MAY 19//JUNE SILVER A HUGE 50 CENT SPREAD OVER MAY SILVER: PHYSICAL DEMAND OVER TAKING PAPER//GOLD UP $10.60//TO $1742.40// CORONAVIRUS UPDATE//BREAKTHROUGH IN SOUTH KOREA: RETURNING POSITIVE COVID TESTS ARE NOT INFECTIOUS//TRUMP VS WHO TODAY//TRUMP ON THE WARPATH WITH OBAMAGATE//OTHER SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1742.40  UP $10.60   The quote is London spot price

 

 

 

 

 

Silver:$17.41  UP 29 CENTS (London spot closing price)

 

Closing access prices:  London spot

 

 

i)Gold : $1745.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.35//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

MAY COMEX GOLD:  XXX

 

JUNE GOLD:  $1745.30  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $2.90.//PREMIUMS WENT UP AGAIN

 

CLOSING SILVER FUTURE MONTH

 

SILVER JUNE COMEX CLOSE;   $17.90…1:30 PM.//SPREAD SPOT/(LONDON) VS FUTURE JUNE:  49 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:10/134

issued 10

EXCHANGE: COMEX
CONTRACT: MAY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,731.800000000 USD
INTENT DATE: 05/18/2020 DELIVERY DATE: 05/20/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
118 H MACQUARIE FUT 56
657 C MORGAN STANLEY 8
657 H MORGAN STANLEY 78
661 C JP MORGAN 10 10
686 C INTL FCSTONE 3
690 C ABN AMRO 37
737 C ADVANTAGE 31 13
800 C MAREX SPEC 15 5
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 134 134
MONTH TO DATE: 9,506

 

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 134 NOTICE(S) FOR 13,400 OZ (0.4167 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  9506 NOTICES FOR 950,600 OZ  (29.56 TONNES)

 

 

SILVER

 

FOR MAY

 

 

9 NOTICE(S) FILED TODAY FOR  45,000  OZ/

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

 

BITCOIN MORNING QUOTE  $9769 UP 25 

 

BITCOIN AFTERNOON QUOTE.: $9680 DOWN 53

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $10.60 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 

NO CHANGE IN GOLD INVENTORY AT THE GLD

 

 

GLD: 1,113.78 TONNES OF GOLD//

 

 

WITH SILVER UP  29 CENTS TODAY: AND WITH NO SILVER AROUND

 

NO CHANGE IN SILVER INVENTORY AT THE SLV///

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 STRONG SIZED 1659 CONTRACTS FROM 146,319 UP TO 147,978 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH  OUR VERY STRONG 48 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 DECREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY. WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 2117 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUMONGOUS AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   MARCH:  00 AND MAY: 0 AND JULY: 295  AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1178 CONTRACTS. WITH THE TRANSFER OF 295 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 1295 EFP CONTRACTS TRANSLATES INTO 1.475 MILLION OZ  ACCOMPANYING:

1.THE 48 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.380 MILLION OZ INITIALLY STANDING FOR MAY

 

MONDAY, 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 48 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 LOSS IN SILVER OZ STANDING FOR MAY,3) CONSIDERABLE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 1954 CONTRACTS OR 9.770 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:

9795 CONTRACTS (FOR 13 TRADING DAYS TOTAL 9795 CONTRACTS) OR 48.98 MILLION OZ: (AVERAGE PER DAY: 753 CONTRACTS OR 3.763 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 48.98 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 6.99% 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:          1,037.83 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:                   48.98 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 STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1659, WITH OUR STRONG 48 CENT GAIN IN SILVER PRICING AT THE COMEX ///MONDAY THE CME NOTIFIED US THAT WE HAD A TINY SIZED EFP ISSUANCE OF 295 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:  1954 CONTRACTS (WITH OUR 48 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 295 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED INCREASE OF 1659 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A HUGE 48 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.12 // MONDAY’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: 9 NOTICE(S) FOR  45,000 OZ OF SILVER.

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 244,196 CONTRACTS ON AUG 22.2018. AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.70//TODAY’S RECORD OF 244,705 IS SET WITH A PRICE OF: 18.91 (FEB 25/2020)

 

.

 

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ/ SEPT 43.030 MILLION OZ//OCT: 7.665 MILLION OZ//   NOV: 2.630 MILLION OZ//DEC:  20.970 MILLION OZ; JAN:  5.075 MILLION OZ.//FEB 1.480 MILLION OZ//MAR: 23.005 MILLION OZ/APRIL 4.660 MILLION OZ//MAY  45.380 MILLION OZ
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A SMALL SIZED 1184 CONTRACTS TO 524,184 AND FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE SMALL SIZED LOSS OF COMEX OI OCCURRED WITH OUR STRONG COMEX LOSS IN PRICE  OF $15.40 /// COMEX GOLD TRADING// MONDAY// 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 LOSS IN THE PAPER PRICE OF GOLD.

WE HAD A VOLUME OF 0  4 -GC CONTRACTS//OPEN INTEREST  10

 

WE GAINED A GOOD SIZED 4083 CONTRACTS  (12.69 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 5267 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 0. MAY: 0, AND JUNE 5267.; AUG 0 AND ALL OTHER MONTHS ZERO//TOTAL: 35267.  The NEW COMEX OI for the gold complex rests at 524,184. 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 4083 CONTRACTS: 1184 CONTRACTS DECREASED AT THE COMEX AND 5267 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 4083 CONTRACTS OR 12.69 TONNES. MONDAY, WE HAD A LOSS OF $15.40 IN GOLD TRADING…...

AND WITH THAT LOSS IN  PRICE, WE HAD A VERY STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 15.04 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT FELL $15.40).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL  (SEE BELOW).

4 GC VOLUME: 0  // open interest 10 

 

 

END

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (5267) ACCOMPANYING THE TINY SIZED LOSS IN COMEX OI  (429 OI): TOTAL GAIN IN THE TWO EXCHANGES:  4083 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) TINY COMEX OI LOSS,  AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG LOSS IN GOLD PRICE TRADING//MONDAY

 

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 : 40,814 CONTRACTS OR 4,081,400 oz OR 126.94 TONNES (13 TRADING DAYS AND THUS AVERAGING: 3139 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 13 TRADING DAY(S) IN  TONNES: 126.94 TONNES

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

THUS EFP TRANSFERS REPRESENTS 126.94/3550 x 100% TONNES =3.56% 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   2693.31  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:                     126.96 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 STRONG SIZED 1659 CONTRACTS FROM 146,319 UP TO 147,978 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 TINY DECREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 295 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: 295 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1295 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 1659 CONTRACTS TO THE 295 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  GOOD GAIN OF 1954 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 9.770 MILLION  OZ!!! OCCURRED WITH THE 48 CENT GAIN IN PRICE///

 

 

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 48 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// MONDAY. WE ALSO HAD A SMALL SIZED 295 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)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 23.16 POINTS OR 0.81%  //Hang Sang CLOSED UP 453.36 POINTS OR 1.89%   /The Nikkei closed UP 299.72 POINTS OR 1.49%//Australia’s all ordinaires CLOSED UP 1.82%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1069 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1069 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1206 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 FELL BY A TINY SIZED 1184 CONTRACTS TO 524,184 MOVING FURTHER FROM  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS SMALLISH COMEX OI LOSS WAS SET DESPITE OUR STRONG LOSS OF $15.40 IN GOLD PRICING /MONDAY’S COMEX TRADING//). WE ALSO HAD A GOOD EFP ISSUANCE (5267 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 , GOOD COMEX OI GAIN// …  AS WE ENGINEERED A GOOD GAIN ON TWO EXCHANGES OF 4838 CONTRACTS.

WE AGAIN HAD 0    4 -GC VOLUME//open interest rises TO 10

 

 

 

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 5267 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 0, MAY: 0  JUNE : 5267 AND 0 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 5267 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:  4,083 TOTAL CONTRACTS IN THAT 5267 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A SMALL SIZED 1184 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 FALL IN PRICE

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL BY $15.40)AND, THEY WERE  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A CONSIDERABLE 12.69 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 4083 CONTRACTS OR 408,300 OZ OR 12.69 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:  524,184 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 52.42 MILLION OZ/32,150 OZ PER TONNE =  1630 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1630/2200 OR 74.10% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 197,515 contracts//volume very low

CONFIRMED COMEX VOL. FOR YESTERDAY308,098 contracts// volumes very low

MAY 19 /2020

MAY GOLD CONTRACT MONTH

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
199,929.750 oz
BRINKS
Deposits to the Dealer Inventory in oz 25,738.12 oz

Brinks

 

 

 

Deposits to the Customer Inventory, in oz  

55,458.75

OZ

LOOMIS

SCOTIA

 

1725

KILOBARS

No of oz served (contracts) today
134 notice(s)
 13400 OZ
(0.4167 TONNES)
No of oz to be served (notices)
852 contracts
(85200 oz)
2.6500 TONNES
Total monthly oz gold served (contracts) so far this month
9506 notices
950600 OZ
29.56 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 1 deposits into the dealer

I) Into Brinks: 25,738.12 OZ

 

 

 

total dealer deposits: 25,738.12   oz

total dealer withdrawals: nil oz

we had 2 deposits into the customer account

i) Loomis:  23,308.75 oz  725 kilobars

ii) Scotia: 32,150.000  1000 kilobars

 

 

 

 

 

 

 

 

 

total deposits: 55,348.75    oz

 

 

we had 1 gold withdrawals from the customer account:

i) Out of Brinks: 199,929.750 oz

 

 

 

 

 

 

 

 

total gold withdrawals;  199,929.750   oz

We had 2  kilobar transactions  +

 

We had 0  4 KC bar volume transactions/10 contracts oi

 

 

 

 

ADJUSTMENTS: 2 //    

 

customer to dealer account

From HSBC  64,237.698 oz

 

 

 

 

 

 

 

The front month of May registered a LARGE total of 986 oi contracts for a LOSS of 349 contracts. We had 552 notices filed upon yesterday so we GAINED 203 contracts or an additional 20300 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 9562 contracts DOWN to 248,145 contracts. July had a GAIN of 121 OI contracts  and thus 409 contracts  outstanding.  Next comes August another strong delivery month and here the OI ROSE by 6746 contracts up to 172,166 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 134 notices filed today for 13400 oz

 

FOR THE  MAY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 10 notices were issued from their client or customer account. The total of all issuance by all participants equates to 134 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 10 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 (9506) x 100 oz , to which we add the difference between the open interest for the front month of  May. (986 CONTRACTS ) minus the number of notices served upon today (134 x 100 oz per contract) equals 1,035,800 OZ OR 32.21 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 (9506)x 100 oz + (986 OI) for the front month minus the number of notices served upon today (134) x 100 oz which equals 1,035,800 oz standing OR 32.21 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 203 contracts or an additional 20300 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 227.09 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  7,846,869.209 oz or 244.07  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: 7,300,943.7  (227.09 tonnes)
true registered gold  (total registered – pledged tonnes  7,300,943.7 (227.09 tonnes)
total eligible gold:  16,134,935.222 oz (501.86 tonnes)

total registered, pledged  and eligible (customer) gold;   23,981.804.431 oz 745.93 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   128.632 tonnes

total gold net of 4 GC:  617.30 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 19/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A STRONG SIZED 1659 CONTRACTS FROM 146,319 UP TO 147,978(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 48 CENT GAIN IN PRICING//MONDAY. WE GAINED A TOTAL OF 1954 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL DECREASE IN SILVER OZ STANDING AT THE COMEX, 3)  CONSIDERABLE BANKER SHORT COVERING , 4) ZERO LONG LIQUIDATION,5) STRONG COMEX GAIN IN OI AND ALL OF THIS OCCURRED WITH OUR STRONG 48 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MAY

THE FRONT DELIVERY OF MAY SAW  215 OPEN INTEREST CONTRACTS STANDING  AND THUS WE HAD A LOSS OF 138 CONTRACTS.  We had 123 notices filed yesterday so we LOST 15 contracts or an additional 75,000 oz will NOT stand at the comex as these guys   morphed into London based forwards and thus they accepted  a fiat bonus for their efforts..

 

 

AFTER MAY WE HAVE THE NON ACTIVE MONTH OF JUNE.  HERE JUNE SAW A LOSS OF 19 CONTRACTS RESTING AT 429.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI GAINED 1995 CONTRACTS UP TO 113,600 CONTRACTS

 

 

We, today, had  9 notice(s) FILED  for 45,000 OZ for the APRIL, 2019 COMEX contract for silver

 

MAY 19/2020

MAY SILVER COMEX CONTRACT MONTH

 

<

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 1,224,856.255 oz
CNT
Brinks
Delaware

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1922.60 oz
Delaware
No of oz served today (contracts)
9
CONTRACT(S)
(45,000 OZ)
No of oz to be served (notices)
206 contracts
 1,030,000 oz)
Total monthly oz silver served (contracts)  8870 contracts

44,350,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month
We had 0 deposit into the dealer:

total dealer deposits: nil oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 1 deposits into the customer account

into JPMorgan:   0

ii)into Delaware; 1922.600  oz

 

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

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

 

total customer deposits today: 1922.600    oz

we had 2 withdrawals:

i) Out of Brinks:   1939.845  oz

ii) Out of CNT:  1,200,053.600 oz

iii) Out of Delaware: 22,862.840 oz

 

 

total withdrawals; 1,224,856.255    oz

We had 0 adjustments

 

 

total dealer silver: 91.192 million

total dealer + customer silver:  312.345 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the MAY 2020. contract month is represented by 9 contract(s) FOR 45,000 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 8870 x 5,000 oz = 44,350,000 oz to which we add the difference between the open interest for the front month of MAY.(215) and the number of notices served upon today 9 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 8870 (notices served so far) x 5000 oz + OI for front month of MAY (215)- number of notices served upon today (9) x 5000 oz of silver standing for the MAY contract month.equals 45,380,000 oz.

We LOST 15 or an additional 75,000 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: 65,015 CONTRACTS //volume very high

 

 

FOR YESTERDAY: 98,094 CONTRACTS..,CONFIRMED VOLUME//extremely high volume

 

 

YESTERDAY’S CONFIRMED VOLUME OF 98,094  CONTRACTS EQUATES to 490 million  OZ 70.0% 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- 0.02% ((MAY 19/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -0.44% to NAV:   (MAY 19/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.02%

(courtesy Sprott/GATA

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

NAV 16.48 TRADING 16.47///NEGATIVE 0.05

END

 

 

And now the Gold inventory at the GLD/

MAY 19//WITH GOLD UP $10.60//NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1113.78 TONNES

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 19/ GLD INVENTORY 1111.78 tonnes*

LAST;  823 TRADING DAYS:   +167.48 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 723 TRADING DAYS://+342.62  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

MAY 19/WITH SILVER UP ANOTHER 29 CENTS TODAY:  NO CHANGES IN SILVER INVENTORY AT THE SLV////INVENTORY RESTS AT 440.157 MILLION OZ//

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 19.2020:

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: -2.63%

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  = -1.49

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

There is no question that the inventory at the comex is compromised: we want to know if their gold inventory is audited

(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

end

The big 8 shorts continue to grow their massive short positions

(Ted Butler/GATA)

Ted Butler: What matters most in gold and silver

 Section: 

11a ET Monday, May 18, 2020

Dear Friend of GATA and Gold (and Silver):

Silver market analyst Ted Butler writes today that the eight major shorts in silver are bearing unprecedented losses lately with little likelihood that others will take the short positions off their hands. The concentration of this short position, Butler writes, is why silver is so cheap relative to gold.

Butler concludes: “But as the big shorts wait for a miracle, the open losses continue to grow and all the visible signs indicate no new big shorts are about to come in and take their place. Scotiabank seems to want out in the worst way and HSBC reportedly just lost $200 million in a single day.

… 

“Maybe JPMorgan can stem the tide for a while by continuing to sacrifice more accumulated metal and adding to shorts on higher prices, but that will only increase the focus on how corrupt the most crooked bank of all time really is.

“The CFTC knows for sure the real story, as does the Justice Department, as well as the super-crooks at the CME Group, as it would be impossible for any of them to be that clueless. But aside from encouraging and facilitating short-term selloffs, time may have finally run out for the big shorts. Particularly in a macroeconomic environment that would appear to foster continued and increasing gold and silver buying, the eight big shorts would seem to be in a bad position. And even if they do succeed in smashing prices temporarily, there is no guarantee or even likelihood of generating the massive speculative selling they need to get off the hook.

“The silver story was always about the concentrated short position and when the final chapter is written that will become obvious.”

Butler’s analysis is headlined “What Matters Most in Gold and Silver” and it’s posted at GoldSeek’s companion site, SilverSeek, here:

http://silverseek.com:8080/article/what-matters-most-gold-and-silver

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

end

What Matters Most in Gold and Silver

Having focused intently on the running open losses of the 8 big shorts (ex-JPM) for the past year, the latest price surge would seem to put the 8 big shorts in particular serious jeopardy. Simply put, the open losses ($7.8 billion, as of Friday, May 15) have never been larger, while the prospects for the big shorts buying back all or most of their short position at anywhere near breakeven have never been lower.

The biggest hope that the 8 big shorts had to buy back short positions at the sharply lower prices necessary for them to break even would seem to reside in aggressive selling by the managed money traders, either long liquidation of new short selling. But how much long liquidation is possible when existing longs positions are low (7 year lows in silver)? And how much new short selling is likely when the managed money traders didn’t short on the lower prices over the past month? And last week’s increase of managed money short selling in gold didn’t fare so well.

For more than 30 years, I have been almost alone in petitioning the CFTC and the exchanges and every conceivable government official which stood a chance of doing something about one singular issue – the concentrated short position in COMEX silver futures (which later came to include gold). I actually had some initial success in petitioning the CFTC, which would regularly respond to the issue of the concentrated short position in silver.

Thanks to public support, the CFTC even publicly responded in both 2004 and 2008 with 16 page letters (still on its website) that purported to look at the issue of concentrated short selling in silver, but turned out to be a deception because the 2008 letter overlooked the spectacular failure of Bear Stearns, the largest silver and gold short seller at the time. Even a five year formal investigation begun later that year into silver manipulation after the August 2008 Bank Participation Report proved manipulation by JPMorgan turned out to be only a sham and kangaroo court effort which folded quietly five years later as was foreordained from the start.

But despite the efforts of the CFTC to avoid the issue like the plague, the matter of the concentrated short position in COMEX silver just won’t go away. And despite an even more incredible avoidance by just about nearly every analyst and commentator around (Ed Steer being a notable exception), the issue of the concentrated short position in COMEX silver (and gold) remains every bit as central to the price as it always was – even more so today. I don’t know exactly why the issue has remained in the shadows; after all, it’s not that complicated.

Every week, the CFTC publishes the concentrated long and short positions of the 4 and 8 largest traders in every commodity covered in the COT report. This week, the concentrated net short position of the 8 largest shorts in COMEX silver was 74,385 contracts (just under 372 million oz). In gold, the net short position of the 8 largest shorts was 246,385 contracts (24.6 million oz). The concentrated long positions of the 8 largest traders in silver are roughly 40% less than that of the shorts and in gold the 8 big longs hold half the number of contracts of the big shorts, not that anyone would or could argue silver prices were artificially inflated.

But since the question exists of why is silver so cheap both on an absolute, inflation adjusted basis and relative to gold, the matter of the concentrated short position is relevant. If silver were sky-high in price, it would be reasonable to question the role of the big concentrated longs; but since neither the price nor the concentrated long position is high, we can skip that. The price of silver is low and the concentrated short position is very large and that makes questioning the connection relevant.

Specifically, why are 8 traders short 372 million oz, nearly 45% of total world production, which is the largest such short position of any commodity? And in terms of total world silver bullion inventories, the 8 big shorts hold a short position nearly 19% of the 2 billion total oz of silver thought to exist (compared to the less than 1% of world gold bullion inventories (24.6 million oz compared to 3 billion oz of world gold bullion inventories).

Therefore, there is only one real question – why are the big shorts so heavily short and what affect might that have on price of silver? If this concentrated short position didn’t exist, in order for the longs and shorts to balance out at close to current prices, many new shorts would be required to replace the 8 big shorts. But who in their right mind would voluntarily agree to short silver at current prices? The answer is nobody – otherwise, they would already be short.

So if so few would agree to short silver at current prices, why are the 8 big shorts so heavily short? What is their reason or motivation for being short? Some insist they must represent miners, but what mining company would short at depressed prices and lock in no profit, only losses? Others would insist the big shorts must hold the physical silver they are shorting against, but aside from JPMorgan (who is no longer short) there is no evidence of that.

The only plausible reason the 8 big shorts would get as heavily short as they are would be to depress the price and somehow force longs to sell – which the managed money traders did and went along with for years. But that game appears to have ended, now that there aren’t near as many managed money longs left to sell as there once were. It’s as if the tide suddenly went out on a group of predator sharks or orcas and they became stranded. Now trapped and apparently without good chances of forcing managed money selling on sharply lower prices, the best the big shorts can do now is not to panic and rush to buy back on higher prices for the first time ever because they know that will only cause prices to scream higher, worsening their plight. So they hang on, hoping for some type of miracle.

But as the big shorts wait for a miracle, the open losses continue to grow and all the visible signs indicate no new big shorts are about to come in and take their place, Scotiabank seems to want out in the worst way and HSBC reportedly just lost $200 million in a single day. Maybe JPMorgan can stem the tide for a while by continuing to sacrifice more accumulated metal and adding to shorts on higher prices, but that will only increase the focus on how corrupt the most crooked bank of all-time really is.

The CFTC knows for sure the real story, as does the Justice Department as well as well as the super crooks at the CME Group, as it would be impossible for any of them to be that clueless. But aside from encouraging and facilitating short term selloffs, time may have finally run out for the big shorts. Particularly in a macroeconomic environment which would appear to foster continued and increasing gold and silver buying, the 8 big shorts would seem to be in a bad position. And even if they do succeed in smashing prices temporarily, there is no guarantee or even likelihood of generating the massive speculative selling they need to get off the hook.

The silver story was always about the concentrated short position and when the final chapter is written that will become obvious to all.

Finally, here’s an audio interview of Ed Steer by Chris Marcus that states my case as well – no, much better – than I could ever do.

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

Your early TUESDAY 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: 7.1069/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1206   /shanghai bourse CLOSED UP 23.16 POINTS OR 0.81%

HANG SANG CLOSED UP 452.36 POINTS OR 1.89%

 

2. Nikkei closed UP 299.72 POINTS OR 1.49%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index DOWN TO 99.35/Euro RISES TO 1.0958

3b Japan 10 year bond yield: RISES TO. –.00/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.69/ 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:: 32.73 and Brent: 35.14

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 DOWN for WTI and DOWN FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.44%/Italian 10 yr bond yield DOWN to 1.62% /SPAIN 10 YR BOND YIELD DOWN TO 0.74%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.06: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.86

3k Gold at $1734.60 silver at: 17.08   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 36/100 in roubles/dollar) 72.32

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 107.69 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 .9711 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0630 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.44%

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 0.73% early this morning. Thirty year rate at 1.46%

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

6.  TURKISH LIRA:  UP  TO 6.7995..

S&P Futures Fail A Breakout Above 3,000 As Triple-Top Forms

US equity futures tried, and failed, to stage a major breakout into 3,000 overnight, with the E-mini rising as high as 2,976 ahead of the European open (on virtually zero volume), before paring all gains alongside a drop and European stocks as investors weighed the return of the trade war against positive coronavirus news, while disappointing results from Home Depot weighed on sentiment and not even a huge beat by Walmart managed to reverse the mood.

What is more concerning is that now that the S&P has tried, and failed, to break out above the 2950 resistance level, a triple-top appear has formed, which suggests that the most likely next move is a retest of the support.

The Stoxx Europe 600 Index remained lower however as investors shrugged off both news of a $546 billion recovery fund for the region and a surprise jump in German investor confidence, with the ZEW Economist Sentiment surging to 51 from 28.2, beating expectations of a 32.0 print and far above the deeply negative print just two months ago.

European sentiment slumped after French Finance Minister Bruno Le Maire said that the European recovery fund proposed by France and Germany won’t be available until 2021 and still faces hurdles in “difficult” negotiations in coming weeks. “It probably couldn’t be available before the start of 2021,” Le Maire says speaking at the National Assembly finance committee. Le Maire says it will take time because procedures still need to be finalized and the fund will be linked to the EU budget. The finance minister also said Franco-German agreement on the fund was necessary but not sufficient and the two countries must still convince reluctant countries including Austria, Denmark, Sweden and the Netherlands.

Earlier in the session, Asian stocks were green across the board lifted by momentum from the US, and led by materials and industrials, after rising in the last session. All markets in the region were up, with South Korea’s Kospi Index gaining 2.2% and Hong Kong’s Hang Seng Index rising 1.9%. The Topix gained 1.8%, with Soshin Electric and Sony Financial rising the most. The Shanghai Composite Index rose 0.8%, with Fujian Start Group and Shanghai Lingyun Industries Development posting the biggest advances.

Stock started off the week with a bang after Moderna fueled hopes for a coronavirus vaccine, but investors are struggling to maintain the optimism as they continue to monitor efforts to both contain the pandemic and restart economies. Federal Reserve Chairman Jerome Powell is scheduled to speak on the state of the recovery Tuesday, amid expectations he’ll press for further fiscal support to address the steepest downturn since the Depression.

“Short-lived bounces in stock prices even while markets establish new lows are not unheard of,” Ashwin Alankar, head of global asset allocation at Janus Henderson, said in a note. “Forward-looking metrics such as earnings revisions and options prices, on the other hand, sound a more cautious tone both for the economy and stock prices.”

Meanwhile, headwinds remain for stocks, not least a deteriorating U.S.-China relationship. In a further sign of tightening scrutiny on capital flows to the Asian nation, Reuters reported late on Monday that the Nasdaq is set to unveil new rules for initial public offerings including tougher accounting standards that will make it more difficult for some Chinese companies to list on the exchange.

In rates, the 10Y Treasury was unchanged after yields blew out on Monday, while European government bonds were mixed, with peripheral yields falling on the recovery fund news.

In FX, the Bloomberg Dollar Spot Index fell; the euro and European peripheral bonds extended gains in the wake of a proposal by France and Germany to distribute money to member states. The yen fell to a one-week low against the dollar after the news that the Bank of Japan will discuss details of a funding program to demonstrate its resolve to support struggling businesses. The New Zealand dollar advanced, supported by purchases against the Aussie. Sterling strengthened after the U.K. announced plans for 30 billion pounds ($37 billion) in tariff cuts after Brexit.

China’s yuan fell to a two-month low against a basket of trading partners’ currencies, as the central bank’s reference rate stays close to the weakest since 2008. The Bloomberg replica of the CFETS RMB Index — which tracks the yuan against 24 currencies — declined 0.27% to 93.5, the lowest level since March 12. That comes as the People’s Bank of China kept the yuan’s fixings versus major exchange rates low. The authorities cut its reference rate versus the euro by the most in seven weeks Tuesday, while the fixing against the dollar was close to the weakest since 2008. But the yuan has been steady in the spot market, with the currency fluctuating within a narrow band of less than 0.85% on either side this month. That’s partly because traders expect the Chinese exchange rate to be stable ahead of the annual parliamentary meeting, which starts this week

In commodities, West Texas crude’s ascent kept it well above $32 a barrel, rising for a 4th day, though it came off highs touched in Asian trade. West Texas Intermediate crude increased 2.9% to $32.73 a barrel. In terms of underlying fundamentals, on the demand side, participants continue to eye reopening economies for any signs of potential risk of reclosures. Meanwhile looking at supply, OPEC+ cuts are underway, with eyes on the June 8th JMMC meeting for further details as to whether current cuts will be extended as per source which floated potential extension to year-end as opposed to a wind-down of agreed curbs. Meanwhile, unsurprisingly, OPEC+ cut oil exports sharply in the first half of May, according to trackers – which boils down to a function of lower supply and lower demand. WTI July meanders around 31.50/bbl whilst its Brent counterpart failed to reclaim USD 35/bbl to the upside, with both contracts contained within ~USD 2/bbl intraday bands. Elsewhere, spot gold trades flat in recent trade after failing to nurse some of yesterday’s sentiment-induced losses, with the yellow metal now waiting for the Powell/Mnuchin double testimony as a scheduled potential catalyst. Copper prices have given up overnight gains as the sentiment in Europe somewhat soured as US-Sino tensions remain elevated, whilst the EU still has to overcome obstacles before launch of their Recovery Fund, touted to be implemented January 2021.

Home Depot and Walmart are among companies reporting earnings

Market Snapshot

  • S&P 500 futures down 0.4% to 2,937.75
  • STOXX Europe 600 down 0.7% to 339.38
  • MXAP up 1.7% to 148.14
  • MXAPJ up 1.7% to 477.86
  • Nikkei up 1.5% to 20,433.45
  • Topix up 1.8% to 1,486.05
  • Hang Seng Index up 1.9% to 24,388.13
  • Shanghai Composite up 0.8% to 2,898.58
  • Sensex up 0.8% to 30,281.28
  • Australia S&P/ASX 200 up 1.8% to 5,559.52
  • Kospi up 2.3% to 1,980.61
  • German 10Y yield fell 2.1 bps to -0.488%
  • Euro up 0.1% to $1.0925
  • Italian 10Y yield fell 18.8 bps to 1.5%
  • Spanish 10Y yield fell 8.2 bps to 0.651%
  • Brent futures little changed at $3479/bbl
  • Gold spot up 0.1% to $1,734.98
  • U.S. Dollar Index down 0.1% to 99.56

Top Overnight News

  • President Donald Trump escalated a spat with the World Health Organization, threatening to permanently freeze U.S. funding unless there’s sweeping reform. An experimental vaccine from Moderna Inc. showed early signs it can create an immune-system response to fend off the virus
  • Nasdaq is set to unveil new rules for initial public offerings including tougher accounting standards that will make it more difficult for some Chinese companies to list on the exchange
  • Federal Reserve Chairman Jerome Powell said the central bank is prepared to use its full range of tools and leave the benchmark lending rate near zero until the economy is back on track
  • New Zealand’s central bank sees no need to adjust its monetary stimulus in the wake of the government’s stronger-than-expected fiscal spending package in last week’s budget
  • Australia’s central bank board held a further discussion on risks to financial stability including a briefing on the resilience of households during its May policy meeting, when both the cash rate and bond-yield target were kept unchanged at 0.25%
  • Oil’s rally extended to a fourth day as a combination of recovering demand, production cuts and promising test results for a coronavirus vaccine brightened the outlook for energy prices
  • Argentina’s Exchange Bondholder Group is recommending the government give investors who hold discount bonds a contingent recovery instrument linked to the nation’s GDP, the group said on its website
  • The U.K. set out its post-Brexit tariffs plan, cutting import duties on many products while protecting industries such as automotive and agriculture in global trade beyond Europe
  • Optimism that economies may recover faster than expected should boost European stocks, tighten Mediterranean bond spreads and buoy the euro; yet options pricing and technical charts show these currency gains may prove fleeting, with developments in the crisis yet to prove game-changers
  • Patients who test positive for the coronavirus weeks after recovering from Covid-19 probably aren’t capable of transmitting the infection, research from South Korea shows

Asian equity markets were higher across the board as the region took impetus from the global stock rally spurred by several bullish factors including the reopening of economies, coronavirus vaccine hopes and stimulus efforts after Germany and France proposed a EUR 500bln recovery fund. As such, ASX 200 (+1.8%) shrugged off the increasing Aussie-Sino tensions from China’s import duties on Australian barley and briefly climbed above the 5600 level with upside led by the energy sector after the gains in oil prices and as its top-weighted financial sector also outperformed. Nikkei 225 (+1.5%) coat-tailed on the recent favourable currency moves which helped participants overlook the weak earnings from the likes of Panasonic, while SoftBank shares eventually slumped as plans to tap into its Alibaba and T-Mobile stakes to raise funds failed to offset selling pressure from a record FY loss. Hang Seng (+1.9%) and Shanghai Comp. (+0.8%) conformed to the upbeat tone as China continued to tout more favourable policies including SOE reforms, interest rate liberalization, further opening up and lower tariffs, with the gains in Hong Kong exacerbated after rule changes in the Hang Seng Index which paves the way for the inclusion of Chinese internet giants such as Alibaba, Xiaomi and Meituan Dianping. Finally, 10yr JGBs are lower amid spillover selling in T-notes as the demand for safe havens was sapped by the heightened global risk appetite, while the BoJ presence in the market for JPY 770bln also did little to inspire a turnaround in JGBs.

Top Asian News

  • China Mulls Relief as Deadline Nears on $211 Billion in Bad Debt
  • China Mulls Targeting Australian Wine, Dairy on Virus Spat
  • Sony Plans to Take Finance Arm Private for About $3.7 Billion
  • Mitsui Is Said to Weigh Stake Sale in Indonesia’s Paiton Energy

European equities have shaved gains since the open and now reside in a sea of red [Euro Stoxx 50 -0.9%] – as the strained relations between US and China continue to hover as a grey cloud on investor sentiment. Meanwhile, despite Germany and France proposing a EUR 500bln European Recovery Fund, the unanimous approval itself could prove to be complex. Netherlands, Austria, Denmark, and Sweden are not fond of the fund being distributed as grants, whilst the touted launch in 2021 may further strain peripheries hit harder by the pandemic such as Italy and Spain. On that note, FTSE MIB (-1.4%) and IBEX (-2.3%) are the marked underperformers thus far whilst core indices see broad-based losses between 0.1-0.4%. Trade updates aside, today marks the first session since the European short-selling ban was remove, as per yesterday’s announcements, potentially providing price action with some influence. Sectors are mostly in the red; breakdown also sees broad-based losses across most sectors, but financials fare better on initial optimism on the EU recovery fund. In terms of individual movers: Thyssenkrupp (+5.4%) holds onto opening gains after it said it is mulling the sale of their steel and warships divisions. Sources also noted that talks with Tata Steel never broke off and both the Cos is still in talks about consolidation. Handelsblatt reported that SSAB and Baoshan Iron & Steel were interested in a majority of the steel unit. Meanwhile, Wirecard (-1.6%) extended on losses amid source reports Germany’s accountancy watchdog FREP last year opened a probe into the Co. following allegations of accounting fraud. Carnival (-0.5%) is weighed on after being downgraded to Junk at Moody’s.

Top European News

  • European Lockdowns Knock Car Sales Into Record Monthly Drop
  • German Investor Confidence Jumps on Hopes Worst of Pandemic Over
  • U.K. Catering Firm Compass Plans $2.5 Billion Share Sale
  • Sweden Plans Record 30-Fold Jump in Borrowing to Fight Crisis

In FX, the Kiwi has extended recovery gains in wake of commentary from RBNZ Deputy Governor Bascand indicating no rush to deliver more monetary stimulus via an expansion of QE or adopting NIRP, as the Bank waits so see how data pans out before deciding whether it needs to adjust policy further. Nzd/Usd topped out just shy of 0.6100 and Aud/Nzd has retreated sharply through 1.0800 as Aud/Usd respects resistance at recent peaks around 0.6570 and the Aussie reflects on reports that China may add more exports to the higher tariff list on top of barley. Note, no added insight on the RBA front from minutes overnight that merely reiterated the grounds for maintaining rates and asset purchases at present levels while monitoring the impact or recent actions including the introduction of YCC. Meanwhile, the Pound has regained some poise across the board following latest negative interest rate chat from the BoE via Tenreyro and irrespective of UK data revealing a bigger than forecast jump in the claimant count alongside slightly softer than expected wages, with Cable back up above 1.2200 and briefly nibbling stops at 1.2266 and Eur/Gbp easing from 0.8950+ even though the Euro remains elevated independently on additional fiscal support to combat the adverse effects of COVID-19.

  • EUR – The single currency is consolidating towards the top of a circa 1.0956-03 range vs the Dollar and contributing to a depressed DXY around 99.500 in advance of US housing data, testimony from Fed chair Powell and comments from Rosengren. As noted above, another financial recovery fund for the Eurozone and agreement between Germany and France to issue joint EU debt as a means of paying for the Eur500 bn pot has given the Euro a boost amidst formative signs of an improvement in ZEW’s forward-looking economic sentiment indices.
  • JPY – A previously unscheduled BoJ meeting to discuss bank funding measures preannounced in April and timetabled for this Friday prompted a bit more Yen weakness against the Greenback within 107.60-30 parameters, but the headline pair may be capped ahead of decent option expiry interest between 107.65-75 in 1.5 bn into the NY cut.
  • NOK – The Norwegian Krona has pared gains alongside crude prices and waning risk appetite, with perhaps some acknowledgment of remarks from Norges Bank Governor Olsen repeating that the depo rate has likely reached its lower bound, but there is more room in terms of economic policy.
  • EM – Usd/Try has now breached 6.8000 to the downside and reports that the CBRT has arranged swap lines with the BoE and BoJ are helping the Lira continue its retracement, while the Idr has been very volatile following the BI’s unchanged rate decision that confounded consensus for a 25 bp cut.
  • RBA Minutes stated that members assessed the best course of action was to maintain current policy setting and monitor economic and financials outcomes closely as support package had been introduced only recently, while it noted that the board determined it would not raise cash rate until progress is made towards full employment and inflation targets. Furthermore, the RBA agreed that policy package was working broadly as expected but is prepared to scale up government bond purchases again if necessary, to achieve the yield target. (Newswires)
  • RBNZ Deputy Governor Bascand said RBNZ could extend and expand asset purchase programme further but added they will see how data plays out and provide more stimulus if required. Bascand added no decision has been made to buy foreign assets or launch negative rates which are among the many options available to the committee, while he reiterated they asked banks to be ready to transact negative rates in wholesale markets by year-end. (Newswires)

In commodities, WTI and Brent futures trade mixed after intially eking mild gains in what seems to be a breather from yesterday’s pronounced upside – whilst WTI June heads into its futures expiry with its head above USD 30/bbl. In terms of underlying fundamentals, on the demand side – participants continue to eye reopening economies for any signs of potential risk of reclosures. Meanwhile looking at supply, OPEC+ cuts are underway, with eyes on the June 8th JMMC meeting for further details as to whether current cuts will be extended as per source which floated potential extension to year-end as opposed to a wind-down of agreed curbs. Meanwhile, unsurprisingly, OPEC+ cut oil exports sharply in the first half of May, according to trackers – which boils down to a function of lower supply and lower demand. WTI July meanders around 31.50/bbl whilst its Brent counterpart failed to reclaim USD 35/bbl to the upside, with both contracts contained withing ~USD 2/bbl intraday bands. Elsewhere, spot gold trades flat in recent trade after failing to nurse some of yesterday’s sentiment-induced losses, with the yellow metal now waiting for the Powell/Mnuchin double testimony as a scheduled potential catalyst. Copper prices have given up overnight gains as the sentiment in Europe somewhat soured as US-Sino tensions remain elevated, whilst the EU still has to overcome obstacles before launch of their Recovery Fund, touted to be implemented January 2021.

US Event Calendar

  • 8:30am: Housing Starts, est. 900,000, prior 1.22m; Housing Starts MoM, est. -25.99%, prior -22.3%
  • 8:30am: Building Permits, est. 1m, prior 1.35m; Building Permits MoM, est. -25.93%, prior -6.8%

DB’s Jim Reid concludes the overnight wrap

Hopes that the virus will be well and truly beaten surged yesterday as markets got very excited about the potential for a vaccine. There was also the encouragement of new solidarity over the recovery fund in Europe but there wasn’t a lot of new news here but markets just used it as a good excuse to extend the rally. On the vaccine hopes, Moderna announced yesterday that they’d found a promising candidate in their trials. They said that their vaccine produced antibodies that can help with Covid-19 in all eight initial participants. They also said that there weren’t any major safety issues and that the company expects to start a Phase 3 trial in July. In response, the company’s shares ended the day up +19.96%, the eighth best performer in the Russell 1000 index. United Airlines, TripAdvisor, and Park Hotels, who would all benefit greatly from a vaccine, were a few of the small number of companies ahead of them in the index.

The other major news yesterday came from Chancellor Merkel and President Macron, who agreed to support a €500bn recovery fund, which Merkel said would have the ability to borrow money. Macron indicated that the fund would not be reimbursed by the beneficiaries, which would mean that the fund would be financed through grants rather than loans or that the fund would directly invest in member states, thereby acting as grants. The mix of grant and loans was a point of contention at the last meeting and so we will see what support for such an arrangement looks like when the full European Commission comes together next week. I don’t think it’s any surprise that Merkel and Macron support such a fund so it shouldn’t be huge news, but the market liked it. As noted, there are other players to convince but a show of unity here is no bad thing.

All of the major equity indices rallied on both sides of the Atlantic, with the S&P 500 up +3.15% in its best performance in over a month and back above recent closing highs after the difficulties last week. In addition the Dow Jones (+3.85%) and the NASDAQ (+2.44%) also advanced. It was a broad-based rally, with every sector and over 92% of the companies in the S&P moving higher. The covid laggards clearly outperformed on the day with autos (+9.23%), Energy (+7.55%) and Banks (+7.18%) leading the way.

Over in Europe meanwhile, the STOXX 600 (+4.07%) and the DAX (+5.67%) both had their strongest days in over a month. Energy stocks led the rally, buoyed by the strong performance of oil prices as both WTI (+8.12%) and Brent (+7.11%) climbed to 2-month highs of $31.82/bbl and $34.81/bbl respectively. Copper was also up +2.62% while palladium rose by +6.15% to just under $2,000/oz. Gold came off its 7-year high however, down -0.64%, while the dollar index (-0.73%) had its worst day in over a month.

The momentum has continued for the most part in Asia this morning with the Nikkei (+1.81%), Hang Seng (+1.79%), ASX (+1.96%) and Kospi (+2.02%) all posting decent gains. That being said, in China the Shanghai Comp (+0.53%) and CSI 300 (+0.64%) have underperformed while futures on the S&P 500 are flat. That could be in response to the news that Nasdaq is expected to tighten IPO rules including tougher accounting standards that may make it difficult for companies from countries including China to list according to a story on Bloomberg. Elsewhere this morning, yields on 10y USTs are down -2.7bps to 0.70% while in commodities oil is trading flat.

Over in sovereign bond markets yesterday, there was a major narrowing of peripheral spreads in Europe that accelerated late in the day after the news of the recovery fund came out. The spread of Italian ten-year yields over bunds fell by -25.4bps to 214bps, the largest one-day tightening since mid-March after the ECB unveiled their Pandemic Emergency Purchase Programme. There was similarly a tightening in the spread of Spanish (-9.1bps), Portuguese (-9.1bps) and Greek (-13.9bps) yields over bunds. Sovereign bond yields in core countries saw notable rises however, with yields on 10yr Treasuries up +8.3bps to climb back above 0.7% again, while yields on 10yr bunds were also up +6.4bps. In a further positive sign, Bloomberg’s index of US financial conditions eased to its most accommodative level since early March.

In terms of other news yesterday, UK overnight interest-rate swaps began to price in the chance of rates going below zero by the Bank of England’s December meeting. It comes after the BoE’s chief economists’ comments over the weekend, who said that the BoE was looking at further unconventional monetary policies such as negative rates. Like the US, the UK didn’t experiment with negative rates after the financial crisis, so such a move would be unchartered territory in the history of the Bank of England, which dates all the way back to 1694. Later on, we got some comments from the MPC’s Silvana Tenreyro, who said that the longer the lockdown was in place, the longer stimulus would be needed and didn’t close the door on negative rates. For reference, our economists are expecting a further £125bn of QE at the June meeting.

In terms of other central bank speakers yesterday, the Atlanta Fed’s Bostic added to his colleagues’ comments that the second quarter was likely going to be “tough”, but that a number of the job losses would be temporary. He espoused the need for the reopening of the economy to be thoughtful, and that the eventual recovery would hinge on consumer confidence returning. He also indicated that he would not be looking to penalize the decisions of banks during the crisis, saying that banks have been encouraged by the Fed to deploy capital during this time and “reduce the stresses” businesses and people are feeling.

There was barely any economic data to speak of, though the NAHB’s housing market index from the US for May did show a recovery from the 7-year low it reached in April, rising to 37 (vs. 35 expected). We’ll get some more hard data on the US housing market for April today though.

To the day ahead now, and the highlight is expected to be Fed Chair Powell’s testimony before the Senate Banking Committee. The text of his speech was released last night and didn’t contain too many surprises and is more a reflection of what the Fed has done but the Q&A will probably be the most interesting part. Other speakers include the Fed’s Rosengren and Kashkari, as well as the ECB’s chief economist Lane, while the Indonesian central bank will be deciding on interest rates. In terms of data, there’ll be Germany’s ZEW survey for May, UK employment data for the three months to March, and US housing starts and building permits for April. Finally, we’ll get earnings releases from Walmart and Home Depot.

 

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 23.16 POINTS OR 0.81%  //Hang Sang CLOSED UP 453.36 POINTS OR 1.89%   /The Nikkei closed UP 299.72 POINTS OR 1.49%//Australia’s all ordinaires CLOSED UP 1.82%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1069 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1069 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1206 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

This is big:  South Korean study finds Covid patients who tested positive are not infection..they are just shedding dead copies of the virus

(zerohedge)

Breakthrough South Korean Study Finds Recovered COVID Patients Who Test Positive Aren’t Infectious

In what appears to be yet another strike against public officials like LA County’s Barbara Ferrer – that is, Democrats and others who insist that lockdowns should continue perhaps until a vaccine has been discovered and that police should punish anyone who dares violate these orders – a study from the Korean Centers for Disease Control and Prevention has found that patients who test positive for COVID-19 after recovering from the illness appear to be shedding dead copies of the virus.

That would suggest that these patients are not infectious, the scientists said, which helped dispel fears that some patients can remain infectious for months after being infected. While the study doesn’t answer every question about the virus’s longevity – such as patients who almost appear to have developed a “chronic” form of the illness because their symptoms have persisted for so long.

But still, the finding was greeted as a major relief, and, if anything, should encourage economies to reopen more quickly, as a potential trigger for reinfection that had panicked some experts appears to be a non-issue.

The research also undermines the reliability of ‘antibody’ tests like the ones NY Gov Andrew Cuomo insisted would be ‘critical’ for NY’s reopening.

The results mean health authorities in South Korea will no longer consider people infectious after recovering from the illness. Research last month showed that so-called PCR tests for the coronavirus’s nucleic acid can’t distinguish between dead and viable virus particles, potentially giving the wrong impression that someone who tests positive for the virus remains infectious.

The research may also aid in the debate over antibody tests, which look for markers in the blood that indicate exposure to the novel coronavirus. Experts believe antibodies probably convey some level of protection against the virus, but they don’t have any solid proof yet. Nor do they know how long any immunity may last.

A recent study in Singapore showed that recovered patients from severe acute respiratory syndrome, or SARS, are found to have “significant levels of neutralizing antibodies” nine to 17 years after initial infection, according to researchers including Danielle E. Anderson of Duke-NUS Medical School.

Other scientists have found higher levels of IgM, an antibody that appears in response to exposure to an antigen, in children, according to an article published on medRxiv. That suggests younger populations have the potential to produce a more potent defense against Covid-19. The study has not been certified by peer review.

Bloomberg offers a succinct review of some of the research into the infectious qualities of the virus, and the efficacy of antibodies in keeping patients safe from reinfection. As BBG shows, studies of SARS, which is related to the virus that causes COVID-19, suggest that antibodies keep patients safe for years, undermining warnings about a possible second wave, or worries that the virus might become endemic, which were recently raised by the WHO.

The research may also aid in the debate over antibody tests, which look for markers in the blood that indicate exposure to the novel coronavirus. Experts believe antibodies probably convey some level of protection against the virus, but they don’t have any solid proof yet.

Nor do they know how long any immunity may last.

A recent study in Singapore showed that recovered patients from severe acute respiratory syndrome, or SARS, are found to have “significant levels of neutralizing antibodies” nine to 17 years after initial infection, according to researchers including Danielle E. Anderson of Duke-NUS Medical School.

Other scientists have found higher levels of IgM, an antibody that appears in response to exposure to an antigen, in children, according to an article published on medRxiv. That suggests younger populations have the potential to produce a more potent defense against Covid-19. The study has not been certified by peer review.

The study’s findings are apparently convincing enough for South Korean health authorities to no longer require patients to be re-tested after they’ve recovered from COVID-19 and all symptoms have subsided.

As a result of the findings in the South Korea study, authorities said that under revised protocols, people should no longer be required to test negative for the virus before returning to work or school after they have recovered from their illness and completed their period of isolation.

“Under the new protocols, no additional tests are required for cases that have been discharged from isolation,” the Korean CDC said in a report. The agency said it will now refer to “re-positive” cases as “PCR re-detected after discharge from isolation.”

Some coronavirus patients have tested positive again for the virus up to 82 days after becoming infected. Almost all of the cases for which blood tests were taken had antibodies against the virus.

If nothing else, this study is just the latest reminder of how much we don’t know about the virus.

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/ISRAEL

Preliminary findings points to natural causes for the ambassador’s death in Israel

(zerohedge)

 

China Says Preliminary Finding Points To Natural Causes In Ambassador’s Death, Sends Investigators To Israel

Only a couple months in post, China’s ambassador to Israel, 57-year old Du Wei was found dead in his home near Tel Aviv on Sunday, which immediately triggered global headlines covering the relatively rare event of a top diplomat dying while on the job, and also speculation over possible foul play.

Scrutiny was especially intense, as The Jerusalem Post underscored Sunday afternoon, given Secretary of State Mike Pompeo’s visit to Israel last week where he denounced Chinese investments in Israel, including the strategic Haifa Port, and accused Beijing of withholding information about the coronavirus outbreak.

But China’s Foreign Ministry has finally issued a preliminary statement Monday which points to natural causes for the death.

 

Du Wei took up his post in Israel on Feb. 15. Image: Reuters.

“The preliminary verdict is that Ambassador Du Wei died unexpectedly of health reasons. The details await further confirmation,” according to the statement out of Beijing.

It further said China is sending a special investigator to look further into the envoy’s death, following the initial Israeli police investigation, which is considered normal procedure.

According to The Times of Israel, local police cited that the ambassador suffered an apparent heart attack overnight Saturday:

Israel’s Foreign Ministry announced on Sunday morning that Du Wei, 57, had been found dead at his official residence in the coastal town of Herzliya. The Foreign Ministry said police were on the scene.

According to the Ynet news site, aides tried to wake Du and found him in his bed, not breathing. The initial assessment was that he had suffered cardiac arrest during the night.

Channel 12 news reported there were no external signs of violence on Du’s body.

Israeli newspapers were quick to underscore that the immediate rapid spread of the news across global press almost immediately after the discovery of the death was accompanied by widespread rumors and speculation.

 

AFP/Times of Israel: Israeli police and forensic experts gather in front of the residence of Israel’s Chinese ambassador, on the outskirts of Tel Aviv, after he was found dead, on May 17, 2020.

“The level of conspiracies and anti-China comments after the death of the ambassador reached a crescendo on Sunday afternoon,” Jerusalem Post wrote.

The Chinese Embassy in Israel in response to Pompeo’s anti-China rhetoric last Wednesday, published its own response and condemnation to the attacks on its official website, no doubt on direct orders of Ambassador Wei.

He had only assumed his post in February 2020 in the midst of the coronavirus pandemic, due to which he entered a two week mandatory self-quarantine upon his arrival. He’d previously been China’s envoy to Ukraine and is survived by his wife and son, who were not yet in the country.

END
CORONAVIRUS UPDATE TUESDAY

Chinese Ambassador Says “Independent” WHO Investigation Is “A Joke”: Virus Updates

Summary:

  • Chinese ambassador in Canberra says notion that WHO investigation satisfies Australia’s call for “independent” probe is “a joke”
  • Trump threatens to permanently pull funding and end membership of WHO
  • Brazil overtakes UK to become world’s 3rd-largest outbreak
  • India’s case total passes 100k
  • Navajo Nation now home to “biggest outbreak in the US” per CNN
  • Singapore plans to start phased reopening on June 2
  • Jerusalem’s Al-Aqsa mosque set to reopen after Eid

* * *

The big news on Tuesday is the meeting of the World Health Assembly, which is expected to back a WHO-sponsored inquiry into China’s handling of the early days of the coronavirus outbreak. Last night, President Trump delivered a threatening letter where the US warned it could permanently cut funding and even cancel its membership in the WHO.

In response, China accused the US of trying to divert the world’s attention from President Trump’s handling of the outbreak by playing a “blame game” with Beijing. The White House has leveled similar accusations at Beijing. But even more tellingly, China’s ambassador in Canberra slammed Australia’s call for an independent investigation into China’s handling of the early days of the outbreak as “a joke”. The ambassador claimed the the investigation about to be authorized by the WHA doesn’t resemble the type of inquiry that Australia has called for. This gloating comes after President Xi said he’d welcome a comprehensive review, but only after the outbreak has subsided.

“To claim the WHA’s resolution a vindication of Australia’s call is nothing but a joke,” the ambassador said.

After passing the 1.5 million confirmed case threshold yesterday, globally, there have now been more than 4.8 million confirmed cases of COVID-19 and more than 318,500 people have died, according to Johns Hopkins University. Nearly 1.8 million people have recovered.

Some of the latest local updates include Russia, which reported 9,263 new cases and 115 new deaths on Tuesday morning, bringing its case total to 299,941 and 2,837 deaths. In Germany, where the gradual economic reopening has continued unabated, public health officials reported just 513 news cases, bringing Germany’s total to 175,210 cases, while reporting another 72 deaths, bringing the total to 8,007 deaths. Last night, Brazil passed the UK to become the country with the third-largest outbreak in the world after reporting another ~13k cases.

Additionally, India passed the 100k official-case threshold just days after extending its extremely stringent lockdown for another 2 weeks. Health officials reported 4,970 new cases, bringing India’s total to 101,139 cases and 132 deaths, bringing the death toll to 3,163. While India has overtaken China on the ‘official’ numbers, it’s widely believed the outbreak in the mainland was much worse than the official numbers reflect, and more than 40 new cases have been reported in Wuhan and the northeastern Jilin province over the past couple of weeks, resulting in intense new shutdown measures.

As western European states continue to loosen their travel restrictions, Spain has lifted a ban on all direct flights and ships from Italy, though travelers from Italy will have to comply with a two-week quarantine like other foreign visitors until Spain’s state of emergency is officially lifted.

Over in the US, CNN has apparently decided to focus on the plight of the Navajo Nation out west, claiming in a piece published last night that the Native American community is now home to the biggest outbreak in the country (a designation CNN once used to describe a meatpacking plant in South Dakota).

The Navajo Nation reported 69 new coronavirus cases and two additional deaths on Monday, according to a news release from the Navajo Nation president and vice president, which brought the nation’s case total to 4,071, along with 142 deaths, out of a population of roughly 200k. Of course, the rate of ~2,035 infections per 100k would put the nation’s infection rate well above that of most US states. But we suspect this isn’t really an apples-to-apples comparison.

Moving on to the big news in Washington DC on Tuesday: Treasury Secretary Steven Mnuchin and Fed Chairman Jerome Powell will testify before the Senate on the coronavirus response: Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell will testify starting at 10amET before the Senate Banking Committee, where they will deliver “The Quarterly CARES Act Report to Congress” – testimony that’s mandated as per the $2.2 trillion stimulus bill.

Meanwhile, Ivanka Trump will meet with industry leaders, including Apple CEO Tim Cook, Lockheed Martin CEO Marilyn Hewson and IBM executive Ginni Rometty, via Zoom on Tuesday.

As the outbreak in his country rages out of control, Russian PM Mikhail Mishustin has returned to his post after taking nearly 3 weeks off to recover from the virus, during which time the outbreak in his country has careened out of control.

We haven’t heard much from Singapore in a few days as the city-state’s strict new lockdown and testing campaigns appeared to finally cut down on the number of migrant workers falling ill from the virus. Singapore reported just 451 (higher than Monday’s lower but well below the city-state’s peak) new coronavirus cases on Tuesday, as the dissipation of this second wave of migrant worker infections faded. However, Singapore’s government has issued a warning about the increased risk of patients catching dengue fever due to the lockdown, the latest indication of how the shutdown in non-emergency health services could lead to ancillary health crises around the world.

Singapore also apologized to 357 COVID-19 patients who received an erroneous text message saying they had again tested positive for the virus, when they hadn’t. Singapore’s leadership also announced on Tuesday plans to begin a 3-stage reopening on June 2.

In Jerusalem, the Al-Aqsa Mosque will reopen to worshippers after the Eid holiday, according to a statement from its governing body.

“The council decided to lift the suspension on worshippers entering the blessed Al-Aqsa Mosque after the Eid al-Fitr holiday,” according to a statement from the Waqf organisation said.

Finally, in Hong Kong, Chief Executive Carrie Lam said Tuesday that social distancing measures prohibiting gatherings of more than eight people would be extended in a transparent attempt to quash resurgent anti-Beijing protests, which have reemerged as the coronavirus outbreak in the autonomous region have subsided.

END

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

WHO/USA/DONALD TRUMP

A big story!!

Trump gives the WHO 30 days to amend its folly or else Trump will permanently pull USA money and cancel its membership..reforms have to be met.

(zerohedge)

“You’ve Got 30 Days”: Trump Threatens To Permanently Pull US Money, Cancel WHO Membership If Reforms Aren’t Made

As it turns out, two “scoops” reported by Axios’ reporter Jonathan Swan over the last few days about President Trump’s intensifying animosity toward the WHO turned out to be correct. Though, given the escalating rhetorical clash between China and the US, it’s really not all that surprising to learn that President Trump’s weekend remarks were a mere momentary lapse – and that the White House is cranking up the pressure on the China-centric NGO as the “blame game” between China and the US continues to escalate.

In a tweet sent late last night, President Trump shared a letter the US had sent to the WHO warning the organization that the US could permanently withdraw funding and cancel its membership if the WHO didn’t meet its demands.

“It is clear the repeated missteps by you and your organization in responding to the pandemic have been extremely costly for the world. The only way forward for the World Health Organization is if it can actually demonstrate independence from China.”

“My administration has already started discussions with you on how to reform the organization. But action is needed quickly. We do not have time to waste.”

Trump’s political opponents have decried Trump’s aggressive criticisms of the WHO, and accused him of trying to slough off blame for his “poor” handling of the outbreak on China and the WHO. But these same opponents appear unable or unwilling to understand that the WHO issued a glowing report praising China’s handling of the outbreak in the early days, and – even more irresponsibly – stood by China when its scientists declared that there was no evidence of human-to-human transmission, even as the numbers in Wuhan had started to balloon.

Donald J. Trump

@realDonaldTrump

This is the letter sent to Dr. Tedros of the World Health Organization. It is self-explanatory!

View image on TwitterView image on TwitterView image on TwitterView image on Twitter

Trump listed several specific examples of how the WHO failed in its duty to stop the outbreak from spreading:

  • On January 14, 2020, the World Health Organization gratuitously reaffirmed China’s now-debunked claim that the coronavirus could not be transmitted between humans, stating: “Preliminary investigations conducted by the Chinese authorities have found no clear evidence of human-to-human transmission of the novel coronavirus (2019-nCov) identified in Wuhan, China.” This assertion was in direct conflict with censored reports from Wuhan.
  • On January 21, 2020, President Xi Jinping of China reportedly pressured you not to declare the corona virus outbreak an emergency. You gave in to this pressure the next day and told the world that the coronavirus did not pose a Public Health Emergency of International Concern. Just over one week later, on January 30, 2020, overwhelming evidence to the contrary forced you to reverse course.
  • On January 28, 2020, after meeting with President Xi in Beijing, you praised the Chinese government for its “transparency” with respect to the coronavirus, announcing that China had set a “new standard for outbreak control” and “bought the world time.” You did not mention that China had, by then, silenced or punished several doctors for speaking out about the virus and restricted Chinese institutions from publishing information about it.

And here are a few other topics that the letter touches on:

Travel ban double-standard

The letter points out that Tedros “strongly praised China’s strict domestic travel restrictions, but were inexplicably against my closing of the United States border, or the ban, with respect to people coming from China. I put the ban in place regardless of your wishes,” stating that the WHO director’s “political gamesmanship on this issue was deadly, as other governments, relying on your comments, delayed imposing life-saving restrictions on travel to and from China.

Taiwan

Shortly after Beijing made its initial report to the WHO (via the WHO’s office in Beijing) just before New Year’s, Taiwan followed up by reporting evidence of human-to-human transmission, which Beijing has continued to deny. These warnings were promptly ignored for political reasons. If the world had known the truth just a couple of weeks earlier (when the WHO should have known) action could have been taken to more swiftly shut down travel from China, as vacationers preparing for the Chinese New Year helped spread the virus around the globe.

Trump gets personal

Bringing it home, Trump slams Tedros as incompetent – writing that “Just a few years ago, under the direction of a different Director-General, the World Health Organization showed the world how much it has to offer. In 2003, in response to the outbreak of the Severe Acute Respiratory Syndrome (SARS) in China, Director General Harlem Brundtland boldly declared the World Health Organization’s first emergency travel advisory in 55 years, recommending against travel to and from the disease epicenter in southern China.

“Many lives could have been saved had you followed Dr. Brundtland’s example,” said Trump.

In closing, Trump gave the WHO 30 days to commit to “substantive improvements” or he will make the temporary freeze of US funding to the organization permanent, as well as “reconsider our membership in the organization.”

* * *

Meanwhile, the WHO’s obsequiousness toward China remains a puzzling mystery for many. With the US providing 4x more funding for the organization than China, Dr. Tedros’ apparent fealty to Beijing – despite the fact that President Xi’s government deliberately lied to the WHO multiple times, the director-general still felt it appropriate to invite him to deliver the keynote at the organization’s annual meeting.

Not only has the Trump administration threatened to withdraw from the WHO, it has also opposed a resolution to set aside patent laws to allow impoverished countries to produce their own vaccines and drug companies.

Beijing rebutted Trump’s letter TUesday morning as a spokesman for China’s Foreign Ministry slammed the move as “futile” and called on the US to stop the “blame game” over who is responsible for the outbreak.

China urged “a few US politicians to stop the blame game” when asked about the letter US President Donald Trump sent to the World Health Organization on Monday.”

“The US letter is full of vagueness, it tries to mislead the public to smear China and shift the blame away from its own incompetent response, currently Covid-19 is still spreading in the US, the most pressing task is solidarity and cooperation to save lives. We urge a few US politicians to stop the blame game and together defeat the virus,” Chinese Foreign Ministry spokesperson Zhao Lijian told reporters Tuesday.”

We suspect Dr. Tedros doesn’t see it that way.

Quoth the Raven@QTRResearch

Tedros reading this

Embedded video

Read the entire letter below:

The World Health Organization consistently ignored credible reports of the virus spreading in Wuhan in early December 2019 or even earlier, including reports from the Lancet medical journal. The World Health Organization failed to independently investigate credible reports that conflicted directly with the Chinese government’s official accounts, even those that came from sources within Wuhan itself.

By no later than December 30, 2019, the World Health Organization office in Beijing knew that there was a “major public health” concern in Wuhan. Between December 26 and December 30, China’s media highlighted evidence of a new virus emerging from Wuhan, based on patient data sent to multiple Chinese genomics companies. Additionally, during this period, Dr. Zhang Jixian, a doctor from Hubei Provincial Hospital of Integrated Chinese and Western Medicine, told China’s health authorities that a new coronavirus was causing a novel disease that was, at the time, afflicting approximately 180 patients.

By the next day, Taiwanese authorities had communicated information to the World Health Organization indicating human-to-human transmission of a new virus. Yet the World Health Organization chose not to share any of this critical information with the rest of the world, probably for political reasons.

The International Health Regulations require countries to report the risk of a health emergency within 24 hours. But China did not inform the World Health Organization of Wuhan’s several cases of pneumonia, of unknown origin, until December 31, 2019, even though it likely had knowledge of these cases days or weeks earlier.

According to Dr. Zhang Yongzhen of the Shanghai Public Health Clinic Center, he told Chinese authorities on January 5, 2020, that he had sequenced the genome of the virus. There was no publication of this information until six days later, on January 11, 2020, when Dr. Zhang self-posted it online. The next day, Chinese authorities closed his lab for “rectification.” As even the World Health Organization acknowledged, Dr. Zhang’s posting was a great act of “transparency.” But the World Health Organization has been conspicuously silent both with respect to the closure of Dr. Zhang’s lab and his assertion that he had notified Chinese authorities of his breakthrough six days earlier.

The World Health Organization has repeatedly made claims about the coronavirus that were either grossly inaccurate or misleading.

On January 14, 2020, the World Health Organization gratuitously reaffirmed China’s now-debunked claim that the coronavirus could not be transmitted between humans, stating: “Preliminary investigations conducted by the Chinese authorities have found no clear evidence of human-to-human transmission of the novel coronavirus (2019-nCov) identified in Wuhan, China.” This assertion was in direct conflict with censored reports from Wuhan.

On January 21, 2020, President Xi Jinping of China reportedly pressured you not to declare the corona virus outbreak an emergency. You gave in to this pressure the next day and told the world that the coronavirus did not pose a Public Health Emergency of International Concern. Just over one week later, on January 30, 2020, overwhelming evidence to the contrary forced you to reverse course.

On January 28, 2020, after meeting with President Xi in Beijing, you praised the Chinese government for its “transparency” with respect to the coronavirus, announcing that China had set a “new standard for outbreak control” and “bought the world time.” You did not mention that China had, by then, silenced or punished several doctors for speaking out about the virus and restricted Chinese
institutions from publishing information about it.

• Even after you belatedly declared the outbreak a Public Health Emergency of International Concern on January 30, 2020, you failed to press China for the timely admittance of a World Health Organization team of international medical experts. As a result, this critical team did not arrive in China until two weeks later, on February 16, 2020. And even then, the team was not allowed to visit Wuhan until the final days of their visit. Remarkably, the World Health Organization was silent when China denied the two American members of the team access to Wuhan entirely.

• You also strongly praised China’s strict domestic travel restrictions, but were inexplicably against my closing of the United States border, or the ban, with respect to people coming from China. I put the ban in place regardless of your wishes. Your political gamesmanship on this issue was deadly, as other governments, relying on your comments, delayed imposing life-saving restrictions on travel to and from China. Incredibly, on February 3, 2020, you reinforced your position, opining that because China was doing such a great job protecting the world from the virus, travel restrictions were “causing more harm than good.” Yet by then the world knew that, before locking down Wuhan, Chinese authorities had allowed more than five million people to leave the city and that many of these people were bound for international destinations all over the world.

• As of February 3, 2020, China was strongly pressuring countries to lift or forestall travel restrictions. This pressure campaign was bolstered by your incorrect statements on that day telling the world that the spread of the virus outside of China was “minimal and slow” and that “the chances of getting this going to anywhere outside China [were] very low.”

• On March 3, 2020, the World Health Organization cited official Chinese data to downplay the very serious risk of asymptomatic spread, telling the world that “COVID-19 does not transmit as efficiently as influenza” and that unlike influenza this disease was not primarily driven by “people who are infected but not yet sick.” China’s evidence, the World Health Organization told the world, “showed that only one percent of reported cases do not have symptoms, and most of those cases develop symptoms within two days.” Many experts, however, citing data from Japan, South Korea, and elsewhere, vigorously questioned these assertions. It is now clear that China’s assertions, repeated to the world by the World Health Organization, were wildly inaccurate.

• By the time you finally declared the virus a pandemic on March 11, 2020, it had killed more than 4,000 people and infected more than 100,000 people in at least 114 countries around the world.

• On April 11 , 2020, several African Ambassadors wrote to the Chinese Foreign Ministry about the discriminatory treatment of Africans related to the pandemic in Guangzhou and other cities in China. You were aware that Chinese authorities were carrying out a campaign of forced quarantines, evictions, and refusal of services against the nationals of these countries. You have not commented on China’s racially discriminatory actions. You have, however, baselessly labeled as racist Taiwan’s well-founded complaints about your mishandling of this pandemic.

• Throughout this crisis, the World Health Organization has been curiously insistent on praising China for its alleged “transparency.” You have consistently joined in these tributes, notwithstanding that China has been anything but transparent. In early January, for example, China ordered samples of the virus to be destroyed, depriving the world of critical information. Even now, China continues to undermine the International Health Regulations by refusing to share accurate and timely data, viral samples and isolates, and by withholding vital information about the virus and its origins. And, to this day, China continues to deny international access to their scientists and relevant facilities, all while casting blame widely and recklessly and censoring its own experts.

• The World Health Organization has failed to publicly call on China to allow for an independent investigation into the origins of the virus, despite the recent endorsement for doing so by its own Emergency Committee. The World Health Organization’s failure to
do so has prompted World Health Organization member states to adopt the “COYID-19 Response” Resolution at this year’s World Health Assembly, which echoes the call by the United States and so many others for an impartial, independent, and comprehensive review of how the World Health Organization handled the crisis. The resolution also calls for an investigation into the origins of the virus, which is necessary for the world to understand how best to counter the disease.

Perhaps worse than all these failings is that we know that the World Health Organization could have done so much better. Just a few years ago, under the direction of a different Director-General, the World Health Organization showed the world how much it has to offer. In 2003, in response to the outbreak of the Severe Acute Respiratory Syndrome (SARS) in China, Director General Harlem Brundtland boldly declared the World Health Organization’s first emergency travel advisory in 55 years, recommending against travel to and from the disease epicenter in southern China. She also did not hesitate to criticize China for endangering global health by attempting to cover up the outbreak through its usual play book of arresting whistleblowers and censoring media. Many lives could have been saved had you followed Dr. Brundtland’s example.

It is clear the repeated missteps by you and your organization in responding to the pandemic have been extremely costly for the world. The only way forward for the World Health Organization is if it can actually demonstrate independence from China. My Administration has already started discussions with you on how to reform the organization. But action is needed quickly. We do not have time to waste. That is why it is my duty, as President of the United States, to inform you that, if the World Health Organization does not commit to major substantive improvements within the next 30 days, I will make my temporary freeze of United States funding to the World Health Organization permanent and reconsider our membership in the organization. I cannot allow American taxpayer dollars to continue to finance an organization that, in its present state, is so clearly not serving America’s interests.

END
Michael Every…

Rabobank: China’s Xi Extoled The Virtues Of Globalization On The Same Day He Slapped An 80% Tariff On Australian Barley

Submitted by Michael Every of Rabobank

All good, healthy stuff

Yesterday saw a strong equity market rally (S&P +3.1%), a sell-off in bonds (10-year US Treasuries rising above 70bp but back to that level at time of writing), oil up significantly (Brent now at USD34.67, so around 8% higher since the end of last week), and the USD down on the broadest measure (DXY dropping from a high of 100.5 to 99.6).

In a data-free day this was nothing to do with what we saw unfold at the World Health Organisation pow-wow, being held virtually. There, China’s Xi Jinping gave the same kind of speech that he did at Davos a few years ago, extoling the virtues of globalisation and co-operation and promising Chinese leadership – as well as a virus vaccine for all just as soon as they find one. With Davos in mind, this was on the same day that China confirmed it is slapping a market-closing 80% tariff on Australian barley.

Meanwhile, Taiwan’s bid for some kind of WHO status was dropped (sparking an angry official response from the US State Department), but the body agreed to launch an independent probe into how it managed the initial virus response – though this will not go as far as the actual origins of the virus itself, which is where the US and China continue to trade recriminations. Indeed, US President Trump has also just announced that he may once again cut funding to the WHO, after having only just partially reinstated it, because it is a “puppet of China”, giving it 30 days to make “major, substantive improvements”. He also admitted he has been taking hydroxychloroquine and zinc as a precautionary measure. (There was no mention of any bleach being ingested.)

The market rally was instead all because US firm Moderna announced that its phase one virus trial, on eight healthy young people, had been a success. Each of them had developed antibodies the same as those of people who had been exposed to Covid-19 and so their experimental vaccine “has potential to prevent Covid-19.”

That is unadulterated good news. However, consider some of the small print. All companies searching for a vaccine like to say they are doing well: it’s very much in their interest. This was a sample of less than ten when phase two, starting in months, will be on many thousands. Even if that hurdle is passed with flying colours we will still not see a vaccine on the US market, let alone in emerging markets, until early 2021. That is still a vast economic problem for the rest of this year at the very least and, as we are already seeing flagged with airline routes, will mean infection-free pockets opening up to each other and excluding others – exactly as we flagged would happen.

Moreover, that is the best-case scenario. The vaccine is not certain to work. For example, the promising Oxford vaccine trial which is now undergoing human trials and reportedly offers “some” immunity against the virus has apparently still failed to stop the six monkeys on which it was first tested from contracting Covid-19.

Meanwhile, markets in Europe were cheered by another dose of promising medicine. With serious questions being asked about the Eurozone’s institutional structure, we may just have a breakthrough of sorts: France and Germany has jointly proposed a new borrowing scheme of EUR500bn which will be led by the European Commission and operate within the framework of the EU budget, from which they would be repaid.

The details of this new proposal are unclear and it is still possible that it could be vetoed by one of the block’s ‘hairshirt’ members. It’s also immediately evident that it is in no way adequate. Italy alone could probably use EUR500bn when one looks at the scale of what the US economy is spending. Nonetheless, it would appear that a political and economic Rubicon has been crossed – and one that also appears to be able to circumvent the apparent obstacle of recently presented by the German Constitutional Court. Yet like all medicines there will be a risk of side effects. If this mechanism works, it will surely grow from EUR500bn. That’s what all bureaucracies do, and European ones in particular. And that will leave an ever-larger pool of funds being decided above the national level. The politics of this should be obvious.

Yet despite some genuine reasons for optimism now sitting on top of the usual market-ramping that is our institutional attempt to disconnect market-pricing from reality, we see some bitter pills which remind us that we were already sick long before Covid-19 hit us.

The Bank of England are sending even more signals that they are interested in negative rates. One member seems to believe that within the EU negative rates “have had a positive effect in the sense of having a fairly powerful transmission to real activity.” And there were cynics noting Europe’s descent into zombification, Japanification, and lack of real activity. GBP obviously is not enjoying that prospect much. If only the UK had an export-based economy, and any export markets still open at the moment (or in the future at the rate Brexit talks are going), it would be rubbing its hands.

The RBA left rates on hold at 0.25% today, as expected, noted that wage freezes and wage cuts are to become more common, and worried that this would logically flow through to the holy of holies, the housing market. (As Aussie TV news recently interviewed someone deep in the residential property market who said many agents are not telling vendors how bad the market actually is right now to try to paper over the cracks.) Rates are on hold in Oz until full employment and inflation goal are met. Welcome to Japan once again. But this time a Japan without a hefty current-account surplus to support its currency – should anything ever happen to Chinese iron-ore demand.

Meanwhile, the US Nasdaq has just announced that it is to tighten its listing rules for IPOs to restrict Chinese firms. China is not being named directly, but the measures target a lack of accounting transparency – which is a synonym for the same thing. The Nasdaq is now going to audit the small US firms who audit Chinese IPO wannabes, for a start. Moreover, a minimum size of USD25m is being put on IPOs, which would have stopped 40 of the 155 Chinese firms that have listed on the Nasdaq since 2000, according to Refinitiv data. Trade > tech > capital. I keep repeating that mantra because the symptoms keep repeating in US-China relations. And yet they are just symptoms, not the actual disease. That runs far deeper.

END

7. OIL ISSUES

It does not look like the oil rally will last

(courtesy Nick Cunningham/Oil Price.com)

 

The Oil Rally Is Running On Fumes

Submitted by Nick Cunningham at Oilprice.com

Oil prices have surged to two-month highs on growing signs of a rebound in oil demand, as the easing of lockdowns spread worldwide. At its peak in April, global lockdown measures affected around 3.9 billion people. But an estimated 3.7 billion people are now living in areas that are experiencing some version of a “reopening,” according to an estimate from Raymond James.

Data from China has stoked some bullishness in oil markets, although there are some mixed signals. Traffic is back in many Chinese cities, and there are early signs that China’s oil demand is rising back close to pre-pandemic levels around 13 million barrels per day (mb/d).

At the same time, a new coronavirus cluster in China suddenly sparked another lockdown measure. While Wuhan and other regions may be opening up, roughly 108 million people in Jilin province just went into lockdown. It’s a sign that the fight against COVID-19 will likely be frustrated by repeated flare ups in new cases, which may ultimately lead to renewed lockdowns. 

But for now, the markets apparently want to focus on the positive. On the global vaccine front, there appears to be some progress. Moderna said on Monday that its vaccine has shown to be safe in humans and has also demonstrated promising results in stopping COVID-19. Meanwhile, AstraZeneca said it could have 30 million doses of its vaccine ready by September.

Financial equities rejoiced, with the Dow Jones up roughly 3.5 percent during midday trading. WTI surged past $30 per barrel, up at one point on Monday by more than 10 percent.

Massive supply cuts go even further in explaining the recent jump in prices. Oil traders view the implementation of the OPEC+ cuts favorably, with the 9.7 mb/d cuts phasing in swiftly. Part of the reason is that some oil producers, including Saudi Arabia, began having difficulty finding a home for its oil, so a portion of the cuts arguably became involuntary.

Meanwhile, weeks of catastrophically low oil prices ravaged North American oil producers over the past two months. Shut ins could reach 2 mb/d in the U.S. by June, and Canada could lose 1 mb/d.

But a reality check is in order. WTI at $30 per barrel is suddenly seen as “bullish,” but that price level is financially unsustainable for a vast swathe of global oil supply, including most of the U.S. shale complex.

Moreover, the physical oil market is not “out of the woods” just yet, according to Rystad Energy. “We still see a 13.7 million bpd implied liquids (crude, condensate, NGLs, others) stock builds in May-20,” the firm said in a statement. That is down by half from the peak of the glut (-26.7 mb/d in inventory builds in April), but a significant overhang remains.

Separately, Commerzbank argued that the oil market optimism may be running a little too far. “Despite all the euphoria, however, we believe that caution is still advisable: it will probably take some years before demand recovers to its pre-crisis level,” Commerzbank wrote on Monday.

U.S. Federal Reserve Chairman Jerome Powell warned that the American economy recovery could take until the end of 2021. “It could stretch through the end of next year. We really don’t know,” Powell said over the weekend. He noted that the economy might not return to normal simply because stay-at-home-orders are in the process of going away. “For the economy to fully recover people will have to be fully confident, and that may have to await the arrival of a vaccine,” Powell added.

In addition, the price rally may also be the result of speculative positioning – the physical market is trending towards rebalancing, but the rally can also be explained by overly exuberant speculative positioning. “Retail and institutional investors are also likely to have played a key part in the latest price rise. According to the CFTC, the latter expanded their net long positions in WTI on the NYMEX to around 352,000 contracts in the week to 12 May, putting them at their highest level since September 2018,” Commerzbank added. “Thus the positive trends (for the oil price) are largely expected and already priced in.”

The lockdowns are lifting, but there is nothing to suggest that the end of the pandemic is near, or that oil supply will remain shut in. “[T]here is significant downside risk related to two events, the resurgence in COVID-19 outbreaks, and deteriorating compliance to OPEC+ cuts as demand comes back,” Rystad warned.

END

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.0958 UP .0044 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /MIXED

 

 

USA/JAPAN YEN 107.69 UP 0.310 (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 1.2245  UP   0.0049  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3908 DOWN .0031 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  TUESDAY morning in Europe, the Euro ROSE BY 44 basis points, trading now ABOVE the important 1.08 level RISING to 1.0958 Last night Shanghai COMPOSITE CLOSED UP 23.16 POINTS OR 0.81% 

 

//Hang Sang CLOSED UP 453.36 POINTS OR 1.89%

/AUSTRALIA CLOSED UP 1,82%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 453.56 POINTS OR 1.89%

 

 

/SHANGHAI CLOSED UP 23.16 POINTS OR 0.81%

 

Australia BOURSE CLOSED UP  1.82% 

 

 

Nikkei (Japan) CLOSED UP 299.72  POINTS OR 1.49%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1734.30

silver:$17.10-

Early TUESDAY morning USA 10 year bond yield: 0.73% !!! UP 0 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.46 UP 2  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 99.35 DOWN 32 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing  TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.76% DOWN 9 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: 0.72%//DOWN 8 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,64 DOWN 3 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 92 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.46% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.87% 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 TUESDAY

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

Euro/USA 1.0933  UP     .0019 or 19 basis points

USA/Japan: 107.86 UP .485 OR YEN DOWN 49  basis points/

Great Britain/USA 1.2250 UP .0052 POUND UP 52  BASIS POINTS)

Canadian dollar UP 61 basis points to 1.3879

 

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The USA/Yuan,CNY: AT 7.0992    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1120  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.9109 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 2 IN basis points from MONDAY at 0.71 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.59 UP 3 in basis points on the day

Your closing USA dollar index, 99.47 DOWN 20  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 TUESDAY: 12:00 PM

London: CLOSED DOWN 46.36  0.77%

German Dax :  CLOSED UP 16.42 POINTS OR .15%

 

Paris Cac CLOSED DOWN 40.18 POINTS 0.89%

Spain IBEX CLOSED DOWN 170.20 POINTS or 2.51%

Italian MIB: CLOSED DOWN 366.91 POINTS OR 2.11%

 

 

 

 

 

WTI Oil price; 31.71 12:00  PM  EST

Brent Oil: 34,35 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    72.53  THE CROSS LOWER BY 0.16 RUBLES/DOLLAR (RUBLE HIGHER BY 16 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.46 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 :  32.50//

 

 

BRENT : 34.63

USA 10 YR BOND YIELD: … 0.69..down 4 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.42..down 2 basis points

 

 

 

 

 

EURO/USA 1.0935 ( down 21   BASIS POINTS)

USA/JAPANESE YEN:107.72 up .338 (YEN DOWN 34 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 99.46 DOWN 20 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2260 DOWN 60  POINTS

 

the Turkish lira close: 6.7819

 

 

the Russian rouble 72.42   UP 0.27 Roubles against the uSA dollar.( UP 27 BASIS POINTS)

Canadian dollar:  1.3922 UP 17 BASIS pts

 

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

 

The Dow closed DOWN 390.51 POINTS OR 1.59%

 

NASDAQ closed DOWN 49.72 POINTS OR 0.54%

 


VOLATILITY INDEX:  30.32 CLOSED UP 1.02

LIBOR 3 MONTH DURATION: 0.376%//libor dropping like a stone

LIBOR/OIS:  .317%

TED SPREAD: ( LIBOR VS  3 MONTH TREASURY)= .254%

 

USA trading today in Graph Form

Silver Soars, Stocks Slammed After Vaccine Vicissitudes

After yesterday’s record buying pressure at the open (and as Morgan Stanley noted, one of the largest days of buying we have seen in recent months as hedgies abandoned near record shorts), today saw no follow through in stocks and worse still as MRNA headlines pissed in the punchbowl, vanquishing vaccine hopes (Nasdaq desperately clung to gains for most of the day but when the selling started Small Caps and The Dow led the dumpage)…

Fed’s Rosengren didn’t help much into the close either as he played epidemioogist on TV and warned of lifting the lockdown.

But FANG Stocks surged to a new record high…

Source: Bloomberg

The S&P “triple-topped”, stuck between its Fibonacci levels once again…

S&P failing at 2950 once again (still holding half of the Moderna ramp gains)…

Notably Nasdaq futures filled the gap from 02/21…

But if yesterday was all about a vaccine, why were Biotechs battered?

Source: Bloomberg

Moderna was monkeyhammered today (according to the narratives, this was why the market was up 1000 points yesterday!) after reports that MRNA did not produce the data itself…

Of course the market didn’t care…

Source: Bloomberg

Does make one wonder…

“Most Shorted” stocks were squeezed once again…

Source: Bloomberg

Treasury yields were modestly lower today after yesterdays panic-selling in bond land…

Source: Bloomberg

10Y tagged yesterday’s high at 74bps overnight before rallying lower again today…

Source: Bloomberg

The dollar legged lower again today, coiling tighter…

Source: Bloomberg

WTI’s June contract expiration was dramatically quieter than the May expiration

But remained bid all day ahead of tonight’s API data.

Gold ($1750) and Silver ($18) rallied on the day…

With Silver dramatically outperforming… again… back below 100-to-1 against gold – this is the biggest 4-day outperformance of silver over gold since June 2016

Source: Bloomberg

Finally, you have to laugh really…Nasdaq is just 5% from record highs and Consensus 12m Fwd EPS is down 11%…

Source: Bloomberg

And what do commodity and bond markets know?

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/ LATE AFTERNOON

A sweeping emergency deregulation effort on the part of Trump

(zerohedge)

Trump Orders “Sweeping Emergency Deregulation Effort” To Loosen Restrictions On Telemedicine, Small Business

Just hours after Democratic Senators on the Banking Committee (including Elizabeth Warren, back on Capitol Hill and quietly campaigning to be Joe Biden’s VP pick) finished castigating Treasury Secretary Steven Mnuchin for purportedly allowing corporations far too many concessions in the ‘PPP’ and the other lending programs, President Trump said moments ago that he would sign an executive order to continue his push to cut more regulations to bolster economic growth.

The Washington Examiner reported shortly before the announcement that Trump was ordering “a sweeping emergency deregulation effort” to help jump-start the economy.

President Trump is ordering a sweeping emergency deregulation effort Tuesday to jump-start the economic recovery from the coronavirus outbreak, and directing federal agencies not to “over-enforce” regulations against small businesses that are working to bounce back, The Washington Times has learned.

Mr. Trump is signing an executive order during a Cabinet meeting to direct federal agencies to use rapidly all emergency and “good cause” authorities to find regulations that can be rescinded or temporarily waived to promote job creation and economic growth.

The president is expected to say that the nation is fighting a crisis not by grabbing more power for the government, but by giving it to the American people.”

When Trump signs the order tonight, he’ll ask federal agencies to review any “emergency” changes to regulation – particularly regulations impacting small businesses – and make permanent as many cuts as they can.

He’ll say that deregulation drove historic economic growth before the pandemic struck, and deregulation will bring the economy back stronger than ever. The president is also asking federal regulators not to crack down on small companies struggling to abide by the rules during the recovery.

“Where small businesses are working hard to comply with the law, I am asking agencies to recognize those efforts and not over-enforce where a business or organization has tried in good faith to comply with the law,” the president will say, according to prepared remarks.

“Small businesses, entrepreneurs, and the American people are the ones who are going to bring this economy roaring back, and the government should not be tying their hands with red tape.”

The decision is designed to bolster growth in telemedicine and even speed up transportation of livestock, senior administration officials said.

Senior administration officials said the action could speed the growth of telemedicine, for example, and accelerate pending transportation rules to aimed at shipping LNG by rail and more efficiently transporting livestock and other food products by truck.

Acting Office of Management and Budget Director Russ Vought said federal agencies have taken more than 600 temporary deregulatory actions to fight the pandemic, and now the administration will move to make permanent “any deregulation possible” to boost the economy.

They added that the order is indicative of Trump’s “unique perspective” (read: mistrust and antipathy) toward the “administrative state.”

“If a bureaucratic rule needs to be suspended during a time of crisis to help the American people, we should ask ourselves if it makes sense to keep at all,” Mr. Vought said. “Typically when our country has faced a crisis, Washington responds by grabbing more power.

President Trump understands that to get the economy moving, the power needs to be given back to the people and entrepreneurs.”

Paul Ray, administrator of the White House Office of Information and Regulatory Affairs, said the move highlights the president’s unique perspective on “the administrative state.:”

“He knows that what will jump-start the economy is not Big Government, but the American people,” Mr. Ray said. “That’s why this president is fighting the economic emergency by returning even more liberty to the people.”

We suspect liberals like former Clinton cabinet member Robert Reich will have a lot to say about this decision. If the outrage gets really bad, we might even see Ralph Nader, the consumer champion, make an appearance on CNBC.

END

ii)Market data/USA

As expected housing starts and permits plunge

(zerohedge)

US Housing Starts, Permits Plunge To 5 Year Lows

Having already collapsed in March, analysts expected further terrible weakness in both housing starts and building permits in April as the impact of lockdowns really escalated, and the data did indeed come in ugly.

  • Housing Starts fell 30.2% MoM in April (worse than the 26.0% drop expected and accelerating considerably from the 22.3% drop in March). This is a record drop.
  • Building Permits fell 20.8% MoM in April (better than the 25.9% expected)

Source: Bloomberg

The SAAR chart is a bloodbath with Starts at their lowest since Feb 2015 and Permits lowest since Jan 2015

Source: Bloomberg

Multi-family Starts dominated the drop… down over 40% to the lowest since April 2013, single family starts were down 25.4% to 650K, lowest since March 2015

Single-family permits plunged 24.3% to 669K, lowest since March 2015, and multi-unit permits dropped 12.4% to 373K, lowest since Feb 2017.

As a reminder, applications to build are a proxy for future construction, and the biggest drops were in the Northeast (-45.5% for single-family) and West (-33.2% for single-family).

iii) Important USA Economic Stories

The relentless media attacks on Trump are beginning to backfire

(Jonathan Turley)

The Revenge Of “Bobo The Clown”? How The Media Is Inadvertently Reelecting Donald Trump

Authored by Jonathan Turley,

Various media outlets are struggling with recent polls that not only show President Trump at the same popularity as this time last year but actually rising in states like Ohio. When one poll found him leading by 7 points in battleground states, John King cautioned viewers to “be careful not to invest too much in any one poll” especially amid the coronavirus.

It was a CNN poll and, while Biden leads in other polls, it is not unique.

The media seems honestly confused. It was not supposed to work this way. With unrelentingly negative coverage of an impeachment, a pandemic, and an economic collapse, voters were supposed to be angry. There is even a psychological model for such social cognitive learning or conditioning called “Bobo the Clown” and, while this experiment by psychologist Albert Bandura, these polls suggest that conditioning does not work nearly as well in politics as it does on playgrounds.

In 1961, Bandura used a goofy inflatable clown named Bobo and had children watch adults as they acted aggressively toward it. Soon the children followed the adults’ example and beat the clown. Conversely, when children watched the clown being treated without aggression, they were less aggressive toward it.

For many voters, Donald Trump and Joe Biden are not so funny clowns, and voters are being conditioned by some in the media to treat one aggressively and the other not aggressively. It is not the first attempt at media conditioning: In 2016, when every poll indicated that voters wanted outsider candidates, Democratic leaders pushed through one of the two most unpopular presidential candidates in history, Hillary Clinton.

She was beaten by the other most unpopular figure on the Republican side, Trump. Yet, after largely positive treatment of Clinton and correspondingly negative coverage of Trump, the election results stunned experts who predicted an easy win for Clinton — and why not? Voters had been exposed to unyielding, continual media conditioning against Trump.

The conclusion of the media today appears to be that the scathing treatment in 2016 was not aggressive enough. Trump is routinely called an actual clown by some in the media. More importantly, there are now consistent attacks on Trump supporters. Washington Post “conservative columnist” Jennifer Rubin has declared that Trump supporters as a whole are racists. That common stereotyping of Trump supporters is uncontested, even as the media objects to Trump’s generalizations about other groups.

Columnist Leonard Pitts wrote a recent column entitled, “No, it’s not the economy, stupid. Trump supporters fear a black and brown America.” The narrative has moved beyond Clinton’s description of Trump supporters as a “basket of deplorables” to now portraying all Trump supporters as open racists. “Make America Great Again” hats are denounced by academics as the symbol of “modern day hitlerjugend” and hate speech.

It is all part of media-cognitive learning, and it is working in a curious way. Recent polls show Trump at the exact same spot as he was last year, with roughly 43 percent support. In Ohio he actually is ahead by 3 percentage points in a survey from Emerson College and Nexstar Media; he and Biden are in a statistical dead heat in Wisconsin. In other words, as in 2016, the media campaign is forcing Trump supporters into the closet, but not away from Trump.

Meanwhile, the media has been working hard at non-aggressive treatment of Biden. His frequent gaffes are quickly dismissed; when he was accused of sexual assault, the media reluctantly noted the story. Even when Biden recently espoused a conspiracy theory that Trump was going to halt the November election, the media called it a “prediction” and ignored that it was based on a fundamental misunderstanding of the Constitution.

At the end of last year, the Media Research Center found that network evening news was 96 percent negative against Trump. The drumbeat has only increased with impeachment and pandemic coverage this year. Despite such saturated messaging, polls show that the number of voters expressing strong “enthusiasm” for Biden is wallowing at just 24 percent, while Trump remains at 53 percent. Biden is just 3 points ahead of Trump in the most recent polls, actually behind where Clinton was in 2016. The reason may be that the anti-Trump narrative is so overwhelming that voters feel they are being played like the kids in the Bandura experiment.

Consider again the recent attack of the Post’s Rubin on most Republicans. Rubin lashed out at the immigration freeze ordered by Trump during the pandemic; however, she was not satisfied with denouncing the policy as a political stunt to appeal to the unemployed. She declared:

“No doubt Trump’s base is primarily motivated by racism. This is why Trump does this.”

The statement captures the accepted, unhinged bias against all Trump supporters in the mainstream media.

I did not vote for Trump, and I have regularly criticized him in columns and blog posts. However, I have watched the stereotyping of Trump supporters at media conferences for years. It suggests that roughly 63 million people in this country who voted for Trump in 2016 are knuckle-dragging racists. It ignores the fact that Hillary Clinton had record negative polling before the nomination and was widely viewed as pathologically inauthentic.

Recently, polls show 85 percent of Republicans support Trump. Thus, according to Rubin, 85 percent of Republicans (and roughly 10 percent of Democrats and 47 percent of independents) — in other words, almost half of America — are primarily motivated by racism. Does that track with any sense of reality? There are a host of reasons for these voters to support Trump other than racism.

What is not being discussed much in the media is that people might have non-racist reasons for supporting Trump. The fact is that Trump has a curious record: He has been repeatedly (and correctly) chastised for untrue statements, and yet he has one of the best records for actually keeping campaign promises — the crackdown on immigration, building of the border wall, pro-life policies and appointments, selection of conservative jurists, tax cuts, regulation rollbacks, opening up areas to oil drilling.

These and many other aspects of his administration are the most controversial but also are the long-held wish list of conservatives going back to Ronald Reagan. Indeed, while 85 percent of Republicans support Trump, a new poll shows that 23 percent would like to see someone else as their nominee. Yet, Rubin and others simply dismiss all Trump supporters as monolithic, pathological racists.

Thus, polls indicate that the unending attacks on Trump and his supporters in the media are not conditioning but, instead, are repelling voters. They are fulfilling his narrative that voters cannot trust the media. Many voters may still view both Trump and Biden as over-inflated clowns, but they resent being continually conditioned to hit one clown and hug the other.

Indeed, if Trump is reelected, he may have the media to thank.

END

 

It looks like this is where it is heading:  Biden will pick Michelle Obama and then if Biden wins, he will retire because of sicknes

(Luongo)

Trump Goes On Offense Against Obama

Authored by Tom Luongo via The Strategic Culture Foundation,

If Donald Trump wants to get re-elected as President of the U.S. he’s going to have to take out former President Barack Obama. At this point Obama is the person who most stands in his path for a second term.

Former Vice President Joe Biden may well wind up being the nominee but that’s only because he is Obama’s stand in since Obama can’t run for a third term thanks to the only part of the U.S. Constitution anyone seems to give a damn about anymore.

But, make no mistake, the current flap about the unmasking of Trump’s first (and short-lived) National Security Adviser Gen. Michael Flynn is all about Trump finally going on the offensive after more than three years of fighting rear-guard actions just to stay in power.

Obama was the ring leader in the operation to spy on Trump and anyone with half a brain knows it. The unmasking of the unmaskers in the Obama administration is to tarnish his legacy and dishearten any centrist voters who may be tiring of Trump’s mistakes and the worsening economic collapse engineered by the shutdown of the economy during the peak of the COVID-19 hysteria.

This is why it is imperative for Trump to take Obama out of this election cycle as quickly as possible.

With Hillary finally bending the knee to Obamawhen she publicly endorsed Biden that was the signal that she’s acknowledging she’s lost the fight for control over the Democratic Party, which she and her husband have ruled with a closed fist for decades.

Now Obama is free and clear to begin campaigning openly on Biden’s behalf. And don’t for a second think that the trial balloons of his wife Michelle being Biden’s running mate are the fanciful wishes of hopeless Democrats. Michelle is absolutely one of the top candidates for that job.

Because with Trump surviving everything thrown at him to this point the only chance Biden has this fall is his second coming as the Left’s political messiah. Take nothing away from Obama, he is an excellent campaigner.

With Michelle as his running mate that puts Obama right where he needs to be, hounding Trump on all the issues that are supposed to be weaknesses for him – the economy, COVID-19 deaths, unemployment, etc.

So, the timing of Trump having his acting ODNI Director Richard Grenell pick a public spat with the hapless Head of the House Intelligence Committee Adam Schiff and get the transcripts of the impeachment interviews released to the public isn’t coincidence, folks. These transcripts confirm that Obama’s inner circle all lied through their teeth in the media for years about the RussiaGate collusion story.

This comes on the heels of Trump’s somewhat cleaned up Dept. of Justice dropping the case against Flynn which then opens up the opportunity to resurrect the timeline of events which led up to his firing and indictment by the very people now revealed as bald-faced liars and conspirators.

Trump then goes directly to the people and coins the term of the year, “Obamagate.”

Donald J. Trump

@realDonaldTrump

OBAMAGATE!

He’s telling the entire world who his target is. He knows that if he loses this election any chance of reforming any part of the D.C. swamp vanishes as Biden steps aside for health reasons after sweeping everything under the rug and Obama rules the White House from the shadows as First Lady.

And it’s clear that this is the real reason behind the Democratic governors defying their people and Trump on opening up their cities and states. They are purposefully trying to destroy the country to regain control over it.

These people are vandals.

But Trump’s biggest obstacle at this point isn’t the Democrat-controlled House or the Media, it is the Republicans in the Senate who have proven repeatedly to be spineless when it comes to anything substantive.

You can see the maneuvering and horse trading already. Lindsey Graham (R-SC) is already trying to downplay the magnitude of this scandal, which makes Watergate look like the raid on the dean’s office in Animal House.

Obama is guilty of the highest crimes a President can be guilty of, utilizing Federal law enforcement and intelligence services to spy on a political opponent during an election. This is after eight years of ruinous wars, coups both successful and not, drone-striking U.S. citizens and generally carrying on like the vandal he is.

Thankfully Rand Paul (R-Ky) has been activated by Trump to go after Graham directly and force him to back peddle. Paul is already calling for hearings in the Senate, using his Chairmanship of the Government Oversight Committee to end run around Light in the Loafers Lindsey.

The FBI is now going after people like Richard Burr (R-NC), head of the Senate Intelligence Committee for potential insider trading violations. This is a pure power play to make sure Burr doesn’t let this die in committee.

If this tweet isn’t clear enough that Trump wants Obama’s head on a platter and he’s now willing to go scorched earth on him and anyone trying to protect Obama to get it I don’t know what is.

Donald J. Trump

@realDonaldTrump

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

Things are spiraling out of control in D.C. quickly. A reader noted to me recently that one of Trump’s strengths is that he thrives in chaos, that he’s most comfortable stirring the pot and getting everyone around him ‘on tilt’ as the poker players say.

That’s what he’s doing now with #Obamagate. He’s doing what he does best, forcing his opponents to ab react to him and leaving them vulnerable to his next attack. He’s in pure campaign mode now, which we haven’t seen in four years.

But this time he’s campaigning with a lot more resources at his disposal especially if he has them all nailed. Trump wouldn’t be going after Obama if he didn’t have proof of Obama’s guilt. He’s a limbic creature but he’s not random.

Obama’s people will spin this as desperation over the mishandling of COVID-19, but it won’t matter. With a Justice Dept. that looks ready to get to work for the first time in decades, Trump just well be ready to finally do something right.

END

iv) Swamp commentaries)

Senate GOP Compile Massive Subpoena List For FBI Abuse Probe; Demand Unredacted Susan Rice Letter

In the wake of bombshell evidence that shows the Obama DOJ inappropriately targeted the 2016 Trump campaign, Senate Republicans have compiled a list of 53 individuals they want to interview as part of their own comprehensive probe into the matter, separate of the Trump DOJ’s separate criminal investigation headed up by US Attorney John Durham.

That said, as Fox News reports, the effort is being led by Senate Judiciary Committee Chairman Lindsey Graham (R-SC), so we expect weekly cable news appearances in which Graham wags his finger and issues the sternest of empty threats to investigate the swamp.

Graham has previously come under fire for failing to follow through on promises to seek testimony from current and former DOJ and FBI officials – telling Fox News‘ Maria Bartiromo that he doesn’t want to interfere with Durham’s probe.

But – in the unlikely event Graham isn’t going to simply run cover for the swamp in a sham investigation designed to placate those who seek justice, here are the names of those on the subpoena list, via Fox News:

The majors:

[former FBI Director] James Comey, [former FBI Deputy Director] Andrew McCabe, [former Director of National Intelligence] James Clapper, [former CIA Director] John Brennan, [former Deputy Attorney General] Sally Yates.

We note that the names of both President Obama and his VP Joe Biden are conspicuously absent, despite the fact that both of them were in a January 5, 2017 meeting in which Obama gave Comey the nod to conceal information from the incoming Trump administration.

Donald J. Trump

@realDonaldTrump

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

Graham, in response, said that asking for testimony from a former president would set a ‘dangerous precedent.

Everyone else:

“Trisha Anderson, Brian Auten, James Baker, William Barr, Dana Boente, Jennifer Boone, Kevin Clinesmith [the FBI lawyer who allegedly falsified a CIA email to secure the Carter Page FISA warrant], Patrick Conlon, Michael Dempsey, Stuart Evans, Tashina Gauhar [a top DOJ deputy when classified details of Flynn’s calls with the Russian ambassador were illegally leaked to The Washington Post], Carl Ghattas, Curtis Heide, Kathleen Kavalec, David Laufman [who arranged a key meeting with a Steele dossier source], Stephen Laycock, Jacob Lew, Loretta Lynch, Mary McCord, Denis McDonough, Arthur McGlynn, Jonathan Moffa, Sally Moyer, Mike Neufield, Sean Newell, Victoria Nuland, Bruce Ohr, Nellie Ohr, Stephanie L. O’Sullivan, Lisa PageJoseph Pientka [who interviewed Flynn at the White House while also playing a key role in the Carter Page probe, and whom the FBI has hidden from scrutiny], John Podesta, Samantha Power, E.W. “Bill” Priestap [who authored the memo debating whether the bureau simply wanted Flynn “fired”], Sarah Raskin, Steve Ricchetti, Susan RiceRod Rosenstein, Gabriel Sanz-Rexach, Nathan Sheets, Elizabeth Sherwood-Randall, Glenn Simpson, Steve Somma [an FBI case agent who apparently was involved in several key FISA omissions], Peter Strzok, Michael Sussman, Adam Szubin, Jonathan Winer, and Christopher Wray.”

Priestap authored a handwritten memo that openly questioned if the FBI’s “goal” in interviewing Flynn was “to get him to lie, so we can prosecute him or get him fired” — a document that the feds turned over earlier this month, even though the DOJ had been under an obligation to turn over potentially exculpatory materials to Flynn for more than two years.

Documents also revealed  that Strzok, the anti-Trump FBI agent who also participated in the Flynn interview, pushed to keep the Flynn probe alive even though the FBI’s Washington field office wanted to close the case.

The DOJ revealed late Monday that it has produced the bureau’s May 5 interview of Preistap, although the interview notes have remained under seal for now. –Fox News

Fox points out that Pientka – who interviewed Flynn and was involved in the Carter Page investigation, was removed from the FBI’s website after the news outlet contacted the agency about his extensive role in the Crossfire Hurricane probe.

Techno Fog@Techno_Fog

FBI Agent Joe Pientka – who lied the FISA Court and later interviewed Flynn – was promoted and moved to the SF area AFTER the FBI learned of serious problems in his FISA application.

The SF FBI Field Office has scrubbed him from their site.

See screengrabs below.

View image on TwitterView image on Twitter

Graham’s subpoena list is set for debate starting May 21, while a vote is expected June 24. In order to move forward, Judiciary Committee subpoenas would require the consent of a ranking Democrat, or a full vote of the committee.

Meanwhile, Senate Homeland Security Chairman Ron Johnson (R-WI) requested on Monday that the DOJ turn over an unredacted copy of an email that former National Security Adviser Susan Rice sent to herself on inauguration day documenting that secretive January 5, 2017 Oval Office meeting in which Obama “shocked a top DOJ official with his knowledge of the FBI’s Flynn probe.”

“I understand your office is currently reviewing a January 20, 2017, email from former National Security Adviser Susan Rice,” Johnson wrote to Attorney General Bill Barr. “In that email, Ambassador Rice summarized an Oval Office meeting with President Obama and other administration officials that occurred on January 5, 2017.” (via Fox News)

“A majority of Ambassador Rice’s email was declassified but a portion of the email remains classified. The significance of that meeting is becoming increasingly apparent as more and more information is declassified. For these reasons, it is essential that Congress and the American people understand what occurred during that January 5, 2017, meeting and how it was later characterized by administration officials. The declassification of Ambassador Rice’s email, in whole, will assist these efforts.”

Obama was aware of the details of Flynn’s intercepted December 2016 phone calls with Russia’s then-Ambassador Sergey Kislyak, apparently surprising Sally Yates in the Oval Office meeting, according to documents released this month as exhibits to the government’s motion to dismiss the Flynn case. -Fox News

According to documents released earlier this month, Obama’s knowledge of the Flynn surveillance apparently surprised Sally Yates during the January 5 meeting.

Obama personally had warned the Trump administration against hiring Flynn, and made clear he was “not a fan,” according to multiple officials. Obama had fired Flynn as head of the Defense Intelligence Agency in 2014; Obama cited insubordination, while Flynn asserted he was pushed out for his aggressive stance on combating Islamic extremism.

On January 5, 2017, Yates attended an Oval Office meeting with Comey, then-Vice President Joe Biden, Brennan and Clapper, according to the newly declassified documents, including an FD-302 FBI witness report. They were discussing Russian election interference, along with Rice and other members of the national security council.

After the briefing, Obama asked Yates and Comey to “stay behind,” and said he had “learned of the information about Flynn” and his conversation with Russia’s ambassador about sanctions. Obama “specified that he did not want any additional information on the matter, but was seeking information on whether the White House should be treating Flynn any differently, given the information.” -Fox News

Obama and Biden, meanwhile, get a pass.

end

What nonsense!

(zerohedge)

House Dems Tell Supreme Court That They Are Preparing For A New Impeachment

Authored by Jonathan Turley,

On Monday, the House Democrats filed a brief that with the Supreme Court that the House was actively pursuing new articles of impeachment against President Donald Trump including “the possible exercise of improper political influence over recent decisions made in the Roger Stone and Michael Flynn prosecutions, both of which were initiated by the special counsel.”

The argument is meant to justify the continued demand for redacted grand-jury material from the now closed Special Counsel investigation into the Russian collusion investigation.

I have long supported the congressional demands for documents withheld by the Trump Administration as well as witnesses, including in my testimony during the House impeachment.  The ability to acquire grand jury material turns on whether an impeachment is a “judicial proceeding” under Federal Rule of Criminal Procedure 6 (e).  The district court and the court of appeals ruled that it does and that the House is entitled to the material. However, the House is arguing that this request is not moot after the acquittal of President Trump at the Senate impeachment trial.

Thus, the House is arguing that

“The [House Judiciary] Committee’s investigation did not cease with the conclusion of the impeachment trial. … The withheld material remains central to the Committee’s ongoing investigation into the President’s conduct. If this material reveals new evidence supporting the conclusion that President Trump committed impeachable offenses that are not covered by the articles adopted by the House, the committee will proceed accordingly — including, if necessary, by considering whether to recommend new articles of impeachment.”

The House specified its continuing impeachment inquiry:

“The Committee’s investigation continues today and has further developed in light of recent events. For example, the Committee is investigating the possible exercise of improper political influence over recent decisions made in the RogerStone and Michael Flynn prosecutions, both of which were initiated by the SpecialCounsel.

See Letter from Jerrold Nadler, Chairman, H. Comm. on the Judiciary, et al. to Michael E. Horowitz, Inspector General, U.S. Dep’t of Justice (May 8, 2020),https://perma.cc/799D-2PNY. The Committee has announced its intention to hold a hearing with the Attorney General—who has failed to appear before the Committee at any point on any topic during his tenure—on these issues as soon as possible.”

The inclusion of the Stone and Flynn cases blurs the line between what is an oversight and an impeachment interest.  It is hard to see a credible impeachment claim arising out of either case.  The Stone case involves a change in a sentencing recommendation while Flynn involves a motion to dismiss the case entirely.

However, both cases garnered criticism long before the actions of the Justice Department and fall squarely within the area of prosecutorial discretion.  While the House has strong claims to evidence sought by committees, its claim of a perpetual impeachment are forced and artificial. 

It also raises the uncomfortable prospect for the Court of a claim of impeachment authority to trump executive privileges and challenges.  The position of the House seems to be that we are able to claim the ultimate level of deference in such demands simply because we say that we have seeking a possible impeachment.

This concern is magnified by the position of Speaker Nancy Pelosi, in long refusing an impeachment vote, that she could unilaterally trigger such powers in a simple press conference.

I have previously criticized the House for its slipshod and abbreviated impeachmentprocess.  That record could become more relevant in this litigation where justices may generally support the right of the House to such evidence but remain skeptical of the fluid use of impeachment to justify such demands.

Here is the House filing to the Supreme Court…

END

We now have the evidence of a Quid Pro Quo between Joe Biden and the Ukraine government ….fire Burisma prosecutor and you get 1 billion dollars.  The leaked phone call gives details of the event..

(zerohedge)

Phone Calls Between Biden And Ukraine’s Poroshenko Leaked; Details $1 Billion “Quid Pro Quo” To Fire Burisma Prosecutor

Leaked phone calls between Joe Biden and former Ukrainian President Petro Poroshenko explicitly detail the quid-pro-quo arrangement to fire former Ukrainian Prosecutor General Victor Shokin – who Poroshenko admits did nothing wrong – in exchange for $1 billion in US loan guarantees (which Biden openly bragged about in January, 2018).

Shokin was notably investigating Burisma, the Ukrainian energy company that hired Biden’s son, Hunter, to sit on its board. Shokin had opened a case against Burisma’s founder, Mykola Zlochevsky, who granted Burisma permits to drill for oil and gas in Ukraine while he was Minister of Ecology and Natural Resources. In January, 2019, Shokin stated in a deposition that there were five criminal cases against Zlochevesky, including money laundering, corruption, illegal funds transfers, and profiteering through shell corporations while he was a sitting minister.

 

Viktor Shokin

The leaked calls begin on December 3, 2015, when former Secretary of State John Kerry starts laying out the case to fire Shokin – who he says “blocked the cleanup of the Prosecutor Generals’ Office,” and sated that Biden “is very concerned about it,” to which Poroshenko replies that the newly reorganized prosecutor general’s office (NABU) won’t be able to pursue corruption charges, and that it may be difficult to fire Shokin without cause.

Later in the leaked audio on February 18, 2016 – less than three months after the Kerry conversation – Poroshenko delivers some “positive news.”

“Yesterday I met with General Prosecutor Shokin,” says Poroshenko. And despite of the fact that we didn’t have any corruption charges, we don’t have any information about him doing something wrong, I specially asked him – no, it was day before yesterday – I specially asked him to resign. In, uh, as his, uh, position as a state person. And despite of the fact that he has a support in the power. And as a finish of my meeting with him, he promised to give me the statement on resignation. And one hour ago he bring me the written statement of his resignation. And this is my second step for keeping my promises.

To which Biden replied: “I agree.”

Four weeks later on March 22, 2016, Biden says “Tell me that there is a new government and a new Prosecutor General. I am prepared to do a public signing of the commitment for the billion dollars.

Poroshenko tells Biden that one of the leading candidates is the man who replaced Shokin, Yuriy Lutsenko who later said in a deposition that Hunter Biden and his business partners were receiving millions of dollars in compensation from Burisma.

Then, on May 13, 2016, Biden congratulates Poroshenko on “getting the new Prosecutor General,” saying that it will be “critical for him to work quickly to repair the damage Shokin did.”

And I’m a man of my word,” Biden adds. “And now that the new Prosecutor General is in place,we’re ready to move forward to signing that one billion dollar loan guarantee.”

Poroshenko thanks Biden for the support, and says that it was a “very tough challenge and a very difficult job.”

Shokin, meanwhile, filed a criminal complaint against Biden in Kiev this February, in which he writes:

During the period 2014-2016, the Prosecutor General’s Office of Ukraine was conducting a preliminary investigation into a series of serious crimes committed by the former Minister of Ecology of Ukraine Mykola Zlotchevsky and by the managers of the company “Burisma Holding Limited “(Cyprus), the board of directors of which included, among others, Hunter Biden, son of Joseph Biden, then vice-president of the United States of America.

The investigation into the above-mentioned crimes was carried out in strict accordance with Criminal Law and was under my personal control as the Prosecutor General of Ukraine.

Owing to my firm position on the above-mentioned cases regarding their prompt and objective investigation, which should have resulted in the arrest and the indictment of the guilty parties, Joseph Biden developed a firmly hostile attitude towards me which led him to express in private conversations with senior Ukrainian officials, as well as in his public speeches, a categorical request for my immediate dismissal from the post of Attorney General of Ukraine in exchange for the sum of US $ 1 billion in as a financial guarantee from the United States for the benefit of Ukraine.

* * *

And now we have the audio that shows how the deed was orchestrated.

end

 

In Flynn Case, Judge Sullivan’s Gross Overreach Turns Justice Into Mob-Rule

Authored by Jonathan Turley, op-ed via USA Today,

The case of former national security adviser Michael Flynn is rapidly moving from the dubious to the preposterous. U.S. District Judge Emmet Sullivan is being widely applauded for resisting the dismissal of a case that the Department of Justice insists cannot be ethically maintained.

Faced with no dispute between the parties, Sullivan decided to create a contested case by inviting in third parties to create a conflict and now is suggesting that he may substitute his own criminal charge rather than let Flynn walk free. In the past, I have publicly praised Sullivan. However, this is fast becoming a case of gross judicial overreach as the court appears to assume both judicial and executive powers. Sullivan can disagree with the exercise of prosecutorial discretion, but he cannot substitute his own judgment for it.

“At the appropriate time, the court will enter a scheduling order governing the submission of any amicus curiae briefs,” Sullivan wrote. Never has a more innocuous line left a more ominous meaning. After that order, the judge proceeded to appoint retired Judge John Gleeson to argue against dismissal in the absence of a dispute between the parties. He is effectively outsourcing the argument to introduce a dispute. This move is nothing to celebrate.

A punishment by plebiscite

Amicus briefs are allowed by courts when outside parties want to be heard on some contested issue facing a court. Such filings are common in civil cases. This, however, is a criminal case. There are serious questions about the propriety of such third parties being asked to brief uncontested motions in a criminal case. The lives and liberty of individuals generally are protected from public demands for punishment. We do not do punishment by plebiscite in this country.

While courts have discretion to grant amicus or third-party arguments in civil cases, there is no counterpart under the Federal Rules of Criminal Procedure. In fact, Judge Sullivan rejected such a request on Dec. 20, 2017, stating that “the Federal Rules of Criminal Procedure do not provide for intervention by third parties in criminal cases. … Options exist for a private citizen to express his views about matters of public interest, but the court’s docket is not an available option.”

Sullivan’s earlier order was the correct one. It is dangerous to open up criminal cases for citizens to argue for convictions or enhanced punishments, particularly when prosecutors seek dismissal in light of prosecutorial error or abuse.

Indeed, former President Bill Clinton’s attorney general, Janet Reno, warned Congress against courts intruding on Justice Department decisions, stressing that “our Founders believed that the enormity of the prosecutorial power — and all the decisions about who, what, and whether to prosecute — should be vested in one who is responsible to the people.”

That is particularly the case where the motion benefits a criminal defendant. Indeed, it is difficult to imagine any basis that Sullivan could deny this motion without facing a rapid reversal.

However, the Flynn case has proved to be the defining temptation for many in discarding constitutional protections and values in their crusade against President Donald Trump. Experts are asking a court to consider sending a man to prison after the Justice Department concluded it can no longer stand behind his prosecution. Under this same logic, any defendant could face public outrage over an unopposed motion to dismiss, and a court could invite third parties to make arguments against him. Rather than protecting an unpopular criminal defendant from those outside clamoring for his head, the court is inviting them inside to replace the prosecutors.

Judges are not prosecutors

If Sullivan’s invitation for third parties to argue in a criminal case is unnerving, his suggestion that he might substitute a perjury charge is positively terrifying. Sullivan has compounded this judicial overreach by asking Gleeson to explore the issue, despite his public criticism of the administration’s handling of the Flynn case.

Under Sullivan’s theory, any time a defendant seeks such a dismissal (even with the support of the prosecutors) he could face a judicially mandated perjury charge. Faced with evidence of prosecutorial wrongdoing (which often arises after a trial), defense counsel (like myself) would have to warn clients that the court might just swap one crime for another.

The chilling implications of such a theory are being brushed aside by those eager to see Sullivan mete out his own form of justice. However, such an unsustainable decision would quickly careen out of control. 

Consider the scenario. Sullivan knows that such a charge would not be prosecuted by the Justice Department. However, Criminal Procedure Rule 42 states that such cases are to be prosecuted by the government, but “if the government declines the request, the court must appoint another attorney to prosecute the contempt.”

So what is Sullivan going to do? He cannot force the Justice Department to prosecute a case that it considers to be unethical. He would have to enlist his own outside prosecutor after creating his own dispute with outside parties. If Flynn is convicted, Sullivan will have to order the Bureau of Prisons to incarcerate someone who was convicted by judicial design.

Sullivan made a mess of Flynn’s case

Ironically, Sullivan is largely responsible for the current posture of the case. Flynn was supposed to be sentenced in December 2018 before the hearing took a bizarre turn. Using the flag in the courtroom as a prop, Sullivan incorrectly accused Flynn of being “an unregistered agent of a foreign country while serving as the national security adviser to the president of the United States. Arguably, that undermines everything this flag over here stands for. Arguably, you sold your country out.” He then questioned whether Flynn should have been charged with treason.

Flynn faced a relatively minor single count of false statements with the likelihood of no jail time — but Sullivan was suggesting that he could have been charged with treason, subject to the death penalty.

Sullivan then gave Flynn a menacing choice: “I cannot assure you that if you proceed today, you will not receive a sentence of incarceration. … I’m not hiding my disgust, my disdain.”

Flynn, unsurprisingly, opted to wait. Had Sullivan simply sentenced him, Flynn would have been formally convicted and sentenced — making any later motion more difficult while the case was on appeal.

Fortunately, while H. L. Mencken once described a judge as “a law student who marks his own examination papers,” our system allows for appellate review, and few judges would give such decisions a passing grade. The fact is, such a judicially constructed case would be effectively dead before it could be properly captioned for docketing. The problem is that Flynn would be left twisting in the wind as others use his case to make extraneous points.

Michael Flynn has the curse of being useful. He was useful to investigate for officials like FBI special agent Peter Strzok, former FBI Deputy Director Andrew McCabe and former FBI Director James Comey, though investigators found no underlying criminal conduct. He was useful to special counsel Robert Mueller, even though the same investigators apparently did not believe he intentionally lied to them. He now is useful to a court that seems intent on staging a criminal case of its own making.

Of course, at some point, when Flynn stops being so useful, justice might be served with the dismissal of this abusive case.

end

Declassified Rice Email Confirms Obama, Biden And Comey Targeted Flynn

A newly declassified version of an email that former National Security Adviser Susan Rice sent to herself confirms that President Obama, VP Joe Biden and former FBI Director James Comey were actively targeting Michael Flynn over his discussions with former Russian Ambassador Sergey Kislyak.

According to The Federalist, “In the email, portions of which were not declassified until recently, Rice recorded that Flynn, who at the time was the incoming national security adviser for Trump, was personally discussed and targeted during the meeting with Obama.”

“Comey said he does have some concerns that incoming NSA Flynn is speaking frequently with Russian Ambassador Kislyak,” Rice wrote too herself in a now-declassified portion of the letter, adding “Comey said that could be an issue as it relates to sharing sensitive information.”

“President Obama asked if Comey was saying the NSC should not pass sensitive information related to Russia to Flynn,” the email continues. “Comey replied ‘potentially.'”

“[Comey] added that he has no indication thus far that Flynn has passed classified information to Kislyak, but he noted that ‘the level of communication is unusual,'” Rice wrote – which The Federalist points out does not explain how it would be “unusual” for an incoming national security adviser to hold discussions with foreign leaders prior to the inauguration.

Many observers believe the calls between Flynn and Kislyak were little more than pretext to hide the Obama administration’s spy campaign against Trump from the newly elected president’s team and to justify a continued inquisition against Flynn.

The newly declassified portions of the Jan. 5 Rice email confirm that the targeting of Flynn was coordinated within the inner sanctum of the White House and that both Obama and Biden were deeply involved in the campaign to take down Flynn. –The Federalist

Meanwhile, the FBI tried to close the Flynn investigation on January 4, when agent Peter Strzok insisted it continue. Handwritten notes from an FBI agent tasked with investigating Flynn reveal that they were targeting Flynn in early 2017 with the intent of prosecuting him or getting him fired.

The DOJ recently filed to dismiss all charges against Flynn in light of the recently revealed FBI abuse, however the judge in the case has stonewalled the request – and is now allowing third parties to weigh in on Flynn’s case.

Read the declassified letter below:

END

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

Moderna Inc said on Monday its experimental COVID-19 vaccine produced antibodies that could “neutralize” the new coronavirus in patients in a small early stage clinical trial, sending its shares up 25%.  The levels of the antibodies were similar to those in blood samples of people who have recovered from COVID-19, early results from the study conducted by the National Institutes of Health showed…

https://www.foxbusiness.com/markets/moderna-experimental-coronavirus-vaccine-early-stage-study

The panic rally on Monday was due to results from only 8 trial participants!?!?!

Moderna press release: At this time, neutralizing antibody data are available only for the first four participants in each of the 25 µg and 100 µg dose level cohorts. Consistent with the binding antibody data, mRNA-1273 vaccination elicited neutralizing antibodies in all eight of these participants, as measured by plaque reduction neutralization (PRNT) assays against live SARS-CoV-2. The levels of neutralizing antibodies at day 43 were at or above levels generally seen in convalescent sera…

https://investors.modernatx.com/news-releases/news-release-details/moderna-announces-positive-interim-phase-1-data-its-mrna-vaccine

Moderna’s coronavirus vaccine just showed signs of success in a preliminary study, raising early hopes in the fight against the pandemic – This trial enrolled 45 healthy volunteers to start, ages 18 to 55 years old, and randomly gave one of three dose strengths for two shots: 25 micrograms, 100 micrograms, and 250 micrograms.  All participants developed detectable antibodies, and Moderna said there were “dose dependent increases in immunogenicity” across the three potencies…

https://www.businessinsider.com/moderna-coronavirus-vaccine-releases-first-human-trial-results-2020-5

The Moderna vaccine news generated manic short covering and panic buying on Monday.  ESMs and stocks peaked at the European close.  The NY FANG+ Index was up 2.77% at the European close, which was substantially less than the major equity indices.  After a modest retreat that lasted about 1.5 hours, ESMs and stocks rallied when the afternoon arrived.  This rally leg lasted an hour.

In the afternoon, the S&P 500 Index hit a new high at +3.4%; the DJIA registered +3.96%.  However, the NY FANG+ Index posted only a 2.5% gain, which was below its European close high.  This is evidence of short covering because traders and investors are over-invested in FANGs and related trading sardines.

The last-hour manipulation pushed major indices to new session highs; but the NY FANG+ Index did not hit a new session high.  During the final 10 minutes of trading, stocks declined sharply on trader selling.

De Blasio: Swimmers at New York City beaches will be “taken right out of the water” http://hill.cm/zs3h2gg

 

National Poll: 40% of Families More Likely to Homeschool after Lockdowns End

https://www.federationforchildren.org/national-poll-40-of-families-more-likely-to-homeschool-after-lockdowns-end/

 

Arizona restaurant chain struggles to fill staff as unemployment claims soar

Cano said it’s because of the federal CARES act, which adds $600 weekly on top of the state’s unemployment check. Cano said her furloughed employees told her they make more money from staying at home than they do from working at her restaurant.  “They don’t want to come back to work,” said Cano. “It’s the unemployment. They’re receiving about $840 a week, which puts them about $22 an hour.”

https://www.azfamily.com/news/continuing_coverage/coronavirus_coverage/businesses_hiring/arizona-restaurant-chain-struggles-to-fill-staff-as-unemployment-claims-soar/article_ddf870b6-98b9-11ea-ae33-dbb5ebc5dc06.html

 

At a press conference on Monday, Attorney General Barr stated, “What happened to the president in the 2016 election and throughout the first two years of his administration was abhorrent. It was a grave injustice and it was unprecedented in American history… The law enforcement and intelligence apparatus were involved in advancing a false and utterly baseless Russian collusion narrative against the president.  The proper investigative and prosecutive standards of the Department of Justice were abused…We saw two different standards of justice emerge: one that applied to President Trump and his associates, and the other that applied to everyone else.  We can’t allow this to ever happen again… The Durham investigation is trying to get to the bottom of what happened… Those who broke the laws will be held to account…”  https://twitter.com/Breaking911/status/1262433909721178115

 

The MSM ignored most of Barr’s comments but highlighted Barr’s assertion that based on what he knows now, he does not EXPECT Durham’s probe to lead to a criminal investigation of Obama or Biden.  Barr added, “Our concern over potential criminality is focused on others.

 

Barr says he does not “expect” that the ongoing review of the Trump-Russia probe will lead to a criminal investigation of Barack Obama or Joe Biden: “Our concern over potential criminality is focused on others”   https://cbsnews.com/news/pensacola

 

Trump accuses Barr of double standard for saying it’s unlikely DOJ will prosecute Obama, Biden

“I think it’s just a continuation of a double standard. I’m surprised by it,” Trump said, referring to Barr’s remarks…  https://www.cnbc.com/2020/05/18/obama-biden-criminal-investigation-unlikely-attorney-general-barr-says.html

 

House Dems made Barr look like a naïve idealist as they petitioned the SCOTUS for grand jury testimony so they could impeach Trump again.  In other words, the coup against Trump is still ongoing.

 

Dems tell Supreme Court of ‘ongoing’ new impeachment inquiry in effort to obtain Mueller materials   https://www.foxnews.com/politics/dems-cite-ongoing-new-impeachment-inquiry-in-effort-to-obtain-mueller-materials

 

The Treasury Department Spied on Flynn, Manafort, and the Trump Family, Says Whistleblower

By March 2016, the whistleblower said she and a colleague, who was detailed to Treasury from the intelligence community, became convinced that the surveillance of Flynn was not tied to legitimate criminal or national security concerns, but was straight-up political surveillance among other illegal activity occurring at Treasury…“It wasn’t just him,” the whistleblower said. “They were targeting other U.S. citizens, as well.”… In March 2017, she filed a formal whistleblower complaint with Acting Treasury Inspector General Richard K. Delmar, who continues in that office today, she said. Beyond Delmar acknowledging receipt of the complaint, the inspector general never followed up on the matter

https://theohiostar.com/2020/05/18/exclusive-the-treasury-department-spied-on-flynn-manafort-and-the-trump-family-says-whistleblower/

 

Ousted Watchdog [State Dept. IG] Was Probing Pompeo Over Use of Aide to Walk Dog

  • Linick fourth inspector general removed by Trump since April
  • Romney calls moves ‘unprecedented’ as Democrats plan inquiry

https://www.bloomberg.com/news/articles/2020-05-18/trump-ouster-of-state-official-stirs-fear-of-war-on-watchdogs

 

@ChadPergram: Hse Foreign Affairs Cmte Chair Engel asked outgoing State Dept Linick to in investigate whether Trump established a fake emergency in order to send arms to Saudi Arabia

 

State Department Inspector General Is Fired, Was Investigated for Mishandling Sensitive Information      https://dailycaller.com/2020/05/15/steve-linick-inspector-general-fired/

 

President Trump said Secretary of State Michael Pompeo asked him to fire the State Department’s inspector general and he was “happy to do it”  https://trib.al/OrV8aWE

 

The Silencing of the Inspectors General

In 2014, 47 of the nation’s 73 inspectors general signed a letter alleging that Obama had stonewalled their “ability to conduct our work thoroughly, independently, and in a timely manner.”  The frustrated nonpartisan auditors cited systematic Obama-administration refusals to turn over incriminating documents that were central to their investigations.

    The administration had purportedly tried to sidetrack an IG investigation into possible misconduct by then–Sacramento mayor Kevin Johnson. In addition, the Obama administration reportedly thwarted IG investigations of Amtrak, the Environmental Protection Agency, the Troubled Asset Relief Program, and the Office of Management and Budget… [Do you remember the MSM outrage at this?]

https://www.nationalreview.com/2018/06/obama-administration-stonewalled-inspectors-general/

 

PS – When Hillary was Secretary of State, Obama did NOT appoint an IG for the State Department.

 

@realDonaldTrump: So the so-called HHS Whistleblower was against HYDROXYCHLOROQUINE. Then why did he make, and sign, an emergency use authorization? @NorahODonnell said, “He shared his concerns with a reporter.” In other words, he LEAKED. A dumb @60Minutes hit job on a grandstanding Never Trumper!

Well that is all for today

I will see you WEDNESDAY night.

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