MAY 27 GOLD UP 10 CENTS DESPITE BANKER RAID//GOLD FINISHES AT $1712.30//SILVER UP 13 CENTS TO $17.27//ANOTHER HUGE ADVANCE IN GLD UP 2.4 TONNES//CORONAVIRUS UPDATES//POMPEO ANNOUNCES HONG KONG NO LONGER INDEPENDENT FORM CHINA//ANDREW MAGUIRE: A MUST VIEW PODCAST//CHINESE YUAN PLUMMETS IN VALUE//CHINESE STUDY VERIFIES LUC MONTAGNIER’S CLAIM THAT THE CONRONAVIRUS IS MAN MADE…A MUST READ…//MORE SWAMP STORIES FOR YOU TONIGHT

GOLD::$1712.30  UP $0.10   The quote is London spot price

 

 

 

 

 

Silver:$17.27  UP 13 CENTS (London spot closing price

OTC/LBMA OPTIONS EXPIRY FRIDAY MAY 29

 

 

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

Power outage from 1 pm to 8 pm
out of the loop from then on
I will catch up by tomorrow
H

Closing access prices:  London spot

 

 

i)Gold : $1709.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.09//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

MAY COMEX GOLD:  XXX

 

JUNE GOLD:  $XXX  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $5.//BACKWARDATION

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:                          $XXX//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      48 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: 0/10

none issued

 

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 10 NOTICE(S) FOR 1000 OZ (0.0311 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  10272 NOTICES FOR 1027200 OZ  (31.950 TONNES)

 

 

SILVER

 

FOR MAY

 

 

124 NOTICE(S) FILED TODAY FOR  620,000  OZ/

total number of notices filed so far this month: 9043 for 45,215,000 oz

 

BITCOIN MORNING QUOTE  $9119 UP $274

 

BITCOIN AFTERNOON QUOTE.: $9184  DOWN $20

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $.10 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 

ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.34 TONNES OF GOLD INTO THE GLD

 

GLD: 1,119.05 TONNES OF GOLD//

 

WITH SILVER UP 13 CENTS TODAY: AND WITH NO SILVER AROUND

NO CHANGES IN SILVER INVENTORY AT THE SLV///

RESTING SLV INVENTORY TONIGHT:

 

SLV: 455.817  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A STRONG SIZED 1448 CONTRACTS FROM 156,737 UP TO 158,185 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED DESPITE  OUR VERY SMALL 9 CENT LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE  GAIN IN COMEX OI IS DUE TO STRONG  BANKER SHORT COVERING PLUS A STRONG 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 2128 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUMONGOUS AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  MAY: 0 AND JULY: 680  AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  680 CONTRACTS. WITH THE TRANSFER OF 680 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 680 EFP CONTRACTS TRANSLATES INTO 3.400 MILLION OZ  ACCOMPANYING:

1.THE 9 CENT LOSS 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

45.220 MILLION OZ INITIALLY STANDING FOR MAY

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 9 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY AMOUNT OF SILVER LONGS FROM THEIR POSITIONS. THE SMALL 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 2128 CONTRACTS OR 10.680 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:

13,899 CONTRACTS (FOR 18 TRADING DAYS TOTAL 13,899 CONTRACTS) OR 69.0495 MILLION OZ: (AVERAGE PER DAY: 772 CONTRACTS OR 3.887 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 69.05 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 9.86% 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:          1,057.89 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:                   69.05 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 1448, DESPITE OUR SMALL 9 CENT LOSS IN SILVER PRICING AT THE COMEX ///TUESDAY THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 680 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:  2128 CONTRACTS (DESPITE OUR 9 CENT LOSS IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 680 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED INCREASE OF 1448 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A SMALL 9 CENT LOSS IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.14 // TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

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

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 124 NOTICE(S) FOR  620,000 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  45.220 MILLION OZ
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A CONSIDERABLE SIZED 8349 CONTRACTS TO 519,374 AND FURTHER FORM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE CONSIDERABLE SIZED LOSS OF COMEX OI OCCURRED WITH OUR HUGE COMEX LOSS IN PRICE  OF $23.05 /// COMEX GOLD TRADING// TUESDAY// WE  HAD STRONG BANKER SHORT COVERING ,HUGE  SPREADER COMEX GOLD LIQUIDATION, A SMALL SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A HUGE  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR LARGE LOSS IN THE PAPER PRICE OF GOLD.

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

 

WE LOST A GOOD SIZED 3229 CONTRACTS  (10.043 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUGE SIZED 11,576 CONTRACTS:

CONTRACT. MAY: 0, AND JUNE 11,576.; AUG 0 AND ALL OTHER MONTHS ZERO//TOTAL: 11,576.  The NEW COMEX OI for the gold complex rests at 519,374. 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  SMALL SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 3229 CONTRACTS: 8349 CONTRACTS DECREASED AT THE COMEX (MOSTLY FROM SPREADER LIQUIDATION) AND 11,576 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 3229 CONTRACTS OR 10.043 TONNES. TUESDAY, WE HAD A HUGE LOSS OF $23.05 IN GOLD TRADING……

AND WITH THAT LOSS IN  PRICE, WE HAD A GOOD SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 10.043 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT FELL $23.05).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 

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A HUGE SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (11,576) ACCOMPANYING THE SMALL SIZED LOSS IN COMEX OI  (8349 OI): TOTAL GAININ THE TWO EXCHANGES:  3229 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)A SMALL INCREASE IN OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT MAY MONTH,  3) ZERO LONG LIQUIDATION; 4) CONSIDERABLE COMEX OI LOSS5) HUGE GOLD COMEX SPREADER LIQUIDATION  AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG LOSS IN GOLD PRICE TRADING//TUESDAY//$23.05

THE STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS IS DUE TO THE LACK OF PREMIUM IN GOLD  (UNLIKE SILVER).  IT IS NOW PROFITABLE FOR THE BANKERS TO ENGAGE IN THESE VEHICLES DUE TO THE LACK OF PREMIUM IN GOLD.

 

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 : 70,932 CONTRACTS OR 7,093,200 oz OR 220.62 TONNES (18 TRADING DAYS AND THUS AVERAGING: 3940 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 18 TRADING DAY(S) IN  TONNES: 220.62 TONNES

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

THUS EFP TRANSFERS REPRESENTS 220.62/3550 x 100% TONNES =6.21% 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   2781.47  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:                     190.84 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 1448 CONTRACTS FROM 156,737 UP TO 158,185 AND CLOSER TO OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

ALL OF THE GAIN IN COMEX OI WAS DUE TO 1) CONSIDERABLE BANKER SHORT COVERING , 2) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A TINY DECREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 680 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: 680 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 680 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 1685 CONTRACTS TO THE 680 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  STRONG GAIN OF 2128 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 10.681 MILLION  OZ!!! OCCURRED WITH THE 9 CENT LOSS IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 9 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// TUESDAY. WE ALSO HAD A STRONG SIZED 680 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

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

(report Harvey)

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 9.74 POINTS OR 0.34%  //Hang Sang CLOSED DOWN 88.30 POINTS OR 0.36%   /The Nikkei closed UP 148.06 POINTS OR 0.30%//Australia’s all ordinaires CLOSED DOWN .09%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1563 /Oil UP TO 33.97 dollars per barrel for WTI and 35.59 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1563 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1715 TRADE TALKS STALL//YUAN LEVELS GETTING VERY DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST  FELL BY A CONSIDERABLE SIZED 8349 CONTRACTS TO 519,374 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 CONSIDERABLE COMEX OI LOSS WAS SET WITH OUR HUGE LOSS OF $23.05 IN GOLD PRICING /TUESDAY’S COMEX TRADING//). WE ALSO HAD A HUGE EFP ISSUANCE (11,576 CONTRACTS),.  THUS WE HAD 1) STRONG BANKER SHORT COVERING AT THE COMEX AND 2)   ZERO  LONG LIQUIDATION AND 3)  ANOTHER INCREASE IN GOLD OZ STANDING AT THE COMEX//MAY DELIVERY MONTH , STRONG SPREADER LIQUIDATION, AND A CONSIDERABLE COMEX OI LOSS//  …  AS WE ENGINEERED A CONSIDERABLE GAIN ON TWO EXCHANGES OF 3229 CONTRACTS DESPITE GOLD’S FALL IN PRICE.  

 

 

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 STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 11576 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 0, MAY: 0  JUNE : 11576 AND 0 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 11576 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:  3229 TOTAL CONTRACTS IN THAT 11576 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE SIZED 8349 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A HUGE AMOUNT OF EXCHANGE FOR PHYSICALS WITH STRONG BANKER SHORT COVERING,  HUGE  SPREADER LIQUIDATION ACCOMPANYING A CONSIDERABLE DECREASE IN COMEX OI  , A GOOD INCREASE IN GOLD TONNAGE STANDING FOR DELIVERY (SEE CALCULATIONS BELOW)… AND  ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A CONSIDERABLE LOSS  IN COMEX PRICE..BASICALLY ALL OF THE LOSS IN COMEX OI WAS DUE TO THE SPREADER LIQUIDATION.

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL BY $23.05).  AND, THEY WERE  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL LOSS ON THE TWO EXCHANGES REGISTERED A CONSIDERABLE 6.95 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 3229 CONTRACTS OR 322,900 OZ OR 10.043 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:  519,374 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 51.93 MILLION OZ/32,150 OZ PER TONNE =  1615 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1615/2200 OR 73.42% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 445,072 contracts//volume higher than normal//SPREADERS LIQUIDATION

CONFIRMED COMEX VOL. FOR YESTERDAY272,155 contracts// volume still very low

MAY 27 /2020

MAY GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
5152.012 oz
Brinks
Int Delaware
Manfra
Deposits to the Dealer Inventory in oz 107,033.035 oz

BRINKS

 

 

 

Deposits to the Customer Inventory, in oz  

103,738.25

OZ

BRINKS

Malca

includes

 

2400 kilobars

 

 

No of oz served (contracts) today
10 notice(s)
 1000 OZ
(0.0311 TONNES)
No of oz to be served (notices)
3 contracts
(,300 oz)
0.0093 TONNES
Total monthly oz gold served (contracts) so far this month
10,272 notices
1,027,200 OZ
31.95 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: 107,033.035 oz

 

 

 

total dealer deposits:  107,033.035 oz

 

total dealer withdrawals: nil oz

we had 2 deposits into the customer account

 

 

 

 

i) Brinks: 26,575.85 oz

ii) Into Malca:  77,162.400 oz  (2400 kilobars)

 

 

 

 

 

total deposits: 103,738.25    oz

 

 

we had 3 gold withdrawals from the customer account:

 

i) Out of  Brinks  1002.5 oz

ii) Out of Int Delaware; 3279.402 oz

iii) Out of Manfra: 870.205 oz

 

 

 

 

 

 

total gold withdrawals;  5152.012   oz

We had 1  kilobar transactions  +

 

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

 

 

 

 

ADJUSTMENTS: 1 //    

 

dealer to customer//

 

i) From Brinks: 5000.500 oz  dealer to customer

 

 

 

 

 

 

The front month of May registered a total of 13 oi contracts for a GAIN of contracts. We had 0 notices filed upon yesterday so we GAINED 8 contracts or an additional 800 oz will stand as these guys refused to morph into London based forwards and thus negated a fiat bonus.  There is basically no gold to be found over here as well as London.

The next delivery month after May is the huge delivery month of June.  Here June saw a LOSS OF 72,244 contracts DOWN to 95,572 contracts. July had a GAIN of 1332 OI contracts  and thus 1970 contracts  outstanding.  Next comes August another strong delivery month and here the OI ROSE by 60,150 contracts up to 306,954 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 have 2 more reading days before first day notice Friday, May 29.2020.   We may have a 100 tonnes of gold standing for June.

 

 

We had 10 notices filed today for 1000 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 10 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 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 (10,272) x 100 oz , to which we add the difference between the open interest for the front month of  May. 13x CONTRACTS ) minus the number of notices served upon today (10 x 100 oz per contract) equals 1,027,500 OZ OR 31.959 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 (10,272)x 100 oz + (13 OI) for the front month minus the number of notices served upon today (10) x 100 oz which equals 1,027500 oz standing OR 31.959 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 8 contracts or an additional 800 oz will seek out metal on this side of the pond

 

 

 

NEW PLEDGED GOLD:  BRINKS

3027.500 OZ  REMOVED TO THE PLEDGED ACCOUNT JAN 10.2020/Brinks//Manfra .553 tonnes removed may 26

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

 

 

TOTAL PLEDGED GOLD NOW IN EFFECT:  528,072.303  OZ OR 16.425  TONNES

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 267.39 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 31.959 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  9,124,876.085 oz or 283.82  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:  DELETED TODAY MAY 26.2020
e) pledged gold at int.Del.    19,290.600 oz  which cannot be settled:   (.600 tonnes)
total weight of pledged:  528,072.303 oz or 16.425 tonnes
thus:
registered gold that can be used to settle upon: 8,596,803.8  (267.39 tonnes)
true registered gold  (total registered – pledged tonnes  8,490,387.12 (267.39 tonnes)
total eligible gold:  17,022,136.67 oz (529.46 tonnes)

total registered, pledged  and eligible (customer) gold;   26,250,599.499 oz 817,78 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   127.05 tonnes

total gold net of 4 GC:  690.73 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 27/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A STRONG SIZED 1448 CONTRACTS FROM 155,485 UP TO 158,185(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 STRONG OI COMEX GAIN TODAY OCCURRED DESPITE OUR VERY SMALL 9 CENT LOSS IN PRICING//TUESDAY. WE GAINED A TOTAL OF 2128 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A STRONG 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 DESPITE OUR SMALL 9 CENT LOSS IN PRICE 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MAY

THE FRONT DELIVERY OF MAY SAW  125 OPEN INTEREST CONTRACTS STANDING  AND THUS WE HAD A LOSS OF 13 CONTRACTS.  We had 9 notices filed yesterday so we LOST 4 contracts or an additional 20,000 oz will NOT stand at the comex as these guys morphed into London based forwards and thus they accepted  a fiat bonus for their efforts.. It sure looks like the boys cannot find any silver over on this side of the pond.

 

 

AFTER MAY WE HAVE THE NON ACTIVE MONTH OF JUNE.  HERE JUNE SAW A LOSS OF 44 CONTRACTS RESTING AT 400.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI LOST 140 CONTRACTS DOWN TO 116,908 CONTRACTS

 

 

We, today, had  124 notice(s) FILED  for 620,000 OZ for the APRIL, 2020 COMEX contract for silver

 

MAY 27/2020

MAY SILVER COMEX CONTRACT MONTH

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 301,895.740 oz
CNT
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,134,863.019 oz
CNT
Delaware
Scotia
No of oz served today (contracts)
124
CONTRACT(S)
(620,000 OZ)
No of oz to be served (notices)
1 contracts
 5,000 oz)
Total monthly oz silver served (contracts)  9043 contracts

45,215,000 oz)

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

total dealer deposits: nil oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 1 deposits into the customer account

into JPMorgan:   0

ii)into Loomis;   584,555.800 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: 583,555.800    oz

we had 2 withdrawals:

 

i) Out of Brinks:  611,543.100 oz

ii) Out of Delaware:  2,000.000 oz exact weight??

 

 

 

total withdrawals; 613,543.100    oz

We had 1 adjustments

Scotia: customer to dealer:  337,903.6 oz

total dealer silver: 91.455 million

total dealer + customer silver:  310.453 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the MAY 2020. contract month is represented by 124 contract(s) FOR 620,000 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 9024 x 5,000 oz = 45,215,000 oz to which we add the difference between the open interest for the front month of MAY.(125) and the number of notices served upon today 124 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 9024 (notices served so far) x 5000 oz + OI for front month of MAY (125)- number of notices served upon today (124) x 5000 oz of silver standing for the MAY contract month.equals 45,220,000 oz.

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

 

TODAY’S ESTIMATED SILVER VOLUME: 80,830 CONTRACTS //volume very high

 

 

FOR YESTERDAY: 56,213 CONTRACTS..,CONFIRMED VOLUME//

 

 

YESTERDAY’S CONFIRMED VOLUME OF 56,213  CONTRACTS EQUATES to 281 million  OZ 40.15% 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- 0.87% ((MAY 27/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO +0.11% to NAV:   (MAY 27/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.87%

(courtesy Sprott/GATA

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

NAV 16.19 TRADING 16.16///NEGATIVE 0.18

END

 

 

And now the Gold inventory at the GLD/

MAY 27/WITH GOLD UP $.10 TODAY: A STRONG 2.34 TONNES OF GOLD ADDED TO THE GLD//INVENTORY RESTS AT 1119.05 TONNES

MAY 26//WITH GOLD DOWN $23.05//NO CHANGES IN GOLD INVENTORY://RESTS TONIGHT AT 1116.71 TONNES

MAY 22//WITH GOLD UP $13.05//A BIG CHANGE IN GOLD INVENTORY:: A PAPER ADDITION OF 3.93 TONNES//INVENTORY RESTS THIS WEEKEND AT:  1116.71 TONNES

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 27/ GLD INVENTORY 1116.71 tonnes*

LAST;  828 TRADING DAYS:   +171.99 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 728 TRADING DAYS://+347.14  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

MAY 27/WITH SILVER UP 13 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 455.817 MILLION OZ//

MAY 26//WITH SILVER DOWN 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/// INVENTORY RESTS AT 455.817 MILLION OZ//

MAY 22/WITH SILVER UP 22 CENTS TODAY/ A HUGE PAPER WITHDRAWAL OF 1.864 MILLION OZ//INVENTORY RESTS AT 455.817 MILLION OZ/

LAST 5 DAYS: SILVER UP 60 CENTS: INVENTORY  UP A WHOOPING 23.767 MILLION OZ///

MAY 21/WITH SILVER DOWN 50 CENTS TODAY: A HUGE PAPER DEPOSIT OF 7.923 MILLION OZ///INVENTORY RESTS AT 457.681 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 26.2020:

SLV INVENTORY RESTS TONIGHT AT

455.817 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 3.28/ and libor 6 month duration 0.57

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

GOLD LENDING RATE: -2.71%

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

 

XXXXXXXX

12 Month MM GOFO
+ 2.09%

LIBOR FOR 12 MONTH DURATION: 0.68

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.41%

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

 

end

 

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

It looks like our bankers were in great need of physical gold as they imported a massive 112 tonnes from Switzerland who are basically the only supplier of gold these days.

(Reuters/Hobson/GATA)

U.S. imports record amount of gold from Switzerland as virus upends trade

 Section: 

By Peter Hobson
Reuters
Tuesday, May 26, 2020

LONDON — Swiss exports of gold to the United States leapt to 111.7 tonnes in April — by far the biggest monthly total on record — while shipments to other destinations dwindled, customs data showed today.

The global gold market has been turned on its head by the
novel coronavirus, with demand in China and India collapsing due to lockdowns while in the West investors rushed to buy bullion as a safe asset to weather a period of financial turmoil.

… 

High prices on CME Group’s Comex exchange spurred shipments to New York.

Switzerland, a major trading, vaulting, and refining center for precious metals, exported a total of 131.8 tonnes of gold in April, up from 96.2 tonnes in March but slightly lower than in April 2019.

The United States, which typically imports less than a tonne of gold a month from Switzerland, accounted for 85% of that total. …

… For the remainder of the report:

https://www.reuters.com/article/swiss-trade-gold/u-s-imports-record-amou…

end

Hemke comments on the deflationary conditions prevailing right as Main Street is struggling because of high debt and the need to shed it.  It is weighing on gold for the short time period but expect inflation to return and that will accelerate its price northbound

(Hemke/Sprott/GATA)

Craig Hemke at Sprott Money: ‘Real’ interest rates weigh on Comex gold

 Section: 

9:15p ET Tuesday, May 26, 2020

Dear Friend of GATA and Gold:

Deflationary conditions have made bonds attractive even with minimal interest rates, slowing gold’s ascent, the TF Metals Report’s Craig Hemke writes today at Sprott Money. He adds that the current circumstances won’t last long as “stagflation” returns — inflation without economic growth — and gold accelerates again. Hemke’s analysis is headlined “‘Real’ Interest Rates Weigh on Comex Gold” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/real-interest-rates-weigh-on-comex-gold…

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

end

So far Scotia has taken a tiny 168 million dollar hit in closing down its Mocatta gold/silver desk.  It has huge derivative losses not yet disclosed

Bloomberg/Farchy/GATA)

Scotiabank takes $168 million hit as it shuts historic gold unit

 Section: 

By Jack Farchy
Bloomberg News
Tuesday, May 26, 2020

Bank of Nova Scotia has set aside C$232 million ($168 million) to cover the cost of winding down its historic precious metals unit as well as a potential settlement of U.S. investigations into the unit’s trading activities.

The charges this year, which the bank disclosed in its quarterly earnings report today, mark an ignominious end to what was once one of the world’s top gold-trading businesses, with a history dating back to the 17th century.

… 

Scotiabank announced last month it was closing its metals business. The bank had already significantly reduced its activity in bullion markets, where it was once a leading player alongside banks such as JPMorgan Chase & Co. and HSBC Holdings. Last year it dropped the “Mocatta” name, a fixture of the gold market ever since Moses Mocatta opened an account to trade precious metals in 1671.

Thmuist viee bank has been caught up in regulatory scrutiny of banks’ precious-metals trading and one of its former traders last year pleaded guilty to trying to manipulate prices through spoofing. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2020-05-26/scotiabank-takes-168-…

 

iii) Other physical stories:

must view…

Andrew Maguire

9:31 AM (22 minutes ago)
to me

https://www.youtube.com/watch?v=s84ReWmh9ms

Attachments area

Preview YouTube video Andrew Maguire: “Wholesale Silver Shortage” Reflected In Widening SLV Spread

Andrew Maguire: “Wholesale Silver Shortage” Reflected In Widening SLV Spread

end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.1563/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1715   /shanghai bourse CLOSED DOWN 9.74 POINTS OR 0.34%

HANG SANG CLOSED DOWN 88.30 POINTS OR 0.36%

 

2. Nikkei closed UP 148.06 POINTS OR 0.70%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 98.79/Euro RISES TO 1.1017

3b Japan 10 year bond yield: FALLS TO. –.00/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.79/ 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:: 33.97 and Brent: 35.59

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 DOWN for WTI and DOWN FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.39%/Italian 10 yr bond yield DOWN to 1.50% /SPAIN 10 YR BOND YIELD DOWN TO 0.66%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.89: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.56

3k Gold at $1700.00 silver at: 17.03   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 18/100 in roubles/dollar) 70.99

3m oil into the 33 dollar handle for WTI and 35 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.79 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 .9715 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0680 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.39%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 0.73% early this morning. Thirty year rate at 1.48%

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

6.  TURKISH LIRA:  UP  TO 6.78..

S&P Futures Storm Back Over 3,000 On “Recovery Hopes”, Stimulus Bonanza

A few weeks ago we proposed that what “Phase 1 trade deal hopes” were for 2019, so “Economic Recovery hopes” would be for 2020, and the overnight session was just another indication of that, and after sliding back under 3,000 just before the Tuesday close on renewed concerns about a US escalation over Hong Kong, S&P futures and European stocks stormed higher because, as Reuters put it “investors focused on progress in reopening economies” while an avalanche of fiscal stimulus including 117 trillion yen out of Japan and €750 billion out of Europe, helped spark animal spirits. The Euro jumped above 1.10 for the first time since March, Treasuries slumped further while gold tumbled below 1700.

The pattern is so simple, even an economist can spot it, in this UBS’ global wealth chief economist Paul Donovan:

Today is following the standard pattern—rhetoric between the US and China is ignored, and optimism over economic stimulus is the focus. US President Trump promised unspecified action against China by the end of the week—but markets cannot be expected to pay attention to every comment or Tweet on the Trump Twitter Feed. That would be exhausting.

Despite dismal economic data and corporate earnings, unprecedented monetary and fiscal stimulus, the easing of lockdowns and optimism about an eventual COVID-19 vaccine have powered a rally, helping the S&P 500 end at its highest level since early March on Tuesday. On Tuesday the benchmark index, however, closed just short of 3,000 points, a key psychological level, after President Donald Trump said the United States would announce before the end of the week its response to China’s planned national security legislation for Hong Kong. Those concerns were quickly extinguished overnight as a new wave of buying emerged in the overnight session.

At 8 am ET, S&P 500 e-minis EScv1 were up 1.16% at 3025, after the S&P500 closed up 1.23% at 2,991.77​ on Tuesday. Travel-related stocks, which were among the worst hit in the sell-off earlier this year, continued to outperform. United Airlines Holdings, American Airlines Group rose more than 7% in premarket trade. Planemaker Boeing is expected to announce U.S. job cuts this week, people briefed on the plans and a union said. Its shares rose 3.1%. Walt Disney was set to announce its proposal for a phased reopening of its Orlando, Florida, theme parks to a local task force on Wednesday. Disney shares gained 1.9%.

As Bloomberg writes, “Investors have taken daily escalations in US-China friction in stride, including possible sanctions over Beijing’s crackdown in Hong Kong, as they drive global stocks to levels not seen since early March on hopes that economies are beginning to recuperate after a deep downturn.”

In Europe, the Stoxx 600 Index was headed toward its third daily increase and Italy’s government bonds rose following news the European Commission’s package of grants and loans would total up to 750 billion euros, in an unprecedented push to overcome the region’s deepest recession in living memory.

Earlier in the session, Asian stocks closed mixed in the wake of the latest Sino-American flare-up, and China’s yuan slipped, nearing its weakest level on record against the dollar. India’s S&P BSE Sensex Index and Japan’s Topix Index rose, and Singapore’s Straits Times Index and Hong Kong’s Hang Seng Index fell. The Topix gained 1%, with Torex Semiconductor and J-Lease rising the most after Bloomberg reported that the Abe administration is compiling a new 117 trillion yen ($1.1 trillion) stimulus package. The Shanghai Composite Index retreated 0.3%, with Kingfa Sci & Tech and Zhejiang Jiuzhou posting the biggest slides.

The recent equity rally “is an indication that investors are getting optimistic about the reopening of the economy and the drug-treatment development,” Katerina Simonetti, senior portfolio manager at UBS Private Wealth, said on Bloomberg TV. “We hope that it will eventually lead to a normalization in the market, but we have to keep an eye on the re-emergence of virus cases.”

In rates, Treasuries gave back earlier gains after news that the European Commission aims to mobilize EU750b for European recovery, including EU500b in grants and EU250b in loans. Yields flipped back to cheaper on the day across a slightly flatter curve. Stocks remain elevated, also capping Treasuries, with as S&P 500 futures extend beyond 3000 mark during Asia session. U.S. auctions resume with 5-year note sale for a record size $45b ahead of a 7-year offering Thursday. Yields out to seven years are cheaper by ~1.6bp vs. Tuesday close, while long-end yields up slightly less, flattening 5s30s by 1bp; while 10-year yields hover around 0.71%.

In FX, the dollar gave up earlier gains and many risk-sensitive G-10 currencies swung from declines to advances gains against the greenback as risk appetite picked up in the European session; the Swiss franc was the worst performer as it sold off amid a squeeze versus the euro. The euro rebounded from an early drop, rising a second day; Spanish, Portuguese long-end debt outperformed euro-area peers amid a bid for duration and after Spain didn’t mandate a bond syndication this week. The pound erased most losses, after earlier falling against the dollar as domestic political pressure on Prime Minister Boris Johnson intensified, with the government moving nearer the next round of Brexit talks with the European Union. The Chinese yuan dropped as the Trump administration weighed a range of sanctions against China and protests returned to the streets of Hong Kong.

In commodities, WTI crude oil was steady at about $34 a barrel in New York after declining modestly from the highest settlement in 11 weeks on signs Russia was planning to start easing supply cuts from July, while tensions between the U.S. and China escalated amid the specter of sanctions. Gold briefly dropped below $1,700 before recovering some losses.

U.S. economic data calendar includes May Richmond Fed manufacturing index at 10am ET; GDP, durable goods orders, personal income/spending, PCE deflator, MNI Chicago PMI and University of Michigan sentiment also this week

Market Snapshot

  • S&P 500 futures up 0.8% to 3,017.25
  • STOXX Europe 600 up 0.5% to 350.63
  • MXAP up 0.4% to 149.86
  • MXAPJ down 0.08% to 475.04
  • Nikkei up 0.7% to 21,419.23
  • Topix up 1% to 1,549.47
  • Hang Seng Index down 0.4% to 23,301.36
  • Shanghai Composite down 0.3% to 2,836.80
  • Sensex up 2.9% to 31,496.11
  • Australia S&P/ASX 200 down 0.09% to 5,775.01
  • Kospi up 0.07% to 2,031.20
  • German 10Y yield fell 2.1 bps to -0.45%
  • Euro down 0.1% to $1.0967
  • Italian 10Y yield fell 2.4 bps to 1.379%
  • Spanish 10Y yield rose 3.8 bps to 0.664%
  • Brent futures down 1.5% to $35.62/bbl
  • Gold spot down 0.1% to $1,708.34
  • U.S. Dollar Index up 0.2% to 99.12

Top Overnight News

  • The European Union’s executive arm will propose a fiscal stimulus package of 750 billion euros ($823 billion), of which 500 billion euros will be distributed in the form of grants to member states, and 250 billion euros in loans, a person familiar with the matter says, declining to be named, in line with policy. The package will be partly funded via joint debt issuance
  • The euro-area economy is faring worse than hoped, facing a recession as bad as the European Central Bank’s more pessimistic forecasts, according to President Christine Lagarde. Output is set to shrink between 8% and 12%, she said, with estimates for a milder slump now “out of date.”
  • The House of Representatives is poised to give final passage Wednesday to legislation that would sanction Chinese officials for human rights abuses against Muslim minorities, the latest in a series of moves by Congress and the White House to put pressure on the Beijing government
  • The U.S. Treasury Department could impose controls on transactions and freeze assets of Chinese officials and businesses as China pushes a security law for Hong Kong, according to people with knowledge of the matter
  • Europe’s push to revive battered economies looks to be on track, as coronavirus infections show no sign of a resurgence during the winding down of restrictions on daily life
  • China’s efforts to tighten its grip on Hong Kong pose a threat to the rules-based international order, EU foreign policy chief Josep Borrell said in a letter to the bloc’s 27 foreign ministers, calling on member states to respond with a “robust” message

Asian equity markets traded indecisively for most of the session as the broad global rally stalled following the handover from Wall St, where all major indices finished positive although staggered heading into the close after reports the US is considering sanctions on Chinese officials and firms over Hong Kong, while President Trump later noted we will hear about US actions on China by the end of the week. ASX 200 (U/C) declined heavily at the open with the index pressured by weakness in the metals complex and underperformance in gold miners, although strength in energy and financials provided a cushion to help the index retrace the initial losses. Nikkei 225 (+0.7%) was temperamental with an improvement in the risk appetite seen after initial details of the 2nd extra budget were announced which is valued at JPY 117.1tln and will include direct spending of JPY 72.7tln, while PM Abe suggested they will provide JPY 140tln in financial support to companies. Hang Seng (-0.3%) and Shanghai Comp. (-0.3%) were cautious amid the heightened US-China tensions but with downside stemmed after a firm liquidity injection by the PBoC and as participants digested the latest Chinese Industrial Profits data for April which showed a decline of just 4.3% compared to the 34.9% slump in the prior month. Finally, 10yr JGBs were lower despite the tentativeness in the region with prices subdued amid the lack of BoJ presence in the markets and anticipation of increased supply with Japan’s 2nd extra budget to involve an additional JPY 31.9tln of JGB issuances to push the total issuances for the current fiscal year to JPY 210tln.

Top Asian News

  • Hong Kong Police Arrest More Than 240 in Wednesday Protests

European equities have kicked the session off on the front-foot once again (Eurostoxx 50 +1.9%) in a continuation of recent gains with mounting US-China tensions unable to curtail momentum; and further support arising most recently from reports around the EU recovery fund proposal – to be formally unveiled later today. Instead, the composition of today’s movers and shakers across the continents takes a similar form to those yesterday with travel & leisure names continuing to benefit from ongoing reopening optimism with recent easing of lockdown measures not currently triggering any material pick-up in COVID-19 cases/deaths in the region. As such, Tui AG (+20.4%) sit at the top of the leaderboard once again with IAG (+4.2%) shares also extending on yesterday’s gains and the troubled cruise-line sector seeing some reprieve with Carnival shares up over 8%. Elsewhere, banking names are firmer this morning, in-fitting with price action in their transatlantic counterparts yesterday on Wall St. with upside seen for the likes of RBS (+8.6%), BNP Paribas (+8.4%), SocGen (+9.4%), Barclays (+7.8%), Commerzbank (+7.7%), BBVA (+4.6%). Renault (+15.2%) and Peugeot (+8.2%) are benefiting from yesterday’s announcement of a EUR 8bln support package from the French government with the former also reportedly mulling potential cost savings of EUR 2bln by 2024. To the downside, underperformance can be seen in defensive names with health care the laggard in Europe, whilst IT names are also seen lower with Infineon (-2.0%) shares hampered by the Co.’s decision to raise capital.

Top European News

  • Virgin Atlantic Suitors Narrow With Clock Ticking on Rescue
  • PharmaSGP to Sell Stock in Frankfurt IPO as Markets Heat Up
  • New CEO of Norway’s $1 Trillion Fund in Make-Or-Break Moment
  • Denmark Told It Can Start Winding Down Coronavirus Aid in July

In FX, consolidation saw the DXY back with a 99.000 handle in APAC trade following yesterday’s heavy selling. The index remains choppy throughout the session as it hit a high of 99.350 before declining on initial details of European Recovery Fund, with losses prompting the DXY to relinquish the round figure to a low of 98.710. Meanwhile, the Yuan continued to decline through late APAC hours after US President Trump said US actions regarding China will be unveiled by the end of the week, whilst sources noted US is mulling sanctions on Chinese officials and firms over Hong Kong. USD/CNY rise to a whisker from 7.1600 (vs. low 7.1350) with the PBOC issued a firmer fix after the dollar decline. USD/CNY sees its 2019 peak at 7.1844 whilst its offshore counterpart resides north of 7.1700 (vs. low 7.1430) ahead of its record high at 7.1965. Focus today will remain on US-Sino developments alongside the unveiling of the EC Recovery Fund proposal.

  • EUR, GBP – The Single Currency fought back against the Dollar after reports emerged the European Commission is to propose EUR 750bln for the European Recovery Fund, comprising of EUR 500bln in grants and EUR 250bln in loans. ECB President Lagarde did little to dent the EUR but posited that the ECB’s mild GDP scenario of -5% is outdated – with the metric likely in the range of the medium (-8%) to severe (-12%) scenarios. ECB aside, eyes are on the unveiling of the European Recovery Fund later in the day, with focus on sentiment across EU members, namely the North and South, as the Commission’s proposal is unveiled. EUR/USD took out the 1.1000 handle alongside its 200 DMA (1.1011) having topped its 100 DMA (1.0957) and with EUR 1bln option expiries scattered between 1.0950-60, with a further EUR 1.8bln around 1.0990-1.1000.  Meanwhile, Sterling remains lethargic around 1.2300 vs. the USD as overnight weakness emanated from reports UK Chancellor Sunak is set to announce this week that the government will soon stop allowing companies from placing employees on the furlough scheme. Cable trades in the middle of a 1.2290-1.2350 parameter ahead of a potential barrier at 1.2360 (50% Fib from 30 Apr-18 May move).
  • AUD, NZD, CAD – High-beta FX largely mirrors USD action, but the Kiwi outperforms as the AUD/NZD cross homes in on the 1.0700 mark to the downside. Meanwhile the Loonie and Aussie initially eke mild gains before the Dollar saw broad losses. NZD/USD reclaimed 0.6200 and topped its 100 DMA around 0.6203 (vs low 0.6175). The Aussie hoverd on either side of 0.6650 before taking out its 200 DMA (0.6658) to the upside and matching yesterday’s high prints at 0.6675. USD/CAD holds onto a bulk of yesterday’s losses and remains sub-1.3800, with the next support point seen at the psychological 1.3750 ahead of 1.3700 mark which coincides with the pair’s 100DMA.
  • JPY, CHF – Mixed trade for the traditional safe-haven FX with considerable weakness seen in the Franc relative to the peers amid potential SNB presence. EUR/CHF eyes 1.0650 to the upside whilst USD/CHF trades north of 0.9700 vs. lows of 1.0587 and 0.9650 respectively. The JPY meanwhile remains flat on either side of 107.50 and within a tight 25-pip or so range awaiting fresh fundamental developments and a clear risk tone.

In commodities, WTI and Brent front month futures see a session of modest losses thus far as the July contracts hover around USD 34/bbl and USD 35.75/bbl respectively – both within tight ranges of less that USD 1/bbl, and seemingly deriving support from general sentiment. Eyes now turn to the upcoming OPEC meeting starting June 9th, a day after the proposed JMMC meeting – with focus on the producer’s assessment of the oil market and effectiveness of the current output pact. Participant will also be on the lookout for countries that voice for an extension of current curtailments. Aside from that, US-China developments remain in focus whist the EC Recovery Fund proposal could prove a sentiment risk for complex, whilst the weekly Private Inventory figures will be released later today on account of Monday’s Memorial Day Holiday. Spot gold prices mirrors USD action and threatens a test of USD 1700/oz to the downside (vs high USD 1715/oz). Copper prices tracked Chinese stocks and the yuan as US-China tensions continue to mount.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior -2.6%
  • 10am: Richmond Fed Manufact. Index, est. -40, prior -53
  • 12:30pm: Fed’s Bullard Discusses Economy During the Pandemic
  • 2pm: U.S. Federal Reserve Releases Beige Book
  • 2pm: U.S. Federal Reserve Releases Beige Book
  • 3pm: Fed’s Bostic to Take Part in Virtual Discussion on Economy

DB’s Jim Reid concludes the overnight wrap

While we have stopped the Corona Crisis Daily, we have updated our tables from it and have published them in the pdf of this report today. We may do it every day (or every few days) depending on the demand. Let us know. The latest highlights are that Brazil is now the second most infected country in the world in terms of overall recorded cases with nearly 391k. Until Brazil’s total infections passed New York this past Sunday, the US state has had more total cases than any country in the world since passing Italy in early April. Recently however, case growth and new fatalities in New York State look more akin to Germany and Southern Europe and are now in the 0.1-0.5% range. See the full tables in the pdf for this and more.

Global equities rose yesterday as risk assets surged following the holiday weekend in the UK and US. The positive sentiment was driven by a mix of economic data turning better, more and more economies reopening, the possibility for additional stimulus on both sides of the Atlantic, and hopes over another potential vaccine and treatment from reports out of Merck. Though rising US/China tensions in the last couple of hours of trading took a little shine off the session.

The S&P 500 had rallied roughly +1.8% until the last hour of the day, trading through the 3000 level we first hit in July 2019 but last saw on 5th March, 4 days before Italy locked down on the 9th. The S&P closed at +1.23% and back below 3000 though as headlines materialised suggesting that the Trump administration were considering sanctions over the recent Chinese actions surrounding Hong Kong. Later on Bloomberg reported that amongst the measures the US is considering one is that the Treasury Department could impose controls on transactions and freeze assets of Chinese officials and businesses and added that other measures under consideration include visa restrictions for Chinese Communist Party officials.

Notwithstanding the late dip, the rally saw the virus laggards take the reins, as Banks (+7.86%) and Autos (+4.70%) were the leading industry groups in the US, with Technology and Healthcare the worst performers. Highlighting the lag in healthcare stocks, Merck was only up +1.17% on the news of the antiviral treatment and potential vaccine. J.P. Morgan Chase CEO Jamie Dimon made the headlines at our Deutsche Bank Global Financial Services Conference. He said that “The Fed took out the whole military and applied it. Just announcing these programs reduced spreads in the market. It’s going to save a lot of small businesses” and it’s “helping people avoid stress.” Mr. Dimon also highlighted consumer banking data that he said showed “a healthier consumer. You see that in underlying delinquencies. It’s completely different from a consumer standpoint” than what was seen during 2008. Elsewhere, the Fed’s Bullard said in an interview that although the jobless rate was 14.7% last month, “I think we will be under double digits by the end of the year.”

In Europe, the STOXX 600 was up +1.08% with 17 of 19 sectors higher on the day. Travel and Leisure was the best performing sector, up +6.94%, as news came through that the German government is planning to lift a travel warning on its citizens to 31 European countries on June 15. Chancellor Merkel’s cabinet could approve it later today.

Staying with Europe, spreads of 10yr Italian (-9.0bps), Spanish (-5.1bps), Greek (-7.7ps) and Portuguese (-8.5bps) debt to bunds had all narrowed as 10yr Bund yields rose 6.5bps to -0.429% and US 10yr Treasury yields were up +3.7bps to 0.697%.

This comes ahead of the expectation that today will see the release of proposals from the European Commission over the European recovery fund. Can they release credible proposals given the large void between the Merkel/Macron (MM) proposals and the Frugal Four (FF) counter plan? The recent tightening suggests that the MM proposal was a turning point whatever the bumps are along the way. DB’s Mark Wall suggested in his weekend blog (link here) about the FF counter proposal that the risks of delays to the fund have risen but ultimately he expects agreement on its inception. European Commission President von der Leyen speaks before the European Parliament (EP) later so it’s likely it will coincide with that. From looking at the draft agenda from the EP it looks like the action will be at around 13:30-15:00 CET.

Keeping with the stimulus theme, US Senate Leader Mitch McConnell has been one of the most reticent on the prospect of further stimulus in the US. Though in a public appearance in his home state of Kentucky, where he is up for re-election this autumn, he said, “a lot of Americans have lost their jobs, so we need to make sure we have unemployment insurance properly funded for as long as we need and that could well lead to yet another bill.” Though he continues to believe that it needs to be more targeted than $3 trillion bill that the House passed 2 weeks back.

Stimulus talk is the main theme overnight too with news that the Japanese government looks set to unveil another $1.1tn package helping the Nikkei to gain +0.74%. However it’s more mixed elsewhere with the Kospi and ASX up (+0.13%) and (+0.46%) respectively, while the Hang Seng (-0.39%) and Shanghai Comp (-0.05%) are lagging as renewed protests by pro-democracy groups in Hong Kong and the sanction reports for China weigh on those markets. In FX, the onshore Chinese yuan is down -0.33% to 7.1583, the lowest in 8 months while all G-10 currencies are also trading weak against the greenback. Elsewhere, futures on the S&P 500 are up +0.63% and WTI oil prices are down -0.35% to $34.25.

In other overnight news, ECB Executive Board member Isabel Schnabel said in an interview with the FT that “If we judge that further stimulus is needed, the ECB will be ready to expand any of its tools in order to achieve its price stability objective”. Schnabel also said that “with respect to the Pandemic Emergency Purchase Programme, this concerns the size but also the composition and the duration of the program. We are ready to react to new data coming in.” The euro is trading down -0.20% as we go to print.

Economic data continued to improve from the April and March’s lows yesterday, while still showing the toll the coronavirus has caused across the global economy. The majority of data came from the US yesterday. The Chicago Fed’s National Activity Index fell to -16.74, far exceeding the -3.50 expectations and down from last month’s -4.97 reading. Only 6 of the 85 monthly indicators made a positive contribution to the diffusion index, while all 79 others were negative. Last month was already a record low for the index, but the current reading is over four times worse than the lowest past reading. On the other hand, US consumer confidence, as measured by the Conference Board’s index, rose by 0.9 points to 86.6 (87.0 expected) from last month’s revised 85.7. Interestingly, the present situation component fell further to 71.1 from 73, but was offset by a rise in expectations (96.9 from 94.3). In other somewhat good news, new home sales rose to 623k from 619k in April far exceeding the 480k expectations, though it should be noted that overall sales are down -6.2% y/y. Lastly, Germany’s June GfK consumer confidence survey rose to -18.9 (vs. 18.0 expected) up from -23.1 in May, meanwhile the business expectations improved to -10.4 in May compared to -21.4 in April.

To the day ahead now, and it is a fairly light macroeconomic data day. Though one highlight may be the Fed releasing its Beige Book, which highlights anecdotal information on the current economic conditions and can give insight into the effects of the shutdowns and what to expect as the reopening progress in the US. We will see China’s industrial profits for April and France’s May consumer confidence reading. There is a pair of data readings out of the US, the weekly MBA mortgage applications and the May Richmond Fed manufacturing index. In terms of central bank speakers, the ECB’s President Lagarde and the Fed’s Bullard will both give remarks. While the majority of earnings are behind us, we still have some major names reporting this week – today sees Autodesk and Royal Bank of Canada. Lastly, European Commission President von der Leyen speaks before the European Parliament as discussed above.

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 9.74 POINTS OR 0.34%  //Hang Sang CLOSED DOWN 88.30 POINTS OR 0.36%   /The Nikkei closed UP 148.06 POINTS OR 0.30%//Australia’s all ordinaires CLOSED DOWN .09%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1563 /Oil UP TO 33.97 dollars per barrel for WTI and 35.59 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1563 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1715 TRADE TALKS STALL//YUAN LEVELS GETTING VERY 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 goes bananas:  huge QE of 117 trillion stimulus (MMT/helicopter money)

This equates to 1.09 trillion usa dollar QE

(zerohedge)

“Fiscal Firehose”: Japan Approves Record 117 Trillion Stimulus Package

It’s a fiscal firehose.

On the same day as Europe’s “Watershed Moment” saw the European Commission propose a €750BN virus recovery fund, funded by joint debt, and which would offer €500BN in grants to struggling European nations, Japanese Prime Minister Shinzo Abe’s cabinet approved a new $1.1 trillion stimulus package that includes significant direct spending, to counteract the coronavirus pandemic pushing the world’s third-largest economy deeper into recession.

The record stimulus of 117 trillion yen, which as Reuters reported, will be funded partly by a second extra budget, followed another 117 trillion yen package rolled out last month. The new package takes Japan’s total spending to combat the virus fallout to 234 trillion yen ($2.18 trillion), or about 40% of gross domestic product, and will send its already world-record debt load into the stratosphere.

The combined spending ranks among the world’s largest fiscal packages to deal with the coronavirus, approaching the size of the United States’ $2.3 trillion aid programme.

According to the Ministry of Finance, the latest package includes 33 trillion yen in direct spending, and the balance will consists of guarantees and backstops. The new package will include measures such as higher medical spending, aid to firms struggling to pay rent and more subsidies to companies hit by slumping sales.

“We must protect business and employment by any means in the face of the tough road ahead,” Abe told a meeting of ruling party lawmakers. “We must also take all necessary measures to prepare for another wave of epidemic.”

To fund the costs, Japan will issue an additional 31.9 trillion yen in government bonds under the second supplementary budget for the current fiscal year ending in March 2021.

That record double-stimulus will push new JGB issuance this fiscal year to a record 90 trillion yen. Inclusive of issuance to roll over debt maturing during the year, Japan’s total calendar-base annual market issuance would hit a record 212 trillion yen, further straining already tattered finances.

While the Bank of Japan is likely to keep borrowing costs low with aggressive bond buying, the surprise increase in issuance of super-long bonds could trigger some market volatility, analysts quoted by Reuters said.

“The BOJ’s yield curve control should prevent a spike in long-term interest rates,” said Chotaro Morita, the chief bond strategist at SMBC Nikko Security. “Volatility in the JGB market will depend on the BOJ’s ability to control its bond purchases.”

Under Japan’s yield curve control policy, which will soon be adopted by the Fed, the BOJ guides the short-term interest rate at -0.1% and the 10-year bond yield at around 0%.

To prepare for a possible second wave of infections, the government also set aside 10 trillion yen in reserves that can be  tapped for emergency spending. To facilitate financing, the government pledged to top up financial assistance to firms hit by the pandemic to 140 trillion yen, from 45 trillion yen in the previous package, by boosting interest-free lending, offering subordinate loans and supply of capital.

* * *

The packages took the size of this fiscal year’s budget to a record 160 trillion yen, with new bond issuance making up 56.3% of annual budget revenue and raising the spectre of more bond issues later to offset falling tax income.

And the punchline: Japan may not be done with helicopter money. “There’s a possibility of a third extra budget,” said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank.

“Japan may face the risk of credit downgrade in the medium to long run.” Of course it does, the question is not if but when, and that would be the beginning of the end for the world’s foremost experiment in monetary and fiscal stimulus insanity.

end

3 C CHINA

CHINA

The Yuan suddenly collapses overnight.  Now trading at CNY 7.1563 and CNH:  7.1715.  This will probably spell trouble for China to obtain badly needed dollars.

(zerohedge)

Chinese Yuan Suddenly Tumbling

Just after 9:45pm ET the offshore yuan – the one which is not subject to the PBOC’s trading band limits – tumbled, plunging 250 pips in minutes.

The move was unexpected, following a stronger than expected setting of the USDCNY by the PBOC, whose midpoint was set at 7.1092, far stronger than the 7.1220 expected and the 12 year low of 7.1293 hit on Tuesday. The drop comes just hours after Bloomberg reported that Trump administration was considering sanctions including transaction controls, and asset freezes, over the implementation of the new national security law in Hong Kong.

While the offshore yuan is not at all time lows yet – it would need to hit around 7.20 for that – there has been no news to justify the move, with the sudden move sparking speculation that Beijing may be using it to telegraph the devaluation that could follow should the US escalate aggressively in response to a Hong Kong crackdown.

Here, once again, is a reminder from Rabobank’s Michael Every why in the current environment of escalating hostility between the US and China, the only thing that matters is the Yuan, and why in the not too distant future, the Chinese currency may have a 10-handle in front of it.

This time last year, when we were all still going abroad regularly (right now just ‘outside’ is becoming a psychological barrier if I am honest) I was traveling with a presentation titled “Clause is Cause”. This argued that from a geostrategic ‘Von Clausewitz’ perspective, not a neoliberal “Let’s assume world peace” version, the US would at some point realise the USD/Eurodollar was a weapon it could wield vs. China, and when it did we would see three key strings cut: trade; tech; and then capital flows. The first was evident during the trade war – which has not been concluded is likely to get far worse soon; the second is also abundantly clear on a variety of fronts, much to Silicon Valley’s chagrin; and potentially, now we see the start of that third step – because if the US does block this first USD50bn going in, other such steps will follow, just as they did on the previously unthinkable idea of US tariffs on China.

CNH is right to be selling off, albeit in a traditionally limited fashion, because if you don’t buy from China and you don’t help China up the value-chain and you don’t invest in China then China is not going to be getting much USD liquidity at all. The US hawks probably don’t get the Eurodollar iron logic there; they are likely just pressing buttons in anger. The outcome would be the same nonetheless.

I can hear the market bulls and technocrats of the world saying “But China has USD3 trillion in reserves!” Perhaps. Most think it’s far lower than that. And not earning USD means you have to dig into that stockpile. And when you do, the PBOC either has to contract the local money supply (because every USD is backed by 7.xx CNY on the other side of the balance sheet) or it just creates new CNY anyway and supply-demand sees CNY move sharply lower – as we have been seeing in all other EM FX. Looking at the drop in BRL, ARS, ZAR, TRY, etc., or even THB,this would be how we would get to the ‘unthinkable’ 8 (9? 10?) handle in CNY. That would also crush those other EM crosses in tandem – and AUD and NZD, as the former tries to navigate its own geopolitical spat with Beijing.

Moves like tonight suggest that either someone knows something, that something big may be coming, or the algos are just doing all they can to trigger another stop loss domino effect.

END
HONG KONG/CHINA/USA
James Rickards…as to what to expect next with respect to China and Hong Kong
(James Rickards)

Is War Next?

Authored by James Rickards via The Daily Reckoning,

Remember the pro-democracy protests in Hong Kong against Chinese authoritarianism?

Well, guess what? They’re about to start again.

And U.S.-Chinese relations could get even worse than they are right now.

Are you prepared for a bumpy ride?

Let’s unpack this…

Last year’s protests came in response to a proposed law that would have allowed the extradition of Hong Kong residents to Beijing for trial on charges that arose in Hong Kong.

That would have deprived Hong Kong residents of legal protections in local law and subjected prisoners to torture and summary execution.

The legislation was proposed by Hong Kong’s Chief Executive Carrie Lam, who many consider a puppet of Beijing.

The demonstrations grew exponentially, ultimately involving hundreds of thousands of protesters.

The list of demands also grew to include more democracy and freedom and adherence to Hong Kong’s rule of law.

Due to social media, these protests were seen around the world.

The proposed bill behind the original protests was scrapped last October, which was a victory for the pro-democracy protesters.

The protests didn’t end altogether, but tensions were at least diffused to a great extent and the world moved on.

Well, here comes round two…

China’s Communist parliament is preparing to roll out legislation that would ban “treason, secession, sedition (and) subversion” in Hong Kong.

This is different from the previous legislation because this bill actually originates in Beijing, not Hong Kong. It’s a direct assault on Hong Kong’s democracy. The Chinese parliament would insert the legislation directly into Hong Kong’s constitution.

It’s scheduled for passage next week.

Pro-democracy activists have called for mass protests this weekend in response to what they rightly consider a Chinese invasion of their autonomy.

We could be in for a fresh round of protests, with as many or more people. China’s reaction will be key.

Will they try to put the protests down by force? That could have major consequences.

Yesterday, news emerged that the U.S. Senate is introducing bipartisan legislation to impose sanctions on officials and business entities that enforce the new law.

And President Trump warned yesterday that the U.S. would react “very strongly” to the Chinese legislation.

In response, China’s foreign ministry warned Beijing would “fight back” against any U.S. interference.

At a time when U.S.-Chinese relations are already at a low ebb due to China’s almost criminal handling of the coronavirus pandemic, it looks like things are about to get even worse.

This situation could become very interesting.

But you shouldn’t be surprised. The current trajectory of U.S.-China relations is following a familiar course. It started with the currency war…

When my first book, Currency Wars, was published in 2011, I made the point that currency wars don’t exist all the time, but when they emerge they can last for 15 or 20 years.

The reason is that the currency devaluations just go back and forth between major trading partners and no one is any further ahead in the long run.

Readers said, “OK, we get that, but what comes next?”

The answer is trade wars. Once currency devaluations fail, countries turn to tariffs to slow down imports and help their own exports.

That’s where the U.S. and China are now, with the ongoing trade war (which could get worse).

But that’s also a dead end from an economic perspective. Again, the question is: What comes next?

Well, with history as a guide, we can see that today’s pattern is a repeat of what the world went through in the 1920s and 1930s.

First came currency wars (1921–1936). Then came trade wars (1930–34) and then finally a shooting war (1939–1945).

Are we heading for another shooting war with China? The signs are not good.

Trade war tariffs can be weaponized to pursue geopolitical goals. Trump is using tariffs to punish China for its criminal negligence (or worse) in connection with the spread of the Wuhan virus to the U.S. and the rest of the world.

This also has historical precedent.

Between June and August 1941, President Franklin Roosevelt placed an oil embargo on Japan and froze Japan’s accounts in U.S. banks.

In December 1941, the Japanese retaliated with the sneak attack on Pearl Harbor. Will China now escalate its retaliation to the point of armed conflict?

We’ll find out soon, possibly in the South China Sea or the Taiwan Strait. The latest reemergence of tensions in Hong Kong only adds kerosene to the fire.

Investors should prepare for U.S.-China geopolitical tension to grow worse. Maybe a lot worse. That’s the lesson of history.

END

CHINA/USA/CORONAVIRUS
Security advisor O’Brien compares China’s response to the Coronavirus to the Soviet Union covering up the meltdown of Chernobyl.
(Watson Summit news)

Coronavirus “Cover-Up” Is China’s Chernobyl: White House National Security Adviser

Authored by Steve Watson via Summit News,

The White House national security advisor Robert O’Brien has compared China’s response to the coronavirus outbreak to the Soviet Union’s cover-up of the meltdown at the Chernobyl nuclear power plant.

“They unleashed a virus on the world that’s destroyed trillions of dollars in American economic wealth that we’re having to spend to keep our economy alive, to keep Americans afloat during this virus,” O’Brien said in an NBC interview.

“The cover-up that they did of the virus is going to go down in history, along with Chernobyl.” O’Brien added.

“We’ll see an HBO special about it 10 or 15 years from now.” he urged, referring to the recent award winning dramatization of the 1986 disaster.

“This is a real problem and it cost many, many thousands of lives in America and around the world because the real information was not allowed to get out,” O’Brien further proclaimed.

“It was a cover-up. And we’ll get to the bottom of it eventually.” O’Brien asserted.

O’Brien’s comments come as Shi Zhengli, the the deputy director of the Wuhan Institute of Virology, warned that COVID-19 is ‘just the tip of the iceberg’ of unknown deadly viruses, while again denying that her lab had anything to do with the outbreak.

“If we want to prevent human beings from suffering from the next infectious disease outbreak, we must go in advance to learn of these unknown viruses carried by wild animals in nature and give early warnings.” Shi said, adding “If we don’t study them there will possibly be another outbreak.”

As details continue to emerge, China admitted recently that it did order laboratories to destroy samples of the new coronavirus in the early stage of the outbreak.

The destruction of the samples was first noted back in February. It was also noted that the Wuhan Institute of Virology, which was conducting controversial experiments into animal-to-human transmission of bat coronaviruses, altered their database in an apparent attempt to distance the lab from the outbreak.

The alteration was carried out just two days before a gene sequencing lab was ordered by the Health and Medical Commission of Hubei Province to destroy it’s coronavirus samples.

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

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

end

CORONAVIRUS UPDATE/CHINA/GLOBE//

China Confirms 200 New Cases In Wuhan As India’s Outbreak Passes 150k: Live Updates

Summary:

  • India cases top 150k
  • France discontinues use of hydroxychloroquine
  • Japan, EU push new stimulus
  • New Chinese study confirms COVID uses same ‘strategy’ as HIV to cripple immune system
  • Wuhan finds 200 ‘asymptomatic’ cases after testing millions
  • ECB’s Lagarde said eurozone economy could take 12% hit due to virus
  • WHO reiterates warnings about premature reopening

* * *

California Gov. Gavin Newsom’s decision to allow retailers across the state to reopen (along with barbershops and salons in most counties) helped galvanize investors’ hopes for a “V-shaped” rebound in the US, setting US equities on the path to opening with strong gains for a second straight day on Wednesday, even after the death toll in the US surpassed 100k late Tuesday.

A few days ago, authorities in Wuhan claimed that they had tested more than 7 million people, part of an effort to quash a ‘second wave’ of the virus. Overnight, Chinese business news org Caixin reported that roughly 200 patients tested positive for the virus, all of whom were considered “asymptomatic”.

PM Narendra Modi’s heavy-handed response to the coronavirus outbreak has been credited with preventing a destabilizing outbreak in the world’s second-largest country by population. Although many Indians remain leery of the world outside their front door, infection numbers have continued to rise at a steady clip. On Wednesday, Indian public health authorities confirmed another 6,387 new infections and 170 deaths reported in the last 24 hours, bringing India’s total to 151,767 confirmed infections, and 4,337 deaths, according to Nikkei.

France’s health ministry said Wednesday it would discontinue the use of hydroxychloroquine for treating COVID-19 patients, and in all clinical trials, while health officials in India expanded the use of the controversial drug, which was famously touted by President Trump, who also claimed to be taking the medication as a kind of prophylactic. France’s decision is notable because Didier Raoult, a virologist based in Marseille, has repeatedly championed its efficacy if taken alongside zinc or a powerful antibiotic like a Z-Pak.

Across Asia and Europe, new measures to offset the tremendous cost of the outbreak were introduced on Wednesday, with the Japanese cabinet approving another 6% of GDP in stimulus spending, just one month after approving  a first supplementary budget. Combined with the prior package, PM Shinzo Abe said that Japan will have pumped the equivalent of 40% of its GDP in stimulus spending into its economy. “With the largest policy package in the world, the Japanese economy will hold fast against this once in a hundred year crisis,” Abe said.

Just when we believed ‘coronabonds’ were as good as dead, the European Commission is reportedly planning to borrow as much as €750 billion to dole out to the hardest-hit countries, according to Commission President Ursula von der Leyen. As was widely reported in March and April, an alliance of wealthy northern states led Germany and the Netherlands seemed to have put the issue to rest, as they insisted that Italy and Spain can always submit to the European Stability Mechanism (and the punishing austerity it would almost certainly prescribe) if they needed emergency financing. Von der Leyen is expected to lay out the details of the new coronavirus relief fund on Wednesday afternoon in Europe.

Watch von der Leyen live:

Regardless of how the EU responds, ECB Chief Christine Lagarde, one of the most vocal advocates for “coronabonds” and a strong fiscal stimulus to revive Europe’s moribund economy, said Wednesday that the eurozone economy could shrink by as much as 12% this year as the “sudden stop” caused by the pandemic is expected to lead to a prolonged recession that’s even deeper than the post-GFC period.

Authorities in Wuhan found more than 200 asymptomatic cases of the new coronavirus since launching an ambitious plan earlier this month to test the city’s entire population, according to municipal health officials.

On May 11, health authorities in the central Chinese metropolis, where the deadly virus was first detected, ordered municipal districts to start conducting nucleic acid tests on all residents. As of Saturday, the city had carried out 6.68 million tests and discovered 206 asymptomatic cases across more than 10 districts, according to notices from the municipal health commission. About 11 million people live in Wuhan.

With the number of confirmed coronavirus cases in Brazil expected to cross the 400k-threshold on Wednesday, prosecutors in President Jair Bolsonaro’s Brazil authorized the arrest of the conservative governor of Rio de Janeiro state on suspicion of corruption, Reuters reports. The arrest follows a falling-out between the governor and Bolsonaro over the latter’s handling of the outbreak.

As the number of newly confirmed cases in the US tumbled to its lowest level since March on Tuesday, the World Health Organization reiterated warnings about the dangers of scaling back coronavirus restrictions too quickly, arguing that a “premature” push to return to normalcy could unleash a brutal ‘second wave’.

“We cannot make assumptions that just because the disease is on the way down now that it’s going to keep going down,” Mike Ryan, head of the WHO’s health emergencies program, told reporters during a briefing.

Despite a flurry of research over the past few months, scientists concede that nobody really knows anything for certain about SARS-CoV-2. In the US, at least, the initial justification for the lockdown was to flatten the curve so hospitals aren’t overwhelmed. Data overwhelmingly suggests that the US accomplished this weeks ago. But the WHO’s Dr. Mike Ryan insisted that the virus could pop back up “at any time”.

Before we go, we’d like to remind readers that, back on Feb. 1, Zero Hedge highlighted some non-peer-reviewed research claiming that the virus’s genome appeared to contain ‘HIV-like insertions’ that helped stoke suspicions about the possibility that the virus was an artificially created bioweapon.

We were widely pilloried for sharing this research at the time. But now, roughly four months later, another study appears to have replicated these findings.

Let’s all remember what the NYT’s Nick Kristof wrote about the importance of humility.

end
Hong Kong/China/USA
USA tells Congress that Hong Kong is no longer independent from China and she must remove its special status
(zerohedge)

In Landmark Decision, Pompeo Tells Congress Hong Kong No Longer Independent From China

In what appears to be a preview of the at-this-point inevitable White House decision to strip Hong Kong of its preferred trading status over the new National Security law imposed by Beijing, Secretary of State Mike Pompeo tweeted on Wednesday that he has “reported to Congress that Hong Kong is no longer autonomous from China.”

Congress now has the power to strip Hong Kong of its “special status” under the United States-Hong Kong Policy Act of 1992, which has allowed for the city-state to be treated more favorably than the rest of China by the US.

The status is part of what’s allowed Hong Kong to develop as a ‘gateway to the West’, a key part of its appeal as an international city. Without the US ‘special status’, HK might lose its international cachet as well, and eventually become just another Chinese city.

Indeed, without such easy access to the global economy, Hong Kong will become just an extension of Shenzen, which lies just across the border on the mainland.

In a story published just minutes before Pompeo’s tweet, the Washington Post explains that “a US law passed last year requires the secretary of state to certify – as part of an annual report to Congress – whether Hong Kong remains ‘sufficiently autonomous’ from Beijing to justify its unique treatment. That includes assessing the degree to which Hong Kong’s autonomy had been eroded by the government of China. (Hong Kong is part of China but has a different legal and economic system, a holdover from its time as a British colony.) The law also provides for sanctions against officials deemed responsible for human rights abuses or undermining the city’s autonomy. Such sanctions were also said to be under consideration at the White House in the wake of the Chinese government’s decision in May to impose new national security laws on the city.”

Stocks have shown a surprising degree of resilience, though the offshore yuan – a key barometer of China-related risks – skidded lower.

Aside from the fact that the decision – which was widely anticipated – marks another milestone in the deterioration in Washington-Beijing relations, as police in HK have already begun arresting protesters brave enough to take the streets in the face of an unprecedented police crackdown, it also jeopardizes nearly $40 billion in bilateral trade, as WaPo explains.

“Longer term, people might have a second thought about raising money or doing business in Hong Kong,” said Kevin Lai, chief economist for Asia excluding Japan at Daiwa Capital Markets. Another expert described revoking HK’s special status as “the nuclear option” for the US, and “the beginning of the death of Hong Kong as we know it”.

For the last day or so, the editor of China’s Global Times has been taunting the US in a series of tweets, daring it to use its navy and come save the protesting Hong Kongers, some of whom have written messages begging Trump to interfere.

Senior administration officials have insisted that this likely won’t be the end of Trump’s aggression toward China. Earlier on Wednesday, Commerce Secretary Wilbur Ross, who leads the department in charge of Washington’s crackdown on Huawei, said the president has more in store.

While there’s no question rescinding HK’s special status will be interpreted as another economy attack by Washington. But there’s something else even more alarming possibly lying in wait: The law passed last year in the US also requires the president to freeze US-based assets and bar entry to anyone who helps China repress Hong Kong.

It’s this possibility – which we could hear more about in the coming days – that should really stick in investors’ minds.

end

4/EUROPEAN AFFAIRS

EU

The European Commission has given in: it now proposes a 750 billion euro virus recovery fund helping countries like Italy and Spain recover from the virus attack.

(zerohedge)

In “Watershed Moment”, European Commission Proposes €750 Billion Virus Recovery Fund

The European Commission unveiled an unprecedented stimulus plan, calling for the power to borrow as much as €750BN on the markets – consisting of €500 billion in the form of grants to member states, and €250 billion would be available in loans – to tackle the worst recession in European history and underwrite struggling Italy’s membership of the 27-nation blocas it warns that failure to act would leave the EU permanently fractured along economic lines. The euro spiked above 1.10 following the news.

European Commission president Ursula von der Leyen is expected to urge a transformation of the EU’s central finances that would allow it to raise unprecedented sums on the capital markets and hand out the bulk of the proceeds as grants to hard-pressed member states.

The plans follow a high-profile joint proposal from Germany and France, which last week endorsed a recovery fund of €500bn, all of it to be handed out in grants to economically hard-hit parts of the EU. The commission’s proposals match that ambition and add an additional €250bn of borrowing intended to fund loans to member states.

To fund the package, the EU would borrow up to €750 billion on financial markets. The commission is also proposing a suite of new EU taxes and levies to pay back the debt over the coming decades — hitting everything from tech giants to single use plastics — to raise tens of billions of euros a year.

According to Bloomberg, the government in Rome stands to receive 82 billion euros ($90 billion) in emergency grants and up to 91 billion euros in low-interest loans from the package. Spain, which along with Italy has suffered the worst of the pandemic, is in line for 77 billion euros of grants and up to 63 billion euros in loans. Greece could get 32 billion euros in grants and loans. France could get 39 billion euros in grants.

The program, which still needs to win the backing of member states including the so-called “Frugal Four” – Austria, Denmark, the Netherlands and Sweden — which have been pushing for a “loans for loans” approach for the bloc’s coronavirus recovery fund, would be funded by joint debt issuance in a significant step toward closer financial integration.

Peripheral EU bonds rallied on the news, with Italian 10-year yields dropping as much as 9 basis points to 1.457%, the lowest in almost two months. As Bloomberg notes, “the news offered relief in Italy, the original European epicenter of the coronavirus, where the government felt abandoned by the EU at the start of the outbreak and fought to contain a surge of anti-EU sentiment. The reported sum is acceptable for Rome, according to two senior government officials who declined to be named discussing a confidential issue. Rome however wants to see what the criteria would be, and under what programs such funds would be earmarked, the officials aid.”

von der Leyen has spent weeks trying to come up with a response to the crisis which has shaken the foundations of the European Union. Her challenge was to win round skeptical member states like the Netherlands and Austria in the richer North while generating enough firepower to turn around Italy, where spiraling public debt has raised questions about whether the country will be able to sustain membership of the euro or even the EU itself.

The long-anticipated blueprint, which will be presented to the EU Parliament Wednesday, will form the central plank of the EU’s response to the devastating impact of the coronavirus pandemic. The outbreak, which has claimed hundreds of thousands of lives around the world, has hit every European economy, with the worst-affected predicted to contract by almost 10% this year.

The money would largely fund investment and reforms, while some funds will also go to significantly beef up healthcare and to the EU’s poorest regions to help them catch up. The bloc will also offer guarantees from its budget in order to boost private investments via temporary equity support to viable companies or more capital for sectors of strategic importance such as critical infrastructure, technology and healthcare.

If von der Leyen can win the backing of member states, it would be a “watershed moment” for the bloc according to Bloomberg, where financial burden sharing has long been one of the thorniest issues that’s held back deeper integration. It could quell concerns that a lack of solidarity is empowering populists threatening the EU’s very survival.

Giving help via grants rather than loans has been a key ask by hard-hit EU countries such as Italy and Spain, where increased borrowing to fund the recovery could quickly push debt to unsustainable levels. But even with Germany’s blessing, the plan is bound to face pushback by the bloc’s more stringent members as well as small nations in the region’s east.

The proposal may face stiff challenges: following the proposal by Paris and Berlin, Austria, Denmark, the Netherlands and Sweden released their own blueprint that would instead offer loans to countries rather than grants and would expire after two years, while they’ve insisted that any help has conditions attached to it. As net donors to the EU budget, the so-called Frugal Four are sceptical of a major borrowing spree that could leave their taxpayers on the hook for decades to come.

 

Leaders of “The Frugal Four”

Meanwhile, poorer peers in central and eastern Europe are also wary of being asked to dole out more money, especially when they risk having funds redirected from them to richer – though harder-hit – nations. Still, even some of these hardline governments have signaled in recent days that they are open to discussing recovery  plans without dismissing any outright, leaving the door open to a possible compromise.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

India

India using HCQ for prophylactic use in preventing the coronavirus from attacking the body

(zerohedge)

India Expands Use Of HCQ To Prevent Coronavirus Based On Three Studies

India will continue using hydroxychloroquine (HCQ) as a preventative measure against COVID-19, after the Indian Council of Medical Research (ICMR) declared on Tuesday that the drug was found to be very effective with minimal side effects for prophylaxis.

The ICMR’s decision was based on three studies they conducted, which resulted in a Friday advisory to expand the drug’s use, according to ThePrint.

Speaking at a Tuesday press conference, ICMR Director General Dr. Balram Bhargava said “COVID-19 is an evolving field. We don’t know which medicines are working and which are not. There are lots of drugs that have been repurposed for use in COVID whether prophylaxis or as treatment. HCQ is a very old anti-malarial drug that was being widely used and it continues to be widely used. It is safer.

“We did some invitro study in labs and found that it has antiviral properties. This drug became suddenly popular when the American government also started using it and they got-fast track approval or emergency use authorisation. We also thought that it may be a useful drug for prevention of COVID,” he added.

India’s decision to increase the use of HCQ comes as the World Health Organization announced the temporary halt of its clinical trials involving the drug over concerns in a Friday Lancet report that it may do more harm than good.

The WHO has 3,500 patients from 17 countries enrolled in what it calls the Solidarity Trial. This is an effort overseen by the WHO to find new treatments for COVID-19. The patients in the trial have been randomly assigned to be treated with hydroxychloroquine, which is a common malaria drug, or three other experimental drugs for treating COVID-19 in various combinations. Only the hydroxychloroquine part of the trial is being put on hold. –NPR

The India studies

Investigations were conducted by the ICMR at three central government hospitals in New Delhi, which concluded that “amongst healthcare workers involved in Covid-19 care, those on HCQ prophylaxis were less likely to develop SARS-CoV-2 infection, compared to those who were not on it.”

The advisory also states that the National Institute of Virology in Pune has found in laboratory testing that HCQ reduces the viral load.

The ICMR also analysed data collected previously, known as retrospective case-control analysis, and found “a significant” relationship between “the number of doses taken and frequency of occurrence of Covid-19 infection in symptomatic healthcare workers who were tested for SARS-CoV-2 infection”.

It further said “the benefit was less pronounced in healthcare workers caring for a general patient population”.

Another observational study was conducted among 334 healthcare workers at the country’s largest public hospital, New Delhi’s All India Institute of Medical Sciences (AIIMS). The 248 workers who took HCQ as preventive drug for an average of six weeks had lower incidence of the infection than those not taking the pill. –ThePrint

As a result of the studies, the Indian government will now administer the drug as a ‘prophylaxis’ to asymptomatic healcare workers in non-Covid hospitals, as well as non-Covid blocks of hospitals which have been earmarked for future Covid patients.

It will also be prescribed to contract tracers in containment zones, paramilitary, and police personnel involved in Covid-related activities.

Previous to the announcement, only high-risk individuals (including asymptomatic healthcare workers dealing with coronavirus patients), as well as asymptomatic household contacts of confirmed patients, were receiving the drug.

“With available evidence for its safety and beneficial effect as a prophylactic drug against SARS-CoV-2 during the earlier recommended 8 weeks period, the experts further recommended for its use beyond 8 weeks on weekly dosage with strict monitoring of clinical and ECG parameters, which would also ensure that the therapy is given under supervision,” reads the ICMR advisory.

“In clinical practice, HCQ is commonly prescribed in a daily dose of 200mg to 400mg for treatment of diseases such as rheumatoid arthritis and systemic lupus erythematosus for prolonged treatment periods with good tolerance,” it continues – though it added a warning that it should be discontinued if “rare” side-effects such as nausea, abdominal pain, or irregular heartbeat are detected.

That said, the ICMR studies found nausea in 8.9% of healthcare workers, abdominal pain in 7.3%, vomiting in 1.5%, and cardiovascular issues in 1.9%.

end

NEW CORONAVIRUS STUDY

This is very important. You will recall that we brought you the story one month ago about Professor Luc Montagnier, Nobel prize winner in 2008 who wrote a paper describing the Covid 19 as man made.  He also stated that all man made viruses are not stable and they will revert to its natural state, basically the common cold. His paper was basically ignored.  But now it has more significance because a new Chinese team has discovered that the Covid 19 blocks T killer cells from killing the virus as it destroys marker cells located in the membrane of healthy cells which help identify the COVID 19. The virus releases a protein called ORF 8 which binds the markers (MHC) and then this invades our cells  making the immune system null and void. This is exactly what happens in HIV..disturbing the immune system.

As I have stated to you on several occasions, we are dealing with a man made virus from China

very important

(zerohedge)

Coronavirus Uses Same Strategy As HIV To Evade, Cripple Immune System: Chinese Study Finds

Back on February 1, when the coronavirus pandemic was only just starting to attract broader attention and the China-influenced mainstream media was still politically inclined to minimize the severity of the disease before pulling a sharp U-turn and now going full bore with a narrative of just how dangerous it is for the Trump administration to reopen the economy (because if the economy recovers by November, Trump just might get re-elected), we published an article referencing an Arxiv pre-print which found that the covid-19 genome contained “HIV Insertions”, stoking fears that the virus was an artificially created bioweapon. While the mere suggestion that this virus was man-made – nevermind sharing discrete segments of its genetic structure with HIV – sparked outrage among the well-paid mercenary enforcers of the First Amendment known as “fact-checkers” who are employed by such biased organizations as Twitter and Facebook to stifle any line of inquiry that runs contrary to whatever dominant narrative has been blessed by the Zuckerbergs and Dorseys of the world, it was none other than the man who discovered the HIV virus back in 1983, that confirmed our suspicions saying that “the virus was man-made.”

As we reported in April, Professor Luc Montagnier, the 2008 Nobel Prize winner for Medicine, claimed that SARS-CoV-2 is a manipulated virus that was accidentally released from a laboratory in Wuhan, China, and added that the WUhan laboratory, known for its work on coronaviruses, tried to use one of these viruses as a vector for HIV in the search for an AIDS vaccine.

Needless to say, since this narrative was destructive to China and all those self-proclaimed experts who had vowed there is no way the Wuhan virus was i) man made, ii) released by a Chinese lab and iii) had HIV-insertions, the story was quickly buried and never received as much as a minute of airtime in conventional media sources.

That may all change now, as a result of the third, and perhaps most startling yet twist in the bizarre saga of the coronavirus, after the South China Morning Post reported that a new study by Chinese scientists has found that the novel coronavirus uses the same strategy to evade attack from the human immune system as HIV.

Specifically, both viruses remove marker molecules on the surface of an infected cell that are used by the immune system to identify invaders, the researchers said in a non-peer reviewed paper titled “The ORF8 Protein of SARS-CoV-2 Mediates Immune Evasion through Potently Downregulating MHC-I”, posted on pre-print website bioRxiv.org on Sunday (a paper which the great hordes of amateur epidemiologists will make sure is promptly taken down or else their carefully planted propaganda may be obliterated). They warned that this commonality could mean Sars-CoV-2, the clinical name for the virus, could be around for some time, like HIV.

Separately, virologist Zhang Hui and a team from Sun Yat-sen University in Guangzhou also said their discovery added weight to clinical observations that the coronavirus was showing “some characteristics of viruses causing chronic infection”.

Some more details on the Hui study: the researchers collected killer T cells from five patients who had recently recovered from Covid-19; those immune cells are generated by people after they are infected with Sars-CoV-2, and whose job is to find and destroy the virus. But the killer T cells used in the study were not effective at eliminating the virus in infected cells. When the scientists took a closer look they found that a molecule known as major histocompatibility complex, or MHC, was missing.

The molecule is an identification tag usually present in the membrane of a healthy cell, or in sick cells infected by other coronaviruses such as severe acute respiratory syndrome, or Sars. It changes with infections, alerting the immune system whether a cell is healthy or infected by a virus. However, there is one notable disease that makes MHC molecules disappears from the cell surface: HIV.

The coronavirus removes these markers by producing a protein known as ORF8, which binds with MHC molecules, then pulls them inside the infected cell and destroys them, the researchers said.

ORF8, which is also known to play an important role in viral replication, is the gene that is targeted by most commercial test kits to detect viral loads in nose or oral swabs.

Needless to say, the absence of MHC makes the creation of vaccines against covid problematic, although the study authors had a suggestion: while drugs used to treat Covid-19 patients mainly target enzymes or structural proteins needed for viral replication, Zhang and his team suggested compounds be developed “specifically targeting the impairment of MHC by ORF8, and therefore enhancing immune surveillance for Sars-CoV-2 infection”.

And here is where things gets very messy for the frauds known as “fact-checkers” who – without any actual facts or knowledge – threw up all over our February report that the coronavirus shared genetic material with HIV: while the mainstream media did everything in its power to censor any suggestions that Covid and HIV having genetic similarities (after all who wants to be threatened by an airborne version of AIDS) now it is none other than the South China Morning Post which writes that “earlier studies found the spike protein of the new coronavirus had a structure that allowed it to enter many types of human cells and bind with them. The same structure was also found in HIV, but not in other coronaviruses found in animals such as bats and pangolins.”

Oops, the SCMP will have a a lot of explaining for reporting on, you know, the facts.

But wait there’s more. Another study by researchers in New York and Shanghai also found that the Sars-CoV-2, sometimes called the “Wu Flu” could kill T cells, or as the SCMP puts it “the discovery came after autopsies in China found immune system destruction similar to that caused by AIDS.”

At this point, the SCMP has pointed out all the exact same facts – that the coronavirus not only shares genetic material with HIV, but also evades and cripples the immune system in a similar way to HIV – that got the “highly respected” StatNews to accuse Zero Hedge of spreading an “infodemic.” We wonder if StatNews author John Gregory will append his “analysis” now that actual “facts” have emerged showing that it’s not the infodemic we should be afraid of, but the censordemic.

 

Of course, if covid and HIV share a similar approach to hiding from, and crippling the host immune system, kiss any hope for a vaccine – or cure – goodbye. Four decades after HIV – a virus that attacks the immune system – emerged, it has killed about 32 million people globally and there is still no vaccine or drug that can completely cure the disease.

Which begs the question: who were the real conspiracy theorists – those who reported the facts, or all those countless “mainstream” publications who sought to stifle the facts, by accusing us – and many others – of peddling conspiracy theories. For the answer, we go back to what HIV-discovered Montagnier said in April:  “Conspirators are the opposite camp, hiding the truth,” he said without wanting to accuse anyone, but hoping that the Chinese will admit to what he believes happened in their laboratory. “In any case, the truth always comes out, it is up to the Chinese government to take responsibility.”

And while we admire Montagnier’s optimism,we are not holding our breath until the truth finally does come out. Until then, the SCMP may want to watch the bank of its social media accounts – can’t have the peasants realizing they were lied to all along. Twitter, for example, has developed a nasty habit of immediately banning anyone who dares to tell the truth about anything.

The full paper is below (link). Read it before it mysteriously disappears.

end
Michael Every…

Rabobank: “A Few Months Ago, Any One Of These Stories Would Have Been Front-Page News And Market-Moving”

Submitted by Michael Every of Rabobank

Equity markets (and EM FX) are still trying to rally in line with an epic central bank liquidity injection and the underlying plan that if we keep them up until the economy recovers, a recovered economy will then ultimately justify them. There has also been a boost from the fact that we are indeed now reopening in many locations.

What we now see is the relief when the cast around a broken bone comes off. Aah! The itching and constriction is gone! Fantastic! Cheer-leading from an FOMC member and someone who was publicly calling for a 4% US 10-year yield relatively recently aside, the problem is that we did not set the bone in question before we put the cast on. Yes, the leg is now out of plaster: but can you actually walk on it like before – or will you fall flat on your face? Doubly so as while the cast comes off, so do the gloves.

Central Hong Kong today is filled with police (and protesters) as legislation is being passed to criminalize insulting the Chinese national anthem or burning the Chinese flag. This is a warm up for the national security law that will soon be put in place by Beijing, and which yesterday was revealed to: 1) ban foreign judges from sitting on cases related to national security; and 2) ban not just “acts” against national security, but “activities” that can “seriously undermine” it. That is a very broad brush to be painting with in that geography, allege critics.

Meanwhile, in Washington DC we have heard US President Trump promise “interesting action” on China / HK by the end of the week. More importantly, the White House press secretary underlined that Trump is considering sanctions on a range of Chinese officials, businesses, and financial institutions: the Treasury department could impose controls on USD transactions and/or freeze assets of those targeted. The White House also reportedly does not see how Hong Kong can continue to operate as a global financial centre if China passes the national security laws, underlining its own threat. It is also looking at a sanctions bill targeting China’s alleged human rights abuses against the Uighur minority; and the State Department has just released a statement bringing up Tibetan rights. This is full-court US pressure.

Optimists point out that the US might be bluffing: really? Or that China can just do the same kind of financial business elsewhere. Pessimists might ask why other jurisdictions won’t be subject to the same US sanctions. Even Europe. The same top diplomat who on Memorial Day spoke of the end of US dominance in Asia, shrugged, and noted the EU’s reluctance to take its side, yesterday stated the EU is not considering any sanctions of its own against China because they are “not helpful.” The US will almost certainly make Europe comply anyway, as it has on Iran for the most part.

But there is more. White House Economic Advisor Larry Kudlow has openly stated that Trump is so “miffed” with China that he may walk away from the phase one trade deal, and that the US is prepared to pay the relocation costs for firms wishing to return to the US from China. We’ve heard it before, but this time it was black and white on red, white, and blue Fox News….where host Lou Dobbs recently eviscerated White House China-trade hawk Peter Navarro for going soft on Beijing and needing to far more.

Meanwhile, China’s gloves are also off – and not just against the US.

  • The People’s Daily has threatened the UK economically if it decides to drop Huawei from 5G, which seems inevitable after PM Johnson’s latest stumble leaves his backbenchers feeling empowered. Which makes US-UK trade talks all the easier, one would imagine, to the EU’s chagrin.
  • The Global Times has implicitly threatened Canada over today’s critical court decision on whether to proceed with the extradition proceedings of “hostage” Meng Wanzhou, Huawei CFO and daughter of its founder: does PM Trudeau have the ability to lean on judges? Despite tensions, this is likely to push Canada back closer to the US (and CAD lower?)
  • This week the same state-run paper has already stated that if Australia sides with the US vs. China in geopolitics then Australia-China economic relations will be hugely damaged. Won’t Australia diversify exports, for example to India, and move even closer to the US in logical response (as AUD moves lower)?
  • The stand-off on the India-China border continues, with the world showing more interest. An Indian academic interviewed on Al Jazeera on the matter yesterday stated that this was being seen in New Delhi as a clear Beijing warning not to sidle up to the US ahead. Which will probably create the opposite response.
  • Vietnam has just released footage of a Chinese ship chasing, ramming, and sinking one of its fishing vessels in the disputed (by China) South China Sea, which occurred yesterday. Which will again push Vietnam closer to the US.
  • Xinhua reports that Xi Jinping yesterday ordered the PLA to “scale-up” training and preparedness for war, and to be ready for worst-case scenarios. True, he said the same in early 2019 – but against the current backdrop it is worth noting.
  • The FT has reported that China is expected to promote the use of domestic coal by tightening import rules, starting with shipments from Australia.     After imports to the world’s second-biggest economy jumped in the first four months of the year, market participants said it was likely Beijing would impose restrictions that made it more difficult or expensive for coastal utilities to bring in thermal coal from overseas.

A few years ago, or even a few months ago, any one of these stories would have been front-page news and potentially market-moving. The fact that we can have all of them happen in the same week –alongside the US decoupling/sanctions headlines– and markets still hardly move says a lot about how successfully central banks have detached them from reality.

However, we are now starting to see USD/CNH move higher. At time of writing it stood at 7.1720 when it was as low as 6.8672 on 20 January following the ‘phase one trade deal’. If we break above 7.20 then things get interesting as we are in uncharted waters. Except they aren’t really uncharted – charts show we can easily head back to the 8+ level where the Chinese currency was pegged for years: it all depends on the politics. And on that front we are also not in uncharted waters either. We can all hope the above is just ‘noise’. Yet we have clear heuristics of where these kind of trends can lead if not well managed: more than the broken bones markets are trying to celebrate the ‘end of.’

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1017 UP .0039 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS/PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN

 

 

USA/JAPAN YEN 107.79 UP 0.294 (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 1.2310   DOWN   0.0021  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3742 DOWN .0043 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro ROSE BY 39 basis points, trading now ABOVE the important 1.08 level RISING to 1.1017 Last night Shanghai COMPOSITE CLOSED DOWN 9.74 POINTS OR 0.34% 

 

//Hang Sang CLOSED DOWN 88.30 POINTS OR 0.36%

/AUSTRALIA CLOSED DOWN 0,09%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 88.30 POINTS OR 0.36%

 

 

/SHANGHAI CLOSED DOWN 9.74 POINTS OR 0.34%

 

Australia BOURSE CLOSED DOWN. 09% 

 

 

Nikkei (Japan) CLOSED UP 148.06  POINTS OR 0.70%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1700.50

silver:$17.01-

Early WEDNESDAY morning USA 10 year bond yield: 0.73% !!! UP 3 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.48 UP 3  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 98.79 DOWN 12 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.63% DOWN 5 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: 0.65%//DOWN 4 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,48 DOWN 8 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 83 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.41% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.89% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.0967  DOWN     .0011 or 11 basis points

USA/Japan: 107.80 UP .307 OR YEN DOWN 31  basis points/

Great Britain/USA 1.2225 DOWN .01070 POUND DOWN 107  BASIS POINTS)

Canadian dollar DOWN 2 basis points to 1.3786

 

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The USA/Yuan,CNY: AT 7.1694    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1888  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.7786 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 TUESDAY at 0.68 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.43 DOWN 2 in basis points on the day

Your closing USA dollar index, 99.31 UP 40  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 WEDNESDAY: 12:00 PM

London: CLOSED UP 76.49  1.26%

German Dax :  CLOSED UP 153.04 POINTS OR 1.33%

 

Paris Cac CLOSED UP 82.50 POINTS 1.49%

Spain IBEX CLOSED UP 170.60 POINTS or 2.44%

Italian MIB: CLOSED UP 49.79 POINTS OR 0.28%

 

 

 

 

 

WTI Oil price; 32.68 12:00  PM  EST

Brent Oil: 34.68 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    71.09  THE CROSS HIGHER BY 0.28 RUBLES/DOLLAR (RUBLE LOWER BY 28 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.41 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 :  31.81//

 

 

BRENT :  34.09

USA 10 YR BOND YIELD: … 0.70…

 

 

 

USA 30 YR BOND YIELD: 1,45..

 

 

 

 

 

EURO/USA 1.1017 ( UP 1   BASIS POINTS)

USA/JAPANESE YEN:107.84 UP .033 (YEN DOWN 3 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 98.93 DOWN 13 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2265 UP 2  POINTS

 

the Turkish lira close: 6.7781

 

 

the Russian rouble 71.05   DOWN 0.07 Roubles against the uSA dollar.( DOWN 7 BASIS POINTS)

Canadian dollar:  1.3750 UP 4 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.41%

 

The Dow closed UP 553.16 POINTS OR 2.21%

 

NASDAQ closed UP 72.14 POINTS OR 0.77%

 


VOLATILITY INDEX:  27.62 CLOSED DOWN .39

LIBOR 3 MONTH DURATION: 0.3710%//libor dropping like a stone

LIBOR OIS// .311%

TED SPREAD: (LIBOR/3 MONTH TREASURY) = .221%

 

USA trading today in Graph Form

 

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

MARKET TRADING//USA

a)Market trading/THIS MORNING/USA

Gold Hammered Lower On Heavy Volume. Chinese Yuan Slammed

Yesterday saw the dollar, yuan, and gold all pushed lower – an unusual event – but this morning the threesome is more chaotic.

Chinese Yuan is extending last night’s losses…

The Dollar has roundtripped from early weakness to unchanged…

Gold is getting hammered lower on heavy volume (as futures contracts roll)…

And Silver is outperforming, pushing the gold-silver ratio back below 100x…

And gold in yuan back into its recent range…

Something is going on behind the scenes.

END

b)MARKET TRADING/USA/AFTERNOON

Yuan Crashes To Record Lows, Stocks Tank As Chinese Megacap Delistings Loom

The Nasdaq slumped to session lows…

… the dollar spiked and the Yuan crashes to record lows at 7.1965/USD…

 

 

… shortly before 9am, prompting questions if there was some angry Trump tweet that nobody had noticed (no, there wasn’t… yet).

But while there was no official headline to prompt the selling, the reason for the move appears to be a report in the Journal according to which two of China’s most valuable U.S.-listed megacap companies “are pushing ahead with multibillion-dollar share sales in Hong Kong, amid growing pressure from U.S. lawmakers on Chinese companies to disclose their financial information or delist.”

The listing plans of NetEase Inc., an online games company, and JD.com Inc., the operator of an e-commerce website, will be reviewed on Thursday by the listing committee of the Hong Kong Stock Exchange, people familiar with the situation told the Wall Street Journal.

The two companies aim to raise around $2-3 billion each, ahead of their trading debuts on June 11 and 18, respectively, the report added.

The closely watched listings come at a sensitive time for US-listed Chinese companies: amid a push to limit or halt Chinese company listing on the Nasdaq, last week legislation was passed by the Senate—and now introduced in the House—which would kick Chinese companies off U.S. stock exchanges unless their audits are inspected by U.S. regulators.

At the same time Beijing’s controversial move to impose a new national-security law on Hong Kong has raised concerns over the city’s status as a major financial hub. Quoted by the state-backed China daily newspaper, Robin Li, founder of Chinese search-engine operator Baidu Inc., this month said “the company paid close attention to heightened scrutiny of Chinese companies and was constantly exploring options including a secondary listing in Hong Kong or elsewhere.”

end

ii)Market data/USA

iii) Important USA Economic Stories

Trump is threatening to close down Twitter and other social media to stop them from rigging 2020 vote

(zerohedge)

Trump Threatens To “Close Down” Twitter, Other Social Media To Stop Them From ‘Rigging’ 2020 Vote

Last night, President Trump slammed Twitter for tagging several of his tweets touting the alleged risks of mail-in ballots as ‘misinformation’, with the president accusing the social media giant of interfering in the 2020 election.

On Wednesday morning, Trump issued a couple more tweets claiming the federal government will “strongly regulate, or close them down” – referring to social media companies who suppress conservative voices in the name of protecting “the truth” (ie the progressive narrative that Silicon Valley tech giants have promised to perpetuate).

He also linked his accusations of bias with his opposition to mail-in ballots.

“We saw what they attempted to do, and failed, in 2016. We can’t let a more sophisticated version of that happen again. Just like we can’t let large scale Mail-In ballots take root in our Country,” Trump said in a series of tweets.

Weeks ago, anonymously sourced reports claimed that the White House was considering a panel to investigate anti-conservative bias on popular social media platforms and across Silicon Valley, an issue that has been explored in a series of Congressional hearings involving top officials at the biggest tech firms.

END

REALLY GOOD!!

(Peter Schiff)

A Black Swan With Teeth – Peter Schiff Warns, We’re Entering “Dangerous Territory”

Authored by Peter Schiff via SchiffGold.com,

For years, I have been warning that during the age of permanent stimulus (which began in earnest with the Federal Reserve’s reaction to the dotcom crash of 2000), each successive economic contraction would have to be met with ever larger, increasingly ineffective, doses of monetary and fiscal stimulus to keep the economy from spiraling into depression. I have also said that the enormity of the asset price gains over the last 10 years had increased the danger because reflating the bloated stock, real estate, and public and private debt markets would bring on doses of stimulus that could prove lethal for the economy. But even though I expected that the next financial crisis would be catastrophic, I thought that it would come into the world in the usual way, as a credit crisis triggered by over-leverage. But the Coronavirus ripped up those stage notes, and instead ushered in a threat that is faster and deeper than I imagined, and I imagined a lot. It’s a perfect storm, a black swan with teeth.

Even in my most pessimistic assessments, I did not expect that so many seemingly distant sectors of the economy would simultaneously evaporate, almost overnight, or that government deficits would expand to nearly $4 trillion in the first wave of the crisis, or that the Federal Reserve would so suddenly launch its largest-ever experiment in quantitative easing, (with almost none of the forward guidance they have used to telegraph lesser moves), which would expand its balance sheet by more than $3 trillion in a matter of just a few months. Nor did I expect that at its outset the Fed’s new buying plan would include, for the first time, corporate bonds and high yield debt ETFs. (I thought those expansions would come eventually, not immediately.)

To make matters even worse, the crisis has struck in the midst of a presidential election year, which guarantees that every policy decision has been made through a political prism. Democrats are seizing on the crisis to paint the Trump Administration as incompetent, ineffective and uncaring, often twisting themselves into knots to do so. (Trump has done himself no favors by using his daily briefings to showcase his inconsistent policy positions, combative political style, and his tenuous grasp of medical concepts.) So, in contrast to prior national crises that had tended to pull the country together (think 9/11), this event is tearing us apart.

But there is one thing upon which both sides seem to agree: the need for the Federal government to shower the economy with newly created money, bail out everyone who can claim that the virus “was not their fault,” and to fully liquefy the financial markets. The result has been an increase in government spending that dwarfs everything we have ever seen in the past, including the government’s response to the 2008 financial crisis. The $3 trillion increase in Federal debt accumulated this spring may just be the beginning.

The major political differences now center on matters of degree, particularly how long the economy should remain closed and how many jobs, businesses, and family financial plans should be exchanged for each life that may be saved through extended lockdowns. This is where it gets ugly.

  • Most Democrats, claiming that they are solely motivated by a desire to save as many lives as possible, are pushing for extended lockdowns. But given the economic and scientific idiocy of their proposals (for instance, the failure to differentiate between relative risk levels across society), you can forgive those who conclude that they are at least partially interested in enacting the sorts of radical economic transformations that would have been impossible to push through in normal circumstances.
  • Republicans are leaning in the other direction, with many favoring the Swedish approach to the pandemic, which looks to quarantine the most vulnerable (the elderly and immuno-compromised) while seeking to build “herd immunity” among the majority of healthy citizens. This idea avoids lockdowns and social distancing (and tolerates elevated infection rates among the healthy) in order to suppress future infection waves, and more importantly, to prevent economic catastrophe.

Of course, the Swedish government, knowing that it alone would have to bear the cost of its decisions, did a rational cost/benefit analysis on its options. U.S. governors, who are relying on the Federal government to support the unemployed and to bail out state deficits, have been spared these hard choices. With costs shifted to the Federal government, states have underplayed economic considerations in their public health plans. No doubt many states have seized on the crisis as an opportunity to be bailed out of financial problems that predated the current crisis.

From his basement-based presidential campaign, Joe Biden has repeatedly asserted that trade-offs between safety and economic activity are a “false choice,” and that any policies that may just prevent “one more death” should be implemented, no matter the costs. Such claims are symptomatic of a politician who prefers cheap posturing to reality.

The insanity of this idea can be seen in California, a state under total control of the Democrats.

Despite a per capita death rate that is less than 30% of the national average, based on current data from Wolrldometer, the state seems to be prepared to commit economic suicide. In Los Angeles County, home to more than 10 million people as of 2018, the County Public Health Director just recommended that lockdown orders stay in place until August. On May 8 The Mercury News reported that California guidelines now dictate that counties remain closed until there are no COVID deaths, and no more than one new case per 10,000 residents, in the last 2 weeks. That bar is set so high that it seems designed never to be cleared.

Democrats’ preferred approach seems to be: Test everyone in the country for the disease, contact trace the tens of millions who are likely to test positive (even though that accomplishes nothing), lockdown until a vaccine is developed, and pass the costs on to the Federal Government. They seem to prefer this to a world in which Americans are empowered to make choices regarding their own health risks and economic imperatives. In so doing, some have equated calls for “liberty” with racism and greed.

Some of the government’s immediate responses have been laughably inept. Take the Paycheck Protection Program (PPP), which provides direct payments to workers who have lost jobs due to forced shutdowns. The problem is that the payments are often significantly higher than the former wages earned by many workers. That means that even when companies are allowed to open and rehire, many employees may not want to come back to work, at least not until their new unemployment checks run out. And based on the current drift in Washington and the stakes created by the election, there is a high likelihood that the generous payments will be renewed before the program expires in late summer. (Democrats want to extend the higher payments until January).

This is dangerous territory. As former Libertarian leader Harry Browne once said:

Government breaks your leg, and then hands you a crutch and says, “See, if it weren’t for us, you wouldn’t be able to walk.”

That is precisely what is happening here.

For countries that issue currencies that are not the world’s reserve (that is every country but the U.S.) the playbook is radically different. Down in the cheap seats, politicians are aware that the costs of trying to print your way out of a financial dead-end are likely to be higher than the temporary gain of immediate liquidity injections. Blatant “debt monetization,” whereby a government sells newly-created bonds to its central bank, usually ends in rampant, or even hyper, inflation, which wipes out the savings and the economic viability of the nation. But the dollar sits at the center of the global financial system, creating a built-in demand, as most cross-border transactions need dollars to execute. This advantage allows Washington to consider policy options that would be too risky for other countries.

And so while we can clearly see this new wave of debt forming on the horizon, few fear any real damage when it finally crashes onto shore. The fact that we have yet to pay a high price for our prior accumulation of debt, in terms of inflation and high interest rates, gives politicians and Wall Street cheerleaders room to suggest that there is no downside to the “government pays for everything” approach.

With this trump card tucked into our sleeve, the United States will now engage in the biggest experiment in money creation the world has ever seen. The hubris of American monetary exceptionalism may mean that no plan will be devised to steer us out of the dead-end of zero, or negative interest rates, no plan to confront our massive fiscal structural deficits, and no plan to create an economy that can survive without government life support.

But maybe the experiment in money creation can succeed in getting us through the COVID Depression without causing consumer prices to surge and cutting the legs out under the dollar? Maybe everything I have ever learned, or felt, about economics is wrong? Maybe money can grow on trees? I’m betting it can’t.

But this crisis will present different math than what we have seen over the last 20 years. We will be showering the country with money at a time when the supply of goods and services is diminishing due to work stoppages, production declines, distribution bottlenecks, and import restrictions.

Even if all restaurant and retail employees were to ignore the incentives and return to work, there is no certainty that customers will follow as fears of contagion will remain long after the economy reopens, and social distancing procedures will reduce the quality of the experience while increasing its cost. There are also no legal protections currently on the books to shield employers from lawsuits brought by workers or customers who may contract the virus on their premises. Under these circumstances, wide swaths of business sectors may just cease to be. In sum, there are many reasons to suspect that a very deep recession, or even a depression, will remain even after the disease subsides. All this means that the economic rebound may be much softer than expected.

So, we will have more money chasing fewer goods and services. This is a recipe for stagflation, whereby prices go up even while the economy contracts, creating a horrible economic situation for those at the bottom of the economic pyramid. Most dangerously, we see this happening now in the food supply, with meat processors and farmers facing difficulties in getting products to market. If you think social cohesion is breaking down now, wait until people have problems feeding their families.

When you get down to it, this crisis exposes just how deeply the decay of debt has undermined the economy. The forced shutdowns and social distancing would have been a serious blow to a very robust economy, but not likely fatal. In a healthy economy, individuals, businesses, and even governments, may have had the savings to draw on in case everything went wrong. Savings could have allowed us to freeze economic activity for a time, and survive to see it restart. But credit has become so cheap and so freely given in recent decades that the incentive to save has never been lower. Knowing that credit cards are handed out like lollipops, consumers have learned to live paycheck-to-paycheck. With interest rates near zero, small businesses have learned to rely on business lines of credit to pay current bills, and mega-cap corporations borrow to buy back shares, trading long-term stability for a short-term share price appreciation. In such an environment, any economic interruptions that constrain short-term revenues create an immediate crisis. Without the life support of savings, everyone immediately calls on the government to ride to the rescue. The problem is the politicians show up with the economic equivalent of pep pills and leeches.

So, we can see where this is going. Debt and monetary expansion look almost certain to increase. The dollar may eventually buckle under the weight, dragging the bond market down with it. It’s hard to say what the economy will look like once the bill comes due, but investors have plenty of warning. They should use the current period, where the dollar has yet to fall, to consider holdings that may provide real protection.

END
Next up: Amtrak who seeks a 1.48 billion dollar bailout from the Federal government
(zerohedge)

Amtrak Seeks Billion Dollar Bailout, Prepares To Slash 20% Of Workforce As Ridership Crashes

Amtrak warned Monday it needs a $1.475 billion bailout from the federal government to maintain “minimum service levels,” anticipating passenger volumes will be depressed through 2021, reported The Washington Post.

Amtrak chief executive William J. Flynn wrote a letter to Congress explaining how the economic fallout has devastated the passenger railroad service that provides medium and long-distance intercity travel across the country.

“It is clear that Amtrak faces daunting challenges in the Fiscal Year 2021, which will require us to take action to protect our rail network, our critical capital assets, and the livelihoods of our employees,” Flynn said in the letter dated Monday.

“While we work towards a full recovery one day, our current projections tell us that we expect to see ridership drop by approximately 50%, down to just over 16 million riders in FY 2021,” Flynn said in the letter.

Amtrak’s request for $1.475 billion is for the fiscal year that begins in October is an addition to its annual $2 billion federal grant.

The railroad plans to slash operating expenses by approximately $500 million to weather the downturn. Congress has already given it $1 billion in emergency funding to keep the railroad running. At the moment, ridership and revenue levels have collapsed by 95% since the virus outbreak began.

In a letter to employees, first seen by Reuters, Flynn said, “it is clear we have no choice but to reduce our overhead structure to better align our costs with our revenues.”

“This reduction is necessary to ensure we have a sustainable Amtrak that can continue to make critical investments in our core and long-term growth strategies, while also keeping safety as our top priority.”

Reuters notes planned cuts could be upwards of 20% of its workforce in the coming fiscal year.

Amtrak expects revenues on a full-year basis to plunge 50%. It also expects ridership to drop from 32 million in 2019 to 16 million in 2021. Even with emergency funding, Amtrak is expected to cut some of its services.

Read: Amtrak Suspends Some Non-Stop Acela Service Due To Virus

Passenger rail is essential to America’s economic development. The most heavily traveled portion of Amtrak’s rail system is the Northeast Corridor, which stretches from Washington, DC, to Baltimore to New York to Boston.

Northeast states contribute around 20% of US GDP, which all suggests if passenger rail activity has collapsed — the real economy will likely remain depressed this year and into next. Hopes for a V-shaped recovery are quickly fading…

end

iv) Swamp commentaries)

Grenell declassifies the Flynn Kislyak calls on his last day in office and now waits for incoming DNI Ratcliffe to make the decision of how to release them to the public.

(zerohedge)

Grenell Declassifies Flynn-Kislyak Calls On Last Day As Acting DNI

In his last act as Acting Director of National Intelligence, Richard Grenell declassified the transcripts of intercepted phone calls between former National Security Adviser Michael Flynn and former Russian Ambassador to the US, Sergey Kislyak.

The now-declassified transcripts are in the hands of his successor, former Rep. John Ratcliffe (R-TX), who was sworn in on Tuesday after the Senate confirmed him last Thursday by a vote of 49-44. Ratcliffe will decide whether they are released to the public, according to the New York Post.

Grenell said last week that he was in the process of declassifying the transcripts after House Intelligence Committee Chairman Adam Schiff (D-CA) made a written request for Grenell to do so, who was joined by Rep. Eric Swalwell (D-CA) – to which Grenell replied “Those are coming. It’s very important for the public to see ALL of them,” adding “For too long the public has been misled. Just compare your committee’s transcripts to your public statements!”

The move follows a scorching Monday letter Grenell wrote to Sen. Mark Warner, who requested on May 20 that Grenell declassify intelligence reports in which Obama administration officials had unmasked Flynn’s identity after Grenell revealed a list of ‘unmaskers.’

In response, Grenell said on Monday that he found it “puzzling” that Warner’s letter conveyed concerns over the declassification of Obama officials who unmasked Flynn – while in the next breath requesting the declassification and release of intelligence reports.

“Cherry-picking certain documents for release, while attacking the release of others that don’t fit your political narrative, is part of the problem the American people have with Washington D.C. politicians,” wrote Grenell, who then asked Warner to explain his “philosophy on transparency,” suggesting that “it appears to be solely on political advantage.”

Flynn was fired weeks after the Kislyak calls for lying to Vice President Mike Pence about the substance of the conversations, in which Flynn asked Russia not to escalate tension after the outgoing Obama administration slapped sanctions on the Kremlin in response to claims of election meddling in the 2016 election. Flynn later pleaded guilty in 2017 for lying to the FBI about the calls, however evidence emerged in his trial that the FBI was trying to ensnare him in a ‘perjury trap’ in which one option was to ‘try to get him to lie.’

“What’s our goal? Truth/Admission or to get him to lie, so we can prosecute him or get him fired?” reads one handwritten note by the FBI’s then-director of counterintelligence.

Last week, Flynn’s lawyer Sidney Powell joined former National Security Adviser Susan Rice in calling for the transcripts to be released.

Powell said last Wednesday on SiriusXM’s “The Dan Abrams Show” that she “would love” to see those conversations become public, arguing that she believes the transcript would help exonerate her client.

“I think the reason we haven’t seen [the transcripts] is because the word ‘sanctions’ doesn’t even appear in them,” she said at the time. –New York Post

After the FBI’s plot to target Flynn emerged, the Department of Justice moved to drop the case – which is currently being stonewalled by activist Judge Emmet Sullivan.

end

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

Many Americans used part of their coronavirus stimulus check to trade stocks

  • People earning between $35,000 and $75,000 annually traded stocks about 90% more than the week prior to receiving their stimulus check.
  • “There’s clearly a correlation between Covid and people being reengaged with their money,” Bill Parsons, Group President, Data Analytics at Envestnet Yodlee told CNBC.
  • The coronavirus rout also appeared to bring a copious amount of new accounts to online brokers in the first quarter…

https://www.cnbc.com/amp/2020/05/21/many-americans-used-part-of-their-coronavirus-stimulus-check-to-trade-stocks.html

After the dip into the European close, the standard post-European close rally appeared.  The DJIA and DJTA hit new session highs in the early afternoon.  However, that was the peak for the day.  ESMs and stocks declined into the close.  When the S&P 500 Index fell below 3000 for the second time (20 minutes before the NYSE close), selling accelerated.  Here’s the reason for the late tumble:

U.S. Weighs Sanctions on Chinese Officials, Firms over Hong Kong – The Treasury Department could impose controls on transactions and freeze assets of Chinese officials and businesses for implementing a new national security law that would curtail the rights and freedoms of Hong Kong citizens…

https://www.bloomberg.com/news/articles/2020-05-26/u-s-weighs-sanctions-on-chinese-officials-firms-over-hong-kong-kaobpsbv

US will pay for companies to bring supply chains home from China: Kudlow

COVID-19 has highlighted the problem of relying too heavily on one country for production

https://www.foxbusiness.com/markets/us-pay-bring-china-supply-chains-home-kudlow

Fed’s “National Activity Index” Crashes by Most in at Least 50 Years

The national index, which draws on 85 economic indicators, crashed to a record low -16.74 in April versus -4.97 in March (and massively worse than the expected level of -3.50)…

https://www.zerohedge.com/personal-finance/feds-national-activity-index-crashes-most-least-50-years

US will pay for companies to bring supply chains home from China: Kudlow

COVID-19 has highlighted the problem of relying too heavily on one country for production

https://www.foxbusiness.com/markets/us-pay-bring-china-supply-chains-home-kudlow

Left-leaning Politico: The general election scenario that Democrats are dreading

We are about to see the best economic data we’ve seen in the history of this country,” says a top former economic adviser to Obama.

      Furman laid out a detailed case for why the months preceding the November election could offer Trump the chance to brag — truthfully — about the most explosive monthly employment numbers and gross domestic product growth ever…

     He believes, the way to think about the current economic drop-off, at least in the first two phases, is more like what happens to a thriving economy during and after a natural disaster: a quick and steep decline in economic activity followed by a quick and steep rebound…

A rebound won’t mean that Trump has solved many underlying problems. Since the crisis started, many employers have gone bankrupt. Others have used the pandemic to downsize. Consumption and travel will likely remain lower. Millions of people in industries like hospitality and tourism will need to find new jobs in new industries.

     The scenario would be a major long-term problem for any president. But before that reality sets in, Trump could be poised to benefit from the dramatic numbers produced during the partial rebound phase that is likely to coincide with the four months before November

https://www.politico.com/news/2020/05/26/2020-election-democrats-281470

Between now and the November election, the US economy will show abysmal year over year economic data; but on a month over month basis, it could show record growth after the record 2-3 month tumble.

The problem for investors is that due to central bank promiscuity, stocks are soaring on the prospect of great month over month economic growth.  But, in the absolute, earnings on a yearly basis will be horrid.  This means stock valuations are egregiously extreme and are likely to get even more extreme.

The worst aspect of Monday’s massive stock market rally: It unleashed Bad Orangeman braggadocio.

@realDonaldTrump: For all of the political hacks out there, if I hadn’t done my job well, & early, we would have lost 1 1/2 to 2 Million People, as opposed to the 100,000 plus that looks like will be the number. That’s 15 to 20 times more than we will lose. I shut down entry from China very early!  One person lost to this invisible virus is too much, it should have been stopped at its source, China, but I acted very quickly, and made the right decisions. Many of the current political complainers thought, at the time, that I was moving far too fast, like Crazy Nancy!

Grenell declassifies slew of Russia probe files, as Ratcliffe takes helm as DNI

Grenell also completed the declassification review of other documents related to the origins of the Russia probe — including one that a senior intelligence official told Fox News was “very significant in understanding howintelligence was manipulated to support launching the Russia investigation.”…

https://www.foxnews.com/politics/grenell-declassifies-slew-of-russia-files-as-ratcliffe-takes-helm-as-dni

Here’s The ‘Unclassified’ List of Actions Ric Grenell Took as DNI to ‘Break’ the ‘Deep State’

https://dailycaller.com/2020/05/26/exclusive-unclassified-actions-ric-grenell-dni-break-deep-state/

Citizen Journalist Busts Democrat Mail-In Voting Nursing Home Scandal in Texas

Evidence presented below includes a video of a Democrat campaign surrogate harvesting mail ballots from a nursing home, audio of a Democrat campaign worker admitting to harvesting ballots from a nursing home, and mail-in ballots from Harris County that all have the same handwriting and envelope process… https://nationalfile.com/citizen-journalist-busts-democrat-mail-in-voting-nursing-home-scandal-in-texas/

U.S. Has 3.5 Million More Registered Voters than Live Adults — a Red Flag For Electoral Fraud 

https://www.investors.com/politics/editorials/u-s-has-3-5-million-more-registered-voters-than-live-adults-a-red-flag-for-electoral-fraud/

WV Attorney General @WestVirginiaAG: An investigation by the WV Attorney General’s Office on behalf of the Secretary of State’s Office led to a criminal charge against a rural mail carrier Tuesday in connection with the alleged manipulation of absentee voter requests.   https://bit.ly/3eh1L6k

@realDonaldTrump: There is NO WAY (ZERO!) that Mail-In Ballots will be anything less than substantially fraudulent. Mail boxes will be robbed, ballots will be forged & even illegally printed out & fraudulently signed. The Governor of California is sending Ballots to millions of people, anyone living in the state, no matter who they are or how they got there, will get one. That will be followed up with professionals telling all of these people, many of whom have never even thought of voting before, how, and for whom, to vote. This will be a Rigged Election. No way!

@realDonaldTrump: Twitter is now interfering in the 2020 Presidential Election. They are saying my statement on Mail-In Ballots, which will lead to massive corruption and fraud, is incorrect, based on fact-checking by Fake News CNN and the Amazon Washington Post.  Twitter is completely stifling FREE SPEECH, and I, as President, will not allow it to happen!

CUOMO: Coronavirus Projection Models ‘ALL WRONG,’ National Experts ‘Failed’

https://hannity.com/media-room/cuomo-coronavirus-projection-models-all-wrong-national-experts-failed/

We’re old enough to remember when the MSM doted on Cuomo and advocated that he replace Biden.

Andrew Cuomo managed to kill grandma — and New York’s economy with it too

https://nypost.com/2020/05/25/andrew-cuomo-managed-to-kill-grandma-and-new-yorks-economy/

Sen. (D-MN) Klobuchar Bashes Trump over His Use of Hydroxychloroquine After Same Drug Saved Her Husband’s Life – wants to be Joe Biden’s running mate, so she’ll say and do just about anything…  https://www.thegatewaypundit.com/2020/05/klobuchar-admits-drug-touted-trump-helped-husband-recover-covid-19-bashes-trump/

NY Post Editorial Board: Sorry, media: You’re not victims no matter how much ‘abuse’ you take

After grousing that Stephanie Grisham, President Trump’s former press secretary, never held a formal briefing, the media can’t stand that Kayleigh McEnany, her successor, has made those briefings too contentious.  McEnany steamrolls, she dodges, she lectures reporters on the questions they should be asking.  To which Americans say: Stop whining!

    Of course the Trump administration is playing tough with the media — because the media has played tough with him before he was even elected. Nearly every question asked in the briefing room is usually in the loaded construction of, “As you know, things are terrible, and it’s your fault, care to comment?” McEnany has decided to hit back… Kayleigh McEnany hurting your feelings is not a constitutional crisis… Get over yourselves. [There is no entity as thin-skinned as the media.  They love to dish it out 24/7; but they can’t take the lease bit of criticism or ridicule.]

https://nypost.com/2020/05/25/sorry-media-youre-not-victims-no-matter-how-much-abuse-you-take/

Well that is all for today

I will see you THURSDAY night.

One comment

  1. Fred Frederiksen · · Reply

    Harvey,

    This man made COV-19 is a big deal.
    Do you have a link / article to Professor Luc Montagnier claiming that all man made viruses revert to their natural state? Maybe from a month ago?

    Thanks for your diligence,
    Fred Frederiksen

    Like

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