JUNE 8//GOLD HAS A GOOD DAY UP $18.70 TO $1699.10//SILVER UP 36 CENTS TO $17.70// COMEX GOLD HAS ALMOST 160 TONNES OF GOLD STANDING FOR DELIVERY///CORONAVIRUS UPDATES//COVID 19 BECOMING LESS VIRULENT..UNIV. OF PITTSBURG//JOHN WILLIAMS ..A MUST VIEW//MICHAEL EVERY AND BRANDON SMITH… ALSO A MUST READ…//CHRIS WHALEN ON THE DEMISE OF USA COMMERCIAL REAL ESTATE//SWAMP STORIES FOR YOU TONIGHT///

GOLD:$1699.10  UP $18.70   The quote is London spot price

 

 

 

 

 

Silver:$17.70  UP 36 CENTS//LONDON SPOT PRICE

 

 

Closing access prices:  London spot

 

 

 

i)Gold : $1698.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.76//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

 

AUG GOLD:  $1705.50  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $+6.40

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:              $17.91//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      21 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:  987/1321

EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,676.200000000 USD
INTENT DATE: 06/05/2020 DELIVERY DATE: 06/09/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 24
072 H GOLDMAN 133
099 H DB AG 212
104 C MIZUHO 7 2
118 H MACQUARIE FUT 29
132 C SG AMERICAS 3
167 C MAREX 1
190 H BMO CAPITAL 14
323 H HSBC 3
355 C CREDIT SUISSE 15
357 C WEDBUSH 29
624 C BOFA SECURITIES 12
657 C MORGAN STANLEY 45
657 H MORGAN STANLEY 714
661 C JP MORGAN 894
661 H JP MORGAN 93
685 C RJ OBRIEN 2
686 C INTL FCSTONE 311
690 C ABN AMRO 26 25
732 C RBC CAP MARKETS 2
737 C ADVANTAGE 6 7
800 C MAREX SPEC 6 6
905 C ADM 10 11
____________________________________________________________________________________________

TOTAL: 1,321 1,321
MONTH TO DATE: 47,123

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 1321 NOTICE(S) FOR 132,100 OZ (4.108 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  47,123 NOTICES FOR 4,712,300 OZ  (146.57 TONNES)

 

 

SILVER

 

FOR JUNE

 

 

6 NOTICE(S) FILED TODAY FOR  30,000  OZ/

total number of notices filed so far this month: 404 for 2,0200,000 oz

 

BITCOIN MORNING QUOTE  $9728 DOWN $16

 

BITCOIN AFTERNOON QUOTE.: $9702  DOWN 12

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $18.70 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A HUGE  PAPER WITHDRAWAL OF:  4.10 TONNES FROM THE GLD

GLD: 1,128.11 TONNES OF GOLD//

 

WITH SILVER UP 36 CENTS TODAY: AND WITH NO SILVER AROUND

 

TWO CONSIDERABLE PAPER WITHDRAWALS: 1) 932,000  OZ

ii ) 1.491 million oz

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 471.731  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A STRONG SIZED 1588 CONTRACTS FROM 170,820 DOWN TO 169,232 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED LOSS IN  OI OCCURRED WITH  OUR VERY HUGE 46 CENT LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS DUE TO STRONG  BANKER SHORT COVERING PLUS A GOOD EXCHANGE FOR PHYSICAL ISSUANCE, SOME LONG LIQUIDATION, ACCOMPANYING  A  GOOD INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE.  WE HAD A NET LOSS IN OUR TWO EXCHANGES OF 847 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 GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  MAY: 0 AND JULY: 727  AND SEPT 14 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  741 CONTRACTS. WITH THE TRANSFER OF 741 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 741 EFP CONTRACTS TRANSLATES INTO 3.705 MILLION OZ  ACCOMPANYING:

1.THE 46 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 FINAL STANDING FOR MAY

2.085  MILLION OF INITIALLY STANDING FOR JUNE

 

FRIDAY, 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 46 CENTS).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE SUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME SILVER LONGS FROM THEIR POSITIONS. THE CONSIDERABLE LOSS AT THE COMEX WAS ACCOMPANIED BY : i)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A GOOD INCREASE IN SILVER OZ STANDING FOR JUNE,3) CONSIDERABLE BANKER SHORT COVERING  AND 4) SOME LONG LIQUIDATION AS  WE DID HAVE A  NET LOSS OF 847CONTRACTS OR 4.235 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

SPREADING OPERATIONS

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO SILVER…..

SPREADING OPERATION FOR OUR NEWCOMERS:

 

FOR NEWCOMERS, HERE ARE THE DETAILS:

 

SPREADING LIQUIDATION HAS NOW COMMENCED IN SILVER  AS WE HEAD TOWARDS THE NEW ACTIVE FRONT MONTH OF JULY.

 

 

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 GOLD..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR SILVER.  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 SILVER 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 JUNE HEADING TOWARDS THE ACTIVE DELIVERY MONTH OF JULY FOR SILVER:

 

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF JUNE. BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (JULY), 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

JUNE

 

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY /FOR MONTH OF JUNE:

3507 CONTRACTS (FOR 7 TRADING DAY(S) TOTAL 3507 CONTRACTS) OR 17.535 MILLION OZ: (AVERAGE PER DAY: 501 CONTRACTS OR 2.505 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 17.535 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 1.609% 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:          1,083.47 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 FINAL:                     77.27 MILLION OZ

JUNE EXP SO FAR                   17.535 MILLION OZ.

EXCHANGE FOR PHYSICAL ISSUANCE FOR THE PAST 60 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 AN EXTREMELY LARGE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1588, WITH OUR HUGE 46 CENT LOSS IN SILVER PRICING AT THE COMEX ///FRIDAY THE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 741 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 LOST A STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  847 CONTRACTS (WITH OUR 46 CENT LOSS IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 741 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A LARGE SIZED DECREASE OF 1,588 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A HUGE 46 CENT LOSS IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.34 // FRIDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.856 BILLION OZ TO BE EXACT or 122% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JUNE  DELIVERY MONTH/ THEY FILED AT THE COMEX: 6 NOTICE(S) FOR  30,000 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//JUNE: 2.085 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 UNEXPECTED SMALL SIZED 213 CONTRACTS TO 471,145 AND SLIGHTLY FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE TINY SIZED LOSS OF COMEX OI OCCURRED DESPITE OUR STRONG LOSS IN PRICE  OF $40.40 /// COMEX GOLD TRADING// FRIDAY// WE  HAD STRONG BANKER SHORT  COVERING,ANOTHER HUMONGOUS SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A GOOD  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR STRONG LOSS IN PRICE OF $40.40 .

 

WE HAD A VOLUME OF 5  4 -GC CONTRACTS//OPEN INTEREST  8

 

WE GAINED A GOOD SIZED 4640 CONTRACTS  (14.43 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 4853 CONTRACTS:

CONTRACT  JUNE 0.; AUG 4835 AND ALL OTHER MONTHS ZERO//TOTAL: 4835.  The NEW COMEX OI for the gold complex rests at 471,145. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 4640 CONTRACTS: 213 CONTRACTS INCREASED AT THE COMEX AND 4853 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 4640 CONTRACTS OR 14.43 TONNES. FRIDAY, WE HAD A HUGE LOSS OF $40.40 IN GOLD TRADING……

AND WITH THAT LOSS IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 14.43 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 $40.40).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL  (SEE BELOW).

4 GC VOLUME: 5  // open interest 8 

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (4853) ACCOMPANYING THE TINY SIZED LOSS IN COMEX OI  (213 OI): TOTAL GAIN IN THE TWO EXCHANGES:  5008 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)ANOTHER HUMONGOUS INCREASE IN GOLD  OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT JUNE MONTH,  3) ZERO LONG LIQUIDATION; 4) TINY COMEX OI GAIN..  AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG LOSS IN GOLD PRICE TRADING//FRIDAY//$40.40.

SEEMS THAT NOBODY LEFT THE GOLD ARENA DESPITE THE VICIOUS ATTACK!! NO DOUBT THAT THE NEWBIE TRANSFERS TO LONDON WILL EXERCISE FOR PHYSICAL METAL.

WE ARE BEGINNING TO WITNESS A LACK OF EXCHANGE FOR GOLD PHYSICALS UNDERWRITTEN DUE TO PREMIUMS STARTING TO REAPPEAR IN THE FUTURE PRICE OF GOLD VS LONDON SPOT. THE COST TO THE BANKERS IS JUST TOO GREAT TO ENGAGE IN THESE VEHICLES ONCE THIS OCCURS.

THE FACT THAT WE ARE CONTINUALLY SEEING A DROP IN COMEX OPEN INTEREST AND VOLUMES COUPLED WITH LESS EXCHANGE FOR PHYSICALS PROBABLY MEANS THAT OUR LONGS ARE ALREADY DEPARTING NEW YORK FOR THE NEW PHYSICAL PLATFORM AT LONDON’S LME.

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

JUNE

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JUNE : 19,465 CONTRACTS OR 1,946,500 oz OR 60.54 TONNES (7 TRADING DAY(S) AND THUS AVERAGING: 2435 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 7 TRADING DAY(S) IN  TONNES: 60.54 TONNES

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

THUS EFP TRANSFERS REPRESENTS 60.54/3550 x 100% TONNES =1.69% 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   2875.57  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:                     248.68 TONNES (EFP ISSUANCE STILL LOW// PREMIUM COST TO THE BANKERS IS HUGE..SO ISSUANCE IS LESS)

JUNE TOTAL EFP ISSUANCE:                     60.54 TONNES

 

 

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, FELL BY A STRONG SIZED 1588 CONTRACTS FROM 170,820 DOWN TO 169,232 AND FURTHER FROM 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.

THE STRONG LOSS IN OI SILVER COMEX WAS DUE TO;   1) CONSIDERABLE BANKER SHORT COVERING , 2) A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A GOOD INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE AND  4) SOME LONG LIQUIDATION 

 

EFP ISSUANCE 741 CONTRACTS

OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS  AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:

JULY: 727 CONTRACTS   AND SEPT: 14 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 741 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI LOSS  OF 1566  CONTRACTSTO THE 741 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GOOD LOSS OF 847 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 4.235 MILLION  OZ!!! OCCURRED WITH THE 46 CENT LOSS IN PRICE///

 

 

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 46 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A GOOD SIZED 741 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

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

(report Harvey)

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED DOWN 6.97 POINTS OR 0.24%  //Hang Sang CLOSED UP 6.36 POINTS OR 0.03%   /The Nikkei closed UP 314.97 POINTS OR 1.38%//Australia’s all ordinaires CLOSED UP .07%

/Chinese yuan (ONSHORE) closed UP  at 7.0744 /Oil UP TO 39.15 dollars per barrel for WTI and 42.27 for Brent. Stocks in Europe OPENED MOSTLY GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0774 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0688 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC SPREAD  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER 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 TOTALLY UNEXPECTED SMALL  213 CONTRACTS TO 471,145 MOVING CLOSER TO  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS  COMEX GAIN  OCCURRED DESPITE OUR STRONG LOSS OF $40.40 IN GOLD PRICING /FRIDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (4853 CONTRACTS),.  THUS WE HAD 1) CONSIDERABLE BANKER SHORT COVERING AT THE COMEX AND 2)   ZERO LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS INCREASE IN  GOLD OZ STANDING AT THE COMEX//JUNE DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A CONSIDERABLE GAIN ON OUR TWO EXCHANGES OF 4640 CONTRACTS DESPITE GOLD’S HUGE FALL IN PRICE. 

THE LONGS WERE WAITING IN AMBUSH FOR THE CROOKS TO DELIVER NON BACKED GOLD CONTRACTS AS THEY MUST BE ANTICIPATED THE RAID. 

 

 

WE AGAIN HAD 5    4 -GC VOLUME//open interest rises to 8

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF JUNE..  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 4853 EFP CONTRACTS WERE ISSUED:  4853 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 4853 CONTRACTS.

YOU WILL FIND THAT WHEN WE HAVE A PREMIUM IN THE FUTURES/SPOT, THEN THE NUMBER OF EXCHANGE FOR PHYSICALS DECLINE IN NUMBERS.  THE COST IS JUST TOO MUCH FOR THEM TO ISSUE.

 

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES:  4640 TOTAL CONTRACTS IN THAT 4853 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND LOST A TINY 213 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A CONSIDERABLE  AMOUNT OF EXCHANGE FOR PHYSICALS WITH STRONG BANKER SHORT COVERING, ACCOMPANYING THE TINY COMEX OI GAIN,  ANOTHER HUMONGOUS INCREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A HUGE LOSS  IN COMEX PRICE OF 40.40 DOLLARS..

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $40.40).  AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A GOOD 14.43 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 4640 CONTRACTS OR 464,000 OZ OR 14.43 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:  471,145 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 47.11 MILLION OZ/32,150 OZ PER TONNE =  1465 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1465/2200 OR 66.60% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 83,871 contracts//extremely low//most traders have moved to london

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY295,517 contracts//  volume low despite the raid on Friday

 

JUNE 8 /2020

JUNE GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
26,139.745 oz
Brinks
HSBC enhanced
Int. Delaware
Deposits to the Dealer Inventory in oz 96,453.0000

 

oz

 

3,000 kilobars

 

 

 

Deposits to the Customer Inventory, in oz  

150,679.392

OZ

BRINKS

HSBC

 

 

 

No of oz served (contracts) today
1321 notice(s)
 132,100 OZ
(4.108 TONNES)
No of oz to be served (notices)
3939 contracts
(393,900 oz)
12.25 TONNES
Total monthly oz gold served (contracts) so far this month
47,123 notices
4,712,300 OZ
146.57 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 deposit into the dealer

i) Into Brinks 96,453.000 oz

 

 

total dealer deposits:  96,453.000  oz

 

total dealer withdrawals: nil oz

we had 2 deposits into the customer account

i) Into Brinks  31,817.145 oz

ii) Into HSBC: 118,862.247 oz

 

 

 

 

 

total deposits: 150,679.392    oz

 

 

we had 3 gold withdrawals from the customer account:

 

i) Out of Brinks:  6596.681 oz

ii) Out of HSBC enhanced: 15,877.850.

iii) Out of Int Delaware: 3665.314 oz

 

total gold withdrawals;  26,139.745 oz

We had 2  kilobar transactions  +

 

We had 5  4 KC bar volume transactions/8 contracts oi

 

 

 

 

ADJUSTMENTS: 3 //    

 

customer to dealer: Loomis

19,290.000 oz was adjusted up to the dealer (600 kilobars)

and

JPMorgan:

29,903.279 oz adjusted up to the dealer.

dealer to customer:

Brinks:

5000.50 oz adjusted down to the customer from the dealer.

 

 

 

 

 

 

 

 

The front month of JUNE registered a total of 5258 oi contracts of a GAIN of 133 contracts.  We had 543 notices filed on FRIDAY so we gained A STRONG 676 contracts or an additional 67,600 oz of gold (2.109 TONNES) will stand in this very active delivery month of June.

After June we have the non active delivery month of July and here we had a GAIN of 38 contracts down to 3255 contracts.

Next comes August another strong delivery month and here the OI FELL by 1444 contracts DOWN to 330,946 contracts.

 

We had 1321 notices filed today for 132,100 oz

 

FOR THE JUNE 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 1321 contract(s) of which 93 notices were stopped (received) by j.P. Morgan dealer and 894 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 157 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the JUNE /2020. contract month, we take the total number of notices filed so far for the month (47,123) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (5260 CONTRACTS ) minus the number of notices served upon today (1321 x 100 oz per contract) equals 5,106,200 OZ OR 158.82 TONNES) the number of ounces standing in this active month of JUNE

thus the INITIAL standings for gold for the JUNE/2020 contract month:

No of notices served (47,123)x 100 oz + (5260 OI) for the front month minus the number of notices served upon today (1321) x 100 oz which equals 5,106,200 oz standing OR 158.82 TONNES in this  active delivery month. This is a HUGE record amount for gold standing for a JUNE delivery month or any active/non active delivery month.

We gained an additional 674 contracts or 67,400 oz will stand on this side of the pond.  Issuance of exchange for physicals is good today but.  It is still too costly for our crooked bankers to carry.

 

 

 

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

21,026.754 oz pledged June 5/2020   Brinks                  .6054 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 353.57 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 158.82 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  11,916,852.752 oz or 370.66 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  MAY 26.2020
e) pledged gold at int.Del.    19,290.600 oz  which cannot be settled:   (.600 tonnes)
f) pledged gold at Brinks:  21,026.754 oz which cannot be settled June 5 (.65402 tonnes)
total weight of pledged:  549,097.057 oz or 17.079 tonnes
thus:
registered gold that can be used to settle upon: 11,367,755.5  (353.57 tonnes)
true registered gold  (total registered – pledged tonnes  11,367,755.5 (353.57 tonnes)
total eligible gold:  17,087,158.178 oz (532.31 tonnes)

total registered, pledged  and eligible (customer) gold;   29,084,357.778 oz 904.64 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  778.30 tonnes

 

end

 

I have compiled  data with respect to registered (or dealer) gold taken on first day notice for each of the past 24 months

The data begins on first day notice for the May month taken on the last day of April 2018. and it continues to present day.  Thus 24 data entry points.

 

I then took, how many deliveries were recorded by the CME for each and every month.  I also included for reference the price of gold on first day notice.

 

The first graph is a logarithmic  graph and the second graph, linear.

You can see the huge explosion of registered gold at the comex along with deliveries.  Gold owners are very clear people.  They would know full well that

the gold at the comex is unallocated and that they would not be stupid enough to keep their gold at the comex especially in the registered category once deliveries are asked upon. If physical gold was present it would be have removed from the comex… It shows there is no gold at the comex.  They are just trading in sticky paper.

 

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

 

END

JUNE 8/2020

And now for the wild silver comex results

Total COMEX silver OI FELL BY A STRONG SIZED 1588  CONTRACTS FROM 170,820 DOWN TO 169,232(AND FURTHER FROM 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 LOSS TODAY OCCURRED WITH OUR 46 CENT LOSS IN PRICING//FRIDAY. WE LOST A TOTAL OF 847 CONTRACTS IN OUR TWO EXCHANGES.  THE LOSS IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A STRONG INCREASE IN  SILVER OZ STANDING AT THE COMEX FOR THE JUNE DELIVERY MONTH, 3)  CONSIDERABLE BANKER SHORT COVERING , 4) SOME  LONG LIQUIDATION,5) STRONG COMEX LOSS IN OI AND ALL OF THIS OCCURRED WITH OUR 46 CENT LOSS IN PRICE 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE

THE FRONT DELIVERY OF JUNE SAW 19 OPEN INTEREST CONTRACTS STANDING FOR A GAIN OF 4 CONTRACTS.  WE HAD 4 NOTICES SERVED UPON YESTERDAY SO WE GAINED 8 CONTRACT OR AN ADDITIONAL 40,000 OZ WILL  STAND IN THIS NON ACTIVE DELIVERY MONTH OF JUNE AS THEY REFUSED TO MORPHED INTO A LONDON BASED FORWARD.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI LOST 7126 CONTRACTS DOWN TO 108,218 CONTRACTS. AUGUST SAW ANOTHER GAIN OF 26 CONTRACTS TO 40 OPEN INTEREST CONTRACTS.. THE STRONG DELIVERY MONTH OF SEPT SAW A GAIN OF 5148 CONTRACTS UP TO 38,013

 

 

We, today, had  6 notice(s) FILED  for 30,000 OZ for the JUNE, 2020 COMEX contract for silver

 

JUNE 8/2020

JUNE SILVER COMEX CONTRACT MONTH

 

 

 

<

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 167,080.500 oz
CNT
Scotia

 

 

 

DEPOSIT INTO DEALER

NIL
DEPOSIT FROM CUSTOMER 1,160625.660

OZ

 

CNT

SCOTIA

No of oz served today (contracts)
6
CONTRACT(S)
(30,000 OZ)
No of oz to be served (notices)
13 contracts
 65,000 oz)
Total monthly oz silver served (contracts)  404 contracts

2,020,000 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 2 deposits into the customer account

into JPMorgan:   0

ii)into Scotia  459,958.780 oz

III)  Into CNT:  600,666.880 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: 1,060,625.660    oz

we had 1 withdrawals:

 

 

i) Out of Scotia: 167,080.500 oz

 

 

 

 

total withdrawals; 167,080.500   oz

We had 0 adjustments

 

 

total dealer silver: 85.401 million

total dealer + customer silver:  314.596 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the JUNE 2020. contract month is represented by 6 contract(s) FOR 30,000 oz

 

To calculate the number of silver ounces that will stand for delivery in JUNE we take the total number of notices filed for the month so far at 404 x 5,000 oz = 2,020,,000 oz to which we add the difference between the open interest for the front month of JUNE.(19) and the number of notices served upon today 6 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 404 (notices served so far) x 5000 oz + OI for front month of JUNE (19)- number of notices served upon today 6) x 5000 oz of silver standing for the JUNE contract month.equals 2,085,000 oz.

We GAINED 8  contracts or an additional 40,000 oz will  stand for delivery as they refused to morphed into London based forwards as well as negating a fiat bonus

 

TODAY’S ESTIMATED SILVER VOLUME: 34,155 CONTRACTS // volume low/

 

 

FOR YESTERDAY: 112,239..,CONFIRMED VOLUME//volume high/with raid

 

 

YESTERDAY’S CONFIRMED VOLUME OF 112,239  CONTRACTS EQUATES to 561 million  OZ 80.17% 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- 1.09% ((JUNE 8/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -0.58% to NAV:   (JUNE 8/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1.09%

(courtesy Sprott/GATA

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

NAV 16.38 TRADING 16.30///NEGATIVE 0.47

END

 

 

And now the Gold inventory at the GLD/

JUNE 8//WITH GOLD UP $18.70 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A WITHDRAWAL OF 4.10 TONNES AT THE GLD//INVENTORY RESTS AT 1128.11 TONNES

 

JUNE 5//WITH GOLD DOWN $40.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A PAPER WITHDRAWAL OF 1.16 TONNES OUT OF THE GLD//INVENTORY RESTS AT 1132.21 TONNES

JUNE 4//WITH GOLD UP $20.60: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD…A DEPOSIT OF 4.09 TONNES INTO THE GLD//INVENTORY RESTS AT 1133.37 TONNES

JUNE 3//WITH GOLD DOWN $26.15//A SMALL CHANGE IN GOLD INVENTORY//A DEPOSIT OF 0.78 TONNES OF GLD INTO THE GLD//INVENTORY RESTS AT 1129.28 TONNES

JUNE 2//WITH GOLD DOWN $11.20 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 5.26 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 1128.40 TONNES

JUNE 1//WITH GOLD UP $1.30//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.06 TONNES OF GOLD//GLD INVENTORY RESTS TONIGHT AT 1123.14 TONNES

MAY 29/WITH GOLD UP $19.40 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD///GLD INVENTORY RESTS THIS WEEKEND AT 1119.05 TONNES

MAY 28//WITH GOLD UP $4.00 TODAY/NO CHANGES IN GOLD INVENTORY TO THE GLD//INVENTORY RESTS  AT 1119.05 TONNES

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at

JUNE 8/ GLD INVENTORY 1128.11 tonnes*

LAST;  836 TRADING DAYS:   +183.19 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 738 TRADING DAYS://+358.39  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 8/WITH SILVER UP 36 CENTS TODAY: TWO HUGE WITHDRAWALS OF 932,000 MILLION OZ AND 1.491 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 470.240 MILLION OZ//

JUNE 5/WITH SILVER DOWN 46 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 648,000 OZ FROM THE SLV////INVENTORY RESTS AT 472.663  MILLION OZ

JUNE 4//WITH SILVER UP 8 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV.//INVENTORY RESTS AT 473.315 MILLION OZ//

 

JUNE 3//WITH SILVER DOWN 23 CENTS TODAY//NO CHANGES IN SILVER INVENTORY AT THE SLV//

INVENTORY RESTS AT 473.315 MILLION OZ//

JUNE 2//WITH SILVER DOWN 31 CENTS TODAY; A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A HUMONGOUS 6.686 MILLION OZ ADDED TO THE SLV////INVENTORY RESTS TONIGHT AT 473.315 MILLION OZ//

JUNE 1//WITH SILVER UP 38 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 3.56 MILLION OZ INTO THE SLV////INVENTORY RESTS TONIGHT AT 466.629 MILLION OZ//

MAY 29//WITH SILVER UP 52 CENTS TODAY: A MASSIVE DEPOSIT OF 2.796 MILLION OZ INTO THE SLV//INVENTORY RESTS THIS WEEKEND AT 463.273 MILLION OZ//

MAY 28//WITH SILVER UP 9 CENTS TODAY: A MASSIVE  CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 4.660 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 460.477 MILLION OZ//

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///

 

JUNE 8.2020:

SLV INVENTORY RESTS TONIGHT AT

470.240 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.36/ and libor 6 month duration 0.48

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

GOLD LENDING RATE: -1.88%

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

 

XXXXXXXX

12 Month MM GOFO
+ 2.03%

LIBOR FOR 12 MONTH DURATION: 0.63

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.40%

NEGATIVE GOLD LEASING RATES  INCREASING BY A HUGE AMOUNT//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

Alasdair Macleod writes that bankers are having trouble closing their short positions due to longs demanding delivery of 140 tonnes last week.

He claims that the Federal reserve is about to sacrifice the dollar in an attempt to preserve asset values

(Kingworldnews/Macleod/GATA)

Alasdair Macleod at KWN: Bullion banks still have a problem despite gold and silver pullback

 Section: 

10:50p ET Friday, June 5, 2020

Dear Friend of GATA and Gold:

Bullion banks, GoldMoney research director Alasdair Macleod writes at King World News tonight, are desperately trying to close their short gold futures positions in New York because metal just isn’t available. But, Macleod adds, they are failing as longs have demanded delivery of more than 140 tonnes in the last week.

The Federal Reserve, Macleod concludes, is about to sacrifice the dollar in an attempt to preserve asset values.

Macleod’s analysis is headlined “Bullion Banks Still Have a Problem Despite Gold and Silver Pullback” and it’s posted at KWN here:

https://kingworldnews.com/bullion-banks-still-have-a-problem-despite-gol…

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

END

Jim Rickards discusses the value of gold

(Jim Rickards/GATA)

Jim Rickards: Why gold, even though it’s taboo?

 Section: 

By James G. Rickards
The Daily Reckoning, Baltimore, Maryland
Tuesday, June 2, 2020

Why gold?

That’s a question I’m asked frequently. It’s usually followed by a comment along the lines of “I don’t get it. It’s just a shiny rock. People dig it out of the ground and then put it back in the ground. What’s the point?”

I usually begin my reply by saying, “It’s not a rock. It’s a metal,” and then go from there.

I have a lot of sympathy in these conversations. That people don’t know much about gold today is not exactly their fault. The economics establishment of policymakers, academics, and central bankers have closed ranks around the idea that gold is a taboo subject.

You can teach it in mining colleges but don’t dare teach it in economics departments. If you have a kind word for gold in a monetary context, you are immediately labeled a “gold nut,” “gold bug,” “Neanderthal,” or something worse. You are excluded from the conversation. Case closed. …

… For the remainder of the commentary:

https://dailyreckoning.com/why-gold/

end

James Turk gives his reasoning for our continual attacks by our banker friends

(Kingworldnews/Turk GATA

James Turk at KWN: What just happened in the gold market is no accident

 Section: 

11:45a ET Monday, June 8, 2020

Dear Friend of GATA and Gold:

GoldMoney founder James Turk notes today in commentary at King World News that the price of gold was pushed down to $1,680 just prior to the April and June meetings of the Federal Reserve’s Open Market Committee, and he thinks this is no coincidence.

iii) Other physical stories:

 

Schiff: A Soaring Stock Market Is Not A Sell Signal For Gold

Via SchiffGold.com,

US stock markets continued their inexplicable rally despite the economic destruction wrought by the coronavirus-induced shutdown. The S&P500 is only down about 3.5% on the year and the NASDAQ is actually up. As a result, a lot of investors seem to be getting out of safe havens, including gold. But in his podcast, Peter Schiff explains why selling gold is a mistake if you understand what’s really going on. In a nutshell, stocks are rising because the Fed is printing money. And no matter what the mainstream says, money printing matters.

Think about what has happened over the last year and ask yourself: does this make any sense?

Looking back at the end of 2019, people were optimistic. The stock market was booming. There was no sign of a recession in sight. But since then, the US economy has plunged into the worst recession since the Great Depression sparked by a global pandemic. Over 40 million people have filed for unemployment. The Federal Reserve is printing dollars at breakneck speed. The federal government has run up trillions of dollars in new debt through borrowing for stimulus and bailouts. And we’ve seen major civil unrest with looting and destruction in many major American cities.

If you were told all of this was going to happen back in January, would have believed the S&P 500 would barely be down and that the NASDAQ would be up some 8%?

There is only one explanation.

The only reason the market is rallying is because of the Fed. I mean, people can try to say, ‘Well no, the market is anticipating a recovery.’ This is a lot more than the anticipation of a recovery. This is the Fed driving the narrative, driving the market higher.

There was a bit of data that came out Wednesday that injected some optimism about a recovery into the markets and helped boost stocks. The ADP private payroll report came out. The expectation was for another 8.6 million jobs lost, but the number came in at just below 2.7 million jobs.

Peter said that number doesn’t even look possible given that we’ve seen 2 to 3 million people file for unemployment every week. Nevertheless, as soon as the number came out, the market rallied and gold sold off. The sentiment seemed to be that the economy isn’t as bad as we thought.

The economy is as bad as they thought. In fact, it’s probably worse. But when the number came out, the market rallied on it because of, I think, the momentum that has been created by the Fed.”

Peter said stocks are way overpriced even if the economy was much better than people thought.

Remember, the US stock market was overpriced at the end of 2019, before any of this bad stuff had happened. And now we have all this bad stuff, which is much worse than anybody could have possibly envisioned, and the market is barely down in the case of the S&P500. And in the case of the NASDAQ, the market is actually higher. Even though it was already expensive and priced for perfection, we got the antithesis of perfection, yet the market went up anyway.”

Meanwhile, the dollar is getting pounded and the bond market is also feeling pressure. The yield on the 30-year appears to be pushing toward 2%. That is still low, but keep in mind, not too long ago that yield was below 1%.

Incidentally, this is a problem for the Federal Reserve. The central bank bought a lot of Treasuries when the yield was under 1%. One of the reasons the market went up was because of all the money the central bank printed to buy up those bonds. Now, as rates rise, the Fed is losing money because it has taken on a lot of interest rate risk. As interest rates rise, bond prices fall. That means the Fed’s balance sheet is losing money.

Ultimately, we’re seeing the market move away from safe havens and that includes gold and silver. This is due to unwarranted optimism about an economic rebound. But Peter said he thinks it’s just the rise in the market itself that is creating the optimism.

People are thinking that the market is rising because people are optimistic about the recovery. I think people are optimistic about the recovery because the market is rising. And the market is not rising because of the recovery. The market is rising because of the Fed – because of all the money the Fed is printing. And even though a lot of people think printing money doesn’t matter, printing money matters a lot. And people are about to find out the hard way just how much it really matters.”

This is why investors should buy gold. It’s not primarily a hedge for your stock portfolio. It’s to hedge for your currency.

Whether they live in the US and have dollars, or they live in Europe and have euros, or they live in Japan and they have Japanese yen, central banks are creating tremendous inflation. And central banks have told everybody that we are intentionally destroying the value of our money. That is our goal. We want prices to go up more. We want more inflation. We want the dollars, or the euros, or the yen that you’re keeping in the bank or in your mattress somewhere – we want them to lose value. The longer you hold on to them, the more value they are going to lose. This is on purpose. This is by design. So, once the central banks have told you that’s the plan, you would be a fool to cooperate.”

Gold is a hedge against central banks creating inflation. It’s a hedge against debasing currency. Instead of selling gold because the stock market is going up, investors need to understand why the stock market is rising.

It’s rising because the Fed is printing all this money because the Fed is creating inflation and debasing the value of currency. That is going to drive the value of gold. Gold becomes more valuable because of what the government is doing to prop up the stock market and prop up the economy. So, a strong stock market is not a sell signal for gold.”

END

An excellent history on how silver was priced relative to gold

(Alasdair Macleod)

Orphaned Silver Is Finding Its Parent

Authored by Alasdair Macleod via GoldMoney.com,

This article examines the prospects for silver, which has been overlooked in favour of gold. Due to the economic and monetary consequences of the coronavirus lockdowns and the earlier turning of the credit cycle, there is an increasing likelihood of a severe and sustained downturn that will require far more monetary expansion to deal with, favouring the prospects of both gold and silver returning to their former monetary roles.

To understand the consequences for silver, this article draws on history, principally of silver standards in America and Britain, in order to appreciate the issues involved and the prospects for silver to regain its former monetary role.

Introduction

So far this year, the story in precious metals markets has been all about gold. Speculators have this idea that gold is a hedge against inflation. They don’t question it, don’t theorise; they just assume. And when every central bank issuing a respectable currency says they will print like billy-ho, the punters buy gold derivatives.

These normally tameable punters are now breaking the establishment’s control system. On Comex, the bullion establishment does not regard gold and silver as money, just an idea to suck in the punters. The punters are no longer the suckers. With their newly promised infinite monetary expansion, central banks are confirming their inflationary fears.

What makes it worse for bullion bank trading desks is that the banking system is now teetering on the edge of the greatest contraction of bank credit experienced at least since the 1930s, and banks are determined to rein in their balance sheets. We normally think of bank credit contraction crashing the real economy: this time, banks are reining in market making activities as well, and that includes out-of-control gold and silver trading desks, foreign exchange trading, fx swaps and other derivatives —anything that is not a matched arbitrage or an agency deal on behalf of a genuine customer.

Initially, the focus on gold left silver vulnerable. Figure 1 shows how the two metals have performed in dollar terms so far this year, indexed to 31 December 2019. When the bullion banking establishment tried one of its periodic smashes in mid-February, it reduced Comex gold futures’ open interest from just under 800,000 contracts to about 480,000. The price of gold bounced back strongly to be up 14% on the year and the bullion banks are still horribly net short. But silver crashed, losing 34% and has only just recovered to be level on the year so far.

For the punters, in a proper gold bull market silver is seen as just a leveraged bet on gold. They are less interested in the dynamics that cause a relationship to exist than they are on the momentum behind the price. For now, active traders are looking for entry points in both metals to build or add to their positions in a bullish but overbought market.

This is just short-term stuff, and much has been written on it about gold. We are generally unaware today that silver has been money for ordinary people more so than gold and in that sense still has the greater claim as a circulating medium. It is therefore time to devote our attention to silver.

A brief history of monetary silver

Silver has a similar history to gold of being money. Following the ending of barter, communities worldwide adopted durable metals – gold, silver or copper, depending on local availability — as the principal medium of exchange. And until the 1960s this heritage, with respect to copper and silver, was still reflected in the coinage used in most nations. The British currency is still known as sterling because since the reign of Henry II (1154–1189) money was silver coinage of sterling alloy, comprised of 92.5% silver, the balance being mainly copper.

Silver was the sole monetary standard, sometimes with gold on a bimetallic standard, for most regions from medieval times until the nineteenth century. Sir Isaac Newton reset the silver standard against gold in 1717, and it was because the British government overpriced gold and failed to adjust to the consequences of changing mine supplies, principally the subsequent expansion of gold supply from Brazil, that British commerce moved towards a gold standard during the eighteenth century.

We look in greater detail at these events later in this article.

As international trade developed, gold for trading nations assumed greater significance, leading eventually to the adoption of the British sovereign coin as the gold standard in the early nineteenth century.

In colonial America, silver was the principal circulating currency in common with that of Britain at the time, but following Newton’s introduction of a silver standard for the pricing of gold, similar practical relationships between the two metals existed for trade in nearly all Britain’s colonies; in America’s case at least until independence was formally gained by the Treaty of Paris in 1783.

When Alexander Hamilton was Treasury Secretary, the US introduced a bimetallic standard with the first coinage act in 1792 when the dollar was fixed at 371.25 grains of pure silver, minted with alloy into coins of 416 grains. Gold coins were also authorised in denominations of $10 (eagles) and $2.50 (quarter eagles). The ratio of silver to gold was set at fifteen to one. All these coins were declared legal tender, along with some foreign coins, notably the Spanish milled silver dollar, which had 373 grains of pure silver making them a reasonable approximation for the US silver dollar.

However, not long after Hamilton’s coinage act was passed, the international market rate for the gold/silver ratio rose to 15.5:1, which led to gold being drained from domestic circulation, leaving silver as the common coinage. Effectively, the dollar was on a silver standard until 1834, when Congress approved a change in the ratio to 16:1 by reducing the gold in the eagle from 246.5 to 232 grains, or 258 grains at about nine-tenths fine. An additional adjustment to 232.2 grains was made in 1834. After a few years, gold coins then dominated in circulation over silver, the circulation of which declined as it became more valuable relative to gold. Gold discoveries in California and Australia then increased the quantity of gold mined relative to silver, making silver even more valuable relative to gold coinage thereby driving it almost totally out of circulation. This was remedied by an act of 1853 authorising subsidiary silver coins of less than $1 to be debased with less silver than called for by the official mint ratio and less than indicated by the world market price.

Under financial pressure from the civil war, in 1862 the government issued notes that were not convertible either on demand or at a specific future date. These greenbacks were legal tender for everything but customs duties, which still had to be paid in gold or silver. The government had abandoned the metallic standards. Greenbacks were issued in large quantities and the United States experienced a substantial inflation.

After the war was over Congress determined to return to the metallic standard at the same parity that existed before the war. It was accomplished by slowly removing greenbacks from circulation. The bimetallic standard, measuring the dollar primarily in silver, was finally replaced with a gold standard in 1879, reaffirmed in 1900 when silver was officially relegated to small denomination money.

In Europe, most countries on a silver standard moved to gold after the Franco-Prussian war (1870–1), when Germany imposed substantial reparations from France which were paid in gold, and Germany was then able to migrate from a silver to a gold standard. Other European nations followed suit.

More recently, silver circulated as money in Arab lands in the form of Maria Theresa dollars, which had circulated widely in the Middle East and East Africa from the mid-nineteenth century and were still being used in Muscat and Oman in the 1970s.

These are just some examples of silver’s use as money in the past. It lives on in base metal coins today, made to look like silver. Now imagine a world where fiat currencies are discredited: gold or gold substitutes will almost certainly return as the money for larger transactions, and silver will equally certainly return as money for everyday transactions. Bimetallism might not return as official policy due to the frequent adjustments required, but history has shown that a relatively stable market rate between gold and silver is likely to ensue, and silver more than gold will ensure widespread distribution of circulating metallic money.

Supply and demand factors

Analysts are currently grappling with the effects of the coronavirus on supply and demand in their forecasts for the rest of this year. Silver mines have been affected by changes in grades and production shutdowns. According to the Silver Institute, in 2019 less than 30% of mine supply was from mines classified as primarily silver, the rest coming from lead/zinc, copper, gold mines and “others” in that order of importance. Miners of lead/zinc, copper and others made up about 56% of global silver mine supply, so that a decline in global economic activity automatically leads to a decline in silver output from base metal miners.

At the same time, falling industrial demand for silver throws a greater emphasis on investment to sustain demand overall. Last year, non-investment demand was 806 million ounces, while investment was estimated at 186 million, a relationship which in a deep recession will require a significant increase in investment demand to absorb the combination of mine, scrap and available above-ground stocks. Identifiable above-ground stocks are estimated at 1,651 million, a multiple of 1.67 times 2019 demand, and 8.9 times 2019 investment demand.

For 2020 and beyond, I am very bearish for the global economy for reasons stated elsewhere. If I am right, current estimates for mine supply, of which over half is dependent on base metal mines, will prove optimistic. But silver demand for non-investment usage is likely to decline even more, in which case investment demand will probably need to at least double if silver prices are to rise in real terms.

An interesting point is found in the comparison with gold, where above-ground stocks are many multiples of mine and scrap supply. Stock-to-flow comparisons have been popularised recently by the cryptocurrency community as a measure of future monetary stability, compared with that of infinitely expandable fiat currencies. A high stock-to-flow signals a low rate of inflationary supply. Silver has a very low stock to flow ratio due to the low level of above-ground stocks. But it is a mistake is to rely on this measure of monetary stability for a metallic money when the lack of physical liquidity should be the main consideration.

At current prices, silver’s above-ground stock is worth only $31bn, compared with gold’s at over $10 trillion. With this relationship of 323 times of gold to silver’s above-ground stock values and an annual mine supply ratio of only 8 times as many silver ounces to that of gold, it appears that if gold returns to its traditional monetary role, silver will turn out to be substantially undervalued. “If” is a little word for a very big assumption; but given the unprecedented and coordinated acceleration of monetary expansion currently proposed, an ending of the current fiat currency regime and a return to gold and silver as monies is becoming increasingly likely.

The relationship with gold in the numbers above suggest that a bimetallic standard today on mine supply considerations alone would be at almost half Isaac Newton’s 1717 exchange rate. Obviously, the issue is not so simple and will be settled by markets. But looking at some other facts suggest the gold/silver relationship is due for a radical rethink. Table 1 below lists some of the relevant ones.

The clear outlier is the gold/silver ratio.

How Newton decided the gold to silver ratio

It is natural to assume that the greatest scientific genius of the day derived a clever means to settle the gold/silver ratio when he was Master of the Royal Mint in 1717. Not so. He looked at existing exchange rates, how silver was disappearing from circulation in favour of gold at that time and set an initial rate to stop it. Furthermore, he recommended the rate be revised, most probably downwards, in the light of how trade developed. The point was that Britain operated a silver standard of money and both Newton and Parliament wished to retain it. It was, after all, the established money for day-to-day transactions.

To understand the monetary debates at the time, it will be helpful to commence with a guide to the composition of pre-decimal British money and coinage. There were 20 shillings to the pound (£), and twelve pence to the shilling. Silver coins were crowns (5 shillings) and half crowns, being 2 shillings and 6 pence, written 2s. 6d. There were silver coins of lesser value, but they are not relevant to this discussion.

Over a century before Newton, in 1601 a pound weight of old standard silver was coined into £3. 2s. 0d. in crowns and fractions thereof and remained the mint price of silver until 1816, a period lasting over two centuries. In 1670, a pound in weight of gold was coined into £44. 10s. 0d., represented by gold pieces of ten and twenty shillings. That was the equivalent of 14.35 times the value of silver. A monetary pound of twenty shillings was called a guinea, because when they were first struck in 1663 the gold came from the Guinea Coast of Africa, and it was set at 44 ½ to a pound of silver in weight because it was thought that it would be a stable rate of exchange.

There were some adjustments to the price of gold until it was finally fixed in 1717 at the new ratio of £46. 14s. 6d. to the silver standard of £3. 2s.0d. This moved the guinea from £1 in silver to £1. 1s. 0d, or 21 shillings. The crude ratio was now 15.07 to 1; but allowing for the differences in fineness between the slightly purer sterling silver (92.5%) compared with Crown gold coinage at 22 carats (91.67%), the actual ratio was 15.21 to 1.

This rate of exchange was introduced during Isaac Newton’s tenure as Master of the Royal Mint from 1699. In 1696 he had been previously appointed Warden of the Royal Mint to improve the state of silver coinage, and he organised the Great Recoinage in 1696–9.

In setting the price of gold, Newton found that gold, having been fixed as high as 22s. in 1699, had been too expensive compared with its silver value in Europe, particularly Holland, Germany, the Baltic States, France and Italy. Not only did he recommend setting the gold guinea at 21s, but he also recommended the rate be kept under review for a possible change to 20s 6d. That review did not take place.

Trade between Britain and the Continent was increasing, and whatever the rate, merchants had a preference for gold over silver because it was more practical for large payments when they were made in specie, which was normal practice at the time. While Britain remained on a silver standard, for commercial purposes it had increasingly moved to gold, silver being relatively expensive at the rate set and therefore progressively driven from active circulation relative to inflows of gold. The problem was that neither Newton nor Parliament accepted there was more than one currency: silver was the money and gold just a commodity whose price was to be set.

Because silver was valued about 5% more relative to gold in the European countries mentioned in the penultimate paragraph above, silver flowed abroad despite the ban on the export of coinage, and conversely gold flowed into Britain. Furthermore, gold mining output from Brazil began to have an impact on Britain’s monetary system following Newton’s 1717 conversion, due to diplomatic and commercial ties between Britain and Portugal. The bulk of this Brazilian gold, estimated by Fay at about 23 million ounces between 1720–1750, ended up being shipped to London, helping it to become the European monetary centre, taking that mantle from Amsterdam.

We can conclude that it was a combination of Newton overpricing gold, thereby driving silver into Europe and gold into London, and the discovery of Brazilian gold that turned Britain onto a commercial gold standard, even though officially it remained on a silver monetary standard for ninety-nine years after Newton’s fixing. And finally, in 1816, gold was declared the sole standard measure of value, and no tender of silver coin was legal for transactions valued at over forty shillings. By 1821, Britain was on a gold standard in law as well as fact.

From 1601–1816 we learn that silver’s role as money gradually evolved towards a subsidiary role to gold. Gold was the money of merchants and goldsmiths. The latter acting as custodians of gold evolved into banks, so high finance was almost exclusively gold. But silver was always there as money, be it for lesser transactions. And if today’s state-issued unbacked fiat currencies disappear, silver is bound to have a monetary role again alongside gold, because having a lower value and greater abundance of supply it can be more widely circulated.

The current market position for silver

Since the price of gold began to increase from August 2018, silver has lagged, its moneyness broadly ignored. Figure 2 shows how this has been reflected in the gold/silver ratio.

On 19 March a ratio of 125 was the highest ever seen, marking the most extreme undervaluation for silver. Since then, the ratio has fallen rapidly to its current level of 97. For it to fall further a continuing advance in the gold price may be required, because in current financial markets higher gold prices would be associated with economic conditions and monetary policies heading to a substantial, if not catastrophic deterioration in the purchasing power of fiat currencies.

Additionally, traders manning bullion bank desks are generally finding their trading limits being reduced due to a combination of unfavourable trading conditions and pressure from their superiors limiting bank credit expansion generally. When the coronavirus paralysed China and was going to do the same to other nations, and the inflationary response became obvious, it led to a concerted bear raid by the bullion banks to balance their gold and silver positions on Comex before matters got even further beyond their control. The effect on silver’s open interest is shown in Figure 3.

Open interest was driven down to levels not seen for nearly seven years, after the silver price had fallen from a high of nearly $50 an ounce in 2011 to $18 in 2013, a price level only just now being reclaimed. From open interest’s height at 244,705 contracts on 24 February to its low at 181,830 on 4 May, contracts for 314,375,000 ounces of silver have been closed down, which compares with investment demand for the whole of last year estimated by the Silver Institute at 186,000,000 ounces. This contraction amounts to the synthetic equivalent of 20% of the Institute’s estimate of above-ground silver stocks.

Vaulted silver in LBMA vaults was 1,170 million ounces in February, the bulk of the 1.651 million recorded by the Silver Institute. The ownership of that silver is not declared but is likely to be a mixture of industrial users, investors (including ETFs) and bank dealers’ liquidity. In practice, banks keep liquidity at a minimum level consistent with the desk’s trading limits, and we know from developments in other derivative markets that trading limits are tending to contract.

Figure 4 shows the latest available data for the net position of swap dealers, effectively the bullion banks trading desks.

The last commitment of traders’ figures, for 26 May, shows a net short position of only 6,652 contracts; therefor swap dealers positions are almost level. This is a different situation from the gold futures contract where the swaps are currently short a net 182,864 contracts representing the equivalent of 569 tonnes worth $31 billion, almost a record and a major headache for the bullion banks.

In conclusion, having been left behind while monetary events have been focusing on the gold price, silver is now beginning to catch up. The spike to a gold/silver ratio of 125 appears to have marked a major turning point in the relationship, and silver can therefore be expected to continue to outperform gold as the fiat money situation deteriorates. Traders at the bullion banks appear to be avoiding short positions in silver futures, in which case a rising price will see them withdrawing liquidity instead of supplying additional contracts to the buyers.

The global economic and monetary situation is dire, due to both the coronavirus and because the credit cycle was already turning down in late-2019. The amount of monetary debasement deployed by central banks in an attempt to save their economies promises to be unprecedented to the point where total monetary destruction will be an increasingly likely outcome.

That being the case, the attraction of silver over gold is to be found in a substantial fall of the gold/silver ratio, as it dawns on markets that the end of fiat money is nigh.

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0744/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0688   /shanghai bourse CLOSED UP 6.97 POINTS OR 0.24%

HANG SANG CLOSED DOWN 6.36 POINTS OR 0.03%

 

2. Nikkei closed DOWN 314.37 POINTS OR 1.38%

 

 

 

 

3. Europe stocks OPENED MOSTLY GREEN/

 

 

 

USA dollar index UP TO 97.02/Euro FALLS TO 1.1271

3b Japan 10 year bond yield: RISES TO. +.05/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.44/ 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:: 39.15 and Brent: 42.27

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

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 -.29%/Italian 10 yr bond yield DOWN to 1.40% /SPAIN 10 YR BOND YIELD DOWN TO 0.55%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.69: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.39

3k Gold at $1691.90 silver at: 17.58   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 41/100 in roubles/dollar) 68.28

3m oil into the 39 dollar handle for WTI and 42 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 109.44 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 .9623 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0858 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.29%

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 0.91% early this morning. Thirty year rate at 1.69%

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

6.  TURKISH LIRA:  UP  TO 6.7864..

Global Stocks Rise, S&P Futures Above 3,200 As Melt-Up Continues

One day after a record surge in Nasdaq trading volumes on Friday, which was coupled with a record spike in call option activity as both retail and hedge fund investors rush into stocks, global stocks inched higher again on Monday, adding to a 42% surge from their March lows, as the unexpectedly strong US jobs report data fuelled hopes of a quicker global economic recovery from the coronavirus pandemic. Emini futures jumped in early trading overnight then drifted in a range between 3,185 and 3,210.

In stock-specific news, Bloomberg over the weekend reported that AstraZeneca approached Gilead regarding a potential merger which would mark the largest healthcare deal on record. However, sources via The Times downplayed the prospect of any AstraZeneca interest, stating that it has abandoned a tentative interest, while Wall Street analysts puked on the prospects of the deal. Gilead was 3.3% higher in pre-market.

The MSCI all-country world stocks index was 0.1% higher and just 7% away from a fresh record high, while the benchmark S&P 500 is within striking distance of turning positive for the year.

In Europe, a surge in travel and leisure stocks helped cap losses on the pan-regional index, which traded 0.2% lower after poor German and Chinese economic data. The Eurostoxx 50 was weighed down by tech and healthcare names while the FTSE MIB and IBEX bucked the trend, rising over 0.5% supported by banks and autos.

Europe’s fundamentals remain dismal with German industrial output slumping a record 17.9% in April and firms now expect a bumpy road ahead despite a massive stimulus package.

“European stocks are probably under pressure following weak China data overnight. However, we do not think this marks the end of the rally,” said Marija Vertimane, senior strategist at State Street Global Markets. “We are beginning to see evidence of economic data improving gradually and thankfully no major secondary spikes in infections. We expect that to encourage investors to come back to the market.”

Asia shares rose in a catch-up rally following Friday’s U.S. jobs data but were again capped by the Chinese data, published on Sunday, which showed exports contracted in May although an even bigger drop in imports resulted in a record trade surplus. All markets in the region were up, with Jakarta Composite gaining 2.5% and Singapore’s Straits Times Index rising 1.4%. Trading volume for MSCI Asia Pacific Index members was 25% above the monthly average for this time of the day. The Topix gained 1.1%, with Asahi Broadcasting Group and Gumi rising the most. The Shanghai Composite Index rose 0.2%, with Fujian Start Group and Changshu Fengfan Power Equipment posting the biggest advances.

In rates, the payrolls report pushed the 10-year Treasury yield as high as 0.959% on Friday, a level not seen since mid-March. It last stood just below 0.91%. The rise in U.S. yields has put more focus on the Fed which will hold a two-day policy meeting ending on Wednesday.

“Steepening of the U.S. Treasury curve reflects to a significant extent high (bond) supply versus QE (quantitative easing),” Nikolaos Panigirtzoglou, strategist at JPMorgan, said. “The Fed at $4-5 billion QE a day is not doing enough to offset supply. It would become more challenging for the Fed if the 10-year…yield approaches 1%.”

Pointing to the spread between U.S. two- and 10-year Treasury yields widening above 70 basis points to its highest since February 2018, Panigirtzoglou believes there is scope for Fed to introduce yield curve control measures.

In Europe, Bunds and peripheral spreads were quiet ahead of ECB President Lagarde’s appearance at a European Parliament hearing later Monday.

In FX, the dollar fell against a basket of its peers and headed for the longest losing streak since 2011. The broad improvement in sentiment weighed on the safe-haven Japanese yen, which stood at 109.5 to the dollar, near Friday’s 10-week low of 109.85. The pound continued its long rally against the dollar on hopes that the U.K.’s coronavirus lockdown restrictions will be lifted more quickly. Australian dollar climbed as iron ore futures surged above $100 a ton after Brazil’s Vale SA was ordered to suspend operations that account for about a 10th of its output after workers contracted Covid-19, boosting concerns surging cases will disrupt its output

In commodities, Brent crude initially climbed above $43 per barrel, but faded some gains after Saudi Arabia said an extra month of production cuts is voluntary and will be self-policed. Over the weekend, OPEC+ unanimously agreed to extend current cuts for one month through July and will review if a longer extension is needed this month, while Saudi and Russia emphasised they want stronger compliance from other nations and both Iraq and Nigeria agreed to slightly deeper cuts.  Saudi Arabia set July Arab light crude oil OSP to Asia at Oman/Dubai +USD 0.20 and to north-west Europe at ICE Brent + USD 0.30, while reports noted that the July pricing for all grades to Asia was higher by between USD 5.60-7.30 and the largest hike in prices in 2 decades.

Iron ore jumped after a Brazil mine hit with Covid-19 infections suspended operations.

There is nothing on the US economic calendar for Monday; Thor Industries and Coupa Software are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures up 0.5% to 3,202.75
  • STOXX Europe 600 down 0.4% to 373.69
  • MXAP up 0.7% to 159.96
  • MXAPJ up 0.4% to 515.34
  • Nikkei up 1.4% to 23,178.10
  • Topix up 1.1% to 1,630.72
  • Seng Index up 0.03% to 24,776.77
  • Shanghai Composite up 0.2% to 2,937.77
  • Sensex up 0.5% to 34,463.87
  • Australia S&P/ASX 200 up 0.1% to 5,998.72
  • Kospi up 0.1% to 2,184.29
  • German 10Y yield fell 0.2 bps to -0.279%
  • Euro up 0.1% to $1.1305
  • Italian 10Y yield fell 0.9 bps to 1.241%
  • Spanish 10Y yield rose 1.1 bps to 0.569%
  • Brent futures up 1% to $42.72/bbl
  • Gold spot up 0.6% to $1,695.49
  • U.S. Dollar Index down 0.1% to 96.84

Top Overnight News from Bloomberg

  • China’s trade surplus surged to a record in May as exports fell less than expected, helped by an increase in medical-related sales, and imports slumped along with commodity prices, data over the weekend showed
  • Car sales in China rose for the first time in almost a year last month, evidence that the world’s largest auto market is rebounding from the coronavirus crisis and the trade war with the U.S
  • Saudi Arabia increased prices for some crude exports by the most in at least two decades, doubling down on a strategy to bolster the oil market after OPEC+ producers extended historic output cuts over the weekend
  • New Zealand will remove social distancing requirements after reporting zero active cases of Covid-19, indicating it has achieved its aim of eliminating the virus
  • Qatar’s peg against the dollar has been the only one in the region that hasn’t come under pressure even as local economies succumb to what may be their worst recession ever. The nation’s bonds have also outperformed those of the other five members of the Gulf Cooperation Council this year

Asian equity markets began the week relatively upbeat as the region took its first opportunity to react to the strong US jobs data which firmly lifted all major indices on Wall St last Friday and the Nasdaq to a fresh all-time high, with mostly encouraging Chinese trade data and early strength in oil prices following the OPEC+ extension agreement, adding to the constructive risk tone. As such, Nikkei 225 (+1.4%) gapped above the 23k level but with some of the gains later reversed after Final Q1 GDP missed expectations despite showing a significant improvement from the preliminary release, and the KOSPI (+0.1%) outperformed shortly after the open before it briefly wiped out all its gains amid a cooling of inter-Korean relations, as well as weakness in index heavyweight Samsung Electronics as de facto chief and Samsung Group heir Jay Y. Lee attended a court hearing on the arrest warrant related to accounting fraud. Elsewhere, Hang Seng (U/C) and Shanghai Comp. (+0.2%) were kept afloat after the PBoC injected CNY 120bln of liquidity and announced to conduct an MLF operation in around a week’s time, while the latest trade figures from China over the weekend mostly topped estimates which included a record trade surplus in USD terms and a surprise expansion in CNY-denominated Exports. Finally, ASX 200 remained closed for the Queen’s Birthday Holiday and 10yr JGBs were higher despite the gains in stocks as prices reversed Friday’s selling pressure, in which the rebound in JGBs also followed the weaker than expected Japanese GDP data.

Top Asian News

  • New Zealand to End Social Distancing After Eliminating Covid-19
  • JD’s $4.1 Billion Hong Kong Listing Is Said to Be Oversubscribed
  • China’s Monthly Car Sales Rise for First Time in Almost a Year
  • Hong Kong’s Most Vocal Activist Investor Says He Has Cancer

European equities attempted to nurse earlier losses [Euro Stoxx 50 -0.5%] following on from firm APAC trade as the region had the first chance to react to the blockbuster US jobs data. Europe kicked the session off with broad losses of over 1%, but thereafter recouped amid a lack of fresh catalysts and with investors focusing on reopening economies alongside Central Bank support. Major bourses now see a more mixed performance, as is the case for broader sectors which started trade mostly in the red; stateside, futures remain modestly in positive territory. Energy remains the top gainer, but overall sectors do not reflect a clear risk tone. The sectoral breakdown sees banks and oil & gas topping the charts whilst financial services and IT. In terms of individual movers – the story in focus: AstraZeneca (-2.2%) reportedly approached Gilead (+3% pre-mkt) regarding a potential merger, which would mark the largest healthcare deal on record. However, sources via The Times downplayed the prospect of any AstraZeneca interest, stating that it has abandoned a tentative interest. Meanwhile, Intesa Sanpaolo (+3.4%) and UBI Banca (+4.1%) are higher after the ECB authorised the former’s takeover of the latter. Wirecard (-1.6%) opened lower by over 7% amid reports late-doors Friday that Munich prosecutors said Co’s premises have been searched as part of a market manipulation probe initiated by Bafin; prosecutors have opened a probe against the Co, including the whole management board. Co. said it is cooperating with authorities and reaffirmed guidance. Elsewhere, IAG (+7.8%) extend on gains after British Airways has threatened to dismiss all its 4.3k pilots and rehire them on individual contracts unless it can reach a new employment agreement with the Balpa union. Finally, Danske Bank (+8.9%) has extended on initial gains after the group agreed to sell its troublesome Estonian business in a EUR 312mln deal.

Top European News

  • German Industrial Slump Hits Bottom With Record Output Drop
  • Johnson Seeks Path to U.K. Revival as Poll Ratings Slip Away
  • Private Equity Comes Back With Bridgepoint Reviving Agro Deal
  • Airbus’s Global Footprint Becomes a Burden as Sector Shrinks

In FX, although risk sentiment has stalled somewhat after Friday’s unexpected rise in US employment, the Greenback remains shy of best levels amidst doubts about the validity and accuracy of the data due to misrepresentation or reporting irregularities. Hence, the DXY has not been able to maintain momentum or revisit post-NFP peaks just above the 97.000 level with the index meandering between 96.985-741 as attention turns to the FOMC and the prospect that the Fed may edge a bit closer to enhancing forward guidance via a more targeted approach yield control.

  • AUD/NZD/NOK – In contrast to the Buck, bullish impetus is keeping the Aussie, Kiwi and Norwegian Krona elevated as the former hovers a fraction below 0.7000 in holiday-thinned trade, but underpinned alongside the YUAN (Usd/Cnh and Usd/Cny either side of 7.0700) in wake of significantly wider than forecast Chinese trade surpluses forged on above consensus exports even though relations between the 2 countries continue to deteriorate. Note, Aud/Usd has essentially carved out a double top, while the Kiwi is building a firm base on the 0.6500 handle and Aud/Nzd is straddling 1.0700 ahead of NZ fully reopening from COVID-19 lockdown due to no further cases and an impending shift to Alert Level 1. Elsewhere, Eur/Nok has now breached 10.5000 and eyeing the 200 DMA beyond technical support at 10.4387 (March 2 high) against the backdrop of firmer oil prices on the back of OPEC+ reaching agreement to extend the reduced output pact by a further month to the end of July.
  • GBP/EUR/CAD – Sterling has also retained its upward trajectory and sights on the 1.2700 marker in terms of Cable following a retest of Friday’s circa 1.2730 peak as UK PM Johnson comes under pressure to press ahead with the next stages of lifting coronavirus restrictions, with Eur/Gbp pivoting 0.8900 even though the Euro is keeping tabs on 1.1300 against the US Dollar after last week’s impressive gains and despite more weaker than anticipated Eurozone macro releases in the form of German ip and Sentix sentiment. Meanwhile, the Loonie is gleaning more crude traction around 1.3400 in advance of Canadian housing starts and the aforementioned Fed policy meeting.
  • JPY/CHF – Both narrowly mixed vs the Greenback and relatively rangebound between 109.69-39 and 0.9639-13 parameters with the Yen noting downward tweaks to final Japanese Q1 GDP and Franc paring some declines against the Euro from sub-1.0900 irrespective of mixed weekly Swiss bank sight deposit balances.
  • EM – Regional currencies have largely picked up where they left off las week, with the oil and commodity focused Rub, Zar and Mxn all on the front foot as oil remains buoyant, but the Try underperforming as an importer.

In commodities, WTI and Brent futures hold onto modest gains amid the fallout from the OPEC+ meeting – which saw an extension of 9.6mln BPD cuts (barring Mexico’s 100k BPD) by an extra month to the end of July as anticipated. Focus meanwhile has now turned to compliance and how the heads of the group plan to enforce full/over-compliance – namely among the known laggards Iraq and Nigeria – who reaffirmed commitment to the pact over the weekend. On that front, Iraq has already hinted at possible problems regarding making up for its shortfall. In terms of over-compliance, Gulf OPEC producers (Saudi, UAE, Kuwait) are not planning to continue with their voluntary deeper oil cut of 1.18mln BPD beyond June, according to sources. Eyes will now be on the June 18th JMMC meeting where the committee will review secondary source data alongside current market fundamentals before proposing policy recommendations. Note: sources last week said that OPEC+ is to move cautiously to rebalance the market amid easing lockdowns, while possible Shale resumptions could also weigh on eastern producers’ minds. Thereafter, Saudi Aramco also released its July Official Selling Prices (OSPs) which showed steep increases for all crude grades to all regions. Furthermore, Libya’s El Sharara oilfield (300k BPD) has restarted output at 30k BPD and is expected to reach capacity within 90 days after 142 days of inactivity. Reports also note that the El Feel field (70k bpd) has restarted operations. Meanwhile, Cristobel made landfall over the weekend but has since weakened to a Tropical Storm as it moves further inland. Heavy Rainfall and storm surges continue along the gulf coast from Southeastern Louisiana eastward to the Florida Panhandle. It was reported that energy firms evacuated 195 Gulf of Mexico production platforms and 3 rigs ahead of Storm Cristobal on Sunday and that producers had cut 34% of offshore oil and 32% of nat gas output as of mid-Sunday. WTI July trades on either side of USD 40/bbl (vs high. 40.44/bbl) and Brent August dipped back below USD 43/bbl (vs. high 43.41/bbl). Spot gold trades on the firmer side of a USD 1678-97/oz range with little specific for the metal, whilst copper prices extend gains above USD 2.50/lb amid falls in stocks at exchange warehouses – falling to 139k tons which is the lowest since Jan 17th. Meanwhile, around 90% of the large Peruvian mines have received the green light at resuming operations following a pandemic-related disruption. Libya’s El Sharara oilfield (300k bpd) has restarted output and is expected to reach capacity within 90 days. Reports also note that the El Feel field (70k bpd) has restarted operations.

US Event Calendar

  • Nothing major scheduled

DB’s Jim Reid concludes the overnight wrap

As far as I can see the two most ruinous financial decisions you can make are either to short US equities or buy an old house. Fortunately I’ve never done the former but I’ve done the latter twice over the last decade and would have been better off setting aside a big pile of cash and burning it. A year after finishing renovations on our dream home the latest saga arrived at 2:30am on Saturday night when I get a poke in the ribs from my wife. “Wake up. Wake up! Something terrible has happened downstairs and we need to go and investigate”. I take this pretty badly having woken out of a deep sleep and dismiss her claims that there was a very loud bang as nothing more than her having a bad dream. I begrudgingly get my dressing gown on and trudge downstairs. Half way down the stairs, dust starts rising everywhere and as the fog got more intense we reached the downstairs hallway to find rubble and debris everywhere and half our ceiling collapsed onto the floor. My wife and I were both in shock, especially once we realised how heavy the fallen plaster was and how dangerous it could have been. When we renovated we had to unwillingly replace virtually all of the ceilings as they progressively fell down during the heavy works but not this one. I’ll find out early this week what this latest problem is going to cost us!!! However at least no one got hurt.

The week after payrolls is normally light on activity and to be honest it might take me a week to get over the shock of a collapsed ceiling and a week for all economists to work out how the data missed their payrolls forecasts on Friday by probably the biggest amount ever for an economic data release (more later). Having said that it’s likely to be quiet the market highlight is undoubtedly the Federal Reserve’s monetary policy decision on Wednesday. Elsewhere ECB President Lagarde appears today at a European Parliament Committee but don’t expect too much given the close timing to the ECB meeting last week. We also have another Eurogroup meeting on Thursday where the recovery fund will be the main interest, as well as the release of US CPI data for May on Wednesday.

For the Fed on Wednesday, our economists expect the meeting to mark a first step away from a complete focus on crisis prevention towards more traditional goals of providing accommodation to support the recovery. In particular, they expect the Fed to announce an open-ended QE program consistent with monthly Treasury purchases of between $65bn and $85bn. In addition, the meeting statement should slightly enhance the commitment to keep rates lower for longer. An updated SEP should reflect a cautious outlook where elevated unemployment and below-target inflation should result in the median dots signalling that officials expect to keep rates unchanged at least through end-2022. See here for their preview.

The meeting comes after a remarkable payrolls report on Friday. To recap, headline nonfarm payrolls rose by 2.509 million with private payrolls increasing by 3.094 million versus consensus of -7.5m and -6.75m respectively. In addition, the main U-3 unemployment rate fell by 1.4ppts to 13.3% versus 19% expected. While the BLS noted that the U-3 rate was likely boosted by ongoing classification issues, and should likely have been three percentage points higher, the U-6 unemployment rate also fell to 21.2%, down 1.6% from its April all-time high. Just as three sectors of the labour market (food service & accommodation, health care & social assistance and retail) accounted for 55% of the February to April decline in private payrolls, the same sectors comprised 64% of the May gain, recovering between 15.5% and 17.5% of their declines over the previous two months. Hiring though was broad-based, with the payroll diffusion index surging to 64.0%, its highest since December 2018 (64.9%). In our economists view, the unexpected bounce in employment may reflect rehiring ahead of planned re-openings within states that was not quite captured in the initial jobless claims data. In short, the May payroll figure was what they would have expected for June. Overall there’s little doubt that this was a very positive print but it will take time to work out whether this was more of a bringing forward of re-hirings or something more structural.

As we’ll see in the weekly recap at the end, the payrolls report helped drive another bumper day in equities (S&P +2.62%). Looking deeper at US equities, DB’s Binky Chadha, in a report late on Friday, suggested positioning is still as low as the 8th percentile for the US helped in part by new retail money coming into the market. He also argues that there is a cash mountain in money markets after $1.2 trillion went in since March with almost none moving out so far. This now amounts to $5 trillion (25% of GDP) and is still at financial crisis highs and any re-allocation away should be beneficial across risk assets. However positioning in the mega cap growth stocks (MCGs) we discussed at length last week now look stretched so there is still room for a catch-up for the rest where positioning is very light. See Binky’s full report here.

On a similar vein Craig in my team has looked more at the bifurcation in US HY credit. If we look at a bucket of what we perceive to be the most defensive BB sectors, making up 28% of the BB and single-B market (ex-financials), this group now has a cash price higher than what it was pre-covid. Spreads have also repriced to the point where they rank in the 61st percentile (100% equals tightest). The other segment of the market is simply the rest of the BB and single-B market. This bucket has a current cash price which is 5pts lower than it was pre-covid. The repricing in spreads is also less significant, with spreads now ranking in the 20th percentile. However, like the equity market, these less favoured names have started to ‘catch up’ to the BB defensive bucket in recent days. As investors continue to search for dislocations, assuming this move towards less favoured sectors continues, opportunities within this segment of the market are likely to be far greater. See Craig’s note here for more on this.

In terms of weekend news OPEC+ agreed to a one-month extension in its recent output cuts and suggested a stricter compliance approach to those who breech this. Oil is up around +1% so far this morning after six weeks of gains and another good week last week as we’ll see in the weekly recap below. Elsewhere, China’s trade surplus came in at record $62.9bn (vs. $41.4bn expected and $45.3bn in April) in May with exports sliding to -3.3% yoy in USD terms (vs. -6.5% yoy expected and +3.5% yoy last month) while imports tumbled to -16.7% yoy (vs. -7.9% yoy expected and -14.2% in April).

Nevertheless, markets in Asia have kicked off the week on the front foot with the Nikkei (+1.23%), Hang Seng (+0.17%), Shanghai Comp (+0.28%) and Kospi (+0.16%) all up. Futures on the S&P 500 are also up +0.24% as we type. Overnight, Japan’s final Q1 GDP came in at -0.6% qoq (vs. -0.5% qoq expected).

Looking back to last week now. Global equities continued to rally to new post-shutdown highs as economic data improved throughout the week, accentuated by the US payroll data on Friday, and further promised stimulus in Europe. Equities that lagged the most throughout the pandemic, such as retailers, cruises and airlines were some of the best performers on the week with hopes for a faster than expected economic recovery taking hold. The S&P 500 rose +4.91%, with the largest one-day gain coming on Friday after the jobs report (+2.62%). The index is now +42.75% off the March lows and is down just -5.68% from all-time highs and ‘only’ -1.14% YTD. Equity markets both in the US and Europe continued to see a rotation into value-oriented stocks with US banks up +17.11% (+4.86% Friday) on the week, while European Banks rose +20.18% (+7.55% Friday). The tech-focused NASDAQ underperformed the S&P for a second week in a row, up “just” +3.42% (+2.06% Friday). However, the index has outperformed throughout the crisis and on Friday closed just -0.03% below February’s all-time high having briefly traded above it in the session.

European equities rallied even further on the week as the ECB announced an increase to the size of their PEPP by a further €600bn, the German government agreed additional fiscal stimulus, and virus case counts remained contained even as economies are slowly reopened. The Stoxx 600 rallied +7.12% (+2.48% Friday) over the five days with the core continental ones up around +9-11% on the week. Asian indices rose alongside their European and American counterparts. The Nikkei was up +4.51% over the week (+0.74% Friday) while the CSI 300 was up +3.47% (+0.48% Friday), and the Kospi rose +7.50% (+1.43% Friday).

Oil rallied further on the week as demand expectations rose with economic data improving. Prices were also helped by hopes that OPEC+ would extend production cuts as has been confirmed over the weekend. WTI futures rose +11.44% (+5.72% Friday) to $39.55/barrel and Brent crude rose +19.73% on the week (+5.78% Friday) to over $40/barrel for the first time since the first week of March.

Credit spreads on both sides of the Atlantic tightened on the week with risk sentiment continuing to drastically improve. European HY cash spreads were -83bps tighter on the week (-30bps Friday), while European IG spreads tightened -35bps (-13bps Friday). US HY cash spreads were -121bps tighter (-33bps Friday), while IG tightened -25bps on the week (-10bps Friday).

Peripheral debt tightened as well, with Spanish 10yr yields -17.5bps tighter to German bunds over the 5 days, while Italian BTPs were -23.5bps tighter, Greek 10yr yields tightened -33.8bps, and Portuguese bonds tightened -13.6bps. With risk assets rallying, core sovereign bonds sold off as US 10yr Treasury yields rose +24.3bps (+7.2bps Friday) to finish at 0.895%, while 10yr Bund yields rose +17.0bps over the course of the week (+4.3bps Friday) to -0.28%.

Also on Friday, the EU’s chief Brexit negotiator, Michel Barnier, said that “the truth is that there was no substantial progress” following the latest round of talks with the UK on their future relationship after Brexit. He also said that a full legal text would need to be ready by the end of October given the time needed for ratification. Nevertheless, the pound strengthened further against other major currencies, reaching its highest level against the US dollar in nearly three months (+0.56% Friday and +2.63% on the week).

 

3A/ASIAN AFFAIRS

i)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED DOWN 6.97 POINTS OR 0.24%  //Hang Sang CLOSED UP 6.36 POINTS OR 0.03%   /The Nikkei closed UP 314.97 POINTS OR 1.38%//Australia’s all ordinaires CLOSED UP .07%

/Chinese yuan (ONSHORE) closed UP  at 7.0744 /Oil UP TO 39.15 dollars per barrel for WTI and 42.27 for Brent. Stocks in Europe OPENED MOSTLY GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0774 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0688 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC SPREAD  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

4/EUROPEAN AFFAIRS

Europe/China/USA: events of the day!

Michael Every…

Rabobank: “There Is A LOT Of Anger Out There, And The Post-War Architecture Is Clearly Collapsing”

Submitted by Michael Every of Rabobank

It was already going to be easier to have a “What is happening in markets” section and then a separate “What is happening in reality” in this Daily. Things are now complicated by the ‘reality’ no longer being the reality, as the US version of Goskomstat provides jobs data they admit are wrong (counting millions of unemployed as employed, and let’s not even start on how the business births/deaths model ‘works’ when everything is shut down). In short, Friday’s payrolls report was legendary. It was supposed to be down 7.5m and was actually up 2.5m, the largest and most significant ‘beat’ ever.

Goskomstat were wrong, as they say themselves. The economists’ forecasts were also wrong: does that surprise anybody? And the markets are wrong too. They seem to think Trump was right when, with no sense of irony, he almost sang “Keep on Rockin’ in the Free World” about the data. What we have is a not a V-shape but a reverse tick shape: down huge and up a little (and even less than shown). Yes, at least it’s not still down. Yes, some more jobs will come back as reopening begins. But many sectors won’t, and once government payroll support schemes end we will see just how ugly things really are. Oh, and Forbes today underlines that US-Europe air fares are about to double to cover the cost of a nearly empty plane.

Nonetheless, dollar down big, bonds down big, and equities up big: because bad news is good news for stocks and good news is also good news, apparently. On which note, when does the Fed have to do something about longer-dated yields? Because if the market keeps pricing in recovery like this then we aren’t going to have one: that’s the corner we have brilliantly been painted into over the past 40 years by our central banks. Moreover, market bullishness ignores word from Mitch McConnell that any further stimulus likely won’t now get past the Republicans in Congress. Friday saw the president talk about a payroll tax cut and a separate report saying the White House might introduce tax reforms to accelerate the on-shoring of US supply chains from China, with lower taxes floated in areas with higher minority representation and/or business ownership. Keep on Rockin’ in the Free Market, eh?

Meanwhile, back in the real world Chinese May trade data showed their exports -3.3% y/y and yet imports slumping 16.7% y/y: this shows both domestic weakness AND mercantilism that pushes us towards global trade war; and the US is threatening tariffs on the EU and China if they don’t buy more lobster. How emblematic of our times: “Eat more luxury food now – or else!”

Trump is already to remove 10,000 troops from Germany (and the same number of National Guard from Washington DC) as a shot across the bows of peacenik Angela Merkel. Poland will get some of them, and many others could just leave Europe – if this goes through. Not to worry: the EU are ready, willing, and able to fill that gap in vital national security in increasingly uncertain times. Just let them sort out the budget and the economy and the banking system and Brexit and North/South and East/West splits and then build up their own defence industries up first, please, cruel world.

China is meanwhile threatening Australia by saying no more tourists or students should go there (though with the borders shut it is all talk for now); threatening the UK with walking away from building its nuclear power stations if Boris drops Huawei (“Please do!” say the British press); and there are whispers from Beijing of threats that Hong Kongers who claim a British National Overseas passport and then become UK citizens would directly lose Chinese citizenship and right of abode in Hong Kong.

Linking Hong Kong and the US/West are major street protests. There were social-media reports of “Mazel Tov cocktails” being thrown at police in the US over the weekend: I don’t think that happened. Yet in sharp contrast to Hong Kong, the US has already seen a major street in DC renamed “Black Lives Matter Plaza”; New York and LA have sharply reduced their municipal police budgets and raised community funding; and Minneapolis, where the George Floyd protest started, has voted to defund the police department entirely and move towards community-based schemes. Meanwhile, in the UK police allowed protestors to topple a statue of a former slaver (and local philanthropist) in scenes similar to Baghdad when Saddam’s statue fell. Indeed, the British government, which has seen its support drop by 20 percentage points over its poor virus handling, is trying to signal that it supports the protestors in spirit. In the US, Trump is clearly going for a more Nixon-style ‘Law and Order’ approach in 2020, which will at least will leave voters a clear choice.

Removing police departments in one of the world’s most heavily-policed (and violent) societies and tearing down public statues in a traditionally conservative country – those are radical overnight changes.

Finally, Brazil has decided to stop reporting Coronavirus death data; one could say markets are doing the same.

Keep on Rockin’ in the Free World.

end

*Germans fear the ECB is following the Weimar Reichsbank into an inflation trap

Lagarde’s largesse is stoking tensions with Germany that could rip the euro apart

Christine Lagarde is taking a big economic risk by doubling down on stimulus when the eurozone money supply is already exploding at rates unseen since the launch of the euro. She is taking an even bigger political risk in doing so after Germany’s top court ruled that the European Central Bank abused its power in earlier bond purchases, straying from monetary management into broad economic policymaking without a treaty mandate.

Radical monetary policies are disturbing long- established relationships within German society, whatever the theoretical justification – less scientific than Frankfurt pretends.

“The ECB has no legal or democratic mandate for what it is doing, and it is giving the false impression that there is a free lunch,” said Thomas Mayer, Deutsche Bank’s ex-chief economist. “We are heading for a constitutional crisis in the European Union and there are no means for diffusing it. The euro is simply not viable and the next couple of years are going to determine whether it all breaks apart. The markets don’t understand what is happening,” he said….

https://www.telegraph.co.uk/business/2020/06/07/germans -fear-ecb-following-weima
r-reichsbank-inflation- trap2/? WT.mc_id=tmgliveapp_iosshare_Avb5VbB0Tyb8

-END-

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

 

 

Hopes Of ‘V-Shaped’ Recovery Sink As World Trade Refuses To Rebound

The COVID-19 pandemic and ensuing lockdowns across the world have led to a recession, if not depression, unseen since the 1930s. It has resulted in unprecedented job loss and economic declines in both developed and emerging economies.

Central bankers have spent the last several months flooding global markets with liquidity, lowering rates to the zero lower bound, and unleashing massive bond-buying programs, a bid to arrest declines in asset prices. No matter what the Neel Kashkaris of the central banking world do — their attempts to flood markets with liquidity will likely fail to engineer a V-shaped recovery in world trade (though they have certainly engineered a V-shaped recovery in stocks).

Research firm Inchcape Shipping Services is reporting just that, as the path to recovery for world trade will not resemble a classic “V” and be much slower than previously thought.

Inchcape’s chief commercial officer Christopher Crookall told Bloomberg:

 “There’s going to be a much slower recovery than has previously been envisaged because demand won’t rebound instantly,” said Crookall.

Crookall said the supply-side story in Asia has yet to be revived because the demand story in Europe and North America is offline. Without Western demand, reviving Asian factories will not be possible; thus, world trade won’t rebound.

Inchcape’s most optimistic 2020 scenario for business activity in the global economy (a proxy for physical world trade) is one that will drop 10% YoY.

Another shipping firm, Arrow Shipbroking, said overall trade volumes would plunge by 10-12% YoY, in line with what Inchcape’s estimate says.

Burak Cetinok, head of research at Arrow Shipbroking, said container shipping has plunged due to waning consumer demand in the West. He said dry cargo and tankers had been less affected because those vessels were used as floating storage.

“It seems that the worst is behind us with improvement in Asian demand and the western world slowly coming back to life,” said Cetinok, adding that collapsed consumer demand for energy products has left markets oversupplied.

He said with high unemployment in Western countries, demand for products, many of which are made in Asia, will be much less and result in depressed trade flows.

As for an actual shipper, A.P. Moller-Maersk A/S, the world’s largest container line, warned last month that world trade would continue to falter with volumes declining by at least a quarter in 2Q20.

Maersk dashed all hope that a V-shaped recovery will be seen in the back half of the year, instead suggesting a U-shaped recovery is more plausible.

The World Trade Organization (WTO) published its Goods Trade Barometer in late May, which suggested a sharp contraction in world trade will extend through 2Q.

BofA’s latest Fund Manager Survey, which polled 223 participants with $651 billion in AUM, showed the vast majority of financial professionals remain incredibly bearish on the global economy. Respondents do not expect global manufacturing PMI to rise back above 50 until 4Q20.

It could take several years or more for global GDP to recover back to 2019 levels.

Baltic Dry Index provides a glimpse into the status of world trade — so far, world trade is stagnate — though equity markets are soaring as if there was a recovery.

Bonds are not buying the phony V-shaped recovery narrative of an economic rebound.

Investing legend Stan Druckenmiller called the V-shaped recovery a fantasy during his latest webcast.

END
This is very important: Dr Yealy, chair of emergency medicine at the University of Pittsburgh Medical Centre has noted that the COVID 19 has become much less prevalent and virulent.
I promised you that this would happen.  The virus is man made but according to Nobel Prize Winner (2008 Luc Montagnier) man made viruses are not stable and will revert to its natural state  .ie. the common cold.

COVID-19 Has Become “Less Prevalent” And “Isn’t Making People As Sick”, UPMC Doctor Says

As if the world needed another reason to be bullish after Friday’s jobs number surprise, one doctor from University of Pittsburgh Medical Center is doing his best to keep the rally going.

Dr. Donald Yealy, the chair of emergency medicine at UPMC, says that fewer people are testing positive for the virus and those who test positive don’t seem to be getting as sick. 

“All signs that we have available right now show that this virus is less prevalent than it was weeks ago,” he said, according to PennLive.  “Among people who test positive, the total amount of the virus the patient has is much less than in the earlier stages of the pandemic.”

He also said the proportion of those needing a ventilator has fallen. “We see all of this as evidence that COVID-19 cases are less severe than when this first started,” the doctor said.

The doctor’s sample set includes western and central Pennsylvania and other communities in New York and Maryland served by UPMC. 4% of UPMC’s 30,000 coronavirus tests it has conducted have come back positive, he said. He also said UPMC has tested about 8,000 people who had no symptoms at all, of which about 20 tested positive. 

“Your risk of getting into a car accident if you go back and forth across the turnpike in Pennsylvania is greater than your risk of being positive for asymptomatic COVID-19 infection. This should give you some reassurance that the risk of catching COVID-19 … from someone who doesn’t even know they have the infection, in our communities, is very small.”

The doctor attributes the fall in prevalence to the weather, potential genetic changes, better medical decisions and people minding their hygiene better. 

END

Researchers Uncover Which Blood Type Is Most Resistant To COVID-19… And Another Malaria Link

Genetic testing firm 23andMe have discovered that Type-O blood is particularly resistant to SARS-CoV-2, the virus that causes Covid-19.

In a Monday statement, the company said that preliminary results from over 750,000 participants have revealed  clues as to why some people experience little to no symptoms from coronavirus, while others become gravely ill, according to Bloomberg.

Many other groups, including 23andMe competitor Ancestry Inc., are combing the genome to help make sense of the virus. It is known that factors such as age and underlying health conditions can determine how people fare once they’ve contracted Covid-19. But those factors alone don’t explain the wide diversity of symptoms, or why some people contract the disease and others don’t. Studying the genetics of the people who are more susceptible to SARS-CoV-2 could help identify and protect those more at risk, as well as help speed treatment and drug development. –Bloomberg

Perhaps most interesting is that Type-O blood is also associated with a 66% reduction in the odds of developing severe malaria compared to the non-O blood types, according to a 2007 study.

This might explain why Hydroxychloroquine and other anti-malarial drugs have shown efficacy in treating COVID-19

Last week, peer reviewed research which analyzed the genes of more than 1,600 coronavirus patients in Italy and Spain who experienced respiratory failure suggested that blood type may play a role in the severity of the disease. The found that patients with Type-A blood were linked to a 50% increase in the likelihood they would require a ventilator. The results were similar to an earlier Chinese study regarding susceptibility to COVID-19.

There have also been some reports of links between Covid-19, blood clotting, and cardiovascular disease,” said lead researcher on the 23andMe study, Adam Auton. “These reports provided some hints about which genes might be relevant.”

The 23andMe study, which looked at susceptibility rather than severity of illness, included 10,000 participants who told the company they had Covid-19.

The research found that individuals with type O blood are between 9% and 18% less likely than individuals with other blood types to have tested positive for the virus. However, there was little difference in susceptibility among other blood types, the study found. When the researchers adjusted the data to account for factors like age and pre-existing illnesses, as well as when it restricted the data to only those with high-probability of exposure like health-care workers, the findings were the same. –Bloomberg

Auton say that while the results are promising, larger studies are required.

“It’s early days; even with these sample sizes, it might not be enough to find genetic associations,” he said. “We’re not the only group looking at this, and ultimately the scientific community may need to pool their resources to really address questions surrounding the links between genetics and Covid-19.”

end
CANADA

After Saying “Stay Home, Save Lives” And Shutting Parliament, Trudeau Attends Packed Protest Without Social-Distancing

Via SpencerFernando.com,

What a joke…

Thousands of people died alone.

Millions of Canadians lost their jobs. 

Countless business are gone forever.

  • We were told this was all worth it.
  • We were told, “stay home, save lives.”
  • We were told to avoid funerals for our loved ones.
  • We were told we would be fined and punished if we didn’t.
  • We are told it was too dangerous for politicians to show up in Parliament in large numbers.
  • We were told anyone who went out and gathered was “killing the elderly.”

All of this, we were told, was for “our own good.”

And now, we see this:

Charlie Pinkerton@CharliePinkerto

Prime Minister Justin Trudeau and several members of his cabinet have arrived at the protests.

There are chants of ‘Stand Up to Trump’ and ‘Black Lives Matter’ as they listen to a speaker.

View image on Twitter

Justin Trudeau, standing in a crowd full of people, packed in next to each other, with no social distancing whatsoever.

Turns out, “stay home, save lives” only applied to some.

It only applied to people the government didn’t like, or causes they didn’t approve of.

Apparently, the ‘science’ has changed yet again.

This is a disgrace.

How the hell can anyone be expected to believe the politicians and the ‘experts’ ever again, when we see the depth of their hypocrisy, lies, and double-standards?

Think of all the people who died alone, all the sadness and the loss and the inability to mourn, only for their family members to see Trudeau violating all the ironclad rules.

Disgusting.

END

CORONAVIRUS UPDATE/MONDAY

“Today Is A New Day” – NYC Begins Lifting Lockdown, New Zealand Declared “Coronavirus Free”: Live Updates

Following nearly 2 weeks of peaceful protests pockmarked by violence and looting – killings and shootings skyrocketed across NYC last week as the summer ‘killing season’ begins – America’s biggest “hot zone” kicked off “Phase 1” of its plan to reopen its economy on Monday, exactly 100 days after the first case of the virus was confirmed.

Since the outbreak began, more than 205,000 New Yorkers who have tested positive for the virus, while another 22,000 succumbed to the virus.

Exactly 100 days since its first case of coronavirus was confirmed, New York City, which weathered extensive hardship as an epicenter of the worldwide outbreak, is set to take the first tentative steps toward reopening its doors on Monday.

According to the NYT, as many as 400,000 workers will return to construction jobs, manufacturing sites and retail stores in the city’s first phase of reopening as the number of COVID-19 deaths recorded across the US continues to fall, with fewer than 1,000 deaths reported each day (remember when the NYT claimed that deaths would be north of 3,000/day by June 1?).

It’s a far cry from the ‘peak’ of the outbreak, when 800 NYC residents were dying from the virus every day.

The city ran more than 60k tests a day over the weekend, Gov Cuomo claimed.

Andrew Cuomo

@NYGovCuomo

Tomorrow is a new day. NYC reopens.

View image on Twitter

Andrew Cuomo

@NYGovCuomo

NYC enters Phase 1 of reopening tomorrow.

New Yorkers bent the curve by being smart.

Let’s keep being smart.

That is low enough for New York City’s corps of contract tracers, who began work last week, to try to track every close interaction and, officials hope, stop a resurgence of the virus.

“You want to talk about a turnaround — this one, my friends, is going to go in the history books,” Gov. Andrew M. Cuomo said on Saturday.

Of course, it could be months before office workers return en masse, as the world waits to see how the city’s public transit will handle social distancing concerns. And for many retailers in the city, the conditions in ‘Phase 1’ are still too restrictive. Simply reopening doesn’t mean customers will return, and curbside pickup doesn’t make a lot of sense for many retailers either, according to the NYT. Business groups in the city say many retailers are waiting for the next phase to venture out, when outdoor dining is allowed, office workers are permitted to return and shoppers are allowed to take their time and browse. The earliest these shops might be able to reopen would be later this month.

Some employers have developed new technological solutions to this problem. When more than 100 workers return to Newlab, a “technology hub” in the Brooklyn Navy Yard, they will be offered a device that buzzes whenever they get too close to another worker. The essential workers that have remained in the office this entire time have already been wearing the devices.

The city’s army of thousands of contact tracers officially started their work last week, and will continue aiding in efforts to quash a rebound in infections. Meanwhile, city officials will be closely monitoring a suite of metrics, from emergency room admission data to new case numbers, for signs of a potentially crippling resurgence.

On the other side of the world, New Zealand lifted all social and economic restrictions except for its border controls on Monday after declaring that the small island nation is “coronavirus free”, making it one of the first nations to return to normalcy after the outbreak. Prime Minister Jacinda Ardern said she “danced for joy”. Restaurants, retailers, transit and virtually everywhere else reopened without mandatory social distancing. It has been 17 days since the country recorded a new case of the virus.

“While the job is not done, there is no denying this is a milestone … Thank you, New Zealand,” Prime Minister Jacinda Ardern told a news conference, saying she had danced for joy at the news.

“We are confident we have eliminated transmission of the virus in New Zealand for now, but elimination is not a point in time, it is a sustained effort.”

Globally, the total case count topped 7 million late last night, while the number of deaths passed 400k over the weekend, as Brazil, Mexico, Russia and possibly India struggle to bring the outbreak to heel. In the US, the number of confirmed cases have surpassed 1.9 million, and the 2 million mark draws ever-nearer, with ~1.94 million as of Monday morning. At the current rate of ~20k cases a day, the US is on track to pass its next grim pandemic milestone by Thursday.

END

7. OIL ISSUES

Saudi Aramco boosts oil export prices as OPEC agree to a continuation of a cut in production.  The problem now is that the uSA can now restart their rigs again and produce and thus we wil get our glut back again.

(zerohedge)

Saudi Aramco Boosts Oil Export Prices By Most On Record

One month after Saudi Aramco unexpectedly hiked prices to Asian buyers as OPEC+ started cutting output after a historic price discount that was triggered by the brief price war between Russia and Saudi Arabia (which culminated with the prompt WTI contract plunging to a record low -$40 on April 20), on Sunday the Saudis made a complete reversal to their  price-cutting strategy, when they unveiled the biggest increases in the price for its crude exports in at least two decades, doubling down on plans to bolster the oil rally oil a day after OPEC+ producers extended historic output cuts.

As Bloomberg reported with China’s demand for crude once again rising, the Saudis are furiously raising prices in a world where supply has suddenly emerged as the price bottleneck. As a result, Aramco raised the price of Arab Light to Asia by $6.10 a barrel to a premium of 20 cents over the benchmark. This monthly increase in the official selling price (OSP) for flagship Arab Light crude to Asia, which accounts for more than half of Saudi oil sales, was the largest since records began in 2000.

Overall, Aramco raised July pricing for all grades to Asia by between $5.60 and $7.30 a barrel, well above the expected increase of about $4 a barrel. Buyers of Saudi oil in the U.S., the Mediterranean region and Northwest Europe will also pay more for oil.

The price hike came one day after OPEC+ chose on Saturday to extend production limits by one more month at almost the same level in order to further reduce the glut of global oil inventories, instead of tapering output cuts as previously planned at the end of June. As Bloomberg notes, Aramco, which typically announces pricing on the fifth day of each month, had delayed its July numbers until after OPEC+ members made their decision.

 

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman

At the start of March, Saudi Arabia unleashed a brief but crushing price war when it slashed official selling prices by the most in three decades after failing to reach an agreement with Russia to extend production cuts in the face of the pandemic’s destruction of oil demand. Eventually both Russia and the rest of OPEC+ fell in line, and agreed to trim production by up to 23% (even though subsequently it emerged that Angola, Iraq, Kazakhstan and Nigeria had been cheating on the deal), resulting in the biggest output curbs in history as nearly 10 million barrels a day was taken off the market, while US shale production plunged by roughly 2 million barrels daily as low prices drove producers to shut wells.

All of this helped boost oil prices in May, and in light of the positive outcome on oil prices, on Saturday OPEC+ decided to extend those limits through July. Brent crude, while still down 36% this year, has clawed back much of its losses and ended trading on Friday at more than $40 a barrel for the first time since March.

And while the rapidly rising oil price will mean that any gas price deflation will be quickly reversed, President Trump hailed the OPEC+ producers’ deal as helping to save the American energy industry, particularly shale oil drillers hard-pressed by the earlier collapse in prices.

The problem for OPEC+ is that after the February/March supply glut turned into a shortage as demand rebounded, the biggest risk for oil prices is back, with the WSJ reporting that as oil prices continue to rise, American oil producers are reopening the spigots, and companies including Parsley Energy and WPX Energy are starting to turn some of those wells back on, even as they continue to put off most new drilling. The result will be a surge in new output which will reverse the benefit from the OPEC+ output cuts, and once again shift the equilibrium in the global oil market to one of oversupply.

end

Turkey continues to be aggressive in its fight for Mediterranean gas (and oil discoveries). In the end Turkey must deal with Israel who will not allow this aggession

(Alic/OilPrice.com)

Mediterranean Oil Tensions Are Boiling Over

Authored by Anes Alic via OilPrice.com,

Under pressure in Libya – where it’s gone head-to-head with General Haftar in an ongoing battle to decide who gets to ultimately control the country’s oil revenues – and floundering in Syria, Turkey is once again upping the ante in the Mediterranean, this time preparing to issue new oil and gas exploration licenses in direct confrontation with the European Union.

It’s not just about Cyprus, anymore. Turkey’s state-run oil and gas company has been given licenses from the Turkish government to explore for oil and gas in 24 locations in the East Mediterranean. Seven of those locations are just off the coast of key Greek islands.

It’s a direct provocation that has Greece infuriated, and experts are worried that this could lead to direct clashes once Turkey starts exploration drilling. 

Last weekend, Turkey released a draft plan for Turkish Petroleum’s exploration license.

Source: Resmigazete.gov.tr

On Monday, Greek Foreign Minister Nikos Dendias said in a statement that the country “stands ready to deal with this provocation should Turkey decide to implement this decision”.

The draft plan explicitly violates Greek sovereignty, and it is designed to take advantage of a new maritime boundary agreement Erdogan wrangled last year with the Government of National Accord (GNA) in Libya. This was the trade-off for Libya’s aid in fighting back General Haftar in his push to take the Libyan capital, Tripoli.

The maritime boundary is meant to perform a pincer movement against Cyprus, which is drilling offshore in its EEZ where Turkey has also provocatively deployed drillships. In the Greek Cypriot EEZ alone, there are an estimated 120 billion cubic meters of natural gas, for which drilling began in 2011. The first license here was granted in 2008 to American Noble Energy (the same company behind the massive Israeli discoveries).

Erdogan’s desperation is born out of the fact that Turkey is being squeezed out of a role in the oil and gas riches of the Mediterranean, which is arguably the world’s next biggest, untapped oil and gas hotspot.

This brewing confrontation took root most noticeably in 2010/2011 when Israel made a massive discovery of gas offshore in the Levantine Basin, with the Leviathan and Tamar fields, both of which are now pumping and exporting and threatening to shift the balance of power from Turkey all the way to Egypt and everywhere in between.

His latest move to issue more exploration licenses, even encroaching on Greek maritime territory, comes after Israel, Greece and Cyprus signed an agreement to build an underwater pipeline to carry Israeli gas to Europe, cutting out Turkey altogether.

This $7-billion underwater pipeline would run for some 2,200 kilometers to Italy, running by the coast of Cyprus and the Greek island of Crete and through the Egyptian maritime zone and the Libyan maritime zone.

This latter is where Turkey has inserted itself.

Prior to this maritime deal, Turkey, Libya, and Greek Cyprus had agreements with Lebanon and Egypt in terms of oil and gas exploration. But the new demarcation scoops up 39,000 square kilometers of EEZ held by Greece.

Source: Middleasteye.net

Turkey will find itself (as usual) rather alone in this fight with the exception of Russia which finds its own designs aligning with Turkey because this Israeli gas would undermine Russian gas in Europe. But Turkey is a fickle (at best) ally.

Erdogan will want to use this leverage to force the pipeline coalition to include a Trans Anatolian tie-in for passing through the newly demarcated maritime zone between Libya and Turkey. His new licensing of exploration for Turkish Petroleum in Greece’s maritime zone is intended to send a specific message: Cut me in or I will make trouble, both offshore Greece and offshore Cyprus.

Erdogan, and his desire to restore Turkey’s Ottoman Empire prowess, is making a play for leverage in order to be a part of this new energy equation.

It won’t be easy, but Erdogan is counting on a lack of effective response from the European Union, as well as from the UAE and Egypt–all of which issued a joint statement last month condemning the maritime territorial grab. Erdogan’s response was to call the country signatories an “alliance of evil”.

Tensions are expected to gain further momentum later this month, when the leaders of the pipeline coalition countries are due to meet in Israel, with Greece and Cyprus attending separately.

But in the meantime, much like Iran succeeds in provoking the United States without much of a response, Erdogan will continue to push EU buttons and get a slap on the wrist in return. EU Foreign Affairs Minister Josep Borrell has said that the bloc has sent a “strong message” to Turkey, but other than being “in close contact” with colleagues in Cyprus and Greece, and kindly calling on Turkey to “stop drilling in areas where there is an EEZ or territorial waters of Cyprus and Greece”, the claws aren’t out and the teeth aren’t bared and Athens and Nicosia are likely wondering if they’re going to have to get physical on their own.

END

It sure looks like the rally on oil has run out of steam with hedge fund buying fading

(zerohedge)

Oil Rally “Running Out Of Steam” As Hedge Fund Buying Fades  

WTI July crude futures hit a wall of resistance around the 40-handle on Monday morning as the Organization of Petroleum Exporting Countries (OPEC) and its allies agreed on Saturday to extend historic output cuts for one month. The 23-nation group known as OPEC+ extended production cuts of 9.7 million bpd through July 31.

Goldman’s comments this morning also sparked an immediate selling effort.

Optimisms of production cuts, China increasing crude imports, and the global economy troughing have resulted in a doubling of price in about 1.5 months.

An epic rally in crude futures in such a short period, absent of a meaningful V-shaped recovery in world trade flows and or crude demand, suggests a pullback in prices could be ahead as fundamentals must catch up to the price.

Reuters’ John Kemp says hedge funds have started “to temper their bullishness towards oil after crude futures prices have doubled since late April.”

Kemp says hedge funds and money managers purchased 6 million barrels in the six major petroleum futures and options contracts in the week to June 2. He said portfolio managers bought crude derivatives in nine out of the last ten weeks, as their bullishness increased to a total of 324 million barrels since late March.

He points out that in the last week, hedge funds placed their smallest bullish bet on crude in the previous nine weeks, suggesting the crude rally could be on shaky grounds.

Position changes were mostly insignificant with purchases of NYMEX and ICE WTI (+7 million barrels) and European gasoil (+8 million) but sales of Brent (-2 million) and U.S. gasoline (-8 million) and no change in U.S. diesel.

But there were some tentative indicators the rally in crude prices may be running out of steam, while funds try to anticipate an improvement in the relative price of distillates, where margins have become uneconomic:

Portfolio managers added new short positions in petroleum last week and their ratio of bullish longs to bearish shorts dipped for the first time since the end of March.

 

Fund buying in WTI was some of the smallest since portfolio managers started to accumulate positions in U.S. crude in March. Funds were net sellers of Brent for only the second time in nine weeks.

Funds have been net buyers of European gasoil for three weeks running, and last week’s purchases were the largest yet, indicating traders are trying to position themselves ahead of an anticipated improvement in distillate margins.

None of these is a strong signal and there is a big risk of over-interpreting them. But taken together they suggest a possible pause or even a future reversal in fund buying.

Benchmark Brent futures prices have already more than doubled over the last seven weeks, to more than $40 per barrel from just over $20 in late April, increasing the probability of short-term profit-taking and a pull back.

At the same time, the refining margin for making gasoil from Brent has halved from $10 to $5 per barrel, and is down from $17 at the start of the year, which suggests distillates will eventually outperform. – Kemp 

As hedge funds start to pare down bullish bets on crude, Goldman Sachs is also getting bearish on oil as it believes a tactical “pullback in prices in coming weeks with our short-term forecast of $35/bbl vs. Brent spot prices of $43/bbl.”

The oil market only moved into deficit late May and still faces the daunting challenge of normalizing a billion barrels of excess inventories. Yet, the oil relief rally remains unfazed, with prices doubling and exceeding our year-end price target just six weeks after the likely cycles lows.

This rebound has been fueled by a macro risk-on backdrop and a policy induced Chinese crude import binge yet fundamentals are turning bearish: demand expectations are running ahead of a more gradual and still highly uncertain recovery, shale and Libyan shut-in production are coming back online, and prices are at levels where OPEC supply cuts should ease and Chinese purchases slow.

With OPEC’s latest cut already more than priced in, we now forecast a pull-back in prices in coming weeks with our short-term Brent forecast of $35/bbl vs. spot prices of $43/bbl. Just as strengthening physical oil prices led us to turn constructive on the oil market on May 1, very poor refining margins and the recent sharp decline in US crude bases now comfort us in our sequentially bearish outlook…. – Goldman’s energy analyst Damien Courvalin. Read the rest of Courvalin’s note here.

With crude futures sputtering out at the moment — this could also suggest S&P500 futures are due for a pullback as well.

 

8 EMERGING MARKET ISSUES

BRAZIL/THE GLOBE/SUNDAY/CORONAVIRUS UPDATE///

Brazil Hides Data Showing Soaring COVID-19 Fatalities As Global Death Toll Tops 400k: Live Updates

Globally, the number of confirmed coronavirus deaths surged pass the 400k mark on Sunday, while the number of confirmed cases draws ever-nearer to 7 million.

In the UK, Health Secretary Matt Hancock told Sky News that attending protests, even with a mask, is “undoubtedly a risk,” echoing comments from Dr. Fauci made during an interview with CNBC on Friday.

“The virus itself doesn’t discriminate and gathering in large groups is temporarily against the rules precisely because it increases the risk of the spread of this virus,” Hancock said.

Meanwhile, the WHO has changed its position on face masks, and is now encouraging people to wear them in crowded places, citing more anecdotal evidence claiming they help stop viral spread.

As BoJo struggles to reopen the British economy as cases and deaths remain stubbornly high, Scotland recorded no new deaths of COVID-19 patients in the past 24 hours, while Northern Ireland’s health department also said it had no new deaths to report.

“I would offer a note of caution about reading too much into today’s figure. We know that fewer deaths tend to be registered at the weekend,” Freeman said at a news conference.

“It is still very likely that further COVID deaths will be reported in the days ahead.”

Pope Francis warned Italians to not let their guard down against the virus and urged them to continue following government edicts on social distancing and wearing masks.

With its outbreak spinning further out of control – thanks largely to Mexico and Brazil, Latin America is reported far more new cases and deaths per day than the US – Brazilian President Jair Bolsonaro has made the controversial decision to pull months of publicly available data on coronavirus cases and deaths in the country, a transparent attempt to try and hide the extent of a crisis that the president blithely refused to confront, allowing tens of thousands of Brazilians to die for lack of health-care resources in remote areas, according to Reuters.

Brazil’s Health Ministry removed the data from a website that had documented the epidemic over time and by state and municipality. The ministry also stopped giving a total count of confirmed cases, which have shot past 672,000 – more than anywhere outside the United States – or a total death toll, which passed Italy this week, nearing 36,000 by Saturday.

“The cumulative data…does not reflect the moment the country is in,” Bolsonaro said on Twitter, citing a note from the ministry. “Other actions are underway to improve the reporting of cases and confirmation of diagnoses.”

Bolsonaro has played down the dangers of the pandemic, replaced medical experts in the Health Ministry with military officials and argued against state lockdowns to fight the virus, hobbling the country’s public health response.

Roughly 30% of the global total of cases are in the US, but Latin America is rapidly catching up, with more than 15% as of Sunday. Some 6.9 million infections have been confirmed worldwide.

As cases continue to spike in India despite another extension of what has been an at times suffocating lockdown, the city of New Delhi ordered many of its hospital beds to be reserved solely for COVID patients.

India on Sunday registered 9,971 new coronavirus cases, bringing the tally to 246,628 cases, with 6,929 deaths. Its numbers now lag only the US, Brazil, Russia, United Kingdom and Spain.

New Delhi city alone has registered more than 10% of total cases, making it the third worst-affected part of the country after the western state of Maharashtra, home to financial capital Mumbai, and southern Tamil Nadu state.

The number of coronavirus cases in Saudi Arabia exceeded 100,000, following a rise in new infections over the past ten days. The ministry of health reported 3,045 new cases, taking the total to 101,914, with 712 deaths.

Russia reported 8,984 new cases of the novel coronavirus in the last 24 hours, raising its total infections to 467,673. Officials reported 134 new deaths during the same period, bringing the official nationwide death toll to 5,859.

Meanwhile, in Beijing, China’s health ministry denied an AP report claiming that Beijing dragged its feet on sharing data on the infection with the WHO, refusing cooperation that could have potentially accelerated the global response.

END

 

 

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

Euro/USA 1.1271 DOWN .0007 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 /MOSTLY GREEN

 

 

USA/JAPAN YEN 109.44 DOWN 0.013 (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 1.2692   DOWN   0.0014  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3416 UP .0013 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  MONDAY morning in Europe, the Euro FELL BY 7 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1271 Last night Shanghai COMPOSITE CLOSED UP 6.97 POINTS OR 0.24% 

 

//Hang Sang CLOSED UP 6.36 POINTS OR 0.03%

/AUSTRALIA CLOSED UP 0,07%// EUROPEAN BOURSES MOSTLY GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES MOSTLY GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 6.36 POINTS OR 0.03%

 

 

/SHANGHAI CLOSED DOWN 6.97 POINTS OR 0.24%

 

Australia BOURSE CLOSED UP. 07% 

 

 

Nikkei (Japan) CLOSED UP 314.37  POINTS OR 0.38%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1694.00

silver:$17.63-

Early MONDAY morning USA 10 year bond yield: 0.91% !!! UP 1 IN POINTS from FRIDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.69 UP 2  IN BASIS POINTS from FRIDAY night.

USA dollar index early MONDAY morning: 97.02 UP 8 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  MONDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.53% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +05%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.55%//DOWN 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,40 DOWN 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 85 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.31% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.71% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR MONDAY

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

Euro/USA 1.1291  UP     .0031 or 31 basis points

USA/Japan: 108.60 DOWN .849 OR YEN UP 85  basis points/

Great Britain/USA 1.2686 UP .0047 POUND UP  47  BASIS POINTS)

Canadian dollar UP 19 basis points to 1.3386

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0715    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0620  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.7914 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +.05%

 

Your closing 10 yr US bond yield DOWN 3 IN basis points from FRIDAY at 0.87 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.59 UP 3 in basis points on the day

Your closing USA dollar index, 96.78 DOWN 16  CENT(S) ON THE DAY/1.00 PM/

 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for MONDAY: 12:00 PM

London: CLOSED DOWN 6.85  0.19%

German Dax :  CLOSED DOWN 10.14 POINTS OR .08%

 

Paris Cac CLOSED DOWN 14.94 POINTS 0.29%

Spain IBEX CLOSED UP 23.70 POINTS or 0.30%

Italian MIB: CLOSED UP 51.12 POINTS OR 0.25%

 

 

 

 

 

WTI Oil price; 38.09 12:00  PM  EST

Brent Oil: 41.11 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    68.42  THE CROSS LOWER BY 0.28 RUBLES/DOLLAR (RUBLE HIGHER BY 28 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.31 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 :  38.22//

 

 

BRENT :  40.72

USA 10 YR BOND YIELD: … 0.87…down 3 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.64..down 3 basis points..

 

 

 

 

 

EURO/USA 1.1294 ( UP 15   BASIS POINTS)

USA/JAPANESE YEN:108.37 DOWN 1.083 (YEN UP 108 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.66 DOWN 28 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2729 UP 90  POINTS

 

the Turkish lira close: 6.79

 

 

the Russian rouble 68.24   UP 0.45 Roubles against the uSA dollar.( UP 45 BASIS POINTS)

Canadian dollar:  1.3034 UP 21 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.32%

 

The Dow closed UP 461.46 POINTS OR 1.20%

 

NASDAQ closed UP 110.67 POINTS OR 1.13%

 


VOLATILITY INDEX:  25.79 CLOSED UP 1.27

LIBOR 3 MONTH DURATION: 0.312%//libor dropping like a stone

LIBOR/OIS// .25%

TED SPREAD:  (3 MONTH TREASURY VS LIBOR)  0.150%

 

USA trading today in Graph Form

Quant-Quake Continues: Momentum Melts Down As Stocks & Bonds Rally

On the day that NBER announces the US Economy officially entered recession in February, S&P scrambled green year-to-date…

Nasdaq 100 and Composite both made new record highs…

Source: Bloomberg

Because fun-durr-mentals…

Source: Bloomberg

But while the surface of the ocean of wealth creation looks “calm” and v-shaped, it is a turmoiling disaster down below as a major quant quake is under way as inflation bets are resurgent.

All momo gains YTD are now erased as the momentum factor tumbles 6 days in a row (this is the biggest 6-day drop on record)

Source: Bloomberg

And markets are the most ‘euphoric’ since 2002:

“We are concerned that thoughtful approaches are being overwhelmed by the need to at least keep pace with price moves,” Citi’s strategists said.

“People are ignoring joblessness, trade friction, social unrest, and risks that loom including possible Covid-19 reinfections, the end of bonus supplemental unemployment checks and the upcoming elections.”

Still, who cares – you can buy 5 shares of HTZ and 10x your money in a day (more below)…

Crazy indeed…

David Rosenberg (@EconguyRosie)

It’s the mother of all ‘money illusion’ rallies. In 3 months, the Fed juiced up M2 by a cool $2.5T, and the S&P 500 mkt cap surged dollar for dollar. Who needs earnings? Who needs productivity? Who even needs buybacks anymore? MMT arrived early and with a Republican in office!!”

Drunkenmiller, 2015

“Earnings don’t move the overall market… focus on the central banks and focus on the movement of liquidity”

Druckenmiler, 2020

“I would also say I underestimated how many red lines, and how far, the Fed would go,”

On the day, Small Caps dominated and while Nasdaq lagged it was still up another 0.5% (note the market never really accelerated until Europe opened and dived at the US open only to be insta-bid right after)…

VIX was higher on the day as it appears the call-buying is accelerating as stocks surge (never ends well)…

Source: Bloomberg

The S&P is the most overbought since Jan…

Source: Bloomberg

“Most Shorted” stocks are up 12 of the last 13 days (and 7 days in a row)

Source: Bloomberg

Treasury yields fell for the first time in 6 days (except 2Y which rose 2bps as the yield curve flattened notably today)…

Source: Bloomberg

10Y Yields are back below 90bps (down around 9bps from Friday’s highs)…

Source: Bloomberg

Interestingly the bond rally today was against the trend in the momo/value move…

Source: Bloomberg

The dollar fell for the 8th day in a row – the longest streak of losses since 2011

Source: Bloomberg

After nine straight days of higher highs, EURUSD made a lower high today breaking the longest streak since Oct 2010…

Source: Bloomberg

Notably EURUSD has recoupled with its EU and US rates differential…

Source: Bloomberg

Cryptos were largely flat since Friday – managing to come back from a decent selling effort yesterday…

Source: Bloomberg

Oil prices dared to fall today after Goldman suggested things were not quite as rosy as investors hoped (and hedge fund positioning was reduced)…it seems $40 was a limiter…

Gold futures scrambled back above $1700 after Friday’s payrolls puke…

Silver was also higher on the day – but underperformed gold – as it pushed back up towards $18…

And finally, there’s this utter farce.

Bankrupt HTZ stock is up 681% in the last 3 days and 1450% from its bankruptcy-announcement lows…

And CHK (also bankrupt)…

Grant Williams@ttmygh

How broken are markets? This broken 👇👇👇 https://twitter.com/teslacharts/status/1270024581273788416 

TeslaCharts@TESLAcharts

There’s a $2.2 billion $CHK bond that’s due on January 1, 2025. It currently sells for 5 cents on the dollar. The stock is up 171% today to a market cap of $650 million.

View image on Twitter
END

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

Futures Jump Above 3,200; Brent Surges As Dollar Selling Accelerates

The risk-on euphoria in the aftermath of Friday’s blowout payrolls report, errors and all, has continued on Sunday night – as hedge funds (net exposure at 2 year highs), joining the retail army – and S&P futures have jumped back above 3,200 and are on pace to not only take out Friday’s intraday high of 3,210.5, but to go green for the year.

Supporting the bullish sentiment was overnight news that China’s trade surplus surged to a record in May as exports fell less than expected, while imports tumbled driven by declining commodity prices sales. A Bloomberg report that  AstraZeneca has approached Gilead about what would be the biggest health care deal in history, will likely spark a rally among other Merger Monday candidates.

Oil is also surging after six straight weeks of gains, as Brent rises above $43 following Saturday’s OPEC+ decision to extend oil output cuts for another month, coupled with Saudi Aramco’s decision to hike oil export prices by the most on record.

The dollar has continued its furious decline, with the DXY index just shy of where it started the year!

The EURUSD has continued its historic ascent, rising back over 1.13.

As Nordea writes earlier today, we have had nine days of higher highs in EUR/USD driven by a combination of reflationary vibes and increasing momentum for the “Next Generation EU” debt deal. If we get another high in the Monday session – and absent some dramatic reversal that appears inevitable –  it would be the first streak of ten consecutive higher/highs since October-2010. 

Investor now turn their attention to the Fed’s meeting on Wednesday, where Powell is expected to re-commit to using their “full range of tools” to support the U.S. economy during the pandemic, with some speculating that the Fed may also unveil Yield Curve Control to keep long-rates in check. At the same time, global governments are gradually easing their coronavirus lockdowns to revive growth while controlling the spread of Covid-19, even as millions of US protesters breached social distancing norms, potentially sparking a new round of infections, although good luck to anyone who tries to enforce another round of closures.

In other news, the Minneapolis police department will soon cease to exist as the local city counsel decided to disband it, in an ominous harbinger of the chaos that may soon come to every major American city.

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

A very important article dealing with corporations that have borrowed huge amounts of debt this year (over one trillion dollars) and then using the funds to issue dividends to its shareholders.  Then they liquidated many of their employees.

a must read..

(zerohedge_

 

The Fed Just Unleashed A Trillion In New Debt: Companies Took The Money And Spent It On Dividends While Firing Millions

It was all the way back in 2012 when we first described in “How The Fed’s Visible Hand Is Forcing Corporate Cash Mismanagement” that the era of ultra cheap money unleashed by the Fed is encouraging corporations not to invest in capex or growth or investing in a satisfied employee base, but to rush and spend it on cheap, short-term gimmicks such as buybacks and dividends which benefit the company’s shareholders in the short term while rewarding management with by bonuses for reaching stock price milestones, vesting incentive compensation.

We concluded by saying that this was “the most insidious way in which the Fed’s ZIRP policy is now bleeding not only the middle class dry, but is forcing companies to reallocate cash in ways that benefit corporate shareholders at the present, at the expense of investing prudently for growth 2 or 3 years down the road.”

For years, nobody cared about what ended up being one of the most controversial aspects of capital mismanagement in a time of ZIRP/NIRP/QE, then suddenly everyone cared after the coronavirus crisis, when it emerged that instead of prudently deploying capital into rainy day funds, companies were systematically syphoning cash out (usually by selling debt) to rewards shareholders and management, confident that if a crisis struck the Fed would bail them out: after all the Fed bailed out the banks in 2008, and by 2020 US corporate debt had reached $16 trillion, or over 75% of US GDP, making it a systematic risk and virtually assuring that expectations for a Fed bailout would be validated.

Sure enough, that’s precisely what happened.

But while none of this should come as a surprise to anyone following events over the past decade, what came next may be a shock, because in response to creating a massive debt bubble whose proceeds were used to make shareholders extremely rich at the expense of a miserable employee base and declining corporate viability, the Fed… doubled down and virtually overnight gave companies a green light to do everything they did leading to the current disaster.

In a Bloomberg expose written by Bob Ivry, Lisa Lee and Craig Torres, the trio of reporters show how, 12 years after we first laid out the “New Normal” capital misallocation paradigm, we are again back to square one as the Fed actions – which as even former NY Fed president Bill Dudley admits are brazen moral-hazard – have prompted a record debt binge even as corporate borrowers are firing millions of workers while using the debt to – drumroll – make shareholders richer.

Take food-service giant Sysco, which just days after the Federal Reserve crossed the final line into centrally-planned markets on March 23 when it assured that it would make openly purchase corporate debt, Sysco sold $4 billion of debt. Then, just a few days after that, the company announced plans to cut one-third of its workforce, more than 20,000 employees, even as dividends to shareholders would continue.

That process repeated itself in April and May as the coronavirus spread. The Fed’s promise juiced the corporate-bond market. Borrowing by top-rated companies shot to a record $1.1 trillion for the year, nearly twice the pace of 2019.

What happened then was a case study of why Fed-endorsed moral hazard is always a catastrophic policy… for the poor, while making the rich richer:

Companies as diverse as Sysco, Toyota Motor Corp., international marketing firm Omnicom Group Inc. and movie-theater chain Cinemark Holdings Inc. borrowed billions of dollars — and then fired workers.

Just two weeks ago, Fed chair Powell testified before Congress, and when asked why the Fed is buying investment grade and junk bond debt, Powell responded “to preserve jobs.” That was a blatant lie, because as Bloomberg notes, the actions of the companies that benefited from the Fed’s biggest ever handout called into question the degree to which the U.S. central bank’s promise to purchase corporate debt will help preserve American jobs.

Unlike the Small Business Administration’s Paycheck Protection Program, which has incentives for employers to keep workers on the job and is only a grant if the bulk of the proceeds are used to retain workers, the taxpayer-backed facilities that the Fed and Treasury Department created for bigger companies have no such requirements. In fact, to make sure the emergency programs help fulfill one of the Fed’s mandates – maximum employment – the central bank is simply crossing its fingers that restoring order to markets will translate to saving jobs.

Instead, what the Fed’s actions have unleashed so far is a new record debt bubble, with more than $1.1 trillion in new debt issuance in just the first five months of the year, even as companies issuing debt are quick to lay off millions!

“They could set conditions, say to companies, hire back your workers, maintain your payroll to at least a certain percentage of prior payroll, and we will help,” said Robert Reich, the former Secretary of Labor for President Bill Clinton who now teaches economics at the University of California, Berkeley. “It’s hardly clear that if you keep companies afloat they’ll hire employees.”

Just don’t tell the Fed Chair: in a May 29 webinar, Jerome Powell said that it’s “really it’s all about creating a context, a climate, in which employees will have the best chance to either keep their job, or go back to their old job, or ultimately find a new job. That’s the point of this exercise.”

The exercise has failed, because just as soon as the bailout funds expire, America will see a second wave of epic layoffs: the extra $600 a week in unemployment benefits that Congress approved in March stops on July 31, while the prohibition against firing workers in the $25 billion government rescue of U.S. airlines expires Sept. 30, and the biggest recipients have said they intend to shed employees after that date.

But where did all the hundreds of billions in newly issued debt go? Well, dividends for one. Without provisions for employees, “the credit assistance will tend to boost financial markets, but not the broad economic well-being of the great majority of the population,” Marcus Stanley, Americans for Financial Reform’s policy director, told Bloomberg.

Of course, when confronted with this reality, the Treasury Secretary did what he normally does: he lied.

“Our No. 1 objective is keeping people employed,” Mnuchin said during a May 19 Senate Banking Committee hearing after Senator Elizabeth Warren, a Massachusetts Democrat, accused him of “boosting your Wall Street buddies” at the expense of ordinary Americans. “What we put in the Main Street facility is that we expect people to use their best efforts to support jobs,” Mnuchin said.

The phrase “best efforts” echoes the original terms for the Main Street program, which required companies to attest they’ll make “reasonable efforts” to keep employees. The wording was subsequently changed to “commercially reasonable efforts,” which Jeremy C. Stein, chairman of the Harvard University economics department and a former Fed governor, called a welcome watering-down of expectations that the central bank would dictate employment policies to borrowers.

And while Stein said that it was “smart of them to weaken that”, what ended up happening is that companies entirely sidestepped preserving employees and rushed to cash out – guess who – shareholders once again.

But in keeping with the Fed’s overarching directive – that its programs are about lending, not spending in the words of Powell – once the Fed has triggered a new debt bubble with its explicit interventions in the secondary market, the Fed has no control over what companies do with the source of the virtually free funds:

“For the Fed to second-guess a corporate survival strategy would be a step too far for them,” said Adam Tooze, a Columbia University history professor. Putting explicit conditions on program beneficiaries would make the central bank “a weird hybrid of the Federal Reserve, Treasury, BlackRock and an activist stockholder,” he added, clearly unaware that we now live in a world in which this “new normal” Frankenstein monster is precisely who is in charge of capital markets, as the helicopter money resulting from the unholy merger of the Fed and Treasury is precisely what BlackRock is frontrunning, in its own words. But heaven forbid some of the trillions in new debt are used for employees…

And while tens of millions of jobs have been lost since March – today’s laughable and fabricated jobs report, in the BLS’ own admission – notwithstanding, there has been one clear beneficiary: the S&P 500 has jumped 38% since March 23, the day the Fed intervened; on Friday, the Nasdaq just hit an all time high. Observers of the stock market wonder how it could be so bullish at the same time as the country faces an avalanche of joblessness unsurpassed in its history.

The choices companies are making – choices which we correctly predicted back in 2012 – provide an answer.

Since selling $4 billion in debt on March 30, Sysco has amassed $6 billion of cash and available liquidity, enabling it to gobble up market share, while cutting $500 million of expenses, according to Chief Executive Officer Kevin Hourican. Sysco, which is based in Houston, will continue to pay dividends to shareholders, Chief Financial Officer Joel Grade said on a May 5 earnings call.

Countless other companies are also splurging on debt-funded dividends, while some – such as Apple and Amazon – are now issuing debt to fund their next multi-billion buyback program.

Of course, it’s not just investment grade debt: the Fed notoriously is also active in the junk bond space, buying billions in high yield ETFs (that now hold bonds of bankrupt Hertz).

Movie theaters were one of the first businesses to close during the pandemic. Cinemark, which owns 554 of them, shut its U.S. locations on March 17. Three days later, the company paid a previously announced dividend. It has since said it will discontinue such distributions. Cinemark borrowed $250 million from the junk-bond market on April 13, the same day it announced the firing of 17,500 hourly workers. Managerial staff were kept on at reduced pay, according to company filings. Cinemark, which is based in Plano, Texas, said it plans to open its theaters in phases starting June 19.

Win win… for Cinemark’s management and shareholders. Lose for everyone else.

Actually, win win for all corporations: like Cinemark, Omnicom issued $600 million in bonds in late March. In an April 28 conference call to discuss quarterly earnings, CEO John Wren said the company was letting employees go but didn’t say how many. He said the company was extending medical benefits to July 31 for employees furloughed or fired.

Wren added: “Our liquidity, balance sheet and credit ratings remain very strong and we have no plans to change our dividend policy.”

And once again, Dividends 1 – Employees 0, because everything will be done to prevent shareholders from dumping the stock.

Toyota borrowed $4 billion from investors on March 27. Three days later, the Japan-based car company said it would continue paying dividends to shareholders. Eight days after that it said it would drop roughly 5,000 contract workers who helped staff its plants in North America.

And so on, and so on, as companies issue hundreds of billions in debt without a glitch – now that the Fed has taken over the bond market – and use the proceeds to fund dividends, while laying off millions.

In a March 24 letter, 200 academics, led by Stanford University Graduate School of Business Professor Jonathan Berk, called lending programs aimed at corporations “a huge mistake.” Better to focus help directly on people living paycheck to paycheck who lost their jobs, it said.

“Bailing out investors who chose to take high-risk investments because they wanted the high returns undermines capitalism and makes it an unfair game,” Berk said in an interview. “If you don’t have a level playing field in capitalism, it doesn’t work.”

Why dear, misguided Jonathan: whoever told you the US still has “capitalism”?

 end
Retail outlets along  I 95 as being boarded up, fearing looters will try and target the suburbs.  Simon group again gets their teeth knocked out…
(zerohedge)

Retail Outlets Along I-95 Close Saturday As Looters Target The Suburbs

Now that most of NYC’s retailers have either already been looted, or have been preemptively boarded up and emptied of merchandise until to ride out the unrest, the same looters who relied on more strategic tactics like working in crews and using drivers and lookouts are reportedly targeting wealthy suburbs like Connecticut and New Jersey.

On the advice of state police, retail outlets along I-95 (a critical vehicular artery connecting Westchester and southern Connecticut and the city) are closing and boarding up their stores on Saturday to try and discourage looters, and the potentially deadly confrontations with police that might ensue.

Clinton Crossing Premium Outlets will be closed this weekend after police detected social media posts calling for looters to converge at the premium outlets in Clinton, Conn.

In response to Facebook threats of looting and rioting, Clinton Crossing Premium Outlets will be closed Saturday and Sunday, according to an official of the retail outlet center.

Entrances and exits at Clinton Crossing, a member of the Simon Property Group, will be blocked with Jersey barriers. Some stores, including Polo Ralph Lauren and Finish Line, were boarded up starting Friday morning.

“Based on the credibility of threats and law enforcement recommendations, the decision has been made to temporarily close,” Nathan Ramos, area general manager, wrote in a letter to mall businesses.”…Our goal is to provide a safe environment for tenants, customers and employees.”

Clinton Crossing, off Exit 63, is home to about 70 outlet stores, including the upscale Coach, Dooney & Bourke, Kate Spade New York and Michael Kors, as well as Sunglass Hut and Yankee Candle.

The following message was posted to premiumoutlets.com.

“We are deeply saddened and troubled by the murder of Mr. Floyd and mourn his senseless loss,” it reads. “We stand united for racial equality and pray for the healing of our communities.”

Police aren’t solely concerned about the looting: there’s also the fear that confrontations between looters and police could lead to violence and deaths on either side.

Clinton police are being especially cautious in light of incidents across the country sparked by the death of George Floyd while in custody of Minneapolis police.

There also have been some incidents around the country of riots and looting, leading management and shop owners to take preventive actions, said Clinton Police Chief Vincent DeMaio.

“We’ve been following it since Tuesday, we’ve been monitoring it all along,” said DeMaio.

Meanwhile, a candidate for Baltimore City Council told looters and rioters to “take that mess to Towson” (a suburban area) urging them to light fires and loot stores in the suburbs because Baltimore is still “traumatized” from the Freddie Grey riots.

A commentator sharing the video above can be heard at one point saying “this would explain all the police activity up here in Cockeysville yesterday.” Police have been closely monitoring calls for more violence and looting in the suburbs and cities.

It’s just the latest bad news for Simon Property Group, the largest mall owner in America, which just filed a lawsuit against GAP for non-payment of rent. The shutdowns will leave retailers who only just reopened in an even more financially precarious position.

end

CORONAVIRUS UPDATE/USA/THE GLOBE/SATURDAY

New Hotspots Emerge Across The US As Global COVID-19 Death Toll Approaches 400k: Live Updates

Across the US and Western Europe, the coronavirus appears to be retreating as Italy regularly reports fewer than 100 deaths per day (a trend it continued on Saturday) regions and the US is reporting nowhere close to the 3,000 new cases per day that the New York Times had characterized as a virtual certainty when it leaked a set of dire CDC projections last month.

While the child mob now in charge at the NYT destroys what little remains of the former “Paper of Record”‘s credibility, the reality is much less dire, with the US now reporting fewer than 1,000 deaths a day, while surging deaths in Brazil, Mexico and Russia make up for the decline in fatalities reported in the US and Europe.

Signs of a second wave in Asia continue to crop up, but it appears that even Japan, which was widely criticized for its lax approach to the virus, has managed to get through the outbreak with relatively few fatalities.

Still, there are still some places in the US where the virus persists, and some where it has continued to spread aggressively. According to the Washington Post, many of these latter-day hotspots can be found in parts of the South, Midwest and the Mountain West. Furthermore, data compiled by WaPo show that 23 states, as well as Washington DC and Puerto Rico, have seen an increase in the rolling seven-day average of coronavirus cases compared with the previous week. For most, that jump has been 10% or more.

Globally, the total number of confirmed cases stands just shy of 6.9 million, while confirmed deaths are nearing 400k, with ~396K. We should pass the 400k deaths mark by the end of the weekend.

What’s more: 13 states, including Arizona, California, Idaho, Kentucky, Mississippi, Nebraska, Oregon, South Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin, haven’t shown a sustained daily decrease as of Tuesday, according to the document, a copy of which was obtained by The Post.

The map below illustrates just how complex the situation can be. In some counties that have reopened, new cases have tripled. Meanwhile, new cases in the surrounding area have continued to decline.

Sources: WaPo

Italy reported 270 new cases of coronavirus and 72 new deaths for a total of 234,801 cases and 33,846 deaths. At last count, Brazil counted 650,504 cases, and more than 35,000 deaths, making it the second largest outbreak in the world after the US, while Brazil has the third-largest death toll behind only the US and the UK.

Though the virus is mostly easily passed in enclosed spaces with poor ventilation, Dr. Fauci warned during an interview on CNBC this week that the racial justice gatherings could easily spark a second wave, though he added that a second wave isn’t “inevitable”. Gov Cuomo has said protesters have a “civic duty” to go get tested now.

Though the average rate of spread – often represented by the variable “R”, indicating the number of people infected by each new carrier – is typically between one and 2 people, some of those infected – so-called “Super Spreaders” – can infect dozens, possibly hundreds, of people.

“One person can infect hundreds. If you were at a protest, go get a test, please,” Cuomo has said.

Though the curve has started to bend in the UK, the number of new cases and deaths have continued to climb at an alarming rate, even as the country adopted some of the most restrictive quarantine policies in Europe; PM Boris Johnson is facing criticism from all sides as he tries to guide the country through the first tentative steps of reopening.

Department of Health and Social Care

@DHSCgovuk

As of 9am 6 June, there have been 5,438,712 tests, with 218,187 tests on 5 June.

284,868 people have tested positive.

As of 5pm on 5 June, of those tested positive for coronavirus, across all settings, 40,465 have sadly died.

More info:
▶️ https://www.gov.uk/guidance/coronavirus-covid-19-information-for-the-public 

Coronavirus Daily Update - 6 June 2020 Number of tests: Daily = 218,187, Cumulative total = 5,438,712 People tested: data unavailable Positive: Daily = 1,557, Cumulative total = 284,868 Deaths: Daily = 204, Cumulative total = 40,465 Test data are as of 9am, 6 June. Deaths data are as of 5pm, 5 June. Notes: Reporting on the number of people tested has been temporarily paused to ensure consistent reporting across all pillars. The daily total for tests is 6,248 lower than the difference between today's and yesterday's cumulative totals. This is due to revisions to historical data for Pillar 1, 2 and 3.

The UK death toll climbed by 204 to 40,465 on Saturday morning (remember, these data are reported with a 24-hour delay). The country’s total deaths passed 50k recently, a grim milestone that put Britain second only to the US in total deaths, and the undisputed deadliest outbreak in Europe.

END
Some of the real truth behind the jobs report
(zerohedge)

Anything But “Incredible”: For Millennials And Women, The Jobs Report Was Catastrophic

There were clear problems with Friday’s “incredible” – as Trump put it – jobs report.

First and foremost the BLS’ own admission there was a “survey error” which may have reduced the real unemployment rate by up to 3% as survey-takers mistakenly counted about 4.9 million temporarily laid-off people as employed, then moving through some very aggressive statistical assumption revisions to boost the “birth/death” model, the curious case of millions of “jobs” resurrected temporarily thanks to the PPP program: as recruitment firm LaSalle Network head Tom Gimbel said, today’s jobs report may offer a “false ray of light” because almost all job gains stemmed from furloughed employees kept on the books due to PPP loans (he said he was seeing real weakness in new hiring).

But even if one accepts the report at its face, if one digs beneath the glossy veneer, the details are anything but “incredible” as described by the president.

Start with Trump’s “incredible” V-shaped rebound: after the 2.5mm new jobs added, total US employment is basically where it was at the depth of the financial crisis, while 21 million workers find themselves unemployed – this number was 6 million just two months ago.

Putting that number in context, with roughly 133 million employed workers, there are a record 102 million Americans who are not in the labor force, of whom 92.7 million don’t even want a job.

Among those who were lucky enough to remain in the work force, millions were shifted from full to part-time.

Adding insult to injury, the only jobs created in May according to Deutsche Bank were for highly-skilled, highly-paid workers as low and medium wage jobs continue to shed millions of workers – mostly young, recent graduates – as employers shift to zoom-ing or outsourcing.

That said, we find the above chart unlikely since a breakdown of actual jobs added by industry shows that the low-paying leisure and hospitality, education and health, and retail trade made up 3 of the top 4 sectors.

In any case, the unemployment rate for those without a college education is around 16% (and 20% for those who never finished high school), which is why with young, unemployed people already protesting almost daily, it is shaping up as a summer of teenage/young adult discontent and violence for the ages.

It’s not just teenagers: millennials, already facing dire labor prospects as a result of the zombie post-GFC economy, just saw their employment rate plummet to recession levels.

The core, prime-aged segment of the workforce, those 25-54 just saw a historic collapse in their job prospects.

Yet while millennials are fired by the millions, so are older Americans: the ratio of employment of those 65 and older to the overall population just plunged to crisis levels as well.

And here is the catalyst for the next round of social discontent: women unemployment is now far higher than that of men after being roughly the same before covid: how long before accusation of rampant employer sexism are the next big thing?

What is one to do with these data? Why buy stocks of course, what else. It is “Jay’s market“, where an economic depression means +∞ for the S&P.

iv) Swamp commentaries)

Just the beginning as the Republicans are racing against the clock to prove that Obama and his team are the ones that cooked up the plot to stop Trump from being President and then trying to sabotage his Presidency.

(John Solomon)

“Somebody Cooked Up The Plot”: The Hunt For The Origins Of The Russia Collusion Narrative

Authored by John Solomon via JustTheNews.com,

Hollywood once gave us the Cold War thriller called “The Hunt for Red October.” And now the U.S. Senate and its Republican committee chairmen in Washington have launched a different sort of hunt made for the movies.

Armed with subpoenas, Sens. Lindsey Graham, R-S.C., and Ron Johnson, R-Wis., want to interrogate a slew of Obama-era intelligence and law enforcement officials hoping to identify who invented and sustained the bogus Russia collusion narrative that hampered Donald Trump’s early presidency.

And while Graham and Johnson aren’t exactly Sean Connery and Alec Baldwin, they and their GOP cohorts have a theory worthy of a Tom Clancy novel-turned-movie: The Russia collusion investigation was really a plot by an outgoing administration to thwart the new president.

“What we had was a very quiet insurrection that took place,” Sen. Marsha Blackburn, the Tennessee Republican, told Just the News on Thursday as she described the theory of Senate investigators. “And there were probably dozens of people at DOJ and FBI that knew what was going on.

“But they hate Donald Trump so much … that they were willing to work under the cloak of law and try to use that to shield them so that they could take an action on their disgust,” she added. “They wanted to prohibit him from being president. And when he won, they wanted to render him ineffective at doing his job.”

For much of the last two years, the exact theory that congressional Republicans held about the bungled, corrupt Russia probe — where collusion between Donald Trump and Vladimir Putin was ultimately disproven and FBI misconduct was confirmed — was always evolving.

But after explosive testimony this week from former Deputy Attorney General Rod Rosenstein, who openly accused the FBI of keeping him in the dark about flaws, failures and exculpatory evidence in the case, the GOP believes it may prove the Russia case was a conspiracy to use the most powerful law enforcement and intelligence tools in America to harm Trump.

Two years of declassified memos are now in evidence that show:

  • The FBI was warned before it used Christopher Steele’s dossier as evidence to target the Trump campaign with a FISA warrant that the former British spy might be the target of Russian disinformation, that he despised Trump and that he was being paid to help Hillary Clinton’s campaign. But agents proceeded anyway.
  • The bureau was told by the CIA that its primary target, Trump adviser Carter Page, wasn’t a Russian spy but rather a CIA asset. But it hid that evidence from the DOJ and courts, even falsifying a document to keep the secret.
  • The FBI opened a case on Trump adviser George Papadopoulos on the suspicion he might arrange Russian dirt on Hillary Clinton but quickly determined he didn’t have the Russian contacts to pull it off. But the case kept going.
  • The FBI intercepted conversations between its informants and Papadopoulos and Page showing the two men made numerous statements of innocence, and kept that evidence from the DOJ and the courts.
  • The FBI investigated Trump national security adviser Michael Flynn for five months and concluded there was no derogatory evidence he committed a crime or posed an intelligence threat and recommended closing the case. But higher-ups overruled the decision and proceeded to interview Flynn.
  • The FBI and DOJ both knew by August 2017 there was no evidence of Trump-Russia collusion but allowed another 18 months of investigation to persist without announcing the president was innocent.

That is just a handful of the key evidentiary anchors of the storyline Republicans have developed. Now they want to know who helped carry out each of these acts.

“There are millions of Americans pretty upset about this,” Graham said this week. “There are people on our side of the aisle who believe this investigation, Crossfire Hurricane, was one of the most corrupt, biased criminal investigations in the history of the FBI. And we’d like to see something done about it.”

Graham tried to take action to approve 50-plus subpoenas from the Senate Judiciary Committee to witnesses on Thursday but was forced to delay a week.

Johnson, meanwhile, successfully secured about three dozen subpoenas to get documents and interviews with key witnesses from his Senate Homeland Security and Governmental Affairs Committee.

Evidence is growing, Johnson said, that there was not a “peaceful and cooperative” transition between the Obama and Trump administrations in 2017.

“The conduct we know that occurred during the transition should concern everyone and absolutely warrants further investigation,” he said.

With Rosenstein’s testimony now behind them, the senators have some lofty targets for interviews or testimony going forward, including fired FBI Director James Comey, his deputy Andrew McCabe, ex-CIA Director John Brennan, and the former chiefs of staff for President Barack Obama and Vice President Joe Biden.

Blackburn said during an interview with the John Solomon Reports podcast that the goal of the subpoenas and witnesses was simple: to identify and punish the cast of characters who sustained a Russia collusion narrative that was never supported by the evidence.

“Somebody cooked up the plot,” she explained.

“Somebody gave the go-ahead to order, to implement it. Somebody did the dirty work and carried it out — and probably a lot of somebodies. And what frustrates the American people is that nobody has been held accountable.

“Nobody has been indicted. Nobody has been charged, and they’re all getting major book deals and are profiting by what is criminal activity, if you look at the statutes that are on the book, and if you say we’re going to abide by the rule of law and be a nation of laws.”

For Blackburn, identifying and punishing those responsible is essential for two goals: to deter anyone in the future from abusing the FBI and FISA process again and to ensure Americans there isn’t a two-tiered system of justice in America.

“I think when you Google [Russia collusion] in future years, you’re going to see a screenshot of this cast of characters that cooked this up, because it is the ultimate plot,” Blackburn said.

end

William Barr is excellent in this interview with Margaret Brennan

end

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

A major factor in the huge job growth for May is the seasonal adjustment process.  For April, BLS models expect large increases in jobs related to Easter, Passover and spring vacations.  Those jobs didn’t appear due to shutdowns and home arrest.  So, April job losses were exaggerated – AKA fictitious.

The stunning May Employment Report unleashed manic equity buying and incontinent short covering on Friday.  Nasdaq hit an all-time high.  The only negative was the last hour decline.  Bonds and gold plunged on Friday.  A big surprise was that the dollar only rallied modestly.  The dollar should soar on strong US economic data.  The US economy is no longer in depression; it’s now in a severe recession.

The MSM & Dems groused that black unemployment rose to 16.8% from 16.7%.  That’s because blue state governors and big-city mayors kept their economies closed or rigorously restricted.  People in these states will be upset that open states have rebounded.  The pressure on big-blue cities and blue states to reopen has increased greatly.  June economic data could surge higher.

While numerous pundits proclaim that a ‘V’-shaped economic recovery is underway, the odds are very high that the economic recovery will resemble a reverse square root symbol.

Joe Biden had a planned Friday morning event.  Apparently, he and his staff didn’t change the script after the May Employment Report.

@ABC on Friday: Joe Biden: “The depth of this job crisis is not attributable to an act of God, but to a failure of a president.”

@GiancarloSopo: Joe Biden just said Hispanic unemployment “jumped to over 37%” this month. ¿De qué diablos está hablando? This number is completely made-up.  He’s only off by about 20 points and Hispanic unemployment went DOWN last month [to 17.6% from 18.9%]. ¡Qué desmadre!

Washington Post Publishes Phony ‘Grim Milestone’ Tweet, Says Unemployment Rate ‘Nears 20%’

The Washington Post faced a growing backlash on social media Friday after publishing a phony tweet that claimed the US unemployment rate was approaching 20%; despite a strong jobs report that showed the number had dropped to 13.3%.  “Grim milestone to be reached as May unemployment rate nears 20 percent,” the Post wrote in a now-deleted tweet

https://hannity.com/media-room/whoops-washington-post-publishes-phony-grim-milestone-tweet-says-unemployment-rate-nears-20/

More great news: UPMC doctor says COVID-19 has become ‘less prevalent’ and isn’t making people as sick [Confirms Italian research that Covid-19 in Italy has lost its potency.]

  “All signs show… this virus is less prevalent than it was weeks ago,” said Dr. Donald Yealy, the chair of emergency medicine at UPMC.  Yealy further said, among people who test positive, “the total amount of the virus the patient has is much less than in the earlier stages of the pandemic.”… We see all of this as evidence that COVID-19 cases are less severe than when this first started,… He said that suggests the widely-feared prospect of getting COVID-19 from someone with no symptoms is unlikely…

https://www.pennlive.com/news/2020/06/upmc-doctor-says-covid-19-has-become-less-prevalent-and-less-severe.html

If the University of Penn Medical Center doctor is right, the need for a Covid-19 vaccine diminishes.  Think of all the vested interests that will be crushed by this!  Furthermore, if Covid-19 is dying, this strongly suggests that Covid-19 was manmade, as India research stated months ago.  Like early cloning specimens that quickly died, Mother Nature does not like to be fooled.

Trump on Friday: “Equal justice under the law must mean that every American receives equal treatment in every encounter with law enforcement regardless of race, color, gender or creed.  We all saw what happened last week.  We can’t let that happen.  Hopefully George is looking down right now and saying this is a great thing that’s happening for our country…in terms of equality…”

https://twitter.com/bennyjohnson/status/1268921372597784576

The MSM and Dems spun the above DJT remarks as ‘Trump says Floyd should be happy with a good jobs report’.  This deceit and race baiting is despicable, especially by the media!

We stressed in a few missives last week that the current riots are not like 1968.  Numerous working and merchant class blacks have voiced anger with the riots and the destruction of their businesses or the businesses in black communities.

@Rasmussen_Poll: Our Daily Presidential Tracking poll today shows Black Likely Voter approval of the job @realDonaldTrump is now over 40%. [The least significant poll surveys ‘US adults’; then ‘registered voters’.  The most meaningful poll is ‘likely voters’.]

“Blackout” [of Dem Party] author @RealCandaceO: 70 million views. I’ve had celebrities and athletes message me from all around the world thanking me [for anti-BLM rant video] —telling me they agree with me, but have to publicly support BLM or risk being labeled as a “racist” by the mob.  This is how a silent majority is created.

The riots of the Sixties unraveled the Roosevelt Coalition that ruled the USA, except for a small part of Ike’s two terms, for 36 years.  The flight from cities and the Democratic Party was labeled ‘White Backlash’.  Now, there is significant Black Backlash about policies that facilitated the destruction of black jobs, businesses and neighborhoods.  This could produce the biggest schism in blacks since Booker T. Washington and W.E.B. DuBois wrestled for control of the civil rights movement in the late 1890s.

The call from the usual suspects to refund or abolish police departments escalated over the weekend.  Democrats in big-cities are calling for the removal of police from schools.  This is incomprehensible!

Wall Street employs financial terrorism to get the Fed and government to bailout it out from its wanton speculation and over-levering (bails us out or the financial system falls!).  Now, anarchists are threatening more violence and protests if police are not diminished!  You can’t make this up!

Covid bailout packages prohibited companies from buying back stock, increasing dividends and firing workers.  However, the Fed bailouts and asset buying do NOT have these encumbrances.  So, companies are borrowing from the Fed to keep dividends and executive bonuses while some fire beaucoup workers.  This is the stuff of revolution!

Fed Vow Boosts Debt Binge as Borrowers Cut Thousands of Jobs

  • Corporate lending facilities lack PPP’s employment incentives
  • ‘It’s all about creating a context’ for jobs, Powell says [Plays the fool once again!]

Soon after the Federal Reserve’s March 23 assurance that it would make borrowing easier for American corporations, Sysco Corp. sold $4 billion of debt.  Not long after that, the food-service giant announced plans to cut one-third of its workforce, more than 20,000 employees. Dividends to shareholders would continue, executives said…

      That process repeated itself in April and May as the coronavirus spread. The Fed’s promise juiced the corporate-bond market. Borrowing by top-rated companies shot to a record $1.1 trillion for the year, nearly twice the pace of 2019. Companies as diverse as Sysco, Toyota Motor Corp., international marketing firm Omnicom Group Inc. and movie-theater chain Cinemark Holdings Inc. borrowed billions of dollars — and then fired workers…

      “Our No. 1 objective is keeping people employed,” Mnuchin said during a May 19 Senate Banking Committee hearing after Senator Elizabeth Warren, a Massachusetts Democrat, accused him of “boosting your Wall Street buddies” at the expense of ordinary Americans. “What we put in the Main Street facility is that we expect people to use their best efforts to support jobs,” Mnuchin said…

https://www.bloomberg.com/news/articles/2020-06-05/fed-vow-boosts-debt-binge-while-borrowers-cut-thousands-of-jobs?sref=V47xycDY

Mnuchin’s “best efforts” are weasel words; a qualifier that allows borrows to do whatever they want.  “Clean your room before you got out!”  “But, mommm!”  “Okay, give a best efforts cleanup.”

Minneapolis City Council Members Announce Intent to Disband the Police Department, Invest In Proven Community-Led Public Safety

https://theappeal.org/minneapolis-city-council-members-announce-intent-to-disband-the-police-department-invest-in-proven-community-led-public-safety/

Minneapolis Mob Turn on Mayor Frey For Not Being Woke Enough – Force Mayor To Do Walk of Shame… [Disgraceful & humiliating] The mob always wants more… Today the social justice warriors demanded Mayor Frey prove his virtue by promising to eliminate all police officers and allow the woke community to take over the organization of their politically correct civic society.  The Mayor could not make the promise…. So the mob turned on him and forced him to do the walk of shame through the crowd… https://theconservativetreehouse.com/2020/06/06/frey-has-sad-minneapolis-mob-turn-on-mayor-frey-for-not-being-woke-enough-force-mayor-to-do-walk-of-shame-video/

Citizen patrols organize across Minneapolis as confidence in the police force plummets

“If it weren’t for our community standing watch, nothing else was going to prevent these arsonists from burning it down… MPD and the National Guard weren’t going to keep us safe. We had to do it.”…

https://www.washingtonpost.com/national/citizen-patrols-make-statement-in-minneapolis/2020/06/06/cc1844d4-a78c-11ea-b473-04905b1af82b_story.html

With pension rule change, scores of Minnesota police officers will retire

A wave of retirements soon is likely to exacerbate a shortage of officers in Minneapolis and other cities just as the summer crime season arrives In Minneapolis, where the number of sworn officers was already hovering near a 10-year low, the retirements have led to staffing problems in some precincts, according to union president Lt. John Delmonico…

https://www.startribune.com/with-pension-rule-change-scores-of-police-officers-in-state-will-retire/261396001/

Some protesters take issue with police kneeling, calling it ‘PR stunt’ [no blatant virtue signalers]

Many black organizers say they don’t want police kneeling or marching with them.

https://abcnews.go.com/US/protesters-issue-police-kneeling-calling-pr-stunt/story?id=71067237

Manhattan DA Announces He Will Let Rioters and Looters Off Without Charges ‘In the Name of Justice’    Rule of law is being replaced with rule by mob.

https://bigleaguepolitics.com/manhattan-da-announces-he-will-let-rioters-and-looters-off-without-charges-in-the-name-of-justice/

DA declines to prosecute man arrested in St. Patrick’s Cathedral vandalism

https://nypost.com/2020/06/06/da-declines-to-prosecute-man-arrested-in-st-patricks-cathedral-vandalism/

NYPD Find Functional Bomb at 77th Precinct Station House in Brooklyn https://thegatewaypundit.com/2020/06/report-nypd-find-functional-bomb-77th-precinct-station-house-brooklyn/

Bernard Kerik: Over 300 NYPD Officers Injured in Riots, 600 Consider Resigning

https://www.breitbart.com/politics/2020/06/07/kerik-600-nypd-officers-resigning/

Fox’s @BryanLlenas: Yesterday NYPD Commissioner Dermot Shea gave an extraordinary press conference in which he said anti police hate rhetoric is fueling violence against police officers. “The violence must stop.” He said elected officials needed to speak out – calling their silence “sickening.”

@RealJamesWoods: 89 police officers were killed in the line of duty last year.

@johncardillo: NYPD sources telling me these rumors are flying around the dept: Police Commissioner and Chief of Dept. out, major shuffling of chiefs and units.  Being told Juanita Holmes, a de Blasio ally, will be next Commissioner… despite Chief Monahan kneeling, de Blasio felt he and Police Commissioner Shea were too hands on and aggressive with rioters and asked them both to condemn NYPD cops’ actions. They refused, and de Blasio made it clear they were done. [Kneeling not enough to please mob]

@NYCPBA_GC: Despite a pandemic/stay-at-home order, last month NYC murders were up almost 100% compared to last year… https://t.co/7CYrJSjl2P

Mayor Bill de Blasio @NYCMayor: This morning we committed to move resources from the NYPD to youth and social services as part of our City’s budget.

Gov. Cuomo cites looting as reason to not defund NYPD

https://nypost.com/2020/06/07/gov-cuomo-cites-looting-as-reason-to-not-defund-the-nypd/

De Blasio rips cops for not wearing masks to George Floyd protests https://t.co/8cKQPUQ243

Fox’s @JacquiHeinrich on Saturday: In Brooklyn just now, protest organizer suggests violence could resume if city and state leadership doesn’t acknowledge their demands for policy changes. Says “maybe we go to the diamond district, and thanks to President Trump gas is cheap”…

@NYPDnews: Earlier tonight, a man wearing this mask threatened, in a live @FoxNews interview, to burn Manhattan’s diamond district down…we identified the man & took him in to be interviewed.

LA Mayor Garcetti Calls His Cops ‘Killers.’ The ‘Killers’ Just Sent a Reply to the ‘Unstable’ Mayor

The LAPD is calling for @MayorOfLA to be removed from officer due to mental illness after Garcetti called all cops in the country “killers.” https://t.co/cgvOnAXNF3      https://pjmedia.com/news-and-politics/victoria-taft/2020/06/06/la-mayor-garcetti-calls-his-cops-killers-the-killers-just-sent-a-reply-to-the-unstable-mayor-n502267

Denver judge restricts cops from using tear gas and rubber bullets on protesters saying smashed windows and graffiti are a ‘fair trade’ to prevent demonstrators’ bones being broken and eyesight damaged by police  https://www.dailymail.co.uk/news/article-8395237/Denver-judge-restricts-cops-using-tear-gas-rubber-bullets-protesters.html

On Saturday @CWBChicago: Sergeant: “I understand. We’ve lost the city.”  Dispatcher: Just making sure you were aware of that… Dispatch: “Caller says people are taking money from the ATM.”  Cop: Isn’t that what an ATM is for?… Chicago had 85 murders in May, according to stats released overnight by @Chicago_Police. That’s a tie for the worst May since at least 1957. Here’s a handy chart of monthly homicide totals for you… [Over 500 homicides in last 365 days]   https://twitter.com/CWBChicago/status/1269249027096350720

Buffalo Officials Duped By Professional Antifa Provocateur – Arrest and Charge Two Police Officers – Righteous Police Team Stand Together and Walk Out

    Martin Gugino is a 75-year-old professional agitator and Antifa provocateur who brags on his blog about the number of times he can get arrested and escape prosecution. Gugino’s Twitter Account is also filled with anti-cop sentiment… In this slow motion video, you will see Gugino using a phone as a capture scanner.  You might have heard the term “skimming”; it’s essentially the same.  Watch him use his right hand to first scan the mic of officer one (top left of chest).  Then Gugino moves his hand to the communications belt of the second officer.  The capture of communications signals [explained in detail here] is a method of police tracking used by Antifa to monitor the location of police. In some cases the more high tech capture software can even decipher communication encryption allowing the professional agitators to block (black-out), jam, or interfere with police communication

https://theconservativetreehouse.com/2020/06/06/buffalo-officials-duped-by-professional-antifa-provocateur-arrest-and-charge-two-police-officers-righteous-police-team-stand-together-and-walk-out/

All 57 members of the Buffalo Police Department Emergency Response Team resigned on Friday in response to the department suspending two officers after a video surfaced showing them shoving a 75-year-old protester… https://www.breitbart.com/politics/2020/06/05/57-member-buffalo-police-team-resigns-over-officers-suspension/

The Philadelphia Inquirer’s editor in chief was forced to resign due to the newspaper’s “Buildings Matter, too” headline.  https://www.inquirer.com/news/stan-wischnowski-resigns-philadelphia-inquirer-20200606.html

@johncardillo: Chief Michael Shaw of the Webster, MA PD disgraced himself by surrendering to those who want to kill him and laying face down on the filthy sidewalk as they demanded.

https://twitter.com/agreenphotog/status/1269332225499238400

Looters Have Blown Up 50 Philadelphia ATMs with Dynamite Since Saturday… Bombings Also Reported in Pittsburgh and Minneapolis   https://www.thegatewaypundit.com/2020/06/looters-blown-50-philadelphia-atms-dynamite-since-saturday-one-looter-blew-bombings-also-reported-pittsburgh-minneapolis-video/

Democrats’ silence on Antifa is deafening.  Many Dems and Establishment Republicans defended Antifa early in 2017 because Antifa vowed to take down Trump.

How Obama is scheming to sabotage Trump’s presidency   February 11, 2017

When former President Barack Obama said he was “heartened” by anti-Trump protests, he was sending a message of approval to his troops. Troops? Yes, Obama has an army of agitators — numbering more than 30,000 — who will fight his Republican successor at every turn of his historic presidency. And Obama will command them from a bunker less than two miles from the White House

   He’s doing it through a network of leftist nonprofits led by Organizing for Action. Normally you’d expect an organization set up to support a politician and his agenda to close up shop after that candidate leaves office, but not Obama’s OFA. Rather, it’s gearing up for battle, with a growing war chest and more than 250 offices across the country

   Obama is intimately involved in OFA operations and even tweets from the group’s account. In fact, he gave marching orders to OFA foot soldiers following Trump’s upset victory…

    Run by old Obama aides and campaign workers, federal tax records show “nonpartisan” OFA marshals 32,525 volunteers nationwide. Registered as a 501(c)(4), it doesn’t have to disclose its donors, but they’ve been generous. OFA has raised more than $40 million in contributions and grants since evolving from Obama’s campaign organization Obama for America in 2013…

https://nypost.com/2017/02/11/how-obama-is-scheming-to-sabotage-trumps-presidency/

Critics attack Biden for saying 10-15% of Americans ‘are just not very good people’

Is this Joe Biden’s “basket of deplorables” moment?

https://www.marketwatch.com/story/critics-attack-biden-for-saying-10-15-of-americans-are-just-not-very-good-people-2020-06-05

Biden: “Despite a litany of public appeals, from many people including me back in January. Not to let American lives and the US economy on the world. Hang on. His confidence quote the Chinese word.”

https://twitter.com/jason_howerton/status/1268959857274691584

Joe’ speech on Friday was so confounding, the sign language interpreter gave up.

https://twitter.com/FogCityMidge/status/1268956758732533760

Russia Hoax: Nearly Three Dozen Subpoenas Approved for Obama Administration Officials

The Senate Homeland Security Committee authorized subpoena requests for “nearly three dozen” Obama administration officials, reports NBC News. In conjunction, the Judiciary Committee is considering more than 50 additional subpoenas; any action is reportedly postponed until next week… What has been aptly referred to as “unmasking the unmaskers” the Senate Republicans seek to get to the bottom of how Trump campaign and transition officials were “unmasked” such as former national security adviser Michael Flynn…  https://thegreggjarrett.com/russia-hoax-nearly-three-dozen-subpoenas-approved-for-obama-administration-officials/

@charliekirk11: Fact: Robert Mueller’s office deleted 19,000 text messages between Lisa Page and her lover Peter Strzok.  How is that not obstruction of justice? What were they trying to cover up? We still don’t know.  And MSNBC just hired Lisa Page.

@johncardillo: FBI sources telling me that despite Wray’s attendance and words at yesterday’s @TheJusticeDept presser, there is still tremendous resistance from Obama holdovers in the Bureau to aggressive investigation of ANTIFA, with it going as far as outright denial that they’re violent.

Washington Post accused of printing pro-Antifa ‘propaganda’

“In practice, to be an anarchist is to dream of a kinder, more equitable society, and to do one’s best to get us closer to making that dream a reality… The government has shown that it won’t save us. We know that the rich won’t save us. But if we embrace the true spirit of anarchy, maybe, just maybe, we can save ourselves.”…  https://www.foxnews.com/media/washington-post-accused-of-printing-antifa-propaganda

@Barnes_Law: Justice Roberts looks like a complete joke after he approved lockdowns of churches in the name of deferring to the “tough” decisions of Governors & Mayors who now happily join in mass public gatherings just days later when it suits their political aims.

Thousands of protestors, should to shoulder, filled many large US cities on Saturday.  Yet, most of these cities are under social distancing rules, which are clearly capricious.

London was hard hit with violence over the weekend.  Brexit leader @Nigel_Farage on Sunday: A new form of the Taliban was born in the UK today. Unless we get moral leadership quickly our cities won’t be worth living in.

Churchill Statue Vandalised on D-Day Anniversary as BLM Crowd into London

Sir Winston Churchill’s statue in Parliament Square, Westminster has been vandalised on the 76th anniversary of the D-Day landings by Black Lives Matter protesters…

https://www.breitbart.com/europe/2020/06/06/churchill-statue-vandalised-d-day-anniversary-blm-crowd-into-london

 

Not the Onion: BLM Protesters Vandalize Abraham Lincoln Statue In London

http://www.zerohedge.com/political/not-onion-blm-protesters-vandalize-abraham-lincoln-statue-london

@themarketswork: Antonio Gramsci: “Socialism will triumph by first capturing the culture via infiltration of schools, universities, churches and the media by transforming the consciousness of society”  Gramsci, a Marxist theorist, was also a founding member of the Communist Party of Italy.

Antifa and other radical groups are probing to see how far authorities will let them go.  If these groups don’t meet significant resistance soon, they will push the envelope further.

@DonaldJTrumpJr: President Trump joins former President Obama in calling looters “thugs and criminals”   https://twitter.com/DonaldJTrumpJr/status/1269427502033907713

Trump says Biden, ‘radical’ Democrats want to ‘defund the police’ https://trib.al/sMeVGXr

Democrats grapple with U.S. protesters’ demand to defund the police https://reut.rs/30mLJEn

Ex-Acting Dir of Nat’l Security @RichardGrenell: One of the biggest opponents of bringing US troops home was Mattis. He fought hard for the status quo. @realDonaldTrump ran and won the election partly by commitng to this policy. Why would Mattis take the job & then undermine the policy? Because it’s what DC types do. [The generals slamming DJT are largely from the War and Democratic Parties.]

China ‘highly appreciated’ outgoing US Defense Secretary James Mattis, official says   12/27/18

Defense Ministry spokesman Wu Qian said: “(Mattis) made positive efforts in making military-to-military relations a stabilizer in the overall China-US relationship.”… [That’s good enough for us!]

https://amp.cnn.com/cnn/2018/12/27/asia/china-mattis-defense-ministry-intl/index.html

The Bushes and Colin Powell do significant business with China – of course they want Biden to win.

Kleiner Perkins (Private Equity): Former U.S. Secretary of State Colin Powell serves as a strategic advisor to Kleiner Perkins…   https://www.kleinerperkins.com/people/colin-powell/

 

Kleiner Perkins Raises $250M for China Fund   November 04, 2011

https://www.institutionalinvestor.com/article/b150zss6w3lnxg/kleiner-perkins-raises-$250m-for-china-fund

Well that is all for today

I will see you TUESDAY night.

One comment

  1. not me · · Reply

    i understand that you copy and paste the basic report format everyday. but it’s so huge that it’s impossible to go through. change the layout maybe?
    ps,
    impossible to load on mobile

    Like

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