he wants someone who agrees with his ideological insanity, like ending social distancing and using chloroquine,” Molon, a lawmaker from the Brazilian Socialist Party, said in a statement.

Bolsonaro’s handling of the coronavirus has been widely criticised globally as he has minimised the severity of the disease and told Brazilians to ignore quarantine restrictions.

The most hard-hit areas of Brazil are in most cases also among the most remote. Yesterday, the Washington Post published a story about the crisis in Manaus, a city of 2 million people on the Amazon River deep in the rainforest. More than 2,000 people died in Manaus last month, more than 4x the normal rate.

The city is rapidly running out of coffins, hundreds are dying at home – either because they can’t get treatment at the hospitals or because they fear they won’t – and ambulances race down streets with no clear destination, waiting for patients to die so more beds can open up.

Dwindling supplies, deteriorating health systems, endemic corruption and mismanagement have all made it impossible for developing nations to muster the same response to the crisis that Spain, Italy and the US have. In Guayaquil, Ecuador, bodies have been left out in the streets. In Loreto, Peru, corpses have been stacked haphazardly in a small hospital room, and in Brazil, patients spend their last hours and days on this planet waiting in chairs in crowded hospital emergency rooms.

After years of economic recession, Brazil has neither the money, tools or personnel to confront the problem as it stands.

If there’s any major country that’s truly at risk for a complete unraveling of the social fabric, at this point, it’s probably Brazil.

END
Coronavirus/update/Sunday

 

India Extends Lockdown, Spain Reports Fewer Than 100 Deaths For 1st Time Since March: Virus Updates

Summary:

  • Georgia reopening better than expected
  • Beijing moves to suppress latest outbreak
  • India extends lockdown for another 2 weeks
  • India reports another 5k cases
  • Spain reports fewer than 100 deaths
  • Australia responds to China’s latest trade threats
  • Brazil reports another massive jump in new cases
  • China implicitly blames Russia for latest outbreak

*. *. *

Update (1200ET): New York Gov Andrew Cuomo is holding his daily press briefing.

Andrew Cuomo

@NYGovCuomo

Holding a briefing with updates on . Watch Live: https://www.pscp.tv/w/cZAFrzIyNjcxMDN8MXluSk9wYWdnUEV4UuiEFNRZLntPF5Vg9Zgh6OM4vKG-nqchJxi8KCOJPyoL 

Andrew Cuomo @NYGovCuomo

Holding a briefing with updates on #Coronavirus. Watch Live:

pscp.tv

Last night, Propublica published an extensive investigative report about the discrepancy between the number of deaths in NY and Cali – NY saw 10x the number of deaths as the country’s most populous state, according to official numbers. Though it’s worth keeping in mind that initial ‘surveillance’ studies suggest a shockingly deep level of penetration. The piece blamed a “childish” “cold war” between NYC Mayor Bill de Blasio and Cuomo for NY’s delayed response.

*. *. *

During our morning rounds this morning, we noticed an interesting pattern in the headlines: Many stories seemed to focus on the “newest” international hotspots – Russia and Brazil– but we found almost nothing about the successes in Georgia which we first reported last week.

While former President Barack Obama regaled the nation’s graduates about how they shouldn’t always trust the ‘people in charge’ – a message that, we suspect, was interpreted in wildly different ways by students of different political orientations and feelings about leadership during our present predicament – public health officials in Georgia, along with Brian Kemp, who defied the leader of his own party to move forward with his plan, have now reported three weeks of declines in cases, deaths and hospitalizations.

Even Dr. Fauci expressed dismay over Georgia’s plans, and suggested it would lead to a spike in deaths and new cases. So far at least, that hasn’t materialized.

The state’s reopening has outperformed even the sunniest projections (projections which – remember – were developed by scientists, not politicians).

Clay Travis

@ClayTravis

Georgia has now been open for three weeks & cases, hospitalizations and deaths continue to decline. Why isn’t Georgia the number one story in America? Simple: because the news is good.

View image on TwitterView image on Twitter

Yet, the same Democrats who dismissed the threat posed by the virus back in January (while the virus was already very possibly spreading in New York, California and elsewhere) are now demanding even more money to allow Americans to sit at home all through the summer. The politicized nature of this crisis has alarmed opinion columnists. But for most regular Americans, we suspect it came as less of a shock.

As we reported earlier, the CCP is scrambling to contain another outbreak in a remote northeastern province situated along China’s border with Russia (all while Beijing implicitly blames Russia for the outbreak by pinning the responsibility on citizens returning from Russia), while also rolling out a mass testing plan in Wuhan that some ‘experts’ have warned could actually contribute to another outbreak (by forcing millions of people to gather in densely packed lines while they await their turn to be ‘swabbed’).

But in Beijing, where most of the foreign journalists living in China reside, the government has just told citizens that they can move about outside without their masks. However, at least one CNBC reporter claimed she still didn’t feel ‘safe enough’ to forego the masks.

Eunice Yoon

@onlyyoontv

Masks outdoors no longer necessary in Beijing, says city CDC. Center adds people still should avoid close contact with others, encourages outdoor exercise to improve quality of life and health, state media reports. https://enapp.chinadaily.com.cn/a/202005/17/AP5ec0b116a31059ae470d8d2d.html 

Eunice Yoon

@onlyyoontv

Not yet. But others did when I took a walk in the park today. https://twitter.com/jing1989/status/1261902437331251202 

😷@jing1989
Replying to @onlyyoontv

Do you personally feel safe enough to take off your mask outside in Beijing?

In India, PM Narendra Modi extended his country’s 2-month-old-lockdown – one of the most strict in the world – until May 17. This now fourth extension – which some locals are calling ‘lockdown 4’ – will inevitably add to the pressures facing the Indian economy. A team of analysts at Goldman Sachs said in a note to clients that “the deeper trough in our Q2 forecasts reflects the extremely poor economic data we have received so far for March and April, and the continued lockdown measures, which are among the most stringent across the world.”

Among other groups, migrant workers have been hit particularly hard as hundreds of thousands of Indians have been effectively stranded abroad or far from home inside India.

Travel will be closed across India until the end of May, and restaurants, bars, schools and other establishments will also remain closed while the government gradually loosens restrictions, though some shops as well as manufacturing and farming have been allowed to reopen or resume.

The Indian Health Ministry on Sunday reported a record jump of nearly 5,000 cases in the past 24 hours, raising the number of confirmed cases to 90,927, with 2,872 deaths. India was reporting fewer than 500 positive cases and nine deaths when the lockdown was first imposed on 25 March.

As we reported yesterday, Brazil remains the worst affected country outside of the US by daily deaths and cases. It recorded its second-highest daily increase in infections yesterday with 14,919 newly confirmed cases, bringing the total to 233,142. Over the last four days alone, Brazil has recorded 55,553 infections.

While the newest batch of hotspots (Brazil, Russia, northeastern China) flare up, Spain reported fewer than 100 deaths over the past 24 hours, marking the first time the country has seen so few deaths since mid-March. Spain’s ministry of health said on Sunday that 87 people had died, the lowest tally since March 16 (just 2 days after the Spanish government announced one of Europe’s most restrictive lockdowns). That contrasts with the peak daily death toll of 950 on April 2.

As the tensions between Beijing and Australia’s conservative government intensify, Canberra warned Sunday that China’s “unpredictable regulatory interventions” in trade are making it more difficult for Australian businesses to invest in the economic “bilateral relationship” that has driven a historic 30-year economic boom in Australia.

After breaking above 4.5 million cases yesterday, the number of ‘official’ coronavirus cases topped 487k while deaths neared 310k.

Finally, as public furor over the government’s new guidelines intensifies, Boris Johnson acknowledged this morning that some people will feel “frustrated” by this lack of clarity as the UK reminds a step or two behind Germany, Spain and even France.

end

 

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

Euro/USA 1.0820 UP .0006 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 GREEN

 

 

USA/JAPAN YEN 107.27 UP 0.268 (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 1.2152   UP   0.0066  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.4040 DOWN .0061 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  MONDAY morning in Europe, the Euro ROSE BY 6 basis points, trading now ABOVE the important 1.08 level RISING to 1.0820 Last night Shanghai COMPOSITE CLOSED UP 6.96 POINTS OR 0.21% 

 

//Hang Sang CLOSED UP 137.30 POINTS OR 0.48%

/AUSTRALIA CLOSED UP 1,18%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 137.30 POINTS OR 0.58%

 

 

/SHANGHAI CLOSED UP 6.96 POINTS OR 0.21%

 

Australia BOURSE CLOSED UP  1.18% 

 

 

Nikkei (Japan) CLOSED UP 96.26  POINTS OR 0.48%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1764.40

silver:$17.55-

Early MONDAY morning USA 10 year bond yield: 0.66% !!! UP 2 IN POINTS from FRIDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.36 UP 3  IN BASIS POINTS from FRIDAY night.

USA dollar index early MONDAY morning: 100.28 DOWN 13 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  MONDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.89% 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: 0.80%//DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,67 DOWN 19 points in basis points yield from yesterday./

 

 

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

 

GERMAN 10 YR BOND YIELD: RISES TO –.47% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.14% 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 MONDAY

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

Euro/USA 1.0877  UP     .0063 or 63 basis points

USA/Japan: 107.37 UP .378 OR YEN DOWN 38  basis points/

Great Britain/USA 1.2208 UP .01206 POUND UP 121  BASIS POINTS)

Canadian dollar UP 127 basis points to 1.3975

 

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The USA/Yuan,CNY: AT 7.1092    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1235  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8844 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield UP 7 IN basis points from FRIDAY at 0.71 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.43 UP 10 in basis points on the day

Your closing USA dollar index, 99.83 DOWN 57  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 MONDAY: 12:00 PM

London: CLOSED  UP 255.47  4.40%

German Dax :  CLOSED UP 497.45 POINTS OR 5.71%

 

Paris Cac CLOSED UP 223.02 POINTS 0.50%

Spain IBEX CLOSED UP 310.20 POINTS or 4.79%

Italian MIB: CLOSED UP 567.29 POINTS OR 3.37%

 

 

 

 

 

WTI Oil price; 33.05 12:00  PM  EST

Brent Oil: 35.39 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    72.67  THE CROSS LOWER BY 0.93 RUBLES/DOLLAR (RUBLE HIGHER BY 93 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.47 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 :  32.47//

 

 

BRENT :  35.16

USA 10 YR BOND YIELD: … 0.73 up 8 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.44..up 11 basis  points..

 

 

 

 

 

EURO/USA 1.0918 ( UP 103   BASIS POINTS)

USA/JAPANESE YEN:107.33 UP .375 (YEN DOWN 38 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 99.61 DOWN 79 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.21666 UP 110  POINTS

 

the Turkish lira close: 6.8846

 

 

the Russian rouble 72.77   UP 0.83 Roubles against the uSA dollar.( UP 83 BASIS POINTS)

Canadian dollar:  1.3948 UP 155 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.47%

 

The Dow closed UP 911.95 POINTS OR 3.85%

 

NASDAQ closed UP 220.21 POINTS OR 2.44%

 


VOLATILITY INDEX:  28.69 CLOSED DOWN 3.20

LIBOR 3 MONTH DURATION: 0.3805%//libor dropping like a stone

LIBOR/OIS:  .3185%

TED SPREAD:  3 MONTH TREASURY YIELD VS LIBOR: .2455%

 

USA trading today in Graph Form

Markets Go Manic Thanks To Money-Printing, Moderna, & Merkel

“I mean, that really got out of hand fast…”

Futures show the mania started early (Powell), was extended before the open (Moderna‘s vaccine headlines), and extended around the EU close (Merkel Macron)…Small Caps were the biggest gainers (futs were limit up just ahead of open) with Nasdaq the laggard on the day…a weak close was notable however…

But all major US indices (ex-Transports) are now green for May…

Source: Bloomberg

In fact, Powell’s promise to do “whatever it takes” sparked the greatest opening buying pressure in history at today’s open…(Who the hell was seriously surprised by anything Powell said?)

Source: Bloomberg

But the Moderna meltup really took it to ’11’:

  • *TRUMP SAYS TODAY WAS VERY BIG DAY THERAPEUTICALLY
  • *TRUMP SAYS TODAY WAS BIG DAY FOR CURES, VACCINES
  • *TRUMP SAYS THERAPEUTICS, CURES MORE IMPORTANT THAN VACCINES NOW

So, to clarify the day’s early action – we soared on the back of Fed fears and promises to print more due to bad news and we soared on positive vaccine headlines which would end the bad news.

Macron and Merkel made some promises they can’t keep alone (i.e. the Dutch among others have to agree to the joint debt malarkey) but that didn’t matter today. The euro soared and peripheral debt yields crashed…

Source: Bloomberg

Crude oil exploded higher into tomorrow’s June contract expiration, further reassuring stock market buyers that… well demand must be back, right? June WTI topped $33 intraday (the highs from before the crash) before fading into settlement…

Just feel sorry for all the muppetry who was buying USO and utterly failed to gain anything…

Source: Bloomberg

Gold and Silver were clubbed like baby seals on the Moderna vaccine news – after ramping higher after Powell’s promise to do more money printing…

Gold was down on the day…

But silver held on to its gains… even with the clubbing

And, aside from a brief spike, the gold/silver ratio continued to slide…

Source: Bloomberg

Bonds were a bloodbath today (all but 2Y now higher on the month)…

Source: Bloomberg

10Y Yields exploded higher today

Source: Bloomberg

Powell manage to reignite credit market exuberance…

Source: Bloomberg

The Dollar was also puked lower today (EUR strength)

Source: Bloomberg

Bank stocks ripped higher today…

Source: Bloomberg

The Virus Fear Trade (Long Food, Short Leisure) plunged…

Source: Bloomberg

Another new record highs for FANG Stocks…

Source: Bloomberg

Cryptos were bid…

Source: Bloomberg

Finally, it seems the market doesn’t need negative rates anymore…

Source: Bloomberg

And this made us wonder a little… after Dr.Scott Gottlieb came on CNBC and offered a sense of reality about just how modest this Moderna data is, the broad market didn’t even blink…

Source: Bloomberg

Remember Remdesivir…

 

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/THIS MORNING/USA

Gold, Silver, Dollar, & Bonds Dumped Because 8 Healthy Young People Didn’t Die From Test Vaccine

Great news America – 8 healthy, young people did not show any adverse effects from being injected with a potential vaccine for COVID-19…

All eight initial participants” in the Moderna trial developed neutralizing antibodies to the virus at levels reaching or exceeding those seen in people who have naturally recovered from Covid-19, according to the press release.  

Problem solved!? (But, one quick question – isn’t that the whole premise of immune response? How about when someone is injected with this ‘vaccine’ who has any number of the comorbidities that have killed 10s of 1000s… or has the coronavirus.)

But, never mind that! Buy all the stock market things…

And sell bonds…

Sell the dollar…

Sell silver…

And Sell gold…

Sparking a jump in the collapse of the Gold/Silver ratio…

It would appear Benoit is in the house today…

How long can they make this last? One thing is for sure, they better get Robinhood back up and running soon – who are we are all going to sell to otherwise?

END

b)MARKET TRADING/USA/AFTERNOON

Powell Makes History By Unleashing Record “Buying Panic” In Stocks

Powell’s promise to the American people that there is a “lot more [the Fed] can do”, coupled with his ‘explanation’ that the Fed “prints money digitally”, alongside the news that a tiny coronavirus vaccine trial showed promise, was enough to unleash the biggest buying panic in history this morning, when according to the NYSE TICK index, a record 2,049 stocks saw positive ticks moments after the open, the highest print on record; it was this buying scramble that may have knocked out online retail brokers such as Robin Hood and Etrade in the first hour of trading.

There’s more: as Bloomberg’s Heather Burke shows, about 94% of the S&P 500 is rising today, the most since March 24 – the day after the covid-bottom, when Fed announced it would steamroll over moral hazard and start buying corporate bonds.  As Burke says “investors are in a buy-everything mode on hopes that lockdowns are easing and a virus vaccine is on the way” with gains led by beaten-down and heavily shorted cyclical stocks: autos, energy, transport, banks, while recent winners such as tech and consumer staples are lagging.

ii)Market data/USA

iii) Important USA Economic Stories

This is also a very important read.. Goldman spots that the Fed’s QE is slowing against the backdrop of a huge treasury issuance. The Fed had better step to the plate by buy this crap or else hyperinflation will be coming.

(zerohedge)

Goldman Spots A Huge Problem For The Fed

Last week, the Treasury shocked the world when it announced that in the current quarter (the 3rd of the fiscal year), the US will need to sell a mind blowing, record $3 trillion (pardon, $2.999 trillion) in Treasurys to finance the US money helicopter.

This, after selling $807 billion in the first half of the fiscal year, and another $677 billion in the quarter ending Sept 30.

And since it is just a matter of time before Congress has to pass yet another fiscal package which will be at least another trillion dollars, and up to $3 trillion if the Democrats get their wish, one can say that Guggenheim’s projection of over $5 trillion in debt issuance this calendar year will be wildly conservative.

Now here’s the thing: as Deutsche Bank recently showed, so far this new debt avalanche was entire monetized exclusively by the Fed, whose debt purchasing operations have been far greater than the net Treasury issuance.

But this was only the case when the Fed was buying a massive $75 billion in TSYs per dayin the late March crash, when Powell dumped a monetary nuclear bomb on the market to stabilize the biggest panic selling an entire generation of traders had ever seen, and nearly doubling the Fed’s balance – which is now just shy of $7 trillion, in a few months:

Since then, however, the Fed’s daily and weekly POMO has shrunk substantially, and as discussed earlier, it is down to just $30BN in Treasury purchases per week as of next week, which amounts to around $1.5 trillion per year.

There’s just one problem: $30BN per week in TSY monetization is nowhere near enough to consume the trillions in Treasury issuance that is about to hit. In fact, all else equal, the Fed will very soon have to find a pretext to aggressively ramp up its treasury purchases.

As Goldman writes overnight, putting the problem in its proper context, “Central banks have been purchasing sovereign bonds at a rapid pace (Exhibit 1), faster than past QE programs in most cases. These purchases are occurring against a backdrop of a surge in fiscal deficits, which will require enormous amounts of additional sovereign supply to finance them.”

Which makes sense, of course: after all helicopter money, which is what we have now that MMT (Magic Money Theory) has been shoved down everyone’s throat without any debate, only works when there is coordination between the Treasury and the central bank. And while until now Fed purchases have generally offset Treasury issuance, that coordination is about to end.As Goldman puts it, “Central bank buying should absorb a substantial amount of upcoming issuance, though we expect increases in “free float” across most markets, most notably in the US, which adds to the medium-term case for higher yields and steeper curves there.”

Next, Goldman estimates this so-called free float, defined as the amount of sovereign debt outstanding less central bank and foreign official holdings,across major DM markets, and shows it in the chart below. Through the end of last year, free float was on a downward trend in Germany and Japan, as ECB and BoJ purchases absorbed the bulk of new supply. In contrast, free float had been trending higher for much of the year in the US and UK.

So with record fiscal deficits and resumption of asset purchases in several markets, where is free float headed this year? In Exhibit 3, Goldman lays out its expectations for total purchase amounts on a net basis along with net supply. It finds the largest increase in free float in the US, as Fed purchases continue to slow; in fact according to Goldman calculations the US public (now that foreign investors have hit the breaks on US TSY purchases), will be on the hook to fund the $1.6 trillion needed to bridge the full amount of US funding needs.

A similar picture emerges in the Euro area, where supply is also expected outpace ECB purchases, particularly in Italy, Spain and France (absent further increases in ECB purchases). Bizarrely, a similar picture emerges in Japan where even the always ravenous BoJ is expected to absorb a large portion (about ¥25tn) of incoming supply in the upcoming year as Japan is boosting its debt sales by 18.2 trillion yen ($170 billion) to fund a spending package equivalent to a fifth of its annual economic output; but according to Goldman, the scale of supply is likely to exceed even the BOJ’s QE purchases.

It continues: foreign-ownership of New Zealand sovereign debt has fallen to 50% from 70% just five years ago as central bankers in Wellington snap up bonds as part of a quantitative-easing program.

In short, even with central banks unleashing $7.9 trillion in QE so far in 2020 (according to Bank of America calculations) of which the Fed accounts for over $2.8 trillion in debt purchases alone, this won’t be enoughto monetize the tsunami of debt that is coming to fund the biggest global rescue operation in history, and if investors find that suddenly the bond market has to clear without the only true backstop – the central bank – willing and able to mop up all the supply, a critical precondition for the continuation of “helicopter money”, the outcome could be disastrous.

Incidentally, we first warned about the urgent need for the Fed to aggressively step up and boost its QE (instead of continuing to taper it by $1 billion week after week as it did again today) on Wednesday when we quoted Curvature Securities’ rates strategist and repo expert Scott Skyrm, who calculated that “there are $689 billion net new Treasurys settling during the month of May and $992 billion net new Treasurys settling between now and June 15. Yes, almost one trillion new Treasury securities hitting the market within the next month!”

His conclusion: “That means the market needs to come up with about one trillion dollars to pay for those securities over the next month.” Which, of course, is a euphemism because we all know who in the market needs to come up with one trillion dollar – the only one who literally prints money: the Federal Reserve.

Conveniently, Goldman’s argument allows us to recycle our conclusion from two days ago, in which we said that here is the layman’s version of what was just said: “the Fed has flooded the system with liquidity… and it is not enough, because the way helicopter money works, is that liquidity supply (the Fed), and liquidity demand (Treasury via debt issuance) go hand in hand,and periods of too much supply, as was the cash with the Fed’s massive QE in late March and early April, are promptly followed by periods of dramatic liquidity demand, such as the next month when $1 trillion in liquidity will be drained to fund the US government “money helicopter.”

Goldman’s own calculations suggest that the shortfall net of the Fed’s ongoing QE tapering could be as much as $1.6 trillion.

As a result, Powell faces a two-fold problem: since the Fed chair has taken negative rates off the table, Powell has no choice but too boost QE again, and unleash another firehose of debt monetizing liquidity in the financial system.However, any such reversal to the Fed’s current posture of shrinking QE will be met with howls of rage, especially among what’s left of the conservative political establishment. Which means that, just like in March when the Fed used the first pandemic-induced market crash to unleash unlimited QE, the Fed will soon have to go for round 2 and spark a new market crash, one which it then uses as an alibi for the next massive liquidity injection. Failing to do that, watch as the dollar takes off as markets sniff out that another major dollar squeeze is imminent. And since this will accelerate the liquidity crunch, one way or another, the coming $1.6 trillion in Treasury issuance – which has already been generously greenlighted by Congress – will serve as a trigger for the next market shock, one which the Fed will quickly reverse by expanding the already unlimited QE by trillions on very short notice.

The only question we have is whether thiswill be the market crash that the Fed uses to unveil it will also buy equity ETfs next, or if Powell will save this final bullet in its ammo for whatever comes next.

Finally, it’s not just us reaching this conclusion: yesterday – one day after our dire assessment – Bloomberg reached the same conclusion, and in “An $8 Trillion Spree Sets Clock Ticking for Bonds’ Judgment Day” in which it wrote that “investors are mopping up the sales as long as central banks engage in so-called quantitative easing, buying an unlimited amount of debt to counter the ravages of the pandemic. But at the first whiff of a recovery, or a pullback from policy makers, all bets may be off. Throw in the threat of inflation amid a global fiscal splurge exceeding $8 trillion, and bond investors look set for a toxic cocktail of risks in the not-too-distant future.”

Well, today we got another pullback when the Fed tapered its weekly QE to just $30BN from $35BN last week, and a record $75 billion per day two months ago.

“Given the massive central bank easing, which includes a lot of bond-buying QE in many places, there will be a lot of demand right now to buy government bonds,” said Eric Stein, co-director of global income at Eaton Vance Management, effectively describing what can simply be called “frontrunning” the Fed, a strategy that even BlackRock said is the only one left in this idiotic market.

“However, if it was a year or two from now and the economy was picking up and inflation had started to pick up, the story could be different.”

Actually, the economy doesn’t even have to be picking up: an unexpected – and unexplained – slowdown in the pace of the Fed’s “unlimited QE”purchases would be sufficient to throw the bond market into unprecedented turmoil as all those socialists who pretend that MMT makes sense, realize that the only thing permitting their idiotic “theory” to persist is the Fed’s money printer.

Yet while the Fed’s QE expansion is just a matter of time, whether catalyzed by another market crash or not, the bigger question is what happens after that?

“Can governments continue to borrow at such record levels? No,”said George Boubouras, head of research at hedge fund K2 Asset Management. “Central-bank support is key in the massive bond buying we’ve seen for now. But if they blink then at some point, in the medium term, it will all likely unravel – with unforgiving consequences for some countries.”

Ironically, this also means that an end to the coronavirus crisis is the worst possible thing that could happen to a world that is now habituated to helicopter money and virtually unlimited handouts, which however need a state of perpetual crisis.

“Once there is an end to the crisis in sight, they will be less and less willing to provide support and it will fall more on the street to absorb paper,” said Mediolanum money manager Charles Diebel, who’s adding bond steepeners in anticipation of a coming inflationary supernova.

That, incidentally, would be the endgame for the current monetary regime, which is why anyone hoping that officials, policymakers and the establishment in general, will allow the coronavirus crisis to simply fade away, is in for the shock of a lifetime.

END

JC Penney files for Chapter 11 bankruptcy

(zerohedge)

JC Penney Files For Chapter 11 Bankruptcy

In what may be one of the most bizarre bankruptcy filings, just hours after JCPenney stock was halted first thing in the morning when everyone was certain the company would announce its has filed its Chapter 11 petition only to read in a bizarre 8K that the company had instead made a $17 million interest payment due on its secured term loan during the 5-day grace period, the iconic retail giant (or maybe not so giant any more) and anchor mall tenant threw in the towel after all to what was a long, drawn out and painful period of fading into irrelevance, and just after 6pm announced it had filed for bankruptcy protection in the Southern District of Texas (docket #20-20182).

JCPenney joins a parade of retailers including Neiman Marcus, J.Crew and Stage Stores, who have all filed for bankruptcy this month. Other chains like Gap Inc. and Nordstrom Inc. have recently raised billions of dollars in debt to ensure they have the cash to weather the crisis and reopen stores, although it is unclear if they will survive in a bitter war with off-price chains like T.J. Maxx and e-commerce giants such as Amazon.com Inc

The company, founded by James Cash Penney in 1902, which was once a favorite of middle-class suburban consumers and which operated 846 department stores in 46 states as of Feb 1, had been seeking solutions to address billions of dollars in obligations after revenue evaporated amid government-imposed lockdowns to help stem the Covid-19 pandemic. Store shutdowns since March had choked off JCP’s revenue, putting even more pressure on the company’s massive debt load. After years of falling sales, red ink and failed turnaround efforts, the coronavirus pandemic hastened a reckoning with creditors over its $3.8 billion in debt.

It failed to find a solution, and as a result it filed a prepackaged Chapter 11 restructuring with lenders holding approximately 70% of JCPenney’s first lien debt to reduce the Company’s outstanding debt and strengthen its financial position. From the press release:

The RSA contemplates agreed-upon terms for a pre-arranged financial restructuring plan (the “Plan”) that is expected to reduce several billion dollars of indebtedness, provide increased financial flexibility to help navigate through the Coronavirus (COVID-19) pandemic, and better position JCPenney for the long-term. To implement the Plan, the Company today filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, in Corpus Christi, TX (the “Court”).

As part of the bankruptcy, JCP arranged a $900 million DIP loan which includes $450 million of fresh capital. It had been in discussions with some of its largest lenders, including Sixth Street Partners and KKR, Apollo Global and Ares Management, as well as H/2 Capital Partners, who will end up owning the post-reorg equity.

The financing, combined with cash flow generated by the Company’s ongoing operations, is expected to be sufficient to meet JCPenney’s operational and restructuring needs. As part of the DIP commitment from its existing lenders, “JCPenney will explore additional opportunities to maximize value, including a third-party sale process.”

JCPenney will also reduce its store footprint “to better align its business with the current operating environment. Stores will close in phases throughout the Chapter 11 process – and the first phase of closures, including specific store details and timing, will be disclosed in the coming weeks.”

Kirkland & Ellis LLP is serving as legal advisor, Lazard is serving as financial advisor, and AlixPartners LLP is serving as restructuring advisor to the Company.

The company listed between $1 and $10 billion in estimated assets, the same range of estimate liabilities, and over 100,000 creditors, most of whom are small vendors who hold trade claims against the company and will now have to get in line to get paid at some point in the coming months. In addition to the company’s bondholders, among the biggest trade creditors are Nike, Alfred Dunner and Byer California, with $32MM, $14MM and $12.6MM in claims, respectively.

Penney’s sales, which totaled $10.7 billion in the most recent fiscal year, have fallen each year since 2015, and it hasn’t made an annual profit in nearly a decade. The company skipped two interest payments in recent weeks, setting the clock on a bankruptcy filing.

Department stores have hammered not only by the secular changes in the . Stage Stores, which operates the Gordmans, Bealls and Goody’s chains in mostly rural towns, is liquidating hundreds of stores when they reopen this month and looking for a buyer. Both Macy’s Inc. and Nordstrom are closing some of their flagship stores.

Over the past decade, the company had been trying to attract younger shoppers, but it gave up on that goal to focus on winning back middle-aged moms. “They lost their core customer, and they have never been able to get her back,” said Chuck Grom, an analyst with Gordon Haskett Research Advisors. Jill Soltau, who has been CEO since 2018, refocused on apparel and launched a test store in Texas with a fitness studio and videogame lounge.

Like its formerly largest rival Sears, JCP was for decades a one-stop shop for millions of middle-class families, offering clothes, appliances, gardening equipment, portrait studios and beauty salons. At one point, the WSJ reminds us, it owned a bank and the Eckerd drugstore chain. It was once fixture in American shopping malls and at its peak in the 1970s operated more than 1,600 stores; in a few years nobody will remember the name once all of its big box outlets are either converted into laser tag arcades or are acquired by Amazon.

With JCPenney’s most liquid bonds trading at roughly 6 cents on the dollar Friday morning, the bankruptcy filling has been fully priced in.

end
The State of New York is now in trouble as the coronavirus has caused an additional 61 billion USA in debt
(zerohedge)

 

“We Need Help” – Cuomo Demands Federal ‘Assistance’, Claims Coronavirus Has Left New York State $61 Billion In Debt

As Democrats in Congress double-down on their demands for another $3 trillion in stimulus spending having passed their spending agenda in the Democrat-controlled House, Gov Andrew Cuomo warns that his state has accrued more than $61 billion in debt pertaining to its coronavirus response. Federal aid is the only feasible alternative for the state to manage such an incredible burden without essentially being forced in between a rock and a hard place, with the only alternative being a combination of draconian spending cuts and confiscatory tax hikes.

The problem for blue states like New York is that they fund their generous state budgets primarily with income tax and sales tax revenues, both of which have dried up during the crisis. At the same time, since Trump delegated most of the responsibility for on-the-ground virus response to the states (in cooperation with federal agencies like FEMA), spending has soared.

We have a significant economic problem in the state,” Cuomo said. “It’s the collective of all the other economic problems. And when you add up all the problems its a $61 billion hit to the state budget.”

“We don’t do state exploration in this state, we fund schools, we fund hospitals and we fund local governments. Local governments fund police, fire – all the heroes that we talk about. Hospitals – that’s nurses that’s doctors that’s emergency room staff,” Cuomo continued, as he pitched the Democratic spending bill to his audience.

“They bailed out the billionaires and the millionaires and the corporations,” Cuomo said.

CBS News

@CBSNews

New York State is $61 billion in debt, needs federal help, Gov. Cuomo says https://cbsn.ws/2WztGZg

Embedded video

Did the Trump administration really forget “the little guy?”. The fact that many ‘non-essential’ hourly workers in New York State are earning more sitting at home than they did at work should be enough to disabuse readers of that notion.

And we don’t hear Fla. Gov. Ron DeSantis, who leads a state with no income tax, complaining about how the rest of the country needs to pitch in.

end
Michael Snyder outlines how the uSA is caught in an economic death spiral.  Commercial real estate, (with a subset restaurant industry) is particularly hit hard.
He explains what will happen…
(Michael Snyder)

The US Is Caught In An Economic Death Spiral, And One Group Is Being Hit Particularly Hard…

Authored by Michael Snyder via The Economic Collapse blog,

Many have been warning for years that our economic bubble would eventually burst and that a collapse was inevitably coming, but the ferocity of this new economic crisis has caught just about everyone off guard.  And even though some states have been attempting to “reopen” their economies in recent days, the job loss tsunami just continues to roll on.  Prior to this year, the all-time record for the most new unemployment claims in a single week was 695,000.  That record was set all the way back in 1982, and it had survived all the way until 2020.  But now we have been absolutely dwarfing that number week after week.  On Thursday, we learned that another 2.9 million Americans filed initial claims for unemployment benefits last week, and that brings the grand total for this pandemic to more than 36 million

New filings for unemployment claims totaled just shy of 3 million for the most recent reporting period, a number that while still high declined for the sixth straight week, according to Labor Department figures Thursday.

The total 2.981 million new claims for unemployment insurance filed last week brought the coronavirus crisis total to nearly 36.5 million, by far the biggest loss in U.S. history. The count announced last week count was revised up by 7,000 to 3.176 million, putting the weekly decline at 195,000 between the two most recent reports.

To put that in perspective, at the lowest point of the Great Depression only 15 million Americans were unemployed.

Of course our population is quite a bit larger today, and so it isn’t a straightforward comparison.

But what everyone can agree on is the fact that we have never seen a two month spike in unemployment like this in all of U.S. history.

And according to the Federal Reserve, low income workers are getting hit harder than anyone else…

The Federal Reserve Bank on Thursday reported just how unequally the coronavirus-induced economic downturn is hitting Americans.

On one hand, lower-income people are getting slammed. Nearly 40% of those with a household income below $40,000 reported a job loss in March, according to the Economic Well-Being of US Households report.

Sadly, this is what seems to happen every time that there is an economic downturn.

The powerless people on the bottom of the food chain get hurt the most, but the fat cats with political influence are able to get the big bailouts.

Millions of newly unemployed low income workers used to be employed by the restaurant industry, but that industry has been absolutely decimated by this crisis…

The National Restaurant Association says some $30 billion was lost by its members in March, and $50 billion in April.

In the last week alone, several restaurants have announced that they won’t re-open, including the buffet chain Souplantation and Sweet Tomatoes, Jen’s Grill in Chicago and Ristorant Franchino, which has been serving patrons in the San Francisco area for over 32 years.

Of course most restaurant closings will never even make the news because they are small independent operations without corporate backing.

In the days ahead, we are going to see a “restaurant apocalypse” like we have never seen before in American history.  If you can believe it, one industry expert just told Bloomberg that about one-fourth of all U.S. restaurants will be closing down permanently…

Your favorite restaurant, now closed or only accepting take out orders due to the coronavirus, may never reopen, according to a top exec with reservation service OpenTable.

Steve Hafner, CEO of Booking Holdings’ OpenTable and travel site Kayak, told Bloomberg that one out of every four restaurants won’t come back.

This is truly a great tragedy, and it is going to be so depressing to see so many buildings sitting empty in communities all across the nation.

And things will be much, much different for the restaurants that are able to stay open.  For example, just check out the changes that are happening at McDonald’s

When McDonald’s restaurants reopen their dining rooms, customers should expect stickers on the floor encouraging social distancing and the closure of self-serve beverage bars. Workers wearing masks might check in with a thumbs up, or kindly ask you to move away from others.

If that is what a trip to McDonald’s is going to be like, I don’t think that I will be visiting one for a long time to come.

What we really need is for the country to try to return to normal, but in some of the more liberal areas of the U.S. that is not going to happen for the foreseeable future.

So the U.S. economy will continue to be caught in this death spiral, and Fed Chair Jay Powell is warning that we could soon see a “wave of bankruptcies” from coast to coast…

Federal Reserve Chief Jay Powell warned Wednesday of a potential “wave of bankruptcies” that could cause lasting harm to the world’s largest economy, and said more fiscal support may be needed to prevent the devastation, despite the massive cost.

Powell, who has launched a host of key programs to support credit markets and provide funds directly to companies, said there are limits to how far the Fed can go.

In particular, keep a close eye on the commercial real estate industry.

In order to service their loans, owners of commercial property need to successfully collect rent from their tenants, and right now many of those tenants are not able to pay.

For example, just look at the numbers that one New York City commercial landlord is reporting

A major New York City commercial landlord collected just 73 percent of its April office rent from tenants, with an increasing number defaulting on payments amid growing uncertainty over whether corporate buildings will become a thing of the past.

Empire State Realty Trust, owner of the Empire State Building, collected only 73 percent of its office rents and 46 percent of its retail rents due in April.

Unless there is some sort of a bailout, we are going to see commercial real estate carnage on a scale that is far greater than anything we have ever seen before.

Of course just about every industry needs a bailout at this point, and not everyone is going to get one.

Fear of COVID-19 did not create the conditions for this new economic crisis, but it did finally burst the debt-fueled economic bubble that was keeping conditions relatively stable the past few years.

Now that our economy has begun to spiral out of control, nobody is going to be able to put the pieces back together again, and the truth is that this is just the very beginning of our problems.

So many of the things that I have been warning about are starting to happen, and without a doubt our economy will continue to fall apart in the months ahead, but that does not mean that your life is over.

Yes, the days ahead will be exceedingly challenging, but heroes are born when things are at their darkest.

end

Expect anywhere from 15 to 30% of all homeowners to default.

(zerohedge)

 

‘Tidal Wave’ Of Delinquent Mortgages Set To Surpass Great Recession

With nearly 4 million homeowners in some type of mortgage forbearance plan – representing 7.54% of all mortgages, delinquencies are set to eclipse the great recessionwhich peaked at 10%.

According to a new report from UK-based forecasting firm Oxford Economics, 15% of homeowners will fall behind on their monthly mortgage payments in a ‘tidal wave’ of delinquencies.

Stimulus legislation signed by President Donald Trump allows any borrower with a federally-backed mortgage to request forbearance for up to 12 months, meaning the homeowner can skip or make reduced payments during that time.

Given the risk mortgage companies are facing right now, many lenders have imposed  more stringent requirements for loan applicants. “The uncertainty in the mortgage market has contributed to a significant tightening of lending standards that may persist even once a recovery is underway,” Oxford Economics wrote. –MarketWatch

An while the pace of requests for forbearance has slowed in recent weeks – however that could change. “Although the pace of forbearance requests slowed this week, call volume picked up — which could be a sign that more borrowers are calling in to check their options now that May due dates have arrived,” said Mortgage Bankers Association chief economist, Mike Fratantoni.

Keep in mind that Oxford Economics’ forecast is half of the potential mortgage bloodbath predicted by Moody’schief economics, Mark Zandiwho said that as many as 30% of Americans with home loans – or around 15 million households, may stop paying if the US economy remains closed through the summer or beyond.

We assume that a large percentage of Americans refusing to return to pre-pandemic consumption habits would have similar effects.

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

end
USA/CHINA
We brought this to your attention, Friday night after the market closed:  The USA is going to halt deliveries of chips to Huawei.  This will  be devastating to China and precipitate a war.
(zerohedge)

World’s Largest Contract Chipmaker Halts Deliveries To Huawei As New US Sanctions Bite

The Commerce Department’s decision to tighten restrictions on Huawei announced a few days ago are already throwing a wrench in Huawei’s supply chain, a sign that the US is no longer playing around, and is going all-in on bringing the Chinese telecom giant with strong links to the PLA to its knees.

As we reported on Friday, the Trump Administration reportedly blocked a shipment of American-made semiconductors that was headed to Huawei, eliciting a flurry of retaliatory threats, as Beijing via the mainland press promised to target Boeing, Apple and Qualcomm. Despite the seeming escalation in the US trade and tech wars with China, White House economic advisor Kevin Hassett told CNBC Monday morning that the ‘Phase 1’ trade deal appears to still be intact.  ???

Despite years of aggressive intellectual technology theft coordinated by the Chinese government, Huawei remains surprisingly dependent on products and technology produced by American companies.

When the Commerce Department added Huawei to the national “entities list” – effectively a “blacklist” requiring US companies to seek permission from Commerce to do business with Huawei – it essentially caveated the decision to hell, leaving in loopholes that allowed large American chip companies to continue shipping to Huawei (which, in addition to its telecoms infrastructure business, is also the second-largest maker of smartphone handsets)

However, the latest restrictions unveiled by the Commerce Department late last week and over the weekend will “narrowly and strategically” target a loophole that allows US companies to produce chips overseas with American technology to get around the restrictions. This will no longer be allowed, as even foreign companies that depend on US products will be forced to comply. In response, other global chipmakers are refusing to ship certain products to Huawei. This group includes the world’s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co.

According to Nikkei Asian Review reported published Monday morning, TSMC has halted new orders from Huawei in response to tighter US export controls. Prior to the new declaration, some companies evaded existing US sanctions by producing semiconductor chips overseas, using American technology, then selling them directly to Huawei.

From here on out, any company that continues this practice risks being sanctioned by the Treasury Department, sanctions that could restrict their access to the dollar-based financial system, or even ban them entirely, leaving them in the same predicament faced by Iranian companies.

“TSMC has stopped taking new orders from Huawei after the new rule change was announced to fully comply with the latest export control regulation,” a person familiar with the situation said. “But those already in production and those orders which TSMC took before the new ban are not impacted and could continue to proceed if those chips could be shipped before mid-September.”

[…]

“It’s a difficult decision for TSMC as Huawei is the company’s No. 2 customer, but the chipmaker has to follow the U.S. rules,” another person familiar with the matter said.

The Chinese 5G pioneer relies on TSMC for chips that power its smartphones, and TSMC has long been viewed as a “lifeline” for Huawei in the face of US sanctions.

Huawei, the world’s biggest telecom equipment maker and second biggest smartphone maker, relies heavily on TSMC to manufacture its advanced chip designs – including all of the mobile processors used in Huawei’s flagship smartphones. The Taiwanese company, which also produces artificial intelligence processors and networking chips for Huawei, has been viewed as a vital lifeline for the Chinese company in its efforts to resist U.S. pressure since Washington placed it on a trade blacklist last May.

This relationship with Huawei, however, has put the Taiwanese company in the crossfire of Washington-Beijing tensions.
The tighter U.S. controls were announced the

However, TSMC shares tumbled during Asian trade on Monday as investors fretted about how these sanctions would impact the relationship between TSMC and its second-biggest customer (after Apple).

One trade lawyer who spoke to Nikkei explained that virtually every contract chip maker outside the US will need to apply for a license from the US to ship to Huawei, unless they meet certain criteria showing American-made components in a given product fall below a given threshold.

Harry Clark, a Washington-based trade law expert and managing director of U.S. law firm Orrick, said that chip contract manufacturers outside the U.S. will have to apply for license for any shipments that do not meet the above criteria. Violating such laws, he added, could leave a company “exposed to substantial penalties” imposed by the regulators.

Huawei has of course been preparing for another crackdown since the trade war between the world’s two largest economies started, and those preparations were stepped up after the US government targeted Huawei and its fellow Chinese telecoms giant ZTE.

Huawei has been preparing for such a move by the U.S. since the end of last year, including stockpiling more than a year’s worth of networking equipment-related chips, especially for its crucial telecom equipment and carrier business, sources told Nikkei Asian Review.

The company has also explored a wide range of other options, including asking European chipmaker STMicroelectronics, a longtime supplier, to co-design chips, Nikkei reported earlier. However, those efforts may not immediately solve all of its vital chip supply issues, which are critical for Huawei to continue rolling out world-class technologies, analysts said.

China’s Department of Commerce on Sunday said it “strongly objects to the new export controls and warned such restrictions would pose a huge threat to the global supply chain. If Washington doesn’t reverse the action, Beijing warned it would face retaliation.

One analyst at Jeffries Equity Research wrote that if the US is successful, the pressure could help “quash China’s 5G ambitions” – the White House’s ultimate goal – though that would come with its own set of repercussions…

“The proposed legislation likely aims to stop Huawei’s tech progress and quash China’s 5G ambitions,” Jefferies Equity Research analysts said in a research note. “We expect China to retaliate if this materializes. The risk of a ‘super’ cold war is mounting.”

…including mounting risk of a “super cold war” as the two economies continue with a decoupling that has been rapidly accelerated by the coronavirus.

END
for fun:
it the Fed purchases all uSA assets including equities, residential real estate, commercial restate and treasury and corporate bonds…it will total 130 trillion dollars.
That is the end as the Fed will have nothing else to buy.
(zerohedge)

One Bank Sees Fed Balance Sheet Hitting $130 Trillion If Powell Buys Everything

Just a few weeks ago, the following chart from Deutsche Bank would have been a joke in serious financial circles. Not any more.

With the Fed’s balance sheet surging to $7 trillion amid heated discussions just how much bigger it will get in the next year as the Fed is tasked with monetizing the US bailout program, DB’s Torsten Slok has come up with a rather “ingenious” and disturbingly non-comedic estimate of what the potential maximum size of central bank’s balance sheet could be. To calculate it, Slok assumes that the Fed may, at some point, monetize all US assets, including but not limited to equities, residential real estate, commercial real estate, all treasury and corporate bonds, farmland and so on.

It all adds up to about $130 trillion…

… roughly 6 times the size of total US GDP and a number we have seen before: it’s also BofA’s 2019 calculation of all US financial assets.

$130 trillion is also a number which even MMTers would admit is the endgame as there will be nothing left to nationalize, or privatize depending on one’s view of who ultimately owns the Federal Reserve.

end

iv) Swamp commentaries)

 

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

@RyanDetrick: Here is clothing & clothing accessories data from today’s Retail Sales number. Down 89.3% the past two months, simply devastating.  [Chart] https://twitter.com/RyanDetrick/status/1261284990828064770

FBI arrests NASA researcher who allegedly failed to report ties to China [spying is a Barr priority]

https://www.cnn.com/2020/05/12/us/nasa-researcher-arrest-china/index.html

PBS Stations That Received Millions in Federal Funds Partnered with Chinese Foreign Agent on Pro-Beijing Film     https://dailycaller.com/2020/05/14/pbs-chinese-foreign-agent-propaganda-film/

Five minutes after the close and expiration on Friday: Fed warns of ‘significant’ financial vulnerabilities from pandemic…as businesses and households grapple with fragile finances for the foreseeable future…“The COVID-19 outbreak poses severe risks to businesses of all sizes and millions of households,” the central bank said.   https://www.reuters.com/article/us-usa-fed-stability-idUSKBN22R34Y

Fed Warns of ‘Significant’ Hit to Asset Prices If Pandemic Grows… asset prices could suffer significant declines should the coronavirus pandemic deepen, with the commercial real estate market being among the hardest-hit industries… Asset prices remain vulnerable to significant price declines should the pandemic take an unexpected course, the economic fallout prove more adverse, or financial system strains reemerge,” the Fed said in the report…

https://www.msn.com/en-us/finance/markets/fed-warns-of-e2-80-98significant-e2-80-99-hit-to-asset-prices-if-pandemic-grows/ar-BB148QLT

We cannot recall the Fed issuing such negative assessments.  Is Powell exercising revenge on Trump?

Buffett reportedly sold 10.1 million shares of Goldman and has only 1.9m left.  Warren also sold 1.8m shares of JP Morgan, pruning that holding to 57.7 million shares.

Also the close: Justice Department, State Attorneys General Likely to Bring Antitrust Lawsuits against Google – Both the federal and state investigations are focused on Google’s ad business

https://www.wsj.com/articles/justice-department-state-attorneys-general-likely-to-bring-antitrust-lawsuits-against-google-11589573622

U.S. Justice Dept. subpoenas Wall Street banks for small business loans info – a broader investigation into potential abuse of a $660 billion emergency loan program to help small businesses…

    Policymakers worry that the huge pot of cash has been a magnet for fraudsters…

https://www.reuters.com/article/us-usa-doj-banks-idUSKBN22R3EZ

Feds Suspect Vast [Nigerian] Fraud Network Is Targeting U.S. Unemployment Systems

Investigators see evidence of a sophisticated international attack they said could siphon hundreds of millions of dollars that were intended for the unemployed.

https://www.nytimes.com/2020/05/16/us/coronavirus-unemployment-fraud-secret-service-washington.html

JC Penney declared bankruptcy on Friday night.

JC Penney Paid Top Execs Huge Bonuses before Firing Workers, Edging toward Bankruptcy

The board argued in the filing that the bonuses were necessary to retain the management team and keep them motivated…  https://observer.com/2020/05/jcpenney-pay-exec-bonus-amid-filing-bankruptcy-coronavirus-layoff/

University of Illinois professors ‘do not recommend’ mask requirement for general public without COVID-19 symptoms – “there is no scientific evidence they are effective in reducing the risk of SARS-CoV-2 transmission,”… [If we’re supposed to ‘follow the science’, which science do we heed?]

https://chicagocitywire.com/stories/536900058-university-of-illinois-professors-do-not-recommend-mask-requirement-for-general-public-without-covid-19-symptoms

 

The Curve Has Been Flattened’: Michigan Doctors Sue Gov Whitmer over Shutdown Order

“This shutdown is risking lives and imperiling health,” Grand Health Partners president and surgeon Dr. Randal Baker told Up North Live. “The curve has been flattened. There will likely be spikes of cases in the future, but we can’t shut down non-COVID health care every time. We need to reassess the best practices to save the most lives, particularly where COVID-19 cases are low.”…

https://www.dailywire.com/news/the-curve-has-been-flattened-michigan-doctors-sue-gov-whitmer-over-shutdown-order/

We are old enough to remember when the ‘scientists’ told us that the lockdown was to ‘flatten the curve’ and it was desperately needed for the next 15 days, which was the end of March into early April.  Then, the goal posts were moved repeatedly (fewer cases, ‘R’ factor decline, vaccines, cures, yada, yada, yada).  Obviously, there is another factor that induces regional and local commissars to maintain shutdowns.

Long Island Protesters Demand Economy Reopens, Confront Reporter – “You can see there’s clearly a lot of anger here today,” a News 12 reporter said in a video as he was approached by protesters.

    Signs at the rally included “My Sons Are Not Lab Rats for Bill Gates’ Vaccine,” “Coronavirus Is Not Going Away, But Our Incomes Have,” “Small Business Is Essential,” “Quarantine the Sick! Open LI!,” and “This Is Long Island, Not Rikers Island.”…

https://patch.com/new-york/commack/protesters-return-commack-demand-economy-reopens

Fury in Germany as thousands join protests across country over lockdown measures and a vaccine plan by Bill Gates as Angela Merkel’s popularity falls

https://www.dailymail.co.uk/news/article-8325909/Fury-Germany-thousands-expected-protest-country-lockdown-measures.html

 

FDA halts Bill Gates coronavirus testing program

The FDA has not raised any concerns regarding the safety and accuracy of SCAN’s test, but we have been asked to pause testing until we receive that additional authorization.”…

https://thehill.com/policy/healthcare/498104-fda-halts-bill-gates-coronavirus-testing-program

 

Italian Politician calling for arrest of Gates [“vaccine animal”]

She also exposed Bill Gates’ agenda in India and Africa, along with the plans to chip the human race through the digital identification program ID2020…

https://www.zerohedge.com/markets/italian-politician-demands-bill-gates-arrest-crimes-against-humanity

 

GOP rep alleges falsified COVID-19 records, calls for indictment of Colorado’s top health official

A Republican state representative is calling for criminal charges against the head of the Colorado Dept. of Public Health and Environment.   https://www.9news.com/article/news/local/next/gop-rep-alleges-falsified-covid-19-records-calls-for-indictment-of-colorados-top-health-official/73-bf02452f-4615-4efe-9413-a4826a8105b2

 

Colorado amends coronavirus death count – says fewer have died of COVID-19 than previously thought – Colorado has made a stunning and significant change to the way it counts COVID-19 deaths that reduced the statewide figure from more than 1,000 to 878

https://www.foxnews.com/us/colorado-lowers-coronavirus-death-count

The politics of Covid-19 have changed from scaring people with high death counts to looking for excuses to end shutdowns to assuage anger at the destruction of millions of businesses, jobs and people’s lives.

Once upon a time, the MSM and Dems advocated that NY Gov Andy Cuomo should replace Biden as Dem Presidential Candidate.  Now, he’s in deep political trouble for his nursey home policies.

[Rep. R-NY] Elise Stefanik asks feds to investigate Cuomo’s ‘failed’ nursing home policy

Stefanik linked to a Daily Caller report published Friday that found New York is knowingly under-reporting the number of nursing home patients who died from the virus…

https://www.foxnews.com/politics/elise-stefanik-invites-feds-to-investigate-cuomos-failed-nursing-home-policy.amp

Just weeks ago, Cuomo rationalized shutting down NY by asserting ‘each life is precious’.  On Sunday, Cuomo tried to mitigate Covid-19 nursey home deaths with: “Vulnerable people are going to die from this virus no matter what you do.”

Cuomo says no one should be prosecuted for coronavirus deaths in New York, including those in nursing homes – Cuomo continued to stress the point that older and more vulnerable people were “always going to die from this virus.”

https://www.cbsnews.com/news/cuomo-says-no-one-should-be-prosecuted-coronavirus-deaths-nursing-home-2020-05-17/

Why American life went on as normal during the killer pandemic of 1969… in which over one million people died… H3N2 (or the “Hong Kong flu,” as it was more popularly known) was an influenza strain that the New York Times described as “one of the worst in the nation’s history.” The first case of H3N2, which evolved from the H2N2 influenza strain that caused the 1957 pandemic, was reported in mid-July 1968 in Hong Kong. By September, it had infected Marines returning to the States from the Vietnam War. By mid-December, the Hong Kong flu had arrived in all fifty states…

    “It was like the pandemic hadn’t even happened if you look for it in history books,” he said. “I am still shocked at how differently people addressed — or maybe even ignored it — in 1968 compared to 2020.”… Tucker remembers being taught as a child of the ’60s that “getting viruses ultimately strengthened one’s immune system. One of my most vivid memories is of a chickenpox party. The idea was that you should get it and get it over with when you are young…

    “Two government doctors, not even epidemiologists” — Richard Hatchett and Carter Mecher, who worked for the Bush administration — “hatched the idea [of using government-enforced social distancing] and hoped to try it out on the next virus.” We are in effect, Tucker said, part of a grand social experiment…   https://nypost.com/2020/05/16/why-life-went-on-as-normal-during-the-killer-pandemic-of-1969/

Neil Ferguson’s Imperial model could be the most devastating software mistake of all time

The boss of a top software firm asks why the Government failed to get a second opinion before accepting Imperial College’s Covid modelling

https://www.telegraph.co.uk/technology/2020/05/16/neil-fergusons-imperial-model-could-devastating-software-mistake/

 

Antibody tests continue to suggest COVID-19 far more widespread, less deadly than initially thought – Spain and Boston are among the latest to announce significant findings.

https://justthenews.com/politics-policy/coronavirus/antibody-tests-continue-suggest-covid-19-far-more-widespread-less

Global Times On Saturday: China readies biggest counterattack against US

China is ready to take a series of countermeasures against a US plan to block shipments of semiconductors to Chinese telecom firm Huawei, including putting US companies on an “unreliable entity list,” launching investigations and imposing restrictions on US companies such as Apple, and halting purchase of Boeing airplanes, a source close to the Chinese government told the Global Times…

    China is mulling punitive countermeasures against US individuals and entities over COVID-19 lawsuits due to the abuse of litigation by the US side…

https://www.globaltimes.cn/content/1188493.shtml

Trump Aide Accuses China of Using Air Travelers to ‘Seed’ Virus

“The virus was spawned in Wuhan province, patient zero was in November,” White House trade adviser Peter Navarro said on ABC’s “This Week.”  “The Chinese, behind the shield of the World Health Organization, for two months hid the virus from the world and then sent hundreds of thousands of Chinese on aircraft to Milan, New York and around the world to seed that.”..

https://www.seattletimes.com/nation-world/nation-politics/trump-aide-accuses-china-of-using-air-travelers-to-seed-virus/

 

Powell comments on “60 Minutes” last night– Full transcript at link

This economy will recover. It may take a while. It may take a period of time. It [depression/recession] could stretch through the end of next yearWe really don’t know

    There’s a real risk that if people are out of work for long periods of time, that their skills atrophy a little bit and they lose contact with the workforce

     Assuming there’s not a second wave of the coronavirus, I think you’ll see the economy recover steadily through the second half of this year.  So, for the economy to fully recover, people will have to be fully confident. And that may have to await the arrival of a vaccine… I’ve been watching the markets

[He should be fired for this ignorant statement.  Flu vaccines are <50% effective.]

https://www.cbsnews.com/news/full-transcript-fed-chair-jerome-powell-60-minutes-interview-economic-recovery-from-coronavirus-pandemic/

WHO envoy warns coronavirus vaccine may never be developed

https://nypost.com/2020/05/04/who-envoy-warns-coronavirus-vaccine-may-never-be-developed/

CDC: Flu vaccine reduced risk by 45 percent

https://www.masslive.com/news/2020/02/cdc-flu-vaccine-reduced-flu-risk-by-45-percent.html

Well that is all for today

Trump slammed GOP Senators Graham and McConnell on Friday and Saturday respectively for being timid (AKA wusses) on investigating Obamagate.  Outside of a few GOP Representatives and two GOP Senators, the GOP has let Trump fight Dem and MSM prosecution by himself.

 

Senator Ron Johnson @SenRonJohnson: We are noted in this country for the peaceful transition of power and respecting voters’ wishes. Members of the Obama administration did not respect that tradition.

 

Critics turn up heat on Robert Mueller’s special counsel investigation

“The Mueller probe was launched not to find wrongdoing from the Trump administration, but to cover up wrongdoing by Mueller’s colleagues, by his protege James Comey, by the corrupt Obama administration Department of Justice,” said The Federalist’s Sean Davis… [Ex-chief investigator for Sen. Coburn]

    “Bob Mueller knew the day that he walked in the door there was no evidence of the Trump campaign colluding with Russians,” said Rep. Devin Nunes R-Calif…”We looked at all the intelligence,” continued Nunes in reference to the House Intelligence Committee’s own investigation. “There’s zero evidence of the Trump campaign colluding with Russians — period,“…

    Davis contended that the Mueller team sought to delay the completion of their investigation until Democrats were able to take back control of the House and provide cover for the special counsel’s work.

   “They needed to make sure that Republicans were no longer in control. They needed to make sure that somebody like Adam Schiff, who is a complete liar and fraud, would be able to run interference for them.”

https://www.foxnews.com/media/russia-special-counsel-cover-up-sean-davis

 

Key lawmaker says Marie Yovanovitch ‘1000%’ misled Congress, DOJ should investigate

NY GOP Rep. Lee Zeldin calling for review of testimony of Yovanovitch and others.

    “…It would be unbelievable to try to imagine that Ambassador Yovanovitch, Princeton-educated, well regarded for her intellect by many who speak out strongly on her behalf, that she would forget every single one of these meetings, discussions, emails, all of that traffic that is documented.”…

https://justthenews.com/accountability/russia-and-ukraine-scandals/congressman-says-marie-yovanovitch-1000-misled-congress

 

Three can keep a secret if two are dead.” – Ben Franklin   A major problem for Obamagate, Team Mueller and Ukrainegate figures is scores of people were involved.  Good luck keeping everyone mum!

 

Team Biden made a huge gaffe last week.  Latino leaders are not pleased.

 

Biden campaign doesn’t consider Latinos ‘part of their path to victory,’ political operatives say

https://news.yahoo.com/biden-campaign-doesnt-consider-latinos-143056489.html

 

Liberal commentator Tim Pool @Timcast [after Biden’s video cast on Thursday]: Ok now I’m convinced Democrats are trying to help Trump win

 

The DNC Communications Director made a shocking statement or faux pas on Fox on Thursday night.

 

@johncardillo: Our convention has to happen because we are not officially nominating Joe Biden in order to take Donald Trump…” – @XochitlHinojosa, DNC Comms Director

https://twitter.com/johncardillo/status/1261102832012480512

 

On Friday, Trump told Maria Bartiromo that he’s not sure Biden will be his opponent for the election.  On Saturday DJT tweeted: @realDonaldTrump: I’m not running against Sleepy Joe Biden. He is not even a factor. Never was, remember 1% Joe? I’m running against the Radical Left, Do Nothing Democrats & their partner, the real opposition party, the Lamestream Fake News Media! They are vicious & crazy, but we will WIN!  Trump retweeted a video of Biden from 1987 in which Joe deceitfully boasts that he has three college degrees and finished at the top of his law school class.

 

Joe Biden Says He Won’t Pardon Trump if Elected

https://www.breitbart.com/politics/2020/05/15/joe-biden-says-he-wont-pardon-trump-if-elected/

 

Wow!  Joe’s in a heck of a lot more legal jeopardy than Trump.  Why would he poison the well for leniency or a pardon for himself?

 

@TheBabylonBee: Biden Campaign Hires Interpreter to Translate His Speeches into English

 

Liz Cheney: Democrats ‘Mortified’ by Nancy Pelosi Defending China

Pelosi claimed on Thursday that Trump’s recent antagonism toward China merely serves as a diversion from his coronavirus response… “Anybody who’s running for reelection this time around as a Democrat is going to have to defend what Nancy Pelosi just said,” Cheney said…

https://www.breitbart.com/radio/2020/05/15/liz-cheney-democrats-mortified-by-nancy-pelosi-defending-china/

 

Schumer also scolded Trump for “picking on China.”

 

Chinese State Media said China would interfere in the US election in November.  Because the threat was to only GOP Senators, the MSM and Dems didn’t care about foreign interference in a US election.

 

Global Times [China State Media] China targets GOP hawks, US firms, states over lawsuits

For some US states, China’s sanctions might have a direct impact on the upcoming elections in November if local Republicans have been targeted by the Chinese government for their groundless accusation against Beijing and endless attacks that put China-US relations in a danger, analysts said.

    “While the Chinese government makes adjustments to business relations between China and states like Missouri or Mississippi, local economies would likely be under pressure, or special interests of certain officials might be affected,” Diao said…   https://www.globaltimes.cn/content/1188309.shtml

 

We cannot fathom the Dem strategy of siding with China on Covid when the virus has put the US in depression and 73% of Americans blame China.  TDS is lethal.  My enemy’s enemy is my friend?

 

A Brief History of the CIA’s Unpunished Spying on the Senate   December 23, 2014

President Obama’s choice [Brennan] to lead the intelligence agency has undermined core checks and balances with impunity. [Article is pre-TDS epidemic; now MSM see no problem with this kind of stuff]

    “A panel investigating the Central Intelligence Agency’s search of a computer network used by staff members of the Senate Intelligence Committee who were looking into the C.I.A.’s use of torture will recommend against punishing anyone involved in the episode,” The New York Times reports… the five C.I.A. officials who were singled out by the agency’s inspector general this year for improperly ordering and carrying out the computer searches staunchly defended their actions, saying that they were lawful and in some cases done at the behest of John O. Brennan.” https://www.theatlantic.com/politics/archive/2014/12/a-brief-history-of-the-cias-unpunished-spying-on-the-senate/384003/

 

NY Post Editorial Board: Media liberals used to denounce FBI abuses — until it went after Trump

In 2003, Gallup found that only 44 percent of self-identified Democrats thought the FBI was doing an “excellent” or “good” job; by 2018, it was 69 percent. Even their approval of the CIA has soared to 60 percent.  Trump Derangement Syndrome is real — and dangerous to the health of our democracy, especially when it means those who are supposed to speak truth to power instead cheer the abuse of power.   https://nypost.com/2020/05/16/media-liberals-used-to-denounce-fbi-abuses-until-it-went-after-trump/

 

Obama gave two virtual commencement addresses on Saturday.  Unprecedentedly, he slammed Trump in those commencement speeches.  He is feeling the heat.  Trump returned the fire.  On Sunday morning responding to reporters’ questions about Obama slamming him, DJT said, “Look, he was an incompetent president, that’s all I can say. Grossly incompetent.”

 

On Sunday afternoon DJT tweeted: “The Obama Administration is turning out to be one of the most corrupt and incompetent in U.S. history. Remember, he and Sleepy Joe are the reasons I am in the White House!!!”

 

@phillygodfather: Updated Odds – WILL JOE BIDEN BE THE NEXT PRESIDENT ELECTED

Yes +160 (bet 100 to win 160; was 110 two weeks ago; No -180 (bet 180 to win 100 for DJT win; -110 two weeks ago) There’s a 64.3% implied probability that @JoeBiden will not be President.

 

I will see you TUESDAY night.

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