JULY 15//GOLD AND SILVER WITHSTAND ANOTHER RAID: GOLD UP $1.65 TO $1811.30//SILVER..ANOTHER STANDOUT UP 21 CENTS TO $19.36//GOLD STANDING AT THE COMEX; 22.166 TONNES//CHINA VS USA (ESCALATES)//CORONAVIRUS UPDATES//SWAMP STORIES FOR YOU TONIGHT///FENOFIBRATE//A POTENTIAL CURE FOR CORONAVIRUS//ALASDAIR MACLEOD..A MUST VIEW…./IRAN HIT WITH 7 HUGE FIRES: ISRAEL?//

GOLD:$1811.30  UP $1.65   The quote is London spot price (cash market)

 

 

 

 

 

Silver:$19.36// UP 21 CENTS  London spot price ( cash market)

 

 

Closing access prices:  London spot

i)Gold : $1810.40  LONDON SPOT  4:30 pm

 

ii)SILVER:  $19.42//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

AUG GOLD:  $1813.90  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE AUG /: $2.60

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $19.76…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  40 CENTS  PER OZ

 

 

 

 

COMEX DATA

 

 

JPMorgan has been receiving gold with reckless abandon and sometimes supplying (stopping)

receiving today: 0/86

issued 22

EXCHANGE: COMEX
CONTRACT: JULY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,810.600000000 USD
INTENT DATE: 07/14/2020 DELIVERY DATE: 07/16/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
332 H STANDARD CHARTE 8
355 C CREDIT SUISSE 11
657 H MORGAN STANLEY 59
661 C JP MORGAN 22
690 C ABN AMRO 20
737 C ADVANTAGE 20 7
800 C MAREX SPEC 24 1
____________________________________________________________________________________________

TOTAL: 86 86
MONTH TO DATE: 7,211

 

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 86 NOTICE(S) FOR 86000 OZ ( tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  7211 NOTICES FOR 721100 OZ  (22.429 TONNES)

 

 

SILVER

 

FOR JULY

 

 

16 NOTICE(S) FILED TODAY FOR 80  OZ/

total number of notices filed so far this month: 13,919 for 69.595 MILLION oz

 

BITCOIN MORNING QUOTE  $9226  DOWN 29

 

BITCOIN AFTERNOON QUOTE.: $9194 DOWN $64

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $1.65 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF  2.92 TONNES WAS ADDED TO GLD.

 

 

GLD: 1,206.89 TONNES OF GOLD//

 

WITH SILVER UP 21 CENTS TODAY: AND WITH NO SILVER AROUND:

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV: A HUGE  PAPER DEPOSIT  OF 1.956 MILLION OZ//

WHAT A FRAUD!!

RESTING SLV INVENTORY TONIGHT:

 

SLV: 516.074  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A TINY SIZED 226 CONTRACTS FROM 178,141 UP  TO 178,367, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE TINY SIZED GAIN IN  OI OCCURRED DESPITE OUR HUGE 21 CENT LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE SMALL GAIN IN COMEX OI IS PRIMARILY DUE TO HUGE  BANKER SHORT COVERING PLUS A SMALL EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A SMALL DECREASE  IN SILVER STANDING  AT THE COMEX FOR JULY.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 948 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 0  AND SEP 658 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  658 CONTRACTS. WITH THE TRANSFER OF 658 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 658 EFP CONTRACTS TRANSLATES INTO 4.125 MILLION OZ  ACCOMPANYING:

1.THE 21 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

81.605 MILLION OZ INITIALLY IN JULY.

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 21 CENTS).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE STRONG GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL DECREASE IN STANDING OF SILVER OZ STANDING FOR JULY,  STRONG BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 948 CONTRACTS OR 4,42 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS

JULY

 

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

6869 CONTRACTS (FOR 10 TRADING DAY(S) TOTAL 6869 CONTRACTS) OR 34.345 MILLION OZ: (AVERAGE PER DAY: 687 CONTRACTS OR 3.4345 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY: 34.345 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 4.90% 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:          1,171,76 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                              71.15 MILLION OZ.

JULY EXP                               34.345 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 TINY SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 226, DESPITE OUR 21 CENT LOSS  IN SILVER PRICING AT THE COMEX ///TUESDAYTHE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 658 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 GOOD SIZED OI CONTRACTS ON THE TWO EXCHANGES:  884 CONTRACTS (WITH OUR 21 CENT LOSS IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 648 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A TINY SIZED INCREASE OF 226 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 21 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $19.15 // TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.892 BILLION OZ TO BE EXACT or 127% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JULY  DELIVERY MONTH/ THEY FILED AT THE COMEX: 16 NOTICE(S) FOR 80,000  OZ OF SILVER.

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 244,196 CONTRACTS ON AUG 22.2018. AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.70//TODAY’S RECORD OF 244,705 IS SET WITH A PRICE OF: 18.91 (FEB 25/2020)

 

.

 

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ/ SEPT 43.030 MILLION OZ//OCT: 7.665 MILLION OZ//   NOV: 2.630 MILLION OZ//DEC:  20.970 MILLION OZ; JAN:  5.075 MILLION OZ.//FEB 1.480 MILLION OZ//MAR: 23.005 MILLION OZ/APRIL 4.660 MILLION OZ//MAY  45.220 MILLION OZ//JUNE: 2.205 MILLION OZ// JULY 81.640 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 STRONG SIZED 8492 CONTRACTS TO 580,175 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 STRONG SIZED GAIN OF COMEX OI OCCURRED DESPITE OUR TINY LOSS IN PRICE  OF $1.65 /// COMEX GOLD TRADING// TUESDAY// WE  HAD HUGE BANKER SHORT COVERING, ANOTHER HUMONGOUS SIZED  GOLD OZ STANDING AT THE COMEX FOR JULY, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A GOOD EXCHANGE FOR  PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR LOSS IN PRICE OF $1.65 .

 

WE HAD A VOLUME OF 1    4 -GC CONTRACTS//OPEN INTEREST  64

 

WE GAINED A STRONG SIZED 15,847 CONTRACTS  (49.29 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 7355 CONTRACTS:

CONTRACT .; AUG 5727 AND OCT: 0 DEC: 1628  ALL OTHER MONTHS ZERO//TOTAL: 7355.  The NEW COMEX OI for the gold complex rests at 580,175. 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 VERY STRONG SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 15,847 CONTRACTS: 8492 CONTRACTS INCREASED AT THE COMEX AND 7355 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 15,847 CONTRACTS OR 49.29 TONNES. TUESDAY, WE HAD A LOSS OF $1.65 IN GOLD TRADING……

AND WITH THAT LOSS IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 49.29 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT FELL $1.65).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS ALSO UNSUCCESSFUL  (SEE BELOW).

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (7355) ACCOMPANYING THE STRONG SIZED GAIN IN COMEX OI  (8492 OI): TOTAL GAIN IN THE TWO EXCHANGES:  16985 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)ANOTHER HUMONGOUS INCREASE IN GOLD  STANDING AT THE GOLD COMEX FOR THE FRONT JULY MONTH,  3) ZERO LONG LIQUIDATION; 4) STRONG COMEX OI GAIN.5) GOOD EXCHANGE FOR PHYSICAL ISSUANCE… AND  …ALL OF THIS WAS COUPLED WITH OUR TINY LOSS IN GOLD PRICE TRADING//TUESDAY//$1.65.

 

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.

 

SPREADING OPERATIONS/NOW SWITCHING TO GOLD

 

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO GOLD…..

SPREADING OPERATION FOR OUR NEWCOMERS:

 

FOR NEWCOMERS, HERE ARE THE DETAILS:

 

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

 

 

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

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

 

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

 

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

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX GOLD 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 JULY HEADING TOWARDS THE ACTIVE DELIVERY MONTH OF AUGUST FOR GOLD:

 

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

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

JULY

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JULY : 39,658 CONTRACTS OR 3,965,800 oz OR 123.35 TONNES (10 TRADING DAY(S) AND THUS AVERAGING: 3965 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 10 TRADING DAY(S) IN  TONNES: 123.35 TONNES

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

THUS EFP TRANSFERS REPRESENTS 123.35/3550 x 100% TONNES =3.47% 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   3141.55  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:                     192.06 TONNES

JULY TOTAL EFP ISSUANCE;                       123.35 TONNES SO FAR..

 

 

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 TINY SIZED 226 CONTRACTS FROM 178,141 UP TO 178,367 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 TINY GAIN IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)   HUGE BANKER SHORT COVERING , 2) A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A SMALL DECREASE STANDING AT THE SILVER COMEX FOR JULY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 658 CONTRACTS

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

JULY: 0 CONTRACTS   AND SEPT: 658 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 658 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 226  CONTRACTS TO THE 658 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GAIN OF 884 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 4.74 MILLION  OZ, OCCURRED WITH OUR STRONG 21 CENT LOSS IN PRICE///

 

BOTH THE SILVER COMEX AND THE GOLD COMEX ARE IN STRESS AS THE BANKERS SCOUR THE BOWELS OF THE EXCHANGE FOR METAL..THE EVIDENCE IS CLEAR: HUGE AMOUNTS OF PHYSICAL STANDING FOR BOTH  SILVER AND GOLD .

(report Harvey)

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 53.31 POINTS OR 1.56%  //Hang Sang CLOSED UP 3.69 POINTS OR 0.01%   /The Nikkei closed UP 358.49 POINTS OR 1.59%//Australia’s all ordinaires CLOSED UP 1.90%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9855 /Oil UP TO 40.83 dollars per barrel for WTI and 43.36 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9855 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9881 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A STRONG SIZED 8492 CONTRACTS TO 580,175 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 STRONG  COMEX INCREASE OCCURRED DESPITE OUR TINY LOSS OF $1.65 IN GOLD PRICING /TUESDAY’S COMEX TRADING//). WE ALSO HAD A GOOD EFP ISSUANCE (7355 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS STANDING AT THE GOLD COMEX//JULY DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A VERY STRONG GAIN ON OUR TWO EXCHANGES OF 16985 CONTRACTS DESPITE GOLD’S TINY LOSS IN PRICE. NOTE THE FACT THAT LATELY THE EXCHANGE FOR PHYSICALS ARE SMALL.. SOME OF OUR MAJOR BANKERS ARE BANNED FROM USING THE SERIAL FORWARDS.  IF THEY USE THIS VEHICLE IT MUST BE USED FOR PHYSICAL ONLY. SINCE THEY CANNOT TRANSFER TO LONDON THEY ARE FORCED TO INCREASE THEIR SHORT POSITIONS AT THE GOLD COMEX…. AND SOME HAVE MOVED SOME CONTRACTS OVER TO THE NEW 400 OZ LONDON ENHANCED VEHICLE.

 

(SEE BELOW)

 

 

WE  HAD 1    4 -GC VOLUME//open interest RISES TO 64

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED A GOOD SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 7355 EFP CONTRACTS WERE ISSUED:  AUG  5727 , OCT: 0 DEC 1628 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 7355 CONTRACTS.

YOU WILL FIND THAT WHEN WE HAVE A GOOD 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. TODAY THAT PREMIUM WAS SMALL AND THUS A LITTLE MORE THAN USUAL OF EXCHANGE FOR PHYSICALS WERE ISSUED.

 

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES:  15,847 TOTAL CONTRACTS IN THAT 7355 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG SIZED 8492 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A GOOD  AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR STRONG COMEX OI GAIN,  A HUGE  GOLD TONNAGE STANDING FOR THE JULY DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION……AND WITH ALL OF THE ABOVE WE HAD A TINY LOSS IN COMEX PRICE OF 1.65 DOLLARS..

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $1.65).  AND, THEY WERE UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A GOOD 49.29 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 15,847 CONTRACTS OR 49.29 OZ OR 49.29 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:  580,175 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 58.17 MILLION OZ/32,150 OZ PER TONNE =  1809 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1809/2200 OR 82.18% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 189,730 contracts//poor volume//hitting rock bottom//most traders have moved to London

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  315,871 contracts//  volume fair //most of our traders have left for London

 

 

JULY 15 /2020

JULY GOLD CONTRACT MONTH

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
10,679.907 oz
Manfra
Deposits to the Dealer Inventory in oz NIL oz

 

 

 

Deposits to the Customer Inventory, in oz  

64,302.000

OZ

JPMORGAN

 

2000

KILOBARS

No of oz served (contracts) today
86 notice(s)
 86000 OZ
(0.2674 TONNES)
No of oz to be served (notices)
237 contracts
(23700 oz)
0.737 TONNES
Total monthly oz gold served (contracts) so far this month
7211 notices
721,100 OZ
22.429 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 0 deposit into the dealer

 

 

 

 

total deposit: nil oz

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 1 deposits into the customer account

 

 

 

i) Into JPMorgan;  64,302.000 oz (2000 kilobars)

 

 

 

 

 

total deposit:  64,302.000 oz

 

we had 1 gold withdrawals from the customer account:

i) Out of Manfra:  10,679.907 oz

total gold withdrawals;  10,679.907 oz

We had 1  kilobar transactions  +

 

ADJUSTMENTS: 0 //   

 

 

 

 

 

 

The front month of JULY registered a total of 323 oi contracts FOR a GAIN of 124 contracts. We had 151 notices served on TUESDAY so we GAINED ANOTHER  275 contracts or an additional 27,500 oz will stand for delivery as they refused to morph into London based forwards.

 

 

Next comes August and another strong delivery month and here the OI FELL BY only 11,010  contracts DOWN to 304,511 contracts, as we continue our countdown to first day notice.

August is contracting very slowly and thus we will have a humdinger of a delivery month.

 

Sept saw another addition of 22 contracts to stand at 348.  Oct lost 1193 contracts DOWN to 37,733. (The boys prefer August)

 

We had 86 notices filed today for 8600 oz

 

FOR THE JULY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 86 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 0 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the JULY /2020. contract month, we take the total number of notices filed so far for the month (7211) x 100 oz , to which we add the difference between the open interest for the front month of  JULY (323 CONTRACTS ) minus the number of notices served upon today (86 x 100 oz per contract) equals 744800 OZ OR 23.166 TONNES) the number of ounces standing in this active month of JUNE

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

No of notices filed so far (7211 x 100 oz + (323 OI) for the front month minus the number of notices served upon today (86) x 100 oz which equals 744800 oz standing OR 23.166 TONNES in this  active delivery month. This is a HUGE record amount for gold standing for a JULY delivery month (a  non active delivery month).

We gained 275 contracts or an additional 27500 oz will stand at the comex.

We are now witnessing an increase in queue jumping on a daily basis. Sooner or later they will be running out of metal to supply our longs.

 

 

NEW PLEDGED GOLD:  BRINKS

 

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

302,293.430 oz PLEDGED  JULY 9// 2020  JPMORGAN:  9.40 TONNES

42,548.308.00 PLEDGED  APRIL 3/2020: SCOTIA:            1.3234 tonnes

deleted Int. Delaware pledge July 7  (600 tonnes)

 

657,424.187 oz pledged June 12/2020 Brinks/july 2               20.448 tonnes

total pledged gold:  1,146,354.687 oz                                     35.65 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 376.06 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 23.166 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  13,236,781.121 oz or 411.72 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 (SOME  DELETED JUNE 24 2020/SOME JULY 9) which cannot be settled upon:  302,293.43, oz (or 9.402 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.    DELETED:   JULY 7.2020
f) pledged gold at Brinks:  DELETED
g) pledged gold at Brinks: 657,424.187 oz added which cannot be settled:  20.448 tonnes
total weight of pledged:  1,146,354.687 oz or 35.65 tonnes
thus:
registered gold that can be used to settle upon:  12,090,427.0  (376.06 tonnes)
true registered gold  (total registered – pledged tonnes  12,090,427.0 (376.06 tonnes)
total eligible gold:  20,819,566.800 oz (648.58 tonnes)

total registered, pledged  and eligible (customer) gold;   34,056,347.921 oz 1059.53 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  933.19 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

JULY 15/2020

And now for the wild silver comex results

 

 

JULY SILVER COMEX CONTRACT MONTH

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 874,146.69 oz
CNT
HSBC
Loomis

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
19,728.746 oz
Delaware
No of oz served today (contracts)
16
CONTRACT(S)
(80,000 OZ)
No of oz to be served (notices)
2402 contracts
 12,010,000 oz)
Total monthly oz silver served (contracts)  13,919 contracts

69,595,000 oz)

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

total dealer deposits: nil oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 1 deposits into the customer account

into JPMorgan:   0

 

 

ii) Into Delaware:  19,728.740 oz

 

 

 

 

 

 

 

 

 

*** JPMorgan for most of 2017, 2018 and onward, has adding to its inventory almost every single day.

JPMorgan now has 160.744 million oz of  total silver inventory or 49.66% of all official comex silver. (160.819 million/323.787 million

 

total customer deposits today:  nil    oz

we had 3 withdrawals:

 

ii) Out of Loomis:   600,002.100

 

iii) Out of  HSBC: 55,282.690  oz

 

 

 

 

 

 

 

 

total withdrawals; 874,146.69   oz

We had 0 adjustments

 

 

 

 

total dealer silver: 126.708 million

total dealer + customer silver:  323.787 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of July has an open interest of  2418 contracts, as we lost 7 contracts.  We had 0 notices served on TUESDAY, so we lost a tiny 7 contracts or an additional 35,000 oz will not stand in this active delivery month of July as they  morphed into a London based forwards.  It seems that we have little silver over on this side of the pond.

 

 

 

The next month after July is the non active month of  August and here  sees its open interest fell by 47 contracts down to 810

The big September contract month sees a loss of 295 contracts down to 140,245.

 

The total number of notices filed today for the JULY 2020. contract month is represented by 16 contract(s) FOR 80,000, oz

 

To calculate the number of silver ounces that will stand for delivery in JULY we take the total number of notices filed for the month so far at 13,919 x 5,000 oz = 69,595,000 oz to which we add the difference between the open interest for the front month of JULY.(2418) and the number of notices served upon today 16 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JULY/2019 contract month: 13,919 (notices served so far) x 5000 oz + OI for front month of JULY (2418)- number of notices served upon today (16) x 5000 oz of silver standing for the JULY contract month.equals 81,605,000 oz.  (A WHOPPER )

WE LOST 7 CONTRACTS OR 35,000 OZ WILL NOT  STAND FOR DELIVERY. SILVER IS STILL VERY SCARCE ON THIS SIDE OF THE POND AND THE REASON FOR MORPHING OVER TO LONDON.

 

 

 

TODAY’S ESTIMATED SILVER VOLUME : 54,674 CONTRACTS // volume fair/

 

 

FOR YESTERDAY: 79,234.,CONFIRMED VOLUME//volume very good/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 79,234 CONTRACTS EQUATES to 396 million  OZ  56.5% 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  FALLS TO- 0.12% ((JULY 15/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -.12% to NAV:   (JULY 15/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.12%

(courtesy Sprott/GATA

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

NAV 17.48 TRADING 17.44///NEGATIVE 0.25

END

 

 

And now the Gold inventory at the GLD/

JULY 15//WITH GOLD UP $1.55 TODAY/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 2.96 TONNES INTO THE GLD///INVENTORY RESTS AT 1206.89 TONNES

JULY 14//WITH GOLD DOWN $1.65 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/A DEPOSIT OF 3.51 TONNES/INVENTORY RESTS AT 1203.97 TONNES

JULY 13//WITH GOLD UP $12.50 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 0.36 TONNES INTO THE GLD//INVENTORY RESTS AT 1200.46 TONNES

JULY 10/WITH GOLD DOWN $.50 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD//A STRANGE WITHDRAWAL  OF 1.75 TONNES FROM THE GLD//INVENTORY RESTS AT 1200.82 TONNES

JULY 9//WITH GOLD DOWN $11.75 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OX 3.21 TONNES INTO THE GLD//INVENTORY RESTS AT 1202.57 TONNES

JULY 8/WITH GOLD UP $13.75 TODAY; A BIG CHANGE IN GOLD INVENTORY AT THE GLD:A DEPOSIT OF 7.89 TONNES INTO THE GLD//INVENTORY RESTS AT 1199.36 TONNES

JULY 7/WITH GOLD UP $12.50 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1191.47 TONNES

JULY 6/WITH GOLD UP $6.50 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 9.36 TONNES INTO THE GLD//INVENTORY RESTS AT 1191.47 TONNES

JULY 2/WITH GOLD UP $7.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.21 TONNES INTO THE GLD////INVENTORY RESTS AT 1182.11 TONNES

JULY 1/WITH GOLD DOWN $12.90//NO CHANGES IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1178.90 TONNES

JUNE 30//WITH GOLD UP $16.50 TODAY: NO CHANGE  IN GOLD INVENTORY AT THE GLD///INVENTORY RESTS AT 1178.90 TONNES

JUNE 29/WITH GOLD UP $2.90 TODAY: A HUGE DEPOSIT OF 3.61 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1178.90 TONNES

JUNE 26/WITH GOLD UP $5.03 TODAY: VERY STRANGE: A PAPER WITHDRAWAL  OF 1.46 TONNES//INVENTORY RESTS AT 1175.39 TONNES

JUNE 25//WITH GOLD DOWN $3.30 TODAY//ANOTHER STRONG PAPER DEPOSIT OF 7.6 TONNES///INVENTORY RESTS AT 1176.85 TONNES

JUNE 24/WITH GOLD DOWN $1.50 TODAY;  A STRONG 3.21 TONNES ADDED TO THE GLD//INVENTORY RESTS AT 1169.25  TONNES

JUNE 23/WITH GOLD UP $25.50 TODAY/ANOTHER CRIMINAL PAPER DEPOSIT OF 6.73 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1166.04 TONNES

JUNE 22/WITH GOLD UP $14.00 A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 23.09 TONNES//INVENTORY RESTS AT 1159.31 TONNES

JUNE 19/WITH GOLD UP$16.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//; INVENTORY RESTS AT 1136.22 TONNES

JUNE 18//WITH GOLD DOWN $2.75 TODAY: NO CHANGES IN GOLD INVENTORY: INVENTORY RESTS AT 1136.22 TONNES

JUNE 17/WITH GOLD DOWN $1.05: NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1136.22 TONNES

JUNE 16//WITH GOLD UP $6.70 TODAY: NO CHANGES IN GOLD INVENTORY: /INVENTORY RESTS AT 1136.22 TONNES

JUNE 15/WITH GOLD DOWN ANOTHER $8.80 TODAY, NO CHANGES IN GOLD INVENTORY/INVENTORY RESTS AT 1136.22 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Inventory rests tonight at

JULY 15/ GLD INVENTORY 1206.89 tonnes*

LAST;  861 TRADING DAYS:   +263.07 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 761 TRADING DAYS://+441.18  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JULY 15.WITH SILVER  UP 21 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.956 MILLION OZ//INVENTORY RESTS AT 516.074 MILLION OZ//

JULY 14/WITH SILVER DOWN 21 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY REST AT 514.118 MILLION OZ//

JULY 13//WITH SILVER UP 67 CENTS TODAY: A HUGE CHANGE IN SILVER: A WITHDRAWAL OF 1.677 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 514.118 MILLION OZ//

JULY 10/WITH SILVER UP 7 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 4.844 MILLION OZ INTO THE SLV//INVENTORY RESTS AT  515.795 MILLION OZ

WHAT A FRAUD!!

JULY 9/WITH SILVER DOWN 8 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 8.198 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 510.951 MILLION OZ/

JULY 8/WITH SILVER UP 37 CENTS TODAY//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.118 MILLION OZ FROM THE SLV//VERY SURPRISING.//INVENTORY RESTS AT 502.753 MILLION OZ//

JULY 7/WITH SILVER UP 8 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV:/INVENTORY RESTS AT 503.871 MILLION OZ///

JULY 6//WITH SILVER UP 24 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.863 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 503.871 MILLION OZ

JULY 2/WITH SILVER UP 4 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//: A DEPOSIT OF 4.01 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 502.008 MILLION OZ

JULY 1/WITH SILVER DOWN 23 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A MASSIVE DEPOSIT OF 5.403 MILLION OZ//INVENTORY RESTS AT 498.007 MILLION OZ/

JUNE 30/WITH SILVER UP 39 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 492.604 MILLION OZ//

JUNE 29/WITH SILVER DOWN ONE CENT TODAY: A TWO CHANGES IN SILVER INVENTORY AT THE SLV: A SMALL WITHDRAWAL OF 466,000 OZ TO PAY FOR STORAGE FEES AND INSURANCE//// AND A LARGE DEPOSIT OF 1.212 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 492.604 MILLION OZ//

JUNE 26/WITH SILVER UP 6 CENTS TODAY: ANOTHER HUGE CHANGE IN SILVER INVENTORY AT THE SLV/ RESTS AT 491.858 MILLION OZ//

JUNE 25/WITH SILVER UP 12 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 931,000 OZ INTO THE SLV////INVENTORY RESTS AT 491.858 MILLION OZ//

JUNE 24///WITH SILVER DOWN 31 CENTS// NO CHANGE IN SILVER INVENTORY//INVENTORY RESTS AT 490.927 MILLION OZ

JUNE 23//WITH SILVER UP 16 CENTS TODAY: A MONSTROUS CHANGE IN INVENTORY: A PAPER DEPOSIT OF 4.473 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 490.927 MILLION OZ//

JUNE 22/WITH SILVER UP 15 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/: INVENTORY/INVENTORY RESTS AT 486/454 MILLION OZ//

JUNE 19//WITH SILVER UP 22 CENTS TODAY: STRANGE!!  A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 839,000 OZ FROM THE SLV////INVENTORY RESTS AT 486,454 MILLION OZ..

JUNE 18/WITH SILVER DOWN 16 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 932,000 OZ INTO THE SLV////INVENTORY RESTS AT 487.293 MILLION OZ

JUNE 17/WITH SILVER UP 8 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 3.261 MILLION OZ INTO THE SLV////INVENTORY REST AT 486.361 MILLION OZ

JUNE 16//WITH SILVER UP 20 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.118 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 483.100 MILLION OZ//

JUNE 15/WITH SILVER DOWN 14 CENTS NO CHANGES IN SILVER INVENTORY: //INVENTORY RESTS AT 481.982  MILLION OZ///

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//

 

JULY 15.2020:

SLV INVENTORY RESTS TONIGHT AT

516.074 MILLION OZ.

 

 

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

What a joke: the biggest manipulators of them all, the uSA is accusing Switzerland for allegedly manipulating its currency exchange rate.  Switzerland defends its intervention as essential.

If we are on a gold standard, this entire episode is moot.

Bloomberg

Swiss central bank defends currency intervention as ‘essential’

 Section: 

By Catherine Bosley
Bloomberg News
Tuesday, July 14, 2020

Currency intervention is an “essential” policy tool for Switzerland, its central bank chief said, in a riposte to the United States, which has the country on a watchlist for allegedly manipulating its exchange rate.

“Even though we still have scope for further interest-rate cuts, the fact remains that one cannot lower interest rates indefinitely,” Swiss National Bank President Thomas Jordan said today in a lecture for the International Monetary Fund. “For this reason, interventions in the foreign exchange market, in which we buy foreign currencies and sell Swiss francs, also play a central role in our policy mix.”

… 

The U.S. Treasury earlier this year put Switzerland back on a list of countries that it believes are manipulating their exchange rates for competitive gain, citing the nation’s high current-account surplus and bilateral trade balance as evidence.

Yet Swiss policy makers have long relied on interventions to prevent too much strength in the franc, which investors tend to flock to at times of stress. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2020-07-14/swiss-central-bank-de…

end

The outlook for the value of the dollar shows mounting risks…and sure enough it has been falling badly as of late…

London’s financial times/GATA

Mounting risks in U.S. will weigh on the dollar, analysts predict

 Section: 

By Eva Szalay and Colby Smith
Financial Times, London
Monday, July 13, 2020

Escalating political and health risks in the United States and rising optimism about the global economic recovery should keep the dollar sliding over the next few months, according to analysts.

Large banks turned bearish on the greenback in late May, citing drastic cuts in interest rates and a flood of liquidity unleashed by the Federal Reserve, as it tried to alleviate the economic effects of the pandemic.

… 

Since then, the outlook for the dollar has deteriorated further, strategists say. They cite growing concerns over the reopening of the world’s largest economy in the face of a steady increase in Covid-19 cases, as well as increased political threats and a hit from investors exiting safety-seeking bets in the dollar.

… For the remainder of the report:

https://www.ft.com/content/e6352387-5704-4e44-9b79-22ae87039e59

end

The 5 factors responsible for gold’s rise:  Craig Hemke

(Craig Hemke/Sprott/GATA)

Craig Hemke at Sprott Money: Explosive debt is one of many props for gold

 Section: 

5:37p ET Tuesday, July 14, 2020

Dear Friend of GATA and Gold:

The explosive increase in U.S. government debt is joining five other developments creating an outstanding environment for the monetary metals, the TF Metals Report’s Craig Hemke notes today at Sprott Money:

— Infinite fiat currency creation.

— Economic contraction and stagflation.

— Central bank yield curve control.

— Increasingly negative real interest rates.

— Record global physical demand for the metals.

Hemke’s analysis is headlined “Total U.S. Debt Soars” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/total-us-debt-soars-craig-hemke-july-14…

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

end

GATA’s Ed Steer interviewed by talk-show host Dave Janda

 Section: 

5:45p ET Tuesday, July 14, 2020

Dear Friend of GATA and Gold:

Gold price suppression is longstanding government policy, GATA board member Ed Steer tells talk show host Dave Janda of “Operation Freedom” on WAAM-AM1600 in Ann Arbor, Michigan, in an interview conducted Sunday. But, Steer adds, the world financial system is unraveling and monetary metals prices are showing it.

The interview is 23 minutes long and can be heard here:

https://operation-freedom-shows.s3.amazonaws.com/JUL12_2020/EdSteer07122…

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

end

Are Western banks also involved in spoofing gold trading in Shanghai?

(Kim/GATA)

John Kim: Did China foil Western banks’ spoofing of Shanghai gold market?

 Section: 

6p ET Tuesday, July 14, 2020

Dear Friend of GATA and Gold:

Market analyst John Kim today reports a recent statement by the Shanghai Futures Exchange that the exchange has caught attempts to “spoof” trading, and Kim wonders if the perpetrators are Western banks that often have “spoofed” Western gold markets.

Kim’s analysis is headlined “Did China Foil Western Banking Spoofing of Gold Markets in Shanghai This Month?” and it’s posted at his internet site here:

https://maalamalama.com/wordpress/did-china-foil-western-banking-spoofin…

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

end

GATA) Lawrence Lepard: Fed, Treasury are now ‘sort of’ on gold’s side

Submitted by cpowell on 04:24PM ET Wednesday, July 15, 2020. Section: Daily Dispatches

12:27p Wednesday, July 15, 2020

Dear Friend of GATA and Gold:

Equity Management Associates Managing Partner Lawrence Lepard’s second-quarter report for the firm’s gold fund, published this week, brilliantly itemizes the circumstances working in favor of the monetary metal and the companies that mine it.

But the report may be most interesting for its speculation that the U.S. government’s Federal Reserve and Treasury Department are attempting a controlled retreat with gold and now are “sort of” on the side of gold investors.

Lepard writes: “It all comes down to faith in the stewards of the currency — the Federal Reserve and by extension the U.S. Treasury. If faith in them increases, gold will fall in price. If faith in them diminishes, gold will accelerate in price.

“Because they are in a sovereign debt crisis/trap, I believe the Fed knows that the only way out is to inflate. The alternative is a deflationary collapse that they would view as infinitely worse.

“I believe that they will attempt to have a managed retreat. That is, they know they need inflation and a higher gold price. They just don’t want it to happen too quickly or in a disorderly fashion, because if that occurs, Gresham’s Law will kick in and the dollar will fail.

“So as investors in gold and gold mining equities, I believe we now have the government on our side — sort of. We have to be prepared for them to take actions to attack gold if its price begins to accelerate too dramatically.”

With Lepard’s kind permission, his report is posted at GATA’s internet site here:

http://gata.org/files/EMA-GARP-Fund- Q2-2020-Report.pdf

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

Professor Altman…a good read as to what is going to happen to corporations this year: big bankruptcies!

Professor Whose Formula Predicts Bankruptcies Has a Big Warning

Bankruptcies have not only been rising quickly — they have been rising in scale as “mega” firms go bust. “More than 30 American companies with liabilities exceeding $1 billion have already filed for Chapter 11” this year. https://bloomberg.com/news/articles/2020- 07-15/father-of-the-z-score-pr
edicts-a-surge-in-mega- bankruptcies

end

***

iii) Other physical stories:

Central Banks Buy Another 40 Tons Of Gold In May

Via SchiffGold.com,

Central banks added a net of 39.8 tons of gold in May,according to the latest data from the World Gold CouncilMay purchases maintained the pace we’ve seen through the first four months of the yearand was slightly above the four-month average of 35 tons.

So far in 2020, central banks have added a net of 181 tons of gold to their reserves. That’s about 31% lower than the total through the same period last year. The lower rate of purchases in 2020 was entirely expected given the strength of central bank buying both in 2018 and 2019.

Central bank demand came in at 650.3 tons last year.That was the second-highest level of annual purchases for 50 years, just slightly below the 2018 net purchases of 656.2 tons. According to the WGC, 2018 marked the highest level of annual net central bank gold purchases since the suspension of dollar convertibility into gold in 1971, and the second-highest annual total on record.

The World Gold Council bases its data on information submitted to the International Monetary Fund.

Continuing a trend we’ve seen throughout 2020, Turkey drove central bank gold-buying in May, adding 36.8 tons. That brings its total reserves to roughly 561 tons. The Turkish lira dropped to all-time lows in early May. Analysts told CNBC  that rapidly shrinking foreign reserves, inflation and currency devaluation are showing no signs of abating. The Turkish central bank is frantically trying to backstop its currency. Meanwhile, Turkey is selling dollars. According to Bloomberg,  state banks sold roughly $1.1 billion of foreign currency in just two days in May.

Uzbekistan was the other major buyer of gold in May, adding 6.8 tons of gold to its reserves. The Uzbeks were big buyers in 2019, but have primarily been sellers this year.

Russia bought a half-ton of gold in May. In March, the Central Bank of Russia announced a plan to suspend gold-purchases for the time being, effective April 1. But there was immediate pressure on the bank to resume purchases. In early April, Russian banks asked the Central Bank of Russia to resume buying gold for its reserves as gold exports were hobbled by the coronavirus pandemic. In a letter released on April 29, the Russian central bank said it did not see any need to resume buying gold at the time, but added it would continue to monitor the situation in both the global gold market and the banking sector.

Mongolia was the only big seller in May, shrinking its gold reserves by 3.3 tons. Columbia sold 0.9 tons of the yellow metal.

For the eighth straight month, the People’s Bank of China did not report any gold purchases.  It’s not uncommon for China to go silent and then suddenly announce a large increase in reserves.

Many analysts believe China holds far more gold than it officially reveals. As Jim Rickards pointed out on Mises Daily back in 2015many people speculate that China keeps several thousand tons of gold “off the books” in a separate entity called the State Administration for Foreign Exchange (SAFE). Given the political dynamics and the ongoing trade war, it seems unlikely the Chinese suddenly stopped increasing their gold reserves in 2016.

.

The World Gold Council says it expects central bank demand for gold to continue in the near-term.

As we noted in our Q1 2020 Gold Demand Trends report, the case for central banks holding gold remains strong. Especially considering the economic uncertainty caused by the COVID-19 pandemic.”

The WGC 2020 Central Bank Survey found that 20% of central banks globally plan to expand their gold holdings in the next 12 months.

Factors related to the economic environment – such as negative interest rates – were overwhelming drivers of these planned purchases.This was supported by gold’s role as a safe haven in times of crisis, as well as its lack of default risk.”

end

Von Greyerz: The ‘Humpty-Dumpty’ System Is Irreparable

Authored by Egon von Grezerz via GoldSwitzerland.com,

What does it take to break the global financial system? Well, we obviously know what it takes since the system is already broken. Broken by debts, broken by deficits, broken by a fractured financial system, and broken by false markets as well as fake money.

So just like Humpty Dumpty, the system has already had a big fall. But the world still believes that this is all a fairytale with a happy ending. No one wants to recognise that Humpty is totally broken and irreparable. 

NO ONE CAN PUT HUMPTY TOGETHER AGAIN

All the king’s men, in the shape of the Fed and other central banks plus governments, are desperately trying to put Humpty back together again. The problem is that the glue just won’t stick. Already back in 2007-9 and thereafter, massive amounts of glue were applied in the form of unlimited money printing and credit creation. The problem was that a remedy in big quantities serves no purpose if the quality is poor.

Fortunately for the king’s men, nobody realised that they worked with inferior material. Equity markets only care about quantity and there certainly was enough glue or printed money. So it has been all about quantity or printing a lot of worthless money. Why else would it be called QE or quantitative easing?

HOCUS POCUS ACTIONS

QE is one of these Hocus Pocus words, invented by TPTB (the powers that be), which sounds important and mysterious. But for us normal mortals it should be called MP or money printing. That’s all it is, but since money printing sounds quite crude, the Fed and Co think they can get away with a posh word which nobody understands. All QE stands for is printing money in great quantities.

But let’s just understand that the glue or printed money which is supposed to fix the financial system is fake. There is no chance that all the king’s horses and all the king’s men can put the system together again.

A world which has got used to a rising living standards based on debt and fake money is under the illusion that this is all that is required to create wealth. A fake world and an illusory financial system cannot survive without creating real values based on hard work with the production of goods and services. Sustainable wealth can never be achieved by financial wizardry and hocus pocus money. 

A DUMBFOUNDED SYSTEM HAS DUG ITS OWN GRAVE

A few of us have understood that the end game would consist of unlimited creation of debt and fake money. Not because anyone believes that the biggest debt bubble in the world will disappear by issuing more debt. But this is the only remedy left to a totally dumbfounded system which has for years dug its own grave.

It is into this grave that Humpty has fallen. The king’s men believe that they can pull him out like they have for decades but this time it won’t work.

WORLD ECONOMIC FORUM PLANNING THE GREAT RESET

TPTB are desperately working on solutions. For example, the WEF (World Economic Forum) in Davos are calling the next Forum in early 2021 “The Great Reset”.

They have created a Strategic Intelligence Platform which will help the members to control the world. Strategic Partners of the WEF will be members of a number of platforms from which they intend to orchestrate the Great Reset. These platforms include “Shaping the future of: Technology, Blockchain, New Economy & Society, Future Consumption, Digital Economy, Financial and Monetary Systems, Trade, Cities & Infrastructure, Energy, Media & Culture etc.

Well, it sounds like they plan to control everything.

Central bankers, bankers, industrialists incl. Bill Gates, IMF MD, ECB President Lagarde, Mark Carney former Bank of England governor etc are all members.

The WEF has developed the Fourth Industrial Revolution (4IR) which “will leave no aspect of global society unchanged”.

ORWELL’S 1984 IS HERE

All this sounds quite frightening but that is clearly the intention too. George Orwell’s 1984 is not just approaching at great speed but also becoming more realistic by the day.

There is only one major problem. Whatever wizardry and however much glue TPTB apply, there is just no way that a system that is totally broken can be repaired. The world has reached the end of the road and will need a reset.

But even if TPTB attempt an orderly reset with debt moratoria and a new artificial reserve currency like a crypto dollar, it can at best only fool the world for a very brief period.

A DISORDERLY RESET

The real reset, which will be disorderly, will inevitably happen thereafter. This will involve an implosion of the financial system including debt, stock and property markets. Sadly Humpty will be totally buried in the rubble of this collapse.

As I have pointed out many times, the world can only attain real growth in a system which has eliminated a mega debt which can never be serviced or repaid. What must also implode are fake bubble markets and false money.

The transition to a sound system will clearly be very painful for the world, but sadly totally necessary.

A DANGEROUS INTERCONNECTED WORLD

Before we get there, we will see more of the same, namely unlimited money printing which has already started. But we have only seen the mere beginning. The danger with a global financial system is that nobody can escape. Everything is totally interconnected and interlocking. A serious problem in a Hong Kong bank will instantaneously reverberate around the world and within minutes affect the whole financial system.

Take Deutsche Bank (DB) which many observers have for many years expected to fall. It has equity of €57B which is only 4% of their total balance sheet. In addition, their gross derivative exposure is €44 trillion. The market cap is just €18B, well below the equity. So the market clearly doesn’t believe the net asset value is real.

A 5% bad debt write-off or a 0.13% loss in derivatives would be enough to wipe out DB. It would be surprising if the losses on the debt portfolio were less than 25% or derivative losses less than say 5%. Still, these magnitudes of losses would bankrupt DB.

DERIVATIVES – A NUCLEAR BOMB

Derivatives is a nuclear bomb and when a counterparty fails, the $1.5+ quadrillion bubble will burst in one fell swoop.

In a fractured global financial system where every single entity is under-capitalised. It will take very little to bring everything down at once. And that is not an improbable outcome in the next few years.

This brings us back to gold which stands as La Grande Resistance against the broken Humpty or financial system. 

It is no coincidence that gold is the only money that has survived every single financial crisis in history. For 5,000 years, there has been no permanent replacement for gold. And whatever alternative governments and central bankers come up with to solve the current crisis, it can never replace nature’s money. Gold is eternal money and the only reserve currency that has stood the test of time.

END

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.9885/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9851   /shanghai bourse CLOSED DOWN 53.31 POINTS OR 1.56%

HANG SANG CLOSED UP 3.69 POINTS OR 0.01%

 

2. Nikkei closed UP 358.49 POINTS OR 0.01%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 95.86/Euro RISES TO 1.1441

3b Japan 10 year bond yield: RISES TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.90/ 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:: 40.83 and Brent: 43.86

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.43%/Italian 10 yr bond yield DOWN to 1.21% /SPAIN 10 YR BOND YIELD DOWN TO 0.42%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.64: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.27

3k Gold at $1806.40 silver at: 19.29   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 11/100 in roubles/dollar) 70.866

3m oil into the 40 dollar handle for WTI and 43 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 106.90 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 .9418 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0774 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.43%

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 0.65% early this morning. Thirty year rate at 1.34%

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

6.  TURKISH LIRA:  UP  TO 6.8655..

Global Stocks Soar On Vaccine Optimism

Global stocks surged, and US equity futures jumped rising to the Monday pre-dump highs, on coronavirus vaccine optimism (with headlines now conveniently appearing every time stocks appear poised for a selloff) and looking past record daily death rates in some states and brewing tensions between Washington and Beijing. Yields rose and the dollar slumped to a one month low.

US stocks staged a late session surge on Tuesday after news that Moderna’s coronavirus vaccine produced antibodies to the coronavirus in all patients tested in an initial safety trial. The vaccine developments brought optimism to financial markets that have been struggled to make headway recently in the face of new outbreaks across the U.S. and Asia.

Moderna shares surged 18% in pre-market trading following late Tuesday news that it was safe and provoked immune responses in all 45 healthy volunteers in an ongoing early-stage study, while AstraZeneca rose after a report that a medical journal will release positive news on the coronavirus vaccine the company is developing with University of Oxford researchers. American Airlines, United Airlines Holdings, Carnival Corp, Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd rose between 6% and 6.8%.

“The vaccine news is clearly a positive development,” said Mark Nash, head of global fixed income at Merian Global Investors. “But it’s still long way off. The fear of the W-shaped recovery is probably very high at the moment. Good news is that markets still have a chance to ride it out because the Fed has bought time, so financial conditions can stay easy until growth kicks in.”

Europe’s Stoxx 600 Index extended gains to 1.3% shortly before noon in London, with travel leading among sectors, amid positive sentiment in markets on the back of progress in developing a coronavirus vaccine. European index heads for a third day of gains in four sessions The Travel & Leisure sector rose 2.7%, led by Carnival while the Stoxx Europe 600 Industrial Goods & Services +2.5%, boosted by Schneider Electric, Adyen. Banks and telecom gauges are the only two trading lower. Atlantia SpA surged 22% as Italy’s government moved to resolve a long-running dispute linked to a 2018 bridge collapse.

Earlier in the session, Asian stocks gained, led by industrials and materials, after falling in the last session. Most markets in the region were up, with India’s S&P BSE Sensex Index gaining 1.9% and Australia’s S&P/ASX 200 rising 1.9%, while Shanghai Composite dropped 1.6%. Trading volume for MSCI Asia Pacific Index members was 17% above the monthly average for this time of the day. The Topix gained 1.6%, with Danto and SERAKU rising the most.

Surprisingly, Chinese markets underperformed with the Hang Seng and Shanghai Comp. (-1.6%) both negative after US President Trump signed legislation and an executive order to hold China accountable for actions in Hong Kong, with the executive order to remove preferential treatment for Hong Kong and which will now be treated the same as China. Furthermore, China later responded that it strongly opposes US signing the sanctions bill and that it will implement its own sanctions on US officials and entities. Reports of China state funds continuing to sell shares also did not help in which a pension fund was said to have offloaded 42.3mln BoCom A-shares on Tuesday.Qianjiang Water Resources Development and Shanghai LongYun Media Group Co Ltd posting the biggest drops.

In FX, the Bloomberg Dollar Spot Index fell to a one-month low as Norway’s Krone led G-10 gains followed by the pound; the krone was also supported by higher oil prices, while sterling got a boost after U.K. inflation surprisingly accelerated last month. The euro rose a fourth day against the dollar to a four- month high of 1.1445, and the cost to hedge one-day fluctuations in euro-dollar suggests market makers see a good chance that year-to-date highs may come to test as Thursday’s European Central Bank meeting comes into focus. Sweden’s krona touched its strongest level in 17 months against the euro as risk sentiment improved and following a report that showed Swedish inflation expectations didn’t drop further.

In rates, Treasury yields moved higher with gilt yields also rising after a debt sale. US Treasury yields were higher by 2bp-3bp at long end, remaining inside weekly ranges, 10-year by ~2bp at 0.643; U.K. 10-year yield higher by 2.6bp, gilts leading declines for sovereign bond markets. UST 5s30s steeper for first day in five, approaching 104bp.

In commodities, oil gained after a report pointed to a drop in U.S. crude stockpiles; gold remained well above $1800.

Looking at the day ahead, the focus will be on corporate earnings with highlights including UnitedHealth Group, Goldman Sachs, US Bancorp, BNY Mellon and Infosys. Otherwise, there’ll be a rate decision from the Bank of Canada, the release of the Fed’s Beige book, as well as remarks from the BoE’s Tenreyro and the Fed’s Harker. Finally, data highlights include June industrial production and capacity utilisation numbers, along with July’s Empire State manufacturing survey.

Top Overnight News from Bloomberg

  • German Chancellor Angela Merkel said she’s prepared to compromise in difficult talks on assembling a European recovery plan this weekend in Brussels, as Spanish Prime Minister Pedro Sanchez urged leaders to reach an accord at the meeting
  • The EU Council needs to make a decision on a European recovery plan by the end of July, Italy’s Prime Minister Giuseppe Conte tells lawmakers on Wednesday
  • Bank of Japan Governor Haruhiko Kuroda said Japan’s economy was past the worst, but warned the recovery would be slow, adding that he remains ready to take further action if needed; said that excessively low super-long yields could cause problems
  • The U.K. will sell nearly twice as many bonds than it did during the height of the financial crisis, according to estimates of primary dealers
  • Bank of England policy maker Silvana Tenreyro says current pace of recovery will be slowed by social distancing, restrictions in some sectors and higher unemployment
  • U.K. levels of Covid-19 infection fell faster than previously reported in May, according to a study of 120,000 people that took place before the country’s lockdown was eased
  • OPEC+ is seeking extra production cuts from members that have missed their targets again in June, potentially tempering the impact of the supply resumption planned by the wider coalition next month.

Market Snapshot

  • S&P 500 futures up 0.8% to 3,208.00
  • STOXX Europe 600 up 0.9% to 370.81
  • MXAP up 1.1% to 166.57
  • MXAPJ up 0.8% to 548.07
  • Nikkei up 1.6% to 22,945.50
  • Topix up 1.6% to 1,589.51
  • Hang Seng Index up 0.01% to 25,481.58
  • Shanghai Composite down 1.6% to 3,361.30
  • Sensex up 1.9% to 36,710.28
  • Australia S&P/ASX 200 up 1.9% to 6,052.92
  • Kospi up 0.8% to 2,201.88
  • German 10Y yield fell 1.1 bps to -0.458%
  • Euro up 0.3% to $1.1438
  • Italian 10Y yield fell 2.4 bps to 1.085%
  • Spanish 10Y yield fell 1.4 bps to 0.394%
  • Brent futures up 1.5% to $43.54/bbl
  • Gold spot little changed at $1,810.36
  • U.S. Dollar Index down 0.4% to 95.91

Asian equity markets were mostly positive as the regional bourses tracked the cyclical-led gains in US peers and on vaccine hopes after Moderna’s COVID-19 vaccine produced antibodies in all 45 patients tested in an initial study. ASX 200 (+1.9%) and Nikkei 225 (+1.6%) were lifted from the open with Australia’s tech sector and gold miners front-running the broad advances in the index which surpassed the 6000 milestone, while the Japanese benchmark printed its highest level in over a month and withstood the ongoing virus concerns in Tokyo which prompted the city to switch to its highest COVID-19 alert status. Chinese markets underperformed with the Hang Seng (U/C) and Shanghai Comp. (-1.6%) both negative after US President Trump signed legislation and an executive order to hold China accountable for actions in Hong Kong, with the executive order to remove preferential treatment for Hong Kong and which will now be treated the same as China. Furthermore, China later responded that it strongly opposes US signing the sanctions bill and that it will implement its own sanctions on US officials and entities. Reports of China state funds continuing to sell shares also did not help in which a pension fund was said to have offloaded 42.3mln BoCom A-shares on Tuesday. Indian markets were also notable gainers with the NIFTY up 0.2% and the NIFTY IT index gaining around 3% in early trade alongside Wipro shares which hit 10% upper circuit following a beat on earnings. Finally, 10yr JGBs were lacklustre amid the gains in stocks and unsurprising BoJ policy hold, while there was notable corporate supply with Nissan pricing a JPY 70bln 3-tranche in its first JPY-denominated bond offering since 2016.

Top Asian News

  • Hong Kong’s Beaten Down Stocks Face Yet Another Blow from Trump
  • Central Banker Urges Israel to Seize Cheap Debt Opportunity
  • Hillhouse Invested About $1 Billion In Beigene’s Share Sale
  • ChemChina, State Funds Said in Talks for Syngenta’s Pre-IPO

European equities trade higher across the board (Eurostoxx 50 +1.1%) following the recovery in the latter half of yesterday’s session for US equities. As has been the case throughout the week, there wasn’t a great deal of narrative-altering newsflow for the majority of the session with many of the same macro factors that are in focus having been present for some time now. Some of the positivity late doors emanated from a COVID-19 drug update from Moderna, however, the latest update doesn’t necessarily mark a breakthrough from the data already published in May with the latest findings instead from a larger sample group than prior. More recently, global bourses took another leg higher and moved back into proximity to session highs on reports via ITV’s Peston that positive news is on the way, perhaps as soon as tomorrow, for AstraZeneca’s (+2.9%) COVID-19 vaccine – which is seeing a rare ‘twin effect’ in terms of the response for both antibodies and T-cells. In terms of sectoral performance for Europe, travel & leisure names are the clear outperformer with the sector noted as one of the purest reopening plays. Carnival (+5.3%), Ryanair (+5.1%), Tui (+3.2%) and easyJet (+2.9%) all trade with notable gains, however,  there has been little in the way of sector-specific newsflow in the past 24 hours for European airline names. Elsewhere, Auto names are also trading firmer today with Renault the outperformer in the sector after reports that Nissan is to start selling an EV. To the downside, Telecom names lag peers in a potential pullback from some of the upside seen yesterday in the wake of the UK’s decision to bar Huawei from the UK’s 5G network by 2027. In terms of individual movers, Atlantia (+24.2%) sit at the top of the Stoxx 600 as the company appears to be making progress in striking a deal with the Italian government, whilst Burberry (-6.9%) are a notable underperformer after its latest trading update in which it expects a potential 50% decline in H1 sales.

Top European News

  • The 700 Billion-Euro Man Counting Each Cent to Keep Italy Afloat
  • Kremlin Plots Pullback from Stimulus Despite Rising Infections
  • Sunak Orders Review of U.K. Capital Gain Tax After Virus Splurge
  • BOE’s Tenreyro Is Ready to Boost Stimulus Again If Needed

In FX, it was a woeful start to Wednesday’s EU session for the Greenback as losses accumulate across the board on various fundamental and technical factors, including a rebound in broad risk sentiment due to more positive COVID-19 vaccine reports and somewhat contradictory persistent/latent concerns about the resurgence of the virus in US states. The index has fallen below 96.000 and close to June lows (95.716) at 95.866 as several Dollar/major pairs extend beyond or breach round number levels that have been providing some support for the Buck and resistance in terms of G10 counterparts. Ahead, a busy midweek US data docket and more Fed speak from Harker before the latest Beige Book.

  • GBP – Sterling has benefited most from the Greenback’s ongoing travails, with Cable back above 1.2600, but the Pound also reclaiming losses vs the Euro from sub-0.9100 lows yesterday on a technical retracement rather than anything specifically Gbp supportive. On that note, UK CPI data was a tad firmer than expected, but still benign and BoE’s Tenreyro subsequently countered with a disinflationary outlook, while adding that NIRP is a live issue for the MPC currently under review.
  • AUD/NZD/EUR/JPY/CAD/CHF – All firmer against the US Dollar as noted above, with the Aussie hitting fresh 1+ month highs with the aid of momentum buying when 0.7005 was breached, but meeting offers into 0.7020 ahead of jobs data on Thursday. Meanwhile, the Kiwi continues to lag around 0.6550 and 1.0680 in Aud/Nzd cross terms awaiting Q2 CPI tonight in contrast to the Euro that has extended gains on the 1.1400 handle to circa 1.1445 and surpassing June 10’s 1.1422 best along the way pre-ECB tomorrow. Elsewhere, the Yen has rebounded from 107.30 to 106.90 and the Loonie is pivoting 1.3600 in the run up to the BoC with options pricing in a 57 pip break-even on the event, while the Franc remains mixed either side of 0.9400 vs the Buck and down to 1 month lows against the single currency near 1.0740.
  • SCANDI/EM – The Norwegian and Swedish Crowns are both nudging key markers vs the Euro at 10.6500 and 10.3500 respectively, with the former buoyed by firm crude prices and latter maintaining post-inflation data impetus even though June’s trade deficit widened significantly and almost all CPI/CPIF projections from Prospera were unchanged. Similarly, the Rand has taken weaker than forecast SA inflation in stride on overall Dollar weakness and despite potential implications for the SARB policy meeting next week given a relatively reserved -25 bp consensus vs -1/2 point last time.

In commodities, WTI and Brent remain bolstered ahead of the JMMC meeting, with sentiment generally positive this morning and after last nights larger than expected draw in private inventories. Firstly, the JMMC, which energy correspondents note is expected to commence from around 13:00BST/08:00ET but as with any OPEC related event the timing should be taken as guidance only. Indications heading into the JMMC meeting point towards the committee recommending that the level of production cuts is reduced, which would be in-line with the original plan. As a reminder, the JTC committee met yesterday to discuss the planned easing of cuts to 7.7mln BPD; note, Saudi is said to be looking to keep export figures steady for the month of August. JMMC aside, much of the upside price action follows on from yesterday’s private inventories where crude stocks printed a larger than expected draw of 8.3mln vs. Exp. draw of 2.1mln; focus turns to today’s EIA stocks for confirmation of this reading with expectations pointing to a draw of 2.09mln. Turning to metals, spot gold has been choppy this morning with the upside just after the European cash open derived from further USD downside as well as resistance levels lying in proximity to the current high. Elsewhere, Antofagasta is calling for further negotiations to resolve the strike action in Chile; but, the strike action has not been sufficient to bolster copper prices thus far.

US Event Calendar

  • 8:30am: Export Price Index MoM, est. 0.8%, prior 0.5%; Import Price Index MoM, est. 1.0%, prior 1.0%
  • 8:30am: Empire Manufacturing, est. 10, prior -0.2
  • 9:15am: Industrial Production MoM, est. 4.3%, prior 1.4%; Manufacturing (SIC) Production, est. 5.65%, prior 3.8%
  • 2pm: U.S. Federal Reserve Releases Beige Book

DB’s Jim Reid concludes the overnight wrap

Unless I’m forgetting a random trip, I drove a car yesterday for the first time since lockdown and also wore a mask for the first time. Luckily I didn’t do the two together as my glasses kept on steaming up wearing it. Watch that mobility data climb in the U.K.. It was only 4 minutes to a local physio as I’ve hurt my hip and back over the last month and it won’t go away, especially when my wife asks me to do something. The physio has managed to diagnose it. It’s got quite a complicated name so bear with me. She said it’s likely “middleagemanovergolfingintheeveningsinlockdownitis”. In short I’m having spasms all over my lower back. Interestingly she said that since she reopened she is seeing a surge in patients as people have either done too little exercise in lockdown or too much.

Talking of aches and pains, US markets leapt off Monday’s treatment table to power to 5 week highs overnight as earnings season got underway. The US rally has continued into Asia as we’ll see below. The S&P 500 advanced by +1.34% yesterday as cyclicals such as energy (+3.61%), materials (+2.54%) and industrials (+2.18%) led the way. Tech stocks underperformed somewhat, as the NASDAQ rose ‘only’ +0.94%, while the Dow Jones saw a much stronger +2.13% advance on the back of CAT (+4.83%). In terms of the earnings details we heard from 3 major US banks. JPM rose +0.57% as Q2 profits were down just over 50%, a smaller drop than analyst’s forecasted as the firm set a record for trading revenue in the Spring at $9.72bn. Citigroup (-3.93%) also saw a large rise in trading, but saw their shares fall on loan-loss provisions. Such provisions, as well as one off costs and the lack of a large trading operation, saw Wells Fargo (-4.57%) post its first quarterly loss since 2008 as it also lowered its dividend. The three banks set aside nearly $28bn for defaulted loans this past quarter, only the last quarter of 2008 and the heights of the Financial Crisis saw a larger total provision. On the back of all of this, US banks were the only S&P industry group to finish lower on the day, falling -1.19%.

While we’re on the subject of earnings, our Chart of the Day yesterday highlighted that our equity strategists see a quarter where we’re likely to see a notable collective beat as analysts expectations lagged data surprises in the last few weeks of the quarter. We also show how bifurcated the S&P 500 is with 490 stocks range trading since early April while the 10 mega cap growth stocks (27% of market cap) power ahead to new highs. If you missed the CoTD see it here with all the links to our equity strategists pieces contained within. Please email Jim-Reid.ThematicResearch@db.com to get added to this new daily CoTD.

Futures on the S&P 500 are up another +0.73% this morning after Moderna announced post the market close that their Covid-19 vaccine produced antibodies in all 45 patients tested in an early round of trials. This is a key threshold for US regulators and raises hopes that the vaccine may be within sight. However a number of patients did experience side effects with some being severe. The vaccine now moves onto a much later-stage trial which will most likely determine whether the US approves it for use. According to the results published in the New England Journal of Medicine, antibody levels produced in the trial were equivalent to the upper half of what’s seen in patients who get infected with the virus and recover. The stock was up over +16.5% in after-market trading following the report.

Overnight, the Bank of Japan left its monetary policy unchanged even as their price and growth forecasts were revised down. The latest forecasts point to a deeper slump this year, but suggest a slightly faster pick up in the following years. Outside of US futures, Asian markets are trading mixed this morning with the Hang Seng (-0.55%), CSI (-1.04%) and Shanghai Comp (-1.39%) lower likely helped by the US Hong Kong legislation news mentioned below while the Nikkei (+1.26%), Kospi (+0.48%) and Asx (+1.35%) are trading up boosted in part by the vaccine news.

Back in Europe yesterday the picture was more negative as much of the US rally occurred after the European close as they caught down to the previous day’s US declines. By the close the STOXX 600 (-0.84%), the CAC 40 (-0.96%) and the DAX (-0.80%) had all seen noticeable declines. Sovereign bonds performed strongly however given the earlier risk-off, and yields fell across the continent. Gilts were the strongest performer (more on which below), but otherwise bunds (-3.0bps), OATs (-3.0bps) and BTPs (-2.5bps) all saw similar moves. In the US, 10yr Treasuries ended the session +0.5bps.

The advances for US equities came in spite of the fact that the number of coronavirus cases there continues to rise. Tuesday is often a day with weekend catch up so we have to be a bit careful with the data, but some states did actually record cases under their weekly average. Florida posted a further 3.3% rise in cases yesterday, under the 7 day average of 4.6%, however the state recorded 132 deaths, well above the 7 day average of 72. On the other hand, Arizona had its most recorded cases in nearly 2 weeks. The 3.5% increase in cases was well above the 7 day average of 2.9%, as the number of cases over each of the past 2 days were far below the 3200 per day average observed over the last week, indicating a good deal of catch-up. California was another state that saw a higher case load than their weekly average, with 10,898 new cases vs. 7800. Overall the pace of new cases in the US rose in line with the weekly average at 2%. This week and early next week will be key to see if some shutdown measures undertaken in the Southern US begin to work and also whether we see a larger spike in deaths in heavily affected areas. So far fatalities have been notably lower per recorded case than they were in the first wave.

Over in New York, where case growth was at a much-more subdued 0.2%, a further 4 states were added to its 14-day quarantine list, bringing the total to 22. And in Philadelphia, ABC-6 reported that the city would ban big public events through February 2021. Meanwhile, Tokyo has said overnight that it will raise the Covid-19 warning one notch to the highest level on a scale of 4. Tokyo has reported daily infections exceeding 200 for four consecutive days and cases of unknown origin are rising. On the positive side, China is set to allow tour agencies and online tourism companies to run local group tours and hotel bookings across provinces, though foreign tourism will still be banned.

With the virus picture murky in the US, Fed Reserve Governor Brainard said yesterday that, “A thick fog of uncertainty still surrounds us, and downside risks predominate.” She noted that the central bank should ensure that both forward guidance and asset purchases provided long-term accommodations for financial markets. Like others at the Fed, she espoused on how important fiscal support would be for the recovery, while saying it was “unclear” whether the recent pace of labour-market recovery would endure. Brainard also weighed in on YCC, saying that the time may come for the central bank to reinforce forward guidance by selectively targeting parts of the yield curve, while also making very clear that was imminent in that regard. Later, we heard from Federal Reserve Bank of St. Louis President James Bullard and he said that he sees little need for stronger forward guidance or yield curve control because markets are already projecting very low interest rates for the indefinite future. He also cited Homebase data as a guide for the US employment report and said, “You would see a positive report for July but it wouldn’t be as big of a gain as for May and June. That wouldn’t be surprising because those gains were quite large”.

Here in the UK, the main announcement yesterday was official confirmation that masks would be compulsory in English shops from July 24, punishable by a £100 fine. That said, the case numbers in the UK are substantially lower than in the US, and the latest official death statistics from England and Wales yesterday showed that the total number of deaths from all causes in the week ending July 3 were below the five-year average for a 3rd consecutive week. Similar moves on masks are taking place in France, with president Macron saying he wanted people to wear masks in all indoor public spaces by the start of August.

Moving on, we got a number of China headlines yesterday as tensions continue to ratchet up between them and the US. Firstly, we got the news that China would be imposing sanctions on Lockheed Martin, following the decision of the United States to approve the sale of missile parts to Taiwan. Separately, we then heard later in the day that the UK would completely remove Huawei from its 5G networks by the end of 2027, and that there would also be a total ban on the purchase of any new 5G kit from Huawei after the end of this year. The decision follows new advice from the UK’s National Cyber Security Centre on the impact of US sanctions on Huawei. Meanwhile, President Trump said overnight that he has issued an order to end Hong Kong’s special status with the US and signed legislation that would sanction Chinese officials responsible for cracking down on political dissent in the city. In response, China has vowed to take strong countermeasures and sanction US officials and entities over the Hong Kong law while, urging the US to “correct its wrongdoings” and to stop interfering in Hong Kong affairs.

While we’re on China, yesterday our economist Yi Xiong released his H2 outlook for the country (link here). According to him, the V-shaped recovery is largely complete, and he forecasts +4.5% year-on-year GDP growth by Q4 2020. Interestingly, he says that sectoral divergence will be the main theme in the second half, thanks to changes in consumer preferences and business models. This will mean that some sectors see permanent revenue losses, while others have the potential to achieve above-trend growth.

Back to yesterday and here in the UK, we got some disappointing GDP data for May yesterday, with just a +1.8% month-on-month expansion (vs. +5.5% expected). Even with the growth in May, that still leaves economic activity for the month down by -24.5% compared with February’s level, and raised concerns that the hoped-for V-shaped recovery won’t be materialising any time soon. Gilts outperformed after the release as investors hoped for further monetary stimulus, with 10yr yields (-3.6bps) closing at an all-time low of 0.15%. Furthermore, at one point in the day, 2-year gilts were actually yielding less than their Japanese counterparts for the first time in living memory. Our UK team also updated their fiscal projections yesterday (link here), and now see borrowing rising to £375bn in 2020/21, with risks firmly tilted to the upside.

In terms of yesterday’s data, the main highlight was the US CPI reading for June, with inflation rising to +0.6% year-on-year, in line with expectations, while core inflation remained at +1.2%. The month over month measure rose to 0.6%, just above expectations of 0.5% and the highest one month pickup since Jan 2017. Elsewhere, the NFIB small business optimism index also rose to 100.6 (vs. 97.8 expected).

To the day ahead now, and earnings season continues apace, with highlights including UnitedHealth Group, Goldman Sachs, US Bancorp, BNY Mellon and Infosys. Otherwise, there’ll be a rate decision from the Bank of Canada, the release of the Fed’s Beige book, as well as remarks from the BoE’s Tenreyro and the Fed’s Harker. Finally, data highlights include the UK CPI reading for June, while from the US there’s the June industrial production and capacity utilisation numbers, along with July’s Empire State manufacturing survey.

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 53.31 POINTS OR 1.56%  //Hang Sang CLOSED UP 3.69 POINTS OR 0.01%   /The Nikkei closed UP 358.49 POINTS OR 1.59%//Australia’s all ordinaires CLOSED UP 1.90%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9855 /Oil UP TO 40.83 dollars per barrel for WTI and 43.36 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9855 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9881 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA VS USA

Trump Signs Sanctions Bill Ending Preferential Treatment For Hong Kong

Update (1736ET): Trump just confirmed that he will indeed be signing the sanctions bill in retaliation for Hong Kong, slapping sanctions on officials who help enforce the CCP’s new national security law that flouts the city’s independence accorded by the Basic Law, and stripping Hong Kong of its preferential treatment, according to Trump.

The bill passed through Congress with unanimous consent, highlighting how Trump’s more aggressive posture toward China has become a point of bipartisan favor – even Joe Biden has suffered a political toll for his friendly rhetoric. A chorus of western countries has criticized China’s move to curtail political freedoms, including speech and assembly, labeling it “terrorism” and “secessionist”.

* * *

Update (1715ET): As we wait for Trump to take the podium, media reports are claiming that Trump is planning to announce that he’s signing the Hong Kong Autonomy Act, a bipartisan measure to penalize banks that work with Chinese officials found to be interfering in Hong Kong affairs.

It’s essentially sanctions-lite for CCP officials involved with enforcing the new Hong Kong national security law that prompted Sec Pompeo to declare that Hong Kong is no longer sufficiently autonomous.

* * *

One day after the State Department announced that the US would no longer recognize the South China Sea as Chinese territory, President Trump is holding his first press briefing in weeks, purportedly to discuss these latest actions against China.

Though we suspect most of the questions will focus on the administration’s coronavirus response and President Trump’s latest efforts to pressure states to commit to holding in-person classes when the new school year begins, Trump has much to discuss, including Magnitsky Act sanctions on Chinese officials tied to Xinjiang and the administration’s continued pressure campaign against Huawei, which received a boost earlier today when the UK’s decision to exclude Huawei from its 5G network also

The briefing begins at 1700ET, though we suspect Trump will be late. It will take place in the Rose Garden, Trump’s favorite venue, despite the heat in Washington.

END

 

CHINA VS USA

Zhou Li, is really the economic voice for China.  He urges China to decouple the yuan from the dollar and this must precede full blown escalation

(Zhou Li/zerohedge)

 

The Dollar “Has Us By The Throat”: Chinese Official Urges Gradual Decoupling Of Yuan Ahead Of “Full-Blown Escalation”

With all eyes on Trump’s Tuesday evening Rose Garden speech which unveiled that he’ll sign new and punitive measures indirectly targeting China — namely the Hong Kong Autonomy Act, a bipartisan measure to penalize banks that work with Chinese officials found to be interfering in Hong Kong affairs — it remains that arguably the most important recent statements out of China came not from current government officials, but from Zhou Li, the 65-year-old former deputy head of the Chinese Communist Party’s International Liaison Department. He’s considered an important voice who echoes the outside the box thinking and general “talk” of the communist party’s diplomatic establishment.

Amid the soaring US-China tension which could give way to a military stand-off in the South China Sea, given the presence and military exercises of two US supercarriers there, Zhou Li earlier this month issued what many see as the more radical ‘extreme thinking’ out of the communist party: an eventual decoupling of the Chinese yuan from the US dollar.

This would be a “full-blown escalation” with no off ramp scenario. But given the tit-for-tat with Washington is likely to lead precisely to further extreme responses on both sides, Zhou’s position could in the end be the final weapon Beijing ultimately and no doubt reluctantly pulls out of its arsenal. Now is the time for Beijing to begin insulating itself from “dollar hegemony and gradually achieve the decoupling of the renminbi from the US currency,” Zhou argued“The US dollar could become a major risk issue that ‘has us by the throat’.”

He penned an article widely reported on in regional media which “predicts industrial supply chains being torn up, a China-U.S. decoupling and a world split into dollar and yuan economic blocs.” This would take China, contrary to President Xi’s ambitious plans for his country as an expanding global economic power, into a ‘forced’ unprecedented level of isolation.

“By taking advantage of the dollar’s global monopoly position in the financial sector, the US will pose an increasingly severe threat to China’s further development,” Zhou wrote in the article originally published by the Beijing-based think tank Chongyang Institute for Financial Studies at Renmin University.

Framing what’s at issue behind the former high ranking diplomat’s rationale, The South China Morning Post summarized:

The US had been able to leverage the dollar-dominated SWIFT international payments messaging system to extend “long-arm jurisdiction” for its policies outside America, including sanctioning Russia and Iran, Zhou noted. Sanctions against energy suppliers could jeopardise China’s energy security, he warned.

And further: “China must accelerate the internationalization of the yuan, speed up the increase in cross-border payments and clearing arrangements for the yuan, establish local currency settlement mechanisms with more countries, and create conditions to maximise the use of the Chinese currency in global industrial supply chains, Zhou said.”

Broadly, in this most dire scenario spelled out by Zhou, decoupling would only be possible should a ripple effect of ‘walling off’ in other Chinese sectors also be aggressively pursued and in progress.

 

Via Reuters: Chinese Vice Premier Liu He and U.S. President Donald Trump shake hands after signing their “phase one” trade agreement at the White House in Washington on Jan. 15, 2020.“Beijing should seize the opportunity to build China-centric regional industrial chains, given the continued devastation to overseas demand and the disruption of global supply chains caused by the coronavirus,” SCMP wrote of his words.

“In addition, Zhou warned, China should brace for a worldwide food crisis and the return of international terrorism during the pandemic,” the report also noted.

* * *

In a brief outline presented separately by Nikkei, Zhou’s position is that the Chinese must prepare:

1. For the deterioration of Sino-U.S. relations and the full escalation of the struggle.

2. To cope with shrinking external demand and a disruption of supply chains.

3. For a new normal of coexisting with the novel coronavirus pandemic over the long term.

4. To leave the dollar hegemony and gradually realize the decoupling of the yuan from the dollar.

5. For the outbreak of a global food crisis.

6. For a resurgence of international terrorism.

Again, such a grim position forecasting isolation is nowhere near the official Chinese Communist Party line, but represents a predicted necessary future reaction to full-blown long lasting conflict with the US.

END
CHINA VS USA
USA will impose visa restrictions of Huawei executives etc
(zerohedge)

In Latest China Sanctions, Pompeo Says US Will Impose Visa Restrictions On Huawei Execs

Just days after the State Department announced that the U.S. would no longer recognize the South China Sea as Chinese territory, and one day after the president signed an executive order on Tuesday that would hold China accountable for its oppressive actions against the people of Hong Kong – Mike Pompeo unveiled the latest escalation in the ongoing US-Sino sanction tit-for-tat when the Secretary of State said the US will impose Visa restrictions on Chinese corporate executives within companies like Huawei who facilitate human rights violations. 

Pompeo – who said Washington continues to have a dialogue with China “on every level ” despite rising tensions – added the China Community Party is “putting freedom and democracy at risk” by its “expansionist” and “imperialist” behaviors. And with that, we somehow doubt that Beijing shares Pompeo’s cheerful assessment of the ongoing US-Sino dialogue.

Pompeo is expected to head to Europe next week to meet with European leaders and discuss China’s treatment of Hong Kong. He will leave Monday and visit top leaders in Britain and Denmark. According to Reuters, Pompeo will also discuss other subjects such as the controversial Nord Stream pipeline which has split Europe into pro and anti-US factions, as the question of who gets Russian oil threatens to spark the next geopolitical crisis.

Get out now or risk the consequences,” Pompeo said in Washington, referring to the Countering America’s Adversaries Through Sanctions Act, or Caatsa.

end
CHINA VS USA//LATE MORNING
Temper tantrum from the murderous Chinese regime.  They summon the uSA ambassador in protest to vain attempts at punishing Beijing. The problem is that the uSA is not doing enough
(zerohedge)

Stocks Slide After Enraged China Summons US Ambassador To Protest “Vain Attempts” To Punish Beijing

Here we go in the expected immediate tit-for-tat after President Trump announced Tuesday evening from the Rose Garden that he’ll be signing the Hong Kong Autonomy Act, a bipartisan measure to penalize banks that work with Chinese officials found to be interfering in Hong Kong affairs, but most especially the Mike Pompeo’s Wednesday morning statement indicating US will impose Visa restrictions on Chinese corporate executives within companies like Huawei who facilitate human rights violations.

China’s Vice Foreign Minister Zheng Zeguang summoned U.S. ambassador to China Terry Branstad Wednesday to make “solemn representations” regarding the executive order signed by President Donald Trump on Hong Kong, the ministry says in a statement, Bloomberg reports.

 

US Ambassador to China Terry Branstad, via AP.

China’s Foreign Ministry issued a statement Wednesday following the announcement that the controversial US punitive measures which indirectly take aim at China over its recent sweeping Hong Kong national security law that seeks to crush pro-independence protests will move forward.

China said it “firmly opposes” the new Hong Kong measures, which Beijing deems a serous violation of international law and norms.

A rush translation of the official statement reads:

This is gross interference in China’s internal affairs and seriously violates international law and basic norms of international relations. China firmly opposes this and strongly condemns it. In order to safeguard its own legitimate interests, China will make the necessary response to the wrong actions of the US, including sanctions against US entities and individuals.

And now the Huawei-related visa restrictions are being further condemned as Washington ‘interference’ in China national and business affairs.

 

News of China’s escalating response sent stocks – which had blissfully ignored all the recent US-Sino tit-for-tat – lower, with the Nasdaq turning red and Dow fading almost all of its gains.

end

 

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

ISRAEL

Quite a discovery:  Fenofibrate works wonders to eradicate COVID 19 form lungs.

(Hoffman/Hebrew University/Jerusalem)

special thanks to Chris Powell for sending this to me.

 

Hebrew U. scientist: Drug could eradicate COVID-19 from lungs in days

New study shows how coronavirus controls metabolism and which FDA-approved drug could stop it

Nahmias’ Lab at Hebrew University’s Grass Center for Bioengineering (photo credit: DANIEL HANOCH)
Nahmias’ Lab at Hebrew University’s Grass Center for Bioengineering
(photo credit: DANIEL HANOCH)

Researchers at Israel’s Hebrew University of Jerusalem and New York’s Mount Sinai Medical Center believe they could potentially downgrade COVID-19’s severity into nothing worse than a common cold.

New research by Hebrew University Prof. Ya’acov Nahmias and Sinai’s Dr. Benjamin tenOever revealed that the FDA-approved drug Fenofibrate (Tricor) could reduce SARS-CoV-2’s ability to reproduce or even make it disappear.

Hebrew University Professor Yaakov Nahmias (Credit: Daniel Hanoch)Hebrew University Professor Yaakov Nahmias (Credit: Daniel Hanoch)

SARS-CoV-2 is the scientific name for the novel coronavirus.

“Viruses are parasites,” Nahmias explained to The Jerusalem Post. “They cannot replicate themselves. They cannot make new viruses. They have to get inside a human cell and then hijack that cell.”

As such, Nahmias and tenOever spent the last three months studying what SARS-CoC-2 is doing to human lung cells. What they found is that the novel coronavirus prevents the routine burning of carbohydrates, which results in large amounts of fat accumulating inside lung cells – a condition the virus needs to reproduce.

Lung cells infected with coronavirus (Credit: Yaakov Nahmias)Lung cells infected with coronavirus (Credit: Yaakov Nahmias)

“By understanding how the SARS-CoV-2 controls our metabolism, we can wrestle back control from the virus and deprive it from the very resources it needs to survive,” Nahmias said, noting that it also may help explain why patients with high blood sugar and cholesterol levels are often at a particularly high risk to develop COVID-19.

The team then reviewed a panel of eight already approved drugs that could possibly interfere with the virus’s ability to reproduce. Tricor caused the cells to start burning fat, Nahmias said. The result was that the virus almost completely disappeared within only five days of treatment.

The experiment was done in lab studies both in Israel and New York and was replicated several times with different lung samples. Nahmias said there is a strong indication that the experiment is highly repeatable in other labs.

The team is advancing to animal studies in New York and hoping to fast-track clinical studies in both Israel and the US within the next couple of weeks, since the drug is already proven safe.

The study is being published in this week’s Cell Press’s Sneak Peak. The work is being funded by the European Research Council, Nikoh Foundation and the Sam and Rina Frankel Foundation.

END
IRAN
Probably Israel is responsible for 7 fires at 7 ships at port in Iran
(zerohedge_

Seven Ships On Fire At Southern Iran Port In Another ‘Mystery’ Disaster

Over the past three weeks there’s been a spate of ‘mystery’ explosions rocking key facilities and military sites in Iran, including a blast two weeks ago that destroyed a building at Natanz nuclear facility.

And now a series of ships at the southern Iranian port of Bushehr have reportedly caught fire under mysterious circumstances. Firefighters on Wednesday struggled to put out blazes on no less than seven ships at the port, as Reuters reports:

At least seven ships have caught fire at the port of Bushehr in southern Iran, the Tasnim news agency reported on Wednesday.

No casualties have been reported so far, the agency said.

This marks at least a half-dozen strange blasts and fires at missile sites, hospitals, and sensitive military locations across Iran, mostly concentrated near Tehran.

As we’ve noted recently, major media in the West – including The New York Times – have begun to speculate that the ‘random’ explosions are anything but: instead, there’s growing attention focused on the likelihood of Israeli or US intelligence sabotage.

 

Via Iranian State TV IRIB on July 15, 2020.

There’s also the possibility of domestic terror groups and well as Iranian opposition and revolutionary paramilitary groups causing havoc at Iranian sites.

One prominent group which has conducted assassinations of Iranian officials in the past while seeking to bring down the regime is People’s Mujahedin Organization of Iran, or the Mujahedin-e Khalq.

It should be noted that the Bushehr region is home to a vital Iranian nuclear power plant.

Importantly, they enjoy the support of prominent American politicians and officials, and reportedly have ties to Israeli intelligence.

However, Iran has lately sought to downplay a number of the recent blasts and fires. But Iranian officials have also said they are investigating whether they could be under cyber attack from either Israel or the United States. They’ve vowed to respond if so.

END

6.Global Issues

Bill Blain…on all of the banks..Beware!

Blain: Beware, Bank Trading Gains “May Prove To Be Short-Lived Windfalls”

Authored by Bill Blain via MorningPorridge.com,

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

I wonder what can possibly be wrong with the world when someone paid £325,000 for a beach hut on Mudeford Spit – which is half-way between Southampton and Bournemouth. Its sans-conveniences, and you can’t stay in it. It’s a garden shed with a nice view.

Back in the real world….

One of my readers sent me a kind but rather brutal comment y’day – warning me I have become too optimistic; “seeing the world too much through the lens of the market.” He told me to get back on track and resume my questioning of every assumption the market makes, and focus on the detail to paint the big picture. He’s probably right – I’ve been relying a little too much on gut feel in recent weeks, and perhaps not enough on the grim reality unfolding around us.

As the facts change, I will change my view accordingy.

We’ve got the Fed’s Lael Brainard warning “downside risks predominate”, while the UK singularly failed to post a meaningful recovery in May – the expected 5.5% snapback came in as a deeply shocking 1.8% inchback… taking the economy back to where it was in 2004!

Despite the fears, for the moment I remain convinced the global economy is not heading for Armageddon, or the much anticipated “reset”. As the UK shows, the virus effects on economy are going to be long-lasting and deep, but let’s be pragmatic – we will eventually see recovery. It will be a messy and gory path, but it’s going to happen. It’s the collateral damage that’s going to matter – unemployment, banking weakness, global trade tensions, politics and geopolitics, plus whatever else rises out the coming storm.

I’m going to ignore the economic surveys – which say less than 14% of market participants believe in V-shaped recovery. Let’s try and look for clues as to what’s likely to happen – and draw our own conclusions.

Banks

Wherever there are banks – there is pain. 

There is much to be learnt from bank results and comments in recent days. Yesterday the three US banks, Citi, JPM and Wells put $28 bln in the provisions pot to cover looming losses as the Covid-Recession bites through the second half of the year. The US banks aren’t particularly bothered – what Citi and JPM lost on the swings on loan provisions, they made up on the roundabouts of bond trading – more on that below.

European banks are going into the recession after seeing their capital levels already impacted by the immediate virus effects in H1.S&P recently warned lower capital levels will threaten their ability to lend, while “most also saw their liquidity capacity to meet financial obligations weakened.” Even though the ECB and BOE relaxed regulatory capital rules – like the countercyclical buffer – in order to boost lending, but it still raises the stigma of banks looking capital stressed. On the other hand, banks were able to raise nearly €9 bln of additional tier 1 capital (AT1) through Q2.

As the Americans show… Q2 lending losses weren’t that bad, but they expect things to get much worse in H2. As JPM’s boss Jamie Dimon said: “This is not a normal recession. The recessionary part of this you’re going to see down the road.” More pain to come.

Just how bad will it get? It’s how much the European banks are still to set aside that will really interest me. Lots of them have been issuing reassuring statements about how well they’ve pre-provisioned, are adequately capitalised and have access to liquidity. Time will tell. I think the outlook looks bleak. S &P said: “Most banks saw a fall in capital in the first quarter as they took loan loss provisions in anticipation of coronavirus-related impairments. For banks already burdened with low capital levels, such provision had a significant effect.”

For instance, Commerzbank took a thumping in Q2 as it hiked provisions because of the virus. The ailing German bank then saw its Chairman and CEO ousted in a Cerberus coup over its lack of direction, and new CEO Bettina Orlop has warned: “the bulk of the problems will materialise in second half.” Crashing major chords sounding in the distance?

Or how about Santander? It was already looking skinny in terms of its capital – 11.58% in March. It’s been lending to support Spain’s Covid recovery programme, but mounting losses could further dent its capital reserves. Bloomberg recently carried a story hinting at increased provisions on it lending will have to be announced.

The Italian banks are at the top of most people’s danger lists. Tourism and hospitality are the sectors hardest hit by the virus – and are the largest exposures of the banks. The big banks set aside over €1.5 bln in Q1, and wrote down a further €2.5 bln. A raft of tier 2 banks could be wiped on mass defaults. I went looking for quotes from Italian bankers on hiking their loan loss provisions into H2, but as they already have massive NPL problems.. no one is saying much.

We could go round every European bank to try to estimate just how deep the coming recession will bite. It will, but it’s unlikely to break most banks. That’s why they have high capital levels! They have capital to absorb the pain, and the ECB is there to do whatever it takes, but it is also a political issue.

The amount of money the Spanish and Italians are throwing at the banks through SME guarantee schemes is huge. These are designed to keep the economy functional, keep business intact, and support the banks. They skirt ECB/EU rules in terms of potential government support and liabilities- and that’s why the Frugal 5 northern nations are unwilling to write cheques to allow the mutualisation of European debt via an EU Recovery Fund – to bail out Italian and Spanish banks. 

Meanwhile…

Even as JPM was announcing sadly loss provisions of $10.47 bln to cover loan loss, it still made a profit of over $4.6 bln!! Its trading revenues surged 80% to $9.7 bln! Over $7.3 bln of that came from the fixed income bond trading desks! (Citigroup also posted a profit and a massive gain in trading.)

These trading wins may prove to be short-lived windfalls. 

The last quarter was the biggest bond issuance orgy in bond market history. It was easy money. Investors were buying because they see rates going lower and negative. Moreover, the know the FED is there to backstop by purchasing corporate debt. The Wall Street sausage factory was pumping out new issues with healthy fees making the banks rick on the back of the perceived Fed bond put. If they are going to be paying their bond traders massive bonuses, should not Jerome Powell be in the bonus pool as well?

If the public understood just how much Wall Street is taking out….. better stay shush about that one then…. But check out this morning’s quote…. 

end

Michael Every…on yesterday and today’s events

(Michael Every)

 

Rabobank: “We Now Have A US Dollar Weapon Countdown Underway”

Submitted by Michael Every of Rabobank

Yesterday US President Trump officially removed Hong Kong’s US special status, with few extra details that we didn’t already know other than that HK passports are no longer any more welcome than Chinese ones in the US, and that Fulbright scholarships are ended. Markets have kept shrugging that news off, as have HK bankers: “Mo wentai” has been the mantra (“No Problem”). They weren’t rattled by the imposition of the new national security law; they weren’t rattled yesterday by Beijing stating pro-democratic/localist forces in Hong Kong could be breaking that law in trying to win a majority in September’s election; yet, according to Bloomberg, now that Beijing has just imposed its own taxation on its overseas citizens, Bankers Shocked by 45% China Tax Rate Mull Leaving Hong Kong”. This rather makes the point about how it’s hits to people’s pockets that really moves the Cold War dial nowadays, not grandiloquent statements like “Ich bin ein Berliner”.

On that front, Trump also signed the Hong Kong Autonomy Act. Simply, this law gives Treasury up to 90 days to compile a list of those who are responsible for undermining HK autonomy; then up to 60 days to verify; and then sanctions must be imposed on them – something the US is already doing over Xinjiang. Then, a year after that date, any non-US banks with “significant transactions” with those individuals or institutions must see five of 10 possible sanctions imposed, which includes banning executives from entering the US, for example; and a further year later this *must* be expanded to all 10 – including inability to access the USD. In short, as has been pointed out here several times of late, we now have a US Dollar Weapon countdown underway, just as we do with Hard Brexit. It might be some way off at best, but it’s clear where it ends up.

Talking of where things end up, if pro-democracy Hong Kongers leave for the UK and the US, and mainland talent goes back to cheaper China, who is going to be left to “run the shop? Meanwhile, the New York Times has decided it is going to move part of its operations from Hong Kong to Seoul.

That’s the second New York Times story today of interest – and I mean stories about the New York Times, not stories in it. The other is that Bari Weiss, their ‘opinion’ editor, has resigned with a devastating letter that includes allegations of feeble management and specific broadsides such as:

“…a new consensus has emerged in the press, but perhaps especially at this paper: that truth isn’t a process of collective discovery, but an orthodoxy already known to an enlightened few whose job is to inform everyone else,” which sounds like many conversations I have had with neoclassical economists about free trade over the years;

My own forays into Wrongthink have made me the subject of constant bullying by colleagues who disagree with my views”;

I was always taught that journalists were charged with writing the first rough draft of history. Now, history itself is one more ephemeral thing molded to fit the needs of a predetermined narrative.”; and

The paper of record is, more and more, the record of those living in a distant galaxy, one whose concerns are profoundly removed from the lives of most people.”

Which sounds a bit like central bankers too, and indeed markets in general. Although to be fair, at least the former are now a bit more humble about what they do and don’t know. As Brainard of the Fed noted overnight “A thick fog of uncertainty still surrounds us, and downside risks predominate.” No dialectical materialism there: just a recognition of Marx’s “All that is solid melts into air.”

Yet back to Bari: is this just a NYT issue, or more widespread? Weiss says the latter. If it is the latter, consider the implications for markets and information gathering. Where are we to get our news if not from the press – Twitter?! And consider the impact on US electoral polarisation as we head into this potentially earth-moving November election (as noted in our US strategist Philip Marey’s report yesterday).

Talking of news one can and can’t trust, we are already warming up for the release of China’s Q2 GDP data tomorrow, which are expected to show a return to growth of 2.4% y/y. As usual, there won’t be any real breakdown allowing detailed analysis, but if one takes the presumed number at face value then it is almost certainly only due to extra supply and not due to any extra demand: and supply going where, exactly? Exactly. Indeed, just as we will soon hear ‘growth is back!’ we also see Bloomberg report “Rumor-Stoked Bank Runs Break Out in China Like Never Before

Meanwhile, as Europe lumbers towards a decision on what fiscal recovery package it will agree on this month, we hear that German Chancellor Merkel might be prepared to compromise – in other words to make the proposed spending totals even lower than the figure critics (from one side) already allege is not enough. Dutch PM apparently continues to remain doubtful that the whole thing will happen at all.

For once we can end on a happy note, however, as Moderna states that its Covid-19 vaccine seems to be working well. Good news – although other reports are that natural immunity may only be a few months long anyway.

7. OIL ISSUES

As promised: oil prices fall as OPEC set to increase output

(zerohedge)

Oil Prices Stumble On OPEC+ Output Increase Headlines

The crude market was slow to react to OPEC+ headlines this morning, but is sliding now (ahead of this morning’s inventory/production data) after Saudi Arabia’s Energy Minister reportedly said OPEC and its allies will restore some oil supplies as planned next month, but the impact will be “barely felt” as demand recovers from the coronavirus crisis.

Bloomberg reports that the 23-nation coalition led by Riyadh and Moscow will taper the curbs to 7.7 million barrels a day in August from 9.6 million currently, Saudi Energy Minister Prince Abdulaziz bin Salman and his Russian counterpart Alexander Novak said on Wednesday.

And that has sent prices notably lower, erasing the API-driven spike last night…

 

That supply increase will be offset somewhat as coalition members that didn’t fulfill their commitments to cut output in May and June – such as Iraq and Nigeria – make up for it with extra reductions in August and September, the Prince said at the start of an OPEC+ video conference.

This is terrible news for US shale.

end

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1441 UP .0031 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//PANDEMIC/CORONAVIRUS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL GREEN

 

 

USA/JAPAN YEN 106.90 DOWN 0.343 (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 1.2629   UP   0.0060  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3571 DOWN .0028 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  WEDNESDAY morning in Europe, the Euro FELL BY 8 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED DOWN 53.31 POINTS OR 1.56% 

 

//Hang Sang CLOSED UP 3.69 POINTS OR 0.01%

/AUSTRALIA CLOSED UP 1,90%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 3.69 POINTS OR 0.01%

 

 

/SHANGHAI CLOSED DOWN 53,31 POINTS OR 1.56%

 

Australia BOURSE CLOSED UP 1.90% 

 

 

Nikkei (Japan) CLOSED 358.49   POINTS OR 1.59%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1805.80

silver:$19.31-

Early WEDNESDAY morning USA 10 year bond yield: 0.65% !!! UP 2 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.34 UP 3  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 95.96 DOWN 38 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.43% UP 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +02%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.42%//UP 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,21 DOWN 0 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 79 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 1.65% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1405  DOWN     .0005 or 5 basis points

USA/Japan: 106.95 DOWN .302 OR YEN UP 30  basis points/

Great Britain/USA 1.25860 UP .0017 POUND UP 17  BASIS POINTS)

Canadian dollar UP 81 basis points to 1.3517

 

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The USA/Yuan,CNY: AT 6..9889    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9867  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8545 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +02%

 

Your closing 10 yr US bond yield DOWN 1 IN basis points from TUESDAY at 0.62 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.32 UP 1 in basis points on the day

Your closing USA dollar index, 96.06 DOWN 20  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 112.90  1.83%

German Dax :  CLOSED UP 233.62 POINTS OR 1.84%

 

Paris Cac CLOSED UP 101.52 POINTS 2.03%

Spain IBEX CLOSED UP 135.60 POINTS or 1.84%

Italian MIB: CLOSED UP 401.63 POINTS OR 2.02%

 

 

 

 

 

WTI Oil price; 40.65 12:00  PM  EST

Brent Oil: 43.24 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    70.98  THE CROSS HIGHER BY 0.00 RUBLES/DOLLAR (RUBLE LOWER BY 00 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 :  41.01//

 

 

BRENT :  43.64

USA 10 YR BOND YIELD: … 0.64.. plus one basis point…

 

 

 

USA 30 YR BOND YIELD: 1.34 down 2 basis points..

 

 

 

 

 

EURO/USA 1.1409 ( DOWN 1   BASIS POINT)

USA/JAPANESE YEN:106.92 DOWN .320 (YEN UP 32 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.05 DOWN 20 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2589 UP 20  POINTS

 

the Turkish lira close: 6.8564

 

 

the Russian rouble 70.96   UP 0.02 Roubles against the uSA dollar.( UP 2 BASIS POINTS)

Canadian dollar:  1.3513 UP 86 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.44%

 

The Dow closed UP 227.51 POINTS OR 0.85%

 

NASDAQ closed UP 61.92 POINTS OR 0.59%

 


VOLATILITY INDEX:  27.93 CLOSED DOWN 1.59

LIBOR 3 MONTH DURATION: 0.270%//libor dropping like a stone

 

USA trading today in Graph Form

S&P Stalls At Critical Resistance Again Despite Massive Short-Squeeze

The last two days have seen the biggest short-squeeze in 3 months – a massive 8%-plus swing from yesterday’s lows…

Source: Bloomberg

Does make u wonder…

As vaccine headlines from Moderna that in reality offered nothing new sparked a panic-bid for Small Cap stocks that was then accelerated by more vaccine headline from Europe…

0610ET *POSITIVE NEWS COMING ON OXFORD COVID-19 VACCINE: ITV’S PESTON

The headlines sent serial insider-seller MRNA shares screaming higher…

Fed by over 50,000 fresh young Robinhood’rs diving in today…

But the S&P 500 was unable to break a crucial support level around 3230.78 (2019 close) after testing it four times intraday…

…its 2019 close and the interim lows in January…

Despite Nasdaq’s massive outperformance YTD, the last few days continue to see the big-tech index underperforming the other majors…

…and that has sent expectations for future volatility soaring to their highest relative to the S&P since 2004…

 

Source: Bloomberg

The Virus Fear trade collapsed, erasing the second wave derisking…

Source: Bloomberg

Banks ended the day higher after Goldman crushed it… but note that Goldman’s early gains were almost entirely erased and WFC and C were bid as GS slid…

Source: Bloomberg

Treasury yields were mixed today (long-end very modestly higher in yield vs short-end flat to marginally lower) but all yields remain lower on the week, despite the equity exuberance (with the belly outperforming)…

Source: Bloomberg

10Y roundtripped just like on Monday, bid during the US session…

Source: Bloomberg

The Dollar fell for the second day in a row, despite a rebound in the US session…

Source: Bloomberg

 

 

Source: Bloomberg

Copper was lower today (for a change) as oil prices jumped after DOE confirmed API’s big crude draw…

Source: Bloomberg

WTI ramped back above $41, shrugging of OPEC+ output increase headlines…

Silver also had a big day, with futures pushing up towards $20…

Gold was bid today, marginally, with a post European close rally once again, erasing overnight losses…

Source: Bloomberg

Which combined to push the Gold/Silver ratio down to its lowest since February…

Source: Bloomberg

Finally, we note that companies in the MSCI USA Index now represent a record 65.3% of the MSCI World Index

Source: Bloomberg

And given that dominance, it seems odd that US equity markets are now trading at the same level of risk as Emerging Markets

As @Not_Jim_Cramer notes, US markets achieve banana republic volatility. Either this mean reverts, or there will be one helluva valuation adjustment.

 END

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Looks like inflation is coming!

(zerohedge)

US Import Prices Jump Most In 8 Years In June

Import and Export prices were expected to further slow the deflationary impulse caused by global pandemic lockdowns in June and on a MoM basis both Imports (+1.4% vs +1.0% exp) and Exports (+1.4% vs +0.8% exp) beat expectations. This is the biggest jump in Import prices MoM since March 2012…

 

However, the deflationary impulse remains strong YoY (even after May downward revisions)…

 

Source: Bloomberg

Ex-Petroleum, import prices rose 0.3% MoM (better than the +0.1% expected).

The big question is, will China’s massive credit impulse to “save” its economy lead to a huge spike in trade flow inflation?

 

Source: Bloomberg

Dallas Fed’s Kaplan was undecided yesterday claiming that massive US over-capacity will control inflation (but also said he expects food prices to rise on supply shortfalls).

Trade accordingly.

end

US Manufacturing Production Rebounds In June By Most In 75 Years

Following May’s impressive MoM rebound from the March/April collapse, analysts expected June to see more follow-through for US industrial production as the economy re-opened.

Industrial Production rose 5.4% MoM (smashing the 4.3% MoM expectation). This is the biggest monthly gain since Dec 1959… but YoY is still down 10.8% YoY…

 

Source: Bloomberg

Manufacturing output increased 7.2 percent in June, but it was still 11.1 percent below its pre-pandemic February level; factory output fell 47.0 percent at an annual rate in the second quarter. The index for durable manufacturing rose 11.6 percent in June. Despite substantial gains in the past two months, the output of motor vehicles and parts remained nearly 25 percent below its February level. The index for nondurables rose 3.4 percent, with sizable gains for apparel and leather and for plastics and rubber products. The output of other manufacturing (publishing and logging) increased 2.2 percent.

This was the biggest monthly rise for manufacturing since 1946…

Source: Bloomberg

However, putting that “rebound” in context changes things a little…

Source: Bloomberg

iii) Important USA Economic Stories

“Lockdown 2.0” Will Ensure The US Remains In An Economic Depression Through The 2020 Election

Authored by Michael Snyder via TheMostImportantNews.com,

Another wave of lockdowns has begun, and that is really bad news for the U.S. economy.  The first wave of lockdowns resulted in the permanent closing of more than 100,000 U.S. businesses, colossal lines at food banks around the nation, and the loss of tens of millions of jobs.  Needless to say, this new wave of lockdowns will make things even worse, and some are speculating that this is precisely what Democrats want.  If the U.S. economy continues to fall apart as we approach the election in November, the thinking is that this will make President Trump look bad and will make it more likely that people will cast votes for Democrats.  But there is also the possibility that this could backfire in a huge way for the left. If millions of Americans start to identify the Democrats as “the party of the lockdowns”, that could actually greatly help President Trump in November.

At this point, the battle lines are becoming quite clear.  President Trump and other top Republicans are strongly against more lockdowns, but Democratic politicians in many areas of the country are starting to institute them anyway.  In fact, we just learned that all schools in Los Angeles, San Diego, Atlanta and Nashville will be closed at the beginning of the new school year…

Resisting pressure from President Donald Trump, three of the nation’s largest school districts said Monday that they will begin the new school year with all students learning from home.

Schools in Los Angeles, San Diego and Atlanta will begin entirely online, officials said Monday. Schools in Nashville plan to do the same, at least through Labor Day.

Other major cities are expected to follow suit.  Of course considering the quality of the education in most of our public schools, most of those kids won’t exactly be missing too much.

Ultimately, closing the schools won’t have too much of an economic impact, but shutting down most of the businesses in our largest state certainly will.  On Monday, California Governor Gavin Newsom announced a comprehensive lockdown for 30 California counties which account for “about 80 percent of California’s population”

Newsom, a Democrat, announced during a press briefing that all bars across the state must close up shop and that restaurants, wineries, tasting rooms, family entertainment centers, zoos, museums and card rooms must suspend indoor activities.

The governor also announced that all gyms, places of worship, malls, personal care services, barbershops, salons, and non-critical offices in counties on the state’s “monitoring list” had to shut down under the new order. The order affects more than 30 counties which are home to about 80 percent of California’s population.

Newsom is a political opportunist, and I guarantee you that he wouldn’t be doing this unless he truly believed that it would help Democrats in November.

But I think that Newsom and other top Democrats have greatly underestimated how much the American people detest COVID-19 restrictions at this point.  We have been witnessing a huge backlash all over the country, and even though California is far more liberal than most other states, a backlash has been brewing there as well.

If the Democrats are not very careful, they are going to lose an election that they could have very easily won.

First of all, they should have never nominated Joe Biden.  It is obvious to everyone that he is physically and mentally declining at a very rapid pace, and videos of him “acting creepy” will be viewed millions upon millions of times over the coming months.  Democrats have known about Biden’s creepy behavior for many years, but they decided to give the nomination to him anyway.

Secondly, most top Democrats have refused to strongly denounce the rioting, looting and violence that have happened around the nation, and this is going to push a whole lot of people toward the Republicans.

Thirdly, the backlash against these new lockdowns is going to be directed primarily toward Democrats.  If Democratic politicians push too far, this will be an issue that deeply hurts them in November.

But despite all of these mistakes, it is possible that the Democrats could still come out on top, because Trump and the Republicans are making lots of political mistakes as well.

If Trump wants to make a comeback in the polls, he really needs to fully embrace an anti-lockdown message, because that would strongly resonate with tens of millions of voters.

The first wave of lockdowns certainly didn’t stop the spread of the virus, and more lockdowns will not stop it from spreading either.  And now three separate scientific studies have shown that COVID-19 antibodies disappear very, very rapidly, and that means that a vaccine is not going to end this crisis and we will never reach a point of “herd immunity”.  So we are going to have to find a way to function effectively as this virus circulates around the globe year after year, because it isn’t going to go away.

We simply cannot shut down the economy every time the number of cases starts to surge again.  The damage that we have already done to the U.S. economy has been incalculable, and now these new lockdowns will do even more damage.

But the WHO continues to insist that more restrictions are needed

“Let me be blunt, too many countries are headed in the wrong direction, the virus remains public enemy number one,” WHO Director General Tedros Adhanom Ghebreyesus told a virtual briefing from the U.N. agency’s headquarters in Geneva.

“If basics are not followed, the only way this pandemic is going to go – it is going to get worse and worse and worse.”

What would the WHO have us do?

Would they like us to all lock ourselves in our homes indefinitely?

The WHO keeps touting a future vaccine, but if COVID-19 antibodies disappear after just a few months, there is no way that a vaccine is going to end this pandemic.

And many Americans will never, ever take any COVID-19 vaccine under any circumstances.

 

As I discussed in an article that I posted earlier, it looks like we are just going to have to accept the fact that COVID-19 is going to be around year after year.

It is easy for the “experts” to tell us that everyone should just stay home, but the price tag for the first wave of lockdowns was astronomical.  Thanks to all of the emergency measures that Congress passed, the U.S. government ran a budget deficit of 864 billion dollars in the month of June…

The US budget deficit surged to a record-breaking $864 billion in June, the Treasury Department said on Monday. The increase is the product of the federal government’s efforts to combat the coronavirus pandemic and its economic fallout.

The government collected about $240 billion in tax revenue in June, the Treasury said, and federal spending overall reached $1.1 trillion.

To put that in perspective, it took from the founding of our nation until 1980 for the U.S. government to accumulate a total of 864 billion dollars of debt.

And now we have added that much to the national debt in just one month.

We simply cannot keep doing this.

No matter what we do, COVID-19 is going to keep spreading, and we are going to have to learn how to deal with this virus for a very long time to come.

More lockdowns are definitely not the answer, but unfortunately many of our politicians are convinced otherwise.

So U.S. economic conditions will continue to deteriorate, and the economic depression that began earlier this year will continue through the end of 2020 and beyond.

end

Mutiny on the Bounty…

(zerohedge)

 

Navarro Slams ‘Flip-Flop-Fauci’ In Scathing Op-Ed; White House Issues Statement

For months, President Trump’s trade adviser Peter Navarro has been a vocal critic of Anthony Fauci, the nation’s top infectious-disease official – including a heated White House showdown over the use of hydroxychloroquine.

On Tuesday, Navarro kicked it up a notch – penning a scathing Op-Ed in USA Today titled: “Anthony Fauci has been wrong about everything I have interacted with him on.”

The first few paragraphs are devastating:

Dr. Anthony Fauci has a good bedside manner with the public, but he has been wrong about everything I have interacted with him on.

In late January, when I was making the case on behalf of the president to take down the flights from China, Fauci fought against the president’s courageous decision — which might well have saved hundreds of thousands of American lives.

When I warned in late January in a memo of a possibly deadly pandemic, the director of the National Institute of Allergy and Infectious Diseases was telling the news media not to worry.

When I was working feverishly on behalf of the president in February to help engineer the fastest industrial mobilization of the health care sector in our history, Fauci was still telling the public the China virus was low risk.

When we were building new mask capacity in record time, Fauci was flip-flopping on the use of masks.

And when Fauci was telling the White House Coronavirus Task Force that there was only anecdotal evidence in support of hydroxychloroquine to fight the virus, I confronted him with scientific studies providing evidence of safety and efficacy. A recent Detroit hospital study showed a 50% reduction in the mortality rate when the medicine is used in early treatment. -Peter Navarro

On Wednesday, the White House sought to distance itself from Navarro’s Op-Ed.

“The Peter Navarro op-ed didn’t go through normal White House clearance processes and is the opinion of Peter alone,” tweeted White House spokeswoman Alyssa Farah on Wednesday, adding “@realDonaldTrump values the expertise of the medical professionals advising his Administration.”

But while the White House took a diplomatic approach to Navarro’s Op-Ed, the Washington Post points out that President Trump disparaged Fauci during a Fox News interview last Thursday with Sean Hannity – saying that he “is a nice man, but he’s made a lot of mistakes.”

The Post also reports that Fauci and Trump haven’t spoken in at least two weeks.

White House aides previously circulated talking points questioning statements Fauci has made about the novel coronavirus, which Navarro repeated in the article.

Among the criticisms listed by the White House officials and Navarro is that Fauci didn’t urge caution when the cases were first reported in China in January, that he gave varied advice on face masks and that he has said that he didn’t believe there was concrete scientific evidence to support that hydroxychloroquine is an effective treatment against the coronavirus. –Washington Post

No wonder nobody knows what to believe.

END

There Are Already Nationwide Shortages Of Aluminum Cans, Soda, Flour, Canned Soup, Pasta, & Rice

Authored by Michael Snyder via TheMostImportantNews.com,

I had no idea that things had gotten so bad.  Earlier today, my wife spoke with the manager of a local grocery store because she wanted to place a large order for some canned goods.  What she was told surprised her, and it certainly surprised me.  The manager of this local grocery store told her that there are numerous nationwide shortages going on at this moment, and he indicated that there are lots of products that he simply cannot get right now.  When my wife told me what he had said, I decided that I had to look into this, because I hadn’t heard that canned goods were in short supply.  Well, it turns out that the manager that my wife spoke with was right on target, and that should deeply alarm all of us.

One thing that my wife was specifically told was that there is a nationwide shortage of aluminum cans, and this is having a tremendous impact on the soda industry.

In fact, things have gotten so bad that Coca-Cola has been forced to publicly address the situation

Coke Life, Mello Yellow, Sprite Zero, Fresca and more. These are among some of the products you may have had trouble locating on store shelves in recent weeks.

And you’re not alone.

When asked about the situation, Coca-Cola told one Twitter follower: “We are seeing greater demand for products consumed at home & taking measures to adapt, working to mitigate the challenge during this unprecedented time. We appreciate your loyalty to our beverages; please know that we’re working hard to keep the products you love on the shelves.”

Apparently the big reason why there is a shortage is because people are consuming far more beverages at home than usual, and this has created a huge demand for canned drinks.

Right now, Coca-Cola and Pepsi are primarily focusing on using their limited supplies of aluminum cans to produce their core products, and this has made less popular flavors very difficult to find

Both Coca Cola and Pepsi have reportedly been forced to focus on their most popular flavors in order to keep them in stock, making the less popular flavors harder to find for the time being.

Unfortunately, we aren’t just facing a shortage of aluminum cans.

According to the Wall Street Journal, some of the biggest food manufacturers in America are admitting that there are nationwide shortages of “flour, canned soup, pasta and rice”

Grocers are having trouble staying stocked with goods from flour to soups as climbing coronavirus case numbers and continued lockdowns pressure production and bolster customer demand.

Manufacturers including General Mills Inc., Campbell Soup Co. and Conagra Brands Inc. say they are pumping out food as fast as they can, but can’t replenish inventories. Popular items such as flour, canned soup, pasta and rice remain in short supply.

Of course those are precisely some of the key items that preppers tend to stock up on.

I think that millions of Americans can sense what is coming, and they are gathering supplies while they still can.

Meanwhile, the nationwide coin shortage continues to get even worse.

This week, I was stunned to learn that Kroger has announced that it will “no longer return coin change to customers”

If you pay with cash at one of Kroger’s cashier checkouts, you won’t be getting coin change for a while, and it’s indirectly due to the coronavirus.

Kroger spokesperson Erin Rofles confirmed Friday the grocer will no longer return coin change to customers. Instead, the remainders from cash transactions will be applied to customers’ loyalty cards and automatically used on their next purchase.

That is serious.

This coin shortage is being caused by the COVID-19 pandemic, and it is likely to last for as long as this pandemic persists.

If we have already gotten to the point where the federal government is unable to produce enough coins for all of our businesses, how long will it be before we start witnessing a shortage of dollar bills?

At this point, even Walmart is acknowledging the stress that the nationwide coin shortage is putting on their operations

Walmart has also been impacted been the shortage. In a statement to WMAZ, Walmart spokesperson Avani Dudhia, “Like most retailers, we’re experiencing the affects of the nation-wide coin shortage. We’re asking customers to pay with card or use correct change when possible if they need to pay with cash.”

The COVID-19 pandemic has also deeply affected the meat processing industry.  Numerous meat processing facilities all over the nation have been shut down in recent weeks, and this has limited supplies and pushed up prices.

Once again, meat prices went up.

Overall, beef and veal prices rose 4.8%. Pork prices grew 3.3% and bacon got 8.1% more expensive. Hot dog prices grew 4.9%.

I have repeatedly warned my readers that meat prices were going to go up substantially, and so hopefully a lot of you out there stocked up before the price increases hit.

What we have been witnessing over the first half of 2020 should be a major league wake up call for all of us, because it has become clear that our system is far more vulnerable to shocks than most people ever imagined.

If COVID-19 can cause this much chaos, what is going to happen when a crisis that is far more severe comes along?

Even though I write about this stuff on a constant basis, I was stunned when my wife told me that we couldn’t get the canned goods that we wanted because a nationwide shortage was happening.

It has become very difficult to keep up with how fast things are changing, and I expect events to accelerate even more as we head toward the end of 2020 and beyond.

If you still need to get stocked up for all the chaos that is coming, I would do so quickly, because supplies are only going to get tighter the worse things get.

END

28 Million More Americans Could Wind Up Homeless Due To The COVID-19 Pandemic

The threat of looming evictions could result in 28 million people being homeless in the U.S. as a result of the coronavirus pandemic, one expert contends.

Emily Benfer, who has spent her career representing homeless families, was recently interviewed by CNBC where she went into detail about what could be a stark reality for homelessness in the country as a result of the coronavirus. She is currently the chair of the American Bar Association’s Task Force Committee on Eviction and co-creator of the COVID-19 Housing Policy Scorecard with the Eviction Lab at Princeton University.

“We have never seen this extent of eviction in such a truncated amount of time in our history,” Benfer said when asked about how the current homeless crisis compares to the 2008 housing crisis.

She continued: “We can expect this to increase dramatically in the coming weeks and months, especially as the limited support and intervention measures that are in place start to expire. About 10 million people, over a period of years, were displaced from their homes following the foreclosure crisis in 2008. We’re looking at 20 million to 28 million people in this moment, between now and September, facing eviction.”

She also noted that evictions could have a negative effect on people’s health, stating that evictions cause more respiratory distress and increased mortality. Since the main way to combat the virus has been to shelter-in-place, evictions could lead to a quicker spread of the virus, Benfer says.

With regard to individual state moratoriums on evictions, Benfer says that as soon as they run out, Sheriff’s are just waiting to execute evictions: “The moment the moratoriums lift, all of those families will be immediately put out. And right now, 29 states lack any state level moratorium against evictions. “

She continued: “Some of the moratoriums are limited to different segments of the population, and in their duration. They were also not coupled with financial assistance to ensure that renters don’t accrue this backed-up debt and are stabilized enough to stay in their unit.”

As a result, she is calling for an immediate nationwide moratorium on evictions, coupled with more financial assistance: “As an immediate measure, we need a nationwide uniform moratorium on eviction, and it has to be coupled with financial assistance to ensure that the renter can stay housed without shifting the debt burden onto the property owner.”

Benfer also talked about the problems with holding eviction hearings via video streaming, instead of in a courtroom. “When you consider that people are now choosing between rent and food for their families, they’re also unlikely to be able to pay for minutes on their phone, or Wi-Fi, to log into a remote hearing,” she said.

“So appearance itself may be very challenging. And if they fail to appear, if they weren’t able to dial in or if they don’t have the right link to the Zoom, that’s considered a failure to appear, which results in a default judgment for the property owner.”

Recall, we just wrote days ago about how hard it was to get evicted in individual states. We also noted that 30% of owners didn’t make their housing payment in June.

That figure stood at 24% in April and 31% in May, before falling slightly to 30% in June. One third of the 30% in June made a partial payment, while two thirds made no payment at all.

“Missed payment rates are highest for renters (32 percent), households earning less than $25,000 per year (40 percent), adults under the age of 30 (40 percent), and those living in high-density urban areas (35 percent). While the missed payment rate for mortgaged homeowners is just 3 percentage points lower than renters,” the survey showed.

Despite the trend of missing payments at the beginning of the month, households have been able to play catch-up later in the month and “narrow the gap” by making payments in the middle of the month. This was the case in May, where the missed payment rate “dropped from 31 percent at the beginning of the month to 11 percent at the end.”

iv) Swamp commentaries)

Trump’s legal team goes to court again in a challenge for his tax returns.  He raises new objections

(zerohedge)

Trump Legal Team To Challenge Subpoena For Tax Returns By Raising New Objections

President Trump’s legal team is cooking up new objections to a subpoena for his tax returns and other financial documents filed by New York District Attorney Cyrus Vance, despite the Supreme Court rejecting his claim last week that he’s immune to criminal investigation.

 

Trump attorney Jay Sekulow (L) and White House Counsel Pat Cipollone

On Wednesday, attorneys for the president filed a status report with a federal district court in New York, making it clear they intend to raise other objections – possibly including whether Vance’s subpoena is overly broad or relevant to a legitimate investigation, according to The Hill.

“The President should not be required, for example, to litigate the subpoena’s breadth or whether it was issued in bad faith without understanding the nature and scope of the investigation and why the District Attorney needs all of the documents he has demanded,” reads the Wednesday filing.

The Supreme Court ruled 7-2 this month that the president does not have absolute immunity to investigative subpoenas like the one issued by Vance.

“In our judicial system, ‘the public has a right to every man’s evidence,’” Chief Justice John Roberts wrote in the majority decision. “Since the earliest days of the Republic, ‘every man’ has included the President of the United States.”

Roberts also wrote that a “President may avail himself of the same protections available to every other citizen, including the right to challenge the subpoena on any grounds permitted by state law, which usually include bad faith and undue burden or breadth.” –The Hill

Another possible objection Trump’s team could raise is that a specific subpoena is intended to influence his official actions, or that compliance with said order could interfere with his official duties as president, the Supreme Court ruled – grounds that aren’t available to regular citizens.

The next status conference in the case is scheduled for Thursday.

 

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

Tuesday

Pfizer, BioNTech’s coronavirus vaccines get FDA’s ‘fast track’ status

The candidates, BNT162b1 and BNT162b2, are the most advanced of at least four vaccines being assessed by the companies in ongoing trials in the United States and Germany.  Pfizer’s shares were up about 2% and U.S.-listed shares of BioNTech were up about 6% before the bell…

   The companies said they expect to begin a large trial with up to 30,000 participants as soon as later this month, if they receive regulatory approval…

https://www.cnbc.com/2020/07/13/pfizer-biontechs-coronavirus-vaccines-get-fdas-fast-track-status.html

Forty Thousand Day Traders Pour into Tesla

Robinhood users can’t get enough of Tesla Inc. At one point today, there was a four hour span in which Tesla stock was added to nearly 40,000 new accounts, according to website Robintrack.net…

https://www.bloomberg.com/news/articles/2020-07-13/ten-thousand-day-traders-an-hour-pour-into-tesla

California closes indoor restaurants, movie theaters and all bars statewide as coronavirus cases rise

PUBLISHED MON, JUL 13 20203:22 PM EDT

https://www.cnbc.com/2020/07/13/california-to-close-indoor-restaurants-movie-theaters-and-bars-statewide-as-coronavirus-cases-rise.html

@ETFProfessor: Nasdaq trading volume has shot through the roof in 2020.   https://t.co/O1XyUOfmOa

@MacroCharts: SPX Gamma Exposure hit the 3rd highest level of all time last week. The highest were mid-JAN 2020. Note the moving average approaching levels that led to two major peaks(2018 & 2020) Watching closely how this develops. I’ll revisit this important chart in the coming weeks – stay tuned. https://t.co/BP8XBsRUOt

Gamma is an option’s 2nd derivative, which is acceleration.  These are options that tend to be a few strikes ‘out of the money’.  These options have the potential to accelerate faster than options at the money or a strike or two ‘out of the money’.  A $1 dollar option can accelerate much faster than $5 dollar option.

China announces retaliatory sanctions on US officials over Xinjiang measures

Among the US officials named by Hua are Senators Rubio and Cruz, both former presidential candidates, US Representative Chris Smith, Ambassador at Large for International Religious Freedom Sam Brownback and the Congressional-Executive Commission on China…

https://www.cnn.com/2020/07/13/asia/china-us-xinjiang-sanctions-intl-hnk/index.html

Scientists from the Wuhan virus lab have ‘defected’ to the West, reveals senior Trump ally Steve Bannon – as FBI gathers evidence that coronavirus pandemic was caused by an accidental leak

https://www.dailymail.co.uk/news/article-8513631/Scientists-Wuhan-virus-lab-defected-West-reveals-Steve-Bannon.html

Joe Biden’s energy adviser secretly aided Kremlin nuclear agenda

Not only did the controversial Ukrainian energy firm get a deal with USAID while Hunter Biden was on the board, but Joe Biden’s energy advisor, Amos Hochstein, promoted the very program which worked to legitimize Burisma amid the allegations…

   Time and again, Biden’s advisor failed to mention that he had witnessed Putin’s energy strategy firsthand. Hochstein communicated Putin’s energy dominance strategy in the oil and gas sectors very effectively, but he never mentioned Russia’s attempts to corner the global uranium market. It was something he had assisted personally. While working as a U.S. lobbyist in the private sector, Hochstein had advised Rosatom’s subsidiary: Tenex…

https://justthenews.com/accountability/russia-and-ukraine-scandals/joe-bidens-ukraine-adviser-secretly-aided-kremlin

FBI uncovered Russian bribery plot before Obama administration approved controversial nuclear deal with Moscow – Before the Obama administration approved a controversial deal in 2010 giving Moscow control of a large swath of American uranium, the FBI had gathered substantial evidence that Russian nuclear industry officials were engaged in bribery, kickbacks, extortion and money laundering designed to grow Vladimir Putin’s atomic energy business inside the United States, according to government documents and interviews…

https://thehill.com/policy/national-security/355749-fbi-uncovered-russian-bribery-plot-before-obama-administration

@thehill: AOC on increased NYC crime: “Maybe this has to do with the fact that people aren’t paying their rent & are scared to pay their rent & so they go out & they need to feed their child & they don’t have money so… they feel like they either need to shoplift some bread or go hungry.” [recycled ‘60s sophistry]

NBA Won’t Sell Custom Jerseys That Say ‘FreeHongKong,’ Will Create Uniforms That Say ‘F**kPolice,’ According To Its Online Store System

https://dailycaller.com/2020/07/13/nba-store-shop-online-jersey-customize-free-hongkong-fckpolice-china-twitter/

@dhookstead: Here is audio of the NBA store telling me I can’t buy a FreeHongKong jersey, but I can buy a KillCops jersey.  Eventually, once they realized what was happening, they claimed they couldn’t sell me anything because of high call volume and system error.  https://twitter.com/dhookstead/status/1282769612191551488

@MarkDice: I just tried it the website.  [Kill Cops] Still available.  [Pic at link]

https://twitter.com/MarkDice/status/1282778154294104064

@seanmdav: These ‘Fortune 500’ Companies Donated to The Marxist, Anti-Capitalism Black Lives Matter Foundation – Uggs, Amazon, Gatorade, Microsoft, Warner Records, Intel, Bungie of Xbox and Microsoft Games, and Nabisco all specifically pledged money to the Black Lives Matter Global Network Foundation… https://t.co/dT915wPmPM

@CWBChicago: Bond court — 18-year-old who got “intensive probation” for attempted murder as a juvenile in 2019 is charged with shooting a man during a robbery attempt last week. He tried to keep shooting, but the gun malfunctioned. Victim survived. Chicago  Incredibly, the defendant expected to be released on bail. Tells you something… It’s 4pm on a Monday in Chicago. There have already been FOUR murders in the city today. At the police department’s current solve rate of about 25%, odds are three of the killers will never suffer consequences.

Proposed Ban on Sugary Soft Drinks Could Save Billions

Simple Low Cost Governmental Actions On Sugary Soft Drinks Can Slash Obesity and Its Huge Costs

A proposed ban on sugar-sweetened beverages for young children, along with a 40% reduction in sugar use for everyone, would be important first steps in reducing the nation’s epidemic of pediatric as well as adult obesity, and slashing the hundreds of billions which obesity annually costs Americans, says public interest law professor John Banzhaf… A study has reported that in the U.S. the “total cost of chronic diseases due to obesity and overweight was $1.72 trillion – equivalent to 9.3 percent of the U.S. gross domestic product [GDP],” although other estimates are somewhat less but still very high…

https://www.valuewalk.com/2020/07/proposed-ban-on-sugary-soft-drinks-could-save-billions/

Why would oppressive totalitarian government stop with just Covid-19 constraints on the populace?

@JordanSchachtel: The elephant in the room: a nation approaching 50% obesity rate. Shutting down fast food (which I’m not advocating for) would be far more effective than mask mania, which has approx zero evidence behind it

CDC: Heart disease is the leading cause of death for men, women, and people of most racial and ethnic groups in the United States. One person dies every 37 seconds in the United States from cardiovascular disease. About 647,000 Americans die from heart disease each year—that’s 1 in every 4 deaths…

https://www.cdc.gov/heartdisease/facts.htm

CDC: From 1999–2000 through 2017–2018, the prevalence of obesity increased from 30.5% to 42.4%, and the prevalence of severe obesity increased from 4.7% to 9.2%…

https://www.cdc.gov/obesity/data/adult.html

CDC: In 2017, there were 270,702 death certificates with diabetes listed as the underlying or contributing cause of death (crude rate, 83.1 per 100,000 persons)…

https://www.cdc.gov/diabetes/pdfs/data/statistics/national-diabetes-statistics-report.pdf

Wednesday

JPMorgan Beats As Trading Soars; Citigroup Mixed, Wells Fargo Misses As Dividend Cut

EPS of $1.38 on revenue of $33 billion. Net interest income fell 4% to $14 billion.  The provision for credit losses was $10.5 billion, up $9.3 billion from the prior year. Trading revenue surged 79% to $9.7 billion, with fixed income trading revenue up 99% to $7.3 billion and equity trading up 385% to$2.4 billion. Investment banking revenue jumped 91% to $3.4 billion. Community banking revenue fell 9% to $12.2 billion. Commercial banking revenue grew 5% to $2.4 billion. Wealth management revenue rose 1% to $3.6 billion… https://www.investors.com/news/bank-stocks-jpmorgan-citigroup-wells-fargo-q2-2020-earnings/

Dimon [JPM CEO]: Future Trading Revenues Unlikely to Match Q2 – BN

@zerohedge: JPMorgan reports record FICC revenue as the Fed backstops all debt capital marketsproviding an effective subsidy to JPM. But we are about to listen to Jamie Dimon lecture us JPM did not need the Fed again, like in 2009

    Bottom line, if it weren’t for trading desks to offset losses, US banks are suffering through an absolutely catastrophic phase and it is unclear when it will end. And the lower rates go, the worse it will get

Wells has $146BN in commercial real estate loans.

Wells Fargo Plunges after First Quarterly Loss Since 2008

    Lender cut its dividend to 10 cents a share from 51 cents

    Loan-loss provision [$9.5B] was $4 billion more than analysts expected

https://www.bloomberg.com/news/articles/2020-07-14/wells-fargo-reports-quarterly-loss-for-the-first-time-since-2008

Wells Fargo reports $2.4 billion loss for the quarter, cutting dividend to 10 cents

The bank set aside $8.4 billion in loan loss reserves tied to the coronavirus pandemic.

   The bank had a net loss of $2.4 billion in the second quarter, or a loss of $0.66 a share, worse than the 20 cents a share loss expected by analysts surveyed by Refinitiv. Revenue of $17.8 billion was also weaker than analysts’ $18.4 billion estimate…

https://www.msn.com/en-us/money/news/wells-fargo-reports-dollar24-billion-loss-for-the-quarter-cutting-dividend-to-10-cents/ar-BB16Iu2j

Trading gains shield Citi as bad loan provisions surge

The New York-based bank reported a profit of $1.32 billion, or 50 cents per share, for the three months ended June 30, down from $4.8 billion, or $1.95 per share, a year earlier. Revenue rose 5% to $19.77 billion. Analysts on average had estimated $19.12 billion in revenue and earnings of 28 cents per share…

The largest U.S. banks have so far stashed away more than $52 billion to prepare for potential losses this year as the economy heads into one of its worst recessions in decades.  So far Citi, the third largest credit card issuer in the United States, has offered forbearance on 2 million credit card accounts representing 6% of balances, the bank said…

https://finance.yahoo.com/news/trading-gains-shield-citi-bad-132906551.html

FOX 35 INVESTIGATES: Hospitals confirm mistakes in Florida’s COVID-19 report

Countless labs have reported a 100 percent positivity rate, which means every single person tested was positive. Other labs had very high positivity rates. FOX 35 found that testing sites like Centra Care reported that 83 people were tested and all tested positive. Then, NCF Diagnostics in Alachua reported 88 percent of tests were positive.

     The report showed that Orlando Health had a 98 percent positivity rate. However, when FOX 35 News contacted the hospital, they confirmed errors in the report. Orlando Health’s positivity rate is only 9.4 percent, not 98 percent as in the report…

     The report also showed that the Orlando Veteran’s Medical Center had a positivity rate of 76 percent. A spokesperson for the VA told FOX 35 News on Tuesday that this does not reflect their numbers and that the positivity rate for the center is actually 6 percent…

https://www.fox35orlando.com/news/fox-35-investigates-hospitals-confirm-mistakes-in-floridas-covid-19-report

WH Freezes CDC Out of Covid Data Reporting, May Ask States to Use National Guard to Help Administration has altered reporting guidelines for hospitals handling Covid-19 patients, asking them to directly send their data to the state or the HHS — bypassing the CDC…Trump and his staffers have publicly criticized the CDC on multiple occasions of late, with the President retweeting an accusation that the agency was lying about Covid-19 numbers to keep “the economy from coming back”…https://www.forbes.com/sites/siladityaray/2020/07/14/report-white-house-may-ask-states-to-use-national-guard-for-covid-data-collection/#2d9351a3127a

Philadelphia to Ban All Major Public Events through February 2021: 6ABC

The politically-inspired shutdowns and bogus Covid statistics should infuriate Americans, especially those that are suffering economic, financial and metal health hardships due to the massive fraud.

Los Angeles Mayor Eric Garcetti now admits protests in the city DID lead to a spike in coronavirus cases after he previously insisted there was no link

https://www.dailymail.co.uk/news/article-8485893/Los-Angeles-Mayor-Eric-Garcetti-admits-protests-led-spike-coronavirus-cases.html

Biden cites quote made famous by Mao Zedong during fundraiser

“We’ve got to get real economic relief into women’s hands now,” Biden said on Monday evening to the 14 wealthy donors who attended the digital fundraising session.  According to the pool reporter who watched the event, Biden then cited the Chinese proverb, “Women hold up half the sky.”…

https://www.washingtonexaminer.com/news/biden-cites-quote-made-famous-by-mao-zedong-during-fundraiser

Biden surfaced yesterday to announce his $2 trillion climate plan that opponents allege will kill millions of jobs and raise taxes.  Joe read his spiel and again abruptly exited without taking any questions.  The Biden act is a cynical affront to democracy. https://twitter.com/SteveGuest/status/1283106222489600006

@SteveGuest: Biden unveils a plan “to get our kids to market swiftly.” [need to modernize infrastructure]

https://twitter.com/SteveGuest/status/1283105587392327682

After Biden’s speech on his latest plan, Trump slammed Biden & Obama for doing nothing for the US during their 8-year reign. https://twitter.com/TeamTrump/status/1283158318102519811

@EmeraldRobinson: A statue of the Virgin Mary was set on fire at a Boston church.  The San Gabriel Mission in Los Angeles was set on fire last weekend.

@Lrihendry: Why is the MSM not reporting on the Catholic churches in Florida and California burned and vandalized?

Calls for Notre Dame to Ditch ‘Fighting Irish’ Nickname Commence

https://fightingirishwire.usatoday.com/2020/07/06/calls-for-notre-dame-to-ditch-fighting-irish-nickname-commence/

The Fathers of Communism Were Racist – Though Marx and Engels are perhaps most known for their ideas about class conflict and revolution… their writings were littered with racial slurs…

https://www.dailysignal.com/2020/07/13/the-fathers-of-communism-were-racist/

A Review of Science Relevant to COVID-19 Social Policy and Why Face Masks Don’t Work    Shaman’s work necessarily implies that, rather than being a fixed number (dependent solely on the spatial-temporal structure of social interactions in a completely susceptible population, and on the viral strain), the epidemic’s basic reproduction number (R0) is highly or predominantly dependent on ambient absolute humidity… Therefore, all the epidemiological mathematical modeling of the benefits of mediating policies (such as social distancing), which assumes humidity-independent R0 values, has a large likelihood of being of little value, on this basis alone…

The “second wave” of an epidemic is not a consequence of human sin regarding mask wearing and hand shaking. Rather, the “second wave” is an inescapable consequence of an air-dryness-driven many-fold increase in disease contagiousness, in a population that has not yet attained immunity… https://www.technocracy.news/censored-a-review-of-science-relevant-to-covid-19-social-policy-and-why-face-masks-dont-work/

The MSM was rocked yesterday by the resignation of the NYT’s Bari Weiss, who penned a scathing resignation missive that condemned the NYT’s practices.

Bari Weiss: A new consensus has emerged in the press, but perhaps especially at this paper: that truth isn’t a process of collective discovery, but an orthodoxy already known to an enlightened few whose job is to inform everyone else.

    Twitter is not on the masthead of The New York Times. But Twitter has become its ultimate editor. As the ethics and mores of that platform have become those of the paper, the paper itself has increasingly become a kind of performance space. Stories are chosen and told in a way to satisfy the narrowest of audiences…molded to fit the needs of a predetermined narrative…

   It took the paper two days and two jobs to say that the Tom Cotton op-ed “fell short of our standards.”… But there is still none appended to Cheryl Strayed’s  fawning interview with the writer Alice Walker, a proud anti-Semite who believes in lizard Illuminati…

    The paper of record is, more and more, the record of those living in a distant galaxy, one whose concerns are profoundly removed from the lives of most people…

    Everyone else lives in fear of the digital thunderdome.  Online venom is excused so long as it is directed at the proper targets…https://bariweiss.com/resignation-letter

Sadly and disgustingly, this is NOT a parody: @BurgerKing: cow farts & burps are no laughing matter. they release methane, contributing to climate change. that’s why we’re working to change our cows’ diet by adding lemongrass to reduce their emissions by approximately 33%. learn about our ongoing study: http://bk.com/sustainability #CowsMenu

end

Let us close out today with this great interview of Alasdair Macleod

a must view.

Dollar Destroyed by Year End – Alasdair Macleod

By Greg Hunter On July 15, 2020

Finance and economic expert Alasdair Macleod says the gold market is “extremely dangerous as far as the bullion banks, swaps and trading desks” that, at some point soon, are going to have to deliver physical gold they do not have.  Macleod explains, “I find it difficult to see how they can close it. . . . The possibility of a default and the possibility of a ‘force majeure’ is increasing all the time in this current situation.  This is a difficult thing to predict, but unless someone can show me there is a way out of this . . . I can’t see how these banks can be rescued.”

So, the only way the banks can be saved is if they can deliver tons of physical gold they likely don’t have?  Macleod says, “Which they don’t have, not likely have, they don’t have.”

Macleod thinks failure to deliver gold is coming soon where the contract will be settled in cash and not physical metal.  How many times can the gold market do this?  Macleod says, “I think it will be the end of the futures market because nobody would trust it as a means of delivering gold.  I mean it would have demonstrably failed.  So, why would you play with it again?  Of course, the failure of COMEX contracts is a very, very serious issue.”

What happens to the price of gold?  Macleod says, “The price is already on its way to infinity or, put more accurately, the dollar is on its way to zero.  The question I think you really want to know the answer to is how long will that take?  In my view, not very long.  Probably by the end of the year because we’ve got another thing happening in the background, and that is we have a banking crisis developing.  This is the natural consequence of the contraction of bank credit.  There is the effect of tariffs on top of that that turn a normal cycle of bank credit contraction into a 1929 to 1932 horror show. . . . If you have a banking collapse, then those assets values will just go down in the pan.  The next thing, of course, bond yields start rising because of the inflationary implications of a financial collapse.  At that stage, government financing becomes impossible because governments are in effect bankrupt.”

Macleod says stocks, the dollar and bonds all go down together and explains, “That is the lesson of history.  Everything just goes away.  If you destroy the currency, you destroy all the financial assets that are priced in it.  That just happens.  It just goes.”

In closing, Macleod says, “I think the problems with the currency are going to happen by the end of this year.  I think the problems of the COMEX are going to happen considerably before that.  I think they are going to be tied into a wider banking crisis.  A banking crisis is certain.  I cannot see how it can be avoided. . . . If our end point is the purchasing power of the dollar goes to zero, then you can see $1,800 for the price of gold and $19 for the price of silver is chicken crap compared to where it’s going to go.  So, this is a major, major move that is happening, not because they are buying gold and silver so much, but because people are beginning to realize what is happening to the purchasing power of the dollar, pound, euro and so on and so forth.  That is the thing to keep in mind. . . . I think the dollar will be destroyed by year end, and the price of gold and silver is infinity. . . .  I think the banking crisis could start in a month.  Look what’s happening to their balance sheets. . . . I think the collapse is likely to be so rapid that in the absence of any other information, the best thing to do is to hold on to gold and silver as an insurance policy just in case I am right.”

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Alasdair Macleod of GoldMoney.com.

(To Donate to USAWatchdog.com Click Here)

-END-

World economic news:

Well that is all for today

 

I will see you THURSDAY night.

One comment

  1. […] by Harvey Organ, Harvey Organ Blog: […]

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