JUNE 9//GOLD UP $16.10 TO $1715.10//SILVER DOWN 6 CENTS TO $17.64//WE INCH CLOSER TO 160 TONNES OF GOLD STANDING AT THE GOLD COMEX//CORONAVIRUS UPDATES//SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1715.10  UP $16.00   The quote is London spot price

 

 

 

 

Silver:$17.64  DOWN 6 CENTS//LONDON SPOT PRICE

 

Closing access prices:  London spot

 

 

 

i)Gold : $1716.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.58//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

 

AUG GOLD:  $1722.10  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $+7.00

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:              $17.81//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      17 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:  272/352

ISSUED: 70

EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,698.300000000 USD
INTENT DATE: 06/08/2020 DELIVERY DATE: 06/10/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 7
072 H GOLDMAN 34
099 H DB AG 50
118 H MACQUARIE FUT 8
152 C DORMAN TRADING 9
190 H BMO CAPITAL 4
323 H HSBC 1
355 C CREDIT SUISSE 78 4
357 C WEDBUSH 9
624 C BOFA SECURITIES 3
657 C MORGAN STANLEY 3 11
657 H MORGAN STANLEY 46
661 C JP MORGAN 70 248
661 H JP MORGAN 24
686 C INTL FCSTONE 50
690 C ABN AMRO 27 5
737 C ADVANTAGE 7
800 C MAREX SPEC 3 3
____________________________________________________________________________________________

TOTAL: 352 352
MONTH TO DATE: 47,475

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 352 NOTICE(S) FOR 35,200 OZ (1.0948 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  47,475 NOTICES FOR 4,747,500 OZ  (147.667 TONNES)

 

 

SILVER

 

FOR JUNE

 

 

14 NOTICE(S) FILED TODAY FOR  70,000  OZ/

total number of notices filed so far this month: 418 for 2,090,000 oz

 

BITCOIN MORNING QUOTE  $9734 DOWN $49

 

BITCOIN AFTERNOON QUOTE.: $9708  DOWN 73

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $16.00 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

TODAY WE HAD A HUGE WITHDRAWAL OF 2.63 TONNES OF GOLD FROM THE GLD//

GLD: 1,125.48 TONNES OF GOLD//

 

WITH SILVER DOWN 6 CENTS TODAY: AND WITH NO SILVER AROUND

 

A HUGE DEPOSIT OF 2.605 MILLION OZ INTO THE SLV

RESTING SLV INVENTORY TONIGHT:

 

SLV: 472.849  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A STRONG SIZED 2220 CONTRACTS FROM 169,232 UP TO 171,452 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH  OUR  HUGE 36 CENT GAIN IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS DUE TO STRONG  BANKER SHORT COVERING PLUS A SMALL EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A GOOD INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 2441 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUMONGOUS AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  MAY: 0 AND JULY: 225  AND SEPT 0 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  225 CONTRACTS. WITH THE TRANSFER OF 225 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 225 EFP CONTRACTS TRANSLATES INTO 1.125 MILLION OZ  ACCOMPANYING:

1.THE 36 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.145  MILLION OF INITIALLY STANDING FOR JUNE

 

MONDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 36 CENTS).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE CONSIDERABLE GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A GOOD INCREASE IN SILVER OZ STANDING FOR JUNE,3) CONSIDERABLE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A STRONG  NET GAIN OF 2441 CONTRACTS OR 12.205 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:

3732 CONTRACTS (FOR 8 TRADING DAY(S) TOTAL 3732 CONTRACTS) OR 18.660 MILLION OZ: (AVERAGE PER DAY: 467 CONTRACTS OR 2.335 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 18.660 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 2.66% 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:          1,084.60 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                   18.660 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 INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2220, WITH OUR STRONG 36 CENT GAIN IN SILVER PRICING AT THE COMEX ///FRIDAY THE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 225 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:  2445 CONTRACTS (WITH OUR 36 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 225 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A LARGE SIZED INCREASE OF 2,220 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A HUGE 36 CENT LOSS IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.70 // MONDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.846 BILLION OZ TO BE EXACT or 121% 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: 2.145 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 1252 CONTRACTS TO 469,893 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 CONSIDERABLE SIZED LOSS OF COMEX OI OCCURRED DESPITE OUR STRONG GAIN IN PRICE  OF $18.70 /// COMEX GOLD TRADING// MONDAY// WE  HAD STRONG BANKER SHORT  COVERING,ANOTHER HUMONGOUS SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A SMALL  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR STRONG GAIN IN PRICE OF $18.70 .

 

WE HAD A VOLUME OF 0  4 -GC CONTRACTS//OPEN INTEREST  8

 

WE GAINED A TINY SIZED 163 CONTRACTS  (0.506 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 1415 CONTRACTS:

CONTRACT  JUNE 0.; AUG 1415 AND ALL OTHER MONTHS ZERO//TOTAL: 1415.  The NEW COMEX OI for the gold complex rests at 469,893. 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 TINY SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 163 CONTRACTS: 1252 CONTRACTS DECREASED AT THE COMEX AND 1415 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 163 CONTRACTS OR 0.506 TONNES. MONDAY, WE HAD A STRONG GAIN OF $18.70 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A SMALL SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 0.505 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $18.70).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL  (SEE BELOW).

4 GC VOLUME: 0  // open interest 8 

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (1415) ACCOMPANYING THE CONSIDERABLE SIZED LOSS IN COMEX OI  (1252 OI): TOTAL GAIN IN THE TWO EXCHANGES:  163 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) CONSIDERABLE COMEX OI LOSS.. AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//MONDAY//$18.70.

 

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 : 20,880 CONTRACTS OR 2,088,000 oz OR 62.86 TONNES (8 TRADING DAY(S) AND THUS AVERAGING: 2969 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 8 TRADING DAY(S) IN  TONNES: 62.86 TONNES

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

THUS EFP TRANSFERS REPRESENTS 62.86/3550 x 100% TONNES =1.77% 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   2879.97  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:                     62.86 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, ROSE BY A STRONG SIZED 2220 CONTRACTS FROM 169,232 UP TO 171,452 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 GAIN IN OI SILVER COMEX WAS DUE TO;   1) CONSIDERABLE BANKER SHORT COVERING , 2) A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A GOOD INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 225 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: 225 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI GAIN  OF 2220  CONTRACTS TO THE 225 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 2445 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 12.225 MILLION  OZ!!! OCCURRED WITH THE 36 CENT gain IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 36 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// MONDAY. WE ALSO HAD A SMALL SIZED 225 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

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

(report Harvey)

 

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 18.54 POINTS OR 0.62%  //Hang Sang CLOSED UP 280.45 POINTS OR 1.13%   /The Nikkei closed DOWN 87.07 POINTS OR 0.38%//Australia’s all ordinaires CLOSED UP 2.39%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0857 /Oil DOWN TO 38.19 dollars per barrel for WTI and 40.65 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0857 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0803 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A TOTALLY UNEXPECTED 1252 CONTRACTS TO 469,893 MOVING FURTHER FROM  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS  COMEX LOSS OCCURRED DESPITE OUR STRONG RISE OF $18.70 IN GOLD PRICING /MONDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (1415 CONTRACTS),.  THUS WE HAD 1) HUGE 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 TINY GAIN ON OUR TWO EXCHANGES OF 163 CONTRACTS DESPITE GOLD’S HUGE RISE IN PRICE. 

 

 

WE AGAIN HAD 0    4 -GC VOLUME//open interest REMAINS AT 8

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF JUNE..  THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 1415 EFP CONTRACTS WERE ISSUED:  1415 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1415 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:  163 TOTAL CONTRACTS IN THAT 1415 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A SMALL 1252 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 HUGE BANKER SHORT COVERING, ACCOMPANYING THE SMALL COMEX OI LOSS,  ANOTHER HUMONGOUS INCREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A STRONG RISE IN COMEX PRICE OF 18.70 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $18.70)AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A SMALL 0.506 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 163 CONTRACTS OR 16,300 OZ OR 0.506 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:  469,893 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 46.93 MILLION OZ/32,150 OZ PER TONNE =  1460 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1460/2200 OR 66.36% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 183,188 contracts//extremely low//most traders have moved to london

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY165,958 contracts//  volume low despite the raid on Friday

 

JUNE 9 /2020

JUNE GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
72,448.310 oz
BRINKS
Deposits to the Dealer Inventory in oz NIL oz

 

 

 

Deposits to the Customer Inventory, in oz  

370,360.564

OZ

BRINKS

DELAWARE

MANFRA

 

INCLUDES

 

3900 KILOBARS

 

No of oz served (contracts) today
353 notice(s)
 35200 OZ
(1.0948 TONNES)
No of oz to be served (notices)
3718 contracts
(371,800 oz)
11.56 TONNES
Total monthly oz gold served (contracts) so far this month
47,475 notices
4747,500 OZ
147.667 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 0 deposit into the dealer

 

total dealer deposits:  NIL  oz

 

total dealer withdrawals: nil oz

we had 3 deposits into the customer account

i) Into Brinks  241,310.35 oz

ii) Into DELAWARE: 3665.214 oz

iii) Into Manfra:  125,385.000 oz (3900 kilobars

 

 

 

 

 

total deposits: 370,360.564    oz

 

 

we had 1 gold withdrawals from the customer account:

 

i) Out of Brinks:  72,448.310 oz

 

 

total gold withdrawals;  72,448.310 oz

We had 1  kilobar transactions  +

 

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

 

 

 

 

ADJUSTMENTS: 1 //    

 

customer to dealer: JPM

400.000 oz adjusted customer to dealer  (exactly 400.000???)

 

 

 

 

 

 

The front month of JUNE registered a total of 4070 oi contracts of a LOSS of 1190 contracts.  We had 1321 notices filed on MONDAY so we gained A STRONG 131 contracts or an additional 13100 oz of gold (0.408 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 64 contracts UP to 3319 contracts.

Next comes August another strong delivery month and here the OI FELL by 1694 contracts DOWN to 329,252 contracts.

 

We had 352 notices filed today for 35,200 oz

 

FOR THE JUNE 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 70 notices were issued from their client or customer account. The total of all issuance by all participants equates to 352 contract(s) of which 24 notices were stopped (received) by j.P. Morgan dealer and 248 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 41 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 (47,475) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (4070 CONTRACTS ) minus the number of notices served upon today (352 x 100 oz per contract) equals 5,119,300 OZ OR 159.23 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 (47,475)x 100 oz + (4070 OI) for the front month minus the number of notices served upon today (352) x 100 oz which equals 5,119,300 oz standing OR 159.23 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 131 contracts or 12,800 oz will stand on this side of the pond.  Issuance of exchange for physicals is SMALL today…  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 353.59 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  11,917,252.732 oz or 370.67 tonnes
which  includes the following:
a) pledged gold held at HSBC   which cannot settled upon   144,088.952 oz x ( 4.4817 TONNES)//
b) pledged gold held at JPMorgan (added March 2020) which cannot be settled upon:  322,144.443 oz (or 10.0200 tonnes)
total pledged gold:
c)  pledged gold at Scotia: 1.3234 tonnes or 42,548.308 oz which cannot be settled  (1.3234 tonnes)
d) pledged gold at Manfra:  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: 11,368,155.0  (353.59 tonnes)
true registered gold  (total registered – pledged tonnes  11,368,155.5 (353.59 tonnes)
total eligible gold:  17,465,017.300 oz (543.23 tonnes)

total registered, pledged  and eligible (customer) gold;   29,382,270.032 oz 913.91 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  787,57 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 9/2020

And now for the wild silver comex results

Total COMEX silver OI FELL BY A STRONG SIZED 2220  CONTRACTS FROM 169,232 UP TO 171,452(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 GAIN TODAY OCCURRED WITH OUR 36 CENT GAIN IN PRICING//MONDAY. WE GAINED A TOTAL OF 2445 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN 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) ZERO  LONG LIQUIDATION,5) STRONG COMEX GAIN IN OI AND ALL OF THIS OCCURRED WITH OUR 36 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE

THE FRONT DELIVERY OF JUNE SAW 25 OPEN INTEREST CONTRACTS STANDING FOR A GAIN OF 6 CONTRACTS.  WE HAD 6 NOTICES SERVED UPON YESTERDAY SO WE GAINED 12 CONTRACT OR AN ADDITIONAL 60,000 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 5413 CONTRACTS DOWN TO 102,817 CONTRACTS. AUGUST SAW ANOTHER GAIN OF 18 CONTRACTS TO 58 OPEN INTEREST CONTRACTS.. THE STRONG DELIVERY MONTH OF SEPT SAW A GAIN OF 6482 CONTRACTS UP TO 44,495

 

 

We, today, had  14 notice(s) FILED  for 70,000 OZ for the JUNE, 2020 COMEX contract for silver

 

JUNE 9/2020

JUNE SILVER COMEX CONTRACT MONTH

 

 

 

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 776,183.669 oz
CNT
DELAWARE

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
288,286.680 oz
CNT
Scotia
No of oz served today (contracts)
14
CONTRACT(S)
(70,000 OZ)
No of oz to be served (notices)
24 contracts
 120,000 oz)
Total monthly oz silver served (contracts)  418 contracts

2,090,000 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  232,913.700 oz

III)  Into CNT:  55,372.980 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: 288,286.680    oz

we had 1 withdrawals:

 

 

i) Out of  CNT  768,141.159 oz

ii) Out of Delaware:  8042.51  oz

 

 

 

 

 

total withdrawals; 776,183.669   oz

We had 0 adjustments

 

 

total dealer silver: 85.401 million

total dealer + customer silver:  314.106 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the JUNE 2020. contract month is represented by 14 contract(s) FOR 70,000 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 418 x 5,000 oz = 2,090,,000 oz to which we add the difference between the open interest for the front month of JUNE.(25) and the number of notices served upon today 14 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 418 (notices served so far) x 5000 oz + OI for front month of JUNE (25)- number of notices served upon today 14) x 5000 oz of silver standing for the JUNE contract month.equals 2,145,000 oz.

We GAINED 12  contracts or an additional 60,000 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: 69,324 CONTRACTS // volume low/

 

 

FOR YESTERDAY: 89,834..,CONFIRMED VOLUME//volume good/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 89,834  CONTRACTS EQUATES to 449 million  OZ 64.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 0.54% ((JUNE 9/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -0.72% to NAV:   (JUNE 9/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.54%

(courtesy Sprott/GATA

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

NAV 16.33 TRADING 16.22///NEGATIVE 0.54

END

 

 

And now the Gold inventory at the GLD/

JUNE 9//WITH GOLD UP $16.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A WITHDRAWAL OF 2.63 TONNES OF GOLD AT THE GLD//INVENTORY RESTS AT 1125.48 TONNES

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 9/ GLD INVENTORY 1125.48 tonnes*

LAST;  837 TRADING DAYS:   +180.56 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 737 TRADING DAYS://+355.74  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 9/WITH SILVER DOWN 6 CENTS TODAY//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.605 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 422.849 MILLION OZ//

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 9.2020:

SLV INVENTORY RESTS TONIGHT AT

472.849 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.34/ and libor 6 month duration 0.48

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

GOLD LENDING RATE: -1.86%

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
+ 2.06%

LIBOR FOR 12 MONTH DURATION: 0.63

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.43%

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

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

USAGold’s ‘News & Views’: Inflation may not be dead; gold demand strong

 Section: 

10:25a ET Monday, June 8, 2020

Dear Friend of GATA and Gold:

USAGold’s June “News & Views” newsletter challenges the prevailing market opinion that deflation will be ruling the world and that inflation is finished.

The letter also notes that gold demand is strong among financial institutions, central banks, and individual investors, and that the monetary metals have performed better than the Dow Jones Industrial Average so far this year.

USAGold’s June “News & Views” letter is posted in the clear here:

https://www.usagold.com/cpmforum/nv1019june2020/

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

END

Stephen Roach now is banging the table that the crash on the dollar is coming

(Bloomberg/Stephen Roach/GATA)

Stephen Roach: A crash in the dollar is coming

 Section: 

The author is an economist, senior fellow at Yale University’s Jackson Institute for Global Affairs, and a senior lecturer at the Yale School of Management. He was formerly chairman of Morgan Stanley Asia and chief economist at Morgan Stanley, the New York-based investment bank.

* * *

By Stephen Roach
Bloomberg News
Monday, June 8, 2020

The era of the U.S. dollar’s “exorbitant privilege” as the world’s primary reserve currency is coming to an end. In the 1960s French Finance Minister Valery Giscard d’Estaing coined that phrase largely out of frustration, bemoaning a United States that drew freely on the rest of the world to support its overextended standard of living.

For almost 60 years, the world complained but did nothing about it. Those days are over.

already stressed by the impact of the Covid-19 pandemic, U.S. living standards are about to be squeezed as never before. At the same time, the world is having serious doubts about the once widely accepted presumption of American exceptionalism.

Currencies set the equilibrium between these two forces — domestic economic fundamentals and foreign perceptions of a nation’s strength or weakness. The balance is shifting, and a crash in the dollar could well be in the offing. …

… For the remainder of the commentary:

https://www.bloomberg.com/opinion/articles/2020-06-08/a-crash-in-the-dol…

end

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0857/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0803   /shanghai bourse CLOSED UP 18.34 POINTS OR 0.62%

HANG SANG CLOSED UP 280.45 POINTS OR 1/13%

 

2. Nikkei closed DOWN 87 POINTS OR 0.38%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 96.81/Euro FALLS TO 1.1283

3b Japan 10 year bond yield: FALLS TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.85/ 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:: 38.19 and Brent:  40.65

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.32%/Italian 10 yr bond yield DOWN to 1.43% /SPAIN 10 YR BOND YIELD DOWN TO 0.57%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.75: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.42

3k Gold at $1714.10 silver at: 17.71   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 10/100 in roubles/dollar) 68.83

3m oil into the 38 dollar handle for WTI and 40 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 108.16 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 .9542 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0766 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 0.32%

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 0.83% early this morning. Thirty year rate at 1.59%

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

6.  TURKISH LIRA:  UP  TO 6.8049..

Futures Tumble As Historic Rally Fizzles; Treasurys, Dollar Jump

After hanging around at 3-month highs well into the overnight session, U.S. equity futures took a sharp leg lower around the time Europe opened, sliding back under 3,200 along with European stocks on worries that the historic rally in risk assets has overshot the economic recovery giving back some of the gains from the recent historic rally after the Nasdaq notched a record closing high in the previous session, with focus now on the Federal Reserve’s two-day policy meeting. Treasuries advanced with gold and the yen.

The drop comes one day after the Nasdaq hit a fresh record closing high on Monday, while the S&P 500, which is about 5% below its own all-time high, also erased its year-to-date losses.

Declines in the U.S. premarket were broad, hitting many of the “value” stocks that had soared in recent days, ranging from cruise lines to oil drillers: American Airlines, United Airlines Holdings, Alaska Air and Marriott International all dropped between 4.5% and 9.0% in early trading after surging on Monday following another retail rush. Soon to be bankrupt Chesapeake tumbled by more than 50% following a Bloomberg reported it was preparing to file for Chapter 11; even bankrupt Hertz dropped and now sports a market cap of only $700 million or so. Macy’s rose 5.8% after raising $4.5 billion in financing, as it tries to navigate through the fallout from the COVID-19 pandemic.

In Europe, the Eurostoxx 50 dropped as much as 1.8%, with FTSE MIB and IBEX underperforming peers. The Stoxx 600 Banks Index slumped as much as 5.1% on Tuesday, the biggest drop in two months. Losses were broad, as cyclical sectors all dropped with banks, autos, oil and construction among the weakest sectors, while health care and food outperform. The decline comes after strong gains over the past two weeks that pushed the banking index up 24%.

Asian stocks gained, pushed higher by Monday’s US momentum, led by finance and consumer staples. Markets in the region were mixed, with Australia’s S&P/ASX 200 and Hong Kong’s Hang Seng Index rising, and Thailand’s SET and Jakarta Composite falling. The Topix declined 0.1%, with Asahi Broadcasting Group and Mynet falling the most. The Shanghai Composite Index rose 0.6%, with Chengdu B-Ray Media and Hangzhou Jiebai Group posting the biggest advances

As Bloomberg notes, “after a record-breaking rally that added $21 trillion to global stock markets, valuations look now stretched and technical indicators suggest a pullback is overdue. The World Bank warned the economy will contract the most since World War II this year, reducing incomes and sending millions of people into poverty in emerging and developing nations.”

“There are a lot of unknowns that we are dealing with despite the fact that normalizations of economic activities are still on track,” said Value Partners manager Frank Tsui. “There are still a lot of unknown factors.”

While no major policy announcements are expected when the U.S. central bank wraps up its meeting on Wednesday, policymakers will issue economic projections for the first time since December, before a decade-long economic expansion was brought to a grinding halt due to coronavirus-induced lockdowns. Last week’s strikingly strong employment data for May strengthened views that the worst of the economic fallout from the pandemic was over, and is also expected to be discussed at the meeting. On Monday, the Fed expanded its Main Street Lending Program, allowing more companies to participate and lessening the burden on banks that create the loans, confirming that America’s small businesses are getting crushed.

In rates, Treasuries jumped with yields falling 1-6 basis points across the curve, the 10Y sliding just above 0.80%, bull-flattening for second consecutive session. Cash volumes have been light, however, especially in long maturities. According to Bloomberg, the bull-flattening eroded profit in curve steepeners, a popular trade ahead of Wednesday’s FOMC meeting. Yields richer by 1bp to 7bp across the curve led by 20- and 30- year sectors, flattening 5s30s by 3.2bp and 2s10s by 3.5bp; 10- year yields lower by 4.4bp at ~0.83% with bunds, gilts both cheaper by around 4bp. Treasury auction cycle resumes with $29b 10-year reopening at 1pm ET, concludes with $19b 30-year reopening Thursday, with FOMC meeting intervening on Wednesday. A gauge of European junk-grade credit risk increased the most since April.

In FX, the dollar rose against a basket of currencies for the first time in nine days. The Bloomberg Dollar Spot Index ended its longest losing streak since 2011 as the greenback rose against most Group-of-10 peers ; the euro edged lower, to trade below 1.13 per euro dollar and bunds edged higher. The pound fell against the dollar after an eight-day winning streak for the currency looked to have taken it far enough, and wider risk appetite faded on global markets. Norway’s krone plunged as oil prices slumped. Japan’s currency rose against all its Group-of-10 peers and staged its biggest 2-day rally against the greenback in more than two months after a decline in stocks in Tokyo prompted traders to cover short yen positions. The Australian dollar swung to a deep loss against the greenback after climbing to the highest level this year, dragged lower by the yen’s surge.

In commodities, the energy complex continued to leak in the aftermath of the OPEC+ meeting as players question the enforcement (or not) of the agreed upon output cuts with laggards such as Iraq already hinting as difficulties on overcompliance. Further, some traders also cite a “buy the rumour, sell the fact” playbook given the rally in the complex heading into the meeting. Meanwhile, BP’s demand-driven job cuts yesterday added further weighed on prices. Elsewhere, in Libya, source reports noted that El-Sharara’s production has again been shuttered by armed men ordering employees to stop working – which comes just two days after the restart and lift of force majeure on exports (now reimposed), albeit the oilfield was only producing at a tenth of its 300k BPD full capacity – which was expected to be reached within 90 days

Expected data include wholesale inventories. Tiffany and Chewy are reporting earnings

Market Snapshot

  • S&P 500 futures down 1% to 3,196.25
  • STOXX Europe 600 down 1.2% to 369.75
  • MXAP up 0.4% to 161.06
  • MXAPJ up 0.5% to 517.26
  • Nikkei down 0.4% to 23,091.03
  • Topix down 0.1% to 1,628.43
  • Hang Seng Index up 1.1% to 25,057.22
  • Shanghai Composite up 0.6% to 2,956.11
  • Sensex down 0.4% to 34,228.05
  • Australia S&P/ASX 200 up 2.4% to 6,144.95
  • Kospi up 0.2% to 2,188.92
  • German 10Y yield fell 1.9 bps to -0.338%
  • Euro down 0.4% to $1.1247
  • Italian 10Y yield fell 0.7 bps to 1.234%
  • Spanish 10Y yield rose 0.8 bps to 0.556%
  • Brent futures down 1.8% to $40.07/bbl
  • Gold spot up 0.5% to $1,706.57
  • U.S. Dollar Index up 0.5% to 97.06

Top Overnight News from Bloomberg

  • Demand for government bonds is showing no signs of letup, with Ireland securing record investor demand despite a host of countries, including the U.K., selling debt
  • Prime Minister Boris Johnson will talk his cabinet through his plans for easing the U.K.’s lockdown on Tuesday after officials reported the lowest number of daily deaths since restrictions were imposed
  • German exports plunged at a record pace in April when economies around the world shut down to contain the coronavirus
  • French economic output will take two years to recover from the virus-related slump that that will inflict even longer lasting damage on the labor market, the country’s central bank said
  • Deflation is back on the minds of European Central Bank officials, presaging battles for President Christine Lagarde over whether the euro zone needs yet more monetary stimulus.
  • Japan’s famously low- yielding bonds hold surprising appeal for Australian investors, thanks to how cheap the yen is in funding markets. Investors holding Australian dollars can generate healthy returns on 10- year and 30-year JGBs using cross-currency basis swaps

The risk tone across the Asia-Pac region was mostly positive with the regional bourses spurred by the firm handover from Wall St where the DJIA led the respectable gains across the major indices and the Nasdaq printed a fresh record high as there wasn’t much to derail the ongoing reopening and recovery narrative. Furthermore, the S&P 500 turned positive YTD and all sectors closed in the green with substantial gains seen in energy names following the OPEC+ output cut extension, despite an actual pullback in oil prices that was attributed to participants selling the news and concerns regarding compliance issues. ASX 200 (+2.4%) and Nikkei 225 (-0.4%) traded mixed with Australia the outperformer as it played catch up on return from the holiday closure and with gains spearheaded by financials and energy, while the Japanese benchmark lagged as exporters suffered from the ill effects of a stronger currency. The KOSPI (+0.2%) was subdued after North Korea announced to sever communication with South Korea completely from today and with index heavyweight Samsung Electronics failing to hold on to most the opening gains despite the court ruling to reject the arrest of de facto head Jay Y. Lee. Elsewhere, Hang Seng (+1.1%) climbed back above the 25k milestone with the government planning to bailout Cathay Pacific through a HKD 30bln loan and the Shanghai Comp. (+0.6%) conformed to the predominantly upbeat tone after the PBoC resumed its liquidity efforts, albeit with a reserved CNY 60bln injection. Finally, 10yr JGBs extended on this week’s rebound amid a similar recovery in USTs and underperformance of Japanese stocks, but with upside capped amid the lack of BoJ presence in the market today.

Top Asian News

  • Japan Low-Yield Bonds Have Surprise Appeal for Aussie Funds
  • China Urges Students to Assess Risks of Studying in Australia
  • How Covid Upended 20 Million Lives in India’s Finance Hub

European stocks continue to deteriorate with downside exacerbated since the European cash open [Euro Stoxx 50 -2.0%] as investors side-line the recent Central bank/reopen-induced rally and fixate on the backdrop of skittish US-Sino rhetoric, potential second wave as lockdown measures ease and amid Western protests/riots. An argument could also be built for profit-taking at near pre-COVID highs ahead of immediate risk events such as the FOMC meeting and the Eurogroup summit. Sectors are mostly in the red with underperformance in energy and financials amid the deterioration in energy prices and yields, whilst broader sectors point to a more risk averse session and defensives fare better – particularly healthcare. The detailed breakdown paints a similar picture Travel & Leisure also bearing the brunt of risk aversion. In terms of individual movers, the session kicked off with the French aerospace sector significantly higher amid France unveiling a EUR 15bln package for the sector vs. Exp. EUR 10bln, albeit the likes of Airbus (-6.6%), Thales (-2.9%) and Safran (-3.5%) have since conformed to the broader risk tone. Meanwhile, British American Tobacco (-4.5%) extended on losses after trimming its FY guidance and pointing to low growth.

Top European News

  • VW Board Infighting Rocks Carmaker Struggling With Virus Crisis
  • Deflation Fears at ECB Mean Stimulus Battles Ahead for Lagarde
  • Ireland Gets Record 50 Billion Euros of Orders in Bond Sale
  • SocGen Signals Mixed Second Quarter as Tough Market Endures

In FX, not the biggest G10 move today, but Usd/Jpy has now reversed in excess of 2 big figures from post-NFP highs alongside similar pronounced retracements in Eur/Jpy and other Yen crosses as risk appetite evaporates amidst further re-flattening in debt markets. The headline pair is back down below 108.00 and a key technical level (200 DMA at 108.44), with the 50 DMA (107.65) exposed ahead of last Tuesday’s 107.51 low as safe-haven demand picks up generally to the benefit of Gold (over Usd 1700/oz again) and the Swiss Franc (Usd/Chf testing 0.9550 and Eur/Chf 1.0750 after breaching its 200 DMA – 1.0769). Back to the Yen, no adverse reaction to S&P cutting Japan’s A+ ratings outlook to stable from positive.

  • AUD/NZD/CAD – The aforementioned deterioration in risk sentiment on rising Chinese-US/Australian tensions, NK terminating official lines of communication with SK and crude prices unwinding more OPEC+ extension gains, has hit the high beta Aussie and Kiwi particularly hard, even though independent impulses via improvements in NAB and ANZ business surveys overnight may otherwise be supportive. Indeed, Aud/Usd has pulled back around 150 pips to sub-0.6900 and Nzd/Usd is losing grip of 0.6500 after extending gains on the handle to around 0.6580, albeit Aud/Nzd still trending lower towards 1.0750 in the run up to NZ Q1 manufacturing sales. Meanwhile, the Loonie has handed back a chunk of its recent oil-powered upside vs the Greenback with Usd/Cad rebounding from circa 1.3359 to 1.3487 ahead of the FOMC on Wednesday, and this along with an element of broader risk-off positioning is keeping the DXY afloat near 97.000.
  • NOK/GBP/SEK/EUR – All weaker, albeit to varying degrees, as the Norwegian Krona underperforms in wake of another bleak Norges Bank regional survey and the correction in crude, while Sterling and the Swedish Crown are undermined by cross selling against the Yen and the overall bearish tone, but the Euro holds up bit better vs the Dollar in consolidative trade. Eur/Nok has bounced firmly following a more concerted test of the 200 DMA, Cable is back under 1.2650 after failing to sustain 1.2750+ status, Eur/Sek is back above 10.4000 and Eur/Usd is trying to keep afloat within a 1.1314-1.1242 range.
  • EM – In contrast to widespread reversals vs the Usd, the Try is just staying north of 6.8000 by virtue of Turkey finally ending years of isolation from Euroclear for bond settlements and joining the international platform.

In commodities, the energy complex continues to leak in the aftermath of the OPEC+ meeting as players question the enforcement (or not) of the agreed upon output cuts with laggards such as Iraq already hinting as difficulties on overcompliance. Further, some traders also cite a “buy the rumour, sell the fact” playbook given the rally in the complex heading into the meeting. Meanwhile, BP’s demand-driven job cuts yesterday added further weighed on prices. Elsewhere, in Libya, source reports noted that El-Sharara’s production has again been shuttered by armed men ordering employees to stop working – which comes just two days after the restart and lift of force majeure on exports (now reimposed), albeit the oilfield was only producing at a tenth of its 300k BPD full capacity – which was expected to be reached within 90 days. All-in-all, the OPEC fallout and deteriorating risk sentiment sees WTI July back below USD 38/bbl and closer to USD 37/bbl (vs. high USD 38.86/bbl) , whilst Brent suffers and has breached USD 40/bbl to the downside (vs. high 41.45/bbl). Participants today will be eyeing the monthly EIO STEO – with focus on their estimates for US oil production – the prior report estimated an average output of 11.7mln BPD in 2020 and 10.9mln BPD in 2021. Meanwhile, the weekly Private Inventory data could also offer some short-term volatility in prices. Turning to metals, spot gold continues to gain ground above USD 1700/oz amid risk aversion despite the firmer Buck as investors flee to the safe haven metal, with geopolitical tensions between North Korea/South Korea coupled with Aussie-Sino strains also underpinning the yellow metal. Copper prices are pulling back in tandem with the stock markets and broader sentiment, but prices remain comfortably north of USD 2.5/lb at present.

US Event Calendar

  • 6am: NFIB Small Business Optimism, est. 92.5, prior 90.9
  • 10am: JOLTS Job Openings, est. 5,750, prior 6,191
  • 10am: Wholesale Inventories MoM, est. 0.4%, prior 0.4%; Wholesale Trade Sales MoM, est. -2.0%, prior -5.2%

DB’s Jim Reid concludes the overnight wrap

Yesterday we officially waved goodbye to the longest US cycle in history as the National Bureau of Economic Research declared that the US has been in a recession since February, thus ending a 128 month expansion. Whilst we’ll never know what would have happened if Covid-19 had not occurred, it’s fascinating that the best predictor of recessions, namely the US yield curve, has struck again. More by luck than judgement this time but the cycle did look increasingly stretched beforehand so this cycle may not have had much life left in it anyway. However it sums the current financial world up perfectly at the moment when on the day we get the official recession word, the NASDAQ hit a new record high and the S&P 500 erased all its declines for 2020. Looking at these indices you’d be forgiven for wondering what all the fuss has been about in 2020.

Looking at the moves in more depth, the S&P 500 closed up +1.20% (+0.05% YTD now), while the NASDAQ climbed +1.13% on the day. The Dow Jones was a big out-performer with a +1.70% advance, driven by Boeing’s +12.20% move. The rotation of recent days was in full effect as cyclicals like Energy (+4.32%) and Banks (+2.78%) were among the best performing industries, while semiconductors (-0.26%) were the only industry group lower yesterday.

About a half hour before US markets closed, the Fed announced that their “Main Street” program, which will open soon to eligible lenders, would be available to more businesses. This seemed to drive the last half percentage point of the rally last night. In terms of details, the central bank lowered loan minimums to $250,000 from $500,000 while extending the loan term to five years from four. Also businesses in the program will be able to defer principal payments on their loans for two years, up from the previously announced one. And finally, in a step meant to incentivize greater participation from banks, lenders will only be required to hold 5% of the loans on their balance sheet, while previously it had been 15%. As a reminder, the Main Street facilities are backed by a $75 billion investment from the Treasury, which is part of the $454bn allocated by Congress in the CARES Act for the Fed’s emergency-lending programs.

Over in Europe there was a bit more of a subdued picture after an impressive run. The STOXX 600 was down -0.32%, with the DAX (-0.22%), CAC 40 (-0.43%) and the FTSE 100 (-0.18%) all losing ground yesterday. European banks were the best performing sector in the index though, up +1.97%, as cyclicals continued to outperform on both sides of the Atlantic.

Markets are a bit more mixed in Asia overnight with the Nikkei (-0.68%) and Kospi (-0.30%) down while the Hang Seng (+1.30%) and Shanghai Comp (+0.47%) are up. Not helping sentiment is news that North Korea will shut down a liaison office it shares with South Korea and sever other official communication including a leaders’ hotline. The country cited that South Korean authorities have “connived” to carry out “hostile acts” against the country. The KCNA also reported that “this measure is the first step of the determination to completely shut down all contact means with South Korea and get rid of unnecessary things.”

That seems to have helped fuel a bid for the Yen (+0.32%) while all other G-10 currencies are trading weak against the greenback. Meanwhile, yields on 10y USTs are down -3.3bps to 0.843% and futures on the S&P 500 are down -0.17%. Elsewhere, WTI crude oil prices are up 1% this morning to $38.58. In terms of overnight data releases the UK’s May BRC like for like sales surprised to the upside with print at +7.9% yoy (vs. +3.0% yoy expected and +5.7% yoy last month).

Back in Europe, we also got some headlines from ECB President Lagarde’s appearance before the European Parliament’s economic and monetary affairs committee. Perhaps the main news was on the German constitutional court though, which as you’ll know has asked the ECB to carry out a proportionality assessment of their public sector purchase programme. In her introductory statement, it was notable that Lagarde explicitly echoed this language, saying that the ECB’s “crisis-related measures are temporary, targeted and proportionate”, and also that “the ECB continually monitors the proportionality of its instruments.” Lagarde also called the net effects of last week’s expansion of the PEPP by a further €600bn “overwhelmingly positive.”

Against this backdrop, market inflation expectations for the Euro Area hit a 3-month high yesterday, with five-year forward five-year inflation swaps rising to 1.09%. Similarly, inflation expectations in the US rose +3.9 bps yesterday to 1.89%. Our US economics team published a report yesterday, where they see the Covid-19 shock generating severe disinflationary pressure in the near-term, but then recovering to near the Fed’s 2% target. See their paper here for more

Meanwhile, sovereign debt advanced both in Europe and the US yesterday after the recent sell-off, with yields on 10yr bunds falling by -4.2bps to -0.32% and US treasury yields down -2.0bps to 0.875%. There was a slight widening in peripheral bond spreads, with the spreads of 10yr yields on both Italian (+3.4bps) and Spanish (+3.2bps) debt over bunds widening marginally following the big tightening seen last week.

One of the big moves yesterday came from oil, where Brent crude snapped a run of 7 successive advances to fall -3.55% following an announcement from Saudi Arabia that they wouldn’t maintain their deeper cuts on output after this month, as well as a move from Libya to resume exports from their largest oil field. Brent now stands at $40.80/bbl, while WTI also declined -3.44% to $38.19/bbl.

There wasn’t a great deal of data out yesterday, though German industrial production fell by -17.9% in April (vs. -16.5% expected), following a revised -8.9% decline in March. The move puts the year-on-year decline for April at -25.3%, which to put that in perspective is above the peak -21.8% annual decline following the GFC in April 2009. Meanwhile in Canada, May’s housing starts rose to 193.5k on an annualised basis (vs. 160.0k expected).

To the day ahead, and data highlights in Europe include the German and French trade balance for April, as well as the final estimate of the Euro Area’s GDP in Q1. Over in the US, there’s also the NFIB small business optimism index for May, and April job openings. Separately, we’ll hear from the ECB’s Rehn, and the BoE’s Cunliffe.

 

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 18.54 POINTS OR 0.62%  //Hang Sang CLOSED UP 280.45 POINTS OR 1.13%   /The Nikkei closed DOWN 87.07 POINTS OR 0.38%//Australia’s all ordinaires CLOSED UP 2.39%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0857 /Oil DOWN TO 38.19 dollars per barrel for WTI and 40.65 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0857 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0803 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

North Korea

Seems that North Korea is under what pressure whether they have been hit with the COVID 19 or sanctions against them. They need some help from the west.

(zerohedge)

North Korea Assumes ‘Warlike’ Posture, Cuts Off All Contact With South

Virtually overnight, the thaw in inter-Korea relations apparently ended, and hostility reemerged, as the North Korean leadership announced plans to cut off all communications, including an emergency hotline, in retaliation against South Korea allowing defectors to send propaganda leaflets back across the border.

For several days, North Korea has lashed out at the South Korea over the defector leaflets, which have been a semi-permanent feature of inter-Korea relations, and have long angered Pyongyang.

Over the past few days, the North threatened to close an inter-Korean liaison office and other projects if the South does not stop defectors from sending leaflets and other material into the North. Several leaders quoted in the North Korean press said the “work” toward the south should change into “one against an enemy.”

Top government officials in North Korea, including leader Kim Jong Un’s sister, Kim Yo Jong, and Kim Yong Chol, vice-chairman of the Central Committee of the ruling Workers’ Party of Korea, determined “that the work towards the South should thoroughly turn into the one against an enemy,” KCNA said.

Officials began cutting communication lines at noon Tuesday (about 7 hours ago).

As a first step, at noon on Tuesday, North Korea will close lines of communication at an inter-Korean liaison office, and hotlines between the two militaries and presidential offices, the report said.

On Tuesday morning, North Korean officials did not answer a routine daily call to the liaison office, nor calls on military hotlines, a South Korean defence ministry spokeswoman told a briefing.

The routine calls between South and North Korea should be maintained as they are basic means of communication, said the South’s unification ministry, responsible for inter-Korean affairs.

The ministry said it will continue to follow the agreed principles and strive for peace and prosperity on the Korean Peninsula.

On Monday morning, North Korea did not answer the liaison phone call for the first time since 2018, though it later answered an afternoon call.

Though the North hasn’t confirmed a single COVID-19 case, many suspect that the outbreak has ravaged the North Korean economy while international sanctions continued to bite. One expert says the decision to cut off communication – “a well-worn tactic” – is a sign the North is trying to extract some relief from its neighbor.

Analysts said the move is likely about more than the defectors, as North Korea is under increasing economic pressure as the coronavirus crisis and international sanctions take their toll.

“North Korea is in a much more dire situation than we think,” said Choo Jae-woo, a professor at Kyung Hee University “I think they are trying to squeeze something out of the South.”

“Cutting communications is “a well-worn play for Pyongyang,” but one that can be dangerous, Daniel Wertz, of the U.S.-based National Committee on North Korea, said on Twitter.

“Regular communication channels are needed most during a crisis, and for that reason North Korea cuts them off to create an atmosphere of heightened risk,” he said.

The people of North Korea have “been angered by the treacherous and cunning behaviour of the South Korean authorities, with whom we still have lots of accounts to settle,” KCNA said.

The report accused South Korean authorities of irresponsibly allowing defectors to hurt the dignity of North Korea’s supreme leadership.

“We have reached a conclusion that there is no need to sit face to face with the South Korean authorities and there is no issue to discuss with them, as they have only aroused our dismay,” KCNA said.

The decision follows a recent incident where Kim Jong Un, the supreme leader of North Korea, disappeared for weeks, prompting speculation that he was deathly ill.

 

b) REPORT ON JAPAN

 

3 C CHINA

China/USA

China warns the USA not to engage in nuke testing

(zerohedge)

China Warns US: “Abandon Plans” For Nuke Testing Or Risk “Undermining Global Stability”

Just over two weeks ago The Washington Post revealed that “the Trump administration has discussed whether to conduct the first US nuclear test explosion since 1992.”

It was said to have been under serious discussion during a May 15 “deputies meeting” of senior national security officials at the White House – and though doesn’t appear to currently be something seriously pursued – the possibility remains “very much an ongoing conversation,” according to a senior admin official.

While all eyes were initially on Russia’s reaction, the Chinese Foreign Ministry has belatedly issued a response, warning Washington in a press briefing on Monday that it must abide by its international obligations and abandon any possible plans to carry out nuclear tests.

 

Nuclear missile on display at the Military Museum in Beijing, AFP/Getty.

“We insist that the United States should strictly abide by its obligations to end nuclear testing… and we hope that it will listen to the international community,” ministry spokesperson Hua Chunying said“The US should abandon plans that could undermine global stability and strategic order,” she added.

Emphasizing Beijing has repeatedly urged the US to honor its commitments, the top diplomat continued: “The US needs to contribute to international cooperation to ensure disarmament and the non-proliferation of weapons of mass destruction.”

However, the administration is sure to shrug off these words and hit back, given it’s lately repeatedly accused China and Russia of ‘illegally’ conducting low-yield nuclear tests, which both countries have denied. In Beijing’s case it’s believed China’s military is able to conceal such provocative tests at an elaborate underground testing facility. 

There hasn’t been an American nuclear test (that’s officially known about at least) since 1992, upon the end of the Cold War and collapse of the USSR in the year prior. But there are signs we could all soon witness a new provocative test given landmark weapons treaties with Moscow are fast being shed, also as Trump might entertain using nuke tests as powerful “leverage” for desired negotiations “for a better deal” – as he’s said in the past.

The Japan Times

@japantimes

Trump envisions a three-way nuclear pact. China has other ideas http://jtim.es/GDQh30qLSfw

Trump envisions a three-way nuclear pact. China has other ideas | The Japan Times

Washington takes aim at Beijing’s atomic ambitions as Trump administration vows to craft ‘new era of arms control’

japantimes.co.jp

All of this leaves the potential for a new global arms race centered on nukes, given at this point Beijing, Moscow, and Washington are already trading warnings to step back from the brink of nuclear testing.

Meanwhile Beijing has shown itself resistant to Trump’s floating the idea of a new nuclear weapons pact involving China. He dumped the INF in part because it failed to take into a account developing Chinese missile technology and capabilities, according to admin officials.

end

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

This is very worrisome: a locust plague has put millions on the brink of famine

(Michael Snyder)

A ‘Biblical’ Locust Plague Has Put Millions On Brink Of Famine

Authored by Michael Snyder via The Economic Collapse blog,

Billions upon billions of voracious desert locusts are ravenously devouring crops over a vast portion of the globe that stretches from eastern Africa all the way to India.  This unprecedented plague was supposed to be subsiding by now, but instead a fourth generation of locusts has emerged that is producing swarms that are “up to 8,000 times larger” than what we witnessed earlier this year.  Some of these swarms are the size of major cities, they can travel up to 150 kilometers a day, and when they descend upon a farm they can literally eat everything there in as little as 30 seconds.  Because these swarms are not affecting the United States, most Americans don’t understand the immense devastation that is happening on the other side of the globe right now.  The UN is warning that mass starvation is coming, and we are being told that it is going to begin by the end of this calendar year.

Each desert locust is very small, but collectively they can consume vast amounts of food.  According to the UN, a swarm that contains between 40 and 80 million locusts can eat “the same amount of food in a day as three million people”.

And it is important to remember that colossal swarms of locusts have been destroying countless farms day after day for many months.  What we have already witnessed is enough to constitute a major global emergency, and now the International Rescue Committee is telling us that this latest generation of locusts is the worst of them all by far…

“A fourth generation of desert locusts up to 8,000 times larger than previous swarms could destroy crops at the start of the hunger season and leave millions facing food insecurity and famine,” explained the aid organization in a statement.

When these swarms of locusts approach an area, they can be so thick that they literally block out the sun.  Authorities have been spraying them with pesticides from the sky, but when you are talking about countless millions of locusts in a single swarm, killing thousands of them doesn’t exactly make too much of a dent.

In past articles about these locusts, I have focused on the widespread destruction that we have been witnessing in Africa, and without a doubt we will see widespread famine across much of the eastern portion of that continent.

This new generation is hitting Africa again, but what has surprised many experts is how hard it is also hitting Pakistan and India.

British news source is using the term “biblical” to describe the infestation that Pakistan is facing, and the Pakistani government was recently forced to declare a national emergency because of the locusts…

Tens of millions of people are set to face food shortages on the continent after a plague of locusts embarked on a path of destruction across India and Pakistan. In Pakistan, a national emergency has been declared after an outbreak of locusts’, on a biblical scale, wreaked havoc across farmland in the eastern Punjab, southern Sindh and southwestern Baluchistan provinces.

Over in India, one expert is saying that these locusts are unlike anything that his nation has ever seen before

Bhagirath Choudhary, director of the New Delhi-based South Asia Biotechnology Centre, an agriculture think-tank said: “We have never, ever seen what we have in the last six months in India – never in the history.”

Sadly, most Americans don’t even know that this is happening.

Here in the United States, the mainstream media has been so focused on COVID-19 and all of the civil unrest that has erupted, but this gigantic locust plague should be making front page headlines too.

At this point, things have gotten so bad that the executive director of the UN World Food Program is warning that we are facing “the worst humanitarian crisis since World War Two”, and he has publicly stated that hundreds of thousands of people will soon be starving to death every day

“If we can’t reach these people with the life-saving assistance they need, our analysis shows that 300,000 people could starve to death every single day over a three-month period”, he upheld. “This does not include the increase of starvation due to COVID-19”.

Thankfully, we are not facing imminent starvation here in the United States.

But that doesn’t mean that everything is okay.

In fact, one brand new survey has found that an increasing number of Americans are skipping meals or reducing the size of their meals now that economic conditions have greatly deteriorated…

“One in four Americans (26%) say they or a member of their household have skipped meals or relied on charity or government food programs since February, including 14% who say they have reduced the size of meals or skipped meals because there wasn’t enough money for food, 13% who have visited a food bank or pantry for meals, and 13% who have applied for or received SNAP benefits,” the survey said.

Many Americans have been taking last Friday’s jobs report as a sign that things will soon turn around, but it turns out that the report was not nearly as rosy as many thought.

In the report, the BLS actually admits that a major “misclassification error” severely skewed the numbers and that the real rate of unemployment is actually about 16.3 percent

When the U.S. government’s official jobs report for May came out on Friday, it included a note at the bottom saying there had been a major “error” indicating that the unemployment rate likely should be higher than the widely reported 13.3 percent rate.

The special note said that if this “misclassification error” had not occurred, the “overall unemployment rate would have been about 3 percentage points higher than reported,” meaning the unemployment rate would be about 16.3 percent for May.

And according to John Williams of shadowstats.com, if honest numbers were being used and if the numbers were corrected for BLS errors, the real rate of unemployment in the U.S. would currently be sitting at 36.5 percent.

So no, things are not good at all.

But at least locusts are not eating all of our crops and our population is not on the brink of starvation.

We should be thankful for the blessings that we still have, and we should use the time that we have to prepare for what else is ahead, because the truth is that this “perfect storm” is just getting started.

end

CORONAVIRUS UPDATE/THE GLOBE/USA ET AL

Nearly Half US States Report Record Rise In COVID-19 Cases As Global Total Tops 7 Million: Live Updates

Last night, we shared the findings from a bombshell report which found that hospital foot traffic and COVID-19-related search terms surged in Wuhan and the surrounding area as early as October or November, suggesting that the virus might have already been spreading in Wuhan for months before China informed the WHO on New Year’s Eve about the “newly discovered” virus.

Beijing infamously withheld evidence of human-to-human transmission until later in January, when it finally alerted the international community, kicking off the global coronavirus crisis in earnest as the initial round of projections warned that millions could perish, setting off the global panic.

By that time, as we’ve reported in the past, China probably had enough of a head start to gobble up all of the PPE and other critical medical supplies in the world, which would help explain the baffling shortages that confronted American consumers during the first weeks of the outbreak, with some claiming that shortages of popular goods like cleaning supplies and toilet paper persist in some places, or regularly reoccur.

Adding even more confusion to the global conversation (not that anybody cares about the coronavirus anymore, now that the progressives who were hysterically decrying the risks of reopening are crowding together in the streets), a WHO scientist last night discussed new research suggesting asymptomatic carriers of the virus – previously believed to be a primary driver of the virus’s spread – actually aren’t all that dangerous. If these findings are confirmed, it would suggest that contact tracing has little value in the late stages of an outbreak, though it could be a game-changer during the early weeks, when successful containment remains possible.

With futures markets pointing toward a lower open in the US, the Washington Post warns that 14 states and Puerto Rico have seen their 7-day average for the number of new cases being reported climb to their highest levels since the outbreak began. Yesterday, we noted the WSJ story highlighting the finding that rural areas with large numbers of people living in the same houses saw outbreaks that were in many cases more severe than more densely populated areas, suggesting transmission between members of the same household remains the primary means of spread, which, if anything, suggests that markets and the general public is underestimating the potential of these outbreaks in more rural states.

Since the start of June, 14 states and Puerto Rico have recorded their highest-ever seven-day average of new coronavirus cases since the pandemic began, according to data tracked by The Washington Post: Alaska, Arizona, Arkansas, California, Florida, Kentucky, New Mexico, North Carolina, Mississippi, Oregon, South Carolina, Tennessee, Texas and Utah.

If the pandemic’s first wave burned through dense metro hubs such as New York City, Chicago and Detroit, the highest percentages of new cases are coming from places with much smaller populations: Lincoln County, Ore., an area of less than 50,000, has averaged 20 new daily cases; the Bear River Health District in northern Utah has averaged 78 new cases a day in the past week, most of them tied to an outbreak at a meat processing plant in the small town of Hyrum.

The increase of coronavirus cases in counties with fewer than 60,000 people is part of the trend of new infections surging across the rural United States. Health experts worry those areas, already short of resources before the pandemic, will struggle to track new cases with the infrastructure that remains.

The NYT’s coronavirus tracker tool offers a convenient illustration:

What’s more alarming: epidemiologists say any surge in cases tied to the protests likely has yet to emerge.

Even the FT cheered on Tuesday as the UK reported its smallest excess-death total (a figure the paper has been using as a measure of the ‘total’ COVID-19 deaths) since the final week in March. Meanwhile, HMG has reportedly scrapped plans to return pupils to their classrooms before the beginning of the summer break.

The government is set to drop plans to fully reopen primary schools in England before the summer holiday, in a move welcomed by teachers’ unions that argued the return of all pupils would be unsafe. Education secretary Gavin Williamson is expected on Tuesday to announce that headteachers can choose whether or not to reopen to more year groups than currently outlined. Health Secretary Matt Hancock said during yesterday’s daily briefing that secondary schools in England likely wouldn’t reopen until September “at the earliest.”

end
Michael Every…

Rabo: “Insolvent US Companies Should Take The Fed’s New Bailout Loans And Just Buy The S&P”

Submitted by Michael Every of Rabobank

Whirlpools and Whirlwinds

The S&P is now up for the year. Which is pretty much what one would expect against the backdrop of the World Bank calling a deep global recession, the worst US economic downturn since the 1930s, and the worst civil unrest since 1968. Regardless, companies with no income but cool names are up. Openly bankrupt firms are being panic bid. Retail money is pouring in to the market; risk parity funds are pouring in too as volatility comes down; and market shorts have largely been covered, while soon we will get the next leg-up as we actually go long.

This Daily is not equity-focused, but a few comments on this. Rabo’s own Christian Lawrence mused to me recently that we only need to expect equities to follow fundamentals if equity investors actually care about fundamentals – and it is clear they currently don’t.

The bond market is traditionally serious, but has been made increasingly frivolous by central-bank interventions. FX markets, riddled with day-traders as they are, still have some major players buying and selling in line with the underlying physical economy. By contrast, if everyone is holding stocks just to pass on to the next greater fool, and if the greatest fool is a central bank with infinite liquidity to buy them, then, yes, prices will keep going up.

Indeed, just look at the Fed’s new expansion of its Main Street Lending Programme. This now has a lower minimum and higher maximum loan size, can be for up to five years, and with no repayments for two years, with no interest for the first year, and set at LIBOR plus 300bp: banks must hold 5% of the loan, and the Fed holds the remaining 95%. Isn’t this good for the economy? Perhaps. Yet as a fellow bear/cynic noted to me today, if one was a struggling US SME facing a recession, why not take out one of these loans and go long the S&P with it? If things work out in the markets this will provide a cushion for the struggle coming in the real economy; if the market crashes it means you were economically dead anyway. In effect it’s a free option 95% covered by the Fed.

We are all Keynesians now, of course, and central bankers certainly see themselves that way. Yet as the man himself said almost a century ago in The General Theory of Employment, Interest and Money: “Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation.” I don’t think enterprise is even the bubble now: it’s not even necessary in some cases.

Likewise, allow me to paraphrase how someone else on Twitter put it when speaking for the central banks: “First we have to buy the junk bonds. Then the people who sell the junk bonds buy stocks with the money. Then those who own stocks buy USD1m bananas taped to the wall. And then the money flows down to the little guys.

Meanwhile, the USD is also on the retreat and is pretty much back where it was in January, mirroring what the S&P is done in the other direction. Stephen Roach, now teaching at Yale, has a Bloomberg opinion piece out today arguing that a Dollar crash is looming as its “exorbitant privilege” comes to an end. American exceptionalism is being questioned, he says. The US is not saving enough. The current-account deficit is set to soar alongside the fiscal deficit. Trump’s protectionism and America First policies like leaving the WHO will cut off global capital inflows and make the USD fall faster, and it could slump 35% on a trade-weighted basis. This would be inflationary, and rates would need to rise. I do hope that Mr Roach’s course at Yale covers a lot of Keynes and less of this milquetoast analysis.

American exceptionalism is being questioned, yes; just as it has been for years – who is NOT being questioned at the moment? The US is not saving enough: it never really does, but that is the function of the exceptionalism of a global reserve currency! Foreigners demand it and you must supply it by dis-saving.

Yes, the US current account deficit is set to soar, partly due to the mercantilism we already see in China and others in response to this downturn –which is testing everyone– and partly due to the enormous increase in the US fiscal deficit. Would the world be better off if the US government was NOT running a deficit and the private sector saved more at the same time, thrusting the US into fiscal and current-account surpluses? Can you begin to imagine the economic wreckage that would result domestically and internationally?

Moreover, the US does not need foreign capital inflows to cover its deficits when the Fed is buying the bonds issued: there was net foreign Treasury selling during the March panic – and yet US and global bond yields collapsed. This week the Fed might even introduce yield curve control for goodness sake! There is no risk of an increase in US interest rates as far as the eye can see.

So might the USD fall 35% trade-weighted? When one looks at the speculation-based economy, vast deficits, frenetic Fed activity, and low yields one might say yes…except that everyone else is in the same boat or worseEveryone is seeing vast fiscal deficits, state intervention, major QE, and/or yield curve control. An ECB member was openly saying “Never say never” about buying stocks just yesterday, for example; and the laissez-faire Hong Kong government has just announced it is bailing out Cathay Pacific to the tune of HKD30bn. Yes, supply of USD is soaring – because it was demanded globally: and now the supply of all other currencies is about to match it with a lag.

Yet NOBODY else’s currency has a global function that can replicate that of the USD. Indeed, as dollar debt has soared again, so has the future demand on dollars to repay it. That is why on the ‘America First’ issue, every time we have seen a breakdown in US-China trade relations the market move has been to a higher USD and lower CNY (and other EM FX), both from a risk-off perspective and precisely because US protectionism and domestic money printing means ‘more USD for me and none for thee’. The shoe is going to drop here again soon on the current political trend.

What we are seeing in USD at the moment is simply the reversal of the panic-driven rush to hold greenbacks when the world looked like it was falling apart. Guess what? The world is STILL falling apart – it’s just that liquidity-driven markets are focusing on Keynesian “whirlpools of speculation” and not the coming whirlwind.

7. OIL ISSUES

Wall Street darling Chesapeake (shale pioneer) is preparing for bankruptcy protection even though its stock surged over 300%

(zerohedge)

Chesapeake Prepares To File Bankruptcy After Stock Surges 300%

How insane is this “market”? So insane that shale pioneer Chesapeake, which for weeks has been rumored to be on the verge of bankruptcy, exploded by over 300% from Friday’s closing print of $25 to $84.75 after the close.

Well, the daytrader gambler who bought at $84.75 after hours in hopes of finding an even greater idiot to sell to – such as Jerome Powell perhaps – will be disappointed because as Bloomberg reported shortly after the close, Chesapeake is preparing a bankruptcy filing that could hand control of the oil and gas company to its senior lenders, as in no value to existing equity, which as of the close on Thursday had a market cap of $684 million, an increase of over 425% in the past two days!

The timing of these Bloomberg headlines is without doubt the best testament to the absolute idiocy that the moron in charge of the Marriner Eccles buildings has unleashed.

According to the Bloomberg report, the shale driller which was once the largest American gas producer before things turned south, including the March 2016 suicide of founder Aubrey McClendon, owes about $9 billion in debt and is debating whether to skip interest payments due on June 15 and invoke a grace period while it talks with creditors. The company has also begun soliciting lenders to provide debtor-in-possession financing to fund its operations during bankruptcy, according to one of the people.

The Oklahoma City-based producer is negotiating a restructuring support agreement that could see holders of its so-called FILO term loan take a majority of the equity in bankruptcy, the people said, who asked not to be identified discussing confidential matters. The support agreement remains fluid and the terms could change, the people said.

The company has retained Kirkland & Ellis and Rothschild as bankruptcy advisors while the FILO lenders are organized with Davis Polk & Wardwell and Perella Weinberg Partners.

Rumors of Chesapeake’s inevitable demise were already swirling well before the coronavirus pandemic crushed commodity prices and crude demand plummeting. At its height more than a decade ago, the producer was a $37.5 billion juggernaut commanded by McClendon, an outspoken advocate for the gas industry. But Chesapeake’s success at extracting the fuel from deeply buried rock – funded by billions in cheap junk debt – contributed to a massive gas glut, and the eventual collapse of the company.

For those who are about to say that there may be some value to the equity, just a take look at the June 2021 bonds which are about to default and are trading at 3 cents on the dollar and just keep your mouth shut.

As @SlimShady260 explains so clearly for those shamefully trading CHK’s stock and unaware of how capital structures actually work in the real world, here’s what Chesapeake equity holders (at the very bottom of the capital structure, in case you did not know) have to overcome to get any value:

1. Debtor-in-Possession Financing: Amount large enough to pay lawyers, bankers etc. during bankruptcy.

2. Secured Bank Debt: $3.4 billion outstanding and said cue outrage mob at the deadly rallies

3. 2nd Lien Debt: $2.33 bln outstanding. Trading at $0.055 on the dollar. $2.2 bln total impairment

4. Senior Unsecured Notes: $3.34 bln outstanding. Trading around $0.05 on the dollar. $3.2 bln total impairment.

5. Equity: 9.783 mm shares out trading at $66.50. $650mm equity cap

Bottom Line:

Debt with a principal balance of $5.67 bln currently trades with a total impairment of $5.4 bln.

That debt would need to be made whole before equity holders received anything.

In other words – “Mark it Zero!”

But while the dumb money appears to have run out of greater fools (or Feds) to sell to in CHK, bankrupt HTZ is still soaring after hours (up a stunning 170% today alone)…

Is bankrupt Hertz about to become the new Volkswagen as shorts suffer the indignation of being 100% fundamentally correct about value but far off in the mentally unstable market’s willingness to price in any possibility of upside.

end

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1283 DOWN .0021 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 /ALL RED

 

 

USA/JAPAN YEN 108.16 DOWN 0.260 (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 1.2663   DOWN   0.0071  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3445 UP .0075 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro FELL BY 8 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED UP 18.34 POINTS OR 0.62% 

 

//Hang Sang CLOSED UP 280.45 POINTS OR 1.13%

/AUSTRALIA CLOSED UP 2,39%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 280.45 POINTS OR 1.13%

 

 

/SHANGHAI CLOSED UP 18.54 POINTS OR 0.62%

 

Australia BOURSE CLOSED UP 2.39% 

 

 

Nikkei (Japan) CLOSED DOWN 87.07  POINTS OR 0.38%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1706.10

silver:$17.65-

Early TUESDAY morning USA 10 year bond yield: 0.83% !!! DOWN 5 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.59 DOWN 5  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 96.81 UP 19 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing  TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.59% UP 8 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.02%  DOWN 2   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.62%//UP 7 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,46 UP 5 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 84 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 1.77% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1347  UP     .0042 or 42 basis points

USA/Japan: 107.67 DOWN .749 OR YEN UP 75  basis points/

Great Britain/USA 1.2727 DOWN .0008 POUND DOWN 8  BASIS POINTS)

Canadian dollar DOWN 64 basis points to 1.3437

 

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The USA/Yuan,CNY: AT 7.0773    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0767  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.80 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +.02%

 

Your closing 10 yr US bond yield DOWN 6 IN basis points from MONDAY at 0.82 % //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, 96.35 DOWN 27  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 74.66  2.08%

German Dax :  CLOSED DOWN 201.60 POINTS OR 1.57%

 

Paris Cac CLOSED DOWN 80.41 POINTS 1.57%

Spain IBEX CLOSED DOWN 143.80 POINTS or 1.82%

Italian MIB: CLOSED DOWN 301.18 POINTS OR 1.49%

 

 

 

 

 

WTI Oil price; 38.27 12:00  PM  EST

Brent Oil: 40.57 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    68.55  THE CROSS HIGHER BY 0.32 RUBLES/DOLLAR (RUBLE LOWER BY 32 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 :  38.75//

 

 

BRENT :  41.03

USA 10 YR BOND YIELD: … 0.82…down 6 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.59 down 5 basis points..

 

 

 

 

 

EURO/USA 1.1341 ( UP 37   BASIS POINTS)

USA/JAPANESE YEN:107.77 DOWN .654 (YEN UP 66 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.37 DOWN 25 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2736 UP 2  POINTS

 

the Turkish lira close: 6.7971

 

 

the Russian rouble 68.53   UP 0.29 Roubles against the uSA dollar.( UP 29 BASIS POINTS)

Canadian dollar:  1.3405 UP 31 BASIS pts

 

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

 

The Dow closed DOWN 300.14 POINTS OR 1.09%

 

NASDAQ closed UP 27.45 POINTS OR 1.64%

 


VOLATILITY INDEX:  27.45 CLOSED DOWN 1.64

LIBOR 3 MONTH DURATION: 0.309%//libor dropping like a stone

LIBOR/OIS: .249%

TED SPREAD:  (3 MONTH TREASURY BILL VS LIBOR) = .123%

 

USA trading today in Graph Form

“Investors” Panic-Buy Bankrupt Companies, Big-Tech, Bonds, & Bullion

Buy all The Things! That’s the message from the markets today…

Bankrupt (with equity worth ZERO), buy it!

 

Source: Bloomberg

Big Tech (at record valuations amid plunging EPS expectations), buy it!

Source: Bloomberg

Biotechs (a 10-bagger on the day on reports that company has approached the FDA over treatments for e-coli infections)…

Source: Bloomberg

Bonds (but but but last week everyone said inflation was imminent and yields were going to the moon because “v-shaped” recovery), buy ’em!

Source: Bloomberg

Bullion (but but but who needs safe havens when The Fed has yr back), buy it!

Source: Bloomberg

It’s all an utter farce and Jay Powell’s malarkey (and the rest of his liquidity-spewing pals around the world) is at the heart of it…

Source: Bloomberg

There’s one way this ends…

Nasdaq (blue) was panic-bid as soon as the cash market opened and while the other indices opened lower they were immediately bought also…Small Caps (red) lagged on the day – this is the first down day for S&P 500 in June! do not panic!

Nasdaq 100 (and Composite) topped 10k for first time but couldn’t hold it…

AMZN and AAPL hit record highs sending FANGs ever higher…

Source: Bloomberg

There is one thing that is being sold…

The USDollar was dumped for the 9th straight day (11 of last 12 days down)…

Source: Bloomberg

Momentum and Value factors reversed their recent quant-quake trend today…

Source: Bloomberg

Railroad stocks are soaring as rail traffic collapses…

Source: Bloomberg

VIX and stocks have decoupled this week…

Source: Bloomberg

And the VIX decoupling is being driven by Call-buying (levered longs), not hedges…

Source: Bloomberg

Treasury yields tumbled for the second day…

Source: Bloomberg

With the yield curve seeing its biggest 2-day flattening since mid-April…

Source: Bloomberg

Wondering why bonds are suddenly bid? Well, they are once again at a positive currency-hedge yield for foreign investors…

Source: Bloomberg

While the dollar dropped and gold gained, silver ended the day red…

Source: Bloomberg

Bitcoin ended the day very slightly higher after a crazy move overnight…

Source: Bloomberg

Oil prices were higher with WTI back up to $39 ahead of tonight’s API inventory data…

And finally, stocks ain’t cheap!! So buy ’em…on margin!!

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

The JOLTS report: there are 4.5 unemployed workers for every job opening..they are just not hiring

(zerohedge)

JOLTs Shock: 4.5 Unemployed Workers For Every Job Opening As Hiring Craters, Quits Soar

With the BLS’s JOLTs, or job openings and labor turnover, survey coming in with an extra month delay, we already knew that the April data would be the worst on record, and sure enough that’s what happened when the BLS reported that in April the number of job openings plunged from a revised 6.011 million to just 5.046 million, a level last seen in 2014, with the two-month drop of nearly 2 million job openings the largest on record going back to 2000.

The largest declines in job openings took place in professional and business services (-309,000), health care and social assistance (-115,000), and retail trade (-113,000).

While we already knew that the series of 24 consecutive months in which there were more job openings than unemployed workers ended in March, in April it was an absolute doozy with 18 million more unemployed workers than there are job openings, the biggest gap on record. As a result, there were about 4.5 unemployed workers for every job opening.

If this data is accurate, and if indeed there wasn’t a surge in job openings amid the mass layoffs of March and April, then hopes for a sharp rebound in the labor market will be dashed because employers are simply not hiring.

Also far worse will be the number of hires, which in April crashed by a record 1.6 million, from 5.111 million to 3.524 million, something which one can argue was long overdue considering the persistent outperformance of this series relative to the rolling 12 month payroll change. Hires  decreased for total private (-1,439,000) and for government (-148,000). Hires decreased in a number of industries, with the largest declines in professional and business services (-422,000), accommodation and food services (-247,000), and construction (-196,000)

Additionally, in April the number of layoffs was 9.888 million, down from the record 14.6 million in March. . The number of layoffs and discharges decreased for total private to 7.5 million (-3,816,000) but increased for government to 216,000 (+43,000). The layoffs and discharges level decreased significantly in several industries. The majority of the decline occurred in accommodation and food services (-2,738,000) followed by retail trade (-338,000). Layoffs and discharges increased in construction (+85,000), information (+53,000), and wholesale trade (+50,000).

And, inversely, with everyone getting fired, virtually nobody had any interest in voluntarily quitting and such the number of quits tumbled by the most ever, from 2.789MM to just 1.786MM, the lowest level since May 2010. Quits decreased in a number of industries, with the largest decreases in accommodation and food services (-249,000) and professional and business services (-216,000).

 

iii) Important USA Economic Stories

Public health officials are alarmed at a rebound in COVID 19 cases hitting the burbs..This is not protest related..yet!

(zerohedge)

Public Health Officials Alarmed By Rebound In New COVID-19 Cases As Protests Continue

Largely thanks to the overwhelming profit motive of corporatized media, Americans suffer from an entrenched myopia that has become a major stumbling block to all manner of reform. We could spend hours parsing various theories about the provenance and nature of this endemic short-termism, which permeates everything from the priorities of corporations, the media and the average man on the street.

Whether you believe us or not, scientists and public health officials who have been on the front lines of the pandemic are alarmed by the  resurgence in new coronavirus cases following 2 weeks of protests spanning more than 30 states.

Moreover, many of the same critics who attacked GOP governors and the Trump administration for pushing for a “premature” reopening are now arguing that the coronavirus is no longer a concern.

Comfortably Smug@ComfortablySmug

Makes sense https://twitter.com/Slate/status/1269855502575505408 

Slate

@Slate

Anyone joining the protests should be aware that there is a risk. But that isn’t an argument for people to stay home. https://slate.trib.al/PiIfZFI

As US stock benchmarks power higher, it seems investors are choosing to ignore warning signs like Johns Hopkins University data showing a sharp jump in new cases last week, compared with the week before, according to a WSJ analysis of the data.

This attitude seems at odds with the advice from experts including Dr. Fauci and UK Secretary of Health Matt Hancock, who warned that the demonstrations risked sparking a resurgence in new cases. Robert Redfield, director for the Centers for Disease Control and Prevention, joined Gov Cuomo in urging protesters to get tested immediately.

“I do think there is potential, unfortunately, for this to be a seeding event,” Dr. Redfield said.

While New York, New Jersey and a handful of the other most hard-hit states have reported continued success, states like Florida, Tennessee and even Texas have seen a jump in new cases. And while expanded testing capacity is undoubtedly one contributing factor, many fear that increased human interaction is mostly to blame.

Source: NYT

Public health officials in Utah – not exactly a focal point of the unrest spurred by the murder of George Floyd – reported an alarming spike in new cases in the wake of the state’s reopening, which began about a month ago. Officials say it’s unclear how much of that jump is due to expanded testing accessibility, and how much represent the virus’s natural rate of expansion.

The spread of the virus picked up in Utah weeks after reopenings began, said Angela Dunn, state epidemiologist with the Utah Department of Health. She said she is very concerned about the rise in infections and urged residents to use face coverings and maintain social distancing.

“This past week, we’ve had a sharp spike in cases, and it’s not explained easily by a single outbreak or increase in testing,” Dr. Dunn said Wednesday. “This is a statewide trend.”

In Nashville, the rebound was sharp enough to convince officials to delay the next step in its reopening plan.

In Nashville, Tenn., a surge in the number of daily coronavirus cases reported has slowed reopening plans. Alex Jahangir, a surgeon and the head of the city’s Covid-19 task force, said case counts over the last few days had increased the city’s seven-day average. The city will wait to make a decision on when to begin its next reopening phase.

“It is concerning enough for us to slow down and see what’s happening over the next few days,” Dr. Jahangir said Thursday.

LA County blamed last week’s spike on delays in counting new cases, while Arkansas says it is now considering a regional approach following a spike in cases in the northwestern part of the state, while officials continue to ramp up testing.

“The spike in the new cases that we have reflects the dramatic increase in testing that we’re doing,” said Arkansas Gov Asa Hutchinson .

Florida is allowing Disney World to reopen, even as the pace of new cases has continued to accelerate, seeing a 13% spike last week.

What’s more,  tear gas and pepper spray cause people to tear up and cough, aerosolizing the virus and causing it to spread more easily.

At this point, leftists and the MSM have become so trusting of reports confirming their worldview that they’ve been blinded by their own biases, exposing the seems of a shoddily stitched political narrative.

END
My goodness:  the uSA is reporting a shortage of the drug Zoloft (Sertaline) as 1/3 of Americans are now showing signs of clinical depression
(zerohedge)

Zoloft Shortage Strikes As Census Bureau Finds One Third Of Americans Now Show Signs Of Clinical Depression

In the wake of the COVID-19 pandemic and resulting economic crash, which triggered depression-like unemployment with 40 million initial claims filed in ten weeks, a third of Americans are now showing signs of clinical anxiety and depression, according to new data collected by the Census Bureau. This, by far, is the most comprehensive and troubling sign yet of the psychological toll inflicted on Americans due to months of lockdowns.

The Census Bureau contacted one million households between May 7 and 12, and about 42,000 responded, said The Washington Post. The survey was about 20 minutes long and buried deep within, several questions asked respondents about depression and anxiety. Those who answered provided a laggard but clearest snapshot into people’s mental state at the tail end of the lockdown, where many folks were subjected to isolationism, virus fears, and widespread unemployment.

When asked about mental health, 24% of respondents exhibited severe signs of depression, and 30% showed symptoms of anxiety. It was suggested that the mental health of Americans quickly deteriorated during lockdowns.

It found New York, which was the epicenter of the virus outbreak of the world, ranked 12th nationwide in the number of respondents who felt depressed. More than half of the respondents from Mississippi felt depressed. By contrast, in Iowa, only 25% felt depressed.

The latest findings are a significant increase from a pre-corona world. The question of depression, concerning the percentage, has doubled since the 2014 survey.

Millennials, women, and poor people had the highest rates of depression and anxiety. “It’s been a problem many have been studying with no clear answers – whether it’s social media or the way this generation [millennials] was reared or just a greater willingness to talk about their problems,” Maria Oquendo, a professor psychiatry at the University of Pennsylvania, told The Post.

“What’s worrying is the effect this situation is clearly having on young adults,” Oquendo said.

The psychological toll of lockdowns hit low-income folks much harder than the rich, exacerbating the already weakening mental health of the bottom 90% who were already experiencing extreme wealth inequalities.

The Food and Drug Administration recently reported that Zoloft, one of the most widely prescribed antidepressants, has fallen into short supply in the last several months. Demand has surged during lockdowns, due mostly because, as shown by the Census Bureau, Americans are experiencing an unprecedented mental health crisis.

Bloomberg noted Zoloft prescriptions jumped 12% YoY to 4.9 million in March, the most ever in the US. Prescriptions dropped to 4.5 million in April but still elevated.

Infographic: Mental Health Prescriptions Spike Amid Pandemic Fears | Statista

You will find more infographics at Statista

We recently noted an Express Scripts report showed antidepressant prescriptions soared between mid-February and March.

“Americans are turning to medications for relief, demonstrates the serious impact COVID-19 may be having on our nation’s mental health,” Express Scripts said in its “America’s State of Mind Report.”

And last month we said:

“The intense anxiety and fear that many people are feeling today could lead to social instabilities as the virus crisis and economic collapse continues to worsen.

“Some of those instabilities could be a “suicide wave,” protestsviolent crime, and a rise in drug overdoses.”

At the start of lockdowns (in mid/late March), President Trump warned the psychological toll will have “tremendous repercussions. There will be tremendous death…probably more death from that than anything that we’re talking about with respect to the virus.”

END
I hope that this does not translate into our much feared second wave
(zerohedge)

COVID-19 Strikes DC National Guard Members Who Responded To Protests

Members of the DC National Guard who responded to protests in the nation’s capital over the death of George Floyd have tested positive for coronavirus, according to McClatchy, citing a spokeswoman for the Guard, who did not elaborate on how many members were infected.

1,300 members of the DC National Guard were called up on May 31 to help law enforcement respond to riots in the area, and were reinforced by nearly 4,000 additional members from a dozen other states.

“We can confirm that we have had COVID-19 positive tests with the DCNG,” said spokeswoman Lt. Col. Brooke Davis, adding “The safety and security of our personnel is always a concern, especially in light of the COVID-19 era.”

The news follows reports that two members of the Nebraska National Guard who were activated in response to protests in Lincoln, Neb., have also tested positive.

The D.C. National Guard was supported by approximately 3,900 additional Guardsmen from Florida, Idaho, Indiana, Maryland, Missouri, Mississippi, New Jersey, Ohio, South Carolina, Tennessee and Utah to protect national monuments and ensure peaceful demonstrations as tens of thousands of protesters took to district streets last week. –McClatchy

According to the report, members of two National Guard units from Missouri and Mississippi were not wearing masks – while any Guardsmen who tested positive will be delayed from an expected Wednesday departure from the city.

“All Guardsmen who are suspected to be at high risk of infection or have tested positive for COVID-19 during demobilization will not be released from Title 32 orders until risk of infection or illness has passed,” said Davis. “Members of the Air and Army National Guard with no, or low risk of exposure, who present symptoms of infection one to 14 days after release from orders will contact their unit.”

END
Michael Snyder….

As Stocks Soar, Data Shows The Real Economy Is Mired In Historic Crash

Authored by Michael Snyder via TheMostImportantNews.com,

Have you been watching the madness that has been unfolding on Wall Street?  Even though we are in the middle of the worst global pandemic in 100 years, and even though rioters and looters have been turning our major cities into war zones, stock prices have been going up day after day.  In fact, the Nasdaq closed at an all-time record high on Monday.  Sometimes people ask me to explain this rationally, and I can’t, because the Federal Reserve has transformed our “financial markets” into a total mockery at this point.  The real economy is literally collapsing all around us, but thanks to Fed intervention stock investors are doing just fine. 

It has been absolutely disgusting to watch, and if Adam Smith could see what was happening he would be rolling over in his grave.  Unfortunately, thanks to our rapidly declining system of education most Americans don’t even know who Adam Smith is anymore.

I can’t recall another time in modern U.S. history when stock prices skyrocketed as the U.S. economy plunged into a recession.  What we have been witnessing has truly been extremely bizarre, and it will be fascinating to see how long it can last.

Meanwhile, the real economy is a giant mess.  On Monday, the National Bureau of Economic Research finally got around to letting us know that a recession has officially begun

It’s official: The United States is in a recession.

The National Bureau of Economic Research said Monday the U.S. economy peaked in February, ending the longest expansion in U.S. history at 128 months, or about 10½ years.

In truth, the announcement codifies the painfully obvious. States began shutting down nonessential businesses in mid-March to contain the spread of the coronavirus, halting about 30% of economic activity and putting tens of millions of Americans out of work.

And in other news, the sky is blue and the moon is not made out of cheese.

Anyone with half a brain can see that the economy is falling apart.  For example, we just learned that U.S. factory orders were down 22.3 percent in April compared to a year earlier…

Having collapsed by a record 10.4% MoM in March, April factory orders were expected to accelerate even lower and it did. However, the 13.0% plunge in April was modestly better than the 13.4% MoM drop expected… but is still the worst in American history.

Year-over-year, factory orders collapsed 22.3% – the worst since the peak of the financial crisis.

Of course it is not that difficult to find a number that is even worse than that.

Just look at heavy truck sales.  Last month they were down a whopping 37 percent from the same month in 2019…

The last three months have been catastrophic for segments of the trucking business, after an already tough period that started in late 2018. In May, orders for Class 8 trucks – the heavy trucks that haul much of the goods-based economy across the US – plunged 37% from the  low levels in May a year earlier, and by 81% from May two years ago, to 6,600 orders, according to estimates by FTR Transportation Intelligence today.

Not to be outdone, the number of corporate bankruptcies shot up 48 percent last month compared to the same period a year ago…

Corporate bankruptcies spiked during May as the coronavirus pandemic slammed the U.S. economy, pushing the number of filings to levels recorded in the wake of the 2007-09 recession.

U.S. courts recorded 722 businesses nationwide filing for chapter 11 protection last month, a yearly increase of 48%, according to figures from legal-services firm Epiq Global.

But every time we get another horrific economic figure, the stock market goes even higher.

The worse the news gets, the more investors seem to like it.  Week after week, we have seen unprecedented numbers of Americans file for unemployment benefits, and at this point a grand total of more than 42 million Americans have lost a job since this pandemic began.

And yet investors keep taking these job losses as signs that they should buy even more stocks.

Perhaps someone should spread a rumor that a planet-killing asteroid is about to hit us, because that would probably really get investors salivating.

Of course most ordinary Americans don’t get to live in a Fed-fueled fantasy world, and this new economic downturn is hitting most of them extremely hard.

In fact, it is being reported that approximately a third of all Americans “are now showing signs of clinical anxiety and depression”…

In the wake of the COVID-19 pandemic and resulting economic crash, which triggered depression-like unemployment with 40 million initial claims filed in ten weeks, a third of Americans are now showing signs of clinical anxiety and depression, according to new data collected by the Census Bureau. This, by far, is the most comprehensive and troubling sign yet of the psychological toll inflicted on Americans due to months of lockdowns.

The Census Bureau contacted one million households between May 7 and 12, and about 42,000 responded, said The Washington Post. The survey was about 20 minutes long and buried deep within, several questions asked respondents about depression and anxiety. Those who answered provided a laggard but clearest snapshot into people’s mental state at the tail end of the lockdown, where many folks were subjected to isolationism, virus fears, and widespread unemployment.

That is the most alarming number that I have shared with you so far in this article, but I am about to share with you some numbers that are even more alarming.

In recent days, we have watched rioters destroy large sections of our major cities all across America.  But when asked about “violent protests”, a surprising percentage of Americans actually support them…

A broad majority of Americans say the peaceful protests happening all across the country after police violence against African Americans are justified (84% say so), and roughly a quarter (27%) say violent protests in response to police harming or killing African Americans are justified. Both figures are higher than they were when similar protests rose in the fall of 2016. Then, 67% saw peaceful protests as justified while 14% felt violent protests were.

There isn’t much of a racial or partisan difference over whether peaceful protests are justified now, but the gaps are larger over violent protests. Among Democrats, 42% consider violent protests justified in response to police violence against African Americans, while just 9% of Republicans agree.

Yes, you read that last sentence correctly.

42 percent.

Unfortunately, a lot more economic pain is on the way, and that is just going to fuel even more rioting, looting and violence.

These are definitely not “the best of times” no matter what stock market investors seem to think.

We have entered a deeply disturbing new chapter in American history, and life in this country will never be the same again.

iv) Swamp commentaries)

 

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

Coronavirus Jumps the Border, Overwhelming Hospitals in California – Hospitals are airlifting patients to facilities hundreds of miles away to handle an influx of Americans and U.S. green card holders sickened in Mexico…  https://www.nytimes.com/2020/06/07/us/coronavirus-border-mexico-california-el-centro.html

[Covid cases are surging in Mexico, LatAm and parts of South America.  US borders states are affected.]

Poll finds 72% voters, including most black voters, have favorable view of local police department

‘Other data shows that it’s quite possible to have a positive view of both the police and the protesters—most voters do,’… 51% of black voters have a favorable view of their local police… [19% have unfavorable view] https://justthenews.com/politics-policy/polling/poll-finds-72-voters-including-most-black-voters-have-favorable-view-local

 

“Don’t Treat Africans Like Kids” – Black Twitter Erupts At Democrats’ Anti-Police Bill Stunt

Nancy Pelosi and a host of Democratic lawmakers took a knee and – get this – donned traditional African garb during a press briefing where they unveiled their new ‘police reform’ bill that the White House has already said has no chance of passing… [Dems got called for blatant pandering.]

https://www.zerohedge.com/political/democrats-virtue-signaling-goes-11

 

Pennsylvania Officials Admit Duplicate Ballots Were Mailed Out to Voters

https://davidharrisjr.com/steven/penn-officials-admit-duplicate-ballots-were-mailed-out-to-voters

 

Chicago’s most violent day in 60 years: 18 murders in 24 hours

https://chicago.suntimes.com/crime/2020/6/8/21281998/chicago-violence-murder-history-homicide-police-crime

 

The Hill’s @madisongesiotto: 92 shot, 27 dead— the most violent weekend so far this year in Chicago

 

Mayor Lori Lightfoot and Ald. Raymond Lopez Have Foul-Mouthed Argument over Looting

Lopez accused the mayor of being unprepared when looting spread from downtown to the neighborhoods that weekend…“When downtown is in lockdown, our neighborhoods are next, and our failure to fully get ready for what’s going on in the neighborhoods, we’re seeing this destruction, and we’re thinking that it’s going to somehow end tonight. We have seen where, in other cities, this has gone on for days; and we need to come up with a better plan for days, at least for the next five days, to try and stabilize our communities,” Lopez said.   https://chicago.cbslocal.com/2020/06/08/mayor-lori-lightfoot-and-ald-raymond-lopez-have-foul-mouthed-argument-over-looting-youre-100-full-of-s-mayor-says/

 

Latino gang vigilantes targeting Blacks in neighborhoods

Residents in Chicago’s largely Hispanic neighborhoods such as Back of the Yards, some gang members, have taken to the streets to enact vigilante justice against suspected looters…“Blacks live in Latino communities. Latinos live in Black communities. Don’t act like you’re checking IDs to see who lives where when ‘defending our hood,’” Lopez said. “We need to call out everyone using this as an excuse (whites and Asians too) to harm someone else.”…

https://chicagocrusader.com/latino-gang-vigilantes-targeting-blacks-in-neighborhoods/

 

NY Post Editorial Board: New York politicians are putting cops in an impossible situation

Chris Monahan, who heads the NYPD Captains Endowment Association… e-mail warned that if cops go “hands off” on looters and unruly protesters, “you will be assaulted by them.” But if they go “hands on,” then “you will be assaulted by our elected officials.”  In short, the politicians “do not have your back and will use you as a political pawn!”… And now de Blasio is rushing to appease the “Defund the Police” lunatics, vowing to cut the NYPD budget to fund youth programs, among other things. You can bet that’s just a taste of what’s coming…

https://nypost.com/2020/06/07/new-york-politicians-are-putting-cops-in-an-impossible-situation/

 

NYPD detective sues man for resisting arrest during looting [two can play the game] https://trib.al/bau4pn4

 

@paulsperry_: Minnesota Attorney General Keith “X” Ellison refuses to publicly release video footage from the body cams of accused cops who struggled with 6-4, 235-lb George Floyd. Footage is said to reveal Floyd violently resisting arrest and fighting with cops inside police vehicle.  It’s becoming abundantly clear Minnesota AG Keith Ellison overcharged the cops involved in the George Floyd tragedy. When a jury acquits them, what then?

 

@realDonaldTrump: I have retained highly respected pollster, McLaughlin & Associates, to analyze todays CNN Poll (and others), which I felt were FAKE based on the incredible enthusiasm we are receiving. Read analysis for yourself. This is the same thing they and others did when we defeated Crooked Hillary Clinton in 2016. They are called SUPPRESSION POLLSand are put out to dampen enthusiasm. Despite 3 ½ years of phony Witch Hunts, we are winning, and will close it out on November 3rd!… [As we have noted for years, MSM polls under-sample GOP/oversample Dems; analysis at link]

https://twitter.com/realDonaldTrump/status/1270071794628726784

 

Daily Caller’s @greg_price11: New Lincoln Project ad:  “All of the architects of the Iraq War think Donald Trump is unfit for office

 

[Licensed attorney] Chris Cuomo demands to know where it says protests must be ‘peaceful.’ Then he gets a lesson on the Constitution. 1st Amendment: “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people PEACEABLY to assemble…”  https://truepundit.com/chris-cuomo-demands-to-know-where-it-says-protests-must-be-peaceful-then-he-gets-a-lesson-on-the-constitution/

 

Well that is all for today

I will see you WEDNESDAY night.

One comment

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

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