AUGUST 12/GOLD WITHSTANDS ANOTHER ATTACK BY OUR BANKER FRIENDS: GOLD UP $1.00 TO $1938.40//SILVER DOWN 40 CENTS TO $25.81//

GOLD:$1,938.40  UP $1.00  The quote is London spot price (cash market)

 

 

 

 

 

Silver:$25.81// DOWN $0.40   London spot price ( cash market)

 

shockingly the open interest at the comex (as well as comex + London) rose despite our wicked raid Tuesday. Nobody left the gold arena

In silver: a net 6,000 contracts  departed despite our huge $3.25 loss in price.

Billions were of non backed paper in each precious metal were sold short by our bankers.  Without a question, this operation was the work of our official sector (BIS)

and this was front- runned by our crooked bankers.

The crooks are also aware that we are going to have a physical exchange in London through the LME.  Once set, you will see a physical price of say 2500.00 dollars per oz.

All paper contracts must be converted to real metal. This must be scaring our bankers to no end

 

Expect another raid tonight/tomorrow

 

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Closing access prices:  London spot

i)Gold : $1919.20  LONDON SPOT  4:30 pm

 

ii)SILVER:  $25.50//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

AUGUST GOLD:   $1941.70  CLOSE  1::30 PM  SPREAD SPOT/FUTURE AUG  (CONTANGO  $3.40//ABOVE NORMAL)

OCT GOLD:  $1937.70  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE OCT /:   : $0.70//BACKWARD/

 

 

DEC. GOLD  $2046.70   CLOSE 1.30 PM      SPREAD SPOT/FUTURE DEC   $8.30   ($ BELOW NORMAL CONTANGO)

 

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $25.86…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  5 CENT  PER OZ  ( CONTANGO/NORMAL)

SILVER DECEMBER  CLOSE:     $26.07  1:30  PM SPREAD SPOT/FUTURE DEC.       : 26  CENTS PER OZ  ( 14 CENTS ABOVE NORMAL CONTANGO)

 

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COMEX DATA

 

 

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

receiving today: 408/1471

 

ISSUED 74

EXCHANGE: COMEX
CONTRACT: AUGUST 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,932.600000000 USD
INTENT DATE: 08/11/2020 DELIVERY DATE: 08/13/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 333 4
072 H GOLDMAN 221
104 C MIZUHO 96
135 H RAND 4
226 C DIRECT ACCESS 1
323 C HSBC 6
332 H STANDARD CHARTE 36
355 C CREDIT SUISSE 8
363 H WELLS FARGO SEC 1000
657 C MORGAN STANLEY 63
657 H MORGAN STANLEY 141
661 C JP MORGAN 74 263
661 H JP MORGAN 145
685 C RJ OBRIEN 1
686 C INTL FCSTONE 21 1
690 C ABN AMRO 1 93
700 C UBS 42
709 C BARCLAYS 107
709 H BARCLAYS 4
730 C PTG DIVISION SG 1
732 C RBC CAP MARKETS 5
737 C ADVANTAGE 29 23
800 C MAREX SPEC 13 15
880 C CITIGROUP 4
880 H CITIGROUP 174
905 C ADM 13
____________________________________________________________________________________________

TOTAL: 1,471 1,471
MONTH TO DATE: 47,751

NUMBER OF NOTICES FILED TODAY FOR  AUGUST CONTRACT: 1471 NOTICE(S) FOR 147,100 OZ  (4.5773 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  47,751 NOTICES FOR 477,5100 OZ  (148.52 TONNES)

 

 

SILVER

 

FOR AUGUST

 

 

32 NOTICE(S) FILED TODAY FOR 160,000  OZ/

total number of notices filed so far this month: 1179 for 5.895 MILLION oz

 

BITCOIN MORNING QUOTE  $11,511  UP 118

 

BITCOIN AFTERNOON QUOTE.: $11,573 UP 182

 

GLD AND SLV INVENTORIES:

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

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

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/// //

A PAPER WITHDRAWAL OF 4.19 TONNES FROM THE GLD///

 

 

 

 

GLD: 1,257.93 TONNES OF GOLD//

 

 

WITH SILVER DOWN $0.40 CENTS TODAY: AND WITH NO SILVER AROUND:

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV: A DEPOSIT OF 2.141 MILLION OZ//

 

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 571,632  MILLION OZ./

 

 

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Let us have a look at the data for today

 

 

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IN SILVER THE COMEX OI FELL BY A STRONG SIZED 7420 CONTRACTS FROM 205,489 DOWN TO 198,069, AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE LOSS IN  OI OCCURRED WITH OUR STRONG $3,25 LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS PRIMARILY DUE TO A SOME  BANKER SHORT COVERING PLUS A GOOD EXCHANGE FOR PHYSICAL ISSUANCE, SOME FLUFF LONG LIQUIDATION, ACCOMPANYING  A SMALL INCREASE IN SILVER OZ. STANDING AT THE COMEX FOR AUGUST.  WE HAD A STRONG NET LOSS IN OUR TWO EXCHANGES OF 6605 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   SEP 815 DEC:  0 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  815 CONTRACTS. WITH THE TRANSFER OF 1320 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 815 EFP CONTRACTS TRANSLATES INTO 4.075 MILLION OZ  ACCOMPANYING:

1.THE $3,25 LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

86.470 MILLION OZ FINAL STANDING IN JULY.

6.420 MILLION OZ INITIAL STANDING IN AUGUST

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL $3,25 ).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE SUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME SILVER LONGS FROM THEIR POSITIONS. THE CONSIDERABLE LOSS AT THE COMEX WAS ACCOMPANIED BY : i)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL INCREASE IN SILVER OZ STANDING  FOR AUGUST,  SOME BANKER SHORT COVERING  AND 4) MINIMAL LONG LIQUIDATION AS  WE DID HAVE A STRONG NET LOSS OF 6605 CONTRACTS OR 33.025 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKERS  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER..AND THUS THE REASON FOR OUR MASSIVE RAID THIS MORNING!!

 

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:

9188 CONTRACTS (FOR 8 TRADING DAY(S) TOTAL 9188 CONTRACTS) OR 45.940 MILLION OZ: (AVERAGE PER DAY: 1148 CONTRACTS OR 5.7434 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST: 45.940 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 4.32% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)*  JUNE’S 345.43 MILLION OZ IS THE SECOND HIGHEST RECORDED ISSUANCE OF EFP’S AND IT FOLLOWED THE RECORD SET IN APRIL 2018 OF 385.75 MILLION OZ.

 

ACCUMULATION IN YEAR 2020 TO DATE SILVER EFP’S:          1,317.32 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                         45.940  MILLION OZ (EXCHANGE FOR PHYSICALS INCREASING)

 

 

 

RESULT: WE HAD A STRONG SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 7420, WITH OUR HUGE $3.25 LOSS IN SILVER PRICING AT THE COMEX ///TUESDAYTHE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 815 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 LOST A HUGE SIZED OI CONTRACTS ON THE TWO EXCHANGES:  6605 CONTRACTS (WITH OUR  $3.25 LOSS IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 815 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED DECREASE OF 7420 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A  $3.25 LOSS IN PRICE OF SILVER/AND A CLOSING PRICE OF $26,19 // 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. 0.9925 BILLION OZ TO BE EXACT or 141% of annual global silver production (ex Russia & ex China).

FOR THE NEW AUGUST  DELIVERY MONTH/ THEY FILED AT THE COMEX: 32 NOTICE(S) FOR 160,000 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 6.420 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 CONSIDERABLE SIZED 2327 CONTRACTS TO 553,345 AND CLOSER TO  OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE GOOD GAIN OF COMEX OI OCCURRED DESPITE OUR HUGE FALL IN PRICE  OF $92.40 /// COMEX GOLD TRADING// TUESDAY//WE  HAD A FAILED BANKER SHORT COVERING, A GOOD 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 LOSS IN PRICE OF $92.40. 

 

 

WE HAD A VOLUME OF 0    4 -GC CONTRACTS//OPEN INTEREST  53

 

WE GAINED A STRONG SIZED 6032 CONTRACTS  (18.76 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 3705 CONTRACTS:

CONTRACT .; AUG 0 AND OCT: 100 DEC: 3605; JUNE: 0  ALL OTHER MONTHS ZERO//TOTAL: 3705.  The NEW COMEX OI for the gold complex rests at 553,345. 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 STRONG SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6032 CONTRACTS: 2,327 CONTRACTS INCREASED AT THE COMEX AND 3705 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6032 CONTRACTS OR 18.76 TONNES. TUESDAY, WE HAD A HUGE LOSS OF $92,40 IN GOLD TRADING…...

AND WITH THAT LOSS IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 18.76 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  WERE LOATHE TO SUPPLY SHORT GOLD COMEX PAPER. THE BANKERS WERE SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT FELL $92.40). HOWEVER IT SEEMS THAT OUR BANKER FRIENDS WERE NOT HAPPY WITH YESTERDAY’S PERFORMANCE AS WE HAD ANOTHER  FAILED BANKER SHORT COVERING TUESDAY//THE BANKERS  (OFFICIAL SECTOR) HAVE REGROUPED AND ARE INITIATING ANOTHER MASSIVE RAID ON GOLD/SILVER TUESDAY EVENING. AS WE WITNESSED TODAY, THAT FAILED AS WELL!!

 

 

 

 

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A FAIR SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (3705) ACCOMPANYING THE GOOD SIZED GAIN IN COMEX OI  (2327 OI): TOTAL GAIN IN THE TWO EXCHANGES:  6032 CONTRACTS. WE NO DOUBT HAD 1 )A FAILED BANKER SHORT COVERING, 2.)A GOOD INCREASE IN GOLD TONNAGE  STANDING AT THE GOLD COMEX FOR THE FRONT AUGUST MONTH,  3) ZERO LONG LIQUIDATION; 4) GOOD COMEX OI GAIN AND 5) FAIR ISSUANCE OF EXCHANGE FOR PHYSICAL  AND  …ALL OF THIS WAS COUPLED WITH OUR HUGE LOSS IN GOLD PRICE TRADING//TUESDAY//$92,40.

 

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 : 18,412, CONTRACTS OR 1,841,200, oz OR 57.27 TONNES (8 TRADING DAY(S) AND THUS AVERAGING: 2301 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 8 TRADING DAY(S) IN  TONNES: 57.27 TONNES

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

THUS EFP TRANSFERS REPRESENTS 57.27/3550 x 100% TONNES =1.63% 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   3,317.45  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;                 57.27 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, FELL BY A STRONG SIZED 7420 CONTRACTS FROM 205,489 DOWN TO 198,069 AND FURTHER FROM OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

THE STRONG SIZED LOSS IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)   SOME BANKER SHORT COVERING , 2) A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A SMALL  INCREASE IN SILVER OZ  STANDING AT THE SILVER COMEX FOR AUGUST,  AND  4) SOME FLUFF MARGINAL LONG LIQUIDATION 

 

EFP ISSUANCE 815 CONTRACTS

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

 SEPT: 950 AND DEC. 50 AND  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 815 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI LOSS  OF 7420 CONTRACTS TO THE 815 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG LOSS OF 6605 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 33.025 MILLION  OZ, OCCURRED WITH OUR HUGE $3.25 LOSS IN PRICE///

 

 

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

(report Harvey)

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 21.02 POINTS OR 0.63%  //Hang Sang CLOSED UP 353.34 POINTS OR 1.42%   /The Nikkei closed UP 93.72 POINTS OR 0.41%//Australia’s all ordinaires CLOSED DOWN .24%

/Chinese yuan (ONSHORE) closed UP  at 6.9460 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 6.9460 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9459 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED/CORONAVIRUS /PANDEMIC  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A CONSIDERABLE SIZED 2327 CONTRACTS TO 553,345 MOVING CLOSER TO  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 CONSIDERABLE  COMEX INCREASE OCCURRED DESPITE OUR HUGE LOSS OF $92.40 IN GOLD PRICING /TUESDAY’S COMEX TRADING//RAID). WE ALSO HAD A SMALL EFP ISSUANCE (3705 CONTRACTS),.  THUS, THE ONLY EXPLANATION IS THAT WE HAD 1) ANOTHER FAILED BANKER SHORT COVERING AT THE COMEX AND 2)  SOME FLUFF LONG LIQUIDATION BUT ON NET, ZERO 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 6032 CONTRACTS DESPITE GOLD’S VERY STRONG LOSS 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 53

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED A FAIR SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 13705 EFP CONTRACTS WERE ISSUED:  AUG  0 , OCT: 100  DEC 3605; JUNE// ’21 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 3705 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: 6032 TOTAL CONTRACTS IN THAT 3705 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A CONSIDERABLE SIZED 2327 COMEX CONTRACTS.  THE BANKERS ARE NOW LOATHE TO SUPPLY THE SHORT PAPER.  THEY CONTINUE TO ISSUE  SMALLER AMOUNTS OF EXCHANGE FOR PHYSICAL AS THE COST ON CARRYING SERIAL FORWARDS IN LONDON IS TOO GREAT FOR THEM. WE HAD ANOTHER FAILED BANKER SHORT COVERING AS THE BANKERS HAVE BEEN CAUGHT TERRIBLY OFFSIDE ON THEIR SHORT POSITIONS..AND THE REASON FOR ANOTHER HUGE RAID TUESDAY MORNING AND TUESDAY EVENING AS OUR BANKER FRIENDS HAVE CALLED IN THE CAVALRY (OFFICIAL SECTOR) TO BOMB OUR PRECIOUS METALS//AS YOU CAN SEE THIS INTERVENTION HAS FAILED AGAIN// TODAY WE WITNESSED A GOOD INCREASE IN GOLD TONNAGE STANDING FOR AUGUST…..  WE NO DOUBT HAD ON A NET BASIS ZERO LONG LIQUIDATION AS  WE HAD A GOOD GAIN IN BOTH EXCHANGES DESPITE OUR COMEX PRICE  HUGE LOSS OF 92.40 DOLLARS..

 

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL 92.40).  AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED  18.76 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 6032, CONTRACTS OR 603,200 OZ OR 18.76 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:  553,345 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 55.34 MILLION OZ/32,150 OZ PER TONNE =  1721 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1721/2200 OR 78.24% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 452,615 contracts// good volume//

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  622,671 contracts//  volume: criminal //most of our traders have left for London

 

 

AUGUST 12 /2020

AUGUST 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 33.083.379  oz

Brinks

 

 

 

Deposits to the Customer Inventory, in oz  

64,347.270

OZ

BRINKS

 

 

 

No of oz served (contracts) today
1471 notice(s)
 147,100 OZ
(4.5773 TONNES)
No of oz to be served (notices)
782 contracts
(78,200 oz)
2.42 TONNES
Total monthly oz gold served (contracts) so far this month
47,751 notices
4,775,100 OZ
148.52 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 1 deposit into the dealer

i) Into Brinks  33,083.379 oz

 

 

 

 

 

total deposit: 33,083.379 oz

 

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 1 deposit into the customer account

i )into Brinks: 64,347.270 oz

 

 

total deposit:  64,347.270   oz

 

 

we had 1 gold withdrawals from the customer account:

i) Out of HSBC: 16,160.75 oz

 

 

total withdrawals;  16,160.75 oz

 

 

 

We had 1  kilobar transactions  +

 

ADJUSTMENTS: 1 //

customer to dealer

i) Brinks: 96,453.000 oz  (3, 000 kilobars)

 

 

 

 

 

 

The front month of AUGUST registered a total of 2259 CONTRACTS as we lost 2226 contracts. We had 2359 notices served on TUESDAY so we GAINED 133 contracts or an additional 13,300 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. The boys are scrambling in search of badly needed physical metal.

 

 

 

 

 

After August we have the non active Sept contract month.. Here we saw another GAIN of 64 contracts to stand at 2822.  Oct GAINED 836 contracts UP to 70,341

 

The big December contract GAINED 3249 contracts UP to 407,962 contracts… on a HUGE FALL in price???.(FAILED short covering??)

 

 

We had 1471 notices filed today for  147,100 oz

 

FOR THE AUGUST 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and  74 notices were issued from their client or customer account. The total of all issuance by all participants equates to 1471 contract(s) of which 145  notices were stopped (received) by j.P. Morgan dealer and 243 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 4 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 (47,751) x 100 oz , to which we add the difference between the open interest for the front month of  AUGUST (2259 CONTRACTS ) minus the number of notices served upon today (1471 x 100 oz per contract) equals 4,853,900 OZ OR 150.976 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 (47,751, x 100 oz + (2260 OI) for the front month minus the number of notices served upon today (1471) x 100 oz which equals 4,853,900 oz standing OR 150.9760 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 133 contracts or 13,300 oz of gold as these guys refused to morph into London based forwards.

 

NEW PLEDGED GOLD:  BRINKS

 

144,088.952 oz NOW PLEDGED  JAN 21.2020/HSBC  5.4807 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  7.2138 TONNES

611,401.341 oz pledged June 12/2020 Brinks/   july 2/july 21               19.017 tonnes

total pledged gold:  1,029,962.895 oz                                     32.03 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 468.02 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 150.979 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  16,076,968.098 oz or 500.06 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: 611,401.341 oz added which cannot be settled:  19,017 tonnes
total weight of pledged:  1,029,962.896 oz or 32.03 tonnes
thus:
registered gold that can be used to settle upon:  15,047,006.0  (468.02 tonnes)
true registered gold  (total registered – pledged tonnes  15,047,006.0 (468.02 tonnes)
total eligible gold:  20,664,787.957 oz (642.76 tonnes)

total registered, pledged  and eligible (customer) gold;   36,741,756.055 oz 1,142.82 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  1016.48 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 July 2018. and it continues to present day.

 

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.

 

 

THE DATA AND GRAPHS:

 

 

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

 

END

AUGUST 12/2020

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
 1,648,127.219 oz
Delaware
Scotia
HSBC

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,409,101.386 oz
Brinks
Delaware
JPM
Malca
No of oz served today (contracts)
32
CONTRACT(S)
(160,000 OZ)
No of oz to be served (notices)
105 contracts
 525,000 oz)
Total monthly oz silver served (contracts)  1179 contracts

5,895,,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

we had 4 deposits into the customer account

i)into JPMorgan:  1,194,723.050 oz

 

 

 

ii) Into Brinks: 12,569.840 oz

iii) Into Delaware: 992.686 oz

iv) Into Malca: 200,815.810 oz

 

 

 

 

 

 

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

JPMorgan now has 165.57 million oz of  total silver inventory or 49.15% of all official comex silver. (165.57 million/336.8577 million

 

total customer deposits today: 1,409,101.386   oz

we had 3 withdrawals:

i) Out of CNT:  1,546,676.648 oz

ii) Out of Delaware: 17,718.981

iii) Out of HSBC: 83,731.590 oz

 

 

total withdrawals; 1,648,127.219    oz

We had 0 adjustments

 

 

Total dealer(registered) silver: 128,022 million oz

total registered and eligible silver:  336.577 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

the front month of August registered an open interest of 137 contracts and thus we lost 12 contracts.  We had 16 notices filed on TUESDAY so we GAINED 4 contracts or an additional 20,000 oz will  stand for delivery as these guys refused to morph into London based forwards as well as negating a fiat bonus for their efforts…. The bankers are now desperate in their search for badly needed silver whether it is on this side of the pond or the European side.

 

 

 

After August we have the  big September contract month and here we see a lost 11,742 contracts down to 106,030. November saw another gain of 68 contracts to stand at 253.

 

The big December contract month saw its OI rise by strong 3900 contracts up to 80,102

We lost some fluff marginal longs but silver in strong hands refuse to leave the silver arena despite the vicious attack, yesterday and today..

 

The total number of notices filed today for the AUGUST 2020. contract month is represented by 32 contract(s) FOR 160,000, 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 1179 x 5,000 oz = 5,895,000 oz to which we add the difference between the open interest for the front month of AUGUST(137) and the number of notices served upon today 32 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the AUGUST/2019 contract month: 1179 (notices served so far) x 5000 oz + OI for front month of AUGUST  (137)- number of notices served upon today (32) x 5000 oz of silver standing for the AUGUST contract month.equals 6,420,000 oz. ..VERY STRONG FOR A NON ACTIVE MONTH.

We gained 4 contracts or an additional 20,000 oz will stand for delivery as they refused to morph into London based forwards..

 

 

TODAY’S ESTIMATED SILVER VOLUME : 266,857 CONTRACTS // volume huge++++++++++++++++++/

 

 

FOR YESTERDAY: 408,323.  ,CONFIRMED VOLUME//volume  all time record/huge/criminal/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 408,323 CONTRACTS EQUATES to 2.041 billion  OZ 291% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  FALLS TO- 4.12% ((AUGUST 12/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -1 .39% to NAV:   (AUGUST 11/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/4.12%

(courtesy Sprott/GATA

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

NAV 19.87 TRADING 19.31///NEGATIVE 2,82

END

 

 

And now the Gold inventory at the GLD/

AUGUST 12/ WITH GOLD UP $1.00 TODAY: WE HAD A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A WITHDRAWAL OF 4.19 TONNES//INVENTORY RESTS AT 1257.93 TONNES

AUGUST 11//WITH GOLD DOWN $92.40 TODAY, WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1262.12 TONNES.

AUGUST 10/WITH GOLD UP $11.35  TODAY, WE HAD A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 5.84 TONNES//INVENTORY RESTS AT 1262.12 TONNES

AUGUST 7/WITH GOLD DOWN $38.30 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1267.96 TONNES

AUGUST 6/WITH GOLD UP $20.45 TODAY, WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A PAPER DEPOSIT OF 10.23 TONNES INTO THE GLD/INVENTORY RESTS AT 1267.96  TONNES//

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Inventory rests tonight at

AUGUST 12/ GLD INVENTORY 1257.93 tonnes*

LAST;  879 TRADING DAYS:   +318.43 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 779 TRADING DAYS://+496.96  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

AUGUST 12/WITH SILVER DOWN 40 CENTS TODAY: WE HAVE ANOTHER CHANGE IN SILVER INVENTORY AT THE SLV//A WITHDRAWAL OF XX MILLION OZ//INVENTORY RESTS AT XX MILLION OZ/

AUGUST 11/WITH SILVER DOWN $3.25 CENTS, WE HAVE ANOTHER CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 2.41 MILLION OZ//INVENTORY RESTS AT 571.632 MILLION OZ//

AUGUST 10/WITH SILVER UP 1.89 TODAY, WE HAVE ANOTHER HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A WITHDRAWAL OF 3.538 MILLION OZ/INVENTORY RESTS AT 569.491  MILLION OZ//

AUGUST 7/WITH SILVER DOWN 69 CENTS TODAY: WE HAVE ANOTHER HUGE CHANGE IN SILVER INVENTORY: A DEPOSIT OF 0.465 MILLION OZ/INVENTORY RESTS AT 573.029 MILLION OZ.

AUGUST 6/WITH SILVER UP $1.52 TODAY, WE HAVE NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 572.564 MILLION OZ///

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/

 

AUGUST 12.2020:

SLV INVENTORY RESTS TONIGHT AT

571,632 MILLION OZ.

 

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

Value of gold stored by Irish metals broker GoldCore surges past €100m

Investment in gold has risen during pandemic

The value of gold coins and bars stored for clients by Irish precious metals broker GoldCore has surged 68pc so far this year to more than €100m.

Gold prices last week topped the $2,000-per-ounce level for the first time as investors seek havens from the pandemic.

“We are seeing demand on a scale which has not been seen since the early stages of the global financial crisis in 2009 and we expect that to continue in the coming months,” said GoldCore CEO Stephen Flood.

 

NEWS and COMMENTARY

 

Gold loses ground as dollar firms; investors eye U.S. stimulus

Silver rallies over 6%; Gold ends higher as China-U.S. tensions seen escalating

Why Is Everyone Buying Gold?

Yields hold near historic lows on economic slowdown fears


Dollar rises vs euro, Swiss franc as investors focus on aid package

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

10-Aug-20 2030.30 2044.50 1552.98 1561.38 1725.35 1734.96
07-Aug-20 2061.50 2031.15 1574.37 1559.52 1743.82 1726.88
06-Aug-20 2049.15 2067.15 1555.30 1569.59 1728.87 1743.43
05-Aug-20 2034.45 2048.15 1553.30 1558.03 1718.09 1722.90
04-Aug-20 1972.25 1977.90 1508.77 1519.62 1671.09 1686.56
03-Aug-20 1972.95 1958.55 1509.50 1504.56 1678.39 1670.45
31-Jul-20  1974.70 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

Access Latest Goldnomics Podcast (Part II) Here

Own gold and silver coins and bars in the safest vaults in Zurich, Singapore, London and Dublin with GoldCore.

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Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

For all of our coin collectors out there…..

First U.S. silver coin, minted in 1794, offered at auction

 Section: 

1794 Silver Dollar, Worth $10 Million, for Sale by New Jersey Dealer; ‘This Coin Is the Holy Grail’

By David P. Willis
Asbury Park Press, Asbury Park, New Jersey
Tuesday, Augustd 11, 2020

A rare 1794 U.S. silver dollar, believed to be the first ever silver dollar minted by a newborn United States, is going up for sale by a Middletown coin dealer.

“This coin is the Holy Grail of all dollars,” said Laura Sperber, president of Legend Numismatics in Middletown’s Lincroft section. The sale, by Legend Auctions, will be held Oct. 8 at The Venetian Hotel in Las Vegas and online

Bruce Morelan, a Las Vegas collector, purchased the coin, nicknamed the “Flowing Hair Silver Dollar,” in 2013 for $10 million, the most ever paid for a rare coin. It features Lady Liberty ringed with stars on one side and an eagle on the other.

 

“Of the 1,758 silver dollars the Mint delivered in October 1794, perhaps fewer than 130 are known to survive, and this particular coin is the finest known,” said Brett Charville, president of Professional Coin Grading Service, a rare coin authentication company, in a statement.

“It is believed to the very first one struck,” Sperber said. It is “extremely significant.”

It was presented to then-U.S. Secretary of State Edmund Jennings Randolph, who referred to it with a letter to President George Washington. …

… For the remainder of the report and photographs of the coin:

https://www.app.com/story/money/business/main-street/2020/08/11/1794-flo…

* * *

END

Alasdair Macleod states that dips in gold and silver will be bought because both metals are so scarce

(Kingworldnews/Alasdair Macleod)

Dips in gold, silver will be bought because metal is so scarce, GoldMoney’s Macleod tells KWN

 Section: 

11:12a ET Tuesday, August 11, 2020

Dear Friend of GATA and Gold:

11:10a ET Tuesday, August 11, 2020

Dear Friend of GATA and Gold:

In comments to King World News, GoldMoney research director Alasdair Macleod explains why he thinks a collapse of gold and silver prices isn’t likely. Foremost among his reasons is simply that real metal is in short supply and declines in futures prices will continue to be bought in expectation of standing for delivery.

Macleod’s comments are posted at KWN here:

https://kingworldnews.com/exclusive-alasdair-macleod-why-a-big-correctio…

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

END

The Fed allows the big banks to rig their own stress tests!!

crooks!

(Pam and Russ Martens/Wall Street on Parade)

Pam and Russ Martens: Fed lets big banks rig their stress tests

 Section: 

By Pam and Russ Martens
Wall Street on Parade
Tuesday, August 11, 2020

On January 31 this year, researchers for the Federal Reserve released a study that showed that the largest banks operating in the United States have been gaming their stress test results by intentionally dropping their exposure to over-the-counter derivatives in the fourth quarter. The fourth quarter data is the information used by the Federal Reserve to determine surcharges on capital for Global Systemically Important Banks, or G-SIBs.

The report, “How Do U.S. Global Systemically Important Banks Lower Their Capital Surcharges?,” was written by Jared Berry, Akber Khan, and Marcelo Rezende.

… 

We decided to evaluate this claim for ourselves, using the quarterly derivative reports provided by the Office of the Comptroller of the Currency, the regulator of national banks.

 

The data was appalling.

The largest Wall Street banks not only dropped their level of derivatives by trillions of dollars in the fourth quarter, but they restored those derivatives by the end of the following first quarter.

In the case of JPMorgan Chase, the bank dropped its total derivatives from $55 trillion notional (face amount) in the third quarter to $46.9 trillion in the fourth quarter of 2019, a decline of $8 trillion in one quarter or 15 percent. But by the end of the first quarter of 2020, JPMorgan had pushed those derivatives back up to $59.6 trillion. …

… For the remainder of the report:

https://wallstreetonparade.com/2020/08/bombshell-report-fed-is-aware-tha…

* * *

Bombshell Report: Fed Is Aware that Big Banks Are Rigging their Stress Tests and Letting Them Get Away with It

By Pam Martens and Russ Martens: August 11, 2020 ~

On January 31 of this year, researchers for the Federal Reserve released a study that showed that the largest banks operating in the U.S. have been gaming their stress test results by intentionally dropping their exposure to over-the-counter derivatives in the fourth quarter. The fourth quarter data is the information used by the Federal Reserve to determine surcharges on capital for Global Systemically Important Banks, or G-SIBs.

The report, “How Do U.S. Global Systemically Important Banks Lower Their Capital Surcharges?,” was written by Jared Berry, Akber Khan, and Marcelo Rezende.

We decided to evaluate this claim for ourselves, using the quarterly derivative reports provided by the Office of the Comptroller of the Currency (OCC), the regulator of national banks. The data was appalling. The largest Wall Street banks not only dropped their level of derivatives by trillions of dollars in the fourth quarter, but they restored those derivatives by the end of the following first quarter. (See first OCC chart below which shows the largest of the top 25 banks by derivative exposure.)

In the case of JPMorgan Chase, it dropped its total derivatives from $55 trillion notional (face amount) in the third quarter to $46.9 trillion in the fourth quarter of 2019, a decline of $8 trillion in one quarter or 15 percent. But by the end of the first quarter of 2020, JPMorgan had pushed those derivatives back up to $59.6 trillion.

The Federal Reserve seems to be accepting this behavior from JPMorgan Chase as a legitimate means of reducing its capital requirements. Yesterday, the Federal Reserve announced the new capital requirements for the largest, Global Systemically Important Banks, or G-SIBs. We fully expected JPMorgan Chase to be slapped with the highest capital requirement since its Systemic Risk Report last year showed it to be the riskiest bank in the U.S. and, clearly, based on the above research that appears on the Fed’s own website, it’s aware of JPMorgan’s “window dressing,” the term used by its own researchers.

But instead of JPMorgan Chase getting slapped with the highest Common Equity Tier 1 (CET1) capital requirement of all 34 banks that underwent the stress test, it was given a relatively tame 11.3 percent CET1. The banks hit with the highest CET1 capital requirements were Goldman Sachs at 13.7 percent and Morgan Stanley at 13.4 percent. (See the Fed’s full chart of capital requirements here.)

Morgan Stanley does not show up on the first OCC chart below because it holds its huge derivatives book at its bank holding company, rather than at its federally-insured commercial banks. The second OCC chart below suggests that Morgan Stanley was also window-dressing its derivatives book, dropping it from $36.2 trillion in the third quarter of 2019 to $32.5 trillion in the fourth quarter; then back to $35.6 trillion in the first quarter of 2020.

Goldman Sachs and Morgan Stanley came away with a higher CET1 capital requirement than even Deutsche Bank’s U.S. entity, DB USA, which was assigned a CET1 capital requirement of 12.3 percent. That’s really saying something. Deutsche Bank has lost money in four of the last five years, including a whopping $5.8 billion last year. Its stock price has evaporated 90 percent of its value since 2007 and it has been repeatedly hit with large fines by regulators for money laundering.

All of this is just further evidence that Congress needs to take away the supervisory powers over banks from the Federal Reserve; strip it of its ability to bail them out; and restrict the Fed to setting monetary policy. Those restrictions can’t arrive soon enough.

Big Bank Derivative Exposures; Third and Fourth Quarter 2019

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Big Bank Derivative Exposures; Third and Fourth Quarter 2019

END

iii) Other physical stories:

TUESDAY NIGHT/GOLD AND SILVER EARLY EVENING TRADING:

Precious Metal Pummeling Continues In Early Asia Trading

As Bloomberg’s Mark Cranfield noted this evening, small reversals are just not gold’s style after a major advance (typically somewhere between a 15% and 20% drop is more common), and the selling pressure on precious metals has continued as Japan and then China opens this evening with Silver futures back at a $23 handle and Gold futures back below $1900.

Sending the gold/silver ratio soaring…

After finding support at 2017 lows…

As Peter Schiff noted earlier:

Nothing goes up every single day, and gold and silver are not going to be the exception to that rule. There are no bull markets that are up every day. You’re always going to have down days.”

Peter said the fundamentals are better than any he’s ever seen.

The Federal Reserve is printing trillions of dollars. Fed Chair Jerome Powell has said it isn’t even thinking about thinking about raising interest rates. And there are reports that the central bank is set to make a commitment to ramping up inflation. All of this is extremely bullish for gold.

In a CNBC interview, US Global Investors CEO Frank Holmes said he can see $4,000 gold in the relatively near future with G-20 finance ministers and central banks “working together like a cartel and they’re all printing trillions of dollars.”

We’ve not seen this level where central banks are printing money at a zero interest rate. At zero interest rates, gold becomes a very, very attractive asset class,” Holmes said.

You have to focus on the fundamentals. A lot of investors aren’t doing that.

They’re not looking into the future and realizing the monetary fiscal policies that have already driven gold past $2,000 are going to continue and drive it past $3,000, $4,000, $5,000… And therein lies the opportunity.”

Finally, we note that Central banks added another net 18.1 tons of gold to their reserves in June, according to the latest data from the World Gold Council, who also found that 20% of central banks globally plan to expand their gold holdings in 2020.

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

This year’s surge in precious metals, as Peter Schiff warns, is not a happy occasion because it really portends some real big problems on the horizon. I mean, most Americans don’t have any gold. There is severe economic hardship that the vast majority of Americans are going to be enduring, and gold is basically letting you know that that hardship is on the way.”

END

Bill Holter…

This is NOT 2011!
We received many e-mails and phone calls yesterday re the gold and silver trashing.  First, this is not 2011 in any way shape or form.  Back then, we were at the end of at least 2 1/2 years of very strong action coming off the 2008 GFC lows (or 10 years off the 2001 lows).  Today we are less than 6 months off the lows.  While physical demand was good in 2011, physical demand today is off the charts and stronger than ANY time in memory.  In fact, Miles Franklin saw almost zero sells yesterday as the already very busy phone lines exploded with new buy orders!
  Add to retail demand the fact that central banks bought nearly 20 tons of gold over the last 30 days.  Understand, central banks do not buy gold to trade, it is an effort to shore up their shaky foundations because they know where the current financial lunacy leads to.  Also, COMEX August deliveries look to be a barn burner!  First notice day saw 143 tons standing which prior to this June was simply unprecedented.  As of yesterday, that number has increased to slightly over 150 tons.  Until about 18 months ago, standing amounts would always leak down into final delivery day, now each and every month sees queue jumping where the amount standing for delivery increases on a daily basis each and every month.  Physical demand will mathematically overwhelm the available supply that paper exchanges can deliver, we are very close to this realization.
  Yesterday’s action was kicked off with what I understand was a $4 billion paper order Monday night/Tuesday morning.  We also have seen (and there have been many questions over the last week) the shares trade like crap for the last 10 days.  This action in past years ALWAYS preceded raids on the metal prices.  In other words, yesterday’s action was pre planned as so many past raids have been.
  That said, we were certainly due a pullback from such overbought levels.  We have been telling subscribers during our weekly calls to expect huge volatility that would only grow larger over time, it has certainly begun.  Jim mentioned to me this morning that he is encouraged to see such high volatility so early in the move.  Normally volatility does not rear such a large head until later in moves …but, this is gold and silver we are talking about where “unofficial” coordinated attacks occur.  If you thought silver moving 7% higher several days in a row was volatility, just wait!
  Many were looking for a pullback to make purchase or further purchase.  You may have gotten the full correction yesterday or possibly more to come.  In any case, this is the third, final and most exciting leg of the bull market in metals!  Another way to say this is; the end and final meltdown in fiat currency is in sight.  And with that, our advice as it has been for the last year or more is that this is the rally in gold and silver that should not be sold until a new currency comes forth that can be trusted.  To be trusted of course will mean some sort of real backing and not just a promise the check is in the mail.
  Stay calm and understand “why” you bought gold or silver in the first place.  If you purchased to “make a profit” then good luck to you.  If you bought to get out of the system (GOTS), then stay out of the system and move further capital to safety on this pullback if able.  As for volatility, the last couple of weeks and yesterday are only the beginning tremors before the total eruption which also means the meltdown of fiat and credit.  Please use your common sense and your own eyes to see credit (which is now 120 days late all over the world) is broken to the point it cannot be fixed.  The explosion in global demand for metal is a direct result of big money understanding the only place to hide in a credit meltdown can only be where liability does not exist.  There is ONLY one financial place in the world where liability does not exist, and you witnessed a coordinated effort to scare you away from it yesterday …!
Standing watch,
Bill Holter
Holter-Sinclair collaboration

 

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: 6.9460/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9459   /shanghai bourse CLOSED DOWN 21.02 POINTS OR 0.63%

HANG SANG CLOSED UP 353.34 POINTS OR 1.42%

 

2. Nikkei closed DOWN 93.72 POINTS OR 0.41%

 

 

 

 

3. Europe stocks OPENED MOSTLY GREEN EXCEPT GERMAN DAX/

 

 

 

USA dollar index DOWN TO 93.52/Euro RISES TO 1.1774

3b Japan 10 year bond yield: RISES TO. +.04/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.89/ 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:: 42.25 and Brent: 45.09

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 -.44%/Italian 10 yr bond yield UP to 0.97% /SPAIN 10 YR BOND YIELD UP TO 0.32%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.43: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 1.08

3k Gold at $1930.85 silver at: 25.66   7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble DOWN 10/100 in roubles/dollar) 73.19

3m oil into the 42 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 106.89 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 .9142 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0752 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 0.44%

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 0.673% early this morning. Thirty year rate at 1.36%

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

6.  TURKISH LIRA:  UP  TO 7.314..

Futures Rebound Back Near All Time Highs, Precious Metals Bounce After Crash

Reversing yesterday’s sharp Nasdaq and precious metals-led selloff, S&P futures rebounded from Tuesday’s drop ignoring the continuing deadlock in Washington on more stimulus spending which could significantly delay the U.S. virus rescue package, and pushing the Emini to within inches of the all time high.

 

Energy stocks Exxon Mobil gained 1.1% and Chevron Corp added 1.5% in premarket trading, alongside gains in ConocoPhillips, Marathon Oil Corp. and other oil drillers all of which rose pre-market as crude futures approached a five-month high. Nasdaq 100 contracts also climbed after the index dropped for three days, an unheard of event. Tesla rose 5.7% as it announced a five-for-one stock split in an attempt to make its shares more accessible to employees and investors. The fact that a stock split has added billions to a company’s market cap just shows how broken everything in this “market” truly is.

On Tuesday, the S&P 500 Index fell for the first time in eight sessions after the benchmark index came within 0.15% of its closing record high, powered by historic fiscal and monetary stimulus and signs of a nascent economic recovery, and sparking speculation that a rotation out of the tech stocks may happen soon.

“The bias at moment is probably to fade the S&P 500 and fade risk generally,” said Societe Generale strategist Kit Juckes. “What happens next probably depends on what happens in U.S. equity markets (which are focused on stimulus)… That might be the decisive factor for short-term sentiment.”

Barring a bipartisan deal on stimulus, the U.S. economy could be left with measures U.S. President Donald Trump called for on Saturday through executive orders to bypass Congress.

“We have enormous uncertainty. It appears it’s getting harder for both sides to compromise as the election is nearing… Trump’s proposals would be smaller than markets have expected. There’s question over whether they are viable, too,” said Junpei Tanaka, strategist at Pictet.

Europe’s Stoxx 600 Index edged up thanks to gains in telecom and bank shares. Advances in ABN Amro Bank NV and HSBC Holdings Plc and drugmakers Novartis AG and GlaxoSmithKline Plc offset declines in tech, aviation and real estate shares. Elsewhere, Europe’s corporate bond spreads narrowed to their tightest since early March, just a few basis points off pre-virus levels, according to a Bloomberg Barclays index.

Earlier in the session, mixed sentiment dragged on Asian stocks as sniping continued between China and the United States. Beijing also reported weaker-than-expected loan growth, while the U.S. Senate’s majority leader described stimulus talks there overnight as “at a bit of a stalemate”.

Investors are weighing whether a rotation in equities is playing out as pandemic high-flyers including AMD and Zoom Video tumbled on Tuesday. There’s some portfolio switching “given the constant flurry of concerns about crowded positioning and stretched valuations in growth sectors such as tech and communication services,” said Matthew Sherwood, head of investment strategy for multi-asset at Perpetual Investment. “Value and cyclicals continue to be supported by positive economic surprise momentum.”

With a better-than-feared (but still down over 30% Y/Y) second-quarter earnings season largely over, attention will turn to the upcoming U.S. presidential elections. Democratic candidate Joe Biden on Tuesday picked Senator Kamala Harris as his choice for vice president.

In FX, the Bloomberg Dollar Spot Index was unchanged after earlier declining for the first time in four days, which the euro reversed an early decline to rise for a second day. The Norwegian krone and the Swedish krona led gains among Group-of-10 currencies as oil and regional equities advanced. NZD/USD fell for a fourth day, sliding as much as 0.8%, as the Reserve Bank of New Zealand boosted its Large Scale Asset Program to as much as NZ$100 billion ($65 billion) and said negative rates remained in “active preparation.” Turkey’s volatile lira took another 1.5% pounding as concerns about its economic health and policy making took hold again, while New Zealand dollar’s dropped 0.4% after its central bank signalled it would stay highly supportive.

In rates, U.S. Treasuries yield climbed a couple of basis points to 0.67% in Europe to stay at a one-month high. The 10-year yield (+6.6bps) and 30-year (+7.5bps) yields saw their biggest increases in over a month on Tuesday, while the 2s10s curve steepened 4.6 basis points, the most since June 5th. The gap between U.S. two-year and 10-year Treasury yields is a metric closely watched for signs of a slowdown. On Wednesday, yields were cheaper by 1bp to 4bp across the curve with 20-year sector faring worst; long-end underperformance steepens 2s10s by more than 2bp to 51.3bp, 5s30s to 106.8bp, both highest since early July. 10-year yield at 0.671% is highest since July 7 and above its 50- and 100-DMAs. In Europe, bunds lagged by 1bp while 30-year German bond yield turns positive for first time since July. Refunding auctions resume with $38b 10-year at 1pm ET, conclude with $26b 30-year Thursday, both all-time high sizes. The WI 10-year yield ~0.69% is cheaper than July’s record low stop at 0.653%, which was ~1bp lower than WI yield at the bidding deadline.

In commodities, oil prices edged up after bigger-than-expected drop in U.S. inventories, with Brent up 0.6% at $44.75 a barrel. U.S. crude was up 0.5% at $41.80. Silver halted its selloff with gold, as investors decided the flight from precious metals amid advancing bond yields had gone too far.

 

Expected data include inflation. Royalty Pharma, Cisco, Lyft and Trulieve Cannabis are among companies reporting earnings

Market Snapshot

  • S&P 500 futures up 0.7% to 3,352.75
  • STOXX Europe 600 up 0.1% to 371.20
  • MXAP up 0.2% to 169.90
  • MXAPJ down 0.09% to 561.67
  • Nikkei up 0.4% to 22,843.96
  • Topix up 1.2% to 1,605.53
  • Hang Seng Index up 1.4% to 25,244.02
  • Shanghai Composite down 0.6% to 3,319.27
  • Sensex down 0.1% to 38,351.33
  • Australia S&P/ASX 200 down 0.1
  • German 10Y yield rose 3.0 bps to -0.448%
  • Euro up 0.1% to $1.1755
  • Italian 10Y yield rose 2.2 bps to 0.817%
  • Spanish 10Y yield rose 2.1 bps to 0.3%
  • Brent futures up 1% to $44.95/bbl
  • Gold spot up 1.2% to $1,934.56
  • U.S. Dollar Index little changed at 93.60

Top Overnight News from Bloomberg

  • The U.K. suffered the worst economic downturn in Europe, with a 20.4% contraction in the second quarter, pushing the country in its first recession since 2009
  • China is to bring up the recent measures brought by President Donald Trump against the WeChat and TikTok apps during upcoming trade talks with the U.S. this week. The trade review, for which an exact date hasn’t been released yet, comes in a context of growing hostility between the two superpowers
  • California reported a surge in coronavirus cases, nations in Asia are struggling to contain new waves of infections, and European countries report new increases, a reminder that the battle against the virus is far from over. But there are encouraging vaccine news, including Russian President Vladimir Putin’s announcement that his government has cleared the first Covid vaccine before clinical tests are finished

A quick look at global markets courtesy of RanSquawk:

Asian equity markets traded with a lacklustre tone following on from a weak lead from US where the major indices faltered in late trade after comments from US Senate Majority Leader McConnell dashed some stimulus hopes and saw the S&P 500 retrace its earlier gains which had initially pushed the index to within 1% of its all-time high. ASX 200 (-0.1%) was subdued with underperformance seen in gold miners following the aggressive pullback in the precious metal which retreated firmly below the USD 2000/oz level. Furthermore, nearly all its sectors languished in the red aside from financials which showed some resilience despite CBA posting an 11.3% decline in FY cash profits, while recent data releases contributed to the dampened mood after a further deterioration in Westpac Consumer Sentiment and with Wage Growth at its slowest pace in 27 years. Nikkei 225 (+0.4%) was choppy as participants digested earnings including SoftBank which was pressured following a drop in Q1 pre-tax profits, and NZX 50 (-1.3%) suffered from lockdown restrictions following reports of the country’s first COVID-19 cases after having gone 102 days without any locally-transmitted spread of the virus, although some of the losses were stemmed following the RBNZ announcement to expand its QE program. Elsewhere, Hang Seng (+1.4%) and Shanghai Comp. (-0.6%) initially conformed to the glum mood despite a strong liquidity effort by the PBoC which injected CNY 140bln through 7-day reverse repos as participants also react to weaker than expected lending data from China and as US-China tensions lingered. Finally, 10yr JGBs are weaker in the aftermath of yesterday’s extended retreat and following recent losses in T-notes, while participants were also kept sidelined amid the enhanced liquidity auction for longer dated JGBs which attracted weaker interest than prior.

Top Asian News

  • Abu Dhabi Is Said to Seek Local Investors for Gas Pipelines
  • Alibaba-Backed Best to List Delivery Business in H.K.: Reuters
  • Softbank-Backed KE Poised to Raise $2.1 Billion in U.S. IPO
  • Singapore Regulator Warns of More Bank Job Losses in Second Half

European equities trade flat/firmer after an uninspiring cash open [Euro Stoxx 50 +0.1%] as sentiment somewhat improved from a downbeat APAC handover. News flow has again been light in early hours with little by way of fresh fundamental catalysts to shift the dials. That being said, the DAX (-0.2%) holds its position as the laggard as heavyweight SAP (-0.9%) fails to trim losses amid the broad tech underperformance seen Wall St and Asia-Pac, whilst the FTSE 100 (+0.6%) trades on the other side of the spectrum bolstered by its heavy energy and financials exposure. Sectors are mixed with no clear risk profile to be derived, with the breakdown seeing banking names among the gainers after ABN AMRO (+5.3%) reported lower than expected loan loss provisions whilst Q2 operating income was more-or-less in-line with forecasts. The energy sector meanwhile is propped up by price action in the oil complex, whilst Travel & Leisure remains pressured amid fears of the impact of resurging cases in the sector. In terms of individual movers, Sunrise Communications (+26%) soared at the open and held onto gains as Liberty is to acquire Co. for CHF 110/shr for a total of CHF 6.8bln. Note, shares closed at CHF 86.20 yesterday. E.ON (-1.6%) remains in the red after cutting its FY adj. net guidance and EBIT guidance. Asos (+4.6%) remains firmer, albeit off highs, after the group noted that profit before tax for the FY is expected to be significantly ahead of market forecasts.

Top European News

  • M&G Commits to Dividend in Face of Retail Investor Fund Exodus
  • ABN Amro Cuts a Third of Investment Bank After Virus Losses
  • Just Eat Takeaway’s 1H Orders Jumped 32% During Pandemic

In FX, the Kiwi has fallen further from recent highs on renewed 2nd wave pandemic concerns following an outbreak in Auckland and reports that up to 4 more people may have contracted the virus, while latest negative OCR vibes via the RBNZ have also undermined sentiment more so than the LSAP extension and increase to Nzd 100 bn from Nzd 60 bn that was widely expected. Nzd/Usd is now hovering below 0.6550 and Aud/Nzd fading from 1.0900+ peaks overnight, as the Aussie drifts back towards 0.7100 in wake of Westpac’s August consumer sentiment showing a downturn in morale and Q2 wages sub-consensus for the weakest y/y rate of growth in 27 years.

  • USD – More real yield appreciation and associated GOLD depreciation (Xau down through Usd 1900/oz at one stage) boosted the Buck across the board, with the DXY hitting 93.909 before waning ahead of 94.000 and last week’s 93.997 apex after a late swoon on Wall Street amidst the ongoing fiscal relief stalemate. Ahead, US CPI comes hot on the heels of firmer than forecast PPI reads, but unlikely to impact much in the current less data-centric mood.
  • JPY – Another victim of relative Dollar strength and US Treasury curve concessions for Quarterly Refunding, as Usd/Jpy shifts into a loftier range in the upper 106.00 region and Eur/Jpy rebounds from just shy of 125.00 to around 125.55.
  • SEK/NOK/CHF/EUR/GBP/CAD – The tide has turned somewhat in Scandinavia where the Swedish Crown has been inflated by firmer CPI prints to an extent, while the Norwegian Krona has lost momentum alongside crude prices, but both are still outperforming vs the Euro circa 10.2600 and 10.5500 respectively as the single currency tops out against the Greenback following unsuccessful attempts to clear 1.1800 and the 200 HMA near the round number. Elsewhere, the Franc is paring declines from 0.9200, but respecting resistance at 0.9150 and Sterling has recoiled from 1.3100+ on Tuesday to test support into 1.3000, largely shrugging off not quite as bad as feared, though still pretty abject UK GDP along the way. Similarly, the Loonie handed back more gains vs its US counterpart as oil slipped and broad risk sentiment/appetite dipped before bouncing circa 1.3350.
  • EM – Payback after yesterday’s strong recovery rallies, and perhaps a few signs of Cny/Cnh caution in the run up to Saturday’s US-Sino Summit as China’s Foreign Ministry warns against the danger of playing with fire in reference to US Health Chief Azar’s trip to Taiwan.

In commodities, WTI and Brent futures eke mild gains in early trade with prices supported by the larger-than-expected draw in private crude inventories (-4.4mln vs. Exp. -3.1mln), whilst EIA’s STEO also provided a bullish outlook, with 2020 and 2021 world oil demand forecast upgraded by 40k BPD and 30k BPD respectively, whilst also lowering 2020 US production forecasts by 370k from the prior report. Aside from that, news flow has been scarce, WTI September meanders on either side of USD 42/bbl (vs. low USD 41.53/bbl) whilst its Brent October counterpart briefly rose above USD 45/bbl after printing a base at USD 44.49/bbl. Elsewhere, precious metals see gains in what seems to be a consolidation from yesterday’s dire losses, spot gold tested USD 1950/oz to the upside (vs. low 1863/oz) before coming off highs, and spot silver briefly reclaimed a USD 26/oz handle from a sub-25/oz base.  Meanwhile, due to price fluctuations, the Shanghai Gold Exchange said it will increase margin requirements for gold contracts to 12% from 9%, trading limit to be raised to 11% from 8%, whilst margin requirements for silver contracts will also be raised to 16% from 13%, trading limit to be raised to 12% from 15%. In terms of base metals, Shanghai copper declined in tandem with Chinese stocks in the run-up to US-China meeting, whilst the stalemate on US fiscal stimulus added to the downbeat tone overnight. Dalian iron ore prices retreated overnight after the China Iron and Steel Association predicted iron ore discharging difficulties and port congestion issues are seen easing later this month.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior -5.1%
  • 8:30am: US CPI MoM, est. 0.3%, prior 0.6%; US CPI Ex Food and Energy MoM, est. 0.2%, prior 0.2%
  • 8:30am: US CPI YoY, est. 0.7%, prior 0.6%; CPI Ex Food and Energy YoY, est. 1.1%, prior 1.2%
  • 8:30am: Real Avg Weekly Earnings YoY, prior 4.6%; Real Avg Hourly Earning YoY, prior 4.3%
  • 2pm: Monthly Budget Statement, est. $137.5b deficit, prior $119.7b deficit

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 21.02 POINTS OR 0.63%  //Hang Sang CLOSED UP 353.34 POINTS OR 1.42%   /The Nikkei closed UP 93.72 POINTS OR 0.41%//Australia’s all ordinaires CLOSED DOWN .24%

/Chinese yuan (ONSHORE) closed UP  at 6.9460 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 6.9460 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9459 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED/CORONAVIRUS /PANDEMIC  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA VS USA

Beijing will visit the USA next week discussing the Phase one part of the trade deal.  Also TikTok and We Chat will be in the discussion talks

(zerohedge)

Beijing Pushes To Discuss Trump’s Ban On TikTok, WeChat During Next Round Of Trade Talks

Larry Kudlow took to cable news yesterday to reassure the American public and investors ahead of talks with Beijing next week that China continues to meet “all the obligations” of the ‘Phase 1’ trade deal, insisting that “the one area we are engaging in [with China] is trade”. A week earlier, he desperately insisted that the deal was still intact.

This, despite research from Goldman Sachs (and others) who have shown that China has so far made little effort to keep its promise to buy billions of dollars in via controlled-economy direct orders of American goods.

That chart is a month old, but the trend it illustrates hasn’t changed: as of Wednesday, Beijing has purchased only a quarter of the goods it promised to buy. China would need to buy about $130 billion during H2 of this year to comply with the original terms of the agreement signed in January, which laid out purchasing an additional $200 billion of US goods and services over the 2017 level by the end of 2021.

A week ago, one Twitter user stumbled on something interesting: Is the Trump Administration taking aim at TikTok and WeChat simply to give Beijing one more reason to at least play along with the notion that the ‘Phase 1’ trade deal was anything more than a publicity stunt.

Now, that conjecture is looking surprisingly prescient, as top trade officials in Beijing are reportedly pushing to add TikTok and WeChat to the agenda with their American counterparts next week. Here’s more from Bloomberg:

A virtual meeting will likely take place as soon as this week though a date hasn’t been finalized, according to people familiar with preparations for the talks who asked not to be named. Along with agricultural purchases and the dollar-yuan exchange rate, which are among topics to be discussed, Chinese officials intend to bring up President Donald Trump’s prospective bans on transactions with the two apps on national security grounds, the people said. They did not elaborate on what China hopes to achieve on these issues.

So in a couple of weeks, when the realization finally lands that the trade deal is dead, Trump can announce a new ‘deal’ to avert the planned bans on WeChat and TikTok.

4/EUROPEAN AFFAIRS

UK

“Hard Times Are Here”: UK Economy Suffers Record Collapse As GDP Plummets To 2003 Levels

The British economy shrank by a record 20.4% in the second quarter when the coronavirus lockdown was tightest, the most severe contraction reported by any major economy so far, with a wave of job losses set to hit later in 2020, according to Reuters. The (sequential) Q2 GDP slump exceeded the 12.1% drop in the euro zone and the 9.5% fall in the United States.

“Today’s figures confirm that hard times are here,” said finance minister Rishi Sunak. “Hundreds of thousands of people have already lost their jobs, and sadly in the coming months many more will.”

The data confirmed that the world’s sixth-biggest economy had entered a recession, with the low point coming in April when output was more than 25% below its pre-pandemic level. In recent months there has been a modest improvement as GDP rose by 8.7% M/M in June. Cumulatively through the first two quarters of 2020, GDP fell by 22%. Given the scale of that shock, the level of GDP at the end of Q2 was in line with the level of quarterly GDP in mid-2003, meaning

The monthly GDP data, however, offered a silver lining: growth restarted in May and quickened in June, when the economy expanded by a monthly 8.7% – a record single-month increase and slightly stronger than consensus expectations. From its pre-virus peak in February to its post-lockdown trough in April, GDP contracted by a cumulative 26%. As government restrictions were subsequently lifted, GDP began to recover, rising by 2.4%mom in May and 8.7%mom in June.

In the final month of Q2, services output accelerated from +1.5%mom to +7.7%mom, manufacturing output accelerated from +8.3%mom to +11.0%mom, and construction output accelerated from +7.6%mom to +23.5%mom. Within the services sector, retail returned to a level around 6% short of its pre-virus peak, while hospitality remained around 83% short. All in all, the level of aggregate GDP in June was still 17% below its pre-virus peak.

The evolution of GDP within the second quarter is encouraging, but the contraction in GDP between the first and second quarter is historic, with the sequential drop in Q2 a record 20.4% qoq. Cumulatively through the first two quarters of 2020, GDP fell by 22%. Given the scale of that shock, the level of GDP at the end of Q2 was broadly in line with the level of quarterly GDP in mid-2003.

Three features of today’s data are worth emphasizing:

  1. the only other comparable quarterly contraction in modern history occurred during the recession of the early 1920s (in the third quarter of 1921, GDP fell by 12%qoq non-annl.);
  2. the post-virus contraction in GDP through 2020 was six times faster and four times deeper than the contraction in GDP through 2008/09 (during the financial crisis, GDP fell by almost 7% from peak to trough, over the course of a year and a half);
  3. the cumulative hit to UK output through the first two quarters of 2020 was more acute than that experienced in other developed economies (the 22.1% decline in UK GDP compares with a 15.3% decline in the Euro area, for example, and a 10.6% decline in the US).

As Goldman observes, the relative severity of the UK’s post-virus contraction owes to two features of timing and structure. On timing, the relatively late imposition of the lockdown in the UK and the relatively slow unwinding of government containment measures imply that a portion of the mechanical rebound in GDP will only be registered in the third quarter. As the next chart illustrates, from a national perspective the government restrictions still in force in the UK are more stringent than those that remain in place across most of Western Europe.

On structure, the relatively large share of UK GDP derived from social activities involving face-to-face interaction implies a greater susceptibility to enforced social distancing. In the UK, consumer spending in areas such as cinemas, restaurants and live entertainment, for example, constitutes around 13% of total output, compared with around 11% in the US and around 10% in the Euro area.

The GDP expenditure breakdown reflects the implications of sectoral susceptibility. Household consumption collapsed by 23.1%qoq non-annl. in the second quarter, accounting for more than 70% of the quarterly contraction in overall GDP (Exhibit 3). Meanwhile, fixed investment fell by 25.5% qoq non-annl., accounting for around 21% of the overall contraction in GDP (Exhibit 4). In both cases, demand in Q2 was around 22% weaker than it was, on average, at the analogous stage of the past seven UK recessions. The precipitous decline in household consumption through the first half of 2020 stands out, even relative to the experience of 2008/09.

As Reuters notes, the scale of the economic hit may also revive questions about Prime Minister Boris Johnson’s handling of the pandemic, with Britain suffering the highest death toll in Europe. More than 50,000 UK deaths have been linked to the disease.

Last week the Bank of England forecast it would take until the final quarter of 2021 for the economy to regain its previous size, and warned unemployment was likely to rise sharply.  Any decision to pump more stimulus into the economy by the BoE and finance minister Sunak will hinge on the pace of growth in the coming months, and whether the worst-hit sectors such as face-to-face retail and business travel ever fully recover.

Some economists said the sharper decline partly reflected the timing of Britain’s lockdown – which fell more in the second quarter – and its dependence on domestic consumer spending. As a result, many analysts doubt the bounce-back will be sustained.

Suren Thiru, an economist with the British Chambers of Commerce, said the recent pick-up probably only reflected the release of pent-up demand rather than a sustained revival. “The prospect of a swift ‘V-shaped’ recovery remains remote,” he said.

Britain’s unemployment rate is also expected to jump when the government ends its huge job subsidy programme in October. Sunak – who told the BBC he saw some “promising signs” in GDP data for the month of June – reiterated his opposition to extending the programme. In July he cut sales tax for the hospitality sector and in August is subsidising restaurants to draw in diners.

As Reuters further notes, Britain closed restaurants, shops and other public spaces after many other European countries, meaning more of the hit was felt in the second quarter. However, the Office for National Statistics said that over the first six months of 2020, British GDP fell by 22.1%, slightly less than Spain’s 22.7% but more than double the 10.6% fall in United States.

“The larger contraction of the UK economy primarily reflects how lockdown measures have been in place for a larger part of this period in the UK,” it said. Non-essential shops in England did not reopen until June 15, and pubs and restaurants were shut until July 4.

Some more context: hotels and restaurants did just one fifth of their normal business in June, when the lockdown was still largely in force. In both Britain and Spain spending on hotels, restaurants, recreation and culture make up around 13% of the economy, compared with around 10% or less elsewhere in Europe and the United States. Although some sectors appear to have made a rapid recovery, businesses are wary about the outlook, especially as a second wave of COVID infections could lead to the reimposition of lockdowns. Employers have already shed more than 700,000 jobs since March, according to tax data.

Looking ahead, Goldman is optimistic, and said that its base case “embodies an ongoing acceleration in monthly activity, with scope for additional localised lockdowns and precautionary household behavior but no national lockdown later this year.” As such, the bank maintains the view that GDP growth is likely to rebound sharply in Q3 (it expects +10½% Q/Q print) and the level of GDP is likely to return to its pre-virus peak in early 2022.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/GREECE

Turkey sends seismic vessels to determine oil/gas activity in Greek territorial waters.  Greek warships are reported near the Turkish vessel and they are ordering the Turkish vessels to stop their illegal activity.

(zerohedge)

Greek Warships Are Reportedly Near Turkish Exploration Vessel Actively Disrupting Seismic Signals

Via AlMasdarNews.com,

Greek national media reported on Tuesday, that the Greek Armed Forces are on high alert, at a time when the eastern Mediterranean region is witnessing tensions with Turkey due to its eastern Mediterranean oil and gas exploration.

The Greek newspaper Ekathimirini reports that Greece’s armed forces were placed in a state of absolute readiness, with units of the Hellenic Navy and Air Force deployed in the wider sea area where the Turkish research was expected.”

 

The Greece Navy Hydra Class (Meko 200HN) Frigate, Hellenic Ship (HS) PSARA (F 454), file image via US Navy.

This moves comes at a time when the Turkish Navy is escorting the seismic exploration vessel, Oruc Reis, near or within Cypriot and Greek territorial waters, which is currently being closely monitored by Egypt and Greece.

On Monday, the Turkish Navy issued a navigational notification saying that the Turkish vessel would conduct seismic surveys in the eastern Mediterranean during the next two weeks.

In response, the Greek Foreign Ministry announced that Athens had urged Turkey to stop illegal actions in the eastern Mediterranean, and that these activities were provocative and undermine peace and security in the region.

“Greece will not accept blackmail. It will defend its sovereign rights,” the Greek foreign ministry statement said.

 

Via Ekathimirini: The chief of the Hellenic National Defense General Staff (GEETHA), Konstantinos Floros, in military uniform seen leaving a meeting of the country’s top decision-making body on foreign affairs and defense matters, KYSEA, on Monday.

“When the Oruc Reis accompanied by ships of the Turkish Navy entered the Greek continental shelf, Greek warships sent messages at a frequency of about 15 minutes requesting the vessel’s removal from the area,”Ekathimirini reports.

“The messages went unanswered by the vessel which, however, moving at a low speed – similar to that appropriate for a search process – had prepared cables to lower to the seabed in order to proceed with research activities in the area,” the report continues.

“However, according to sources, exploratory activities were rendered impossible due to the noise caused by the many naval units sailing in the area. This is because exploration of this sort entails the transmission of data from the seabed and the noise of the ships made this transmission impossible,” writes Ekathimirini.

END

6.Global Issues

 

New Study Finds Potential Reason Why COVID-19 Occurs Less In Children

This study confirms what I have been telling you:  children are not affected by the virus due to lack of ACE 2 enzymes and receptors.  Nothing for the virus to cling onto.
(Liu/Epoch times)

Authored by Paula Liu via The Epoch Times,

The reason COVID-19 occurs less frequently in children could be due to the lack of a certain enzyme, researchers have found.

This new study detailed in the Journal of the American Medical Association (JAMA) on May 20, discovered that the angiotensin-converting enzyme 2 (ACE2), which grows in abundance as the individual grows, might be the reason that less than two percent of all individuals infected with SARS-CoV-2 – the virus that causes the COVID-19 disease – are children.

Researchers had suspected that COVID-19 susceptibility could be linked to the amount of gene expression of ACE2 seen in the nasal cavity, given that the enzyme acts as a receptor to allow the SARS-CoV-2 virus to pass into the body.

To investigate this potential link, researchers looked for a relationship between the two – the level of gene expression of ACE2 in the nose and COVID-19 infection – by taking nasal swabs from 305 people involved in an asthma study. Researchers hypothesized that the lower the levels of enzyme gene expression, the less likely it is a person will be infected by COVID-19.

Researchers said they chose to swab the nose because it is one of the first access points for SARS-CoV-2 to infect an individual.

Samples were taken from both asthmatic (49.8 percent) and non-asthmatic patients. The 305 people involved in the study were between four to 60 years of age.

Researchers said they found a clear association between ACE2 expression and age – opening up a possible explanation as to why most children, who tend to have lower levels of enzyme expression, are less susceptible to COVID-19.

“This might explain why children have been largely spared in the pandemic,” Bunyavanich said.

END
CORONAVIRUS UPDATE/GLOBE

Philippines, Brazil Interested In Russian COVID-19 Vaccine; Australia Suffers Deadliest Day Yet: Live Updates

Summary:

  • Brazil, Philippines review Russian vaccine
  • Australia suffers deadliest day yet; first day north of 400 new cases in 3
  • Duterte says he would personally take Russian vaccine
  • Tokyo confirms 222 new cases
  • South Korea tightens some restrictions amid mild uptick
  • German health minister “skeptical” of Russian vaccine

* * *

Russian authorities are engaging with the WHO about the possibility of “preapproving” Russia’s first COVID-19 vaccine, which has only been tested on a few hundreds people. However, while western governments and officials like Dr. Scott Gottlieb express skepticism, other countries suffering from untrammeled outbreaks are trying to find ways to engage.

Responding to these criticisms, Russia’s Health Minister Mikhail Murashko said allegations that Russia’s COVID-19 vaccine is unsafe are “groundless” and “driven by competition.”

Local press reports that Brazil’s Parana state is in talks to produce a Russia-approved COVID-19 vaccine, despite not having completed mass clinical trials. However, it’s unclear whether Brazil’s regulators would grant this approval.

During yesterday’s Moscow conference dedicated to introducing the adenovirus-vaccine to the world, the CEO of the Russian Direct Investment Fund explained that it had already received orders for a billion doses.

“Together with our foreign partners, we are ready to produce more than 500 million doses of the vaccine per year,” fund CEO Kirill Dmitriev explained. Everything produced in Russia will be used domestically, and doses produced abroad will be consumed abroad, he said.

Already on Wednesday, Philippine scientists were set to meet representatives of the Gameleya Research Institute, which spear-headed testing of the vaccine with Moscow’s state medical college. Philippine President Rodrigo Duterte has already congratulated Russia on its vaccine, and offered to be “injected in public” to allay fears surrounding safety.

Meanwhile, German Health Minister Jens Spahn said during a radio interview that he’s “very skeptical” about Russia’s COVID-19 vaccine, which is cleared for use but could be dangerous to use.”

“It’s not about being first, it’s about having an effective, tested and therefore safe vaccine,” said Spahn on DLF radio.

British newspaper the Telegraph warned in an editorial published with Wednesday’s edition that the world should be skeptical of Russia’s vaccine since it has only undergone limited testing for safety and efficacy. Despite the Gameleya Institute’s solid track record for producing vaccines, a legacy that Putin leaned on heavily during Tuesday’s press briefing, the editorial warned to be wary of “political” ploys.

The epidemiology it is using is similar to that at Oxford University where scientists are also said to be close to success. But the requisite protocols for determining whether the Russian vaccine is both safe and effective do not yet appear to have been carried out. The numbers involved in clinical trials are also low which makes efficacy hard to establish.

Furthermore, the fact that the Russians have called the vaccine Sputnik 5 after the Soviet satellite that stole a march on the Americans in the Sixties by sending animals into space and returning them to Earth indicates a political agenda.

Tokyo confirmed 222 new coronavirus infections, compared with 188 the previous day and 197 on Monday.

One day after confirming its first domestic cases in 102 days, New Zealand Prime Minister Jacinda Ardern said her cabinet would decide Friday on “next steps” re: any new COVID-19 restrictions.

South Korea, meanwhile, confirmed 54 new cases, up from 34 a day ago, pushing total infections in the country to 14,714 with 305 deaths. In response, the government strengthened social distancing rules in funeral homes and wedding halls to prevent the contagion’s spread.

Finally, one week after Melbourne extended a temporary lockdown in response to the outbreak in Victoria, Australia recorded its deadliest day of the pandemic on Wednesday, and the biggest daily rise in infections in three days, denting hopes that a second wave gripping the state of Victoria may be stabilizing. Victoria reported 21 deaths, two more than the previous deadliest day earlier this week. The country reported also reported 410 new cases in the past 24 hours, snapping a stretch of 3 days with fewer than 400 cases.

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 1.1774 UP .0038 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 /MOSTLY GREEN EXCEPT GERMAN DAX

 

 

USA/JAPAN YEN 106.89 UP 0.401 (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 1.3034   DOWN   0.0017  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3285 DOWN .0025 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 38 basis points, trading now ABOVE the important 1.08 level RISING to 1.1774 Last night Shanghai COMPOSITE CLOSED DOWN 21.02 POINTS OR 0.63% 

 

//Hang Sang CLOSED UP 353,34 POINTS OR 1.42%

/AUSTRALIA CLOSED DOWN 0,24%// EUROPEAN BOURSES MOSTLY GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES MOSTLY GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 353.34 POINTS OR 1.42%

 

 

/SHANGHAI CLOSED DOWN 21.02 POINTS OR 0.63%

 

Australia BOURSE CLOSED DOWN. 24% 

 

 

Nikkei (Japan) CLOSED UP 93.72  POINTS OR 0.41%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1941.10

silver:$26.00-

Early WEDNESDAY morning USA 10 year bond yield: 0.673% !!! UP 3 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 1.36 UP 3  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 93.52 DOWN 11 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.32% UP 3 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.04%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.31%//UP 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.96 UP 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 65 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.40% 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 1.1790  UP     .0056 or 56 basis points

USA/Japan: 106.95 UP .459 OR YEN DOWN 46  basis points/

Great Britain/USA 1.3042 DOWN .0008 POUND DOWN 8  BASIS POINTS)

Canadian dollar UP 62 basis points to 1.3250

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9372    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9342  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  7.2927 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +04%

 

Your closing 10 yr US bond yield UP 4 IN basis points from TUESDAY at 0.682 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.376 UP 5 in basis points on the day

Your closing USA dollar index, 93.38 DOWN 24  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 135.28  2.20%

German Dax :  CLOSED UP 111.74 POINTS OR 0.86%

 

Paris Cac CLOSED UP 45.32 POINTS 0.90%

Spain IBEX CLOSED UP 32.30 POINTS or 0.45%

Italian MIB: CLOSED UP 228.25 POINTS OR 1.13%

 

 

 

 

 

WTI Oil price; 42.43 12:00  PM  EST

Brent Oil: 45.23 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    73.59  THE CROSS HIGHER BY 0.50 RUBLES/DOLLAR (RUBLE LOWER BY 50 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.44 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM :  42.59//

 

 

BRENT :  45/33

USA 10 YR BOND YIELD: … 0.674…..up 3 basis points

 

 

 

USA 30 YR BOND YIELD: 1.364..up 3 basis points..

 

 

 

 

 

EURO/USA 1.1786 ( UP 51   BASIS POINTS)

USA/JAPANESE YEN:106.87 UP .380 (YEN DOWN 38 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 93.43 DOWN 20 cent(s)/

The British pound at 4 pm   Britain Pound/USA:  1.3023 DOWN 22  POINTS

 

the Turkish lira close: 7.3056

 

 

the Russian rouble 73.64   DOWN 0.55 Roubles against the uSA dollar.( DOWN 55 BASIS POINTS)

Canadian dollar:  1.3357 UP 54 BASIS pts

 

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

 

The Dow closed UP 289.78 POINTS OR 1.05%

 

NASDAQ closed UP 229.42 POINTS OR 2.13%

 


VOLATILITY INDEX:  22.18 CLOSED DOWN 1.85

LIBOR 3 MONTH DURATION: 0.253%//libor dropping like a stone

 

USA trading today in Graph Form

S&P Jumps Above Record High After $9 Trillion Global Liquidity Tsunami

$9 trillion in additional global liquidity (from $79 to almost $88 trillion since the March lows)…

Are we Drowning in liquidity?

Pushed the S&P above its prior record closing high (3386.15 from 2/19/20) but could not hold it…

Because it sure isn’t being driven by fun-durr-mentals…

Source: Bloomberg

The recent Momo/Value rotation is over…

Source: Bloomberg

Growth surged today, erasing the losses of the last three days…

Source: Bloomberg

And that was evident in today’s rip higher in Nasdaq and big laggard Small Caps…

Small Caps weakness today in the face of tech’s resurgence sent AAPL to a new record high relative to the entire Russell 2000..

Source: Bloomberg

TSLA shares soared a ridiculous 15% after announcing a 5-for-1 stock split… just fucking idiotic!!!

Europe’s Stoxx 600 surged today, back above its 200DMA…

Source: Bloomberg

Treasury yields rose for the 4th straight day (up around 2-3bps across the curve, but notice that it chopped around in a small range for most of the day)…

Source: Bloomberg

With 10Y Yields closing above their 50- and 100-DMA

Source: Bloomberg

As far as inflation expectations are concerned, the pandemic is apparently over. After today’s data, the 10-year breakeven spiked to 1.67%. That’s the highest it has been since mid-February, before the March Covid-19 collapse.

Source: Bloomberg

The dollar ended the day lower, sold from the European open…

Source: Bloomberg

Bitcoin bounced today…

Source: Bloomberg

Real yields led gold higher…

Source: Bloomberg

Silver rebounded from weakness in early Asia trading…

Silver’s chaos of the last couple of days sent SLV (the Silver ETF) to the steepest discount to NAV since Lehman (Oct 2008)…

Source: Bloomberg

Elsewhere in commodity-land, there was this chaos in NatGas ETNs

And Lumber Futures soared above $700, a new record high…

“We had to pay three times the price,” Ron Woods, the owner of Firehouse Builders said.

“The explanation they had for us was that COVID-19 shut down the plants that treat the wood, and that finally caught up.”

Source: Bloomberg

Finally, just another reminder…

Source: Bloomberg

Now that fear has been fully removed…As Bloomberg detailed, concern about the prospects for U.S. stocks has dropped to a level last seen almost 20 years ago, according to one option-based indicator. The gauge is a 50-day moving average of the ratio between company-specific put and calloptions, as compiled by Cboe Global Markets, and was cited Tuesday in a Twitter post by the SentimenTrader blogMonday’s reading was the lowest since October 2000, based on data compiled by Bloomberg.

Source: Bloomberg

“Even less extreme cases led to pullbacks/corrections” for stocks before, SentimenTrader wrote.

 end

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

This propelled gold as USA consumer prices surge

(zerohedge)

US Consumer Prices Surge As Food & Medical Costs Jump

Following yesterday’s hotter-than-expected producer price data (led by a surge in energy costs and day-trading), analysts expected CPI to accelerate modestly YoY in July, but it acelerated significantly (rising 1.6% YoY vs +1.1% expected).

On a month over month basis, the headline CPI rose 0.6% (doubling the expected 0.3% rise)…

Source: Bloomberg

While PPI remains in deflation, Consumer Prices are rising…

Source: Bloomberg

As Food costs continue to surge…

The food at home index increased 4.6 percent over the last 12 months. All six major grocery store food group indexes rose over that span. The index for beef increased 14.2 percent over the last 12 months, contributing to an 8.4-percent increase in the index for meats, poultry, fish, and eggs. The remaining groups rose more modestly, with increases ranging from 2.3 percent (fruits and vegetables) to 5.0 percent (nonalcoholic beverages). The index for food away from home rose 3.4 percent over the last year. The index for limited service meals increased 4.5 percent and the index for full service meals rose 2.9 percent over the last 12 months.

Additionally, medical care services also surged, but on the bright side (for some), rent/shelter inflation is slowing (rent inflation was 3.12% Y/Y, lowest since May 2014 and shelter inflation 2.33% Y/Y, lowest since Oct 2013)…

end

The 10 month deficit now totals: 2.8 trillion…and we should hit 3.0 trillion deficit for the year:

(zerohedge)

Budget Deficit Hits Record As U.S. Spends 100% More Than It Collects YTD

Those who have been following the record surge in US public debt (excluding the roughly $100 trillion in off-balance sheet obligations), which exploded by $3 trillion in the three months following the covid shutdowns and which hit an all time high $26.547 recently, will be all too aware that the US budget deficit this year – and every year after – will be staggering.

Sure enough, in the latest just released deficit report, the Treasury announced that in July the US burned through another $63BN, which however was a major “improvement” after the record $862 billion deficit recorded in June, as government receipts soared thanks to the July 15 tax date even as spending remained in the stratosphere.

Specifically according to the Treasury, in July, government outlays were $626.5 billion, an increase of 68.8% Y/Y from the $371 billion spent last July if 43% below the record June outlays of $1.1 trillion…

… while receipts jumped to the highest on record, surging 124.2% Y/Y to $563.5BN, up 132% from the $242.8BN in June receipts, which however was a one-time surge thanks to the July 15 tax filing deadline, and will promptly fade in the coming months.

The chart below shows the July 2020 breakdown between various receipts and outlays.

On a YTD basis, 10 months into the 2020 fiscal year, the US has spent $5.631 trillion and collected just $2.824 trillionwhich means that YTD outlays are a record 100% higher than receipts, which also includes the $8.3BN received last month and $63.4BN YTD in deposits of earnings by the Fed.

And since outlays equal receipts plus the deficit, it will come as no surprise to anyone that in the first 10 months of fiscal, the US budget deficit is a record $2.807 trillion (compared to “just” $866.8 billion in 2019), higher than at any other time in US history and unfortunately due to “helicopter money” it is unlikely that the exploding deficit will ever shrink again until the monetary system is overhauled… or collapses.

At some point the market will realize that this insanity is simply unsustainable. And, in fact, looking at the soaring price of gold recent very temporary downdraft notwithstanding, that realization may not take too long.

iii) Important USA Economic Stories

Due to the stoppage of money from the Fed, long lines are again reappearing as foodbanks

(zerohedge

Food Bank Strains Emerge As Economy Falls Off Fiscal Cliff 

The latest economic data suggest the US recovery stalled. One look at the Citi US econ surprise index, as of this week, shows the recovery ran out of steam last month. A fiscal cliff is already underway, set to enter the second week on Friday (Aug. 14) as tens of millions of Americans are unemployed and have yet to receive their stimulus checks.

The recovery, so far, is a massive economic sugar rush, entirely a function of the Trump administration on a reckless spending spree. One way the administration can artificially supercharge consumption is through issuing direct transfer payments to the working poor. The extra money has been used by households to pay down credit card bills, put food on the table, and pay housing expenses, while others used the free money to buy automobiles and FANG stocks.

President Trump signed an executive order over the weekend to fund another round of stimulus checks of approximately $400 per week, a reduction from the $600 federal aid seen in the first round from March to the end of July.

Massive federal spending has transformed America into a welfare state under the GOP watch. Tea Party politicians aren’t pleased with the Republican establishment’s wild spending spree.

With a fiscal cliff coming up on the second week, tens of millions of folks are unable to consume because they are insolvent and jobless, and their amount of consumption is dependent on the government. We’ve noted before, a quarter of all household income is derived from the government. And with no stimulus checks in the mail, that means Americans are returning to food banks:

Claudia Raymer, who manages a network of food-security groups in Ohio County, West Virginia, told Bloomberg when stimulus checks stopped arriving in late July, there was an immediate impact on households, resulting in rising food bank activity among the working poor.

The fiscal cliff will be more damaging in lower-income communities (than major metros), such as small towns in West Virginia, where folks were being paid handsomely by the federal government to sit at home. The problem is, once the payments end, consumption plunges, and the local communities return to a recessionary environment. With federal aid already running out for the stimulus program, the fiscal cliff has already been realized in West Virginia:

“We’ve definitely already seen food-security needs increase, just in a week, since the extra unemployment has ended,” Raymer said.

Treasury Secretary Steven Mnuchin said Monday the next round of stimulus checks could take a couple of weeks to distribute, which would suggest households might not receive their stimulus checks until the end of August.

Days before the stimulus program ended (late July), a sizeable food bank line appeared in Baltimore, Maryland.

END
This should show that Trump is gaining in popularity
(zerohedge)

Fox News Ratings Surge, Leading ‘Primetime Pack’ Despite Boycotts As CNN, MSNBC Lag

While the national polls proclaim Joe Biden as the clear frontrunner, just like they did for Hillary Clinton back in the summer of 2016, signs of growing dissatisfaction with Biden, who has spent the last five months cowering in his basement in Rehobeth, abound, especially as more Americans grow weary of the progressives insistence on economy-crushing social distancing measures, even in areas where case numbers have declined substantially. They continue to hysterically condemn President Trump for causing 160,000 deaths (the number of Americans who have succumbed to the virus so far) without saying one word about the lapses in Wuhan that opened Pandora’s Box in the first place.

As spread slows dramatically from New Jersey to Arizona to California, Americans consistently rate President Trump as “better” on the economy than Biden, though some carefully worded polls have pointed to a surge in public frustration with a federal response that has been characterized as slow and inept.

But through it all, as the mainstream press doubled-down on its progressive slant – openly referring to violent rioters as “peaceful protesters” and reporting on ultra-progressive concepts like “white supremacy” and “the patriarchy” as if these theoretical interpretations are indisputable realities – conservative outlets like Fox News have picked up steam.

And this week, even the New York Times is being forced to admit that – love it or hate it – Fox News is America’s most popular news organization in television. And as the NYT’s Michael Grynbaum reported, while Fox has struggled with several recent “scandals”, things at the cable news channel “have never been better,” as it maintained its ratings dominance in June and July. And not just for cable: for all of television.

In one sense, this has been a difficult period for Fox News: a star anchor fired after being accused of sexual harassment, a lawsuit depicting a misogynist workplace, a top writer exposed as a racist internet troll, advertiser boycotts and outrage after Tucker Carlson called protesters “criminal mobs” and questioned the patriotism of a senator who lost her legs in Iraq.

In another sense, business has never been better.

In June and July, Fox News was the highest-rated television channel in the prime-time hours of 8 to 11 p.m. Not just on cable. Not just among news networks. All of television. The average live Fox News viewership in those hours outstripped cable rivals like CNN, MSNBC and ESPN, as well as the broadcast networks ABC, CBS and NBC, according to Nielsen.

And nowhere is Fox more dominant than the prime-time slot, between 8 to 11, where Martha McCallum, Tucker Carlson and Sean Hannity rule the day. And even the return of sports didn’t shake Fox’s grip on an audience that has tuned in to its brand of news during a crisis that many complain has been politicized by both the left and the right.

Of course, Fox isn’t the only news channel that’s benefited; news consumption is up overall. But Fox has seen by far the biggest benefit as CNN, MSNBC, CBS, ABC, NBC etc all seem to speak with one voice that’s controlled by radical leftists masquerading as journalists.

Even the return of live sports did little to stop the momentum: The Fox News programs hosted by Mr. Carlson and Sean Hannity drew more live viewers than competing baseball and basketball games, including a Yankees-Nationals matchup on Opening Day.

Fox News’s big summer has been boosted by a rise in audience for news programming in general, an increase driven by interest in the pandemic, civil rights protests and the presidential election. ABC, CBS, and NBC, meanwhile, have more reruns on the summer schedule; the coronavirus has suspended most TV productions; and viewers are being lured away by streaming services and on-demand Hollywood movies.

But the Fox News ratings also demonstrate the size and resilience of America’s audience for pro-Trump opinion, and the loyalty of Fox News viewers who shrug off the controversies that routinely swirl around the network.

As Lachlan Murdoch bragged during last week’s earnings call, Fox’s advertising revenue is actually up over the past year. And though the NYT doesn’t come out and say clearly, the various “scandals” being pushed by leftists surrounding Trump’s handling of the virus simply don’t land with conservatives.

In other words, conservatives don’t blame Trump for the outbreak like liberals do.

“Massive news events that conservatives view through a highly partisan lens are driving the ratings, and none of the controversies really land with loyal Fox News viewers,” said Nicole Hemmer, a scholar at Columbia University and a historian of American conservative media.

Lachlan Murdoch, the executive chairman of Fox News’s parent company, bragged on an earnings call last week about the network’s “astronomical” ratings. He also said its ad revenue was up from a year ago — a reminder that Fox News, for all the flak it takes from critics, politicians and the advertisers that fled Mr. Carlson, remains an unrivaled profit engine for the Murdoch empire.

But perhaps the biggest reason why Fox has enjoyed such heightened popularity can be found in the NYT story itself, as America’s paper of record claims hydroxychloroquine has been “proven” to be “useless and even dangerous”. The medication has been in use treating malaria patients for more than half a century, and a study claiming it caused serious medical complications in COVID-19 patients was later corrected.

Complaints that Fox News prime-time hosts downplayed the coronavirus — and, in the case of Laura Ingraham, encouraged the use of hydroxychloroquine, a drug shown to be useless, and even dangerous, for Covid-19 patients — made little difference.

But the NYT doesn’t care, and why? Because that’s the narrative that the NYT, and Fox News’s main TV-based competitors, are working together to propagate.

end

This could hurt the Californian economy badly

(zerohedge)

In Historic Ultimatum: Uber Threatens To Shut Down California Business If Appeal Isn’t Approved

In one of the most daring – if seemingly inevitable – ultimatums issued by a corporation facing a damaging legal action, Uber CEO Dara Khosroshahi has just threatened for the first time publicly to shut down its California business if its appeal of a judge’s ruling in a case over a recent California law is rejected.

This is not good for shareholders, but the company claims it has no choice, since running the business with all drivers as full-time employees would lead to an impossible hike in fees, likely rending the business uncompetitive and unprofitable. California is the largest state in the country as well as Uber’s home state, and San Francisco and LA are two of Uber’s biggest markets worldwide.

As we reported yesterday, Uber has warned that it may need to hike prices up to 111% after a San Francisco judge ruled on Monday that the ride-sharing company, as well as its competitor Lyft, must classify its drivers as employees, a move which will disproportionately impact drivers from low-income backgrounds who don’t see driving as a full-time job, but rather a flexible way to earn some money on their own terms.

The ruling was the confluence of months of developments in California leading to what would become the most restrictive, anti-business labor laws in the country. The precedent, which is effectively an interpretation of a new law signed by Gov Newsom in September, a law that imposes new restrictions on classifying employees as “independent contractors,” could create problems throughout the “sharing economy” – and the tech industry more broadly – and not just in California.

The result is that companies like Uber will be required to provide various benefits to drivers, including overtime pay and health insurance.

The lawsuit was filed in May by California Attorney General Xavier Becerra, along with city attorneys from San Diego, Los Angeles and San Francisco. It argued that companies like Uber had been illegally classifying their drivers as independent contractors under the new law.

 

END

Next on the list for a bailout:  the hotel industry and of course at taxpayer’s expense

(Mish Shedlock/Mishtalk)

 

 

Hotel Bailouts At Taxpayer Expense Coming Right Up

Authored by Mike Shedlock via MishTalk,

Commercial Real Estate delinquencies have soared led by lodging.

Trepp research shows CMBS Delinquency Rate Surges for the Third Month; Nears  All-Time High.

That was for June.

July Delinquency Rates by Property Type

For July, Trepp reported CMBS Delinquency Rate Sees Biggest Drop in More Than Four Years but even with the decline, delinquencies are near record levels.

The notable change in the overall delinquency rate was the result of having more than $8 billion in loans “cured” – which means the loan was delinquent in June but reverted to “current” or grace/beyond grace period status in July.

As we reported in TreppWire in mid-July, some of the improvements came via loan modifications such as a maturity extension. Additional benefit came via reserve relief, whereby borrowers were permitted to use reserves to keep the loan current. (This was confirmed by special servicer or watchlist comments in July.)

The above paragraphs show that it is not clear how much of the alleged improvement is due to extend-and-pretend maneuvers vs. real improvement.

How Long Will Hotels Stay Empty?

That is the key issue.

Trepp discussed that question on June 18.

The report is now a bit out of date, but the observations are still worth a look.

At the beginning of this year, one of the biggest headlines in the hotel sector was a measly growth in revenue per available room (RevPAR) in 2019. According to STR, the hotel industry recorded a 0.9% increase in RevPAR in 2019 – the lowest annual increase since 2009. At the time, STR had predicted that in 2020, overall RevPAR will only grow by 0.5% as an increase in supply would outpace growth in demand.

Little did we know that any forecast – no matter how conservative – would not be applicable in the next few months. With the sudden COVID-19 outbreak spreading at a rapid pace, the hotel and tourism industries across the world faced a devastating halt.

STR’s US hotel performance data has shown week-over-week increases in occupancy recently. From above 60% in late-February, the occupancy dropped sharply to only a third at 22% in early-April. It has since inched up slowly every week, coming in at 41.7% for the week ending June 13th. Going forward, CBRE expects that the hotel demand will return to pre-crisis levels in the third quarter of 2022. In this context, roughly $16.9 billion and $14.7 billion worth of hotel CMBS loans are set to mature in 2020 and 2021 respectively according to Trepp data. Over half of the balance of these maturing loans is backed by full-service hotels.

Expect Some Hiccups

The answer in June was the third quarter in 2022.

Trepp comments “Given the expected timeline of recovery and a significantly lower forecasted demand, especially for high-end luxury hotels, the hotel industry is likely to face some hiccups in the next two years.”

What About Loan Quality?

A University of Austin report by John M. Griffin and Alex Priest show Property Income is Significantly Overstated.

The report is 74 pages long but shows considerable issues.

Many borrowers are now struggling because of coronavirus, though study finds income often fell short of underwritten amount before the pandemic

The WSJ discussed the setup in Commercial Properties’ Ability to Repay Mortgages Was Overstated.

Actual net income trails underwritten net income by 5% or more in 28% of the loans, according to the study of nearly 40,000 loans by two finance academics at the University of Texas at Austin.

The study shows risks in the $1.4 trillion market for commercial mortgage-backed securities, or CMBS, where loans on malls, apartment buildings, hotels and the like get packaged into bonds bought by investors, often with guarantees from the government. The findings suggest that loans sold to investors before the pandemic frequently featured overstated income and could have more trouble staying current in case of a downturn.

The findings corroborate a complaint received last year by the Securities and Exchange Commission stating that commercial mortgage loans frequently feature inflated financials. They also come at a sensitive time for the commercial-mortgage-backed securities industry, which has been seeking a lifeline since the spring, when the Federal Reserve left out swaths of the market from its $2.3 trillion economic-rescue package.

Income was overstated by more than 5% in more than 40% of loans originated by UBSStarwood Property Trust and Goldman Sachs Inc., the study said. Loans from these originators were among those most likely to be on a watch list, Mr. Griffin found.

“This is a direct function of the aggressive underwriting,” Mr. Griffin said. He disclosed in his paper that he owns a fraud-consulting firm, Integra FEC LLC, which could benefit if the government or investors acted against the bond issuers.

Share of Loans Identified with Inflated Values

Bailout Coming?

Of course! You knew that, didn’t you?

A bill in Congress would create a funding vehicle to help CMBS borrowers make their mortgage payments.

Please consider New Legislation Would Aid Cash-Strapped Commercial-Property Owners

The bill would set up a government-backed funding vehicle that businesses could tap to stay current on their mortgages. It is meant in particular to help those who borrowed in the $550 billion market for mortgages that are packaged into bonds and sold to Wall Street.

“The numbers are getting more dire, and the projections are getting more stern,” said Rep. Van Taylor (R., Texas), who is sponsoring the bill alongside Rep. Al Lawson (D., Fla.)

Get the Fed Involved?

Hey why not?

No stone can possibly be left unturned when it comes to bailouts at taxpayer expense.

Rep. Taylor led a bipartisan group of more than 100 lawmakers who last month signed a letter asking the Federal Reserve and the Treasury Department to come up with a solution for the CMBS issues.

Why?

To protect Goldman Sachs and the rest of the originators from fraud clawbacks due to inflated valuations as mentioned by John M. Griffin.

This has nothing at all to do with jobs as suggested by Rep. Van Taylor (R., Texas) and Rep. Al Lawson (D., Fla.).

Government-Backed?

No!

Whenever you see that term, it’s important to understand the true meaning.

Government-Backed = Taxpayer-Backed.

God’s Work

Taxpayers, not the government, take the risk.

We need to do this to protect “God’s Work” by Goldman Sachs and others.

 

 

iv) Swamp commentaries)

The noose is getting tighter and tighter around the Bidens’ necks

(zerohedge)

New Memos Reveal Aggressive US Lobbying Campaign By Hunter Biden’s Corrupt Ukrainian ‘Friends’

New memos obtained by Just the News and the Southern Foundation reveal that Ukrainian natural gas firm Burisma conducted an aggressive lobbying campaign directed at the US State Department throughout the 2016 US election, with the goal of pressuring the Obama administration to lean on Kiev to drop corruption allegations.

“They keep trying through every channel they can,” said one State Department official in the summer of 2016, referring to Burisma’s relentless lobbying – efforts which appear to include over $3 million collected by Hunter Biden’s firm from Burisma while his father supervised Obama’s Ukraine policy.

The new memos, released under the Freedom of Information Act (FOIA) reveal “far more contact between Burisma and the U.S. embassy in Kiev than was acknowledged by witnesses during President Trump’s impeachment proceedings,” according to the report.

We have been so frustrated in our attempt to get the documentation that we need before we can sit down and interview people, and as I understand it, the documents you just obtained in your FOIA request we haven’t received unbelievably,” Senate Homeland Security and Governmental Affairs Committee Chairman Ron Johnson (R-WI) said on the John Solomon Reports podcast.

“I cannot tell you how frustrated and ticked off, I’ll use that word, ticked off about where we are here. So yeah, I subpoenaed the FBI. And, you know, expect additional subpoenas to be forthcoming,” he added.

The memos show Burisma’s lobbying efforts were led by a Democratic firm called Blue Star Strategiesand aided by the nonprofit Atlantic Council foreign policy think tank, stretching from the State Department’s executive suite in Washington at the start of the election to the U.S. embassy in Kiev in the waning days of the Obama administration.

Burisma representatives repeatedly pressed for meetings, at times invoking Hunter Biden’s name, starting with a Blue Star conversation with then-Undersecretary of State Catherine Novelli in January 2016 before turning their attention to U.S. diplomats on the ground in Kiev, the memos show.

By summer 2016 — their mission to clear Burisma’s name still incomplete — Blue Star officials pigeonholed the new U.S. ambassador to Ukraine, Marie Yovanovitch, during her Senate confirmation hearing and then attended a private reception where she was honored, according to the memos. –Just the News

“We had already offered our regrets to Blue Star. But they keep trying through every channel they can,” State Department official Catherine Croft wrote July 29, 2016 to official George Kent, a key player at the US embassy in Kiev.

Blue Star, meanwhile, attended a private reception honoring former Kiev ambassador and Trump impeachment witness Marie Yovanovitch in August 2016 before she departed for Ukraine.

When their efforts to approach the State Department directly failed, Burisma tried a different approach – former US diplomat John Herbst who was then working at the Atlantic Council, had dinner with Kent to discuss Burisma and other matters.

Kent would brief Yovanovich on Herbst’s attempts.

Meanwhile, during the same month, American attorney John Buretta wrote Yovanovitch a lengthy letter suggesting that accusations against Burisma were unwarranted, and requesting that the Untied States reconsider their views on the company.

Then, on January 13, 2017 – days before Trump took office, Kent was notified by Herbst that the Atlantic Council had accepted a large donation from Burisma, which was celebrating their successful pressure campaign to shut down the corruption probes.

“George, I wanted you to know before it becomes public that the Atlantic Council decided to accept support for its program from Burisma,” wrote Herbst. “We looked at the matter closely and waited for over a month. Information provided to us by the Cravath lawyer for Burisma in the London case was an important factor, although some uneasiness remains.”

Johnson said even before the release of the new memos this week, his committee already had plenty of evidence to show that Joe Biden engaged in a prohibited conflict of interest as vice president by continuing to oversee U.S.-Ukraine policy while his son worked for and was enriched by Burisma.

That appearance issue, Johnson said, was made worse when Joe Biden pressured Ukraine in March 2016 to fire the prosecutor overseeing the Burisma probe. Biden has said he sought the firing because he thought the prosecutor was ineffective and not because of the Burisma probe.

Johnson said media reports suggesting there was no wrongdoing by the Bidens in Ukraine are simply wrong. –Just the News

“The public has to be aware of this what I call glaring conflict of interest. The media is covering for Joe Biden. They’re part and parcel of the Democratic Party,” said Johnson.

END

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

Russia registers world’s first coronavirus vaccine, Putin announces

Russian President Vladimir Putin said that Moscow’s Gamaleya Institute has registered the world’s first COVID-19 vaccine for use. He said his daughter is among those already inoculated.

https://www.dw.com/en/russia-registers-worlds-first-coronavirus-vaccine-putin-announces/a-54524385

CNBC’s @Lebeaucarnews: Boeing July orders were Negative 52 planes….a sixth straight month with negative orders.  In 2020, Boeing’s commercial order book has dropped by 836 planes.   July cancellations were all 737 MAX models

Gold suffered its largest decline (5.6%) since 2013.  Silver plunged the most (14.5%) since the 2008 Crisis.  Some pundits were perplexed that precious metals would crash on worse (+0.6% m/m) than expected PPI (0.3%).  Core PPI was worse: 0.5% m/m vs. 0.1% expected.  This is the biggest jump (from -0.3 to +0.5) in the Final Demand metric (back to 2010).  Saner angels know the Fed balance sheet is flat since May 6.  The ugly PPI implies the Fed might remain on hold for the foreseeable future

.

Governors Say Trump’s Order on Pandemic Relief Could Wreck State Budgets

Mr. Trump ordered the $400 benefit — but said it was contingent on states to come up with $100 of that on their own… [But they have funds for illegal immigrants and extravagant pensions?  It’s an incentive to NOT shutdown states and dump idle workers on the federal dole.]

https://www.nytimes.com/2020/08/10/us/politics/virus-stimulus-congress-trump.html

Pelosi favored payroll tax cut under Obama as a ‘victory for all Americans,’ opposes it under Trump – The payroll tax was cut in 2010, under Obama’s leadership, and extended in 2011 and 2012… https://justthenews.com/government/congress/pelosi-favored-payroll-tax-cut-under-obama-victory-all-americans-opposes-it

U.S. will have a delayed effect of ‘seeing the normal effects of recession,’ says JPMorgan’s Dimon

Dimon acknowledges that the pandemic and the government and central-bank response to it have created a disconnect between the real economy and stock market – “We can’t be doing this a year from now and think that it won’t cause devastation in the economy,”…

https://www.marketwatch.com/story/u-s-will-have-a-delayed-effect-of-seeing-the-normal-effects-of-recession-says-jpmorgans-dimon-11597160306

NYT: Retail Chains Abandon Manhattan: ‘It’s Unsustainable’

“There’s no reason to do business in New York… I can do the same volume in Florida in the same square feet as I would have in New York, with my expenses being much less… the expense of being in this city has overtaken the marketing group that says you have to be there.”… In Manhattan’s major retail corridors, from SoHo to Fifth Avenue to Madison Avenue, once packed sidewalks are now nearly empty. A fraction of the usual army of office workers goes into work every day, and many wealthy residents have left the city for second homes…“In New York City, there is next to no lunch business,” he said. “No one’s coming in from Connecticut. No one’s coming in from New Jersey.”  And, there are no tourists wandering the streets, he added…  https://www.nytimes.com/2020/08/11/nyregion/nyc-economy-chain-stores.html

‘This will bankrupt the city’: Nearly 20% of New York’s hotels are being used to house 13,000 homeless people for more than $2million-a-night

https://www.dailymail.co.uk/news/article-8616661/Nearly-20-New-Yorks-hotels-used-house-13-000-homeless-people.html

@paulsperry_: Health officials have now determined the COVID-19 death rate for those under 70 years old is just 0.04% — less than the common flu

To the delight of Republicans, Biden selected Kamala Harris as his VP [much more below] and Democrats listed their speakers at next week’s convention.  AOC and Cuomo are on the list. Because the MSM worships Cuomo, Dems think that Flyover America will love the guy.  However, Cuomo’s nursing home scandal is worsening – and probably by a lot!

New York’s true nursing home death toll cloaked in secret

New York’s coronavirus death toll in nursing homes, already among the highest in the nation, could actually be a significant undercount. Unlike every other state with major outbreaks, New York only counts residents who died on nursing home property and not those who were transported to hospitals and died there… That statistic could add thousands to the state’s official care home death toll of just over 6,600. But so far the administration of Democratic Gov. Andrew Cuomo has refused to divulge the number, leading to speculation the state is manipulating the figures to make it appear it is doing better than other states and to make a tragic situation less dire…

https://apnews.com/212ccd87924b6906053703a00514647f

N.Y. Health Commissioner Refuses to Divulge Estimate of Uncounted COVID Nursing Home Deaths – If a resident of a nursing home dies of coronavirus while in the hospital, New York does not label it a “nursing home” death…https://news.yahoo.com/n-y-health-commissioner-refuses-144538792.html

It’s highly probable that Cuomo will NOT speak that the Democrat Convention.

Trump unveils new coronavirus task-force doctor to rival Dr. Fauci: President introduces ‘very famous man’ Dr. Scott Atlas who warns against ‘hysteria’ of closing schools’ – Said he would sign an executive order as ‘just a double safety net’ even though Obamacare law already covers preexisting conditions    https://www.dailymail.co.uk/news/article-8613707/Donald-Trump-unveils-new-medical-adviser-wants-schools-opened.html

Joe Biden’s campaign abandons multimillion-dollar Facebook digital ad push – because the ads were unsuccessful…  https://nypost.com/2020/08/11/biden-campaign-abandons-multi-million-dollar-digital-ad-push/

@ABC: Former Pres. Barack Obama on Joe Biden’s selection of Sen. Kamala Harris as his running mate: “Joe Biden nailed this decision.”   [Harris captured 1 delegate for the Dem nomination!]

At the beginning of the election process, Sen. Kamala Harris was Obama and the MSM’s favorite candidate. Rep. Tulsi Gabbard destroyed Harris and her candidacy in an early debate.  Gabbard slammed Harris for hyping her blackness when she is half Indian and half Jamaican – and her grandfather owned slaves.  Gabbard then chastised her for incarcerating an inordinate number of blacks for minor offenses.  Harris went from the top in polling to out of the race.  Recently, people have mocked Harris on social media over an apparent face lift.  Her selection as VP suggests the Obama is running Team Biden – and the hedge fund consultant that claims Obama is playing for Michelle in 2024 is correct.  PS – Harris brings NO electoral votes to Biden (CA already in the bag) or any help with Flyover America.

At the first debate, Harris excoriated Biden, calling him a racist for siding with segregationists, opposing bussing and sponsoring a crime bill. Clip: https://twitter.com/MAGA2ARIGHTS/status/1293285568206589958

Clip of Rep. Tulsa Gabbard slamming Harris for incarcerating marijuana smokers and bragging about it as well as keeping DNA from the courts.  https://twitter.com/bennyjohnson/status/1293284370317541376

Gabbard also rebuked Harris for hyping her blackness even though Kamala is Indian/Jamaican and her grandfather owned slaves in Jamaica.  After this attack, Harris went from the top of polls to the bottom.

@lawyer4laws: Kamala Harris on protecting Kids ..”Championed state legislation under which parents whose children were found to be habitually truant in elementary school could be prosecuted… Despite concerns that it would disproportionately affect low-income people of color.” ~NY Times

@no_silenced: Kamala Harris didn’t even pull 5% of the Black Vote in the Primaries…..They hate her.  Biden just lost this election

@thebradfordfile: Kamala Harris is the only politician in America more unlikable than Hillary Clinton.

@ProfMJCleveland: My quick takes on Harris.  Totally shocked by pick.  Only benefit I see is she’s a pit-bull.  But she’s almost as unlikeable as Hillary.  She doesn’t bring with her the Midwest and her unlikeability will turn off soccer moms and many blue color dems… Harris also has your climbing to the top on her knees as an issue AND more significantly her history as a prosecutor that harmed black lives.  And her liberal bona fides are strong enough to mute the perceived moderateness of Biden.

Ex-SF Mayor and ex-California Assembly Speaker Willie Brown fostered Kamala’s career.  A few days ago, he advised her to reject the VP selection.  Now, their past relationship will be re-scrutinized and mocked. Kamala’s path to glory is unlikely to sit well with suburban women.

Former S.F. Mayor Willie Brown writes about dating Kamala Harris, appointing her to posts

https://www.usatoday.com/story/news/politics/onpolitics/2019/01/27/willie-brown-kamala-harris-san-francisco-chronicle-letter/2695143002/

Harris: ‘I believe’ Biden accusers   04/03/19

Sen. Kamala Harris (D-Calif.) said Tuesday…”I believe them and I respect them being able to tell their story and having the courage to do it,” Harris said at a presidential campaign event in Nevada… https://thehill.com/homenews/campaign/437107-harris-i-believe-biden-accusers

Biden’s Staff Gave Him a Script So He’d Know Why He Was Calling Kamala Harris

The pictures fuel doubts over Biden’s cognitive capabilities…

https://thefederalist.com/2020/08/11/bidens-staff-gave-him-a-script-so-hed-know-why-he-was-calling-kamala-harris/

[Pics at this link:] https://twitter.com/bennyjohnson/status/1293299664930975745

Trump says ‘most horrible’ Kamala Harris ‘was my No. 1 pick’ for Biden running mate

Trump said he was “surprised” by Biden’s decision to pick Harris… because she has many political negatives…  [Most pundits thought it would be Rice.  Those that knew BHO was making the pick…]

https://justthenews.com/government/white-house/trump-says-kamala-harris-was-my-number-one-pick-after-biden-announced-her

Trump’s campaign calls Kamala Harris ‘phony’ in attack video showing her skewering Joe Biden in primary debate over bussing and segregationists – She accused him of ‘working with segregationists’ and told him: ‘had those segregationists their way, I would not be a member of the United States Senate,’…she accused Biden of opposing bussing…The Trump video accuses Biden of ‘handing the reins to Kamala while they jointly embrace the radical left,’ a sign Trump plans to hammer both of his rivalshttps://www.dailymail.co.uk/news/article-8617239/Donald-Trumps-campaign-calls-Kamala-Harris-phony-attack-video.html

Trump calls Harris “nasty” and “disrespectful” to Biden

The ad the president tweeted out ahead of his briefing said: “Voters rejected Harris. They smartly spotted a phony. But not Joe Biden. He’s not that smart. Biden calls himself a transition candidate. He is handing over the reins to Kamala while they jointly embrace the radical left. Slow Joe and Phony Kamala. Perfect together. Wrong for America.”…

https://www.cbsnews.com/news/trump-kamala-harris-nasty-biden-vice-president/?ftag=CNM-00-10aab7e&linkId=96827566

Reportedly, the Team Trump attack ad on Harris/Biden got over 3 million viewers in its first hour.  For the first time that we can recall, a major focus of attacks ads will a VP candidate due to the public’s perception that Biden won’t finish his term.

Obama’s political creator, David Axelrod: He reportedly clicked well with Gov. Gretchen Whitmer of Michigan, but she would not have fulfilled the desire of those who prioritized a candidate of color…

https://www.cnn.com/2020/08/11/opinions/why-kamala-harris-won-vp-content-axelrod/index.html

‘He better pick a Black woman’: Biden faces Whitmer backlash – African American activists and operatives say Biden would pay a steep price if he chooses a white woman for the ticket.

https://www.politico.com/news/2020/08/10/biden-veep-selection-black-woman-393147

Democratic Party sets rules for criticizing Biden’s VP pick Kamala Harris [You can’t make this up!]

Hillary Clinton and Valerie Jarrett operatives sign a missive that warns what media message must be

An actual memo went out from an ad hoc group of Democratic operatives (pretending to be advocates for women) to media organizations with orders on how to proceed with their coverage

   “…We intend to collectively and individually monitor coverage and we will call out those we believe take our country backwards with sexist and/or racist coverage. As we enter another historic moment, we will be watching you.”…  https://www.washingtontimes.com/news/2020/aug/11/democratic-party-sets-rules-for-criticizing-bidens/

DOJ Lawyers Hint At Explosive… Evidence That Led Barr to Drop Charges against Michael Flynn The Justice Department attorney Jeffery Wall… told the judges that Barr’s decision to drop the charges against Flynn, were in part, due to information that the DOJ hasn’t yet shared with the public… “the Attorney General sees this in the context of nonpublic information from other investigations.”…

https://saraacarter.com/doj-lawyers-reveal-explosive-news-of-possible-evidence-that-led-barr-to-drop-charges-against-michael-flynn/

Trump claims some people say ‘men are insulted’ by Biden picking woman VP https://trib.al/J9ijqQe

[DJT would NOT make this remark unless he consulted with trusted pollsters.]

Trump said he was ‘reluctant’ to trust US intelligence due to Comey, Brennan https://trib.al/ybfCFeg

Black Lives Matter holds rally in Chicago to support those arrested after looting, unrest

“That is reparations,” a BLM organizer said. “Anything they wanted to take, they can take it because these businesses have insurance” – Black Lives Matter Chicago issued a statement obtained by the Chicago Sun-Times that read, “The mayor clearly has not learned anything since May, and she would be wise to understand that the people will keep rising up until the [Chicago Police Department] is abolished and our Black communities are fully invested in,” the group said in a statement…

https://www.foxnews.com/us/black-lives-matter-holds-rally-chicago-support-arrested-looting-unrest

Seattle police chief retires after vote to trim up to 100 cops, $3 million from the force

The city’s first Black police chief [and female]… became interim chief in 2018 and then was hired full-time, in part due to pressure from Black leaders in the city…

https://www.msn.com/en-us/news/us/seattle-police-chief-retires-after-vote-to-trim-up-to-100-cops-3-million-from-the-force/ar-BB17OV2C?li=BBorjTa

AP: Big Ten Conference announces it won’t play football this fall, will explore playing in the spring

[University profs/deans overwhelmingly detest football.  Ex-football, they’ll have worse fiscal woes.]

@CurtisHouck: Sorry, B1G athletes who want to play, but most administrators and national sports journalists don’t actually care about your feelings or opinions. Either join the NFL or find another school to transfer to. No B1G until 2022, 2023, or beyond if there’s no vaccine.

The lib university presidents in the Big Ten might have just killed the conference and the golden goose (its TV money for football).

@247Sports: Penn State will ‘explore all options’ to play this season, James Franklin sayshttps://247sports.com/Article/Penn-S

Bucknuts reporter @jbook37: Penn State is now on board with leaving the Big Ten if they have to.  So far 3 of the 4 rumored schools in Ohio State, Penn State, Nebraska who supposedly was throwing out feelers to the Big 12 have confirmed in the last 24 hours they are indeed open to playing elsewhere.

Well that is all for today

END

Let us close out tonight with this offering:

A must view:  Craig Hemke being interviewed by Greg Hunter

Fed Will Not Fight Coming Inflation – Craig Hemke

By Greg Hunter On August 12, 2020

Financial writer and precious metals expert Craig Hemke predicted in July that silver was about to start a dramatic move higher.  He was right.  After Tuesday’s smash-down of the metal, Hemke says precious metals investors have nothing to worry about.  Hemke explains, “The important thing to understand is the fundamental stuff that has driven gold and silver higher, especially in the last couple of weeks, none of that has changed. . . . You get these speculative excesses.   They traded on the COMEX futures exchange (Tuesday 8/11/20) 1.5 billion ounces of pretend fake digital silver.  In a normal non-Covid world, the entire globe mines about 850 million ounces of silver.  So, in one day’s trading of the phony baloney plastic silver, they traded two times global mine supply. . . . The picture has not changed fundamentally.  They can trade two times global mine supply and you get these speculative excesses that get wrung out, but that just sets you up for the next move higher.”

Hemke also points out that the Fed is signaling new policy changes to prop up the failing economy.  In simple terms, the Fed is going to allow much more inflation than 2%, and on top of that, the Fed is not going to raise interest rates to fight it.  Hemke says, “We are going to have a very bumpy economic growth ride with what has already taken place with Covid and what is going to come.  The Fed has already promised it is going to maintain 0% interest rates on the short end (of the curve) until 2022. . . . The Fed is going to let inflation go past 2% to 3% or 4%.  They are probably going to make this change at the September Fed meeting. . . . They are going to let inflation overshoot 2%. . . . The reason why they do that is you can pay off all this accumulated debt with the less valuable money of tomorrow.  This is how it has always worked. . . .These two policy changes go hand in hand.  They are going to let inflation run, and they are locking in nominal rates and institutionalizing steeper and steeper negative real rates.”

Hemke says we have not seen this sort of “perfect storm” in the precious metals market since the 1970’s when gold increased nine fold until it topped out in 1980 at nearly $900 per ounce.  If that happens again, that would put the gold price at nearly $18,000 per ounce.  Hemke says, “This whole system is hyper-leveraged by the central banks.  So, we have no idea how many owners there are for each ounce of gold.  The amount of gold with clear title, we have no idea.  What happens when everybody shows up for their gold?  If I don’t know how many ounces of gold there are, how am I supposed to know what the right price is?”

What Hemke can predicted with certainty is “more inflation” and that the Fed will not raise rates to fight inflation until at least after 2022.

I asked Hemke for his year-end predictions for the price of gold, and he said “$2,300 to $2,400 per ounce.”

For silver, Hemke predicts, “Silver will be $34 to $36 per ounce.”  What the premiums will be on top of that is another story.

Join Greg Hunter of USAWatchdog.com as he goes One-on- One with Craig Hemke, founder of TFMetalsReport.com.

-END-

I will see you THURSDAY night.

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