MAY 20//GOLD UP ANOTHER $7.20 TO $1749.20//SILVER UP 11 CENTS TO $17.52.//SILVER PREMIUM O FUTURES/SPOT RISES TO 51 CENTS//GOLD TONNAGE STANDING AT THE COME 32.2 TONNES OF GOLD///CORONAVIRUS UPDATES FROM AROUND THE GLOBE//TRUMP’S WAR OF WORDS WITH CHINA WITH RESPECT TO THE ORIGINS OF THE VIRUS ESCALATE!!//TRUMP THREATENS TO DE LIST ALL CHINESE COMPANIES FROM NYSE/NASDAQ////MORE SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1749.60  UP $7.20   The quote is London spot price

 

 

 

 

 

Silver:$17.52  UP 11 CENTS (London spot closing price

 

Closing access prices:  London spot

 

 

i)Gold : $1747.50  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.56//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

MAY COMEX GOLD:  XXX

 

JUNE GOLD:  $1751.20  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $1.60.//PREMIUMS WENT UP AGAIN

 

CLOSING SILVER FUTURE MONTH

 

SILVER JUNE COMEX CLOSE;   $17.99…1:30 PM.//SPREAD SPOT/(LONDON) VS FUTURE JUNE:  47 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:  22/303

issued 200

EXCHANGE: COMEX
CONTRACT: MAY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,744.200000000 USD
INTENT DATE: 05/19/2020 DELIVERY DATE: 05/21/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 1
118 H MACQUARIE FUT 130
132 C SG AMERICAS 1
323 H HSBC 1
657 C MORGAN STANLEY 18
657 H MORGAN STANLEY 18
661 C JP MORGAN 200 22
686 C INTL FCSTONE 2
690 C ABN AMRO 57 82
737 C ADVANTAGE 24 34
800 C MAREX SPEC 4 8
905 C ADM 4
____________________________________________________________________________________________

TOTAL: 303 303
MONTH TO DATE: 9,809

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 303 NOTICE(S) FOR 30300 OZ (0.9424 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  9809 NOTICES FOR 980,900 OZ  (30.51 TONNES)

 

 

SILVER

 

FOR MAY

 

 

38 NOTICE(S) FILED TODAY FOR  190,000  OZ/

total number of notices filed so far this month: 8908 for 44,540,000 oz

 

BITCOIN MORNING QUOTE  $9752 DOWN 24 

 

BITCOIN AFTERNOON QUOTE.: $9515 DOWN 258

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $7.20 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD:

 

A PAPER WITHDRAWAL OF 1.46 TONNES FROM THE GLD//????

 

 

GLD: 1,112.78 TONNES OF GOLD//

 

 

WITH SILVER UP  11 CENTS TODAY: AND WITH NO SILVER AROUND

 

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/// A PAPER DEPOSIT OF 9.601 MILLION OZ INTO THE SLV/

RESTING SLV INVENTORY TONIGHT:

SLV: 449.758  MILLION OZ./

 

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE  BY A STRONG SIZED 3912 CONTRACTS FROM 147,978 UP TO 151,890 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH  OUR VERY STRONG 29 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 4468 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: 453  AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  453 CONTRACTS. WITH THE TRANSFER OF 453 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 453 EFP CONTRACTS TRANSLATES INTO 2.265 MILLION OZ  ACCOMPANYING:

1.THE 29 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

45.370 MILLION OZ INITIALLY STANDING FOR MAY

 

TUESDAY, 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 29 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 4365 CONTRACTS OR 21.825 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:

10,248 CONTRACTS (FOR 14 TRADING DAYS TOTAL 10,248 CONTRACTS) OR 51.24 MILLION OZ: (AVERAGE PER DAY: 732 CONTRACTS OR 3.660 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 51.24 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 7.32% 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:          1,040.08 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:                   51.24 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 3912, WITH OUR STRONG 29 CENT GAIN IN SILVER PRICING AT THE COMEX ///TUESDAY THE CME NOTIFIED US THAT WE HAD A TINY SIZED EFP ISSUANCE OF 453 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:  4365 CONTRACTS (WITH OUR 29 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 453 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED INCREASE OF 3912 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A HUGE 29 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.41 // TUESDAY’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: 38 NOTICE(S) FOR  190,000 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  45.370 MILLION OZ
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A CONSIDERABLE SIZED 4021 CONTRACTS TO 528,205 AND CLOSER TO OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE CONSIDERABLE SIZED GAIN OF COMEX OI OCCURRED WITH OUR STRONG COMEX GAIN IN PRICE  OF $10.60 /// COMEX GOLD TRADING// TUESDAY// WE  HAD STRONG BANKER SHORT COVERING , A TINY SIZED DECREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A  GOOD  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR LARGE GAIN IN THE PAPER PRICE OF GOLD.

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

 

WE GAINED A GOOD SIZED 6028 CONTRACTS  (18.74 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 2007 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 0. MAY: 0, AND JUNE 2007.; AUG 0 AND ALL OTHER MONTHS ZERO//TOTAL: 2007.  The NEW COMEX OI for the gold complex rests at 528,205. 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 6028 CONTRACTS: 4021 CONTRACTS INCREASED AT THE COMEX AND 2007 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6028 CONTRACTS OR 18.74 TONNES. TUESDAY, WE HAD A GAIN OF $10.60 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A VERY STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 18.74 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $10.60).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  (2007) ACCOMPANYING THE CONSIDERABLE SIZED GAIN IN COMEX OI  (4454 OI): TOTAL GAIN IN THE TWO EXCHANGES:  6028 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)A TINY DECREASE IN OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT MAY MONTH,  3) ZERO LONG LIQUIDATION; 4) CONSIDERABLE COMEX OI GAIN,  AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//TUESDAY

 

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 : 42,821 CONTRACTS OR 4,282,100 oz OR 133.19 TONNES (14 TRADING DAYS AND THUS AVERAGING: 3058 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 14 TRADING DAY(S) IN  TONNES: 133.19 TONNES

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

THUS EFP TRANSFERS REPRESENTS 133.19/3550 x 100% TONNES =3.75% 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   2699.54  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:                     133.19 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 3912 CONTRACTS FROM 147,978 UP TO 151,890 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 SMALL 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 453 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: 453 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 453 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 3912 CONTRACTS TO THE 453 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  STRONG GAIN OF 4365 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 21.825 MILLION  OZ!!! OCCURRED WITH THE 29 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 29 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// MONDAY. WE ALSO HAD A SMALL SIZED 453 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)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 14.84 POINTS OR 0.51%  //Hang Sang CLOSED UP 11.82 POINTS OR 0.05%   /The Nikkei closed UP 161.70 POINTS OR 0.79%//Australia’s all ordinaires CLOSED UP .38%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1016 /Oil UP TO 32.64 dollars per barrel for WTI and 35.54 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1016 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1108 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A CONSIDERABLE SIZED 4021 CONTRACTS TO 528,205 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 GOOD COMEX OI GAIN WAS SET WITH OUR STRONG GAIN OF $10.60 IN GOLD PRICING /TUESDAY’S COMEX TRADING//). WE ALSO HAD A FAIR EFP ISSUANCE (2007 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 6028 CONTRACTS.

WE AGAIN HAD 0    4 -GC VOLUME//open interest remains at 10

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF APRIL..  THE CME REPORTS THAT THE BANKERS ISSUED A FAIR 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 : 2007 AND 0 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2007 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:  6,028 TOTAL CONTRACTS IN THAT 2007 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED 4021 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A GOOD AMOUNT OF EXCHANGE FOR PHYSICALS WITH CONSIDERABLE BANKER SHORT COVERING, ACCOMPANYING A STRONG INCREASE IN COMEX GOLD TONNAGE  // STANDING FOR DELIVERY (SEE CALCULATIONS BELOW)….AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A CONSIDERABLE RISE IN PRICE

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE BY $10.60)AND, THEY WERE  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A CONSIDERABLE 18.74 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 6028 CONTRACTS OR 602800 OZ OR 18.74 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:  528,205 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 52.82 MILLION OZ/32,150 OZ PER TONNE =  1642 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1642/2200 OR 74.68% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 202,514 contracts//volume very low

CONFIRMED COMEX VOL. FOR YESTERDAY217,968 contracts// volumes very low

MAY 20 /2020

MAY GOLD CONTRACT MONTH

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz 8,115,743.600 oz

Brinks

Manfra

incl 3,000 kilobars

 

and 600 kilobars

 

 

 

Deposits to the Customer Inventory, in oz  

153,473.208

OZ

BRINKS

HSBC

(includes 1000 kilobars)

Loomis

includes 25 kilobars

 

Malca

includes 2750

kilobars

 

 

 

No of oz served (contracts) today
303 notice(s)
 30300 OZ
(0.9424 TONNES)
No of oz to be served (notices)
513 contracts
(51300 oz)
1.59 TONNES
Total monthly oz gold served (contracts) so far this month
9809 notices
980,900 OZ
30.51 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 2 deposits into the dealer

I) Into Brinks: 96,453.000 oz Brinks  (3,000 kilobars)

ii)Into Manfra:  19,290.000 oz  (600 kilobars)

 

 

 

total dealer deposits: 115,743.600   oz  3,600 kilobars)

total dealer withdrawals: nil oz

we had 4 deposits into the customer account

i) Loomis:  803.75 oz  25 kilobars

ii) Brinks: 32,103,208 oz

iii) HSBC: 32,151.000 oz (1,000 kilobars)

iv) Malca:  88,415.250 oz  (2750 kilobars

 

total kilobar entries: 3775 kilobars

 

 

 

 

 

 

 

 

 

total deposits: 153,473.208    oz

 

 

we had 0 gold withdrawals from the customer account:

 

 

 

 

 

 

 

 

total gold withdrawals;  nil   oz

We had 7  kilobar transactions  +

 

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

 

 

 

 

ADJUSTMENTS: 2 //    

 

customer to dealer account

From HSBC   96,453.000  oz 3,000 kilobars

From Scotia: 3217.850 oz  (999 kilobars)

 

 

 

 

 

 

 

The front month of May registered a LARGE total of 816 oi contracts for a LOSS of 170 contracts. We had 134 notices filed upon yesterday so we LOST 36 contracts or an additional 3600 oz will not stand as these guys  morphed into London based forwards and thus accepted a fiat bonus for their effort.

The next delivery month after May is the huge delivery month of June.  Here June saw a LOSS OF 7891 contracts DOWN to 240,254 contracts. July had a GAIN of 71 OI contracts  and thus 479 contracts  outstanding.  Next comes August another strong delivery month and here the OI ROSE by 9419 contracts up to 181,583 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 303 notices filed today for 30,300 oz

 

FOR THE  MAY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 200 notices were issued from their client or customer account. The total of all issuance by all participants equates to 303 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 22 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 (9809) x 100 oz , to which we add the difference between the open interest for the front month of  May. (616 CONTRACTS ) minus the number of notices served upon today (303 x 100 oz per contract) equals 1,032,200 OZ OR 32.105 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 (9809)x 100 oz + (816 OI) for the front month minus the number of notices served upon today (303) x 100 oz which equals 1,032,200 oz standing OR 32.105 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 234.69 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 32.105 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  8,091,183.659 oz or 251.67  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: 7,545,258.2  (234.69 tonnes)
true registered gold  (total registered – pledged tonnes  7,545,258.2 (234.69 tonnes)
total eligible gold:  16,159,837.550 oz (502.64 tonnes)

total registered, pledged  and eligible (customer) gold;   24,251,021.239 oz 754.31 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   128.632 tonnes

total gold net of 4 GC:  625.68 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 20/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A STRONG SIZED 3912 CONTRACTS FROM 147,978 UP TO 151,890(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 29 CENT GAIN IN PRICING//TUESDAY. WE GAINED A TOTAL OF 4468 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 29 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MAY

THE FRONT DELIVERY OF MAY SAW  204 OPEN INTEREST CONTRACTS STANDING  AND THUS WE HAD A LOSS OF 11 CONTRACTS.  We had 9 notices filed yesterday so we LOST 2 contracts or an additional 10,000 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 5 CONTRACTS RESTING AT 424.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI GAINED 2585 CONTRACTS UP TO 116,185 CONTRACTS

 

 

We, today, had  38 notice(s) FILED  for 190,000 OZ for the APRIL, 2019 COMEX contract for silver

 

MAY 20/2020

MAY SILVER COMEX CONTRACT MONTH

 

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 624,736.710 oz
CNT
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1000.000 oz
Loomis
exact weight
No of oz served today (contracts)
38
CONTRACT(S)
(190,000 OZ)
No of oz to be served (notices)
166 contracts
 830,000 oz)
Total monthly oz silver served (contracts)  8908 contracts

44,540,000 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 Loomis; 1000.000?????  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: 1000.000    oz

we had 2 withdrawals:

 

i) Out of CNT:  619,736.710 oz

ii) Out of Delaware: 5,000 .00000 oz ?? exact weight??

 

 

total withdrawals; 624,736.710    oz

We had 0 adjustments

 

 

total dealer silver: 91.192 million

total dealer + customer silver:  311.721 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the MAY 2020. contract month is represented by 38 contract(s) FOR 190,000 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 8908 x 5,000 oz = 44,540,000 oz to which we add the difference between the open interest for the front month of MAY.(204) and the number of notices served upon today 38 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 8908 (notices served so far) x 5000 oz + OI for front month of MAY (204)- number of notices served upon today (38) x 5000 oz of silver standing for the MAY contract month.equals 45,370,000 oz.

We LOST 2 or an additional 10,000 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: 62,475 CONTRACTS //volume very high

 

 

FOR YESTERDAY: 74,101 CONTRACTS..,CONFIRMED VOLUME//

 

 

YESTERDAY’S CONFIRMED VOLUME OF 74,101  CONTRACTS EQUATES to 370 million  OZ 52.9% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  FALLS TO- 0.78% ((MAY 19/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO +0.01% to NAV:   (MAY 19/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.78%

(courtesy Sprott/GATA

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

NAV 16.56 TRADING 16.51///NEGATIVE 0.30

END

 

 

And now the Gold inventory at the GLD/

MAY 20/WITH GOLD UP $7.20: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 1.46 TONNES FROM THE GLD////INVENTORY RESTS TONIGHT AT 1112.32 TONNES

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 20/ GLD INVENTORY 1112.32 tonnes*

LAST;  824 TRADING DAYS:   +166.01 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 724 TRADING DAYS://+341.16  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

MAY 20//WITH SILVER UP ANOTHER 11 CENTS TODAY: A HUGE CHANGE IN SLV INVENTORY: A HUGE PAPER DEPOSIT OF 9.601 MILLION OZ INTO THE SLV// //INVENTORY RESTS AT 449.758 MILLION OZ

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 20.2020:

SLV INVENTORY RESTS TONIGHT AT

449.758 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.87/ and libor 6 month duration 0.59

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

GOLD LENDING RATE: -2.28%

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

 

XXXXXXXX

12 Month MM GOFO
+ 2.13%

LIBOR FOR 12 MONTH DURATION: 0.72

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.41%

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

 

 

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

GoldCore

Gold Is The Best Performing Asset In 2020 YTD: +15% in USD, +18% in EUR and +23% in GBP


2020 Asset Performance Table  (Finviz)

  • Gold is 15% higher in dollars, 18% higher in euros and 23% higher in embattled sterling year to date.
  • Silver has underperformed gold and is only 1% higher year to date in dollars, 4% in euros and 9% higher in British pounds.
  • The gold silver ratio has fallen from 125 to 100 as silver starts to outperform gold again as it does in gold and silver bull markets. Silver remains very undervalued versus gold, versus property markets and versus risk assets in general.
  • Gold is now outperforming the 30 year US bond and is the best performing asset in 2020 year to date in all currencies. It is even outperforming the tech giants with the Nasdaq 100 only 6.8% higher year to date.
  • Stock markets have fallen sharply and risk assets in general including the tech monopolies and property markets are vulnerable as the global economy contracts massively.
  • Government bonds including U.S. Treasuries are also vulnerable given the strong possibility of a sovereign debt crisis in the increasingly bankrupt U.S. and increasingly bankrupt world.

-END-

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Venezuela  files a claim against the Bank of England for the 31 tonnes of gold stored in England.  England does not recognize Maduro as the rightful ruler and thus will not send the gold over to them.

(Reuters)

Venezuela files claim to force Bank of England to hand over gold

 Section: 

By Mayela Arms and Corina Pons
Reuters
Tuesday, May 19, 2020

CARACAS — Venezuela’s central bank has made a legal claim to try to force the Bank of England to hand over E930 million ($1.02 billion) of gold so President Nicolas Maduro’s government can fund its coronavirus response, according to the document submitted in a London court.

The claim follows a request Venezuela made to the Bank of England in April to sell part of its gold reserves there and send the proceeds to the United Nations to help with the country’s coronavirus-fighting efforts.

… 

The Bank of England declined to comment on the claim. The Venezuelan central bank did not respond to a request to comment.

Since 2018, the Bank of England has delayed the transfer of 31 tonnes of Venezuelan gold stored there to Maduro, who Britain does not recognize as the country’s legitimate leader. The bank offers gold custodian services to many developing nations. …

… For the remainder of the report:

https://www.reuters.com/article/us-venezuela-gold/venezuela-files-claim-…

end

A very important read.  Silver futures (June and July) are 50 cents higher than spot.  Why do we not have arbitrage.  The reason:  silver bought at the London spot is not real..nobody can turn in their certificate for metal and thus a purchaser of silver for May can deliver the silver in June and July

 

absolute crooks

(Craig Hemke)

Craig Hemke at Sprott Money: Spot / futures price disparity reappears, this time with silver

 Section: 

11:25p ET Tuesday, May 19, 2020

Dear Friend of GATA and Gold (and Silver):

While the big disparity between spot gold and near-term gold futures prices seems to have closed, the TF Metals Report’s Craig Hemke writes tonight at Sprott Money, a similar disparity has developed between spot silver and near-term silver futures prices.

These disparties, Hemke writes, signify a lack of confidence that metal is as available for immediate delivery as the “shills and apologists” for the fractional-reserve gold and silver banking system claim.

… 

Hemke writes: “Growing physical demand will stress the banks and their system to greater degrees, and the eventual collapse of this scheme will lead to a new pricing structure that is related to supply and demand of physical metal, not the supply and demand of digital derivatives.”

Hemke’s analysis is headlined “A Crisis of Confidence — Part 2” and it’s posted at Sprott Money here:

https://www.sprott

 

money.com/Blog/a-crisis-of-confidence-part-two-craig-h…

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

end

iii) Other physical stories:

 

https://www.jsmineset.com/2020/05/20/the-debt-dealers-already-know/

 

The Debt Dealers Already Know!

Posted May 20th, 2020 at 8:12 AM (CST) by J. Johnson & filed under General Editorial.

 

Great and Wonderful Wednesday Morning Folks,

 

We start our day off with more positive pricing in Gold than yesterday with the trade at $1,751.20 up $5.10 after hitting $1,757.60 with the low at $1,746.70. Silver just turned red in London with the trade at $17.85, down 6.1 cents after the push down to $17.755 and after Silver reached $18.155 which happened before London’s churn. The US Dollar doesn’t seem to be sticking to the “par” plan with the trade at 99.335, down 3.1 points after reaching down to 99.265 with the high at 99.57. Of course, all this happened already, before 5 am pst, the Comex open, the London close, and after 4 years of continual “failures to impeach,” making Trump the most impeached president ever, thus making him the most popular among the people! Heck, even the Treasury Dept was used and they failed too! No wonder the left needs mail in ballots, if they don’t there won’t be any votes for their side to count.

 

In Venezuela, Gold is now priced at 17,490.11 Bolivar showing a gain of 170.79 overnight with Silver at 178.277 Bolivar regaining all of yesterday’s pull and more (+3.845). In Argentina, Gold gained 1,354.37 more Peso’s with the price at 118,945.22. Silver’s price under the same fiat gained 28.19 more with the trade at 1,212.34 Peso’s. Over in Turkey, where trading is just about done, Gold is at 11,899.64 Lira, proving a gain of 123.25 with Silver trading at 121.293 regaining most but not all of yesterday’s currency push.

 

May Silver’s Delivery Demands now registers a 204 count up on the board and with a trading range between $18.04 and $18.025 with the last trade at the high for the 4 lot that is posted under the Volume already. Yesterday’s delivery activity happened between a trading range of $17.88 and $17.70 with the last trade at $17.86 with the adjusted close at $17.892 as 13 contracts swapped hands inside the delivery month. The short traders are piling on the promises to drop the price on Options Expiration Day as the Overall Open Interest shows a gain of 3,852 bringing the total “paper behind the price” count to 151,994 Overnighters. Over the years we’ve witnessed this Options Expiration event which we think should be looked at in a Pavlov Dog manner. They have rung this bell so many times and for years, which may mean to us believers of hard money, that this is where the real break may occur, when everyone is trained to be out, the price takes off. Of course, none of this matters when we have the physicals.

 

May Gold’s Delivery Demands keep suggesting entities want the physical now with the count still elevated at 816 fully paid for 100-ounce contracts with no trading range for the 4 swaps posted up on the board already. Yesterday’s final trading range for the total Volume of 167, was in between $1,749.50 and $1,749.30 with an adjusted close way down at $1,744.20. Here’s something else that everyone else but us seems to ignore in the delivery month; the first 118 swaps had no price posted, but the last 49 trades posted that 20-cent trading range. Yup, nothing but integrity and trust here. Gold’s Overall Open Interest has gained another round of additional shorts, to the tune of 3,699 bringing today’s starting count to 528,638 Overnighters quite possibly Pavloving it for Tuesday’s trade.

 

Lots of events seem to be happening to the news services lately, as more job cuts are being done with their revenues collapsing and still, the management cannot figure out why no one listens to their truths anymore? Last night, East Coast viewers of CBS news got a special treat when their services went dark, making their +20 viewers panic because they were not being fed their daily thoughts and new hates. Then we have the release of documents proving the past administrations involvement in attempting to remove a non-member of the “political” elite by any means possible, including treason, as Trump ordered the release of evidence so solid that the TV show hosts can’t spin it. Then we have the judge in Flynn’s case refusing to throw out the case as he attempts to wait it out for the next accusation from Pelosi and friends who also knew the case was based on lies. This judge has taken over the prosecution because the defense team did its job so well, he’s offended.

 

On the more serious side of things, the global debt system is faltering. It matters not who’s debt is held, it’s becoming harder and harder to keep that system up when so many are on the verge of filing bankruptcy to get out from under that mountain of debt they cannot pay, before it crushes what’s left of their companies and everyone’s jobs. If there ever was a time for small businesses on a global scale, to file bankruptcy, this is it. Who can blame them after all? It wasn’t their fault that a virus, whether factual or not, was used to cause all this disruption. The disruptions have occurred, and it’s in over 184 nations. Small businesses are the life blood of our economy, and the dealers of debt will suffer the most because of what happened. The dealers, of course are the same ones that control all the paper behind the price. These debt dealers know what’s happened already and they are preparing too!

 

Still they ask us, why we hold our precious metals so closely? So, hang on tight to the real, keep a smile on your face no matter what, even if it’s behind a mask. Keep a positive thought in the head, and a prayer for all, as always …

 

Stay Strong!

Jeremiah Johnson

 

More J.Johnson content is available with purchase of a JSMineset subscription.

end

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 WEDNESDAY 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: 7.1016/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1108   /shanghai bourse CLOSED DOWN 14.84 POINTS OR 0.51%

HANG SANG CLOSED UP 11.82 POINTS OR 0.05%

 

2. Nikkei closed UP 161.70 POINTS OR 0.79%

 

 

 

 

3. Europe stocks OPENED ALL MIXED/

 

 

 

USA dollar index DOWN TO 99.32/Euro FALLS TO 1.1219

3b Japan 10 year bond yield: RISES TO. –.00/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.57/ 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:: 32.64 and Brent: 35.54

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

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

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

3h Oil 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 FALLS TO -.47%/Italian 10 yr bond yield DOWN to 1.65% /SPAIN 10 YR BOND YIELD DOWN TO 0.72%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.12: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.82

3k Gold at $1752.40 silver at: 17.51   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 73/100 in roubles/dollar) 71.67

3m oil into the 32 dollar handle for WTI and 35 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 107.57 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 .9657 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0580 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.47%

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 0.69% early this morning. Thirty year rate at 1.41%

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

6.  TURKISH LIRA:  UP  TO 6.7953..

Futures Storm Higher, Reversing All Tuesday Losses Ahead Of FOMC Minutes, 20Y Auction

US equity futures staged another remarkable overnight reversal, recovering all late Tuesday losses and rising right back to the 2950 resistance level observed in recent weeks, as investors clung to hopes of a recovery from the global recession amid signs of more central bank and government stimulus while eyeing fresh outbreaks of the coronavirus.

“Sustained central-bank support should prevent a new market correction,” wrote Xavier Chapard, global macro strategist at Credit Agricole. At the same time, “the main driver of asset prices should be the expectations regarding the timing, speed and extent of the economic recovery.”

Contracts on three main US inexes accelerated gains in the European morning, with traders looking beyond  Tuesday’s report which raised doubts about progress in Moderna’s coronavirus vaccine as attention turned to a different company, Aldeyra Therapeutics, which said it would advance the investigational new HSP90 inhibitor ADX-1612 to clinical testing for COVID-19, sending its stock as much as 34% higher.  Facebook climbed in the premarket after outlining steps for employees to return to work in July. Lowe’s Cos Inc jumped 8.4% in premarket trade after becoming the latest retailer to report an upbeat quarterly same-store sales; Target slumped after declining to provide FY guidance. The FAAMGs rose between 0.9% and 2.6% in early trading. Big Wall Street banks including Bank of America, Citigroup, JPMorgan gained about 2%.

“With headlines suggesting that more fiscal and monetary stimulus around the globe is under way and with the virus curve being much flatter than a couple of months ago, we would treat yesterday’s setback as a corrective move,” said Charalambos Pissouros, senior market analyst at JFD Group.

In Europe, bourses, and sentiment in general, have been choppy this morning but continues to drift higher ahead of the entrance stateside. The Stoxx Europe 600 Index erased an early decline, with Experian among the top advancers after the Irish credit-services firm weathered the pandemic better than analysts expected.

Asian stocks gained, led by health care and communications, after rising in the last session. Most markets in the region were up, with India’s S&P BSE Sensex Index gaining 0.9% and Thailand’s SET rising 0.8%, while Singapore’s Straits Times Index dropped 0.6%. The Topix gained 0.6%, with Tokyo Keiki and UACJ rising the most. Tokyo Stock Exchange was among stocks which surged amid speculation that it may be a contender to join the Nikkei 225 equity index.

The Shanghai Composite Index retreated 0.5%, with Yutong Bus and Nanjing Chervon Auto Precision posting the biggest slides. Overnight, China’s 5-year LPR was held at 4.65%. China has twin issues of weak external demand and elevated domestic debt, so the LPR will likely be trimmed over the coming months according to BMO’s Stephen Gallo. The upcoming third annual session of the thirteenth NPC will probably see a rethink of China’s GDP growth target.

Investors have been whipsawed by conflicting news regarding a possible vaccine for the virus, as many governments around the world ease lockdowns even as the pandemic continues to spread, with Brazil now the world’s hotspot for new infections.

In rates, Treasuries were steady with yields slightly cheaper across the curve ahead of Wednesday’s 20-year bond auction, broadly holding late-Tuesday advance spurred by closer examination of Moderna Inc.’s vaccine study. FRA/OIS continues tightening after latest drop in 3-month dollar Libor. Yields remain within 0.5bp of Tuesday closing levels, 10-year around 0.69%; bunds and gilts outperform by 1bp and 2bp. In the UK, the Debt Management Office sold 3.75 billion pounds($4.6 billion) of 2023 bonds at a negative yield of -0.003% for the first time.

In FX, the dollar slipped against most Group-of-10 peers, and the euro climbed toward a two-week high. The euro advanced for a fourth day against the dollar, yet failed to rise above Tuesday’s high. The euro’s gains coincide with progress on a 500 billion-euro fiscal-stimulus plan by the European Union, though critics say the package may be too little, too late to counter the devastating effect on the region’s economies and bolster the outlook for corporate profits.

The pound was among the worst G-10 performers after April U.K. inflation slowed to the weakest level since 2016; New Zealand’s dollar rose against most peers after central bank Governor Adrian Orr signaled that negative rates in the nation are still some way off. The yen hovered against the greenback while ultra-long Japanese government bonds climbed after an auction of 20-year debt drew the highest bid-to-cover ratio since July last year. The Norwegian krone gave up an earlier gain against the euro and the dollar amid profit taking and selling against its Swedish peer. South Africa’s rand soared as much as 2% against the dollar, with the country’s central bank seen slashing its policy rate to a record low on Thursday to bolster the economy.

In commodities, West Texas Intermediate crude climbed 1.4% to $32.41 a barrel. Gold strengthened 0.3% to $1,749.62 an ounce. Iron ore dipped 1.8% to $93.83 per metric ton. Platinum gained 2.7% to $914 an ounce.

To the day ahead now, and we’ll get the FOMC meeting minutes as well as April CPI readings from the UK and Canada, in addition to the final Euro Area CPI reading for April too. In terms of central bank speakers, there’s the BoE’s Governor Bailey, Deputy Governors Broadbent and Cunliffe, as well as the MPC’s Haskel, who’ll be giving evidence before the House of Commons’ Treasury Select Committee. Lastly, we’ll hear from the Fed’s Bostic and Bullard, while earnings releases today include Lowe’s and Target.

Market Snapshot

  • S&P 500 futures up 0.9% to 2,943.75
  • STOXX Europe 600 up 0.04% to 339.62
  • MXAP up 0.4% to 148.68
  • MXAPJ up 0.1% to 479.42
  • Nikkei up 0.8% to 20,595.15
  • Topix up 0.6% to 1,494.69
  • Hang Seng Index up 0.05% to 24,399.95
  • Shanghai Composite down 0.5% to 2,883.74
  • Sensex up 0.9% to 30,476.99
  • Australia S&P/ASX 200 up 0.2% to 5,573.05
  • Kospi up 0.5% to 1,989.64
  • German 10Y yield rose 0.7 bps to -0.457%
  • Euro up 0.2% to $1.0942
  • Italian 10Y yield fell 3.8 bps to 1.462%
  • Spanish 10Y yield rose 1.9 bps to 0.661%
  • Brent futures up 1.4% to $35.12/bbl
  • Gold spot up 0.3% to $1,749.43
  • U.S. Dollar Index little changed at 99.44

Top Overnight News from Bloomberg

  • Chinese doctors are seeing the coronavirus manifest differently among patients in its new cluster of cases in the northeast region compared to the original outbreak in Wuhan, suggesting that the pathogen may be changing in unknown ways and complicating efforts to stamp it out
  • China denounced U.S. Secretary of State Michael Pompeo for referring to Taiwan’s leader Tsai Ing-wen as “president,” vowing to “take necessary countermeasures” in response
  • In a challenge to the proposal set out by Germany and France on Monday to fund the economic recovery, Austria, the Netherlands, Denmark and Sweden expect to publish their framework some point after 3 p.m. Brussels time, according to two European officials familiar with their plans
  • Goldman Sachs is reopening offices including Frankfurt, Madrid and Milan as its European operations begin to re-emerge from shutdowns prompted by the coronavirus
  • If you’ve missed the rebound in European equities, it might be a little late to get in on the game now. Strategists only expect the Euro Stoxx 50 Index to rise another 3.8% from Monday’s closing level to 3,023 by the end of the year, according to the average response in a poll by Bloomberg News

Asian equity markets traded indecisively following the soured mood on Wall St amid ongoing US-China tensions and with the major indices pressured heading into the close as vaccine hopes were knocked by reports that Moderna’s COVID-19 vaccine did not produce data critical to its assessment. ASX 200 (+0.2%) was initially subdued by weakness in the utilities and energy sectors, while a record decline in preliminary retail sales and deteriorating relations with China added to the lacklustre tone, before a recovery in financials and strength in tech helped overturn the losses. Nikkei 225 (+0.8%) was underpinned by stimulus hopes after the BoJ announced to hold an off-schedule meeting this Friday to discuss a new loan scheme for firms impacted by the virus and with the Japanese government to set up a JPY 50bln fund with the private sector to inject capital into businesses. However, weakness was seen in Fujifilm on reports its Avigan drug was not showing apparent efficacy as a coronavirus treatment and earnings releases were also a catalyst for price action with both Sharp and Mitsubishi Motors suffering from weaker results in which the latter posted a full-year loss. Hang Seng (U/C) and Shanghai Comp. (-0.5%) mirrored the choppy trade after the PBoC kept its Loan Prime Rates unchanged as expected and following the verbal jousting between China and the US. Finally, 10yr JGBs attempted to nurse the prior day’s losses following the recent rebound in T-notes and following stronger results at the 20yr JGB auction although the gains were eventually reversed amid outperformance in Japanese stocks.

Top Asian News

  • Thailand Cuts Rate for Third Time as Economic Crisis Worsens
  • Turkey Turns to Gulf Ally Again With $15 Billion Qatar Swap Line; Lira-Averse Banks Fuel Turkish Fears of Another Dollar Rush
  • Debt Binge to Widen India’s Fiscal Gap to 13%, Says HSBC

A choppy and overall mixed session thus far in the European equity space [Eurostoxx 50 +0.3%], with little conviction amid light news flow and despite a mostly positive APAC handover. That being said, US equity futures grind higher and nurse the losses seen following yesterday’s Moderna disappointment. Sectors are mixed with clear outperformance seen in defensives vs. cyclicals ex-IT, reflecting more risk-aversion-heavy trade. The breakdown also paints a similar picture with Healthcare the outperformer whilst Autos, Banks, and Travel & Leisure all reside towards the bottom. In terms of individual movers, Fiat Chrysler (-3.2%) shares were halted amid doubts raised about the Co’s USD 6bln dividend following talks for a 3yr long EUR 6.3bln loan facility, with sources stating that Italy could look into Fiat Chrysler’s planned pay-out, with Peugeot (-3.4%) also lower in sympathy. On the flip-side Marks & Spencer (+4.5%) sees post-earnings gains after revenue printed in-line with forecasts. Fresenius SE (+3.9%) holds onto gains on the back of a broker upgrade at Morgan Stanley.

Top European News

  • U.K. Inflation Slows to Weakest Since 2016 Amid Virus Crisis
  • London Office Landlord Braces for Recessionary Hit to Rents
  • Cambridge University Moves All Lectures Online Until 2021
  • Norwegian Air Drops 60% as Reality Sinks In for Shareholders

In FX, hot on the heels of RBNZ Deputy Governor Bascand’s wait-and-see policy guidance on Tuesday, Governor Orr has echoed sentiments overnight by stating that negative rates are not on the current agenda, but an option for consideration much later. Hence, the Kiwi remains some distance ahead of the chasing G10 pack on the 0.6100 handle vs its US counterpart and closer to 1.0700 against the Aussie that is still hampered by deteriorating trade relations with China and a stark reality check on the retail side as sales slumped in April by more than double the magnitude of the prior month’s rise. In response, Aud/Usd has slipped back under 0.6550 after another test and rejection of recent highs around 0.6570 and now eyeing May PMIs for further direction.

  • CHF/EUR – The Franc and Euro are both holding gains relative to a broadly soft Dollar, as the DXY continues to pivot 99.500 ahead of FOMC minutes after little new from Fed chair Powell in testimony yesterday, but perhaps more impetus via his opening remarks at an event on Thursday. Eur/Usd is establishing a firm base above 1.0900 and decent option expiry interest between 109.30-35 (1 bn), while Usd/Chf straddles 0.9700 and Eur/Chf rotates either side of 1.0600 following its sharp spike from near 1.0500 multi-year lows in wake of Germany and France reaching agreement on a common EU debt funded COVID-19 rescue package.
  • CAD/JPY/GBP – All narrowly mixed vs the Greenback as the Loonie maintains momentum within 1.3960-16 parameters with ongoing assistance from firm crude prices awaiting Canadian CPI, while the Yen has pared more losses following a 3rd test of resistance just above 108.00, but crucially from a technical perspective no further approach towards the 200 DMA. Next up, Japanese trade data tomorrow before the BoJ’s bank lending inter-schedule policy meeting on Friday. In contrast, Sterling has succumbed to more ‘sell in May’ and chart-inspired downside pressure with stops, albeit light so far, tripped at 1.2225 in Cable that represents one side of in inverse head and shoulders formation, but the Pound has regained some poise post-soft UK inflation data and pre-BoE testimony to a TSC.
  • SCANDI/EM – Somewhat contrasting fortunes for the Scandinavian Crowns as Eur/Sek resumes its bearish tendencies towards 10.5500, but Eur/Nok rebounds from sub-10.9000 in wake of the Riksbank’s latest FSR and a Norges Bank economist survey both highlighting the adverse impact and risks related to the coronavirus. Meanwhile, the Turkish Lira looks apprehensive in the run up to tomorrow’s CBRT rate decision even though the Bank’s swap line to Qatar has been boosted by Usd10 bn to Usd15 bn, but the SA Rand is heading back down with more purpose after breaching a prior May peak ahead of retail sales and the SARB on Thursday with another 50 bp ease seemingly priced in.

In commodities, WTI and Brent front-month crude futures trade choppy and swing between gains and losses. WTI June expired yesterday whilst holding up above USD 30.0/bbl at USD 32.50/bbl, whilst June/July settled in backwardation – which some suggested show a clear significantly shift in sentiment MM. That being said, short-covering and low vol/open interest may have also influenced the June price action. Underlying fundamentals seem to be broadly improving, but “poor refinery margins suggest that this strength is unlikely to be sustainable in the near term.” ING says, “. We would need to see strength in refinery margins in order to persuade refiners to increase utilisation rates, but at current levels, there seems little incentive for them to do so.” On the geopolitical front, Iranian Navy said it will continue with its activities in the Persian Gulf despite US warnings, reported via ISNA, which follows remarks by the US navy that “Armed vessels approaching within 100 meters of a US naval vessel may be interpreted as a threat”. Private inventories yesterday printed a headline draw of 4.84mln barrels. Investors will be eyeing the DoEs for confirmation. Elsewhere in the States, North Dakota’s oil and gas regulators will be meeting today to discuss mandated cuts, albeit little is expected from the meeting and the State only pumps ~1.4mln BPD vs. Texas’ 5mln BPD. In terms of metals, spot gold trades modestly firmer around USD 1750/oz and seems to be deriving strength from a weaker Dollar amid light news flow in early European trade. Copper similarly remains little changed within a tight intraday band.

US Event Calendar

  • 2pm: FOMC Meeting Minutes

DBs Jim Reid concludes the overnight wrap

I have decided that at the end of this week we’ll pause Corona Crisis Daily for now as new case growth and fatalities have been suppressed for now. I really hope it’s a permanent halt but we stand ready to bring it back if the virus has a second wave. Thanks for the numerous interactions and feedback on the report. It’s been a wild ride. In today’s edition we make some big assumptions as to what the fatality rate would be across all age buckets if the entire global population had been exposed to the virus. We use the latest England and Wales data (out yesterday), which splits the numbers by 5-year age buckets and estimate that if the global fatality rate was 0.75% – as many scientists think will end up being in the right ballpark – then our crude estimate is that the 20-64 year old ‘working age’ population fatality rate would be 0.1%. For over 70s, it could be 4.6% and 16.6% for over 90s. At the other end of the spectrum, based on this analysis we think 1 in every 298,000 under 14 year olds would die, again highlighting the hugely age discriminant nature of this virus. This analysis contains many big assumptions including over the end state fatality rate and the same proportionality across ages as current but you can see the theory in today’s CCD.

After around 9 weeks of working from home, being more productive, publishing more reports than ever before and conducting numerous video and audio meetings, at 4:30pm yesterday afternoon my internet finally went down for the first time. After 30 minutes of fighting it, I went into the garden put on my sunglasses and finished the work I had to do on my iPad using 4G. Just as I was finishing my iPad turned itself off and said it had to cool down before it could be used again. That’s how unseasonably hot it was yesterday here in the UK. Even the technology melted.

After a Monday session where there were no clouds to be seen for miles around, yesterday a few storm clouds appeared late in the New York session in the form of a report from health publication STAT saying that some vaccine experts may have doubts over the Moderna vaccine that saw markets rally universally the day before. The article found that ”based on the information made available by the Cambridge, Mass.-based company, there’s really no way to know how impressive — or not — the vaccine may be.” This caused a pullback in risk markets that were already a bit more mixed yesterday as we were reminded of the reality of the savage hit to the economy and to earnings. A reminder that our house global economic forecasts are based around a vaccine not being widely available over the next 18 months. Interestingly in our monthly survey published on Monday (link here) 75% thought that there would be a vaccine available within 18 months. This was obviously before any of the Moderna news this week.

The S&P 500 moved between gains and losses before the more negative Moderna news and ending the session -1.05%. While not especially deep given the sell-off of recent months, the pullback was broad based with all 24 industry groups trading lower by the end of the day and 80% of the index being down. Back in Europe, the story was similar even though they closed before the vaccine story, with equities closing lower after giving up morning gains, with the STOXX 600 down -0.61%. European auto stocks lagged behind as April EU vehicle registration fell 78% yoy with just over 290,000 cars sold, the lowest since the data started being tracked in 1990. Yesterday also saw short-selling bans end in a number of European countries and consequently benchmarks in those countries underperformed the broader index with Spain (IBEX -2.51%), Italy (FTSE MIB -2.11%), Belgium (BEL20 -1.69%), France (CAC -0.89%), Greece (ASE -1.37%), and Austria (ATX -4.30%) all declining.

In terms of earnings, Home Depot, the hardware giant, was down -2.90% after it announced that its virus-related costs surpassed the rise in sales, even as more people undertook home improvement projects while in lockdown. EPS for the company missed estimates at $2.08 (vs. $2.25), the first miss since 2014. Walmart was another giant member of the Consumer Staples sector that saw a large rise in sales as customers stockpiled into lockdowns. Sales ex-gas was up 10% in Q1, above the consensus +8.6%, while adj. EPS was reported at $1.18, beating the estimated $1.12. The shares were up +4% premarket, before trading lower on the day, finishing -2.11% as the company withdrew its 2020 guidance.

Oil had a less volatile day than seen recently, with WTI up just +2.14% as Brent actually fell back -0.46%, bringing its run of 3 successive advances to an end. It wasn’t all bad news for commodity prices though, as copper, which is often taken to be an industrial bellwether, rose a further +0.71% to reach a 2-month high.

Overnight, with little in the way of fresh news markets in Asia are trading more mixed with the Nikkei (+0.93%) and Kospi (+0.24%) up while the Hang Seng (-0.11%) and Shanghai Comp (-0.45%) are both down. Meanwhile, futures on the S&P 500 are trading up +0.59% while WTI oil is up a further +0.53%. Iron ore prices are also up +1.65% this morning bringing the gain since April 29th to 19.24%, a period, which also hasn’t seen a single daily decline.

Moving on. Fed Chair Powell appeared with Treasury Secretary Mnuchin before the Senate Banking Committee yesterday, where he said that the US was facing its biggest economic shock in living memory. The Fed Chair reiterated that more fiscal support may be needed but did shy away from taking a side in the current debate between Republican and Democratic lawmakers regarding the need for additional stimulus funding for state and local governments. Powell also talked up the ability of the Fed to make a difference, saying that “It’s all ahead of us. The amount that has gone out so far, in the context of the U.S. economy, is fairly modest.” The Main Street lending facilities, focusing on small business, should be up and running within 2 weeks. Lastly, Secretary Mnuchin, when asked about ultra-long US bonds, said that the Treasury did not find enough demand for that duration in studies undertaken prior to the current pandemic. Elsewhere, Minneapolis Fed President Kashkari said that it was “probably a year or two away before we really start seeing strong economic growth”.

Turning back to Europe, and on the recovery fund proposals from Merkel and Macron on Monday, the French finance minister Bruno Le Maire said yesterday that it “probably couldn’t be available before the start of 2021”. Furthermore, they’ll need to persuade all of the 27 member states to get it through, and some have already sounded notes of resistance, such as Austrian Chancellor Kurz the previous day who tweeted that they were willing to help with loans, whereas the proposal was for the fund to use grants instead. Also on European politics, it’s worth noting that French President Macron’s party lost its parliamentary majority yesterday after a number of MPs defected. See this piece here from Marc de-Muzion on the recent French political developments.

Against this backdrop, there was a further narrowing of peripheral spreads in Europe though, suggesting that investors continue to be reassured on balance by the prospects of an EU-wide recovery fund. By the end of the session, the spread of 10yr yields on Italian (-3.4bps), Spanish (-9.4bps), Greek (-13.3bps) and Portuguese (-9.2bps) debt over bunds had all narrowed even in a risk off equity session in Europe. In the US meanwhile, 10yr Treasuries also advanced, with yields down -3.7bps.

The downturn in risk market sentiment wasn’t helped by the economic data. Starting with the US, and housing starts in April fell to an annualised rate of 891k (vs. 900k expected), a -30.2% drop from the previous month’s reading. This now puts them at their lowest level since February 2015, and follows an -18.6% drop a month earlier. The building permits number was somewhat better than expected at 1.074m (vs. 1.000m expected), but that was also down -20.8% from the previous month. Here in the UK meanwhile, the number of jobless claims rose by 856.5k to 2.097m, which is their highest level since July 1996, while there was the largest quarterly decrease in vacancies (which fell to a 6-year low in the three months to April) since the current time series began back in 2001. In Germany, however, the ZEW survey’s expectations reading rose to 51.0 in May (vs. 30.0 expected), its highest level since April 2015. However, the current situation did fall to -93.5 (vs. -86.6 expected), the lowest since July 2003.

To the day ahead now, and we’ll get the FOMC meeting minutes tonight, but before then we’ll also get the Euro Area’s advance consumer confidence reading for May, as well as April CPI readings from the UK and Canada, in addition to the final Euro Area CPI reading for April too. In terms of central bank speakers, there’s the BoE’s Governor Bailey, Deputy Governors Broadbent and Cunliffe, as well as the MPC’s Haskel, who’ll be giving evidence before the House of Commons’ Treasury Select Committee. Lastly, we’ll hear from the Fed’s Bostic and Bullard, while earnings releases today include Lowe’s and Target.

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 14.84 POINTS OR 0.51%  //Hang Sang CLOSED UP 11.82 POINTS OR 0.05%   /The Nikkei closed UP 161.70 POINTS OR 0.79%//Australia’s all ordinaires CLOSED UP .38%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1016 /Oil UP TO 32.20 dollars per barrel for WTI and 35.54 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1016 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1108 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

China/USA

China now wants a much higher military budget amid the growing conflict with the uSA

(zerohedge)

China’s Military Seeks Bigger Budget Amid “Growing Threat Of US Conflict”

With Sino-US diplomatic relations plumbing the lowest levels in modern history, China’s military leaders are pushing for a substantial increase in their budget to be announced at the National People’s Congress that starts on Friday, arguing that the world’s largest standing army needs more resources to cope with volatile challenges at home and overseas. And at the top of the list, according to the South China Morning Post, is the growing confrontation with the US.

With China-US relations sinking amid a trade war, spats over civil liberties and Taiwan, and conflicts over Beijing’s territorial claims in the South China Sea, recent months have added accusations between Washington and Beijing about the origins of the Covid-19 pandemic. From Beijing’s viewpoint, the military threats are surfacing on its doorstep with US bombers running about 40 flights over contested areas of the South China and East China seas so far this year, or more than three times the number in the same period of 2019. US Navy warships have sailed four “freedom of navigation operations” in the area in the same period, compared with eight in all of last year.

“Beijing feels security threats posed by the US and other foreign countries are increasing, so the People’s Liberation Army wants a budget increase to support its military modernization and combat-ready training,” said Song Zhongping, a Hong Kong-based military commentator and former officer in the PLA, quoted by the SCMP.

Although the actual size of China’s defense budgets are a matter of dispute, military insiders say the PLA will want to match or exceed last year’s 7.5% growth rate, with one estimating a 9% jump, as tensions escalate on several fronts, including the perennial Taiwan friction.

While those increases may not seem outlandish, and pale in comparison to the total US military budget, they would be against a backdrop of a domestic economy severely hammered by the Covid-19 outbreak and the threat of a global recession. In late March, investment bank China International Capital Corporation slashed its real GDP growth forecast for China in 2020 to 2.6% from 6.1% in January.

One year ago at the NPC in March 2019, China announced defense spending of 1.18 trillion yuan (US$176 billion) which is the world’s second largest. But the Stockholm International Peace Research Institute estimates China’s defense spending at US$261 billion, which is a little over a third that of the US$732 billion of the US.

Lu Li-shih, a former instructor at the naval academy in Taiwan, said the suspicion between Beijing and Washington was the worst since the resumption of diplomatic relations in the 1970s, but he rated the chance of a military conflict as low (for now). Collin Koh, a research fellow at the S. Rajaratnam School of International Studies at Singapore’s Nanyang Technological University, meanwhile, said the PLA and US military counterparts had communication channels.

“Bilateral military ties … might not be always efficacious, but at least do serve as existing ‘pressure valves’ to forestall and potentially mitigate the risks that arise from growing tensions between Beijing and Washington,” Koh said.

Still, as the SCMP reports, President Xi Jinping, who chairs the all-powerful Central Military Commission, ordered the PLA on January 2 to boost its combat capacity as relations worsened with Washington. That was a repeat of Xi’s “be ready to win wars” order when he laid out his military expansion plan to the Communist Party’s national congress in 2017. The message has not changed.

Neither has the focus of attention: Taiwan. In last July’s defence white paper, the PLA said two of its most challenging threats were from pro-independence forces in Taiwan and separatists in Tibet and Xinjiang, saying the army “will defend national unification at all costs”.

Ni Lexiong, a specialist in China’s naval strategy and former professor at the Shanghai University of Political Science and Law, said under President Donald Trump, US arms sales to Taiwan – including 66 F-16 Viper fighter jets – gave the PLA additional bargaining chips in asking for more money.

Beijing considers Taiwan a part of China’s territory that must be returned to the mainland fold, by force if necessary. The PLA has planned for such an event since 1949, when the Nationalist Party was defeated in the Chinese Civil War by the Communist Party of China and fled to the island.

Tensions over Taiwan have ratcheted up since Tsai Ing-wen became president in 2016. She was re-elected in a landslide in January on a platform of standing up to Beijing and defending Taiwan as a liberal democracy. She will be inaugurated for a second four-year term on Wednesday, just two days before the NPC opens.

In response, the FT reports that Taiwan is fearful that Beijing will step up direct military pressure this year in the wake of the coronavirus epidemic, with increasingly frequent incursions into airspace traditionally respected as a safety buffer zone. Such operations are below the threshold of war but would expand the area China dominates militarily, mirroring the approach Beijing has taken to establish virtual control over the disputed South China Sea.

“Once the pandemic recedes, the Chinese communists will fly across the Taiwan Strait median line more and more often, until the line disappears,” said a recently retired Taiwanese senior military official. “They will create a new status quo under which they will regularly operate much closer to our airspace, and move around there at will.”

The median line was drawn by the US in 1954. While the line does not have international legal force, both Taiwan and China have long had a tacit understanding not to cross it to avoid unintended clashes. But in March 2019, Chinese military aircraft crossed the line for the first time in 20 years and have done so on at least two more occasions.

Taiwan’s concerns follow veiled warnings from China and come as President Tsai Ing-wen starts her second term on Wednesday, with her country’s international reputation and her own popularity boosted by Taipei’s containment of the coronavirus pandemic.

Last week, Japanese news agency Kyodo reported that the People’s Liberation Army (PLA) was planning an exercise for August that would simulate the seizure of Pratas, a Taiwan-held atoll at the northern entrance of the South China Sea. At the same time, the Chinese government announced two month-long live-fire drills near the port of Tangshan, interpreted by some military experts as an exercise for an attack on Taiwan.

A senior Taiwanese government official said these signals and the PLA’s probing of the median line had heightened concerns that anger over Taipei’s handling of Covid-19 was driving Beijing to take a more provocative course. Taiwan prevented a local outbreak and has seen only 440 confirmed cases and seven deaths, after cutting travel from China early. This success attracted global attention and support for the diplomatically isolated country’s attempts to participate in the World Health Organization.

“Because of this, cross-Strait relations have become very tense right now,” the senior official said.

* * *

Alexander Huang Chieh-cheng, a professor of international affairs and strategic studies at Tamkang University in Taipei, said that while a military conflict between the mainland and Taiwan would be unlikely in the coming two years, as Beijing needed to concentrate its efforts on economic recovery after the Covid-19 pandemic, the risk of conflict had increased.

“Beijing is expected to continue its sabre-rattling against Taipei, staging more war games to try to intimidate the Tsai government in her next four years in office as long as she rejects the 1992 consensus,” Huang said, referring to a decade-old agreement between Beijing and Taipei to define cross-strait relations. Huang was a former vice-chairman of Taiwan’s Mainland Affairs Council which oversees the island’s policies towards the mainland.

China has been running increasing numbers of military flights into Taiwan’s airspace, and in recent media articles some retired Chinese military officials have suggested that the US was not in a position to defend Taiwan because all four of its aircraft carriers in the Indo-Pacific had been hit by Covid-19 outbreaks. Later comments in an influential party journal, the Study Times , suggested a military venture was not part of Beijing’s immediate plans.

“The Covid-19 pandemic has exacerbated suspicions and mistrust between Beijing and Washington, and likewise between Beijing and Taipei,” Ni said. “China is facing a new round of containment posed by the US-led Western countries similar to the Cold War.”

Meanwhile, Xi’s national “rejuvenation” strategy for China includes reshaping the PLA into a top-ranked fighting force by 2050, which includes launching at least four aircraft carrier strike groups by 2035, cutting-edge weapons research and development, and revamping the whole military command structure.

China now has two aircraft carriers; the Liaoning is a refitted vessel bought from Ukraine, while the Shandong is the first domestically built. The Shandong is still undergoing sea trials to meet what is known as initial operating capability, or IOC, for warships.

The navy has scheduled sea trials for two newly launched Type 075 helicopter docks, a type of amphibious vessel, with 40,000 tonnes of displacement. It also has plans for eight Type 055 guided-missile destroyers, its most powerful warship and among the most advanced in Asia. The first was commissioned in January and three others are being fitted out.

The PLA modernisation of both traditional and non-traditional military operations would not slow, said Song in Hong Kong. The PLA is also arguing for more funds, citing other complicated and non-traditional security challenges at home, from separatism to terrorism and religious extremism.

China’s military also found itself at the forefront of a different battle this year as tens of thousands of personnel were drafted into the fight against the Covid-19 disease outbreak in the initial epicentre, Wuhan, in January. The PLA provided doctors to treat patients, as well as soldiers and logistics for quarantine lockdowns, all additional expenditures that affect short- and long-term planning.

Beside fighting pandemics, the military is also expected to do its part in providing jobs for the rising ranks of unemployed as businesses struggle to recover from the economic damage done by the disease. More than 8.7 million students will graduate this summer and the PLA has been asked to absorb more of them, another reason to request more funding.

So… the Chinese army is about to grow by millions? Whatever you do, don’t call it a draft or you will be banned by Twitter.

A military insider said the Covid-19 pandemic added a large, unexpected financial burden on the PLA (not to mention a source of new “volunteer” recruits). “Military leadership is still fighting with the decision makers of the NPC for a budget increase up to 9 per cent for the coming year, even though the global and domestic economic situations are worrying,” said the person, who requested anonymity due to the sensitivity of the talks.

The PLA deployed more than 4,500 military medical personnel to worst-hit Hubei province and its capital Wuhan, as well as other logistic support elsewhere in the province from February.

“President Xi also ordered scientists from the Academy of Military Medical Sciences to join the global race to find a vaccine for Covid-19, which is a long-term and costly investment,” the person said. “It’s very difficult to predict the military cost from the Covid-19 pandemic, because we don’t know how long it will last.”

And speaking of the army’s involvement in the coronavirus pandemic, recall that a Chinese military virologist and bioweapons expert Major General Chen Wei went to the Wuhan Institute of Virology with military scientists in January to “study” the new virus. But aside from that, there is absolutely no connection between the Chinese army and the coronavirus outbreak. None at all.

end
China/USA
War of words with China escalate
(zerohedge)

In Latest Escalation, President Trump Blames China For “Mass Worldwide Killing”

A day after the WHA approved a resolution authorizing a WHO-led investigation to the origins of the coronavirus in China, President Trump just lashed out at China’s state-approved conspiracy-peddlers who are desperately trying to convince the Chinese people that the virus didn’t come from China – but actually originated in the US.

Donald J. Trump

@realDonaldTrump

Some wacko in China just released a statement blaming everybody other than China for the Virus which has now killed hundreds of thousands of people. Please explain to this dope that it was the “incompetence of China”, and nothing else, that did this mass Worldwide killing!

The rhetorical tit-for-tat between the US and China has intensified in recent days, as the White House lambasted President Xi’s promise to share a vaccine “with the world” and pump $2 billion into the WHO’s effort to help the poorest countries as a “token” gesture to try and obviate China’s obvious culpability.

Trump and many members of his administration have bashed the WHO for uncritically accepting information provided by the CCP – despite having an office on the ground in Beijing – and writing glowing reports praising China’s early response while the government knowingly withheld information that could have inspired a more stringent response.

Instead, the organization hemmed and hawed, playing down the virus’s destructive potential, and celebrating China’s response as “a model” for other developing nations.

Twitter blue checks immediately pounced on the comment, reminding the world of the Trump Administration’s “failings”.

Khaled Diab

@DiabolicalIdea

Some wacko in the White House is blaming everyone but himself for the disastrous spread of the COVID-19 coronavirus in America.

The original sin is China’s but the Trump administration had plenty of time to deal with the gathering storm. It’s not like it arrived unannounced. https://twitter.com/realDonaldTrump/status/1263085979491016708 

Donald J. Trump

@realDonaldTrump

Some wacko in China just released a statement blaming everybody other than China for the Virus which has now killed hundreds of thousands of people. Please explain to this dope that it was the “incompetence of China”, and nothing else, that did this mass Worldwide killing!

Though the administration probably wishes it rolled out testing more quickly, most new information – including diagnoses of possible COVID-19 deaths and cases weeks or months earlier than previously believed – suggests that the reluctance of officials in Beijing and Wuhan to pounce on the virus was the initial “pandora’s box” moment, and that the virus was likely already spreading in the US in early January, before China had informed the world of evidence of human-to-human transmission.

end
CORONAVIRUS UPDATE//CHINA
The virus is mutating making it difficult for a vaccine to be developed. The  characteristics are different.
(zerohedge)

China’s Newest COVID-19 Outbreak Shows Virus May Be Mutating

During the earliest days of the pandemic, when medical journals like The Lancet were publishing some of the first non-peer-reviewed studies about the virus by scientists and researchers in China, experts warned about mutations in various strains of the virus, though they insisted that there was still no evidence to suggest that the virus was evolving into something more dangerous and more infectious.

Since then, a flood of new research has been published, and scientists have discovered more discouraging signs of mutation in samples of the virus. And yet, medical experts including Dr. Anthony Fauci have seemed at times overly eager to dismiss these mutations, and claim – without evidence – that there was no reason to believe the virus was evolving and changing in a way that might complicate efforts to create a vaccine.

Which is why we’re highlighting this Bloomberg report from yesterday describing the latest findings from doctors and researchers in northeastern China who are seeing the coronavirus manifest differently among patients in this new cluster,suggesting that the virus may indeed by changing in unknown ways and complicating efforts to stamp it out.

It’s just one more reason why the notion of keeping economies partially closed until a vaccine is widely available is simply untenable: Someday, the “believe science” crowd will come to understand that projections like the model forecasting 3k deaths per day by June are just that – projections. And just like stock-market analysts, scientists aren’t great at predicting the future, because projections are never an ‘exact’ science. But for now, the most important thing to understand is that we really don’t have any idea how long it will take to develop this vaccine. The 18-24 months projection parroted by Dr. Fauci and many experts is based on little more than a hope and a prayer based on their experience with other viruses. Other notable differences between SARS and SARS-CoV-2 have already been identified: why not this too?

The two biggest differences doctors have noted after studying the 46 cases of the virus confirmed over the past weeks are that patients take longer to show symptoms, and are taking longer to recover.

Patients found in the northern provinces of Jilin and Heilongjiang appear to carry the virus for a longer period of time and take longer to test negative, Qiu Haibo, one of China’s top critical care doctors, told state television on Tuesday.

Patients in the northeast also appear to be taking longer than the one to two weeks observed in Wuhan to develop symptoms after infection, and this delayed onset is making it harder for authorities to catch cases before they spread, said Qiu, who is now in the northern region treating patients.

“The longer period during which infected patients show no symptoms has created clusters of family infections,” said Qiu, who was earlier sent to Wuhan to help in the original outbreak. Some 46 cases have been reported over the past two weeks spread across three cities – Shulan, Jilin city and Shengyang – in two provinces, a resurgence of infection that sparked renewed lockdown measures over a region of 100 million people.

Furthermore, doctors are noticing that patients in the northeast are suffering damage to their lungs, while in Wuhan, patients exhibited damage in their kidneys, hearts and across their internal organs.

Qiu said that doctors have also noticed patients in the northeast cluster seem to have damage mostly in their lungs, whereas patients in Wuhan suffered multi-organ damage across the heart, kidney and gut.

To be sure, it’s unclear whether these differences are the result of mutations in the virus’s genetic code, or are simply a result of the relatively small cluster of patients, and the fact that doctors are monitoring these patients much more closely than they monitored most patients in Wuhan.

Scientists still do not fully understand if the virus is changing in significant ways and the differences Chinese doctors are seeing could be due to the fact that they’re able to observe patients more thoroughly and from an earlier stage than in Wuhan. When the outbreak first exploded in the central Chinese city, the local health-care system was so overwhelmed that only the most serious cases were being treated. The northeast cluster is also far smaller than Hubei’s outbreak, which ultimately sickened over 68,000 people.

Still, the findings suggest that the remaining uncertainty over how the virus manifests will hinder governments’ efforts to curb its spread and re-open their battered economies. China has one of the most comprehensive virus detection and testing regimes globally and yet is still struggling to contain its new cluster.

Researchers worldwide are trying to ascertain if the virus is mutating in a significant way to become more contagious as it races through the human population, but early research suggesting this possibility has been criticized for being overblown.

“In theory, some changes in the genetic structure can lead to changes in the virus structure or how the virus behaves,” said Keiji Fukuda, director and clinical professor at the University of Hong Kong’s School of Public Health. “However, many mutations lead to no discernible changes at all.”

It’s likely that the observations in China don’t have a simple correlation with a mutation and “very clear evidence” is needed before concluding that the virus is mutating, he said.

It’s just the latest reminder that so much about this virus remains unknown or poorly understood, and that projections are just that – educated guesswork. Just like the NYT’s 3k deaths per day projection has already been exposed as wildly off-course.

And projections for vaccine development are based on equally flimsy evidence.

end

China/USA/this afternoon

The noose around China is getting tighter as the Senate passes a bill boosting its oversight on Chinese companies…the aim is to delist Chinese companies from the NYSE

(zerohedge)

Stocks, Yuan Tick Lower As Senate Passes Bill That Could Force De-Listing Of Chinese Companies

The CCP’s leaders including President Xi are probably dedicating massive intelligence resources to try and discern how much of the White House’s belligerent rhetoric toward China is just that – talk – and how much represents serious plans for action.

Well, after President Trump raised the prospect of de-listing Chinese companies from US exchanges last week (around the time that Carson Block unveiled his latest bet against a “fraudulent” Chinese Co. trading in the US) – which prompted Beijing to threaten to move its IPOs to London, the Senate on Wednesday voted on a new bill that would intensify scrutiny of the

  • SENATE PASSES BILL AIMED AT BOOSTING OVERSIGHT OF CHINESE COS.
  • SENATE PASSES BILL AIMED AT BOOSTING OVERSIGHT OF CHINESE COS, BILL COULD REQUIRE CHINESE COS. TO DELIST FROM U.S. EXCHANGES, AND ALSO BILL WOULD REQUIRE COS. TO CERTIFY NO FOREIGN GOVT. CONTROL
  • BILL WOULD REQUIRE COS. TO CERTIFY NO FOREIGN GOVT. CONTROL

The bill comes as Washington moves to cut off Chinese telecoms giant Huawei from using US-made parts and technology. Stocks and the yuan both declined slightly on the news…

…as it adds even more credence to the “economic decoupling” narrative.

We imagine we’ll be hearing from Beijing shortly.

4/EUROPEAN AFFAIRS

ITALY

German economist warns that Italy’s economy is very weak due to the coronavirus and its best strategy is an exist from the EU

(zerohedge)

German Economist Warns Italy Faces Eurozone Exit As Coronavirus Crisis Deepens

Italy, whose already week economy has been crippled by the coronavirus pandemic, should seek help from its own wealthy citizens, rather than relying on Germany and other EU countries, to bail it out as it struggles to bounce back from the coronavirus pandemic, former German MEP and economist, Hans-Olaf Henkel, has warned.

According to The Express, the German suggested that the best solution would be for Italy to leave the eurozone and go back to their own currency, which he dubbed the “new lira”. Henkel was speaking against the backdrop of widening splits between the north and the south of the bloc, and particularly Germany and Italy, on how best to mitigate the economic and societal impacts of the virus.

 

Hans-Olaf Henkel.

He wasn’t alone: at a time when the European periphery has been hoping to get loans, or better yet, grants from Europe, Manfred Weber, leader of the European People’s Party in the European Parliament, became the latest figure to speak out, calling for “strict controls” to prevent Italy and Spain embarking on massive public spending sprees using EU cash.

Henkel was also responding to comments by liberal billionaire and europhile George Soros, who last week suggested the EU had a duty to help Italy, which has been hit harder by the disease than anywhere else in the bloc, by spreading the cost of rebuilding the country’s economy among members of the eurozone. The former MEP explained: “I share Soros’ views on Italy but do not believe that there is any justification to show ‘financial solidarity with Italy because of the corona crisis’.

“What have Germans to do with the decisions taken by Italian politicians on their health system or the (very late) decisions on the lockdown in Lombardy”

He also noted that “on average the per capita wealth of Italians is way above the wealth of for instance Germans” and added that “before Italian politicians like Salvini or Conte or anybody claims money from citizens of other countries to mitigate the financial results of their decisions they should ask their own wealthy people to show solidarity with their own people.”

“Rather than letting Italian politicians borrow money from and at the risk of other countries, Germany should make a generous gift in exchange for Italy leaving the eurozone and go back to their own currency (New Lira)! This way Italy’s Central Bank could devalue their currency to become competitive again, get the economy back on its (own) feet and prosper like Italy did before the euro” Henkel said.

The German economist, who stressed his respect for a “globalized, liberal and democratic world”, added: “I know Soros from a meeting some years ago when we discussed the first euro crisis.”

“At that time I advocated the euro to be split into a ‘Northern Euro’ and a ‘Euro for the South’, in each case the currency to reflect the different economic realities prevailing in, for example, Greece, Italy and France on one hand and, for instance, in Austria, The Netherlands and Germany on the other.”

Addressing a proposed solution, namely “perpetual bonds”, or loans which would never have to be repaid, he added: “Soros’ idea of eternal European loans may work on a national basis like they did in the UK and in the US in World War 1, but they would not work on a European level.

“Not only would we be confronted with the same moral hazard such as in the case of euro- or coronabonds, they would also be limited to the eurozone hence create a new border within Europe.”

“On one side are those with solidarity for Italy like Germany. On the other are those without like Denmark or Sweden or Poland, none of them being in the eurozone.”

And that’s why Europe is doomed – the same reason European nations and people have been doomed to waging war with each other for millennia – because when one strips away the profit motive and the distraction that is the pursuit of wealth, everyone hates everyone, and once the money runs out and the shared prosperity ends and is replaced by the shared pain of bailing out one’s neighbor, at that point it’s just a matter of time before the time of death is declared.

END

 

CORONAVIRUS UPDATE//EUROPE//THE GLOBE///WEDNESDAY

Are European Countries Still ‘Flattening The Curve’?

Over the weekend, Russia has become the country with the second-most cumulative confirmed cases in the world after the U.S.

The country overtook Spain’s case numbers on Sunday. The global coronavirus pandemic is being contained in Western European countries, as Statista’s Katharina Buchholz shows in the infographic below, while Russia and Brazil have now confirmed more cases than many of the earlier European hot spots. Countries like Turkey or India are also on tract to produce larger outbreaks than, for example, Europe has seen.

Infographic: Russia Now Country With the Second-Most COVID-19 Cases | Statista

You will find more infographics at Statista

European countries are mostly a good way into flattening the curve of COVID-19 infections. According to numbers by Johns Hopkins collected by the website Worldometers, flattening is now very visible in Germany and France, where a total of around 176,000-180,000 cases had been recorded each, as well as in Italy (225,000 cases).

The development in the UK is, on the other hand, more worrisome. Infections have not yet shown major signs of slowing down, now making the UK the country the fifth most confirmed coronavirus cases worldwide and the second-most deaths. The U.S. is currently the country with most known infections as well as deaths and has a curve of infections which is also still pointing mostly upwards. Infections have passed 1.5 million stateside.

The countries’ collective aim is to “flatten the curve” of infections. While South Korea was able to (more or less) stabilize its outbreak at around 10,000 cases – due to widespread free testing (including the now infamous drive-thru testing), quarantine measures and the harnessing of mobile technology for public information – China has stabilized theirs at around 83,000 cases. South Korea hit 100 cases on February 20 and managed to leave the steep upward trajectory around 14 days later. In the case of China, more than 100 cases were first recorded on January 20, and quarantine and testing measure succeeded in breaking the upwards trajectory by February 12 – around three and a half weeks later. Germany began leveling its curve around six weeks into the outbreak, while France started seeing results at around seven weeks.

END

FRANCE/PARIS

More rioting by migrant youths after the death of a Muslim after a police chase

(Watson/Summit News)

Migrant Youths Riot In Paris Again, Attack Police With Fireworks

Authored by Paul Joseph Watson via Summit News,

Migrant youths rioted in Paris yet again last night, attacking police with fireworks in response to the death of of a teen motorcyclist.

The disorder began after the death of 18-year-old Sabri Choubi, who was killed after ramming into a pole while not wearing a helmet on the northern outskirts of Paris on Saturday evening.

th1an1@th1an1


Angry protests erupted in Argenteuil of after an 18-year-old motorcyclist was killed in a crash following police chase late Sunday night.

Embedded video

However, migrants in the Paris suburb of Argenteuil blamed police for the teen’s death and for the past two nights have been bombarding riot cops with fireworks and other missiles.

Victor Tassel@victor_tassel

Nouveaux incidents (très limités pour le moment) à la ZUP d’Argenteuil, après la mort de Sabri, 18 ans, ce dimanche matin, Notamment sur la dalle, proche commissariat, Feux d’artifices, départs de feux rue berionne, comme hier. @le_Parisien

Embedded video

Police responded by firing tear gas at gangs who had gathered near public housing estates before arresting six people.

Migrant youths set three cars alight, burned 20 dumpsters and apparently tried to set a local police station on fire by bombarding it with Molotov cocktails.

Sputnik France

@sputnik_fr

| Des tensions et départs de feu à suite à la mort du jeune Sabri qui s’y est tué dans un accident de motohttps://sptnkne.ws/Cy5r

Embedded video

Sputnik France

@sputnik_fr

| Grosses tensions en cours à suite au décès du jeune Sabrihttps://sptnkne.ws/Cy5r

Embedded video

Police claimed migrants were merely using Choubi’s death as an excuse to violate the country’s lockdown order and express their frustrations.

As we previously reported, areas of Paris and other departments throughout the country were hit by four nights of consecutive rioting last month following a similar incident where migrants blamed police for the accidental death of a motorcyclist.

The media described the unrest as “anti-lockdown riots,” but this disguised the true nature of what happened and the fact that migrant riots have now become commonplace in Paris and other major French cities due to unfettered mass migration and a total lack of integration.

Sputnik France

@sputnik_fr

🔴 | Deuxième nuit de tensions à Argenteuil suite au décès du jeune Sabri
Suivez ici:
▶️ https://bit.ly/3cEpL33
▶️ https://sptnkne.ws/Cy5r

View image on Twitter

Sputnik France

@sputnik_fr

| Des mortiers d’artifice utilisés lors de la deuxième nuit de tensions à https://sptnkne.ws/Cy5r

Embedded video

END
The UK joins other nations in the negative yielding debt arena.  They just issued 3.75 billion pounds of gilts with a negative yield of .003%
(zerohedge)

UK Sells Negative-Yielding Debt For The First Time

Who would have thought that Brexit would result in a convergence of the European and UK bond markets.

With the UK swept by a debate whether it should follow Europe into negative interest rates, the bond market appears to have made the decision for it, when this morning the UK sold £3.75 billion in 2023 gilts at a negative yield of -0.003% for the first time, with a fall in inflation piling even more pressure on the fiscal and monetary policymakers to take new action to prop up the economy.

The UK drew orders of £8.1bn in Wednesday’s auction resulting in a 2.15 bid to cover to the amount the DMO was looking to sell. According to the FT, “the robust demand underscored the appeal of gilts, long considered to be a haven due to the UK’s strong creditworthiness. It also suggests any fears over the large increase in borrowing the UK has undertaken due to the Covid-19 pandemic has not yet weighed on investor appetite for the debt.”

The auction comes during the growing debate into whether the BoE will need to reduce its main interest rate from its already historic low into negative territory, as policymakers attempt to bring inflation back towards the 2% target. Whatever you do, don’t look at Japan.

The negative yield means investors who hold the debt to maturity will get fractionally less than they paid, and are paying for the privilege of lending to the UK government, reflecting growing investor expectations that the Bank of England may need to take additional steps to push inflation back to its 2 per cent target. The UK sold a one-month bill at a negative yield in 2016, but this represents the first time it has sold a conventional longer term bond at yield below zero.

Moyeen Islam, rates strategist at Barclays, said the auction was a “symbolic hurdle” noting that “given recent comments from monetary policy committee members, the question of negative policy rates is far from settled.”

While other central banks have already used negative rates they have faced stinging criticism, especially from bankers since it weighs heavily on the profitability of their traditional lending operations: “I can’t think of an economy where negative rates are a worse idea than the UK,” said SocGen FX strategist Kit Juckes.  “The economic benefits are dubious but the power of a cocktail of negative rates and massive quantitative easing to weaken the currency seems clear and if the pound falls enough, it will make QE harder.”

Separately, also on Wednesday UK CPI inflation crashed below 1%, nearly halving to 0.8% last month from 1.5%, missing consensus expectations and the lowest level in almost four years.

According to Nomura, the most important reasons behind the fall were: 1) falling household energy bills, where the lower price cap in April led to a 3.6% m-o-m drop in gas bills versus a 9.2% m-o-m rise in April last year (as a result household energy took nearly 0.4pp off headline inflation between March and April), 2) the largest fall yet in petrol prices in response to lower oil prices since the start of the year (a fall of nearly 8% m-o-m versus a 2.6% m-o-m rise in April last year, taking 0.3pp off headline inflation) and 3) a regulatory-imposed reduction in household water bills (down 1.7% m-o-m compared with the April 2019 monthly rise of 2.7%). Taken together those three factors can account for pretty much the entirety of the 0.76pp decline in headline CPI inflation between March and April. Economists have warned the shock to demand caused by lockdowns could cause a wider disinflationary trend.

Against the backdrop of a protracted period of below-target inflation, and in order to preempt any liquidity disruption in bond markets associated with the exhaustion of the MPC’s existing asset purchase program, Goldman said it “continues to expect the Bank of England to announce an additional £100bn of quantitative easing at its next decision on 18 June.”

“With inflation now more than 1 percentage point below target, the governor of the Bank of England will . . . have to write a letter to the Chancellor explaining why inflation is so far below target and what he intends to do about it,” said Melanie Baker, senior economist at Royal London Asset Management. “The next step we expect to see is more asset purchases.”

*  *  *

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

ISRAEL/PALESTINIANS

Not good: the Palestinians are now calling for another intifada as Abbas ends all agreements and security cooperation with Israel and the USA

(zerohedge)

Stage Set For Intifada: PA’s Abbas Ends All Agreements & Security Cooperation With Israel & US

Everyone knew it was coming, just not when or how severe — and as we recently predicted the stage appears set for a third intifada: violence not seen since the last one ended in 2005.

Ahead of Israeli Prime Minister Benjamin Netanyahu’s annexation plans including takeover of the Jordan Valley (which makes up 20% of West Bank territory), which he earlier said had US-backing to go forward in as little as two months, Palestinian Authority President Mahmoud Abbas announced late Tuesday that all prior agreements with the United States and Israel are now null and void.

This includes any and all prior ‘security agreements’ with the state of Israel, and most alarmingly all local security arrangements and any ground-level cooperation.

 

President Mahmoud Abbas of the Palestinian Authority file image, during a prior meeting in Ramallah, via AP.

Abbas said at an emergency leadership meeting in Ramallah:

“The Palestine Liberation Organization and the State of Palestine are absolved, as of today, of all the agreements and understandings with the American and Israeli governments and of all the obligations based on these understandings and agreements, including the security ones.”

This after Netanyahu promised to move on annexing areas of Jewish settlements in the West Bank that were “agreed” to as part of Trump’s much touted ‘Deal of the Century’ first unveiled to the public earlier this year — only the Palestinian side never actually “agreed” to anything, according to prior PA statements, saying they weren’t privy to discussion or deliberations, or that ultimately Tel Aviv “sacrificed nothing”.

Axios summarizes the other crucial elements outlined in Abbas’ speech as follows:

  • Abbas said that, as the occupying power,Israel should now take the responsibility over the West Bank.
  • Abbas stressed that the Israeli plan to move ahead on annexation is a unilateral cancellation of the Oslo Accords, signed in the 1990s.
  • Abbas said the Trump administration was responsible for the crisis, and “has become complicit in the Israeli occupation.” He praised “other American stakeholders” that are more supportive of the Palestinians.
  • Abbas called on all the countries who are opposed to annexation and Trump’s peace plan to recognize Palestine as a state.

Middle East Monitor

@MiddleEastMnt

fears new ‘violent’ Intifada in West Bank due to economic set back https://www.middleeastmonitor.com/20200516-israel-fears-new-violent-intifada-in-west-bank-due-to-economic-crisis/ 

Israel fears new ‘violent’ Intifada in West Bank due to economic crisis

Israeli security officials fear an outbreak of a new ‘violent’ Intifada in the occupied West Bank due to an economic crisis that would undermine the Palestinian Authority (PA).

The only surrounding Arab state to have lately voiced what we can say comes close to a threat has been Jordan, though it should be noted that Syria and Israel have been in a state of war essentially since the Jewish state’s founding.

Abbas’ final ‘cutting off’ of all agreements with Israel is in response to PM Netanyahu’s swearing in of the new Israeli government Sunday wherein he declared “now is the time to annex the Israeli settlements in the West Bank.” The Trump plan has been previously described as “Bibi’s dream come true” and has long been seen as merely paying lip service to the Palestinians, without ceding anything of value.

The new red line ‘protest’ of the PA leadership will be nothing compared to when popular Palestinian anger and rage hits the street.The authority’s withdrawal from all security cooperation in the West Bank all but guarantees Israeli police will have a much harder time keeping control of protests and likely coming anti-occupation riots.

end
Israel/USA/China
This is a big story!!  China has invested over 14 billion dollars into Israel high tech companies.  The problem is that China is stealing some of that technology to fund Chinese devleopments.  The uSA is acting in a polite way for Israel to severe its economic ties to China
(zerohedge)

“Polite Deflection Will No Longer Cut It” – US Pressures Israel To Sever Economic Ties With China

Since President Trump fired the first volley in the US-China trade war two years ago, tensions between the US and China have intensified to unprecedented levels, and the prospect of an armed confrontation between the world’s two largest military and economic powers is becoming a tail risk worth considering, according to Wall Street luminaries like David Tepper.

Around that time, the State Department launched a quiet campaign to pressure America’s allies, including the UK, Germany and Australia, to prohibit parts made by telecoms giant Huawei in their 5G networks, as evidence of “backdoors” in other Huawei products, and Chinese companies are often required to cooperate with state intelligence agencies. For what it’s worth, Huawei has persistently denied cooperating with Beijing, and has offered to sign a “no spying” pledge. When the UK decided to allow some Huawei equipment in certain “non-essential” parts of the UK 5G network, he received a dressing-down from Trump.

Since the advent of the coronavirus, these tensions have flared to such a degree that one analyst predicted that the post-COVID-19 era would be characterized by a “super-cold war” with China. And in a report published by the Jerusalem Post on Wednesday, the paper sheds light on the behind-the-scenes pressure campaign by US Ambassador David Friedman and the State Department to push Israel and PM Benjamin Netanyahu to cut more economic ties with China, particularly ties related to ‘critical’ industries like tech and biotech.

Specifically, the US wants Israel to establish a “more comprehensive” review of incoming Chinese investment, particularly in these industries. But it’s not just new deals that the US is concerned with; rather, an anonymous official told an Israeli diplomat that they would like to see Israel “go further” with a “reduction of entanglements overall”.

Asked whether the establishment of an Israeli version of the Committee on Foreign Investment in the United States (CFIUS) would satisfy the US, the official said: “I’d go further. Reduction of entanglements overall. Elimination in critical areas altogether.”

“A CFIUS-type mechanism is a good start,” he added.

As Secretary of Defense Mike Pompeo has done in the past, the official emphasized that “this is not exclusive to Israel. We’re having similar conversations with all of our allies and partners.”

For those who aren’t familiar with CFIUS – aka the Committee on Foreign Investment in the US – it’s an agency within the Department of Commerce that has the power to block deals involving foreign entities if it rules that the deal would create risks to national security. It was briefly in the news last year when it struck down a deal for a Chinese company to buy the queer dating app Grindr.

News of the pressure campaign probably isn’t a surprise for anybody monitoring the bilateral relationship, as the quote above noted, Secretary of State Mike Pompeo has openly encouraged US partners – particularly members of the ‘Five Eyes’ intelligence alliance – to scrutinize all ties with China for national security risks.

And from here on out, if Israel values its special relationship with the US, it must be prepared to take “concrete action” to reduce its ties with China.

The Trump administration official said that Israel must be prepared to take concrete action to reduce its ties with China.
“I don’t think polite deflection will cut it anymore,” he stated. “This is a high priority for the US.”

In past meetings on the matter, “the Israeli side has politely acknowledged our concerns without committing to action,” the official based in the US recounted.

Multiple US government sources denied knowledge of an Israeli request for indemnity from the US in exchange for reducing trade ties. Army Radio reported on Tuesday that US officials declined the request, but still expect Israel to be on their side in their standoff with China.

The inspiration this ‘trial balloon’ report is hinted at toward the bottom of the article, where a recent measure adopted by Netanyahu’s office is mentioned. It’s a transparent half-measure clearly intended to placate the US with a headline, while accomplishing little of substance.

The US has repeatedly and publicly asked Israel to make its system of regulating foreign investments more comprehensive. The Prime Minister’s Office established an advisory committee on the matter last month, but its recommendations are nonbinding and regulators are not required to bring investments before the panel. In addition, investments in technology are outside its narrow mandate.

China is Israel’s third-largest trading partner, and trade between the countries grew by 402% in the past decade, reaching about $14 billion in 2018.

One industry that the US has fingered as particularly sensitive is technology, so much so that the US has been eyeing Chinese-Israeli joint academic research in the field, the source confirmed.

The US is especially concerned with the billions of dollars Chinese companies have invested in Israeli technologies that Israel has classified as commercial, but could be used by Chinese intelligence, like artificial intelligence, satellite communications and cybersecurity. Some of the technology companies investing in Israel, like Huawei and ZTE, are known to sell products with security vulnerabilities.

And while China might be the UK’s No. 3 trading partner, the No.1 and No. 2 spots are occupied by the US and its close ally, Great Britain.

To satisfy the US’s request, Israel must create a mechanism to crack down on Chinese investment in three areas, including tech…

The US is especially concerned with the billions of dollars Chinese companies have invested in Israeli technologies that Israel has classified as commercial, but could be used by Chinese intelligence, like artificial intelligence, satellite communications and cybersecurity. Some of the technology companies investing in Israel, like Huawei and ZTE, are known to sell products with security vulnerabilities.

…infrastructure (including a Chinese-involved project near the docks where the US Navy’s sixth fleet sometimes docks)…

Another one of the “critical areas,” as the official called it, that the US has pointed out to Israel is Chinese companies’ involvement in major infrastructure projects in Israel in recent years, because of the ability of Chinese operatives to gather intelligence while working on them and the massive economic, social and environmental losses, and even casualties, that could be inflicted if that infrastructure is damaged.

The best-known project of this kind is a new terminal, partially constructed and to be operated by a Chinese company next year, in the Haifa Port, where the US Navy’s sixth fleet docks at least once a year. There has also been increased attention paid to Sorek 2, planned to be the world’s largest desalination plant. Hutchison Water International, a subsidiary of a Hong Kong-based company, is one of the two finalists for the tender to operate the plant, and following US pressure Prime Minister Benjamin Netanyahu ordered Israel’s committee on foreign investments to reassess the tender.

…and – last but not least – biotech (since Beijing has shown a willingness to hoard critical supplies and medicines).

The biomedical field is also likely to be a sensitive one in the aftermath of the coronavirus crisis. A report by the RAND think tank found over $1 billion in Chinese investments in the Israeli health and biomedical sectors in 2013-2018. CFIUS monitors these kinds of investments in the US, and the EU instructed its members in April to be more cautious about foreign investments in public health companies.

But with Benjamin Netanyahu’s criminal trial in Tel Aviv just days after he swore in his fourth-consecutive Likud-led government (following the third election in a year), we suspect the PM will be preoccupied with domestic affairs for the next few months, if not longer, creating a vital opening for China.

6.Global Issues

CORONAVIRUS UPDATE//THE GLOBE/WEDNESDAY

Global COVID-19 Infections Near 5 Million As Brazil Confirms Record Daily Jump Of 17k: Live Update

Summary:

  • Russia outbreak tops 300k cases
  • Brazil reports 17k+ cases in latest record jump
  • Global COVID-19 case total nears 5 million
  • Rolls Royce cuts 9,000 jobs, largest layoffs in 30+ years
  • Afghanistan passes 8k cases
  • UN claims Africa largely ‘spared’ by coronavirus
  • Germany’s largest state reopens polls
  • German government bars foreign takeovers of German health-care firms
  • Spain makes mask wearing in enclosed spaces “compulsory”
  • UK still working out quarantine guidelines for travelers
  • Head of Japan’s virus advisory committee says 2nd wave possible before winter

* * *

For much of the last week, our coverage of the ongoing coronavirus pandemic has focused on two countries that have rapidly climbed the international rankings over the last 10 days, landing them in the top 5 worst-hit nations. They are: Russia and Brazil. After reporting ~15k cases for three straight days, Brazilian public health officials on Wednesday morning reported a staggering 17,408 new cases (case numbers are typically reported with a 24-hour delay, and don’t always reflect the true number of infections). The country has reported just below 300k cases, though some suspect the true number of infections might be as much as 4x the official number. The country has confirmed ~17,000 deaths as well.

Brazil’s outbreak has been exacerbated by President Jair Bolsonaro’s insistence that the virus is just “a little flu”, and that the only sensible approach is to simply let the disease run its course, Bolsonaro has said. Over the past 6 weeks, the Brazilian government has seen 2 health ministers resign. Meanwhile, across the country, businesses continue to reopen even as health-care systems in more-remote Amazonian states have been completely overwhelmed. Its Neighbors have closed their borders, fearing Brazilians might carry the illness across the border.

And last night, President Trump said the White House would consider banning all travelers from Brazil, after a visiting delegation from the country that included Bolsonaro nearly infected Trump and VP Pence with the virus.

Bloomberg

@business

“I don’t want people coming in here and infecting our people. I don’t want people over there sick either…Brazil is having some trouble, no question about it.”

Donald Trump says he’s considering a ban on Brazilians traveling to the U.S. https://trib.al/JWp2bEw

Embedded video

Meanwhile, the total number of coronavirus cases in Russia passed 300,000 as 8,764 new novel coronavirus infections were reported on Wednesday, taking the nationwide total to 308,705. Amazingly, this was the smallest jump in new cases in 3 weeks.

A Russian woman wears a mask

However, Russia’s leaders believe that their lockdowns and other measures are starting to work, Prime Minister Mikhail Mishustin – who took 3 weeks off to battle the virus after being infected himself – advised that restrictions should be lifted carefully in the 17 regions where lockdowns have been imposed over the coming weeks.

Dr Melita Vujnovich, the WHO’s Russia representative, claimed the outbreak in Russia had entered a “stabilization phase.” Others fear the outbreak is much larger than counted given the country’s surprisingly low death toll, which edged up to 2,972 on Wednesday, with 135 new fatalities reported in the past 24 hours.

As of ~7amET, Johns Hopkins University had counted more than 4.9 million cases of COVID-19, and more than 323,000 deaths. More than 1.7 million people have recovered.

The number of new cases reported on the day has moved higher recently thanks to Russia and Brazil, which combined now account for ~25% of new cases.

In corporate news, Rolls-Royce is cutting 1/5th of its workforce as it braces for the aviation industry disruptions caused by the coronavirus pandemic to endure for several years.

The aircraft engine maker said it would cut at least 9,000 of its 52,000 jobs in what would be its largest headcount reduction in 30 years.

As the US and Europe continue to reopen with minimal blowback, internationally, the focus has shifted toward the developing world – particularly countries in the Middle East and South America.

For example, the Guardian reported Wednesday that the number of confirmed coronavirus cases in Afghanistan had passed 8,000, as roughly 50% of tests done in a day come back positive for the 2nd straight day. The total numbers are: 8,145 cases and a death toll of 187.

So far 25,700 suspected patients have been tested. The country received 250 RNA extraction kits from the WHO on Tuesday. The northern province of Balkh exceeded Kabul in number of deaths, with three of the latest Covid-19 deaths reported in the province. Balkh has so far recorded 27 deaths and 622 cases. Four of the new deaths were reported in the eastern province of Nangarhar. The western province of Herat recorded 59 new confirmed cases. Afghanistan’s first case was recorded in Herat, where migrants from Iran are believed to have introduced the virus.

Fortunately, in Africa, the utter devastation that experts feared would hammer Africa as the world’s poorest governments confronted the virus has yet to emerge (sorry, Bill).  This low (speaking relatively) case number has “raised hopes that African countries may be spared the worst of the pandemic,” said UN Secretary-General Antonio Guterres, as he praised the “swift” response of African governments.

As Germany continues to reopen, open-air swimming pools have reopened Wednesday as virologists say they are confident chlorine in the water could kill the virus. Authorities in North-Rhine Westphalia – Germany’s largest state by population – have granted the 340 lidos in the region permission to reopen – so long as they abide by the new hygiene rules. In Berlin, swimming pools won’t reopen until next week, while other regions won’t allow them to reopen until June.

In other news, the German government gave itself new powers to block hostile foreign takeover bids for prized German health-care and pharmaceutical companies, a measure intended to protect the country’s supplies of essential health-care equipment and drugs.

After reporting fewer than 100 deaths yesterday, the Spanish government has published new compulsory guidelines on mask-wearing making the wearing of a mask while in an “enclosed space” mandatory for all people over the age of six. It also calls for masks to be worn outdoors anywhere the 2-meter social distancing protocols can’t be followed.

The British government, meanwhile, is still working on the details of how it will implement quarantine measures for people arriving in the country, according to Interior Minister Priti Patel.

“We are still developing measures, so we are not in the position to say ‘this is how it’s going to work’,” Patel said during an interview with LBC radio. “In terms of how this will work, we will be announcing this shortly,” she said, confirming only that the duration of quarantine would be 14 days.

While China continues to carry out mass testing and reimposed lockdowns in Wuhan and the northeastern province of Jilin, Indonesia on Wednesday reported 693 new cases, its largest daily jump yet, bringing its total to 19,189 – though Indonesia’s outbreak is suspected of being much larger due to the government’s initial refusal to acknowledge it. 21 additional deaths reported, taking the total to 1,242, while 4,575 people have recovered.

In Japan, infection levels have returned to their lows from late March, but the deputy head of the Japanese government’s advisory panel on the coronavirus, Shigeru Omi, warned a parliamentary committee on Wednesday that it is still possible to see a new wave of infections before winter comes.

END

7. OIL ISSUES

SAUDI ARABIA/USA

Both countries are suffering due to the low oil prices and the Coronavirus.  In the uSA oil rig counts are at their all time low and thus oil production is faltering. Saudi Arabia is suffering due to lack of income.  The uSA will also suffer as the Saudis stop their purchases of weapons

(Southfront)

 

“End Of An Era”: US Oil Rig Count & Saudi Weapons Spending Plunge To Record Lows

Via Southfront.org,

The reduction in global fuel demand has led to the fact that the number of oil rigs in the US has dropped to a historic low, Reuters reported, citing data from Baker Hughes. According to data on the week ending on May 17ththe number of rigs decreased by 35, to 339.

This is the lowest figure since 1940, when Baker Hughes began to publish relevant statistics. The reduction in the number of towers affected West Texas and the eastern part of the state of New Mexico, where the main oil and gas production in the USA is conducted. There, their number decreased to 175, which is the lowest number since 2016.

Since the beginning of the year, the number of operating rigs in the United States has declined by 52%. More than 400 installations stopped working.

The suspension of activity began in mid-March, when oil prices fell sharply after disruption of the OPEC + deal.

Analysts suggest that this process will continue in the near future. Simmons Energy suggests that 215 drilling rigs will remain in the country next year and their recovery will be very slow. For comparison: in 2019, 943 units worked in the USA.

It is expected that global consumption will drop from a record 100 million barrels per day up to 92.6 million barrels. On May 18th, the cost of a barrel of North Sea Brent was $34.51, Texas WTI – $32.13.

At the same time, this drop in crude oil prices, Saudi Arabia may be forced to reduce how much money it spends on weapons. This is significant since, Riyadh’s weapon purchases are a way to increase its influence around the world.

According to experts, Saudi Arabia may have to abandon new arms contracts and postpone already agreed arms purchases, as the kingdom is plunging into a financial crisis.

The expected delay in the conclusion of new arms deals can have long-term political consequences for a country under the rule of Crown Prince Mohammed bin Salman, who is waging a war against the Houthis in Yemen, and is losing, even with full investment.

I have no doubt: this is the end of an era. The era when the Persian Gulf had all this money is over, said Bruce Ridel, a CIA veteran and senior researcher at the Brookings Institution.

Last year, Riyadh spent about $62 billion on weapons, ranking fifth in the world in military spending.

Although this figure was lower than in 2018, it still amounted to about 8% of Saudi Arabia’s GDP. Thus, the country spent on weapons an impressive share of its wealth – more than the United States (3.4%), China (1.9%), Russia (3.9%) or India (2.4%), based on Stockholm International Peace Research Institute (SIPRI) data.

Hassan Hassan

@hxhassan

Saudi Arabia seems to be the best country at wasting its time and resources on failed endeavors, and then at denial about consequences:

“The world’s fifth largest weapons buyer is eating up its reserves – and its political clout” https://www.theguardian.com/world/2020/may/18/the-end-of-an-era-oil-price-collapse-may-force-saudis-to-rein-in-arms-spending 

‘The end of an era’: oil price collapse may force Saudis to rein in arms spending

The world’s fifth largest weapons buyer is eating up its reserves – and its political clout

theguardian.com

For decades, military spending has strengthened Riyadh’s political influence in the world:

“If Saudi Arabia were not one of the largest buyers of weapons, then probably it would be impossible to count on support devoid of criticism from the powerful Western powers. One of the outcomes of arms purchases is that you buy relationships,” said Andrew Feinstein, an expert on corruption and the global arms trade.

This economic crisis Saudi Arabia is in is characterized by three blows that it suffered:

  1. The first of them was inflicted by anunprecedented drop in oil demand on world markets, which, in turn, led to a drop in commodity prices and a reduction in the country’s income from oil.
  2. The second blow is those extraordinary measures that the state should have taken to combat the epidemic of coronavirus and which actually led to the complete cessation of trade and economic activity within the country, which ultimately led to the actual cessation of “non-oil” exports and, again, the cessation of economic growth.
  3. The third blow to the economy of Saudi Arabia is the unplanned expenses of the country, associated again with the epidemic of coronavirus, and those measures that were supposed to strengthen public confidence in the health sector.

Essentially, it would appear that the Saudi-initiated crude oil price war backfired heavily, and the two parties suffering the most from the rapid drop in prices and the on-going crisis are Washington and Riyadh.

END
Oil falls

WTI Tumbles Despite Record Drop In Cushing Stocks

After WTI’s roll from June to July, oil prices have continued their explosion higher, accelerating this morning after last night’s surprise crude draw from API. This is the fifth day higher in a row, with July WTI topping $33.50 despite vaccine expectations falling and little to no positive economic headlines. The market is clearly hope-filled…

“Demand is now clearly on its way back from extremely low levels in April,” said Bjarne Schieldrop, chief commodities analyst at SEB AB. “The direction for oil is most likely still higher from here.”

However, as Bloomberg Intelligence Energy Analyst Fernando Valle, warns, while opening of different states and increased traffic point to recovery in gasoline demandwith Latin America’s economic situation worsening, exports will be subdued and contribute to a growing glut in refined products, particularly diesel.

Let’s just hope that DOE’s official data confirms API’s exuberance-stroked draw…

API

  • Crude -4.8mm (+2.4mm exp) – biggest draw since 12/29
  • Cushing -5.0mm – a record draw
  • Gasoline -651k (-3.5mm exp)
  • Distillates +5.1mm (+3.2mm exp)

DOE

  • Crude -4.982mm (+2.4mm exp)
  • Cushing -5.587mm – a record weekly draw
  • Gasoline +2.83mm (-3.5mm exp)
  • Distillates +3.831mm (+3.2mm exp)

After 15 straight weeks of builds, the streak broke last week and this week saw crude draw even bigger (the most since 2019). Cushing saw its biggest draw on record as gasoline and distillate saw unexpected builds…

Source: Bloomberg

Cushing is pulling back away from maxing out…

Source: Bloomberg

With rig counts collapsing, US crude production continues to plunge…

Source: Bloomberg

WTI soared this morning to top $33.50 (July) and stalled after the DOE data…

“There’s a lot of optimism baked in here,” said Paul Horsnell, head of commodities research at Standard Chartered Bank. “The market has balanced by supply coming off faster than expected.”

However, reality is still a concern…

“People are still locked down and there are still a lot of people without jobs right now,” said Tariq Zahir commodity fund manager at New York-based Tyche Capital Advisors LLC.

“It’s really going to fall on the next two weeks of seeing if these states that have opened up, is there going to be an increase in cases.”

end

8 EMERGING MARKET ISSUES

Chile

Protests in Santiago as thousands are starving as they demand food.

 

(zerohedge)

“Thousands Are Starving” – Protesters Demanding Food Clash With Police In Santiago

The coronavirus hit Chile at a particularly delicate time. Back in October, the Chilean military deployed tanks and troops onto the streets of Santiago – the Chilean capital – and President Sebastian Pinera declaring a state of emergency to quell a violent uprising triggered by – of all things – a hike in metro fares (can you imagine that happening in NYC?).

Now, some of the nation’s poorest are rising up against the government again in a violent protest movement over the lack of government assistance. Specifically, food shortages have left thousands of Chileans with nothing to eat, and the mandatory closures have made it impossible for them to work or buy food.

Video of the crowds of demonstrators and clashes with police were shared by reporters on social media.

teleSUR English@telesurenglish

| Citizens protest the lack of help from ‘s government during the pandemic.

Embedded video

In a televised address last night, President Piñera pledged to get food to those in need, according to the Santiago Times, the capital’s largest English language newspaper.

Chile has more than 46,000 cases of the virus, along with 478 deaths, but a recent spike in cases and deaths prompted Piñera go impose a lockdown in and around the capital. The strict measures, which were heavily enforced, went into effect this weekend.


As the unrest swelled, dozens of Chilean lawmakers went into “preventative isolation” after being “exposed” to the virus. Meanwhile, local officials cautioned that they were caught in a “very complex situation” because of “hunger and lack of work”. In a statement, local officials said they had distributed about 2,000 aid packages but warned the central government that this fell far short of meeting demand. Piñera later pledged his government would provide 2.5 million baskets of food and other essentials over the next week or so.

“We will prioritize the most vulnerable families,” he said, describing the plan as “historic”.

Following the announcement, Santiago Mayor Felipe Guevara tweeted in Spanish and asked residents to follow the rules.

“I understand the deep anguish of millions of Chileans, thousands are starving,” he wrote.

The unrest seen yesterday isn’t unique to Chile. Across the region, Latin American governments are confronting how to stop the virus and enforce lockdowns without the financial resources to provide for workers during the lockdown. In Brazil, hundreds of people from Sao Paulo’s largest favela marched to the state governor’s palace demanding more support last week and in Colombia, citizens have been hanging red cloths outside their homes to signify hunger. Finally, in El Salvador, people have been banging pots to protest against the lockdown.

Although Santiago is one of the most prosperous cities in Latin America, a stark rich-poor divide and a growing sense of economic inequality have prompted mass protests in late 2019. Many of the demands lodged by protesters last year, from increased pensions to higher pay, remain unresolved.

Imagine what will follow when these governments confront the cost of these lockdowns and are forced to cut services even further while raising taxes?

end

INDIA/CHINA

An important read..

The entire world is very angry at China.  Could India replace China as the go to place to manufacture goods.  They are already manufacturing pharmaceuticals…they could fix their infrastructure to accommodate

(Gatestone)

India: Standing Up To China In The Post-COVID World

Authored by Vijeta Uniyal via The Gatestone Institute,

As coronavirus leaves behind a trail of human suffering and economic devastation, nations across the world have begun asking critical questions about the global pandemic. Countries are inquiring into Communist China’s handling of the pandemic, which first appeared late last year in the central Chinese city of Wuhan.

As early as January 14, China had used the World Health Organization (WHO), a United Nations agency, to spread disinformation about the human-to-human transmissibility of Covid-19, a remark that led US National Security Advisor Robert O’Brien later to call the WHO a “tool of Chinese propaganda.”

While U.S. President Donald J. Trump faced mostly undeserved, politicized criticism for questioning China’s culpability in the spread of the worldwide pandemic and his calls for an international probe into it, more and more capitals across the Western world are making similar demands.

On March 20, The Washington Post attacked President Trump for even mentioning China in context of the pandemic. “Trump has no qualms about calling coronavirus the ‘Chinese Virus.’ That’s a dangerous attitude, experts say.”

As late as the end of March, CNN was still claiming that President Trump was targeting China for “political reasons… using entrenched stereotypes and fear of the other to cast off any blame that might fall on him from this crisis.”

On May 1, however, the New York Post reported that “[m]ore US allies and other countries are joining the Trump administration’s call for an investigation into China, the World Health Organization and the origins of the deadly coronavirus pandemic.”

In the Asia-Pacific region, Australia has taken lead in asking for an international investigation into Beijing’s culpability in the spread of the pandemic. “Now, it would seem entirely reasonable and sensible that the world would want to have an independent assessment of how this all occurred, so we can learn the lessons and prevent it from happening again,” Australian Prime Minister Scott Morrison said on April 29. Australia’s demand was supported by New Zealand.

By way of response, China’s Ambassador to Australia, Cheng Jingye, threatened a boycott of Australian goods if Prime Minister Morrison’s government continued to insist on an independent investigation into the outbreak.

In Europe, Sweden took a similar stance, asking the European Union to start a probe into “the origin and spread” of the coronavirus. “When the global situation of Covid-19 is under control, it is both reasonable and important that an international, independent investigation be conducted to gain knowledge about the origin and spread of the coronavirus,” Sweden’s health minister Lena Hallengren told the nation’s parliament in a written statement on April 20.

Under threats of cutting Europe’s medical supplies, China forced the EU to water down a report exposing Beijing’s global disinformation campaign. “The European Union toned down part of a report about Chinese state-backed disinformation because it feared Beijing would retaliate by withholding medical supplies,” the Hong Kong-based newspaper South China Morning Post, citing diplomatic sources, disclosed on April 25.

China, which first covered up the outbreak of the contagion in city of Wuhan, is now running a global disinformation and intimidation campaign, trying to blame the United States or Italy for the coronavirus. So far, apparently too many countries are now aware of China’s intentions. As Mathias Döpfner, CEO of Germany’s largest publishing house, Axel Springer, argued recently in Die Welt:

“Economic relations with China might seem harmless to many Europeans today, but they could soon lead to political dependence and ultimately to the end of a free and liberal Europe… Should we make a pact with an authoritarian regime or should we work to strengthen a community of free, constitutionally governed market economies with liberal societies?… If current European and, above all, German policy on China continues, this will lead to a gradual decoupling from America and a step-by-step infiltration and subjugation by China. Economic dependence will only be the first step. Political influence will follow.”

At the moment, it is unclear if China’s charm offensive, if one could call it that, is working.

Most recently, on May 4, Sharri Markson reported on a leaked 15-page research document, obtained by Australia’s Saturday Telegraph, written by the “Five Eyes” — the intelligence services of the US, the UK, Canada Australia and New Zealand.

“It states that to the ‘endangerment of other countries’ the Chinese government covered-up news of the virus by silencing or “disappearing” doctors who spoke out, destroying evidence of it in laboratories and refusing to provide live samples to international scientists who were working on a vaccine.”

In true Orwellian fashion, top Chinese diplomats are still demanding that foreign governments rewrite the history of the coronavirus outbreak. Under President Xi Jinping’s instructions, Chinese diplomats are running a global campaign of intimidation to divert world’s attention from Beijing’s culpability in the spread of the coronavirus. Dubbed “Wolf Warrior” diplomacy, referring to a popular Chinese movie series of the same name, the strategy aims at silencing and intimidate Western governments, critical media outlets, and think tanks. The good news is that the world is finally getting a good look at the true face of China.

Chinese Foreign Minister Wang Yi telephoned his Indian counterpart, S. Jaishankar, on March 24, and suggested that India not use “China virus” to describe the Covid-19 contagion

“It’s not acceptable and detrimental to international cooperation to label the virus and stigmatise China,” Beijing’s envoy to New Delhi, Sun Weidong, said following the call.

Apparently unwilling to risk creating a problem, Indian Prime Minister Narendra Modi’s government has so far refrained from confronting China for its handling of the outbreak. To India’s credit, it did play a constructive role in combatting the global pandemic. India came to the aid of its allies by shipping large consignments of the drug hydroxychloroquine and other medical supplies to 55 countries, including the U.S., Britain, France and Israel.

While India had shown restraint, Communist China has shown little. The Chinese air force has continued its incursions into Taiwanese air space. China has also tightened its grip on artificial islands it created in the South China Sea by setting up fictitious local governments on them. These weaponized islands, fielding military facilities such as naval ports and military airfields, trample on the sovereignty of many of its maritime neighbors, including the Philippines, Vietnam, Malaysia, Brunei, and Taiwan.

The United States and rest of the Western world would do well to see the pandemic as a wake-up call and decouple their crucial and strategic sectors from dependence on China in any way. As US General Jack Keane has repeatedly warned the US, China a not a friend; “it is a predator economically, geopolitically and militarily.”

Beijing has used its status as world’s biggest manufacturer, intellectual property thief, and debt-trap lender to force governments across the world into silence over its culpability for the deadly and devastating pandemic.

In the coming post-coronavirus world order, India is well placed to challenge China’s stranglehold over global and regional supply chains. Prime Minister Modi’s “Make in India” initiative, originally envisaged to create jobs in manufacturing sector, could also position the country as an alternative destination for rerouting global supply chain needs, especially in critical sectors such pharmaceuticals, industrial manufacturing, telecommunications and information technology.

To take advantage of a post-coronavirus realignment, India would do well to upgrade its infrastructure and seriously cut its bureaucratic red tape.

Modi came to power in 2014 on promises of streamlining the bureaucracy to foster a free economy. Since he took office, India has eased the government’s red tape and opened up the country to foreign companies and investment. During his tenure, the country advanced 79 places on the global “Ease of Doing Business” survey released by the World Bank annually, from 142nd to 63rd place. The country still trails China, which, until its pandemic, ranked 31. India, however, plans to invest $1.39 trillion on a series of critical infrastructure projects, including roads, railways, digital connectivity and power sectors.

The world is eagerly looking to India and its Asia-Pacific allies, in a strong alliance with the West, to take a stand, face China’s increasing military, geopolitical and economic intimidation, and take up its historic mantle of leadership.

END

AFRICA/CORONAVIRUS UPDATE//WEDNESDAY

Africa’s COVID-19 Cases Soar Past 88,000 As ‘Coronavirus Apocalypse’ Fears Loom

By the first week of April, coronavirus cases in African topped 10,000. Now over a month later that number stands at 88,172 according to the CDC Africa dashboard.

This after a past 24-hour rise in cases by 2,538 according to the World Health Organization (WHO) Regional Office for Africa on Tuesday. Across the continent at least 2,834 people have died from COVID-19.

The outbreak first appeared in Egypt in mid-February via what’s believed sourced to foreign travelers, and has since spread to all 54 countries on the continent.

 

Image via Reuters

Last month the WHO’s regional director for Africa, Dr. Matshidiso Moeti, sounded the alarm in saying the pandemic in African looks to be potentially devastating:“COVID-19 has the potential not only to cause thousands of deaths, but to also unleash economic and social devastation,” Moeti said.

The biggest clusters appear concentrated in those regions considered the busiest hubs of international and foreign travel, such as Egypt and Morocco in the north, and South Africa at the southern tip. 

However, the African continent is still nowhere near the ‘coronavirus apocalypse’ that many predicted (considering a total population of over 1.3 billion people), including for example Bill and Melinda Gates:

In an April 10 interview with CNN, American philanthropist Melinda Gates expressed her belief that the coronavirus pandemic will have the worst impact in the developing world. She said she foresees bodies lying around in the street of African countries.

A day later, it was announced that the United States, where Gates is from, had surpassed Italy in terms of the number of dead from COVID-19.

…Clearly, despite the massive crisis the West is experiencing, some Western thought leaders continue to insist that a whole continent of 54 countries will collectively and inevitably experience apocalypse as a result of a virus outbreak. Indeed, the white gaze knows no rest, even amid a pandemic that has struck the West.

There exists a considerable difference between an informed fear and an uninformed assumption. Much of the conversation surrounding the potential impact of COVID-19 on Africa so far seems to have stemmed from the latter.

Gates is not the only one to be predicting total doom in Africa. A report released by the United Nations Economic Commission for Africa (UNECA) in April stated: “Anywhere between 300,000 and 3.3 million African people could lose their lives as a direct result of COVID-19.”

Here’s a breakdown of where the disease is concentrated on the continent based on WHO numbers reported early Tuesday:

  • South Africa has the highest number of coronavirus cases (16,433) and a death toll of 286.
  • Egypt, where 12,229 people have been infected, accounts for the majority of deaths (630).
  • Algeria has reported 7,201 cases and 555 deaths
  • Morocco has identified 6,930 coronavirus patients and recorded 192 deaths
  • Sudan has so far confirmed 2,591 cases and 105 fatalities.
  • In the sub-Saharan region, Nigeria has reported 6,175 cases and 191 deaths.
  • The country is followed by Ghana (5,735 cases and 29 deaths)
  • Cameroon (3,529 cases and 140 deaths)
  • Guinea (2,796 cases and 16 deaths)
  • Senegal (2,544 cases and 26 deaths)
  • Ivory Coast (2,119 cases and 28 fatalities)
  • DRC has seen 1,455 cases recorded and 61 deaths

Like in other parts of the world, there’s likely a huge discrepancy between confirmed numbers based on testing availability and the reality on the ground.

* * *

Africa CDC dashboard for May 18:

END

 

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

Euro/USA 1.0954 UP .0028 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS/PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /MIXED

 

 

USA/JAPAN YEN 107.57 DOWN 0.247 (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 1.2256   UP   0.0007  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3892 DOWN .0046 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  WEDNESDAY morning in Europe, the Euro ROSE BY 28 basis points, trading now ABOVE the important 1.08 level RISING to 1.0954 Last night Shanghai COMPOSITE CLOSED DOWN 14.84 POINTS OR 0.51% 

 

//Hang Sang CLOSED UP 11.82 POINTS OR 0.05%

/AUSTRALIA CLOSED UP 0,38%// EUROPEAN BOURSES ALL MIXED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL MIXED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 11.82 POINTS OR 0.05%

 

 

/SHANGHAI CLOSED DOWN 14.84 POINTS OR 0.51%

 

Australia BOURSE CLOSED UP. 38% 

 

 

Nikkei (Japan) CLOSED UP 161.70  POINTS OR 0.79%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1751.20

silver:$17.46-

Early WEDNESDAY morning USA 10 year bond yield: 0.69% !!! UP 0 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.41 UP 0  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 99.32 DOWN 5 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.75% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.00%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.72%//DOWN 0 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,63 DOWN 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 91 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.10% 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 WEDNESDAY

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

Euro/USA 1.0978  UP     .0052 or 52 basis points

USA/Japan: 107.46 DOWN .365 OR YEN UP 37  basis points/

Great Britain/USA 1.2253 DOWN .0002 POUND  DOWN 2  BASIS POINTS)

Canadian dollar UP 31 basis points to 1.3907

 

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The USA/Yuan,CNY: AT 7.0936    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1049  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.7900 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.00%

 

Your closing 10 yr US bond yield UP 0 IN basis points from TUESDAY at 0.70 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.42 UP 0 in basis points on the day

Your closing USA dollar index, 99.12 DOWN 25  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 UP 64.93  1.08%

German Dax :  CLOSED UP 148.42 POINTS OR 1.34%

 

Paris Cac CLOSED UP 38.82 POINTS 0.87%

Spain IBEX CLOSED UP 74.50 POINTS or 1.13%

Italian MIB: CLOSED UP 178.53 POINTS OR 1.05%

 

 

 

 

 

WTI Oil price; 33.22 12:00  PM  EST

Brent Oil  35.53 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    71.26  THE CROSS LOWER BY 1.17 RUBLES/DOLLAR (RUBLE HIGHER BY 117 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.47 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  33.60//

 

 

BRENT :  35.84

USA 10 YR BOND YIELD: … 0.70..down one basis point…

 

 

 

USA 30 YR BOND YIELD: 1.41..down 0 basis points..

 

 

 

 

 

EURO/USA 1.0976 ( UP 50   BASIS POINTS)

USA/JAPANESE YEN:107.56 DOWN .264 (YEN UP 26 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 99.19 DOWN 18 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2229 down 26  POINTS

 

the Turkish lira close: 6.7921

 

 

the Russian rouble 71.11   UP 1.31 Roubles against the uSA dollar.( UP 131 BASIS POINTS)

Canadian dollar:  1.3902 UP 36 BASIS pts

 

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

 

The Dow closed UP 369.04 POINTS OR 1.57%

 

NASDAQ closed UP 190.67 POINTS OR 02.08%

 


VOLATILITY INDEX:  27.97 CLOSED DOWN 2.56

LIBOR 3 MONTH DURATION: 0.374%//libor dropping like a stone

LIBOR/OIS: .314%

TED SPREAD (LIBOR VS 3 MONTH TREASURY YIELD: .257

 

USA trading today in Graph Form

Stocks, Bonds, Gold, & Oil Pop As Dollar & Crypto Drop

The mania continues…

Stocks all rallied hard today after yesterday’s brief breather, but still, just look at Small Caps and Trannies today…

Oh and because it was a Fed Minutes day, stocks had to rally!

Another test of the 2950/Fib retrace level with no solid breakout…

S&P could not break its 100DMA…

 

“Most Shorted” Stocks surge out of the gate again amid yet another squeeze…

Source: Bloomberg

FANG Stocks rallied to new highs… again…

Source: Bloomberg

Bonds were bid…

Source: Bloomberg

Gold was bid…

Silver was bid…

Silver outperformed gold once again…

Source: Bloomberg

Oil soared again…

As The dollar tumbled once again, falling to the low-end of its recent range once again…

Source: Bloomberg

Cryptos were clubbed today…

Source: Bloomberg

And finally, P/Es for tech and the broad market are back at cycle highs…

Source: Bloomberg

If the entire world economy is locked down and 325,700 die from a previously unknown virus but stocks didn’t really budge much… did it ever happen?

Source: Bloomberg

Probably nothing…

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

FOMC minutes

FOMC Minutes Show Fed Officials Mull Forward-Guidance To Battle “Tremendous Human Hardship”, Hint At Yield Curve Control

Since the somewhat snoozeworthy April 29th FOMC statement (more of whatever it takes… forever… and it’s going to be bad), The Fed has issued its semi-annual “risks” report, warning very clearly of elevated asset valuations. But that hasn’t stopped “investors” buying stocks and selling bonds…

Gold (and silver) also rallied as the dollar leaked lower since the relatively dovish (if its possible to get any more dovish) statement.

And despite The Fed’s desperate efforts to talk down the possibility of negative rates, expectations for such rates have increased since the last FOMC…

Source: Bloomberg

Realistically, given that the minutes follow a presentation on Tuesday from Chair Powell and also many officials have spoken on the record in public since the meeting, the room for new developments is small.

In fact, as Joseph Trevisani, Senior Analyst at FXStreet, argues, “discussions in the edited minutes may seem somewhat out of date as the national conversation in the almost three weeks since the meeting has rapidly moved from the revelations of the economic debacle to the apparent success of several states in reopening parts of their economies and considerations about the criteria for opening the others.”

Additionally, The Fed took the historic step of beginning purchases of ETFs invested in corporate bonds on May 12, so any discussion of that at the April meeting could be informative; and that has happened as The Fed has already wound its unlimited bond-buying program down to $6 billion of daily Treasury purchases, from a peak of $75 billion in mid-March.

Of course, we don’t truly expect any mention of the increasingly difficult-to-rationalize dichotomy between improving financial conditions (as a result of the Fed and the U.S. government’s massive stimulus) and the ongoing pain in the real economy; but it would be nice to see some rational thinking at the table. As Julian Emanuel, BTIG’s chief equity and derivatives strategist, warned, “The Fed’s Bigger Boat cannot substitute for the consumer’s need to feel safe enough to send kids to college, eat in restaurants, or get on an airplane.”

But, the minutes really focused on Federal Reserve officials’ growing distress at the economic implications of the coronavirus pandemic last month, which sent unemployment soaring and froze swaths of commercial activity.

On the virus’ impact:

Participants noted that the coronavirus outbreak was causing tremendous human and economic hardship across the United States and around the world. The virus and the measures taken to protect public health were inducing sharp declines in economic activity and a surge in job losses. “

On outcome-dependent forward guidance

“For example, the Committee could adopt outcome-based forward guidance that would specify macroeconomic outcomes – such as a certain level of the unemployment rate or of the inflation rate – that must be achieved before the Committee would consider raising the target range for the federal funds rate.”

Others favored basing forward guidance on a timeline:

“The Committee could also consider date-based forward guidance that would indicate that the target range could be raised only after a specified amount of time had elapsed. These participants noted that such explicit forms of forward guidance could help ensure that the public’s expectations regarding the future conduct of monetary policy continued to reflect the Committee’s intentions.”

Additionally, Fed officials “raised concerns that banks could come under greater stress.”

Participants were concerned that banks could come under greater stress, particularly if adverse scenarios for the spread of the pandemic and economic activity were realized, and so this sector should be monitored carefully. Participants saw risks to banks and some other financial institutions as exacerbated by high levels of indebtedness among nonfinancial corporations that prevailed before the pandemic; this indebtedness increased these firms’ risk of insolvency.

And raised questions on limiting dividends…

“A number of participants emphasized that regulators should encourage banks to prepare for possible downside scenarios by further limiting payouts to shareholders, thereby preserving loss-absorbing capital.

Indeed, historical loss models might understate losses in this context. A few participants stressed that the activities of some non-bank financial institutions presented vulnerabilities to the financial system that could worsen in the event of a protracted economic downturn and that these institutions and activities should be monitored closely.”

But the highlight appears to be the discussion that “forward guidance could be more explicit” in the context of “capping” yields at short-to-medium term maturities, i.e. imposing Yield Curve Control which the US had in the late 1940s (see the Fed-Treasury accord), which Japan has of course popularized in recent years, and which Zoltan Pozsar said is coming sooner or later:

“A few participants also noted that the balance sheet could be used to reinforce the Committee’s forward guidance regarding the path of the federal funds rate through Federal Reserve purchases of Treasury securities on a scale necessary to keep Treasury yields at short-to medium-term maturities capped at specified levels for a period of time. “

Notably no mention of negative yields.

*  *  *

Full Minutes below:

Fomc Minutes 20200429 by Zerohedge on Scribd

*  *  *

Powell simply promises to keep busy…

end

Stocks Shrug At ‘Stale’ Fed Minutes, Bonds & Bullion Bid

Stocks are modestly lower, the dollar is flat, but gold and bonds are bid after the Fed Minutes showed a nervous Fed willing to do anything and worried about banks

The main item on the agenda was the possibility of yield curve control and for now rates are lower across the curve.

end

 

ii)Market data/USA

iii) Important USA Economic Stories

Workers do not want to return to work because they are making more money not working

(zerohedge)

“They Don’t Want To Come Back To Work” – Restaurant Blames CARES Act For Labor Shortage

One of the great tragedies in America today is that of the CARES Act, which included a $1,200 stimulus check and an additional $600 weekly payment for the unemployed, has given millions of Americans their first real taste of socialism, that is the sweet taste of the forbidden fruit of free of money.

The Trump administration has unleashed helicopter money directed at households that will have severe consequences. Not too long ago, we noted how government intervention, cushioning households from an economic depression, will prolong the recovery in the labor market as people get paid more to sit at home than work and be productive in society:

“So don’t expect the unemployment rate to bounce back very much once this pandemic begins to subside.  Congress has decided to make it very financially rewarding not to work, and millions upon millions of Americans are going to be more than happy to take advantage of that opportunity for as long as it lasts.”

As Arizona’s economy reopens, one restaurant owner has blamed the CARES Act for labor shortages, even though she says the national unemployment rate is very high.

“With an unemployment rate at almost 20%, you’d think we’d have a lot of applicants coming in, but we’re not,” said Times Square Italian Restaurant owner Paullette Cano, who recently spoke with AZFamily.

Cano said the CARES Act and unemployment checks have resulted in many of her furloughed employees staying home. They collectively told her their pay from the government is much better than 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.”

At the moment, there are 30 job openings at the restaurant with dozens of furloughed employees sitting at home collecting welfare. She said rehiring is challenging because people are demanding +$20 per hour, or around the hourly rate, they’re receiving from unemployment and federal dollars.

“They’re asking for $20 an hour, which makes it difficult because we operate under slim margins,” said Cano.

 

Times Square Italian Restaurant owner Paullette Cano

If Cano develops a labor shortage with an influx of demand at her restaurant due to reopening, she might have to resort to expensive labor that would result in fewer hirings.

It’s not just in Arizona, workers in many other states can make more money staying at home than being employed.

We recently penned “When Work Is Punished: Did The ‘Generous’ CARES Act Just Guarantee High Unemployment Is Here To Stay? — where it was noted the CARES Act has the potential to create an entirely new generation of welfare serfs, subsisting on significant welfare benefits with no incentive to ‘get back to work’, even after the lockdowns are lifted. This will lead to a labor market that won’t recover anytime soon, thwarting any hopes of a V-shaped recovery this year.

The virus, to its credit, has triggered a dangerous policy response by the government of helicopter money that will effectively delay the recovery. Recently, Powell on CBS’s 60 Minutes thinks a recovery could be seen in late 2021 — what’s to say the recovery might not be seen until 2022-2024?

END

Covid 19 is unleashing huge damage to USA cities from the lockdown:  estimate $360 billion

(zerohedge)

US Cities Will Lose $360 Billion From The COVID-19 Lockdown

The coronavirus lockdown in the U.S. is going to cost cities an astounding $360 billion in revenue through 2022, according to estimates from the National League of Cities.

Pennsylvania is going to be hit the hardest, according to Bloomberg. The state is at risk of losing 40% of its total revenue this year. Not far behind are Kentucky, Hawaii, Michigan and Nevada. The projections take into account the expected rise in unemployment and assume that every 1% of unemployment will cause tax revenues to drop about 3%.

The analysis was performed by looking at how unemployment would affect specific state and city revenue streams. It combined those changes with each respective state or city’s tax structure to estimate the impact.

Bloomberg’s piece says that the states need help “from the Federal Government” to avoid drastic budget cuts, but the truth of the matter is that they need help from the Fed. The Federal Government, nobody seems to notice, is broke.

The analysis comes a day after the Fed said it may need to implement more stimulus than the $3 trillion it has already enacted. Democrats are currently proposing $1 trillion bailouts for state and local governments.

Clarence Anthony, the league’s chief executive officer, said: “If America’s cities are not provided the funds from the federal government, we won’t be a part of the economic solution. This survey, and the findings, puts a face on the impact of the pandemic and the need for city leaders to get direct funding to respond quicker than at the state level, where most of the funding has gone in the past.”

He continued: “If any communities are facing a big challenge in America, it’s the small cities that may be wiped out, not only by the pandemic and the lack of access to health care. They’re being wiped out because of the loss of jobs to the small businesses, the loss of industry, and loss of hope.”

The numbers are starting to pile up for major cities: San Francisco is expecting budget shortfalls of $3.6 billion over the next four years and Houston is facing a $169 million shortfall, causing it to furlough 3,000 workers. Houston will have to use its rainy day fund to balance its budge.

Good, that’s what a rainy day fund is for. 

Houston Mayor Sylvester Turner said:

“It’s the toughest budget we’ve had to put together since I’ve been mayor.”

Philadelphia has had to scale back its 2021 fiscal budget proposal due to a $650 million deficit that is five times larger than the deficit the city faced after the Great Recession. California announced last week it is facing a $54 billion shortfall and New Jersey said it is facing a $10.1 billion deficit.

In sum, U.S. cities will lose $134 billion in 2020, $117 billion in 2021 and $110 billion in 2022. 

“This is an unprecedented time and it’s going to take unprecedented strategies,” Anthony concluded. Yeah, like blowing up the U.S. dollar on a global scale.

It’s a bold strategy, Cotton. Let’s see if it pays off for him.

end

My goodness; Michigan is getting walloped: Now the Dow Chemical plant is being threatened with flooding after two dams broke.. The city of Midland may within a few hours be under 9 feet of water.

 

when it rains it pours..

(zerohedge)

Dow Michigan HQ Threatened With “Nine Feet Of Water” Flood After Two Dams Break

The headquarters of chemical giant Dow, which was spun off from DowDuPont last April, are threatened by flooding, prompting the company to activate its local emergency center in Michigan and implement “flood preparedness plan which includes the safe shutdown of operating units on site,” the company said on Facebook after two dams failed upstream of its Midland, Michigan, headquarters.

Dow said that “only essential Dow staff needed to monitor the situation and manage any issues as a result of the flooding remain on site.” Other companies with operations at Dow’s Midland complex include DuPont and Corteva Agriscience, according to Bloomberg which adds that the companies are working together on their response.

Michigan Governor Gretchen Whitmer, who is already managing a public health crisis in one of the states that has been hard hit by Covid-19, announced an emergency declaration in response to the dam collapse. She told people to evacuate the area around Midland, urging those in the flooding zones to get to a shelter.

“In the next 12 to 15 hours, downtown Midland could be under nine feet of water,” Whitmer said. “To go through this in the midst of a global pandemic is almost unthinkable.”

The Edenville Dam, at the base of nearby Wixom Lake, failed amid high floodwaters in the area, sending water gushing through a now-gaping hole near its spillway. A second one, the Sanford Dam at the base of Sanford Lake, had also failed, according to the National Weather Service, which issued an alert advising of “extremely dangerous flash flooding” in the area.

The Tittabawassee River that flows below those lakes, through Midland, crested at nearly 34 feet in a 1986 flood that saw Dow Chemical shutter nearly all of its local operations. Floodwaters in Midland are expected to reach nearly 4 feet higher than that on Wednesday, the Midland Daily News said.

end

Michael Snyder:  COVID 19 has destroyed the future for Americans

(Michael Snyder)

Snyder: Fear Of COVID-19 Has Absolutely Destroyed America’s Future

Authored by Michael Snyder via The End of The American Dream blog,

Very few people are talking about it, and even fewer are bothering to object, but by borrowing and spending so much money our politicians are essentially feeding America’s financial future into a wood chipper. 

It took from the founding of our country all the way to 1981 before the U.S. national debt reached one trillion dollars.  Incredibly, we just added more than a trillion dollars to our national debt in less than a month.  On April 5th, we were 23.9 trillion dollars in debt, and by May 4th we were 25 trillion dollars in debt.  Fear of the coronavirus has caused nearly all of our politicians to suddenly become socialists, and we are being told that trillions more in spending may be coming.  This is complete and utter lunacy, and we are leaving future generations of Americans with a mountain of debt that would absolutely crush them. 

But of course our society may not even last too much longer at the rate we are going.  For years I have been loudly warning that our absurd national debt is an existential threat to America’s future, but at this point both major political parties have completely abandoned any sense of fiscal responsibility.  Now our national debt is rapidly speeding toward the 26 trillion dollar mark, and the House of Representatives just passed a bill that would borrow and spend an additional 3 trillion dollars that we do not currently have…

Last week, House Democrats unveiled their latest pandemic-relief package. The bill combines aid for families, a bailout for struggling cities and states, and additional funds for testing, tracing, and hospitals. The price tag is about $3 trillion—and it comes just weeks after the president signed an economic-relief package worth about $2 trillion.

Since we are destroying the nation anyway, why don’t we make the grand total a nice round 10 trillion dollars like the progressives at the Atlantic are suggesting?

After all, we added close to 10 trillion dollars to the national debt during the Obama years and hardly anyone seemed to mind.

Of course Trump is trying to outdo Obama.  We have already added more than 5 trillion dollars to the national debt while he has been in office, and it looks like more “coronavirus relief bills” could be on the way.

Yes, borrowing and spending money that we do not have gives us an economic boost in the present.

But it is also money that we are stealing from future generations, and we are systematically destroying the bright future that they were supposed to have.

Since Barack Obama’s first day in the White House, we have been stealing an average of more than 100 million dollars from our children and our grandchildren every single hour of every single day.

And under Trump, that pace has actually increased.

I know that figure is difficult to believe, but run the numbers yourself and you will see that I am correct.

What we are doing to future generations is beyond criminal, and it should make every American deeply angry.

But instead, many Americans are convinced that we aren’t spending enough.

In fact, Mark Cuban believes that the government should be issuing $1,000 checks to each household every two weeks

The federal government has already sent a one-time check of up to $1,200 to millions of American families, but according to Mark Cuban, the stimulus is not enough to offset the economic pain of the coronavirus pandemic.

The billionaire entrepreneur proposed the government issue $1,000 checks to every American household every two weeks for the next two months, with the caveat that the money must be spent within 10 days of receipt or it expires. It would cost about $500 billion, Cuban estimated.

Everybody knows that you should never go full Weimar Republic, but since we are essentially doing that already, why not make it $10,000 for every household every two weeks?

After all, $1,000 doesn’t go as far as it once did.  These days, you can blow $1,000 in a single trip to the grocery store.

Of course I am being facetious.  We are literally watching our leaders destroy everything that all previous generations of Americans fought so hard to build, and it is absolutely infuriating.

At this point even the ultra-liberal Washington Post is admitting that “the national debt is out of control”, but of course the Post also keeps on promoting ultra-liberal spending policies.

We are like a morbidly obese guy that can’t even fit in his own bathtub anymore because he is so addicted to food.  Our addiction is debt, and no matter how loud the warnings get we are just going to keep going back for more.

Ultimately, the only way that the U.S. is going to be able to service this exploding debt is to wildly devalue the currency.  This is the road that the Weimar Republic, Venezuela and so many others have gone down, and it always ends in utter disaster.

Only this time the biggest economy on the entire planet is doing it, and the currency that we are devaluing is the reserve currency of the world.

Sadly, there is no turning back now.  Both political parties are completely committed to this course, and the mainstream media is fully behind them.  In fact, CNN insists that “now is not the time to cut back on the borrowing”.

So when will be the time to cut back on borrowing?

If we need to add trillions to the national debt to deal with a relatively minor crisis like this coronavirus pandemic, what in the world are we going to do when really bad stuff starts happening?

Last November, I was absolutely horrified when our national debt hit the 23 trillion dollar mark.  But by the time this November rolls around, we might be at the 27 or 28 trillion dollar mark.

Unfortunately, we throw the word “trillion” around so much these days that most Americans don’t even realize how much money a trillion dollars actually is.

If you would have been spending a million dollars every single day since Jesus was born, you still would not have spent a trillion dollars by now.

We are talking about an amount of money that is absolutely unimaginable, and we just added that much money to the national debt in less than a month.

Thanks to our free spending politicians and everyone that is supporting them, there is now no future for this country.

We are literally committing national suicide in front of the whole world, but we are so utterly consumed by our addiction that we don’t even realize that we should be deeply ashamed of ourselves.

end

Pompeo goes on the warpath in a press conference as he slams Tedros and the fired Inspector General Linnik ( an Obama appointee)

He should clean house of all Obama holdovers

(zerohedge)

 

Pompeo Presser: Slams WHO’s Tedros Over “Unusually Close” Ties To Beijing, Addresses Controversy Over Fired IG

US Secretary of State Mike Pompeo railed against China again over its early failures and coverup of the COVID-19 outbreak, and criticized World Health Organization Director-General Tedros Adhanom for his “unusually close” ties to Beijing which predate the pandemic.

Speaking with reporters on Wednesday, Pompeo said that “The Chinese communist party’s response to the COVID-19 outbreak in Wuhan have accelerated our more realistic understanding of communist China. The party chose to destroy live virus samples instead of sharing, or asking us to help secure them.”

“The Chinese communist party chose to threaten Australia with economic retribution for the simple act of asking for an independent inquiry into the origins of the virus,” Pompeo continued, adding “That’s not right.”

“We stand with Australia and the more than 120 nations who have taken up the American goal for an inquiry into the origins of the virus so we can understand what went wrong, and save lives now and in the future.”

Pompeo then turned his attention to WHO director Tedros Adhanom, who he says was pressured by China into excluding Taiwan from the World Health Assembly in Geneva.

“I understand that Dr. Tedros’ unusually close ties to Beijing started long before this pandemic, and that’s deeply troubling.”

JM Rieger

@RiegerReport

POMPEO: “The media’s focus on the current pandemic risks missing the bigger picture of the challenges presented by the Chinese Community Party.”

Live updates: https://www.washingtonpost.com/nation/2020/05/20/coronavirus-update-us/ 

Embedded video

On Wednesday, President Trump tweeted that China’s “incompetence” was responsible for “this mass Worldwide killing!

Donald J. Trump

@realDonaldTrump

Some wacko in China just released a statement blaming everybody other than China for the Virus which has now killed hundreds of thousands of people. Please explain to this dope that it was the “incompetence of China”, and nothing else, that did this mass Worldwide killing!

Pompeo also slammed Democrats for investigating him after he recommended the firing of State Department Inspector General Steve Linick.

“This is all coming through the office of Senator Menendez,” said Pompeo, adding “I don’t get my ethics guidance from a man who was criminally prosecuted.”

Menendez (D-NJ) was indicted in 2015 for his alleged role in a bribery scheme in which he accepted gifts from a Florida ophthalmologist in exchange for using his office to benefit the physician’s financial and personal interest. The DOJ eventually dropped the case against Menendez and the charges were dismissed in 2018.

Pompeo added that he should have recommended Linick’s firing “some time ago,” and denied that it was in retaliation for reportedly investigating him.

“There are claims that this was for retaliation for some investigation that the inspector general’s office here was engaged in. Patently false,” said Pompeo.

“I couldn’t possibly have retaliated for all the things — I’ve seen the various stories that someone was walking my dog to sell arms to my dry cleaner,” he added. “I mean, it’s just crazy. It’s all it’s all it’s all crazy stuff.”

.@SecPompeo: “I recommended to the president that Steve Linick be terminated. Frankly, should have done it some time ago…I don’t talk about personnel matters. I don’t leak to you all…there are claims that this was for retaliation…it’s patently false…it’s all crazy stuff.”

Embedded video

Trump said in a letter to House Speaker Nancy Pelosi, D-Calif., on Friday night that he lost “confidence” in the watchdog, without providing further explanation.

Pompeo also did not provide a more detailed explanation for the firing when asked at the briefing.

“The president has a unilateral right to choose who he wants to be his inspector general at every agency in the federal government,” Pompeo said. Some Republicans, including Iowa Sen. Chuck Grassley, have said that a lack of confidence is an insufficient explanation for firing the inspector general. –CNBC

According to House Foreign Affairs Committee Chairman Eliot Engel (D-NY), Linick had opened an investigation into alleged wrongdoing by Pompeo – who a Democratic aide told NBC may have misused “a political appointee at the Department to perform personal tasks for himself and Mrs. Pompeo,” which included walking his dog, picking up dry cleaning and making dinner reservations.

END
Somebody big is dumping a massive amount of Real estate ETF’s…they are expecting big trouble in this industry.
(zerohedge)

“Somebody Is Dumping Everything”: Mystery Investor Pukes $333M In Real Estate ETF In Dark Pool Trade

Post-coronavirus pandemic, nobody really knows what the real estate market will look like. Will people travel less? Will we work from home more often? Will commercial and residential real estate be able to keep their respective bids once current leases run out?

We’ve found at least one investor who doesn’t want to stick around and find out.

One “mystery investor” blew out more than 10.5 million shares of an S&P 500 Real Estate fund last week, representing a $333 million sale. This amounts to about 7.4% of outstanding shares in the Real Estate Select Sector SPDR Fund, a macro indicator of the industry’s largest companies, according to The Real Deal.

One anonymous investor commented: “That is obscene. It would be like Warren Buffett selling Delta all at once. A very large institution is expecting widespread weakness across the real estate market, more so than is already perceived.”

The fund trades under the symbol XLRE and includes holdings like Prologis and Equity Residential and AvalonBay Communities. At least half of its shareholders are institutional investors, including names like BlackRock and Merrill Lynch, TRD notes.

The trade was made on one of the 53 dark pools registered with the SEC, which is probably why it escaped investor scrutiny when it happened. Per regulations, dark pools only have to report the transaction as it happened and not the names of the parties involved in buying and selling. To that end, the seller remains a mystery.

The trade was confirmed, however, by Stefanie Kammerman, a former trader at Schonfeld Securities, from a dark-pool data feed. She said the shares were sold below the market price and that about 20 minutes before the trade, another entity sold 991,700 shares of the XLRE at the same price in a similar transaction. The ETF, meanwhile, was up about 5% on the day.

“It’s very odd there’s anything big on [XLRE],” she commented about the trade. “It looks like somebody’s dumping everything in my opinion. There’s something very big going on.”

iv) Swamp commentaries)

Newly released documents (declassified) shows that the Treasury department and others spied on Flynn, Manafort and the Trump family.

(zerohedge)

“This Was Some Shady Stuff”: Treasury Department Spied On Flynn, Manafort And Trump Family

The US Treasury Department was regularly spying on Lt. Gen. Michael T. Flynn, Paul Manafort Jr., senior staffers on the 2016 Trump campaign, members of the Trump family, and congressional lawmakers, according to The Tennessee Star‘s Neil W. McCabe.

“I started seeing things that were not correct, so I did my own little investigation, because I wanted to make sure what I was seeing was correct,” a former senior Treasury Department official and veteran of the intelligence community told McCabe. “You never want to draw attention to something if there is not anything there,” she added.

The whistleblower said she only saw metadata, that is names and dates when the general’s financial records were accessed. “I never saw what they saw.”

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.

“When I showed it to her, what she said, ‘Oh, sh%t!’ and I knew right then and there that I was right – this was some shady stuff,” the whistleblower said.

“It wasn’t just him,” the whistleblower said. “They were targeting other U.S. citizens, as well.” –The Tennessee Star

“Another thing they would do is take targeted names from a certain database – I cannot name, but you can guess – and they were going over to an unclassified database and they were running those names in the unclassified database,” she added.

The scheme allowed the perpetrators to circumvent classified avenues to surveil Americans. Once enough information had been gathered against a target, they would use a different type of search.

In March 2017, the whistleblower filed a complaint with Acting Treasury Inspector General Richard K. Delmar, who never followed up on the matter despite acknowledging receipt of the complaint. Prior to that, she filed an August 2016 notification which was rejected as it didn’t meet the requirements of a formal complaint.

In May 2017, she filed another complaint with the Office of Special Counsel.

This surveillance program was run out of Treasury’s Office of Intelligence Analysis, which was then under the leadership of S. Leslie Ireland. Ireland came to OIA in 2010 after a long tenure at the Central Intelligence Agency and a one-year stint as Obama’s daily in-person intelligence briefer.

The whistleblower said Treasury should never have been part of the unmasking of Flynn, because its surveillance operation was off-the-books. That is to say, the Justice Department never gave the required approval to the Treasury program, and so there were no guidelines, approvals nor reports that would be associated with a DOJ-sanctioned domestic surveillance operation. –The Tennessee Star

“Accessing this information without approved and signed attorney general guidelines would violate U.S. persons constitutional rights and civil liberties,” said the whistleblower, adding “IC agencies have to adhere to Executive Order 12333, or as it is known in the community: E.O. 12-Triple-Three. Just because OIA does not have signed guidelines does not give them the power or right to operate as they want, if you want information on a U.S. person then work with the FBI on a Title III, if it is a U.S. person involved with a foreign entity then follow the correct process for a FISA, but without signed AG guidelines you cannot even get started.”

 

end
More trouble for Biden and his son…

Ukraine Judge Orders Joe Biden Listed As Alleged Perpetrator Of Crime In Prosecutor’s Firing

Authored by John Solomon via JustTheNews.com,

The infamous story of Joe Biden’s effort to force the firing of Ukraine’s chief prosecutor in 2016 has taken a new legal twist in Kiev, just as the former vice president is sewing up the 2020 Democratic presidential nomination in America.

In Kiev late last month, District Court Judge S. V. Vovk ordered the country’s law enforcement services to formally list the fired prosecutor, Victor Shokin, as the victim of an alleged crime by the former U.S. vice president, according to an official English translation of the ruling obtained by Just the News.

The court had previously ordered the Prosecutor General’s Office and the State Bureau of Investigations in February to investigate Shokin’s claim that he was fired in spring 2016 under pressure from Biden because he was investigating Burisma Holdings, the natural gas company where Biden’s son Hunter worked.

The court ruled then that there was adequate evidence to investigate Shokin’s claim that Biden’s pressure on then-President Petro Poroshenko, including a threat to withhold $1 billion in U.S. loan guarantees, amounted to unlawful interference in Shokin’s work as Ukraine’s chief prosecutor.

But when law enforcement agencies opened the probe they refused to name Biden as the alleged perpetrator of the crime, instead listing the potential defendant as an unnamed American.

Vovk ruled that anonymous listing was improper and ordered the law enforcement agencies to formally name Biden as the accused perpetrator.

The ruling orders “a competent person of the Office of the Prosecutor General of Ukraine who conducts procedural management in criminal proceedings No. 62020000000000236 dated February 24, 2020 to enter information into the Unified register of pre-trial investigations … a summary of facts that may indicate the commission of a criminal offense under Paragraph 2 of Article 343 of the Criminal procedure code of Ukraine on criminal proceedings No. 62020000000000236 dated February 24, 2020, namely: information on interference in the activities of the former Prosecutor General of Ukraine Shokin, Viktor Mykolaiovych performed by citizen of the United States of America Joseph Biden, former U.S. Vice President.”

The judge added, “the order of the court may not be appealed.”

Shokin’s attorney, Oleksandr Ivanovych Teleshetskyi, confirmed the ruling to Just the News but said Ukraine officials have not yet complied.

“Viktor Shokin publicly appealed to the president of Ukraine with a request to properly respond to illegal inaction in the investigation of criminal cases that are open against Joseph Biden,” Teleshetskyi said. “Let me remind you that they were discovered precisely as a result of the statement of Viktor Shokin.”

The Biden-Shokin saga has dominated headlines for more than a year, and played a central role in the Democrat-led impeachment proceedings that ended earlier this year with President Trump’s acquittal in the Senate.

Biden has admitted on videotape he forced then-Ukraine President Poroshenko to fire Shokin in March 2016 by threatening to withhold $1 billion in U.S. loan guarantees. But Biden has steadfastly denied Shokin’s firing was due to the Burisma case. Instead, Biden said, he and other Western leaders believed Shokin was ineffective as a corruption fighter.

Shokin, however, has alleged in a court affidavit he was told he was fired because he refused to stand down his investigation of alleged corruption by Burisma and after he planned to call Hunter Biden as a witness to question him about millions of dollars in payments his American firm received from the Ukraine gas company.

Shokin has also disputed Democrats’ claims he was fired because he was incompetent or corrupt, producing among other pieces of evidence a letter from the U.S. State Department in summer 2015 that praised his anti-corruption plan as Ukraine’s chief prosecutor.

While the Biden-Shokin factual dispute remains unresolved, the impeachment trial last year generated testimony from State Department witnesses who said they believed Hunter Biden’s role at Burisma while his father oversaw U.S.-Ukraine policy created an uncomfortable appearance of a conflict of interest.

Both Bidens have denied wrongdoing but acknowledged they wished they had handled the matter differently.

Shokin’s continued pursuit of a case in the Ukraine courts could prompt new disclosures this summer as Biden readies for the fall election against Trump.

On Tuesday, a Ukraine parliamentary member released what he said were excerpts of phone calls between Poroshenko and Biden discussing Shokin’s firing, but neither man has confirmed their authenticity yet.

In an interview, Shokin told Just the News he is confident he can unearth evidence during the proceedings that Ukraine officials were satisfied with his performance and simply acceded to firing him to avoid losing the badly needed U.S. loan guarantees.

*  *  *

Full Brief below…

UkraineCourtRulingEngTransl… by Zerohedge on Scribd

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

Fed’s Powell Keeps Brushing off Fiscal Policy Questions – Dow Jones

Fed Chairman Powell has been repeatedly asked to weigh in on government support actions to help the economy navigate the coronavirus crisis.  So far, the central bank chief has brushed back requests for him to give guidance about specific actions…

Powell comments

The US faces it biggest economic shock in living memory [Powell distributes the red pill]

He doesn’t see inflation of financial stability issues from the surge in the Fed’s balance sheet

The balance sheet can be shrunk in coming years.  [Pure BS – Powell tried to shrink the Fed balance sheet in late 2018 and stocks collapsed 20% in Q4.]

There is a limit to the size of the Fed balance sheet but he didn’t quantify it

Fed programs are designed to be a backstop to the markets [More BS]

The WSJ’s @NickTimiraos: Fed lending tensions, in a nutshell, at this hearing

Sen. Tim Scott to Powell: Why aren’t you doing more to help CMBS?

Sen. Ben Sasse to Powell, minutes later: Why are you taking so much risk on CMBS?

      Powell says he doesn’t want to weigh in on direct aid to states but he says he will “just echo” that one in seven workers are employed by state or local governments.

      Powell is reminding lawmakers that these are loans, not grants and is encouraging lawmakers to spend more. Sen. Mark Warner said he pushed Powell initially for a forgivable loan option but the Fed doesn’t make loans this way.

     If the goal is to get repaid, then some policy makers worry the Fed won’t risk enough money

    This is a key question: Should lending programs be used to keep businesses commercially viable during periods of very steep revenue losses, or should lending programs serve as a way to maintain payrolls above all else?

Powell, Mnuchin testify on coronavirus relief: live blog

https://www.marketwatch.com/story/powell-mnuchin-testify-on-coronavirus-relief-llive-blog-2020-05-19

The standard rally into the European close, another ingrained trading pattern, arrived on schedule.  Minutes after the European close, stocks rolled over and then went inert until the late manipulation commenced.  It failed 11 minutes before the final hour.  ESMs tanked 25 handles in 11 minutes on this:

Vaccine experts say Moderna didn’t produce data critical to assessing Covid-19 vaccine

Several vaccine experts asked by STAT concluded that, based on the information made available by the Cambridge, Mass.-based company, there’s really no way to know how impressive — or not — the vaccine may be.  While Moderna blitzed the media, it revealed very little information — and most of what it did disclose were words, not data. That’s important: If you ask scientists to read a journal article, they will scour data tables, not corporate statements. With science, numbers speak much louder than words…

    Later, the statement indicated that eight volunteers — four each from the 25-microgram and 100-microgram arms — developed neutralizing antibodies. Of the two types, these are the ones you’d really want to see.  We don’t know results from the other 37 trial participants…

https://www.statnews.com/2020/05/19/vaccine-experts-say-moderna-didnt-produce-data-critical-to-assessing-covid-19-vaccine/

We noted in Tuesday’s missive that the manic short covering and panic buying on Monday was due to Moderna’s trial results on 8 people.  The financial markets have become abjectly stupid and irrational.  Will the SEC investigate Moderna for releasing the results before its secondary after Monday’s close?

If Walmart cannot formulate a reasonable forecast of the US economy, parochial academics at the Fed have a lower chance to guestimate the US economy.

Pier 1 Imports to close all 540 stores after 58 years    https://trib.al/PetgjaW

Soaring nursing home coronavirus deaths don’t match official NY state tallies

At the 268-bed Cypress Garden Center for Nursing and Rehabilitation in Flushing, 76 patients died from March 1 through May 2, including 68 in April alone, according to internal documents seen by The Post.

Staffers say NYC nursing home is covering up coronavirus deaths.  The state tally is just seven deaths

     Deaths also soared at the 588-bed Cold Spring Hills Center for Nursing and Rehabilitation in Woodbury. The number of residents who died jumped from 24 in March to 80 in April and 11 through May 8 — a total of 115 fatalities, documents show.  The official state tally: 23…

https://nypost.com/2020/05/16/nursing-home-coronavirus-deaths-dont-match-official-ny-state-tallies/

New York Started Undercounting Nursing Home Resident Deaths after Cuomo Faced Scrutiny

https://dailycaller.com/2020/05/19/andrew-cuomo-coronavirus-new-york-undercounting-nursing-home-fatalities-timeline/

Wisconsin governor says he’s giving up on pushing for new coronavirus restrictions because GOP won’t allow it – the Wisconsin Supreme Court last week struck down his “safer at home” order for overstepping its authority… https://www.foxnews.com/politics/wisconsin-governor-giving-up-coronavirus-restrictions-push-republicans

The movement to replace Joe Biden on the Dem ticket accelerated on Tuesday.

AUDIO Released of JOE BIDEN Pressuring Ukrainian President Poroshenko to FIRE VIKTOR SHOKIN Who Was Investigating His Son! [Team Trump would hold this until October.]

Joe Biden — (14:30 minute mark from November 2016 call) Congratulations in getting the new Prosecutor General. I know there’s a lot more to that. I really think that’s good. It is going to be critical that he works to repair the damage of Shokin. I’m a man of my word. Now that the new prosecutor general is in place we’re ready to move forward to signing the one billion dollar loan guarantee. And I don’t know how you want to go about that…  I’ll leave it to you to how you want it done and where you want it done… Joe Biden tells Poroshenko: We will help you get the vote… Let me ask you one thing before I forget, Privatbank… This is getting very, very close. What I don’t want to have happen. I don’t want Trump to get into *** where he thinks he’s about to buy into a situation… where it is about to collapse where he is going to pour more money into Ukraine… So anything you can do to push the Privatbank to closure so that the IMF loan comes forward I stress this is critical to your economic and national security…    https://www.thegatewaypundit.com/2020/05/breaking-audio-released-joe-biden-pressuring-ukrainian-president-poroshenko-fire-viktor-shokin-investigating-son/

Dem Rep (Ohio) Tim Ryan Says He Doesn’t Think Biden Has Energy to Defeat Trump

Ryan plans to stay in race even though he didn’t make debate

    “I just think Biden is declining,” Ryan said of the Democratic presidential campaign’s front-runner during a phone call. “I don’t think he has the energy. You see it almost daily. And I love the guy.”… https://www.bloomberg.com/news/articles/2019-09-06/tim-ryan-says-he-doesn-t-think-biden-has-energy-to-defeat-trump?sref=ohmtMHdW

The MSM & Dems have slammed Trump for promoting hydroxychloroquine.  After DJT said he is taking HCQ plus zinc as a prophylactic, the MSM & Dems are in meltdown.  This is truly TDS at its worst.

Hydroxychloroquine Has about 90 Percent Chance of Helping COVID-19 Patients – AAPS

The Association of American Physicians and Surgeons (AAPS) presents a frequently updated table of studies that report results of treating COVID-19 with the anti-malaria drugs chloroquine (CQ) and hydroxychloroquine (HCQ, Plaquenil®)… Peer-reviewed studies published from January through April 20, 2020, provide clear and convincing evidence that HCQ may be beneficial in COVID-19, especially when used early, states AAPS…   https://aapsonline.org/hcq-90-percent-chance/

Dawn Michael, PhD @SexCounseling: Almost every person over the past 40 years that has traveled to Africa has taken HCQ, and all of a sudden it’s a deadly drug?

Dr. Fauci Cheered Hydroxychloroquine Success Treating MERS Coronavirus in 2013… But Today He’s Skeptical… That’s Weird?     https://www.thegatewaypundit.com/2020/04/wow-dr-fauci-cheered-hydroxychloroquine-success-treating-mers-coronavirus-2013-today-skeptical-weird/

Senate Democratic leader Chuck Schumer condemned President Trump for saying he is taking hydroxychloroquine as a preventive medicine against the coronavirus despite medical warnings about the use of the malaria drug   https://reut.rs/2LHrVTJ

Declassified Susan Rice Email Confirms Michael Flynn Was Personally Targeted In Oval Office Meeting – On Jan. 20, 2017, as President Donald Trump was being inaugurated, former White House National Security Adviser Susan Rice sent herself a bizarre email detailing the Jan. 5 meeting between her, Obama, then-Vice President Joe Biden, then-Deputy Attorney General Sally Yates, and fired former Federal Bureau of Investigations Director James Comey. 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…

https://thefederalist.com/2020/05/19/breaking-declassified-susan-rice-email-confirms-michael-flynn-was-personally-targeted-in-oval-office-meeting/

@rising_serpent: Anyone else find it suspicious that Susan Rice [Benghazi video liar] took15 days to write a one page email to herself at 12:15 p.m. on the last day of the Obama administration in which she repeated “by the book” 3 times while everyone in Obama administration was unmasking Flynn?

I do not talk to FBI directors about pending investigations.” –  Barack Obama    April 10, 2016

https://www.foxnews.com/transcript/exclusive-president-barack-obama-on-fox-news-sunday

Well that is all for today

I will see you THURSDAY night.

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