JUNE 12/GOLD DOWN $1.00 TO $1730.60//SILVER DOWN 30 CENTS TO $1744/A RECORD 161.3 TONNES OF GOLD STANDING FOR JUNE//CORONAVIRUS UPDATES//SEATTLE WASHINGTON//SWAMP STORIES//

GOLD:$1730.60  DOWN $1.00   The quote is London spot price

 

 

 

 

Silver:$17.44  DOWN 30 CENTS//LONDON SPOT PRICE

 

Closing access prices:  London spot

 

 

 

i)Gold : $1731.50  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.50//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

 

AUG GOLD:  $1731.30  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $+8.00

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:              $17.50//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      6 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: 106/185

issued 155

EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,732.000000000 USD
INTENT DATE: 06/11/2020 DELIVERY DATE: 06/15/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 3
072 H GOLDMAN 14
118 H MACQUARIE FUT 3
159 C ED&F MAN CAP 1
190 H BMO CAPITAL 1
355 C CREDIT SUISSE 1
624 C BOFA SECURITIES 4
657 C MORGAN STANLEY 12
657 H MORGAN STANLEY 32
661 C JP MORGAN 155 96
661 H JP MORGAN 10
690 C ABN AMRO 1
737 C ADVANTAGE 14 1
800 C MAREX SPEC 15 4
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 185 185
MONTH TO DATE: 50,265

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 185 NOTICE(S) FOR 18500 OZ ( 0.575tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  50,265 NOTICES FOR 5,027,500 OZ  (156.34 TONNES)

 

 

SILVER

 

FOR JUNE

 

 

0 NOTICE(S) FILED TODAY FOR  nil  OZ/

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

 

BITCOIN MORNING QUOTE  $9767 DOWN $117

 

BITCOIN AFTERNOON QUOTE.: $9237 DOWN 644

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $1.00 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A HUGE 1.17 TONNES OF GOLD DEPOSITED INTO THE GLD/

GLD: 1,136.22 TONNES OF GOLD//

 

WITH SILVER DOWN A HUGE 30 CENTS TODAY: AND WITH NO SILVER AROUND

 

A HUMONGOUS  CHANGE IN SILVER INVENTORY AT THE SLV:

 

TWO  MASSIVE DEPOSITS:  i) 7.269 MILLION OZ//

ii)1.802 MILLION OZ

TOTAL: 9.071 MILLION OZ//

RESTING SLV INVENTORY TONIGHT:

 

SLV: 481.982  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A STRONG SIZED 1162 CONTRACTS FROM 177,739 UP TO 178,901 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH OUR  SMALL 6 CENT GAIN IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS DUE TO STRONG  BANKER SHORT COVERING PLUS A FAIR EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A ZERO INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 1532 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 FAIR SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 370  AND SEPT 0 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  370 CONTRACTS. WITH THE TRANSFER OF 370 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 370 EFP CONTRACTS TRANSLATES INTO 1.85 MILLION OZ  ACCOMPANYING:

1.THE 6 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

 

THURSDAY, 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 6 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 FAIR ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A ZERO INCREASE IN SILVER OZ STANDING  CONSIDERABLE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A STRONG  NET GAIN OF 1532 CONTRACTS OR 7.660 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:

4940 CONTRACTS (FOR 11 TRADING DAY(S) TOTAL 4940 CONTRACTS) OR 24.700 MILLION OZ: (AVERAGE PER DAY: 449 CONTRACTS OR 2.245 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 24.700 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 3.027% 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:          1,090.74 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                   24.70 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 A LARGE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1162, WITH OUR  6 CENT GAIN IN SILVER PRICING AT THE COMEX ///THURSDAY THE CME NOTIFIED US THAT WE HAD A FAIR SIZED EFP ISSUANCE OF 370 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  1162 CONTRACTS (WITH OUR 6 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 370 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A LARGE SIZED INCREASE OF 1162 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 6 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.74 // THURSDAY’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: 0 NOTICE(S) FOR nil 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 ROSE BY A GOOD 3753 CONTRACTS TO 484,398 AND CLOSER TO OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE CONSIDERABLE SIZED GAIN OF COMEX OI OCCURRED WITH OUR STRONG GAIN IN PRICE  OF $16.80 /// COMEX GOLD TRADING// THURSDAY// 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 $16.80 .

 

WE HAD A VOLUME OF 24  4 -GC CONTRACTS//OPEN INTEREST  16

 

WE GAINED A STRONG SIZED 5119 CONTRACTS  (15.92 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 1366 CONTRACTS:

CONTRACT  JUNE 0.; AUG 1366 AND ALL OTHER MONTHS ZERO//TOTAL: 1366.  The NEW COMEX OI for the gold complex rests at 484,398. 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 STRONG SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 5119 CONTRACTS: 43753 CONTRACTS INCREASED AT THE COMEX AND 1366 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 5119 CONTRACTS OR 15.92 TONNES. THURSDAY, WE HAD A STRONG GAIN OF $16.80 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 15.92 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 $16.80).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL  (SEE BELOW).

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (1366) ACCOMPANYING THE CONSIDERABLE SIZED GAIN IN COMEX OI  (3753 OI): TOTAL GAIN IN THE TWO EXCHANGES:  5119 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 GAIN.. AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//THURSDAY//$16.80.

 

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 : 27,602 CONTRACTS OR 2,760,200 oz OR 85.85 TONNES (11 TRADING DAY(S) AND THUS AVERAGING: 2509 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 11 TRADING DAY(S) IN  TONNES: 85.85 TONNES

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

THUS EFP TRANSFERS REPRESENTS 85.85/3550 x 100% TONNES =2.41% 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   2900.78  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:                     85.85 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 1162 CONTRACTS FROM 177,739 UP TO 178,901 AND CLOSER TO OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

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

 

EFP ISSUANCE 370 CONTRACTS

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

JULY: 709 CONTRACTS   AND SEPT: 00 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 370 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 1162  CONTRACTS TO THE 370 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 1532 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 7.660 MILLION  OZ!!! OCCURRED WITH THE 6 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 6 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// THURSDAY. WE ALSO HAD A GOOD SIZED 370 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)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 1.16 POINTS OR 0.04%  //Hang Sang CLOSED DOWN 178.77 POINTS OR 0.46%   /The Nikkei closed DOWN 167.43 POINTS OR 0.75%//Australia’s all ordinaires CLOSED DOWN 1.97%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0763 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0763 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0732 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC  : /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 ROSE BY A GOOD 3753 CONTRACTS TO 484,398 MOVING CLOSER TO  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS  GOOD  COMEX GAIN OCCURRED WITH OUR STRONG GAIN OF $16.80 IN GOLD PRICING /THURSDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (1366 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 STRONG GAIN ON OUR TWO EXCHANGES OF 5119 CONTRACTS DESPITE GOLD’S STRONG GAIN IN PRICE

 

 

WE  HAD 24    4 -GC VOLUME//open interest RISES TO 16

 

 

 

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 1366 EFP CONTRACTS WERE ISSUED:  1366 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1366 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:  5119 TOTAL CONTRACTS IN THAT 1366 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED 3753 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 GOOD COMEX OI GAIN,  ANOTHER HUMONGOUS INCREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A STRONG GAIN IN COMEX PRICE OF 16.80 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $16.80)AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A STRONG 15.92 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 5119 CONTRACTS OR 511,900 OZ OR 15.92 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:  484,398 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 48.43 MILLION OZ/32,150 OZ PER TONNE =  1506 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1506/2200 OR 68.47% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 147,719 contracts//extremely low//most traders have moved to london

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY221,280 contracts//  volume low 

 

 

JUNE 12 /2020

JUNE GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
122,366.706 oz
Brinks
Int. Delaware
Deposits to the Dealer Inventory in oz NIL oz

 

 

 

Deposits to the Customer Inventory, in oz 97,930.750 oz

Brinks

Loomis

includes

 

1200 kilobars

Loomis

 

No. of notices// ounces (tonnes) served today 185 notices

18500 oz

 

(.5754 tonnes)

No of ounces  (tonnes) to be served upon:

 

1609 notices

160900 oz

5.01 tonnes

total monthly oz already served upon this month 50,265 notices

5,026,500 oz

(156.34 tonnes)

We had 0 deposit into the dealer

 

DEALER WITHDRAWAL:

i) nil oz

 

 

total dealer withdrawals: 2600.800 oz

we had 2 deposits into the customer account

i) Into Brinks 59,350.75 oz

 

ii) Into Loomis: 38,580.000  (1200 kilobars)

 

 

 

 

 

 

total deposits: 97,930.750    oz

 

 

we had 2 gold withdrawals from the customer account:

i) Out of Brinks:  122,270.253 oz

ii) Out of Manfra: 96.45 oz  (3 kilobars)

 

total gold withdrawals;  122,366.706 oz

We had 2  kilobar transactions  +

 

 

 

 

ADJUSTMENTS: 2 //    

 

customer to dealer: Manfra

14,949.75 oz adjusted customer to dealer

dealer to customer:

i) Brinks:  45,140.404 oz

 

 

The front month of JUNE registered a total of 1794 oi contracts of a LOSS of 1229 contracts.  We had 1323 notices filed on THURSDAY so we gained A STRONG 94 contracts or an additional 9,400 oz of gold (0.2923 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 LOSS of 47 contracts DOWN to 3527 contracts.

Next comes August another strong delivery month and here the OI ROSE by 2956  contracts UP to 338,073 contracts.

 

We had 185 notices filed today for 18500 oz

 

FOR THE JUNE 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 155 notices were issued from their client or customer account. The total of all issuance by all participants equates to 185 contract(s) of which 10 notices were stopped (received) by j.P. Morgan dealer and 94 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 17 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 (50,265) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (1794 CONTRACTS ) minus the number of notices served upon today (185 x 100 oz per contract) equals 5,187,400 OZ OR 161.35 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 (50,265)x 100 oz + (1794 OI) for the front month minus the number of notices served upon today (185) x 100 oz which equals 5,187,400 oz standing OR 161.35 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 94 contracts or 9400 oz will stand on this side of the pond.  Issuance of exchange for physicals is FAIR today…  It is still too costly for our crooked bankers to carry.

 

 

 

NEW PLEDGED GOLD:  BRINKS

 

144,088.952 oz NOW PLEDGED  JAN 21.2020/HSBC  5.4807 TONNES

322,656.68 oz PLEDGED  MARCH 2020  JPMORGAN:  10.036 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

 

477,821.587 oz pledged June 12/2020 Brinks/               14.865 tonnes

total pledged gold:  1,006,406.127 oz                             31.303 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 346.39 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 161.35 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  12,143,064.524 oz or 377.00 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)
g) pledged gold at Brinks: 456,794,87 oz added which cannot be settled:  14.208 tonnes
total brinks:  477,821.587 oz
total weight of pledged:  1006,406.127 oz or 31.303 tonnes
thus:
registered gold that can be used to settle upon: 11,136,658.0  (346.39 tonnes)
true registered gold  (total registered – pledged tonnes  11,136,658.0 (346.39 tonnes)
total eligible gold:  17,867,708.042 oz (555.76 tonnes)

total registered, pledged  and eligible (customer) gold;   30,010,772.566 oz 933.46 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  807.12 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 12/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A STRONG SIZED 1162  CONTRACTS FROM 177,739 UP TO 178,901(AND CLOSER TO OUR NEW ALL TIME RECORD OI FOR SILVER SET ON FEB 25.2020(244,710) ECLIPSING OUR PREVIOUS RECORD, AUGUST 25/2018 RECORD (244,196).  THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9.2018/ 243,411 CONTRACTS) . THE STRONG OI COMEX GAIN TODAY OCCURRED WITH OUR 6 CENT GAIN IN PRICING//THURSDAY. WE GAINED A TOTAL OF 1532 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A ZERO 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, TINY EFP ISSUANCE… AND ALL OF THIS OCCURRED WITH OUR 6 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE

THE FRONT DELIVERY OF JUNE SAW 11 OPEN INTEREST CONTRACTS STANDING FOR A LOSS OF 0 CONTRACTS.  WE HAD 0 NOTICES SERVED UPON YESTERDAY SO WE GAINED 0 CONTRACT OR AN ADDITIONAL NIL 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 6997 CONTRACTS DOWN TO 86,310 CONTRACTS. AUGUST SAW ANOTHER LOSS OF 10 CONTRACTS TO 60 OPEN INTEREST CONTRACTS.. THE STRONG DELIVERY MONTH OF SEPT SAW A GAIN OF 7958 CONTRACTS UP TO 67,333

 

 

We, today, had  0 notice(s) FILED  for NIL OZ for the JUNE, 2020 COMEX contract for silver

 

JUNE 12/2020

JUNE SILVER COMEX CONTRACT MONTH

 

 

 

<

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 24,077.847 oz
CNT
Delaware

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
 2,351,644.761 oz
CNT
Delaware
HSBC
No of oz served today (contracts)
0
CONTRACT(S)
(nil OZ)
No of oz to be served (notices)
11 contracts
 55,000 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 3 deposits into the customer account

into JPMorgan:   0

ii)into CNT:  597,957.209 oz

iii) into Delaware: 997.25 oz

iv) Into HSBC  1750,690.300 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/315.166 million

 

total customer deposits today: 2,351,644.761    oz

we had 2 withdrawals:

 

 

i) Out of  CNT: 7124.700 oz

ii) Out of Delaware: 16,953.147 oz

 

 

 

 

 

 

 

total withdrawals; 24,077.847   oz

We had 0 adjustments

 

 

total dealer silver: 85.324 million

total dealer + customer silver:  315.166 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the JUNE 2020. contract month is represented by 0 contract(s) FOR nil, 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.(11) and the number of notices served upon today 0 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 (11)- 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 0  contracts or an additional nil 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: 64,750 CONTRACTS // volume good/

 

 

FOR YESTERDAY: 114,079..,CONFIRMED VOLUME//volume very strong/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 114,079  CONTRACTS EQUATES to 570 million  OZ 81.4% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 1.22% ((JUNE 12/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -1.53% to NAV:   (JUNE 12/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1.22%

(courtesy Sprott/GATA

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

NAV 16.42 TRADING 16.28///NEGATIVE 0.86

END

 

 

And now the Gold inventory at the GLD/

JUNE 12//WITH GOLD DOWN $1.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A DEPOSIT OF 1.17 TONNES AT THE GLD//INVENTORY RESTS AT 1136.22 TONNES

JUNE 11//WITH GOLD UP $16.80 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A DEPOSIT OF 6.55 TONNES AT THE GLD//INVENTORY RESTS AT 1135.05 TONNES

JUNE 10/WITH GOLD DOWN $.30 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 4.02 TONNES AT THE GLD/INVENTORY RESTS AT 1129.50 TONNES

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 12/ GLD INVENTORY 1136.22 tonnes*

LAST;  840 TRADING DAYS:   +192.22 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 740 TRADING DAYS://+367.52  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 12/WITH SILVER DOWN 30 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: TWO DEPOSITS OF 7.269 MILLION OZ AND 1.802 MILLION OZ ADDED TO THE SLV///INVENTORY RESTS THIS WEEKEND AT 481.982 MILLION OZ//

JUNE 11//WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY: ///INVENTORY RESTS AT 472.89 MILLION OZ//

JUNE 10/WITH SILVER  UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 472.849 MILLION OZ//

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 12.2020:

SLV INVENTORY RESTS TONIGHT AT

481.982 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.72/ and libor 6 month duration 0.42

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

GOLD LENDING RATE: -2.30%

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
+ 2.24%

LIBOR FOR 12 MONTH DURATION: 0.60

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.64%

 

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

BIS gold swaps are again on the rise indicating huge activity by the Fed as they try and contain gold’s rise

(Robert Labourne/GATA)

BIS activity in gold reached three-year high in May

 Section: 

By Robert Lambourne
Thursday, June 11, 2020

Gold market activity by the Bank for International Settlements appears to have risen in May to its highest level in more than three years, according to the bank’s statement of account for the month:

https://www.bis.org/banking/balsheet/statofacc200531.pdf

The data in the May statement indicates that the BIS increased its position in gold swaps and gold-related derivatives by 84 tonnes, bringing the total to 412 tonnes. For context, Turkey is reported to have the 14th largest gold reserves with about 412 tonnes. Hence the May swaps by the BIS represent a significant chunk of gold.

… 

The increase in the BIS’ use of gold swaps and derivatives is especially dramatic over the last 12 months, since last May the total stood at only 78 tonnes. One has to return to March 2017 to find a higher level of gold swaps reported by the BIS — 438 tonnes.

The BIS uses gold swaps and other gold derivatives to gain access to gold held by commercial banks. Then the BIS deposits this gold in gold sight accounts held on behalf of the BIS at major central banks, like the U.S. Federal Reserve.

These transactions create a mismatch at the BIS, which ends up being long unallocated gold (the gold held in BIS sight accounts at major central banks) and short allocated gold (gold required to be returned to its swap counterparty). So far this mismatch has not been reported in BIS annual reports.

Recently the BIS published a study titled “Central Bank Swaps Then and Now: Swaps and Dollar Liquidity in the 1960s” by Robert N McCauley and Catherine R Schenk:

https://www.bis.org/publ/work851.htm

https://www.bis.org/publ/work851.pdf

The introduction to the paper states the following with the use of boldfaced italics for emphasis:

“We profile the Federal Reserve’s swap lines since 1962. We consult not only Fed sources, but also Bank of England, Swiss National Bank and Bank for International Settlements archives. We provide the first systematic analysis of the Fed’s eurodollar operations in the 1960s through swap lines. The BIS served the Fed as an operating arm, taking credit risk as it placed eurodollar deposits to stabilise offshore dollar yields in advance of year- or quarter-end window-dressing. While short-lived, these operations have a very modern ring.”

While the scope and content of this study are not directly relevant to the use of gold swaps by the BIS, the study does highlight the close relationship between the Federal Reserve and the BIS. It emphasizes that the BIS long has acted on behalf of the Federal Reserve, has done so via swaps, and crucially has been prepared to take on credit risk for the Fed.

This invites conjecture that the use of gold swaps by the BIS is driven by the Federal Reserve.

The study provides no proof that this is the case, but that the BIS has never provided any comment on its exposure caused by being long unallocated gold and short allocated gold may well be explained by the Fed’s being the most powerful central bank and the sole recipient of the unallocated gold placed in sight accounts by the BIS.

The BIS auditors who must satisfy themselves that the BIS can cover the mismatch between allocated and unallocated gold even in extreme market conditions would presumably see the Fed as being capable of supplying as much gold as the BIS would require once the gold swaps terminated.

The BIS’ monthly reports do not provide enough information to to calculate the exact amount of swaps, but, as noted above, based on the information in its statement for May the bank’s month-end gold swaps are estimated to be about 412 tonnes.

The table below reports the estimated swap levels since August 2018, and it can be seen that the May 2020 swaps are the highest in this time frame. It can also be seen that the BIS is actively involved in trading gold swaps and other gold derivatives, with changes from month to month in this period rising above 100 tonnes.

Month ….. Swaps
& year …. (tonnes)

May-20…. / 412
Apr-20…. / 328
Mar-20…. / 332
Feb-20…. / 326
Jan-20…. / 320
Dec-19…. / 313
Nov-19…. / 250
Oct-19…. / 186
Sep-19…. / 128
Aug-19…. / 162
Jul-19….. / 95
Jun-19…. / 126
May-19…. / 78
Apr-19….. / 88
Mar-19…. / 175
Feb-19…. / 303
Jan-19…. / 247
Dec-18…. / 275
Nov-18…. / 308
Oct-18…. / 372
Sep-18…. / 238
Aug-18…. / 370

More background on the bank’s medium-term history of using gold swaps is available here:

http://www.gata.org/node/18825

On February 3, 2019, GATA published comments from a former gold industry executive describing the activities of the BIS in gold swaps in earlier decades:

http://www.gata.org/node/18828

The former executive wrote: “Effectively this process created a supply of ‘paper gold’ — sometimes but not always marked to market — that had a depressing effect on the gold price.”

The BIS refuses to explain its activity in the gold market — its objectives and underlying parties in interest:

http://www.gata.org/node/17793

—–

Robert Lambourne is a retired business executive in the United Kingdom who consults with GATA about the involvement of the Bank for International Settlements in the gold market.

iii) Other physical stories:

(courtesy London’s financial Times)

The global gold market is breaking up

https://www.ft.com/content/1e9fa739-2f95-4cfb-b481-0387e5f8b117?accessToken=zwAAAXKo2QtAkc8en6c5L5VM-9O0gQOH5fixFw.MEUCIQDmv1rZKhNbGqhPUUiHPFlZ1wBa3DirXRFnAy_t97fmIwIgJd2SSHnBUqqihViO4q7trlwj5j37pYTBe4DIKk1PdHM&sharetype=gift?token=e8be81af-55c5-48a8-8dc3-6af92c0be67a

The global gold market is breaking up Dominance of traditional banks and families that were the previous masters is ending JOHN DIZARD Add to myFT Vietnam is among the top three gold trading countries © Junko Kimura/Bloomberg Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) Save John Dizard 9 HOURS AGO 38 Print this page Gold, the globe’s universal currency and store of value, is being de-globalised. Mocatta, long the largest gold bullion dealer, is being unwound and shut down by Scotiabank. JPMorgan, the leading US bullion bank, is ever more reluctant and slow to take on new counterparties. Along with all its other issues, HSBC had to take a huge mark on its gold trading book during the illiquid and volatile March markets. The Rothschilds, essential to every global conspiracy theory, left the gold trade in 2004. Gold location arbitrages, the apparently risk-free differences between the simultaneously indicated gold prices among trading centres, are not as wide as they were during the March travel disruptions. At that time, an ounce of gold could be marked at as much as a $90 difference between markets, say, in Zurich, New York and London. In the recent past, a $1.50 difference would raise eyebrows and trading capital allocations. Even as travel and air shipments begin to return to a semblance of normality, gold people say $5, $6 or $7 location arbs are not uncommon. On the face of it, gold trading should be an attractive business for investors with operational experience. There is increased interest in gold from institutional investors watching each other and needy of validation from the usual pension consultants. Prices, while off their 2020 highs, continue an upward trend. So why would there be deglobalisation of “physical” gold trading? Because the emerging leaders of the gold trading world are not the Anglo-Saxon bankers or the “Cousinhood” Jewish families who were the gold establishment of the past couple of centuries. These new leaders have different ethnic origins, and often focus on particular countries that we have condescended to call emerging markets. Take, for example, MKS Pamp, founded by Mahmoud Kassem Shakarchi, a northern Iraqi who got his commercial start as a sheep-trader in Istanbul. Pamp gold bars, often left in their original plastic wrappers, are the most recognised bits of bullion in India. MKS Pamp is the largest refiner and trader of small bars in the world. Or are you familiar with the Saigon Jewelry Company, or its SJC branded bullion? Everybody knows SJC’s products at the Vietnam-China border, where I understand much trade goes through informal networks. “The SJC bars are mostly used in Vietnam, but they are even recognised by central banks. Gold is a major means of payment (especially) for the unofficial trading,” says Trung Khans Huynh, a Ho Chi Minh City gold expert. China limits gold exports to the equivalent of $50,000 per resident. The Turkish government has enthusiastically embraced the gold trade in the past couple of decades. The Istanbul Gold Refinery, founded by the Halac family, serves the highly efficient national gold trade centred on the Borsa Istanbul. Even during the Covid-19 shutdowns, the Istanbul jewellery shops remained open as an essential trade. I would offer statistics about the Turkish gold trade, but estimates seem to differ. When I lived there as an infant, the gold trade often conducted business in Ladino, the Sephardic Jewish language, but times have changed and the lingua franca, so to speak, is Turkish. In south-east Asia, Mr Trung says that “Vietnam is among the top three gold trading countries, with 60 to 70 tonnes per year, and only behind Thailand and Indonesia with 80 to 90 tonnes per year. Over the years Vietnamese have imported nearly 850 tonnes of gold.” That compares with the UK’s official gold reserves of about 310 tonnes. A few years ago, Malaysian officials were surprised to hear from a foreign metals expert that a great deal of gold was held in their country in private facilities. Apparently, for some gold-rich Muslims, Malaysia’s recognition of sharia law is a source of reassurance that their assets will be safe. Then there is conflict gold, or, more gently, artisanal gold mined in Africa. Gold industry people’s eyes glaze over when you bring up the subject, but an EU-funded study from last year pointed out: “Estimates of the scale of gold smuggling annually include Sudan 30 tonnes, South Africa 25 tonnes, Zimbabwe 20 tonnes, Mali 20 tonnes . . .”, and so on. It all seems to get refined, even though the London Bullion Market Association is strongly opposed to the trading of conflict gold, child slavery, etc. One of the most insidious aspects is the mercury poisoning of the people, animals, water and land. According to Jeffrey Christian of metals consultancy CPM, even with the present high gold prices: “This wasn’t peak fear. We are in the foothills of the global changes coming.” Global political and economic fragmentation is leading to a long-term increase in the demand for monetary and financial gold.  That increased energy on the buy side, though, will not bring back the dominance of the traditional banks and families that were the previous masters of gold.

end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

Your early FRIDAY 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: 7.0763/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0732   /shanghai bourse CLOSED DOWN 1.16 POINTS OR 0.04%

HANG SANG CLOSED DOWN 178.77 POINTS OR 0.77%

 

2. Nikkei closed DOWN 167.43 POINTS OR 0.75%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 96.67/Euro RISES TO 1.1314

3b Japan 10 year bond yield: RISES TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.34/ 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:: 36.52 and Brent: 38.91

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.42%/Italian 10 yr bond yield DOWN to 1.47% /SPAIN 10 YR BOND YIELD DOWN TO 0.60%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.89: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.29

3k Gold at $1733.70 silver at: 17.58   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 71/100 in roubles/dollar) 69.45

3m oil into the 36 dollar handle for WTI and 38 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.34 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 .9462 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0698 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 0.42%

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 0.71% early this morning. Thirty year rate at 1.46%

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

6.  TURKISH LIRA:  UP  TO 6.8307..

Futures Soar In Sharp Rebound From Thursday’s Massacre

After the worst market rout since the March crash, which saw the S&P plunge almost 6% on Thursday, U.S. stock index futures surged about 2% on Friday along with European stocks, pointing to a quick rebound for Wall Street from its biggest one-day dive in about three months on fears of a resurgence in coronavirus infections. Big U.S. lenders including Bank of America Corp , Citigroup Inc and Morgan Stanley rose between 3% and 5% in premarket trading after taking a hammering earlier this week. The dollar dropped along with the yen and Treasurys as investors sold safa havens. The VIX eased about 4.5 points after spiking to 40, its highest level since April 23.

Why are stocks surging? Because it appears that the lunatics have taken over the asylum again, with Hertz stock up over 50% after the company announced on Thursday it would try to sell bankrupt stock (to manic Robinhood daytraders), in order to fund its operations during bankruptcy, something that has never been attempted before as bankrupt stock is traditionally worthless but to Robinhooders it has about $600MM in value.

“We see some positive points – the worst is over, the economy is gradually re-opening – but we also see downside risks,” Janet Mui, investment director at Brewin Dolphin, told Bloomberg TV. “Overall we are adding a bit of equities now, primarily to the U.S. and emerging markets ex-Asia.”

The Stoxx Europe 600 Index jumped, with car makers, banks and travel companies leading gains after driving yesterday’s losses. The Stoxx 600 Automobiles & Parts Index was the best-performing segment on the broader European share gauge after Goldman Sachs eased its prediction for 2020 global car-market contraction, citing better regional expectations: Renault +3.3%, Daimler +2.1%, Continental AG +1.8%, Faurecia +1.7%, Volkswagen +1.5%

Markets largely ignored dismal news out of the U.K., where the economy shrank a record 20.4% in April as businesses and workers reeled under the lockdown designed to control the coronavirus pandemic. Leisure & accommodation activity fell nearly 90%. “These data state the obvious, but they’re not of much value; data for the rest of Q2, H2 and the fiscal response are far more important. The GBP barely moved in response” according to BMO’s Stephen Gallo.

Asian stocks fell, led by energy and IT, after falling in the last session. Most markets in the region were down, with South Korea’s Kospi Index dropping 2% and Australia’s S&P/ASX 200 falling 1.9%, while Jakarta Composite gained 0.5%. Trading volume for MSCI Asia Pacific Index members was 11% above the monthly average for this time of the day. The Topix declined 1.1%, with DLE and Access falling the most. The Shanghai Composite Index was little changed, with Zhejiang Guangsha advancing and Beijing Changjiu Logistics declining the most.

In rates, Treasuries bear-steepened by up to 6 basis points in the long end while European peripheral bonds slipped, unwinding a significant portion of Thursday’s flattening move on heavy volume in cash and futures, triggered by profit-taking during Asia session. Haven demand further unwound during European morning as U.S. stock futures recovered a portion of Thursday’s losses according to Bloomberg. Yields were cheaper by up to 6bp at long end with 2s10s and 5s30s steeper by 4bp-5bp and front end little changed; 10-year higher by ~4bp at 0.71%, still lower on the week by more than 18bp tracking declines for U.S. stocks; bunds outperformed U.S. by ~3.5bp on the day, gilts by ~1bp. Futures volumes through 7am ET were 10% above 5-day average levels at the long end.

In FX, the Bloomberg Dollar Spot Index fell after yesterday posting the biggest gain in almost two months; the greenback weakened versus all Group-of-10 peers apart from the Swiss franc and the yen while Scandinavian and antipodean currencies rallied as equities climbed, despite oil trading around month-to-date lows; the euro climbed back above 1.13 per dollar. The pound recovered against the dollar after a dip following data that showed a record contraction of 20.4% for the U.K. economy in April. The yen weakened for the first time in five days as haven bids wane after Japanese stocks trimmed losses.

In commodities, WTI crude steadied at around $36 a barrel in New York, while Brent was trading around $39 after dropping as low as $37 overnight.

Looking at the day ahead now, the data highlights include UK GDP for April and Euro Area industrial production for April, in the US there’s the preliminary University of Michigan’s consumer sentiment index for June. We’ll also hear from the ECB’s Wunsch.

Market Snapshot

  • S&P 500 futures up 1.6% to 3,057.75
  • STOXX Europe 600 up 0.7% to 355.57
  • MXAP down 1.2% to 157.07
  • MXAPJ down 1% to 504.86
  • Nikkei down 0.8% to 22,305.48
  • Topix down 1.2% to 1,570.68
  • Hang Seng Index down 0.7% to 24,301.38
  • Shanghai Composite down 0.04% to 2,919.74
  • Sensex down 0.3% to 33,435.34
  • Australia S&P/ASX 200 down 1.9% to 5,847.80
  • Kospi down 2% to 2,132.30
  • German 10Y yield fell 0.5 bps to -0.419%
  • Euro up 0.3% to $1.1333
  • Brent futures down 1.3% to $38.06/bbl
  • Italian 10Y yield fell 5.2 bps to 1.37%
  • Spanish 10Y yield rose 1.5 bps to 0.643%
  • Brent Futures down 1.3% to $38.06/bbl
  • Gold spot up 0.4% to $1,734.92
  • U.S. Dollar Index down 0.2% to 96.53

Top Overnight News

  • The European Union’s 27 member states agreed this week to sign off on legislation that would offset the “considerable negative impact” on capital requirements from any losses on government bonds, according to a document seen by Bloomberg News that summarizes the deal
  • Germany has moved forward with the implementation of the first elements of a sweeping 130 billion- euro ($145 billion) stimulus package to help pull the country’s economy out of the worst recession since World War II
  • Italian Prime Minister Giuseppe Conte was due to testify Friday before prosecutors investigating the government’s failure to isolate two northern towns earlier this year, amid a bitter political tussle over handling of the coronavirus outbreak
  • North Korea accused the U.S. of breaking promises it made at a historic summit two years ago, saying the Trump administration had turned dreams for peace into “a dark nightmare” and dashed hopes for denuclearization
  • As host of this year’s Group of Seven meetings, the U.S. president gets to invite whomever he wants as guests. But his musings about including leaders from Russia, Australia, India and South Korea, while leaving out China’s Xi Jinping, have set off alarm bells in European capitals

Asian equity markets suffered losses after the bloodbath on Wall St where risk appetite collapsed due to several factors including coronavirus 2nd wave fears triggered by a surge in cases and following the recent glum outlook from the Fed, while a push back in stimulus hopes added to the depressed mood with the White House and Republicans said to not be planning formal negotiations on a fourth coronavirus stimulus package until late July. As such, the DJIA slumped by nearly 1900 points and the S&P 500 posted its worst day since March 16th with almost all its constituents closing in the red, although futures nursed some of the losses overnight after the E-Mini S&P and Mini Dow futures found a floor at the 3K and 25K levels respectively. Nonetheless, ASX 200 (-1.9%) and Nikkei 225 (-0.8%) weakened from the open with energy and financials front running the declines in Australia and with sentiment also not helped by the souring ties with China which reportedly moved to curb coal imports by stepping up customs checks, while the Japanese benchmark briefly retreated below the 22K level before paring the majority of losses in late trade with price action at the whim of currency fluctuations. Hang Seng (-0.7%) and Shanghai Comp. (U/C) conformed to the widespread negativity after another net liquidity drain by the PBoC and ongoing tensions between the global powerhouses as reports noted a Chinese PLA officer was arrested and charged with visa fraud as he tried to leave the US after having documented an incorrect rank on the visa application, while KOSPI (-2.0%) was also dragged by geopolitical concerns in which North Korea stated relations with US have currently shifted to despair and that it will build up a more reliable force to confront the US military threat. Finally, 10yr JGBs traded marginally higher amid the broad losses in global stock markets and following the bull flattening seen in US, while the BoJ were also present in the market today for nearly JPY 700bln of JGBs heavily concentrated in 1yr-5yr maturities.

Top Asian News

  • Hedge Fund Group Says Don’t Write Off Hong Kong as Finance Hub
  • India Credit Market Has Been Stung by Bankruptcy Suspension
  • Japan Passes $298 Billion Second Extra Budget Amid Pandemic
  • Hedge Fund Oasis Sets Up Tokyo Office, Plans to Hire Analysts

A rocky start to the final European session of the week, but stock futures in the region managed to nurse initial losses of almost 2% to trade higher on the day by around a percent. Cash markets meanwhile continue to recover from yesterday’s sell-off [Euro Stoxx 50 +1.7%], whilst participants remain wary on a second wave resurging – with Beijing reportedly shutting down a part of its key wholesale meat market as a coronavirus related countermeasure, which came alongside two confirmed cases in the city, whilst Houston is mulling reimposing stay-at-home orders. Sectors have shifted from a more defensive bias at the cash open to a cyclical tilt – with the Energy sector going from zero to hero as the session is underway. Financials follow a close second whilst healthcare falls to the bottom of the pile. The breakdown paints a similar picture whilst mirroring yesterday’s performance. In terms of individual movers, UBI Banca (+1.5%) and Intesa Sanpaolo (+1.4%) muster support from the lower yield environment alongside reports the Italian market regulator is likely to approve the Intesa takeover.

Top European News

  • Soft U.K. Border Checks Planned With the EU, Deal or No- Deal
  • Airlines Challenge U.K.’s Quarantine in Bid to Resurrect Travel
  • Iconic U.K. Episode of ‘Fawlty Towers’ Pulled for Racist Content
  • Sweden’s Recession Set to Be Much Milder Than Feared, SEB Says

In FX, the Dollar has clawed back some losses, with the DXY on a relatively firmer footing between 96.940-491 parameters after recent dips just below 96.000. However, sellers continue to fade rebounds in the Greenback and the Buck is still underperforming G10 counterparts aside from safer havens that soared on Thursday amidst heightened risk aversion due to second wave coronavirus concerns and spill-over from the Fed’s cautious economic outlook. Looking ahead, US import/export price data is unlikely to be pivotal in terms of direction or insight, but the more timely preliminary Michigan sentiment survey could be insightful as a gauge of economic conditions for the current month.

  • NZD/AUD/CAD/NOK/SEK – Not quite all change following yesterday’s abrupt retreat, though the Kiwi, Aussie and Loonie have all regained some composure within 0.6395-0.6472, 0.6800-0.6900 and 1.3666-1.3553 respective ranges. A degree of stability in crude and commodities is keeping the high beta and risk sensitive currencies afloat, albeit with the Aud still wary about escalating trade and diplomatic tensions between Australia and China as the latter turns its attentions to coal imports for more stringent customs scrutiny. Conversely, a fillip for the Nzd via a rebound in the manufacturing PMI, while the Cad will be eyeing Canadian Q1 capacity utilisation for some independent impetus. Elsewhere, the Scandinavian Crowns are benefiting from the mildly constructive or less destructive risk tone, as Eur/Nok and Eur/Sek reverse from 10.9300+ and 10.5500+ to nestle under 10.8500 and 10.5000.
  • GBP/EUR – Both pivoting round numbers vs the Buck and well within this week’s extremes, at 1.2600 and 1.1300, with Cable shrugging off a raft of mostly worse than expected UK data on the basis that it was widely anticipated to be bad in April during almost complete COVID-19 lockdown, but the Eur/Gbp cross elevated alongside prospects of a no deal Brexit given the ongoing stalemate and Britain sticking to its December 2020 transition deadline. Meanwhile, Eur/Usd has not really been hampered by no further Eurogroup progress on the Recovery Fund, but ran into resistance ahead of 1.1350 and could be anchored by 1.2 bn option expiry interest residing just above 1.1300 (1.1305-10) even though the headline pair has breached the 200 HMA (1.1284).
  • CHF/JPY – In contrast to all the above, safe haven unwinding has pushed the Franc and Yen off Thursday’s lofty pinnacles, as Usd/Chf bounces firmly from sub-0.9400 and Usd/Jpy circa one big figure from 106.40.

In commodities, WTI and Brent front month futures have drifted off lows now reside in positive territory as the complex nursed losses seen during APAC hours, with fears of a second COVID-19 wave weighing on the demand side of the equation during overnight trade. That being said, the benchmarks saw some support from headlines nothing that China imports of US crude are on track to reach a record level next month. In terms of Bank commentary, Barclays said it raised its oil price forecasts in which it sees Brent at USD 41/bbl and WTI at USD 37/bbl this year but remains cautious regarding the curve near-term, while it suggested the pace of recovery in oil prices is likely to slow as the steepest decline in supply and fastest improvement in demand is likely behind us. WTI futures currently reside around USD 36/bbl, having printed a current base at USD 34.50/bbl, while its Brent counterpart found overnight support at USD 37/bbl. Looking ahead to next week, the OPEC and IEA monthly oil reports will be released but focus is likely to remain on the JMMC meeting and any accompanying sources, where the committee will review secondary source data alongside current market fundamentals before proposing policy recommendations. Sources last week said that OPEC+ is to move cautiously to rebalance the market amid easing lockdowns, while anticipated Shale resumptions could also weigh on eastern producers’ minds. Participants will also give credence to compliance and how the heads of the group plan to enforce full/over-compliance – namely among the known laggards Iraq and Nigeria – who reaffirmed commitment. On that front, Iraq has already hinted at possible problems regarding making up for its shortfall, whilst compliance enforcement also remains in question as producers are to “self-police” adherence to the pact. Elsewhere, spot gold continues to grind higher amid the softer USD with prices now above its 50 DMA at USD 1729.70 as it eyes its 100 DMA at USD 1744.55/oz. Copper tracks the recovery in stocks with added impetus from a weaker Buck.

US Event Calendar

  • 8:30am: Import Price Index MoM, est. 0.6%, prior -2.6%; YoY, est. -6.4%, prior -6.8%
  • 8:30am: Export Price Index MoM, est. 0.5%, prior -3.3%; YoY, prior -7.0%
  • 10am: U. of Mich. Sentiment, est. 75, prior 72.3; Current Conditions, est. 85.2, prior 82.3; Expectations, est. 69, prior 65.9

DB’s Jim Reid concludes the overnight wrap

Happy birthday to me today and a move firmly closer to 50 than 40. My birthday present is looking after the kids tomorrow while my wife has a covid-19 antibody test. Readers with a long memory will remember that our Xmas holiday in the Alps was ruined by my wife being ill in bed for two weeks with what we thought was awful flu. She struggled to breathe, couldn’t move without feeling shattered and lost her taste. As Covid-19 subsequently started to spread around the world we did wonder whether she was a very early victim. Clearly this test won’t prove it but it may give us some additional info. If she did have it then, it’s fascinating with regards to the timing and because the rest of us just had bad coughs at worse at the time. So possibly expect me to have wild theories about Covid-19 on Monday. All bets off if she tests negative though.

Staying with the virus, earlier this week we highlighted Robin Winkler’s excellent analysis ( link here ) on the risk of a second wave in certain US states. Well over the last 24 hours the market has certainly become much more concerned about this, with yesterday being the worst day for equities since March. In today’s pdf (click on “view report”) we show the problem US states in terms of the virus in the context of our usual case and fatality tables.

The states that look most problematic currently are California, Texas, Florida and Arizona. The first three are the largest states in terms of population in the US (combined at 90.5 million people) and all have seen growing cases rates in the last 2 weeks. While Arizona is a somewhat smaller state (7.3mn), it has the fastest growth rate in the last week. While these states have not seen the sort of case numbers that New York has (fourth in overall population and nearly 20,000 total cases per million), the total case per million for each of those states is between 2,700-4,100. This is similar to the numbers out of Italy and France and just below the U.K. even if fatalities in these states are so far relatively low. See the full tables for more.

However, unlike in European countries and New York today, cases in these states are continuing to rise. California enacted shutdowns relatively early, but has not been able to bend its curve sufficiently with daily case growth between 1.5-3% for the last 33 days. Texas and Florida both were among the first to open, and have consequently not seen the same drop in case rates as other regions that remained closed. Florida in particular seems to have seen a ‘second wave’ of sorts over the past 2 weeks. Daily cases have risen by 1.9% on average over the past 14 days, while the 14 days prior to that was 1.5% on average. Texan cases have grown by 2.3% over the last 7 days, higher than the daily case rate 2 weeks back of 2.0%. To give an idea of how things have turned in Texas, Houston may need to reopen an emergency hospital that was set up in a stadium to accommodate possible hospital overflow. Arizona is one of the most worrisome states currently, with cases rising an average of 4.6% over the last 7 days, which is considerably higher than the daily rate 2 weeks back at 3.3%.

Using the rtlive effective transmission rates (Rt) that Robin references in his note, Florida, Texas and Arizona all have R-values over 1, indicating the virus is still actively spreading. California’s Rt is estimated at 0.97, but the confidence intervals extends north of 1, meaning the virus could still be spreading rather dwindling. An additional concern from this recent spike, or in some cases a lack of plateau, is what it might mean for the seasonality argument. These are some of the warmest states in the US, and if the virus is continuing to spread there it means the northern hemisphere has to perhaps tread more carefully this summer. Finally on this, our US economics team updated their Covid-19 impact tracker last night (link here). The report notes that even as overall cases continue to fall across the US, 20 states saw an increase in the growth rate of confirmed cases over the past 7 days.

As investors assessed the chances of a second wave in the US alongside some weak economic data, yesterday saw the biggest risk-off moves for financial markets since the initial March selloff. By the end of the session the S&P 500 had completed its 3rd successive move lower with a -5.89% fall. It was the first time the broad index had retreated for 3 straight days since March 9th. The selloff was incredibly broad, with every company in the index lower on the day except one (the supermarket Kroger rose +0.40%). The S&P opened down with a slightly more than -2% gap down and then steadily sold off throughout the session, trading in a fairly tight band. This was the worst day since March 16th (-11.98%) and the fourth worst day of this Covid crisis. Overall it was the 46th worst day for the S&P 500 out of all 23,221 trading days for the index going back to January 1928. The NASDAQ was not able to hide behind the Tech outperformance, falling -5.27% yesterday. The DOW was down -6.90% with Boeing (the second worst S&P performer) leading the charge and down -16.42%. In a further sign of sentiment erosion, the VIX volatility index rose by +13.2pts to its highest level in over 6 weeks – this was also the biggest one day move in the index since March 16th.

The weakness has continued into Asia this morning however the good news is that markets are well of their lows. As we type the Nikkei is down -0.74%, Hang Seng -1.27%, Shanghai Comp -0.38%, ASX -1.77% and Kospi -2.25%. In currency markets the US dollar index is up a further +0.11% this morning after the +0.81% gain yesterday. Meanwhile, yields on 10y USTs are up +2.5bps to 0.696% and futures on the S&P 500 are up +1.17%. Elsewhere, WTI oil prices are down -1.82% to $35.66.

In terms of the various snippets of newsflow overnight, North Korea has accused the US of breaking promises it made at a summit two years ago, saying the Trump administration had turned dreams for peace into “a dark nightmare” and diminished hopes for a denuclearization of the Korean Peninsula. In Europe, the head of the Single Resolution Board in Brussels warned against using taxpayer’s money to rescue lenders that were barely surviving before the coronavirus pandemic. She also said that proposals from some European officials to set up an EU-wide bad bank to buy soured loans are premature and probably unworkable because they’d hand a manager a “hodgepodge” of assets while adding, “I’m not very much convinced that a broad bank that is then collecting from everywhere is a manageable solution.”

Moving on. Even with fears of a second wave, US Treasury Secretary Mnuchin said in a CNBC interview yesterday that “We can’t shut down the economy again. I think we’ve learned that if you shut down the economy, you’re going to create more damage”. There’s little doubt that the US response to this virus has been far less coordinated than the EU’s even if the latter has been done by independent governments. When history writes the book on this pandemic it’ll be interesting as to which is economically better in the long-run. Chaos but with more short-term activity vs control but a deeper initial slump. The answer probably won’t be black and white, but without a vaccine the virus will either have to die out naturally, be totally suppressed by control, or we will have to revisit the concept of herd immunity at some point. I don’t think any of us can safely say which is the best long term strategy yet, although many will have very strong opinions.

Back to markets and looking at yesterday’s moves in more detail, energy companies led the equity declines (-9.45% in US and -6.19% in Europe) against the backdrop of serious falls in oil prices. In fact, both Brent (-7.62%) and WTI (-8.23%) each had their worst day in over 6 weeks, something that could well mean that this week finally sees the end to a run of 7 weekly gains. Oil-producing currencies took a hit too, with both the Norwegian Krone (-3.25%) and the Russian Ruble (-2.49%) weakening noticeably against the US dollar. There were smaller declines in Europe, as the US equity market continued to fall after Europe had closed. The STOXX 600 (-4.10%), the DAX (-4.47%) and the CAC 40 (-4.71%) all moved sharply lower. European banks were -7.04% with US banks -9.61% not helped by the zero for longer Fed message the previous night.

The big move away from risk saw investors move strongly into safe assets, with yields on 10yr Treasuries falling by -5.7bps, as those on 10yr bunds fell by -8.3bps. Periphery debt widened yesterday with both Spanish and Italian debt more than +3bps wider to German bunds. In FX markets, the safe haven Swiss Franc (-0.04% against USD) and the Japanese Yen (+0.23%) were the two strongest performing G10 currencies, while the dollar itself climbed +0.81% yesterday, following a run of 9 declines in the last 10 sessions. Highlighting the greenback and US equity correlation, the dollar had not rallied that much in one day since 19 March, the same week the S&P last fell as much as it did yesterday.

In terms of data, weekly initial jobless claims from the US fell to 1.542m (vs. 1.550m expected) in the week ending June 6th. Although this is the 10th consecutive weekly decline in the number of initial claims, more concerning was the dip in the number of continuing claims for the week ending May 30 to 20.929m, this was above the 20m reading expected, with the insured unemployment rate only falling to 14.4%, down just two-tenths from the previous week’s revised 14.6%. Taken together the report added to concerns that the improvements in labour markets as lockdowns are eased might not be as strong as many might have hoped for following last week’s jobs report.

In Europe, we got some further Brexit news yesterday as the FT reported that the long-awaited high-level talks between the two sides would be taking place this coming Monday. This will feature Prime Minister Johnson for the UK, along with European Commission President von der Leyen and European Council President Michel for the EU. This meeting is one that’s been planned for some time but further news broke later that more intense talks will follow over the next several weeks. Overnight, Bloomberg has reported that the UK’s Cabinet Office Minister Michael Gove will today detail a plan that will have the country introduce a temporary light-touch customs regime at its border with the European Union next year. The report suggests that the new light-touch border checks will come into force whether or not the UK and EU reach a new trade deal at the end of the year.

Wrapping now up with yesterday’s other data. Italian industrial production fell by -19.1% in April (vs. -24.0% expected), which follows a -28.4% decline in March. We also got US PPI data for May, which saw final demand producer prices rise +0.4% month-on-month (vs. +0.1% expected), rebounding from a -1.3% decline in May.

To the day ahead now, the data highlights include UK GDP for April and Euro Area industrial production for April, while from the US there’s the preliminary University of Michigan’s consumer sentiment index for June. We’ll also hear from the ECB’s Wunsch.

 

3A/ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 1.16 POINTS OR 0.04%  //Hang Sang CLOSED DOWN 178.77 POINTS OR 0.46%   /The Nikkei closed DOWN 167.43 POINTS OR 0.75%//Australia’s all ordinaires CLOSED DOWN 1.97%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0763 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0763 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0732 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC  : /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

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA

This is to be expected:  China’s new car sales fall 10% year and year (and 20% sequentially for the first week of june//they were hoping for a rebound which is just not there.

(zerohedge)

 

China New Car Sales Fall 10% Year-Over-Year And 20% Sequentially For The First Week Of June

It’s going to be tough to peddle the narrative that things are back on an upswing with the auto industry in China after retail car sales fell 10% year over year – but more importantly 20% from the same period in May – in the first week of June.

This comes after what looked like the beginning of a rebound for the industry in May, to the extent that we can trust the numbers coming out of Beijing. According to Bloomberg, China’s PCA now expects that retail sales will decline in June in part to what is being called “seasonal factors”.

This news comes despite better than expected results in May, where sales showed a 12% increase year over year.

According to The Detroit Bureaupremium and luxury passenger car retail sales led the charge in May, rising 28% last month compared with year-ago results. Those vehicles accounted for 1.61 million of the month’s 2.14 million vehicles sold.

Tesla helped along with China’s May luxury sales number, selling 11,065 Model 3’s during the month compared to just the 3,635 vehicles it sold in April. However, that hasn’t stopped the company’s VP of Business Development in China, Robin Ren, from leaving the company, according to Bloomberg.

The China Association of Automobile Manufacturers, or CAAM, had predicted an 11.7% jump for May, including commercial vehicle sales in its results. Predictions for June look ominous: the CPCA has said that June sales will decline in part because June 2019 was such a strong month for the industry.

Meanwhile, the Chinese government is on the cusp of attempting to spur demand with new policies aimed at enticing buyers, according to Bloomberg, citing an unnamed automotive industry group in China.

Outlook for the year in China remains less-than-optimistic. The CAAM predicts that sales will drop 15% to 25% for the year, depending on whether or not the country is able to further slow the spread of the virus.

 end

4/EUROPEAN AFFAIRS

CORONAVIRUS/UK

This is why older guys like myself must be careful: over 95% of Covid 19 deaths had pre existing conditions

(Off-Guardian.org)

Over 95% Of UK “COVID-19” Deaths Had “Pre-Existing Condition”

Via Off-Guardian.org,

Over 95% of “COVID Deaths” recorded in England and Wales had potentially serious comorbidities, according to statistics released by NHS England.

The latest figures make for pretty stark reading. Or, rather, they would make for stark reading…if they didn’t follow the exact same pattern already shown in other nations around the world.

You can read the full report here. We’re going to focus on the comorbidity stats. Here are the number of deaths where Covid19 was listed as the only cause, split by age:

  • Ages 0-19: 3
  • Ages 20-39: 32
  • Ages 40-59: 255
  • Ages 60-79: 551
  • Ages 80+: 477

These are across all of England and Wales since the beginning of the “pandemic”.

Simply put: Of the 27045 deaths with Covid19 in English hospitals (up to June 3rd), only 1318 had no pre-existing conditions. That’s less than 5%.

This mirrors, almost exactly, the statistics reported in Italy back in March.

Christopher Bowyer has made some great graphs for the figures at Hector Drummond Magazine, none more impactful than this this:

Those big green bars are all the people who died “with” Covid19 AND some other serious disease. The little yellow bars are the people who died with Covid19 and nothing else.

In fact, the 25,727 other cases were listed as having over 42,000 comorbidities. That’s almost 2 each (the report itself points out that many patients had multiple conditions). This, again, aligns completely with the Italian figures which said over 80% of fatalities had at least 2 comorbidities.

What are these comorbidities? We don’t know. Not entirely specifically. The report lists ischemic heart disease, chronic kidney disease, asthma and dementia among others. But it also lists nearly 19,000 “other” conditions, presumably including liver failure, emphysema, AIDS, ALL forms of cancers and literally potentially thousands of other diseases.

Implicit in this is the possibility that these diseases were the actual cause of death, and that Covid19 played no direct role at all.

Further, the PCR test for coronavirus can return false positives in up to 80% of cases, so it’s entirely possible the majority of these deaths never even had the virus.

This isn’t breaking news. We have covered this numerous times.

No matter how you switch them around the Covid numbers, as they currently stand, will never add up.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

Bill Blain talks about the rout on the stock markets yesterday and its meaning!
(Bill Blain)

Blain: “We Have Reached A Curious Limbo In Markets”

Authored by Bill Blain via Morning Porridge.com,

“When Black Friday comes, I’ll stand by the door, and catch the grey men when they dive from the fourteenth floor.”

“The worst day since March!”  The commentariat is full of stuff like “markets got creamed”, a “new sell off to new lows is coming”, and “market froth blown away”. Whatever. Yesterday’s 6% market stumble on the back of Fed Chair Powell’s comments about economic and jobs weakness, and signs of rising virus infections across the US, triggered the biggest market dip in weeks.

Is it a buy the dip or run for the hills moment?

Across the US, the Robin Hood Army of retail investors and day traders will be licking their wounds. Gosh… who knew bankrupt companies are worth diddly squat? You have to giggle at Hertz trying to raise equity on the back of its surprise rally: “Hertz looks at the market an sees there is a group of irrational traders who are buying the stock, and seek to sell stock to these people,” said a US law professor. Hertz and their advisors don’t seem to have figured the nature of the current high volume, shift it quick, get quick day-trading mentality.

Meanwhile, market strategists are high-fiving themselves for correctly calling the market slide – as they have diligently done every day since the market bottomed on March 23rd. (For the record – the market has still risen 35% since its March nadir.)

If only we were as clever and possessing such clear foresight as the beloved leader. Donald Trump tweeted to remind us: 

The Federal Reserve is wrong so often. I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of the best ever years in 2021. We will also soon have a Vaccine and Therapeutics/Cure. WATCH!.”

Powell’s foolish mistake was to caution markets the US is going to face an extended period where it will be difficult for many people to find work.” The blithering fool. If only he’d said – “ these are not the droids you are looking for.. There is nothing to worry about, we promise to keep giving investors free money so they will believe the economy is in great shape”.

The reality? 

The real world news is unremittingly bad. It’s is going to get worse. No one is paying much attention because the world is fixated on pulling down statues, virtue signalling, while politicians earnestly gaslight each other into supporting the unsupportable… Those who forget the past are doomed to repeat it. 

Check this morning’s news flow on the real economy – some random selections for you:

Another 1.5 million Americans went looking for jobs last week according the initial unemployment claims data. 

The UK economy shrunk by 20.4% in April! As Rishi Sunak might say: “thats a severe impact on our economy.”

The US economy is in such great shape, Steven Mnuchin is planning a second round of stimulus cheques.

Infections in India now exceed the UK. Nations like Yemen have seen their health services overwhelmed.

Despite an improvement in the outlook, the WSJ monthly survey predicts a 5.9% decline in US GDP this year. (Unemployment will fall to 9.6% – which is a much bigger number than January 2020 at 3.6%, and just less than the 10% peak seen in 2009.)

US Households saw their net worth decline 5.6% in Q1, the fastest rate of decline since 1950s, and it will fall further in Q2.

UK Banks are pulling back on mortgage offers – house prices are falling. 

The FT says over 100,000 UK jobs are on the line immediately – over one million may be lost by year end. Centrica, Johnson Matthey, Nissan and Bombardier have cut over 5000 jobs this week. 

Yet… markets will probably not crash. 

We have reached a curious limbo in markets. For the last 10 years markets have been hopelessly dislocated by Central Bank interventions, NIRP and ZIRP, QE Infinity and regulatory blunder. The result of unlimited liquidity and central bank puts, means all the dosh pumped into markets remains invested in financial assets. We have seen massive financial asset inflation as a result. 

It’s equally true in stocks. Investors have been forced out of bonds into stocks in search of returns. A stock that once cost $1 to yield 10%, now costs $10 and yields 1% – yet it make the same profits each year. You get the drift? Its financial asset inflation.

To get the same return from investments you made 10 years ago, you have to invest 10 times as much.. which is why most of us will never ever be able to retire. Dang!

We are now stuck in what my chum Bill Dinning of Waverton calls The New Stagflation – a stagnant economy and inflated financial asset prices. There is now so much liquidity in financial assets – much of sitting waiting to be put to work – that any opportunity to buy stocks cheap is going to be seized..

The only alternative is to actually put money to work in the real world – but as that slew of bad news above shows… who would want to take that risk???

Today’s lesson? 

How about the financial asset universe of stocks and bonds is completely overpriced and makes zero rational sense. But because the outlook for the real economy is so dismal, there is so much money waiting to buy any meaningful dip, and global central banks are prepared to backstop everything via QE Infinity…. Buy Financial Assets!

Oh dear… I need a break…

end

Good Bellwether for world growth:  basically zero

(zerohedge)

Caterpillar Sales Plunge Most In A Decade

Once upon a time Caterpillar was seen as a harbinger not only for heavy-equipment producers, but – in a simpler time before tech took over – the entire market. And while CAT’s impact may have changed in the past decade, it still remains an important beacon of trends in the industrial and manufacturing economy. And unfortunately based on its latest retail sales published today, a lot of pain is coming.

In May, Caterpillar’s machinery sales dropped by the most in over a decade both across the world and in the Americas, where the company has extended plant shutdowns.

As shown below, North America sales plunged 36% on a rolling three-month basis, the most since January 2010 and far worse than the 27% drop posted in April, while sales in Latin America had the biggest decline since December 2016. And despite a modest slowdown in the deterioration across Asia/Pac which declined by just 1% following a 22% drop in March as China has successfully re-emerged from its February lockdown, overall global sales dropped by the most since the start of 2010.

Today’s data come one day after the company was reported to be keeping some of its plants across North and South America shut for longer than expected due to lack of demand. According to Bloomberg, the figures “underscore concerns over prospects for a halting recovery at the heavy-equipment maker after coronavirus shutdowns dented the profit outlooks for miners and construction companies.”

Ahead of the retail data, BMO analyst Joel Tiss downgraded Caterpillar’s stock to a hold, citing a “catatonic recovery” warning that near-term recovery of the company’s end markets will be challenged by customers’ budgetary constraints and stretched government finances.

CAT stock, which clearly is not too popular on Robinhood, is down 16% this year.

7. OIL ISSUES

VENEZUELA

They are now down to one oil rig and one natural gas rig

Paraskova/OilPrice.com

Country With World’s Largest Oil Reserves Has Only One Rig Left

Authored by Tsvetana Paraskova via OilPrice.com,

The collapse in oil prices and the tightening U.S. sanctionsagainst Venezuela have accelerated the decline of the oil industryin the country sitting on the largest crude oil reserves in the world.

As of May, Venezuela’s rig count plunged to just two, data from Baker Hughes shows, as production slipped by 16 percent to 645,700 barrels per day (bpd), Bloomberg reported on Thursday, citing documents containing production data it has seen.

Of the two active rigs in Venezuela last month, one was working at an oilfield and another one was drilling for gas, according to Bloomberg. Those rigs are working in the Orinoco oil belt, where Venezuela’s state oil firm PDVSA operates oilfields in joint ventures with foreign firms, sources familiar with the matter told Bloomberg.

Venezuela’s oil industry was collapsing even before the oil price crash and the pandemic, due to the increasingly stricter sanctions in the U.S. maximum pressure campaign against Nicolas Maduro’s regime and its sources of revenues. Oil income is pretty much the only hard currency that Maduro gets, so the U.S. is looking to stifle as much of Venezuela’s oil trade as possible.

In addition, PDVSA is severely cash-strapped and hasn’t invested in repair and maintenance of oil facilities and refineries in years.

The price crash and the COVID-19 pandemic further exacerbated the crisis in Venezuela’s oil sector and PDVSA started shutting oilfields because of fewer international customers for Venezuelan oil, Bloomberg reports.

In March, Venezuela had 25 operational oil and gas rigs, according to the Baker Hughes international rig count data.

Venezuela has seen some reprieve recently in its fuel shortage problem, after Iranian tankers shipped gasoline and refining components to the Latin American country in an open defiance of the U.S. sanctions.

Maduro’s regime tried to alleviate the fuel shortage in the country home to the world’s biggest oil reserves, but a new scheme of subsidized gasoline failed to put an end to the long lines in which Venezuelans queued to fill their cars with fuel.

END

8 EMERGING MARKET ISSUES

INDIA/CORONAVIRUS UPDATE//THE GLOBE

India Confirms More Than 10k COVID-19 Infections For First Time, Brazilian Total Tops 800k: Live Updates

Summary:

  • For first time, India reports more than 10k cases in a day
  • Delhi accused of undercounting COVID-19 deaths
  • WHO warns global outbreak is worsening
  • England sees encouraging reduction in viral spread
  • Brazil, Russia, Mexico, India lead surge in global cases
  • Brazil crosses 800k cases
  • Beijing delays school reopening after finding 3 new cases

* * *

Update (0800ET): For the first time since the coronavirus arrived in India back in late January, the country’s public health officials have counted more than 10,000 confirmed new cases in a day.

Norbert Elekes@NorbertElekes

INDIA: For the first time since coronavirus outbreak, more than 10,000 new cases have been reported in a single day.

 

Earlier this week, while many Americans (and many more abroad) were focused on the demonstrations sparked by the murder of George Floyd in Minneapolis PD custody, WHO Director-General Dr. Tedros Adhanom Ghebreyesus warned during one of the NGO’s regular press briefings in Geneva that “although the situation in Europe is improving, globally it is worsening.”

That formidable reality hit the market like a brick through a Starbucks window on Thursday, as the Dow plunged nearly 2000 points in a brief but painful reminder of March’s untenable market conditions.

But since then, millions of Americans have gotten free money from the government in the form of “enhanced” unemployment benefits and, of course, the stim check – but we digress. Like Dr. Tedros said, the number of new cases confirmed daily across the world has continued to climb, following a brief plateau, as India, Mexico, Brazil and Russia have emerged as the new global hotspots.

Indian PM Narendra Modi won plaudits for a restrictive lockdown that began in late March and endured until this week. But as restrictions have eased over the last month, it appears the number of newly reported cases has surged beyond the level that could have been justified by the increase in testing capacity alone. Using a logarithmic scale helps highlight the magnitude of the outbreak, which as many have argued, doesn’t constitute a ‘second wave’, since the first wave never really receded.

Adding to the uncomfortable spotlight on India, the FT reported last night on allegations that the government in New Delhi has been under-reporting coronavirus deaths as the country eases its strict lockdown in an attempt to kick-start the economy.

Citing doctors at five of the 15 hospitals in the capital city, which, along with Mumbai, is one of the two worst-hit areas of the world’s second most-populous country, the FT claimed that the number of dead killed by the virus in the city has far outstripped the official numbers reported to public health officials. The figures provided by the doctors exceeded the official tally by more than 100 deaths. And that’s just across 5 hospitals in the city. At this rate, India is report nearly 400 deaths a day, the highest levels since the virus arrived in the country.

After moving to swiftly address signs of a resurgent outbreak in Wuhan and in a northeastern province, Chinese health officials on Friday announced that they had discovered 2 new cases of the virus over the last 24 hours. The two infected individuals who live in the city’s Fengtai district are said to be colleagues. In response, the city is cleaning a local market, and delaying the reopening of in-class school after finding 3 new cases.

We reported last night that Houston, Texas is weighing whether to reopen an emergency COVID-19 hospital that was never used as the number if cases in the area surges, while officials consider whether to reimpose a stay-at-home order.

On CNBC, one reporter described the picture in the US as “a tale of two countries” with states in the south and west reporting a sharp upsurge in cases and hospitalizations, while the Greater New York area continues to see cases and deaths fall to lows not seen since the early days of the pandemic. In some states, like Oregon, testing and contact-tracing have been blamed for the uptick in new cases, while Arizona, which reopened much more quickly than Oregon, has seen new cases outstrip the increase in testing.

According to the NYT, 23 states are seeing the number of new cases increasing on a daily basis.

Source: NYT

As the death toll skyrockets in Brazil, volunteers critical of President Jair Bolsonaro’s response (or rather, lack thereof) dug 100 graves with black crosses on Rio’s Copacabana Beach in memory of the 40,000 Brazilians who have succumbed to the virus, according to official numbers, NPR reports.

The protest was held after Brazilian public health officials reported 30,412 new cases of the virus and 1,239 new deaths, for a total of 802,828 cases and 40,919 deaths.

Like India, Brazil has been repeatedly accused of underreporting both cases and deaths; on both, Brazil ranks second only to the US.

Meanwhile in Europe, even the UK, which has struggled with a particularly intractable outbreak, is finally seeing evidence of a sustained decline. The number of people with the virus in England continues to fall, according to a weekly infection survey by the ONS. It follows news that the UK economy shrank at a record 20.4% in April, the largest contraction on record.

END

 

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

Euro/USA 1.1314 UP .0026 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS/UPDATE /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL GREEN

 

 

USA/JAPAN YEN 107.34 UP 0.542 (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 1.2632   UP  0.0059  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3551 DOWN .0087 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  FRIDAY morning in Europe, the Euro ROSE BY 26 basis points, trading now ABOVE the important 1.08 level RISING to 1.1314 Last night Shanghai COMPOSITE CLOSED DOWN 1.16 POINTS OR 0.04% 

 

//Hang Sang CLOSED DOWN 178.77 POINTS OR 0.73%

/AUSTRALIA CLOSED DOWN 1,97%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 178.77 POINTS OR 0.73%

 

 

/SHANGHAI CLOSED DOWN 1.16 POINTS OR 0.04%

 

Australia BOURSE CLOSED DOWN 1.97% 

 

 

Nikkei (Japan) CLOSED DOWN 167.43  POINTS OR 0.75%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1737.05

silver:$17.65-

Early FRIDAY morning USA 10 year bond yield: 0.71% !!! UP 3 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.46 UP 6  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 96.67 DOWN 7 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.56% DOWN 3 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +02%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.59%//DOWN 3 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,45 DOWN 4 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 86 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.44% IN BASIS POINTS ON THE DAY//

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

 

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.1245  DOWN     .0042 or 42 basis points

USA/Japan: 107.35 UP .555 OR YEN DOWN 56  basis points/

Great Britain/USA 1.2535 UP .0039 POUND DOWN 39  BASIS POINTS)

Canadian dollar UP 36 basis points to 1.3601

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0834    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0795  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8303 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield UP 1 IN basis points from THURSDAY at 0.69 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.44 UP 4 in basis points on the day

Your closing USA dollar index, 97.21 UP 48  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 FRIDAY: 12:00 PM

London: CLOSED UP 4.57 OR  0.08%

German Dax :  CLOSED DOWN 71.01 POINTS OR .59%

 

Paris Cac CLOSED DOWN 1.00 POINTS 0.02%

Spain IBEX CLOSED DOWN 31.60 POINTS or 0.43%

Italian MIB: CLOSED UP 14.16 POINTS OR 0.08%

 

 

 

 

 

WTI Oil price; 35.54 12:00  PM  EST

Brent Oil: 38.80 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    69.64  THE CROSS LOWER BY 0.53 RUBLES/DOLLAR (RUBLE HIGHER BY 53 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.44 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 :  36.75//

 

 

BRENT :  38.87

USA 10 YR BOND YIELD: … 0.70..plus 3 basis points…

 

 

 

USA 30 YR BOND YIELD:1.46 plus 5 basis points

 

 

 

 

 

EURO/USA 1.1247 ( DOWN 42   BASIS POINTS)

USA/JAPANESE YEN:107.42 UP .614 (YEN UP 62 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.21 UP 48 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2514 DOWN 60  POINTS

 

the Turkish lira close: 6.8170

 

 

the Russian rouble 69.81   UP 0.36 Roubles against the uSA dollar.( UP 36 BASIS POINTS)

Canadian dollar:  1.3592 UP 47 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-.344%

 

The Dow closed UP 477.37 POINTS OR 1.90%

 

NASDAQ closed UP 96.08 POINTS OR 1.01%

 


VOLATILITY INDEX:  36.19 CLOSED DOWN 4.60

LIBOR 3 MONTH DURATION: 0.313%//libor dropping like a stone

LIBOR/OIS: .248%

TED SPREAD:  (3 MONTH TREASURY VS LIBOR) = .143%

 

USA trading today in Graph Form

Rollercoaster Session Fails To Dent Retail Euphoria

In the end, that “gamma neutral” level in the S&P at 3,046 which we highlighted earlier,  proved too much for the bulls…

… with stocks failing to rise above it after a curiously diagonal overnight levitation faded in early trading, followed by a subsequent bounce that got just shy of the neutral line before drifting lower for the rest of the day.

Stocks were looking ugly, with the ES below 3,000 when another 3:30pm ramp saved the S&P, as stocks ramped higher with barely any red candles in the last half hour of trading.

Besides gamma, what else drove Friday’s market? Although it’s unclear exactly what’s led to today’s rollercoaster moves that saw the Dow surge more than 800 points before sliding in the red and recovering some of the gains, several headlines weighed on the markets in early trading:

  • WHO Director-General Tedros said the pandemic is escalating globally and the virus will wreak more havoc.
  • The CDC said that if cases go up again dramatically, mitigation efforts as seen in March may be needed again.
  • Florida Covid cases rise 2.8% vs pervious 7-day average of 2.0%
  • The Fed said in its semi-annual report to Congress that the economic damage from the recession may be “persistent” as a collapse in consumer demand could bankrupt many businesses, and there’s uncertainty about future demand and productivity as firms shift production processes, which could lead to lower wages

In any case, there was no coherent market catalyst in either direction, which is probably why the VIX gyrated just as wildly, rising as high as 44 from a session low of 35 before trying to find a resting place somewhere in between.

One reason for the persistent volatility in the market is that it remains painfully illiquid as the following indicator shows: the turnover associated with a 1% range in the S&P’s 40DMA is near the lowest on record.

The volatility led to some amusing intraday incidents such as this tweet from Reuters: “We are deleting a video saying Wall Street had bounced back on Friday, which went out after stocks had turned negative.”

Reuters Business

@ReutersBiz

CORRECTION: We are deleting a video saying Wall Street had bounced back on Friday, which went out after stocks had turned negative

And speaking of early surges, the divergence between the day and night session has exploded, and is now the widest it has been since the start of May as a result of Thursday’s daytime rout even as overnight sessions remain largely upward bound.

While some have suggested that Thursday’s market rout was reminiscent to the start of the March puke, one place where it differs is the apparent lack of a funding shortage: FX basis swaps trade at levels suggesting that dollar-funding pressures are missing for the time being, which is largely thanks to the expanded swap lines announced in March between the Fed and most central banks. As Bloomberg’s Ye Xie writes, the lack of funding stress has “cut off the vicious feedback loop between stock declines and funding stress” which is good news for now, assuming the dollar doesn’t spike in the coming days.

It didn’t get much airplay today, but the PredictIt spread beteeen Biden and Trump remains at 13 points in the democrat’s favor. If this is accurate, expect a sharp drop in 2021 EPS according to Goldman, which recently said that in case of a blue sweep, the bank will slash 20 points from its 2021 S&P EPS forecast of 170.

While stocks gyrated wildly in the past three days, rates have been a sea of tranquility by comparison, and after the 10Y hit 0.95% last week, it has drifter lower along with much of the curve, closing around 0.70% on Friday in a dramatic flattening of the yield curve, which incidentally comes just as most sellside desks start pushing for steepeners as the 10Y approached 1%.

Other assets were relatively tame with oil inching fractionally higher, the Bloomberg Dollar Index up just 0.1% after some earlier volatility and gold rose 0.2%. Not even Bitcoin dared to move much.

Finally, while the broader market gyrated in a rollercoaster of illiquidity, one place where there was never any doubt was in Robinhood where the 20 biggest intraday moves were all additions… appropriately enough with bankrupt Hertz at the very top.

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/10:30 AM EST

Don’t Look Now But The Market’s Overnight Bounce Is Fading Fast

Where did all the Robinhood’rs go?

All the majors are now up less than 1%…

 

Dow futures are down over 500 from pre-open highs…

In context…

It seems the “buy-overnight, sell-day-session” trade is back…

Somebody call Kudlow or Mnuchin!!

end

Gamma Turns Negative As Futures Slide On Florida Covid Surge Report

Earlier this week we published an in-depth note from Goldman laying out “all you need to know” about gamma and option-driven equity flows, which explained why “gamma has the potential to be one of the most important non-fundamental flows in equity markets (particularly when “short gamma” causes volatility to accelerate), but tracking gamma is complex and dynamic.”

In this context, overnight Nomura’s Charlie McElligott described Thursday’s furious market moves from a “Greek” background, noting that the “Dealer gamma position flipped short midday yesterday in SPX/SPY consolidated options on the initial move through 3085 to the downside, which coincided with the level break lower around the EU cash equities close (where a number of large vol Dealers reside and thus, we often see signif moves in the US 10:45-11:45 EST window) and remained very heavy into/around the US cash close, when the majority of said US Dealer hedging occurs.”

And while McEligott then pointed out that the overnight bounce helped push spot above the “gamma neutral” line of 3046 “as those vol Dealer flows subsided and / or “reset”—specially on the variance swap delta hedging side” the sharp selling seen in the past few minutes following the report that Florida Covid-19 cases jumped 2.8% to 70,971, the biggest daily jump since May 1, and compared with an average increase of 2% in the previous seven days, as deaths among Florida residents reached 2,877, an increase of 1%…

… dealer gamma is once again back in the red and well below its neutral position of 3,045 meaning that absent a sharp  thrust higher – perhaps with the help of even more retail buying – the pressure for the rest of Friday’s session will be to the downside as dealers will be now forced to chase stocks lower.

end
Early this afternoon:

“Everything’s Red” – Dow Futures Erase 800 Point Dead-Cat-Bounce

Well that escalated quickly… again!

Worrisome virus data appeared to be the catalyst for some of the move but to be frank, the entire rise off the lows in March made no sense so trying to explain this intraday collapse is momentarily useless…

All major US equity indices are now red for the day…

Interestingly, while the dollar is up, bonds and gold are trading lower still.

end

ii)Market data/USA

Import export prices plummeted in April but got a mild rebound in May…however petroleum costs soar

(zerohedge)

Import/Export Price Collapse Slows As Petroleum Costs Soar

After import and export prices plummeted in April, analysts expected a modest rebound and were right with import prices up 1.0% MoM and export prices rising 0.5% MoM (both around expectations).

This rebound created a very modest “rebound” in YoY price changes (both still down 6.0%)…

Source: Bloomberg

The rebound was led by a surge in mining and petroleum import costs…

This, along with the rise in CPI and PPI confirms costs of living in America are rising for the average joe, despite the headline disinflatioanry prints.

end

iii) Important USA Economic Stories

Quite a story: Goldman Sachs is doing everything possible to avoid a criminal guilty plea in that Malaysia case (1MDB)

(zerohedge)

Goldman Resists DoJ Pressure To Plead Guilty In 1MDB Case

Late last year, reports about Goldman Sachs reaching a settlement with the DoJ that – importantly – would allow the bank to avoid a criminal guilty plea left investors with the impression that, like the bank’s previous transgressions, Goldman’s slate would be wiped clean after a modest payout.

But as more third-party organizations raised questions about AG Barr’s connection to Kirkland Ellis, the law firm representing Goldman in the case (Barr received an ethics waiver, along with prosecutor Jeremy Rosen, also a K&E alum), and questioned whether the Trump Administration was trying to hide an attempt to forgive a serious example of corporate malfeasance involving a firm with connections reaching to the highest levels of the administration (several senior officials, including Treasury Secretary Steven Mnuchin, are Goldman alumni).

After months of radio silence on the case, the head of all criminal prosecutions at DoJ suddenly announced earlier this week that he planned to step down, despite several major publicity wins, including the prosecution of “El Chapo”. Brian Benczkowski, the above-mentioned department head, oversaw many cases, including 1MDB. He said he was leaving to spend more time with the family. Barely one day later, the New York Times published a report claiming Goldman is backing away from a settlement with the DoJ because of demands that any settlement include the criminal guilty plea that Goldman is desperate to avoid (it’s relatively brief rap sheet is a point of pride for the company, even if its brand reputation doesn’t necessarily reflect this).

Lawyers for the bank have asked Deputy Attorney General Jeffrey Rosen to review demands by some federal prosecutors that Goldman pay more than $2 billion in fines and plead guilty to a felony charge, according to three people briefed on the matter.

The bank has sought to pay a lower fine and avoid a guilty plea, according to the people, who spoke on condition of anonymity because the talks are continuing.

The request, which was made several weeks ago, is not unusual for a high-profile corporate investigation and often comes in the final stage of settlement talks. But it has been a point of pride for Goldman that it has never had to admit guilt in a federal investigation, and the scandal has already been a black eye for the bank.

Authorities in the United States and Malaysia say more than $2.7 billion was diverted from the fund, known as 1MDB, in a scheme that involved the flamboyant financier Jho Low, the country’s former prime minister, and other powerful people. The fund was meant to finance projects for the benefit of the people of Malaysia, but some of the cash went to buy luxury apartments, yachts, paintings and even finance the movie “The Wolf of Wall Street.”

With the sentencing for the government’s key cooperating witness – the Goldman banker who put the deal together – coming up, and a trial for a member of that banker’s team expected next year, a decision by Goldman to pull back could create even more drama and reputational damage surrounding the bank’s work on 1MDB.

Then again, if Goldman gambles by pulling back, and Joe Biden defeats Trump in November, the bank might be facing a DoJ with an even more aggressive mandate to pursue corporate crime.

END
Bankrupt Hertz
The world is nuts…Hertz issues bankrupt stock in order to fund themselves.  It is cheaper than debtor in possession money.
(zerohedge)

Hertz Trades 50% Higher On Plan To Sell Bankrupt Stock To Robinhooders

We have hit a permanently high plateau in amazement at the insanity going on in the market.

Yesterday we reported that Jefferies decided to turn the bankruptcy process on its head, by funding Hertz’ bankruptcy not by issuing a supersecured DIP loan but by selling up to $1 billion of the most unsecured asset possible, shares of bankrupt HTZ stock to the lunatic Robinhood daytraders that pushed it up even though said stock is mathematically worthless as confirmed by some $4 billion in Hertz bonds which are currently trading at around 40 cents on the dollar, meaning there is an over $2 billion hole before the equity is remotely in the money.

And while this unprecedented attempt to hold an Initial Bankruptcy Offering should be barred by the SEC, if not the bankruptcy judge, on purely moral grounds as it ensures that the retail investors who get suckered into this daylight robbery – call it a reverse Robinhood deal as it takes money from retail investors and hands it to the creditors who will be the true post-petition owners of the company – Hertz stock is 50% higher as robinhood traders, unable to grasp the simple math of how pre-petition bankruptcy claims are being filled, are buying the stock on expectations that other robinhood traders will buy it because, well… the company is selling stock, so my implication there must be demand.

We are closely watching to see if regulators step in and try to halt this “most absurd moment in the history of capital markets” because if they don’t and if Jefferies manages to pull off this “legendary” deal, that will be a greenlight moment that launches the most unprecedented white collar crime in history made possible by the Powell bubble.

end
What a joke!!

Hertz Wins Court Approval To Sell Worthless Stock In World’s First Initial Bankruptcy Offering

This is how fucked up our financial reality is: on Monday, when the market hit its absolute blow off top phase and Robinhooders sent the stock of bankrupt Hertz as high as $6.25, resulting in a market cap of just under $900 million, we joked that “we hope the company sells a few hundred million worth of stock – after all there is apparently endless demand for its shares – just so we can test the so-called “price discovery” of Powell’s latest and greatest FOMO bubble.”

Just five days later this absurdity is now fact.

Bringing us one stop closer to what we called “The Most Absurd Moment In The History Of Capital Markets“, Hertz just won bankruptcy court approval to sell (or at least try) up to $1 billion in worthless stock to maniac daytraders.

As Bloomberg reports, Judge Mary Walrath ruled that Hertz can go ahead with the offering, which we reported last night, could take in as much as $1 billion according to underwriter Jefferies.

There is still some chance that the SEC will stop this travesty, especially after the company told the court it would warn buyers that “the common stock could ultimately be worthless”, although we wouldn’t hold our breath.

The decision came just days after the The New York Stock Exchange starting proceedings to delist bankrupt Hertz’s stock.

So the next time someone asks where in the cycle we are, tell them a company is about to do something that has never been tried before: an Initial Bankruptcy Offering, where the proceeds from 10-year-old investors will go to making creditors that much closer to whole.

In short: we have officially entered the “absolute idiocy” phase thanks to Fed chair Jay Powell, who now owns this epic mess.

Hertz stock dropped as much as 8% on the news that the company will be selling worthless stock to teenagers, although since nothing matters in this giant Fed-backstopped game of hot potato, at this point the stock may go far, far higher as creditors manipulate their recovery via the upcoming equity offering and ignite another massive round of upward momentum so they can raise far more cash, something they would easily achieve if the stock is trading at $20 instead of $2.

end
Michael Every..on yesterday’s events
(Michael Every)

Rabobank: Why Are Stocks Up? Perhaps Grandmas In The East Are Buying The Dip That Crushed Crushed Children In The West

Submitted by Michael Every of Rabobank

“Do we get the emergency Fed meeting today or next week?”

I joke, of course. Yet that is what a host of financial market participants new and old will be thinking or hoping as they wake following a trading session which saw the Dow -6.9%, 10-year Treasury yields down 17bp at one point (now up 3bp to 0.70%), and the USD surge the most in two months against many crosses.

After all, if the Fed has just said no rate hikes for at least two and a half years and USD120bn of asset purchases a month for the next 12 months, and that still isn’t enough to prevent the market tumbling nearly 7%, then surely we need something extra done right now,…..right? Because the Fed can’t just sit there and do nothing,…can they? This kind of frightening volatility and potentially ruinous losses are just not fair! That’s not how this game works!

There is a great deal of nonsense on Twitter, now more than ever, but the odd gem too. One of the latter, I believe, describes at least a part of how the market got to the stage where it could fall so precipitously. A parent was complaining that half of their son’s Fortnite gaming companions were no longer joining his squad because they were all day-trading on a certain online platform associated with merry men instead. The boy in question is 10. Now this is entirely anecdotal – but seasoned professionals and journeymen will admit that the general level of market ridiculousness seen around us certainly fits that anecdote. To use Fortnite terminology for anyone reading (“Hi, day-trading 10-year old!”), what just happened is not a bug in our system: it is a feature.

S&P futures are up moderately again this morning following far smaller declines in Asian stock indices. Perhaps grandmothers in the east are buying the dip that crushed children in the West. Perhaps both will want to snap up the USD1bn in a new bankrupt stock offering from a US car rental company whose name tells you everything about how silly this market is: so silly it hertz.

Of course one of the triggers for this market emergency is the virus backdrop. New cases in the US continue to soar in parts of the economy, like Texas, that have re-opened. One wonders what the situation will look like a few weeks from now elsewhere in the States given the large numbers of protestors not able to engage in much social distancing.

This does not keep with the Panglossian market view that we are about to resume business as normal with the benefit of lower rates to boot. Yes, some places seem to have genuinely beaten this particular ‘bug’, most notably New Zealand, but they are still the exception not the rule. The US may indeed not lock down again regardless of what happens virus-wise, as Treasury Secretary Mnuchin underlined yesterday; yet the government can’t force people to stop undertaking a voluntary lockdown if they see virus case numbers spiking. (Indeed, it can’t seem to do lots of things at the moment.)

The UK, for example, where schools won’t now re-open until September and contact tracing won’t be working until the same date, is now talking about moderating the recently-imposed 14-day quarantine rule for new arrivals (that should have been imposed months ago), and perhaps relaxing the 2-metre rule to allow businesses to re-open. Why not make it 20 centimetres to ‘boost the economy’? The virus does not care what the politicians say – it will just do its own thing: and so will the public if case numbers spike again.

Always trying to accentuate the positive, the deeper the virus-induced downturn, the more likely we are to get further stimulus, says the market. Mnuchin was also talking about another USD1 trillion package at some point – a figure that now gets tossed around in the market in pretty nonchalant terms. Yes, that only replaces lost private-sector spending, but don’t expect markets to pay attention to details like that. Moreover, the longer people are locked down, the more grandmothers and 10-year olds there are stuck at home to day-trade all this stimulus as an alternative from Fortnite. It’s the stuff market dreams are made of. Until it isn’t, and you get Candy Crushed like yesterday. Then thoughts turn to the next central-bank intervention.

Meanwhile, on interventions, Larry The-Man-Who-Would-Be-King Summers, who lobbied to repeal Glass-Steagall, perhaps helped lose the Harvard endowment fund as much as USD1.8bn, and is now apparently advising the Biden campaign, has tweeted: “We should have higher corporate tax rates, full taxation of carried interest and capital gains, close loopholes that allow capital gains to escape taxation, tax penalties on leveraged buybacks and limit corporate interest deductibility.”

Far more to chew on there than we have room for in the Daily – but for many players in current markets such a change looming in November would surely be Game Over.

end
Trump angry at Microsoft for banning the sale of its facial recognition system to American police
(zerohedge)

MSFT Shares Briefly Drop After Trump Retweet

After Microsoft followed IBM and Amazon in banning the sale of its facial recognition system to American police:

“We will not sell facial recognition tech to police in the U.S. until there is a national law in place,” said Smith, speaking via video conference at a Washington Post event.

“We must pursue a national law to govern facial recognition grounded in the protection of human rights.”

President Trump has decided enough is enough and retweeted a brief note from Richard Grenell calling for Microsoft to be barred from federal contracts

Richard Grenell

@RichardGrenell

They should now be barred from federal government contracts – there should be consequences for not selling technology to police departments. @realDonaldTrump https://twitter.com/aclu/status/1271123787065503746 

ACLU

@ACLU

BREAKING: Microsoft just announced it will not sell face recognition technology to the police.

MSFT shares did briefly react, but dip-buyers rampaged back in…

Will it hold?

While Microsoft said it plans to wait until there is national legislation governing police use of the technology, the company has spent the first half of this year lobbying state governments to pass bills to permit the use of facial recognition by police.

What will this mean for the massive JEDI contract that Microsoft somewhat controversially won over Amazon?

end

Chaos in Seattle/CHAZ

(Michael Snyder)

It Only Took 2 Days For Seattle’s “Autonomous Zone” To Descend Into Chaos…

Authored by Michael Snyder via TheMostImportanTNews.com,

Protesters in Seattle decided that they were going to give us a living, breathing example of how the world should really operate.  The police were completely kicked out of a six block area of downtown Seattle, and armed guards were posted at all the entrances to the “Capital Hill Autonomous Zone” in order to make sure that their “utopia” would not be interrupted.  At first, people were dancing and singing in the streets, free food was being passed out to everyone, gardens were being started, and free movies were being played at night under the stars.  It was such a glorious beginning for “CHAZ”, but within hours major problems began to develop.

The protesters wanted to show everyone how compassionate they could be, and so they invited Seattle’s homeless population to share their free food.

Well, it turns out that the homeless people grabbed more of the food than they should have, and that created quite a crisis…

Yes, she was being quite serious.

If you live near CHAZ and you have extra “vegan meat substitutes, fruits, oats, soy products, etc.” laying around, there are some really hungry radicals that would really appreciate the help.

But please don’t bring them anything that has been heavily processed because that will just make them angry, and if you try to give them anything that contains real meat that could potentially set off a riot.

In addition to a looming food shortage, residents of CHAZ are also dealing with a leadership crisis.  Now that all the police are gone, it was just a matter of time before someone else took charge, and the person that has taken charge is a “heavily-armed” rapper named Raz Simone

Seattle’s new “autonomous zone” – a six-block area established by protesters after the police and National Guard pulled out of city’s Capitol Hill neighborhood – now has a ‘heavily-armed’ warlord, and he’s already enforcing his streets.

Soundcloud rapper Raz Simone and his entourage have claimed the Capitol Hill Autonomous Zone (CHAZ) as their territory – and have already been filmed regulating when a man wouldn’t stop spraying graffiti over an urban art installation, telling him “We are the police of this community now!”

Somehow Simone was able to get his hands on an AK-47, and even though we keep being told that these are “peaceful protests”, Simone has told those under his command that what they are facing “is war”

Simone, a local rapper with an AK-47 slung from his shoulder and a pistol attached to his hip, screamed, “This is war!” into a white-and-red megaphone and instructed armed paramilitaries to guard the barricades in shifts.

Before this stunt, hardly anyone had ever heard of Raz Simone, and I suppose that this is one way to make a name for yourself and sell a lot of records.

Ian Miles Cheong

@stillgray

A SoundCloud rapper becoming the warlord in an Antifa insurgency-controlled autonomous zone in Seattle is proof we live in a simulation.

View image on Twitter

At first, Washington Governor Jay Inslee insisted that he didn’t even know that activists had taken over a large section of downtown Seattle.

Later on, he changed his tune, and now he is saying that he is hoping for a peaceful resolution.

And hopefully that is precisely what we will see, but for now the protesters appear to be determined to dig in for the long haul.

Andy Ngô

@MrAndyNgo

Watch this news segment to better understand what is happening in the Seattle neighborhood occupied by far-left extremists. @GovInslee said he wasn’t aware this was even happening.

Embedded video

Needless to say, President Trump is not amused by any of this.

In fact, he is warning that if local officials do not shut down CHAZ, he will do it himself

President Trump issued a demand for Democratic controlled Seattle to be brought back under order immediately, as Antifa anarchists claimed control of a six-block zone and a police station.

“Radical Left Governor [of Washington, Jay Inslee] and the Mayor of Seattle are being taunted and played at a level that our great Country has never seen before,” Trump tweeted late on Wednesday.

“Take back your city NOW. If you don’t do it, I will. This is not a game. These ugly Anarchists must be stooped [sic] IMMEDIATELY. MOVE FAST!’” he continued.

It is hard to believe that this is actually happening in America.

But as I keep warning, what we have seen so far is just the beginning.  As economic conditions deteriorate, Americans are just going to get even angrier and even more frustrated.

On Thursday, we learned that another 1.5 million Americans filed new claims for unemployment benefits last week…

About 1.5 million Americans filed first-time applications for unemployment insurance last week, the Labor Department said Thursday. That pushes the tally of those who have made initial claims – a rough measure of layoffs – over the past 12 weeks to a staggering 44.1 million.

This wasn’t supposed to happen.  Once states started reopening, the tsunami of job losses was supposed to stop, but instead we continue to see Americans lose their jobs at a pace that is far beyond anything we have ever witnessed in all of U.S. history.

As I keep reminding my readers, the all-time record for a single week prior to this year was just 695,000.  So until we get below that level, nobody should even think of using the word “recovery” to describe what is happening.

The truth is that the U.S. economy continues to fall apart all around us, and at this point even the New York Times is admitting that damage has been done “to millions of interconnections” throughout our economic system…

The fabric of the economy has been ripped, with damage done to millions of interconnections — between workers and employers, companies and their suppliers, borrowers and lenders. Both the historical evidence from severe economic crises and the data available today point to enormous delayed effects.

“There’s a lot of denial here, as there was in the 1930s,” said Eric Rauchway, a historian at the University of California, Davis, who has written extensively about the Great Depression. “At the beginning of the Depression, nobody wanted to admit that it was a crisis. The actions the government took were not adequate to the scope of the problem, yet they were very quick to say there had been a turnaround.”

If you think that the anger that we have experienced so far is something, just wait until you see what is coming in the years ahead.

We have entered a very disturbing new chapter in U.S. history, and events are beginning to spiral out of control.

Tens of millions of Americans have already lost their jobs, and the very generous unemployment bonuses that they have been getting are set to expire at the end of July.

A great deal of economic pain is on the horizon, a long, hot summer awaits us, and this is an election year.

All of that adds up to big trouble, and more major societal turmoil could be sparked at any moment.

end
What on earth is this world coming to: Minneapolis City council votes to replace the police department with “community-led” model
What jerks.  The process will take up to one year…
(zerohedge)

Minneapolis City Council Votes To Replace Police Department With “Community-Led” Model 

The City of Minneapolis just took another step – albeit a small one – toward the “police-free future” that BLM activists, denizens of the CHAZ and the Democratic politicians who pander to them envision, as the “defund the police” movement gains momentum across the country. On Friday afternoon, members of the Minneapolis City Council who previously voted in a veto-proof majority to try and abolish the department again voted to take the next step toward pushing an agenda item that has virtually no chance of ever becoming a reality.

According to the latest vote, the council will begin a year-long process to gather input from various community stakeholders about what a future ‘public safety department’ might look like.

This latest news follows reports that the Buffalo man who was shoved to the ground by two officers during a protest earlier this month.

Here’s more according to Reuters:

The Minneapolis City Council on Friday unanimously passed a resolution to pursue a community-led public safety system to replace the police department following the death of George Floyd at the hands of the city’s police.

The move comes days after a veto-proof majority of the council voted to disband the police department after the country erupted in protest over the killing of Floyd, a black man who died when a white police officer knelt on his neck for nearly nine minutes.

“The murder of George Floyd on May 25, 2020, by Minneapolis police officers is a tragedy that shows that no amount of reforms will prevent lethal violence and abuse by some members of the Police Department against members of our community, especially Black people and people of color,” five council members wrote in the resolution.

But what did they actually accomplish:

According to the resolution, the city council will begin a year-long process of engaging “with every willing community member in Minneapolis” to come up with a new public safety model.

The council commissioned a new work group to deliver recommendations by July 24 on how to engage with community stakeholders to transform the public safety system.

Of course, Minneapolis Mayor Jacob Frey has said he supports “massive structural reform” of the department, but stopped short of supporting de-funding the police. At any rate, such a decision would likely require a public referendum, where it would likely be doomed to fail.

As we’re sure there aren’t too many self-respecting homeowners and others in the city who would prefer to make rappers-turned-activists-turned airbnb host-turned autonomous zone ‘warlord’ responsible for preventing chaos.

end
(Michael Snyder)

As Businesses Flee The Violence, Will Major US Cities Be Transformed Into Economic Wastelands?

Authored by Michael Snyder via TheMostImportantNews.com,

Urban communities all over the U.S. are now facing the possibility of a mass exodus of businesses, and many local leaders are freaking out because they realize what such a mass exodus will mean for their cities.  In the aftermath of George Floyd’s death, peaceful protests were held in more than 300 cities all across America, and a recent CNN poll found that 84 percent of all Americans supported those peaceful protests.  Unfortunately, rioting, looting and violence also erupted in major cities from coast to coast, and very little was done to suppress that violence.  As a result, the core areas of many of our largest cities now resemble war zones, and in the months ahead there will be a constant threat that the violence could flare up again at any time.

Needless to say, many businesses that have been torched or looted are going to be extremely hesitant to rebuild and start over in the same location when the same thing could easily happen again.

For example, one manufacturing company that proudly operated in the heart of Minneapolis for a long time has already made the decision to leave the city for good

The owner of a manufacturing company based in Minneapolis has decided to move his factory after law enforcement was unable to protect the plant from burning during riots.

The plant shut down early in anticipation of the second night of riots and to ensure the safety of employees, the Minneapolis Star Tribune reported. President and Owner of 7-Sigma Inc. Kris Wyrobek said a production supervisor and maintenance worker who live near the plant kept watch over the business and reported a fire at an apartment complex next door.

And in Chicago, Mayor Lori Lightfoot is saying that it will require a “Herculean effort” to prevent a mass exodus of businesses from happening…

Chicago Mayor Lori Lightfoot said it would take a “Herculean effort” to keep businesses open in disadvantaged neighborhoods after looting and damage that occurred during the first weekend of protests following the death of George Floyd.

“I’ve been on calls and text messages with people all day who fought hard to bring economic development to areas of the city, only to see the Walgreens, the CVS, the grocery store, everything vanish in an eye blink,” Lightfoot said on a May 31 call with distraught aldermen. “It’s going to take a Herculean effort on the part of all of us to convince businesses not to disappear, to come back. We’re prepared to fight that fight.”

Perhaps if a “Herculean effort” had been made to prevent the violence from happening in the first place, Chicago and other major cities would not be facing such a crisis today.

And many of the businesses that will remain open in the heart of our major cities will now look a whole lot different than they did before.

In Manhattan, the Saks Fifth Avenue store now closely resembles the U.S. embassy in Baghdad

The Saks Fifth Avenue flagship store in Manhattan is now lined with barbed wire fencing and attack dogs amid weeks of social unrest in the city.

Reuters says the luxury retailer hired a third-party security firm to protect the store and associates. Amid these unprecedented times, it was found necessary to line the store with chainlink fencing with barb wire on top and private security guards with attack dogs.

Of course most other stores in New York City did not take such precautions, and many of them got absolutely gutted as a result.

Thankfully, the violence has subsided in recent days, but chaos continues to reign in some of our biggest cities.

For example, a radical group of protesters has literally taken over a large chunk of downtown Seattle and has dubbed it the “Capitol Hill Autonomous Zone”

As protesters around the country demand that cities defund their police departments, one group of demonstrators in Seattle is out to prove they don’t need the law enforcement officers.

On Tuesday night, protesters from what is now known as the “Capitol Hill Autonomous Zone” (CHAZ) were joined by other demonstrators as they briefly occupied Seattle’s City Hall. Speakers called for the resignation of Mayor Jenny Durkan and the defunding of the Seattle Police Department before leaving the building about 1 a.m., chanting “defund SPD” as they returned to the zone.

In this “autonomous zone”, demonstrators are passing out free food to everyone and they want to show the world that society actually doesn’t need any police.

Meanwhile, angry protesters all over the nation continue to attack statues, monuments and other political symbols.  In fact, in one part of California there have been several incidents where American flags have been set on fire

Police are investigating a string of arsons, targeting Citrus Heights homes with American flags on display.

At least four homes were targeted in the Sungarden neighborhood early Saturday morning. So far, police say they don’t know the motive.

A charred pole is all that’s left of the American Flag that had been flying outside Marie Nuzzi’s home.

Hopefully things will start to cool down for a while, but everyone knows that another round of senseless violence could be sparked at any moment.

Yes, some businesses will stick it out and risk being torched or looted again, but many others will leave our major cities and never look back.

In the end, this could create a new cycle of crushing inner city poverty all over America, and that is something that none of us should want to see.

end

New Jersey’s tax collections are cratering and this should give us a good idea as to what is going on in that department throughout the entire 50 states.

(zerohedge)

 

New Jersey Tax Collections Crater By A Record 29%, Warns Of More Pain As Stimulus Ends

If New Jersey is indicative of states’ fiscal health across the nation, then state bailouts are imminent.

According to the Garden State Treasury Department, sales-tax collections for April, the first full month of the coronavirus shutdown, dropped by a record 29% in May from a year earlier, a decline that is about 60% greater than the worst month of the Great Recession.

“The Sales and Use Tax, the largest General Fund revenue source, reported collections of $544.1 million in May, down a remarkable 29.0 percent below last May” the report said. By comparison, the worst Sales Tax month during the Great Recession saw a decline of 18.4% in June 2009.

Year-to-date, Sales Tax collections of $8.074 billion are down 0.3% from the same period last year. Because the Sales Tax reports with a one-month lag, the May collections reflect consumer behavior during April, the first full month of COVID-based restrictions.

The NJ Treasury also noted that despite the unprecedented Sales Tax revenue decline, collections may have been slightly buoyed by direct federal stimulus payments to individuals. These payments peaked in April and were largely complete by the end of May, “suggesting that the stimulus effect will fade in subsequent months without additional federal assistance.”

Corporate taxes were also dismal: the Corporation Business Tax (CBT), the second largest General Fund revenue, generated $95.0 million, 31.0% below last May. Year-to-date, CBT collections of $2.821 billion are 13.2 percent below last year. May was the sixth consecutive month of declining CBT revenues. As with the GIT, Treasury expects some of the CBT revenue decline to be made up in July. However, since corporations have considerably greater tax planning opportunities compared to individuals, NJ warns this might reduce payments substantially given the current economic conditions.

Even more so than the Sales Tax, State fuels tax revenues were particularly hard hit this month. Motor Fuels Tax revenues of $15.2 million fell 58.8% and Petroleum Products Gross Receipts Tax revenues of $60.9 million dropped by 57.4% compared to the same month last year.

Due to the fallout from the COVID pandemic, the NJ Treasury reduced its FY 2020 revenue forecast by $2.7 billion; nearly all major revenues of note declined in May for the second consecutive month.

end

iv) Swamp commentaries

More stuff declassified. The documents suggest that the uSA intelligence officially declared the Steele dossier “highly politically sensitive as well as mostly uncorroborated.”

And these documents are written in 2016 well before the use of the dossier to the FISA court.

(John Solomon)

US Intel Officially Declared Steele Dossier “Highly Politically Sensitive” & Mostly Uncorroborated

Authored by John Solomon via JustTheNews.com,

Two months after the FBI used Christopher Steele’s dossier to support a warrant targeting the Trump campaign, U.S. intelligence officially declared his evidence was “highly politically sensitive,” minimally corroborated and not worthy of including in its analysis of Russian election interference, a newly declassified document shows.

The so-called Annex A of the official Russian election interference Intelligence Community Assessment was declassified this week by Director of National Intelligence John Ratcliffe, providing the most definitive proof to date that the U.S. intelligence in December 2016 as President Obama was leaving office was wary of a dossier that was essential to the FBI probe into now-disproven Trump-Russia collusion.

“An FBI source, using both identified and unidentified sub sources, volunteered highly politically sensitive information from the summer to the fall of 2016 on Russian influence efforts aimed at the US presidential election. We have only limited corroboration of the source reporting in this case and did not use it to reach the analytic conclusions of the CIA/FBI/NSA assessment,” the appendix stated.

The intelligence community assessment also warned that Steele appeared to have leaked his information to the media just before Trump was elected Nov. 8, 2016.

The source’s reporting appears to have been acquired by multiple western press organizations starting in October,” the annex stated.

The annex confirms Republicans’ long-held suspicions that the intelligence community saw the Steele dossier as suspect even as the FBI portrayed its allegations as verified to a FISA court starting in October 2016.

You can read the newly declassified document here…

end

Fed Sees “Alarming Picture” Of Small Business Health, COVID Has Exposed “Persistent Fragilities”

Amid 66 pages of groupthink and mumblespeak, The Fed’s just-released semi-annual Monetary Policy Report builds on Fed Chair Powell’s downbeat assessment of the way forward, throwing more cold water on the stock market’s hopes for a V-shaped recovery, saying that the COVID-19 outbreak was causing “tremendous human and economic hardship across the United States and around the world.”

 The strains on household and business balance sheets from the economic and financial shocks since March will likely create persistent fragilities. 

Key headlines include:

  • FED SAYS COLLAPSE IN DEMAND MAY ULTIMATELY BANKRUPT MANY BUSINESSES
  • FED SAYS DISRUPTIONS TO GLOBAL TRADE MAY ALSO RESULT IN A COSTLY RECONFIGURATION OF GLOBAL SUPPLY CHAINS
  • FED SAYS FUTURE PROGRESSION OF THE PANDEMIC REMAINS HIGHLY UNCERTAIN, WITH RESURGENCE OF THE OUTBREAK A SUBSTANTIAL RISK
  • FED SAYS EMPLOYMENT FOR LOWER-WAGE EARNERS 35% LOWER THAN IN FEBRUARY, COMPARED WITH 5% TO 15% LOWER FOR HIGHER-WAGE EARNERS
  • FED SAYS SOME SMALL BUSINESSES AND HIGHLY LEVERAGED FIRMS MIGHT HAVE TO SHUT DOWN PERMANENTLY OR DECLARE BANKRUPTCY
  • FED SAYS THE PATH AHEAD IS EXTRAORDINARILY UNCERTAIN
  • FED SAYS WIDESPREAD FAILURE OF SMALL BUSINESSES WOULD ADVERSELY ALTER THE ECONOMIC LANDSCAPE AND POTENTIALLY SLOW THE RECOVERY AND FUTURE LABOR PRODUCTIVITY GROWTH

And, perhaps the most important section of the entire document is as follows:

Despite aggressive fiscal and monetary policy actions,risks abroad are skewed to the downside.

The future progression of the pandemic remains highly uncertain, with resurgence of the outbreak a substantial risk. In addition, the economic damage of the recession may be quite persistent.

The collapse in demand may ultimately bankrupt many businesses, thereby reducing business dynamism and innovation. Unlike past recessions, services activity has dropped more sharply than manufacturing – with restrictions on movement severely curtailing expenditures on travel, tourism, restaurants, and recreation – and social-distancing requirements and attitudes may further weigh on the recovery in these sectors. Disruptions to global trade may also result in a costly reconfiguration of global supply chains. Persistently weak consumer and firm demand may push medium- and longer-term inflation expectations well below central bank targets, particularly in regions with already low inflation at the onset of the recession.

Finally, additional expansionary fiscal policies – possibly in response to future large-scale outbreaks of COVID-19 – could significantly increase government debt and add to sovereign risk, especially for countries with already limited fiscal space.

Of course The Fed offers its usual gruel, saying that to combat those hardships, it’s “committed to using its full range of tools to support the U.S. economy in this challenging time.”

But it appears the market is starting to wake up…

Federal Reserve Chairman Jerome Powell will testify before congressional committees on the new report Tuesday and Wednesday.

*  *  *

end
Trump was warned not to hire this deep stater:  John Bolton:  he now accuses Trump of misconduct with other countries in this new book(zero heddge)

John Bolton Book To ‘Go Beyond Ukraine’ – Accuse Trump Of ‘Misconduct With Other Countries’

Failed Trump handler John Bolton may not have gotten his Iran war – yet, but he’ll have his revenge on Donald J. Trump if it’s the last thing he does.

According to Axios, Bolton’s upcoming memoir, “The Room Where It Happened: A White House Memoir,” will reportedly offer “multiple revelations about Trump’s conduct in office,” according to a source familiar with the book.

Bolton will ‘go beyond Ukraine,’ and argue that Trump is guilty of ‘misconduct with other countries,’ an anonymous source told Axios.

Of note, the White House says Bolton’s manuscript contains classified material which could pose a national security risk, and will provide Bolton with a redacted copy by June 19, four days before its scheduled publication date.

According to Axios‘ Jonathan Swan, the Trump team is rattled because Bolton was known as ‘the most prolific note taker in high-level meetings,’ filling multiple yellow legal pads.

In short: Bolton saw a lot, and he wrote it down in real time. And when he left, the White House never got those notes back.”

end

I just cannot believe that this is going on!!

(zerohedge)

COVID-19 Political Risk – Dems Say ‘Yes’ To Antifa Protests, ‘No’ To Trump Rallies

As hundreds of thousands of Americans take to the streets in protest at systemic racism, capitalism, rich people, Trump supporters, white people, straight people, and civilized people (we are sure we are missing some instigators of violence here), politicians, leaders, and the liberal intelligentsia went out of their way to explain how COVID-19 had become a ‘woke’ virus of sorts.

On June 4, more than 1,200 public-health experts signed a letter saying the protests were “vital to the national public health and to the threatened health specifically of black people in the United States…

“…as public health advocates, we do not condemn these gatherings as risky for COVID-19 transmission. We support them as vital to the national public health and to the threatened health specifically of Black people in the United States.

… This should not be confused with a permissive stance on all gatherings, particularly protests against stay-home orders. ”

One protester in Minneapolis even claimed,

“Yes, corona is happening. It’s real, it’s deadly. But racism kills way more lives.”

We’d like to see the ‘math’ on that one.

This hypocritical malarkey was already exposed when considering the rabid reaction to “peaceful protesters” who urged their local officials nationwide to ease the lockdown and let them be free once again.

However, Democratic Party hypocrisy just went to ’11’ after President trump announced plans to restart his infamously well-attended rallies.

U.S. Rep. Val Demings, D-Fla., said in a tweet this week…

Rep. Val Demings

@RepValDemings

The president’s plan to hold mass rallies in Florida and elsewhere as we experience a resurgence in COVID cases is irresponsible and selfish. https://twitter.com/RepValDemings/status/1271109555108352002 

Rep. Val Demings

@RepValDemings

Unfortunately, Florida is experiencing a new surge in COVID-19 cases. I urge you to do everything you can to protect yourself and your neighbors. Wear a mask. Limit gatherings.

11.6K people are talking about this

And, as SaraACarter.com notes, Demings was not the only democrat to call out Trump rallies, U.S. Sen. Bernie Sanders of Vermont also tweeted:

“Trump wants 15,000 delegates cheering him at his GOP convention in Florida. No social distancing. His rejection of medical advice endangers not only those there but those they come in contact with. Trump’s a threat to the health and well-being of the country. He must be defeated.”

Bernie Sanders

@BernieSanders

Trump wants 15,000 delegates cheering him at his GOP convention in Florida. No social distancing. His rejection of medical advice endangers not only those there but those they come in contact with. Trump’s a threat to the health and well-being of the country. He must be defeated.

4,700 people are talking about this

And of course, no one has the least bit of shame in proclaiming this total and utter hypocrisy!

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

PART A

Powell Press Conference Highlights

  • 20m Americans unemployed; U6 Unemployment at 22m, 2m more possibly ‘miscoded’
  • May jobs a good surprise, however ‘employed but not at work’ adds 3 points to unemployment
  • We’re not even thinking about raising interest rates.”
  • When crisis is over, Fed will put its tools away
  • Fed is issuing loans, not free money
  • Sees good short-term developments, worries about long-term/structural economic damage
  • He doesn’t care that stocks are bubbling up; more concerned about the economy
  • The Fed is not racist; no place for racism in society (Did someone accuse the Fed of racism?)

Even after Powell’s virtue signaling, a reporter asked Powell what the Fed could do to fight inequality.  The Fed Chair issued a disquisition on basic economics.  Stripping way all the subterfuge, posturing and boasting in Powell’s press conference yields a very trenchant point: Powell fears that the US economy has sustained long-term, structural economic damage and workers will exit the workforce for years.

U.S. consumer prices post third straight monthly drop

The Labor Department said on Wednesday its consumer price index dipped 0.1% last month after plunging 0.8% in April, which was the largest decline since December 2008…

    Excluding the volatile food and energy components, the CPI slipped 0.1% in May after decreasing 0.4% in April, the largest drop since the series started in 1957. The so-called core CPI fell in March for the first time since January 2010…  https://www.reuters.com/article/us-usa-economy-inflation-idUSKBN23H1Y1

Markets Have Become “A Loaded, Wicked Game Attracting the Vulnerable & Desperate”

“At what point will Jay Powell and his colleagues at the Federal Reserve realize they have broken the market’s pricing mechanism?”…[They don’t care right now.]

https://www.zerohedge.com/markets/markets-have-become-loaded-wicked-game-attracting-vulnerable-desperate

White House will ‘seriously look at’ sending second round of stimulus checks to Americans, Mnuchin says [Stocks ignored this.]https://www.foxbusiness.com/money/mnuchin-trump-admin-to-seriously-look-at-more-direct-payments-in-next-coronavirus-relief-package

@kristina_wong: DNI Ratcliffe has declassified documents related to RussiaGate and ordered them sent to Congress. Big release expected imminently.

FBI knew Steele’s Russia research connected to Clinton, Dems from earliest interactions

Senate investigators seeking to obtain FBI notes, emails from summer 2016 detailing first interactions with Steele’s Russia research… the FBI agent who first interviewed Steele about his anti-Trump research in London on July 5, 2016was aware immediately of a connection to Clinton and that a separate office of the FBI passed along information from an informant by Aug. 2, 2016 that Simpson’s Fusion GPS was connected to the DNC…

https://justthenews.com/accountability/russia-and-ukraine-scandals/fbi-knew-steeles-russia-research-connected-clinton-dems

Fox’s @MattFinnFNC: Where were police during Minneapolis riots? Minneapolis police chief says “preservation of life” became the ultimate order – too many threats against outnumbered officers, potentially fatal confrontations [When things get hairy, you’re on your own!]

Black Lives Matter activist: ‘You don’t really need the police for much at all’

Mckesson says the Democrats’ new police reform legislation ‘doesn’t do enough’…local governments should shift many of their responsibilities to experts such as social workers

https://justthenews.com/government/congress/black-lives-matter-activist-you-dont-really-need-police-much-all

HBO Max Pulls ‘Gone With the Wind,’ While ‘Cops’ Gets Canceled

Moves come as entertainment companies reassess their content amid nationwide protests over racial injustice and police brutality   https://www.wsj.com/articles/hbo-max-pulls-gone-with-the-wind-11591754904

 

A professor at the University of California in Los Angeles says he was suspended from his job after refusing a student’s request to effectively cancel final exams for black students amid protests over the death of George Floyd…  https://nypost.com/2020/06/10/ucla-suspends-professor-for-refusing-leniency-for-black-students/

 

California deputy shot in head in ‘ambush’ attack, investigators say

https://www.foxnews.com/us/gunman-fires-shots-california-police-station-another-man-found-dead-nearby-investigators

 

Blaze TV’s @ElijahSchaffer: Antifa and BLM have broken into Seattle city hall despite their mayor @MayorJenny being beyond progressive.  They are demanding she resign since she won’t defund the Police.  This is the new normal in big cities of America.  https://twitter.com/ElijahSchaffer/status/1270570826585300994

 

Seattle protesters storm City Hall, demand mayor resign after driving police out of area, declaring autonomous zone  https://www.foxnews.com/us/seattle-city-hall-protesters-autonomous-zone

 

Antifa mob planning to take over more Seattle neighborhoods

Antifa are extorting money and businesses in the Capital Hill Zone for protection money,” said one of the officers who was previously stationed at the East Precinct.  “Those running this Capital Hill Zone are employing stop and frisk to anyone who walks through, and shaking down businesses for $500 for protection,” added another officer.

https://thepostmillennial.com/breaking-antifa-mob-planning-to-take-over-more-seattle-neighbourhoods

 

The Sacramento Bee: Defund the police? Some California Democrats ready to close state prison

https://www.sacbee.com/news/politics-government/capitol-alert/article243404096.html

 

@ColumbiaBugle: Tucker Carlson Destroying Senate Majority Leader Mitch McConnell & Other Cowardly Republicans For Appeasing The Left: “These people are cowards and they are liars. They pose as your protectors. They would sell you out for the price of lunch, and laugh as you were hauled away.  At the very least, they could point out the endless lying…”

https://twitter.com/ColumbiaBugle/status/1270522310542282752

 

Tucker Carlson: “The Rise of Left Wing Mobs in America”

“.. we’re becoming North KoreaWe now believe in blood guilt; we punish people for the sins of their relatives…we demand that the innocent plead guilty to things we know they didn’t do…then we order them to read their forced confessions in public…terrifying ideas now have free reign because nobody pushes back…some professional activist says something insane like “defund the police” – because that’s what professional activists do…and the rhetoric gets more disgusting.”…  https://www.zerohedge.com/political/tucker-carlson-rise-left-wing-mobs-america

 

@charliekirk11: Establishment Republicans are doing nothing to stand up against the leftist mob. Our country is in crisis and there is no courage in sightPeople are losing their lives at the hands of tyrants.

 

Wall Street Journal Staff Faults Column on Race by Former Top Editor

After a letter of protest from the newspaper’s union, Gerard Baker, now an editor at large, was reassigned to the opinion department…

https://www.nytimes.com/2020/06/09/business/wall-street-journal-gerard-baker-editor.html

 

Christopher Columbus statue toppled, thrown into lake at Virginia protest   https://trib.al/AijpoVn

 

Ex- Phil Prof @CHSommers: 1984 “Every record has been destroyed or falsified, every book has been rewritten…every statue and street and building has been renamed, every date has altered. And that process is continuing day by day and minute by minute. History has stopped.”

 

Ex-CIA analyst @BuckSexton: This cancellation frenzy of culture and history will not stop until enough Americans stand up for common sense, refuse to bend the knee, and stare right back at the woke mob

Until that happens, this only gets worse

 

The US Cultural Revolution is accelerating.  Free speech is gone.  The mob will try to ruin your life or career if you speak against their ideology.  People have gotten fired for saying “All lives matter”.  Books and movies are being banned.  Statues and monuments are being razed.  History is being rewritten.  This is precisely what occurred during other revolutions, including China’s Cultural Revolution.

 

Overview of the Chinese Cultural Revolution

In August 1966, Mao Zedong called for the start of a Cultural Revolution at the Plenum of the Communist Central Committee. He urged the creation of corps of “Red Guards” to punish party officials and any other persons who showed bourgeois tendencies…

The first targets of the Red Guards included Buddhist temples, churches, and mosques, which were razed to the ground or converted to other uses. Sacred texts, as well as Confucian writings, were burnedalong with religious statues and other artwork. Any object associated with China’s pre-revolutionary past was liable to be destroyed.  The Guards conducted so-called “struggle sessions,” in which they heaped abuse and public humiliation upon people accused of capitalist thoughts

https://www.thoughtco.com/what-was-the-cultural-revolution-195607

 

The real threat to our republic is the Orwellian Antifa 08/27/17

It’s not “anti-fascist” or “anti-racist” as they attempt to portray themselves. It’s the systematic elimination of free speech, free assembly, and free thought via any means necessary, including violent protest, the media and Orwellian revisionism

     The gunman, James Hodgkinson, who shot Rep. Steve Scalise and four others in Alexandria was a habitual Antifa website visitor and advocate and Sanders volunteer. Even Democrat vice presidential candidate, Sen. Tim Kaine’s (D-Va.) son has been identified as an Antifa activist

      Increasingly, the violence we are seeing on the streets is not the result of the alt-right movement, but of the Antifa movement imposing their views on our society: tearing down statues, burning the American flag, shutting down town hall meetings, destroying private property and looting. All of it tactical toward achieving the goals of destroying the American culture, society and economy. Never mind that the tactics are themselves the tactics of the fascist…

    First, most mainstream media types are philosophically inclined toward anti-establishment organizations from the start; they see little wrong with crypto-fascist violence if the stated goals are in line with their own values systems.

    Second, that the Antifa movement hides behind its opposition to the Trump administration gives them the veneer of respectable protest the mainstream media needs to protect them

https://thehill.com/blogs/pundits-blog/the-administration/348137-the-real-threat-to-our-republic-is-the-orwellian-antifa

 

They came first for the Communists, and I didn’t speak up because I wasn’t a Communist. Then they came for the Jews, and I didn’t speak up because I wasn’t a Jew. Then they came for the trade unionists, and I didn’t speak up because I wasn’t a trade unionist. Then they came for the Catholics, and I didn’t speak up because I was a Protestant. Then they came for me, and by that time no one was left to speak up.” –Martin Niemoller, German Lutheran pastor

PART B

@AlexBerenson: This panic is likely to prove even more embarrassing than previous panics. Here’s why: the media is both confused and conflating several different data points in an effort to stir hysteria… you’ve heard positive tests are up in several states. True. The media refers to these as “cases,” as if positive tests have clinical significance by themselves. They do not. The vast majority of people with positive tests do not become ill enough to need hospitalization Overall hospitalizations are rising because people are returning to hospitals for elective… surgeries that were postponed… Hospitals have financial and legal as well as medical incentives to do this. IF THEY ARE POSITIVE, hospitals will report them as COVID patients… EVEN IF THEY HAVE NO COVID SYMPTOMS…the number of people going to emergency rooms with influenza-like or COVID-like symptoms is NOT rising…

U.S. cannot shut down economy again, Treasury’s Mnuchin says   https://reut.rs/2XQd2p4

@realDonaldTrump: The Federal Reserve is wrong so often. I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021. We will also soon have a Vaccine & Therapeutics/Cure… [Shut up already!]

Equities cratered, including the so called ‘safe-haven’ Fang stocks.  The legions of new day traders got caned. Bonds, gold and the dollar soared.  Gold and the dollar rally on safe haven buying, particularly if there is turmoil somewhere in the world.  Perhaps, the dollar explosion to the upside was short covering.  Industrial commodities, which had soared on the notion of a brisk economic rebound, tumbled.  WTI (West Texas Intermediate) oil declined as much as 10.6%.

The Fed balance sheet grew a paltry $3.719B to $7.169T as of Wednesday.  Is part of Thursday’s tumble due to people having non-public info that the Fed effectively stopped buying stuff?  This is the least amount of Fed asset monetization since February!   https://www.federalreserve.gov/releases/h41/current/

Twitter Admits China Used Nearly 200,000 Fake Accounts To Influence Politics, 150x More Than Russia – The news was rushed out on Thursday afternoon after an explosive Mediaite report into fake accounts plaguing President Trump’s Twitter following…

https://thenationalpulse.com/news/twitter-ccp-200k-russia/

Biden campaign demands that Facebook crack down on Trump, disinformation ahead of presidential election

https://www.usatoday.com/story/tech/2020/06/11/biden-campaign-trump-facebook-disinformation-election/5342811002/

Last night, Trump announced a plan to address racial inequality.  DJT has been posting the best polling with blacks since Eisenhower.  However, another goal of his plan is probably to curry favor with suburban women, the real swing voters.

Trump lays out plan addressing policing, school choice, minority economic and healthcare issues

“First we’re aggressively pursuing economic development in minority communities,” the president at the event in Texas. “At the heart of this effort is increasing access to capital for small businesses, and that’s with minority owners in black communities…we’re working to finalize an executive order that will encourage police departments nationwide to meet the most current professional standards for the use of force, including tactics for de-escalation…. we’ll encourage pilot programs that allow social workers to join certain law enforcement officers so that they work together,”… The president also called for Congress to take action on school choice, noting that “access to education is the civil rights issue of our time.”…  https://justthenews.com/government/gop-lawmakers-forge-ahead-police-reform-packages-while-still-awaiting-guidance-trump

Seattle ‘autonomous zone’ has armed guards, local businesses being threatened with extortion, police say    https://www.foxnews.com/us/seattle-protests-armed-guards-local-businesses-extortion

@realDonaldTrump: Domestic Terrorists have taken over Seattle, run by Radical Left Democrats, of course. LAW & ORDER!  Radical Left Governor  @JayInslee and the Mayor of Seattle are being taunted and played at a level that our great Country has never seen before. Take back your city NOW. If you don’t do it, I will. This is not a game. These ugly Anarchists must be stooped IMMEDIATELY…

Inslee baffles literally everyone with Capitol Hill Autonomous Zone answer

Governor Jay Inslee is being widely mocked for saying he wasn’t aware of the Capitol Hill Autonomous Zone in Seattle, his state’s largest city. This is the biggest story in the country, receiving national attention landing it on the Twitter trending list for over 24 hours… Inslee is either flatly lying or he really has no clue about what’s happening in Seattle. Either scenario is troubling… Well that’s news to me so I’ll have to reserve any comment about that,” Inslee said before an awkward chuckle. “I have not heard anything about that, from any credible source. Not that you’re not credible, just before I espouse an opinion I should know of which I speak.”…I suspect he’s lying because he doesn’t want to get involved. Instead, he’d prefer to let Durkan [Seattle mayor Jenny Durkan]handle this mess — one that should end her re-election campaign…https://mynorthwest.com/1936097/rantz-inslee-seattle-capitol-autonomous-zone-answer/

Governor Jay Inslee @GovInslee: I spoke with @MayorJenny and her team about the situation on Capitol Hill. Although unpermitted, and we should remember we are still in a pandemic, the area is largely peaceful. Peaceful protests are fundamentally American, and I am hopeful there will be a peaceful resolution. [This is not a parody!!!]

Protesters yank down Christopher Columbus statue outside Minnesota State Capitol in St. Paul.https://abcn.ws/3fb7Phh

Ex-NSC official @RichHiggins_DC: Who is old enough to remember when all ANTIFA did was attack old people attending Trump rallies and train for terrorism ops with the communist terror group (PKK)

@JonathanTurley: Writers and academics are calling for the canning of Harald Uhlig, the senior editor of the prestigious the Journal of Political Economy.  The reason is that Uhlig had the audacity to criticize Black Lives Matters and the movement to Defund The Police. Joining this effort is NYT’s Paul Krugman-an intolerant position that has now appears to be official policy at the New York Times. Such attacks on individuals like Uhlig will not stop with him. It becomes an insatiable appetite as the intolerance for opposing views growsNotably, Chicago Professor Brian Leiter just tweeted about the need for a military coup. No one called for his ouster and many loved it. He just said he was kidding. However, Uhlig’s mocking tweet on the protests is being cited as cause for his removal.

ASU revokes job offer for incoming journalism dean after microaggression complaints, tweet calling some police ‘good’   https://www.foxnews.com/us/asu-journalism-dean-out-microaggressions-police-good-tweet

Boston’s Berklee College apologizes for letting cops use bathrooms amid protests   https://trib.al/QifcK3g

@BreitbartNews: Senate Minority Leader Schumer (D-NY) blocked a measure sponsored by Sens. Cruz (R-TX) and Cotton (R-AR) to condemn Democrat measures to defund police departments…

@Rasmussen_Poll: 56% of voters agree with President Trump:“Our police have been letting us live in peace, and we want to make sure we don’t have any bad actors in there. [But] 99% of them are great, great people.” 30% don’t agree, while 14% are not sure… https://bit.ly/2AViiyC

Biden at a Philly roundtable on business re-openings didn’t realize or didn’t care that he had a mask dangling from his left ear.  But, this was the least of the several ‘moments’ that Joe had on Thursday.

https://twitter.com/bennyjohnson/status/1271126487794692096

@TrumpWarRoom: Joe Biden brain freeze [while reading his notes]: “You know, the rapidly rising, uh, um, uh, in with uh, with uh, I don’t know, uh…”  https://twitter.com/TeamTrump/status/1271133640488034305

Then, Biden really veered off the road!  “But even Dr. King’s assassination did not have the worldwide impact that George Floyd’s death did.”  https://twitter.com/QBlueSkyQ/status/1271186563003793413

On social media, someone joked: “What did Joe Biden know; and when did he forget it.”

The Trump campaign has started an earnest effort to define Biden to Americans.  The race is on!

Trump campaign statement on media coverage of Biden events

“We formally join Joe Biden’s campaign in their call for the national news media, particularly cable and broadcast television outlets, to carry Biden’s remarks and unscripted events in their entiretyThe failure to expose the American people to these rambling displays of incoherence, ineptitude, and forgetfulness is depriving voters of a clear picture of Biden’s inability to execute the duties of the office he seeks. Stop protecting Biden. Air the events.”– Brad Parscale, Trump 2020 campaign manager

https://www.donaldjtrump.com/media/trump-campaign-statement-on-media-coverage-of-biden-events

Biden Praises Group Who ‘Display the Confederate Flag’ as ‘Fine People’ in Resurfaced Video

https://www.dailywire.com/news/breaking-biden-praises-group-who-display-the-confederate-flag-as-fine-people-in-resurfaced-video

Nadler’s Opponents Marked ‘Deceased’ On Democrat Database

Congressman Jerry Nadler (D-NY) has been suspected of foul play against his opponents, Jonathan Herzog and Lindsey Boylan, but now there is new evidence suggesting that it is happening.

    New information obtained by SaraACarter.com shows that Robert Atterbury, Rep. Nadler’s senior advisor, has allegedly marked Herzog and Boylan as “deceased” on NGP VAN, a privately-owned voter database and web hosting service provider used by the Democratic Party, Democratic campaigns and other non-profit organizations affiliated with the party…

https://saraacarter.com/exclusive-nadlers-opponents-marked-deceased-on-democrat-database/

Well that is all for today

end

Let’s end the week with this offering courtesy of Greg hunter

Good vs Evil, All Lives Matter, Economic Update

By Greg Hunter On June 12, 2020

This is a classic battle of Good vs Evil.  This is nothing short of a takeover attempt by Marxist communist forces using tactics not seen since pre-WWII Germany.  This is not about reform, but total takeover, and no one should contradict the narrative.  Just saying “All Lives Matter” is considered a repugnant statement that should be punished.  No other opinion is wanted or allowed with this political maneuver that hides behind a veil of social justice and anti-racism.

Violent and heavily armed anarchists such as Antifa, and other groups supporting them, have taken over the City Hall of Seattle.  This outrageous action has the total support of the Mayor and the Governor.  This is how takeovers start.  This takeover of 6 city blocks in the center of the city is tolerated and accepted by people in power, and that includes top brass of the Democrat Party.  I view this as a trial balloon.  Evil wants to take this show on the road across America in an election year.

The DOW crashed 2000 points before recovering slightly this Thursday.  Is this an omen of things to come, or is the market simply telling us the economy is really not too good?  A new survey says about a third of all renters are afraid of not being able to pay their next rent payment.  Does that sound healthy to you?

Join Greg Hunter of USAWatchdog.com as he talks about these stories and more in the Weekly News Wrap-Up.

( To Donate to USAWatchdog.com Click Here )

-END-

I will see you MONDAY night.

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