AUGUST 5//GOLD SETS ANOTHER RECORD CLOSE: UP $33.15 TO $2036.30//SILVER ALSO UP SHARPLY TO $26.74 UP $1.03//HUGE INCREASE IN GOLD TONNAGE AT THE COMEX: GOLD STANDING 150 TONNES/ALSO 5.4 MILLION OZ OF SILVER STANDING FOR AUGUST//CHINA VS USA//CORONAVIRUS UPDATES THROUGHOUT THE GLOBE//STORY BEHIND THE EXPLOSION IN LEBANON//SWAMP STORIES FOR YOU TONIGHT///

GOLD:$:  2036.30  UP $33.15  The quote is London spot price (cash market)

A NEW RECORD HIGH CLOSING

 

 

 

Silver:$26.74// UP $1.03   London spot price ( cash market)

 

 

 

 

 

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Closing access prices:  London spot

i)Gold : $2038.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $26.94//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

AUGUST GOLD:   $2033.00  CLOSE  1::30 PM  SPREAD SPOT/FUTURE AUG  (BACKWARD  $3.30)

OCT GOLD:  $2035.40  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE OCT /:   BACKWARD: $1.10//

 

 

DEC. GOLD  $2047,80   CLOSE 1.30 PM      SPREAD SPOT/FUTURE DEC   $11.50   ($ NORMAL CONTANGO)

 

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $26.81…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  7 CENTS  PER OZ  ( NORMAL CONTANGO)

SILVER DECEMBER  CLOSE:     $27.04  1:30  PM SPREAD SPOT/FUTURE DEC.       : 31  CENTS PER OZ  ( 29 CENTS ABOVE NORMAL CONTANGO)

 

COMEX DATA

 

 

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

receiving today: 452/1437

issued 585

EXCHANGE: COMEX
CONTRACT: AUGUST 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 2,001.200000000 USD
INTENT DATE: 08/04/2020 DELIVERY DATE: 08/06/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 2
072 H GOLDMAN 242
104 C MIZUHO 106
118 H MACQUARIE FUT 13
159 C ED&F MAN CAP 5
167 C MAREX 95
323 C HSBC 7
332 H STANDARD CHARTE 40
355 C CREDIT SUISSE 9
435 H SCOTIA CAPITAL 600
657 C MORGAN STANLEY 11 21
657 H MORGAN STANLEY 192
661 C JP MORGAN 585 292
661 H JP MORGAN 160
686 C INTL FCSTONE 3 1
690 C ABN AMRO 96 28
700 C UBS 38
709 C BARCLAYS 117
709 H BARCLAYS 2
732 C RBC CAP MARKETS 4
737 C ADVANTAGE 34 13
800 C MAREX SPEC 8 5
880 C CITIGROUP 4
880 H CITIGROUP 140
905 C ADM 1
____________________________________________________________________________________________

TOTAL: 1,437 1,437
MONTH TO DATE: 41,349

NUMBER OF NOTICES FILED TODAY FOR  AUGUST CONTRACT: 1437 NOTICE(S) FOR 503,800 OZ  (15.67 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  39,912 NOTICES FOR 3,991,200 OZ  (124.14 TONNES)

 

 

SILVER

 

FOR AUGUST

 

 

185 NOTICE(S) FILED TODAY FOR 925,000  OZ/

total number of notices filed so far this month: 1097 for 5.585 MILLION oz

 

BITCOIN MORNING QUOTE  $11,405  UP 205

 

BITCOIN AFTERNOON QUOTE.: $11,673 UP 480

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $33.75 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A HUGE CHANGES IN GOLD INVENTORY AT THE GLD/// A DEPOSIT OF 9.35 PAPER TONNES INTO THE GLD

 

 

 

 

GLD: 1,257.73 TONNES OF GOLD//

 

 

WITH SILVER UP $1.03 TODAY: AND WITH NO SILVER AROUND:

 

A HUGE CHANGES IN SILVER INVENTORY AT THE  SLV: SURPRISINGLY:

A MONSTER PAPER DEPOSIT OF 5.403 MILLION OZ FROM THE SLV//

 

 

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 572.564  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A HUMONGOUS SIZED 5894 CONTRACTS FROM 199,633 UP TO 205,527, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE HUGE SIZED GAIN IN  OI OCCURRED WITH OUR $1.45 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 VERY STRONG INCREASE IN SILVER OZ. STANDING AT THE COMEX FOR AUGUST.  WE HAD A HUGE NET GAIN IN OUR TWO EXCHANGES OF 7430 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:   SEP 1186 DEC:  350 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1536 CONTRACTS. WITH THE TRANSFER OF 104 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 1536 EFP CONTRACTS TRANSLATES INTO 7.430 MILLION OZ  ACCOMPANYING:

1.THE 23 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

86.470 MILLION OZ FINAL STANDING IN JULY.

6.290 MILLION OZ INITIAL STANDING IN AUGUST

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 145 CENTS ).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE HUGE GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A STRONG INCREASE IN SILVER OZ STANDING  FOR AUGUST,  STRONG BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A HUGE NET GAIN OF 7430 CONTRACTS OR 19.96 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

 

SPREADING OPERATIONS/NOW SWITCHING TO SILVER

 

 

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 SILVER  AS WE HEAD TOWARDS THE NEW ACTIVE FRONT MONTH OF SEPT.

 

 

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

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

 

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

 

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

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

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

 

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF AUGUST. BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (SEPT), 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

AUGUST

 

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

2753 CONTRACTS (FOR 3 TRADING DAY(S) TOTAL 2753 CONTRACTS) OR 13.765 MILLION OZ: (AVERAGE PER DAY: 917 CONTRACTS OR 4.588 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST: 13.765 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 1/97% 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:          1,285.13 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                               133.95 MILLION OZ/ (EXCHANGE FOR PHYSICALS STARTING TO RISE EXPONENTIALLY AGAIN)

AUGUST EXP                          13.765  MILLION OZ (EXCHANGE FOR PHYSICALS INCREASING)

 

 

 

RESULT: WE HAD A HUGE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 5894, WITH OUR 145 CENT GAIN  IN SILVER PRICING AT THE COMEX ///TUESDAY THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1536 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 AN ATMOSPHERIC SIZED OI CONTRACTS ON THE TWO EXCHANGES:  7430 CONTRACTS (WITH OUR  $1.45 GAIN IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1536 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A HUGE SIZED INCREASE OF 5894 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 145 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $25.71 // TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.9980 BILLION OZ TO BE EXACT or 142% of annual global silver production (ex Russia & ex China).

FOR THE NEW AUGUST  DELIVERY MONTH/ THEY FILED AT THE COMEX: 185 NOTICE(S) FOR 925,000  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 WAS 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 86.470 million oz//AUGUST 6.290 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 FAIR SIZED 3904 CONTRACTS TO 561,837 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 FAIR SIZED GAIN OF COMEX OI OCCURRED DESPITE OUR HUGE  RISE IN PRICE  OF $31.75 /// COMEX GOLD TRADING// TUESDAY// WE  HAD HUGE BANKER SHORT COVERING, A HUGE SIZED INCREASE IN GOLD TONNAGE STANDING AT THE COMEX FOR AUGUST, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A SMALL EXCHANGE FOR  PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR HUGE GAIN IN PRICE OF $31.75. 

 

 

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

 

WE GAINED A GOOD SIZED 6419 CONTRACTS  (19.96 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 2515 CONTRACTS:

CONTRACT .; AUG 0 AND OCT: 0 DEC: 2515; FEB: 0  ALL OTHER MONTHS ZERO//TOTAL: 2515.  The NEW COMEX OI for the gold complex rests at 561,837. 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 GOOD SIZED inCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6419 CONTRACTS: 3904 CONTRACTS INCREASED AT THE COMEX AND 2515 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6419 CONTRACTS OR 19.96 TONNES. TUESDAY, WE HAD A HUGE GAIN OF $31.75 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A GOOD SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 19.96 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 $31.75).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL AS WE HAD A GOOD NET GAIN ON OUR TWO EXCHANGES. 

 

 

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (2515) ACCOMPANYING THE FAIR SIZED GAIN IN COMEX OI  (3904 OI): TOTAL GAIN IN THE TWO EXCHANGES:  6419 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)A STRONG INCREASE IN GOLD TONNAGE  STANDING AT THE GOLD COMEX FOR THE FRONT AUGUST MONTH,  3) ZERO LONG LIQUIDATION; 4) FAIR COMEX OI GAIN AND .5) SMALL EXCHANGE FOR PHYSICAL ISSUANCE  AND  …ALL OF THIS WAS COUPLED WITH OUR VERY STRONG GAIN IN GOLD PRICE TRADING//TUESDAY//$31.75.

 

WE ARE BEGINNING TO WITNESS A LACK OF EXCHANGE FOR GOLD PHYSICALS UNDERWRITTEN DUE TO PREMIUMS STARTING TO REAPPEAR IN THE FUTURE PRICE OF GOLD VS LONDON SPOT. THE COST TO THE BANKERS IS JUST TOO GREAT TO ENGAGE IN THESE VEHICLES ONCE THIS OCCURS.

THE FACT THAT WE ARE CONTINUALLY SEEING A DROP IN COMEX OPEN INTEREST AND VOLUMES COUPLED WITH LESS EXCHANGE FOR PHYSICALS PROBABLY MEANS THAT OUR LONGS ARE ALREADY DEPARTING NEW YORK FOR THE NEW PHYSICAL PLATFORM AT LONDON’S LME.

 

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

AUGUST

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF AUGUST : 4972, CONTRACTS OR 497,200, oz OR 15.46 TONNES (3 TRADING DAY(S) AND THUS AVERAGING: 1657 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 3 TRADING DAY(S) IN  TONNES: 15.46 TONNES

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

THUS EFP TRANSFERS REPRESENTS 15.46/3550 x 100% TONNES =0.439% 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   3274.00  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;                       313.09 TONNES ..(EXCHANGE FOR PHYSICALS REVERSE COURSE AND ARE NOW INCREASING!)

AUGUST TOTAL EFP ISSUANCE;                 15.46 TONNES

 

 

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

First, here is an outline of what will be discussed tonight:

 

1.Today, we had the open interest at the comex, in SILVER, ROSE BY A HUGE SIZED 5894 CONTRACTS FROM 199,633 UP TO 205,527 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 HUGE 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) ANOTHER STRONG INCREASE IN SILVER OZ  STANDING AT THE SILVER COMEX FOR AUGUST,  AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 1536 CONTRACTS

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

 SEPT: 1186 AND DEC. 350 AND  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1536 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 5894  CONTRACTS TO THE 1536 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN ATMOSPHERIC GAIN OF 7430 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 37.15 MILLION  OZ, OCCURRED WITH OUR 145 CENT GAIN IN PRICE///

NOBODY IS LEAVING  THE SILVER ARENA AND NOBODY IS LEAVING THE GOLD ARENA!!

 

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

(report Harvey)

 

 

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 5.88 POINTS OR 0.17%  //Hang Sang CLOSED UP 155.91 POINTS OR 0.63%   /The Nikkei closed DOWN 58.81 POINTS OR 0.26%//Australia’s all ordinaires CLOSED DOWN .50%

/Chinese yuan (ONSHORE) closed UP  at 6.9400 /Oil UP TO 43.17 dollars per barrel for WTI and 45.84 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9400 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9403 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  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A FAIR  SIZED 3904 CONTRACTS TO 561,837 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 SMALLISH COMEX INCREASE OCCURRED DESPITE OUR VERY STRONG  GAIN OF $31.75 IN GOLD PRICING /TUESDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (2515 CONTRACTS),.  THUS WE HAD 1) STRONG BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  STRONG INCREASE IN GOLD OZ  STANDING AT THE GOLD COMEX//AUGUST DELIVERY MONTH (SEE BELOW) …  AS WE ENGINEERED A GOOD GAIN ON OUR TWO EXCHANGES OF 6629 CONTRACTS DESPITE GOLD’S VERY STRONG GAIN IN PRICE.  WE HAVE LATELY WITNESSED THE EXCHANGE FOR PHYSICALS ISSUED BEING SMALL….. AS IT JUST TOO COSTLY FOR THEM TO CONTINUE SERVICING THE COSTS OF SERIAL FORWARDS CIRCULATING IN LONDON. 

 

 

 

(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 SMALL SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 2515 EFP CONTRACTS WERE ISSUED:  AUG  0 , OCT: 0  DEC 2515; FEB 00 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2515 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: 6419 TOTAL CONTRACTS IN THAT 2515 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A FAIR SIZED 3904 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A SMALL AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR FAIR COMEX INCREASE IN GOLD TONNAGE STANDING FOR AUGUST…..  ZERO LONG LIQUIDATION, AND…..AND WITH ALL OF THE ABOVE WE HAD A HUGE RISE IN COMEX PRICE OF 31.75 DOLLARS..

 

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $31.75).  AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED  19.96 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 6419, CONTRACTS OR 641900 OZ OR 19.96 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:  561,837 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 56.18 MILLION OZ/32,150 OZ PER TONNE =  1747 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1747/2200 OR 79.42% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 378,879 contracts// FAIR volume//

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  306,102 contracts//  volume FAIR //most of our traders have left for London

 

 

AUGUST 5 /2020

JULY GOLD CONTRACT MONTH

INITIAL STANDING FOR AUGUST GOLD

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz 76,410.203 oz

Brinks

Scotia

 

 

 

Deposits to the Customer Inventory, in oz  

39,063.513

OZ

JPM

 

 

 

No of oz served (contracts) today
1437 notice(s)
 143700 OZ
(4.469 TONNES)
No of oz to be served (notices)
6919 contracts
(691,900 oz)
21.52 TONNES
Total monthly oz gold served (contracts) so far this month
41,349 notices
4,134,900 OZ
128.61 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 2 deposit into the dealer

i) Int the dealer Brinks:  16,357.531 oz

 

ii) Into Scotia:  60,052.672 oz

 

 

 

 

 

total deposit: 76,410.203 oz

 

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 1 deposit into the customer account

i) Into JPMorgan:  39,063.513 oz

 

 

 

total deposit:  39,063.513  oz

 

 

we had 0 gold withdrawals from the customer account:

 

 

total withdrawals;  nil

 

 

 

We had 0  kilobar transactions  +

 

ADJUSTMENTS: 2 //

 

i)customer to dealer//Manfra:  (eligible to registered)

44,271.927  oz adjusted out of th e customer and this lands into the dealer account

 

 

dealer to customer acct

ii)Brinks:

578.718 oz was adjusted out of the dealer and this lands into the customer account of Brinks

 

 

 

 

 

The front month of AUGUST registered a total of 8356 CONTRACTS as we lost 4236 contracts. We had 5038 notices served on TUESDAY so we GAINED 802 contracts or an additional 80,200 will stand for delivery on this side of the pond as they refused to morph into London based forwards as well as negating a fiat bonus. WE will no doubt see from this point until the end of the month queue jumping by the bankers as they try and lay their hands on physical metal over here to put out fires elsewhere….

 

 

 

After August we have the non active Sept contract month.. Here we saw another gain of 17 contracts to stand at 3277.  Oct lost 158 contracts down to 70,263

 

The big December contract gained 7366 contracts down to 415,756 contracts.

 

We had 1437 notices filed today for  143700 oz

 

FOR THE AUGUST 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 585 notices were issued from their client or customer account. The total of all issuance by all participants equates to 1437 contract(s) of which 160  notices were stopped (received) by j.P. Morgan dealer and 292 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 2 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the AUGUST /2020. contract month, we take the total number of notices filed so far for the month (41349) x 100 oz , to which we add the difference between the open interest for the front month of  AUGUST (8356 CONTRACTS ) minus the number of notices served upon today (1437 x 100 oz per contract) equals 4,826,800 OZ OR 150.133 TONNES) the number of ounces standing in this active month of JUNE

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

No of notices filed so far (41349, x 100 oz + (8356 OI) for the front month minus the number of notices served upon today (1437) x 100 oz which equals 4,826,800 oz standing OR 150.133 TONNES in this  active delivery month. This is a HUGE  amount for gold standing for a AUGUST delivery month (an active delivery month).

We GAINED  a huge 802 contracts or 80,200 oz of gold refused to morph into London based forwards.

 

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)

231,924.295 oz  (some deleted august 3)         JPM

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

total pledged gold:  1,052,918.710 oz                                     32.75 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 445.93 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 150.133 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  15,389,794.216 oz or 478.68 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/July 03/august 3) which cannot be settled upon:  231,924.295 oz (or 7.2138 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:  1,052,918.710 oz or 32.75 tonnes
thus:
registered gold that can be used to settle upon:  14,336,876.0  (445.93 tonnes)
true registered gold  (total registered – pledged tonnes  14,336,876.0 (445.93 tonnes)
total eligible gold:  21,201,430.428 oz (659.85 tonnes)

total registered, pledged  and eligible (customer) gold;   36,591,224.644 oz 1,138.14 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  1011.18 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

AUGUST 5/2020

And now for the wild silver comex results

 

 

AUGUST SILVER COMEX CONTRACT MONTH//INITIAL STANDINGS

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 150,853.670 oz
CNT

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
321,566.120 oz
manfra
No of oz served today (contracts)
185
CONTRACT(S)
(925,000 OZ)
No of oz to be served (notices)
161 contracts
 805,000 oz)
Total monthly oz silver served (contracts)  1097 contracts

5,485,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month

 

We had 0 deposit into the dealer:

total dealer deposits: nil  oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 1 deposits into the customer account

into JPMorgan:   nil oz

 

 

 

ii) Into Manfra: 321,566.120 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 48,69% of all official comex silver. (163.677 million/336.295 million

 

total customer deposits today:  321,566.120    oz

we had 1 withdrawals:

 

 

 

i)   Out of CNT:  150,853.670 oz

 

 

 

total withdrawals; 150,853.670    oz

We had 0 adjustments

Total dealer(registered) silver: 126.845 million oz

total registered and eligible silver:  336.295 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

the front month of August registered an open interest of 346 contracts and thus we lost 120 contracts.  We had 218 notices filed on Monday so we gained a huge 98 contracts or 490,000 oz will stand for delivery as they refused to morph into London based forwards and they thus negated a fiat bonus. The bankers are now desperate in their search for badly needed silver and for that matter gold as well.

 

 

After August we have the  big September contract month and here we see a gain of 2444 contracts up to 136,468. November saw another gain of 62 contracts to stand at 68.

The big December contract month saw its OI rise by 3218 contracts up to 59,352

 

The total number of notices filed today for the AUGUST 2020. contract month is represented by 185 contract(s) FOR 925,000, oz

 

To calculate the number of silver ounces that will stand for delivery in AUGUST we take the total number of notices filed for the month so far at 1097 x 5,000 oz = 5,485,000 oz to which we add the difference between the open interest for the front month of AUGUST.(346) and the number of notices served upon today 185 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the AUGUST/2019 contract month: 1097 (notices served so far) x 5000 oz + OI for front month of AUGUST (346)- number of notices served upon today (185) x 5000 oz of silver standing for the AUGUST contract month.equals 6,290,000 oz. ..VERY STRONG FOR A NON ACTIVE MONTH.

We gained a very strong 98 contracts or an additional 490,000 will stand for delivery. Queue jumping is alive and well for both gold and silver this month.

 

 

 

TODAY’S ESTIMATED SILVER VOLUME : 215,958 CONTRACTS // volume huge+++++++/

 

 

FOR YESTERDAY: 176,685.  ,CONFIRMED VOLUME//volume huge+/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 176,685 CONTRACTS EQUATES to 0.883 billion  OZ 126% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 1.08% ((AUGUST 5/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -2.27% to NAV:   (AUGUST 5/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1.08%

(courtesy Sprott/GATA

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

NAV 21.09 TRADING 20.73///NEGATIVE 1.20

END

 

 

And now the Gold inventory at the GLD/

AUGUST 5/WITH GOLD UP $ 33.75 TODAY, WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/A DEPOSIT OF 9.35 TONNES INTO THE GLD//INVENTORY RESTS AT 1257.73 TONNES

AUGUST 4//WITH GOLD UP $31.75 TODAY, WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 6.48 TONNES/GLD INVENTORY RESTS AT 1248.38 TONNES

AUGUST 3/WITH GOLD UP $2.20 TODAY, WE HAVE NO CHANGES IN THE GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1241,96 TONNES

JULY 31/WITH GOLD UP $17.90 TODAY/WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1241.96 TONNES.

JULY 30/WITH GOLD DOWN  $10.00 TODAY, WE HAVE ANOTHER SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.16 TONNES//INVENTORY RESTS AT 1241.96 TONNES.

JULY 29//WITH GOLD UP  $12.45 TODAY, WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A HUGE DEPOSIT OF 8.47 TONNES/INVENTORY RESTS AT 1243.12 TONNES

JULY 28///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

AUGUST 5/ GLD INVENTORY 1257.73 tonnes*

LAST;  874 TRADING DAYS:   +318.29 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 774 TRADING DAYS://+496.76  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

AUGUST 5/WITH SILVER UP $1.03 TODAY, WE HAVE A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// A MONSTROUS DEPOSIT OF 5.403 MILLION OZ//INVENTORY RESTS AT 572.564 MILLION OZ//

AUGUST 4/WITH SILVER UP $1.45 TODAY, WE HAVE NO CHANGES IN SILVER INVENTORY: //INVENTORY RESTS AT 367.161 MILLION OZ//

AUGUST 3/WITH SILVER UP 23 CENTS TODAY: WE HAVE A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//SURPRISINGLY ANOTHER WITHDRAWAL OF 0.931 MILLION OZ//INVENTORY RESTS AT 367.161 MILLION OZ//

JULY 31/WITH SILVER UP 82 CENTS TODAY: WE HAVE A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: SURPRISINGLY A HUGE WITHDRAWAL OF 3.26 MILLION OZ//INVENTORY RESTS AT 368.092 MILLION OZ//

JULY 30//WITH SILVER DOWN 97 CENTS TODAY: WE HAVE A SMALL CHANGE IN SILVER INVENTORY: A WITHDRAWAL  OF 0.931 MILLION OZ//INVENTORY RESTS AT 571.352 MILLION OZ//

JULY 29/WITH SILVER UP 7 CENTS TODAY, WE HAD A BIG CHANGE IN SILVER INVENTORY//A DEPOSIT OF 5.984 MILLION OZ//INVENTORY RESTS AT 572.283 MILLION OZ//

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//

 

AUGUST 5.2020:

SLV INVENTORY RESTS TONIGHT AT

572.564 MILLION OZ.

end

 

 

 

 

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

Gold Price Surges Over $2,000/oz For The First Time In History

Gold Breaks $2,000/oz and Surges to $2,042/oz – New All Time Record Nominal Highs

◆ Gold surged past the important $2,000/oz level to a new record high today due to concerns about the outlook for stocks, bonds and other assets in an increasingly vulnerable U.S. and global economy.

◆ Gold has surged to new record highs in all major currencies today including new record highs in British pounds at £1,554/oz and in euros at €1,720/oz due to concerns about the outlook both for assets and currencies such as the euro, pound and all fiat currencies.

◆ The price of gold surged over $2,042/oz, supported by the mounting virus and economic lockdown fallout and record deficit spending by governments and central bank currency creation to buy bonds and others assets in the debt laden financial system.

◆ The explosion and destruction in Beirut highlighted the risk of war in a very unstable Middle East and a scramble for safe haven assets as some 2,700 tonnes of ammonium nitrate exploded in Beirut, reducing parts of the Lebanese capital to rubble.

◆ Gold has reached new record nominal highs due to a combination of financial, economic, monetary and geopolitical risks and many analysts are forecasting further gains in the coming months with the $3,000 per ounce level being call for by many analysts including GoldCore.

◆ There are increasing concerns about the value of the dollar and other currencies due to currency creation on a scale not seen since Weimar Germany. This comes at a time when savers are not getting any yield on their bank deposits and are increasingly facing negative rates on depreciating currencies.

NEWS and COMMENTARY

Gold price hits $2,000 for first time on Covid-19 and inflation fears (FT)

Gold ends above $2,000 for the first time in history (MarketWatch)

Bank of America targets $3,000/oz as gold shatters price record (CityWire)

Gold spikes to record as BofA predicts $3K price tag (Bloomberg)

Massive blast sends seismic shock across Beirut, causing thousands of casualties (Reuters)

Dollar rally fizzles as investors eye stimulus talks in Washington (Reuters)

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

04-Aug-20 1972.250 1977.90 1508.77 1519.62 1671.09 1686.56
03-Aug-20 1972.950 1958.55 1509.50 1504.56 1678.39 1670.45
31-Jul-20  1974.700 1964.90 1505.91 1492.54 1666.84 1661.72
30-Jul-20  1952.20 1957.65, 1503.00 1502.10 & 1662.30 1662.44
29-Jul-20  1954.35 1950.90, 1506.80 1502.39 & 1663.54 1659.24
28-Jul-20  1931.65 1940.90, 1499.15 1501.48 & 1647.70 1654.23
27-Jul-20  1940.55 1936.65, 1511.30 1504.78 & 1659.56 1647.70
24-Jul-20  1893.85 1902.10, 1486.67 1490.30 & 1631.55 1638.09
23-Jul-20  1882.35 1878.30, 1480.28 1477.47 & 1624.47 1621.54
22-Jul-20  1851.00 1852.40, 1462.85 1456.91 & 1604.82 1598.44
21-Jul-20 1823.20 1842.55, 1436.86 1449.35 & 1594.21 1608.36
20-Jul-20 1810.30 1815.65, 1437.92 1438.18 & 1580.21 1590.87
17-Jul-20 1802.90 1807.35, 1435.47 1442.45 & 1578.98 1581.07

 

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ii) Important gold commentaries courtesy of GATA/Chris Powell

iii) Other physical stories:

Last night:

$15,000 Gold?

Via SchiffGold.com,

Gold pushed above its all-time record price last week. Where does it go from here? Peter Schiff and Jim Rickards appeared on Kitco News to talk about gold’s trajectory and the possibility of $15,000 gold in the future.

Peter opened up the interview saying he’s surprised it took gold this long to break its record.

A lot has happened in the last decade. We’ve certainly printed a lot of money.”

Peter said the Federal Reserve has moved into a policy from which it can never extricate itself.

When we went to zero, when we did QE, people initially thought it was temporary and we could normalize rates and shrink its balance sheet. And I said from the beginning that was impossible, and I think the markets are now beginning to realize that I was right about that. And when they contemplate a future of endless money printing and zero percent interest rates forever and multi-trillion dollar deficits funded by the Fed’s printing press, it’s starting to sink in, and they’re getting rid of their dollars and they’re buying gold.

Rickards brought up something commodity trader Jim Rogers told him several years ago. Gold is going to the moon, but nothing goes to the moon without a 50% correction along the way. Between gold’s high in 2011 and its low in 2015, it fell about 50%.

OK, that’s your 50% retracement. Now, that’s the bottom. Now it’s going up and the sky’s the limit.

Peter said we’ve now formed a very solid base between $1,200 and $1,500.

Now I think we’ve broken out of that range. I think we’ve taken out the highs. I think it’s another leg of the bull market. I don’t think there’re going to be any significant pullbacks from here. I mean, there’ll be pullbacks, but I don’t think they’re going to be very significant. I think if you’re waiting for a big drop to buy gold, you’re going to wait a long time.”

Rickards agreed, saying the retracement is over.

Peter said waiting to buy gold in hope of a higher price is foolish.

The world is going to be full of people who are waiting to buy gold and who are broke because they didn’t just bite the bullet and buy it.”

Host David Lin said he spoke to an economist who said given the Fed’s balance sheet expansion, he forecasts a $4,000 gold price. Lin asked if this was possible. Peter said the only reason that gold stopped at $1,900 after the Great Recession was because people were convinced the Fed could unwind the policy.

Had the market not believed that. then gold would have kept rising.”

The gold bull market in the 1970s ended because Fed Chair Paul Volker was willing to let interest rates rise. Peter asked what will stop it this time?

They can’t let rates go up because we’re too broke to afford it. They’re not going to be able to bluff that they’re going to raise rates in the future because no one’s going to believe that. They’re not going to be able to pretend they can shrink the balance sheet because if they couldn’t shrink it when it was four-and-a-half trillion, how are they going to shrink it when it’s $10 trillion or $20 trillion? Who knows where it’s going? So, I don’t really see how there’s any way that they can stop the dollar from collapsing.”

Peter said ultimately the world is going to sever its relationship with the dollar. It will go off the dollar standard and back on the gold standard.

And I think this is going to be a more precipitous drop in the dollar’s value than it was in the 70s, so we could see something equally impressive in the price of gold.”

If you’re going to have a gold standard or even use gold as a reference point for money, if you need to restore confidence in the dollar, the implied non-deflationary price is $15,000 an ounce.

Peter said it’s really a moving target because they are still printing money.

Between now and then, there’s going to be a lot of money that’s going to be printed, so who knows where the price of gold has to end up by the time we finish all the money printing?”

Peter said another way to look at it is the price of gold in relation to the Dow Jones. Twice in the prior century during significant bear market lows, the Dow traded down to a single ounce of gold. So, if you look at where the Dow is now at 26,000 and figure where would the price of gold have to be to equal the Dow at the current price, it would be $26,000.

But maybe if we get a big bear market, those two could meet around 15,000.”

Jim emphasized that he’s not exaggerating. He thinks $15,000 is actually conservative. It could be much higher.

end

 

This morning:

Gold Futures Surge Above $2,050; Silver Nears $27

The buying pressure on precious metals has continued overnight with gold and silver futures extending yesterday’s impressive gains.

Gold futures topped $2050…

 

And Silver futures neared $27…

 

And, according to Peter Schiff, there’s more to come… In a tweet, he said,

“You know the gold bull has a long way to run when the first reaction traders have to gold finally breaking above $2,000 is to sell.”

Gold is up more than 30% on the year after a better than 18% gain in 2019.

The mainstream spin was that the prospect of more fiscal stimulus was driving gold higher. The Democrats and Republicans appear closer to an agreement on a new spending bill. That’s certainly part of the equation. But fundamentally, this is about currency debasement.  In another tweet, Peter noted:

For now, the significance of the dollar’s record low is lost on the vast majority of investors. But as thousand-dollar milestones fall like dominoes the gravity of the problem will be more widely apparent.”

Even some people in the mainstream are starting to hone in on the fundamentals driving gold higher.  Lee Ferridge, head of North America macro strategy for State Street Global Markets, told Reuters it’s all about the Fed.

“Gold is outperforming. … It’s all about the debasement of the dollar.”

While gold’s historic milestone might be a reason to celebrate for those who have invested in the yellow metal, Peter offered a sobering reminder.

While personally vindicating and financially rewarding, gold’s rise above $2K is not a cause for celebration. As gold continues to set and break new records, rewarding all with the foresight to own it, remember that the move portends extreme economic hardship for most Americans.

We believe gold has still has a long way to run up over the long term. There is no end in sight to the Federal Reserve money printing. The dynamics driving gold higher won’t change any time soon. Peter noted that even as gold builds support just above $2,000 most gold stocks have yet to make new highs for the year.

Even the staunchest gold bugs will be surprised by how high the price of gold rises, and how quickly it gets there. A Wile E. Coyote moment for the dollar is fast approaching.”

During a recent interview, Peter and Jim Rickards made a pretty good case that we could see gold as high as $15,000 in the next five years.

That remains to be seen, but there is no question that August 4, 2020, is a historic day for gold.

 end
Andrew Maguire…. a must view…

Hi Guys,

This is the 1st of 2 parts , we discuss the imminent gold price reset, GATA , BOE, BIS, JPM, Goldman, CFTC, Comex being raided for physical and a bunch more. Its getting a lot of hits.

https://www.youtube.com/watch?v=912UykAeVX0&feature=youtu.be

Best

Andrew

end

Bank of America: Silver Could Hit $50 “In The Near Term”

A little over two months ago, Bank of America became gold’s biggest cheerleader on Wall Street (and has been spot on so far) in predicting that the price of the yellow metal would hit $3000 in about 18 months due to “loose monetary and fiscal policies around the world” and with the US elections scheduled for November and the EU’s Recovery Fund in place from January 2021, the bank expects that demand will remain supportive next year, even though the pandemic continues to be an immense risk.

The current macro-economic backdrop is also bullish for the precious metals, with gold benefiting from record low real rates, at the same time as central banks are backstopping fiscal spending.

 

But it’s not just gold that stands to rise by about 50% according to BofA: silver also benefits from this macro backdrop but demand should also strengthen on the back of a so-called “green” stimulus as most stimulus proposals have some environmentally clean aspect to them; As a result, BofA also sees silver rising to $35/oz as a feasible target next year, but more importantly highlights that “the white metal could rally to $50/oz in the medium-term.”

Below are some more details on BofA’s bullish case:

As the bank explains, similar to gold investors have raised their exposure to the white metal over concerns about the current economic policy. Yet, with silver more exposed to industrial demand, these purchases did not matter during the lockdowns, with the gold:silver ratio peaking at 124, and still a ways away from its long-term average of 59x.

 

Since then, silver has strongly outperformed gold as some offtake from manufacturers has come back. In addition, the prospect of further fiscal easing has also been supportive. Linked to that, BofA notes that the policy outline of US presidential candidate Joe Biden has caught the market’s attention. Perhaps the most ambitious goal in his plans is the 2050 target for achieving net-zero emissions across the US, if he is elected. Over the last fifteen years, US emissions have fallen more than 15%.  Yet the drop has been attributable in part to a decline in industrial activity and coal plant retirements that were quickly replaced by combined cycle natural gas plants.

 

Going forward, in our view, substantial emissions reductions will be needed from all sectors of the economy in order to achieve this goal.

Biden’s climate plan also targets zero emissions from the power sector by 2035, which would require an overhaul of the industry. Coal, natural gas, and petroleum generated more than 60% of the power in the US in 2019 and nearly all CO2 emissions. According to Biden’s climate plan, an emissions-free power sector may be achieved through a combination of changes. First, increased end consumer efficiency, which would help cap or reduce power demand over time. Second, the power sector would need to build grid scale storage to support substantial increases in renewable power generation. Third, fossil fuel power generation would need to be replaced with renewables, nuclear, and other low/no carbon alternatives and negative carbon energy technologies would likely be required to offset any remaining fossil fuel powered generation.

 

Sticking with the last point, a potential increase in photovoltaics matters particularly for silver, which is a key ingredient in solar panels. Indeed, an accelerated de-carbonisation of the US power sector alone could boost annual global silver demand from 2285t in 2020 to an average of 4272t over the next 15 years.

 

… the potential demand additions could push silver into a sustained deficit.

Why is this important? Because as BofA concludes “the last time this happened between 2006 and 2011, the precious metal rallied to $50/oz, a price level we would see within reach this time around as well.”

 

 

end

SILVER BULL MARKET CONTINUES: Heading Towards The Next Price Target

LAWRIE WILLIAMS: Gold and silver on a tear: Gold powers through $2,000 and silver $26

 

There currently seems to be no stopping the gold bull. Some thought the $2,000 psychological level would be a significant resistance point. Yesterday the yellow metal seemingly breached that point with ease – and in the U.S. markets too which had often proved to be a sticking point in the past – and the price seems to be accelerating upwards in initial trading today. While I had predicted $2,000 gold this year, this has occurred rather quicker than I had expected.

Silver too seems to be soaring and, in percentage terms, is rising faster than gold, perhaps justifying the forecasts of the silver bulls. With the metal price comfortably over $26 an ounce, and rising, the Gold:Silver ratio (GSR) has come down to the 76s as I write having been at the frankly ridiculous level of over 120 only a few short weeks ago. I’ve been somewhat sceptical about silver’s rising price prospects recently, given that some 60% of the metal’s demand is classified as industrial and the whole world seems to be in a recession, but I seem to be being being proved wrong for having my doubts by the hour!

So what next? The out and out precious metals bulls see $5,000 gold, or even double that, on the horizon but then they have been predicting that for years. The even more bullish silver followers are looking to the metal regaining its near $50 high levels achieved back in 1980, when the Hunt Brothers got close to cornering the market, and then again in the silver euphoria of early 2011, but be warned – on each of thyose occasions the metal was brought crashing down again extremely rapidly. Will it be third time lucky? The price still has a long way to go to reach $50, but it is certainly generating the kind of momentum which could take it there.

This time too there is something of a game-changer evident in that the biggest silver short of all, JP Morgan, has according to long term silver analyst, Ted Butler, who knows a thing or two about silver and its markets, reduced its short position to at, or near, zero. JP Morgan also has, again according to Butler, amassed an enormous silver bullion hoard in the meantime and is thus poised to benefit hugely from any runup in the silver price. The megabank has also, Butler reports, reduced its gold shorts to near zero too. The moral – don’t try and bet against the world’s biggest, and most successful banker!

As I noted in my previous article this week: An Excellent Week And Month For Gold And Silver, that most conservative of gold commentators, albeit bullish on the metal for now, Martin Murenbeeld noted in one of his most recent Gold Monitor newsletters “Everything is lining up favorably for gold just now; the dollar is weakening, the TIPS yield has hit an all-time low, and the S&P 500 is giving more cause for investors to consider gold”.

To this we’d add the following: A seemingly ever- present ramping up of geopolitical tensions between the world’s two largest economies; lower gold output from a number of mines due to coronavirus-related mine shutdowns and safety concerns as being seen in the latest set of quarterly results from the gold mining companies; continuing huge flows of gold (and even more so for silver) into the world’s precious metals ETFs; a general equities sector which looks ripe for collapse and continuing demand for gold from the world’s central banks, albeit perhaps at a lower level than in 2019 General equities still seem to be moving higher despite the massive global recession, and thereby overdue for a crash which could boost gold’s safe haven appeal. The list of assumed positives seems to be almost endless at the moment.

Thus both gold and silver look set fair for further increases. Perhaps through to the U.S. Labor Day holiday at the beginning of September, and maybe beyond. Major U.S. holidays sometimes signal a change in sentiment, so beware! There is also the possibility that gold and silver are seen to have moved too far, too fast and there could be a degree of profit taking and a consequent correction, but overall the outlook gold and silver prices currently continues to be a positive one.

05 Aug 2020

-END-

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.9400/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9403   /shanghai bourse CLOSED UP 5.88 POINTS OR 0.17%

HANG SANG CLOSED UP 155.91 POINTS OR 0.63%

 

2. Nikkei closed DOWN 58.81 POINTS OR 0.26%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 92.89/Euro RISES TO 1.1852

3b Japan 10 year bond yield: FALLS TO. +.01/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 105.75/ 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:: 43.17 and Brent: 45.84

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.52%/Italian 10 yr bond yield UP to 0.97% /SPAIN 10 YR BOND YIELD UP TO 0.31%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.85: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.04

3k Gold at $2040.60 silver at: 26.70   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 49/100 in roubles/dollar) 72.88

3m oil into the 43 dollar handle for WTI and 45 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 105.75 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 .9088 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0771 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.52%

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 0.53% early this morning. Thirty year rate at 1.22%

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

6.  TURKISH LIRA:  UP  TO 7.0279..DEADLY TO THE COUNTRY

Futures Jump, Gold Soars As Dollar Destruction Accelerates

Everyone is piling into everything.

That’s probably the best way to describe the market frenzy this week which has seen an all time high in the Nasdaq and gold, an all time low 10Y yields, and an S&P that is just shy of its all time highs.

Sure enough, on Wednesday, gold jumped to a new record high pushing further past $2,000…

 

… as the dollar tumbled on U.S. Treasury yields falling to fresh all time lows, and expectations of more stimulus measures for the pandemic-ravaged global economy.

S&P futures rose and European stocks climbed to a one-week high as investors focused on U.S.-China trade discussions and American lawmakers making progress on an economic aid package.

 

U.S. stock futures rose on Wednesday after Disney squeezed out a quarterly profit despite taking a $5-billion charge due to the pandemic, while investors awaited data on private payrolls and the service sector to gauge the country’s economic health. Square rallied in the pre-market trading as revenue surged.  Moderna Inc rose 2.3% ahead of its quarterly results. Activision Blizzard raised its full-year forecast for adjusted sales encouraged by a pandemic-driven surge in gaming. Its shares fell 1.4% after closing at a record high on Tuesday.

Investors had been concerned about signs that the U.S. economic activity is stalling amid a surge in COVID-19 infections in parts of the country, strengthening the case for more fiscal aid, although with the S&P just shy of all time highs, clearly these concerns have eased. White House negotiators on Tuesday vowed to work “around the clock” with congressional Democrats to try to reach a deal on coronavirus relief package by the end of this week.

Pressure is growing on Republicans and Democrats to resolve differences over a new U.S. virus relief package. Treasury Secretary Steven Mnuchin said the goal is to strike a deal on legislation by the end of the week.

“Hopes of a fiscal package will indeed be instrumental in any improvement in risk sentiment,” said Padhraic Garvey, head of Americas research at ING Financial Markets.

Meanwhile, America and China plan to assess their trade agreement in mid-August against a backdrop of rising bilateral tension, according to people briefed on the matter. China’s yuan strengthened to its highest level since March 11.

In Europe, the Stoxx Europe 600 Index posted broad-based gains, with travel companies, commodity producers and retailers leading the charge. European stocks rallied thanks to a batch of positive earnings even though the final July Services PMIs from France, Germany and the Eurozone as a whole were revised lower from flash prints. AS a result, the Stoxx 600 gave back some of its initial 1% gains, with the DAX outperforms peers. Travel, real estate and mining stocks lead broad-based gains; food & beverages and health care the only two sectors in the red. V2X slips back toward a 24-handle

Earlier in the session, MSCI’s broadest index of Asia Pacific shares outside Japan hit a 6-1/2 month peak, though the blue-chip Nikkei dipped. Most markets in the region were up, with South Korea’s Kospi Index gaining 1.4% and Jakarta Composite rising 1%, while Australia’s S&P/ASX 200 dropped 0.6%. The Topix was little changed, with SIGMAXYZ rising and Yamazaki Baking falling the most. The Shanghai Composite Index rose 0.2%, with Sichuan Western Resources Holding and Qinghai Spring Medicinal posting the biggest advances.

But it was the relentless surge in gold that held the spotlight as prices hit a record around $2,044 per ounce. The precious metal, which has soared more than 30% this year, is benefiting from heightened uncertainty around the long-term effects of the global health crisis.

Weakness in the dollar, which fell back towards recent two-year lows, and falling U.S. yields have encouraged investors to look for an alternative store of value – boosting the appeal of gold.

 

 

In rates, yields were higher by 0.5bp to 3bp across the curve, steepening 2s10s and 5s30s spreads by ~2bp each; 10-year yields around 0.53%, cheaper by 2.3bp vs Tuesday’s close. Treasuries bear-steepened, unwinding a portion of Tuesday’s long-end-led gains ahead of Wednesday’s refunding announcement for August-October, in which the Treasury Department unveils expected auction sizes. S&P 500 E-mini futures are higher with European stocks as risk sentiment gets boost from U.S.-China trade discussions and progress toward a U.S. economic aid package.

Elsewhere, Lebanon’s bonds were steady following the deadly blast in Beirut on Tuesday. The stock market was closed.

“Yesterday’s events could motivate the political parties to set aside their differences and make efforts to break the deadlock and begin to fix the economy,” said Richard Segal, a senior analyst at Manulife Investment Management in London.

In commodities, oil climbed to a five-month high in London, topping $45 a barrel after U.S. industry data showed a decline in the nation’s stockpiles.

Investors’ focus on Wednesday is on the ADP National Employment Report, a precursor to the monthly jobs report on Friday, which is expected to show private payrolls rose by 1.50 million in July after a strong rebound of 2.37 million in June.

Market Snapshot

  • S&P 500 futures up 0.3% to 3,310.50
  • STOXX Europe 600 up 0.3% to 364.55
  • MXAP up 0.5% to 169.16
  • MXAPJ up 0.6% to 563.81
  • Nikkei down 0.3% to 22,514.85
  • Topix down 0.04% to 1,554.71
  • Hang Seng Index up 0.6% to 25,102.54
  • Shanghai Composite up 0.2% to 3,377.57
  • Sensex down 0.04% to 37,672.96
  • Australia S&P/ASX 200 down 0.6% to 6,001.30
  • Kospi up 1.4% to 2,311.86
  • German 10Y yield rose 1.1 bps to -0.542%
  • Euro up 0.08% to $1.1812
  • Brent Futures up 0.8% to $44.77/bbl
  • Italian 10Y yield fell 6.0 bps to 0.822%
  • Spanish 10Y yield rose 1.1 bps to 0.294%
  • Brent Futures up 0.8% to $44.77/bbl
  • Gold spot up 0.6% to $2,031.16
  • U.S. Dollar Index down 0.2% to 93.18

Top Overnight News

  • Army personnel and rescue workers sifted through mountains of rubble from a massive explosion that flattened Lebanon’s main port, looking for survivors from a blast that roared through the capital, Beirut, killing dozens and wounding thousands more. Officials blamed highly explosive materials equivalent to 1,800 tons of TNT that had been stored at the port for years, without saying what triggered the blast
  • Businesses in the euro zone saw stronger growth than initially reported in July, with output expanding for the first time since coronavirus lockdowns hit the economy in March. Services providers and manufacturers both saw activity pick up. A composite purchasing managers’ index rose to 54.9, the highest level in just over two years
  • Gold’s scorching rally gathered more force, with prices driven higher into record territory above $2,000 an ounce as investors assessed prospects of more stimulus to combat the coronavirus pandemic’s fallout, another slide in U.S. real yields and increased geopolitical risks
  • Health and Human Services Secretary Alex Azar will lead a delegation to Taiwan in the highest-level visit by a U.S. cabinet official since Washington cut ties with Taipei more than 40 years ago. Azar is scheduled to arrive in Taiwan “in the coming days” to discuss the global response to Covid-19, as well as medical and technology supplies, according to a statement on Wednesday from the Department of Health and Human Services

Global market details courtesy of NewsSquawk:

Asian equity markets traded mixed after the marginally firmer handover from Wall St amid the toing and froing in US COVID-19 relief discussions and after the tech rally lost steam. ASX 200 (-0.6%) was negative and slipped back below the 6000 milestone with the losses led by financials amid notable weakness across the Big 4 banking names and as the virus outbreak causes further disruption with the Queensland state declaring New South Wales and the Australian Capital Territory as coronavirus hotspots and will shut its borders with those areas from August 8th. Conversely, Australia’s commodity-related sectors just about remained afloat as gold miners outperformed after the precious metal surged through the USD 2000/oz level for the first time ever. Nikkei 225 (-0.3%) was also subdued with exporter sentiment dampened by recent currency strength and with earnings also directing price action as the likes of Mitsubishi UFJ Financial Group and SoftBank Corp suffered after weaker results, while Sony also failed to sustain the early boost provided by improved earnings and  a JPY 100bln buyback announcement, as some fretted over the Co.’s cautious outlook. Hang Seng (+0.6%) and Shanghai Comp. (+0.2%) were choppy after slightly inconclusive data in which Caixin Services PMI missed estimates and Caixin Composite PMI was lower than previous but both remained in firm expansionary territory. In addition, the PBoC continued to refrain from liquidity efforts and it was also reported that US and China have agreed to conduct high-level talks on August 15th to assess Beijing’s compliance with the bilateral trade agreement. Finally, 10yr JGBs were higher and briefly prodded above the 152.50 level as they tracked the upside in T-notes and amid the weakness in Japanese stocks, while the BoJ were also present in the market today for JPY 570bln of JGBs predominantly focused in the belly of the curve and also offered to purchase JPY 300bln of corporate bonds from August 7th.

Top Asian News

  • Indonesia Economy Shrinks for First Time Since Asian Crisis
  • Singapore Finds 908 Virus Cases as Most Worker Dorms Get Cleared
  • Thai Central Bank Holds Rates Steady, Sees Gradual Recovery
  • Sibling Rulers Eye More Power From Sri Lanka Parliament Vote

European stocks trade higher across the board [Euro Stoxx +0.9%] as sentiment picked up following the mixed APAC lead, with the region’s eyes set on the slew of pre-market earnings as the season remains in full swing. Bourses see broad-based gains with no major standout performer, while DAX cash and front-month futures briefly topped the psychological 12,750 mark. European sectors are all in the green and retain a cyclical bias – with Energy leading the pack amid price action in the complex. The sectoral breakdown sees Travel & Leisure outpacing, with Oil & Gas a close second and defensives lagging, with the former propped up by airlines amid reports easyJet (+8.5%) is to carefully expand its flight schedule, also supporting the likes of Air France-KLM (+4.2%) and Lufthansa (+6.0%) in sympathy. Individual movers again mostly comprise of earnings, particularly in Germany: Allianz (Unch) swung between gains and losses before stabilising around the flat mark amid a mixed bag of results. BMW (-3.0%) is pressured by dismal earnings, in which the Co. expects profit before tax is expected to be significantly lower than in 2019. However, other auto names have shrugged off this report and trade higher in tandem the cyclical performance seen in the sector. Elsewhere, Accor (-0.5%) trimmed post-earnings losses of around 4%, with downside cushioned by the broader performance in the Travel & Leisure names. Other earnings-related movers include Commerzbank (+4.7%), Deutsche Post (+2.8%), Vonovia (+3.2%) and William Hill (+4.4%).

Top European News

  • London Rents Set to Slump to Lowest Level in Nearly Six Years
  • Euro-Area Economy Staged Stronger-Than-Expected Comeback in July
  • U.K. Services Activity Expands at Fastest Pace in Five Years
  • Italy’s Bold Intervention Halts Telecom Italia Stake Sale to KKR

In FX, the Dollar and DXY are on the brink of another collapse as bullion extends its surge through the Usd 2000/oz barrier towards Usd 2050 and the next technical resistance level at Usd 2058.94. Treasury yields have actually firmed up a tad and the curve has re-steepened slightly, but momentum has carried Gold and other precious metals to fresh record/multi-year peaks to the broader detriment of the Greenback. The index has tested support around the 93.000 level and the Buck key downside chart points vs major rivals, as the DXY teeters between 93.247-92.846 parameters in the run up to ADP, trade, Markit PMIs and the non-manufacturing ISM.

  • AUD/NZD – Multiple factors behind firm Aussie and Kiwi rebounds vs their US counterpart, including the aforementioned commodity advances and for the latter much better than expected NZ jobs data. Hence, Aud/Usd has revisited 0.7200 and Nzd/Usd is back above 0.6650, as the Aud/Nzd cross straddles 1.0800 ahead of the NZ labour cost index and AIG services PMI due later today and on Thursday respectively.
  • CAD/CHF/EUR/GBP – The next best G10 performers, with the Loonie latching on to firmer crude prices and finally breaching resistance around 1.3330 on the way through the 200 DMA to best levels since February circa 1.3264, while the Franc is on the cusp of reclaiming 0.9100+ status and having another look its pre-month end pinnacle at 0.9056. Similarly, the Euro has cleared a Fib hurdle at 1.1823 and now eyeing 1.1900 again, and Sterling has regrouped after a sharp stop-chase reversal from 1.3123 to 1.3059, with Cable back up to 1.3100. Note, somewhat mixed EU services and composite PMIs have hardly impacted amidst all the renewed downside Dollar pressure, but the Pound is lagging as Eur/Gbp hovers near the top of a 0.9013-44 range.
  • JPY – Not much extension beyond 106.00 for the Yen vs the Greenback as relatively buoyant risk sentiment on some improvement in daily rates of COVID-19 cases and deaths combines with signs of progress in terms of extra US fiscal support to sap safe haven demand. Hence, Usd/Jpy is contained within a tight 105.80-50 band awaiting further direction.
  • SCANDI/EM – Contrasting fortunes for the Norwegian and Swedish Krona as the former gleans traction from the recovery in oil, but the latter fails reap reward via a return to growth in the services PMI in wake of weak industrial orders and the first look at Q2 GDP missing consensus. In the same vein, the Yuan has made a decisive break through 7.0000 vs the Buck following news of a top level US-China meeting to assess the Phase 1 trade deal in stark contrast to the Lira that has tumbled below the psychological mark even though post-Turkish holiday strains in the OIS market have eased appreciably. Elsewhere, the Real is likely to benefit from the latest Usd slide alongside other EM currencies, though may be subject to a degree of pre-BCB caution given expectations for a 25 bp SELIC rate cut and prospects that this may be the last ease in the cycle.

In commodities, the strength seen in the oil complex during the APAC session persisted and intensified in early European trade, with WTI and Brent front-month prices now north of USD 42/bbl (vs. low 41.47/bbl) and USD 45/bbl (vs. low 44.24/bbl) respectively – with the former eclipsing the July 21st high at USD 42.51/bbl and topping its 200 DMA (42.59/bbl) in what seems to be more of a risk-induced move alongside a weaker Dollar, as fresh fundamental catalysts are scarce. That being said, the complex is underpinned by yesterday’s Private Inventory figures showed a much larger than expected draw of 8mln barrels vs. Exp. -3mln, with traders now looking ahead to the DoEs for confirmation. Elsewhere, spot gold continues to plough ahead to fresh all-time highs, currently around USD 2040/oz amid a softer USD, and as macro uncertainty and inflation fears prompts participants to flock to the yellow metal, with the Dec’20 futures now above the USD 2050/oz mark. Similarly, spot silver remains buoyed above 26.50/oz. In light of the precious metal rally, the Shanghai Gold Exchange has asked investors to rationally invest in gold & silver contracts and to raise awareness and prevent risks given high prices. Elsewhere Shanghai copper prices edged lower amid rising production in Chile and Peru.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior -0.8%
  • 8:15am: ADP Employment Change, est. 1.2m, prior 2.37m
  • 8:30am: Trade Balance, est. $50.2b deficit, prior $54.6b deficit
  • 9:45am: Markit US Services PMI, est. 49.6, prior 49.6; Markit US Composite PMI, prior 50
  • 10am: ISM Services Index, est. 55, prior 57.1

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 5.88 POINTS OR 0.17%  //Hang Sang CLOSED UP 155.91 POINTS OR 0.63%   /The Nikkei closed DOWN 58.81 POINTS OR 0.26%//Australia’s all ordinaires CLOSED DOWN .50%

/Chinese yuan (ONSHORE) closed UP  at 6.9400 /Oil UP TO 43.17 dollars per barrel for WTI and 45.84 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9400 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9403 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  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

China

This is why the China-USA trade deal is going nowhere!

(zerohedge)

“Trade Deal” Farce Summarized In These Charts 

Remember the run-up to phase one trade deal?

The Trump administration boasted positive trade headlines around the clock to pump the stock market in 2019 and even in early 2020. The headlines, dubbed “trade optimism,” unleashed multiple expansion in stocks as President Trump told farmers to buy ‘more land,’ ‘bigger tractors’ to handle China’s farm purchases.

President Trump was quoted numerous times, calling the phase one trade deal, the “granddaddy” of all deals, but now, as we’ve outlined, the trade deal was the greatest farce ever

Not too long ago, the president recently said he’s not focused on the next phase of the trade deal, otherwise known as “Phase Two.” Odd, because on many occasions, the president was heard touting the next round of deals.

On Monday, we told readers, “China is severely lagging behind purchase commitments laid out in phase one trade agreement.”

Citing the Peterson Institute for International Economics’ (PIIE) trade tracker, we showed how China’s monthly purchases of US goods covered by the deal through June are at purchase levels of around 47% of year-to-date targets.

The lack of Chinese buying is not President Trump’s fault, though enforcement of the deal certainly could be.

While examining trade flows, we uncovered a startling figure that shows China doesn’t need energy products from the US anymore.

Outlined in a series of charts via Reuters, China has only bought 5% of the targeted $25.3 billion in energy products under phase one agreement.

This chart is absolutely stunning… 

“China is unlikely to fulfill its Phase 1 commitments as they were overly ambitious, to begin with,” said Michal Meidan, the director at the Oxford Institute for Energy Studies.

China’s failure to comply with trade commitments, and Trump administration’s lack of enforcement, can only suggest this deal was the greatest farce ever.

Here’s the biggest joke of them all: “China Agrees To Buy More Cars, Airplanes, Energy From US In Phase 1 Trade Deal.” 

It’s just comical at this point, of all the bullshit “trade optimism” headlines that have resulted in an underwhelming deal. While the stock market soared to new highs on the president’s hyped headlines, the real bagholders are farmers, coal miners, factory workers, and blue-collar Americans.

The lack of enforcement could be reversed on August 15 when the Trump administration is expected to hold high-level talks with China to review Beijing’s compliance of the deal. 

end

CHINA/USA
New York Times quietly removes Chinese propaganda sites from its website
(zerohedge)

New York Times Quietly Scrubs Paid Chinese Propaganda From Website

The New York Times has terminated its relationship with Chinese Communist Party (CCP) mouthpiece China Daily – and has quietly deleted hundreds of CCP propaganda ‘advertorials’ from its website, according to the Washington Free Beacon.

The move comes as US institutions have fallen under the microscope for cozy relationships with the China over their oppression of Uighur Muslims among other human rights abuses.

The Times‘s decision to end its partnership with China Daily is part of a society-wide reckoningabout the cozy relationships between the Chinese government and American institutions, from the NBA to Harvard University. While the paper is responsible for some of the most gut-wrenching stories about Chinese government oppression, it has also run more than 200 propaganda articles in the last decade, some of which sugar-coated China’s human rights abuses. One 2019 video ad, for example, promoted Xinjiang tourism by depicting the oppressed Uyghur people as content under Chinese rule. –Washington Free Beacon

China Daily has been purchasing ‘advertorials’ in mainstream US media outlets for over a decade – disseminating Chinese propaganda through misleading advertisements disguised as genuine articles. According to the report, the Times, the Washington Post and the Wall Street Journal have taken in millions of dollars from the Chinese government for said ads. 

Giving the Times the benefit of the doubt for their copious reports exposing CCP abuses, Rep. Jim Banks (R-IN) – a member of the China Task Force who has made strides in reducing Chinese propaganda – applauded the move by the Times, saying in a statement:

“The New York Times has done excellent, detailed reporting on the ongoing Communist Party atrocities in Xinjiang and around the world. That reporting has finally had an effect—at the New York Times—and it no longer supports covering up the CCP’s barbarity. I hope the other outlets follow suit and start putting American values over Communist bribes.”

After the Free Beacon found that China Daily failed to follow federal disclosure requirements about its relationship with U.S. media outlets, Banks and 34 other Congressional Republicans demanded a Justice Department probe into the outlet. Following the demand, China Daily submitted a revised disclosure of its U.S. activities since 2016, revealing previously undisclosed details about its ties with U.S. media organs.

The new disclosure revealed that the Post and the Journal each received more than $100,000 per month to run print versions of Chinese propaganda articlesThe Times received $50,000 in 2018 to place the propaganda on its website, presumably a small fraction of the revenue it made selling print space to China Daily. The new disclosures also showed that China Daily paid hundreds of thousands of dollars to the Los Angeles Times, the Chicago Tribune, the Houston Chronicle, and other large regional newspapers to print copies of the China Daily for local distribution. –Washington Free Beacon

According to the Post, the paper hasn’t published anything this year from China Daily, though a spokesman did not confirm whether the paper had terminated the relationship.

end

CHINA/USA/GLOBE

Michael Every on China, the Middle east and other explosive events of the day..

(Michael Every)

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Lebanon

Last night:  Explosion is deemed an accident..poor storage of ammonium nitrate

(zerohedge)

Trump Calls Beirut Explosion “A Terrible Attack – A Bomb Of Some Kind” After Briefed By Generals

Lebanon’s health ministry has raised the death toll to over 73 killed, including 3,700 wounded, after late afternoon a blast centered on Beirut’s port unleashed a massive seismic shock and explosion that leveled an entire district of the city and was felt as far away as Cyprus in the Mediterranean.

Later in the evening Lebanon’s Prime Minister announced that the explosions were caused by an estimated 2,750 tons of ammonium nitrate left unsecured for 6 years in a warehouse. This came on the heels of a formal Israeli denial that it had anything to do with it, which also seemed be echoed by Hezbollah officials.

With the official consensus growing that the massive explosion was horrible accident due to neglect, President Trump’s words on the tragedy once again presented that it could be something more. He said early in the evening that after meeting with top military commanders: “They seem to think it was an attack. It was a bomb of some kind.”

This after speculation and conspiracy theories were rampant throughout the day. After all it is Lebanon, which has witnessed decades of bombings, war, and covert intrigue, also as it borders Israel, war-torn Syria, as well as a corner of the Golan Heights. And the blast was so overwhelming in its force, destroying homes up to ten miles away, local residents thought they were under nuclear attack, especially given it briefly blocked out the sun and a mushroom cloud hovered over the city.

The president further said that it “looks like a terrible attack” — leaving people to again question whether there’s intelligence he’s seen that points to an attack or bombing. According to the AFP:

Trump says military experts tell him Beirut blast a ‘bomb of some kind’.

“It was a bomb of some kind, yes” — he emphasized when questioned on it.

His remarks were made during a Tuesday evening address to reporters:

Trump said he had been briefed by “our great generals” and that they “seem to feel” that the explosion was not an accident.

“According to them – they would know better than I would – but they seem to think it was an attack,” Trump told reporters at the White House. “It was a bomb of some kind.”

This has caused Israeli officials to be vehement in their denials that it could have been the result of Israeli attack, amid recent tensions with Hezbollah along Lebanon’s southern border:

Did Trump just reveal classified information? Was he merely speculating like everyone else?

Are his words based on legitimate intelligence information which contradicts the official story that it was an accident? It remains that he specifically invoked “our great generals” when citing the information.

Meanwhile Beirut has been declared a ‘disaster zone’ by Lebanon’s defense council, with countries around the world pledging emergency aid.

Secretary of State Mike Pompeo has also pledged aid after the “horrible tragedy”.

The US Embassy in Lebanon was warned American citizens and residents in the surrounding area of the potential for toxic gases and chemicals in the air.

“There are reports of toxic gases released in the explosion so all in the area should stay indoors and wear masks if available,” the embassy said on its website.

END

LEBANON

their entire port has been devastated:  how on earth are they going to bring in goods?  How are they going to export? This is a huge blow to this nation and no doubt they will have to default on their foreign bonds

(zerohedge)

“Lebanon’s Year From Hell” – Death Toll Tops 100, Over 4,000 Injured After Beirut Explosion

Lebanese Red Cross officials told local media outlets (quoted by Reuters) on Wednesday that the death toll has risen to over 100, including 4,000 injured, after a massive explosion ripped through Beirut’s port on Tuesday.

On Tuesday evening, Lebanon’s Prime Minister said the blast was caused by an estimated 2,750 tons of ammonium nitrate, stored in a warehouse at the port unsecured for years. Israeli officials denied they had any involvement in the horrific explosion, which also seemed to be repeated by Hezbollah officials.

President Trump said earlier in the evening that after meeting with top military commanders: “They seem to think it was an attack. It was a bomb of some kind.”

Lebanese President Michel Aoun called for an urgent cabinet meeting on Wednesday and declared a capital-wide two-week state of emergency.

Here’s what residents of Beirut woke up to this morning:

Marwan Abboud, the governor of Beirut, said the shockwave from the blast was so powerful (triggered a 3.5 magnitude earthquake), it caused widespread damage across the city, leaving tens of thousands of people homeless.

“We lost ten members of the Beirut Fire Brigade, and damages range between 3 [billion] and 5 billion dollars and maybe more,” Abboud said.

Epoch Times said the blast left communities around the port absolutely devastated.

Samir Madani, the co-founder of Tanker Trackers, tweeted a satellite image of the devastation.

Even before the blast, the country had been devastated by the virus pandemic, a crippling economic collapse, and government corruption. The destruction of the nation’s top port suggests the primary channels for imports and exports have been completely severed. The ability of the country to feed 7 million people could transform into a significant health crisis in the months ahead. 

Epoch Times estimates 85% of the country’s grain, mostly stored in silos at the port, was also destroyed. 

“This has been the worst year for Lebanon by far,” Karim Nahouli, from Beirut’s Ras Al-Nabaa district, told Arab News.

“We’ve had 15 years of civil war, then another war in 2006 with Israel, and assassinations throughout, but this is definitely Lebanon’s year from hell.”

With Lebanon’s main port severed, and an economic crisis already festering, does this mean the country is on the brink of collapse?

Worst still, as we saw in oil prices, does this increase (if that is possible) the instability of The Middle East region further?

Immediately after this happened, as The Economic Collapse blog’ Michael Snyder notesa lot of people began wondering if this was an Israeli attack, but that does not appear to be the case.

One unnamed Israeli government official told AFP that “Israel had nothing to do with the incident”, and Benny Gantz has actually offered to send humanitarian aid to Beirut…

Offers of aid also came from bitter rivals Israel, with which it is still technically at war. Defense Minister Benny Gantz and Foreign Minister Gabi Ashkenazi, on behalf of the State of Israel, have offered the Lebanese government – via international intermediaries – medical and humanitarian aid, as well as immediate emergency assistance,’ said a joint statement from the two ministries.

If Israel really had been behind this attack, I seriously doubt that they would be offering to patch up their enemies.

And this isn’t Israel’s style either.  The Israelis prefer surgical strikes that avoid civilian casualties as much as possible, and this explosion definitely does not fit that profile.

Instead, it appears that this was some sort of deeply tragic accident.  Lebanese officials have admitted that 2,700 tons of ammonium nitrate were stored in the unit that exploded, and that amount of ammonium nitrate can definitely produce the sort of explosion that we just witnessed

Lebanon’s interior minister said ammonium nitrate had been stored in the unit since 2014, with experts agreeing that the chemical would cause the red plume of smoke which burst up from the blast.

Local media are reporting that 2,700 tonnes of the chemical exploded, which scientists making initial calculations said was about three kilotonnes of TNT – roughly a fifth of the Little Boy atomic bomb dropped on Hiroshima in the Second World War.

At least 60 people were killed and thousands were wounded in an explosion that caused widespread damage in the Lebanese capital. Trump said he had been briefed by “our great generals” and that they “seem to feel” that the explosion was not an accident.

“According to them – they would know better than I would – but they seem to think it was an attack,” Trump told reporters at the White House. “It was a bomb of some kind.”

If this really was an attack, the Lebanese are going to want revenge, because a substantial portion of their capital city has been absolutely decimated.

And needless to say, there are already voices all over the Middle East that are eagerly pointing a finger of blame at Israel and are calling for war.

But unlike the “mystery explosions” that have been happening in Iran, the evidence does not indicate that Israel had anything to do with this great tragedy.

Unfortunately, a lot of people out there are going to jump to their own conclusions, and many of those that hate Israel will use this as another justification to call for armed conflict.

Over the past couple of years, there have been so many moments when it seemed like a major war could break out at any time in the Middle East.  And here in 2020, tensions are running higher than ever.  The IDF has been regularly hitting Iranian and Hezbollah targets all over the region, and we just witnessed a harrowing confrontation on the Syrian border.

It appears that it is just a matter of time before a huge war erupts in the Middle East, and it certainly isn’t going to take much to trigger one.

So could this explosion push the region over the edge?

Let us hope not, but without a doubt this blast is not going to help matters.

The devastation that we just witnessed has caused great pain and anger in Lebanon, and terror groups such as Hezbollah will inevitably try to channel all of that pain and anger in a way that furthers their ultimate goals.

END

LEBANON/

Devastation!!

Up To 300,000 Left Homeless In Beirut After Blast Collapsed Walls Miles Away

After Tuesday’s deadly blast in Beirut which Lebanon’s PM linked to 2,750 tons of ammonium nitrate which had unsafely sat in storage on the port going back to 2013, the governor of Beirut has estimated the damage is so pervasive throughout the city as to have left hundreds of thousands homeless.

 

Within a one mile radius, entire sides of residential buildings were ripped off. Getty Images

During a press conference the governor of Lebanon Marwan Abboud described while fighting back tears during a live press briefing that the two explosions that left 100 dead and over 4,000 injured unleashed at least three billion dollars in damage, devastating up to half the city.

“I took a tour of Beirut, the damage can amount to between three and five billion dollars,” Abboud estimated. And he said that it’s likely up to 300,000 residents of the city were left homeless, given in many cases entire walls of buildings were ripped out by the seismic blast shockwave.

 

Via The Sun

Regional media reported of his comments:

“Almost half of Beirut is destroyed or damaged,” he estimated, with 250,000 to 300,000 people finding themselves homeless.

“Maybe more,” Abboud added while discussion the billions in damage, which also crucially took out the entirety of the city’s economically vital port.

The blast force is being widely estimated in international reports as being one-fifth the size of Hiroshima.

It’s clear from widely shared footage showing multiple angles of the enormous blast, the biggest in Lebanon’s history, that buildings and homes within the immediate few kilometres of the epicenter were leveled, and across almost the entirety of the capital city windows were shattered, balconies blown off, and sides of buildings damaged.

end

IRAN/CHINA/USA

USA navy seizes Iran bound ship carrying needed oxygen pharmaceutical supplies.

(zerohedge)

US Navy Seizes Iran-Bound Ship Carrying Pharmaceutical Supplies Off China: Fars

Iranian state media has announced that a US Navy warship has seized a transport ship near the Chinese port of Qingdao on Wednesday morning.

The ship was reportedly en route to Iran loaded with medical manufacturing components, specifically zeolite, which Fars News Agencysays is needed for manufacturing oxygen concentrators for coronavirus-infected patients.

“Only one imported part is used for production of oxygen concentrators, which is zeolite, and we are forced to purchase it from France and import it to the country through several intermediators,” Peyman Bakhshandeh-Nejad, an Iran-based pharmaceutical company CEO told state media.

 

Illustrative file image: Arleigh Burke-class guided-missile destroyer USS Ramage, via US Navy

Amid the raging coronavirus crisis in the Islamic Republic, which for over half a year has been among the hardest-hit countries in the world (and recall that last month President Rouhani shocked in a speech by saying the truer estimate of numbers of Iranian infected stands at some 25 million, not the official 300,000+), Tehran has been desperate to import vital hospital equipment and medicines.

However, US-led sanctions related to Iran’s alleged nuclear aspirations has made this extremely difficult. While Washington has denied it is targeting vital medicines and staples like food and hospital gear, Iran has said it’s precisely these things which are being blocked.

Specifically in the case of the seized ship off China, zeolite is said to be crucial in oxygen concentrator systems for coronavirus patients who can rely on the vital devices at home without having to visit a hospital.

While the ship seizure allegedly by the US Navy is on Wednesday driving headlines inside Iran, there’s yet to be any early acknowledgement either from the US side or from Chinese port authorities.

But this does fit a pattern seen over the past two years of US intervention during alleged Chinese sanctions-busting related to Iranian oil transport.

END
UAE
Another developing story: massive fire engulfs the sprawling UAE market
(zerohedge)

Watch: Massive Fire Engulfs Sprawling UAE Market In Flames

As GCC member states pledge to send aid to embattled Lebanon following yesterday’s shocking and historic blast, allegedly caused by government negligence in the borderline failed state, a massive explosion just rocked a busy market near Dubai, in the UAE.

The fire has spread rapidly through a market in the emirate of Ajman.

Social media users are speculating without any evidence about a possible connection between this fire and the explosion yesterday in Beirut – though “bad things come in twos and threes” isn’t much of a theory to go on.

The fire is apparently ongoing, according to several regional media orgs.

Any cause or causes are still unknown.

This angle helps capture the size of the fire.

Some unconfirmed reports online have claimed fatalities have been reported, though nothing has been confirmed.

And finally…

Of course, UAE is no stranger to sweeping structure fires. In one recent example, Abbco Tower in the city of Sharjah near Dubai caught fire back in May.

6.Global Issues

Australia

The virus is playing havoc to the Australian economy; small businesses are begging they cannot survive another lockdown

(zerohedge)

 

On Verge Of Six-Week Shuttering, Australian Small Businesses Beg: We Can’t Survive Another Lockdown

The reality on the ground in Australia is that many small businesses were struggling even before the coronavirus lockdowns began. Now, with the country on the verge of what Financial Review is calling “Lockdown 2.0”, it could be the last straw for many businesses.

Nellerichal ‘‘Sree’’ Sreeju, who owns a gift shop in Richmond said: “It was already hard and this has made it five times harder. It’s really uncertain.” 

He represents a microcosm of businesses in Australia who are begging for some sanity after the country has announced that “non-essential” retailers will once again have to close, starting at midnight on Wednesday this week.

‘‘It has been a roller-coaster. In March, it was really eerie and quiet, and then there was the boost from the stimulus package. Luckily for us, people have been finding us online,’’ he said. His business did “fairly well in July” after pivoting and adapting to the post-virus world.

Just in time for the government to shut him back down again…

 

Sreeju

“We’ve been doing a few corporate jobs and that’s kind of keeping us afloat now but the street income, we’re doing maybe 10 to 20 per cent of what we would have done,” he said.

The country’s restrictions also mean that barbershops and hairdressers will have to shut down. Joshua Mihan, owner of The Bearded Man barbershop said: “I think for any business owner, six weeks of no trading, the amount of money we’ll lose is quite a lot but at the same time, I think the government has been really good to small business. Without government support, I would definitely be in a terrible position right now.’’

He has already been forced to permanently close his second shop. “I acted quickly so the business didn’t suffer as much because I thought I’d rather have one stronger business than two depleted businesses,” he said.

Now, with another shutdown looming, he has no business.

Industry groups are calling this second shutdown the “final nail in the coffin” for many small businesses. Anne Nalder, chief executive of the Small Business Association, said: ‘‘A lot of very good businesses are going to be destroyed. Small business needs to be looked after financially. It’s going to mean a lot out of the government’s purses, but to do nothing, you will have no economy. Full stop.’’

Council of Small Business chief executive Peter Strong says there’s a “high number” of businesses that simply won’t survive the second lockdown: ‘‘At the moment, we’ve got to work to ensure this lockdown lasts only six weeks and people can open again because if it goes any longer, the damage will keep compounding. You won’t have an extra 10,000 businesses close, it’ll be 20,000 and we’re all afraid to put numbers on it.’’

Dani Zeini, who founded restaurant chain Royal Stacks and Grand Trailer Park Taverna, is deeply concerned about the toll of another lockdown on his businesses. He said: “The Melbourne CBD, 900,000 workers come to the city every week and that’s just disappeared not to mention there’s no shopping, football, tourists and then on top of that the little remaining workers we had, they can’t come.”

The premier of Victoria plunged the region into a “state of disaster” on Sunday, announcing even stricter lockdown measures, introducing a nightly curfew and banning virtually all trips outdoors after Australia’s second largest state recorded 671 new infections in a single day.

Daniel Andrews told Victorians at a news conference that “we have to do more, and we have to do more right now,” as the state battles to contain a devastating coronavirus outbreak that had already stripped residents of their freedoms, livelihoods and social interactions and made it an outlier from the rest of the country.

The new rules include:

  • Where you slept last night is where you’ll need to stay for the next six weeks.
  • Curfew between 8 p.m. and 5 a.m.
  • Only one person per household will be allowed to leave their homes once a day — outside of curfew hours — to pick up essential goods, and they must stay within a 5 kilometer radius of their home unless nearest shop is over 5 KM away.
  • Exercise can be taken for up to an hour a day, with one other person, but still within five kilometers of a person’s home

END

CORONAVIRUS UPDATE/GLOBE

Global COVID-19 Deaths Top 700,000, Victoria Suffers Another Record Despite ‘Toughest Lockdown Yet’: Live Updates

Summary:

  • COVID deaths top 700k
  • US to send DHHS Secretary Alex Azar on historic visit to Taiwan
  • Czech Republic reports biggest jump in new cases since June
  • Poland suffers record deaths
  • WHO sends team of 43 to South Africa
  • Uganda is Africa’s standout COVID success story
  • WHO says first “confirmed” North Korea COVID cases “inconclusive”
  • Queensland, Australia bars travelers from all Eastern states

* * *

As new COVID-19 cases continued to slow in the US and Brazil on Tuesday, the number of confirmed deaths worldwide passed the 700,000 mark, while the number of confirmed cases hit, according to data from JHU and Bloomberg.

Perhaps the biggest news overnight comes out of the US, where Health and Human Services Secretary Alex Azar said he plans to visit Taiwan to discuss the international response to the pandemic. The trip will happen in the coming days. It will almost certainly lead to a further deterioration in the relationship between the US and China, as Azar’s visit will be the highest-level visit by an American Cabinet official since the break in formal diplomatic relations between Washington and Taipei in 1979.

The Czech Republic reported its biggest daily jump in cases since the end of June on Wednesday. The 290 new cases pushed its national total to 17,286, with 383 deaths. Roughly 1/4th of the new cases – 77 – were in the eastern region of Moravia-Silesia, bordering Poland, where many miners and their families have been infected. It comes as Poland reported several consecutive days of record case numbers. Poland, meanwhile, reported 18 new virus-linked deaths, the most in a day since June 30, raising the country’s death toll to 1,756

North Korea’s suspected first coronavirus patient – a defector who recently snuck back in to the closed off country – has tested inconclusive for the virus, according to the WHO rep who works with North Korea (a reliable, independent, source of information, we’re sure.

“The person was tested for Covid-19, but test results were inconclusive,” Dr Edwin Salvador, the WHO representative for North Korea, told Reuters on Wednesday.

As many as 64 first contacts and 3,571 secondary contacts of the suspected case have been identified and quarantined in government facilities for a period of 40 days, Salvador said. Kaesong remains under lockdown and household doctors continue to conduct surveillance in the city, he said.

Australia has tightened its lockdown in the troubled state of Victoria to resemble the restrictions that forced hundreds of millions of Europeans to remain indoors for months. While it could take weeks for these measures to have some impact, the state is already nearly 4 weeks in to a ‘partial lockdown’ imposed when the latest cluster in Melbourne first emerged.

The Associated Press described how Australia’s streets “drained of life” this week as the state of Victoria imposed the country’s toughest lockdown yet.

And despite all of this, Victoria premier Daniel Andrews announced 725 new cases in the state and 15 new deaths, making the last 24 hours the deadliest day yet for the Australian outbreak, and the second-worst day for new cases across the country (it was the worst day for Victoria). Though, to be sure, South Australia processed a record number of COVID-19 tests on Tuesday, and are expected to exceed that again today, as thousands flock to testing.

The outbreak in Victoria is creating more paranoia nationally as the state of Queensland on Wednesday announced that it would shut its state border with the rest of Australia’s East Coast, after having already banned travelers from Victoria. Travelers from New South Wales and the Australian Capital Territory won’t be allowed to travel to Queensland starting Aug. 8. This despite the fact that the ACT currently has no active cases.

NSW also announced that all residents returning from Victoria will need to hotel quarantine for 14 days at their own expense.

As WHO plays down the outbreak in North Korea, its Africa arm is sending a team of 43 specialists to South Africa, a country that has quietly climbed the coronavirus rankings as Africa’s most industrialized nation is also home to its largest outbreak – or, to put it more accurately, the continent’s largest number of confirmed infections: As of Wednesday morning, the country had 521,318 cases, the fifth-highest number in the world, and more than half of all reported infections in Africa, which is now close to the 1 million milestone. South Africa’s health minister on Wednesday heralded the country’s decreasing infection rate, but warned that the people must stay vigilant to stave off “a renewed surge”. SA has recorded 8,884 COVID-19 deaths, although studies of excess mortality rates indicate the actual toll could be higher.

Like in India and many other poor countries, the virus spread like wildfire through South Africa’s overcrowded urban slums in Cape Town, Johannesburg and other cities. For weeks, it threatened to overwhelm public hospitals, but Health Minister Zwelini Mkhize told reporters Wednesday that the health care system in the country will be able to cope.

“Our hospitals have been battered but we have not breached our hospital capacity,” he said. “Our wards are full and our ICU beds are full, but not to complete capacity. And the field hospitals that we constructed still have space.” There have been adequate supplies of oxygen for severely affected patients, he said.

After reporting the latest updates from South Africa, Reuters on Wednesday published a lengthy story about Uganda, one of the largest countries in Africa, and how its experience with deadly viruses like Ebola and Marburg shaped its handling of coronavirus. Uganda – a nation of 42 million – has recorded just a handful of deaths due to the restrictive and sometimes brutally enforced lockdown imposed by the authoritarian government.

Despite crumbling public hospitals, doctors’ strikes and corruption scandals, the African nation has largely succeeded in containing the virus: It has recorded just 1,200 cases and five deaths since March. Per Reuters, Uganda’s experience “shows what can be accomplished when a government with a firm grip on power acts quickly and enforces a strict lockdown. But its success came at a cost, critics say.
Jobs were lost, and economic growth is set to plunge to as low as 0.4% in 2020, from 5.6% last year, according to the World Bank.”

Meanwhile, Africa’s 54 countries have recorded a total of roughly 975,000 cases and 21,000 deaths from the virus.

As a result of the lockdown, some pregnant women died in labor, unable to reach hospitals in time due to travel restrictions, while security forcesbeat and arrested some scofflaws who disobeyed the lockdown.

“A jobless person is better than a dead person,” state minister for health Robinah Nabbanja told Reuters. “The lockdown was completely justified.”

Not everyone agreed: “I go hungry sometimes and eat only once in a day,” he said. “Coronavirus hasn’t killed us but the hell of going hungry is not that far from death.”

Moving on to Asia, perhaps the biggest news overnight amounts to a disturbing echo of the initial coronavirus outbreak in Wuhan. Japanese Economy Minister Yasutoshi Nishimura warned on Wednesday that Japan is facing a “second wave”, and that Japanese citizens should exercise caution when traveling for the upcoming Obon Holiday that starts next week. He asked any Japanese with symptoms to please stay home. The holiday – like the Chinese New Year holiday that coincided with the initial phase of the outbreak – typically sees millions of Japanese return to their hometowns to visit family.

END
The Coronavirus throughout the globe is causing champagne sales to plummet: worse than the great depression
(zerohedge)

Champagne Sales Fizzle, Worse Than Great Depression 

Champagne sales fizzled during lockdowns as restaurants were closed, weddings canceled, and international travel halted, reported AP News.

The world’s top producers, based in France’s eastern region, are now warning they’ve lost an estimated $2 billion in sales this year. They say turnover has fallen by a third, with some of the worst-selling conditions since the Great Depression.

The industry expects 100 million bottles will be unsold this year as a virus-induced downturn has severely damaged winemakers.

“We are experiencing a crisis that we evaluate to be even worse than the Great Depression of 1929,” said Thibaut Le Mailloux of the Champagne Committee (CIVC), who represents 16,000 winemakers.

CIVC will announce to members at an upcoming meeting (Aug. 18) that harvests will be capped this year to avoid overproduction that would ultimately result in bottle price declines.

AP said small winemakers are alarmed by CIVC’s caps because they’re more susceptible to output declines than larger wineries. 

Anselme Selosse, of Jacques Selosse Champagnes, was angered by the prospects that some of his harvests will have to be destroyed this year.

“We are to destroy (the grapes) and we pay for them to be destroyed,” Selosse said, referring to the industry as a whole. “It’s nothing but a catastrophe.”

“Champagne has never lived through anything like this before, even in the World Wars,” Selosse added. “We have never experienced … a sudden one-third fall in sales. Over one hundred million bottles unsold.

Top champagne producer Vranken-Pommery said the virus-induced downturn could damage the industry for years.

“It should not be forgotten that (champagne) has lived through every single war,” said Paul-Francois Vranken, founder of Vranken-Pommery Monopole. “But with the other crises, there was a way out. For now, there is no way out — unless we find a vaccine.”

Vranken said with fewer parties, gatherings, and festivals, champagne marketing must change from a celebratory drink to one that is like wine.

“Even if the bars and the nightclubs are closed for five years, we don’t plan on missing out on customers … There will be a very big change to our marketing that highlights the grandeur of our wines,” Vranken said.

The champagne industry will remain pressured through the end of this year as virus cases and deaths flare-up. This will likely result in a bankruptcy wave among winemakers.

 

END

 

A must read:  you will recall me stating to you that there is two schools of thought on the dollar:  Peter Schiff states that the dollar is going down right now and Jeffrey Snider believes that the dollar will first go up and then plummet.  It rises as demand for dollars is still high as foreign countries like Turkey need these dollars.  Luongo now states that the Fed is at the end of the road, that demand for dollars will wane as the Feds will print dollars to give these dollars directly to its citizens

(Tom Luongo)

 

The Fed Is Determined To Prove The QTM Right

Authored by Tom Luongo via Gold, Goats, ‘n Guns blog,

Milton Friedman famously said, “Inflation was always and everywhere a monetary phenomenon.” But Friedman didn’t live through the QE years here in the U.S. and blatantly ignored the twenty plus years of Japanese deflation despite QE and insane levels of money printing during the latter years of his life.

Because Friedman, like a lot of modern economists, adhered strictly to the Quantity Theory of Money (QTM).

And as an Austrian economics kinda guy I somewhat agree with the QTM. I agree with Ludwig von Mises on this, as you would expect. So, how do we square the QTM with the evidence that QE in all of its guises has resulted in deflation, as expressed by the general price level, where ever it has been tried?

Martin Armstrong asks this question all the time and is openly hostile to the QTM. And his arguments have some merit, because, as he rightly points out the QTM only looks at the supply side of the money equation.

It cares not about the demand side. He’s right about that. What he’s wrong about is that the Austrians, like von Mises, haven’t considered this either.

Demand for money is just as important as the supply of it.And during a crisis, the demand side of the equation for any particular currency may, in fact, be more important.

This is what the Fed has struggled with for the past twelve years. The demand for the U.S. dollar has far outstripped the increase in supply, causing a far lower aggregate price rise than anticipated by the QTM.

But money, like all commodities, goes to where it is most demanded by those that obtain it. And Bernanke’s QE post-2008 crisis didn’t go to the people, it went to the banks and the banks and the government who did what they thought was best with it.

In trying to prop up asset values the Fed, however, blew bubbles in not only equities but also home prices, cars, education, health care, government regulation etc.

Offsetting that has been the destruction of price in things like food and energy, which are now far cheaper in real terms (and as a percentage of disposable income) than they’ve been in decades.

And this dynamic couldn’t change in the post-Lehman years under Bernanke if the Fed, like the Bank of Japan before them and the other major central banks today, allowed the money printed to actually circulate.

The QTM seems to fail because the money never circulated.

Bernanke ‘sterilized’ the new money, paying banks not to lend but rather hold the money on reserve with the Fed paying a nominal interest rather than engaging in traditional lending.

Because if he had done that the QTM would have risen up to bite him in the ass.

Bernanke understood that he had a demand problem. There was too much demand for dollars to service non-performing debt. But if he had let those trillions circulate it would have touched off an inflationary spiral as most of the money wouldn’t have gone to debt service but to bid up the price of base commodities.

So he chose to slowly bleed out the excesses of the previous credit-induced boom through time and attrition, just like the Bank of Japan, and slowly build the unavoidable inflation through the expansion of the money supply while demand returned to normal.

While the QTM ignores the demand side of the money equation, when the definition of the money supply and, more importantly inflation itself, doesn’t accurately describe reality the QTM becomes a hindrance to understanding what’s going on.

This is summed up in the question, If Bernanke printed all these trillions, why is there no inflation?” To which Gary North, writing for Lew Rockwell all those years ago answered, “IOER.”

IOER = Interest on Excess Reserves.

To Bernanke he beat the QTM by paying IOER. Previous to Bernanke, excess reserves hovered around zero. The market always paid a better return than the Fed’s 0.25%.

But North was on it at the end of 2009:

The Federal Reserve can re-ignite monetary inflation at any time by charging banks a fee to keep excess reserves with the FED.

Anyone who predicts an inevitable price deflation does not understand that the present scenario is the product of legitimately terrified bankers and the Federal Reserve’s Board of Governors. At any time, the FED can get all of the banks’ money lent. But the FED knows that this will double the money supply within weeks. This will create mass price inflation.

Bernanke paid the banks not to lend and therefore most of the money printed didn’t circulate. It wasn’t part of the supply and therefore couldn’t cause inflation.

Moreover, credit money was contracting at that time. The top of Exter’s Pyramid was collapsing and Bernanke was trying to widen the base of the Pyramid by printing trillions in base money.

John Exter’s Money Pyramid

Back then it was there was a fight pitting the inflationists led by Peter Schiff versus the deflationists led by Harry S. Dent, and to a lesser extent Martin Armstrong.

Some of that money circulated through the growth in government spending and the returns generated as second-order effects of rising stock prices, the so-called ‘wealth effect.’

In the end we got what the Austrians would expect. Asset bubbles in the things people buy on time at zero-bound rates — cars, houses, medical bills, college degrees, military weapons, war — and deflation in legacy maturing financial assets and high depreciation cost assets like infrastructure through capital starvation, waste and fraud.

The Yellen and Powell years were marked by them hoping to withdraw these ‘temporary’ funds from the banking system by raising rates and doing QT – Quantitative Tightening.

It didn’t work at all, precipitating a credit collapse last year thereby, again, invoking the threat of the QTM. Because now the world was used to these assets at zero-cost of carry, zero-bound rates, which inflated their prices..

And those prices were way too high relative to that old supply of money. Withdraw the funds and watch the money markets seize up.

This is why we Austrian types kept saying the “Fed was trapped!” There was no way to go back to the way things were because while the Fed may have run out the clock on the 2008 toxic asset pile, it created an all-new even bigger pile of toxic-assets-in-waiting by the time we get to 2020…

… exactly as predicted.

Worse than that the Fed internationalized that pile, spreading the cancer out the world over, by turning the dollar into the ultimate carry-trade currency.

The real pandemic we should be scared of in 2020 isn’t COVID-19, it’s the immense pile of un-payable loans of all types, commercial or otherwise. With the rise of MMT now we’re just openly admitting the debts aren’t payable.

And the Fed has done nothing so far to say that it has any cures for this disease other than mo’ money.

It may be the first bit of honesty we’ve ever gotten from them.

So, color me not shocked when I see the latest proposal to come out of the Fed to stave off the deflationary vortex, directly pump money into everyone’s bank account.

From Zerohedge:

The response was striking: they two propose creating a monetary tool that they call recession insurance bonds, which draw on some of the advances in digital payments, which will be wired instantly to Americans.

As Coronado explains the details, Congress would grant the Federal Reserve an additional tool for providing support—say, a percent of GDP [in a lump sum that would be divided equally and distributed] to households in a recession. Recession insurance bonds would be zero-coupon securities, a contingent asset of households that would basically lie in wait. The trigger could be reaching the zero lower bound on interest rates or, as economist Claudia Sahm has proposed, a 0.5 percentage point increase in the unemployment rate. The Fed would then activate the securities and deposit the funds digitally in households’ apps.

As Potter then elucidates, “it took Congress too long to get money to people, and it’s too clunky. We need a separate infrastructure. The Fed could buy the bonds quickly without going to the private market. On March 15 they could have said interest rates are now at zero, we’re activating X amount of the bonds, and we’ll be tracking the unemployment rate—if it increases above this level, we’ll buy more. The bonds will be on the asset side of the Fed’s balance sheet; the digital dollars in people’s accounts will be on the liability side.”

Bringing us right back to Milton Friedman and, more importantly, von Mises and the QTM. Because now the Fed is not talking about injecting sterilized reserves into the money supply to create fictions of bank balance sheets.

Because, as Mises pointed out, once there are no more vacancies at the debt hotel now the QTM can be fully expressed. More supply equates to more inflation.

Now Friedman will be proven prophetic.

Because the Fed would be injecting money directly into the economy to stimulate aggregate demand because there are no more places to hide it and get any kind of future return.

Most of the world’s debt trades at a negative yield. IOER is 0.10%. National budgets are running at 20% to GDP deficits. Pension systems are trillions in arrears.

Now we’re at that moment where the old thought exercise of what happens when you inflate the money supply by 10% prices occurs. The answer is prices will go up by 10%.

Critics of the QTM, like Armstrong, argue that the Fed et.al. are obsessed with creating 2% price inflation in a deflationary environment. That’s not completely true. Because if they charge those excess reserves they can create whatever inflation rate they want in a heartbeat.

What they are obsessed with is doing that and bailing out the banks at the same time.

That they can’t do without destroying confidence which is a nice way of saying they are scared of the QTM calling their bluff.

Because no matter how you try to hand wave the arguments away, more money chasing the same number of goods is inflationary. One look at home, car, health care and education costs tells you exactly where all the inflation went.

Bernanke dreaded that scenario just like Dr. North said which is why he paid IOER while destroying the middle class through rising prices for real goods and wage stagnation.

He undermined the validity of every other currency in the process to save the dollar. They’ve had to deal with the QTM biting them, but we only care about ourselves.

In an environment where most people’s time preference is short because they are literally fighting for their economic lives, this new stimulus money will go right into the things people needs right now — food, clothing, shelter.

Things are so bad for so many Americans now that they saved their first stimulus checks and only spent them on the bare necessities, forgoing any thought of paying down debt.

They used what’s left of their credit rating to feed themselves now on someone else’s dime and let the bank choke on their mortgage when the credit card is maxed.

This next round of stimulus money will circulate. The Fed will finally do what Bernanke tried desperately to avoid, print helicopter money.

Zerohedge is right, the Fed finally admitted that QE is deflationary because it signals to the markets that conditions are still too fragile after 12 years to invest in the future because there is no future.

Therefore the money given to the banks is hoarded as excess reserves because the potential return on investment is lower than IOER. Today Jay Powell stopped paying IOER, it’s 0.10% lower than Bernanke’s 0.25% and he still can’t get the money moving.

Excess reserves are rising again. Same playbook, worse results.

That was the first phase of this crisis.

Now that we’re past that part and if the Fed adopts this policy, it will hand us money to keep asset prices from falling by creating fake demand. All that will do is undermine the confidence anyone holding dollars abroad has in the U.S., the dollar and our leadership.

And then the QTM will be our problem, not theirs. Because demand for dollars will collapse and the circulating supply will rise. Gold is sniffing this out now.

Then, and only then, will the Fed achieve its inflation target… and beyond. And Milton Friedman will look down and say, “I was right.”

And Mises will look back at him and say, “Yes, eventually.”

*  *  *

Join my Patreon if you want help understanding the dynamics of money and credit. Install the Brave Browser if you want to ween the world off of Google.

END

 

Bill Blain:

warns of a coming storm

Bill Blain….

“Something’s Awry” – Blain Warns Of “Gathering Wave” In The Real World

Authored by Bill Blain via MorningPorridge.com,

“The guys are busy; you’re in charge. Ya know what? You’re a swordboat captain! Is there anything better in the world?”

But… first…

Back in the days of ancient Rome it was not unusual for corrupt emperors to demand substantial cuts on every business transaction to fund their orgies and other transgressions. Throughout recorded history corrupt governments, bureaucrats, tax gatherers, governors and other parasites have extracted facilitation fees as their “share” for allowing commerce to proceed. But, I’ve never seen it done quite so blatantly as Donald Trump when he offered to allow the sale of Tik Tok to Microsoft on the basis:

“a very substantial portion of that price is going to have to come into the Treasury of the United States because we’re making it possible for this deal to happen.”

Wow. That resets the rules of global business… It redefines the role of government. It solves the tax conundrum of how states are going to finance the pandemic costs. A buccaneering we will go.. Who loses? The Chinese seller or the US buyer? Or everyone?

Meanwhile…

Back in the real world I am becoming increasingly worried about the R word. Recovery. I sense the economic damage is escalating rather than easing. What do record low/negative real yields and the rise of gold tell us? Something’s awry. 

 

I’ve been relatively optimistic that recovery from the pandemic could be faster than expected – after all, it’s not like a war destroyed factories and infrastructure, shattered consumer demand, and broken supply chains are quickly fixed. Governments and central banks acted swiftly and decisively. Recent economic reports and signals of resumed activity have been increasingly positive.

So … Why does it feel like this nascent recovery is stalling? 

Talking to clients in recent days I detect an increasing sense this is going to get worse. The obvious threat is that coronavirus policy decisions will tip us back into a meltdown.  There is a sense the recessionary forces kicked into motion by the virus are taking on their own momentum. Look at the rising number of job losses – not just in sectors being hammered by the virus like airlines, hospitality and tourism, but also what rising bank NPLs will mean for growth.

If I can use a sailing metaphor: it feels like a gathering wave. Every negative economic pulse is each individually a small ripple on the surface of the economic ocean, but they are combining into storm waves that threaten to swamp economic activity. (If I mention anything stupid like “Perfect Storm”, please shoot me.. but you get the drift.) And, yes… I know about storms…

The bad ones come in three parts.. 

The first issue is an increasing element of “wobble” in the background noise.  The pandemic is setting the economic agenda – and driving what feel to be increasingly reactive government responses.  We need to be ahead of this thing – not behind it!  If it looks reactive, it hammers sentiment. Confidence is what will get us out of crisis. Confidence feels in increasingly short supply. It’s not the virus that created this storm – it’s the policy decisions taken to address it that are doing the damage. Regrettable, but fact.

Second, add the Coronavirus shocks to damaged global supply and demand chains and the friction from known geopolitical threats like China/US tension, global trade null-entrophy, Brexit, and the issues likely to be triggered by Europe’s recovery fund. Then layer on top the economic tensions multiplying in the emerging markets… Oh, and yes, the possibility of a messy US election triggering a constitutional crisis. (Long shot – but possible.)

Third is the reality of solvency – the number of SMEs being kept afloat solely through government schemes and emergency lending, plus the larger corporates that have borrowed in markets. That money that’s keeping companies open may be at ultra-cheap rates, but when it comes due and companies struggle to repay we face a wave of defaults and NPLs. The result is going to be more-for-longer government support alongside permanent lower-for-longer rates and the distortions of QE Infinity. The longer it lasts the more established permanent intervention becomes, and the more unlikely it ever ends – in effect, a whole private sector utterly dependent on state aid.

The alternative is a tidal wave of defaults and rising unemployment. The rating agencies are seeing defaults set to rise – delayed by the pandemic but certain to lift as support polices ebb, and businesses realise it’s impossible to go on.  And governments can’t afford to write a permanent blank cheque to the economy while providing all the public good services we expect from them – defence, education, health, social care, etc. Something will break – and hoping that Modern Monetary Theory can bail us out indefinitely.. well that’s a hope – which is never a good strategy.

We were talking about the threats y’day and one of my colleagues used the analogy that we’re in the Phoney War phase of the Covid pandemic and its economic/social consequences. His fear is the real war will begins when Govts recognise that they can’t keep impoverishing future generations by maintaining subsidies and grants in perpetuity.

Its a war we won’t be winning if the whole economy remains dependent on state support, and we still suffer massive and rising long-term structural unemployment and crashing disposable incomes. The danger is null-entrophy economies may work in consensus economies like Japan – but won’t work in the socially volatile occidental economies where strife and unrest is much more likely. Tensions will be massively inflated by rising inequality and the perception of bailed out markets benefiting only the elites.

There is, of course, a more optimistic perspective – that the pandemic will act a catalyst from the old, tired, debt dependent pre-covid economy to something new and much more exciting. I’ve mentioned a couple of times my expectations we’ll see Covid spur new efforts on the environment – bringing forward new clean energy and related technologies that will be transformative and wealth creating.

We are also on the cusp of a healthcare paradigm shift as new ways to monitor our health will decisively shift the medical profession towards early interventions – much more prevention over treatment. And in industry the possibilities of 3D Printing, Automation, Robotics and AI could transform the growth outlook. Another of my colleagues sees the global economy at the start of a new “semi-conductor” supercycle where trends like smartinfrastructure, digitisation and automation will be driven by a tidal wave of consumer demand – forcing China and the US to work together to meet it.

That is an attractive vision for future growth. I think it happens – but not before the current storm passes through..

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 WEDNESDAY morning 7:00 AM….

Euro/USA 1.1852 UP .0039 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS//PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL GREEN

 

 

USA/JAPAN YEN 105.75 UP 0.125 (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 1.3139  UP   0.0055  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3245 DOWN .0051 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro ROSE BY 39 basis points, trading now ABOVE the important 1.08 level RISING to 1.1852 Last night Shanghai COMPOSITE CLOSED UP 5.88 POINTS OR 0.17% 

 

//Hang Sang CLOSED UP 155.91 POINTS OR 0.63%

/AUSTRALIA CLOSED DOWN 0,50%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 155,91 POINTS OR 0.63%

 

 

/SHANGHAI CLOSED UP 5.88 POINTS OR 0.17%

 

Australia BOURSE CLOSED DOWN. 50% 

 

 

Nikkei (Japan) CLOSED DOWN 58.81  POINTS OR 0.26%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 2040.20

silver:$26.82-

Early WEDNESDAY morning USA 10 year bond yield: 0.531% !!! UP 2 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.22 UP 3  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 92.89 DOWN 49 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.32% UP 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +01%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.31%//UP 3 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.97 UP 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 66 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES TO –.51% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.48% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1901  UP     .0098 or 88 basis points

USA/Japan: 105.45 DOWN .183 OR YEN UP 19  basis points/

Great Britain/USA 1.3145 UP .0059 POUND UP 59  BASIS POINTS)

Canadian dollar UP 55 basis points to 1.324242

 

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The USA/Yuan,CNY: AT 6.9366    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9346  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  7.0303 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +01%

 

Your closing 10 yr US bond yield UP 4 IN basis points from TUESDAY at .55 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.23 UP 4 in basis points on the day

Your closing USA dollar index, 92.63 DOWN 75  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 64.38  1.07%

German Dax :  CLOSED UP 59.38 POINTS OR .47%

 

Paris Cac CLOSED UP 43.82 POINTS 0.90%

Spain IBEX CLOSED UP 19.30 POINTS or 0.27%

Italian MIB: CLOSED UP 126.25 POINTS OR 0.64%

 

 

 

 

 

WTI Oil price; 43.28 12:00  PM  EST

Brent Oil: 45.95 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    72.73  THE CROSS LOWER BY 0.65 RUBLES/DOLLAR (RUBLE HIGHER BY 65 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 :  42.17//

 

 

BRENT :  45.15

USA 10 YR BOND YIELD: … 0.55… up 4 basis points

 

 

 

USA 30 YR BOND YIELD: 1.22..down 4 basis points..

 

 

 

 

 

EURO/USA 1.1858 ( UP 45   BASIS POINTS)

USA/JAPANESE YEN:105.61 DOWN .023 (YEN UP 2 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 92.87 DOWN 51 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.31111 UP 27  POINTS

 

the Turkish lira close: 7.0531

 

 

the Russian rouble 72.86   UP 0.52 Roubles against the uSA dollar.( UP 52 BASIS POINTS)

Canadian dollar:  1.3271 UP 25 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.52%

 

The Dow closed UP 373.05 POINTS OR 1.39%

 

NASDAQ closed UP 57.23 POINTS OR 0.52%

 


VOLATILITY INDEX:  22.99 CLOSED DOWN .77

LIBOR 3 MONTH DURATION: 0.248%//libor dropping like a stone

 

USA trading today in Graph Form

 

Gold, Nasdaq Soar; S&P Just Shy Of All Time High In Mad Dollar-Destruction Dash

A body in motion will remain in motion.

These days Newton’s first law is as applicable in physics as it is in capital markets, because despite growing concerns about a new wave of covid infections, chaos and confusion over the passage of a new stimulus wave, a V-shaped surge in projected earnings, not to mention the all too real possibility that Joe Biden will be US president in 3 months, stocks continue to move in an upward motion, unperturbed by anything, with the Nasdaq hitting its 31 new all time high of 2020 and rising above 11,000 for the first time ever on the back of the 5 FAAMG stocks but mostly the AAPL juggernaut, which despite taking a rest today on a BofA downgrade is up a staggering quarter of a trillion dollar in market cap just since its earnings report last Thursday.

And while tech bulls will pounds the table and vow that the current tech bubble is far less dangerous than the dot com bubble of 2000, the reality is that that fwd multiples are now exponential and it is only a matter of time before this particular law of Newton encounters a sufficient painful “external force” that will burst the current tech bubble too.

But don’t take our word for it: here is a quick and dirty “fundamental” analysis of Apple from Ben Mackovak:

“It’s essentially the same story. $AAPL enterprise value +90% over past 2 yrs despite no net income growth. 100% driven by multiple expansion, which I think is driven by Fed policy. When the Fed Funds rate was 2.4% in 2019, AAPL had a PE of 15x. Today Apple PE ratio is 32x.”

Of course none of this matters, as the generic argument one hears from the permabulls is a familiar one: as long as real interest rates continue to sink – and 10Y TIPS just hit a record low negative 1.07% – equity investors have no choice but to buy.

Which is absolutely correct… however it now appears that equity investors have a choice of what to buy, and in lately they have been buying a lot of gold, whose inverse correlation with real rates is effectively 1:1.

And with gold surging on Tuesday, blasting above $2000 and hitting a new all time high earlier today, increasingly more investors are turning their attention to silver, which just hit $27/oz…

… and which according to BofA, is set to double from here to $50 “in the short term.” More importantly, it increasingly appears that the biggest market moving force of today’s batshit insane market, the Robinhood army, is getting on board with both gold and silver…

… which very soon will be in the top 10, then top 5 of most popular daily names traded on the retail platform, at which point watch out above (and get read to sell). Of course, once we go vertical in gold, that’s when the Fed will have no choice but to crash everything as that’s the kind of meltup in investor conviction that everything is about to collapse that keeps central bankers up at night.

One place where Newton’s First law was not in full force today was in the rates market, where after hitting an all time low of just above 0.50% overnight, the 10Y yield backed up by 4bps, and the 30Y rose just above 1.20%…

… although as Rabobank’s Michael Every notes, even at this rate, the 30Y bond is pricing in no more than 4 rate hikes over the course of the next generation!

Another place where Newton got a bit of a break was in the S&P500, which is now just 2% below its all time high, and finding some modest resistance in the  3,328 level, which marks the top of the gap that opened on Feb. 24. As Bloomberg’s Andrew Cinko reminds us, that was the day may when stocks dropped as much as 4%, the Dow sank over 1,000 points and the VIX skyrocketed as it became clear the coronavirus was going to circle the globe.

Also it is worth noting that today is another of those days when all the gains came overnight, with the index unchanged for the duration of the day session.

One final point, and perhaps the explanation for all of the above – the devastation of the dollar continued apace, with the BBDXY sliding sharply as traders frontrun what now appear to be trillions in fiscal stimulus coming from US congress in 2020 and coming years.

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

the normally bullish ADP report reports a huge miss: just 167,000 new jobs added

(ADP)

ADP Employment Huge Miss: Just 167K Jobs Added, Below 1.2 Million Expected But June Revised Massively Higher

There was some very bad news offset by modestly good news in today’s ADP Private Payrolls report.

The bad news is that after June’s 2.369MM jump in private payrolls, consensus expected another solid – if somewhat weaker – print, at around 1.2MM jobs added. Alas, the actual number was far worse, with just 167K jobs added in July, barely in the green, and a clear sign that any V-shaped recovery from May and June is now over.

The good news is that the June print was revised by nearly 2 million higher, from 2.369MM to 4.314MM, making June the strongest month in history. Unfortunately what the market cares about (or used to) are inflection points, and in July the economy clearly slowed down.

As the following table shows, while some 166K service jobs were added in July, only 1,000 good-producing jobs were created last month as the manufacturing recession appears to be coming back with a bang.

Confirming that the labor market is slowing, Ahu Yildirmaz, vice president and co-head of the ADP Research Institute said that  “The labor market recovery slowed in the month of July,” said We have seen the slowdown impact businesses across all sizes and sectors.”

A full breakdown of the ADP print is below:

That said, none of this may matter because as Trump previewed Friday’s NFP print in a Fox News interview, “we’ll have another big jobs number on Friday”; and reiterated his view of a V-shaped recovery; says the country is in good shape, set to “rock and roll”, but Democrats don’t want to open schools.

end

ISM always report bullish numbers. They report high new orders but employment and trade are collapsing

(ISM)

ISM Services Smashes Expectations On Record High New Orders, But Employment And Trade Collapse

Unlike yesterday when there was a now traditional divergence between the ISM and Markit manufacturing PMIs (the first a big beat, the second a miss), moments ago the Institute of Supply Management and the PMI survey both agreed that in July the Service sector was stronger than expected to wit:

  • Markit Service PMI 50.0, exp. 49.6, last 49.6
  • ISM non-manufacturing 58.1, Exp. 55.0, last 57.1

Looking at the latter which has a far bigger impact on the market, it printed at the highest level since Feb 2019, despite analyst consensus of a modest slowdown in July:

As in recent months, the respondents were largely optimistic:

  • “Sales have remained strong in homebuilding. We are experiencing longer lead times for lumber, interior trim components, appliances and light fixtures. Lumber prices are near all-time highs as lumber mills have yet to increase capacity as demand has increased.” (Construction)
  • “We’re still not certain whether or not the students will be coming back in their full capacity due to COVID-19. This has caused an influx of ordering safety supplies to prepare for the possibility. We have certainly increased our purchasing in the past month or so by a large amount.” (Educational Services)
  • “COVID-19 posture continues, with some 95 percent of the company workforce working remotely.” (Finance & Insurance)
  • “Surgical services still only scheduling at 50 percent capacity. Raw material shortages worldwide affecting ability to get finished PPE (iso gowns, bouffant caps, shoe covers).” (Health Care & Social Assistance)
  • “Overall positive, but cautious outlook with oil prices stabilizing in the midst of the pandemic spiking again in our region. Our company has begun to put mitigation procedures in place to bring workers back to the office despite the lingering pandemic.” (Management of Companies & Support Services)
  • “Some business picking up, but mostly virtual meetings, training and consulting. Time will tell if its profitable. The economic situation is quite dire regionally, so there is no telling if this is a trend or just a short respite. Any business at this point is much appreciated.” (Professional, Scientific & Technical Services)
  • “Phased opening of businesses continues at a slow pace. Spending is down. Unemployment is up this year, though down compared to last month. Unemployment last year was 2.9 percent. Last month, it was 19.2 percent. This month, it is 16.2 percent.” (Public Administration)
  • “COVID-19 interruptions are changing the way business is done.” (Real Estate, Rental & Leasing)
  • “Retail sales have continued to increase month over month, likely due to the general reopening of the economy. Mask mandates have been put in place for almost every market we operate in, causing an increased need for supply of masks for employees and customers.” (Retail Trade)
  • “Orders and business activity are back to pre-pandemic levels. Previously stalled projects are starting back up.” (Utilities)

Just like in yesterday’s manufacturing ISM report, today’s beat in its non-mfg peer was driven almost entirely by a record surge in New Orders which have exploded from a record low 32.9 in April to a record high 67.7 in July…

… although just like yesterday, the offset to the surge in new orders was a continued weakness in Employment, which shrank from 43.1 to 42.1

And following on today’s disappointing ADP payrolls report, adding the signals from the two ISM surveys and it is very likely that Friday’s payrolls report will be a major disappointment.

Another adverse development was the sharp drop in new export orders and imports, which suggest that while businesses are optimistic on new orders, these are largely domestic as trade with major commercial partners is collapsing.

Finally, for those career economists at the Fed who see deflation everywhere, here is the ISM’s breakdown of commodities down in price: “No commodities were reported down in price.”

Because deflation.

iii) Important USA Economic Stories

Amazing: some zombies come to life briefly to receive government bailouts and then succumb

(zerohedge)

The Circle Of Death: Bankrupt Companies “Unfile” To Receive Government Bailouts, Then Immediately File Again

By now everyone knows that one fifth of LL corporations are “zombies” – companies that should be out of business as they are technically insolvent and don’t even generate enough cash flow to meet their debt obligations, but continue to exist thanks to either record low rates which allow them to issue even more debt and use the proceeds to pay for existing interest expense (and roll over debt maturities), or government handouts which perpetuate their pathetic, deflationary existence.

But did you know that there are now reincarnated zombies: companies which were in such a dire state they did file for bankruptcy despite the Fed’s unprecedented monetary generosity… and yet shortly after they “unfiled” just so they would be eligible for government “stimulus”?

As Bloomberg’s Steven Church puts it, say your business needs a bailout from the federal Paycheck Protection Program, but you’ve already gone bankrupt, making your firm ineligible. Tough luck, right? Well, maybe not.

Such is the pathetic state of modern capitalism that some companies have “unfiled” for bankruptcy, arranged a PPP bailout loan, and then almost immediately refiled for bankruptcy. They range from a rural Texas hospital to a group of pizza joints in Tennessee and a Portland, Oregon firm that

As Church explains, “the logic behind the PPP law was to ensure money went to save jobs, not to prop up failing companies, said Las Vegas bankruptcy attorney Brett Axelrod. But Congress didn’t do its homework. There isn’t any real difference between a company that can’t pay workers during a pandemic without a government loan and one forced into bankruptcy by a pandemic, she said.”

The government really wasn’t thinking it through,” Axelrod said. “What do companies do in a pandemic? They file for bankruptcy.”

And in this case, they then unfile to get some more taxpayer cash for which they are only eligible if they are out of bankruptcy court… and then immediately file again!

According to Bloomberg, a proposed change to the law could make such legal contortions unnecessary, but only if Congress is willing, during an election year, to vote to give federal aid to bankrupt businesses. Faith Community Health System in rural, northern Texas “unfiled” its Chapter 9 case in May, lined up a $1.8 million PPP loan, and went back into bankruptcy about two weeks later.

“It was a matter of life or death for us,” Faith Community Chief Executive Officer Frank Beaman told Bloomberg. Two nearby hospitals had shut down in recent years, leaving Faith Community the only option within 50 miles for many of Jack County’s 9,000 residents, according to court records. The hospital initially filed bankruptcy in February after losing an arbitration fight with an insurer that refused to pay for lab tests. Covid-19 made things worse.

Lawyers warned that if U.S. Bankruptcy Judge Mark X. Mullin didn’t dismiss the bankruptcy, it “could jeopardize the lives of citizens who may find themselves suffering with Covid-19 and in dire need of medical treatment.” The judge allowed Faith Community to proceed.

In the end, however, death won… again.

Henry Anesthesia Associates used the technique even though its original bankruptcy began last September, long before the Covid outbreak. The Stockbridge, Georgia medical service left court protection in June to pursue a PPP loan, and returned on July 28 after getting almost $1 million. The move was justified, Henry said in court papers, because it’s the sole anesthesia provider to the local hospital, and it “continued to be on the front lines fighting the Covid-19 pandemic.”

Needless to say, the law is completely broken, bankruptcy lawyers say – and we wholeheartedly agree – but in a world where money is worthless – and in some countries a liability thanks to negative interest rates – that’s the norm. If the program is designed to protect small businesses during the pandemic, it makes no sense to deny a bankrupt company a PPP loan, said Joe Cotterman, one of about 250 small-business trustees empowered by federal law to help companies navigate Chapter  11.

The U.S. loans are forgivable if the money is used to pay employees or other approved expenses. It’s easier in bankruptcy to ensure a borrower complies with those rules, since borrowers must disclose far more detail when reorganizing in court, Cotterman said.
“There are a lot more eyes on it,” he said, although how that justifies this epic abuse of taxpayer funds to reincarnate a corporate zombie just to then burn it down again, is a different question entirely.

end

Wow!! Treasury despite huge reserves, announces another 112 billion dollar quarterly sale  (new bond issuance)\

(zerohedge)

Treasury Announces Record $112BN Quarterly Debt Sale, Unveils Tsunami Of New Bond Issuance

Profile picture for user Tyler Durden

Just two days after the Treasury unexpectedly hiked its forecast for debt issuance in the current quarter by $270BN from $677BN to $947BN (after a record $2.75 trillion last quarter)…

… it was generally expected that today’s quarterly refunding announcement would be another blowout with the Treasury expanding its issuance of longer-term debt in coming months, after depending mainly on shorter-dated bills to fund the record deficit.

Sure enough, it was all that and more.

Specifically, the Treasury announced that it would offer a record $112 billion of long-term Treasurys to refund approximately $49.5 billion of Treasury maturing on August 15, 2020.  This issuance will raise new cash of approximately $62.5 billion.  The securities are:

  • $48BN in 3-year notes maturing August 15, 2023, Exp. $48BN vs $42BN in May;
  • $38BN in 10-year notes maturing August 15, 2030; Exp. $35BN, vs $32BN in May;
  • $26BN in 30-year bonds maturing August 15, 2050, Exp. $25BN vs $22BN in May;

In addition, the Treasury also announced that it anticipates increasing the sizes of the 2-, 3-, and 5-year note auctions by $2 billion per month.  As a result, the size of the 2-, 3-, and 5-year note auctions will each increase by $6 billion by the end of October.  Treasury also anticipates increasing the size of the 7-year note auction by $3 billion per month over the next three months.  As a result, the size of the 7-year note auction will increase by $9 billion by the end of October.

Treasury is also announcing increases of $6 billion to both the new and reopened 10-year note auction sizes, and increases of $4 billion to both the new and reopened 30-year bond auction sizes starting in August.

The table below presents the anticipated auction sizes (in $ billon) for the upcoming quarter; of note, the schedule exceeds that TBAC’s recommendations, suggesting a mismatch with primary dealers:

In total, the Treasury expects that over the three months through October, it will ramp up nominal coupon issuance by a total of $132 billion compared with the previous quarter;  it also intends to increase auction sizes across all nominal coupon tenors over the August-October quarter, with larger increases in longer tenors (7-year, 10-year, 20-year, and 30-year).  Treasury also intends to modestly increase auction sizes for FRNs while leaving auction sizes for TIPS unchanged.

over the July-September quarter, Treasury anticipates borrowing to be $947 billion (compared to the $2.753 trillion of realized borrowing in the April-June quarter).  The July-September borrowing need will ultimately depend on the final provisions of the additional legislation.

As we covered extensively, the Treasury more than doubled the issuance of T-bills outstanding earlier this year as it rushed to finance a record stimulus program approved by Congress; it is now seeking to gradually roll much of this debt into coupons. Furthermore, as noted on Monday, the Treasury has also gathered an unprecedented hoard of cash, partly in preparation for loan forgiveness to small businesses under that earlier virus-relief program.

The Treasury was expected to continue meeting the large US financing needs via increased bill issuance, however, the Treasury made it clear it will shift financing from bills to longer-dated tenors over the coming quarters; some were expecting the announcement (or at least discussion) of a new bills maturity (analysts speculated either a 4-, 5- or 9-month tenor)

Among the changes announced Wednesday, courtesy of Bloomberg:

  • “Increases of $6 billion to both the new and reopened 10-year note auction sizes, and increases of $4 billion to both the new and reopened 30-year bond auction sizes starting in August”
  • “Increases of $5 billion to both the new and reopened 20-year bond auction sizes starting in August”
  • Floating rate note sales will also be increased
  • “Treasury will continue to shift financing from bills to longer-dated tenors over the coming quarters, using long-term issuance as a prudent means of managing its maturity profile and limiting potential future issuance volatility,” the department said in a statement Wednesday.
  • With another stimulus package looming, uncertainties remain over the exact funding needs in coming months. On Monday, the Treasury said it expected to raise $947 billion in debt over the three months through September, and another $1.216 trillion in net marketable debt in the final three months of 2020.

In response to the news, the Treasury curve modestly steepened, with the 10 and 30Ys about 4bps wider over the past 24 hours.

The bottom line: with Treasury yields plumbing all time lows, it is only reasonable that the US Treasury will flood the market with as much new debt as it can handle… and then some. And as long as yields keep sliding (thanks to the Fed monetizing virtually all gross issuance), the Treasury will keep increasing its auction sizes until one day it hits the tipping point.

 end
Trump has no help from the Dems trying to extend the stimulus.  So it may do it by executive order
(zerohedge)

Trump Serious About Using Executive Order To Extend Stimulus, Cut Dems Out Of Deal: Fox

In classic Trump Administration form, President Trump and his aides are trying to pressure Democrats into caving and supporting the White House’s trillion-dollar stimulus plan that would restore the additional $600 weekly unemployment benefit, by seeking to convince the leadership that they will try to cut them out of the deal entirely.

Yesterday afternoon, Politico reported that team Trump was looking into using an executive order to re-appropriate money already appropriated by Congress and instead redirect it toward restoring the federal money for the unemployed, as well as potentially restoring the federal moratorium on evictions. Last night, Trump told reporters that yes, all of this was true – except that the team was also considering a suspension of payroll taxes, something the president has long insisted upon, despite the fact that there’s almost no support for the proposal in Congress.

Prodded about all of this on Fox & Friends Wednesday morning, Trump again insisted that for all the help he was getting from the Democrats, he “may do it myself.”

“Well, I may do it myself,” Trump said in an interview with Fox & Friends on Wednesday. “I have the right to suspend it, and I may do it myself – I have the absolute right to suspend the payroll.”

And now, with the possibility of an executive order eliciting the typical “he can’t do that!” reaction from the mainstream press, Fox Business correspondent Charlie Gasparino – who we suddenly need to pay attention to again following his reports on TikTok last Friday – has just tweeted that not only is Trump 100% going for it with the executive order strategy (he’s seriously considering an executive order to extend the stimulus bill, but without any involvement from Congress), the president also thinks he can get Microsoft and TikTok to pay the US government as part of a deal.

Of course, every political pundit and constitutional law expert on the “rent-a-quote” rolls believes there’s no way Trump could ever pull off the executive order.

Here’s more from Yahoo Finance:

However, experts say his authority to do so is limited given that the president only can postpone the payment of the tax for workers but not to suspend it.

“Congress has to pass tax laws, not the president,” Seth Hanlon, a tax-policy expert at the Center for American Progress, told Yahoo Money. “He has limited authority to postpone tax filing and payment deadlines, in instances of disasters.”

The tax code allows the president to postpone the payroll tax, though doing so in this case would be “a real stretch of his authority,” according to Hanlon. Such provisions are intended for situations when people can’t file their taxes, like in the case of a natural disaster.

Plus, a cut to the payroll tax wouldn’t benefit employees so much as employers, these experts explained.

Seeing all of this, a joke published a few days ago by the Onion comes to mind.

END
It begins:  U Conn first college team to cancel 2002 football season
(zerohedge)

UConn Becomes First Major College In The US To Cancel 2020 Football Season

UConn’s 2020 football season will forever remain the year that could have been.

The Connecticut flagship state university set a nationwide precedent on Wednesday when its athletic department announced that it would cancel its upcoming football season over fears tied to the coronavirus pandemic.

According to media reports, requirements that visitors from other states quarantine for at least 2 weeks had already caused nearly half a dozen games to be cancelled for the regular season. With New York, CT and NJ adding Rhode Island to the growing list (which now includes 35 states and territories) earlier this week, UConn was struggling to book new opponents.

Here’s more from the Hartford Courant’s Mike Anthony:

With a schedule that was already eroded after several canceled games and the ongoing concerns related to coronavirus being transferred through close contact, UConn officially canceled its football season Wednesday sources close to the program told the Courant. It was set to be the first season for the Huskies as an independent program.

The football team members arrived on campus in early July, working out in small groups with plans to begin full practices Wednesday. While athletic director David Benedict was still discussing the possibility of scheduling games in recent days, it appeared to be an uphill battle. Games against Indiana, Illinois, Ole Miss and Maine were already canceled, while games against North Carolina and Virginia appeared unlikely.

UConn could have also faced travel restrictions for some of the remaining scheduled games, as there are currently 34 states in the U.S. on a travel advisory list, requiring travelers from those states to quarantine for 14 days following trips.

As the Courant explains, UConn’s cancellation could precipitate a slew of cancellations by schools in the college-rich northeast, who will likely struggle to play home games and away games due to quarantine requirements during the fall sports season.

Most of the “Power 5” football conferences intend to play full seasons for the 2020-2021 season, though the NCAA still hasn’t come to a formal decision on fall sports.

While the Power 5 conferences remain committed to playing a season largely with conference-only games, plenty of uncertainty remains. Some college teams that have begun practicing have seen cases of coronavirus spike, including Rutgers which saw 28 players test positive. Six Big Ten teams – Ohio State, Maryland, Michigan State, Indiana, Rutgers, and Northwestern – have temporarily halted practices due to positive tests.

The NCAA Board of Governors met Wednesday about fall sports, but did not come to a conclusion. Numerous conference around the country have already canceled fall sports or postponed them until the spring, including the Ivy League.

UConn was yet to have a player test positive, but coach Randy Edsall told the Courant last week that any decision regarding the season would involve the players. Edsall also expressed some concern over how gamedays would be handled including whether a locker room would be used, how hotels and travel would be handled and whether social distancing could safely occur.

“Before any decisions are going to be made, at least in my mind, we’re going to make sure — I’m going to make sure — that our players have a say in this,” Edsall said. “They’re the ones going on the field and playing.”

After most of its programs moved back to the Big East conference, including UConn’s Men’s and Women’s basketball teams, the UConn football team was headed for a year of independent matchups, though after last year’s lackluster season, fans probably won’t be missing much.

The bigger question for Nutmeggers: Will these quarantine restrictions create the same problems for basketball?

end

iv) Swamp commentaries

Amazing!! former homeless BLM activist defeats democratic incumbent in Missouri

(zerohedge)

“This Is Huge” – Formerly Homeless BLM Activist Defeats Democratic Incumbent In Missouri Primary

In what appears to be a replay of AOC’s spectacular primary victory over Queens Democratic Boss Joe Crowley, Cori Bush, a onetime homeless woman and single mother who helped lead protests in Ferguson following the killing of Michael Brown back in 2014, has triumphed over sitting Democratic Rep. William Lacy Clay, the scion of a Missouri political dynasty.

The race was a rematch between the two candidates: Bush narrowly lost to Clay during a similar primary challenge back in 2018. However, it appears the upswell of support for BLM activists in the aftermath of the killing of George Floyd helped energize the Democratic “grass roots”, who in turn helped bring Bush over the top.

Despite the COVID-19 outbreak, turnout was higher in Missouri’s first district race by 6,000 votes this time around, a factor that clearly helped Bush. Bush defeated Clay with a plurality – 49% of the vote – with all precincts reporting, according to the AP.

In her victory remarks, Bush gleefully lampooned the Democratic establishment for trying to “dismiss the protester”.

An emotional Bush, speaking to supporters while wearing a mask, said few people expected her to win.

“They counted us out,” she said. “They called me — I’m just the protester, I’m just the activist with no name, no title and no real money. That’s all they said that I was. But St. Louis showed up today.”

Bush’s campaign spokeswoman, Keenan Korth, said voters in the district were “galvanized.”

“They’re ready to turn the page on decades of failed leadership,” Korth said.

Bush, 44, also had backing from political action committee Justice Democrats and Fight Corporate Monopolies this election. She campaigned for Vermont Sen. Bernie Sanders during his presidential bid.

Bush’s primary win essentially guarantees her a seat in Congress representing the heavily Democratic St. Louis area. Missouri’s 1st Congressional District has been represented by Clay or his father for a half-century. Bill Clay served 32 years before retiring in 2000.

William Lacy Clay, 64, was elected that year.

Clay didn’t face a serious challenger until Bush. This year, he ran on his decades-long record in Congress.

“This election is a simple choice,” Clay said in a Monday statement. “Cori Bush’s Empty Rhetoric, or my record of real results and real reforms for the people.”

Bush emerged as a leader in the protests following a white police officer’s fatal shooting of a Black 18-year-old in Ferguson. Her defeat of Clay – which, according to the AP, “essentially guarantees victory” in a suburban St. Louis district where blacks slightly outnumber whites – could mark the end of a political dynasty in Missouri that has spanned more than half a century.

She became homeless following a spell of bad luck in the early 2000s that eventually led to the break up of her marriage.

Bush became ill while pregnant with her second child in 2001 and had to quit her job at a preschool. When she and her then-husband were evicted from a rental home, the couple, their newborn and 14-month-old son lived out of a Ford Explorer for several months.
Eventually, the couple divorced. Bush earned a nursing degree. She also became a pastor.

Blue-checks around the company heralded Bush’s victory as “a huge deal”.

In their excitement over Bush’s success, some appeared to jump the gun.

Clay is still the incumbent, and if she wants to officially take his chair, she will need to win in November. During the 2018 election cycle, Democratic incumbents, even members of the Congressional leadership like Joe Crowley, respectfully bowed out to opponents like AOC. Though Crowley probably knew better than to take on a candidate who had the star-making force of the media, Big Tech and Hollywood behind her.

Ironically, AOC’s campaign, and Bush’s previous race, were both covered in the hit Netflix doc “Bringing Down the House”, a film that gave AOC mainstream exposure in a way few freshman Congresswoman ever receive. Judging by the reaction to Bush’s primary victory, a similar alliance of left-wing interests (including, ironically, the corporate-owned American media) is already lining up behind her. We suspect Clay will take the Crowley route, even if he hasn’t yet made his decision (beyond conceding defeat in the primary, Clay hasn’t made a decision yet on next steps).

 

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

The big story on Tuesday was the 2% rally in gold that pushed the December futures contract to a high of $2,027.30.  Silver rallied 7%.  Surprisingly, the Dollar Index declined 0.3%.  There is no question that the universe of traders, from astute to the new and very inexperienced, is playing gold and silver.  Besides being momentum and in vogue trading vehicles (AKA trading sardines), investment grade money is also enamored with precious metals.  The big private money has been accumulating gold, and possibly silver, for months – some for years.  Pelosi’s stimulus proposal aided the precious metal and equities rallies.

CNN’s @mkraju: Pelosi told me she still wants a stimulus deal this week.  Asked if she has an idea on the price tag she’s willing to settle for, Pelosi said: “Yeah, $3.4 trillion.” Asked if it’s feasible to get a deal this week, she said: “At some point you just have to freeze the design.”

How Robinhood Convinced Millennials to Trade Their Way through a Pandemic

“We’ve seen record trading volumes and record depositing activity,” Robinhood co-founder and co-CEO Vlad Tenev maintained in a late-April appearance on Jim Cramer’s CNBC show. Tenev, whose mussy shag cut and trim goatee made him disconcertingly resemble the folkloric outlaw his company is named after, underscored that Robinhood “has continued to have over 50% of the market share of new brokerage accounts,” more than “all of the incumbent legacy providers put together.”…

     The core premise of Robinhood as a product is straightforward: You can trade stocks with no commission charge at all… Most recently, it added the ability to make “fractional” trades, in effect buying a slice of a stock with a high per-share price, like Netflix or Amazon… (The company also makes money through interest on idle funds in users’ accounts, and through arrangements with institutional “market maker” firms to execute trades…)…

    In 2016 Bhatt and Tenev introduced Robinhood Gold, a subscription-based service that lets users trade after hours, and on margin (that is, with borrowed money), starting at $5 a month for access to a $1,000 loan… Schwab, TD Ameritrade, and E-Trade collectively racked up 1.7 million new funded accounts — and Robinhood claimed over 3 million. In March, its deposits were 17 times higher than its monthly average. App downloads surged, too…

https://marker.medium.com/how-robinhood-convinced-millennials-to-trade-their-way-through-a-pandemic-1a1db97c7e08

@ClimateAudit: Everybody heard a lot when COVID cases in FL, TX were going up. FL new cases have declined dramatically in past week. Has anyone heard about that in the news?  [Charts at link]

https://twitter.com/ClimateAudit/status/1290779004505595904/photo/1

NYC health commissioner abruptly resigns, citing de Blasio’s handling of coronavirus pandemic

Barbot’s resignation came weeks after reports that she made derogatory comments to an NYPD official while receiving requests for masks to protect the police force from COVID-19…“I don’t give two rats’ a–es about your cops,” Barbot reportedly said. “I need them for others.”…

https://www.foxnews.com/politics/nyc-health-commissioner-resigns-over-de-blasios-handling-of-coronavirus-pandemic-report

Dr. David Samadi @drdavidsamadi: Current status of coronavirus: 90% politics 10% medicine

@JamesTodaroMD: Number of children in the USA who have died from novel-coronavirus: 86; Number of children in the USA who die every year from the seasonal flu: ~500

Hospitals saw fewer heart attacks and strokes as the coronavirus pandemic struck — and nobody knows why – “The thing that’s suspicious is that the proportion of visits that resulted in a patient stay did not go up… If people with minor issues stayed home and only the most severely sick went to the hospital, you’d expect the proportion of people being admitted to go up.”…[Labeled as Covid deaths instead???]

https://www.cnbc.com/2020/08/04/coronavirus-pandemic-lowered-emergency-room-visits-why.html

Bobby Kennedy Jr. Claims Dr. Fauci will Make Millions on Coronavirus Vaccine and Owns Half the Patent – The reason for this may be because the actual rate of serious harm from vaccines is 2.4%.  There’s a 1 in 40 chance that you will get injured by vaccines and today’s kids have to take up to 70 vaccines.  Big Pharma was protected from being sued for their vaccines which is why they exploded in use…Kennedy says: The problem is Anthony Fauci put $500 million of our dollars into that vaccine.  He owns half the patent.  He and these five guys who are working for him were entitled to collect royalties from that…      https://www.thegatewaypundit.com/2020/08/unbelievable-new-interview-bobby-kennedy-jr-claims-dr-fauci-will-make-millions-coronavirus-vaccine-owns-half-patent/

MSNBC Producer QUITS: We Block ‘Diversity of Thought,’ Amplify ‘Fringe Voices and Events’

This cancer risks human lives, even in the middle of a pandemic. The primary focus quickly became what Donald Trump was doing (poorly) to address the crisis, rather than the science itself. As new details have become available about antibodies, a vaccine, or how COVID actually spreads, producers still want to focus on the politics. Important facts or studies get buried

https://www.newsbusters.org/blogs/nb/tim-graham/2020/08/04/msnbc-producer-quits-we-block-diversity-thought-amplify-fringe

Novavax declined 32% in after-hour trading because early trial Covid-19 vaccine data was disappointing.

https://www.cnbc.com/2020/08/04/novavaxs-coronavirus-vaccine-shows-promise-in-early-stage-trial.html

Fox’s @ChadPergram last night: From colleague Jason Donner. Mnuchin on potential size of coronavirus bill: “We’re not going to anything close to $3.4 trillion. That’s just ridiculous.”

NYC Mayor de Blasio said he will have to fire 22k NYC workers if there is no federal bailout for NYC.

https://twitter.com/tomselliott/status/1290763031484473347

Pritzker warns of deep cuts to Illinois budget without federal economic aid

Without federal aid, however, Pritzker said Monday that there will be significant cuts and job layoffs in Illinois and throughout the country…     https://thesouthern.com/news/local/govt-and-politics/pritzker-warns-of-deep-cuts-to-illinois-budget-without-federal-economic-aid/article_2fa92c97-7abf-5c4c-92c4-bef01d4cba28.html

WSJ Editorial Board: Will Joe Biden Duck the Debates?

There are growing calls to shield the former Veep from having to perform.

     Mr. Biden “hasn’t done any Sunday shows since Covid,” Fox News’s Chris Wallace recently said, adding that “we will ask every week.” The debates will be a rare chance for a third party to push Mr. Biden on his plans for tax increases and a Green New Deal…

    The public deserves to see how well Mr. Biden holds up under debate pressure, while hearing his answers to pointed questions about his policy proposals. If he ducks debates, voters will have every right to conclude that his handlers are trying to protect him from doubts about his cognitive capacity

    Mr. Biden portrays Mr. Trump as a bumbling incompetent, a racist, and a liar. If he believes that, he should be willing to repeat his accusations face to face…

https://www.wsj.com/articles/will-joe-biden-duck-the-debates-11596496343?reflink=share_mobilewebshare

 

FBI raids offices at downtown One Cleveland Center building tied to Ukrainian oligarch

Anderson said agents also executed search warrants at an office in Miami Federal authorities in Cleveland have been conducting a wide-ranging probe involving Ukrainian oligarch Igor Kolomoisky…

   Kolomoisky and a fellow Ukrainian billionaire formed PrivatBank in the early 1990s…

https://www.cleveland.com/court-justice/2020/08/fbi-raids-offices-at-downtown-one-cleveland-center-building-tied-to-ukrainian-oligarch.html

 

This Billionaire Oligarch Is Being Investigated by a US Federal Grand Jury for Alleged Money Laundering – Ukraine regulators found a $5.5 billion shortfall in PrivatBank’s ledgers from what they called “a large-scale and coordinated fraud” that involved the bank’s major shareholders, Kolomoisky and fellow Ukrainian billionaire Gennadiy Bogolyubov…

https://www.buzzfeednews.com/article/mikesallah/ukraine-billionaire-oligarch-money-laundering-investigation

 

Ukrainian Oligarch Connected to Burisma, the Bidens and Billions in Missing US and IMF Funds…

https://www.thegatewaypundit.com/2019/10/ukrainian-oligarch-connected-to-burisma-the-bidens-and-billions-in-missing-us-and-imf-funds-reportedly-has-suspicious-connections-to-arrest-of-giulianis-associates/

 

@davereaboi: @SenTedCruz has a hearing on Antifa, and gets killer witnesses. Of all the GOP in the Senate, only Lee and Graham bothered to show up—and just for half of it.  But SEVEN DEMOCRATS rushed to the hearing room to be counted as supporting Antifa. GOP is a bunch of total losers.

 

Jason Whitlock [though black, is under attack for this]: Leaked Video Exposes George Floyd’s Death as Tragedy and Race Hoax Used to Divide Us [US MSM ignores the video for the obvious reasons]

    The videos show police verbally and physically struggling to get Floyd to comply. Floyd appears panicked, disoriented, desperate and totally non-compliant. He complains that he can’t breathe while standing on two feet… Early on during the encounter, long before the police restrain Floyd on his stomach, a female bystander shouts at Floyd to quit “resisting” and a male bystander pleads with Floyd that he can’t “win.”… The behavior of the police officers seems appropriate and restrained given Floyd’s level of resistance and bizarre conduct

    Professional athletes elected themselves the National Internal Affairs Department for American police Moe (Silver), Larry (Goodell) and Curly (Manfred) have been played and used by anarchists and communists who are using opportunists to promote an American race war.  Their fear-driven leadership has turned America’s great unifier — sports — into a racial divider

    The subversion of sports culture is directly tied to the subversion of American culture…

    The second wave of George Floyd riots are going to be more deadly and destructive than the first wave.  The second wave will come when Thomas Lane, J. Alexander Kueng, Tou Thao and Derek Chauvin are acquitted of all serious charges

https://www.outkick.com/george-floyd-bodycam-footage-shows-it-wasnt-about-race-will-nbactivists-actually-admit-that/

 

Tucker Carlson’s lead segment last night was on the above story.  Carlson showed clips from the video.  “Why haven’t we seen the rest of the video until now?  Minnesota Attorney General Keith Ellison hid the video from the public.”    https://twitter.com/bennyjohnson/status/1290805346538332161

 

@AnnCoulter: THANK YOU, BRITISH MEDIA! @MailOnline releases George Floyd body camera footage. Not good for prosecution. Floyd is wailing in pain before anyone lays a finger on him; cops know he’s on drugs; Floyd says he can’t breathe while standing & breathing.

 

Police bodycam footage shows moment-by-moment arrest of George Floyd for the first time

https://www.dailymail.co.uk/news/article-8576371/Police-bodycam-footage-shows-moment-moment-arrest-George-Floyd-time.html

 

Chicago-Area Leaders Call for Illinois to Abolish History Classes – State Rep. LaShawn K. Ford said current history teachings overlook the contributions of women and minorities

https://www.nbcchicago.com/news/local/chicago-area-leaders-call-for-illinois-to-eliminate-history-classes/2315752/

 

Federal officers in Portland suffered 113 eye injuries from lasers, DHS official says https://trib.al/NQbR9vz

 

Well that is all for today

I will see you THURSDAY night.

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