JULY 22//GOLD AND STILL CONTINUE ON THEIR NORTHERN TRAJECTORY: GOLD UP $22.00 TO $1866.60//SILVER UP $1.54 TO $22.72//GOLD TONNAGE AGAIN ADVANCES TO 24.3 TONNES//GLD HAS ANOTHER FRAUDULENT PAPER DEPOSIT OF 7.89 TONNES//ANOTHER HUGE FRAUDULENT PAPER DEPOSIT IN THE SLV: 7.218 MILLION OZ:NOW RESTS AT 549.185 MILLION OZ//NEW INVENTORY: 541.967 TONNES//USA UNLOADS ON CHINA / USA FORCES CHINA TO CLOSE ITS EMBASSY IN HOUSTON (FEW STORIES TONIGHT)//LARGEST DAM IN CHINA IS IN TROUBLE TONIGHT//CORONAVIRUS UPDATE USA/GLOBE/MORE SWAMP STORIES FOR YOU TONIGHT//

GOLD:$:1866.60  UP $22.00   The quote is London spot price (cash market)

 

 

 

 

 

Silver::$22.72// UP $1.54  London spot price ( cash market)

There is now no question that our bankers’ precious metals derivatives have blown up. The Fed is loaning these crooks mega dollars as they are hugely offside on their holdings of gold and silver.

 

your data:

 

 

Closing access prices:  London spot

i)Gold : $1871.50  LONDON SPOT  4:30 pm

 

ii)SILVER:  $23.00//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

AUG GOLD:  $1869.30  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE AUG /: $2.70

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $23.00…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  28 CENTS  PER OZ

 

 

 

 

COMEX DATA

 

 

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

receiving today: 0/81

issued:  79

EXCHANGE: COMEX
CONTRACT: JULY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,842.400000000 USD
INTENT DATE: 07/21/2020 DELIVERY DATE: 07/23/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
132 C SG AMERICAS 1
657 C MORGAN STANLEY 19
657 H MORGAN STANLEY 30
661 C JP MORGAN 79
686 C INTL FCSTONE 9
737 C ADVANTAGE 1 5
800 C MAREX SPEC 9
905 C ADM 9
____________________________________________________________________________________________

TOTAL: 81 81
MONTH TO DATE: 7,768

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 81 NOTICE(S) FOR 8100 OZ  (.2519 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  7768 NOTICES FOR 776800 OZ  (24.137 TONNES)

 

 

SILVER

 

FOR JULY

 

 

242 NOTICE(S) FILED TODAY FOR 1,210,000  OZ/

total number of notices filed so far this month: 15,216 for 76.080 MILLION oz

 

BITCOIN MORNING QUOTE  $9335  DOWN 55

 

BITCOIN AFTERNOON QUOTE.: $9376 down $13

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $22.00 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A MASSIVE PAPER DEPOSIT OF 7.89 TONNES INTO THE GLD

WHAT A MASSIVE FRAUD!

 

 

 

GLD: 1,219.75 TONNES OF GOLD//

 

WITH SILVER UP $1.54 TODAY: AND WITH NO SILVER AROUND: WHAT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV:

A MASSIVE PAPER DEPOSIT OF 7.218 MILLION OZ INTO THE SLV

WHAT A FRAUD!!

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 549.185  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A GOOD SIZED 1444 CONTRACTS FROM 184,301 UP  TO 185,745, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE GOOD SIZED GAIN IN  OI OCCURRED WITH OUR VERY STRONG $1.38 GAIN IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE  GAIN IN COMEX OI IS PRIMARILY DUE TO HUGE  BANKER SHORT COVERING PLUS A STRONG EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A GOOD INCREASE  IN SILVER STANDING  AT THE COMEX FOR JULY.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 2826 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 GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 0  AND SEP 1382 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1382 CONTRACTS. WITH THE TRANSFER OF 1382 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 1382 EFP CONTRACTS TRANSLATES INTO 6.910 MILLION OZ  ACCOMPANYING:

1.THE $1.38 GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

82.950 MILLION OZ INITIALLY IN JULY.

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE $1.38 ).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE GOOD GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A GOOD INCREASE 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 2826 CONTRACTS OR 14.13 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:

16,160 CONTRACTS (FOR 15 TRADING DAY(S) TOTAL 16,160 CONTRACTS) OR 80.80 MILLION OZ: (AVERAGE PER DAY: 1077 CONTRACTS OR 5.387 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY: 80.80 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 11.54% 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:          1,218.22 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                               80.80 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 GOOD SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1444, WITH OUR 138 CENT GAIN  IN SILVER PRICING AT THE COMEX ///TUESDAYTHE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1382 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  2826 CONTRACTS (WITH OUR 138 CENT GAIN IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1382 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A GOOD SIZED INCREASE OF 1444 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 138 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $21.15 // 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: 242 NOTICE(S) FOR 1,210,000  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 82.950 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 VERY STRONG SIZED 11,016 CONTRACTS TO 603,138 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  GAIN OF COMEX OI OCCURRED WITH OUR RISE IN PRICE  OF $26.00 /// COMEX GOLD TRADING// TUESDAY// WE  HAD HUGE BANKER SHORT COVERING, ANOTHER GOOD SIZED INCREASE IN  GOLD OZ STANDING AT THE COMEX FOR JULY, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A SMALL EXCHANGE FOR  PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR STRONG GAIN IN PRICE OF $26.00 .

 

WE HAD A VOLUME OF 0    4 -GC CONTRACTS//OPEN INTEREST  64

 

WE GAINED A VERY STRONG SIZED 14,699 CONTRACTS  (45.72 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 3683 CONTRACTS:

CONTRACT .; AUG 2983 AND OCT: 0 DEC: 200; FEB: 500  ALL OTHER MONTHS ZERO//TOTAL: 3683.  The NEW COMEX OI for the gold complex rests at 603,138. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A STRONG SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 14,699 CONTRACTS: 11,138 CONTRACTS INCREASED AT THE COMEX AND 3683 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 14,699 CONTRACTS OR 45.72 TONNES. TUESDAY, WE HAD A GAIN OF $26.00 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 45.72 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $26.00).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 SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (3683) ACCOMPANYING THE HUGE SIZED GAIN IN COMEX OI  (11,138 OI): TOTAL GAIN IN THE TWO EXCHANGES:  14,963 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)ANOTHER  INCREASE IN GOLD  STANDING AT THE GOLD COMEX FOR THE FRONT JULY MONTH,  3) ZERO LONG LIQUIDATION; 4) HUGE COMEX OI GAIN AND .5) SMALL EXCHANGE FOR PHYSICAL ISSUANCE… AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//TUESDAY//$26.00.

 

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 : 55,432 CONTRACTS OR 5,543,200 oz OR 172,42 TONNES (15 TRADING DAY(S) AND THUS AVERAGING: 3695 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 15 TRADING DAY(S) IN  TONNES: 160.96 TONNES

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

THUS EFP TRANSFERS REPRESENTS 172,42/3550 x 100% TONNES =4.85% 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   3190,61  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;                       172.42 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 GOOD SIZED 1444 CONTRACTS FROM 184,301 UP TO 185,745 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 GOOD GAIN IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)   HUGE BANKER SHORT COVERING , 2) A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A CONSIDERABLE INCREASE STANDING AT THE SILVER COMEX FOR JULY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 1382 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: 1382 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1382 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 1444  CONTRACTS TO THE 1382 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 2826 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 15.02 MILLION  OZ, OCCURRED WITH OUR 138 CENT GAIN 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 UP 12.27 POINTS OR 0.32%  //Hang Sang CLOSED DOWN 577.72 POINTS OR 2.25%   /The Nikkei closed DOWN 132.61 POINTS OR 0.58%//Australia’s all ordinaires CLOSED DOWN 1.21%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9976 /Oil UP TO 41.28 dollars per barrel for WTI and 43.69 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9976 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9926 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS//PANDEMIC//  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A STRONG SIZED 11,016 CONTRACTS TO 603,138 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 HUGE COMEX INCREASE OCCURRED WITH OUR STRONG  GAIN OF $26.00 IN GOLD PRICING /TUESDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (3683 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 14,699 CONTRACTS WITH GOLD’S  GAIN IN PRICE. NOTE THE FACT THAT LATELY THE EXCHANGE FOR PHYSICALS ARE SMALL.. SOME OF OUR MAJOR BANKERS REFUSE TO USE THE SERIAL FORWARDS AS IT JUST TOO COSTLY FOR THEM. THUS THE COMEX OPEN INTEREST RISES APPRECIABLY AGAINST A LOWER ISSUANCE OF THESE EXCH. FOR PHYSICALS.

 

 

(SEE BELOW)

 

 

WE  HAD 0    4 -GC VOLUME//open interest REMAINS AT 64

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 3683 EFP CONTRACTS WERE ISSUED:  AUG  2983 , OCT: 0  DEC 200; FEB 500 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 3683 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:  14,699 TOTAL CONTRACTS IN THAT 3683 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG SIZED 11,016 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A SMALL  AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR STRONG COMEX OI GAIN,  A GOOD INCREASE IN  GOLD TONNAGE STANDING FOR THE JULY DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION……AND WITH ALL OF THE ABOVE WE HAD A VERY STRONG GAIN IN COMEX PRICE OF 26.00 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $26.00).  AND, THEY WERE UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A STRONG 45.72 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 14,699, CONTRACTS OR 1,469,900 OZ OR 45.72 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:  603,138 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 60.31 MILLION OZ/32,150 OZ PER TONNE =  1875 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1875/2200 OR 85.26% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 428,224 contracts// strong volume//

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  319,743 contracts//  volume fair //most of our traders have left for London

 

 

JULY 22 /2020

JULY GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
14,628.25 oz
LOOMIS
455 kilobars
Deposits to the Dealer Inventory in oz NIL oz

 

 

 

Deposits to the Customer Inventory, in oz  

176,830.5000

OZ

JPMORGAN

 

5500

KILOBARS

No of oz served (contracts) today
81 notice(s)
 8100 OZ
(.2518 TONNES)
No of oz to be served (notices)
39 contracts
(3900 oz)
.1213 TONNES
Total monthly oz gold served (contracts) so far this month
7768 notices
776,800 OZ
24.137 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 deposit into the customer account

 

 

i) Into JPMorgan: 176,830.500 oz 5500 kilobars

 

 

 

 

total deposit:  176,830.500 oz (5.5 tonnes)

 

we had 1 gold withdrawals from the customer account:

i) out of Loomis:  14,625.25 oz (455 kilobars)

 

We had 2  kilobar transactions  +

 

ADJUSTMENTS: 5 //

first 4 dealer to customer account

i) Brinks  4999.500 oz

ii) HSBC 403.573

iii)JPMorgan: 196.551

iv) JPMorgan enhanced;  10,000.014

last one: customer to dealer:

v) Manfra.  5208.462

 

 

 

 

 

 

 

The front month of JULY registered a total of 120 oi contracts FOR a GAIN of 13 contracts. We had 8 notices served on TUESDAY so we GAINED ANOTHER 21 contracts or an additional 2,100 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 SHOCKINGLY FELL BY A SMALL 5921  contracts DOWN to 277,423 contracts, as we continue our countdown to first day notice. We have 7 more reading days before first day notice. ( We should be contracting by 18000-20,000 contacts per day).

August is contracting very slowly…and thus  we are going to have a whopper of a delivery month come July 31/2020..first day notice for the August contract month.

 

 

Sept saw another addition of 148 contracts to stand at 732.  Oct GAINED 2030 contracts UP to 42,732. (The boys still prefer August)

 

We had 81 notices filed today for 8100 oz

 

FOR THE JULY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 79 notices were issued from their client or customer account. The total of all issuance by all participants equates to 81 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 (7768) x 100 oz , to which we add the difference between the open interest for the front month of  JULY (120 CONTRACTS ) minus the number of notices served upon today (81 x 100 oz per contract) equals 780,700 OZ OR 24.283 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 (7768 x 100 oz + (120 OI) for the front month minus the number of notices served upon today (81) x 100 oz which equals 780700 oz standing OR 24.283 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 21 contracts or an additional  2,100 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

292,293.416 oz PLEDGED  JULY 9// 2020  JPMORGAN:  9.09 TONNES

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

deleted Int. Delaware pledge July 7  (600 tonnes)

 

653,730.982 oz pledged June 12/2020 Brinks/july 2/july 21               20.333 tonnes

total pledged gold:  1,132,661.658 oz                                     35.23 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 381.77 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 24.283 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  13,406,880.241 oz or 417.01 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; SOME JULY 22) which cannot be settled upon:  292,293.416, oz (or 9.09 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 july 2 and july 21
g) pledged gold at Brinks: 653,730.982 oz added which cannot be settled:  20.333 tonnes
total weight of pledged:  1,132,661.658 oz or 35.23 tonnes
thus:
registered gold that can be used to settle upon:  12,227,421.9  (381.77 tonnes)
true registered gold  (total registered – pledged tonnes  12,227,421.9 (381.77 tonnes)
total eligible gold:  21,344,207.941 oz (663.89 tonnes)

total registered, pledged  and eligible (customer) gold;   34,751,088182 oz 1080.90 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  954.06 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 22/2020

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
 301,895.740 oz
CNT
Scotia

 

 

Deposits to the Dealer Inventory
1166.081.810 oz
Brinks

 

Deposits to the Customer Inventory
854,743.430 oz
JPMORGAN
Delaware
Scotia
No of oz served today (contracts)
242
CONTRACT(S)
(1,210,000 OZ)
No of oz to be served (notices)
1374 contracts
 6,870,000 oz)
Total monthly oz silver served (contracts)  15,216 contracts

76,080,000 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 1 deposit into the dealer:
i) Into Brinks dealer:  1,166,081.810 oz

total dealer deposits: 1166081.810  oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 3 deposits into the customer account

into JPMorgan:   0

 

 

ii) Into Delaware: 35,272.700 oz

iii) Into JPMorgan: 595,202.200 oz

iv) Into Scotia: 224,268.530

 

 

 

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

JPMorgan now has 161/340 million oz of  total silver inventory or 49.20% of all official comex silver. (161.340 million/327.812 million

 

total customer deposits today:  854,743.430    oz

we had 4 withdrawals:

 

 

i) Out of Brinks: 450,000.000 oz ???????

ii) Out of Delaware:  55,264.620 oz

iii) Out of HSBC:  224,268.596 oz

iv) Out of Loomis;  515,521.200

 

total withdrawals; 1,847,368.996   oz

We had 0 adjustments

 

 

total dealer silver: 129.962 million

total dealer + customer silver:  327.812 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of July has an open interest of  1396 contracts, as we lost 91 contracts.  We had 121 notices served on TUESDAY, so we GAINED 30 contracts or an additional 150,000 oz will stand in this active delivery month of July as they REFUSED TO  morph into a London based forwards.  It seems that we have little silver over on this side of the pond. We still have a huge amount of contracts still outstanding to be served upon in July.

 

 

 

The next month after July is the non active month of  August and here  sees its open interest FELL by 0 contracts remaining at 796

The big September contract month sees a LOSS of 740 contracts down to 142,766.

 

The total number of notices filed today for the JULY 2020. contract month is represented by 242 contract(s) FOR 1,210,,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 15,216 x 5,000 oz = 76,080,000 oz to which we add the difference between the open interest for the front month of JULY.(1396) and the number of notices served upon today 242 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JULY/2019 contract month: 15,216 (notices served so far) x 5000 oz + OI for front month of JULY (1396)- number of notices served upon today (242) x 5000 oz of silver standing for the JULY contract month.equals 82,950,000 oz.  (A WHOPPER )//ALL TIME RECORD FOR ONE DELIVERY MONTH

WE GAINED 30 CONTRACTS OR 150,000 OZ WILL STAND FOR DELIVERY. SILVER IS STILL VERY SCARCE ON THIS SIDE OF THE POND AND THE REASON FOR CONSIDERABLE MORPHING OVER TO LONDON.

 

 

 

TODAY’S ESTIMATED SILVER VOLUME : 204,199 CONTRACTS // volume huge++/

 

 

FOR YESTERDAY: 155,326.,CONFIRMED VOLUME//volume huge/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 155,326 CONTRACTS EQUATES to 776 million  OZ  110.0% 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- 12.17% ((JULY 22/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -1.06% to NAV:   (JULY 22/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 2.17%

(courtesy Sprott/GATA

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

NAV 18.89 TRADING 18.53///NEGATIVE 1.92

END

 

 

And now the Gold inventory at the GLD/

JULY 22/WITH GOLD UP $22.00 TODAY: WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/ A DEPOSIT OF 7.89 TONNES/INVENTORY RESTS AT 1219.75 TONNES

JULY 21//WITH GOLD UP $26.00 TODAY, WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.97 TONNES INTO THE GLD// INVENTORY RESTS AT 1211.86 TONNES

JULY 20/WITH GOLD UP $7.70 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1206.89 TONNES

JULY 17/WITH GOLD UP $7.70 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1206.89 TONNES

JULY 16/WITH GOLD DOWN $9.80 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD: INVENTORY RESTS AT 1206.89 TONNES

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 22/ GLD INVENTORY 1219.75 tonnes*

LAST;  866 TRADING DAYS:   +275.93 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 766 TRADING DAYS://+454.04  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JULY 22/WITH SILVER UP $1.54 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A HUMONGOUS PAPER DEPOSIT OF 7.218 MILLION OZ//INVENTORY RESTS AT 549.185 MILLION OZ/

JULY 21/WITH SILVER UP $1.38 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A HUMONGOUS PAPER DEPOSIT OF 15.368 MILLION OZ////INVENTORY RESTS AT 541.967 MILLION OZ//

JULY 20/WITH SILVER UP 40 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV:  A MASSIVE PAPER DEPOSIT OF 3.819 MILLION OZ ‘ENTERED” THE SLV..INVENTORY RESTS AT 526.599 MILLION OZ/

JULY 17/WITH SILVER UP 15 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV/: A DEPOSIT OF 1.583 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 522.780 MILLION OZ//

JULY 16//WITH SILVER DOWN 14 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF  5.123 MILLION OZ//INVENTORY RESTS AT 521.197 MILLION OZ..

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 22.2020:

SLV INVENTORY RESTS TONIGHT AT

549.185 MILLION OZ.

end

 

 

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

Silver Breaks Out!

The price of an ounce of silver broke through the resistance level at $21 and continued to rise to $22.75, a level not seen since 2013!

Over the last few weeks investors have been taking advantage of any pullback in the price of silver to add to their positions, which has continued to underpin this run higher.

The break of $21 dollars is significant and could be viewed as confirmation of the start of a bull run for silver. A test of the resistance level at $25 could now be on the cards.

Note however that Silver is still trading at less than 50% of its 2011 high while gold while gold is close to 97% of its 2011 high. Silver price moves tend to lag that of gold but when they do start to move that move tends to be far greater than those of the yellow metal.

Silver’s price moves will be more volatile and don’t expect it to move in a straight line higher. There is bound to be some pull back in the price as short term traders take profit and short sellers protect their positions. However, the outlook for silver is looking very good at the moment!

NEWS and COMMENTARY

Gold settles at a nearly 9-year high and silver scores highest finish since 2014 on fiscal stimulus moves

Soaring Silver Hits Multiyear High

Gold surges 1.5% as dollar stumbles; silver gathers pace

Precious Metals Update Video: Silver is breaking out

EU leaders reach $2 trillion deal on recovery plan after marathon summit

GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

21-Jul-20 1823.20 1842.55, 1436.86 1449.35 & 1594.21 1608.36
20-Jul-20 1810.30 1815.65, 1437.92 1438.18 & 1580.21 1590.87
17-Jul-20 1802.90 1807.35, 1435.47 1442.45 & 1578.98 1581.07
16-Jul-20 1804.60 1807.70, 1438.09 1436.04 & 1583.72 1581.56
15-Jul-20 1809.30 1804.60, 1436.22 1441.31 & 1582.96 1579.57
14-Jul-20 1798.20 1801.90, 1436.58 1440.62 & 1583.14 1581.71
13-Jul-20 1808.05 1807.50, 1435.23 1432.26 & 1598.32 1591.68
10-Jul-20 1805.75 1803.10, 1433.40 1427.33 & 1599.35 1594.84
09-Jul-20 1812.45 1812.10, 1434.01 1431.74 & 1600.57 1600.08
08-Jul-20 1799.35 1811.10, 1438.40 1438.74 & 1596.38 1598.48
07-Jul-20 1775.50 1789.55, 1423.77 1424.84 & 1576.11 1585.00
06-Jul-20 1774.40 1787.90, 1420.76 1429.43 & 1572.12 1578.36
03-Jul-20  1774.65 1772.90, 1426.29 1422.40 & 1580.33 1577.70

Access Latest Goldnomics Podcast (Part II) Here

Own gold coins and bars in the safest vaults in Zurich, Switzerland with GoldCore. Learn why Switzerland remains a safe haven jurisdiction for owning precious metals. Access Our Most Popular Guide, the Essential Guide to Storing Gold in Switzerland here

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ii) Important gold commentaries courtesy of GATA/Chris Powell

James Turk, is totally thrilled at finally seeing silver’s blastoff. Turk is stating what I have been stating: that derivatives in silver  (and gold) are blowing up!

(Kingworldnews/James Turk/GATA)

 

At KWN, Turk marvels at silver’s blastoff — investors are remonetizing it

 Section: 

9:57p ET Tuesday, July 21, 2020

Dear Friend of GATA and Gold:

At King World News tonight, GoldMoney founder and GATA consultant James Turk marvels at silver’s blastoff today, which seems to be continuing tonight.

Turk says: “Every time there is a dip in the price of silver, some large entities are there to buy the dip. You can sense the panic by the shorts who are attempting to cover but are being met by a tidal wave of buying by the momentum players. These momentum players are new to the market. Meaning, this is fresh buying from new money that is now entering the silver market.”

This morning the Financial Times, Kitco, and other news organizations attributed silver’s explosion to reviving industrial demand and expectations of big government green-energy projects. This seems doubtful amid sharply declining production around the world.

Who needs energy when there’s nothing to do with it and oil and natural gas are so cheap?

A more likely explanation for silver’s price action is the collapse of the fractional-reserve gold and silver banking system as demand for physical metal soars and derivative positions blow up exponentially.

That is, silver is being remonetized by investors.

Turk’s comments are posted at KWN here:

https://kingworldnews.com/short-squeeze-in-silver-continues-as-price-spi…

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

END

Seems that the Fed is going ahead with its new policy of “yield curve control” which of course is the suppression of interest rates. He believes we are heading for real negative interest rates and higher inflation targets.  It is this that is propelling gold and silver.

Craig Hemke/Sprott/GATA

Craig Hemke at Sprott Money: Fed policy shift to negative rates, more inflation is boosting metals

 Section: 

10:10a ET Tuesday, July 21, 2020

Dear Friend of GATA and Gold:

Craig Hemke of the TF Metals Report, writing tonight at Sprott Money, says gold and silver are soaring on the Federal Reserve’s new policies of “yield-curve control” — that is, more suppression of interest rates, even to the point of negative real rates — combined with higher inflation targets.

Hemke’s analysis is headlined “A Major Fed Policy Shift” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/a-major-fed-policy-shift-craig-hemke-ju…

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

END

A Major Fed Policy Shift – Craig Hemke (July 21, 2020)

A Major Fed Policy Shift - Craig Hemke (July 21, 2020)
By Craig Hemke Yesterday 3391 ViewsNo comments

July 21, 2020

It may or may not happen at next week’s FOMC, but that hardly matters. What’s important is that a policy shift is coming and the impact upon the precious metals will be significant.

Many times already in 2020, we’ve utilized this space to explain why negative real interest rates are the most extraordinarily important and fundamental rationale for owning physical gold and silver. Most recently, this article from two weeks ago:

• https://www.sprottmoney.com/Blog/real-rates-drive-…

As we head toward another Federal Open Market Committee meeting next week, attention will turn again to whether or not the FOMC will soon implement a policy of “Yield Curve Control”. In the days leading up to last month’s FOMC meeting, this notion was all the rage, but while Yield Curve Control was discussed at the meeting, no formal announcement was made.

• https://www.bondbuyer.com/news/how-yield-curve-con…

Which is interesting, as it appears that some measure of “de facto” yield curve control has already been put into place, beginning around April 1 of this year and with an easily-identifiable range between 60 and 75 basis points.

Whether or not this policy is already being covertly applied hardly matters. Instead, it’s clear that The Fed is headed in this direction and the impact across all markets will be significant.

Late last week, a trial balloon was floated by Bloomberg. You may have missed it, but if you’re a gold and silver investor, it’s extremely important that you take time to consider it today. Here’s the link:

• https://www.bloomberg.com/opinion/articles/2020-07…

What is this “major policy change” that Bloomberg reports The Fed is actively considering? In a move away from their oft-stated “dual mandate”, The Fed is preparing to change their policy to allow for an overshoot of inflation, above and beyond the current goal of 2% per year. Will this policy change be announced next week? Maybe. Will it be announced in September? More likely. Will it be announced before year end? Almost definitely.

And with this policy shift will come the necessity of Yield Curve Control. Why would YCC become indispensable? Because without it, a rising inflation rate would force interest rates higher…and The Fed is on record stating that they plan to hold yields near zero through 2022. The article from Bloomberg concludes as much, as you can see from the closing paragraph:

Articles such as this don’t appear at Bloomberg by magic. Instead, these trial balloons are designed to measure market response in advance. So understand that higher inflation targets AND yield curve control are very likely coming before the end of the year…and perhaps as soon as September or even next week.

And what does this mean for gold and silver investors? It’s an institutionalization of sharply negative real interest rates. If The Fed holds the yield on the 10-year note below 1% while inflation moves toward 3% or 4%, then negative inflation-adjusted returns for this bedrock institutional holding will drive demand for gold as an alternative Tier One asset. Already, traditional mainstream analysis is beginning to understand the ultimate impact on gold prices. See this from Barron’s:

• https://www.barrons.com/articles/gold-could-overta…

In conclusion you, too, must also recognize the hugely significant implications that this impending “policy shift” will have on the precious metals. The year 2020 has already seen some tremendous gains for gold and silver. However, when The Fed announces the policy changes of higher inflation and yield curve control, the current price rally is likely to accelerate to the upside.

end

Judy Shelton passes one more hurdle, on her way to becoming a Fed governor.  She must must pass the entire senate and that is a cinch

She will prevail

(New York Sun/GATA)

New York Sun: Avoiding ‘price volatility’ is no defense for Fed against Shelton

 Section: 

Judy Shelton Gets a Green Light for Vote by Full Senate

From The New York Sun
Tuesday, July 21, 2020

The vote of the Senate Banking Committee to confirm Judy Shelton for a governorship of the Federal Reserve marks an important step in the right direction for our central bank.

It was a party-line vote, but it sends the nomination to the floor with a favorable signal — amid a Covid crisis that has put great strains on the economy. The Washington Post reckons the nomination “will likely be assured through a vote by the full Senate.”

We certainly hope so, though we take nothing for granted. As the vote neared in the Banking Committee, there was a flurry by the Democrats to try to reopen the debate on Shelton within the committee. “The last thing we need right now,” said Sen. Sherrod Brown, the ranking minority member, “is more price volatility and instability that will only end up hurting working families and businesses more.”

Price volatility? One has to pinch oneself to remember that as Senator Brown was speaking, the value of the Federal Reserve’s one-dollar electronic irredeemable paper ticket note was plunging yet again — to less than an 1,840th of an ounce of gold. That means that the value of the scrip America’s “working families” use as their money is off 35 percent since President Trump acceded to office. It’s nigh the weakest dollar in history. …

… For the remainder of the commentary:

https://www.nysun.com/editorials/judy-shelton-gets-a-green-light-for-the…

end

Will the uSA cut off China from SWIFT?

find out..

Zhou/South China Morning Post/Hong Kong/gata

Can America cut off China from SWIFT?

 Section: 

By Cissy Zhou
South China Morning Post, Hong Kong
Wednesday, July 22, 2020

Debates continue among Chinese officials and analysts as to whether the United States has the ability and willingness to reduce or even completely cut off China’s access to the U.S. dollar system, reflecting uneasiness in Beijing about the potential ramifications of a financial war with Washington.

The consensus, according to published reports and views, is that Washington will not go to this extreme, as it has with Iran and North Korea, because of the risks that such a drastic move would pose to the United States itself and to the global economy.

However, for China, the risk remains real that the U.S. could use the dollar’s hegemony to inflict pain on China if relations continue to deteriorate. …

… For the remainder of the report:

https://www.scmp.com/economy/china-economy/article/3094100/us-dollar-pay.

end

iii) Other physical stories:

last night

Silver Futures Spike Above $23, “Has Long Way To Go”

As European trading opened, it seems someone (cough Benoit cough) wanted silver prices lower, but as the US session gets started, futures prices have reaccelerated, crossing above $23…

Source: Bloomberg

Gold is steady this morning (at cycle highs), which has pushed the gold-silver ratio down to its lowest since Sept 2019…

Source: Bloomberg

But, the ratio has a long way to go from its current 80x to its ‘average’ 50x-ish level…

So what does silver’s breakout really mean? Peter Schiff talked about it in his podcast.

Peter opened up the show talking about soaring stocks. NASDAQ in particular is booming. But most of the money is going into a handful of stocks that have benefited from coronavirus — as Peter called them, the stay at home stocks. But Peter said these companies are still going to be affected by COVID-19.

Because so many of their customers are about to be broke. Just because people have access to your products doesn’t mean they’re going to be able to buy your products. Just because they can buy your products from home doesn’t mean they’re going to do it if they don’t have any money.”

Peter said what investors should be doing is looking at gold, silver, gold stocks, and silver stocks.

Those are the real COVID plays because the way the government is trying to prop everything up and bail everybody out is by creating inflation. And the best hedge against inflation is not an overpriced social media company but extremely undervalued mining companies that are mining the money that the Federal Reserve can’t print, and the money that is likely to replace the US dollar in the global financial system as the primary reserve asset for central banks — and that is gold.”

The real action over the last few days has been in the gold and silver markets – particularly in silver. Peter has talked about the potential for silver for some time. But though silver has made a big move of late, Peter said this is not the big move that he’s been forecasting.

What I think is going to happen is going to be much bigger than today’s 7% gain at the peak.”

The white metal ended up closing up about $1.30 on July 21, and it eclipsed the $21 per ounce level. But keep in mind that silver was close to $50 in 2011.

That is the next stop. Believe it or not, that’s where the real resistance is and that’s where we’re going.”

But Peter said it won’t stop there. Once silver breaks through $50, he said it will go “much, much higher.”

Silver actually has a double-top around $50. It first got to that level in 1980 and then again in 2011.

Fifty-dollars looms very large. But there’s an old saying about these double-tops. I think they’re made to be broken, and silver is going to break this double-top. And the fact that it’s been there for so long means that when it does break — look out!”

Consider how far silver dropped. You could buy silver for $11 or $12 in March. Peter said he bought some silver coins himself.

Once 50 goes from being resistance to being support, it’s going to be massive support. And it is going to provide kind of like a launching pad for a massive move up in the price of silver.”

The silver-gold ratio has been historically high for months. It was well over 100-1 back in March. It’s dropped to about 84-1, but that is still high by historical standards, meaning silver remains undervalued compared to gold. Peter said he thinks we’re starting to unwind that spread and the unwinding of this silver-gold trade is important.

Once they’re finished unwinding, that bit of selling pressure on gold is going to be gone, but all the selling pressure on silver is going to be gone because no one’s shorting it anymore. They’re just going to be buying it. And silver has a long way to go.”

Peter said silver’s breakout is a good sign for gold too.

The fact that silver was never confirming the gold bull market, some people saw that as a non-confirmation, and so another reason not to believe in the gold bull market because silver wasn’t participating. Well, now it is. So, you can’t say that anymore.”

So what is the rally in silver telling us? It’s a prelude to the dollar collapse Peter has been predicting for a long time. And he said we don’t have a lot of time.

The bottom is going to drop out of the dollar any day. Gold could go through the roof any day. And so, this is really a race – a race to beat the clock and get people out of the dollar.”

So, what does the silver and gold rally mean? Peter called it a canary in the coal mine.

And the canary is dropping dead.”

end

My goodness: what got into Deutsche bank’s top credit strategist.  He makes a stunning admission for a bank:

“I Am A Gold Bug; Fiat Money Is A Passing Fad In The History Of Money”

 

Deutsche Bank’s Top Credit Strategist Makes Stunning Admission: “I Am A Gold Bug; Fiat Money Is A Passing Fad In The History Of Money”

As covered here repeatedly over the past 24 hours, gold and silver (and oil) had a great day yesterday, with the rally continuing on Wednesday, sending silver nearly 100% higher than its March lows.

Furthermore, as DB’s Jim Reid notes, on a YTD basis, Gold (+21.4%) and Silver (+19.3%) have had standout moves compared with global risk – which as a reminder is what central banks are doing everything they can to prop up – even if WTI (-26.1%) is down.

What followed next was shocking as it came from the mouth of a respected legacy banker and not some tinfoil conspiracy theorist: admitting that he is “a gold bug”, Reid says that in his opinion, “fiat money will be a passing fad in the long-term history of money”, a shocking admission for most financial professionals who are expected who are expected to tow the Keynesian line and also believe in the primary of fiat and its reserve currency, the US Dollar.

That said, he also concedes that in his long-term work “I’ve always found many commodities difficult to recommend on a buy and hold basis as most underperform inflation over the long run – probably as they are mostly used in production and alternatives are found if too expensive. We also become more efficient at using them.

All… except gold:

Indeed, between 1860 and 1971 (move from a gold-based system to fiat money), Reid notes that the real price of Gold fell by 75% and over 80% for Oil and Silver. Since then, while oil and silver have only doubled in real terms and are still less than half their 1860 values, Gold is up 7 times, double its 1860s real level.

Some context: since 1971, the S&P 500 is up 22 times in real total return terms and 40,000 times since 1860, but one has to remember that whereas equities are actively pumped up by central banks, gold has been repeatedly hammered by monetary authorites, so its performance is nothing short of remarkable having had to “fight the Fed” for near 40 years.

Reid’s conclusion: “Gold is definitely a fiat money hedge” and not only that, but more importantly a transitionary asset to whatever monetary system is next.

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: 6.9976/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9926   /shanghai bourse CLOSED UP 12.27 POINTS OR 0.32%

HANG SANG CLOSED DOWN 577.72 POINTS OR 2.25%

 

2. Nikkei closed DOWN 132.61 POINTS OR 0.58%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index DOWN TO 94.99/Euro RISES TO 1.1575

3b Japan 10 year bond yield: FALLS TO. +.017/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.98/ 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:: 41.23 and Brent: 43.69

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.48%/Italian 10 yr bond yield DOWN to 1.06% /SPAIN 10 YR BOND YIELD DOWN TO 0.35%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.54: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 1.16

3k Gold at $1862.00 silver at: 22.91   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 16/100 in roubles/dollar) 70.81

3m oil into the 41 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 106.98 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 .9314 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0780 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.48%

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 0.59% early this morning. Thirty year rate at 1.29%

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

6.  TURKISH LIRA:  UP  TO 6.8501..

Futures Slide After China Vows Retaliation To US Shutdown Of Houston Consulate

S&P futures slumped on Wednesday and European stocks fell after Washington ordered a shutdown of the Chinese consulate in Houston, citing a need to protect American intellectual property and information, amid a sharp deterioration in relations between the two countries (at least we now know why the Houston consulate was furiously burning all of its documents late on Tuesday). The State Department later said the order was to protect intellectual property and “private information” of Americans. Beijing in return vowed to “react with firm countermeasures”, and was reportedly considering the closure of the US consulate in Wuhan (of all places) escalating tensions between the world’s two largest economies and adding to concerns over the deteriorating relationship between the economic superpowers. Yields and the yuan fell, Hong Kong shares dropped and gold and silver dipped after soaring overnight on continued dollar weakness.

 

The U.S. Department of State confirmed the impending closure of the Houston consulate, after China’s foreign ministry reported it had been told to shut the mission. The closure had been ordered in order to protect American intellectual property and American’s private information”, State Department Morgan Ortagus said in a statement.

“The United States will not tolerate the PRC’s violations of our sovereignty and intimidation of our people, just as we have not tolerated the PRC’s unfair trade practices, theft of American jobs, and other egregious behavior,” she added, referring to China by its official name, the People’s Republic of China.

In turn, China denounced the US order as an “unprecedented escalation”:

“The unilateral closure of China’s consulate general in Houston within a short period of time is an unprecedented escalation of its recent actions against China,” Chinese foreign ministry spokesman Wang Wenbin told a regular news briefing.

“We urge the U.S. to immediately revoke this erroneous decision. Should it insist on going down this wrong path, China will react with firm countermeasures,” he said.

The news comes after three straight sessions of gains for the S&P 500, driven by optimism about an eventual coronavirus vaccine, further fiscal support for the pandemic-hit economy and a batch of positive second-quarter reports. The index is less than 4% below its record closing high hit in February.

Some selling crept into stocks ahead of the Consulate news after Mitch McConnell warned that it is unlikely that a stimulus bill would be passed before the July 31 deadlinewhen existing generous government handout programs expire.

Geopolitics aside, here are some company specific news:

  • Snap Inc declined 8.3% as it said a bump in user growth at the start of coronavirus-induced lockdowns petered out sooner than expected, and it forecast fewer current-quarter users than the Wall Street consensus.
  • United Airlines Holdings warned travel demand would remain suppressed until there was a widely accepted treatment or vaccine for COVID-19, which plunged the carrier to a deep quarterly loss. Its shares fell 0.1% in premarket trading.
  • Texas Instruments rose 4% rose after the company beat on the top and bottom line and guided to a higher Q3: EPS 1.48 (exp. 0.88/0.86 reported); Revenue 3.2bln (exp. 2.94bln); Q3 Revenue view 3.26-3.54bln (exp. 3.07bln); Q3 EPS view 1.14-1.34 (exp. 0.97)
  • Boeing 737 Max is unlikely to resumed widespread passenger flights until early next year, almost two months beyond prior guidance, amid regulatory delays, according to US officials cited by WSJ. Officials said the timetable could speed up and MAX operations could resume earlier, but it is not the expectations of those closely monitoring the process. Co. has a 4.5% weighting in the DJIA. Separately, a 737 craft has caught fire at the Shanghai airport, according to Xinhua.

Investors will also keep an eye out for quarterly results from Tesla and Microsoft after markets close.

“I’m more concerned going into the August, September period: what’s going to then be the next catalyst to take the broader market higher,” Andrew Sheets, a cross-asset strategist at Morgan Stanley, said on Bloomberg TV. It’s going to be “a tougher period for stocks,” he said.

European stocks slumped on the latest diplomatic spat, the Stoxx 600 sliding as much as 1.2% shortly after the news, while Asian stocks also fell, led by communications and health care, after rising in the last session. Most markets in the region were down, with Hong Kong’s Hang Seng Index dropping 2.3% and Singapore’s Straits Times Index falling 1.3%, while Taiwan’s Taiex Index gained 0.6%. The Topix declined 0.6%, with Access and Land Co falling the most. The Shanghai Composite Index rose 0.4%, with Junzheng Energy and Ningxia Xinri Hengli Steel Wire posting the biggest advances.

Elsewhere, treasuries edged higher and the dollar briefly rose on the latest geopolitical scandal.

The Bloomberg dollar index briefly erased a decline as haven demand picked on news that the U.S. abruptly ordered China to close its consulate in Houston. Earlier, the greenback came under pressure after President Donald Trump warned that the coronavirus crisis in the U.S. will probably worsen before improving. The Australian dollar and euro led gains, both rising for a fourth day against the greenback; the Aussie saw strong demand from exporters, real money and reserve managers, while the euro touched the highest since October 2018. The pound led losses, weighed down by a report that ministers believe the U.K. and EU may fail to sign a post- Brexit trade deal.

The euro gained a fourth day and touched its strongest level since October 2018 as investors chase the price action higher. In evidence of its strong momentum, the currency dipped twice during the London session toward 1.1510 and it was quickly bought both times; initially, it was unable to take out offers at 1.1550, especially after news that the U.S. abruptly ordered China to close its consulate in Houston. The common currency’s strength corners the Bloomberg Dollar Spot Index, which is testing a key support that has held since mid-2018; President Donald Trump’s warning that the coronavirus crisis in the U.S. will probably worsen before improving weighs on the currency.

 

In rates, Bunds outperformed Treasuries on haven demand, though Italian debt led gains in Europe following the EU’s recovery fund deal. Treasuries bull-flattened with yields lower by as much as 2bp across 20- to 30-year sectors, trailing long-end-led gains for German curve. U.S. session highlights include 20-year bond auction. Treasuries only marginally richer across front-end and belly, flattening 2s10s, 5s30s by 1bp and 1.7bp; 10-year yields around 0.587%, richer by 1.3bp while bunds outperform by 1bp.

In commodities, WTI and Brent futures have experienced some modest selling this morning. At present, the session low for WTI Sep’20 stands just above the USD 41/bbl mark and almost USD 1/bbl lower on the day. The downside stemmed from an escalation in reports relating to the US asking China to close their Houston consulate, which has been confirmed by both sides and seen China threaten to take retaliatory action unless this demand is rectified. For the complex itself newsflow has once again been very quiet, as a reminder the private inventory report last night showed an unexpected build of 7.54mln compared to consensus for a draw of 2mln going into the release, a release which placed the crude benchmarks under pressure. Turning to metals, where price action for spot gold has been comparatively quieter in the context of APAC price action. Overnight, the yellow metal extended on gains above the USD 1850/oz mark to a high of USD 1866.44/oz; price action which seemingly followed similar upward action in silver. In terms of a catalyst, no one driver has been attributed to the move but desks note COVID-19 reports alongside Fed nominee Shelton, a gold standard supporter, advancing at the Senate Banking Committee amongst factors.

Looking at the day ahead, the data highlights include the US existing home sales for June, the FHFA house price index for May, along with Canada’s June CPI reading. From central banks, we’ll hear from ECB President Lagarde and Vice President de Guindos. Finally, earnings out include Microsoft, Thermo Fisher Scientific and Tesla.

Market Snapshot

  • S&P 500 futures down 0.6% to 3,230.50
  • STOXX Europe 600 down 0.9% to 373.43
  • MXAP down 0.8% to 166.73
  • MXAPJ down 1% to 551.81
  • Nikkei down 0.6% to 22,751.61
  • Topix down 0.6% to 1,572.96
  • Hang Seng Index down 2.3% to 25,057.94
  • Shanghai Composite up 0.4% to 3,333.16
  • Sensex down 0.4% to 37,791.32
  • Australia S&P/ASX 200 down 1.3% to 6,075.06
  • Kospi down 0.01% to 2,228.66
  • German 10Y yield fell 1.4 bps to -0.474%
  • Euro down 0.07% to $1.1519
  • Italian 10Y yield fell 1.0 bps to 0.968%
  • Spanish 10Y yield fell 0.3 bps to 0.353%
  • Brent futures down 1.2% to $43.78/bbl
  • Gold spot up 0.5% to $1,851.26
  • U.S. Dollar Index up 0.2% to 95.33

Top Overnight News from Bloomberg

  • The dollar briefly erased adecline as haven demand picked on news that the U.S. abruptly ordered China to close its consulate in Houston. Earlier, the greenback came under pressure after President Donald Trump warned that the coronavirus crisis in the U.S. will probably worsen before improving
  • The Australian dollar and euro led gains, both rising for a fourth day against the greenback; the Aussie saw strong demand from exporters, real money and reserve managers, while the euro touched the highest since October 2018
  • The pound led losses, weighed down by a report that ministers believe the U.K. and EU may fail to sign a post- Brexit trade deal
  • Bunds outperformed Treasuries on haven demand, though Italian debt led gains in Europe following the EU’s recovery fund deal

APAC stocks traded mixed following a similar handover from Wall Street, in which the three indices saw downside in the latter part of the session as the US stimulus bill hit a bump amid differences over the size of the package and whether payroll tax cuts should be included. ASX 200 (-1.3%) lagged as cases stayed on an upward trajectory in Australia’s second largest state of Victoria, although miners saw a boost from the rally in precious metals. Nikkei 225 (-0.6%) failed to nurse opening losses as several large-cap stocks remained in the red, whilst recent JPY strength further weighed on exporters in the index. Conversely, Shanghai Comp (+0.4%) outperformed following yesterday’s pause, whilst Hang Seng (-2.5%) initially took a breather and remained in positive territory as oil giants kept the index afloat; before succumbing to the overall deterioration in sentiment. Finally, JGB futures ticked higher overnight after reports that that the Tokyo Governor is mulling stay-at-home orders, whilst the BoJ’s Rinban operations saw sizes for the 1-3yr, 3-5yr and 5-10yr buckets unchanged.

Top Asian News

  • China Central Bank to Pause Further Monetary Policy Easing: Rtrs
  • China Huarong Is Said to Buy BEA’s Tewoo Debt at 80% Discount
  • Hong Kong Sees Record 105 Local Cases in ‘Most Severe Moment’

European equities have started the session off on the backfoot (Eurostoxx 50 -0.8%) following a mixed handover from the US and Asia with action exacerbated on increasing US-China tensions regarding the Houston consulate in EU hours. From a European perspective, little has fundamentally changed since yesterday’s close amid the fallout from the agreement in Brussels other than some rumblings from Parliamentary groups in the EU that do not accept the Multiannual Financial Framework as its stands; ahead of tomorrow’s plenary session to assess the Council conclusions. In terms of sectoral performance, auto names are lagging their peers after a solid session yesterday with Valeo (-9%) acting as a weight on the sector after its H1 update. Energy names are also seen lower this morning with WTI and Brent front-month futures having dipped below 41.50/bbl and 44/bbl respectively. For stocks specific developments, Kingfisher (+11.4%) sit at the top of the Stoxx 600 with the Co. anticipating HY adj. pretax profit to be above Prev. due to strong Q2 sales and cost reductions. Elsewhere, other gainers include Fresnillo (+9.1%) despite cutting gold production guidance as investors appear satisfied with the accompanying beat on silver production. ABB (+2.3%) are also seen higher after the Co. beat on both top and bottom lines, whilst to the downside Melrose (-17.5%) are a laggard in Europe after announcing a 27% decline in H1 revenues.

Top European News

  • Fiat-Peugeot Deal Faces Delay as EU Stops Clock on Review
  • Bailey Hires First Woman for BOE’s ‘Unofficial Governor’ Role
  • Twitter Alerts Irish Privacy Regulator About Hacker Attack

In FX, the Dollar has bounced broadly on risk-off positioning and some profit taking after sustaining more heavy losses vs rival currencies, as US-China tensions ratchet up further over the closure of the Chinese Consulate in Houston by US ‘request’. In response, China’s Foreign Ministry has issued a warning about retaliation if the outrageous edict is not reversed and Usd/Cnh has rebounded firmly from circa 6.9640 to around 7.0160 awaiting further developments. Meanwhile, the DXY has pared more losses following another skirmish with 95.000, at 95.061 vs 95.043 at one stage on Tuesday to trade at 95.419 amidst a deeper pull-back in high beta/cyclicals that have gleaned most at the Greenback’s expense.

  • GBP – Sterling never really took advantage of the aforementioned Dollar drubbing, with Cable only extending advances beyond the 200 DMA (around 1.2705) to 1.2740 at best before reports emerged in the UK press suggesting that the Government is resigned to life post-Brexit transition period without an EU trade deal. The Pound has subsequently given up 1.2700+ status and Eur/Gbp is testing 0.9100 from a few pips off 0.9000 only yesterday.
  • CHF/AUD/NZD/EUR/CAD/JPY – All conceding ground to the recovering Buck, but not much in the grand scheme, as the Franc flits between 0.9314-37, Aussie remains above 0.7100 and not far from Fib resistance that was breached on the way up towards 0.7167 and Kiwi pivots 0.6650. Elsewhere, the Euro ran into reported fund supply at 1.1550, but is holding above 1.1500 after Tuesday’s big figure break despite potentially damaging news on the EU Budget as main EP groups back a motion of non-acceptance of the deplorable deal. Separately, Eur/Usd may be deriving a degree of underlying support from decent 1.27 bn option expiry interest at the round number. The Loonie is straddling 1.3450 in the run up to Canadian CPI and the Yen has drifted down to 107.00 or so following a break above that faded just ahead of near double top resistance at 106.67-65.
  • SCANDI/EM – The latest strains in relations between Washington and Beijing and associated aversion has undermined the Sek and Nok especially as oil prices recoil, but EMs are also suffering due to their more risk sensitive nature. Nevertheless, the Rand is still deriving some traction from Gold reaching fresh multi-year peak and only appearing to wane beyond Usd 1850/oz amidst speculation about hedging from bullion producers.

In commodities, WTI and Brent futures have, alongside broader market performance, experienced risk-off moves this morning. At present, the session low for WTI Sep’20 stands just above the USD 41/bbl mark and almost USD 1/bbl lower on the day. The downside stemmed from an escalation in reports relating to the US asking China to close their Houston consulate, which has been confirmed by both sides and seen China threaten to take retaliatory action unless this demand is rectified. For the complex itself newsflow has once again been very quiet, as a reminder the private inventory report last night showed an unexpected build of 7.54mln compared to consensus for a draw of 2mln going into the release, a release which placed the crude benchmarks under pressure. Attention now turns to the EIA report later today for confirmation of such a build in stocks; currently, the EIA report is expected to show a crude draw of 2.088mln which would be smaller than last week’s 7.5mln draw and in contrast to last night private inventory build. Turning to metals, where price action for spot gold has been comparatively quieter in the context of APAC price action. Overnight, the yellow metal extended on gains above the USD 1850/oz mark to a high of USD 1866.44/oz; price action which seemingly followed similar upward action in silver. In terms of a catalyst, no one driver has been attributed to the move but desks note COVID-19 reports alongside Fed nominee Shelton, a gold standard supporter, advancing at the Senate Banking Committee amongst factors. For reference, the next level to watch out for is USD 1885.72/oz which is the high from September 9th 2011 and the ATH at USD 1921.17/oz.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 5.1%
  • 9am: FHFA House Price Index MoM, est. 0.3%, prior 0.2%
  • 10am: Existing Home Sales, est. 4.75m, prior 3.91m; Existing Home Sales MoM, est. 21.36%, prior -9.7%

DB’s Jim Reid concludes the overnight wrap

The best thing about working I can find other than to pay the mortgage and constant renovation bills is that I didn’t have to go to Peppa Pig world yesterday with my family. It was chaos apparently. However this trip may have pushed back retirement plans even further as they came back with more Peppa Pig merchandise than Hamleys stock at Xmas.

Christmas came early yesterday in markets with numerous asset classes reaching their strongest levels since financial markets reacted to the global spread of the pandemic back in March. Having said that, US stocks came off their highs on stimulus doubts in the last hour of trading. Nevertheless the S&P 500 advanced by +0.17% to reach its highest level since 21st February, which was the Friday before the weekend when Italian cases surged into triple digits and sent markets into a tailspin. The rise in the S&P was led by Energy (+6.15%) and Banks (+3.55%) as the growth over value trade had a rare reversal. In fact, Energy stocks led the rally on both sides of the Atlantic (+2.37% for STOXX 600 Oil and Gas sector) against the backdrop of a surge in oil prices with Brent crude (+2.40%) and WTI (+2.82%) both climbing to their highest levels since early March. Tech underperformed with the NASDAQ falling -0.81%.

In a further sign of normalisation though, Bloomberg’s index of US financial conditions closed in positive territory for the first time since the pandemic began or more specifically 26 February (meaning financial conditions are marginally more accommodative now than at their pre-GFC average from 1994 to July 2008). Over in Europe, equities earlier also gave up some of their gains towards the end of the session with the STOXX 600 (+0.32%) similarly reaching a post-pandemic high. At one point in trading the DAX (+2.04% at the highs) actually ventured into positive territory on a YTD basis, before ending the session up +0.96%.

The corollary of this risk-on move was a broad dollar breakdown, with the dollar index down by -0.75% to its lowest level in over 4 months, having weakened for 7 of the last 8 sessions now. The move saw the euro rise to $1.153, finally breaching the $1.145 high back in March that means the single currency is now at its strongest level against the dollar since January 2019. As a reminder, our FX strategists see the euro heading up to $1.20 by year-end, partly supported by an expected divergence in the Europe data relative to that in the US as the resurgence in cases knocks confidence.

Speaking of the US, Republican leaders in Congress and the White House met to finish off the party’s opening bid to House Democrats for the latest round of stimulus. Treasury Secretary Mnuchin and White House Chief of Staff Meadows seem to agree that an additional round of stimulus checks directly to individuals, a more tailored extension of supplemental unemployment benefits, and additional funding for covid-19 testing would all be included. However, the party still sees some dissent for the payroll tax cut that the President has advocated for. Congress has already approved $2.9tr in fiscal stimulus this year, and now Republicans are trying to keep the current bill to another $1tr vs the House passed bill for $3.5tr. The timeline is getting tight for Congress as much of the original stimulus is set to expire within the next few weeks but with US lawmakers on recess in the second week of August. Late in the session, it was reported that Senate Majority leader McConnell does not expect stimulus to get done in two weeks as the White House had wanted. Overnight, Bloomberg has reported that Senate Republicans are considering whether to cut the unemployment insurance subsidy to 70% of the $600 weekly addition to state-run unemployment programs provided by the last round of economic aid, or pushing for 70-75% of prior wage replacement, a smaller benefit. Final details on this are likely to be out today.

Staying with the US Congress, the Senate Banking Committee heard a pair of Fed confirmation votes. Judy Shelton has been a contentious pick by President Trump for the Federal Reserve’s Board of Governors, but yesterday she won confirmation by a party-line vote, 13-12, of the Senate Banking Committee. Shelton has drawn criticism in the past for being an informal adviser to the Trump campaign in 2016, which might affect the image of her independence. She has also held more unorthodox monetary policy views including a return of the US to the gold standard and questioning a need for a central bank controlled benchmark rate. With far less contention, Christopher Waller, who is currently the director of research at the St. Louis Fed passed 18-7 through his own confirmation vote. Both Shelton and Waller will now be voted on by the entire Senate in order to join the Fed Board. Senate Majority leader McConnell will likely only bring votes to the floor once he knows he has at least 50 votes and so it will be notable if the chamber votes on Waller, clearly the far less controversial candidate, well ahead of Shelton.

In terms of the latest on the coronavirus, California has overtaken New York overnight to become the most infected state in the US in terms of total infections since the start of the pandemic as it reported 14,369 new cases (vs. 7-day average of 8790) or a 3.6% daily rise (vs. 7-day average of 2.5%). California’s total infections now stand at 409,305 versus 408,181 in New York. Governor Newsom noted that California is likely to have adequate hospital capacity, with Covid-19 patients occupying just 17% of available beds across the state. In Florida, cumulative hospitalizations rose 2.4%, to 21,780, while the daily increase of 517 is the most on record. Cases rose by just over 9400 (vs. 7-day average of 11,172) yesterday in the state or 2.6% (vs. 7-day average of 3.5%), but Tuesday has routinely been lower than the rest of the week and so should be taken with a degree of caution. According to the Texas Medical Center, the number of covid-19 patients in Houston-area hospitals, which at one point were using surge beds to deal with the overflow of patients, should decline for at least the next two weeks, given recent admission stats. New York continues to add to its “Quarantine list”, with 10 new states including Alaska, Delaware, Indiana, Maryland, Missouri, Montana, North Dakota, Nebraska, Virginia and Washington, but Minnesota has been removed. Meanwhile, President Donald Trump has rebooted his coronavirus briefings and warned yesterday that the coronavirus crisis will probably worsen before improving.

There are also concerning reports from Asia, as both Hong Kong and Tokyo are seeing a rise in cases. Tokyo has seen more than 1,600 coronavirus cases in the past week with between 230 to 240 cases today, and Governor Yuriko Koike is considering urging residents to avoid unnecessary trips outdoors during an upcoming four-day weekend. Australia’s Victoria state also registered 484 new cases setting a nation record while State Premier Daniel Andrews said that the lockdown may be extended unless people comply with restrictions.

The Nikkei (-0.47%) and the ASX (-1.28%) are the notable underperformers this morning following the latest virus data, while in contrast the Hang Seng (+0.08%), Kospi (+0.11%) and most notably the Shanghai Comp (+1.20%) are all up. Futures on the S&P 500 are up +0.35% and in commodities spot silver and gold prices are up a further +4.93% and +0.72% respectively. In terms of data releases, Japan’s preliminary June manufacturing PMI came in at 42.6 (vs. 40.1 last month) while the service PMI printed at 45.2 (vs. 45.0 last month) bringing the composite reading to 43.9 (vs. 40.8 last month).

Over in Europe, we just caught the news in yesterday’s edition that EU leaders had agreed a final deal on the recovery fund, made up of €390bn in grants and €360bn in loans. Our European economists have now put out an in-depth note looking at the final deal (link here), where they argue that there are two key positives from a financial market point of view. The first is the precedent it sets as the EU’s first common counter-cyclical instrument. The second is that it has an optimal design in that it is large enough for the scale of the crisis, it is targeted at the most growth-enhancing opportunities, and it incentivises structural reforms.

In line with the broader risk-on move yesterday, the market reaction in Europe continued to be positive. 10yr yields on Italian (-1.1bps) debt over bunds narrowed to their lowest levels in over 4 months. Credit default risk also fell, with the iTraxx Europe falling by -1bp to its lowest level since late February, with the iTraxx Crossover (-3bps) at its lowest since early March. Nevertheless, inflation expectations fell back, in spite of reaching a 4-month high on an intraday basis with 5yr5yr inflation breakeven swaps for the Euro Area closing down -1.2bps at 1.12%.

Aside from the dollar, a number of safe havens actually recorded a strong performance, with the precious metal rally we mentioned yesterday gathering further steam. By the close, gold had risen a further +1.33% to a fresh 8-year high of $1842, while silver surged by +7.01% to surpass its 2016 peak and reach a 6-year high. The +21.39% advance for gold since the start of the year makes it one of the few major assets to have seen big positive returns in 2020 so far. US Treasuries also advanced, with 10yr yields down -1.0bps to 0.60%.

It was another day of fairly light data releases, though from the US we did get the Chicago Fed’s national activity index which saw a rise to 4.11 in June (vs. 4.00 expected). Elsewhere, Canadian retail sales rose by +18.7% in May (vs. +20.0% expected), and the UK’s main measure of public borrowing rose to £35.5bn in June (vs. £38.0bn expected), a move which took the debt-to-GDP ratio to 99.6%, the highest since the financial year ending March 1961. While we’re on the UK public finances, it’s worth noting that Chancellor Sunak launched the Comprehensive Spending Review for 2020 yesterday, which will be published in the autumn. Notably it warned of “tough choices” that lie ahead given the economic impact of the pandemic. Overnight, the British Chambers of Commerce has said in a report that Sunak should reduce social security contributions by GBP500 per employee as it will help to “protect businesses and preserve jobs.”

To the day ahead now, and the data highlights include the US existing home sales for June, the FHFA house price index for May, along with Canada’s June CPI reading. From central banks, we’ll hear from ECB President Lagarde and Vice President de Guindos. Finally, earnings out include Microsoft, Thermo Fisher Scientific and Tesla.

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 12.27 POINTS OR 0.32%  //Hang Sang CLOSED DOWN 577.72 POINTS OR 2.25%   /The Nikkei closed DOWN 132.61 POINTS OR 0.58%//Australia’s all ordinaires CLOSED DOWN 1.21%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9976 /Oil UP TO 41.28 dollars per barrel for WTI and 43.69 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9976 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9926 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS//PANDEMIC//  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/THREE GORGES DAM

The largest dam in the world, the THREE GORGES DAM is being pushed to the limit as Chinese officials issue their highest flood alert Already flooding has occurred downstream and many lives have been lost as well as huge economic damage.

After Slamming Western Media “Hype”, Chinese Officials Issue Highest Flood Alert As Three Gorges Dam Pushed To Limits

The Huaihe River Commission of the Ministry of Water Resources issued its highest flood alert Monday after the water level on the major river, located between the Yellow and the Yangtze Rivers, reached dangerous levels.

The water level at the Wangjiaba hydrological station on the Huaihe River reached 29.7 meters on Monday, well above the danger level of 27.5 meters.

 

Wangjiaba hydrological station. h/t China News

Global Times posted a video Monday of Wangjiaba hydrological station.

The 1,000-kilometre river is a major waterway in China, is facing grim flooding risks over the next three days for parts of Shanxi, Henan, Shandong, Anhui, and Jiangsu provinces.

Massive flooding upstream on the Yangtze River has also caused concern that the Three Gorges Dam, the largest hydroelectric power station in the world, is being pushed to the limit under the strain of massive flows of water.

Many regions along the Yangtze River have flooded in the past week due to torrential rains this monsoon season. At the moment, at least 400 Yangtze tributary rivers have overflowed, with at least a hundred dead and 15 million people evacuated from their homes in July alone.

Rainfall totals in China are about 12% higher than the last monsoon season. The economic damage is already in the billions of dollars, according to government estimates the previous week.

We noted last week rising floodwaters on the Yangtze River had caused fears the Three Gorges Dam has failed to prevent flooding downstream.

Officials dismissed these accusations on Monday by saying:

“If flooding occurred via heavy rainfall in the middle and lower reaches of the Yangtze River, the cities surrounding these reaches would have to mainly rely on their own flood drainage facilities,” state-owned Three Gorges Corporation said.

“Under such circumstances, the Three Gorges Dam can still make a contribution by retaining and impounding water to ease the pressure on those cities.”

Some media outlets are claiming the massive damn could collapse.

Chinese state media has continued to indicate Western media is ‘hyping’ the dam’s collapse.

Flooding this week is expected to continue on the Huaihe River with no signs of abating.

A major flooding event could be what the Communist Party of China officials need to scapegoat the coming stall in the world’s second-largest economy.

 

end

After footage was received by the uSA of Uighurs being loaded onto trains onto concentration camps, the uSA was blacklisted 11 Chinese firms for using this forced labour

(zerohedge)

US Blacklists 11 Chinese Firms For Uighur Forced Labor, DNA & Human Hair Collection

Early this week the US Commerce Department added eleven Chinese companies to its economic black list, citing human rights violations in the Uighur-dominant region of western Xinjiang.

Specifically the ban on US companies doing business with the eleven Chinese firms arises from allegations they are using Chinese Muslims in forced labor situations.

The announcement of the new economic blacklist followed a weekend New York Times report which detailed Uighurs being used as essentially slave labor to make Personal Protective Equipment (PPE) amid the coronavirus pandemic.

The Times report detailed that “several Chinese companies are using Uighur labor from a contentious government program to produce P.P.E. during the pandemic.”

Some of the equipment even made it to the United States, as well as other buyers around the globe.

 

Recent Reuters photo of what China’s government calls a “vocational skills education center” in Dabancheng in Xinjiang Uighur Autonomous Region, via FOX/Reuters.

In addition to widespread allegations of forced labor, in some instanced Uighurs are being allegedly used as unwilling human subjects in genetic research, as Reuters reports:

Among them are numerous textile companies and two firms the government said were conducting genetic analyses used to further the repression of Uighurs and other Muslim minorities.

It was the third group of companies and institutions in China added to the U.S. blacklist, after two rounds in which the Trump administration cited 37 entities it said were involved in China’s repression in Xinjiang.

“Beijing actively promotes the reprehensible practice of forced labor and abusive DNA collection and analysis schemes to repress its citizens,” Commerce Secretary Wilbur Ross said in a statement.

In another ghastly example, one company is said to be mass collecting human hair from Uighur prisoners to use in wig products:

Also on the banned roster is Hetian Haolin Hair Accessories Co. On May 1, U.S. Customs and Border Protection (CBP) said it was halting imports of the company’s hair products, citing evidence of forced labor.

On July 1, CBP seized in Newark a shipment of almost 13 tons of hair products worth over $800,000 with human hair that it said originated in Xinjiang.

The NYT story was released just as newly resurfaced footage allegedly showing bound and blindfolded Chinese Muslims being loaded onto train cars went viral.

end

 

HONG KONG

Situation in Hong Kong is quite grim as the city faces another wave of the coronavirus

(zerohedge)

“The Situation Is Grim” – Hong Kong Dangerously Unprepared For Second Wave Of COVID-19

Mirroring a similarly virulent second wave that hammered Singapore in May and June, Hong Kong is suffering from a surprisingly intense second wave of the virus, with the city reporting 58 new local cases on Tuesday, with 24 of those coming from unknown origins.

Worries about the situation in Hong Kong prompted Bloomberg to report that the city state is surprisingly unprepared for the second wave, as its contact-tracers are struggling to track local cases to hot spots that are feeding the outbreak.

Unlike in Japan and the US, where mostly young people are becoming infected now, Hong Kong’s outbreak is affecting more older people than it did during the first round.

The median age this time is 55 years old, up from 40 in previous waves, and clusters are forming in nursing homes.

As the city scrambles to expand testing access, quarantine facilities and isolation beds, it has become clear that the long stretch of seeming to have dodged the coronavirus bullet (daily local infections never broke above 28 before July) has left its defenses dangerously low.

While the city reacted quickly to stop the spread of the virus by immediately implemented mask-wearing and social distancing, by the spring, complacency had set in and bars filled up as restrictions were relaxed. Hong Kong’s recent uptick in new cases shows that contact tracers have no idea where many of these cases are coming from.

The city’s ability to trace infections to certain hot spots during the first wave of the outbreak was widely credited for its success.

 

 

It’s a phenomenon that’s not unique to Hong Kong.

“Perversely, the more successful you are, you get the impression oh we don’t have the virus, we don’t have to worry about thinking of the basic precautions,” said professor Peter Collignon from the Australian National University Medical School in Canberra.

“The more successful you are, the more you don’t keep on doing the things you need to do and so it comes back.”

Even before the virus crossed into Hong Kong, the international city was in dire straits. Months of disruptive, often violent protests had warded off tourists and business travelers, and the city’s economy was reeling from its worst slump since SARS when COVID-19 arrived in December 2019. Since the start of the outbreak, the political situation has grown even more precarious, as the US has retaliated against Beijing for imposing a new national security law on Hong Kong by ending the region’s special treatment. The White House even considered targeting the HKD peg to the dollar.

Joblessness in HK is now at a 15-year high.

In total, Hong Kong has confirmed only 2,019 cases, far fewer than the numbers in neighbors like South Korea and Singapore. But HK’s medical system is already coming under strain as the city scrambles to try and stop the virus from infiltrating old folks homes and other managed care facilities. So far, 14 deaths have been reported.

Hospitals have warned the situation is already critical as isolation beds and wards in public hospitals have already reached 80% capacity.

“Since there are more elderly patients during this wave of outbreak, isolation beds might be used up much sooner than in March,” said Ian Cheung Tsz-fung, chief manager at the Hospital Authority, in a radio interview on Tuesday. “This week is crucial.”

Because of this, the city’s leaders have warned that HK may need to impose another lockdown, which would crush its already battered economy.

“The government did relatively well in handling the previous two waves of outbreak. But the relaxation of measures was too lenient and gave citizens a false sense of security, causing a huge outbreak this time,” said CUHK’s Hui. “This situation is grim.”

Hong Kong did an admirable job confronting the virus during the early months of the outbreak. But when trying to suppress COVID-19, complacency is a serious danger.

END

 

CHINA VS USA

China is furious with the USA after they abruptly ordered the closure of their Houston consulate.  They promised unprecedented escalation

(zerohedge)

China Furious After US Abruptly Orders Closure Of Houston Consulate Sparking “Unprecedented Escalation”

Following a suspicious document fire that necessitated a visit from the local police yesterday, Washington has turned the tensions with Beijing up to ’11’ by ordering the immediate closure of the Chinese consulate.

Apparently, the incident occurred just as the US was ordering the abrupt closure of China’s consulate in Houston, citing a need to protect American intellectual property and data. The decision, which rattled global equity markets, has been decried as a dramatic escalation in bilateral tensions as Beijing condemned the order as an outrageous violation of international law. Spokespeople for the Chinese government also slammed the decision as outrageous and unprecedented.

Washington’s order, which according to WSJ was issued just yesterday, marks an “unprecedented escalation” and “a political provocation unilaterally launched by the US,” according to Chinese Foreign Ministry spokesman Wang Wenbin, who addressed the issue during his regular press briefing in Beijing.

“China urges the US to immediately rescind its erroneous decision, otherwise China will undertake legitimate and necessary responses.”

Reuters is now reporting that China is considering closing the US consulate in Wuhan in retaliation. Though we suspect those diplomats wouldn’t mind being stationed elsewhere.

Even Hu Xijin, the typically long-winded editor of the Global Times, could only manage a surprisingly brief “that’s crazy”.

State Department Spokeswoman Morgan Ortagus didn’t specify which specific actions, if any, inspired Washington’s decision, though she did say: “President Trump insists on fairness and reciprocity in U.S.-China relations.”

“The United States will not tolerate the PRC’s violations of our sovereignty and intimidation of our people, just as we have not tolerated the PRC’s unfair trade practices, theft of American jobs and other egregious behavior.”

Notably, the DoJ unveiled evidence of a massive hack of COVID-19-related research allegedly orchestrated by China.

So far, details from official sources are scant. However, it’s probably worth remembering the scene from yesterday’s ‘document fire’ incident: the Houston police and fire departments responded Tuesday night to a reported document fire at the Chinese Consulate. Footage taken from the building next door shows what appears to be barrels with burning material inside of them.

Seems like a totally normal and non-suspicious reaction to a closure order.

Stocks slumped during the Asian trading session; the offshore yuan also slumped against the greenback.

The Foreign Ministry spokesman continued to hammer the US, saying China has always treated American diplomats ‘with respect’ (including monitoring their every move), while this isn’t the first incident involving China’s diplomatic personnel in the US.

“In contrast, the US put restrictions on Chinese diplomats in June and last October, respectively, with no valid reason. [The US] has seized and opened mail and official supplies,” Wang said.

China’s diplomats are widely regarded members of Chinese society, probably holding a higher status than American diplomats hold. State-controlled media has praised China’s diplomats as “Wolf Warriors”. Read more about that here.

The HPD said it began receiving reports just after 2000 local time warning about documents being burned at 3417 Montrose Boulevard, where the consulate is located.

The consulate holds a special significance. According to information available online, the consulate “was the first one to be established” in 1979 when the US and China official re-established diplomatic relations.  The consulate’s district covers eight southern US states, namely Texas, Oklahoma, Louisiana, Arkansas, Mississippi, Alabama, Georgia, Florida and an unincorporated territory, the Commonwealth of Puerto Rico.

END

4/EUROPEAN AFFAIRS

Banks scramble to cut derivative losses ahead of the new Libor called ESTR

(investing.com)

and special thanks to Doug C for sending this to us

 

Banks Scramble to Cut Derivatives Losses on Eve of Market Reset By Bloomberg

Banks Scramble to Cut Derivatives Losses on Eve of Market Reset

© Reuters. Banks Scramble to Cut Derivatives Losses on Eve of Market Reset© Reuters. Banks Scramble to Cut Derivatives Losses on Eve of Market Reset

(Bloomberg) — They call it the big bang transition, the day when European interest-rate derivatives markets finally shift to a new benchmark next week.

And in the run-up, banks and money managers that find themselves caught on the wrong side of trades are scrambling to limit their losses while their counterparts look to cement their gains.

Nowhere is this tension more evident than in the market for swaptions. That’s because pivoting to the new benchmark — known as the euro short-term rate, or ESTR — to help value hundreds of billions of euros of swaption contracts is set to trigger a sudden shift in prices, magnifying in many cases the gains and losses that traders will book.

While a European Central Bank-backed committee has suggested a framework for parties that profit from the change to reimburse those that lose out, it cannot force the market to adopt its methodology, leaving trading partners to iron out their own deals. In the U.S., financial firms are watching for clues ahead of a similar transition planned for October.

The upheaval is all part of the global move away from Libor and other discredited reference rates, which still underpin hundreds of trillions of dollars of assets, from mortgages in the U.S. to syndicated loans in Asia. Clearing houses, in coordination with regulators, are switching to alternative benchmarks in part to help bolster their liquidity.

For traders of centrally-cleared interest-rate swaps, their positions will be automatically adjusted. But because the majority of swaptions are bilateral, non-cleared contracts, they won’t be governed by mandatory compensation rules.

“There are real profit and loss issues,” Priya Misra, head of global rates strategy at TD Securities in New York, said via email. “Any investor who has a positive net present value position should benefit. Whoever is on the other side will lose.”

The ECB began phasing in ESTR in October, and the benchmark will fully replace Eonia, which is still linked to more than 100 trillion euros of financial instruments, in early 2022. Regulators prefer ESTR because of the more robust trading that underpins the benchmark, making it a truer reflection of the cost of capital and less susceptible to corruption.

Similar actions are underway in sterling and dollar markets after rigging scandals engulfed indexes that for many years were bedrocks for the global financial system.

In Europe, the largest banks are already in contact over compensation tied to their swaption portfolios, said Jan Rosam, a partner at Ernst & Young in Germany. He expects talks to drag on until at least the end of next year. The whole market is hoping to avoid a messy dispute, he said.

“Large banks and brokers will start first and then it will cascade down to the buy-side,” he said. “It’s nothing that will be done in a couple of weeks. We’re talking about amending thousands of legal agreements.”

Firms are watching how big U.S. lenders respond and there is uncertainty about what comes next, said an executive at one European bank, who asked not to be named given the sensitivity. If just one major counterparty refuses to cooperate then the voluntary system of compensation could collapse, the person said, adding that the most rational expectation is that nobody pays.

In the meantime, preparations for the benchmark change are accelerating. Fintech company Capitalab has already switched a notional 290 billion euros of its clients’ swaptions from Eonia to ESTR discounting, according to a source familiar with the matter who asked not to be named.

What Bloomberg Intelligence Says:

“Anything bilateral is open to negotiation — it’s strictly voluntary so let’s see how much cash compensation happens. Liquidity in ESTR products should increase as more hedging goes through.”

— Tanvir Sandhu, Chief Global Derivatives Strategist

The ECB declined to comment on the compensation recommendations from its working group except to say they are based on market consensus and lack legal standing.

Across the Atlantic, the U.S. faces similar rancor as the Secured Overnight Financing Rate, or SOFR, replaces the effective federal funds rate for discounting cash flows for dollar-based swaps. The Alternative Reference Rates Committee — convened by the Federal Reserve to guide the Libor transition — is recommending its own voluntary compensation arrangement ahead of the October shift.

Not everyone is panicking — hedge funds in particular are keeping a cool head. A portfolio manager at one of the largest macro funds in London said he hasn’t thought much about the problem but doesn’t believe there will be major impact.

The founder of another top fund said the switch won’t create any problems and the market is adapting seamlessly. Pricing around Eonia and ESTR suggests little opportunity for arbitrage, where traders exploit differences in value, he added.

The chief executive officer of a third fund said there could be winners and losers because many legacy swaptions were priced assuming the underlying swap would use the old discounting system.

Banks now face tough decisions. They could resort to ‘cherry picking,’ seeking compensation but refusing to budge where they owe money. Although this might be cost effective, larger institutions will be wary of reputational damage from a public row with their rivals. At the same time, lengthy haggling and identifying which instruments merit compensation may simply be too much to manage.

“Some firms may just say ‘it’s not feasible and we’ll do no compensation and not engage with any of the counterparties,’” said Suzanna Brunton, a managing associate at Linklaters LLP in Paris. “I don’t think that’s an unreasonable response.”

©2020 Bloomberg L.P

 

end

WIRECARD…

CEO re arrested after being freed on bail last month.

It seems that Braun knew that Wirecard was a fraud going back to 2015.

(zerohedge)

Wirecard CEO Re-Arrested After Being Freed On Bail

Shortly after Wirecard’s former COO reportedly surfaced in Russia, where he has fled to avoid prosecution over the bankruptcy of Wirecard after the company reportedly collapsed following the exposure of a massive $2 billion accounting fraud, prosecutors in Munich have issued new arrest warrants for three former Wirecard executives – including former CEO Markus Braun – over findings that Braun and the others knew about the fraudulent activity as far back as 2015.

Braun, who was arrested for the first time in relation to the scandal late last month, has been free on a massive $6 million bail.

The warrants are for crimes ranging from fraud to market manipulation.

…Developing

end

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

Mish Shedlock on the unprecedented recession facing the globe and what it means

(Mish Shedlock/Mishtalk)

Unprecedented Recession Synchronization And What It Means

Authored by Mike Shedlock via MishTalk,

The global recession has no precedent in terms of synchronization.

Deflationary Consequences

Lacy Hunt at Hoisington Management explains the deflationary consequences of the current global situation in its Second Quarter 2020 Review.

Hunt commented on the four economic challenges central bankers face as noted below.

Four Economic Challenges

  1. Over 90% of the world’s economies are contracting. The present global recession has no precedent in terms of synchronization.
  2.  A major slump in world trade volume is taking place. 
  3. Additional debt incurred by all countries, and many private entities, to mitigate the  worst consequences of the pandemic, while humane,politically popular and in many cases essential, has moved debt to GDP ratios to uncharted territory. This insures that a persistent misallocation of resources will be reinforced, constraining growth as productive resources needed for sustained growth will be unavailable.
  4. 2020 global per capita GDP is in the process of registering one of the largest yearly declines in the last century and a half and the largest decline since 1945. The lasting destruction of wealth and income will take time to repair.

Here are ten key ideas (my estimation) condensed from the article.

Ten Key Ideas

  1. Recessions are either deeper or longer lasting when a very high percentage of the world’s economies are contracting rather than when they are centered on a limited number of countries. 
  2. Except for the very short run, the Federal Reserve’s lending operations for the corporate bond market are a negative for economic growth. The BOJ (Bank of Japan), ECB (European Central Bank) and the People’s Bank of China (PBOC) have all been buying corporate debt of failing entities for more than a decade with the BOJ doing so for more than 25 years. These operations have provided a fleeting lift to economic activity, but at the end of the day they resulted in misallocation of credit, poor economic growth and disinflation/deflation.
  3. By keeping failing players in the game, this prevents the process Joseph Schumpeter called “creative destruction” as well as “moral hazard”, thereby eliminating these critical factors that make free market economies successful.
  4. The adverse consequences of an unsurpassed increase in new debt will remain for years to come. Four great past economists – Eugen Bohm Bawerk, Irving Fisher, Charles Kindleberger and Hyman Minsky – all captured the two-edged nature of debt being an increase in current spending in exchange for a decline in future spending unless the debt generates an income stream to repay principal and interest.
  5. The relationship between debt and economic growth is non-linear, just as is the law of diminishing returns. Significant research indicates that the adverse consequences start as low as a 67% gross debt to GDP ratio.
  6. A recent Brookings Institute study posits the pandemic will lead to 300,000- 500,000 less births next year. For 2019, population growth in the U.S. and the world, was already the slowest since 1918 and 1952.
  7. In the first quarter, corporate debt jumped to a record 48.7% of GDP, more than 300 basis points higher than during the Lehman crisis
  8. In 1934, Irving Fisher wrote that the velocity of money falls in heavily indebted economies. We believe that Fisher’s finding will be correct because his view is supported by the evidence and the rationale that the huge additional debt added this year will not generate an income stream to repay principal and interest. Accordingly, the reopening rebound in the economy underway will falter, leaving the economy with a huge output gap.
  9. At the end of the three worst recessions since the 1940s, the output gap was 4.8% in 1974, 7.9% in 1982 and 6.4% in 2009. The gap that existed after the recession of 2008-09 took nine years to close. This was the longest amount of time to eliminate a deflationary gap.
  10. Considering the depth of the decline in global GDP, the massive debt accumulation by all countries, the collapse in world trade and the synchronous nature of the contracting world economies the task of closing this output gap will be extremely difficult and time consuming. This situation could easily cause aggregate prices to fall, thus putting persistent downward pressure on inflation which will be reflected in declining long-dated U.S. government bond yields.

Conclusion

Nearly all economists expect a huge jump in inflation associated with the Fed’s massive balance sheet expansion and government fiscal stimulus.

However, I side with Lacy Hunt.

My Reasons

  • The demand destruction from Covid will last for years.
  • Demand destruction is greater than Covid stimulus.
  • Buildup up debt is inherently deflationary.
  • Demographics are deflationary.
  • By bailing out failed corporations, the Fed is creating more and more zombies.

Unwanted Inflation Easy to Find

Actually, inflation is easy to find. Look no further than the stock and bond markets.

The Fed’s balance sheet expansion coupled with trillions of dollars of fiscal stimulus (both unprecedented) has resulted in stock market speculation also at unprecedented levels exceeding the housing bubble boom in 2008.

Six Related Articles 

  1. Banks Double Loan Loss Reserves ‘Everybody Is Struggling’
  2. Housing Starts and Permits Improve But Not Enough
  3. Cass Transportation Index “Not Good By Any Measure”
  4. China’s Unexpectedly Strong Growth Isn’t What it Seems
  5. All Continued Unemployment Claims Top 32 Million Again
  6. Work-From-Home Will Reduce Driving by 270 Billion Miles Per Year

Inflation is not where the Fed wants it.

The Fed can print money and Congress can hand it out, but neither can dictate where the money goes.

In 2020, money has found a home in rampant speculation in stocks and bonds. In 2008 money primarily went into a housing bubble.

But bubbles burst. Thus, speculation too is inherently deflationary.

END

7. OIL ISSUES

WTI Holds Losses As US Distillates Stocks Reach 38-Year Highs

Oil prices are lower overnight after a surprisingly large crude inventory build reported by API. The energy complex was not helped by comments by President Trump that the COVID-19 outbreak in the U.S. will probably worsen before improving.

“Everything seemed to rise in the commodity world yesterday as part of the reflation trade,” said Giovanni Staunovo, an analyst at UBS Group AG in Zurich.

“But today oil fundamentals are taking control again, and a likely crude inventory build in the U.S. doesn’t fit in the story of an undersupplied market.”

And so all eyes are on the official data for signs of this reversal in recovery…

API

  • Crude +7.54mm (-2.1mm exp)
  • Cushing +716k (+800k exp)
  • Gasoline -2.019mm (-1.4mm exp)
  • Distillates -1.357mm (-600k exp)

DOE

  • Crude (-2.1mm exp)
  • Cushing  (+800k exp)
  • Gasoline (-1.4mm exp)
  • Distillates (-600k exp)

After API reported a 7.54mm build in US crude stocks, oil bulls are focused intently on the official data expecting a 2.1mm draw still. However, while not as large as the API build, DOE reports a 4.892mm build in crude, another build at Cushing, a surprise build in distillates, and a slowing drawin gasoline…

Source: Bloomberg

Additionally, as Bloomberg’s Sheela Tobben reports, U.S. crude oil exports may be under downward pressure as China is now facing new troubles that might curb its interest for American. The Asian nation was struggling with bulging inventories and port jams after a recent crude binge, while battling a new wave of the Covid-19 pandemic. This month, heavy rains have resulted in severe floods, threatening run cuts at the country’s top refiner.

Total US distillates inventory has soared to its highest since 1982…

Source: Bloomberg

US crude production has stabilized along with the decline in rig counts for the last few weeks, and rose modestly in the last week…

Source: Bloomberg

The unexpected crude build and slowing product draws suggests that U.S. producers jumped back too fast, particularly if the recent rise in coronavirus cases further curbs demand just as the U.S. exits its peak gasoline-demand season.

WTI prices remain lower on the day, chopping lower then higher after the initial DOE print…

As a reminder, OPEC+ is due to start resuming some supplies next month, tapering the record production cutbacks implemented to offset demand losses inflicted by the coronavirus. Nonetheless, there are signs the alliance will be careful.

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 1.1575 UP .0040 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS/PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL RED

 

 

USA/JAPAN YEN 106.98  UP 0.159 (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 1.2694   DOWN   0.0039  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3427 DOWN .0020 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 ROSE BY 40 basis points, trading now ABOVE the important 1.08 level RISING to 1.1575 Last night Shanghai COMPOSITE CLOSED UP 12.27 POINTS OR 0.37% 

 

//Hang Sang CLOSED DOWN 577.72 POINTS OR 2.25%

/AUSTRALIA CLOSED DOWN 0,42%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 577.72 POINTS OR 2.25%

 

 

/SHANGHAI CLOSED UP 12.27 POINTS OR 0.32%

 

Australia BOURSE CLOSED DOWN 1.21% 

 

 

Nikkei (Japan) CLOSED DOWN 132.61  POINTS OR 0.58%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1858.70

silver:$22.33-

Early WEDNESDAY morning USA 10 year bond yield: 0.59% !!! DOWN 1 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 1.29 DOWN 1  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 94.99 DOWN 12 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.34% DOWN 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.017%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.33%//DOWN 4 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,04 DOWN 4 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 71 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.49% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.53% 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 1.1591  UP     .0056 or 56 basis points

USA/Japan: 107.16 UP .331 OR YEN DOWN 33  basis points/

Great Britain/USA 1.2731 DOWN .0001 POUND DOWN 1  BASIS POINT)

Canadian dollar UP 21 basis points to 1.3425

 

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The USA/Yuan,CNY: AT 6.9996    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  67.0036  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8497 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +0.017%

 

Your closing 10 yr US bond yield DOWN 1 IN basis points from TUESDAY at 0.59 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.28 DOWN 3 in basis points on the day

Your closing USA dollar index, 94.91 DOWN 21  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 60.02  0.96%

German Dax :  CLOSED DOWN 71.73 POINTS OR 0.54%

 

Paris Cac CLOSED DOWN 65.55 POINTS 1.25%

Spain IBEX CLOSED DOWN 106.30 POINTS or 1.42%

Italian MIB: CLOSED DOWN 145.40 POINTS OR 0.70%

 

 

 

 

 

WTI Oil price; 41.40 12:00  PM  EST

Brent Oil: 43.86 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    71.15  THE CROSS HIGHER BY 0.49 RUBLES/DOLLAR (RUBLE LOWER BY 49 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.49 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 :  41.88//

 

 

BRENT :  44.27

USA 10 YR BOND YIELD: … 0.60..down one basis point…

 

 

 

USA 30 YR BOND YIELD: 1.30..down one basis point..

 

 

 

 

 

EURO/USA 1.1571 ( UP 36   BASIS POINTS)

USA/JAPANESE YEN:107.16 UP 32    (YEN DOWN 32 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 94.97 DOWN 14 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2741 UP 09  POINTS

 

the Turkish lira close: 6.8516

 

 

the Russian rouble 71.06   DOWN 0.40 Roubles against the uSA dollar.( DOWN 40 BASIS POINTS)

Canadian dollar:  1.3412 UP 34 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.48%

 

The Dow closed UP 165.44 POINTS OR 0.62%

 

NASDAQ closed UP 25.77 POINTS OR 0.24%

 


VOLATILITY INDEX:  24.32 CLOSED DOWN .52

LIBOR 3 MONTH DURATION: 0.255%//libor dropping like a stone

 

USA trading today in Graph Form

 

Bonds, Gold, & Silver Surge As China Tensions & Bailout Uncertainty Escalate

Vaccine hope trumped rising China tensions and uncertainty about government handouts continuing for a while but worsening COVID headlines (Ohio mandatory masks, Cali record case jump, etc) spooked stocks lower as the day wore on with mega-tech and small-caps underperforming. But, as is usual now, around 1400ET, everything was magically bid back into the green…

 

The Nasdaq’s rebound into green today extends the streak to 48 trading days without consecutive losing days.

 

The seemingly endless rise puts the tech-heavy index on the verge of matching the longest streak without back-to-back losses since May 7, 1978, according to Dow Jones Market Data.

As politicians fight over the bailout (weighing people’s livelihoods against their election odds)…

…Jim Millstein, the co-chairman of Guggenheim Securities, summed the worries up by warning that the financial system would be at risk if the U.S. fails to extend aid to consumers unable to pay their bills.

“If those folks do not have continuing support, we’re going to see a spike in delinquencies and defaults in consumer credit,” Millstein said Wednesday in a Bloomberg Television interview.

“That will have some contagion effects across the banking system and a variety of financial institutions.”

And that dear readers is why UBI is here to stay…forever…

Which perhaps explains the sudden surge in precious metals…

Spot Silver soared to $23…

Source: Bloomberg

Spot Gold tagged $1870 intraday…

Source: Bloomberg

…and the weakness in the dollar…

Source: Bloomberg

Longer maturity bonds were also bid on the day, but the short-end saw yields rise very modestly…

Source: Bloomberg

With 10Y yields back below 60bps again…

Source: Bloomberg

The decoupling between stocks and bonds is becoming farcical…

Source: Bloomberg

Having soared amid a massive short squeeze on Monday, FANG stocks continued to fade today…

Source: Bloomberg

Led by AMZN’s rollover…

But tonight will be all about TSLA keeping the dream alive…

But of course – fun-durr-mentals don’t matter…

Source: Bloomberg

Cryptos were higher on the day led by a surge in altcoins relative to bitcoin…

Source: Bloomberg

While silver and gold surged today, copper had a down day and oil was flat…

Source: Bloomberg

Funny how quiet everyone is about Dr.Copper now that he is not confirming highs in stocks (making a lower high)…

WTI dropped overnight in API inventory data, dropped again this morning on DOE confirmation but was then mysteriously bid back to unch…

Finally, we note that it’s that time of year again… the third week in July, when things have historically gone a little bit turbo in stocks…

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

Gold Joins Silver In Surge Higher As Asian Markets Open

Update (2100ET): Japan’s open appeared to trigger silver’s surge tonight and China’s open sent gold futures lurching higher…

 

What is the message about the USDollar from the precious metals market relative to its worth versus fiat…

 

We wonder what happens when the barbarous relic really breaks out…

*  *  *

After two strong days, silver is not stopping its charge as futures smash above $22 for the first time since October 2013…

Source: Bloomberg

Up over 90% from its March 2020 lows…

Source: Bloomberg

As Peter Schiff notes, silver’s current run follows on the heels of its best quarter since 2010.

Safe-haven demand is driving silver prices higher, along with supply concerns. There are also expectations of increasing industrial demand, particularly in the solar energy sector.  Even if the global economy is slow to recover, silver may get a boost from government stimulus as various programs funnel money into “green energy” projects.

“Silver-intensive areas such as 5G and solar technology could well benefit from any fiscal impulse,” BMO analysts said in a research note cited by Bloomberg.

“More than $50 billion of green stimulus has been approved by governments thus far this year, over which roughly three-quarters has been in Europe. But perhaps more impactful has been the recent Biden campaign Clean Energy plan, most notably a zero-carbon power grid by 2035 which would see new wind and solar capacity built to displace thermal generation.”

While silver is much more sensitive to industrial demand than gold, at its core, silver is a monetary metal and it tends to track with gold over time. The white metal should continue to benefit from the inflationary pressure of government money-printing and stimulus programs. A Morgan Stanley note quoted by Bloomberg said, “Silver will continue to be pulled higher by the strong gold price and supportive financial conditions.”

Additionally, global central bank money-printing is starting to drive more investors to question their ‘forever’ faith in fiat, and as Deutsche’s Jim Reid notes, The Fed for one, has a lot more room to run…

Some believe this is already a huge amount, but as the second graph shows, the Fed’s balance sheet as a % of GDP is notably lower than the ECB and BoJ’s. If they were aligned, the Fed balance sheet would now be around $11tn and $25tn, respectively.With

DB’s Matt Luzzetti expecting that US debt to GDP will be above 100% in 2020 and near 140% by 2030 from just shy of 80% at the start of this year, it seems inconceivable to me that the Fed and other central bank balance sheets will do anything other than explode over the next decade and perhaps beyond.

Historically, silver tends to outperform gold in a gold bull market, and we’re seeing that dynamic play out in the midst of gold’s current run up. The yellow metal is fast-approaching its all-time high in dollars.  But silver futures have climbed more than 40% since the end of the first quarter, surpassing the 14% gain for gold futures during that same period.

Silver coin and bar sales have also helped drive investment demand for silver. Retail bullion coin sales jumped by an estimated 60% year-on-year. Strong demand led to shortages of many silver bullion products, resulting in extended delivery time and higher premiums.

Meanwhile, silver mine output was already trending downward and it has been further squeezed by mine shutdowns due to COVID-19. Analysts at the Silver Institute say they expect mine supply to continue its four-year slide this year. Even with most mines back online, the institute projects a 7% decline in mine output in 2020. Global mine production fell by 1.3% in 2019.

The gold-to-silver plunged to 81x tonight, breaking its recent multi-year uptrend…

…but that is still high by historical standards…

That tells us silver remains undervalued compared to gold. In the modern era, the silver-gold ratio has historically been around 50 to 60-1. At some point, the ratio will likely return closer to its historical norm. Given the economic dynamics, it seems far more likely silver will climb to close the gap rather than the price of gold dropping.

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Existing Home Sales Rebound By Most Ever In June (But Miss Expectations Despite Record Low Rates)

Existing home sales were expected to play a big catch up in June after significantly disappointing in May as pending- and new-home-sales rebounded strongly from the March/April plunge during lockdowns. Existing Sales did rebound strongly – up 20.7% MoM – a record MoM rise but that was less than expectations of a 21.4% rise and left sales down 11.3% YoY…

Source: Bloomberg

This pushed Existing Home Sales SAAR back up to 4.72mm…

Source: Bloomberg

The median existing-home price for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.

“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” said Lawrence Yun, NAR’s chief economist.

“This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”

Sales for June increased in every region. Median home prices grew in each of the four major regions from one year ago.

  • Sales in the Northeast rose 4.3%, recording an annual rate of 490,000, a 27.9% decrease from a year ago. The median price in the Northeast was $332,900, up 3.6% from June 2019.
  • Midwest sales increased 11.1% to an annual rate of 1,100,000, down 13.4% from a year ago. The median price in the Midwest was $236,900, a 3.2% increase from June 2019.
  • South sales jumped 26.0% to an annual rate of 2.18 million, down 4.0% from the same time one year ago. The median price in the South was $258,500, a 4.4% increase from a year ago.
  • West sales ascended 31.9% to an annual rate of 950,000 in June, a 13.6% decline from a year ago. The median price in the West was $432,600, up 5.4% from June 2019.

But, despite record low mortgage rates, buying has not coming back as much as expected…

Source: Bloomberg

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”

Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019.

end

UNITED AIRLINES

Wow!! what a loss;  the worst sector in the global economy to be hit with the coronavirus is the airline industry. United Airless posts a monstrous 2.6 billion dollar loss as revenue plunges by 87%.  Six thousand employees agree to quit!

(zerohedge)

United Posts Record $2.6BN Loss As Revenue Plunges 87%; 6,000 Employees Agree To Quit

Wall Street was eagerly looking toward today’s results from commercial airline giant United Airlines to get a real-time sense whether the covid pandemic is starting to thaw when it comes to one of the worst-hit sectors from the economic shutdowns.

Alas, the answer appears to be no, because moments ago UAL reported a worse than expected Q2 loss per share of $9.31, more than the $9.18 loss expected, and down from a profit of $4.21 a year ago. This translated to a record quarterly loss of $2.6 billion, as the collapse of passenger demand in the “Covid quarter” played out for a full three months.

Revenue was even uglier, plunging by a record 87% to just $1.48 BN from $11.4BN a year ago, if fractionally better than the $1.27BN expected.

Some more details from the report, courtesy of Bloomberg:

  • Available seat miles 8.96 billion, estimate 9.14 billion
  • Rev. passenger miles $2.97 billion, estimate $3.12 billion
  • Passenger revenue $681 million, estimate $530.1 million
  • Cargo revenue $402 million, estimate $188.2 million
  • Other revenue $392 million, estimate $450.2 million
  • Expects July Load Factor of 45%

Reflecting the dismal conditions, the company said that more than 6,000 employees had agreed to leave voluntarily, and many more will likely leave involuntarily as with mass layoffs are a rising risk after federal payroll aid expires at the end of September.

With costs still far above revenue, United Q2 cash burn averaged a whopping $40 million a day, although it said that it expects that to fall to $25 million a day in the third quarter.  The good news is that total liquidity was $15.2 billion at the end of Q2 and is expected to increase to more than $18 billion by the end of the third quarter, so a default is not immediately in the cards.

As Bloomberg notes, United stood out in March and April for its dire outlook on the coronavirus crisis. CEO Scott Kirby says that served the company well by enabling it to take speedy action such as cutting costs and raising capital. He says in the release:

“We believe this quick and aggressive action has positioned United to both survive the COVID crisis and capitalize on consumer demand when it sustainably returns.”

He is right… assuming a vaccine is not only discovered by implemented by early 2021. Otherwise, burning even a reduced $25MM per day for a full year will have dire consequences on the company.

END

iii) Important USA Economic Stories

Bill de Blasio is not a fan of Wall Street: many Wall Street firms are considering a mass exodus from New York

(zerohedge)

Wall Street Firms Are Considering A Mass Exodus From New York

Wall Street is about to see a mass exodus.

Firms in New York’s financial district are facing an onslaught of headwinds amounting to great reasons to simply pick up and leave: employees working from home, unused office space, a mayor who has squelched law and order in the city and a state legislature obsessed with taxation, just to name a few.

That’s why we weren’t surprised when Bloomberg reported that New York’s financial and professional-services industries are considering eliminating up to 20% of their footprint in the city.

About 25% of employers are considering paring their footprint in the city by at least 20% and about 16% expect to move jobs out of the city, according to a study conducted by the Partnership for New York City.

Companies are only expecting that 10% of their employees will return to the office this summer. That number only bumps up to 40% by the end of 2020. City and state tax revenue losses could exceed $37 billion during the next two years as a result, to which we say good, maybe it’ll give the state’s politicians less terrible ideas – like Elon Musk’s “Solar Roof” factory in Buffalo – to piss away taxpayers’ hard earned money on.

The city’s economy could shrink by as much as 13% this year, the study predicts. It also found that aside from Covid-19 safety, the most important issues in the city are “aiding small and minority-owned businesses; improving online education and job training; producing affordable housing; reforming budgeting and taxes; and advancing renewable energy, digital infrastructure and freight-delivery optimization.”

Recall, we wrote yesterday about New York Democrats seeking to tax stock trades in the state. “It’s no wonder thousands of hedge fund managers are leaving the city for far more hospitable places like Florida,” we commented.

The proposed bill is arguing for a 1.25 cent tax on the sale of stock worth $5 or less and a tax of up to 5 cents for stock worth over $20 per share.

Also, just days ago we noted that apartment buildings nearest the city’s biggest and most prominent office towers were plunging in price, offering up ominous foreshadowing for commercial real estate in the city. Bloomberg found that the “office you never go to anymore” appears to not only be abandoned, but a black hole for the surrounding apartment prices.

In comparing rental listing prices, Bloomberg’s report found that:

  • Manhattan had the biggest share of rental listings discounted from their original asking price in the second quarter
  • The Flatiron area had the borough’s largest portion of reductions, with 45%
  • In Midtown West and the Financial District, 40% and 42% of apartments got price cuts, respectively
  • Outermost sections of Brooklyn and Queens had much lower rates of discounting in the quarter
  • The share was 8.6% in Brooklyn’s Coney Island
  • In Queens, 13% of Flushing rentals were reduced

 

To map the discounts, Bloomberg has created an interactive map that allows viewers to compare things like median sale price, price change, listing discount and several other factors for nearly any neighborhood in New York.

You can view the interactive map, in full, here.

end

Dr Harvey Risch is correct:  HCQ could save countless lives if widely deployed

(zerohedge)

Yale Epidemiologist: Hydroxychloroquine Could Save 100,000 Lives If Widely Deployed

Yale epidemiology professor Dr. Harvey Risch told Fox News‘s “Ingraham Angle” that he thinks hydroxychloroquine could save 75,000 to 100,000 lives if widely used to treat COVID-19, and that it’s unfortunate that a “propaganda war” has been waged on the commonly prescribed drug which is not based on “medical facts.”

“There are many doctors that I’ve gotten hostile remarks about saying that all the evidence is bad for it and, in fact, that is not true at all,” Risch said on Monday, adding that he believes the drug should be used as a prophylactic for front-line healthcare workers, as has been done in India.

Researchers at the Henry Ford Health System in Southeast Michigan have found that early administration of hydroxychloroquine makes hospitalized patients substantially less likely to die.

The study, published in the International Journal of Infectious Diseases, determined that hydroxychloroquine provided a “66 percent hazard ratio reduction,” and hydroxychloroquine and azithromycin a 71 percent reduction, compared with neither treatment.

In-hospital mortality was 18.1 percent overall; 13.5 percent with just hydroxychloroquine, 22.4 percent with azithromycin alone, and 26.4 percent with neither drug. “Prospective trials are needed” for further review, the researchers note, even as they concluded: “In this multi-hospital assessment, when controlling for COVID-19 risk factors, treatment with hydroxychloroquine alone and in combination with azithromycin was associated with reduction in COVID-19 associated mortality.” –Fox News

All the evidence is actually good for it when it is used in outpatient uses. Nevertheless, the only people who actually say that are a whole pile of doctors who are on the front lines treating those patients across the country and they are the ones who are at risk being forced not to do it,” Risch added, arguing that the MSM refuses to cover the benefits of the drug, and is actively silencing those trying to address the efficacy of HCQ.

Imagine how many people have died thanks to the media’s ‘propaganda war.’

 END
CHICAGO
A bloodbath:  14 shot at a Chicago funeral home during a memorial for a shooting victim
(zerohedge)

“Bodies Everywhere”: 14 Shot In Chicago Funeral Home During Memorial For Shooting Victim

While US progressive leaders and the mainstream media hypocritically decided many years ago to avert their eyes from the constant deadly violence in the liberal bastion of Chicago, pretending instead that the daily murders in this “gun free” mecca don’t really happen…

… tonight’s events are just too gruesome to be ignore: as CBS Chicago reports,  no less than14 people have been shot and wounded near a funeral home in the Auburn Gresham community. Ironically, the funeral was a memorial service for a homicide victim.

“All we saw was just bodies laying everywhere,” witness Arnita Gerder told NBC Chicago.  “Shot up everywhere, all over. Legs, stomach, back, all over the place. We thought it was a war out here.”

At least 60 shell casings were located at the scene of the shooting.

The shooting took place at 79th & Carpenter streets while a funeral service was taking place. “There was some kind of planned ambush outside the funeral home, where a memorial service was going on for a homicide victim,” the report said.

Officials had previously said that 9 people were transported to hospitals from the scene. The fire department confirmed 2 additional victims were found blocks away, near 63rd Street, getting themselves to the hospital.  One woman was reportedly “shot multiple times”.

People at the scene said that they were inside the funeral home when the shooting started – some were covered in blood after the incident.

CBS 2’s Charlie De Mar spoke to a woman who was part of the funeral and had blood on her jeans; she did not know whose blood it was.

De Mar is told some victims walked into hospitals, and officers even took some victims to hospitals.

One person of interest was being interviewed Tuesday night.

Some law enforcement personnel in military fatigues were also seen according to CBS 2.

Crime statistics indicated there were 13 murders last month in the area, compared with just three in June 2019. There were five murders in the area just last week.  For the broader Chicago area, earlier today CPD revealed the following YTD crime stats:

  • 417 murders in 2020 vs. 275 in 2019.
  • 1654 shootings in 2020 vs. 1125 in 2019.
  • 6 murder victims were ages 1-4 in ‘20.

END

Watch Live: Trump Authorizes “Surge” Of Federal Agents Into Cities Plagued By Violence, Including Chicago

President Trump announced that the lawlessness surging in some US cities – like NYC and Chicago, where the number of shootings have skyrocketed as local police have pulled back –  has inspired him to send in federal law enforcement to cities where violent crimes –  murders, shootings, rapes and of course vandalism – are rapidly rising.

The decision comes as Portland and other ultra-liberal mayors (like Seattle) have said they don’t want federal agents in their cities. The acting DHS head has ordered federal agents to police protests in Portland, as local police had been ordered to hold back as protesters vandalized public property (including a federal courthouse) and pelted cops with rocks, bottles and other projectiles.

Chicago is one city where agents will be sent as part of a federal program that Trump called “Operation Legend”.

“The operation in Chicago will be done as part of Operation Legend, which was recently launched in Kansas City…it was named after a four-year old, Legend Ruggiero, who was shot and killed while he slept,” Trump said. He was joined by the boy;s family members.

During his speech, Trump blamed “local elected leaders” for “abdicating their duty” by undermining police departments, inspiring officers to pull back. Criminals, especially gang members warring for turf, respect or whatever other reason, has swiftly stepped in to the breach.

He also slammed Albequerque New Mexico where a young woman was murdered last year. The woman was the wife and mother of two Texas state police officers.

“We will hire more great police…what cities are doing is insanity…many politicians who want to make their cities less safe have also offered protection to criminal illegal aliens.”

AG Barr, FBI chief Chris Wray, Acting DHS Secretary Chad Wolf and families of crime victims (along with Trump) during the briefing, committing federal resources to tamp down hot spots of local crime, even though – as Barr pointed out – maintaining peace in America’s cities hasn’t traditionally been a federal responsibility.

Watch live:

end

BOEING

More trouble for Boeing as an Ethiopian cargo 787 suffers a major fire in China

(zerohedge)

Ethiopian Airlines Boeing 777 Suffers Major Fire In China

An Ethiopian Boeing 777 freighter caught fire while loading cargo at Shanghai Pudong International Airport in China on Wednesday.

Ethiopian Airlines told Bloomberg in an emailed statement that the freighter “was on regular cargo service from Shanghai to Sao Paulo-Santiago.” The statement said the plane’s crew and ground workers are safe and no injuries have so far been reported. Local authorities are investigating the incident, the airliner added.

Photos and videos of the incident are circulating on Chinese social media. The fire appears to have started on the main cargo deck and burnt through the fuselage.

Here’s an up-close video of the Boeing freighter on fire.

Twitter handle Phil Heard tweeted a similar incident that occurred on an Ethiopian 787 Dreamliner back in 2015.

Twitter handle FATIII Aviation tweeted, “no aircraft taking off or approaching at the moment” at Shanghai Pudong.

Boeing shares are lower on Wednesday premarket as an overnight report via The Wall Street Journal said passenger flights of its 737 Max won’t resume until early 2021.

end

New poll suggests that white Americans now oppose the Black Lives Matter Movement.

They recognize the Marxist movement

Watson/Summit News

New Poll Shows More White Americans Now Oppose Black Lives Matter Than Support

Authored by Paul Joseph Watson via Summit News,

After enjoying a surge in support following the death of George Floyd, a new polls reveals that a majority of white Americans now oppose the Black Lives Matter movement.

The survey, conducted by Civiqs, shows that in early June, 44 per cent of white Americans supported BLM and 34 per cent opposed it.

However, those numbers have now changed, with 41 per cent supporting BLM and 44 per cent opposing the movement.

Source: Civiqs.com

“This is a return to normalcy more than anything,” commented one Twitter user in response to the poll.

Source: Civiqs.com

The flip in support has no doubt been fueled by almost two months of rioting, looting and statues being torn down across America.

Despite the public now turning against the movement, giant corporations continue to virtue signal in support of BLM, although Red Bull bucked that trend by firing two directors who had tried to pressure the company to take a pro-BLM stance.

The founders of BLM openly state that the movement is about overthrowing capitalism, the “patriarchy” and western enlightenment ideals in general.

While many leftists would support that, it seems as though the majority of Americans don’t.

*  *  *

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end

CHINA/VS USA

USA unanimously votes to bar TikTok from USA devices used by Federal employees. Naturally China would be very upset!

(zerohedge)

Senate Committee Unanimously Votes To Bar TikTok From Devices Issued To Federal Employees

Just hours after Washington’s order to shutter a Chinese consulate in Houston triggered a panicked document fire on the building’s balcony, the Senate’s Homeland Security Committee voted unanimously on Wednesday to approve a bill (put forth by Missouri Sen Josh Hawley) barring the social media app TikTok from being installed on smartphones used by federal employees on federally-issued devices.

Sen. Hawley

TikTok’s Chinese ownership and explosive popularity in the US have led to several companies to reportedly bar employees from installing the app on corporate-issued devices, due to fears – so far mostly unsubstantiated – that Beijing is using the app for widespread spying and data collection, Reuters reports.

In a statement from his press office, Hawley said that many federal agencies have already recognized the threat posed by TikTok.

The White House has discussed banning the app outright (something that has been ruled out for being too controversial) and the DoJ and FTC have launched investigations into data privacy abuses involving children.

Oh, and WSJ published this bizarre story about the app promoting American teens for pledging fealty to Beijing.

Bill Blain on what is bothering him today.:

Bill Blain…..

Blain: It’s Never Been Easier For Zombie Companies To Survive…

Authored by Bill Blain via MorningPorridge.com,

“They had to build a special runway just to get him down.”

It seems like every day there is another high street shock – a well-known retail brand giving up the struggle.  The coronavirus has sped up a Darwinian shift towards online shopping.  The rot has spread to owners of shopping malls and high-street property.  Yet, we aren’t seeing a similar capitulations across other sectors impacted by the virus – particularly transport and travel.  Markets are pricing for these sectors to stage pretty much a full recovery. 

In normal markets what makes companies tick is cash flow – if a company doesn’t generate cash and has bills to pay… that’s a problem.  Not any more..  The rules have changed…  Liquidity is so plentiful there is an assumption companies can simply keep borrowing to see themselves out the Virus crisis.  Debt apparently does not matter.  Liquidity has never been so easy due to QE Infinity, Negative Interest Rates and multiple Virus Bailouts.

Right or wrongly, it’s never been easier for Zombie companies to survive on the simple assumption they can keep borrowing.  It’s a circular argument.  As long as interest rates remain low, then they can simply leverage up.  If they can borrow, they can borrow more. And, that’s quite extraordinary bearing in mind how many highly leveraged companies are generating zero cash flow due to the pandemic..

You are probably thinking.. that sounds dangerous…” 

What if the assumptions behind all that debt are wrong?  Bad assumptions have been the catalyst for all the great credit market crashes.  I remember the Great Perp Crash of 1986 – when investors mistakenly assumed banks would honour calls on cheap subordinated debt.  When someone pointed out banks were under no obligation to repay effectively free capital early… the market tumbled 20-30%.

It was the questionable assumptions underlying Mortgage Backed lending that triggered the 2007/08 Global financial crisis.

Right now I’m thinking about the over $200 bln that’s been raised in emergency funding by airlines, shipping companies and other issuers involved in those sectors most heavily impacted by the Coronavirus.  Much of that money has been raised on a secured basis: including planes and cruise ships.  We still don’t know just how quickly, if at all, these sectors will reopen.  It’s clear there is a glut of the underlying assets – raising questions about valuations. Yet, these recent Covid Asset-Backed funding deals have been tightening in line with the general credit market!

For anyone holding the Carnival Cruise Lines Loan and Bond issues, or who invested in the Royal Caribbean bailout, this morning’s photo is some boats similar to the assets backing your investment.  I snapped it as we passed eight cruise liners lying at anchor off Portland on the South Coast of England last week. Earlier the same day we’d sailed past more of these ocean behemoths lying idle off Bournemouth. 

I wonder what sort of future exists for these ghost fleets?  Will they end up like the German High Seas fleet rotting on the bottom of Scapa Flow?

It doesn’t take a genius to figure out that all these cruise liners must be costing someone a pretty penny.  A cruise liner costs around $10mm a month to run in “warm storage” – and Carnival has over 100 of them. None of them is earning a penny.

Cruise liner bosses say demand for cruises remains robust. Apparently more than 50% of passengers are taking the option of deferring refunds to take deals like a 125% credit on future bookings when cruising starts again. There was a surge in demand when a limited August series of cruises from Florida was announced – whether they happen is another matter as cruising has now been banned in US through September.

Even after putting boats on sale, and looking to scrap others, Carnival is still burning more than six hundred million dollars per month just to stay, ahem, “afloat”. It’s been to markets repeatedly – raising a $4 bln bond in April at 11%, then $2 bln from the loan market, and came back for another $1.3 bln bond deal last week. Although the company says its solvent for at least a year, I must be missing something. I think it will back again for more cash before October/November… They will say something like: “we’re borrowing now because we can, not because we are forced to..” but under that calm exterior, the cruise line will be paddling furiously!

Interestingly the second bond, is also secured but subordinated to the first deal (but is still senior secured to Carnival’s senior debt!!). That infers massive overcollateralization of the underlying assets – the perceived value of these cruise ships moored up in the English Channel. The second deal also carries a lower coupon, reflecting the fact Carnival’s April bond issue has tightened nearly 9 price points since launch.

Marvellous, but the price tightened in line with market because while the company might now be junk-rated, but still counts as Investment Grade for Fed purposes. If you accept that premise, I’ve a host of similarly asset secured bonds you might like to buy…

Carnival is still bleeding cash, with zero income and mounting bills, and its interest payments on new borrowing must be getting on for $70mm per month? Selling boats might be an option – if anyone was buying! Faced with a feast of unwanted cruise ships, scrap dealers are going to cut their bids to the bone.

None of that matters… the market is making assumptions around Carnival being able to keep borrowing, the Coronavirus being short-lived, and Carnival will soon deliver to the pent-up customer demand for cruises, thus make enough money to cover its debt load again.

But, even if Carnival could get itself fully functional tomorrow on the back of a vaccine or a similar miracle, the state of these boats sitting in the English Channel laid up isn’t great. Up close they look rusty and tired. Passengers go on cruises for their opulence –  they don’t do scruffy and in need of a lick of paint.

Before they sail again, all these boats will require substantial refurbishment. The companies will have to go recruit and retrain crew, (don’t imagine all the Filipino crew who get treated like indentured labour are desperate to return.) The boats will need re-provisioning and restocking. Just bunkering them (fuelling up) will take time and logistical planning to get cruising businesses functional again.

It’s not just cruise liners that are going stale. 

The aircraft optimistically parked on wet runways in Ireland and the UK for a few weeks back in March are going to require major recertification and work to put back in the air. That’s why most aircraft get stored in dry desert bone-yards. Much of the airport infrastructure is also going stale. Flying is not going to get any easier – it’s going to become increasingly bureaucratic! 

(Years ago they built a magnificent airport with a suspiciously long runway out in Knock, Nowheresville, Ireland… an astute priest got it built to facilitate pilgrimages to see a moving statue (or did it bleed?) in his church, but we suspect NATO wanted somewhere to land B52s if things got unpleasant with the Ruskies. Now they’ve finally found a use for the airport – its become a site for scrapping A380s! Sad….) 

Boeing is in a similar mess as Carnival. There is not an airline on the planet that wants new planes – when so many are for sale cheap! Boeing managed to avoid a bailout, and took $26 bln from the bond market. But it’s still not shifting the grounded B-737 Max – which looks like it may get permission to fly again in October, but no one is really wanting to fly it anymore. It’s still building 787 Dreamliners – but the order book is pretty bare.  Boeing’s new aircraft, the B-777x isn’t on any airlines wish-list. Yet, Boeing’s stock price (which is the worst performer on S&P) is still 80% up on its nadir in March. I can’t think of a single positive thing to say about the plane maker. And its bonds have tightened… why? Oh.. because that is the way the market works…

My point is the market is making assumptions about the future value of companies and their assets that don’t seem rational in this new uncertain world. The underlying assets aren’t standing the test of time, the weather and the looming recession. Factor crashing real asset values into your investment equations.

end

CORONAVIRUS/UPDATE/USA

California Passes New York With Biggest COVID-19 Outbreak In The US: Live Updates

Summary:

  • California passes NY in COVID-19 case total
  • US pays $2BN for 100M doses of Pfizer-BioNTech vax candidate
  • Florida releases latest numbers

* * *

After suffering the biggest single-day jump in deaths since May 29

…the US has reached yet another disappointing COVID-19 milestone as California’s case tally has officially passed that of New York, meaning the most populous state in the US is now also the state with the biggest COVID-19 outbreak.

According to the AP’s count, California’s confirmed coronavirus cases have hit 409,370, surpassing New York’s total (note: totals differ between different sources). JHU data showed Cali’s Wednesday morning total was 1,200 more than NY’s.

However, New York’s 72,302 death toll is far larger than California’s. In fact, it’s not just larger, it’s 9x larger than California’s tally. NY’s infection rate per 100,000 people is also twice California’s (which is unsurprising since Cali has 2x the population). California is far and away the most populous US state, with nearly 40 million people, while New York has about 19.5 million.

After California and New York, Florida occupies the No. 3 spot with about 370k cases, and Texas comes in 4th with 350k. In other news, Florida has just reported its latest daily COVID-19 tallies.

  • FLORIDA COVID-19 CASES RISE 2.6% VS. PREVIOUS 7-DAY AVG. 3.5%

The other piece of major COVID-19-related news from this morning: the US has agreed to pay $2 billion for 100 million doses of an as-yet-unproven COVID-19 vaccine from Pfizer and BioNTech.

iv) Swamp commentaries)

Corruption continues as the Republican Ohio speaker of the House is arrested along with 4 others in a 60 million bribery scheme. The scheme added a new fee to every electricity bill in the state of Ohio.

Ohio House Speaker Arrested In $60M Bribery Scheme Which Added New Fee To Every Electricity Bill In State

A massive corruption scandal being described as the “largest bribery, money-laundering scheme ever perpetrated against the people of the state of Ohio” — to the tune of $60 million, has just rocked the Buckeye state.

On Tuesday the Republican Ohio House Speaker Larry Householder along with four others were arrested for being allegedly part of a scheme to pass legislation for a billion dollar bailout of two failed Ohio nuclear plants which were on the brink of permanent closure. Householder is widely looked upon as Ohio’s third most powerful and influential lawmaker.

Federal agents raided his farm Tuesday morning and made the arrest. The AP has described the top Ohio lawmaker as a “driving force” behind the uphill battle to controversially bail out the state’s two nuclear power plants at a significant expense to taxpayers.

 

Ohio House Speaker Larry Householder, via AP

Householder’s adviser Jeffrey Longstreth was also arrested, as well as lobbyist Neil Clark, and former Ohio Republican Party Chairman Matthew Borges and Juan Cespedes of Columbus-based consulting firm The Oxley Group.

It appears a classic pay-to-play scandal, but in this case so vast that it is sure to enrage every single Ohioan that pays an electricity bill, considering, according to Axios that—

“Householder was one of the driving forces behind the nuclear plants’ financial rescue, which added a new fee to every electricity bill in the state and directed over $150 million a year through 2026 to the plants near Cleveland and Toledo.”

Ohio Gov. Mike DeWine has called on Householder to resign immediately given the enormity of the charges against him. The linchpin in the government’s case against the five is incriminating statements made during a sting while meeting with undercover agents.

An 80-page criminal complain involving a large-scale FBI investigation details the schemers were engaged in an enterprise which shuffled millions into Householder’s pockets to assist in his bid to secure his position as Ohio House speaker.

In turn he helped push through “House Bill 6, a billion-dollar bailout that saved two failed, Ohio nuclear power plants from closing,” according to the criminal filing.

Given that much money and the significant length of time, it’s clear it must have involved many more players; indeed, the FBI says more arrests are coming as part of the probe.

The reality is this: Ohioans will not see this as somehow “remote” – given that not only through state taxes, but especially through the “added fee” to each electricity bill as a result of House Bill 6’s passage, they’ll be on the hook for this for years to come.

end
My goodness: how low can you go:  St. Louis Prosecutor’s office is busted for altering evidence: they reassembled a non operable McCloskey pistol in order to classify it as lethal
(zerohedge)

St. Louis Prosecutor’s Office Busted Altering Evidence; Reassembled Non-Operable McCloskey Pistol To Classify As Lethal

The pistol Patricia McCloskey waved at protesters who broke down a gate to trespass on their private street was a non-operable ‘prop’ used during a lawsuit they were involved in, so a member of Circuit Attorney Kim Gardner’s staff ordered the crime lab to disassemble and reassemble the gun – allowing them to classify it as “capable of lethal use” in charging documents filed Monday, according to KSDK5.

In Missouri, police and prosecutors must prove that a weapon is “readily” capable of lethal use when it is used in the type of crime with which the McCloskeys have been charged.

Assistant Circuit Attorney Chris Hinckley ordered crime lab staff members to field strip the handgun and found it had been assembled incorrectly. Specifically, the firing pin spring was put in front of the firing pin, which was backward, and made the gun incapable of firing, according to documents obtained by 5 On Your Side.

Firearms experts then put the gun back together in the correct order and test-fired it, finding that it worked, according to the documents. –KSDK5

According to the report, crime lab workers photographed the disassembly and reassembly of the pistol.

The McCloskeys attorney, Joel Schwartz, told KSDK that the St. Louis couple intentionally misplaced the firing pin on the gun, rendering it inoperable. They turned the pistol in to their former attorney Al Watkins following the incident last month.

“It’s disheartening to learn that a law enforcement agency altered evidence in order to prosecute an innocent member of the community,” said Schwartz.

end

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

European Union leaders reach deal on 750 billion-euro virus recovery fund…

    Landmark package includes joint debt to help offset slump

    Emergency cash split between grants, low-interest loans

The emergency fund will give out 390 billion euros of grants and 360 billion euros of low-interest loans. Almost a third of the funds are earmarked for fighting climate change and, together with the bloc’s next 1 trillion-euro, seven-year budget, will constitute the biggest green stimulus package in history…

https://trib.al/mxssRh9

Gold rallied 1.4% and silver soared 6.8% on the EU bailout package.  Remember, silver outperforms gold in inflationary environments.

Well that is all for today

U.S. smartphone sales fell 25% in Q2, 9to5Mac reports

In Q2, U.S. smartphone sales fell 10% y/y for Samsung (SSNLF) and 23% for Apple, with U.S. smartphone sales down 25% overall, 9to5Mac’s Chance Miller reports, citing Counterpoint Research…

https://thefly.com/landingPageNews.php?id=3128495

Florida Governor Ron DeSantis Calling for Investigation into Claims People Are Testing ‘Positive’ for Coronavirus Who Never Got Tested     https://rairfoundation.com/florida-governor-ron-desantis-calling-for-investigation-into-claims-people-are-testing-positive-for-coronavirus-who-never-got-tested/

GOP Sen. Josh Hawley @HawleyMO: I challenge every major American corporation making products overseas in China or elsewhere to pledge that they are #slavefree, that they DO not and WILL not rely on forced, slave labor…@NBA [commissioner] Adam Silver will you pledge your corporation is slave free?

@Nike will you pledge you are #slavefree? @KingJames will you pledge your  @Nike product lines are #slavefree? [The NBA has created a huge social justice hypocrisy problem of its own making.]

Feds indict two Chinese nationals for allegedly trying to hack, steal coronavirus research

https://justthenews.com/government/security/chinese-hackers-indicted-doj-charges-include-attempting-steal-coronavirus

Trump shifts tone on pandemic in U.S., saying it will probably ‘get worse before it gets better’

“It will probably, unfortunately, get worse before it gets better,” he told reporters at a coronavirus briefing held at the White House. “Something I don’t like saying about things, but that’s the way it is.”

    “If you’re close together, I would put on the mask,” Trump said. “… I’m getting used to the mask. And the reason is I think about patriotism — maybe it is. It helps. It helps.”…

https://www.washingtonpost.com/nation/2020/07/21/covid-live-updates-us/

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

   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[Why is this not in MSM reports?  Yea, we know why.]

https://m.jpost.com/health-science/hebrew-u-scientist-drug-could-eradicate-covid-19-from-lungs-in-days-635028/amp

Science says (again): Open the schools

The prestigious National Academies of Science, Engineering and Medicine are the latest to issue a report calling for in-person instruction, saying remote learning is simply ineffective for younger and special-needs students. That echoes last month’s similar advisory from the American Academy of Pediatrics.  “Weighing the health risks . . . against the educational risks,” the new report says, “school districts should prioritize reopening schools full time, especially for grades K-5 and students with special needs.”

https://nypost.com/2020/07/19/science-says-again-open-the-schools/

@thehill: Gov. Andrew Cuomo: “We now have people coming to New York, fleeing the other states because it’s the ‘safe’ state.”

Ex-NYPD Chief @BernardKerik: He is either delusional or smoking crack! New York is not a safe state, and NO ONE is coming to New York from somewhere else. They can’t afford the taxes, and they’re worried about living through the experience – literally.

@DC_Draino: Did you know? COVID deaths in New York (32K+) are more than *double* all the deaths in California, Texas, and Florida COMBINED! Cuomo is a disaster!

WH Com Official @_WilliamsonBen: I’m very interested by this theory that the President has no authority to respond to violent riots in American cities (particularly around federal property), but apparently should announce a nationwide mask mandate and enforce it

GOP Senator @JohnCornyn: New York’s Mail-Vote Disaster: Almost a month after the election, nobody knows who won. –WSJ   https://t.co/ePhjWp761y

 

Michigan School Fires Popular Teacher for Saying ‘Trump Is Our President’

Parents, students praise ‘apolitical,’ ‘supportive’ teacher

    Other Walled Lake teachers have expressed their political views without any repercussions. Paulette Loe, a now-retired Walled Lake Western teacher, encouraged students to read an article from the Atlantic about “how to beat Trump” while still employed. Nicole Estes, a kindergarten teacher in the district, called Trump a “sociopath” and a “narcissist” on Facebook in 2016 and is still employed at Keith Elementary School. Neither Loe nor Estes responded to requests for comment…

https://freebeacon.com/campus/mi-school-fires-popular-teacher-for-saying-trump-is-our-president/

 

Biden Proposes $775 Billion Plan Funded by Real Estate Taxes

  • Democratic program would bolster care for children [universal pre-K], elderly
  • Proposal would target ‘like-kind’ real estate exchanges

The Biden campaign did not fully explain how the plan for a “caring economy” would be financed, but officials highlighted some tax breaks they would seek to eliminate to raise revenue.

https://www.bloomberg.com/news/articles/2020-07-21/biden-proposes-775-billion-plan-funded-by-real-estate-taxes

 

@TrumpWarRoom: Joe Biden again refuses to take questions from reporters.

 

Biden, at Muslim voters summit, says ‘I wish we taught more in our schools about the Islamic faith’

https://www.foxnews.com/politics/biden-muslim-voters-summit-taught-schools-islamic-faith.amp

 

Expressway shootings have surged in the Chicago area this year…The Illinois State Police have recorded 61 expressway shootings in Cook County this year. That compares with 52 for all of 2019, 43 in 2018, 51 in 2017 and 54 in 2016…

https://www.chicagotribune.com/news/breaking/ct-chicago-expressway-shootings-police-cameras-20200720-u5oxevrp5jahxi7zz6y7ej37ee-story.html

 

Trump says “the game is over for me” if he sees a player kneel during the national anthem

https://www.cbsnews.com/news/trump-anthem-kneel-sporting-event-support/

 

Star of David deemed ‘hateful imagery’ by Twitter – Twitter users found themselves locked out of their accounts after using the Star of David in their profile images

https://www.jpost.com/diaspora/antisemitism/star-of-david-deemed-hateful-imagery-by-twitter-635847

 

Babylon Bee [parody site]: Poll: Biden Leading in Several Key Battleground Cemeteries

84% of the respondents said they would be voting for the Democratic challenger, while 2% said they would support incumbent Donald Trump…

https://babylonbee.com/news/biden-leading-in-key-battleground-cemeteries

 

Up To 16 People Shot Near Funeral Home in Auburn Gresham [Chicago’s Southside – as we write]

https://chicago.cbslocal.com/2020/07/21/sources-multiple-people-shot-near-funeral-home-in-auburn-gresham/

 

Reportedly over 60 rounds were fired (appears to be gang retaliation).  On Monday, Chicago Mayor Lightfoot slammed Trump for announcing that he is sending federal law enforcement to Chicago.

 

@ThomasSowell: One of the mysteries of the ages is why the political left has, for centuries, lavished so much attention on the well-being of criminals and paid so little attention to their victims.

 

To determine the true rulers of any society, all you must do is ask yourself this question: Who is it that I am not permitted to criticize

END

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

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