MAY 21//RAID ON GOLD//SILVER AS WE APPROACH COMEX OPTIONS EXPIRY//GOLD DOWN $26.40 TO $1723.20//SILVER DOWN 50 CENTS TO $17.01//CORONAVIRUS UPDATES FOR TODAY//CHINA VS USA: CHINA CRACKS DOWN HARD ON HONG KONG AND TRUMP//SENATORS RESPOND//MICHAEL EVERY..IMPORTANT READ..

GOLD:$1723.20  DOWN $26.40   The quote is London spot price

 

 

 

 

 

Silver:$17.01  DOWN 50 CENTS (London spot closing price

COMEX OPTIONS EXPIRY TUESDAY MAY 26

OTC/LBMA OPTIONS EXPIRY FRIDAY MAY 29

 

The reason for the raid today is the comex expiry this coming Tuesday.

Expect gold/silver to be subdued in price until after first day notice.

Closing access prices:  London spot

 

 

i)Gold : $1727.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.11//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

MAY COMEX GOLD:  XXX

 

JUNE GOLD:  $1723.20  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $0.//PREMIUMS WENT UP AGAIN

 

CLOSING SILVER FUTURE MONTH

 

SILVER JUNE COMEX CLOSE;   $17.32…1:30 PM.//SPREAD SPOT/(LONDON) VS FUTURE JUNE:  31 CENTS  PER OZ//PREMIUMS UP AGAIN//HUGE DIFFERENCE

JULY: 1:30 PM:                          $1738//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      38 CENTS PER OZ//

 

 

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

If one is to buy gold and or gold coins, the price is around $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:  1/13

EXCHANGE: COMEX
CONTRACT: MAY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,750.600000000 USD
INTENT DATE: 05/20/2020 DELIVERY DATE: 05/22/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
118 H MACQUARIE FUT 6
661 C JP MORGAN 1
690 C ABN AMRO 4
737 C ADVANTAGE 6 2
800 C MAREX SPEC 7
____________________________________________________________________________________________

TOTAL: 13 13
MONTH TO DATE: 9,822

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 13 NOTICE(S) FOR 1300 OZ (0.0404 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  9822 NOTICES FOR 982200 OZ  (30.550 TONNES)

 

 

SILVER

 

FOR MAY

 

 

2 NOTICE(S) FILED TODAY FOR  10,000  OZ/

total number of notices filed so far this month: 8910 for 44,550,000 oz

 

BITCOIN MORNING QUOTE  $9087 DOWN 444 

 

BITCOIN AFTERNOON QUOTE.: $9515 DOWN 258

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $26.70 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 

NO CHANGES IN GOLD INVENTORY AT THE GLD:

 

 

GLD: 1,112.78 TONNES OF GOLD//

 

WITH SILVER DOWN 50 CENTS TODAY: AND WITH NO SILVER AROUND

ANOTHER HUGE 7.923 MILLION OZ DEPOSIT//WHAT FRAUDSTERS!!

RESTING SLV INVENTORY TONIGHT:

 

SLV: 457.681  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE  BY A STRONG SIZED 3364 CONTRACTS FROM 151,890 UP TO 155,360 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH  OUR VERY GOOD 11 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 FAIR 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 4130 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: 660  AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  660 CONTRACTS. WITH THE TRANSFER OF 660 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 660 EFP CONTRACTS TRANSLATES INTO 3.30 MILLION OZ  ACCOMPANYING:

1.THE 11 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

45.330 MILLION OZ INITIALLY STANDING FOR MAY

 

WEDNESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 11 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 4024 CONTRACTS OR 20.120 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:

10,908 CONTRACTS (FOR 15 TRADING DAYS TOTAL 10,908 CONTRACTS) OR 54.54 MILLION OZ: (AVERAGE PER DAY: 727 CONTRACTS OR 3.636 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 54.54 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 7.79% 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:          1,043.40 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:                   54.54 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 3364, WITH OUR GOOD 11 CENT GAIN IN SILVER PRICING AT THE COMEX ///WEDNESDAY THE CME NOTIFIED US THAT WE HAD A FAIR SIZED EFP ISSUANCE OF 660 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  4024 CONTRACTS (WITH OUR 11 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 660 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED INCREASE OF 3364 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A HUGE 11 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.52 // WEDNESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

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

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 2 NOTICE(S) FOR  10,000 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  45.330 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 4808 CONTRACTS TO 533,013 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 $7.20 /// COMEX GOLD TRADING// WEDNESDAY// WE  HAD STRONG BANKER SHORT COVERING , A STRONG SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A GOOD  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR 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 5378 CONTRACTS  (16.73 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 570 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 0. MAY: 0, AND JUNE 570.; AUG 0 AND ALL OTHER MONTHS ZERO//TOTAL: 570.  The NEW COMEX OI for the gold complex rests at 533,013. 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 5378 CONTRACTS: 4808 CONTRACTS INCREASED AT THE COMEXAND 570 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 5378 CONTRACTS OR 16.73 TONNES. WEDNESDAY, WE HAD A GAIN OF $7.20 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A VERY STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 16.73 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 $7.20).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  (570) ACCOMPANYING THE CONSIDERABLE SIZED GAIN IN COMEX OI  (4808 OI): TOTAL GAIN IN THE TWO EXCHANGES:  5378 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)A GOOD INCREASE 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//WEDNESDAY

 

SPREADING OPERATIONS

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO GOLD…..

SPREADING OPERATION FOR OUR NEWCOMERS:

WE HAVE NOW COMMENCED IN SILVER THE ILLEGAL SPREADING OPERATION \ FOR NEWCOMERS, HERE ARE THE DETAILS:

 

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

 

 

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

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

 

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

 

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

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

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

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

 

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

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 43,691 CONTRACTS OR 4,369,100 oz OR 135.89 TONNES (15 TRADING DAYS AND THUS AVERAGING: 2912 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 15 TRADING DAY(S) IN  TONNES: 135.89 TONNES

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

THUS EFP TRANSFERS REPRESENTS 135.90/3550 x 100% TONNES =3.95% 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   2702.24  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:                     140.33 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 3364 CONTRACTS FROM 151,890 UP TO 155,254 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 FAIR 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 660 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: 660 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 660 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 3364 CONTRACTS TO THE 660 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  STRONG GAIN OF 4024 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 20.12 MILLION  OZ!!! OCCURRED WITH THE 11 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 11 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// WEDNESDAY. WE ALSO HAD A SMALL SIZED 660 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

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

(report Harvey)

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 15.81 POINTS OR 0.35%  //Hang Sang CLOSED DOWN 119.92 POINTS OR 0.49%   /The Nikkei closed DOWN 42.84 POINTS OR 0.21%//Australia’s all ordinaires CLOSED DOWN .34%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1039 /Oil UP TO 34.26 dollars per barrel for WTI and 36.49 for Brent. Stocks in Europe OPENED MOSTLY RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1039 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1119 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 4808 CONTRACTS TO 532,709 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 $7.20 IN GOLD PRICING /WEDNESDAY’S COMEX TRADING//). WE ALSO HAD A FAIR EFP ISSUANCE (2294 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 5378 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 570 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 0, MAY: 0  JUNE : 570 AND 0 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 570 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:  5378TOTAL CONTRACTS IN THAT 570 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED 4804 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 $7.20)AND, THEY WERE  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A CONSIDERABLE 16.73 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 5378 CONTRACTS OR 537800 OZ OR 16.73 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:  533,013 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 53.30 MILLION OZ/32,150 OZ PER TONNE =  1657 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1657/2200 OR 75.33% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 277,143 contracts//volume higher than normal

CONFIRMED COMEX VOL. FOR YESTERDAY228,640 contracts// volume still very low

MAY 21 /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 192,745.249 oz

Brinks

 

 

 

Deposits to the Customer Inventory, in oz 96,485.151

OZ

HSBC

 

 

No of oz served (contracts) today
13 notice(s)
 1300 OZ
(0.0404 TONNES)
No of oz to be served (notices)
515 contracts
(51500 oz)
1.601 TONNES
Total monthly oz gold served (contracts) so far this month
9822 notices
982200 OZ
30.550 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

We had 1 deposits into the dealer

I) Into Brinks: 192,745.249 oz

 

 

 

total dealer deposits:  192,745.249 oz

 

total dealer withdrawals: nil oz

we had 1 deposits into the customer account

 

i) HSBC: 96,485.151 oz

 

 

 

 

total deposits: 96,485.151    oz

 

 

we had 0 gold withdrawals from the customer account:

 

 

 

 

 

 

 

 

total gold withdrawals;  nil   oz

We had 3  kilobar transactions  +

 

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

 

 

 

 

ADJUSTMENTS: 5 //    

 

customer to dealer account

From Brinks   32,279.600 oz (1004 kilobars)

From Malca:  96,460.1 oz (3000 kilobars)

 

total kilobars:  4,004//customer to dealer

 

dealer to customer account:

i) From International Delaware:   3,279.40 oz  ( 102 kilobars)

ii) From Manfra:  870.205 oz

iii) Scotia:  100.04 oz

total kilobars dealer to customer; 102

 

 

 

 

 

 

 

 

The front month of May registered a LARGE total of 528 oi contracts for a LOSS of 288 contracts. We had 303 notices filed upon yesterday so we gained 15 contracts or an additional 1500 oz will  stand as these guys refused to  morph into London based forwards and thus negated a fiat bonus

The next delivery month after May is the huge delivery month of June.  Here June saw a LOSS OF 11,023 contracts DOWN to 229,231 contracts. July had a GAIN of 30 OI contracts  and thus 509 contracts  outstanding.  Next comes August another strong delivery month and here the OI ROSE by 14,641 contracts up to 196,224 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 13 notices filed today for 1300 oz

 

FOR THE  MAY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 13 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 1 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 (9822) x 100 oz , to which we add the difference between the open interest for the front month of  May. (528 CONTRACTS ) minus the number of notices served upon today (13 x 100 oz per contract) equals 1,033,700 OZ OR 32.152 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 (9822)x 100 oz + (528 OI) for the front month minus the number of notices served upon today (13) x 100 oz which equals 1,033,700 oz standing OR 32.150 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 15 contracts or an additional 1500 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 24.56 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 32.150 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  8,408,419.067 oz or 261.537  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: 7,862,493.5  (244.56 tonnes)
true registered gold  (total registered – pledged tonnes  7,545,258.2 (244.56 tonnes)
total eligible gold:  16,132,509.259 oz (501.788 tonnes)

total registered, pledged  and eligible (customer) gold;   24,540,928.326 oz 763.32 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   128.632 tonnes

total gold net of 4 GC:  634.69 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 21/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A STRONG SIZED 3364 CONTRACTS FROM 151,890 UP TO 155,254(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 11 CENT GAIN IN PRICING//WEDNESDAY. WE GAINED A TOTAL OF 4130 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A FAIR 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 11 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MAY

THE FRONT DELIVERY OF MAY SAW  158 OPEN INTEREST CONTRACTS STANDING  AND THUS WE HAD A LOSS OF 46 CONTRACTS.  We had 38 notices filed yesterday so we LOST 8 contracts or an additional 40,000 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 GAIN OF 20 CONTRACTS RESTING AT 444.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI GAINED 1397 CONTRACTS UP TO 117,582 CONTRACTS

 

 

We, today, had  2 notice(s) FILED  for 10,000 OZ for the APRIL, 2020 COMEX contract for silver

 

MAY 21/2020

MAY SILVER COMEX CONTRACT MONTH

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 609,532.777 oz
CNT
Delaware

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
600,911.450 oz
Scotia
No of oz served today (contracts)
2
CONTRACT(S)
(10,000 OZ)
No of oz to be served (notices)
156 contracts
 780,000 oz)
Total monthly oz silver served (contracts)  8910 contracts

44,550,000 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 Scotia;   600,911.450 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: 600,911.450    oz

we had 2 withdrawals:

 

i) Out of CNT:  608,531.860 oz

ii) Out of Delaware:  1000.917 oz

 

 

 

total withdrawals; 609,532.777    oz

We had 1 adjustments

i) Out of JPMorgan: 74,740.200 oz was adjusted out of the dealer account and this lands into the customer account

 

total dealer silver: 91.117 million

total dealer + customer silver:  311.713 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the MAY 2020. contract month is represented by 2 contract(s) FOR 10,000 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 8910 x 5,000 oz = 44,550,000 oz to which we add the difference between the open interest for the front month of MAY.(158) and the number of notices served upon today 2 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 8910 (notices served so far) x 5000 oz + OI for front month of MAY (158)- number of notices served upon today (2) x 5000 oz of silver standing for the MAY contract month.equals 45,330,000 oz.

We LOST 8 or an additional 40,000 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: 75,716 CONTRACTS //volume very high

 

 

FOR YESTERDAY: 70,445 CONTRACTS..,CONFIRMED VOLUME//

 

 

YESTERDAY’S CONFIRMED VOLUME OF 70,445  CONTRACTS EQUATES to 352 million  OZ 50.3% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 0.24% ((MAY 21/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO +0.09% to NAV:   (MAY 21/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.24%

(courtesy Sprott/GATA

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

NAV 16.29 TRADING 16.25///NEGATIVE 0.25

END

 

 

And now the Gold inventory at the GLD/

MAY 21//WITH GOLD DOWN $26.70//NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1112.32 TONNES

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 21/ GLD INVENTORY 1112.32 tonnes*

LAST;  825 TRADING DAYS:   +166.01 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 725 TRADING DAYS://+341.16  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

MAY 21/WITH SILVER DOWN 50 CENTS TODAY: A HUGE PAPER DEPOSIT OF 7.923 MILLION OZ///INVENTORY RESTS AT 449.758 MILLION OZ//

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 21.2020:

SLV INVENTORY RESTS TONIGHT AT

457.681 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 3.22/ and libor 6 month duration 0.59

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

GOLD LENDING RATE: -2.63%

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

 

XXXXXXXX

12 Month MM GOFO
+ 2.19%

LIBOR FOR 12 MONTH DURATION: 0.71

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.48%

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

Gold Is The Best Performing Asset In 2020 YTD With 15% Gain in USD

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 sterling year to date as safe haven demand sees gold act as a hedge again.

◆ Silver has under-performed gold in the short and medium term 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.

NEWS and COMMENTARY

Gold steady, firm dollar offsets recession support

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

S&P stumbles as Moderna sinks on report questioning trial results

C.B.O. now forecasting 38% decline in GDP in Q2, with 26 million fewer people employed

Euro rallies on Franco-German proposal for recovery fund: 500 billion euros

‘We are fully prepared to take losses’ on coronavirus bailouts, Mnuchin says

G7 finance ministers discuss accelerating economies as countries reopen: U.S. Treasury

What matters most in gold and silver – Butler

GATA asks CFTC if it has ever audited Comex gold

Gold Price Analysis: Probes $1,750 as US dollar stays sluggish

 

Gold in USD – 3 Days

 

Watch and Read Other Key Points From Interview Here

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

19-May-20 1735.25 1737.95, 1416.14 1418.34 & 1584.11 1589.01
15-May-20 1734.85 1735.35, 1422.06 1427.67 & 1604.39 1602.60
14-May-20 1716.40 1731.60, 1403.67 1420.09 & 1587.84 1603.98
13-May-20 1699.85 1708.40, 1383.85 1394.74 & 1568.11 1573.09
12-May-20 1703.45 1702.40, 1381.84 1379.80 & 1574.50 1565.87
11-May-20 1698.80 1702.75, 1375.35 1378.55 & 1570.20 1571.81
07-May-20 1688.65 1704.05, 1366.29 1387.78 & 1565.21 1582.38
06-May-20 1698.90 1691.50, 1373.56 1366.73 & 1574.71 1564.13
05-May-20 1696.30 1699.55, 1363.83 1363.72 & 1566.36 1562.91
04-May-20 1703.70 1709.10, 1371.14 1374.63 & 1558.72 1563.83
01-May-20 1673.05 1686.25, 1332.08 1347.15 & 1523.14 1536.68

30-Apr-20 1716.75 1702.75, 1373.92 1361.69 & 1577.86 1568.91
29-Apr-20 1706.00 1703.35, 1371.97 1368.64 & 1569.69 1568.10
28-Apr-20 1708.10 1691.55, 1367.68 1357.98 & 1571.11 1559.27
27-Apr-20 1717.25 1714.95, 1381.36 1380.19 & 1582.96 1581.18

 

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

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

iii) Other physical stories:

 

Global Investors Demand Gold As Protection Against Financial Repression

Via dlacalle.com,

Disconnect between markets and economic reality:

“There is a huge disconnect between markets and the economic reality, and it’s fundamentally based on the view that 2020 is a lost year and therefore what investors need to think about is 2021 is a recovery year. It looks a very dangerous bet to me because if there’s anything that we have learned from this crisis is that estimates for 2021 remain excessively optimistic, and that the V-shaped recovery is more than elusive.”

Reaction to liquidity injections:

“The reaction of markets has been very aggressive to the liquidity injections coming from the Federal Reserve and the European central banks. But I think that at the same time that level of risk-taking is too high considering the challenges both on the economic growth recovery, but more importantly, because it’s been driven by the most cyclical sectors, the recovery in earnings cash flow and balance sheets.”

Gold miners/ BANG stocks:

“I personally always say that if you want to look at the world of metals or commodities, and you want to invest in the fundamentals of those metals or those commodities, the best way to play it is through the commodity itself, or the macro, not through equities, because cost of capital is also rising and there are challenges of financing.”

Covid-19 vaccine/implications for gold:

“There are two things that we know about Covid viruses.

One is that there has never been a vaccine for a coronavirus. That’s something that we need to pay a lot of attention to when we get these levels of optimism in the market about the vaccine. When 18 previous types of viruses have never seen a vaccine, you cannot expect it to happen or at least happen as quickly as markets would want.

The second is there is likely to be a treatment, there is likely to be a way to live with Covid-19.

What is the outlook for gold in that environment? Well if anything gold is proven in 2019 that in an environment in which markets remain positive and remain attracted to a certain level of expectation of economic growth, gold and the dollar do and can rise in tandem.”

“Gold is currently working as an alternative and as a de-correlated asset to a downturn. But we must remember as well that it is a pretty good inflation hedge. So, in general I think that the outlook for gold even in and in a recovery is actually pretty good.”

Gold/silver ratio

“I always tell my clients that if you like gold you certainly have to like silver.  I don’t understand why you would be long silver short gold or have it as a pair. I think that you need to have both. But I don’t believe in the debate about the ratio of gold to silver. Reminds me of the debate about the ratio of oil to natural gas. And I think that that was a mistake in the past.”

Silver has its own fundamentals. They’re pretty good fundamentals in supply and demand. Silver is a precious metal that has numerous positive elements in order to be comfortably bullish. However, it is not money. This is the important thing in a monetary debasement craziness like the one that we’re living is that the only asset that has been proven for centuries to be money is gold. And I think that will maintain the ratio high.

Will gold continue to be bullish?

“I don’t think that gold is going to be as bullish relative to the dollar because of the high shortage of US dollars that exists in the economy right now, which is about between 13 to 20 trillion.

However, global investors are likely to look for opportunities to find a good investment relative to their currency now.

So Brazilian investors, Turkish investors, Chinese investors, Japanese investors, European investors are likely to see a much better return of gold relative to their currencies than relative to the US.”

A good one:

an email from Robert to me:

With nearly 80% of the civil workforce employed in the service sector, these schemes of keeping the economy locked down are extremely dangerous. And this is not only in America. Every country faces the same realities to similar extents. And this is why the service sector will likely see a 50% reduction in jobs by yearend.  People fail to realize that this is undermining society in a major way so that it is not going to return to normal even with Gates’ certificates to prove you have been vaccinated. Mind you the latest information on Moderna and its’ testing is a disaster. So that plan is already in the toilet.

In the US the Democratic states are refusing to open up when there is no real justification to keep their economies closed. What is really going on behind the curtain is a clever trick. The $1 trillion that Pelosi was stuffing in the Democratic Bill is money to bail out state and municipal governments which have been going broke because of their unfunded pensions.

The scheme is to crash their economies and then blame everything on the virus and then blame Trump for not bailing them out for the 2020 election. This is a very clever scheme being relayed in whispers from behind the curtain. They are using this virus as cover to bail out 70 years of fiscal mismanagement. It is why Trump also let the Governors decide when to open to sidestep the blame. This whole mess is political.

Why would anyone want to spend capital in a Democrat state where the agenda is so clear? What will become clear in another month or two is that the states that went back to work are the ones with an economy, while those who remain shut will see rapid erosion of social fabric. The divide will only widen going into the fall. And regardless of what happens in November the chaos from this folly will last a long time.

And one can assume that China is gleefully watching and waiting as the west destroys itself, hoping its’ own financial problems do not overwhelm it first.

It really would be a bunch simpler if we all simply worked and forgot about political agendas to fracture and remake society and let society mold itself.

 

Cheers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

Your early THURSDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/7 AM EST

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.1039/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1119   /shanghai bourse CLOSED DOWN 15.81 POINTS OR 0.35%

HANG SANG CLOSED DOWN 119.82 POINTS OR 0.49%

 

2. Nikkei closed DOWN 42.84 POINTS OR 0.21%

 

 

 

 

3. Europe stocks OPENED MOSTLY RED (EXCEPT SPAIN)/

 

 

 

USA dollar index DOWN TO 99.16/Euro RISES TO 1.0991

3b Japan 10 year bond yield: FALLS TO. –.00/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.76/ 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:: 34.26 and Brent: 26.49

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.47%/Italian 10 yr bond yield UP to 1.65% /SPAIN 10 YR BOND YIELD UP TO 0.73%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.12: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.76

3k Gold at $1737.20 silver at: 17.24   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 31/100 in roubles/dollar) 70.81

3m oil into the 34 dollar handle for WTI and 36 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 107.76 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 .9656 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0614 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 0.68% early this morning. Thirty year rate at 1.39%

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

6.  TURKISH LIRA:  UP  TO 6.7934..

US Futures Drop On Renewed US-China Tensions

S&P futures drifted lower alongside European and Asian stocks on Thursday as Trump ramped up his criticism of China and Xi Jinping, amid rapidly deteriorating Sino-US relations, souring the mood on the the recent rally in risk assets. Safe havens such as Treasuries edged up with the dollar. As reported here last night, in a rare outburst that went so far as to accuse the “very top” of China’s government of a “massive disinformation campaign”, Trump slammed China again just days before the biggest Chinese political gathering of the year, with traders betting that it was now just a matter of time before China retaliated in deed instead of just in word.

As a result, contracts on the three main equity index futures dropped after the S&P closed at the highest level in two months, a day after the Senate overwhelmingly passed a bill that could bar some Chinese companies from listing on U.S. exchanges, with the Emini flirting on either side of the critical 2,950 level.

“Markets may be pricing in far too much complacency as the U.S.-China ‘phase one’ trade deal could be at risk,” said market strategist Stephen Innes. “The pandemic and resulting acute economic downturn have made China’s trade commitment to the U.S. much more challenging to fulfill.”

Europe’s Stoxx 600 Index fell, with nearly all 19 sector groups in the red. Deutsche Lufthansa AG shares bucked the trend after the carrier said it was close to a multibillion-euro bailout deal from the German government. There was some good news out of Europe, where May flash PMIs (even though there is still ten days in the month) rebounded solidly from April’s lows. As Goldman notes, after reaching a historical low in April at the height of the coronacrisis, the Euro area flash composite PMI rebounded by 16.9pt in May (to 30.5), and above consensus. The increase was broad-based across sectors—with manufacturing output rising by slightly more than services activity—consistent with the gradual lifting of containment measures from early May.

Yet there was some continued weakness with German manufacturing PMI printing at 36.8, below the 39.2 expected.

Earlier in the session, Asian stocks also fell, led by utilities and communications, after rising in the last session. Markets in the region were mixed, with Shanghai Composite and Hong Kong’s Hang Seng Index falling, and India’s S&P BSE Sensex Index and Taiwan’s Taiex Index rising. The Topix declined 0.2%, with Funai Soken and Marudai Food falling the most. The Shanghai Composite Index retreated 0.5%, with Xinjiang Korla Pear and Nanjing Chervon Auto Precision posting the biggest slides.

Concerns over the growing stress between the US and China and global coronavirus cases reaching 5 million are vying for investor attention with optimism over reopening economies and progress on thwarting the pandemic. AstraZeneca received more than $1 billion in American funding to develop a Covid-19 vaccine. Meanwhile, the U.S. legislation could lead to Chinese mega-companies such as Alibaba Group Holding and Baidu being barred from exchanges. Both slipped in early trading, with Baidu going so far as declaring it may delist first before it is kicked out:

  • EXCLUSIVE-CHINA’S BAIDU CONSIDERS DELISTING FROM NASDAQ TO BOOST VALUATION – RTRS

Investors are also awaiting the latest weekly jobless claims data, which is due at 8:30 a.m. ET and is expected to show millions more Americans filing for unemployment benefits due to layoffs and mass furloughs as a result of the lockdown. Still, claims have gradually declined since hitting a record 6.867 million in the week ended March 28 and Thursday’s report could offer early clues on how quickly businesses re-hire as they reopen.

In rates, Treasuries were flat into early U.S. trading after paring Asia-session gains that were paced by demand for longer-dated tenors after Wednesday’s well-received 20-year auction, the first in decades. Yields remain lower by about 1bp across the curve, 10-year around 0.67%, with 5s30s, 2s10s flatter by around 0.5bp each. Gilts outperformed, richer by 2bp vs. Treasuries; BOE conducted buybacks via three operations Thursday, totaling GBP4.5b. Treasuries also drew support during Asia session from rising U.S.-China tensions. The new 20-year, priced at 1.22% Wednesday, improved to about 1.16%.

 

Market Snapshot

  • S&P 500 futures down 0.8% to 2,945.50
  • STOXX Europe 600 down 0.9% to 339.81
  • MXAP down 0.3% to 148.47
  • MXAPJ down 0.2% to 479.40
  • Nikkei down 0.2% to 20,552.31
  • Topix down 0.2% to 1,491.21
  • Hang Seng Index down 0.5% to 24,280.03
  • Shanghai Composite down 0.6% to 2,867.92
  • Sensex up 0.8% to 31,058.54
  • Australia S&P/ASX 200 down 0.4% to 5,550.43
  • Kospi up 0.4% to 1,998.31
  • German 10Y yield fell 1.1 bps to -0.479%
  • Euro down 0.1% to $1.0967
  • Italian 10Y yield fell 0.2 bps to 1.46%
  • Spanish 10Y yield rose 2.2 bps to 0.662%
  • Brent futures up 2% to $36.47/bbl
  • Gold spot down 0.8% to $1,734.25
  • U.S. Dollar Index up 0.2% to 99.31

Top Overnight News

  • U.S. and European futures retreated and the dollar advanced with Treasuries as deteriorating Sino-American ties cast a cloud over the recent rally in risk assets
  • The euro-area economy started to claw its way out of its deepest downturn ever as the relaxing of coronavirus lockdowns allows thousands of businesses to reopen. Markit’s headline gauge of private-sector activity rose in May, though it continued to signal contraction in both manufacturing and services
  • The U.K.’s economic slump eased this month as some companies resumed trading amid a lockdown that has brought most activity to a halt. IHS Markit’s Purchasing Managers Index for the whole economy rose to 28.9 from 13.8 in April in a preliminary estimate
  • The U.S. threw its weight behind one of the fastest-moving experimental solutions to the coronavirus pandemic, pledging as much as $1.2 billion to AstraZeneca Plc to help make the University of Oxford’s Covid vaccine
  • British banks are confronting the European import of sub-zero interest rates that could damage profits already weakened by the coronavirus pandemic, and the Brexit divorce rumbling towards its rocky end

Asian equity markets struggled to sustain the impetus from the rebound on Wall St where stocks were underpinned by hopes of a pick-up in economic activity after all US states were said to have at least partially reopened and as the continued recovery in oil prices also supported the risk tone, with sentiment in Asia eventually clouded by ongoing US-China tensions. ASX 200 (-0.4%) was initially led higher by strength in energy names although the index later reversed the moves after its top weighted financials sector dipped into the red and amid the souring ties with China. Nikkei 225 (-0.2%) also failed to hold on to opening gains despite reports Japan is set to lift the emergency declarations in Osaka, Kyoto and Hyogo, but with Tokyo not included in the status lifting, while participants digested mixed trade data that showed Exports at a narrower than expected contraction, which was still the worst decline since 2009. Hang Seng (-0.5%) and Shanghai Comp. (-0.5%) were subdued as the war of words between US and China persisted with US President Trump alleging the incompetence of China was behind the mass worldwide killing and that China’s disinformation and propaganda attack on the US and Europe is a disgrace. Furthermore, the White House released a report blasting China for its actions ranging from predatory economic policies to human rights abuses, and the US Senate recently passed the bill aimed at increasing oversight of Chinese companies that could see them delisted from US exchanges. Finally, 10yr JGBs were higher as they tracked the upside seen in T-notes following the hostile US-China rhetoric and decent results at the new US 20-year auction which disproved the naysayers that had anticipated a lacklustre auction, while the BoJ presence in the market and mild deterioration in risk tone also added to the upside for JGBs.

Top Asian News

  • China Simplifies Iron Ore Import Rules Amid Australia Spat
  • Chinese Port Operator Xinghua’s Owner Said to Explore Sale
  • Fiscal Nightmare Ties Up Kuwait’s Stimulus With 40% Deficit
  • Airlines Caught Off Guard as India Suddenly Allows Flights

European stocks see losses across most major bourses [Euro Stoxx 50 -1.4%], as the negative APAC sentiment reverberated into the region. Bourses see broad-based losses amid the escalating rhetoric between US and China as sentiment between the nations hit a low – with Spain faring slightly better after earlier underperformance on account of its extended State of Emergency, while Switzerland and Scandi markets are closed amid holidays. Broader sectors are all in the red with defensives faring better than cyclicals – suggesting risk aversion across the market, whilst the breakdown pains a similar picture with banks and Travel & Leisure among the laggards. In terms of individual movers, easyJet (+6.3%) holds onto gains after announcing the resumption of flights from 15th June. Co. believes there is sufficient customer demand to support profitable flying. Initial schedule will comprise mainly of domestic flights in UK and France, Further routes will be announced in the coming weeks as customer demand increases. Sticking with the airline sector, Lufthansa (+4.8%)  confirmed it is in advanced talks with the German Govt’s Economic Stabilisation Fund (WSF) on a stabilisation package comprising of measures amounting up to EUR 9bln, with the package subject to approval by the European Commission. On the flip side, Altice (-12%) shares tumble post earnings.

Top European News

  • EasyJet Among First Carriers in Europe to Plan Restart
  • Swissport Seeks Support to Raise up to $417 Million of Loans
  • British Lenders Brace for Sub-Zero Rates Floated by Central Bank
  • U.K. Grid Struggles as Renewables Overtake Fossil Fuels

In FX, mixed to weaker than forecast French and German PMIs were rather misleading, as the preliminary survey for the bloc as a whole beat on all counts to keep the Euro elevated and more resistant than other majors against a broad Dollar revival. Indeed, Eur/Usd remains underpinned above 1.0950 even though the DXY has pared some losses from Wednesday’s 99.001 low to sit a bit more comfortably within a 99.183-434 range ahead of US PMIs and the latest weekly jobless claims data. Similarly, albeit to a lesser extent, the Pound has regained composure in wake of UK services, manufacturing and composite readings all surpassing consensus, with Cable back above the 1.2200 handle and Eur/Gbp just holding below 0.9000. However, the former still looks bearish from a technical standpoint after breaching one side of an inverse head and shoulders chart formation at 1.2225, while a softer than forecast CBI trends metric did little to spur any action.

  • AUD/NZD – Renewed risk aversion and further assurances from RBA Governor Lowe about turning up the QE dial again if needed have prompted a pull-back in the Aussie and Kiwi from midweek peaks vs their US counterpart, as Aud/Usd reverses from 0.6600+ and Nzd/Usd is back under 0.6150. Note much in the way of additional impetus gleaned from CBA PMIs overnight, but NZ retail sales could be more pivotal later.
  • CAD/CHF/JPY – Firm crude prices continue to cushion the Loonie from downturns in broader risk sentiment, but Usd/Cad has further from sub-1.3900 lows into a band up to 1.3946, while the Franc is pivoting 0.9650 and Yen is consolidating between 107.49-84 parameters following a much wider than expected Japanese trade deficit due to exports plunging around 3 times more than imports.
  • SCANDI/EM – The Scandi Crowns have both lost momentum amidst the aforementioned risk-off mood, with Eur/Sek and Eur/Nok rebounding after forays to fresh multi-month lows towards 10.5000 and 10.8500 respectively, but the overall trend remains bearish in cross terms. Meanwhile, EMs have also handed back some of their recent gains as the clock ticks down to CBRT and SARB rate verdicts that are predicted to reveal matching 50 bp benchmark reductions, but could conceivably culminate in more aggressive easing moves. Usd/Try is straddling 6.7900 at present and Usd/Zar has reversed through 18.0000 after crossing the psychological mark on Wednesday.
  • RBA Governor Lowe said the future remains unusually uncertain in which one uncertainty is the pace of which restrictions are eased and another source is the level of confidence people have about their future, while he added the RBA remain prepared to scale up bond purchases again if necessary but noted there is a limit to what can be achieved with monetary policy. Furthermore, RBA Governor Lowe added there is no change to thinking on negative rates which are still extraordinarily unlikely and that the costs of negative rates exceed the benefits. (Newswires)

In commodities, WTI and Brent front month futures eke mild gains in what is another new-flow light European session. Rising US-Sino frictions weigh on the stock markets but caps gains in the energy market, as the complex still prices in demand from reopening economy alongside lower supply from producers. Regarding OPEC, Russian oil and condensate between May 1-19 was reported to have averaged 9.42mln BPD – although condensate is not part of the OPEC+ deal – its output was reportedly between 700-800mln BPD, meaning Russian oil output was modestly above the agreed cap of 8.5mln BPD, according to ING. WTI July resides just south of USD 34/bbl whilst its Brent counterpart trades on either side of USD 36/bbl – with both benchmarks within a USD 1/bbl or so intraday band. In terms of bank commentary, Citi sees Brent prices averaging USD 39/bbl in Q2 and USD 48/bbl in Q4, expects oil market to move into a deficit from June through Q3 2020 onward. Meanwhile, spot gold remains weighed on by a firmer USD as President Trump ramped up rhetoric against China – with the yellow metal around USD 1735/oz having printed a high of USD 1749.50 thus far. Copper prices have receded in tandem with stocks and the overall protectionism-hit sentiment, but downside action remains limited as the demand prospect from opening economies underpin demand for the red metal.

US Event Calendar

  • 8:30am: Philadelphia Fed Business Outlook, est. -40, prior -56.6
  • 8:30am: Continuing Claims, est. 24.3m, prior 22.8m; Initial Jobless Claims, est. 2.4m, prior 2.98m
  • 9:45am: Bloomberg Economic Expectations, prior 29; Bloomberg Consumer Comfort, prior 35.8
  • 9:45am: Markit US Manufacturing PMI, est. 39.5, prior 36.1
  • 9:45am: Markit US Services PMI, est. 32.3, prior 26.7
  • 9:45am: Markit US Composite PMI, prior 27
  • 10am: Existing Home Sales, est. 4.22m, prior 5.27m; Existing Home Sales MoM, est. -19.92%, prior -8.5%

DB’s Jim Reid concludes the overnight wrap

One interesting stat that we’ve included in our penultimate CCD today is that in the US state of Pennsylvania (12.8m pop.) more people have died of covid-19 aged over 100 years old than below the age of 45. In total it is 41 deaths under the age of 45 vs. 72 over the age of 100. In fact more people have died in the 105-109 year old age bucket (six people) than in any 5 year buckets up to the age of 30. Eight people under 30 have died in total in the state out of 4493. We show the graph in the CCD today. It is perhaps the most granular age data we’ve seen so far and goes up to those 110 years old.

Onto markets now and it was yet another strong day for risk assets yesterday, with the S&P 500 climbing a further +1.67% to reach its highest closing level since the crisis was in full-swing. Indeed, the index now stands at an astonishing +32.82% higher since its closing low less than 2 months ago, as abundant liquidity, the continually slowing rates of infection and possible signs of hope on a vaccine have seen equities make one of their fastest moves upwards in many years. The question is whether this can sustain itself given that the very live risk of a second wave remains, as well as the fact that a vaccine is far from certain.

In terms of the details, 23 of 24 industry groups in the S&P moved higher, with energy leading the way on the back of higher oil prices. Europe also made gains as the STOXX 600 rose +0.98%, led partially by oil and gas stocks. The DAX was also up +1.34% and at a 2-month high. As mentioned, oil’s rally helped the covid laggards lead the day’s rally with both WTI (+3.05%) and Brent crude (+3.71%) making significant advances as both reached their own 2-month highs. It was not all positive for the commodity as data out of the US showed that there was an increase in gasoline storage thus showing the ongoing demand weakness. Markets continue to look beyond this at the moment with hopes that reopening of large parts of the US will see demand return.

The positive moves yesterday actually came in spite of a further escalation in rhetoric between the US and China. Secretary of State Pompeo said that China was ruled by a brutal, authoritarian regime, and that Beijing was hostile to free nations, which follows warnings from China after Pompeo congratulated the new Taiwanese President on her inauguration, since China claims Taiwan as part of its “one China” principle. Lastly, the US Senate passed by unanimous consent, legislation yesterday which require companies certify that they are not under the control of a foreign government for them to be listed on US exchanges. This was pointed at China with the Senator introducing the bill, John Kennedy (Republican from Louisiana), saying that “I do not want to get into a new Cold War,” but he wants “China to play by the rules.”

In terms of markets this morning, momentum has faded somewhat as that trade rhetoric weighs on sentiment. The Nikkei (-0.16%) is down, Hang Seng and Shanghai Comp both flat and Kospi (+0.33%) has posted a modest gain. Futures on the S&P 500 are also down -0.62%. Elsewhere, the US dollar index is trading up +0.24% while yields on 10y USTs are down -2.1bps.

We’ve also had the preliminary May PMIs for Japan and Australia overnight. Japan’s manufacturing PMI printed at 38.4 (vs. 41.9 last month), the lowest reading since March 2009 while the services print came in at 25.3 (vs. 21.5 last month) thereby putting the composite at 27.4 (vs. 25.8 last month). For Australia, the manufacturing PMI came in at 42.8 (vs. 44.1 last month) and services reading improved to 25.5 (vs. 19.5 last month) which put the composite at 26.4 (vs. 21.7 last month). In addition to that, Japan’s April trade data revealed that exports fell by -21.9% yoy (vs. -22.2% yoy expected), the largest decline since 2009 while the decline in imports was -7.2% yoy (vs. -13.2% yoy expected). In other overnight news, President Trump said that he may hold the June G-7 meeting at Maryland’s Camp David after previously planning a video conference.

Here in the UK, Bloomberg reported overnight that the government is considering an option of asking businesses to take over paying national insurance and employer pension contributions for furloughed staff as it weighs up winding down its spending on the program. Separately, the Financial Times has reported that Chancellor Sunak is drawing up plans to extend the holiday on mortgage payments that banks have to give 1.7 million homeowners suffering financial stress due to the virus. The holiday is currently set to finish at the end of June.

There were two noteworthy items out of central banks yesterday. Later in the day the Fed’s minutes from the 28-29 April meeting were released. The highlight was the level of concern the committee felt the virus posed to the US economy and the need to stem the fallout. “Members agreed that the Federal Reserve was committed to using its full range of tools to support the U.S. economy in this challenging time.” There was ample discussion into how forward guidance should be determined in the upcoming months, two suggestions were an outcome-based approach specifying macroeconomic indicators that needed to be reached or a date-based approach with the target range for the benchmark rate only rising after a specific amount of time had passed. The topic of negative rates were only brought up once, as “respondents to Desk surveys attached almost no probability to the FOMC implementing negative policy rates.” One of the issues with determining the best approach to forward guidance is the uncertainty around the path of the virus itself. Many Fed officials judged that there was a “substantial likelihood of additional waves of outbreak in the near or medium term. In such scenarios, it was believed likely that there would be further economic disruptions.” See our US economists recap for further details. Link here.

The cautionary tone of the FOMC minutes did not help the dollar as it fell against other major currencies on the day. The Bloomberg dollar index was down -0.25% to levels last seen on 1 May. The Euro rose 0.52%, trading higher for the fourth straight day, the longest such streak since the last week of March.

Back here in the UK, we got a few headlines from the Bank of England, as Governor Bailey said that “we’re keeping the tools under active review in the current situation”. He continued to not rule out negative rates, in line with the recent rhetoric we’ve been hearing, but he also acknowledged that there’ve been pretty mixed reviews on their use elsewhere, so it doesn’t obviously look as though these are going to be on the table anytime soon. The comments came as the UK’s debt management office actually sold bonds at a negative yield for the first time yesterday, raising £3.75bn at a yield of -0.003%. Our economists’ view is that the next policy move will be £125bn of extra QE next month, rather than negative rates.

Meanwhile, we got reports from MNI that the ECB would soon announce details on the reinvestment of principal payments on the bonds it’s bought under their Pandemic Emergency Purchase Programme launched in March. It was also said to be likely to add junk debt to its purchases. Credit had a good day yesterday with IG cash spreads 5bps tighter in USD and 3bps tighter in EUR, and HY cash spreads 19bps tighter in USD and 11bps tighter in EUR.

Looking at sovereign bonds yesterday, they were mostly treading water on both sides of the Atlantic, with no big moves in either direction. This was even as the US government sold 20-year bonds for the first time since 1986, and at a yield (1.220%) only marginally above the pre-auction levels. 10yr US Treasury yields ended the session mostly unchanged, down -0.8bps at 0.68%, while those on bunds fell by -0.4bps. One of the bigger moves was seen in Greece, where the country’s spread over 10yr bunds came down by -4.7bps to their lowest level in over a month.

There wasn’t a lot of data to mention, though we did get a number of CPI inflation prints. In the UK, CPI fell to +0.8% in April and the final Euro Area CPI reading was revised down a tenth from the flash to +0.3%, which in both cases is the lowest inflation has been since August 2016. In Canada, we actually saw deflation, as CPI was at -0.2% in April, moving into negative territory for the first time since September 2009.

Attention today will be back on the data once again, with the both the flash PMIs for May as well as the weekly initial jobless claims from the US offering markets the latest clues on how economies are faring as they ease off their most stringent lockdown measures. Starting with the PMIs, last month we saw the composite PMIs fall to record lows on both sides of the Atlantic as the surveys fully encompassed the lockdowns. There will likely be a decent bounce but bear in mind that PMIs are diffusion indices, where respondents simply say whether things are better or worse than last month, meaning that in extreme events such as these they don’t necessarily give the best picture on the scale of the declines or rebounds when they happen.

On those weekly jobless claims, our US economists are forecasting a 2.5m reading for the week through May 16. We’re also likely to see downward revisions to the previous week since we’ve been informed that last week’s number for Connecticut was around 10 times what it should have been. A 2.5m reading would be the 7th consecutive decline since the peak back in late March, but given that such a number would still be at least triple the previous record before the coronavirus took hold, the big question is how long it’ll take before we start to see more “normal” numbers again.

To the day ahead now, where the data highlights are likely to be the aforementioned flash PMI readings from around the world and the weekly initial jobless claims from the US. Other than that, there’ll also be the CBI’s industrial trends survey for May in the UK, while from the US we’ll get the Philadelphia Fed’s business outlook for May, as well as the leading index and existing home sales for April. From central banks, there are monetary policy decisions from Turkey and South Africa today, in addition to remarks from the Fed’s Powell, Clarida and Williams, along with the ECB’s Panetta. Finally, earnings releases include Nvidia, Medtronic, Intuit, TJX and Hewlett Packard Enterprise.

 

3A/ASIAN AFFAIRS

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 15.81 POINTS OR 0.35%  //Hang Sang CLOSED DOWN 119.92 POINTS OR 0.49%   /The Nikkei closed DOWN 42.84 POINTS OR 0.21%//Australia’s all ordinaires CLOSED DOWN .34%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1039 /Oil UP TO 34.26 dollars per barrel for WTI and 36.49 for Brent. Stocks in Europe OPENED MOSTLY RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1039 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1119 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

JAPAN/SOUTH KOREA

Japan exports are the worst since 2008..also South Korea

Japan Exports Worst Since Financial Crisis; Korea Early May Export Data Just As Dire

If any traders, or frankly anyone out there, still cares about fundamental economic data, there was little to celebrate this evening, when Japan reported another round of dismal trade numbers, with Imports plunging 7.2% in April, worse than the -5.0% drop in March but slightly better than expected. However, it was Japan’s exports – that key benchmark for the BOJ whose goal of keep the yen weaker is not only to support stocks but also to facilitate exports – that was the highlight, with the April number plunged by 21.9%, double the previous month’s -11.7% drop and the biggest plunge since the financial crisis.

But if Japan’s number was dismal, at least it was expected. What was more concerning was the latest Korean export number for the first 20 days of May, which some had expected to see a solid rebound in light of the so-called reopening observed this month. Well, it did not happen, and while the May number wasn’t quite as bad as the near-record plunge in April when exports plunged by 26.9% in the first 20 days, the -20.3% Y/Y drop in May – off an already depressed 2019 number – showed that any hopes for a solid global recovery taking hold have been painfully premature.

To be sure, there was a tiny silver lining, as semiconductor exports rose 13.4% in contrast to a 15% decline in the same period of April. According to Bloomberg “this supports optimism for an economic turnaround and equities’ rally” and is “likely to give investors fresh reasons to look at the tech sector in Korea and abroad” although we disagree.

As noted in recent weeks, just like during the trade war in much of 2019, the reason for a sharp pick up in semiconductor trade has been fear that China’s tech sector will soon be locked out of US supply chains – as the recent Huawei news confirmed – and as such any jump in S.Korean semi exports is simply frontloading of demand now ahead of more crackdowns on the Chinese tech space in the future, when Huawei et al may find themselves completely locked out from US suppliers, which in turn explains why as Bloomberg reported earlier, China is planning to invest $1 trillion in its semiconductor industry to if not overtake the US in technology, at least become self-sufficient and not rely on US semi production.

 

3 C CHINA

HONG KONG/KYLE BASS/WEDNESDAY NIGHT
All eyes must be on Hong Kong as the Mainland China’s People’s Congress threaten to take away its freedom.
a must read..
(Kyle Bass)

Kyle Bass: All Eyes Should Be On Hong Kong

Authored by Kyle Bass, op-ed via NewsWeek.com,

In international politics, few things are certain during these uncertain times. But I can predict one: the relationship between America and Hong Kong is in the throes of major change.

On May 22, China’s leaders will convene for their annual People’s Congress, during which they will discuss the status of Hong Kong and whether to push forward with their rebuffed attempts to impose upon that special jurisdiction the laws and circumscribed rights of mainland China. If they do so, America and Britain will push back—with lasting consequence.

Hong Kong has become ground zero for the ideological clash between democracy and heavy-handed Chinese communism. This tug-of-war was on global display last summer, when over two million Hong Kongers—26 percent of the entire population—peacefully took to the streets of Hong Kong, in sweltering 100-degree heat, to protest Beijing’s overreach with a proposed extradition bill that would impose China’s laws on Hong Kong. The people of Hong Kong have completely lost faith in their embattled leader, Carrie Lam, and their police force. Peaceful protesters have been brutalized, pro-democracy figures have been illegally arrested and the Hong Kong Legislative Council’s day-to-day operations have been tampered with by the Chinese government. During the most recent attempt to conduct a Legislative Council meeting in Hong Kong, in a scene that is reminiscent of an event that might take place in a failed state, fist fights broke out between the pro-China members and the pro-democracy members.

Unfortunately, the rapt global attention and support that greeted Hong Kongers last year at the start of their protests has been sidetracked by other news. But this week, the world should again pay attention to Hong Kong.

At the People’s Congress, the Chinese Communist Party is likely to push forward with having Hong Kong implement a full set of laws with “Chinese characteristics” that give Beijing the right to essentially do whatever it pleases. This will shatter the Sino-British Joint Declaration of 1984, in which China agreed to allow Hong Kong to continue to operate “autonomously” until 2047. After 156 years of Hong Kongers experiencing British rule and all the freedoms and rights that accompanied it, expect larger and more dynamic protests and (hopefully) more global action from politicians. Recently, Secretary of State Mike Pompeo has said that he would not renew Hong Kong’s special trade status until he had seen the outcome of the People’s Congress.

But absent a complete about-face on that, it is unclear how Pompeo could possibly validate Hong Kong’s continued “autonomy” after the blood-letting the world has witnessed firsthand. In late 2019, Amnesty International titled a piece, “Hong Kong: Arbitrary arrests, brutal beatings and torture in police detention revealed.” Suffice it to say this is not something any responsible autonomous nation would do to peaceful protesters.

Unfortunately for citizens, at the same time that Hong Kong is experiencing the worst political destabilization since the Opium Wars, the special jurisdiction is already in the throes of the worst economic depression it has ever faced: GDP is down 24 percent quarter-over-quarter annualized. I have been studying the Chinese banking system and Hong Kong closely for the last decade, and I think that Hong Kong is living on borrowed time. (In full disclosure, I run global investment funds investing in this macroeconomic outcome.)

What happens in Hong Kong will not stay in Hong Kong. The battle between an expansionist, increasingly repressive Chinese communist government, on the one hand, and a Western rule of law-based democracy, on the other, will spill over into Taiwan. Already, the battle in Hong Kong has affected Taiwanese politics: watching China’s Communist Party try to assert control in Hong Kong is the primary reason that a historic number of Taiwanese voters took to the polls to rebuke the pro-Beijing candidate and elect a president, Tsai Ing-wen, who campaigned with the promise of protecting Taiwan’s democracy and sovereignty. Taiwanese voters will continue to be enthralled by every development in Hong Kong, because they know that an aggressive and emboldened Chinese Communist Party is bad news for them, too.

The world should focus on Hong Kong. This is not just about the fate of millions of peaceful protesters, but about democracy, reneged promises and a global order that is shifting as the Chinese Communist Party continues to change its terms of engagement.

END

HONG KONG/CHINA//THURSDAY MORNING

True to what Kyle Bass stated last night, Beijing legalizes the persecution of Hong Kong’s pro democracy movement with a new ‘national security law’.

Trouble ahead on this..expect massive protests

(zerohedge)

Beijing Legalizes Persecution Of Hong Kong’s Pro-Democracy Movement With New ‘National Security’ Law

A few days ago, Hayman Capital Management founder Kyle Bass published an editorial warning about Beijing’s renewed focus on stamping out dissent in Hong Kong now that protesters are beginning to re-emerge as the number of new cases of COVID-19 declines to zero. Specifically, he warned of the possibility that President Xi would adopt new “laws” granting Beijing broad latitude to interfere in Hong Kong’s affairs, in explicit violation of the 1984 treaty between the UK and Hong Kong that set the Special Administrative Region on the path back to reunification.

Hong Kong’s liberal values have always been at odds with Beijing’s demands for unwavering obedience. One PLA officer – clearly an old-line Communist – once told the SCMP that Hong Kong had the worst “social values” of anywhere in China. And while that may be, technically, Hong Kong has another ~27 years to enjoy these freedoms before: According to the “one country, two systems” agreement struck with Britain, China doesn’t gain full custody of the de facto independent city state until July 1, 2047, the date marking 50 years since Britain officially handed Hong Kong back to China.

Now, a disturbing story first published by a Hong Kong gossip site has apparently been confirmed by HK’s paper of record, the English-language South China Morning Post: During this year’s annual Party Congress, Xi and the Standing Committee are expected to draft a resolution calling for a new “national security” law aimed at stamping out all “secessionist” and “subversive” acts, as well as “terrorism” and “foreign influence”. Remember, Chinese media regularly referred to the pro-Democracy protesters as terrorists.

Beijing will introduce a draft resolution to allow the National People’s Congress to chart legislation for a new national security law tailor-made for Hong Kong that will proscribe secessionist and subversive activity, foreign interference and terrorism in the city, sources have told the Post.

A Beijing source said the new law would ban all seditious activities aimed at toppling the central government and external interference in Hong Kong’s affairs. It would also target terrorist acts in Hong Kong.

A mainland source familiar with Hong Kong affairs said Beijing had concluded that it was impossible for the city’s Legislative Council to pass a national security law to enact Article 23 given the city’s political climate and hence was turning to the National People’s Congress, the country’s legislature, to take on the responsibility.

SCMP’s sources confirmed what many Hong Kong observers likely suspected: Beijing is using its decision to back away from the controversial extradition bill that sparked last year’s wave of protests to justify passing its own national security law to effectively criminalize dissent in Hong Kong, in defiance of an international agreement with the UK.

“Some opposition politicians have shut the window for Hong Kong to enact its own national security law,” the source said, referring to the confrontational approach they had adopted towards Beijing.

“If the national security legislation is not done during the annual session of the National People’s Congress or shortly afterwards, is there any guarantee that it can be passed by the Legco in the next two years?” the source said.

“We can no longer allow acts like desecrating national flags or defacing of national emblem in Hong Kong.”

Bass warned of exactly this in a Newsweek editorial from earlier this week.

China’s biggest political meetings of the year kicked off in Beijing on Thursday, marking a key milestone in President Xi Jinping’s battle against the global coronavirus pandemic. The Chinese People’s Political Consultative Congress, an advisory body with no legal powers, held its official session with Mr Xi and the rest of the Chinese Communist party’s top leadership in attendance. On Friday morning Premier Li Keqiang will address the annual session of China’s rubber-stamp parliament, the National People’s Congress, with a closely watched work report that will give details about the government’s plans to revive the world’s second-largest economy.

The “two sessions,” normally held in March but delayed by almost three months this year because of the coronavirus, are being held against a backdrop of rapidly deteriorating relations between China and the US.

The Party Congress kicked off on Thursday, but a vote on the resolution – which would authorize the Standing Committee to draft the law – is expected to be held on May 28 (Wednesday).

Notably, the law will likely be in effect before elections in the fall for Hong Kong’s legislative council – or “Legco” – a vote that pro-democracy lawmakers have been hyping up as a gesture against the increasingly authoritarian tendencies exhibited by Beijing.

Legco is headed for elections in September that opposition parties have vowed as a make-or-break opportunity to get a majority to block all bills put forward by the government, buoyed by their success at last November’s district council elections.

The move to introduce the draft resolution comes as the city’s delegates to the nation’s parliamentary sessions are preparing to meet Xia Baolong, director of the State Council’s Hong Kong and Macau Office (HKMAO) on Thursday evening.

Sources have told the Post that a draft of the resolution will be shared with delegates on Thursday night and presented as a motion to the NPC, on Friday afternoon.

The NPC is then expected to vote on the resolution at the end of the annual session, likely to be on May 28. The resolution will then be forwarded to the Standing Committee of the NPC to chart out the actual details of the legislation.

The Standing Committee is expected to meet again next month, and the law could be drafted and included in Annex 3 of Hong Kong’s “Basic Law”, which is based on British legal principles.

The Standing Committee, which last met on April 26 to 29, meets every two months and is expected to hold its next meeting as early as June and this could be the earliest date at which the legislation could be approved.

“The NPC decision will delegate the NPC Standing Committee to draft the new legislation for Hong Kong, which would be included in Annex 3 of Hong Kong’s Basic Law,” the source said.

“The new law will be introduced in Hong Kong through promulgation, without the need for local legislation.”

If the process as outlined by sources is confirmed, Hong Kong will finally have national security laws, 23 years after the handover of the city from British to Chinese rule.

Why is Beijing so eager to make these changes? Because since the British left, Hong Kongers have repeatedly rebuffed efforts by Beijing to crack down on dissent by opposing national security bills, even though the “Basic Law” requires the city-state to adopt one. Now, Beijing has apparently found a work-around to simply impose these restrictions on Hong Kongers.

One thing seems likely: Like Bass, we suspect this doesn’t bode well for Hong Kong’s reeling economy. Because, as Bass once explained, the reason Hong Kong has functioned as a gateway to China for the west is due to a ‘special status’ granted to HK by the US government. That status is contingent on Beijing effectively keeping its hands off Hong Kong. Once this ‘national security’ law has passed, the US will have no choice but to revoke certain special privileges it has accorded Hong Kong.

end
HONG KONG/CHINA/USA
the rhetoric is getting louder and louder
(zerohedge)

Trump Threatens “Very Strong Reaction” If Beijing “Interferes” With Hong Kong

Did President Trump just crank the belligerent rhetoric up to ’11’?

During a briefing with reporters, President Trump answered questions about the MSM fixations du jour, including his feelings on mail-in ballots and his current COVID-19 infection status (still negative). But amid the fluff, one reporter asked an important question referencing Thursday’s decision to adopt a new “national security” resolution opening the door to new laws allowing Beijing to punish political dissidents with impunity.

Trump replied that if this happens, the US would respond with a “very strong reaction.” You’ll remember that last year, President Xi warned in a speech that any foreign powers who screwed with China’s relationship with Hong Kong and Taiwan would face serious consequences.

  • TRUMP, ASKED ABOUT CHINA’S MOVE ON HONG KONG, SAYS  IF IT HAPPENS U.S. WILL HAVE A VERY STRONG REACTION

A few hours ago, Chinese tech giant Baidu became the first major Chinese company to delist from an American exchange (it de-listed from the Nasdaq) in retaliation against a bill passed by the Senate that would require Chinese companies to submit to certain auditing conditions that Beijing currently resists, for dubious reasons.

Fortunately for the Fed, investors haven’t really woken up the possibility yet.

 

END
HONG KONG/USA SANCTIONS INITIATED
That did not take long:  Senators already introduce a bill sanctioning Chinese officials and banks over the Hong Kong crackdown.
This will hurt China badly
(zerohedge)

Senators Introduce Bill Sanctioning Chinese Officials, Banks Over Hong Kong Crackdown

Shortly after it became clear that China has run out of patience with Hong Kong, when as reported earlier China’s National Congress adopted a resolution calling for a new National Security law in Hong Kong, US senators immediately responded to China’s attempt to further crackdown on Hong Kong autonomy as Beijing moves to stop widespread pro-democracy protests that have challenged leader Xi Jinping, by introducing a bipartisan bill that would sanction Chinese party officials and entities who enforce the new national-security laws in Hong Kong, with the legislation also would penalizing banks that do business with the entities, according to the WSJ.

The latest bill in a recent barrage of legislation targeting China comes one day after the Senate also passed a bill that could force the de-listing of Chinese companies in the US.

Senators Chris Van Hollen (D., Md.) and Pat Toomey (R., Pa) said they had been working on the bill already but Thursday’s developments made the legislation more urgent, and said they would urge Senate leaders to take up the matter quickly.

“We would impose penalties on individuals who are complicit in China’s illegal crackdown in Hong Kong,” Van Hollen said quoted by the WSJ. He called the move by Beijing “a gross violation” of China’s agreement with the U.K. to preserve more freedom and autonomy in the territory. Toomey called the move by China “very, very deeply disturbing.”

So far stocks have continued to ignore the constant escalation in tensions between the US and China clearly convinced that it is all just political theater, but when it comes to Hong Kong and US intervention in what Beijing deems “local matters”, not to mention the ongoing feud over the origin of the coronavirus crisis, China couldn’t be more serious, and with the China’s National People’s Congress starting tomorrow, a harsh response is inevitable.

end

CHINA/IRAN/VENEZUELA/USA

Pompeo now accuses China of assisting Venezuela in the smuggling of gold out of the country to pay for gasoline. Five tankers are heading to Venezuela as the uSA threaten a blockade to Venezuela.

Let us see how this one plays out..

(zerohedge)

Pompeo Accuses China Of Helping Iran’s ‘Gas For Gold’ Sanctions-Busting In Venezuela

We predicted earlier that the United States is headed for another ‘tanker war’ with Iran, but unlike last summer this will take place far away from Persian Gulf and Mediterranean waters, instead in the Caribbean off Venezuela’s coast, however unusual that scenario might be. Recall that Trump recently ordered a US naval build-up there to boot.

Currently there are five Iranian-flagged tankers transporting fuel to Venezuela across the Atlantic Ocean, with plans to break the American blockade on the Latin American country. Iran has warned that any US attempt at intercepting its fuel tankers “would have serious repercussions for the Trump administration ahead of the November elections.”

But Washington appears ready to do just that, also as the growing number of Iranian supply flights to Caracas via Iran’s US-sanctioned Mahan Air is gaining attention. To get Venezuela’s derelict refineries up and running to meet domestic gas consumption, vital parts are needed — a role that Tehran has stepped up to fill. But in a new twist to the imminent geopolitical showdown, the US has freshly accused China of being part of the Iranian sanctions-busting scheme in Latin America

 

Iran’s Mahan Air has been blacklisted by Washington since Oct. 2011, file image.

On Tuesday Secretary of State Mike Pompeo named China as helping to facilitate the scheme to ‘smuggle’ gold out of Caracas as payment for the inbound Iranian gasoline as well as refining supplies and support.

The State Department specifically identified Chinese firm Shanghai Saint Logistics Limited, saying it’s now blacklisted the company for sanctions violations related to Iran and Venezuela.

“The People’s Republic of China is one of the rapidly dwindling number of countries that welcomes Mahan Air, which ferries weapons and terrorists around the world for the Islamic Republic of Iran,” Pompeo announced.

Washington has long considered Mahan as essentially a front for elite Islamic Revolutionary Guard Corps (IRGC) operations, but it’s the first time Beijing has been linked so forcefully to helping “ferry weapons and terrorists around the world” while assisting Mahan Air.

Pompeo alleged that Shanghai Saint Logistics “provides general sales agent services” for Mahan Air, according to the statement.

 

Venezuelan President Nicolas Maduro kisses a gold bar, via AFP.

In April a series of sanctioned Mahan flights landed in Venezuela to transport badly needed equipment to fix fuel refining plants for domestic gas consumption amid a severe national shortage. Pompeo at the time called on all countries to block airspace for such ‘banned’ flights.

In the past months the US administration also reportedly ordered a naval build-up in the Caribbean in order to thwart ‘illegal’ sanctions-busting activities involving Venezuela.

Like Russia, China has long been a quiet supporter of Maduro, rumored to even supply troops for training missions, as well as economic support, however, a number of reports suggest that’s been scaled back of late.

Reports the WSJ: “The sanctions announced Tuesday block any assets Shanghai Saint Logistics has within U.S. jurisdictions, prohibit U.S.-based companies and individuals from transacting with them, and expose anyone doing business with them to potential penalties.”

END

CHINA/BAIDU

Not a very clever move:  China’s huge search engine company Baidu is now considering to delist from the Nasdaq and head to another exchange.

(zerohedge)

China’s Baidu Considers Delisting From Nasdaq; Stock Tumbles, Drags Chinese Megacaps Lower

The US can’t kick out Chinese companies from US stock exchanges if said Chinese companies delist first.

That is probably what went through the head of Chinese search giant Baidu – metaphorically speaking – one day after the Senate passed a bill on Wednesday that could stop some Chinese companies listing on U.S. exchanges unless they follow standards for U.S. audits and regulations in an escalation of a long-running dispute between Washington and Beijing about giving U.S. regulators access to Chinese audits.

In response, Reuters reports that Chinese search engine giant Baidu is considering delisting from the Nasdaq and moving to an exchange closer to home “to boost its valuation”  amid rising tension between the United States and China over investments, three sources said. It wasn’t clear how moving away from the biggest pool of megatech bubbles in the world, the Nasdaq, to some other exchange would “boost its valuation” but whatever: clearly the political feud between Trump and Xi is now translating into soft capital controls, and explains why Baidu stock tumbled on the news, sliding briefly below $100 after dropping first yesterday on news of the Senate bill.

The news also dragged lower other Chinese megatechs such as Alibaba and the broader China internet sector.

As Reuters further reports Baidu – one of China’s first US listings – is reaching out to “trusted advisers” to see how it could best be done if it were to proceed, including looking at issues around funding and any regulatory reaction although the discussions are at an early stage and are subject to change, said the sources, who spoke on condition of anonymity because the matter is not public.

The company pointed to comments by co-founder and CEO Robin Li who told the state-controlled China Daily on Thursday that Baidu was paying close attention to the tighter U.S. scrutiny of Chinese companies listed in the country.

“For a good company, there are many choices of destinations for listing, not limited to the U.S.,” he told the newspaper.

The sources also said that Baidu believed it was undervalued on the Nasdaq exchange in New York; which probably answers our question from above, if not actually “how” it is undervalued. In other words, Baidu wants to be closer to the chronically insane momentum-chasing gamblers that make up the Chinese investing class.

Baidu’s shares have fallen more than 60% since their peak in May 2018 while the Nasdaq Golden Dragon China Index, which tracks Chinese firms listed on the U.S. exchange, has lost less than 10% over the same period. Baidu’s market cap just below $30 billion is only 5% of the market value of Alibaba, which has shares listed in Hong Kong and American Depository Shares listed in New York.

In January, Reuters reported that Baidu, Ctrip and NetEase have all held preliminary talks with Hong Kong Exchanges and Clearing about a possible secondary listing to follow Alibaba in establishing an investor base closer to China.

end
TAIWAN/CHINA/USA
This will get China hot under the collar
(zerohedge)

US Outrages China With $180M Torpedoes-For-Taiwan Deal On Same Day President Sworn In

Just after a tweet by Secretary of State Mike Pompeo congragulating Taiwan on its latest presidential election outraged Beijing, later in the day Wednesday the US announced a deal to sell $180 worth of torpedoes to Taiwan.

Specifically the agreement is for transferring 18 heavy Mk-48 torpedoes to the breakaway island-republic’s military.

The US State Department said in announcing the deal: “Supplying Taiwan with these torpedoes serves the economic and security interests of the United States by helping (Taiwan) modernize its armed forces and maintaining a reliable defense capability.”

 

MK-48 training torpedo loaded onto US submarine, US Navy file photo.

“This deal will also contribute to maintaining political stability, balance of power and economic progress in the region,” the statement added, in a veiled shot at what Washington considers the ‘destabilizing’ influence of China, which historically sees Taiwan as its own.

“The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today,” it added.

A Mk-48 torpedo is nearly two feet in diameter and weighs 3,520 pounds; it can destroy targets at ranges of well over 5 miles out and travels at speeds up to 55 knots. Specifically, the “MK-48 Mod 6 Advanced Technology heavyweight torpedoes, which feature advanced sonar targeting for submarines, along with support equipment and related logistics support,” are considered a major upgrade to Taiwan’s submarine arsenal and capabilities.

Crucially the announcement came the same day Taiwan President Tsai Ing-wen was sworn in for her second term in office.

She provocatively verbalized a firm rejection of Chinese sovereignty claims in her speech, emphasizing the triumph of democracy as an affirmation of the island’s sovereignty and independence.

Meanwhile, China reportedly stepped up military drills in the contested waters near Taiwan in response to the inauguration, which further involved flying PLA fighter jets into Taiwan’s airspace.

END
Michael Every…important read..

Rabobank: There Is Just One Small Problem With China’s Plan To Catch Up With US Technology

Submitted by Michael Every of Rabobank

The Howl

“I saw the best funds of my generation destroyed by madness, starving hysterical naked, dragging themselves through the negative-yield streets at dawn looking for an angry fix.”

(With apologies to Alan Ginsberg.)

Well, it final happened. Back to the late 17th century, UK gilts had never been issued with negative yield. Until yesterday, the same day the BoE made clearer it is seriously contemplating entering the mirror world of being paid to borrow, which Japan and Europe are already deep into. Who said the UK isn’t European at heart, eh? Marginally lower rates, lower GBP as a result, and a whole host of acronyms to try to keep yield curves from killing the banking sector will now be flowing out of Threadneedle Street.

The Fed still doesn’t want to go negative, but as Philip Marey makes clear their latest minutes show they are prepared for a second wave of the coronavirus outbreak; the FOMC intends to make its forward guidance on rates more explicit; it may also provide more clarity regarding its asset purchases; it remains ready to expand its special lending facilities; and. finally, seems more interested in yield curve control. Don’t expect very high yields for as far as they eye can see – just not sub-zero ones either.

Meanwhile, howls abound in foreign policy and geopolitics.

This week has already seen the Nasdaq limit Chinese IPOs; yesterday saw the US senate pass legislation that would effectively force Chinese firms to delist from US exchanges (do you think the House can’t pass the same, or that Trump would then veto it in an election year?); and Republican senator (and tipped 2024 presidential candidate) Josh Hawley presented a speech as a pillar in the intellectual architecture of what the US actually wants: “The international order as we have known it for thirty years is breaking. Now imperialist China seeks to remake the world in its own image, and to bend the global economy to its will….We must recognise that the economic system designed by Western policy makers at the end of the Cold War does not serve our purposes in this new era.

Hawley is pushing to leave the WTO outright. That seems unlikely for now – but the US is moving towards the inverse of what happened in the 1930s, when Germany, Italy, and Japan simply left the League of Nations when it no longer fitted their political world view. If the US cannot get institutions that work for it, it can and could walk away: WTO; WHO; UN; open capital markets. Don’t take anything for granted. Recall the US did not even join the League of Nations!

In market terms, we already see Bloomberg noting Chinese firms may shift their listings to Hong Kong to avoid US restrictions; but it isn’t as if Hong Kong is not caught in the eye of this storm itself. China has just accused the US of “blackmail” in its stance towards the Hong Kong government, and potential US policy action still looms in the background as a risk.

If all this is too highfalutin for you, there is always Twitter. Here are the recent cream of the crop from US President Trump:

“China is on a massive disinformation campaign because they are desperate to have Sleep Joe Biden win the presidential race so they can continue to rip-off the United States, as they have done for decades, until I came along! Spokesman speaks stupidly on behalf of China, trying desperately to deflect the pain and carnage that their country spread throughout the world. Its disinformation and propaganda attack on the United States and Europe is a disgrace…it all comes from the top. They could have easily stopped the plague, but they didn’t!”

That comes dangerously close to finger pointing at Xi Jinping, something Trump has so far not done and which may be a bridge that can only be burned once. Of course, the editor of China’s Global Times is not as restrained in his burns:

On the contrary, Chinese netizens wish for your reelection because you can make America eccentric and thus hateful for the world. You help promote unity in China and you make intl news as fun as comedy. Chinese netizens call you ‘Jianguo’, meaning ‘help to construct China’.”

Somewhere in here the optimists will tell you that a there is a phase one trade deal trying to get out.

Meanwhile, Bloomberg reports that China is pushing ahead with a $1.4 trillion six-year plan of digital Keynesianism backed by Xi himself, both to boost growth, benefit Chinese tech giants at the expense of US firms, and move away from a reliance on US technology imports completely. If China does this it will ensure that the phase one deal is dead as the US exports the very highest tech and commodities to China – and it both can’t and won’t be just a primary commodity producer. It will also help ensure a Balkanisation of global tech systems and markets. And don’t think this is just a US-China issue. Australia has just been called a “giant kangaroo that serves as a dog of the US” – and there is talk of further threats to Aussie exports, such as dairy, fruit, and seafood.

But there is just one other small problem for China: they don’t have $1.4 trillion – not if they don’t have any exports they don’t. (On which front, Japanese data today saw exports for April -21.9% y/y, and Korea’s first 20-days of May data were -20.3% y/y). China has infinite CNY, as does everybody with a sovereign currency.It just has to hope it can boost state investment by USD1.4 trillion and not see a current-account deficit that pushes CNY off a cliff, especially with no capital inflows if the US hawks get their way.

Logically, the only way that external deficit doesn’t happen is if the US and world does not act as China dumps foreign technology imports and/or if the state investment push is mirrored by higher private-sector saving….in which case there is no GDP boost! Cue howls from those who don’t understand how these balance-sheet dynamics actually work. Or the geopolitics of it.

At least the trend towards negative rates makes more sense against this backdrop. Rates are marching lower and deficits higher everywhere; the RBNZ –who started inflation targeting– is likely to expand QE and is actively leaning on banks to lower their mortgage rates; and the first US 20-year Treasury auction since 1986 flew out the door yesterday. More to come. More to come.

end

Americans are willing to pay more for non China made products

(Watson/SummitNews)

78% Of Americans Are Willing To Pay More For Non-China Made Products; Poll

Authored by Steve Watson via Summit News,

Bloomberg poll has revealed that an overwhelming majority of Americans would be willing to spend more money on products if they are manufactured outside of China, with 40% saying they simply will not buy anything made in China at all.

In addition to these findings, 55% said that they do not believe China can be trusted to fulfil its trade-deal commitment to buy more U.S. products, while 66% said they favor raising import restrictions over the pursuit of free-trade deals as a better way to boost the U.S. economy.

The findings come as President Trump announced that he now feels ‘differently’ about the trade deal he signed with China earlier this year.

”I feel differently now about that deal than I did three months ago,” Trump told reporters Tuesday.

”We will see what all happens, but it’s been a very disappointing situation. Very disappointing thing happened with China because the plague flowed in and that wasn’t supposed to happen and it could have been stopped,” Trump added.

”Once the virus came in, once the plague, as I called it, came in, I said how did they let that happen? And how come it didn’t go into other sections of China? Why did they block it from leaving Wuhan? But they didn’t block it from going to the rest of the world, including the United States. Why is that? Beijing doesn’t have it. Other places don’t have it,” he continued.

The President touted trade deals that the US has with other countries.

Earlier this month, Trump tweeted that 100 trade deals with China wouldn’t make up for the ‘plague from China’.

 
 end

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

CORONAVIRUS UPDATE

In Africa, COVID-19 Cases Near 100k As Global Total Passes 5 Million: Live Updates

Summary:

  • African CDC says cases pass 95k
  • Russian deaths top 3k
  • WHO blames Russia, Brazil for global jump of 100k new cases for first time in weeks
  • NYPost pressures de Blasio to reopen NYC
  • MSM already blaming Trump for failing to stop ‘second wave’ of virus
  • Nigerian doctors in Lagos end day-long “Doctor’s strike” over police harassment
  • UK launches study into effectiveness of hydroxychloroquine as a COVID prophylactic

* * *

The world reached a particularly powerful coronavirus milestone last night: The number of cases confirmed across the world topped the 5 million mark roughly 5 months after the first cases of the virus were confirmed in Wuhan back in December. 

We also noted that Brazil is on track to overtake Russia as the second-largest outbreak in the world (after the US, of course) as it continues to break records with its daily number of confirmed cases, as testing ramps up after months of minimal government intervention to stop the virus. The WHO warned that the outbreaks in Brazil and Russia helped drive the number of new cases reported across the world on Wednesday past 100k for the first time in weeks.

In a bold move that’s bound to elicit a flood of public anger from the ‘stay home, save lives’ crowd, the cover of Thursday’s NY Post pleads with Mayor de Blasio to reopen the city. At this point, the data around the country clearly suggests that deaths and the number of newly confirmed cases have continued to fall, even as the MSM continues to focus on a couple of examples of ‘misleading’ presentation of data during the earlier days of the reopening in Georgia and Florida.

Amusingly, the MSM has already pivoted to criticizing the Trump Administration for things that haven’t even happened yet. To wit, the Guardian reports that 9 “Obama Administration scientists” have signed onto a warning that the Trump Administration has “just 3 months” to rebuild its stockpiles of PPE before the next wave of the outbreak, the Guardian reports. The outbreaks in Brazil and Russia – not to mention the ‘partial lockdown’ imposed on another 100+ million in northeastern China – aren’t exactly reassuring, but this phenomenon of “pre-blaming” Trump for failures that haven’t happened yet seems to be growing more common since the NYT slammed the White House over projections calling for 3k deaths a day by June 1.

In a handful of countries including India, doctors have reported experience surprising levels of harassment from fellow citizens and police as some blame them for failing to save relatives who have succumbed to the virus. As unbelievable as this might sound to Westerners, Al Jazeera reports that Nigeria’s largest medical union has ordered its members in Lagos to resume work, ending a strike inspired by allegations of police harassment. The Nigerian Medical Association (NMA) doctors’ union, which ordered Lagos members to stop work indefinitely from Wednesday evening, said it had received assurances that doctors would be exempt from a nationwide overnight curfew and would therefore be allowed to move freely.

Despite official figures showing fewer than 500 deaths, scientists in South Africa are projecting up to 50,000 coronavirus deaths and as many as three million infections by the end of the year as the southern hemisphere braces for a rising infection rate as winter begins. SA already has the highest number of infections and deaths on the continent, with more than 18,000 identified cases and 339 deaths, but a national lockdown entering its sixth week had slowed infections.

Across Africa, the number of cases is creeping closer to 100k, after passing the 90k mark on Thursday. The number of the infected has reached 95,201, per the Africa Centers for Disease Control and Prevention. According to the latest data, the death toll on the continent was 2,997, while 38,075 people have recovered.

For the second day in a row, Indonesia has set a new record for new cases, bringing the total to 20,162 in the world’s fourth most populous country. Indonesia confirmed 973 new infections and 36 new deaths, taking the total number of fatalities to 1,278, according to health ministry official Achmad Yurianto.

After lifting his state of emergency order in the prefectures of Osaka, Kyoto and Hyogo on Thursday, Japanese PM Abe said he could lift the emergency status in Tokyo as soon as next week.

“The state of emergency will continue in Tokyo, Hokkaido and other regions. We will meet with experts (on Monday) to update the situation on infections,” Abe told reporters after ending the state of emergency in Osaka, Kyoto and Hyogo prefectures. “If the current situation continues, it is possible that the state of emergency could be lifted in those areas.”

As the US press slams President Trump for taking HQX for prophylactic purposes, UK healthcare workers will take part in a University of Oxford-led international trial of two anti-malarial drugs to see if they can indeed prevent COVID-19.

The ‘COPCOV’ study will involve more than 40,000 frontline healthcare workers from Europe, Africa, Asia and South America to determine if chloroquine and hydroxychloroquine truly are effective.

Finally, in Russia, officials said Thursday that the death toll topped 3,000 after another 127 deaths were reported, bringing the Russia-wide total to 3,099. Additionally, authorities reported 8,849 new cases of the virus, which brought Russia’s outbreak – the second-largest in the world behind the US – to 317,554.

END
 

7. OIL ISSUES

Why US Shale Is Too Important To Fail

Authored by Steve Watkins via OilPrice.com,

It may well be the case that the U.S. shale sector has cut over US$50 billion from its planned spending this year, the number of operating rigs has fallen by 40 per cent in the past four weeks, and output has fallen by nearly one million barrels per day (bpd) over the same period.

It is equally true, though, that what all these reports overlook is that the shale oil (and gas) sector is too important from a geopolitical and economic perspective to the world standing of the U.S. for it to be allowed to fail, and all other considerations are secondary. In reality, the U.S. shale sector is set to emerge stronger, and earlier, than the vast majority of people think.

Ever since the 1973 Oil Crisis – when Saudi Arabia pressured OPEC members plus Egypt, Syria, and Tunisia to embargo oil exports to the U.S. (and the U.K., Japan, Canada, and the Netherlands) in response to the U.S.’s supplying of arms to Israel in the Yom Kippur War – the U.S. had been itching for a way to end its energy dependence on other countries. Up to that point in October 1973, the U.S. had largely believed that the Saudis could be trusted to adhere to the multi-generational deal that U.S. President Franklin D. Roosevelt and the Saudi King at the time, Abdulaziz, had struck in 1945, as analysed in depth in my new book on the global oil market. Specifically, this deal made in the Great Bitter Lake segment of the Suez Canal was that the U.S. would receive all of the oil supplies it needed for as long as Saudi Arabia had oil in place, in return for which the U.S. would guarantee the security of the ruling House of Saud. By the end of the Saudi-supported embargo in March 1974, the price of oil had risen from US$3 per barrel to nearly US$12 per barrel and, as the Saudi Minister of Oil and Mineral Reserves at the time, Sheikh Ahmed Zaki Yamani (widely credited with formulating the embargo strategy) unequivocally highlighted at that point: the extremely negative effects on the global economy marked a fundamental shift in the world balance of power between the emerging nations that produced oil and the developed nations that consumed it.

When the U.S. shale industry began in earnest in 2006 with natural gas, and in 2010 with crude oil, it offered the U.S. the long-awaited opportunity to finally shrug off any shackles to Saudi that remained by dint of the Kingdom’s petro-power. Within a relatively short time, the U.S. had become the number one oil producer in the world, pushing Saudi frequently into third place behind Russia, and producing an average of around 13 million bpd, with around 60-70 per cent of that coming from the shale sector. In short, it meant that the U.S. did not have to put up with any nonsense from the Saudis anymore, or from anyone else for that matter, with a new-found ability to sanction major oil producing nations that fell foul of it for one reason or another – most notably including Iran, Venezuela, and Russia – without fear of the repercussions for its own energy security.

Given this massive geopolitical reason alone, it should be blatantly obvious to anyone that the U.S. will never capitulate on its shale-centric power, or even allow it to be materially damaged. Even more immediate domestic political reasons militate into shale continuing to function as it was before Crown Prince Mohammed bin Salman (MbS) ignored recent historical precedent and launched the second oil price war against the U.S. shale sector in less than a decade, with the disastrous fallout for it that has resulted. Senior U.S. politicians believe that if the Saudis are ever able to meaningfully reduce the U.S.’s oil output (which has effectively made it the new global ‘swing’ producer, instead of Saudi Arabia), then longer-term not only would the U.S. have to toe the Saudi line on whatever hare-brained schemes MbS might dream up but also it would allow Saudi Arabia over time to manipulate prices back up to levels that would allow it to avoid the imminent bankruptcy that it faces. At the moment, Saudi’s official budget breakeven price per barrel of Brent is US$84 (although after the latest oil price war it is in reality nearer US$100).

The threat of this power, and the resultant oil price levels, is intolerable to U.S. politicians, and particularly those right now whose power is up for grabs in an election year. In this context, any sustained Brent price above US$70 per barrel is regarded by the current Presidential Administration as being in a pricing area where the benefits to U.S. shale producers of higher prices are outweighed by the relative damage done to the U.S. economy. More specifically, it is estimated that every US$10 per barrel change in the price of crude oil results in a 25-30 cent change in the price of a gallon of gasoline, and for every 1 cent that the average price per gallon of gasoline rises, more than US$1 billion per year in consumer spending is lost. As Bob McNally, the former energy adviser to the former President George W. Bush put it: “Few things terrify an American president more than a spike in fuel [gasoline] prices.”

At least as bad for a sitting president is the effect of rising gasoline prices on an already ailing U.S. economy due to the COVID-19 pandemic. According to U.S. NBER statistics, since World War I, the sitting U.S. president has won re-election 11 times out of 11 if the U.S. economy was not in recession within 24 months ahead of an election but presidents who went into a re-election campaign with the economy in recession won only once out of seven times (Calvin Coolidge in 1924). As it stands, according to the American Petroleum Institute, the oil sector also accounts for 10 per cent of U.S. gross domestic product, although this has to be put in context of it being a lobby group for oil companies.

As it stands, the U.S. shale sector benefits in its trajectory of recovery from the after-effects of the previous (2014-2016) oil price war launched against it by the Saudis.

“Prior to that, it was the consensus that the breakeven price for U.S. shale producers was around US$70 per barrel but this was reduced by around half or even more in some cases,” Andrew Dittmar, a Houston-based senior M&A analyst for Enverus exclusively told OilPrice.com last week.

“They did so mainly through the advancement of technology that enabled them to drill longer laterals, manage the fracking stages closer and maintain the fracks with higher, finer, sand to allow for increased recovery for the wells drilled, in conjunction with faster drill times, and these improvements remain in place,” he said.

“They gained further cost benefits from multi-pad drilling and well spacing theory and practice, and for some time the only factor holding back further improvements in output and pricing were infrastructure constrains but even these have now improved, so they are in a much better position to bounce back now than they were after the 2014-2016 war,” he added.

So quickly, in fact, that from a standing start right now some of the best operations can be back online in as little as a week, although the refinery-related lead time is slightly longer.

“Typically, you buy the majority of your crude supplies 30-45 days out so what will happen is refineries will start to increase their run rates and will start buying, then buyers show up to start buying the crude from the producers and then the producers turn it back on – so there will be some advanced warning but it will be very dependent on refinery runs,” Bernadette Johnson, Enverus’ Denver-based vice president of strategic analytics exclusively told OilPrice.com last week.

“There are some risks associated with a shut-in, of course – such as water encroachment in the reservoir, and well bore or surface facility damage, everything we leave in the well will be subject to rusting, corrosion, and deterioration – and these will all have to be tested for, but within those parameters for the vast majority of the wells one week is absolutely sufficient to bring them back to full production capacity, particularly for unconventional wells,” she said.

“In fact, contrary to what many people think, the reservoir damage is actually fairly minimal for the most part and typically when the well has been shut-in pressure rebuilds and when we bring the well back online it actually performs a little better for a while and then it settles back to what it was before,” she added.

“In terms of pricing, US$25-30 per barrel of WTI is enough to get the existing production back up and running, as long as operators believe prices won’t crash back down below US$20 per barrel,” she underlined.

Fears as well of permanently losing the crews look as overblown this time as they were last time: “The idea that these crews will just stay away from a sector that pays much bigger money than they can get elsewhere to go and re-train as coders or something is just not true and didn’t play out last time either,” said Dittmar.

“In sum what we have seen is just another phase of the Business Cycle, with the first phase marked by the rush for volume and the second phase marked by some demand for capital repayment from Wall Street in a broadly lower price environment after 2016,” said Dittmar. “Now, we are entering a third phase that will be marked by more M&A activity, particularly by the acquisition of smaller shale operations by bigger firms, probably with a heavy equity-funded element, given that the stocks of the bigger oil firms have started to rebound whilst the smaller firms still have very low valuations,” he added.

“For the big firms – particularly such as Exxon, Chevron, BP, Shell, and Total, having a good-sized shale operation is a very good fit in the overall business model,” he told OilPrice.com. “It sits well in the short-cycle perspective so that when prices are rising they can ramp up production quickly to take advantage of that and when they are falling they can just cut capex quickly and trim back production,” he underlined.

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1219 DOWN .0008 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /MIXED

 

 

USA/JAPAN YEN 107.85 DOWN 0.074 (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 1.2485   DOWN   0.0052  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3059 UP .0005 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  THURSDAY morning in Europe, the Euro FELL BY 8 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED DOWN 15.81 POINTS OR 0.35% 

 

//Hang Sang CLOSED DOWN 119.82 POINTS OR 0.49%

/AUSTRALIA CLOSED DOWN 0,34%

 

Trading from Europe and Asia

 

  EUROPEAN STOCKS OPENED MOSTLY RED (EXCEPT SPAIN)/

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 119.82 POINTS OR 0.49%

 

 

/SHANGHAI CLOSED DOWN 15.81 POINTS OR 0.25%

 

Australia BOURSE CLOSED DOWN. 34% 

 

 

Nikkei (Japan) CLOSED DOWN 42.84  POINTS OR 0.21%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1734.10

silver:$17.17-

Early THURSDAY morning USA 10 year bond yield: 0.68% !!! DOWN 1 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.39 DOWN 1  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early THURSDAY morning: 99.16 UP 3 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

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And now your closing  THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.75% DOWN 0 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: 0.71%//DOWN 1 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 92 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.49% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.12% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.0953  DOWN     .0026 or 26 basis points

USA/Japan: 107.71 UP .129 OR YEN DOWN 13  basis points/

Great Britain/USA 1.2226 DOWN .0011 POUND  DOWN 11  BASIS POINTS)

Canadian dollar DOWN 36 basis points to 1.3944

 

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The USA/Yuan,CNY: AT 7.1153    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1253  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8000 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 2 IN basis points from WEDNESDAY at 0.66 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.59 UP 3 in basis points on the day

Your closing USA dollar index, 99.37 UP 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 THURSDAY: 12:00 PM

London: CLOSED DOWN 51.91  0.86%

German Dax :  CLOSED DOWN 157.18 POINTS OR  1.41%

 

Paris Cac CLOSED DOWN 51.53 POINTS 1.15%

Spain IBEX CLOSED UP 2.50 POINTS or 0.04%

Italian MIB: CLOSED DOWN 126.05 POINTS OR 0.73%

 

 

 

 

 

WTI Oil price; 33.73 12:00  PM  EST

Brent Oil: 36.18 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    71.05  THE CROSS LOWER BY 0.11 RUBLES/DOLLAR (RUBLE HIGHER BY 11 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.49 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 :  34.02//

 

 

BRENT :  36.07

USA 10 YR BOND YIELD: … 0.67..down 2 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.38  down 2 basis points..

 

 

 

 

 

EURO/USA 1.0949 ( DOWN 30   BASIS POINTS)

USA/JAPANESE YEN:107.57 DOWN .021 (YEN UP 2 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 99.41 UP 29 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2220 DOWN 16  POINTS

 

the Turkish lira close: 6.79

 

 

the Russian rouble 70.98   UP 0.13 Roubles against the uSA dollar.( UP 13 BASIS POINTS)

Canadian dollar:  1.3942 DOWN 37 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.49%

 

The Dow closed DOWN 101.78 POINTS OR 0.41%

 

NASDAQ closed DOWN 90.89 POINTS OR 0.97%

 


VOLATILITY INDEX:  29.12 CLOSED UP 1.12

LIBOR 3 MONTH DURATION: 0.358%//libor dropping like a stone

LIBOR/OIS: .296%

TED SPREAD (3 MONTH TREASURY YIELD VS LIBOR) = .233%

 

 

USA trading today in Graph Form

Bitcoin & Bullion Battered As Stocks, Bonds, & The Dollar Do Nothing

Another 2.4 million Americans added to the jobless rolls, China tensions soar, Leading Indicators were a disaster, Housing Data a shitshow, PMIs bounced but remain historically bad… so buy small cap (domestically focused) stocks, and dump gold, silver, and cryptos…

Gold puked on major volume at 10amET…

Silver was monkeyhammered even more than gold…

Which stalled the silver outperformance of late…

Source: Bloomberg

Bitcoin was also battered at the same time (around 10amET)…

Source: Bloomberg

Cryptos have erased a lot of the post-Bitcoin-Halving gains…

Source: Bloomberg

Notably, the plunge in bullion and bitcoin coincided with the ugly PMI data and a jolt lower in Fed Rate expectations (back towards negative rates)…

Source: Bloomberg

Nasdaq was the laggard on the day but Small Caps were manically bid off the European Close lows (and took a hit on the China sanction headlines late on)…

As shorts were squeezed yet again…

Source: Bloomberg

Meanwhile, The dollar did nothing…

Source: Bloomberg

Bonds did nothing… (long-end yields rose around 1bps on a major corporate issuance day)

Source: Bloomberg

Yuan was dumped as sanctions and threats were traded…

Source: Bloomberg

 

Finally, whatever The Fed, The Market, The Politicians are doing… it’s not working for sentiment…

Source: Bloomberg

Americans haven’t been this pessimistic about current economic conditions in six years. The Bloomberg Consumer Comfort Index fell to 34.7 last week, a 1.1-point drop from the prior week and its ninth straight weekly decline, matching the longest streak on record.

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

Futures Slide Back Under 2,950 After Trump Slams Xi In Angry Tweetstorm

Update: the editor in chief of the Global Times, Hu Xijin, who is always on alert on twitter, was quick to respond to Trump with the following tweet, which also received permission from “the top”:

Chinese netizens wish for your reelection because you can make America eccentric and thus hateful for the world. You help promote unity in China and you also make intl news as fun as comedy. Chinese netizens call you “Jianguo,” meaning “help to construct China”.

Of course, this feud between Trump and Xi makes for good theater, but it only takes one small error to push the wrong button by mistake.

* * *

And just like that, spoos are back under the critical 2,950 resistance level.

Just when it seemed that Emini futures were about to break out from the narrow channel they had been boxed in for the past month, and where the 2,950 level was suddenly breached after repeated failed attempts…

… Trump decided to drop some late night tweets, escalating what had been an already tense day for US-China relations, and accusing China’s Xi Jinping of being behind a “disinformation and propaganda attack on the United States and Europe” and that China could have “easily stopped the plague but they didn’t”

“It all comes from the top,” Trump said accusing China’s president Xi in a trio of tweets on Wednesday night, in which he claimed that China was “desperate” to have Joe Biden win the presidential race (he is probably right on that).

What was new about Trump’s Wednesday night tweets, and why the market reacted like it did, is because While Trump has often blamed China for causing the coronavirus pandemic, he was careful to maintain that his relationship with Xi remains strong and never reference the Chinese president in one of his rants. Now that Xi has been dragged into the feud, the Chinese president needs to responds, or else risk looking weak before his country, and it is Xi’s response that markets are now dreading.

Trump’s tweet came hours after the Senate passed a bill to clamp down on Chinese companies listed in the US, and shortly after the White House issued a broad critique of China’s economic and military policies in a report to Congress, in which it accused Beijing of intellectual property theft and economic protectionism, however without detailing what specific actions the U.S. will take in response. The report also faulted China for human rights abuses, including detaining ethnic and religious minorities such as the Uighurs, and for “engaging in provocative and coercive” military activities in areas including the South China Sea and the Taiwan Strait.

The administration also said that the decades-long policy toward China – based on the presumption that deepening engagement would help the country become a more economically and politically open society – was wrong.

China “has chosen instead to exploit the free and open rules-based order and attempt to reshape the international system in its favor,” the report said. And China’s “expanding use of economic, political, and military power to compel acquiescence from nation states harms vital American interests and undermines the sovereignty and dignity of countries and individuals around the world.”

In a reverse tit-for-tat, China’s foreign ministry earlier also fired back with similar charges, saying the Trump administration was looking to obscure the facts around the virus to deflect from its own shortcomings.

Earlier on Wednesday, China’s foreign ministry spokesman Zhao Lijian said that Pompeo’s congratulations to Taiwan’s Tsai Ing-wen, in which he called her “Taiwan’s president” and boasted about the “partnership” between the US and Taiwan, are in “serious violation” of the “one-China” principle and the three China-US joint communiques which make up the Phase 1 trade deal between the two nations, and “constitute grave interference in China’s internal affairs.”

“China deplores and condemns US interference and will take necessary measures in response to the US erroneous practices”, and the “consequences will be borne by the US side” Zhao warned.

Shortly after, China’s Global Times tweeted that it urges the US, among other things, to stop interfering in China’s internal affairs, and to stop undermining peace and stability across the Taiwan Strait, as well as China-US bilateral relations.

And so on, and on, and on, until eventually the next escalation will be one from which there is no quick and easy de-escalation.

Perhaps in anticipation of that, following today’s sharp jump in stocks, risk ticked lower and after plunging on Wednesday, the dollar rose against its G-10 peers with AUD and NZD underperforming most in G10 on haven demand as U.S.-China tensions take center stage ahead of China’s National People’s Congress starting Friday. The Bloomberg Dollar Spot Index advanced 0.3%, its first rise in four days and as markets “suddenly” realize just how deep the conflict between the US and China has become.

The Australian dollar – often a proxy for US-China sentiment- led declines against the greenback among G-10 currencies after surging to the highest in more than two months on Wednesday. The offshore yuan also weakened after two days of gains and following a weaker than expected fixing by the PBOC earlier in the session.

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Another 2.4 Million Unemployed Last Week: 38 Million Jobless, Nasdaq +35% In COVID America

The string of unprecedentedly huge spikes in jobless claims continues. In the last week 2.44 million Americans filed for unemployment benefits for the first time (slightly worse than the 2.40 million expected).

Source: Bloomberg

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

That brings the nine-week total to 38.64 million, which is massively worse than the prior worst nine-week period in the last 50-plus years.

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

Source: Bloomberg

After last week’s SNAFU with the Connecticut (overstating their jobless claims by 200k), this week saw Washington, California, and New York dominated the job losses…

And as we noted previously, what is most disturbing is that in the last nine weeks, far more Americans have filed for unemployment than jobs gained during the last decade since the end of the Great Recession… (22.13 million gained in a decade, 38.636 million lost in 9 weeks)

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

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

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

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

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

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

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

Finally, it is notable, we have lost 413 jobs for every confirmed US death from COVID-19 (93.439).

Was it worth it? Well of course it was – US equity markets are roaring higher…as if it never happened!

end

 

 

Jobless claims jump 4.4 million in mid-May as applications for federal benefits surge

May 21, 2020 at 8:42 a.m. ET

MarketWatch

Nearly 30 million people are getting unemployment compensation

The numbers: More than 4.4 million unemployed Americans applied for jobless benefits last week through the states or a temporary federal-relief program, reflecting persistent pressure on struggling companies to slash payrolls even as the U.S. economy slowly reopens for business.

Some 2.2 million people filed initial jobless claims through their state unemployment offices in the seven days ended May 16. And at least 2.2 million applied through the federal government’s temporary Pandemic Unemployment Assistance program, the Labor Department said Thursday.

MarketWatch for the first time is reporting jobless claims in raw or actual figures, foregoing the time- honored media practice of using seasonally adjusted numbers. The seasonal adjustments have overstated jobless claims by several million and are less relevant given the nature of a once-in-a-century pandemic. See this congressional report for a fuller explanation.

What happened: The historic pace of layoffs has tapered off since peaking at the end of March, but unemployment has already ballooned to the highest level since World War Two and is likely to get worse.

Since the coronavirus pandemic and lockdowns started in mid-March, some 35.5 million people have applied for jobless benefits through their states. Roughly 9.2 million have applied via a new federal program that has made self- employed workers and independent contractors such as writers or Uber UBER, +3.23% drivers eligible for the first time ever.

The total: almost 45 million.

The true number of unemployed is impossible to know for sure, but earlier this month the government said 20.5 million workers lost their jobs in April. The unemployment rate shot up to almost 20% unofficially, according to a close reading of the government’s report. The official estimate was 14.7%.

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

The big picture:All 50 states have lifted some restrictions imposed during a nationwide lockdown and some are further ahead than others, but the effort to reopen the economy has been slow going.

The U.S. is in a race for time: The longer it takes to fully reopen, the more likely that millions of seemingly temporary job losses become permanent. If that happens, the jobless rate is likely to remain above 10% through the end of the year and hinder a recovery.

-END-

Philly Fed manufacturing index shows continued weakness in May

May 21, 2020 at 8:43 a.m. ET

MarketWatch

Index rises 13 points to -43.1 after hitting 40 year low in April

The numbers: The Philadelphia Fed manufacturing index in May rose to -43.1 from – 56.6 in April, which was the lowest level in forty years.

Any reading below zero indicates worsening conditions. Economists polled by MarketWatch expected a -40 reading.

What happened: The survey found that 58% of firms reported a decrease in activity while only 15% reported an increase.

The new orders index increased 45 points to a reading of -25.7. The shipments indexed increased 44 points to -30.3. The employment index increased 31 points to -15.3.

Firms expect the current slump to last less than six months. The index for future activity rose 7 points to 49.7. Over 62% of firms expect increases in activity over the next six months, while 13% expect declines.

Big picture: A similar survey conducted by the New York Fed said conditions remained dreary, rebounding to -48.5 in May from -78.2 in the prior month. The coronavirus pandemic continues to weigh heavily on manufacturing. The bounce in May in the regional surveys is due in part to firms saying that activity is steady at zero rather than declining sharply last month, economists said.

-END-

Existing Home Sales Continue Collapse To 9-Year Lows

Existing Home Sales in April plunged 17.8% MoM to the lowest SAAR since September 2011 (at 4.33mm, slightly better than the 4.22mm exp)…

Source: Bloomberg

This is the largest drop since the government’s homebuyer tax credit expired in July 2010 (the two month drop is around 25% SAAR)

Source: Bloomberg

Additionally, the median home price increased 7.4% from a year earlier to $286,800.

“The economic lockdowns – occurring from mid-March through April in most states – have temporarily disrupted home sales,” Lawrence Yun, NAR’s chief economist, said in a statement.

“But the listings that are on the market are still attracting buyers and boosting home prices.”

Inventory was down 19.7% last month from a year ago to 1.47 million units, the lowest on record for any April. The number of homes for sale would last 4.1 months at the current sales pace. Anything below five months is seen as a tight market.

Existing home sales slumped in all U.S. regions in April, led by a 25% drop in the West from a month earlier. Contract closings also fell 17.9% in the South, 12% in the Midwest and 16.9% in the Northeast.

end

iii) Important USA Economic Stories

This is a must view:  Harvard medical School professor Bill Haseltine questions Fauci’s decisions and some of the vaccine results.

(zerohedge)

“Trust Is Being Undermined” – Harvard Medical School Prof Questions Fauci’s “Shading” Vaccine Results

At a moment in time when narrative-following “scientists” are lauded like unquestionably omniscient supreme beings enabling dumb-as-a-rock-partisan-politicians to play omnipotent overlords without fear of blowback, the world needs more people like William Haseltine.

The last two weeks have seen markets and politicians jump exuberantly at the hope of every press release from a biotech firm that proclaims one of their pet rabbits didn’t die when they fed it their latest DNA-reshaping test material (oh that is except if anyone dares say anything positive about hydroxychloroquine but that is a topic for another discussion) as the fate of global citizenry rests on a vaccine (and definitely not herd immunity, don’t even mention it).

Barstool Sports’ Dave Portnoy said it right – when did we shift from “flatten the curve, flatten the curve, flatten the curve” to “we have to fund a cure or everyone’s going to die.”

And so, that is where we find ourselves… Every talking head proclaiming the same malarkey – we will re-open carefully, with PPE, and social distancing, and whetever else is mandated from on-high “until we find a vaccine in 12-18 months” at which point the world will be made whole again and Kumbaya…

All of which brings us back to the man of the day in our humble opinion.

Former Harvard Medical School professor and founder of the university’s cancer and HIV/AIDS research departments, William Haseltine dared to speak out today about the high level of bullshit and damage that is being done to “trust” in “scientists” and even dared to break the one holy writ that shall go un-mentioned, throwing some shade a Dr.Fauci.

Reflecting on Moderna’s press release this week (which was immediately followed by massive equity raises across numerous biotech firms and upgrades from the underwriters, surprise), Haseltine said:

“If a CFO had tried to get away with such an opaque and data-less statement it would have bee treated with derision and possibly an investigation.”

The CNBC anchor desperately tried to guilt him into the official narrative of clinging to any hope as long as it lifts stocks – no matter its utter bullshittiness – but Haseltine destroyed her naive party line:

“we all know its an emergency, and in an emergency it’s even more important to be clear on what you know and what you do not know.”

Moderna did not follow the process:

“you don’t know what happened, we don’t know what happened, there is no data.”

But, but, but… the CNBC anchorette blubbered, “are you questioning Dr. Fauci who also said that this was encouraging news?”

“Whether [Fauci] shaded what should should have been done, I think is an important question. He’s obviously under enormous pressure for positive results but it was not the right thing to do if you can’t see the data.”

The full interview below is a must-watch by all who care about their freedom being controlled by a narrative directed by fearmongering elites in the name of “science” when the “science” is a) being ignored, b) being bastardized to meet a political need, c) being treated as if handed down on high from the man himself, or d) being manipulated explicitly.

Why this former Harvard Med School prof says Moderna’s vaccine trial ‘publication by press release’ from CNBC.

Haseltine’s interview is perfect lead into his opinion piece in todays’ Washington Post:

Faith in medicine and science is based on trust. But today, in the rush to share scientific progress in combating covid-19, that trust is being undermined.

Private companies, governments and research institutes are holding news conferences to report potential breakthroughs that cannot be verified. The results are always favorable, but the full data on which the announcements are based are not immediately available for critical review. This is “publication by press release,” and it’s damaging trust in the fundamental methods of science and medicine at a time when we need it most.

The most recent example is Moderna’s claim Monday of favorable results in its vaccine trial, which it announced without revealing any of the underlying data. The announcement added billions of dollars to the value of the company, with its shares jumping almost 20 percent. Many analysts believe it contributed to a 900-point gain in the Dow Jones industrial average.

The Moderna announcement described a safety trial of its vaccine based on eight healthy participants. The claim was that in all eight people, the vaccine raised the levels of neutralizing antibodies equivalent to those found in convalescent serum of those who recovered from covid-19. What to make of that claim? Hard to say, because we have no sense of what those levels were. This is the equivalent of a chief executive of a public company announcing a favorable earnings report without supplying supporting financial data, which the Securities and Exchange Commission would never allow.

There is a legitimate question regarding what Moderna’s unsupported assertion means. The scientific and medical literature reports that some people who have recovered have little to no detectable neutralizing antibodies. There is even existing scientific literature that suggests it is possible neutralizing antibodies may not protect animals or humans from infection or reinfection by coronaviruses.

Such “publication by press release” seems to be a standard practice lately.

The National Institutes of Health announced last month that the drug remdesivir offered a clear benefit to covid-19 patients with moderate disease, shortening the length of their hospital stay by several days. But did it really? Twenty days after the announcement, the supporting data has still not been published. Without the data, no doctor treating a patient can be sure they are doing the right thing.

Another paper, published the same day, found that remdesivir had no measurable effect on patient survival or the amount of virus detectable in nasopharynx and lung secretions. What then should a practicing physician do? Follow the unsupported advice of a news announcement or a medical report published in a leading scientific journal? This is not an idle question: The NIH announcement triggered a global stampede for limited supplies of the drug.

The case is more nuanced for the vaccine developed by the Jenner Institute at Oxford University, though the mileposts remain the same: It started with a public pronouncement of favorable results from an early study, this time in monkeys, well before any data was publicly released. An NIH scientist working on a trial of the Oxford vaccine gave an interview to the New York Times, claiming the drug was a success.

But the data, released as a prepublication version more than two weeks after the story ran, didn’t quite live up to the early claim. All of the vaccinated monkeys became infected when introduced to the virus. Though there was some reduction in the amount of viral RNA detected in the lungs, there was no reduction in the nasal secretions in the vaccinated monkeys. So the positive result reported by the Oxford group turned out not to be protection from infection at all, something most would agree is what a successful vaccine would do. Instead, it lowered only the amount of virus recoverable from the vaccinated monkey’s lung.

To the Jenner Institute’s credit, it does warn visitors to its website that there have been many false reports about the progress of its vaccine trial. Still, having a scientist working on the trial paint preliminary results in such a positive manner without having yet released the full data is cause for concern.

We all understand the need to share scientific and medical data as rapidly as possible in this time of crisis. But a media announcement alone is not enough. There are ways to share the data quickly and transparently: posting manuscripts before review or acceptance on publicly available websites or working with journals to allow an early view. Publishing in this manner allows doctors and scientists to reach their own conclusion, based on the evidence available.

The media also bears responsibility. Asking experts to opine on unsubstantiated claims is not useful. Medicine and science are not matters of majority opinion; they are matters of fact supported by transparent data. This is the backbone of scientific progress and our only hope to end this pandemic. We can’t give up on our standards now.

*  *  *

So, by all means, trust in “science” but choose your “scientist” well…

END

FORD

We are going to see a lot of this: Ford shuts down two plants because some workers have tested positive for the COVID 19

(zerohedge)

 

Ford Temporarily Shuts Down Two Plants Just Days After Reopening After Workers Test Positive For COVID-19

Ford was forced to temporarily shut down production at two of its plants – one in Dearborn and the other in Chicago – because of workers testing positive for COVID-19, according to the Detroit News. The Dearborn Truck Plant, where Ford assembles the F-150 and Raptor pickups, halted production Wednesday after an employee there tested positive for the virus, Kelli Felker, Ford’s global manufacturing and labor communications manager, said in a statement. Production is expected to resume Wednesday night.

“When a Dearborn Truck Plant employee who returned to work this week tested positive for COVID-19, we immediately began to notify people known to have been in close contact with the infected individual and asked them to self-quarantine for 14 days,” Felker said. “We are deep cleaning and disinfecting the work area, equipment, team area and the path that the team member took.”

In Chicago, two employees who returned to work this week tested positive for the virus. The same protocols were applied in those cases, and Chicago Assembly now is running again. Due to the known incubation time of the virus, Ford said “we know (these employees) did not contract COVID-19 while at work.”

The cases illustrate the potential perils of restarting production amid the COVID-19 pandemic that has claimed more than 5,000 lives in Michigan. Autoworkers employed by Detroit’s automakers returned to work Monday following an eight-week shutdown due to the coronavirus pandemic.

At facilities operated by all three companies, employees must follow stringent health and safety protocols that are designed to help prevent the spread of COVID-19 in plants. Those protocols include wearing personal protective equipment, having their temperatures checked before entering, and daily health self-certifications.

While COVID-19 testing is not available to the entire workforce of any of the automakers, all are making testing available to employees who are experiencing symptoms of the virus or who believe they have been exposed to it. Ford, for example, has contracts with health systems in major metro areas where it operates. In southeast Michigan, the Blue Oval is partnering with Beaumont Health on testing.

General Motors and Fiat Chrysler said Wednesday they have not been forced to stop production at their plants. Starting and stopping production is costly and something automakers would prefer to avoid — except for potential health and safety concerns.

Monday’s resumption of production was the first time that the entire global automotive supply chain and major automakers all came back online at once, posing a major test to the industry. After a two-month shutdown in which the automakers bled billions of dollars, the goal has been to make the restart process as smooth as possible.

END
Trump is stating the obvious:  China is desperate for Joe Biden to win the 2020 election
(zerohedge)_

Trump: China Is “Desperate” For “Sleepy Joe Biden To Win”

Perhaps this November, China will be the new “Russia” in terms of blame-game for outside electoral interference?

President Trump fired off a late-night tweet Wednesday saying China hopes to see presumptive Democratic presidential nominee Joe Biden take the White House so Beijing can could “continue to rip-off the United States, as they have done for decades.”

“China is on a massive disinformation campaign because they are desperate to have Sleepy Joe Biden win the presidential race so they can continue to rip-off the United States, as they have done for decades, until I came along!” the president said in the provocative tweet.

This follows earlier Trump tweets charging Beijing with a carefully orchestrated  “disinformation and propaganda attack on the United States and Europe” which he slammed as “a disgrace.”

“It all comes from the top,” the president added of China’s coronavirus cover-up efforts. “They could have easily stopped the plague, but they didn’t!”

But Trump’s late night post certainly wasn’t the first time China and the November presidential election was invoked.

Biden, for example, recently released an ad which charged that Trump has been too weak on China amid the ongoing COVID-19 pandemic and distastrous economic and unemployment fallout.

As multiple recent polls have suggested, anti-China sentiment among the American public is on the rise in the wake of the corona-crisis, and clearly both candidates’ teams are not only clearly aware, but hope to tap into the growing anger.

 

Via The Intercept

However, a series of China-focused ads out of the Biden campaign have already backfired to a large degree, given the progressive wing of Biden’s constituency are already calling them “racist and xenophobic”.

end
Tyson
Not good:  another outbreak of the COVID///570 workers test positive at a Tyson plant in North Carolina
(zerohedge)

570 Workers Test Positive For COVID At Tyson Plant In North Carolina

Tyson Foods, Inc. is reporting a significant outbreak of COVID-19 at its Wilkesboro, North Carolina poultry plant. It appears the meat processing crisis is far from over, despite President Trump declaring an executive order weeks ago to reopen closed meat processing plants.

Of the 2,244 workers and contractors at Wilkesboro facility who were recently tested, 570 tested positive for the virus, which equates to about 25% of the staff is infected. Many of the workers “did not show any symptoms,” Tyson says.

Workers who tested positive were immediately sent home with paid leave and will return to work once they have met specific criteria laid out by both the CDC and Tyson.

The Wilkesboro facility is among 30 meat processing plants where Tyson has distributed “advanced testing capabilities and enhanced care options on-site to team members in partnership with MATRIX MEDICAL.”

“We are working closely with local health departments to protect our team members and their families, and to help manage the spread of the virus in our communities,” said Tom Brower, Senior Vice President of Health and Safety for Tyson Foods.

“We are using the most up-to-date data and resources to support our team members, and we are committed to ensuring they feel safe and secure when they come to work.”

Tyson has spent the last several weeks installing new health protocols at its plants that exceed CDC and OSHA guidelines for preventing COVID-19. Some of these new measures include:

“These include symptom screenings for all team members before every shift, providing mandatory protective face masks to all team members, as well as a range of social distancing measures including physical barriers between workstations and in break rooms.”

Earlier this month, we described how meat processing plants are perfect environments for COVID-19 to thrive. Here are some of the most recent plants to shutter operations due to virus-related issues.

Here are some of the latest statistics of infected meat processing plant workers

And it appears the meat processing crisis due to COVID-19 continues through late May.

end

Social Security Will Run Out Of Money By 2029 Because Of COVID-19

Authored by Simon Black via SovereignMan.com,

The CDC’s National Center for Health Statistics released some alarming data earlier this week that surprisingly had absolutely nothing to do with Covid for a change.

The report showed that the birthrate in the United States last year declined to its lowest level on record ever since the government began collecting data more than 110 years ago.

This new record low birth rate breaks the previous record set in 2018, which broke the previous record set in 2017, which broke the previous record set in 2016. . .

You get the idea. This has been a long-term issue: people just aren’t having babies anymore. And it’s not just in the Land of the Free.

Fertility rates are low all over the developed world– far below the ‘population replacement level’ of around 2.2 children per mother.

(This is the number of children that demographers say will maintain a steady population.)

In the United States, the average number of births per mother is currently about 1.7. In Australia it’s also around 1.7. In Spain, it’s just 1.5. In Japan, 1.44. In Italy, 1.31. In South Korea, 0.92. And in Singapore, just 0.83.

This list goes on and on. And the fertility rates in most of these countries are hovering near record lows.

Even many large, developing countries have low or declining fertility rates.

In Brazil, for example, the average woman has 1.74 children, which is below the population replacement level. And the rate has been falling steadily for decades.

Even India’s birth rate has been declining, down to just 2.24– less than half the level from the 1980s.

And these statistics were pre-Covid. It certainly stands to reason that with all the economic uncertainty and virus fears, people will delay having children, and potentially have fewer.

This is pretty normal in any economic crisis; according to IMF data, birth rates worldwide plunged following the Great Recession of 2008/2009.

Now, it’s not like a low fertility rate means that some country is going to vanish into the history books.

In Spain, the population declines by an average of just 0.21% per year. And Japan’s population declines by roughly 0.12% per year.

These are trivial numbers… unless you’re thinking about Social Security and national pension funds.

The idea behind most social security programs around the world is that everyone with a job gives up a portion of his/her wages to pay monthly benefits to people who are currently retired.

We do this for our entire careers, with the promise that, when we reach retirement age, the younger generations will pay for our benefits.

This scheme clearly requires a steadily rising population in order to be sustainable:

If you have 1 person receiving benefits today, you’d need 3-4 people paying taxes to support that single beneficiary.

After a few decades, those 3-4 would be retired, requiring around 10-15 workers to support them. And when those 10-15 people retire, you’d need 30-50 workers to support them.

It’s easy to see why low birth rates and declining populations can cause these social security programs to fail.

But Covid is having an even deeper impact on these programs. Because in addition to making the fertility problem worse, Covid has also vanquished tax revenue.

In the US, for example, Social Security is funded almost exclusively by payroll taxes. So when tens of millions of people lose their jobs, payroll tax revenue declines, and Social Security runs a big deficit.

I’ve been writing about this for years: Social Security is already in deep trouble.

The program’s Trustees (which include the Treasury Secretary of the United States) write in their most recent annual report that Social Security’s trust funds will run out of money by 2035.

Again, though, that was pre-Covid. Financial crises tend to make these things a lot worse.

Back in 2007, the last year before the Great Recession, Social Security projected it would run out of money in 2041.

But the financial crisis took such a toll that, after it was over, they revised their projected insolvency date down to 2035.

Social Security hasn’t updated its projection yet to incorporate the Covid impact, and they probably won’t until next year.

But the Bipartisan Policy Center ran the numbers using Social Security’s own financial model. And according to their analysis, Social Security is now set to run out of money in 2029.

That might seem like a long time from now, but from a retirement prospective, it’s just around the corner.

And options for Social Security are extremely limited; the government will either have to (a) radically increase payroll tax rates, and/or (b) make drastic cuts to the monthly benefit they’ve been promising people for decades.

Neither option is good, and most likely they’ll end up doing a combination of both. But not yet.

As this pandemic has proven, they’ll wait until it becomes a major catastrophe before even acknowledging the problem, and then they’ll overreact with worst Draconian measures imaginable.

But any rational person who thinks long-term, however, still has time to plan.

*  *  *

And to continue learning how to ensure you thrive no matter what happens next in the world, I encourage you to download our free Perfect Plan B Guide.

END

Michael Snyder.

 

The Collapse Will Be Very Visible: “For Lease” And “Space Available” Signs Are Going Up All Across America

Authored by Michael Snyder via TheMostImportantNews.com,

Initially, we were told that the coronavirus lockdowns would just “temporarily” disrupt the U.S. economy, but now it is becoming clear that a lot of thedamage will be permanent. 

We are starting to see businesses go belly up all over the country, and this includes some of the most iconic names in the retail world.  When J.C. Penney announced that it would be declaring bankruptcy and closing hundreds of stores, I warned that would just be the tip of the iceberg, and that has definitely turned out to be the case.  In fact, on Wednesday many analysts were absolutely shocked when news broke that Victoria’s Secrethas decided to shut down about 250 stores

Victoria’s Secret plans to permanently close approximately 250 stores in the U.S. and Canada in 2020, its parent company L Brands announced Wednesday.

L Brands also plans to permanently close 50 Bath & Body Works stores in the U.S. and one in Canada, according to information the company posted online as part of its quarterly earnings.

If this pandemic had passed quickly, perhaps those stores wouldn’t have needed to be shut down.  But at this point it has become obvious that this virus is going to be with us for a long time to come.In fact, the WHO just announced that on a global basis we just witnessed the largest number of newly confirmed cases on a single day so far.

Another major retailer that is closing down stores is Pier 1 Imports.  In fact, it is being reported that not a single one of their locations will survive

Pier 1 Imports, which previously said it would close half of its fleet of stores, now plans to close all of its locations.

The retailer, based in Fort Worth, Texas, announced in a news release Tuesday that it was seeking bankruptcy court approval to begin an “orderly wind-down” when stores are able to reopen “following the government-mandated closures during the COVID-19 pandemic.”

I was never a huge fan of Pier 1 Imports, but my wife liked to visit and see what they had, but now we will never be able to do that again.

Something about that really saddens me.

Of course it isn’t just retailers that are collapsing.  Car rental giant Hertz “is on the verge of bankrutpcy”, and things are not looking good at all…

Hertzis on the verge of bankruptcy. At the end of April, it disclosed it had missed a large amount of lease payments on its rental cars. Since then, it has entered into forbearance and waiver agreements with these lenders that give it until May 22 to come up with the money and a plan. Its cars, now parked at various parking lots around the country, are collateral for this debt.

Some of you old timers might remember the old Hertz commercials featuring O.J. Simpson.  Those were much simpler times, and to be honest I really miss them.

Unfortunately, times have really changed, and I seriously doubt that Hertz will be able to survive much longer in this very harsh economic environment.

Needless to say, a lot of businesses are going to die in the weeks and months ahead of us.  As I discussed the other day, it is now being projected that approximately one out of every four restaurants in the United States will be closing down permanently.

Can you imagine what this is going to look like?

We are going to have abandoned buildings all over the place, and this will especially be true in our more impoverished communities.

The only chance we have of pulling out of this economic death spiral is if there is a full scale return to normal economic activity all across America, but that isn’t going to happen any time soon.

Fear of COVID-19 is going to paralyze small and big businesses alike for the foreseeable future, and every new outbreak is going to spark more overreactions.

For instance, Fordjust shut down two major production facilities just a few days after “reopening” them

Just days after reopening its American assembly plants, Ford temporarily shut down two separate factories because employees tested positive for Covid-19.

One plant in Chicago that builds the Ford Explorer, the Lincoln Aviator and the Ford Interceptor police car stopped operations Tuesday afternoon after two employees tested positive for Covid-19. Then, Ford’s plant in Dearborn Michigan that makes its bestselling F-150 pickup, shut down Wednesday.

If we keep shutting things down every time someone gets sick, our economic problems are just going to get worse and worse.

Look, the truth is that lots more people are going to get sick and lots more people are going to die.  In fact, one new study has concluded that the U.S. death toll will more than triple by the end of 2020 “even if current social distancing habits continue for months on end”

A new study suggests the number of Americans who will die after contracting the novel coronavirus is likely to more than triple by the end of the year, even if current social distancing habits continue for months on end.

The study, conducted by the Comparative Health Outcomes, Policy and Economics Institute at the University of Washington’s School of Pharmacy, found that 1.3 percent of those who show symptoms of COVID-19 die, an infection fatality rate that is 13 times higher than a bad influenza season.

Of course it certainly doesn’t help that we continue to allow people from other countries where COVID-19 is raging to fly into the U.S. without any special screening whatsoever

A glamorous Russian blogger says she has proved that the US is open for foreign tourism again, despite the pandemic, according to video obtained by DailyMail.com.

Sofia Semyonova, 33, a fitness model, told how she traveled on a crammed Aeroflot flight with 500-plus passengers with ‘no social distancing’ from Moscow to New York City.

She used her B2 tourist visa to enter America from Russia’s coronavirus epicentre ‘in 30 seconds without any extra questions’.

I don’t know how this could possibly be happening, but apparently it is.

Eventually, COVID-19 will literally be just about everywhere, and almost everyone in the entire country will be exposed to it.

And fear of this virus will paralyze our economy for the foreseeable future.

So the truth is that the “for lease” and “space available” signs that you are now seeing are just the start.

A lot more are coming, and it is going to be a very dark chapter for our nation.

END

iv) Swamp commentaries)

Supreme court so far says no to the Democrats who want the full Mueller grand jury material

(zerohedge)

Nada For Nadler: Supreme Court Blocks House Democrats From Receiving Mueller Grand Jury Material

The US Supreme Court on Wednesday handed the Trump administration a win – blocking a request by the House Judiciary Committee for grand jury material gathered by Robert Mueller’s special counsel investigation. The court issued a stay while an appeal over the records plays out.

That said, the court put the case on a fast track, giving the Trump administration until June 1 to file its appeal, which Bloomberg infers to mean that the court will likely announce before the end of June or July whether it will hear arguments late this year.

Earlier this year, DOJ officials were ordered by two lower courts to hand over redacted portions of Mueller’s 448-page report at the request of the House committee chaired by Rep. Jerrold Nadler (D-NY) – who argued that they ‘urgently’ needed to see redacted materials.

The administration says a federal trial judge lacked power to unseal the information. Grand jury materials are normally sealed, but federal rules let a judge authorize disclosure for “judicial proceedings.” The key legal question is whether that includes House impeachment inquiries.

A federal appeals court ruled that impeachment proceedings qualified, saying courts had let lawmakers see grand jury materials during the impeachment inquiries of Presidents Richard Nixon and Bill Clinton. U.S. Solicitor GeneralNoel Francisco asked the Supreme Court to put that ruling on hold.

“The government will suffer irreparable harm absent a stay,” Francisco argued. “Once the government discloses the secret grand-jury records, their secrecy will irrevocably be lost.”

House General Counsel Douglas Letter countered that lawmakers had already waited more than a year for the information. -Bloomberg

“The committee and the public continue to suffer grave and irreparable injury each additional day the district court’s order is prevented from going into effect,” wrote the House General Counsel, adding “The committee is being deprived of the information it needs to exercise its weighty constitutional responsibility.

The records were originally sought as part of the impeachment inquiry last year, before Democrats hit a dead end and impeached Trump over his communications with the Ukrainian president regarding an investigation of former Vice President Joe Biden. The impeachment effort was stopped in the GOP-controlled Senate.

 end
Susan Rice was directed by the Obama White House to draft that letter to herself. It looks like Rice and Obama are throwing Comey under the bus.
(zerohedge)

Susan Rice Was Directed By Obama White House To Draft Inauguration Day Email To Herself

A 2017 Inauguration Day email that former national security adviser Susan Rice sent to herself documenting a January 5 Oval Office meeting discussing the case against her successor Michael Flynn was done so at the direction of White House counsel, according to Fox News.

The meeting documented in Rice’s memo included Obama, former VP Joe Biden and former FBI Director James Comey, who – according to Rice, “does have some concerns that incoming NSA Flynn is speaking frequently with Russian Ambassador Kislyak.”

“Given the importance and sensitivity of the subject matter, and upon the advice of the White House Counsel’s Office, Ambassador Rice created a permanent record of the discussion,” Rice’s attorney Kathryn Ruemmler wrote to senators in 2018. “Ambassador Rice memorialized the discussion on January 20, because that was the first opportunity she had to do so, given the particularly intense responsibilities of the National Security Advisor during the remaining days of the administration and transition.”

Acting Director of National Intelligence Richard Grenell declassified the previously redacted section of Rice’s email and Sen. Ron Johnson, R-Wis., made it public on Tuesday.

That section says Comey suggested to Obama that the National Security Council [NSC] might not want to pass “sensitive information related to Russia” to incoming national security adviser Flynn.

The email pointed to what were apparently widespread concerns about Flynn’s Russia contacts. Multiple sources confirmed to Fox News that what initially put Flynn on the radar was the number of interactions he had with senior Russian government officials in 2016, as laid out in various intelligence reports viewed by Obama White House officials. –Fox News

Damage control?

For those who aren’t buying the given explanation for the email, ‘Sundance’ of The Conservative Treehouse has an interesting theory that it was written to cover up the fact that Obama knew all about the Flynn investigation.

 
end
Republicans subpoena Blue Star strategies in the Biden-Burisma probe
(zerohedge)

GOP Senators Issue Subpoena In Biden-Burisma Probe

The GOP-controlled Senate Homeland Security Committee on Wednesday voted to issue a subpoena to a Democratic consulting firm, Blue Star Strategies, which Ukrainian energy company Burisma Holdings paid $60,000 in November 2015 in connection with efforts to help end a long-running investigation in Ukraine. Burisma notoriously employed Hunter Biden to sit on its board – paying him upwards of $50,000 per month.

The vote to subpoena Blue Star was passed 8-6 along party lines.

Blue Star responded to the subpoena Wednesday in a letter to Johnson, writing that they don’t understand the need for a subpoena, as they have cooperated – or intend to cooperate – with the committee “at every opportunity” in what Democrats are calling a politically motivated probe.

Sen. Gary Peters of Michigan, the top Democrat on the Committee, said the committee should be focusing on the pandemic instead of Hunter Biden.

“We’re in the midst of a pandemic with over 90,000 people who have lost their lives, we’ve got an unprecedented amount of unemployment that’s sweeping across the country,” Peter told reporters. “We need to be focused on the crisis.

But Johnson says that he’s moving forward with the investigation because people “need to know the truth.” –NBC News

In March, Johnson said he wanted to specifically address matters involving Andrii Telizhenko – a former Blue Star consultant who hid behind a nondisclosure agreement.

“Because Mr. Telizhenko’s records and information would be responsive to the committee’s requests, and Blue Star has refused to provide them, a subpoena to Mr. Telizhenko for these records is appropriate at this time,” read a March letter Johnson sent to members of his committee. “Accordingly, I will be scheduling a vote in the near future to approve issuing the enclosed subpoena.”

“Blocking the receipt of relevant records, as any committee member voting against this subpoena would be doing, only heightens the risk of ‘disinformation’ because Congress would not have access to all pertinent information,” he added.

Hunter Biden was paid upwards of $50,000 per month to sit on Burisma’s board while his father was Vice President, and Obama’s point-man on Ukraine policy – where he notoriously forced the country’s prior administration to fire a prosecutor investigating the energy giant.

Meanwhile, Hunter and his colleagues had multiple contacts with the Obama State Department during the 2016 election cycle – just one month before Joe Biden forced Ukraine to fire the prosecutor investigating Burisma for corruption, according to investigative journalist John Solomon.

Via John Solomon Reports:

During that February 2016 contact, a U.S. representative for Burisma Holdings sought a meeting with Undersecretary of State Catherine A. Novelli to discuss ending the corruption allegations against the Ukrainian firm where Hunter Biden worked as a board member, according to memos obtained under a Freedom of Information Act lawsuit. (I filed that suit this summer with the help of the public interest law firm the Southeastern Legal Foundation.)

Just three weeks before Burisma’s overture to State, Ukrainian authorities raided the home of the oligarch who owned the gas firm and employed Hunter Biden, a signal the long-running corruption probe was escalating in the middle of the U.S. presidential election.

Hunter Biden’s name, in fact, was specifically invoked by the Burisma representative as a reason the State Department should help, according to a series of email exchanges among U.S. officials trying to arrange the meeting. The subject line for the email exchanges read simply “Burisma.”

“Per our conversation, Karen Tramontano of Blue Star Strategies requested a meeting to discuss with U/S Novelli USG remarks alleging Burisma (Ukrainian energy company) of corruption,” a Feb. 24, 2016, email between State officials read. “She noted that two high profile U.S. citizens are affiliated with the company (including Hunter Biden as a board member).

“Tramontano would like to talk with U/S Novelli about getting a better understanding of how the U.S. came to the determination that the company is corrupt,” the email added. “According to Tramontano there is no evidence of corruption, has been no hearing or process, and evidence to the contrary has not been considered.”

At the time, Novelli was the most senior official overseeing international energy issues for State. The undersecretary position, of which there are several, is the third-highest-ranking job at State, behind the secretary and deputy secretary. And Tramontano was a lawyer working for Blue Star Strategies, a Washington firm that was hired by Burisma to help end a long-running corruption investigation against the gas firm in Ukraine.

Tramontano and another Blue Star official, Sally Painter, both alumni of Bill Clinton’s administration, worked with New York-based criminal defense attorney John Buretta to settle the Ukraine cases in late 2016 and 2017. I wrote about their efforts previously here.

Burisma Holdings records obtained by Ukrainian prosecutors state the gas firm made a $60,000 payment to Blue Star in November 2015.

end

Flynn was target by Christopher Steele in Oct 2016, long before his “unmasking”. Actually his unmasking was not down by the NSA but by the FBI itself.  They intercepted the Dec 29.2016 meeting with Flynn and Kislyak.

Flynn Targeted By Christopher Steele After FBI Offered To Pay Ex-Spook ‘Significantly’

In the weeks leading up to the 2016 election, the FBI offered to pay former British spy Christopher Steele “significantly” for collecting intelligence on Michael Flynn, according to the Daily Caller‘s Chuck Ross.

The FBI’s proposal – made during an October 3, 2016 meeting in an unidentified European city, and virtually ignored by the press – has taken on new significance in light of recent documents exposing how the Obama administration targeted Flynn before and after president Trump’s upset victory over Hillary Clinton in 2016.

The inspector general’s report, released on Dec. 9, 2019, said that FBI agents offered to pay Steele “significantly” to collect intelligence from three separate “buckets” that the bureau was pursuing as part of Crossfire Hurricane, its counterintelligence probe of four Trump campaign associates.

One bucket was “Additional intelligence/reporting on specific, named individuals (such as [Carter Page] or [Flynn]) involved in facilitating the Trump campaign-Russian relationship,” the IG report stated.

FBI agents also sought contact with “any individuals or sub sources” who Steele could provide to “serve as cooperating witnesses to assist in identifying persons involved in the Trump campaign-Russian relationship.”

Steele at the time had provided the FBI with reports he compiled alleging that members of the Trump campaign had conspired with the Kremlin to influence the 2016 election. –Daily Caller

Of note, Steele was promoting a discredited rumor that Flynn had an extramarital affair with Svetlana Lokhova, a Russian-British academic who studied at the University of Cambridge. This rumor was amplified by the Wall Street Journal and The Guardian in March, 2017.

According to the Inspector General’s report, the FBI gave Steele a “general overview” of their Crossfire Hurricane probe – including their efforts to surveil Trump campaign aides George Papadopoulos and Carter Page, along with Paul Manafort and Flynn. In fact – some FBI agents questioned whether the lead agent told Steel too much about the operation, according to the IG report.

 

Via the Daily Caller

In recent weeks, the release of two documents raise questions about potential links between the FBI’s request of Steele and the Lokhova rumor.

One of the documents is a transcript of longtime John McCain associate David Kramer’s interview with the House Intelligence Committee. Kramer testified on Dec. 17, 2017, that Steele told him in December 2016 that he suspected that Flynn had an extramarital affair with a Russian woman.

“There was one thing he mentioned to me that is not included here, and that is he believed that Mr. Flynn had an extramarital affair with a Russian woman in the U.K.,” Kramer told lawmakers.

Kramer said that Steele conveyed that Flynn’s alleged mistress was a “Russian woman” who “may have been a dual citizen.”

An FBI memo dated Jan. 4, 2017, contained another allegation regarding Flynn and a mysterious Russian woman.

The memo, which was provided to Flynn’s lawyers on April 30, said that an FBI confidential human source (CHS) told the bureau that they were present at an event that Flynn attended while he was still working in the U.S. intelligence community. –Daily Caller

Lokhova and Flynn have denied the rumors – with Lokhova’s husband telling the Daily Caller News Foundation that he picked his wife up after the Cambridge dinner where an FBI informant said they ‘left together in a cab.’

Meanwhile, a DIA official who was at the Cambridge event with Flynn also told the WSJ in March 2017 that there was nothing inappropriate going on between Flynn and Lokhova.

Read the rest of the report here.

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

CDC now says coronavirus ‘does not spread easily’ via contaminated surfaces [another CDC reverse]

The change comes after a preliminary study from March suggested that the novel coronavirus can remain in the air for up to three hours, and live on surfaces such as plastic and stainless steel for up to three days, prompting many to take to wiping down packages and other items. However, at the time, the study was yet not peer-reviewed… [Once again, CDC’s initial ‘science’ was wrong.  Was it a scheme to frighten and panic people for political purposes and to advance certain healthcare agendas?]

https://www.foxnews.com/health/cdc-now-says-coronavirus-does-not-spread-easily-via-contaminated-surfaces

Former WHO doctor says coronavirus cases are not increasing as expected in areas that reopen

“It’s as though something has changed, and none of us can explain why.”

https://justthenews.com/politics-policy/coronavirus/former-who-doctor-says-coronavirus-cases-are-not-increasing-expected

“Trust Is Being Undermined” – Harvard Medical School Prof Questions Fauci’s “Shading” [Moderna] Vaccine Results – “Whether [Fauci] shaded what should have been done, I think is an important question. He’s obviously under enormous pressure for positive results but it was not the right thing to do if you can’t see the data.”…

https://www.zerohedge.com/markets/trust-being-undermined-harvard-medical-school-prof-questions-faucis-shading-vaccine-results

CNBC’s @carlquintanilla: JPMorgan has a devastating piece arguing that infection rates have declined — not increased — in states where lockdowns have ended, “even after allowing for an appropriate measurement lag.” (Kolonavic)

    Same goes for various countries, adds JPM. “This means that the pandemic and COVID-19 likely have its own dynamics unrelated to often inconsistent lockdown measures that were being implemented…

    In the absence of conclusive data, these lockdowns were justified initially.” But “millions of lives were being destroyed. .. with little consideration that [lockdowns] might not only cause economic devastation but potentially more deaths than COVID-19 itself.”…

https://twitter.com/carlquintanilla/status/1263170459450978314

The Bank of England said it will NOT rule out negative rates.  NIRP has done little for Europe except to neuter its banking system.

BOE’s Bailey Says now Is the Time to Review How Low Rates Can Go [Deceptive headline]

When asked about the prospect of negative rates by U.K. lawmakers, Bailey said the BOE wasn’t in the habit of ruling out any policy, but wouldn’t rule them in either. The key rate is currently at just 0.1%, and policy makers have previously indicated their lower bound for rates was close to zero…

    Bailey added the BOE was keen to observe the impact of its previous U.K. rate cuts, bearing in mind arguments that they become less effective the closely to zero they are. It’s also examining the experience of other central banks who have cut below zero, he said, adding the financial system in an economy, and officials’ communication, are both important…

https://www.bloomberg.com/news/articles/2020-05-20/bailey-says-boe-is-not-ruling-out-negative-interest-rates

Bailey’s speech to UK lawmakers began at 9:40 ET.  ESMs were already up 34 handles at that time on hopes (or delusions) over the re-opening of the US economy.

Commodities soared again as inflation is coursing through the US economic system.  WTI Oil rallied as much as 5.5%.  With half of US states opening by this weekend, traders and operators are pouring into ‘stuff’ without knowledge of the extent or magnitude of the looming economic rebound.

68% of Unemployed Workers in The U.S. “Are Eligible For Payments That Are Greater Than Their Lost Earnings – A new analysis by Peter Ganong, Pascal Noel and Joseph Vavra, economists at the University of Chicago,1 uses government data from 2019 to estimate that 68 percent of unemployed workers who can receive benefits are eligible for payments that are greater than their lost earnings. They also found that the estimated median replacement rate — the share of a worker’s original weekly salary that is being replaced by unemployment benefits — is 134 percent, or more than one-third above their original wage…

http://theeconomiccollapseblog.com/archives/68-of-unemployed-workers-in-the-u-s-are-eligible-for-payments-that-are-greater-than-their-lost-earnings

Doctors raise alarm about health effects of continued coronavirus shutdown: ‘Mass casualty incident’ – More than 600 doctors signed onto a letter sent to President Trump Tuesday pushing him to end the “national shutdown” aimed at slowing the spread of the coronavirus, calling the widespread state orders keeping businesses closed and kids home from school a “mass casualty incident” with “exponentially growing health consequences.”…

https://www.foxnews.com/politics/doctors-raise-alarm-about-health-effects-of-continued-coronavirus-shutdown

Northwestern Memorial [Chicago] prepares for mental health crisis

The United Nations warned of an emerging mental health crisis as a result of the COVID-19 pandemic in a Thursday report. It cites higher levels of depression and anxiety globally, which may be exacerbated by factors like social isolation and domestic violence…

    Northwestern Memorial has also seen a surge in patients who have been struggling with mental health issues caused by the pandemic…

https://dailynorthwestern.com/2020/05/17/campus/northwestern-doctors-face-challenges-in-psychiatric-care-anticipate-mental-health-crisis-ahead/

NBER: Job loss and income declines – drivers of poverty – often precede episodes of mental illness (Olesen et al., 2013; Alloush, 2018). Evidence from natural experiments confirms that this relationship is causal, and not driven by omitted factors  areas more exposed to trade liberalization with China saw reduced income and employment for some groups of workers and increased mortality through suicide among those same groups (Pierce and Schott, 2016).Whether job loss worsens mental health beyond the impacts of the associated loss of income is unclear, but both mechanisms are argued to play a role in the phenomenon of ‘deaths of despair’ (Case and Deaton, 2020)…

https://www.nber.org/papers/w27157.pdf

Illinois Sheriff Revolts Against Lockdown: ‘We Are Not Stormtroopers. We Are Peacekeepers’

Sheriff James Mendrick of DuPage County, IL, broke his silence in the wake of the Chinese virus pandemic-induced lockdown rules that have businesses gasping to survive. “As Sheriff, I feel that my own 1st amendment constitutional right to free speech has been completely trampled on by a governor who has threatened my Offices’ reimbursement and grant funds as a tool to force me not to speak,” he wrote. “I just can’t do this anymore. I stand with our citizens and businesses of DuPage County who have offered no trouble or no resistance to any rule we put upon them, no matter how strange.”…

https://pjmedia.com/news-and-politics/megan-fox/2020/05/18/sheriff-revolts-against-lockdown-we-are-not-stormtroopers-we-are-peacekeepers-n401779

Illinois State Police Say They Won’t Arrest People Violating Stay-at-Home Order

The announcement from ISP comes after Pritzker’s administration implemented a new rule that would allow for businesses to face Class A misdemeanor charges if they open in violation of the state’s ongoing stay-at-home order… 

https://www.nbcchicago.com/news/coronavirus/state-police-say-they-wont-arrest-people-violating-stay-at-home-order/2275267/

Questions grow over Pritzker’s ties to COVID-19 testing companies

Some of the companies the Pritzker family has invested in may be making money off the pandemic…

https://www.fox32chicago.com/news/questions-grow-over-pritzkers-ties-to-covid-19-testing-companies

  

DOJ warns Calif. Gov. Newsom the state’s reopening plans could violate religious freedoms

Sectors such as the entertainment and eCommerce industries are being allowed to resume operations…

https://www.oann.com/doj-warns-calif-gov-newsom-the-states-reopening-plans-could-violate-religious-freedoms/

[France] Colmar: traces of coronavirus detected on a scanner from November 16

https://www.lefigaro.fr/sciences/colmar-des-traces-du-coronavirus-detectees-sur-un-scanner-des-le-16-novembre-20200519

Susan Rice’s ‘team’ threw Obama’s WH counsel under the Obamagate bus!

Fox’s @GillianHTurner: @AmbassadorRice’s team confirms to Fox News that she was directed by White House Counsel to write the Jan 20, 2017 memorandum documenting an Oval Office meeting in which President Obama & National Security officials discussed Michael Flynn.

 

@seanmdav: Well well well. The plot thickens. Now why would the White House counsel instruct the NSA to write an e-mail on Inauguration Day, two weeks after the meeting, claiming that Obama was merely a passive attendee of a meeting he clearly organized and ran?

Susan Rice’s resurfaced 2017 comments denying knowledge of Trump team surveillance raise eyebrows – However, the newly released email appeared to indicate Rice had knowledge of the surveillance that took place that led to the “unmasking” of then-incoming National Security Adviser (NSA) Michael Flynn from his communications with the then-Russian ambassador…

https://www.foxnews.com/politics/susan-rice-resurfaced-2017-comments-deny-knowledge-trump-team-surveillance-flynn

Has Susan Rice Made Herself a “Target” for Durham Probe with Language in Her CYA Memo?

False statements by Susan Rice in her January 20, 2017 “Memorandum to File” potentially expose her to criminal prosecution… Andy McCarthy has posited… that the true purpose of the Memorandum written by Rice was to allow Pres. Obama to point the finger of blame at Comey for whatever might happen in the aftermath of the transition into power of the Trump Administration.  According to Rice’s Memorandum, Pres. Obama told Comey to do everything “by the book”, and if Comey did not do so then Comey — and only Comey — was to blame…

https://www.redstate.com/shipwreckedcrew/2020/05/20/has-susan-rice-made-herself-a-target-for-durham-probe-with-langauge-in-her-cya-memo/

Barr met [3/25/19] with prosecutor now reviewing Russia probe immediately after Mueller investigation ended, documents reveal    https://www.cnn.com/2020/05/20/politics/barr-russia-prosecutor-mueller/index.html

Ukraine judge orders Joe Biden be listed as alleged perpetrator of crime in prosecutor’s firing

Latest twist in Ukraine impeachment drama could stretch into Biden’s fall campaign as fired prosecutor seeks legal remedy in courts

https://justthenews.com/accountability/russia-and-ukraine-scandals/ukraine-judge-orders-joe-biden-be-listed-alleged

A party divided: just 55% of Democrats say Biden is strongest candidate to run against Trump

Sanders is in second… at 20%… Gov. Andrew Cuomo (D-N.Y.) came in third place with 14%…

https://justthenews.com/politics-policy/polling/party-divided-just-55-democrats-say-biden-strongest-candidate-run-against

The biggest reason that Dems have not bumped Biden yet is that they have no good options right now.

Media knives out for [CBS’s] Catherine Herridge — for reporting Obamagate straight

Herridge… has been subjected to abuse by Joe Biden’s campaign mouthpiece and backstabbed by her colleagues in recent days… That’s what happens when you play it straight rather than distort the news to serve anti-Trump talking points… Most mainstream outlets have tilted liberal for decades, of course. But today’s media bias is something else. Many supposedly straight-news reporters now openly see themselves as part of a project to delegitimize the Trump administration — and to humiliate its supporters. They are proud of this. They don’t even bother to hide it on Twitter…

https://nypost.com/2020/05/19/media-knives-out-for-catherine-herridge-for-reporting-obamagate-straight/

Is Big Pharma Suppressing Hydroxychloroquine?

I haven’t been able to ascertain whether HCQ is manufactured in the U.S., but I do read that India “manufactures 70% of the world’s supply” of HCQ. Perhaps the concerns of Texas State Senator Hall about “collusion” are valid. Perhaps Big Pharma is seeking a ban on the off-label use of a drug that is so dirt cheap that they can’t make any money making it.

https://www.americanthinker.com/articles/2020/05/is_big_pharma_suppressing_hydroxychloroquine.html#.XsWWA-ZwzPU.twitter

Forecast from University Of Pennsylvania’s Wharton School model predicts COVID-19 cases will reach 5.4 million and death toll could be 290,000 by July 24 [We’ll take the under.]

    Meanwhile, a separate model from the UMass Influenza Forecasting Center of Excellence is projecting that deaths will surpass 113,000 by mid-June… [Save this item for future judgement]

https://www.dailymail.co.uk/news/article-8340325/5million-Americans-infected-COVID-19-July-model-shows.html

The best way to take control over a people and control them utterly is to take a little of their freedom at a time, to erode rights by a thousand tiny and almost imperceptible reductions. In this way, the people will not see those rights and freedoms being removed until past the point at which these changes cannot be reversed.” – Pat Miller, author

Well that is all for today

I will see you FRIDAY night.

One comment

  1. […] by Harvey Organ of Harvey Organ Blog […]

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