JULY 28//GOLD CONTINUES TO GAIN: UP $13.25 TO $1948.85//SILVER DOWN 14 CENTS AS WE FINISH WITH COMEX EXPIRY//MINT SLOWS DOWN GOLD AND SILVER COIN SALES//CHINA VS USA//EUROPE VS USA//CORONAVIRUS UPDATE//SWAMP STORIES//

GOLD: $:  1948.85  UP $13.25  The quote is London spot price (cash market)

This is an all time high

 

 

 

 

 

Silver:$24.17// DOWN 14 CENTS  London spot price ( cash market)

 

Today is the final day for options expiry for comex gold/silver.  The London boys were in big time buying gold and silver at discount prices.

your data:

 

Closing access prices:  London spot

i)Gold : $1958.20  LONDON SPOT  4:30 pm

 

ii)SILVER:  $24.35//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

OCT GOLD:  $1951.70  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE OCT /: $2.85  ($0 ABOVE NORMAL CONTANGO)

DEC. GOLD  $1963.10   CLOSE 1.30 PM      SPREAD SPOT/FUTURE DEC   $14.25   ($2.25 ABOVE NORMAL CONTANGO)  OR .03% ABOVE CONTANGO OR EXCESS CONTANGO)

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $24.17…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  0 CENTS  PER OZ

 

 

 

COMEX DATA

 

 

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

receiving today: 116/342

issued:  3

EXCHANGE: COMEX
CONTRACT: JULY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,931.000000000 USD
INTENT DATE: 07/27/2020 DELIVERY DATE: 07/29/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
159 C ED&F MAN CAP 1
363 H WELLS FARGO SEC 150
657 C MORGAN STANLEY 53
657 H MORGAN STANLEY 225
661 C JP MORGAN 3 116
690 C ABN AMRO 74
732 C RBC CAP MARKETS 21
878 C PHILLIP CAPITAL 1
905 C ADM 40
____________________________________________________________________________________________

TOTAL: 342 342
MONTH TO DATE: 8,781

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 342 NOTICE(S) FOR 34,200 OZ  (1.063 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  8781 NOTICES FOR 878100 OZ  (27.312 TONNES)

 

 

SILVER

 

FOR JULY

 

 

469 NOTICE(S) FILED TODAY FOR 2,345,000  OZ/

total number of notices filed so far this month: 16,239 for 81.195 MILLION oz

 

BITCOIN MORNING QUOTE  $10,985  DOWN 66

 

BITCOIN AFTERNOON QUOTE.: $10,991 DOWN 39

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $13.25 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/// A DEPOSIT OF 5.84 TONNES OF GOLD ADDED TO THE GLD//

 

 

 

GLD: 1,234.65 TONNES OF GOLD//

 

WITH SILVER DOWN 14 CENTS TODAY: AND WITH NO SILVER AROUND:

 

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV:

A MASSIVE DEPOSIT 7.52 MILLION OZ//

 

 

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 566.299  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A SMALL SIZED 459 CONTRACTS FROM 185,705 UP  TO 186,588, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE SMALL SIZED GAIN IN  OI OCCURRED DESPITE OUR HUGE $2.67 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 HUMONGOUS INCREASE  IN SILVER STANDING  AT THE COMEX FOR JULY.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 3351 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 STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 0  AND SEP 2692′ DEC:  200 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2892 CONTRACTS. WITH THE TRANSFER OF 2892 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 2892 EFP CONTRACTS TRANSLATES INTO 14.46 MILLION OZ  ACCOMPANYING:

1.THE 267 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

85.17 MILLION OZ INITIALLY IN JULY.

 

MONDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 267 CENTS ).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE SMALL GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A HUGE INCREASE IN STANDING OF SILVER OZ STANDING FOR JULY,  HUGE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 3351 CONTRACTS OR 16.755 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:

22,855 CONTRACTS (FOR 19 TRADING DAY(S) TOTAL 22,855 CONTRACTS) OR 114.275 MILLION OZ: (AVERAGE PER DAY: 1502 CONTRACTS OR 7.513 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY: 114.275 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 16.32% 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:          1,251.69 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                               114.285 MILLION OZ/ (EXCHANGE FOR PHYSICALS STARTING TO RISE EXPONENTIALLY AGAIN)

 

 

 

RESULT: WE HAD A SMALL SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 459, DESPITE OUR VERY STRONG 267 CENT GAIN  IN SILVER PRICING AT THE COMEX ///MONDAYTHE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 2892 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 VERY STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  3351 CONTRACTS (WITH OUR HUGE $2.67 CENT GAIN IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 2892 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A SMALL SIZED INCREASE OF 459 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A $2.67 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $24.31 // MONDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.9305 BILLION OZ TO BE EXACT or 132% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JULY  DELIVERY MONTH/ THEY FILED AT THE COMEX: 469 NOTICE(S) FOR 2,345,000  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 85.17 million oz
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

AND YET, WITH THE EXTREMELY HIGH EFP ISSUANCE, WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT)

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A GOOD SIZED 3387 CONTRACTS TO 610,722 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 GOOD SIZED GAIN OF COMEX OI OCCURRED WITH OUR STRONG RISE IN PRICE  OF $35.30 /// COMEX GOLD TRADING// MONDAY// WE  HAD HUGE BANKER SHORT COVERING, ANOTHER HUGE SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX FOR JULY, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A GOOD EXCHANGE FOR  PHYSICAL ISSUANCE AND THE CONTINUATION OF GOLD SPREADER LIQUIDATION. THIS ALL HAPPENED WITH OUR STRONG GAIN IN PRICE OF $35.30 .

 

WE HAD A VOLUME OF 0    4 -GC CONTRACTS//OPEN INTEREST  58

 

WE GAINED A  HUMONGOUS SIZED 17,264 CONTRACTS  (53.66 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUGE SIZED 13,877 CONTRACTS:

CONTRACT .; AUG 6504 AND OCT: 451 DEC: 300; FEB: 6922  ALL OTHER MONTHS ZERO//TOTAL: 13,877.  The NEW COMEX OI for the gold complex rests at 610,722. 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 EXCHANGE 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 HUMONGOUS SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 17,264 CONTRACTS: 3387 CONTRACTS INCREASED AT THE COMEX AND 13,877 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 17,264 CONTRACTS OR 53.66 TONNES. MONDAY, WE HAD A GAIN OF $35.30 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 53.66 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 $35.30).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 HUGE SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (13,877) ACCOMPANYING THE SMALL SIZED GAIN IN COMEX OI  (5628 OI): TOTAL GAIN IN THE TWO EXCHANGES:  17,264 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)ANOTHER STRONG  INCREASE IN GOLD  STANDING AT THE GOLD COMEX FOR THE FRONT JULY MONTH,  3) ZERO LONG LIQUIDATION; 4) SMALL COMEX OI LOSS AND .5) HUMONGOUS EXCHANGE FOR PHYSICAL ISSUANCE 6) CONTINUAL STRONG GOLD SPREADER LIQUIDATION... AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//MONDAY//$35.30.

 

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 : 87,496 CONTRACTS OR 8749600 oz OR 272.14 TONNES (19 TRADING DAY(S) AND THUS AVERAGING: 4605 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 19 TRADING DAY(S) IN  TONNES: 272.14 TONNES

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

THUS EFP TRANSFERS REPRESENTS 272.14/3550 x 100% TONNES =7.66% 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   3223.18  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;                       272,14 TONNES SO FAR..(EXCHANGE FOR PHYSICALS REVERSE COURSE AND ARE NOW INCREASING!)

 

 

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 SMALL SIZED 459 CONTRACTS FROM 186,129 UP TO 186,588 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 SMALL SIZED GAIN IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)   HUGE BANKER SHORT COVERING , 2) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A HUGE INCREASE STANDING AT THE SILVER COMEX FOR JULY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 2892 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: 2692 AND DEC. 200 AND  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2892 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 459  CONTRACTS TO THE 2892 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 3351 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES  16.755 MILLION  OZ, OCCURRED WITH OUR 267 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)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 22.73 POINTS OR 0.71%  //Hang Sang CLOSED UP 169.50 POINTS OR 0.69%   /The Nikkei closed DOWN 58.47 POINTS OR 0.26%//Australia’s all ordinaires CLOSED DOWN .37%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0024 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0024 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0064 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 ABOVE 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 SMALL  SIZED 3387 CONTRACTS TO 610,722 MOVING CLOSER TO OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS GOOD COMEX INCREASE OCCURRED DESPITE OUR STRONG  GAIN OF $35.30 IN GOLD PRICING /MONDAY’S COMEX TRADING//). WE ALSO HAD A HUGE EFP ISSUANCE (13,877 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS  INCREASE IN STANDING AT THE GOLD COMEX//JULY DELIVERY MONTH (SEE BELOW) AND CONTINUATION OF SPREADER LIQUIDATION , …  AS WE ENGINEERED A HUGE GAIN ON OUR TWO EXCHANGES OF 17,264 CONTRACTS WITH GOLD’S  GAIN IN PRICE. NORMALLY WE HAVE LATELY  SEEN THE EXCHANGE FOR PHYSICALS ISSUED  TO BE SMALL.. AS IT JUST TOO COSTLY FOR THEM TO CONTINUE SERVICING THE COSTS OF SERIAL FORWARDS CIRCULATING IN LONDON.  NOT TODAY..THEY JUST HAVE NO CHOICE….FOR THE FIRST TIME IN THREE OR FOUR MONTHS WE FINALLY HAVE A HUGE ISSUANCE OF THESE EXCHANGE FOR PHYSICALS.

 

 

(SEE BELOW)

 

 

WE  HAD 0    4 -GC VOLUME//open interest REMAINS AT 58

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED A HUGE SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 13,877 EFP CONTRACTS WERE ISSUED:  AUG  6564 , OCT: 451  DEC 6922; FEB 00 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 13,877 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: 172645 TOTAL CONTRACTS IN THAT 13,877 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED 3387 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A GOOD AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR GOOD COMEX OI GAIN,  A STRONG INCREASE IN  GOLD TONNAGE STANDING FOR THE JULY DELIVERY (SEE CALCULATIONS BELOW)…  ZERO LONG LIQUIDATION, AND CONTINUING  SPREADER LIQUIDATION……AND WITH ALL OF THE ABOVE WE HAD A VERY STRONG GAIN IN COMEX PRICE OF 35.30 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $35.30).  AND, THEY WERE UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A STRONG 53.66 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 17,264, CONTRACTS OR 1,726,400 OZ OR 53.66 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:  610,722 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 61.07 MILLION OZ/32,150 OZ PER TONNE =  1899 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1899/2200 OR 86.31% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 593,067 contracts// huge volume//

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  607,330 contracts//  volume  huge //most of our traders have left for London

 

 

JULY 28 /2020

JULY GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
15,861.05 oz
HSBC
Deposits to the Dealer Inventory in oz NIL oz

 

 

 

Deposits to the Customer Inventory, in oz  

57,871.800

OZ

BRINKS

 

1800

KILOBARS

No of oz served (contracts) today
342 notice(s)
 34,200 OZ
(1.063 TONNES)
No of oz to be served (notices)
2 contracts
(200 oz)
0.0062) TONNES
Total monthly oz gold served (contracts) so far this month
8781 notices
878,100 OZ
27.312 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 1 deposit into the dealer

i) Int the dealer Brinks:  18,054.263 oz

 

 

 

total deposit: 18,054.263 oz

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 2 deposit into the customer account

 

 

i) Into HSBC:  32,150.000  oz

1000 kilobars

 

 

 

 

total deposit:  85,509.770 oz

 

 

we had 2 gold withdrawals from the customer account:

i) out of HSBC: 1557.05

ii) out of Scotia:  4427.155 oz

total withdrawals;  5984.205 oz

 

 

We had 1  kilobar transactions  +

 

ADJUSTMENTS: 4 //

 

dealer to customer

Brinks:  2411.325 oz

and Malca: 22,955.824 oz

 

customer to dealer (eligible to registered)

HSBC: 58,339.640 oz

Scotia: 38,402.540 oz

 

 

 

 

 

 

 

 

The front month of JULY registered a total of 344 oi contracts FOR a LOSS of 180 contracts. We had 480 notices served on MONDAY so we GAINED ANOTHER 300 contracts or an additional 30,000 oz will stand for delivery as they refused to morph into London based forwards. Somebody was badly in need of some gold to put out fires elsewhere!

 

 

Next comes August and another strong delivery month and here the OI  FELL BY A LARGE 49,623  contracts DOWN to 140,744 contracts, as we continue our countdown to first day notice. We have 3 more reading days before first day notice.

 

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 265 contracts to stand at 1,963.  Oct GAINED 8005 contracts UP to 59,839. (The boys still prefer August)

 

We had 342 notices filed today for  34,200 oz

 

FOR THE JULY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 3 notices were issued from their client or customer account. The total of all issuance by all participants equates to 342 contract(s) of which 116 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 (8781) x 100 oz , to which we add the difference between the open interest for the front month of  JULY (344 CONTRACTS ) minus the number of notices served upon today (342 x 100 oz per contract) equals 878,300 OZ OR 27.32 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 (8783 x 100 oz + (344 OI) for the front month minus the number of notices served upon today (342) x 100 oz which equals 878,300 oz standing OR 27.32 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 300 contracts or an additional  30,000 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

271,997.477 oz PLEDGED  JULY 9// 2020  JPMORGAN:  8.46 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:  1,112,365.719 oz                                     34.59 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 385.43 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 27.32 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  13,504,103.185 oz or 420.03 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:  271,997,477, oz (or 8.46 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:  1,112,365.719 oz or 34.59 tonnes
thus:
registered gold that can be used to settle upon:  12,391,738.0  (385.43 tonnes)
true registered gold  (total registered – pledged tonnes  12,391,738.0 (385.43 tonnes)
total eligible gold:  21,671,825.542 oz (674.08 tonnes)

total registered, pledged  and eligible (customer) gold;   35,175,928.27 oz 1094.12 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  967.78 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 28/2020

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
 289,789.339 oz
HSBC
Delaware

 

 

Deposits to the Dealer Inventory
421,896.300 oz
Brinks

 

Deposits to the Customer Inventory
1,166,368.300 oz
CNT
JPMorgan
Scotia
No of oz served today (contracts)
469
CONTRACT(S)
(2,345,000, OZ)
No of oz to be served (notices)
795 contracts
3,975,000 oz)
Total monthly oz silver served (contracts)  16,239 contracts

81,195,000 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 the dealer Brinks:  421,896.300 oz

total dealer deposits: 421,896.300  oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 1 deposits into the customer account

into JPMorgan:   578,604.500 oz

 

 

 

ii) Into CNT  299,867.280 oz

iii) Into Scotia: 287,896.520 oz

 

 

 

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

JPMorgan now has 163.098 million oz of  total silver inventory or 49.34% of all official comex silver. (163.677 million/331.755 million

 

total customer deposits today:  1,166,368.300    oz

we had 2 withdrawals:

 

 

i)Out of HSBC: 788,787.200 oz

 

 

ii) Out of Delaware: 1002.139 oz

 

 

 

 

total withdrawals; 789,789.339   oz

We had 0 adjustments

 

 

total dealer silver: 131.485 million

total dealer + customer silver:  331.755 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of July has an open interest of  1264 contracts, as we GAINED 233 contracts.  We had 92 notices served on MONDAY, so we GAINED 325 contracts or an additional 1,625,000 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 84 contracts FALLING  to 839

The big September contract month sees a LOSS of 2143 contracts down to 135,675.

 

The total number of notices filed today for the JULY 2020. contract month is represented by 469 contract(s) FOR 2,345,000, 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 16,239 x 5,000 oz = 81,195,000 oz to which we add the difference between the open interest for the front month of JULY.(1244) and the number of notices served upon today 469 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JULY/2019 contract month: 16,239 (notices served so far) x 5000 oz + OI for front month of JULY (1264)- number of notices served upon today (469) x 5000 oz of silver standing for the JULY contract month.equals 85,170,000 oz.  (A WHOPPER )//ALL TIME RECORD FOR ONE DELIVERY MONTH (corrected totals from yesterday)

WE GAINED 325 CONTRACTS OR 1,625,000 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 : 258,688 CONTRACTS // volume huge+++/

 

 

FOR YESTERDAY: 206,788.,CONFIRMED VOLUME//volume huge+/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 206,788 CONTRACTS EQUATES to 1,033 million  OZ 147% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 0.93% ((JULY 28/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -1.48% to NAV:   (JULY 28/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.93%

(courtesy Sprott/GATA

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

NAV 19.86 TRADING 19.54///NEGATIVE 1.59

END

 

 

And now the Gold inventory at the GLD/

JULY 28/JULY 27//WITH GOLD UP $13.25 TODAY, WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A HUGE DEPOSIT OF 5.84 TONNES/INVENTORY RESTS AT 1234.65

JULY 27//WITH GOLD UP $35.30 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF XXX TONNES/INVENTORY RESTS AT 1228.81 TONNES

JULY 24/WITH GOLD UP $8.80 TODAY: WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.80 TONNES//INVENTORY RESTS AT 1228.81 TONNES

JULY 23/WITH GOLD UP $24.90 TODAY: WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 7.26 TONNES/INVENTORY RESTS AT 1225.01 TONNES

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 28/ GLD INVENTORY 1234.65 tonnes*

LAST;  868 TRADING DAYS:   +292.83 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 768 TRADING DAYS://+471.30  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JULY 28  WITH SILVER DOWN 14 CENTS TODAY, WE HAD A BIG CHANGE IN SILVER INVENTORY: A DEPOSIT OF 7.52 MILLION OZ//INVENTORY RESTS AT 566.299 MILLION OZ//

JULY 27/WITH SILVER UP $2.67 TODAY, WE HAD NO CHANGES IN SILVER INVENTORY: A DEPOSIT OF XX MILLION OZ//INVENTORY RESTS AT 558.779 MILLION OZ//

JULY 24/WITH SILVER DOWN $0.12 TODAY: NO CHANGE IN SILVER INVENTORY//INVENTORY RESTS AT 558.779 MILLION OZ/

JULY 23/WITH SILVER UP $.04 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// A HUMONGOUS PAPER DEPOSIT OF 9.594 MILLION OZ//INVENTORY RESTS AT 558.779 MILLION OZ///

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 28.2020:

SLV INVENTORY RESTS TONIGHT AT

566.299 MILLION OZ.

end

 

 

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

A must view:  Chris Powell reviews the big changes that are coming to our precious metals market as our bankers have failed in their criminal gold/silver factional reserve system

(Chris Powell/GATA/Silver Bullion)

GATA secretary reviews big changes hinting at failure of fractional-reserve gold banking system

 Section: 

6:53p ET Monday, July 27, 2020

Dear Friend of GATA and Gold:

Last week your secretary/treasurer was interviewed at length about the prospects for the monetary metals by Patrick Vierra of Silver Bullion TV in Singapore. Your secretary/treasurer discussed the big changes in the gold market that hint at the overthrow of the fractional-reserve gold banking system, the loss of control by central banks, and even preparations by central banks for the replacement of the U.S. dollar as the world reserve currency.

The interview is 48 minutes long and can be viewed at YouTube here:

https://www.youtube.com/watch?v=2RHpfI1SJ24

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

END

Both idiots

(Reuters)

Second Republican senator will vote against Fed nominee Shelton

 Section: 

By Lindsay Dunsmuir
Reuters
Monday, July 27, 2020

WASHINGTON — U.S. Sen. Susan Collins today became the second Republican to come out against the nomination of Judy Shelton, President Donald Trump’s latest pick to join the powerful Federal Reserve board.

“Ms. Shelton has openly called for the Federal Reserve to be less independent of the political branches, and has even questioned the need for a central bank,” Collins, a moderate who faces a tough re-election fight in Maine, said in a written statement.

“This is not the right signal to send, particularly in the midst of the pandemic, and for that reason, I intend to vote against her nomination if it reaches the floor.” …

… For the remainder of the report:

https://www.reuters.com/article/us-usa-fed-shelton/second-u-s-republican.

end

James Turk states that as far as the monetary metals are concerned we are at the leading edge of a tidal wal

(Kingworldnews/James Turk)

 

As surge into monetary metals continues, Turk calls it ‘leading edge of the tidal wave’

 Section: 

9:10p ET Monday, July 27, 2020

Dear Friend of GATA and Gold:

With the monetary metals continuing to soar as Asian markets open for Tuesday, GoldMoney founder and GATA consultant James Turk returns to King World News, asserting that “people are getting it” — realizing that only real metal, not derivatives like the exchange-traded funds GLD and SLV, can protect them against devaluation of fiat currencies.

The surge into the monetary metals of the last day and a half, Turk says, is “the leading edge of the tidal wave.”

Turk’s comments are posted at KWN here:

https://kingworldnews.com/gold-silver-melt-up-continues-in-asian-trading…

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

end

USA mint cuts gold and silver coin production probably due to huge demand but they say its due to the coronavirus

(Bloomberg)

U.S. Mint cuts gold and silver coin production for a year or more, blames virus

 Section: 

U.S. Mint Has Reduced Silver, Gold Coin Supplies to Purchasers

By Justina Vasquez and Yvonne Yue Li
Bloomberg News
Monday, July 27, 2020

The U.S. Mint has reduced the volume of gold and silver coins it is distributing to authorized purchasers as the coronavirus pandemic slows production, a document seen by Bloomberg shows.

The Mint’s West Point complex in New York is taking measures to prevent the virus from spreading among its employees, and that will probably slow coin production there for the next 12 to 18 months, the document shows.

… 

The facility is no longer able to produce gold and silver coins at the same time, forcing it to choose one metal over the other, according to the document, which was presented last week to companies authorized to buy coins from the Mint.

A spokesman for the Mint didn’t immediately have comment.

“The pandemic created a whole new set of challenges for us to manage,” the Mint said in the document. “We believe that this environment is going to continue to lead to some degree of reduced capacity as West Point struggles to balance employee safety against market demand.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2020-07-28/u-s-mint-has-reduced-…

end

A good read on why gold/silver are rising

King Report/GATA

King Report: At some point ‘they’ will pound gold into a buying opportunity

 Section: 

From The King Report
Burr Ridge, Illinois
Tuesday, July 28, 2020
http://thekingreport.com/

The big story of Monday: The dollar plunged; gold, silver, and bitcoin soared while banks sank. Momentum buyers are now jiggy on gold and silver — and there is little that the Fed can do to halt the surge.

However, anyone who has been around the block a few times with gold knows that at some point “they” will stage a concerted effort to drive gold lower. This will be an opportunity to buy — unless governments do a 180 on fiscal policy and central bankers miraculously find some restraint.

Bottom line: The market is now in open revolt against U.S. fiscal profligacy and Fed promiscuity. As long as gold is tame, politicians can buy voters with socialistic benefits and central banks can paper over the massive deficits and unserviceable debt. This is why Keynesians, big-government types, and socialists despise gold. The barbarous metal can become a restraint on promiscuous fiscal and monetary policies.

Once gold gets a-rippin’, market and public psychology on inflation, the dollar, deficits, central bank promiscuity, and even societal issues turns for the worse. And it takes beaucoup discomfort to halt gold and change the foreboding psychology.

* * *

iii) Other physical stories:

U.S. Mint Has Reduced Silver, Gold Coin Supplies to Purchasers

BC-US-Mint-Has-Reduced-Silver-Gold-Coin-Supplies-to-Purchasers

(Bloomberg) — The U.S. Mint has reduced the volume of gold and silver coins it’s distributing to authorized purchasers as the coronavirus pandemic slows production, a document seen by Bloomberg shows.

The Mint’s West Point complex in New York is taking measures to prevent the virus from spreading among its employees, and that will probably slow coin production there for the next 12 to 18 months, the document shows. The facility is no longer able to produce gold and silver coins at the same time, forcing it to choose one metal over the other, according to the document, which was presented to companies authorized to buy coins from the Mint last week.

A spokesman for the Mint didn’t immediately have comment.

“The pandemic created a whole new set of challenges for us to manage,” the Mint said in the document. “We believe that this environment is going to continue to lead to some degree of reduced capacity as West Point struggles to balance employee safety against market demand.”

 

The U.S. Mint — which makes gold, silver, platinum and palladium coins that are sold through a network of distributors — has been producing commemorative and investment coins at a lower capacity since reopening the West Point facility and imposing social distancing earlier this year.

The cuts are yet another blow that the pandemic has dealt to America’s coin supplies. Just last week, the Mint urged Americans to spend their pennies, nickels, dimes and quarters because the pandemic has cut in-store sales purchases and slowed the pace of coin circulation nationwide.

 

The reduced allocations are also coming just as investors are clamoring for precious coins. Global uncertainty over the pandemic has driven silver and gold prices to multi-year highs, turning coins made from the metals into a retail safe haven. The premiums for some coins over the spot prices of the metals have surged to record levels.

To cope with demand, the Mint is now asking dealers to provide their 10-day and 90-day forecasts for demand for the first time ever. That will allow it to decide what products to make as some are more labor-intensive than others, according to the document. If the Mint decides to make one-tenth of an ounce of gold, for instance, it must cut production of American Eagle Silver coins.

©2020 Bloomberg L.P.

END

Michael Every on gold and world events..

(courtesy Michael Every)

Rabobank: Yes, Gold Is Soaring, But Here Is What The Goldbugs Are Missing

By Michael Every of Rabobank

Golden Balls

‘Golden Balls’. That was the name of a not-very-successful UK game show from 2007. It was also what the British used to call David Beckham, arguably the most talented footballer of his generation locally. He bestrode the world football stage like a colossus from Manchester United to Real Madrid to LA Galaxy. Everyone around the world knew him and loved him. And yet, Becks never won anything when playing where it really mattered most – internationally, for England. There were several times when his England team almost nearly kinda could shoulda woulda won something…but never did. All they ever had were flashes of brilliance from Golden Balls and a memory of when they were winners in the distant past

All of which seems appropriate, to me at least, given there is so much obsession with gold at the moment. We are now close to USD2,000 and there seems no stopping it. Will we get to USD3,000, as one major bank with a Beckham-esque name is claiming, or will we go to USD5,000, as a razor-sharp friend suggested to me yesterday? Either is possible given the current trend. And, if you buy gold, technically that is going to make you money.

And yet that money is still going to be priced in US DOLLARS – and that gives the whole game away. Like fans of the England football team, gold fans can dream of the distant past when gold was the centre of the global monetary system; but they can keep dreaming if they think those days are ever going to return. Gold may be an appreciating asset, but all the evidence suggests that it won’t be one that is of any direct relevance to day-to-day life, finance, and business. Your currency won’t be tied to it. You won’t get paid in it. You won’t spend in it or save in it (other than to the switch back to US Dollars). You won’t be doing deals in it or importing in it.

Yes, as the gold bugs rightly point out, there are spooky parallels between today’s trends and those of the 1930s. Uncertainty abounds. We have political polarisation and the collapse of the centre almost everywhere, albeit tapered by the welfare state for now (on which front, the Republicans have apparently agreed on the details of a new US1 trillion stimulus package).

We also have the international environment to match. Yesterday I shared the summary of global defense strategists that within three years US-China conflict is seen as “almost unavoidable”, while it is also “likely” within 12 months. Here’s an even better summary of the reality of the world as it stands today – Philippines’ President Duterte stating of the South China Sea that falls within their own national economic zone, according to international maritime law: “China is claiming it. We are claiming it. China has the arms. We do not have them. So, it’s as simple as that.” Other areas, even including the territory of EU members, are seeing a similar dynamic play out.

That is exactly the kind of zero-sum, might-is-right, mercantilist world that prevailed the last time we had a gold standard, and which is part of its architecture. As David Graeber’s “Debt: The First 5,000 Years” shows, during historical periods of global exogenous money (e.g., gold) we see an increase in inter-state violence to get that gold compared to periods of endogenous money. That said, once the war starts, the fiat money certainly kicks in too, as we all know.

The missing link, for all of the constant muttering about the US going back on gold, or China linking CNY to gold, or Russia doing something mysterious and Russian with gold, is that during the 1930s almost everyone went OFF gold to deal with the ruinous socio-economic problems they faced as a legacy of WW1 debts and then going back ON the gold standard with a consequent need for austerity. (Which, like violence, is part and parcel of a gold standard’s architecture.)

Look around you: does anyone look like they are ready to embrace austerity right now? Quite the opposite. That Beckham-seque US investment bank is now saying that the Federal Reserve’s balance sheet could soar to USD20 trillion ahead, or nearly 100% of GDP: we had said the same thing in our recent report on MMT, as that’s the only way to finance 8-9% fiscal deficits for years ahead; and indeed, we made that prediction years ago when describing the big picture trends now emerging – apart from a virus as the proximate trigger.

Indeed, some central banks are backing vast state spending as their government tries to prevent a depression; some are doing the same with their government talking about national security, rearmament, and bringing home supply chains; the ECB are doing it to save the planet; and the New York Fed, representing the rapacious Wall Street that drove globalisation, caused the global financial crisis, and necessarily cheers asset- and not wage-price inflation, now says on its website it is dedicated to eradicating structural inequality and to working towards a “more equitable economy and society for all”.None of the above are going to work with the strait-jacket of a gold standard; and nobody is about to give up monetary sovereignty to a shiny metal at a time when it is needed more than ever to retain physical sovereignty.

So you can buy gold because others are buying gold. Yet you can’t buy gold with the expectation that it is ever going to be anything other than something heavy you need to schlep.

Moreover, whether gold goes up or down **IN US DOLLARS** is ultimately a product of the real US interest rate. The Fed, who start a two-day meeting today, are obviously going to be at zero and expanding their balance sheet for years to either keep people in work, bring back jobs, build a better army, or a better society, or world. Yet that does not necessarily mean the Fed are going to succeed in hitting the one target they were supposed to be focused on in the market’s mind – inflation. Japan shows even a 100%+ central-bank balance sheet is no guarantee of any inflation at all. If the US were to slip into deflation, meaning positive real rates again unless the Fed goes negative, how will yield-free, no-end-use gold look?

In short, it’s pretty clear where the momentum is right now on gold, and on the USD (although as noted yesterday, not vs. many emerging markets, with Turkey’s TRY the latest to have a sudden wobble). Summer volatility is likely to amplify both. However, once one realises what the underlying global architecture –rotten as it is– looks like and requires, then one sees that talk of a ‘golden future’, for all the fancy footwork, also has the intellectual gravity of David Beckham

end

Mish Shedlock blasts the WSJ on gold vs the dollar\

(Mish Shedlock)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0024/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  7.0064   /shanghai bourse CLOSED UP 22.73 POINTS OR 0.71%

HANG SANG CLOSED UP 169.54 POINTS OR 0.69%

 

2. Nikkei closed DOWN 58.47 POINTS OR 0.26%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 93.90/Euro FALLS TO 1.17016

3b Japan 10 year bond yield: RISES TO. +.03/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 105.57/ 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:: 41.37 and Brent: 43.48

3f Gold DOWN/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 -.50%/Italian 10 yr bond yield DOWN to 1.00% /SPAIN 10 YR BOND YIELD DOWN TO 0.35%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.50: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.07

3k Gold at $1925 silver at: 23.51   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 86/100 in roubles/dollar) 72.46

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 105.37 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 .9194 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0759 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 0.50%

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 0.611% early this morning. Thirty year rate at 1.253%

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

6.  TURKISH LIRA:  DOWN  TO 6.9420..

Futures Slide As Gold Gets Monkeyhammered After Hitting $2,000

S&P futures and European stocks slumped as market optimism faded during the busiest week of earnings season…

 

… while Gold was hammered moments after the December future hit an all time high of $2000 following a record-breaking rally, with spot gold tanking more than $30 in minutes and silver dropping as much as 2% before regaining composure.

 

Gold hit a record high on Tuesday before the sheer scale of its gains drew a burst of profit-taking, with the volatility prompting the Shanghai Gold Exchange to issue a notice on risk prevention and express a willingness to take action if required. The dump in gold also helped the dollar rebound from two-year lows.

 

It also appears that our old friend, Benoit Gilson is finally back in his Basel office.

 

After rising almost $40 higher at one point to reach $1,980 an ounce, gold was hit by a wave of selling which it pushed back to $1,915 in volatile trade. Gold is still up over $125 in little more than a week as investors bet the Federal Reserve will reaffirm its super- accommodative policies at its meeting this week, and perhaps signal a tolerance for higher inflation in the long run.

“Fed officials have made clear that they will be making their forward guidance more dovish and outcome-based soon,” wrote analysts at TD Securities. “The chairman is likely to continue the process of prepping markets for changes when he speaks at his press conference.” One shift could be to average inflation targeting, which would see the Fed aim to push inflation above its 2% target to make up for years of under-shooting.

The retreat in gold took some steam out of stocks, with Europe’s STOXX 600 turning red even after MSCI’s broadest index of Asia-Pacific shares outside Japan ended up 0.8%. Italian and French markets led declining markets in Europe, with LVMH and Moncler SpA both dropping after the high-end apparel makers earnings missed analyst expectations. There were bright spots in earnings: PSA Group jumped as much as 5.6% after the Peugeot maker surpassed estimates for revenue and profit.

In the US, Pfizer jumped in the premarket after boosting its earnings forecast and saying it began a later-stage trial with a German partner for their top coronavirus vaccine candidate. McDonalds meanwhile slumped after missing on both earnings (EPS $0.65 vs exp. 0.74) and comp sales (-23.9%, exp. -22.3%).

Asian stocks trimmed tech-powered gains as the Taiex index briefly wiped out 3.5% rally, seen after TSMC extended its gravity-defying surge by another 9.9% to become 10th largest company in the world. Most markets in the region were up, with South Korea’s Kospi Index gaining 1.8% and India’s S&P BSE Sensex Index rising 0.9%, while Japan’s Topix Index dropped 0.5%. The Topix declined 0.5%, with Chori and Mitsubishi Motors falling the most.

While China’s Shanghai Composite Index rose 0.7%, with Sichuan Hongda and Jilin Forest Ind posting the biggest advances, the recent China stock bubble appears to have completely fizzled with trading in mainland equities cooling again on Tuesday with a further dip in turnover while overseas investors trimmed holdings for a fourth day, the longest streak in four months. Turnover in Shanghai and Shenzhen was 867 billion yuan on Tuesday, falling for a second straight day after ending a 17-day streak above 1 trillion yuan on Monday, according to Bloomberg. Overseas investors offloaded 2.23 billion yuan worth of Chinese stocks via exchange links; the four-day selling streak is the longest since late March, during a global slump in equities.  Northbound net selling since July 23 has reached 23.75 billion yuan; for the month to date, overseas investors have net bought 10.9 billion yuan of mainland equities.

According to Bloomberg, investors are betting setbacks in the fight against the coronavirus will lead Jerome Powell to signal Wednesday that rates will stay near zero for longer. Health officials are tackling rising cases in countries ranging from Japan and China to Germany, underscoring the difficulty of curbing the pandemic.

Fabiana Fedeli, global head of fundamental equities at Robeco cast doubt on whether further Fed moves to supply liquidity and hold rates low will spark more gains in the biggest stock market: “What we’re going to need next for another leg up is a better macroeconomic outlook, because the next leg up will come from a rotation into cyclicals,”  Fedeli told Bloomberg TV.  “Right now you can see some improvement in North Asia. But still not in the U.S.”

After days of sliding, the dollar turned stronger against all FX majors after the record-breaking precious metals rally showed signs of petering out. The euro pulled back from its highest since 2018; the pound slipped from a four- month high on a lack of fresh catalysts as some technical indicators suggested the U.K. currency’s recent gains were excessive. That said, the BBG DXY index slipped after a brief recovery when investors took profit on precious metal trades. A sharp drop in gold prices spurred a fall in commodity currencies, putting downward pressure on the Aussie and the Kiwi, which led losses against the greenback. Funds were seen cutting dollar balances before the start of the Federal Reserve’s two-day meeting, according to an Asia-based FX trader.

Alan Ruskin, head of G10 strategy at Deutsche Bank, noted currencies had been tracking the relative performance of their economies, so that high-ranked economic performance was associated with stronger currencies.

“One clear pattern is how economies linked most tightly to China — including commodity producers as diverse as Australia, Chile and Brazil — have tended to perform better than economies most directly linked to the U.S., notably its NAFTA trading partners,” said Ruskin. The dollar has been falling almost across the board, reaching a two-year low against a basket of currencies at 93.416 before recovering to 93.975. The euro dropped back to $1.1710 after rising to its highest in two years at $1.1781. The dollar touched its lowest against the Swiss franc since mid-2015. It also fell to a four-month low of 105.10 against the Japanese yen before last trading at 105.57.

In rates, treasuries unwound Asia-session losses by early U.S. trading, leaving yields marginally richer across the curve vs Monday’s close. S&P 500 E-mini futures erased gains, helping lift Treasury futures off session lows, as Euro Stoxx 50 were pressured lower with no clear catalyst. U.S. 10-year yields were richer by 0.5bp at ~0.61%; bunds underperform by ~0.5bp, gilts by ~1.7bp following auctions of bonds due in 2027 and 2054. Treasury auction cycle concludes with record $44b 7-year note sale at 1pm ET; Monday’s 2- and 5-year auctions tailed while stopping at record low yields. IG credit issuance slate includes Adani Ports 7-year; $15.85 billion priced Monday, headed by AT&T jumbo deal.

Elsewhere in commodities, oil’s front month benchmarks are modestly firmer but overall little changed and following the generally tentative equity sentiment this morning. Today’s private inventory release is expected to show a build of 1mln compared to last week’s more considerable, and unexpected, build of 7.54mln.

Looking at the day ahead, expected data include consumer confidence. Harley-Davidson, McDonald’s, Pfizer, Amgen and Starbucks are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures -0.5% to 3,216.0
  • STOXX Europe 600 up 0.4% to 367.59
  • MXAP up 0.3% to 167.30
  • MXAPJ up 0.9% to 551.70
  • Nikkei down 0.3% to 22,657.38
  • Topix down 0.5% to 1,569.12
  • Hang Seng Index up 0.7% to 24,772.76
  • Shanghai Composite up 0.7% to 3,227.96
  • Sensex up 1.2% to 38,392.74
  • Australia S&P/ASX 200 down 0.4% to 6,020.50
  • Kospi up 1.8% to 2,256.99
  • Brent futures down 0.1% to $43.36/bbl
  • Gold spot down 0.6% to $1,930.73
  • U.S. Dollar Index up 0.2% to 93.90
  • German 10Y yield fell 0.4 bps to -0.495%
  • Euro down 0.3% to $1.1714
  • Italian 10Y yield fell 1.0 bps to 0.862%
  • Spanish 10Y yield rose 0.9 bps to 0.349%

Top Overnight News

  • Senate Republicans presented their $1 trillion plan to bolster the pandemic-ravaged U.S. economy with a package that that didn’t completely settle differences within the GOP
  • Gold’s record-breaking rally showed signs of losing steam after futures touched $2,000 an ounce for the first time
  • The European Central Bank urges banks to hold off on returning capital to shareholders and show moderation in setting bonuses amid the coronavirus outbreak in a blow to some lender
  • China’s “bat woman” says the U.S. president owes her country an apology as she again denied assertions that the novel coronavirus is linked to the Wuhan lab where she works
  • Spanish Prime Minister Pedro Sanchez lashes out in response to the U.K. ratcheting up its travel ban to Spain to include popular holiday islands

APAC stocks traded mostly higher as the initial optimism abated despite a lack of fresh catalysts and a positive handover from Wall Street, which saw the NDX rise almost 2% as tech stocks surged, with Netflix, Amazon and Apple all closing higher by between 1.5-3%. ASX 200 (-0.4%) was driven by upside in the mining sectors at the open as precious metals continued on their upwards trajectory before paring gains. Nikkei 225 (-0.2%) had somewhat of a lacklustre start amid currency dynamics but later managed to notch some gains for the session. KOSPI (+1.8%) saw firm advances amid hopes of an economic rebound coupled by stable COVID-19 infection rates, whilst Samsung Electronics joined the broader tech rally with gains in excess of 6% as it further propped up the index. On that note, Taiwan’s chip-behemoth TSMC rose as much as 10% today after a similar rally yesterday, to obtain a spot in the top 10 largest stocks by market cap.  Elsewhere, Hang Seng (+0.7%) and Shanghai Comp (+0.7%) conformed to the broader gains across the region, with the former buoyed by IT stocks following the debut of its tech index, whilst Mainland China was supported by a PBoC liquidity injection.

Top Asian News

  • SoftBank Hits New Highs as Son’s Investing Record Is Reappraised
  • Nissan Forecasts Sharp Sales, Profit Drop as Business Struggles
  • Tencent Offers $2.1 Billion for Chinese Search Giant Sogou

European equities (Eurostoxx 50 -0.4%) traded with little in the way of firm direction with incremental newsflow since yesterday’s close relatively light for much of the session; however, as US participants begin to arrive both European bourses & US equity futures have slipped a touch – with the e-mini S&P Sep’20 future down some 10 points. One of the minor outliers in Europe has been the CAC 40 (-0.7%) with the index hampered by performance in LVMH (-5.3%) after posting a 68% decline in H1 profits amid the COVID-19 hit to the luxury sector, whilst the Co. also refrained from providing much in the way of detail on its prospects for the recovery; Hermes (-2.2%), Kering (-1.7%) have been seen lower in sympathy. Stemming some losses from the index has been PSA (+3.3%) after exceeding expectations for H1 net revenues and adjusted operating profits, support for the CAC 40 has also been provided by Carrefour (+3.5%) ahead of aftermarket earnings later today. Sector-wise UK homebuilders are cheering reports in the FT suggesting that UK Ministers are said to be drawing up plans to extend the “Help to Buy” property scheme past its December deadline to prevent buyers from losing out due to pandemic-related delays. For the Eurozone banking sector, as flagged, ECB extended its recommendation for Eurozone banks not to pay dividends until January 2021. Other notable movers include, Delivery Hero (+0.5%) after raising FY revenue guidance and UBI Banca (+7.8%) with Intesa Sanpaolo (-1.3%) stating that it sees its bid for the Co. as likely to succeed. Notable US earnings today include Pfizer, 3M, Starbucks, Altria, Amgen, McDonald’s, Visa & eBay.

Top European News

  • Spain Lashes Out at the U.K.’s ‘Unbalanced’ Travel Ban
  • Spanish Unemployment Rises Above 15%, With Worse to Come
  • Intesa Expects UBI Takeover to Succeed as Deadline Is Extended

In FX, it seems as if Usd 2000/oz and 1.1800 were just too rich or resistant for bullion and single currency buyers, but the subsequent reversals also coincided with specific factors such as the US Mint cutting Gold and Silver coins to suppliers and Japanese data revealing the biggest net oversold Eur/Jpy intraday positioning since October 2018. Moreover, one trader in Japan contended that Euro optimism based on economic recovery is simply overdone and the cross is now well below 124.00, while Eur/Usd is testing 1.1700 bids from a circa 1.1781 high on Monday. Back to the yellow metal, spot hit a fresh peak around Usd 1980 and the December 2020 future did crest the 2k mark, but only briefly and some might say for sentiment’s sake or the tape before an abrupt and aggressive about face. Clearly, long liquidation, profit taking and stops were tripped amidst the recoil, with contacts noting technical selling when the prior record high (Usd 1921 or so) was breached on the way back down, but the retracement has petered out ahead of Usd 1900 and very close to a Fib level as the clock ticks down to front month July contract expiry on Wednesday where there could still be residual physical demand for delivery.

  • USD – The Dollar looks in prime position for a classic turnaround Tuesday, albeit at the behest or whim of others and notwithstanding another twist in the tale. Indeed, after only just holding above yesterday’s low (at 93.492 vs 93.469) the index is back near 94.000 and has been a fraction over the round number on broad recovery gains in Buck/major pairings. Ahead, US consumer confidence and some regional Fed surveys on FOMC day 1.
  • NZD – Not quite a case of hero to zero, but the Kiwi has been hit hardest in G10 circles by the Greenback’s revival, and with added pressure from NZ joining the throng of countries cutting extradition ties with Hong Kong in response to China’s new national security law. Nzd/Usd has retreated through 0.6650 after touching 0.6700 and braced for Beijing’s anticipated response.
  • CAD/AUD/JPY/GBP/CHF – Also yielding to the US Dollar’s ‘renaissance’, but to varying degrees with the Loonie unwinding gains between 1.3330-90 parameters, Aussie pivoting 0.7150, Yen straddling 105.50, Sterling slipping from 1.2900+ and Franc back under 0.9200, though the latter clawing back some heavy losses vs the Euro from under 1.0800.
  • SCANDI/EM – The Swedish Crown continues to outperform and solid data is helping as retail sales gathered pace in June, while the trade surplus swelled compared to May, but the Norwegian Krona is lagging despite an even bigger pick up in consumption as Eur/Nok hugs 10.7000 in contrast to Eur/Sek holding sub-10.3000. Elsewhere, at last a break from monotony for the Turkish Lira, but not a positive move as the Try succumbed to a flash crash overnight and is struggling to recover within a 6.9075-6.8615 range even though the country’s BDDK banking watchdog has exempted foreign development banks from restricted access to Lira liquidity.

In commodities, precious metals have once again taken the spotlight but are somewhat tarnished after this mornings & APAC price action. Overnight, spot gold fell from highs of USD 1981.20/oz by some USD 40/oz, with little in the way of a clear fundamental catalyst or driver for the move. Since then, price action has come under further pressure dropping to the session low of USD 1907.20/oz shortly after the European cash equity open. In terms of potential drivers for this move the reversal in the USD is a plausible catalyst with the DXY having picked up considerably given recent price action to a high above the 94.00 handle. Alongside this the GOP stimulus unveiling and positioning pre-FOMC may have a role to play. Technically, investors may well be electing to take physical delivery of gold rather than roll their futures contract over, July future expires on 29th July, alongside the US mint reducing gold and silver coin supply to purchasers; the latter may be factoring into the demand side as well as the obvious supply implications as investors could be concerned regarding the scope for physical delivers to be readily available in the period ahead. In terms of levels to watch out for, USD 1900/oz serves as the clear psychological barrier to watch and below this USD 1898.75/oz was the low from Monday. Note, the volatility seen in gold and silver has prompted the Shanghai Gold Exchange to issue a notice on risk prevention and express a willingness to take action if required. Turning to WTI and Brent it has, again, been a session devoid of fundamental catalysts explicitly for the crude complex and as such the front month benchmarks are modestly firmer but overall little changed and following the generally tentative equity sentiment this morning. Tonight’s private inventory release is expected to show a build of 1mln compared to last week’s more considerable, and unexpected, build of 7.54mln.

US Event Calendar

  • 9am: S&P CoreLogic CS 20-City MoM SA, est. 0.3%, prior 0.33%; YoY NSA, est. 4.05%, prior 3.98%
  • 10am: Conf. Board Consumer Confidence, est. 95, prior 98.1; Present Situation, prior 86.2; Expectations, prior 106
  • 10am: Richmond Fed Manufact. Index, est. 5, prior 0

DB’s Jim Reid concludes the overnight wrap

Truth be told it’s not been the most exciting last 24 hours to report in markets at least for newsflow, however with some of the more significant events still to come, the Fed meeting on Wednesday and a slew of corporate earnings being the most obvious, hopefully there should be more to talk about over the coming days.

Despite what felt like a classic summer lull session, equities still trended higher across the pond with the S&P 500 closing +0.74% and reversing all of Friday’s decline. As we’ve become accustomed to, the market had large cap tech to thank with the NASDAQ rallying +1.67%. That means that since the March 23 lows, the index has gained at least 1% in a single session 33 times in the 87 trading days during the period. As noted at the top, we’ve got a jam-packed next four days for earnings with 179 S&P 500 companies reporting including the likes of Alphabet, Amazon and Apple so the sector will be firmly in the spotlight. Speaking of earnings, so far the overall story has been positive with 82% of companies beating analyst’s estimates (with 129 companies having reported), compared to 65% last quarter. Although how much of that is due to the number of companies that pulled guidance three months ago at the height of the selloff.

Meanwhile, there’s been no stopping Gold recently with the precious metal up another +2.11% yesterday. Overnight, futures briefly touched $2000/oz with spot now at $1945/oz. That puts it up an incredible $475 since the March lows. Silver also made headway yesterday, jumping another +8.00% which means that since the end of June alone it is up +35.05%. Treasuries were a shade weaker through all of this, with 10y yields up +2.6bps while the USD index fell another -0.81%, meaning it’s now dropped 7 days in a row and 11 times in the last 12 trading days.

Asian markets are following Wall Street’s lead this morning with the Nikkei (+0.10%), Hang Seng (+0.53%), Shanghai Comp (+0.60%), Kospi (+1.23%) and ASX (+0.09%) all advancing while futures on the S&P 500 are up +0.09%.

Back to yesterday, where we did get some headlines around the latest fiscal developments in the US. Senate Republicans unveiled their opening salvo, with the bill a reported $1tn and which includes cutting supplemental unemployment benefits to $200 weekly from $600 until states are able to provide 70% of a worker’s previous pay. There remains a great deal of consternation within the party, as Senator Lindsey Graham said Sunday that half of his caucus are going to vote no on any additional stimulus. Majority Leader McConnell said that the end of the first week of August is still the target date, so time is ticking. Overnight, House Speaker Nancy Pelosi delivered a harsh assessment of the GOP plan, calling it a “pathetic” piecemeal approach and saying it wasn’t adequate to the country’s needs. However, she added “having said that, we are going to see if we can find some common ground. But we are not there yet.”

In other news, it was a slightly different picture here in Europe yesterday where the STOXX 600 closed -0.31% albeit on well below average volumes. Bonds were stronger, with 10y Bund yields down -4.3bps and with the rally it’s worth noting that the stock of negative yielding debt in the world hit $15.18tn yesterday, taking it above the March highs. However it’s still some way off the $17.04tn back in August 2019. The weakness in Europe appeared to be due to some of the deteriorating virus data. In Germany, the public-health authority announced a “very concerning” trend of case growth traced to a farm in Bavaria. Similar concerns are faced in the Catalonia region of Spain, where the regional President Torra said the region faces a critical situation with coronavirus outbreaks. For more, see the latest Exit Strategy Policy Tracker from our team member Marion, (link here).

Staying with the virus, Moderna started its late-stage vaccine trial in the US with 30,000 people and received an additional $472 million award from the Biomedical Advanced Research and Development Authority (BARDA) over the weekend. In terms of cases, California’s 7-day average of new cases fell to just under 2.3%, which is the lowest level since mid-June before the recent acceleration in cases. Florida similarly has seen its 7-day average rate of new cases drop under 3% for the first time since the current wave started last month. Overall the US’s 7 day average is now under 1.7% new cases per day for the first time this month, indicating reinstated restrictive measures are indeed slowing the rate of spread.

Elsewhere, Australia’s state of Victoria reported a further 384 new cases in the past 24 hours and said that it will suspend all but the most urgent elective surgeries. In Vietnam, provinces are now making it mandatory to wear masks in public after an unexpected flare-up in community infections in Danang (reported 11 new cases yesterday). Danang province has put about 7,000 people in quarantine for 14 days. China also reported 68 new infections overnight with 1 new case in Beijing which went without any case for over 2 weeks in a row. Hong Kong, India and Japan are also showing concerning trends.

In terms of data, Germany’s July Ifo business climate reading came in at 90.5 (vs. 89.3 expected), up from a revised 86.3 from last month, but still well below pre-pandemic levels. US preliminary June durable goods orders rose by 7.3% (vs. 6.9% expected) last month after the prior month’s downwardly revised 15.1%. The speed of recovery slowed even though the overall level of orders remains well below February’s recording. Staying in the US, the July Dallas Fed manufacturing activity index was at -3.0 (vs. -4.8 expected) up from the prior month’s -6.1 reading and nearly at 2019’s average overall level. Euro Area June M3 money supply grew to 9.2% y-o-y, (vs. -9.3% expected) up from last month’s 8.9%.

Finally to the day ahead, where this morning we get the UK July CBI distributive trade survey, while this afternoon releases in the US include the July Conference Board consumer confidence and the July Richmond Fed manufacturing index. In terms of earnings we will see results from Starbucks, Visa, McDonald’s, Pfizer, Peugeot and Nissan.

 

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 22.73 POINTS OR 0.71%  //Hang Sang CLOSED UP 169.50 POINTS OR 0.69%   /The Nikkei closed DOWN 58.47 POINTS OR 0.26%//Australia’s all ordinaires CLOSED DOWN .37%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0024 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0024 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0064 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 ABOVE 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 VS USA

 

A very important commentary from Simon Black on the huge conflict between China and the uSA and where this is going

(SIMON BLACK)

This Is Bigger Than COVID But Few People Are Paying Attention

Authored by Simon Black via SovereignMan.com,

Most people realize that 2020 has thrust two game-changing trends upon us that will change the world for years to come.

The first is Covid.

In less than six months, this virus has created extreme global hysteria and economic devastation.

Countless businesses have gone bust or are teetering on the edge. Tens of millions of jobs have been lost.

Government debt around the world has exploded higher. And their heavy-handed abuse of power has been astonishing… often incomprehensible.

Politicians and public health officials have suspended many of our most fundamental freedoms, threatened to come into our homes and take our family members away, and even banished us from our own private properties.

We’ve also seen a breakdown in basic social conventions.

Family and friends have stopped gathering together in person out of fear that someone may be a carrier. Weddings and funerals are virtual. And a simple handshake is practically considered an act of biological terrorism.

And, just like 9/11 nearly two decades ago, many effects of Covid will never return to ‘normal’.

Then there’s the social justice movement… which tore onto the world stage two months ago with a desire to make important cultural changes.

At its core, the movement is virtuous. After all, it’s supposed to be about freedom.

But it has quickly become divisive, menacing, and pointlessly violent.

Everything is offensive. Intellectual dissent must be immediately squashed. People lose their jobs, receive death threats, or are censored, merely for expressing completely valid (and even supportive) opinions.

And some of the largest corporations in the world have all submitted to the Twitter mob, like Nazi collaborators in France who began goose-stepping with the Wehrmacht the moment Hitler took Paris.

History is being rewritten. Vocabulary is being replaced. And any civil discourse results in persecution.

Just like lingering Covid effects, this social turmoil will also be with us for years. Don’t fool yourself into believing it’s some some flash in the pan that will be over in a few weeks.

But what I wanted to tell you today is that there is a THIRD, major trend brewing right now. And it could prove to be even bigger than Covid, bigger than the social justice movement.

It’s not one that evokes the same emotion. So you won’t see too many people marching in the streets or cowering in fear in their homes. There’s no hysteria.

This third major trend is rational. And that’s why it’s largely been ignored. But its impact could be far bigger and longer lasting.

I’m talking about conflict with China.

Over the past several months we’ve witnessed a minor trade dispute between the United States and China escalating into a major diplomatic conflict, and now, into full-blow Cold War.

US Secretary of State Mike Pompeo left no doubt about this when he essentially declared cold war against China’s communist party in a speech late last week:

“If we bend the knee now, our children’s children may be at the mercy of the Chinese Communist Party, whose actions are the primary challenge today in the free world.

General Secretary Xi is not destined to tyrannize inside and outside of China forever, unless we   allow it.

Richard Nixon was right when he wrote in 1967 that ‘the world cannot be safe until China changes.’Now it’s up to us to heed his words.

Today the danger is clear. And today the awakening is happening.

Today the free world must respond. We can never go back to the past.”

It’s pretty incredible how China has already managed to get most of the world to bend to its will.

There are so many examples of this; major US airlines like Delta and American, have scrubbed  references to “Taiwan” on their websites so as not to offend the Chinese communist party.

Hollywood, despite constantly thrusting its woke social justice politics in everyone’s faces, refuses to utter the slightest criticism of China, simply so they can squeeze out more box office revenue there.

And the National Basketball Association  squashed an executive for Tweeting support to Hong Kong protesters last year.

Even the league’s biggest and most outspoken star, Lebron James, meekishly told reporters that China has “a complicated issue with racial, socioeconomic and geopolitical layers” and that he saw “little upside in speaking up” against the Chinese communist party.

Comparing sports team owners to ‘slave owners’ is perfectly fine. But don’t say anything bad about China!

In addition to Pompeo’s speeech, the US-China conflict escalated last week when the US government ordered the Chinese to close its consulate in Houston, Texas.

The Chinese government retaliated by closing a US consulate in China.

This is after months of sanctions, asset seizures, tariffs, arrests, expelling of foreign journalists, and   plenty of tension about the Coronavirus.

I know there’s a lot of fear that an actual shooting war will break out between the US and China. And that is a possibility.

I’m probably biased as a West Point graduate, but I’m convinced that the US Marine Corps and Army Rangers are the most proficient fighting forces in the world.

But the reality is that China has a bigger army. It’s better equipped with newer, better technology. Its tanks are superior, and it has more of them.

China has also been investing heavily in its Navy and Air Force; it already has more ships than the US Navy, and it has also rolled out a fifth-generation fighter jet, the J-20, to compete head-to-head against the US military’s F-22 and F-35.

But that’s just conventional warfare. The next war will be highly unconventional… and the Chinese are dominant in “system destruction warfare”.

They could take down the US power grid, hack multiple defense and intelligence networks, and remotely disrupt key US command and control elements, before a single shot was fired.

Fortunately, a shooting war is unlikely. Why would China want to invade the US and deal with 400 million guns in the hands of the civilian population?

Why would the US want to invade China and deal with another Vietnam war?

War doesn’t benefit either nation, and on that basis it’s possible… but not probable.

What is likely is a total reset in the global financial system.

The current “Bretton Woods” financial system in which the US economy and US dollar are at the center of the global economy is decades old.

The US has derived extraordinary wealth and prosperity from this system for years.

Bretton Woods is the reason why the US national debt can be nearly $27 trillion (over 100% of GDP) without the dollar collapsing in value.

It’s the reason why the Federal Reserve can conjure trillions of dollars out of thin air and keep interest rates at 0% for years, but still be taken seriously.

Losing this advantage would be nothing short of catastrophic for the US economy.

And continued conflict with China is the one thing that is practically guaranteed to make it happen.

That’s why this trend– conflict with China– could be the biggest thing happening right now.

It’s not as scary as Covid, it’s not as emotional as social justice… but the effects may be permanently devastating.

On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years. That’s why we published a new, 50-page long Ultimate Guide on Gold & Silver that you can download here.

end
CHINA VS EU
the EU slams Volkswagen over its refusal to recognize the Chinese treatment of the Uighurs..the USA expands its blacklist.
(zerohedge)

EU Slams ‘Complicit’ Volkswagen Over China Treatment Of Uighurs After US Expands Blacklist

The chair of the European Parliament’s delegation for China relations, Reinhard Bütikofer, has slammed Volkswagen for its refusal to confront China over its treatment of Uighur Muslims, according to Politico.

This week, a group of unions and nongovernmental organizations called on major brands like Nike, Adidas and Amazon to stop sourcing goods from Xinjiang.

While the U.S. has already introduced some sanctions over Xinjiang, Bütikofer complained that the European Commission is still resisting pressure to take action. He reserved his strongest criticism, however, for Volkswagen, which has a factory in Xinjiang’s capital of Urumqi. –Politico

“Volkswagen … is a company without a conscience, Bütikofer told Politico, adding that “companies like that are complicit in upholding a totalitarian hell in Xinjiang.”

He also criticized the German carmaker for “denying any knowledge of the oppression of the Uighur people in Xinjiang.”

In a BBC interview, the EU official slammed former VW chief executive, Herbert Deiss, who said he wasn’t aware of China’s infamous detention camps, saying “That’s anything but credible, it just didn’t want to get on the record with taking a stance.

Bütikofer argued the company had been reluctant to react to a 2020 report by the Australian Strategic Policy Institute revealing mass transfer of Uighurs to work under forced labor conditions in factories across China.

The report listed Volkswagen among “companies directly or indirectly benefiting from the use of Uighur workers outside Xinjiang through potentially abusive labor transfer programs.”

Volkswagen rejected the accusations about the Urumqi plant and its supply chains. –Politico

In an emailed response, Volkswagen told Politico “There are and have been no indications of human rights violations at the Urumqi plant,” adding that there were “no further indications that the forced labour of Uighurs [was] part of the supply chain of the Volkswagen Group China or its units.” In addition, VW says it has instituted a system to somehow ensure that its direct suppliers respect human rights.

Bütikofer is one of the signatories of an open letter sent on Friday by over 70 MEPs from different political groups, urging EU foreign policy chief Josep Borrell to demand the intervention of the United Nations to stop “serious and systematic human rights violations by the Chinese government against Muslim minorities in the Xinjiang region.” On Thursday, MEPs from the Renew Europe also asked Borrell to accelerate the adoption of a sanction system for human rights offenders.

“The Parliament is very active but so far the Commission has not picked that up,” said Bütikofer, who added that the Commission should not “hide behind the excuse” for failing to have a legal mechanism to take action.

“There is always an opportunity of naming and shaming. Infraction on basic human rights is so gross that we should not accept this business as usual approach,” he said.

The EU’s actions come one week after the US Commerce Department has added 11 Chinese companies to an economic blacklist over their involvement in China’s mistreatment of Uighur Muslims in the western region of Xinjiang.

According to Reuters, numerous textile companies and two firms conducting genetic analysis ‘used to further the repression of Uighurs and other Muslim minorities’ have been added to the list – prompting China to accuse the West of slander.

Why the US suddenly cares about China’s treatment of more than 1 million minority slaves living in giant forced-labor cities is anyone’s guess, but the United States, and now the EU, are now keen on holding Xi’s feet to the fire. Prior to the Trump administration, the US government apparently couldn’t care less. Now, there are 37 entities on the blacklist.

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

China, meanwhile, has accused the Trump administration of slander – with foreign ministry spokesman Wang Wenbin warning at a Tuesday press conference that China would take all measures to protect its companies’ rights.

The companies added to the blacklist include Nanchang O-Film Tech, a supplier for Apple’s iPhone that hosted Apple chief executive Tim Cook in December 2017, according to O-Film’s website. It is also a supplier to Amazon.com Inc and Microsoft, according to an April congressional letter.

The list includes two subsidiaries of Beijing Genomics Institute (BGI), a genomics company with ties to the Chinese government, Senator Marco Rubio said. –Reuters

Senator Rubio says the additions to the blacklist will “ensure that U.S. technology does not aid the Chinese Communist Party’s crimes against humanity and egregious human rights abuses against Uighurs and other minorities in Xinjiang, including the forced collection of DNA.”

Another company on the revised list is KTK Group Co, which manufactures over 2,000 items for high-speed trains “ranging from electronics to seats; and Tanyuan Technology Co, which assembles high thermal, conductive graphite reinforced aluminum composites,” according to the report.

The company said in a statement that it has no investments in the US, does not rely on US technology, and that US exports account for less than 0.5% of its 2019 revenue.

Changji Esquel Textile Company, which manufactures clothing for Ralph Lauren, Tommy Hilfiger and Hugo Boss, was also added to the list. The company asked Ross to remove them from the blacklist, with CEO John Cheh stating in a letter “Esquel does not use forced labor, and we never will use forced labor,” adding “We absolutely and categorically oppose forced labor.”

As we noted last week, Uighurs are allegedly being 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

4/EUROPEAN AFFAIRS

EUROPE/CORONAVIRUS UPDATE

Germany And Other European Countries Advise Against Travel To Virus-Infected Spain 

European countries are having a challenging time in reopening while safeguarding citizens against new flare-ups of COVID-19.

New concerns are developing across certain European regions that rising virus cases could have significant implications for intercontinental travel.

Germany’s disease control agency warned against travel to Spain on Tuesday after a recent surge in virus cases.

“We must prevent that the virus once again spreads rapidly and uncontrollably,” Robert Koch Institute head Lothar Wieler told reporters.

The latest developments in the number of COVID-19 cases are of great concern to me and all of us at the RKI,” Wieler said.

Germany’s foreign ministry told citizens to avoid three regions in northern Spain:

“Non essential, tourist travel to the autonomous communities of Aragon, Catalonia and Navarra are currently discouraged due to renewed high levels of infections and local lockdowns,” a statement said.

Other countries are also warning against travel to and from Spain.

Last weekend, the UK government stunned tourists with the decision to remove Spain from the exempt quarantine list upon arrival in England.

The Spanish government insists regional outbreaks of the virus are isolated, and the country is safe for tourists. Tourism accounts for 11% of the country’s GDP. Many of the tourists come from the UK.

France has also warned citizens about travel to Spain due to rising virus cases.

Spain, Sweden, Luxembourg, and Romania have seen increasing infections in July.

The thought, heading into the summer, the virus pandemic in Europe would subside, allowing borders to reopen and tourism to flourish. However, with Europe opened for a few months, it appears flare-ups in cases are being seen that will lead to strict social distancing, reduced traveling, and an economic rebound that doesn’t resemble a “V.”

There goes travel and leisure stocks in Europe…

END

CORONAVIRUS/UPDATE/SPAIN/GLOBE

Madrid Revives Mandatory Mask Order As ‘Second Wave’ Worsens; Beijing Confirms 1st New COVID-19 Case In Weeks: Live Updates

Summary:

  • Bill Gates sits for interview on CNBC
  • Sun Belt states see promising pull back
  • China reports 1st case in Beijing in 3 weeks
  • Head of China’s CDC takes experimental vaccine
  • WHO warns COVID-19 isn’t going to be “seasonal” like the flu
  • Germany joins list of European countries warning on travel to Spain
  • Tokyo suffers another 270 cases
  • Vietnam makes mask-wearing mandatory again
  • Madrid tightens virus restrictions amid resurgence fears

* * *

Bill Gates on Tuesday morning sat for an interview with the Squawk Box team where he assured all viewers that skepticism about the safety of the coronavirus vaccine candidates had been greatly exaggerated. Once the FDA has slapped its imprimatur on a candidate, Americans and others shouldn’t hesitate to accept the final product.

Gates’s interview follows a slew of vaccine-related news. Taken together, the intended message is clear: With the bilateral relationship unraveling and US economic fundamentals continuing to deteriorate, vaccine-related headlines are the market’s last hope for survival. It follows news from yesterday about Moderna’s vaccine candidate, which is entering its Phase 3 trial.

During his interview on Tuesday, Gates praised the “low-cost” vaccines from AstraZeneca and Moderna…and seemingly dismissed concerns about safety and side-effects out of hand.

Yesterday, the worst-hit Sun Belt states showed promising signs that infections are slowing. Meanwhile, in China, the number of new cases confirmed daily has continued to creep higher as more cases were confirmed on Tuesday.

Beijing on Tuesday reported one new coronavirus case, its first in 21 days. The new case was confirmed just days after Beijing started reopening more public transit and lifting other restrictions inspired by the outbreak. The case was just 1 of 68 reported Tuesday across the mainland.

With anxieties on the rise, the head of China’s Center for Disease Control and Prevention surprised his audience by revealing that he had been injected with an experimental coronavirus vaccine. The talk, according to the AP, was intended to show the Chinese people that there’s nothing wrong with taking such a vaccine.

“I’m going to reveal something undercover: I am injected with one of the vaccines,” Gao Fu said in a webinar Sunday hosted by Alibaba Health, an arm of the Chinese e-commerce giant, and Cell Press, an American publisher of scientific journals. “I hope it will work.”

Suffering its own “third wave” outbreak, Hong Kong is considering postponing its upcoming legislative elections, according to local press reports, as a resurgence of new cases over the last 2 weeks has rattled Hong Kong society. Authorities reported 98 local infections on Tuesday, a slight ebb after the city found more than 100 local cases for six consecutive days. The city’s contact tracers have had trouble tracing the origins of new infections.

As the outbreak worsens, HK is imposing its most restrictive social distancing measures yet.

Elsewhere in Asia, Vietnam and its provinces are imposing mandatory mask-wearing orders after an unexpected surge in community infections stemming from an outbreak in Danang (reported 11 new cases yesterday). The province has put about 7,000 people in quarantine for 14 days. Over the past three days, the region has reported 15 new cases. Vietnam had all but claimed victory over the virus, having gone almost 100 days without even a single new local patient.

In Tokyo, officials confirmed about 270 new cases of the virus on Tuesday, Nikkei reported, citing an unidentified person. That’s more than twice the 131 cases the Japanese capital found Monday. The city has reported more than 100 new daily cases for weeks as it faces a renewed resurgence.

Finally, moving over to the Asia-Pacific region, Victoria reported another 384 cases and six deaths over the past 24 hours, and said that it will suspend all but the most urgent elective surgeries. As the outbreak in its second-most populous state intensifies, Australia is sending a medical team to help Papua New Guinea confront an alarming surge in cases, according to Canberra’s Acting Foreign Affairs Minister Simon Birmingham. The small Pacific island state had 62 cases as of Tuesday, up from just eight 11 days ago.

All the while, worries about a second wave have intensified across Europe.

Spanish Prime Minister Pedro Sanchez responded angrily to the UK after Britain ratcheted up its travel restrictions to include a popular set of Spanish islands, and mandated quarantines for all travelers visiting the UK from Spain.

“The decision is unbalanced,” Sanchez said about these new restrictions. The Balearic and Canary Islands “have a lower incidence of the virus than is being registered right now” in Britain, Sanchez said.

Speaking to the BBC, Local Government Minister Simon Clarke said “we respectfully disagree with the Spanish government…You do have to make decisions on a country-wide basis. There is going to be internal transfer within Spain.”

Globally, cases have reached 16,409,902, according to data from Johns Hopkins University.

Source: Worldometer

This comes just after the worldwide death toll topped 650k to 652,531.

Source: Worldometer

The WHO has warned against complacency over coronavirus transmissions in the northern hemisphere, saying that the virus does not behave like influenza, which typically follows a set “flu season”.

Adding to the growing number of European countries that have advised their citizens to avoid travel to Spain, Germany on Tuesday urged travelers to avoid Catalonia and Barcelona over fears they might contract the virus.

As was widely expected, the biggest COVID-19 vaccine trial in the world got under way on Monday with the first of 30,000 volunteers for Moderna’s major ‘Stage 3’ trial which is being run in cooperation with the US government.

While Spain denounced the new travel restrictions that will put the final nail in the coffin of the 2020 peak tourism season, the regional government in Madrid has just made the wearing of face masks mandatory in all public areas, while limiting the number of people allowed to gather in a given space to ten.

Finally, Iran has reported 235 new deaths from the novel coronavirus, a record single-day toll for the Islamic Republic, which has the highest death toll in the Middle East.

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY

Turkish Central bank starting to lose control on its currency.  The country is totally bust

(zerohedge)

Turkish Lira Goes Berserk As Central Bank Briefly Loses Grip On Capital Controls

Some time in mid-June, Turkey’s president Erdogan and the central bank which he now de facto controls, decided to do to the Turkish lira what the Fed has done to the bond market, and nationalized it the result being an unprecedented flatlining in the country’s troubled currency which had been collapsing in the months prior and only the government’s ruthless intervention managed to halt the slow-mo collapse.

As shown in the chart below, for the past month the USDTRY was effectively pegged to a level of 6.85, ending the currency’s precipitous decline.

However today, just after 1pm ET, the government and central bank finally lost control of the lira their multiple capital controls failing to protect the currency from the forces of the free market, and the lira crashed 2% against the dollar in the space of minutes – posting its biggest intraday drop since October 7 as the USDTRY spiked as high as 6.9835 – before the central bank finally regained control, and the currency quickly rallied back to recover most of its losses amid local limits on credit lines and liquidity.

The lira briefly also touched an all-time low the euro, falling as much as 3% to 8.2178 at 1:14 p.m. ET before retreating to trade at 8.0791

By “some adjustments”, he probably means that any time something unexpected happens and the capital controls fail to keep the currency pegged to its imaginary value, all hell breaks loose as it briefly did earlier today.

While Turkey has generally kept a very low profile in recent months, suffering from a substantial slowdown in foreign investment hitting its bond market and capital accounts, it has been hit by an escalating geopolitical conflict with Greece; as we reported over the weekend, tensions flared up over the weekend in the Mediterranean region after the government in Ankara said it was sending a ship to carry out a drilling survey in waters contested by Turkey and Greece.

end

Turkey/Greece/Iraq/Syria/Cyprus/Armenia/Azerbaijan

Bankrupt Turkey is without a doubt on the warpath against many Muslim states.

a good read..

Bulat/Gatestone

Turkey On The Warpath

Authored by Uzay Bulut via The Gatestone Institute,

Turkey is currently involved in quite a few international military conflicts — both against its own neighbors such as Greece, Armenia, Iraq, Syria and Cyprus, and against other nations such as Libya and Yemen. These actions by Turkey suggest that Turkey’s foreign policy is increasingly destabilizing not only several nations, but the region as well.

In addition, the Erdogan regime has been militarily targeting Syria and Iraq, sending its Syrian mercenaries to Libya to seize Libyan oil and continuing, as usual, to bully Greece. Turkey’s regime is also now provoking ongoing violence between Armenia and Azerbaijan.

Since July 12, Azerbaijan has launched a series of cross-border attacks against Armenia’s northern Tavush region in skirmishes that have resulted in the deaths of at least four Armenian soldiers and 12 Azerbaijani ones. After Azerbaijan threatened to launch missile attacks on Armenia’s Metsamor nuclear plant on July 16, Turkey offered military assistance to Azerbaijan.

“Our armed unmanned aerial vehicles, ammunition and missiles with our experience, technology and capabilities are at Azerbaijan’s service,” said İsmail Demir, the head of Presidency of Defense Industries, an affiliate of the Turkish Presidency.

One of Turkey’s main targets also seems to be Greece. The Turkish military is targeting Greek territorial waters yet again. The Greek newspaper Kathimerini reported:

“There have been concerns over a possible Turkish intervention in the East Med in a bid to prevent an agreement on the delineation of an exclusive economic zone (EEZ) between Greece and Egypt which is currently being discussed between officials of the two countries.”

Turkey’s choice of names for its gas exploration ships are also a giveaway. The name of the main ship that Turkey is using for seismic “surveys” of the Greek continental shelf is Oruç Reis, (1474-1518), an admiral of the Ottoman Empire who often raided the coasts of Italy and the islands of the Mediterranean that were still controlled by Christian powers. Other exploration and drilling vessels Turkey uses or is planning to use in Greece’s territorial waters are named after Ottoman sultans who targeted Cyprus and Greece in bloody military invasions. These include the drilling ship Fatih “the conqueror” or Ottoman Sultan Mehmed II, who invaded Constantinople in 1453; the drilling ship Yavuz, “the resolute”, or Sultan Selim I, who headed the Ottoman Empire during the invasion of Cyprus in 1571; and Kanuni, “the lawgiver” or Sultan Suleiman, who invaded parts of eastern Europe as well as the Greek island of Rhodes.

Turkey’s move in the Eastern Mediterranean came in early July, shortly after the country had turned Hagia Sophia, once the world’s greatest Greek Cathedral, into a mosque. Turkish President Recep Tayyip Erdogan then linked Hagia Sophia’s conversion to a pledge to “liberate the Al-Aqsa Mosque” in Jerusalem.

On July 21, the tensions arose again following Turkey’s announcement that it plans to conduct seismic research in parts of the Greek continental shelf in an area of sea between Cyprus and Crete in the Aegean and Eastern Mediterranean.

“Turkey’s plan is seen in Athens as a dangerous escalation in the Eastern Mediterranean, prompting Prime Minister Kyriakos Mitsotakis to warn that European Union sanctions could follow if Ankara continues to challenge Greek sovereignty,” Kathimerini reported on July 21.

Here is a short list of other countries where Turkey is also militarily involved:

In Libya, Turkey has been increasingly involved in the country’s civil war. Associated Press reported on July 18:

“Turkey sent between 3,500 and 3,800 paid Syrian fighters to Libya over the first three months of the year, the U.S. Defense Department’s inspector general concluded in a new report, its first to detail Turkish deployments that helped change the course of Libya’s war.

“The report comes as the conflict in oil-rich Libya has escalated into a regional proxy war fueled by foreign powers pouring weapons and mercenaries into the country.”

Libya has been in turmoil since 2011, when an armed revolt during the “Arab Spring” led to the ouster and murder of dictator Muammar Gaddafi. Political power in the country, the current population of which is around 6.5 million, has been split between two rival governments. The UN-backed Government of National Accord (GNA), has been led by Prime Minister Fayez al Sarraj. Its rival, the Libyan National Army (LNA), has been led by Libyan military officer, Khalifa Haftar.

Backed by Turkey, the GNA said on July 18 that it would recapture Sirte, a gateway to Libya’s main oil terminals, as well as an LNA airbase at Jufra.

Egypt, which backs the LNA, announced, however, that if the GNA and Turkish forces tried to seize Sirte, it would send troops into Libya. On July 20, the Egyptian parliament gave approval to a possible deployment of troops beyond its borders “to defend Egyptian national security against criminal armed militias and foreign terrorist elements.”

Yemenis another country on which Turkey has apparently set its sights. In a recent video, Turkey-backed Syrian mercenaries fighting on behalf of the GNA in Libya, and aided by local Islamist groups, are seen saying, “We are just getting started. The target is going to be Gaza.” They also state that they want to take on Egyptian President Sisi and to go to Yemen.

“Turkey’s growing presence in Yemen,” The Arab Weekly reported on May 9, “especially in the restive southern region, is fuelling concern across the region over security in the Gulf of Aden and the Bab al-Mandeb.

“These concerns are further heightened by reports indicating that Turkey’s agenda in Yemen is being financed and supported by Qatar via some Yemeni political and tribal figures affiliated with the Muslim Brotherhood.”

Additionally, Turkey’s incursion into the Syrian city of Afrin, created a particularly grim situation for the local Yazidi population:

“As a result of the Turkish incursion to Afrin,” the Yazda organization reported on May 29, “thousands of Yazidis have fled from 22 villages they inhabited prior to the conflict into other parts of Syria, or have migrated to Lebanon, Europe, or the Kurdistan Region of Iraq… ”

“Due to their religious identity, Yazidis in Afrin are suffering from targeted harassment and persecution by Turkish-backed militant groups. Crimes committed against Yazidis include forced conversion to Islam, rape of women and girls, humiliation and torture, arbitrary incarceration, and forced displacement. The United States Commission on International Religious Freedom (USCIRF) in its 2020 annual report confirmed that Yazidis and Christians face persecution and marginalization in Afrin.

“Additionally, nearly 80 percent of Yazidi religious sites in Syria have been looted, desecrated, or destroyed, and Yazidi cemeteries have been defiled and bulldozed.”

In Iraq, Turkey has been carrying out military operations for years. The last one was started in mid-June. Turkey’s Defense Ministry announced on June 17 that the country had “launched a military operation against the PKK” (Kurdistan Workers’ Party) in northern Iraq after carrying out a series of airstrikes. Turkey has named its assaults “Operation Claw-Eagle” and “Operation Claw-Tiger”.

The Yazidi, Assyrian Christian and Kurdish civilians have been terrorized by the bombings. At least five civilians have been killed in the air raids, according to media reports. Human Rights Watch has also issued a report, noting that a Turkish airstrike in Iraq “disregards civilian loss.”

Given Turkey’s military aggression in Syria, Iraq, Libya, and Armenia, among others, and its continued occupation of northern Cyprus, further aggression, especially against Greece, would not be unrealistic. Turkey’s desire to invade Greece is not exactly a secret. Since at least 2018, both the Turkish government and opposition parties have openly been calling for capturing the Greek islands in the Aegean, which they falsely claim belong to Turkey.

If such an attack took place, would the West abandon Greece?

end

Israel/Lebanon/Syria

An excellent short briefing as to what is going on with respect to Israel in the Golan Heights fearing Hezbollah//plus other middle east conflict zones

(South Front)

Watch: Israel Reinforces Troops Near Golan Heights Fearing Hezbollah Retaliation To Strikes On Syria

Submitted by South Front,

The Middle East is rapidly moving towards a new round of confrontation between the US-Israeli bloc and Iranian-led Shiite forces…

On July 26, the Israeli Defense Forces (IDF) deployed M109 Doher howitzers near the separation line with Lebanon. The deployment of howitzers became the latest in a series of broad measures employed by the IDF near Lebanon recently. Earlier, the 13th “Gideon” Infantry Battalion of the IDF’s elite 1st “Golani” Brigade reinforced troops near the border. The number Israeli Hermes 450 drone reconnaissance flights also significantly increased over southern Lebanon. Additional IDF units were also deployed in the occupied Syrian Golan Heights. On top of this, the IDF announced that it will hold the Lebanese government responsible “for all actions emanating from Lebanon”.

These measures followed the July 20 Israeli strike on Syria, which resulted in the death of a member of Lebanese Hezbollah. Over the past years, Hezbollah has been one of the main supporters of Syrian Army operations against ISIS and al-Qaeda. Tel Aviv increases its strikes on what it calls Hezbollah and Iranian-affiliated targets in Syria every time when the Syrian Army launches active actions against terrorists and seems to be very concerned by the possibility of a Hezbollah response to the July 20 attack.

If Israel is really set to conduct strikes on Hezbollah targets in Lebanon to the retaliatory action by Hezbollah, this scenario could easily evolve into a wider border confrontation between Hezbollah and the IDF.

At the same time, tensions between local resistance groups and the US-led coalition grew in Iraq. On July 24, the Islamic Resistance in Iraq, Ashab al-Kahf, announced that its forces had shot down an unmanned aerial vehicle of the US military over the province of Saladin. The group claimed that the UAV was downed by some ‘new weapon’ and released a photo showing the launch of what appears to be an anti-aircraft missile, likely a man-portable air-defense system.

On the same day, four unguided rockets struck the Pasmaya military camp, which is located 60km south of Baghdad. One of the rockets hit a garage for armoured vehicles, while another one targeted the barracks of the security unit. Two other rockets landed in an empty area. Despite causing some material damage, the rocket attack did not result in any casualties. No group has claimed responsibility for the attack.

The Pasmaya military camp is known to be hosting troops of the U.S.-led coalition and is used for training of Iraqi troops. On July 25, the coalition withdrew its forces from the camp and handed it over to the Iraqi military. According to the official statement, the coalition trained 50,000 personnel and invested $5 million into the creation of training infrastructure there.

Earlier in 2020, the US-led coalition withdrew its forces from several smaller military camps across the country. Some sources tried to present this as a withdrawal from Iraq due to the increasing attacks on coalition forces by anti-US Shiite paramilitary groups. These attacks increased significantly after the assassination of Iraqi Popular Mobilization Units Deputy Commander Abu Mahdi al-Muhandis and Iranian Quds Force Commander Qasem Soleimani in a US drone strike on Baghdad International Airport on January 3, 2020. The attack put the region on the brink of the US-Iranian war and caused a public outcry against the US military presence in Iraq. However, in fact, the US has not been withdrawing its troops from the country, but rather redeploying them to larger bases. The US military even brought Patriot surface-to-air missile systems to provide additional protection to its forces. It also continues isolated attacks on positions of the Popular Mobilization Units, an official branch of the Iraqi Armed Forces that Washington describes as terrorist groups and Iranian proxies.

On July 26, several large explosions rocked the al-Saqer military camp near the district of Dora south of Baghdad. The Al-Saqer military camp hosts forces of the Popular Mobilization Units (PMU) as well as the Iraqi Federal Police. Large quantities of ammunition, which were stored in the camp, exploded. Iraqi Security Media said the ammunition exploded as result of “high heat” and “poor storage”. Nevertheless, sources affiliated with the PMU rejected these speculations. Local sources claimed that the explosions were caused by US drone strikes. An MQ-1 Predator combat drone was spotted over the al-Saqer military camp just after the incident. This was the second situation of this kind that happened in al-Saqer. In 2019, a US drone strike hit a weapon depot at the camp.

The current situation sets almost no prospects for a de-escalation in Iraq. The main goal of attacks by local Shiite groups is to force the US to withdraw troops from the country. At the same time, the US is not planning to withdraw its forces and uses these attacks to justify the increase of its campaign against pro-Iranian forces in the Middle East.

end

6.Global Issues

Razak, former PM of Malaysia guilty on all counts in our famous 1MDB corruption case which involved Goldman Sachs

(zerohedge)

Former Malaysian PM Guilty On All Counts In Sweeping 1MDB Corruption Case; Sentenced To 12 Years In Prison

Days after Goldman Sachs agreed to fork over nearly $4 billion to the Malaysian government as penance for aiding and abetting the criminals who looted more than $4 billion from 1MDB (a sovereign wealth fund financed by several bond issues underwritten by Goldman Sachs), former Malaysian Prime Minister Najib Razak has been found guilty on 7 charges related to the scandal.

The charges were handed down more than two years after Razak’s arrest, and more than a year after his first trial began. The former PM was swept out of office a few years ago in a wave of reformist sentiment as the depredations of his administration fueled a tremendous public backlash.

Shortly after the verdict was handed down, the former leader and politician was sentenced to 12 years in prison, a sentence that – if it stands – could encompass the rest of 68-year-old Razak’s natural life.

 

High Court judge Nazlan Mohammed Ghazali found the former PM guilty on all counts, including abuse of power, money laundering and criminal breach of trust. The current trial relates to $10 million that was deposited into Razak’s personal bank account via 1MDB. During the early days of the scandal, which was exposed by dogged reporters from the Wall Street Journal, Razak claimed that some $700 million deposited into personal accounts under his control had been given to him by a member of the Saudi royal family.

Ahead of Tuesday’s verdict, Razak wrote on Facebook that “no matter what the decision is tomorrow in the High Court, it doesn’t end here,” suggesting that he plans to appeal.

“I don’t give up,” Razak added.

Assalamualaikum dan salam sejahtera. Esok 10 pagi penghakiman kes SRC saya di Kompleks mahkamah KL. Saya tahu apa di…

Posted by Najib Razak on Monday, July 27, 2020

Tuesday’s ruling is the first judgment against Razak, who faces a variety of charges related to the now bankrupt sovereign wealth fund, including allegations he used it as his personal piggybank.

Najib faces a lengthy prison term that could potentially see him locked up for the rest of his natural life, as each of the 7 charges handed down on Tuesday carries a prison sentence of between 15 and 20 years.

The fund had the stated purpose of leading “market-driven initiatives to assist the government in propelling Malaysia towards becoming a developed nation that is highly competitive, sustainable and inclusive.” Instead, according to prosecutors in the US, Malaysia and elsewhere, 1MDB was used as a “slush fund” by Najib, his chief financier Jho Low (now an international fugitive despite settling DoJ allegations after paying a $700 million+ settlement).

DoJ claimed the scandal swindled $4.5 billion from the American people.

end

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1219 DOWN .0008 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /MIXED

 

 

USA/JAPAN YEN 107.85 DOWN 0.074 (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 1.2485   DOWN   0.0052  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3059 UP .0005 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro FELL BY 66 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1702 Last night Shanghai COMPOSITE CLOSED UP 22.73 POINTS OR 0.71% 

 

//Hang Sang CLOSED UP 169.50 POINTS OR 0.69%

/AUSTRALIA CLOSED DOWN 0,37%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 169.50 POINTS OR 0.69%

 

 

/SHANGHAI CLOSED UP 22.73 POINTS OR 0.21%

 

Australia BOURSE CLOSED DOWN. 37% 

 

 

Nikkei (Japan) CLOSED DOWN 58.47  POINTS OR 0.26%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1927.00

silver:$23.65-

Early TUESDAY morning USA 10 year bond yield: 0.611% !!! UP 0 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.253 UP 0  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 93.90 UP 23 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing  TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.36% DOWN 0 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -+03%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.35%//UP 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,02 UP 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 67 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.51% 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 TUESDAY

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

Euro/USA 1.1718  DOWN     .0049 or 49 basis points

USA/Japan: 105.13 DOWN .141 OR YEN UP 14  basis points/

Great Britain/USA 1.2928 UP .0041 POUND UP 41  BASIS POINTS)

Canadian dollar DOWN 42 basis points to 1.3381

 

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The USA/Yuan,CNY: AT 7.0042    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0017  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.9538 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +03%

 

Your closing 10 yr US bond yield DOWN 2 IN basis points from MONDAY at 0.595 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.24 DOWN 2 in basis points on the day

Your closing USA dollar index, 93.70 UP 3  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 42.37  0.56%

German Dax :  CLOSED DOWN 3.28 POINTS OR .03%

 

Paris Cac CLOSED DOWN 10.68 POINTS 0.22%

Spain IBEX CLOSED UP 130.10 POINTS or 1.75%

Italian MIB: CLOSED DOWN 127.38 POINTS OR 0.64%

 

 

 

 

 

WTI Oil price; 40.58 12:00  PM  EST

Brent Oil: 43.07 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    71.205  THE CROSS LOWER BY 0.15 RUBLES/DOLLAR (RUBLE HIGHER BY 15 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.51 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 :  40.86//

 

 

BRENT :  43.13

USA 10 YR BOND YIELD: …0.582 DOWN 3 BASIS POINTS…

 

 

 

USA 30 YR BOND YIELD: 1.212…DOWN 4 BASIS POINTS..

 

 

 

 

 

EURO/USA 1.1716 ( DOWN 52   BASIS POINTS)

USA/JAPANESE YEN:105.06 DOWN .6213 (YEN UP 21 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 95.73 UP 6 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2937 UP 49  POINTS

 

the Turkish lira close: 6.9383

 

 

the Russian rouble 72.59  DOWN 0.99 Roubles against the uSA dollar.( DOWN 99 BASIS POINTS)

Canadian dollar:  1.3377 DOWN 38 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.51%

 

The Dow closed DOWN 205.49 POINTS OR 0.77%

 

NASDAQ closed DOWN 134.17 POINTS OR 1.27%

 


VOLATILITY INDEX:  25.57 CLOSED UP .83

LIBOR 3 MONTH DURATION: 0.269%//libor dropping like a stone

 

USA trading today in Graph Form

Gold Gains As Stocks Strike Out On MLB “Pause”, Fading Stimulus Hope

Silver was clubbed like a baby seal overnight after spot prices topped $26 and was unable to get back to even despite a valiant dip-buying effort…

Source: Bloomberg

Gold was hit too (after futures topped $2000 overnight) but rallied back notably during the day to close higher, with spot prices back above $1950…

Source: Bloomberg

Somebody loves goooold…

Nasdaq notably underperformed on the day with stocks accelerating lower after McConnell appeared on CNBC and raised questions of the imminence of the stimulus deal given the differences and The Marlins MLB team “paused” its season(NOTE – a MRNA headline was unleashed as stocks stumbled to stick-save markets)Further headlines from various GOPers also suggested no deal is imminent and sent stocks even lower into the close

As Nomura’s Charlie McElligott noted in a warning last week, from an index-options level, QQQ (Nasdaq ETF) remains in far more fragile state than still-stable SPX – where although the QQQ $Delta position has now rather precipitously declined partially due to the implied implied length but also of course as a function of the move lower ($Delta from 97th %ile 1w ago to the current 62nd %ile), the QQQ Dealer Gamma position remains “short,” with spot 259.20 preopen vs our estimated “Gamma Neutral” level up at $262.67…

Investors piled into defensive stocks today with cyclicals suffering…

Source: Bloomberg

FANG Stocks slipped lower late on today ahead of tomorrow’s big-tech CEO hearing…

Source: Bloomberg

Treasury yields tumbled all day after a brief spike overnight, erasing all of yesterday’s losses…

Source: Bloomberg

10Y Yield tumbled back below 60bps…

Source: Bloomberg

The Dollar rallied briefly into the Asian markets but was sold once again as Europe opened and closed lower for the 7th day in the last 8…

Source: Bloomberg

Cryptos rallied on the day amid some volatility. Bitcoin Cash and Litecoin outperformed on the day…

Source: Bloomberg

Bitcoin neared $11500 overnight and hovered around $11k all day…

Source: Bloomberg

While gold and silver rebounded intraday, oil prices tumbled with WTI back below $41 ahead of tonight’s API data…

And as Gold reaches record nominal highs, its has room to run on an inflation-adjusted basis…

Source: Bloomberg

Finally, yields are back at record lows… stocks aren’t!

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

Silver & Crypto Are Snapping Higher Again Ahead Of Asian Open

Whether in anticipation of Robinhooders using their soon-to-be-delivered new stimulus checks to lever into precious metals and crypto (or all the reasons in the world a weak dollar and flight to non-fiat), cryptos and PMs are lurching higher once again in the pre-Asian open.

Bitcoin is nearing $11,500…

Ethereum is at almost #335…

And Silver futures tagged $25…

One question remains on Silver’s surge – is this pure levered speculation?

And the dollar is opening lower in early trading.

 

END

THEN

Gold Futures Hit $2000 After US Mint Reduces Bullion Coin Supplies

Gold and Silver futures prices have extended their gains after hours, with the barbarous relic hitting $2000…

…and silver topping $26.

This move came after Bloomberg reported  that, according to documents reporters had seen, the U.S. Mint has reduced the volume of gold and silver coins it’s distributing to authorized purchasers as the coronavirus pandemic slows production.

As we previously noted, sales of silver and gold coins had been surging until the pandemic hit and shutdown production.

The Mint’s West Point complex in New York is taking measures to prevent the virus from spreading among its employees, and that will probably slow coin production there for the next 12 to 18 months.

The facility is no longer able to produce gold and silver coins at the same time, forcing it to choose one metal over the other, according to the document, which was presented to companies authorized to buy coins from the Mint last week.

Bloomberg reports that a spokesman for the Mint didn’t immediately have comment.

“The pandemic created a whole new set of challenges for us to manage,” the Mint said in the document.

“We believe that this environment is going to continue to lead to some degree of reduced capacity as West Point struggles to balance employee safety against market demand.”

Ahead of this unexpected interruption in supply, the premium for physical gold was already high 

…and we suspect this will send it soaring back near those $100 levels seen at the last Mint production halt.

END

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Fed extends its emergency lending program by 3 months as it is not convinced we have a V shaped recovery

(zerohedge|

Fed Extends Emergency Lending Programs Through End Of Year

US stock prices are at record highs and credit spreads near record lows amid hopes and prayers for the v-shaped recovery which has already sent US macro surprise data soaring.

But, it appears The Fed is not buying the bounce and feels like the “economy” needs help a “little” longer, extended most of its emergency lending programs by three months, through the remainder of 2020.

Full Fed Statement:

The Federal Reserve Board on Tuesday announced an extension through December 31 of its lending facilities that were scheduled to expire on or around September 30. The three-month extension will facilitate planning by potential facility participants and provide certainty that the facilities will continue to be available to help the economy recover from the COVID-19 pandemic.

The Board’s lending facilities have provided a critical backstop, stabilizing and substantially improving market functioning and enhancing the flow of credit to households, businesses, and state and local governments. Each facility was created under section 13(3) of the Federal Reserve Act with the approval of the Treasury Secretary.

The extensions apply to the Primary Dealer Credit Facility, the Money Market Mutual Fund Liquidity Facility, the Primary Market Corporate Credit Facility, the Secondary Market Corporate Credit Facility, the Term Asset-Backed Securities Loan Facility, the Paycheck Protection Program Liquidity Facility, and the Main Street Lending Program. The Municipal Liquidity Facility is already set to expire on December 31, with the Commercial Paper Funding Facility set to expire on March 17, 2021.

Further details on each can be found here.

And since these programs are as permanent as death and taxes, no matter the claims from Powell and the Fed to the contrary, expect many more “3 month extensions” from now until the day the USD loses its reserve status.

 

END
US consumer confidence slides in July/hope plunges.
(zero hedge)

US Consumer Confidence Slides In July As Hope Plunges

While ‘hope’ had rebounded, headline consumer confidence data from The Conference Board was expected to slide back lower in July, and it did with a notable disappointment.

Headline consumer confidence fell from 98.3 to 92.6 (well below the 95.0 expectations)

  • Present situation confidence rose to 94.2 vs. 86.7 last month.
  • Consumer confidence expectations fell to 91.5 vs. 106.1 last month.

Not a “V”…

Source: Bloomberg

Buying expectations fell for Autos and Appliances but rose modestly for Homes as only 31% of Americans surveyed see business getting better within six months.

If only record high stocks sparked confidence in the future.

iii) Important USA Economic Stories

EVICTION WAVE COMING!!

(zerohedge)

“Like Nothing We’ve Ever Seen”: Imminent Eviction Wave Is Coming To These States

The eviction moratorium expired last Friday nearly four months after the US economy effectively shutdown due to the covid pandemic, and more than 12 million renters – all behind on rent payments because of the virus-induced recession – are now at imminent risk of getting booted to the curb.

This Friday, some 25 million Americans will no longer receive their weekly $600 federal unemployment checks, and the next round of government handouts, currently discussed by Republicans and Democrats, could see benefits slashed from $600 to $200 (or be nothing at all if no deal is reached in Congress). This would crush household finances across middle-class America, resulting in an even higher number of households unable to pay their rent bill in the months ahead.

That said, Trump’s top economic advisor Larry Kudlow, who has religiously pumped stocks with meaningless headlines any time the S&P is even barely in the red, recently said an extension for the eviction moratorium program could be seen. But what if there isn’t one?

In late July, more than 31 million Americans collected unemployment benefits of some form. The economic recovery reversed in late June, as the next crisis among households looms.

“It’s like nothing we’ve ever seen,”  said John Pollock, coordinator of the National Coalition for a Civil Right to Counsel.

In 2016, there were 2.3 million evictions, Pollock said.

“There could be that many evictions in August,” he said.

On Sunday, food bank lines reemerged as people’s benefits ran out. The number of jobless Americans is staggering and downright, depressionary, suggesting no labor market recovery this year or next.

With a fiscal cliff unfolding, benefits set to run out, and a rebound in the economy reversing, Household Pulse Data from mid-July outlines an even gloomier rent crisis unfolding.

The analysis is based on Household Pulse Data from mid-July and it found that some states will be hit harder than others. For example, West Virginia is estimated to have the highest share of renter households facing eviction at close to 60%. Tennessee, Minnesota, Mississippi, Florida and Louisiana are all among the states set to be worst impacted with shares at 50% or higher. Elsewhere, Vermont is the state where renters will be at the lowest risk of eviction, though 22% of them will potentially lose their homes over the course of the crisis. – Forbes

Shown below (charted by Statista), here are the states where renters will be pressured the most.

The Trump administration doesn’t have the tools to solve the crisis – fiscal and monetary policy can only delay round two of the economic crash until after the elections. Meanwhile chaos and disagreement on Capitol Hill means that there is still no deal on a rent moratorium extension, which means that the coming weeks could see the largest ever US rent crisis, one which would make 2008 look like child’s play.

 

END

Daniel Lacalle on the huge problems the uSA is facing with its huge deficits

(Daniel Lacalle)

The United States Will Not Recover By Raising Taxes Or Printing Money

Authored by Daniel Lacalle,

The dramatic economic decline due to the Covid-19 crisis and the unprecedented recovery spending plans approved by President Trump will drive the fiscal 2020 United States budget deficit to a record $3.8 trillion, or 18.7% of U.S. gross domestic product,according to the Committee for a Responsible Federal Budget (CRFB). According to the same estimates, the fiscal 2021 deficit would reach $2.1 trillion in 2021, and average $1.3 trillion through 2025 as the economy recovers from the impact of the forced shutdowns.

To finance this staggering fiscal effort, the Democratic Party leader, Joe Biden, is announcing a massive tax hikthat will neither help the economy nor reduce the deficit.

The solution to the United States budget deficit is not more taxes. Even in the most optimistic receipt scenario, there is no tax hike program that would even start to address the structural deficit, estimated at one trillion dollars a year, even less with the above-mentioned estimates.

More taxes will hurt the recovery, damage the job improvement potential, and reduce investment in the economy. More taxes mean less growth and no deficit improvement.

The Obama administration learnt this lesson quickly, and extended the Bush tax cuts in 2020, adding a new tax cut in 2013. Other United States misguided tax hikes in 2013 did nothing to reduce the debt and kept the economic and job growth below potential.

A wealth tax, often repeated by the most extreme politicians in America, would not only provide exceedingly small revenues for the Treasury, it would generate more negatives than any improvement in tax receipts. There is a reason why almost every European nation has abandoned the wealth tax. The receipts are negligible and the negative impact on investment, attraction of capital and job creation outweigh any revenue increase. The wealth tax revenue relative to GDP in the countries where it exists range between 0.07% in Finland to 0.22% in France. There is no way that a wealth tax would collect 1.4% of GDP as Senator Warren estimated. A wealth tax in the United States would make no visible reduction in the existing deficit, let alone finance the trillions in entitlement spending that Biden has announced.

So, how can the United States reduce the deficit?

US deficit is rising due to excessive spending increases, despite periods of rising tax receipts. The federal government’s revenue went up by 4%, to $3.46 trillion in the 2019 fiscal year, according to the Congressional Budget Office (CBO) report. However, spending went up by more than 8%, to $4.45 trillion.

The rise in 2019 deficit was not due to the “tax cuts”. If anything, the tax cuts helped the economy stay in expansion, creating jobs and increasing receipts at the same time. Corporate income taxes increased by $25 billion (+12%), while individual income and payroll taxes together rose by $107 billion (+4%). Overall, total receipts rose by 4% ($3,462 billion in the fiscal year 2019). Total receipts remained at 16.15% of GDP, which is the long-term trend figure and consistent with an economy that remained in expansion with moderate growth.

The main problem is that total outlays rose by 8% (to $4,446 billion), driven mostly by mandatory expenses in Social Security, Medicare, and Medicaid.

Those that say that the deficit would have been solved eliminating the Trump tax cuts have a problem with mathematics. There is no way in which any form of revenue measure would have covered a $338 billion spending increase.

No serious economist can believe that keeping uncompetitive tax rates well above the average of the OECD would have generated more receipts. Furthermore, no serious economist can believe that eliminating the Trump tax cuts would have generated more than $300 billion of new and additional revenues.

Remember that corporate tax receipts already fell 1% in 2017 and 13% in 2016, before the Trump tax cuts. The operating profit recession was already evident. If anything, reducing the corporate rate helped companies recover, which in turn made total fiscal revenues rise by $13 billion to $3,328 billion in the fiscal year 2018, according to CBO.

The problem of the United States budget is Mandatory Spending.

Mandatory spending was $2 trillion out of a total of $4.45 trillion outlays in fiscal year 2019.  This figure is projected to increase to $3.3 trillion. Even if discretionary spending stays flat, total outlays are estimated to increase significantly above any advance in tax revenues.

Printing money has not reduced deficits or debt. The Federal Reserve has increased its balance sheet to record-highs, on its way to $10 trillion, and purchasing Treasuries has only driven governments to continue to spend above budget and the trend of receipts.

Furthermore, if proponents of massive money printing tell us that deficits do not matter and that the United States government should spend all it needs because the Fed will acquire all the debt, then there is no need for higher taxes, is there? In fact, if Modern Monetary Theory (MMT) proponents were right, taxes should be cut, and deficits monetized to drive the recovery.

Consequently, the only solution for America to reduce debt is to cut spending and entitlements.

Any politician should understand that it is simply impossible to collect an additional $3 trillion per year over and above the existing receipts. They should also understand that the trust in the US dollar may collapse if deficits continue to balloon.

It is completely impossible to double the receipts of a growth year like 2019 with higher taxes. Higher taxes will only wreck an already weak economy and delay the recovery.  It is completely impossible to reduce deficits printing money. Governments will only increase spending if they can monetize it at the expense of real wages and savings.

Believing that the deficit can be reduced by massively hiking taxes is not understanding the US economy and the global situation. It would lead to job destruction, corporate relocation to other countries and lower investment. Believing that the deficit will be reduced printing money is not understanding the perverse incentives of governments.

The proof that the US problem is a spending issue is that even those who propose massive tax hikes are not expecting to meaningfully cut the deficit, even less so reduce the debt, that is why they add massive money printing to their magic solutions. It will not work either. And this reckless policy may destroy the US dollar’s reserve status.

Debt matters, even if interest rates are low. Increasing debt and spending means lower growth and weaker real wages in the future.

END

People are dying needlessly..they should be taking HCQ prophylactically and  when initially hit by the virus

(Glennon/Wirepoints)

llinois Media & The State Should Immediately Update Their Message On Hydroxychloroquine

Authored by Mark Glennon via Wirepoints.org,

If you read nothing else in recent news about the fight against coronavirus, read the Newsweek column from Thursday by a leading epidemiologist at Yale University, Harvey A. Risch headlined, “The Key to Defeating COVID-19 Already Exists. We Need to Start Using It.”

It might save your life. 

“Tens of thousands of patients with COVID-19 are dying unnecessarily. Fortunately, the situation can be reversed easily and quickly,” Risch wrote, and he detailed exactly why.

It’s about the most current scientific evidence that hydroxychloroquine, also known as HCQ, is safe and effective for many COVID-19 victims when used with the right combination of other drugs, particularly for high-risk patients who are treated early.

His conclusion:

For the sake of high-risk patients, for the sake of our parents and grandparents, for the sake of the unemployed, for our economy and for our polity, especially those disproportionately affected, we must start treating immediately.

Only if you follow national news on coronavirus have you already read about Risch’s article. It has been republished elsewhere there and widely quoted.

But not in Illinois, and most Illinoisans undoubtedly are unaware of the latest science on hydroxychloroquine that Risch summarized. Most folks get their news by a cursory glance at headlines, a few chosen stories and maybe an evening local TV program.

Search Illinois media sources and you will find that almost all reporting on hydroxychloroquine is at least 45 to 60 days old. At the time, the drug was being dismissed as ineffective based on studies that have turned out to be defective, for reasons Risch describes.

Worse, on Friday the Chicago Tribune published an exceptionally dishonest and irresponsible New York Times article that claims no value in HCQ and entirely ignores the most recent scientific evidence Risch wrote about.

And the last word on HCQ from the State of Illinois was on April 19 when Governor JB Pritzker said he would not prohibit doctors from prescribing it for COVID19, but that there was no evidence that it is effective.

HCQ “is being overused without a lot of testing to back it up.”

“I don’t disagree that it shouldn’t be used off brand unless you really know that it works and right now we just don’t know that it works,” he said.

Pritzker and the Illinois Department of Public Health should update that to present the current research.

Another reason HCQ hasn’t been widely used are concerns earlier expressed that it could cause heart problems.

But I was recently contacted by a leading Chicago area physician and researcher, Chad Prodromos, who has found no evidence of that. He suspected that concern was unfounded based on his familiarity with HCQ, which has been widely used for decades for other purposes, so he dug into it.

Dr. Chadwick Prodromos

The unfounded concern was costing lives, he told me, so The FOREM, a non-profit research foundation he founded, performed a thorough, systematic review of the relevant peer reviewed literature on the issue. They found no evidence of any material cardiovascular risk.

They further discovered, to their surprise, that numerous recent high quality studies have uniformly shown that HCQ is actually quite protective to the heart. A radio interview of Prodromos on his study is here.

The biggest reason hydroxychloroquine has been dissed is that it has been politicized. It’s perhaps the saddest chapter yet in the politicization of science. President Trump hyped HCQ early, so many national and local pundits immediately ridiculed it. From Risch’s article:

I believe this misbegotten episode regarding hydroxychloroquine will be studied by sociologists of medicine as a classic example of how extra-scientific factors overrode clear-cut medical evidence. But for now, reality demands a clear, scientific eye on the evidence and where it points.

Look, I don’t care what you think of Trump. Cheer him if you want for promoting HCQ early, or shame him for doing so before he had the evidence for it. Just get the damn politics out of it and report the science pro and con.

And if you’re in the high risk group that may be helped by HCQ, get diagnosed fast if you think you may have the virus and consider using the drug with a doctor’s consultation.

Nor am I making any firm claims about HCQ’s efficacy or risks. That’s for the experts to sort out – and for you and your doctor if you get infected.

The sole point for now is just that the latest findings on hydroxychloroquine have not yet been told to Illinoisans, and that’s putting lives at risk.

end
Baseball season in jeopardy as the Miami Marlins season has been paused.
(zerohedge)

Miami Marlins Season “Paused” As Team Stuck Quarantining In Philly

After Tuesday’s round of COVID-19 tests confirmed four more infections, the Miami Marlins, who have cancelled 4 games against the Orioles as players remain quarantined in Philadelphia, have decided to “temporarily pause” their season as the shortened 2020 MLB season gets off to a rocky start.

Despite the league’s insistence that it will double-down on health and safety practices and that there were “no plans” to cancel the season, speculation as intensified as more games have been cancelled because of the situation with the Marlins.

According to the Miami Herald, the Marlins’ two games scheduled for Wednesday and Thursday against the Orioles in Baltimore have been postponed. The entire 4-game series between the two teams has now been cancelled. The league is expected to make an announcement with more details later in the day.

Despite the league’s insistence, the numbers are simply becoming too difficult to work with. With roughly half the team’s roster now testing positive, it’s unlikely the team will be playing games in the immediate future. They’re not even sure when they will be returning to South Florida, or when games will be played. Those who test positive must remain in quarantine in Pennsylvania until they get two negative tests 24 hours apart.

The situation is making players increasing uncomfortable, particularly since if they get seriously ill, the league can’t be held liable. A majority of Washington Nationals players voted against traveling to Miami for a three-game series at Marlins Park that was supposed to begin Friday.

If the team is forced to miss the rest of the series against the Nationals, that will be 7 out of 60 games already cancelled due to this latest outbreak.

Right now, the best case scenario for the Marlins would involve promoting prospects and low-level veterans to fill in for the sick players.

According to the league’s operations manual for the season, sick players and staff members are not allowed to travel or visit club facilities until after they have had two negative tests with at least 24 hours between them and show no fever for at least 72 hours.

The Phillies haven’t seen any new players test positive since playing the Marlins (though the team suffered some infections during spring training) but out of caution, the team potentially won’t be playing again until Friday. They were supposed to travel to New York to play the Yankees on Wednesday and Thursday.

And that’s hardly the end of the ripple effect. The next week or so will be critical for the league. And if more teams start seeing cases, the season could be aborted before it truly begins.

iv) Swamp commentaries)

 

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

GOP Rep @RepMattGaetz: I’ve filed a criminal referral against Facebook CEO Mark Zuckerberg for making materially false statements to Congress while under oath.

    During a hearing of the House Energy and Commerce Committee and also a joint hearing of the Senate Judiciary Committee and the Senate Commerce, Science, and Transportation Committee, Mr. Zuckerberg repeatedly and categorically denied his company engaged in bias against conservative speech, persons, policies, or politics and also denied that Facebook censored and suppressed content supportive of President Donald Trump and other conservatives.

    In June of 2020 however, Project Veritas published the results of an undercover investigation featuring two whistleblowers who worked as Facebook’s “content moderators,” revealing that the overwhelming majority of content filtered by Facebook’s AI program was content in support of President Donald Trump, Republican candidates for office, or conservatism in general…

https://gaetz.house.gov/media/press-releases/congressman-matt-gaetz-files-criminal-referral-against-facebook-ceo-mark

Moderna launches coronavirus vaccine Phase 3 trial

Moderna anticipates enrolling 30,000 U.S. participants.

https://www.foxbusiness.com/markets/moderna-coronavirus-vaccine-phase-3-trial

@fundstrat: Lowest numbers of new #COVID19 cases in >3 weeks. So it’s a decisive break – even looking at daily cases vs 7D ago show surge is over  https://twitter.com/fundstrat/status/1287920997031714816

@AlexBerenson: Seems as if Team Apocalypse is losing it. The random case [Covid] surges in countries that “crushed the curve” or mandated masks, the way the Sunbelt has far fewer deaths than NY, the fact kids stubbornly refuse to get sick… reality is winning. Team Apocalypse doesn’t like reality.

      Remember: right now, most Sunbelt states appear to be past peak. They have not locked down, they have not faced hospital overrun and have relatively low death tolls compared to NY in April. WHERE IS THE EMERGENCY MERITING THIS KIND OF RESPONSE?

‘I Have NOT Been Tested’: 600,000 Accidentally Told They’ve Had COVID-19

More than 600,000 people in Tricare, a health care program of the United States Department of Defense Military Health System, received emails July 17 asking if they would donate blood for research as “survivors of COVID-19.”…   https://www.thegatewaypundit.com/2020/07/not-tested-600000-accidentally-told-covid-19/

Clinton consiglieri Lanny Davis @LannyDavis: Violent protesters lighting fires and using violence in Portland should wear @realDonaldTrump buttons. That is who they are helping.  Progressives in Portland need to call them out, including the Mayor.  ReTweet please. Don’t allow violent people help @realDonaldTrump

@ByronYork:Voices on left concerned about rioters in Portland. No longer arguing it’s ‘peaceful,’ worried about backfiring.

 

@AlexBerenson: It’s not just a few cities: homicides are up 10-50% year-over-year in practically every big city – Denver, Phoenix, Los Angeles, Boston, Houston, St. Louis, Miami – everywhere.  Forget the crack epidemic. Murder rates haven’t gone this bad this fast since the late 1960s.

https://twitter.com/AlexBerenson/status/1287704697558781953

 

Rep. Jerry Nadler calls violence from Antifa in Portland a ‘myth’ https://trib.al/fHZ6Whu

 

@charliekirk11: Just so we’re clear—the same Democrats who wholeheartedly believed in “Russian Collusion” now are saying that ANTIFA violence is “a myth”.  These are not serious people.

Ex-NSC official @RichHiggins_DC: Indicator and Warning: This weekend in Portland police confiscated 5ea. 30 round magazines, loaded, but no rifles Analyst note: Insurgent/anarchists are bringing weapons to these riots to conceal the weapons presence until “needed.”

Yesterday, the Dem and MSM narrative (There is no difference now.) changed from ‘these are peaceful protests’ to ‘the violence is Trump and Barr’s fault’.  We are not making this up!

 

US AB Bill Barr testifies at the House Judiciary Committee today.  It could be very enlightening.

 

@ByronYork: AG Bill Barr will not mince words in House testimony tomorrow. In opening statement, just released, refers to ‘grave abuses involved in the bogus ‘Russiagate’ scandal.’

https://twitter.com/ByronYork/status/1287901869600378880/photo/1

 

Fox’s @ChadPergram: Barr to Hse Judiciary Cmte Tues: Barr to tell Hse Judiciary Cmte tomorrow since he tried to “get to the bottom of the grave abuses” in Russia scandal Dems “attempted to discredit me by conjuring up a narrative that I am simply the President’s factotum who disposes of criminal cases according to his instructions”

     The number of unarmed black men killed by police so far this year is 8. The number of unarmed white men killed by police over the same time period is 11.

     In the wake of George Floyd’s death, violent rioters and anarchists have hijacked legitimate protests to wreak senseless havoc and destruction on innocent victims.  The current situation in Portland is a telling example.  There is no place in this country for armed mobs that seek to establish autonomous zones beyond government control, or tear down statues and monuments that law-abiding communities chose to erect.

 

Barr’s statement to the House Judicial Committee: https://www.politico.com/f/?id=00000173-92ce-d36e-abff-fffe9ce50000

 

Meet the Steele Dossier’s ‘Primary Subsource’: Fabulist Russian From Democrat Think Tank Whose Boozy Past the FBI Ignored – Igor “Iggy” Danchenko, a Russian national whose past includes criminal convictions and other personal baggage ignored by the FBI in vetting him and the information he fed to Steele… Agents continued to use the dossier as grounds to investigate President Trump and put his advisers under counter-espionage surveillance… In an odd twist, a 2013 federal case against Danchenko was prosecuted by then-U.S Attorney Rod Rosensteinwho ended up signing one of the FBI’s dossier-based wiretap warrants as deputy attorney general in 2017Rosenstein also signed motions filed in one of Danchenko’s public intoxication cases, according to the documents obtained by RCI. [You can’t make this up!]…

    Danchenko confessed he had no inside line to the Kremlin and was “clueless” when Steele hired him in March 2016 to investigate ties between Russia and Trump and his campaign manager…Instead of closing its case against Trump, however, the FBI continued to rely on the information Danchenko dictated to Steele for the dossier, even swearing to a secret court that it was credible enough to renew wiretaps for another nine months

https://www.realclearinvestigations.com/articles/2020/07/24/meet_steele_dossiers_primary_subsource_fabulist_russian_at_us_think_tank_whose_boozy_past_the_fbi_ignored_124601.html?s=09

 

Students see spike in reported violent crime after University of Minnesota cuts ties with Minneapolis Police Department – Students have expressed serious concerns about their safety at the University of Minnesota due to an increase in crime and a lack of police presence…

https://www.campusreform.org/?ID=15334

 

Minneapolis Communities Form Watch Groups, Build Barricades to Fight Crime Surge

https://dailycaller.com/2020/07/27/minneapolis-communities-security-watch-groups-barricades-fight-crime-surge-george-floyd/

 

@KyleBrandt: There’s a segment of the NFL media that seems to be almost rooting for COVID to affect the season. They want it. They see the Marlins news and say, “Yep! Lots of luck, football!”  These are people who make their livings off football.  I don’t get it.

Well that is all for today

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