AUGUST 26//MAJOR RAID ON GOLD AND SILVER FOILED AS HUGE AMOUNT OF SHORT PAPER ABSORBED: GOLD UP $26.70 TO $1944.90//SILVER UP $1.04 TO $27.28//GOLD TONNAGE INCREASES AT THE COMEX TO 152.3 TONNES//RONAN MANLY: A MUST READ…PHYSICAL BARS AT COMEX NOT ENOUGH TO SETTLE UPON OUR LONGS//TED BUTLER..A MUST READ///CRAIG HEMKE: A MUST READ../CORONAVIRUS UPDATE WEDNESDAY..THE GLOBE//CHINA VS USA 3 MAJOR STORIES/////IMPORTANT USA DATA AND STORIES//MORE SWAMP STORIES FOR YOU TONIGHT////

GOLD:$1944.90  UP $26.70   The quote is London spot price

 

 

 

 

 

Silver:$27.28 UP $1.04   London spot price ( cash market)

 

Today marks the 9TH day out of the last 12 days that a raid has been orchestrated by the bankers.. However this time, major players were waiting in the weeds  ready for their huge short

paper offering which was all gobbled up.  The noose is around bankers’ necks.  The bankers will regroup and we await Friday:

Friday is options expiry OTC /London LBMA 10 am.. not Monday, as the 31st is a UK banking holiday.  First day notice is still the 31st of August.

 

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Closing access prices:  London spot

i)Gold : $1954.50  LONDON SPOT  4:30 pm

 

ii)SILVER:  $27.46//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

AUGUST GOLD:   $1912.00  CLOSE  1::30 PM  SPREAD SPOT/FUTURE AUG  (BACKWARD  $18.80//) SCARCITY//ERROR?

OCT GOLD:  $1943.50  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE OCT /:   : $1.40//BACKWARD/SCARCITY

 

 

DEC. GOLD  $1952.60   CLOSE 1.30 PM      SPREAD SPOT/FUTURE DEC   $7.70/ CONTANGO   ($4.30 BELOW NORMAL CONTANGO)

 

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $27.35…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :    ( 11 cent contango//8 CENTS ABOVE NORMAL contango)

SILVER DECEMBER  CLOSE:     $27.77  1:30  PM SPREAD SPOT/FUTURE DEC.       : 29  CENTS PER OZ  ( 17 CENTS ABOVE NORMAL CONTANGO)

 

XXXXXXXXXXXXXXXXXXXXXXXXX

 

COMEX DATA

 

 

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

receiving today: 1/66

issued 0

EXCHANGE: COMEX
CONTRACT: AUGUST 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,911.800000000 USD
INTENT DATE: 08/25/2020 DELIVERY DATE: 08/27/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 15 52
657 H MORGAN STANLEY 49
661 C JP MORGAN 1
685 C RJ OBRIEN 1
686 C INTL FCSTONE 5
690 C ABN AMRO 4
905 C ADM 2 3
____________________________________________________________________________________________

TOTAL: 66 66
MONTH TO DATE: 48,851

NUMBER OF NOTICES FILED TODAY FOR  AUGUST CONTRACT:66 NOTICE(S) FOR 6600 OZ  (0.2052 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  48,861 NOTICES FOR 4,886100 OZ + 2400 oz enhanced standing  =  48875 notices  or 4887500 oz  (152.021 tonnes

 

 

SILVER

 

 

3 NOTICE(S) FILED TODAY FOR 15,000  OZ/

total number of notices filed so far this month: 1282 for 6.410 MILLION oz

 

BITCOIN MORNING QUOTE  $11,388  UP 67

 

BITCOIN AFTERNOON QUOTE.: $11,463 UP 144

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $26.70 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 WITHDRAWAL OF 3.53 TONNES FROM THE GLD

 

 

 

 

GLD: 1,248.85 TONNES OF GOLD//

 

 

WITH SILVER UP $1.04 CENTS TODAY: AND WITH NO SILVER AROUND:

 

A HUGE CHANGES IN INVENTORY AT THE SLV///  A WITHDRAWAL OF 3.53 MILLION OZ FROM THE SLV

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 566.419  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

 

 

 

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A CONSIDERABLE SIZED 1090 CONTRACTS FROM 188,721 DOWN TO 187,631, AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE TINY LOSS IN OI OCCURRED DESPITE OUR STRONG 21 CENT FALL IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS PRIMARILY DUE TO A SMALLER  SILVER SPREADER LIQUIDATION THAN YESTERDAY, TINY  BANKER SHORT COVERING (IF ANY) COUPLED AGAINST A GOOD EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, WITH A GOOD INCREASE IN SILVER OZ. STANDING AT THE COMEX FOR AUGUST.  WE HAD A CONSIDERABLE NET GAIN IN OUR TWO EXCHANGES OF 2 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 1082 DEC:  0 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1082 CONTRACTS. WITH THE TRANSFER OF 1082 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 1082 EFP CONTRACTS TRANSLATES INTO 5.410 MILLION OZ  ACCOMPANYING:

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

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

86.470 MILLION OZ FINAL STANDING IN JULY.

6.475 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 21 CENTS ).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE BASICALLY UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS AS WE HAD A STRONG GAIN ON OUR TWO EXCHANGES.  WE ALSO WITNESSED NO APPRECIABLE SILVER SPREADER LIQUIDATION. THE BANKERS  ENGAGED IN MINOR BANKER SHORT COVERING (IF ANY) ON THE TWO EXCHANGES, THEY COULD NOT COVER MUCH… THUS: THE CONSIDERABLE SIZED GAIN AT THE COMEX WAS ACCOMPANIED BY : i)NEGLIGIBLE  SPREADER LIQUIDATION ii)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A GOOD INCREASE IN SILVER OZ STANDING  FOR AUGUST,  MINOR BANKER SHORT COVERING (IF ANY)  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A CONSIDERABLE  NET GAIN OF 2 CONTRACTS OR 0.01 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 AND ALL LAST WEEK

 

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:

18,798 CONTRACTS (FOR 19 TRADING DAY(S) TOTAL 18,798 CONTRACTS) OR 93.990 MILLION OZ: (AVERAGE PER DAY: 989 CONTRACTS OR 4.9468 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST: 93.990 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 13.42% 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:          1,364.27 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                         93.99  MILLION OZ (EXCHANGE FOR PHYSICALS STARTING TO DECREASE AGAIN)

 

 

 

RESULT: WE HAD A SMALL SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 286, DESPITE OUR STRONG  21 CENT LOSS IN SILVER PRICING AT THE COMEX ///TUESDAY AS ONE A NET BASIS, NOBODY LEFT THE SILVER ARENA..…THE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 1082 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A CONSIDERABLE SIZED 796 OI CONTRACTS ON THE TWO EXCHANGES (WITH OUR  21 CENT FALL IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1082 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A CONSIDERABLE SIZED DECREASE OF 1090 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 21 CENT FALL IN PRICE OF SILVER/AND A CLOSING PRICE OF $26.24 // 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. 0.9460 BILLION OZ TO BE EXACT or 135% of annual global silver production (ex Russia & ex China).

FOR THE NEW AUGUST  DELIVERY MONTH/ THEY FILED AT THE COMEX:NOTICE(S) FOR 15,000 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 6.475 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 FELL BY A SMALL  SIZED 2367 CONTRACTS TO 549,282 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 SMALL LOSS IN COMEX OI OCCURRED DESPITE OUR STRONG FALL IN PRICE  OF $14.60 /// COMEX GOLD TRADING// TUESDAY//WE HAD MINIMAL BANKER SHORT COVERING(IF ANY), A GOOD SIZED INCREASE IN GOLD TONNAGE STANDING AT THE COMEX FOR AUGUST, ALONG WITH MINIMAL LONG LIQUIDATION ACCOMPANYING A SMALL EXCHANGE FOR  PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR  LOSS IN PRICE OF $14.60. 

 

 

WE HAD A VOLUME OF 0    4 -GC CONTRACTS//OPEN INTEREST  134//  (2400 OZ WAS DELIVERED ON FRIDAY FROM THE ENHANCED GOLD INVENTORY)…

 

WE LOST A SMALL SIZED 186 CONTRACTS  (0.5785 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 2181 CONTRACTS:

CONTRACT .; AUG 0 AND OCT: 0 DEC: 2181; JUNE: 0  ALL OTHER MONTHS ZERO//TOTAL: 2181.  The NEW COMEX OI for the gold complex rests at 549,282. 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 TINY SIZED DECREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 186 CONTRACTS: 2367 CONTRACTS DECREASED AT THE COMEX AND 2181 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS OF 186 CONTRACTS OR 0.5785 TONNES. TUESDAY, WE HAD A  LOSS OF $14.60 IN GOLD TRADING……

AND WITH THAT LOSS IN  PRICE, WE HAD A TINY SIZED LOSS IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 0.5785 TONNES!!!!!! THE BANKERS WERE SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT FELL $14.60).  WE MAY HAVE HAD A  MINOR BANKER SHORT COVERING (IF ANY) OPERATION BUT JUDGING FROM THE SLIGHT LOSS IN TOTAL OI DESPITE THE HEAVY LOSS IN PRICE AND THE SMALL ISSUANCE IN EXCHANGES FOR PHYSICAL THEY COULD NOT FLEECE ON A NET BASIS ANY OF OUR SPECULATOR LONGS.

 

 

 

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (2181) ACCOMPANYING THE  SMALL SIZED LOSS IN COMEX OI  (2367 OI): TOTAL LOSS IN THE TWO EXCHANGES:  186 CONTRACTS. WE NO DOUBT HAD 1 )TINY BANKER SHORT COVERING (IF ANY), 2.)A SMALL INCREASE IN GOLD TONNAGE  STANDING AT THE GOLD COMEX FOR THE FRONT AUGUST MONTH,  3) ZERO NET LONG LIQUIDATION; 4) SMALL COMEX OI LOSS AND 5) SMALL ISSUANCE OF EXCHANGE FOR PHYSICAL  AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG  LOSS IN GOLD PRICE TRADING//TUESDAY//$14.60.

 

 

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 : 38,739, CONTRACTS OR 3,873,900, oz OR 120.49 TONNES (19 TRADING DAY(S) AND THUS AVERAGING: 2038 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 19 TRADING DAY(S) IN  TONNES: 120.49 TONNES

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

THUS EFP TRANSFERS REPRESENTS 120.49/3550 x 100% TONNES =3.39% 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   3,380.55  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE                1,098.93  TONNES  (*AND A NEW ALL TIME RECORD ISSUANCE//22 DAYS)

APRIL TOTAL EFP. ISSUANCE:               243.45  TONNES  (EFP ISSUANCE BECOMING A LOT LESS)

MAY TOTAL EFP ISSUANCE:                     248.68 TONNES (EFP ISSUANCE STILL LOW// PREMIUM COST TO THE BANKERS IS HUGE..SO ISSUANCE IS LESS)

JUNE TOTAL EFP ISSUANCE:                     192.06 TONNES

JULY TOTAL EFP ISSUANCE;                       313.09 TONNES ..(EXCHANGE FOR PHYSICALS REVERSE COURSE AND ARE NOW INCREASING!)

AUGUST TOTAL EFP ISSUANCE;                 120.49 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 CONSIDERABLE SIZED 1090 CONTRACTS FROM 188,721 DOWN TO 187,631 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 CONSIDERABLE SIZED LOSS IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)NEGLIGIBLE  SPREADER LIQUIDATION 2)   MINIMAL BANKER SHORT COVERING (IF ANY) , 2) A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A GOOD INCREASE IN SILVER OZ  STANDING AT THE SILVER COMEX FOR AUGUST,  AND  4) MINOR WEAK LONG LIQUIDATION, BUT ON NET, ZERO LONG LIQUIDATION. 

 

 

 

EFP ISSUANCE 1082 CONTRACTS

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

 SEPT: 1082 AND DEC. 0 AND  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1092 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 1090  CONTRACTS TO THE 1092 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A TINY SIZED GAIN OF 2 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 0.01 MILLION  OZ, OCCURRED DESPITE OUR 21 CENT LOSS IN PRICE///

 

 

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

(report Harvey)

 

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 43.84 POINTS OR 1.30%  //Hang Sang CLOSED UP 5.57 POINTS OR 0.02%   /The Nikkei closed UP 0.75 POINTS OR 0.01%//Australia’s all ordinaires CLOSED DOWN .49%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8909 /Oil UP TO 43.16 dollars per barrel for WTI and 45.74 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 6.8909 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8847 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING 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  FELL BY A SMALL SIZED 2367 CONTRACTS TO 549,282 MOVING FURTHER FROM OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS COMEX DECREASE OCCURRED WITH OUR STRONG LOSS OF $14.60 IN GOLD PRICING /TUESDAY’S COMEX TRADING/). WE ALSO HAD A SMALL EFP ISSUANCE (2181 CONTRACTS),.  THUS,  WE HAD AGAIN 1) ATTEMPTED BANKER SHORT COVERING AT THE COMEX.  THEY ORCHESTRATED ANOTHER RAID BUT JUDGING FROM THE GAIN IN TOTAL OI,, THEY WERE NOT SUCCESSFUL IN CLOSING OUT MUCH OF THOSE SHORTS…… , PLUS 2)  ZERO LONG LIQUIDATION  AND 3)  A STRONG INCREASE IN GOLD OZ  STANDING AT THE GOLD COMEX//AUGUST DELIVERY MONTH (SEE BELOW) ..AS WE ENGINEERED A TINY SIZED LOSS ON OUR TWO EXCHANGES OF 186 CONTRACTS. 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 134

 

WE HAD 24 NOTICES FILED ON FRIDAY AND THAT NUMBER IS RECORDED IN OUR TOTAL NOTICES. 

 

 

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 2181 EFP CONTRACTS WERE ISSUED:  AUG  0 , OCT: 0  DEC 2181; JUNE// ’21 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2181  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 LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 187 TOTAL CONTRACTS IN THAT 2181 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A SMALL SIZED 2367 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 ATTEMPTED BANKER SHORT COVERING  AS THE BANKERS HAVE BEEN CAUGHT TERRIBLY OFFSIDE ON THEIR SHORT POSITIONS..AND THUS THE REASON FOR OUR HUGE RAIDS LAST WEEK AND THIS WEEK COURTESY OF THE OFFICIAL SECTOR/BIS//BANKERS. TODAY WE WITNESSED A GOOD INCREASE IN GOLD TONNAGE STANDING FOR AUGUST…..  WE  LOST SOME WEAK HANDED SPECULATOR LONGS WITH THE RAID ORCHESTRATED BY THE BIS BUT ON A NET BASIS NEGLIGIBLE LONGS LEFT THE GOLD ARENA//

 

 

 

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $14.60).  AND, THEY WERE  UNSUCCESSFUL IN FLEECING ANY LONGS 

AS THE TOTAL LOSS ON THE TWO EXCHANGES REGISTERED  0.5785 TONNES

 

 

NET GAIN ON THE TWO EXCHANGES :: 186, CONTRACTS OR 18,600 OZ OR 0.5785 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:  549,282 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 54.92 MILLION OZ/32,150 OZ PER TONNE =  1708 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1708/2200 OR 77.64% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 

 

Trading Volumes on the COMEX TODAY: 343,197 contracts// fair volume// raid foiled

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  289,651 contracts//  volume: fair/poor  //most of our traders have left for London

 

 

AUGUST 26 /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
106,213.411 oz
HSBC
JPM
Malca
Deposits to the Dealer Inventory in oz NIL oz

 

 

 

Deposits to the Customer Inventory, in oz  

126,713.390

OZ

BRINKS

LOOMIS

MALCA

 

INCLUDES

1500 AND

2000

KILOBARS

No of oz served (contracts) today
66 notice(s)
 6,600 OZ
(0.2052 TONNES)
No of oz to be served (notices)
783 contracts
(78,300 oz)
2.43 TONNES
Total monthly oz gold served (contracts) so far this month
48,875 notices
4,887,500 OZ
152.021 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 0 deposit into the dealer

 

total deposit: nil oz

 

 

 

 

 

 

 

total dealer withdrawals: nil oz

we had 3 deposit into the customer account

i) Into Loomis:  48,225.000 oz  (1500 kilobars)

ii) Into Brinks 14,186.390 oz

iii) Into Malca:  84,302.000 oz (2000 kilobars)

 

total customer deposit:  126,713.390    oz

 

 

we had 3 gold withdrawals from the customer account:

i) Out of HSBC  15,811.925 oz

ii) Out of JPMorgan; 81,423.565 oz

iii) Out of Malca:  8977.927 oz

 

 

total withdrawals;  106,214.411  oz

 

 

 

We had 2  kilobar transactions  +

 

ADJUSTMENTS: 1 //

customer to dealer

i) Out of JPMorgan; 30,031.587 oz

 

 

 

The front month of AUGUST registered a total of 161 CONTRACTS as we GAINED 23 contracts. We had 7 notices served on TUESDAY so we GAINED A STRONG 30  contracts or an additional 3000 OZ 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 for their effort. The boys are scrambling in search of badly needed physical metal as they start to search for metal on the other side of the pond. (the CME is now allowing other refiners as official facilities to supply metal…our regular guys just cannot that which is needed..see report on that below)

 

 

 

 

 

After August we have the non active Sept contract month.. Here we saw another GAIN  of 62 contracts to stand at 2507.  Oct LOST 195 contracts DOWN to 71,792

 

The big December contract LOST 2023 contracts DOWN to 400,382 contracts…(it is here where some of our short side bankers tried to bail and failed//and some weak hand longs)

 

 

 

We had 66 notices filed today for  6600 oz

 

FOR THE AUGUST 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and  0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 66 contract(s) of which 0  notices were stopped (received) by j.P. Morgan dealer and 1 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 0 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the AUGUST /2020. contract month, we take the total number of notices filed so far for the month (48,875) x 100 oz , to which we add the difference between the open interest for the front month of  AUGUST (161 CONTRACTS ) minus the number of notices served upon today (66 x 100 oz per contract) equals 4,897,000 OZ OR 152.317 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 (48,875, x 100 oz + 161 OI) for the front month minus the number of notices served upon today (66) x 100 oz which equals 4,897,000 oz standing OR 152.317 TONNES in this  active delivery month. This is a HUGE  amount for gold standing for a AUGUST delivery month (an active delivery month). The figures include the 2400 oz delivered upon in the enhanced gold section.

We gained 30 contracts or 3000 oz of gold as these guys refused to morph into London based forwards.

THE NAME OF THE GAME TODAY IS  BANKER SHORT COVERING AS FINALLY FEAR BECAME THEIR CENTRAL FOCUS.  THEY ORCHESTRATED ANOTHER RAID TODAY SO AS TO CAUSE SOME WEAK HAND SPECULATORS TO FLEE THE GOLD ARENA. THEY SUCCEEDED SLIGHTLY.

 

 

 

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)

261,955.892 oz  (some deleted august 3)         JPM  8.1479 TONNES

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

25,078.004 oz Pledged August 21/regular account  .7800 tonnes jpm

total pledged gold:  1,085,072.487 oz                                     33.75 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 475.43 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 152.317 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  16,370,263.968 oz or 509.18 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:  261,955.892 oz (or 8.1479 tonnes)
total pledged gold:
b 2 pledged gold JPMorgan august 21/2020;  25,078.004 oz  (7800 tonnes)
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:  1,085,072.487 oz or 33.75 tonnes
thus:
registered gold that can be used to settle upon:  15,285191.0  (475,43 tonnes)
true registered gold  (total registered – pledged tonnes  15,285,192.0 (475.43 tonnes)
total eligible gold:  20,782,824.559 oz (646.43 tonnes)

total registered, pledged  and eligible (customer) gold;   37,153,088.527 oz 1,155.61 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  1029,27 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 26/2020

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
 20,000.000 oz
HSBC
???? exact???

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
nil
oz
No of oz served today (contracts)
3
CONTRACT(S)
(15,000 OZ)
No of oz to be served (notices)
13 contracts
 65,000 oz)
Total monthly oz silver served (contracts)  1282 contracts

6,410,000 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 0 deposits into the customer account

i)into JPMorgan:  nil oz

 

 

 

ii) Into everybody else: 0

 

 

 

 

 

 

 

 

 

 

 

 

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

JPMorgan now has 165.53 million oz of  total silver inventory or 48.71% of all official comex silver. (165.53 million/339.845 million

 

total customer deposits today: nil   oz

we had 1 withdrawals:

 

 

i) Out of HSBC: 20,000.000000  oz ???? exact!

 

 

 

 

 

 

 

total withdrawals;  20,000.000    oz

We had 0 adjustments

 

Total dealer(registered) silver: 130.403 million oz

total registered and eligible silver:  339.845 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

the front month of August registered an open interest of 16 contracts and thus we GAINED 2 contracts.  We had 1 notices filed on TUESDAY so we GAINED 3 contracts or an additional 15,000 oz will  stand for delivery as these guys REFUSED TO  morph into London based forwards as well as NEGATING a fiat bonus…. 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 loss of only 6272 contracts down to 43,375. November saw another gain of 32 contracts to stand at 467.

SEPT OI IS VERY HIGH AND WE WILL HAVE A DANDY AMOUNT OF SILVER STANDING AT THE COMEX.  WE HAVE 4 MORE READING DAYS BEFORE FIRST DAY NOTICE AUGUST 31/2020 (MONDAY)

THE BANKERS MUST HAVE BEEN NOT OVERJOYED TONIGHT WHEN THEY SAW THE HIGH OPEN INTEREST FOR THE FRONT MONTH OF SEPT…AND NOT CONTRACTING MUCH!!

 

The big December contract month saw its OI rise by good 5227 contracts up to 131,844

 

 

The total number of notices filed today for the AUGUST 2020. contract month is represented by 3 contract(s) FOR 15,000, 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 1282 x 5,000 oz = 6,410,000 oz to which we add the difference between the open interest for the front month of AUGUST(16) and the number of notices served upon today 3 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the AUGUST/2019 contract month: 1282 (notices served so far) x 5000 oz + OI for front month of AUGUST  (x)- number of notices served upon today (3) x 5000 oz of silver standing for the AUGUST contract month.equals 6,475,000 oz. ..VERY STRONG FOR A NON ACTIVE MONTH.

We GAINED 3 contracts or an additional 15,000 oz will stand for delivery as they refused to morph into London based forwards..

 

 

TODAY’S ESTIMATED SILVER VOLUME : 182,376 CONTRACTS // volume huge++++++++++++++++++++++++++++++++++++++++++++++++/

 

 

FOR YESTERDAY: 139,508.  ,CONFIRMED VOLUME//volume huge.++++++++  

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 139,508 CONTRACTS EQUATES to 0.697 billion  OZ 99.44% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 2.70% ((AUGUST 26/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -1.83% to NAV:   (AUGUST 26/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/2,70%

(courtesy Sprott/GATA

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

NAV 20.66 TRADING 20.24///NEGATIVE 2.05

END

 

 

And now the Gold inventory at the GLD/

AUGUST 26/WITH GOLD UP $26.70  TODAY/  WE  HAD A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.53 TONNES FROM THE GLD//RESTS AT 1248.85 TONNES

AUGUST 25/WITH GOLD DOWN $14.60 TODAY, WE  HAD NO CHANGES IN GOLD INVENTORY AT THE GLD//RESTS AT 1252.38 TONNES

AUGUST 24//WITH GOLD DOWN $7.20 TODAY: WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1258.38 TONNES

AUGUST 21//WITH GOLD DOWN $.40 TODAY: WE HAD NO CHANGE IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1252.38 TONNES

AUGUST 20/WITH GOLD DOWN $23.45 TODAY: WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD: .//INVENTORY REST AT  1252.38 TONNES

AUGUST 19//WITH GOLD DOWN $39.65 TODAY: WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1252.38 TONNES

AUGUST 18/WITH GOLD UP $14.60 TODAY: WE HAD A HUGE CHANGE IN GOLD INVENTORY: A DEPOSIT OF 4.09 TONNES//GLD INVENTORY RESTS TONIGHT AT 1252.38 TONNES

AUGUST 17/WITH GOLD UP $46.30  TODAY:  SURPRISINGLY WE HAD A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A WITHDRAWAL  OF 3.8 TONNES//INVENTORY RESTS AT 1248.29 TONNES

AUGUST 14/ WITH GOLD DOWN $19.45 TODAY: SURPRISINGLY, WE HAD A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 1.46 TONNES/INVENTORY RESTS AT 1252.63 TONNES.

AUGUST 13/WITH GOLD UP $23.15 TODAY: WE HAD A HUGE CHANGE IN GOLD INVENTORY: SURPRISINGLY A PAPER WITHDRAWAL OF 7.30 TONNES/INVENTORY RESTS AT 1250.63 TONNES

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 26/ GLD INVENTORY 1248.85 tonnes*

LAST;  889 TRADING DAYS:   +309.35 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 789 TRADING DAYS://+487.88  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

AUGUST 26//WITH SILVER UP $1.04 TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 4.65 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 566.419 MILLION OZ..

AUGUST 25/WITH SILVER DOWN 21 CENTS: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.607 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 571.074 MILLION OZ//

AUGUST 24//WITH SILVER DOWN 18 CENTS TODAY: WE HAD A NO CHANGES//INVENTORY RESTS AT 573.843  MILLION OZ//

AUGUST 21//WITH SILVER DOWN 30 CENTS TODAY: WE HAD A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF.838 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 573.843 MILLION OZ..

AUGUST 20/WITH SILVER DOWN $.26 TODAY: WE HAD A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A WITHDRAWAL OF 3.724 MILLION OZ FROM THE SLV..//INVENTORY REST AT 572.843 MILLION  OZ

AUGUST 18/WITH SILVER UP $.44 TODAY: WE HAD A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 2.514 MILLION OZ//THE SLV INVENTORY RESTS TONIGHT AT 576.567 MILLION OZ//

AUGUST 17/WITH SILVER  UP $1.27 TODAY: WE HAD NO CHANGES IN SILVER INVENTORY: //INVENTORY RESTS AT 574.053 MILLION OZ//

AUGUST 14/WITH SILVER DOWN  $1.31 TODAY, WE HAD A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 6.984 MILLION OZ// //INVENTORY RESTS AT 574.053 MILLION OZ//

AUGUST 13//WITH SILVER UP $1.76  TODAY: WE HAVE TWO HUGE CHANGES IN SILVER INVENTORY AT THE SLV//A PAPER DEPOSIT OF 2.421  MILLION OZ INTO THE SLV AT 2 PM AND ANOTHER DEPOSIT OF 6.984 MILLION OZ AT 5 20 PM/INVENTORY RESTS AT 581.037 MILLION OZ//

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 26.2020:

SLV INVENTORY RESTS TONIGHT AT

566.419 MILLION OZ

 

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

A very important commentary from Ted butler. He is noticing what I have been telling you:  huge amounts of silver coming into the comex but an equal amount of silver leaving. He is of the opinion that it is the users of silver that are stockpiling the metal\

\(zerohedge)

Ted Butler: A silver mystery in full view

 Section: 

11:36a ET Tuesday, August 25, 2020

Dear Friend of GATA and Gold:

What explains the furious turnover in silver inventory in the vaults associated with the New York Commodities Exchange, a turnover that vastly exceeds levels in any other commodity market?

Silver market analyst Ted Butler ponders the question this week, concluding that the turnover is probably a matter of enormous industrial demand, which, he writes, underlies the bullish case for the metal when combined with rising investment demand.

Butler’s analysis is headlined “A Silver Mystery in Full View” and it’s posted at GoldSeek’s companion site, SilverSeek, here:

https://silverseek.com/article/silver-mystery-full-view

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

 

A Silver Mystery in Full View

For those who have come to be convinced of the silver price manipulation, as well as those who remain unconvinced, I ask you to put aside all thoughts about derivatives trading, concentrated short positions and epic double crosses and think about something completely different. Please accept this as an open invitation in which no prior experience in matters related to sophisticated financial transactions is required and in which all that is needed is common sense and logical thinking.

In essence, I’ll lay out a series of documented facts which at their core present a silver mystery that cries out for explanation. Remarkably, the facts are beyond dispute and freely available to all, yet for some reason the data have been virtually ignored by everyone in the analytical community. While I’ll provide my explanation for the mystery, my main point is to solicit any reasonable alternative explanations. This is very much a debate open to all to help solve a mystery that deserves an answer.

For more than 9 years, starting in April 2011, I have been observing and reporting on a highly unusual development that has continued to this day. Basically, out of nowhere, the physical movement or turnover of 1000 oz bars of silver being brought into and removed from the COMEX-approved silver warehouses erupted from what had occurred prior to April 2011.  Please understand that I am referring to physical metal arriving on trucks and being deposited into the various COMEX warehouses as well as physical metal being taken out of these same warehouses and put on trucks and taken elsewhere.

While there is, obviously, some connection to paper futures trading and deliveries on futures, put that aside and focus on the actual physical metal being brought into and removed from the COMEX silver warehouses because that’s at the heart of the mystery. Just for clarity – if one million oz of silver were brought in and deposited into the COMEX warehouses and another one million oz were taken out that same day, I would count that as a two million oz turnover. For purposes of daily physical silver movement, I exclude changes involving changes in category classification between eligible and registered, as such changes don’t involve physical movement. Just focus on actual amounts received and withdrawn. Detailed physical movement is provided (for free) on the CME Group’s website daily – click on silver stocks

https://www.cmegroup.com/clearing/operations-and-deliveries/nymex-delivery-notices.html

 

Using these metrics, over the past 9 years there has been an average weekly physical turnover of some 5 million oz, or an annual turnover of more than 250 million oz. In recent years, the annual physical turnover, including that for the most recent 52 weeks, has been 300 million oz. Over the more than 9 years since the highly unusual and unprecedented extreme turnover of physical silver in 1000 oz bar form started to rush into and out from the COMEX-approved silver warehouses, more than 2.5 billion ounces have been physically moved. I would ask you to think about that for a moment.

Here we have conclusive and indisputable evidence that more than 2.5 billion oz of silver have been moved into and out from a small number (10) of warehouses in and around the New York metropolitan area over the past 9 years. I’ve recorded the turnover daily and reported on it weekly for all that time. That total physical movement over this time is equal to or greater than all the silver in 1000 oz bar form that exists in the world. That should astound you and everyone with the slightest interest in silver.

Over this same 9+ years, there has been an increase in total COMEX silver warehouse inventories from around 100 million oz in April 2011 to 340 million oz today, but that only accounts for less than 10% of the total turnover. And much of the increase in total COMEX inventories can be traced to the JPMorgan COMEX warehouse, which started out at zero ounces in 2011 and now holds 166 million oz. Over the past 52 weeks, total COMEX silver inventories grew by 27 million oz, while the physical turnover amounted to 300 million oz. Silver investment demand is not the explanation for the extreme physical turnover in the COMEX silver warehouses. Investor accumulation wouldn’t account for the extreme turnover.

In fact, I’m surprised that total investment holdings at the COMEX haven’t grown more than they have. After all, this is the source of physical silver bought by both the Hunt Bros up through 1980 and by Warren Buffett in 1997.  And COMEX physical silver was always the main form in which my departed mentor, Izzy Friedman, owned his silver.

Back in the year 2000, long before the introduction of SLV and other silver ETFs, I wrote an article explaining how COMEX silver receipts (backed by physical silver in the COMEX warehouses) were the very best method for buying and holding silver in size. At the time of the article, silver was trading for $5 an ounce and while it has been higher and lower than it is today ($27), I would point this out to those critics who insist that everything I say is bogus.

https://www.gold-eagle.com/article/best-silver-investment

 

Over the years (decades), millions of silver ounces have been bought and held, at my urging, in the form of COMEX warehouse silver inventories. I raise this issue to make another, separate point, namely that this privately-owned investment silver is part of the total COMEX warehouse inventories, even though it is not available for delivery currently. And there are countless other millions of ounces in the COMEX warehouses held by investors which haven’t been bought at my urging, but simply because this is a great way to hold investment silver. In a very real sense, this investment silver artificially inflates the total COMEX inventories to levels not indicative of working inventories.

What prompts this thought is the recent refusal by the COMEX and BlackRock, sponsor of the SLV, to comment on whether the 103 million oz held on behalf of the SLV by JPMorgan in New York is part of the 340 million oz in total COMEX silver “inventories”. I believe the refusal by either to confirm or deny the 103 million oz is being “double counted’ means that is likely the case. If my suspicions are correct about investor holdings being included in total COMEX silver inventories that means the true actual amount of working inventories in much less than the 340 million oz being reported. Why does this matter?

It matters because when compared to the actual documented physical turnover, it makes a big difference whether the 300 million oz annual turnover is occurring on a 340 million oz inventory or an inventory much less – say 100 or 150 million oz. Please don’t misunderstand what I’m saying – there is no commodity in the world that has or ever will experience the type of physical turnover that has existed in the COMEX silver warehouses these past 9 years – with no exceptions.  But there is a big difference between whether the total inventories are 340 million oz or some much smaller amount. And when it comes to the COMEX, it’s wise to assume the most devious explanation.

OK, so the open question is why, among all commodities, has the physical turnover in COMEX silver been so extraordinarily large and persistent for all these years and not in any other commodity? You don’t need to be a commodities or derivatives expert or other professional with years of hands-on experience to venture an answer to a very simple question – why just silver?  This is a debate open to all and no pre-qualifications are required – just something that makes sense.

Since I’m the one raising this issue, I’ve obviously thought about it a lot. My take is that the incredible physical silver turnover has very little to do with silver investors and that leaves only one other source for the physical demand that is driving the extreme turnover. That source is the industrial silver users. There is such large and persistent demand for physical silver by industrial and fabrication consumers that it is both flying into and out from the COMEX warehouses. You may recall I recently wrote about the silver users, both privately (in the archives dated July 29) and publicly on Aug 7 – https://silverseek.com/article/dont-forget-silver-users

I believe there is such strong and persistent demand for physical silver by industrial consumers of every type draining metal from the COMEX that it has been necessary for new silver to be brought into the COMEX warehouses to meet the demand. I don’t think the reverse can possibly be true, namely, that so much silver is coming into the COMEX warehouses that someone needs to withdraw it aggressively to keep total inventories from exploding.

If I am correct in my take, what I’m describing is persistent near white-hot industrial demand that might be on the verge of panic if the physical flow of silver is interrupted for any reason. One thing I’m not sure of is whether the industrial users of silver may have started to build up physical inventories in anticipation of a developing silver shortage. Whereas I always agreed with Izzy that it would take actual delays in physical deliveries to set off a user inventory buying panic, it dawns on me that the industrial silver users today are much different from the users of 35 years ago.

Companies like Apple Computer and Tesla Motors were in their infancy or years from being born in 1985 and it would be hard to argue that these companies aren’t smart and keenly aware of what’s going on in the world. It’s not difficult to imagine that some of today’s industrial silver users may have figured out that silver is likely to be in short supply in the future and it would be wise to secure future supplies now.

Further, it’s quite possible the recent increases in COMEX silver warehouse inventories reflect user inventory building, as there’s no way of knowing exactly who holds the metal – investors or users. Recently, JPMorgan issued (delivered) 40 million oz in its house account, yet none of that metal has been shipped out of its COMEX warehouse, even though ownership changed hands. As much as I condemn the COMEX for price manipulation, the fact is that its approved warehouses are a great place to store silver. A user taking delivery of that silver would have no compelling reason to move it out from the COMEX until needed. Same with an investor taking delivery.

Where this distinction is important, however, is in future silver delivery demands. Some have speculated that delivery demands in the fast-approaching September COMEX futures contract would be extremely large and bullish for the price. That may or may not be the case, but I can attest to something far more certain.  If it develops that purely speculative demand gets lined up to take delivery and there is anything that suggests those speculators are interested in “goosing” the price by taking delivery, the regulators are sure to intercede (as they should). But when the day comes that legitimate silver users are demanding delivery, then there is little the regulators can do.

One final point. Imagine if you would that instead of the physical turnover of silver exploding in the COMEX warehouses out of nowhere 9 years ago that the physical turnover occurred in some other industrial metal, like copper or zinc or nickel. Would that not become the talk of the analytical world in those commodities? Would not the conclusion quickly turn to sharply increased industrial demand as causing the sudden burst of physical warehouse movement? Why is that not the case in silver?

I am hard-pressed to construct a more bullish price set up than what I just described. How it is not at the forefront of every silver commentator’s list of reasons to be bullish is a puzzle to me. Be assured it is at the very top of my list of factors that could and should send silver prices soaring. If you have any thoughts on this matter, please let me hear from you. Something is responsible for the unprecedented physical metal turnover in the COMEX silver warehouses and it is high time it be examined.

Ted Butler

August 24, 2020

www.butlerresearch.com

END

Craig Hemke is seeing what I am seeing; we are going to have a dandy delivery in September;  maybe north of 90 million oz//

(Craig Hemke)

Craig Hemke at Sprott Money: Biggest monthly Comex silver offtake is about to happen

 Section: 

7:35p ET Tuedsay, August 25, 2020

Dear Friend of GATA and Gold:

More huge delivery demands are likely in Comex September silver, more than the huge demands made in the last three delivery months, the TF Metals Report’s Craig Hemke writes today at Sprott Money.

Hemke writes: “Total delivery demands for Comex silver in September are on track to meet or exceed what was seen in July. Could we see upwards of 90 million ounces of silver ‘delivered’ over the next 30 days? Yes, we sure could. What would this mean? Again, not likely the end of the Comex and its digital derivative pricing scheme. However, maybe we’ll move a few steps closer to the end — and that’s what we’re all anxiously awaiting.”

Hemke’s analysis is headlined “Comex Silver in September” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/blog/COMEX-Silver-in-September-craig-hemke-a…

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

END

The BIS footprint into gold trading is evidenced by the huge number of gold swaps orchestrated by them

(Robert Lambourne/)GATA)

Robert Lambourne BIS gold swaps soared in July, may be at highest level ever

 Section: 

By Robert Lambourne
Wednesday, August 26, 2020

The recently reported July statement of account of the Bank for International Settlements discloses that the bank’s use of gold swaps increased strongly that month to an estimated 474 tonnes, up 21 percent from 391 tonnes in June.

The swaps are used to gain access to gold supplies from bullion banks and the gold is then deposited in BIS gold sight accounts at major central banks, such as the Federal Reserve.

… 

The BIS’ use of gold swaps and derivatives has been extensive so far this year, with July’s level being the highest since August 2018. By contrast, in May 2019 the bank was carrying only 78 tonnes in swaps.

The July estimate of the bank’s gold swaps is also higher than any swaps reported by the BIS at the March year-end since March 2010. Hence it is possible that the gold swaps as of July are highest ever for the bank.

The swap transactions create a mismatch at the BIS, which ends up being long unallocated gold (the gold held in BIS sight accounts at major central banks) and short allocated gold (gold required to be returned to swap counterparties).

This mismatch has not yet been reported as such in the bank’s annual reports.

The table below reports the estimated swap levels since August 2018. It can be seen that the BIS is actively involved in trading gold swaps and other gold derivatives with changes from month to month in excess of 100 tonnes in this period.

———-

Month ….. Swaps
& year … in tonnes

Jul-20 ….. / 474
Jun-20 …. / 391
May-20 …. / 412
Apr-20 …. / 328
Mar-20 …. / 326*
Feb-20 …. / 326
Jan-20 …. / 320
Dec-19 …. / 313
Nov-19 …. / 250
Oct-19 …. / 186
Sep-19 …. / 128
Aug-19 …. / 162
Jul-19 ….. / 95
Jun-19 …. / 126
May-19 …. / 78
Apr-19 ….. / 88
Mar-19 …. / 175
Feb-19 …. / 303
Jan-19 …. / 247
Dec-18 …. / 275
Nov-18 …. / 308
Oct-18 …. / 372
Sep-18 …. / 238
Aug-18 …. / 370

* The estimate originally reported by GATA was 332 tonnes, but the BIS Annual Report states 326 tonnes. It is believed that this difference arose because the gold price used to calculate the GATA estimate was lower than the price used by the BIS. GATA uses gold prices quoted by USAGold.com to estimate the level of gold swaps held by the BIS at month-ends.

—–

Robert Lambourne is a retired business executive in the United Kingdom who consults with GATA about the involvement of the Bank for International Settlements in the gold market.

* * *

iii) Other physical stories:

We brought this to your attention yesterday but due to its significance we are repeating the story.  As a matter of record, the enhanced inventory section  (4 GC) has so far been rarely used and only one delivery of 2400 oz

This is a huge story: the comex is running out of metal

 

Ronan Manly

 

LBMA-COMEX Collusion Intensifies As CME Mass Approves 267 LBMA Gold And Silver Bar Brands

Submitted by Ronan Manly of BullionStar.com

In a move which has gone entirely unnoticed in the precious metals markets, but which signals gold and silver bar delivery constraints for the COMEX gold and silver futures contracts, Chicago Mercantile Exchange Group (CME), operator of the New York based COMEX, has quietly and under the radar, hugely expanded its lists of eligible refinery gold and silver bar brands that can be delivered against the massively traded flagship GC 100 (100 oz gold) and SI (5000 oz silver) contracts.

These changes, which were implemented on 27 July and which are detailed below, also look to be serving an even bigger agenda of preparing for a radical change in the delivery procedures of these two famous contracts so as to facilitate gold and silver stored in London Bullion Market Association (LBMA) vaults in London, England, to be used in settlement against the GC 100 oz and the SI 5000 oz COMEX contracts. Note that the COMEX 100 oz gold futures contract is currently deliverable as either one 100 troy ounce gold bar, or three 1 kilo gold bars, while the COMEX 5000 oz silver futures contract is currently deliverable as five 1,000 troy ounce cast silver bars (with a weight tolerance of 10% either higher or lower).

To reiterate, these changes are to the gold and silver refiner brand lists of the big boy contracts GC 100 and SI. You may recall something similar happening for a new 4GC contract when it was rushed out in late March, but that was just a trial run. This is the main event.

From New York to London

As a reminder and as some background, CME (COMEX) and the LBMA began explicitly colluding on 24 March this year in an attempt to try to reign in the global precious metals markets following an Exchange for Physical (EFP) gold delivery failure in London which caused both a blow out between gold futures and gold spot spreads, as well as a bid-ask spread blowout in London spot gold, and which prompted the LBMA in a public statement to say that it had:

“offered its support to CME Group to facilitate physical delivery in New York”

On the same day, 24 March, Reuters, the embedded LBMA mouthpiece, reported that:

“The LBMA and executives at major gold-trading banks asked CME to allow 400-ounce bars to be used to settle Comex contracts, said the two sources, both of whom were involved in the discussions.”

Again, on the same day, 24 March, the CME Group hurriedly launched a new gold futures contract called the “Gold (Enhanced Delivery) futures contract” (ticker 4GC), a contract which is structured to allow delivery via 100 oz gold bars, or kilo gold bars, or 400 oz gold bars.

Notably, in the 4GC contract, a 400 oz gold bar can be delivered via “Accumulated Certificates of Exchange” (ACEs), a fractional paper construct created by the CME to, in its words, “facilitate the conversion of 400 oz bars in fractional units which can be used for delivery” where “the Clearing House will issue four ACEs. Each ACE will represent an equal share of ownership of the larger bar.

 

Cutting the Desk with Sleight of Hand – COMEX ACEs. Source: CME website

Importantly, in late March, CME created an entirely new and huge list of eligible gold refiner brands whose bars would be acceptable for delivery against this new ‘Enhanced Delivery’ 4GC futures contract, a list which comprised every gold refiner brand on both the current and former LBMA Good Delivery lists of gold refiners, and every gold refiner brand already on the GC 100 contract eligible gold refiner list at that time.

Whatever it Takes – Add the whole Goddam List

As the CME said in its 24 March press release for the 4GC contract:

“The approved brand list for this product will have complete convergence with the approved brand list for CME Group’s existing gold futures and the LBMA gold good delivery list.”

While this 400 oz 4GC contract launched in late March has hardly traded since then, its primary purpose now looks to have been a trial run to test out linking COMEX precious metals contracts to the London vaults and to the LBMA Good Delivery refiners lists, and to test implement the construction technique for the expanded eligible gold and silver bar brand lists of the GC 100 gold and SI (5000) silver contracts.

As the CME and the LBMA said in another joint statement on 1 April, they “will continue to coordinate efforts as market circumstances evolve”. And continue to coordinate they have.

For those who might not be familiar, the COMEX approved brand list for gold and the LBMA Good Delivery lists for gold were (up until recently) two entirely unrelated lists and concepts. The same was true of the COMEX approved brand list for silver and the LBMA Good Delivery lists for silver – they were two entirely unrelated lists and concepts.

The COMEX approved gold refiner brand list (up until 27 July) was a list of refiners which produced either 100 oz gold bars or 1 kilo gold bars which COMEX judged to be of a sufficient standard to be physically deliverable against the GC 100 gold contract. On the other hand, the LBMA Good Delivery List for gold lists those gold refineries around the world which produce the far larger 400 oz gold bars (central bank gold bars) and whose gold bars are deemed by the LBMA Good Delivery referees to be of a high enough quality for inclusion.

Likewise, the COMEX approved silver refiner brand list (up until 27 July) was a list of silver refiners which produced 1000 oz silver bars, bars which COMEX deemed worthy to be deliverable against the SI silver contract. In contrast, the LBMA Good Delivery List for silver is a far larger list of silver refineries which produce 1000 oz silver bars, including many CHinese refineries, that have been accredited by the LBMA Good Delivery referees.

When at the end of March, CME rushed to create a new gold bar refiner list for the 4GC (400 oz) gold contract, there were 68 gold bar brands listed on the existing GC 100 approved gold bar brand, and this list had not changed in any material way for a long time save for a few additions and deletions of refineries along the way.

In late March for the new 4GC contract, CME took this existing COMEX GC 100 refiner list and merged it with the LBMA Good Delivery List for gold, adding in all the gold refinery brands that were on the LBMA Good Delivery list that had not already been on the GC 100 list. This was a whopping 51 bar brands on the LBMA Good Delivery gold list that were not on the GC 100 refiner list. When these two lists were added together and merged, it resulted in a combined list of 119 approved bar brands, an exact 75% increase over the 68 refineries which were on the GC 100 COMEX gold bar brand list.

4GC Test Run

Next, and this too is very important, the CME also added to the 4GC list all of the gold refineries that are listed on the former LBMA Good Delivery List for gold. For those who don’t know, the LBMA maintains two refiner bar brand lists for gold as well as another two refiner bar brand lists for silver. The current LBMA Good Delivery List for gold lists gold refiners which currently produce 400 oz gold bars which have been accredited by the LBMA.

The former LBMA Good Delivery List for gold lists gold refiners which at some point in the past produced 400 oz gold bars which had been accredited by the London Gold Market referees, such as the Royal Mint’s refinery and Johnson Matthey, which previously administered the London Good Delivery list. This former list is a list of refineries, including historic and long gone refiners, which don’t currently make Good Delivery gold bars (400 oz gold bars) but whose gold bars, before they stopped making them or were taken off the list, are still accepted as London Good Delivery. Note that the history of the Good Delivery list stretches back all the way to 1750. The LBMA has only been in existence since 1987.

There are, wait for it, 111 additional refiners on the former LBMA Good Delivery List for gold that are not on the current LBMA Good Delivery list for gold. This means, in total, when the COMEX 4GC contract went live in early April this year, its approved refiner list of gold bar brands contained the names of a massive 230 refiner bar brands, 68 + 51 + 111 = 230. That’s a 238% increase in the number of refineries compared to the 68 refiners which were on the pre-April GC 100 approved refiner gold list. Ironically, the new 4GC contract has never traded, but was it ever meant to, or was it a red herring to set up the 400 oz London deliverable infrastructure for the GC 100 contract?

GC 100 and SI 5000 – A Live Exercise, Conjob-27 

Now fast forward to 27 July, and what do we find? Well on 27 July, the CME (COMEX) in a very low key way and without any media announcements or press releases, quietly slipped in a market regulation filing (MKR) on its website titled “Regularity Approvals for Gold and Silver Brands”, with a short statement as follows:

“From Registrar’s Office

# MKR07-27-20

Notice Date 27 July 2020

Effective Date 27 July 2020

The Commodity Exchange, Inc. (“COMEX” or “Exchange”) has approved certain London Bullion Market Association (“LBMA”) good delivery brands for delivery against the Exchange’s Gold Futures (GC) and Silver Futures (SI) contracts. The list of brands are located in the “Gold (GC) Brands” and “Silver (SI) Brands” tabs in the service providers table at the end of Chapter 7 of the COMEX Rulebook.

These approvals will increase the brands of available material that can be used to satisfy delivery requirements of the Gold Futures (GC) and Silver Futures (SI) contractsand will afford market participants expanded delivery options.

These approvals are effective immediately.”         

When one consults the said “Gold (GC) Brands” and “Silver (SI) Brands” tabs of the latest CME service providers table (which is published as a spreadsheet in XLS format here), one sees the following.

On the Gold (GC) Brands worksheet for the flagship GC 100 oz contract, we now find that:

  • 51 LBMA approved gold refineries have been added to the eligible brand list for the COMEX 100 (GC 100) gold futures contract. These 51 additional refinery brands are listed directly under the existing refiner list with a subheading of “(Added as of 27 July, 2020)” There were 69 brands on this list prior to 27 July. There are now 120 current brands on the GC 100 gold list. 69 + 51 = 120
  • Of the 51 refiner brands, the top three countries represented are 12 refineries are from China, 10 from Japan, and 7 from Russia.
  • An additional 111 gold bars brands from the LBMA ‘former’ Good Delivery List for gold have been added to the Gold (GC) brands tab as a separate list beside and to the right of the first list. In total 162 LBMA approved gold bar brands have been added to the COMEX approved gold bar brand list.
  • Overall, there are now 231 brands on the COMEX approved gold bar brand list. That’s a 235% increase in the number of gold bar brands that are now on the GC 100 list compared to the 69 that were listed before the 27 July change.

Note that the current LBMA Good Delivery List for gold lists 71 refiner gold bar brands. The former LBMA Good Delivery List lists 115 refiner bar brands.

Silver Panic – Under the Radar

An even bigger bombshell arguably is that the CME and LBMA’s actions are now signaling panic about future physical silver delivery. Turning to the Silver Futures (SI) Brands worksheet, we find that on 27 July, the COMEX SI eligible silver refiner brand list, which up until then had listed 75 silver bar refiner brands, has also been hugely expanded.

On the Silver (SI) Brands worksheet tab of the same service providers XLS, we now find that:

  • 65 LBMA approved silver refineries have been added to the eligible brand list for the COMEX SI (5000 oz) silver futures contract. These 65 additional refinery brands are listed directly under the existing refiner list with a subheading of “(Added as of 27 July, 2020)
  • There were 75 brands on this list prior to 27 July. There are now 140 current brands on the current SI silver refiner list. 75 + 65 = 140
  • Of the 65 silver refiner brands added, the top three countries represented are 26 silver refineries from China, 11 from Japan, and 5 from Russia.
  • An additional 40 silver bars brands from the LBMA ‘former’ Good Delivery List for silver have also been added to the Silver (SI) Brands tab as a separate list beside and to the right of the first list.

In total, 105 LBMA silver bar brands were added by COMEX on 27 July, taking the COMEX SI silver list to a total of 180 eligible silver bar brands. That’s a 140% increase in the number of silver bar brands compared to prior to 27 July, or in other words, 2.4 times more brands on the SI silver brand list than there had been prior to 27 July.

Note that the current LBMA Good Delivery List for Silver lists 84 refiner silver bar brands. The former LBMA Good Delivery List lists 82 refiner bar brands.

In summary, on 27 July, across the GC 100 contract and SI contract refiner lists, COMEX stealthily added 267 LBMA gold and silver refiner brands to the COMEX approved refiner lists using one small paragraph in an obscure hidden filing on its website. Critically, these changes were approved and ‘effective immediately’ on 27 July, the same day that they were announced. How’s that for covert behind the scenes dealings? With COMEX and LBMA hoping no one would notice.

 

267 gold and silver brands added to the COMEX GC and SI contracts – Nothing to See!

The Old Normal

Previously, CME always announced each addition or removal of an approved gold or silver refiner brand  separately in a distinct filing, for example, when the ABC Refinery (Australia) brand was added to the GC 100 gold approved refiner list on 5 June this year, or when, CME removed the approval of the gold bar brand of the North Korean central bank from the 4GC approved brand list on July 23 July (the Pyongyang  gold bar brand had slipped through the cracks in COMEX’s rush to blanket list all former LBMA brands, this obviously did not go down well in New York, or perhaps in Washington DC).

Another example is the tragicomic addition and subsequent removal of Dubai DMCC’s Al Ethihad Refinery from the GC 100 gold brand list in July, approved and added by CME on 9 July, and then mysteriously removed by CME three weeks later on 31 July without explanation, but market rumor has it that Al Ethihad was kicked off the COMEX gold refiner list due to intervention by JP Morgan.

In contrast to all of these individual additions and deletions, now COMEX has added 267 gold and silver bar brands to its approved in one fell swoop. Nothing like this has ever happened before. So why now?

New Normal – We’re Going to Need A Bigger List

Traditionally, the COMEX futures markets in New York has been known around the world as a venue which trades gargantuan volumes of futures contracts (GC 100 oz gold and SI 5000 silver) that while deliverable, were rarely delivered. This therefore gave the COMEX the reputation of being a relative backwater for physical gold and silver activity. But with contract holders now demanding physical delivery of both gold and silver, that is increasingly less the case.

 

Huge increase in COMEX GC 100 gold contracts delivered in 2020. Source: www.GoldChartsRUs.com

Since late March 2020, a net 879 tonnes of gold has arrived into COMEX approved New York vaults, with total gold stocks more than quadrupling from 271 tonnes to 1151 tonnes. Of these net additions, 461 tonnes have ended up as registered gold inventories, the eligible gold inventories have swelled by other 418 tonnes.

Since April inclusive, a massive 155,430 GC 100 gold contracts have been delivered (warrants changing hands), predominantly across the April, June and August contracts, representing 483 tonnes of gold.

Silver net inflows into COMEX vaults since 23 March have been more subdued, both in terms of size and a percentage of existing stocks, with the net additions totaling about 16.8 million ozs of silver, which has raised total COMEX silver holdings from 323.4 million ozs to the current 340.3 million ozs. But within that, there has been a marked increase in registered silver stocks from less than 3000 tonnes to currently over 4000 tonnes.

Silver SI 5000 oz contracts moving to delivery have also increased massively in the last few months, with vault warrants 9,044 contracts changing hands in May and 17,294 contracts in July. Between April and August to date, 28989 SI contracts, each for 5000 oz of silver have gone to warrant delivery, that’s 144.95 million ozs of silver, or 4500 tonnes. The next active delivery month in SI silver is September, followed by December. Both months currently have huge Open Interest, 59,000 contracts and 120,000 contracts respectively, far larger than available COMEX silver stocks.

Kilo Bars Do Not Explain the Changes

The billion dollar question now is why, on 27 July, did CME blanketly and surreptitiously add 162 LBMA gold bar brands to the COMEX GC 100 eligible gold refiner list and 105 LBMA silver bar brands to the COMEX SI 5000 eligible silver refiner list?

For the GC 100 gold futures contract, the deliverable unit of the 100 oz gold bar is not only not common, it is not usually a gold bar size produced by gold refineries around the world. While the 1 kilobar unit is popular, many of the gold refinery brands added to the GC 100 approved list on 27 July, not to mention those on the former gold LBMA Good Delivery gold list, don’t and never did produce kilo gold bars, let alone 100 oz gold bars.

For example, there is a gold kilobar Good Delivery List maintained by the Singapore Bullion Market Association (SBMA) which only lists 15 refinery brands of gold kilobar. The Dubai Good Delivery Standard (DGD), a 1 kilogram bar standard operated by Dubai Multi Commodities Centre (DMCC) in Dubai only lists 13 refiner gold brands on its active DGD list, and another 18 on a former list.

So why were 162 LBMA Good Delivery refiner bar brands added to the COMEX list? The large Swiss gold refineries of PAMP, Valcambi, Metalor and Argor-Heraeus were already on the GC 100 gold brand refiner list. As were the Perth Mint, Royal Canadian Mint, Rand Refinery, and Johnson Matthey. Adding a large list of refiners could give a bit of juice in terms of extra kilobar gold brands that could be delivered against GC 100. But not hugely. Besides, looking at the daily COMEX gold inventory reports shows that no gold moved from the 4GC Enhanced Delivery category to the normal reporting category in any of the COMEX vaults after the mass approval of all the extra bar brands, which means there were no previously GC 100 contract ineligible bar brands of 1 kilo or 100 oz units sitting in the vaults waiting to be reclassified.

Plug in London

The more likely and logical explanation is that the COMEX, in conjunction with the LBMA, is planning to change the GC 100 delivery procedure to allow delivery of 400 oz gold bars in London, and the associated paper fractional scheme of Accumulated Certificates of Exchange (ACEs). That’s what they originally wanted and that is the holy grail for the bullion banks.

A telling sign is that CME specifically added 111 gold bar brands on the former LBMA Good Delivery List for gold when many of these refineries are no longer in existence and never ever produced 1 gold kilo bars or 100 oz gold bars. Are the COMEX and LBMA bullion banks that desperate that they are now scraping the proverbial bottom of the London gold vaults, planning to deliver the GC 100 contract into long forgotten 400 oz gold bars in deep storage under the Bank of England?

As noted by Bloomberg in an article in early July:

“CME, which owns Comex where the main gold futures contract is listed, said in March it would offer a new futures contract with expanded delivery options that included 400-ounce bars, which is the size that’s accepted in the larger spot market in London.

On Tuesday [30 June], it announced that traders will also be able to deliver gold in London vaults against the new contract, saying the move would “provide market participants greater opportunity to make and take delivery.”

However, the move falls short of what some market participants had been hoping. The main “GC” gold contract is still only deliverable in the US using 100-ounce bars or kilobars.”

 

Huge increase in COMEX SI 5000 silver contracts delivered in 2020. Source: www.GoldChartsRUs.com

Why too has COMEX added 65 LBMA silver bar brands to the approved silver bar brand list for the SI contract? This entire change in the deliverable brand list for the SI silver contract has completely come in under the market’s radar. Does COMEX plan to push through silver delivery in the London vaults for its SI contract too? It would appear so.

The same question can be asked about why CME (COMEX) has added 40 former silver refineries to its SI approved silver brand list. Is there such an upcoming shortage of physical silver that the COMEX needs to approve every silver refinery on the planet, both current and former, so as to have a large enough universe of silver bars to tap including long forgotten silver bar brands?

The LBMA – CME spin from March to May was that coronavirus lockdowns caused gold delivery logistical delays which were responsible for the price spread blowout between COMEX gold futures and London spot gold. This was also, said the duo, the reason why they needed to launch the 4GC (400 oz) contract, to give market participants ‘enhanced’ delivery options in London from an extended refiner brand list.

Then why has this 4GC contract never been used? And why has COMEX now railroaded through the exact same refiner list changes to the GC 100 contract, as were implemented for the 4GC contract. The only logical explanation is that as the GC 100 refiner list expansion has now occurred so too soon will the additional of London gold vaults as a GC 100 delivery option.

If it wasn’t for those Pesky Rules

As to why COMEX created the 4GC contract in March and didn’t change the GC 100 contract specs to allow 400 oz gold bar delivery, the official line from was that CME cannot change contract that have Open Interest. As CME said in its 4GC FAQ:

“There are significant legal and regulatory concerns with making changes to any existing contract with significant open interest, and we always work to preserve the integrity of each contract for all open interest holders – short and long”

According to the Stone X daily gold market commentary on 1 July, changes to permit gold bar delivery in London against the 4GC contract also require a contract that has no Open Interest:

“The Chicago Mercantile Exchange has announced that it will permit delivery against its new 4GC contract into London vaults. This will be effective as of the September contract, which is the earliest contract in which there is no current open interest (or beyond). Contracts are not allowed to be modified where there is open interest.

COMEX has already added in the reference to London depositories (vaults) for the 4GC into chapter 7 of its “Delivery Facilities and Procedures”, where the relevant section now reads as follows, with the sentence in bold having been inserted:

“The depository for gold deliverable against the Gold futures (GC) contract must qualify and be designated a weighmaster and must be located within a 150-mile radius of the City of New York. The depository for gold deliverable against the Gold (Enhanced Delivery) futures (4GC) contract must qualify and be designated a weighmaster and must be located within a 150-mile radius of the City of New York or in London, UK.”

A previous version of this Chapter 7 text, from 23 April, had no mention of London, nor of the Gold (Enhanced Delivery) 4GC contract.

It will be interesting to see how COMEX, the LBMA and the bullion banks will get around the “significant legal and regulatory concerns with making changes” to GC and SI contracts that have significant open interest, but with the expanded approved refiner lists now done and dusted, the next step will be to get the CME lawyers, in league with an as always compliant CFTC, to change the GC and SI contract specs. As they used a stealthy and covert approach when implementing the refiner list changes, expect similar such attempts with the contract specs.

This article was originally published on the BullionStar.com website

end

 

Buffett, Banquo’s Ghost, & Bullion

Why we own gold

(James Rickards)

Authored by James Rickards via DailyReckoning.com,

WE have all been mesmerized by action in the price of gold lately. In the past few weeks, gold rallied over $200 per ounce and traded solidly about the $2,000 per ounce level and hit a new all-time high taking out the previous high from August 2011.

Of course, gold is volatile (well, the paper gold market is volatile) and has its down days alongside the up days. But the trend to much higher prices is firmly in place.

It’s trading at around $1,940 today, but it’ll soon be back to $2,000, and much higher in the years to come.

Everyday investors understand this price action, but the Federal Reserve does not.

Gold reserve requirements on the U.S. money supply were ended in 1968 and the ability of foreign trading partners to convert U.S. dollars to gold at a fixed price was ended in 1971.

Ever since then, central bankers in general and the Fed in particular have banished gold from the conversation and insisted that if you think gold has a place in the monetary system you are a “gold bug,” a moron or worse.

But, like Banquo’s ghost in Shakespeare’s Macbeth, gold keeps showing up as an uninvited guest at the dinner table to haunt the central bankers. Economists may have abandoned gold, but investors have not.

And perhaps the most famous investor of all is now betting on gold…

In the past, Warren Buffett has mocked gold for having no utility. Why dig it out of the ground only to rebury it in a vault?, he has asked.

Incidentally, Buffett’s father, Howard Buffett, was a U.S. congressman. He strongly believed in the gold standard and was one of the last remaining public officials who argued for it after WWII.

The apple fell pretty far from the tree in this case.

But, it seems that Warren Buffett has changed his mind about gold…

Buffett dumped much of his stake in JPMorgan and Wells Fargo bank and made a huge $563 million bet on Barrick Gold.

There are fundamental reasons for this, including the fact that bank earnings are likely to suffer both because of a flat yield-curve (banks can’t make profits on a spread when there is no spread) and accumulating loan losses from the COVID-19 economic collapse and coming defaults.

Of course, Barrick Gold is a beneficiary of rising gold prices which have enabled it to pay off most of its debt so it’s well positioned to go on an acquisition binge buying smaller miners with proven reserves.

But, there’s another way to think about this trade with more profound implications for investors.

Banks create money by making loans and adding the loan proceeds to borrower accounts through a few accounting entries. The banks create paper money.

But, gold miners create money by digging up gold, processing it and selling it to refiners. In other words, the gold miners create hard money.

Buffett is signaling a loss of confidence in the dollar. He’s getting out of the paper money business and into the hard money business.

But it’s not just Warren Buffett, of course.

Turkey’s central bank has lost its independence and the president of Turkey is demanding low interest rates and more money printing. That’s leading to runaway inflation. Gold is the obvious hedge.

People are also turning to gold in China, South Korea, Germany and elsewhere around the world.

Once again, this proves that everyday investors are the first to act at important economic turning points and central bankers are the last to know.

It’s not too late to add to your gold allocation before new restrictions on gold buying or gold ownership are imposed.

end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.8909/ 

 

//OFFSHORE YUAN:  6.8847   /shanghai bourse CLOSED DOWN 43.84 POINTS OR 1.30%

HANG SANG CLOSED UP 5.57 POINTS OR 0.02%

 

2. Nikkei closed UP 0.75 POINTS OR 0.01%

 

 

 

 

3. Europe stocks OPENED ALL MIXED/

 

 

 

USA dollar index UP TO 93.111/Euro FALLS TO 1.8062

3b Japan 10 year bond yield: RISES TO. +.05/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.31/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI:: 43.16 and Brent: 45/74

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

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

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

3h Oil 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 -.40%/Italian 10 yr bond yield UP to 1.02% /SPAIN 10 YR BOND YIELD DOWN TO 0.38%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.52: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.09

3k Gold at $1917.10 silver at: 26.40   7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble DOWN 10/100 in roubles/dollar) 62.99

3m oil into the 43 dollar handle for WTI and 45 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 106.31 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 .9095 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0738 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 0.40%

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 0.713% early this morning. Thirty year rate at 1.422%

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

6.  TURKISH LIRA:  UP  TO 7.3617..

S&P Futures In Holding Pattern Ahead Of Jackson Hole

U.S. equity futures were unchanged on Wednesday, while global stocks and bond yields rose as investors were stuck in a holding pattern amid optimism about U.S.-China trade and expectations of ample central bank stimulus before a key speech by Jerome Powell at Jackson Hole. Treasuries and European government bonds declined, while the dollar was flat.

Eminis were flat at 3,443 after the cash index closed at another record high on Tuesday.

 

The MSCI world equity index gained 0.1%, just shy of its all time high. Europe’s Stoxx 600 shrugged off early losses to gain 0.4% by late morning as news on jobs support and trade was countered by persistent concerns about the Covid-19 pandemic, with indexes in Frankfurt and Paris up 0.5% and 0.2% respectively, though London’s FTSE 100 and Italy’s FTSE MIB were both in the red.

Earlier in the session, markets in Asia were mixed, with Shanghai Composite and Australia’s S&P/ASX 200 falling, and Taiwan’s Taiex Index and Thailand’s SET rising. The Topix was little changed, with AltPlus rising and Land Co falling the most. The Shanghai Composite Index retreated 1.3%, with Shenyang Jinshan Energy and Founder Technology Group posting the biggest slides. Chinese equities retreated Wednesday after a three-session rally as investors were seen worried about some companies’ earnings. Tech stocks were the worst performers. “A lot of firms’ first-half earnings growth have failed to keep up with their valuations and that’s one key reason for the selloff,” said Wang Chen, a partner with XuFunds Investment. “That’s especially the case for Star board and ChiNext stocks. Expectations on overall liquidity have also turned negative and weighed on the market.”

“The Fed has all but guaranteed that rates are going nowhere for at least two years,” Saxo strategist Eleanor Creagh told Bloomberg TV. “Equity remains the place for investors to escape the secular stagnation that we’re seeing within the real economy that this zero-yield world produces.”

In rates, Treasurys were sold ahead of the Jackson Hole speech where Powell is expected to unveil Average Inflation Targeting, with the yield on U.S. 10-year debt rising as high as 0.7190%, close to a two-month peak before paring some losses as markets begin to price in a return to inflation and growth for major economies. A day earlier, investors dumped U.S. debt and bought stocks after a productive call between top Beijing and Washington officials stoked hopes of smoother trade relations between the world’s two biggest economies. Eurozone bonds calmed, with safe-haven Bund yields rising a smidgeon after enduring on Tuesday their biggest daily losses since May as better German economic data and trade dented hunger for government debt.

With trading muted, traders were eagerly looking at tomorrow’s Jackson Hole webcast where for many investors, bets on even looser policy were at the forefront. Powell is due to speak at a virtual Jackson Hole symposium on Thursday, where investors think he could outline a more accommodative approach to inflation which would open the door to easier policy for a long time to come.

“Jackson Hole is a big one,” said Jeremy Gatto, an investment manager at Unigestion in Geneva. “Investors are expecting a bit more clarity on what the Fed is looking at. We are likely to see a high level of accommodation for some time to come.”

In fx, the dollar was unchanged after taking a knock a day earlier on data that showed U.S. consumer confidence falling to the lowest in more than six years because of worries over the impact of the coronavirus pandemic on jobs. The Japanese yen fell 0.2%, with MUFG analysts arguing that uncertainty over the health of Shinzo Abe, the long-serving premier, was adding to downward pressure along with advances for stocks and rising U.S. yields.

China’s yuan sets another 7-month high on Wednesday, as some banks sold the dollar, according to four foreign exchange traders. Onshore yuan advances as much as 0.29% to 6.8911 versus the dollar in afternoon trading, the strongest since Jan. 21; it was at 6.8958/USD as of 4:06 p.m. in Shanghai. Sales of the greenback by investors including some big Chinese banks drive the yuan’s rise, before some dip buying of the dollar caps yuan’s gain, say four traders who asked not to be identified as they are not authorized to comment on the market.

 

In another sign of a more positive mood, Reuters notes that gold faced collateral damage from rising bond yields, falling 0.5% as it headed for a fourth straight day of losses. “Higher yields also tend to act as a headwind against the gold price,” said John Hardy, head of FX strategy at Saxo Bank, in a note to clients.

In other commodity markets, a positive mood on trade and U.S. producers shutting most of their offshore output in the Gulf of Mexico ahead of Hurricane Laura kept Brent crude oil mostly steady. Producers evacuated 310 offshore facilities and shut 1.56 million barrels per day of crude output, 84% of Gulf of Mexico’s offshore production – near the 90% outage that Hurricane Katrina brought 15 years ago. Brent futures lost 7 cents, or 0.2%, to $45.78 a barrel by late morning, shedding earlier gains, with the benchmark having settled at a five-month high a day earlier.

Economic data include durable goods orders, mortgage applications. Scheduled earnings include Royal Bank of Canada, Dick’s Sporting Goods

Market Snapshot

  • S&P 500 futures up 0.06% to 3,445.00
  • STOXX Europe 600 up 0.3% to 370.89
  • MXAP up 0.1% to 173.67
  • MXAPJ up 0.06% to 575.43
  • Nikkei down 0.03% to 23,290.86
  • Topix down 0.05% to 1,624.48
  • Hang Seng Index up 0.02% to 25,491.79
  • Shanghai Composite down 1.3% to 3,329.74
  • Sensex up 0.3% to 38,961.01
  • Australia S&P/ASX 200 down 0.7% to 6,116.36
  • Kospi up 0.1% to 2,369.32
  • Brent Futures up 0.2% to $45.93/bbl
  • Gold spot down 0.5% to $1,919.13
  • U.S. Dollar Index up 0.09% to 93.11
  • German 10Y yield rose 1.1 bps to -0.42%
  • Euro down 0.2% to $1.1813
  • Brent Futures up 0.2% to $45.93/bbl
  • Italian 10Y yield rose 8.1 bps to 0.9%
  • Spanish 10Y yield unchanged at 0.382%

Top Overnight News

  • Germany extended its wage-supporting program, which helped millions of workers to keep their jobs, until the end of 2021 to drive economic recovery
  • In the U.S., the summer virus spike shows signs of easing. Japan’s virus czar said the country faces a second wave of Covid-19 cases larger than the first, while Singapore is tightening restrictions for South Korean travelers
  • Hurricane Laura is poised to become a life-threatening category four storm as it nears the U.S. Gulf Coast, potentially inflicting as much as $18 billion in damage on the region and keeping some of America’s largest oil refineries shut for months
  • Finland is leading the action in Europe’s market for new bond sales, supported by an easing in risk sentiment across the region ahead of the Jackson Hole summit

Asian equity markets traded cautiously amid a lack of fresh macro drivers and following on from the somewhat choppy performance of US counterparts, where the DJIA underperformed whilst the S&P 500 and Nasdaq eventually extended on record highs. ASX 200 (-0.7%) underperformed in which utilities and financials led the broad descent across its sectors and as earnings continued to dominate headlines. Nikkei 225 (-0.1%) swung between gains and losses in tandem with an indecisive currency and as early momentum was stalled by resistance at the 23,350 level, with slight political uncertainty also clouding sentiment following PM Abe’s recent hospital visits that have spurred some speculation of a possible step-down, although officials were quick to refute this. Elsewhere, Hang Seng (U/C) and Shanghai Comp. (-1.3%) were subdued despite the recent constructive trade discussions, as there were also reports the Trump administration is mulling accusing China of ‘genocide’ over the maltreatment of Uighur Muslims. Furthermore, the PBoC continued its liquidity efforts but to a lesser extent and refrained from 14-day reverse repos in today’s open market operations, while Alibaba shares were a notable gainer overnight after its affiliate Ant Group filed for an IPO in Hong Kong and Shanghai as it targets a USD 225bln valuation and could raise as much as USD 30bln which would be the biggest on record. Finally, 10yr JGBs were lower in a continuation of the retreat from the 152.00 level and amid spillover selling from USTs, while prices also failed to benefit despite the lacklustre risk appetite and BoJ’s presence in the market for nearly JPY 1.2tln of JGBs with 1yr-10yr maturities.

Top Asian News

  • China Stocks, Sovereign Bonds Drop on Worries About Liquidity
  • Southeast Asia’s Virus Hotspot Risks Losing in Vaccine Race
  • Three-Decade Economic Boom Comes to a Sudden Halt in Vietnam
  • H.K. Police Arrest Bank VP For Alleged Rioting in 2019 Protest

European stocks are mixed (Euro Stoxx 50 +0.2%), having opened with mild losses of around 0.3-0.5%, albeit cash bourses and equity futures remain contained amid a lack of fresh catalysts. There was no particular news flow that prompted the initial turnaround in the first half-hour since the cash open – it is worth keeping in mind the holiday-thinned conditions and caution heading into the Fed Jackson Hole Symposium, with the schedule set for release at 20:00ET/0100BST. Sectors are mixed with no clear risk profile to be derived; the IT sector outperforms as SAP (+1.3%) moves higher on the back of stellar numbers from Salesforce (+13% pre-mkt), who raised guidance. Note: SAP carries an almost 6% weighting in the Euro Stoxx 50. In terms of individual movers, Elekta (+13.7%) tops the European charts post-earnings, Telecom Italia (+3.8%) trades firmer after the Italian government gave the green light for KKR’s purchase of a stake in Co’s secondary grid. Meanwhile, Carnival (+2.8%) shares trade higher amid a firmer performance in the Travel & Leisure sector, although Co’s Princess Cruises has announced early-2021 world cruise cancellations for two out of 19 ships.

Top European News

  • Angela Merkel Is Exasperated by Putin as Navalny Lies in a Coma
  • EU Trade Chief’s Defense of Quarantine Actions Draws Irish Ire
  • Ambu Shares Fall as FY Outlook Cut to Low End of Range
  • Mowi Falls; Handelsbanken to Lower 2020 Estimates

In FX, the Dollar is holding up relatively well ahead of durable goods, spot month end and the start of this year’s global Central Bank ‘gathering’ in Wyoming, albeit with assistance from certain currency rivals and a fade in broad risk sentiment after the recent bull run. The index has tightened its grip around 93.000 following several false breaks below, but is also meeting stiff resistance on rebounds amidst the usual sell signals for portfolio rebalancing from various bank models. Hence, the DXY is meandering within a 93.215-92.990 band and Usd/major pairs remain mixed/rangebound.

  • CHF – A marginal G10 underperformer, though still straddling 0.9100 vs the Greenback and 1.0750 against the Euro after an improvement in Swiss investor sentiment and eyeing Q2 GDP on Thursday that is expected to confirm a technical recession via a more pronounced q/q contraction compared to the previous quarter.
  • EUR – The Euro has waned ahead of 1.1850 for a 3rd consecutive session and failed to convincingly breach a technical barrier in the form of the 200 HMA that is currently at 1.1848, but the latest pull-back is shallower and not far from daily chart support just above 1.1800. Fundamentally, not much from an independent perspective as the single currency continues to track Buck moves alongside the general market mood.
  • NZD/JPY/AUD – No real reaction to NZ trade data overnight, but the Kiwi may be benefiting from a combination of short covering/corrective price action given the magnitude of post-RBNZ policy meeting depreciation. On that note, Assistant Governor Hawkesby may have contributed to the Nzd/Usd bounce from sub-0.6550 towards 0.6575 and latest Aud/Nzd retreat from near 1.1000, as he seemed to infer a preference for upping the balance sheet over conventional easing. However, the Aussie has also staged a firmer rebound vs its US counterpart to retest 0.7200 in wake of considerably less weaker than anticipated construction work completed during Q2. Similarly, the Yen has regained some poise between 106.55-17 parameters following firmer than forecast Japanese services PPI.
  • GBP/CAD – The Pound is pivoting 1.3150 against the US Dollar and outpacing the Euro as the cross dips a bit further beneath 0.9000, but Cable stopped just a handful of pips short of Tuesday’s best awaiting commentary from BoE chief economist Haldane for some specific inspiration. Elsewhere, firm oil prices could be keeping the Loonie afloat above 1.3200 rather than remarks from BoC’s Schembri on alternative policy measures including an average inflation target, as the spotlight switches to Senior Deputy Governor Wilkins this afternoon.

In commodites, WTI and Brent front month futures remain relatively uneventful but remain near 5-month highs as traders keep an eye on the Hurricane situation in the Gulf of Mexico. In terms of the latest update, NHC said Hurricane Laura is expected to rapidly strengthen to a Category 4 hurricane (out of 5 categories), and is forecast to produce a life-threatening storm surge, alongside extreme winds, and flash flooding over Eastern Texas and Louisiana later today. The hurricane is forecast to make landfall in late US hours. Meanwhile, the BSEE’s latest estimates note that ~84.3% of current oil production in the region has been shuttered in anticipation of the hurricane, whilst Shell resists shutting its Deer Park Texas refinery (275k BPD), Marathon Galveston Bay Texas refinery (571k BPD) reported a potential shutdown, Valero Port Arthur Texas refinery (395k BPD) was also ceasing operations and Citgo Lake Charles Texas refinery (428k BPD) announced also it was shutting ahead of Hurricane. Elsewhere, prices also remain propped up by the latest inventory figures – which printed a larger than expected drawdown of 4.5mln barrels vs. exp. 3.7mln barrels. WTI and Brent October futures are contained, with the former towards the bottom of its USD 43.20-47/bbl current range, and the latter sub-46/bbl having had printed a range of USD 45.76-46.10/bbl. Elsewhere, spot gold moves at the whim of the Buck but holds onto a USD 1900+/oz status within a USD 20/oz range. Spot silver similarly sees losses and reside below USD 26.50/oz, having touched a base at USD 26.150/oz. In terms of base metals, LME copper prices eke mild gains, with a similar performance seen in Shanghai, whilst stainless steel futures in Shanghai rose in excess of 1% amid supply shortages of nickel ore and ferronickel.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior -3.3%
  • 8:30am: Durable Goods Orders, est. 4.65%, prior 7.6%; Durables Ex Transportation, est. 2.0%, prior 3.6%
  • 8:30am: Cap Goods Orders Nondef Ex Air, est. 1.7%, prior 3.4%; Cap Goods Ship Nondef Ex Air, est. 1.75%, prior 3.3%

DB’s Jim Reid concludes the overnight wrap

Being in quarantine there’s not a lot to tell you this morning apart from the highlight of our week being the arrival of the supermarket delivery man yesterday. Even I downed tools to greet him as it was our first contact with the outside world for over a week. The poor delivery man was only too happy to escape after all the attention he got from 5 humans and a dog.

Luckily I have markets to escape to and in spite of some weak consumer confidence data from the US, equity markets climbed to fresh records stateside yesterday with both the S&P 500 (+0.36%) and the NASDSAQ (+0.76%) seeing a late day rally. Global bonds were more exciting even with a sell-off that reversed a bit in late European trading and the second half of the US session.

10yr Treasury yields were up +6.0bps at one point intraday, before settling up +2.9bps at 0.684% with both bonds and equities rallying in the back half of the session. In Asia 10yr USTs are back up another +2.5bps though and within touching distance of yesterday’s yield highs. This comes ahead of Fed Chair Powell’s much-awaited speech tomorrow at Jackson Hole in which he’s set to discuss the monetary policy framework review. It’s true to say that volatility in Treasury markets has been subdued by historic standards recently, with the MOVE index having reached a multi-decade low in late July, but since then the index has risen somewhat off the bottom, hitting a one-month high yesterday.

Over in Europe, the rates selloff was even more severe, with 10yr bund yields up +6.0bps in their largest one-day increase since late May, as OATs (+5.5bps) and BTPs (+8.2bps) also saw yields move higher. The sharp rise in European rates seemed to start with the German Ifo business climate indicator rising for a fourth straight month and ahead of expectations (more below). Also notable ahead of Powell’s speech was that 10-year inflation breakevens in the US hit a post-pandemic high yesterday of 1.704%, having last been at those levels in January. Back then 10yr Treasuries were 105bps higher than now at 1.73% so collapsing real yields have been the big swing factor.

Back to equities and the S&P has now traded within a relatively narrow 18-20 point range in each of the last three sessions. August has been a particularly quiet month for the S&P with only 2 sessions seeing a daily trading range eclipse 1% (1.08% and 1.64%). The index has not seen such low volatility since the market was reaching new highs back in February prior to the pandemic. Tech (+0.52%) and communication services (+0.97%) once again took the reins, after the previous day’s rotation into cyclicals. This was helped in particular by Facebook rising +3.47% on news that the company is adding a new e-commerce offering on its main app, aiming to benefit from the significant rise in online ordering during the pandemic.

The risk rally and bond sell off all occurred even as a poor consumer confidence reading from the Conference Board reminded investors that there’s still a long way to go before the economy returns to any kind of pre-Covid normality. The main reading fell to a 6-year low of 84.8 in August, as both the present situation and the expectations readings declined. Moreover, the differential between those saying jobs were “plentiful” and those saying they were “hard to get” saw a further deterioration, and that’s been a good indicator of the unemployment rate previously, so a concerning harbinger of future labour market performance.

Oil was another segment that saw sizeable price moves yesterday, as the incoming arrival of Hurricane Laura to the United States led to worries over potential fuel shortages. Both Brent crude (+1.97%) and WTI (+1.71%) rose to new post-pandemic highs of $46.02/bbl and $43.35/bbl respectively, as the National Hurricane Center warned that Laura would reach the northwestern Gulf Coast tonight, with the danger of life-threatening storm surges. Much of the oil production in the area has already been shut down, and there are obvious concerns of further damage to come.

Overnight the risk rally has stalled a touch in Asia with the Nikkei (-0.18%), Hang Seng (-0.21%), Shanghai Comp (-1.08%) and Kospi (-0.19%) all down. Meanwhile, futures on the S&P 500 are trading flat while those on the Nasdaq 100 are up +0.13%.

Before looking at the latest on the virus it’s worth noting a Reuters report from last night which highlighted that the US Treasury has determined that Vietnam’s currency was undervalued in 2019 by about 4.7% against the US dollar due in part to government intervention. This is the first assessment issued by the US Treasury under a new US rule that allows the Commerce Department to consider currency undervaluation as a form of subsidy when determining anti-subsidy duties and potentially increasing them. However, the assessment doesn’t necessarily mean that countervailing duties will get imposed by the commerce department but nonetheless should be a significant input.

Onto the coronavirus, attention continues to remain fixed on how leaders react to the current rising caseloads. Spain reported another 7,117 cases in the last 24 hours, though the PM has rejected the idea of another national lockdown. The weekly number of new cases in Germany has not been this high (9400) since the last days of April, while some countries like France and Italy have seen cases drop again slightly in the last 2 days. However you’ll remember that early week case counts often include a lagged weekend effect.

In efforts to help the German government and ensure that its operations will not have to be stalled again due to lockdown measures, Volkswagen has installed sites for voluntary testing across the country, with the largest one allowing 2400 tests per day and results within 24 hours. Germany also announced that the government would extend subsidies aimed at preserving jobs through 2021, after it was originally intended for 12 months. According to the Ifo Institute, 5.6m received benefits in July, down from 7m in May. Elsewhere Bloomberg has reported overnight that the UK government has asked staff and pupils in secondary schools in areas under possible local lockdowns to compulsorily wear masks from September 1 when moving around the building and in communal areas, but not in classrooms. In less risky areas, face masks will not be obligatory but schools will have the discretion to make it a requirement. In the US, Governor Cuomo of New York announced that 5 states would be removed from the 14-day quarantine requirement, including Arizona. New cases are continuing on an easing trajectory in the US with California and Florida adding to the positive trends.

In one of those strange side consequences of the virus, the Associated Press reported overnight that KFC is temporarily suspending its long-time tagline that its food is “Finger Lickin’ Good,” deeming it “the most inappropriate slogan for 2020” due to the pandemic.

Looking at yesterday’s other moves now, equity markets in Europe didn’t experience a great deal of movement for the most part, with the STOXX 600 (-0.30%), the DAX (-0.04%) and the CAC 40 (+0.01%) seeing mixed performance. Separately, the move out of sovereign bonds was reflected in the performance of safe havens more generally, with the Japanese Yen (-0.39% vs. USD) as the worst-performing G10 currency yesterday, whilst gold (-0.04%) and silver (-0.27%) prices also fell back. On precious metals, our colleague Michael Hsueh, wrote a report taking profit on his gold-silver ratio trade idea, seeing the ratio at “a point which might be consistent with complete normalisation in economic conditions to pre-Covid status.” For more see his piece here.

The other main data release yesterday was the aforementioned Ifo business climate indicator from Germany, which beat consensus expectations in August with an increase to 92.6 (vs. 92.1 expected). That makes it the 4th consecutive monthly increase since the trough of 74.4 back in April, though it still stands below February’s 95.8. Looking in more depth, expectations are now at their long-term average, with the August reading of 97.5 its highest since November 2018. On the other hand, the assessment of the current situation is at 87.9, which is well below its pre-covid levels (98.8 in February). The other German data release yesterday was a small positive revision to the GDP contraction in Q2, which is now estimated at -9.7% (vs. -10.1% previously).

To the day ahead now, and the data highlights include French consumer confidence for August, along with the preliminary July readings for US durable goods orders and nondefence capital goods orders ex air. Central bank speakers include the Fed’s Barkin, the BoE’s Haldane and the ECB’s Schnabel and Kazimir. Finally, Royal Bank of Canada will be releasing earnings.

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 43.84 POINTS OR 1.30%  //Hang Sang CLOSED UP 5.57 POINTS OR 0.02%   /The Nikkei closed UP 0.75 POINTS OR 0.01%//Australia’s all ordinaires CLOSED DOWN .49%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8909 /Oil UP TO 43.16 dollars per barrel for WTI and 45.74 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 6.8909 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8847 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING 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

This will not go over well with China;  trump is considering accusing China of “genocide” over the treatment of the Uighurs in NorthWest China

(zerohedge)

Trump Reportedly Considers Accusing China Of “Genocide” Over Treatment Of Uighurs

As the Trump Administration works to keep the flow of aggressive China-related headlines flowing across social media, Politico reported on Tuesday that the administration is weighing the possibility of labeling Beijing’s treatment of Muslim minority Uighurs a “genocide”.

Of course, for this label to have any real power or affect, it would have to be backed by the UN Security Council. And seeing as China has a permanent seat and veto power, the odds of this ever flying at the UN are virtual impossible.

Yet, the story – which will almost certainly elicit a rebuke from Beijing, and/or in the state-controlled press – also traces other more likely alternatives which highlight the fact that the Trump Administration is taking the issue of the Uighurs human rights’ violations at the hands of an unaccountable regime extremely seriously.

The contrast is clear: Trump is fighting to preserve America’s status as a bastion of liberty in the eyes of the world, while white educated college students work with criminals and other misguided ‘radicals’ to undermine order and confidence in the US, arguing that Trump’s election was such an “affront to Democracy”, that nothing he says or does makes any difference.

Here’s Politico:

The United States is weighing formally labeling China’s brutal repression of ethnic Muslim minority Uighurs a “genocide,” two Trump administration officials said.

Activists and lawmakers have been pushing for the genocide designation in recent months, but mere consideration of the possibility by the U.S. government could further damage badly frayed ties between Beijing and Washington. It also comes in the heat of the 2020 presidential campaign, in which the two sides have jousted over which candidate would be tougher on China. A spokesperson for Joe Biden noted that the former vice president supports the label — a factor that could influence President Donald Trump’s calculations.

The discussion, which reportedly involves several executive branch departments along with the NSC and White House, is still reportedly in its “early stages”.

The internal administration discussions are still at the early stages, involving working level officials at the State Department, the National Security Council and the Department of Homeland Security, according to the administration officials who spoke to POLITICO on condition of anonymity. If there’s not enough consensus to use the term genocide, the administration could instead accuse the Chinese leadership of other atrocities, such as “crimes against humanity” or “ethnic cleansing.”

White House national security adviser Robert O’Brien has accused China’s communist leaders of running “concentration camps” for Uighurs in Xinjiang, a northwestern province home to millions of Uighurs. A member of a United Nations human rights panel said in 2018 that China had “turned the Uighur autonomous region into something that resembles a massive internment camp,” where people are held without charge and little recourse to get legal representation to be released. More than a million Uighurs are believed to be held in such facilities.

Uighur rights groups have accused the Chinese government of torturing many Uighurs, forcing Uighur women to get abortions and be sterilized, feeding some detainees poorly and trying to wipe away their distinct ethnic culture, including forcing many to denounce Islam and chant Communist Party slogans. Beijing also uses extensive surveillance technology to track Uighurs.

Genocide declarations are rare, legally tricky and highly politically sensitive. U.S. officials have at times tried to avoid such declarations in the past, not least because, in theory, international law would compel some sort of American intervention — though not necessarily the military kind.

Given that Politico isn’t a frequent venue for insider scoops from the administration, it’s possible that whoever leaked this story might have an axe to grind against Sec of State Mike Pompeo. Perhaps it’s a crusading bureaucrat frustrated with the secretary’s realpolitik approach.

NSC spokesman John Ullyot also didn’t address the genocide discussion but did say in a statement: “The Chinese Communist Party’s atrocities also include the largest incarceration of an ethnic minority since World War II. Where the previous administration and many other world leaders delivered speeches and empty rhetoric, President Trump has taken bold action.” A DHS spokesman declined to comment.

The term “ethnic cleansing” isn’t found in international law, so it’s effectively meaningless. But the US has used it to denounce ethnic violence in the past. For example, the Trump White House has already used it to denounce the persecution of Rohingya Muslims in Myanmar by the government run by Nobel Peace Prize Laureate Aung San Suu Kyi. Apparently, Sec of State Mike Pompeo has pushed back on labeling the persecution of Rohingya a genocide for fear that it would drive Myanmar closer to Beijing.

But even Politico has a hard time reconciling Trump’s unwavering support for Uighers, a Muslim minority group in a region that is no stranger to terror, with the allegations of “Islamophobia” frequently lobbed at Trump and his administration.

Unsurprisingly, we haven’t seen this story picked up by CNN, or any other mainstream media orgs.

end

China vs USA

USA seems intent on provoking China: they just sent in a U2 spy plane as it entered into their “no fly zone” during PLA live firing drillls

(zerohedge)

China Blasts US ‘Naked Provocation’ After U-2 Spy Plane “Entered No-Fly Zone” During PLA Drills

In the latest tit-for-tat South China Sea saga, China has denounced the United States, lodging “stern representations” with the US embassy, over Pentagon attempts to spy on live-fire military drills over what Beijing claims is its sovereign airspace.

Specifically, according to Reuters, the US is charged with “sending a U.S. U-2 reconnaissance plane into a no-fly zone over Chinese live-fire military drills on Tuesday, further ratcheting up tensions between Beijing and Washington.”

 

US Lockheed U-2 reconnaissance plane, file image.

China’s Defense Ministry called the unpermitted U-2 flight an unsafe threat which constitutes “seriously interfering in normal exercise activities”.

The statement hinted at a threat as well, saying an “unexpected incident” could have easily resulted, which presumably means the spy plane may have been targeted as “drills” could have rapidly transitioned to becoming fully operational under a perceived US threat.

“It was an act of naked provocation, and China is resolutely opposed to it, and have already lodged stern representations with the U.S. side,” the Defense Ministry added.

 

AP file image of prior PLA Navy live-fire drills in East China Sea.

“China demands the U.S. side immediately stop this kind of provocative behaviour and take actual steps to safeguard peace and stability in the region,” the statement said.

China Fires Two Missiles Into Sea As “Warning To US” In Huge Escalation Following Spy Plane Breach

Chinese media and regional sources are reporting what appears to be the biggest provocation yet amid the months-long US-China ratcheting tensions in the South China Sea.

“China launched two medium-range missiles into the South China Sea on Wednesday morning, a source close to the Chinese military said, sending a warning to the United States,” The South China Post reports in a major breaking development.

The launch is said to be in response to the major incident from Tuesday, wherein China’s PLA military angrily denounced that a US U-2 spy plane allegedly entered a ‘no-fly zone’ off China’s coast while the PLA conducted live-fire military drills. It was unclear exactly where the claimed breach of airspace happened, however.

 

Illustrative file image of Chinese cruise missile launch, via Sino Defense.

Later reports suggested the spy plane was caught seeking to observe PLA drills in the Bohai Sea off China’s north coast.

The SCMP details further of the deeply alarming “warning” missile launch, citing unnamed Chinese military sources:

One of the missiles, a DF-26B, was launched from the northwestern province of Qinghai, while the other, a DF-21D, lifted off from Zhejiang province in the east. Both were fired into an area southeast of Hainan province and the Paracel Islands, the source said.

The landing areas were within a zone that Hainan maritime safety authorities said on Friday would be off limits because of military exercises from Monday to Saturday.

Needless to say this “warning” takes things to a whole new level.

“This is China’s response to the potential risks brought by the increasingly frequent incoming US warplanes and military vessels in the South China Sea,” a military source told SCMP“China doesn’t want the neighboring countries to misunderstand Beijing’s goals.”

 

China claims a U-2 spy plane breached sensitive airspace during a PLA live-fire drill this week, illustrative file image.

After all, following the Tuesday incident Beijing in a veiled threat said an “unexpected incident” could have easily resulted over the US spy plane operation.

This presumably means the spy plane may have been targeted as “drills” could have rapidly transitioned to becoming fully operational under a perceived US threat.

end

Very worrisome

(zerohedge)

SpaceX’s NASA Contracts Called Into Question After Legislators Finally Wake Up To Musk’s China Ties

It turns out the proverbial “deal with the devil” that Elon Musk has made between Tesla and China (a relationship we have called into questions many times, including here and herecould finally be coming back to bite Musk.

It appears that congressional negotiators are starting to take notice of just how cozy Musk and China have becoming over the last few years – and some of them are now “considering whether NASA contracts awarded to Elon Musk’s SpaceX represent a potential national security risk” as a result, according to the Washington Examiner.

Let us spoil the inquiry for them: yes. But now, it seems like it’s not just us that understands this.

A congressional Republican aide involved in NASA negotiations was quoted as saying:

“What is there to stop them from going to Musk directly and saying, ‘We’ll call your line of credit early, unless you give us X, Y, or Z?’ And, there’s no real clarity that there’s any kind of mechanism that would stop that other than good behavior by an individual.”

The question comes at a time of heightened tension between the U.S. and China. In addition to contentious trade negotiations last year, the China-induced global pandemic and questions about ongoing IP theft have kept the Trump administration on guard against potential threats out of China.

Colorado Sen. Cory Gardner said: “I’m concerned that companies in China could come into the U.S., make a sweetheart deal, take sensitive information, take proprietary technologies, and use it to enrich their own space program, their own national security efforts in China.”

Garnder has suggested that “the Government Accountability Office review NASA contractors for potential ties to China” and that NASA leaders take into account ties to China when awarding contracts. “The level of concern I’m hearing from companies who are in the U.S. and are concerned about this is alarming,” Gardner concluded.

Should Garner’s proposals gain traction, they could disproportionately affect SpaceX, due to Musk’s financial involvement with the Chinese government. Tesla secured a $1.4 billion credit line from state owned banks in December, the article notes.

An aide commented: “The thrust of that is obviously self-interested because they’re competitors, but it doesn’t mean that it’s not a valid concern. It’s sort of a classic dynamic, right? An established provider, an established interest, that is challenged by an upstart interest … if there was no SpaceX, ULA would love it because ULA would get more contracts. That doesn’t mean that the question isn’t worth asking and answering, though.”

The aide argued that it isn’t just Musk’s companies that are being targeted. “There are at least seven aerospace companies that have some element of Chinese investment that would raise red flags, like Tencent,” they said. Some in congress think that Gardner’s proposals are too vague to implement.

 “I look at these provisions as pretty commonsense protections of our space programs and space technologies,” Gardner said. His team seeks to have malefactors banned from NASA contracts for at least a year and then giving NASA the opportunity to extend that ban for as long as 10 years.

A space industry executive concluded: “You live by wrapping yourself in the flag, you die by wrapping yourself in the flag sometimes. Elon is just having his own tactic used against him. And I promise you that if Elon could find his own Chinese angle to use against ULA, he’d do it.”

Recall, we were months ahead of this story when, back in April, we asked whether or not Musk risked becoming a Chinese asset due to his close ties and financial dependence on the communist country.

end

CHINA-USA

China USA relations through the eyes of Michael Every.

Michael Every…

US-China Relations & Believing That ‘Pigs Can Fly’

Authored by Michael Every via Rabobank,

“It’s Still Good! It’s Still Good!”

Many years ago there was an episode of The Simpsons where Homer decides to roast an entire suckling pig, apple in mouth and all. He even invites over the neighbours to enjoy his culinary triumph, the “Pig de resistance”.

A toast to the host who can boast the most roast!” says Ned Flanders. This all infuriates his vegetarian daughter, Lisa, who takes the lawnmower and pushes the entire pig, which is on trolley, out of the garden, up a steep hill,…and then let’s gravity go to work. The pig rolls down the hill and crashes at speed through a hedge.

It’s a little dirty. It’s still good! It’s still good! cries Homer, running after it. Then the pig goes off a bridge and into the river.

It’s just a little slimy. It’s still good! It’s still good! cries Homer from the bridge. Then the pig gets sucked into a drainage hole in a dam, pressure builds up behind it, and it goes flying through the air like a missile on the other side.

It’s just a little airborne. It’s still good! It’s still good!” bewails Homer.

It’s gone,” says Bart.

I know,” concedes Homer.

In the top-floor office of the Springfield nuclear power plant, Mr Burns looks out at the vista and says: “You know Smithers, I think I will donate one million dollars to the local orphanage….when pigs fly.” Both cackle. Then the suckling pig flies past the two stunned men.

Will you be donating that million dollars now, Sir?” asks Smithers.

No, I’d still rather not,” replies Burns.

Frankly, the above is as good a description of the US-China phase one trade deal as I can think of (as well as of the general attitudes of the very wealthy). The deal was, on paper, a feast for the US – lots and lots more NET exports to China, promises on other areas of contention, and a monitoring mechanism.

However, even if Covid-19 hadn’t pushed it down the hill, the underlying US-China dynamic would have anyway. The US and China and the market commentariat may be echoing Homer –“It’s still good! It’s still good!”– but this particular trade deal is already in the hole in the dam with water pressure building up behind it. It just hasn’t been violently ejected the thing into the air…yet.

Of course, this is not a new view here. Yet it was further underlined by everything written about China written in the 50-point Trump agenda yesterday, which involves bringing jobs home using tariffs and taxes; it is underlined by the continued US crackdown on Huawei, for example – unless we presume other Chinese firms are going to be lining up to buy semiconductors from the US instead(?); and it is very much underlined by Politico reporting that the White House is considering officially designating China’s treatments of its Uighur minority as genocide, which is about as inflammatory an accusation as one can make – and a Biden campaign spokesperson has already used exactly that term.

Meanwhile, from the Chinese side, The Asia Times’ perpetual Belt-‘n-Roader Pepe Escobar gives a selective reading of the political tea leaves that highlights the following (my comments added):

  • Beijing won’t shut US businesses operating in China, but new companies wanting to enter the market in finance, IT, healthcare and education services will not be approved (i.e., decoupling).
  • Beijing won’t dump its US Treasuries (which would be impossible anyway) but is going to sell as much as USD200bn in 2020 (which means nothing at all for Treasuries as someone else will be happily buying them, but makes one wonder what China will be buying…and selling; not to the US and earning USD, presumably?)
  • CNY internationalization (which is not happening) will be accelerated, including clearing USD through the CIPS system to mitigate any ban on using SWIFT. (Except the US controls the USD and can tell everyone if they use CIPS then they can’t use USD in SWIFT.)
  • The PLA has been put into Stage 3 alert: all leave has cancelled for the rest of 2020; defence spending will rise to 4% of GDP; and more nuclear weapons will be produced. (Which will raise US-China tensions, is hideously expensive, and will push the fiscal deficit deeper into the red, while dragging the current account in the same direction.)
  • Chinese is stressing self-reliance and “dual circulation” to focus on its internal market. (Which means they need higher wages for higher spending, which means a loss of export competitiveness and a current account deficit and no self-reliance; unless China decouples from the world.)
  • The consolidation of the Eurasian integration project in parallel to a global CNY (e.g., economic powers like Belarus?)

In short, China appears determined to go its own way at its own pace, and even if the strategy it publicly suggests it will use to do so is not adequate given the potential pressure points the US can use against it, then it appears Beijing is more likely to adapt than concede. Such adaptation is very unlikely to meet the terms of the US-China phase one trade deal.

Right now, the answer is yes. However, the water (read: political) pressure is building, and when the time is right for either side… POP!!

The only way to see that isn’t the case is to believe that pigs can fly. Which, oddly enough, seems to be prevalent among many of Mr Burns’ friends in Wall Street, and those buying CNY at 6.90.

4/EUROPEAN AFFAIRS

CORONAVIRUS UPDATE/FRANCE/INDIA/IRAN//GLOBE

(zerohedge)

France Imposes New COVID-19 Restrictions In Marseilles; Delhi Outbreak Intensifies: Live Updates

As the coronavirus outbreak continued to slow in the Sun Belt, and across the US (even the northeast is seeing new lows in hospitalizations related to the virus), our attention drifted back to India and the Middle East on Wednesday, and Europe as well.

Iran’s death increased by 119 on Wednesday to 21,020,  surpassing 21,000, according to health ministry spokeswoman Sima Sadat Lari, who told state TV the total number of identified cases had risen to 365,606, after 2,243 new cases were counted in the past day, up from 2,213 a day earlier.

Lari added that 2,243 new cases were identified in the past day in Iran, rising from 2,213 a day earlier.

“Unfortunately we have been facing a surge in coronavirus infections in recent weeks. I urge everyone to avoid unnecessary trips,” Lari said.

We imagine Iran’s neighbors would prefer Iranians to stay home, too.

It’s not Oxford/AstraZeneca, but the University of Cambridge, which is running its own vaccine project, has some news on Wednesday: it’s due to start vaccine trials in the coming months after securing government funding for the project. Speaking of the British Government, PM Boris Johnson reiterated his stance on children returning to school on Wednesday by saying that staying home would do them “more harm” than returning to school and risking  a spike in coronavirus infections.

UK Education Secretary Gavin Williamson defended the Johnson government’s overnight U-turn on mandatory face masks in secondary schools, after declaring last night that headmasters would have the leeway to decide whether to require pupils to wear them.

“What we’ve always said…this would be something that we’d keep under constant review,” Gavin Williamson told Sky News. “Then when we issued the further guidance for the full return of schools in early July, again we emphasis the importance of keeping this area under review.”

As if Myanmar’s long-suffering Rohingya Muslim minority hasn’t suffered enough, Myanmar health authorities reported the country’s largest recorded spike in new COVID-19 cases on Wednesday. Most of the cases were recorded in Rakhine State, where much of the persecuted Rohingya population lives in densely populated camps.

In India, Delhi continues to struggle from a new rise in coronavirus cases despite surveillance data showing that 30% of the city’s residents may have already been infected with the virus.

However, this latest outbreak comes weeks after what appeared to be a successful effort to slow the spread.

Delhi reported 1,544 new cases on Tuesday, taking the city’s tally to 164,071. The city currently has 11,998 active cases.

Over the past day, 1,155 people have recovered, bringing the total to 147,743 patients who have recovered in the city so far. Delhi reported 17 new deaths bringing its death toll to 4,330.

After issuing new travel advisories targeting fellow EU members, Germany on Wednesday said it would scrap mandatory free coronavirus tests for returning travelers, a measure introduced earlier this month. Citing capacity constraints at its laboratories, Germany said the policy had been enacted hastily as a spike in new cases stoked fears of a comeback that has yet to emerge, though daily case totals remain elevated. Rules about mandatory quarantines for travelers, however, will remain in place.

Elsewhere on the Continent, bars and restaurants in and around Marseille will be forced to close at 11 pm local time starting Wednesday night and the obligatory wearing of masks will be extended to the entire city in France’s latest attempt to quell a recent upswing in new cases that has focused on the country’s two biggest cities, Paris and Marseille.

More than 23.9 million people around the world have been diagnosed with the coronavirus, and 15.5 million have recovered. More than 819,000 have died, according to data from Johns Hopkins University.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/GREECE

(Gatestone/Bulat)

Are Turkey And Greece Heading For War?

Authored by Uzay Bulut via The Gatestone Institute,

The Greek Armed Forces are on high alert on land, sea and air, closely monitoring Turkish movements in the Eastern Mediterranean, according to Greek media. After Turkey last month restarted prospecting for oil and gas in an area overlapping Greece’s continental shelf, Greece deployed warships between the islands of Cyprus and Crete. Since then, tensions have run high between Turkey and Greece.

On August 12, Greek Prime Minister Kyriakos Mitsotakis warned about the possibility of an “accident” in the Eastern Mediterranean. Greek and Turkish naval forces deployed in the area after Ankara sent a vessel to conduct seismic research south of Kastellorizo.

“The risk of an accident lurks when so many naval forces gather in a limited area, and responsibility in such a case will be borne by the one who causes these conditions,” Mitsotakis said in a televised address.

Turkey has threatened to invade the Greek islands in the Aegean since at least 2018. A recent Egyptian-Greek maritime deal appears to have escalated Turkey’s regional aggression.

The maritime deal, which was signed on August 6, set the Mediterranean Sea boundary between Egypt and Greece. It also demarcated an exclusive economic zone (EEZ) for oil and gas drilling rights. The Egyptian-Greek move was widely seen as a response to a disputed agreement between Turkey and Libya’s Tripoli-based administration, according to the newspaper Kathimerini.

Meanwhile, Turkey has been systematically violating the territorial waters of Cyprus and Greece. In May, the foreign ministers of Egypt, France, Cyprus, Greece and the UAE issued a joint declaration “denouncing the ongoing Turkish illegal activities in the Cypriot Exclusive Economic Zone and its territorial waters, as they represent a clear violation of international law as reflected in the United Nations Convention on the Law of the Sea.”

On May 15, the European Union announced that it “condemned the escalation of Turkey’s violations of Greek national airspace, including overflights of inhabited areas, and territorial sea, in violation of international law.” But the condemnation has not stopped the violations by Turkey. On August 5, for instance, eight Turkish military airplanes carried out a total of 33 violations of Greece’s national airspace over the course of one day, Greek military authorities said.

After the deal between Greece and Egypt, Turkey again deployed a seismic research vessel to prospect for potential oil and gas reserves within Greece’s continental shelf. Greece has again placed its armed forces on high alert. Warships were sent to the spot between Crete and Cyprus, demanding the vessel’s withdrawal.

Turkey’s president Recep Tayyip Erdogan, however, continues defying Greece and Cyprus. On August 14, referring to Greece and other Western states, Erdogan said:

“They sent all terrorist organizations against us. We gave our response to these attacks in the language they understand through our operations in northern Iraq, Syria, Libya, and the Eastern Mediterranean. We gave [an answer] today too! We told them, ‘Look, don’t attack our Oruç Reis vessel. If you attack it, you will pay a heavy price’. And today they got the first answer.”

“No colonialist power,” Erdogan said on August 19, “can deprive our country of the rich oil and gas resources estimated to exist in this region.”

Turkey is a colonialist power that has been occupying Northern Cyprus since 1974. The Turkish government does not recognize the Republic of Cyprus as a state, and claims 44% of the Cypriot exclusive economic zone (EEZ) as its own. Another sizable section of that zone is claimed by the so-called “Turkish Republic of Northern Cyprus” in the island’s occupied north — recognized only by Turkey.

“Turkey has adopted a revisionist policy in the Eastern Mediterranean,” Dr. Giorgos Kentas, Associate Professor of International Politics and Governance at the University of Nicosia, said in an interview with Gatestone.

“Turkey’s policy is part and parcel of a broader strategy to expand Turkey’s influence in the Middle East, the Gulf, and Africa. The aim is to impose geopolitical dominion: an undisputed regional hegemonic regime whereby Turkey is be able to determine big and important developments. That revisionist policy is pursued by a mixture of soft and hard power instruments.

“With regard to Greece and Cyprus, Turkey clearly maintains an offensive posture. It appears willing to use military force in order to impose its revisionist plans. For almost two decades now, Turkey (under the leadership of Erdogan) has been developing a strategy to dominate over large maritime zones. [This] strategy is known as the ‘blue homeland’. It begins from the Black Sea and extends through the Aegean Sea towards the maritime zones of Libya, Egypt, Israel, and Syria. Turkey believes that Cyprus and Greece must voluntarily submit to the parameters of the blue homeland, otherwise they must face the consequences of its military might. Turkey plans against Greece and Cyprus under a strategic doctrine of a unified front.

“As of the early 2010s, Turkey started an illegitimate program of seismic surveys in the maritime zones of Cyprus, supported by considerable aeronautic forces. In May 2019, Turkey launched an offshore drilling program in Cyprus’ EEZ. So far it started and/or completed 7 drillings, at least one in Cyprus’ territorial waters. Turkey has actually de facto extended its military occupation of Cyprus from the land it occupies as of 1974 to island’s maritime zones. All that went mostly unanswered with the exception of some statements by third states and some symbolic sanctions by the EU.

“Turkey is currently attempting a similar policy of revisionism against Greece. The aim is to impose a hegemonic regime over Greece’s maritime zones and/or maritime zones that Greece claims in Eastern Mediterranean.

“Turkey has developed the military might, and acquired the means, to challenge and revise the geopolitical momentum created by a series of delimitation agreements between Cyprus, Egypt, Lebanon and Israel. [Turkey] also undermines the hydrocarbon program of Cyprus. Greece now tops the agenda of Ankara in the framework of the blue homeland dominium.”

According to Harris Samaras, an expert on the Cypriot EEZ and chairman of the international investment banking firm Pytheas, Turkey’s foreign policy in eastern Mediterranean is largely an extension of its Islamist domestic policies.

“Turkey is an authoritarian country increasingly shaped by ultranationalist and Islamist forces,” Samaras told Gatestone.

“Inspired by the 1979 Islamic Revolution in Iran, Erdogan and his Justice and Development Party (AKP) have pursued policies that furthered the Islamization of the country, promoting religion, fundamentalism, and limiting individual freedoms and rights. Turkey globally supports Islamism and jihadism as in the cases of ISIS, Hamas, Boko Haram, al Qaeda and the Iranian regime, among others. It is thus accurate to state that Turkey is today among the most anti-American and anti-European countries in the world. It operates as a polarized engine of religious radicalism with a global reach.”

According to Samaras, there are three main causes of Turkey’s aggression towards Greece and the general Turkish jingoistic behavior in the Eastern Mediterranean:

“1. Erdogan desires to lead the Islamic world, a project aimed at fulfilling his ambitions – and better regional supremacy complexes – to seize the Muslim world’s political leadership legitimated by consciously assuming the mantle as successor of the ‘glorious’ history of the Ottoman empire. ‘Turkey’, as Erdogan has repetitively stated, ‘is a continuation of the Ottoman Empire’. This infers that as its leader, Erdogan is analogous to the Caliph. Note here the similarities with statements by ISIS leaders.

“2. While the vast majority of European and US leaders from all parties, including the intelligence community and the Pentagon, recognize the reality of Turkey, certain EU leaders, US diplomats and appointees continue to apologize for and rationalize Turkish behavior. They dilute measures to hold Turkey to account. Their denial of evidence about Turkey’s regional malfeasance not only weakens the West and its credibility, but also benefits Russia, Iran and terrorism.

“Furthermore, and over and above, those elements who intentionally turn a blind eye to Turkey’s violations of the Rule of Law not only encourage Erdogan to intensify his bullying and jingoistic policies, but also pressurize Greece (like they do with Cyprus) to strike an energy and sovereignty ‘sale’ deal. This is contrary to international law and an attempt to delaying to convicting Turkey, eventually justifying its atrocities.

“3. Erdogan’s (and his AKP) popularity has slumped to the lowest level ever since his autocratic reign. This is a result of his systematic power grabbing, nepotism and corruption. The economy for one is in dire straits. Theatrics like the one with Hagia Sophia and the gunboat diplomacy in the Eastern Mediterranean, as well as bursts about the ‘tyrannical’ EU and Israel, are ‘required’ to direct the interests of his polarized compatriots elsewhere and away from the misery his foul administration has inflicted. Wrapping himself in a cloak of patriotism is part of Erdogan’s agenda and his regime’s propaganda narrative.

“Erdogan, however, is now anticipating that Chancellor of Germany, Angela Merkel, his best ally and in many ways his ‘accomplice’, will compel Greece into discussions. He is hoping that under Germany’s pressure Greece will ‘conform’ to selling part of its sovereignty. However, the Western world has to face and address the Turkish reality, the strategic reality that any possibility of a Western-leaning Turkey is gone.”

“Turkish aggression against Greece is really nothing new,” Anna Koukkides-Procopiou, a Senior Fellow and Member of Advisory Board of the Center for European and International Affairs of the University of Nicosia, told Gatestone.

“For example, there have been myriads of air space violations in recent years. Turkey is just taking everything to a different level nowadays. This gradual tension spiral, first, aimed at testing the waters, both literally and metaphorically. But Greece has proven it will not go quietly, despite Turkey trying hard to set a maximalist agenda on its own terms, before negotiations ensue at some point. Turkey considers her use of force both a carrot and a stick for Greece to succumb to its claims.

“Second, there is no doubt that all the neo-Ottoman, anti-Lausanne rhetoric which Erdogan and his ministers have been making good use of should be taken seriously. It is part and parcel of a hegemonic bid to master regional leadership, as well as an attempt to woo audiences at home. An authoritarian ruler reigns by bread and games. Bread seems to be running out in Turkey at the moment, so there also needs to be a focus on games.”

As for what the Europe and the US should do in the face of continued Turkish aggression, Procopiou said:

“There has been enough talk and little action. If Europe and the US are serious about halting Turkey’s aggression, they need to show that they mean business. Europe keeps feeding Erdogan money while he is making a spectacle of democracy, international law and human rights. [These are] fundamental values which the European Union supposedly stands for.

“In essence, Erdogan has been ridiculing the EU, NATO and the US with zero consequences. Why should he stop? If the only reaction he gets is a shamble of a sanctions list in Europe – with only two inconsequential individuals’ names on that list – and no enforcement of the American CAATSA [The Countering America’s Adversaries Through Sanctions Act], he is taking everyone for a ride. So, we could begin at least with that. The Turkish economy found itself on its knees last time US President Donald Trump cared to send Erdogan a message over the arrest of American Pastor Andrew Brunson. What is keeping President Trump from doing that now?”

end
SYRIA/RUSSIA/USA
Close call!! USA troops injured after Russian chopper and vehicles give chase to an American convoy in North east Syria. where the uSA is guarding the oil
(zerohedge)

US Troops Injured After Russian Chopper & Vehicles Gave Chase To American Convoy In Syria

Dramatic video which emerged Tuesday shows the latest “close call” between US, Russia, and Syrian national forces who are jostling for control of northeast Syria, after a prior incident resulted in a rare exchange of fire at a Syrian Army checkpoint, killing two Syrian soldiers.

The Pentagon is reporting multiple US troops injured with what are being described as “concussion-like injuries” as a result of collisions with Russian armored vehicles.

The footage is being widely reported as showing Russian Army vehicles and even a chopper giving chase to an American armored convoy in northeastern Syria.

And further videos, one apparently taken from one of the Russian vehicles, confirm that Russian military forces were involved.

The close-up view reveals just how close the two rival parties were during the standoff, further suggesting they were a single gun shot away from a direct battle.

And here’s the account of Beirut-based al-Masdar News, which is known for having reporters on the ground and sources within the Syrian Army:

The Russian army was filmed on Tuesday, chasing U.S. military vehicles traveling through the Al-Hasakah countryside in northeastern Syria.

According to field reports from northeastern Syria, Russian army vehicles, along with one of their choppers, was seen chasing U.S. military vehicles near the border-city of Al-Malikiyah in the eastern part of Al-Hasakah.

At least two videos of the incident were released on Wednesday, both showing the Russian army attempting to intercept the U.S. military vehicles in the Al-Hasakah countryside.

This latest incident underscores that though the Syria conflict has long been out of international headlines and media coverage, the potential for superpowers entering direct conflict there remains high as ever.

6.Global Issues

An important read..

Egon Von Greyerz…

Von Greyerz: Major Central Banks “Have Totally Lost Control”

Authored by Egon von Greyerz via GoldSwitzerland.com,

Space Oddity & Helicopter Money

“Ground control to Major Tom … Your circuit is dead, there’s something wrong. Can you hear me Tom. Can you here me Tom….Tom: “I am floating around in my tin can and there is nothing I can do.” (David Bowie)

Yes, Ground Control in the form of the major central banks have totally lost control and the world economy is now floating around helplessly without direction. Since the end of 2006, the major CBs (Fed, ECB, BOJ & PBOC) have increased their balance sheets from $5 trillion to $25.5t today. The great majority of the extra $20t created since 2006 has gone to prop up the financial system.

And even with these $20t the world economy is more rudderless than it has ever been. Clueless CBs are doing what we had expected them to do which is doing the only thing they know – namely printing endless amounts of money that has zero value since it is created out of thin air. But the CBs money creation is just a small part of the problem. On the back of CB’s $25t balance sheets, global debt has exploded from $125t in 2006 to $280t today.

None of this colossal extra debt has benefitted ordinary people. It has propped up the banks and made the gap between the haves and the have-nots dangerously high. In the US for example 10% of the population hold 70% of the wealth. No wonder that we are seeing an increasing number of protests and riots. And as the economy deteriorates the violence is sadly going to increase substantially.

SPACE ODDITY

So what is the destiny of this Space Oddity (name of Bowie’s song above) with not only central banks having lost control of but also governments?

We can just take the US as an example since it is the biggest economy in the world and also the most vulnerable. But many countries are in the same situation.

Here are some of the areas which neither Trump nor Biden will come to grips with:

  • CV-19 – Man made virus paralysing the world, no effective vaccine for long time, if ever
  • Economy – The precipitous fall is more likely to accelerate than recover
  • Industry – Will contract rapidly and also trade
  • Asset bubbles – Stocks, bonds property will crash, massive wealth destruction
  • Dollar – Will implode leading to hyperinflation
  • Deficits – Will accelerate for years to support economy, people & financial system
  • Debts – Will surge to 200% of GDP quickly, much higher when banks collapse
  • Unemployment – 20-30% will be the floor, higher likely
  • Social unrest – Only beginning now, much more to come with empty stomachs
  • Civil war – Government can’t cope with protests now, risk of escalation major
  • Pensions – Will disappear as asset markets collapse, most people don’t have pension
  • Social security – Will be insufficient with bankrupt government and hyperinflation
  • Political turmoil – No party or leader will be trusted – not even coming Marxists

The problems are endless and all of the mess above has been created by humans, even Covid-19, so we are looking at a world falling apart due to human failure and mismanagement – not that this is new in history.

SOUND MONEY

Anyone who understands sound money cannot seriously believe that the explosion of debt since 1971 (when Nixon closed the gold window) will end well.

One of the most important attributes of sound money is that it must be scarce. The explosion of money supply and debt since 1971 proves what happens when money is infinite. The Keynesians and MMT (Modern Money Theory) followers believe that money can be pulled out of a hat like a rabbit. And for 50 years they have got what they asked for without understanding the consequences. Because for every wilful action, there are always serious consequences.

For 50 years, unlimited paper or fiat money has been created without any service or goods produced in exchange. Since 1971, total US debt has gone from $1.7t to $78t. In the same period, prices for houses, goods and services have exploded but most consumers are not aware of this since it is a slow process. As the chart below shows, debt has surged 46x in 1971-2020 whilst GDP is up only 18x. So the US economy is running on empty as more debt is required to raise GDP.

As the money created to expand the economy is fake, the increase in GDP is not either but just an inflated figure due to chronic currency debasement.

SOUND MONEY MUST BE SCARCE

The creeping inflation that the US and most of the world has experienced for half a century is best illustrated in the debasement of currencies.

Since sound money must be scarce, fiat money can never be sound since unlimited amounts can be and have been created. One of the very important features of gold is that it is scarce. The total global gold stock only increases by 1.7% or 3,000 tonnes per annum.

So scarcity is one of the important reasons why gold is the only currency that has survived in history. If we look at the gold price in US dollars since Nixon abandoned the gold backing of the dollar in 1971, the dollar has lost a staggering 98%.

Only in this century, the dollar has lost 85% against real money or gold. There is no better proof of the total failure of the policies of the Fed and other CBs than the destruction of the currencies.

END OF THE END

The world has now entered the final phase or the end of the end of this economic era which started in 1913 with the creation of the Fed. The beginning of the end was 1971 with Nixon’s fatal decision. The very final phase started in August 2019 when the ECB and the Fed told the world that the financial system is bankrupt. They didn’t quite use those words but their semi-veiled language and especially actions were crystal clear for once.

Trouble in the financial system meant that the Fed and the ECB would do whatever it takes and this is what they have done for the last 6 1/2 months. Total asset of primarily the Fed and the ECB have gone up by $6t since Aug 2019.

But this is just the mere beginning. With first a bankrupt financial system, an extremely weak world economy and a pandemic on top of that, the Fed and the ECB are totally lost. They are continuing to throw petrol on the fire as if that would solve the problem. But instead of extinguishing the inferno, they are just making it bigger and more dangerous by the day.

DISCONNECT IS COMING TO AN END

The directionless world economy is unlikely to continue to drift endlessly whatever CBs do. On the surface these banks are under the illusion that the world has confidence in them since stock markets continue to defy reality. The disconnect with the real economy continues to get bigger by the day. And the implosion of markets and the world economy are not far away.

Just look at the Nasdaq which is now more than 10x!! higher than the 2009 low. It seems that investors believe that the world will just sit at home on benefits and play with their iPhone and iPad, buy things from Amazon they don’t need and then watch Netflix shows all day.

But even if they do, with 30% unemployed in the US they are hardly in a position to support the stupendous valuations of these companies. Netflix is valued at $217 billion with an 83 p/e. It has an infinite multiple of free cash flow since that has been negative to the extent of $11 billion in the last 5 years. Amazon is valued at $1.6 trillion with a p/e of 126! Many other companies are on p/e’s that guarantees a coming crash soon.

The US government will need to extend the unemployment benefits in perpetuity in order for these companies to justify the current valuations. But not even that will be enough.

INFLATE AND DIE

The legendary Richard Russell coined the phrase “Inflate or Die”. We have sadly gone past that point and the world economy is more likely to experience INFLATE AND DIE. But it is not just about inflating or printing money to subsidise the unemployed or ailing companies. The next big phase of QE will be to prop up the financial system on a much bigger scale.

Neither companies nor individuals will be in a position to service or repay loans in coming years. Nor will be the government, states, municipalities etc. Instead everybody will need more debt to survive.

Credit losses for the banks will be astronomical. Even with current low interest rates, bad debts are increasing rapidly. And most banks have most certainly not yet recognised the problem adequately. The 15 largest US banks have so far set aside $76b to cover bad debts and the 32 biggest European banks €56b.

This is the highest loan provision since the 2006-9 crisis which brought down Lehman and Bear Stearns. The consultants Accenture estimates that losses from bad debts could rise to $880b by the end of 2022. That would be 2.5x the 2009 loan provisions.

But I doubt that banks have realised the magnitude of the current economic problems. Central banks clearly see the risks. Otherwise they wouldn’t have panicked back in August 2019.

WILL DEUTSCHE BANK CAUSE SYSTEMIC COLLAPSE?

Just take Deutsche Bank (DB) which is the worst of the lot. They have total assets of €1.3t and equity of €62b. The equity is 4.7% of their total assets. So loan losses of 5% would wipe out their capital. I would be surprised if the coming loan losses would be less than 25% and probably a lot more. And if we add the gross derivatives exposure of $50t, a 0.1% loss would be enough to bankrupt DB.

Now people will argue that gross exposure should be reduced to a much lower net figure. The problem in a crisis is that gross exposure remains gross when counterparties fail.

So in the next crisis, DB is very unlikely to survive. As one of the biggest banks in the world, DB will have positions with all major banks worldwide. So a fall of DB would most likely lead to systemic collapse with the whole system imploding.

FED AND ECB STANDING BY WITH HELICOPTER MONEY

The Fed and ECB are clearly totally aware of this risk and are therefore standing watch. They will initially do everything in their power which is helicopter money, stopping withdrawals, bail-ins, bail-outs, negative rates etc.

There is also likely to be a new reserve currency in the form of a cryptodollar, debt moratoria etc and a possible reset linked partly to the gold price. This might work for a limited period but will fail in the end. The Chinese and Russians will not agree and will challenge the US financial solidity as well as the real level of their gold holdings which is likely to be substantially below the declared 8,000 tonnes. The second reset will be disorderly and this is when the banking system will not survive in its present form.

At that point the world will realise that the central banks have totally lost control of the system as the money they are printing will be recognised as having ZERO value.

“And there is nothing they can do” as Bowie said.

POLITICAL DISARRAY AND ANARCHY

When we reach that point, governments will also be in disarray and powerless for most of the time. The people will always back the opposition parties which will promise the earth but when they gain power deliver very little. So government changes will be frequent and there will be periods of anarchy.

A dark scenario sadly but the die is already cast and I cannot see any chance of avoiding “a final and total catastrophe of the currency system involved” (von Mises).

I clearly hope that this scenario won’t happen but the chances of avoiding it are slim. It is only a matter of the degree and severity of the collapse.

Not easy for ordinary people to protect themselves against Armageddon. Financial protection in the form of physical gold and some silver is absolutely essential but that is only a small part of things to prepare for.

The most important support is a close family and close friends and also appreciating non-material and virtually free values such as nature, books and music.

The effects on markets and money will of course be dramatic but more about that in another letter.

END

A must read

email from Robert H to me:

 

Opinion

> It is all about confidence. Forget the nonsense about economic theories and inflation and all the other balderdash that’s out there, it is all about confidence. It is really that simple. Confidence is, or is not, this what you see daily at the street level and at the individual level in daily life.> Best guess so far, is global GDP is somewhere around the 90 trillion mark. In the US the GDP has dropped almost 33%. And  this was during the second quarter. Whatever’s going on now and this quarter is yet unknown. But it is safe to suggest that is decline is probably continuing structurally even if business activities have risen, as it will not be enough.  The overall global decline was somewhere just short of 30% so the US is pretty consistent. When we look at countries like China it’s important to realize that the global decline of 30% or so is a complete rout for any exporting mercantile country, like Germany or China. With China’s debt load in over $500 billion of debt coming due this year, the odds of a default of some size should be expected. And one reason you are seeing Chinese companies back off any larger cash acquisitions; the money simply is not there in cash or credit. This means the Chinese credit machine is having problems internally. Their flooding and unemployment issues will loom large shortly.
>
> Continuing this false narrative of this pandemic through to the end of 2021 will likely produce a further decline in global GDP reaching close to 50%. And that is after seeing last night on TV that Covid is the 5th leading cause of death in Canada this week, with opioid deaths being #1. The main shock is in the distress faced by small businesses and as it is now close to 30% of all small businesses are toast. What happens over the next 18 months remains to be seen but it will not be good. Many small and mid sized businesses that have reopened will suffer as their economic model of existence is tested and they find that the model simply is no longer economical and thus not a reason to stay in business to lose money.
>
> With this capital destruction it’s impossible to see inflation because there’s no amount of printing it’s going to offset the actual decline in global GDP. You simply cannot print money fast enough to offset the capital destroyed by collapsed business activity.  So theories about runaway inflation is just a dream. What we are more likely to face and experience or severe shortages in manufactured goods that are in demand that will also result in shortages and commodities especially food. Food production is in real distress across the globe with climate is affecting many countries whether it’s from heat or from cold or from drought or from rain. This will combine to force higher prices as demand goods will be in shorter supply than actual demand. And this shortage will likely extend to technological items, some as simple as a printer. Because while this is occurring supply chains are shifting from China and it takes time to reestablish supply lines.> To suggest that life is going back to what we knew a few months ago is wrong and most unlikely. As we are likely to see more chaos as real issues confront governments and consumers alike
end

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.18063 DOWN .0028 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 /MIXED

 

 

USA/JAPAN YEN 106.31 DOWN 0.089 (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 1.3180   UP   0.0001  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3181 UP .0015 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro FELL BY 8 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED DOWN 43.84 POINTS OR 1.30% 

 

//Hang Sang CLOSED UP 5.57 POINTS OR 0.02%

/AUSTRALIA CLOSED DOWN 0,59%// EUROPEAN BOURSES ALL MIXED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL MIXED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 5.57 POINTS OR 0.02%

 

 

/SHANGHAI CLOSED DOWN 343.84 POINTS OR 1.30%

 

Australia BOURSE CLOSED DOWN. 59% 

 

 

Nikkei (Japan) CLOSED UP 0.75  POINTS OR 0.01%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1915.40

silver:$26.39-

Early WEDNESDAY morning USA 10 year bond yield: 0.713% !!! 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 1.422 UP 2  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 93.111 UP 9 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: 0.39% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.05%  UP 2    BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.38%//DOWN 0 in basis point yield from yesterday.

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

 

 

the Italian 10 yr bond yield is trading 64 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES TO –.41% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.43% 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 1.1819  DOWN     .0016 or 16 basis points

USA/Japan: 106.07 DOWN .324 OR YEN UP 33  basis points/

Great Britain/USA 1.3185 UP .0035 POUND UP 35  BASIS POINTS)

Canadian dollar UP 19 basis points to 1.3147

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.8860    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.8849  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  7.3782 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +05%

 

Your closing 10 yr US bond yield UP 3 IN basis points from WEDNESDAY at 0.713 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.43 UP 3 in basis points on the day

Your closing USA dollar index, 93.00 DOWN 2  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 8.59  0.14%

German Dax :  CLOSED UP 128.53 POINTS OR .98%

 

Paris Cac CLOSED UP 40.16 POINTS 0.80%

Spain IBEX CLOSED UP 14.60 POINTS or 0.21%

Italian MIB: CLOSED UP 107.24 POINTS OR 0.54%

 

 

 

 

 

WTI Oil price; 43.24 12:00  PM  EST

Brent Oil: 45.69 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    75.51  THE CROSS HIGHER BY 0.29 RUBLES/DOLLAR (RUBLE LOWER BY 29 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.41 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 :  43.31//

 

 

BRENT :  45.64

USA 10 YR BOND YIELD: … 0.697  up one basis point…..

 

 

 

USA 30 YR BOND YIELD: 1.410..up two basis points

 

 

 

 

 

EURO/USA 1.1824 ( DOWN 11   BASIS POINTS)

USA/JAPANESE YEN:105.98 DOWN .414 (YEN UP 41 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 92,96 DOWN 6 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.32000 UP 51  POINTS

 

the Turkish lira close: 7.3584

 

 

the Russian rouble 75.50   DOWN 0.28 Roubles against the uSA dollar.( DOWN 28 BASIS POINTS)

Canadian dollar:  1.3152 UP 14 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.41%

 

The Dow closed UP 83.48 POINTS OR 0.30%

 

NASDAQ closed UP 198.59 POINTS OR 1.73%

 


VOLATILITY INDEX:  23.22 CLOSED UP1.19

LIBOR 3 MONTH DURATION: 0.251%//libor dropping like a stone

 

USA trading today in Graph Form

Global Stocks Hit Record High, Gold Spikes Ahead Of Powell Speech

Global stocks finally took out their old record highs today (as measured by the MSCI World Index)…. and all it took was almost $10 trillion in global liquidity…

Source: Bloomberg

Global sovereign bond yields (blue above) are at the same time hovering near record lows (though have lifted a little in the last week ahead of Powell’s “I Promise Inflation” speech tomorrow).

“You are meddling with the primary forces of nature, Mr Powell, and I won’t have it! Is that clear?”

Reflecting that somewhat, Breakevens continued to rebound notably today…

Source: Bloomberg

Sending 5Y Breakevens (strong TSY auction today) back to pre-COVID levels…

Source: Bloomberg

Which sent real yields tumbling (back to -1.05%), and grabbed gold higher…

Source: Bloomberg

The momo/value ‘rotation’ from Monday has been unrotated…

Source: Bloomberg

Leaving Nasdaq (blue) soaring and Small Caps (red) slammed… S&P was up over 1% and The Dow managed modest gains…

“Another day, another new record as internals continue to get more lopsided…”

Source: Bloomberg

Despite Nasdaq’s big surge, there were 578 more decliners than advancers…

Source: Bloomberg

NDX is now 28% above its 200 DMA, the widest spread since 2000… Can it get wider? Of course, it went to ~60% at the peak in 2000. “But this is certainly rarified air” over last 30 yrs.

Source: Bloomberg

This didn’t seem to spook stocks at all:

1035ET *FED’S BARKIN: BIG TECH DONE WELL IN PANDEMIC, REFLECTED IN STOCK MKT, THERE CLEARLY IS SOME RISK AS VALUATIONS GET ELEVATED

As FANG stocks soared by the most since April 6th to a new record high…

Source: Bloomberg

TSLA did what TSLA does…

And then there’s Salesforce!!!!!  Up fucking 26% today!!!!!! And it announced layoffs!!! Bwuahahaha

Small Caps very volatile around the cash open.

There was a big short-squeeze at the open but it faded the rest of the day…

Source: Bloomberg

VIX and stocks decoupled today but once again we caution readers of the record low put/call ratio as traders buy calls not downside protection (which also bids up vol, and thus VIX)…

Source: Bloomberg

Call-buying utterly dominated put buying today…

Source: Bloomberg

Very strong 5Y auction reversed the trend higher in yields.

 

10Y Yields fell back below 70bps (again)…

Source: Bloomberg

Dollar dumped after briefly spiking at 0830ET on the durable goods orders beat (it appears it was fake breakout of that coiling pattern we suggested yesterday)…

Source: Bloomberg

Cryptos bounced back today with Bitcoin testing back up to $11,5000…

Source: Bloomberg

Oil was flat on the day, Silver the big gainer with gold and copper stronger by around 1%…

Source: Bloomberg

Finally, year-to-date, global investors (in bonds and stocks) have made almost $10 trillion ($6.66 trillion from bonds and $3.07 trillion from stocks), after being down over $25 trillion at the trough in March…

Source: Bloomberg

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

Do not read anything into this stronger than expected durable goods orders

(zerohedge)

US Durable Goods Orders Smash Expectations In July Thanks To ‘War’

After its initial spike back in May, Durable Goods Orders rebound has slowed and that deceleration of the ‘V’ was expected to continue in today’s preliminary July data, but instead saw a resurgence… rising 11.2% MoM (against expectations of a 4.7% rise).

 

Source: Bloomberg

Year-over-year, durable goods orders remain down 5.0%, but the “V” is filling in fast…

 

Source: Bloomberg

The headline beat was driven by a surge in defense orders and continued rebound in auto demand…

 

Additionally, core capital goods orders, a category that excludes aircraft and military hardware and is seen as a barometer of business investment, rose 1.9%, slightly more than forecast.

end

iii) Important USA Economic Stories

Republicans are starting to get the picture: they are demanding the FDA to explain their stance on HCQ

(Lennon/PJMedia.com

GOP Senators Demand FDA Explain Hydroxychloroquine Stance Amid Positive Studies And Physician Advocates

Authored by Stacey Lennox via PJMedia.com,

The debate over hydroxychloroquine has faded from the forefront as big tech has worked to suppress information and silence the voices of doctors and researchers promoting it. However, it appears the controversy over the drug has encouraged some senators to take a closer look, and it seems they are asking the FDA the right questions.

Senators Ron Johnson (R-Wis.), Ted Cruz (R-Texas), and Mike Lee (R-Utah) sent a letter to FDA Commissioner Stephen Hahn explicitly asking about the agency’s handling of information regarding the drug and its use during the pandemic.

Doctors and researchers advocating for hydroxychloroquine are recommending it be used in high-risk outpatients.

Texas Congressman Louis Hohmert, who was recently diagnosed positive for COVID-19, tweeted just this morning about the benefits of hydroxychloroquine:

Hydroxychloroquine protocols worked for me. Americans suffering from the Wuhan Virus deserve the right to consult with their doctors and try HCQ if deemed a safe and appropriate fit. Keep Big Govt out of this. Thank you Dr. Risch for your work and research on this.

In the letter to Hahn, the senators are asking about specific actions the agency has taken regarding hydroxychloroquine. The current FDA guidance is that it should not be used outside the hospital setting for COVID-19, and the Emergency Use Authorization (EUA) has been withdrawn. Given the safety profile of the medication and the fact it is used daily on an outpatient basis around the world for malaria prevention, malaria treatment, rheumatoid arthritis, and lupus, this guidance is ridiculous on its face.

The recommended duration of hydroxychloroquine treatment for COVID-19 is between five and seven days at FDA approved dosages. In a sane world, a doctor may prescribe drugs off-label at approved dosages if they think a medication may be useful for a patient’s symptoms. However, 2020 is not sane, and now the FDA interference has led to medical boards, hospital systems, and politicians banning the use of hydroxychloroquine for COVID-19. These actions are unprecedented in the doctor-patient relationship.

Finally, these senators are standing up for that relationship and demanding clarity from the FDA. From the letter:

However, we have heard from licensed physicians that have had a far different experience with the FDA’s approach. The physicians are concerned about the FDA’s decision to revoke the March 28th EUA for HCQ and CQ for treatment of COVID-19. They have described the clear differences between inpatient and outpatient treatments and how this decision has affected their ability to treat patients in different settings. The physicians have warned that the FDA’s EUA revocation of HCQ and CQ has led to misinformation and confusion across the country. Some states have restricted the ability of physicians to write and pharmacies to fill HCQ and CQ prescriptions under longstanding and well-established authority to prescribe FDA approved drugs off-label with a patient’s informed consent and according to their clinical judgement.

To better understand the FDA’s actions, the letter requests four specific pieces of information:

  1. Studies or data that definitively shows prescribing hydroxychloroquine or chloroquine within seven days of COVID-19 symptoms is ineffective or harmful.
  2. Produce studies or data on the use of hydroxychloroquine or chloroquine for COVID-19 in outpatient settings under a doctor’s care, including as a preventative. They specifically exclude late-stage studies involving hospitalized patients.
  3. Provide any public statements issued by the FDA to clarify the agency does not regulate the practice of medicine and explaining state governments may not regulate or prohibit the sale of the drugs.
  4. Information on potential treatments for COVID-19 that have been used internationally and whether the FDA has approved those for use in the United States. If not, the senators want to know what steps are being taken to ensure they are.

These requests are a kick in the derriere to the bureaucracy. It is unconscionable for the FDA not to clarify their role in the practice of medicine and even worse for them to remain silent in the face of other entities trying to interfere with it. While it does not appear they have ever made a statement like the one the senators are requesting, hopefully, one will be forthcoming.

It would be even more concerning if the agency withdrew the EUA based on the debunked Lancet study and has done nothing to correct their position. In an extensive search, I can find no studies indicating that short-term outpatient use of hydroxychloroquine at approved dosages is dangerous or deadly. It will be surprising if the FDA has one.

Dr. Harvey Risch, an epidemiologist from Yale, has done a review of these studies and arrived at the conclusion that treatment with hydroxychloroquine is effective for high-risk outpatients. Dr. Risch told Mark Levin on “Life, Liberty, and Levin” Sunday that it was some of the most convincing data he has seen in his career:

He asserts that we have let politics overrule science, and it is costing thousands of lives. Hopefully, senators pressuring the FDA will cause significant movement and clarity. The FDA owes its response by the end of business tomorrow. If the misinformation can be effectively cleared up, it will be a game-changer. The senators must continue to press the FDA and restore the doctor-patient relationship.

end

Not good: a double dip in the number of small businesses opening: it RE PLUNGES

(ZEROHEDGE)

Double-Dip? The Number of Small Businesses Open Re-Plunges

New analysis from Opportunity Insights of US business activity reveals the number of small businesses open recently turned lower. 

The slump coincides with an overall economic recovery that stalled in late June. About a month ago, we said rapid and record fiscal stimulus, driving the V-shaped recovery in consumer spending, was at risk of losing momentum if government support was removed prematurely (see: “Look Out Below”: Why The Economy Is About To Fly Off A Fiscal Cliff“).

With a fiscal cliff beginning on August 01, many states paused or reversed reopenings because of a reemergence of the virus, fiscal uncertainty remains about how and when the next round of Trump checks will be helicopter dropped to tens of millions of jobless and broke Americans, and an overall economic recovery that is reversing, the weakest companies, many of which are small firms, are closing up shop once more.

We outlined in late July how small business owners were rushing to liquidate their assets on Facebook Marketplace as the environment to operate worsened. The devastation of small firms is shocking, due mostly because mom and pop shops account for 44% of all US economic activity.

Opportunity Insights shows the percent change in the number of small businesses open tumbled from -7.7% on July 4 to -19.5% on August 7. 

The decline was widespread, seen in every state. 

A heat map shows the percent change in the number of small businesses open suffered the most significant decline in the Northeast. 

On Wednesday, the Federal Reserve was cautious in the minutes and questioned the robustness of the economic recovery.

Wall Street misread the shape of the recovery curve thanks to the Federal Reserve and the federal government pumping trillions of dollars into the economy market.

 end
Wisconsin
At least 2 were killed in Kenosha WI last night  Third night of rioting
(zerohedge)

At Least 2 Killed During 3rd Night Of Violence In Kenosha; Grisly Shootings Captured On Video

Already, the riots in Kenosha inspired by the police shooting of unarmed Jacob Blake, who was shot in the back while trying to enter a car with his children in the back seat (Blake was hit by 4 of the 7 shots, some reports said he had been armed at one point), have led to the deaths of at least 2 people.

Despite the governor’s decision to declare a state of emergency after a second night of violence, police and the national guard were once again largely absent in a stream of horrifying video from last night’s riots, which at times devolved into open street warfare between groups of rioters and armed people allegedly there to protect property.

Several videos of at least one of the fatal shootings flooded Twitter last night.

While video of the other, allegedly involving the same shooter, who was confronted by several other armed citizens.

Police confirmed to the press that they responded to two fatal shootings and at least one non-fatal shooting during the third night of protests inspired by the shooting of Blake.

Evers said he authorized 250 Wisconsin National Guard troops to protect critical infrastructure and assist Kenosha authorities, but once again, these reinforcements stayed clear of local businesses and offered almost no assistance in the protection of private property.

Kenosha officials said another 100 law enforcement officers from surrounding areas were brought in to assist local police. An 8pm curfew was in effect for the area.

“We will continue to work with local, state and federal law enforcement in holding those criminals who are destroying our city responsible,” Kenosha Mayor John Antamarian said in a statement.

Kenosha police said early Wednesday that they had responded to a report of multiple gunshots just before midnight. Authorities said two people were killed in the shooting, and a third gunshot victim was transported to the hospital with serious, a story that is more or less consistent with the videos we shared above.

One Twitter user shared what she alleged was an interview with the shooter (who can be seen above being chased by another man with a gun) from before the attack. In the interview he can be heard saying he is armed with live ammunition.

The protests have triggered gatherings of armed citizens, some of whom said they were protecting property against looting. Videos shared widely on social media have shown storefront after storefront ablaze, along with dozens of cars – rampant, indefensible, mayhem. And if the government won’t stop it – for whatever reason – sometimes people take responsibility into their own hands, which is one of the reasons the second amendment was enshrined in the constitution via the Bill of Rights.

end
We have a potential huge storm ready to hit Texas/Louisiana and the oil refiners
(zerohedge)

“Potentially Catastrophic Storm” Laura Strengthens To “Large” Category 3 Hurricane

Update (0755ET): The National Hurricane Center just upgraded Hurricane Laura to a Category 3 storm:

…LAURA STRENGTHENS INTO A MAJOR HURRICANE…

…POTENTIALLY CATASTROPHIC STORM SURGE, EXTREME WINDS, AND FLASH FLOODING EXPECTED ALONG THE NORTHWEST GULF COAST TONIGHT…

…STEPS TO PROTECT LIFE AND PROPERTY SHOULD BE RUSHED TO COMPLETION IN THE NEXT FEW HOURS…

From NHC

At 700 AM CDT (1200 UTC), the eye of Hurricane Laura was located near latitude 26.4 North, longitude 91.4 West.

Laura is moving toward the northwest near 15 mph (24 km/h) and this general motion should continue today, followed by a north-northwestward motion tonight.  On the forecast track, Laura should approach the Upper Texas and southwest Louisiana coasts this evening and move inland near those areas tonight or Thursday morning.

Data from NOAA and Air Force Hurricane Hunter aircraft indicate that maximum sustained winds have increased to near 115 mph (185 km/h) with higher gusts.

Laura is a dangerous category 3 hurricane on the Saffir-Simpson Hurricane Scale, and is forecast to continue strengthening into a category 4 hurricane later today.  Rapid weakening is expected after Laura makes landfall.

Laura is a large hurricane.  Hurricane-force winds extend outward up to 70 miles (110 km) from the center and tropical-storm- force winds extend outward up to 175 miles (280 km). Buoy 42395, located just east of Laura’s eye, recently reported a sustained wind of 74 mph (119 km/h) and a wind gust of 107 mph (172 km/h) and a wave height of 37 feet (11 meters).

 

*  *  *

Hurricane Laura is “rapidly intensifying over the Gulf of Mexico and now has maximum winds of 105 mph,” the National Hurricane Center (NHC) statement read. The storm is expected to slam into Louisiana and Texas coasts as a Category 3 or 4 storm Wednesday night.

 

“Life-threatening storm surge, extreme winds, and flash flooding expected to begin later today in eastern Texas and portions of Louisiana,” the statement continued.

NHC expects the storm to “rapidly strengthen to a Category 4 hurricane” before making landfall. The storm could unleash a “life-threatening storm surge” in the areas highlighted in the map below.

“This storm surge could penetrate up to 30 miles inland from the immediate coastline in SW Louisiana and far SE Texas,” NHC said.

Tracking models show the storm posses the biggest threat to the US energy industry in decades. Offshore platforms have been evacuated, crude production slashed to levels not seen since 2005’s Hurricane Katrina, and refiners have cut operations.

Approximately 385,000 Texans and 200,000 Louisiana residents have been under mandatory evacuation orders this week as Laura approaches Gulf of the US.

end
RAND PAUL AND USA FOREIGN POLICY VS BIDEN

Rand Paul Delivers Blistering Foreign Policy Attack: “Biden Will Choose War Again”

Among the most notable highlights at last night’s Republican National Convention, Senator Rand Paul delivered a blistering take down of Democratic presidential nominee Joe Biden’s foreign policy, which Paul linked to multiple wars under Democrat administrations spanning decades (going back to Clinton’s bombing of Serbia).

“I fear Biden will choose war again,” Paul asserted“He supported war in Serbia, Syria, Libya. Joe Biden will continue to spill our blood and treasure. President Trump will bring our heroes home.”

“If you hate war like I hate war, if you want us to quit sending $50 billion every year to Afghanistan to build their roads and bridges instead of building them here at home, you need to support President Trump for another term,” said Paul, who has long been a fierce critic of former President Obama’s foreign policy, including overt intervention in Libya, and covert action toward destabilizing Syria.

He slammed Biden as a hawk who has “consistently called for more war” and with no signs anything would be different.

Interestingly, Sen. Paul has also in the recent past led foreign policy push back against President Trump – especially over the two times Trump has bombed Syria following alleged Assad chemical attacks, which Paul along with other anti-interventionists across the aisle like Tulsi Gabbard questioned to begin with.

But it appears Paul is firmly supportive of Trump’s newly released 50-point agenda for his second term outlining the Commander-in-Chief will “stop endless war” and ultimately bring US troops “home.” The plan still emphasized, however, the administration will “maintain” US military strength abroad while ‘wiping’ out global terrorism.

“President Trump is the first president in a generation to seek to end war rather than start one. He intends to end the war in Afghanistan. He is bringing our men and women home. Compare President Trump with the disastrous record of Joe Biden, who has consistently called for more war,” Paul said further.

Back during the primaries in 2016, Paul and Trump sparred intensely over national security questions:

He also highlighted Biden’s unrepentant yes vote to go to war in Iraq.

“I’m supporting President Trump because he believes as I do that a strong America cannot fight endless wars. We must not continue to leave our blood and treasure in Middle East quagmires,” Paul concluded.

Elsewhere in the approximately four-minute speech, Paul said Trump will fight “socialists poisoning our schools and burning our cities.”

END

iv) Swamp commentaries)

 

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

U.S. Airline Daily Traffic Fell 14% Yesterday, Down 70% YoY – BBG

Airline passenger numbers in the U.S. totaled 736,788 on Aug. 24, compared with 2.36 million…

American Airlines is cutting 19,000 jobs when federal aid expires in October

The carrier expects its fourth-quarter capacity to be half of the year-ago levels with travel demand still down…   https://www.cnbc.com/2020/08/25/american-airlines-is-cutting-19000-jobs-when-federal-aid-expires-in-october.html

WSJ: Positive Drug Tests among U.S. Workers Reach Highest Level [4.5%] in 16 Years https://www.wsj.com/articles/american-workers-testing-positive-for-drugs-reach-highest-level-in-16-years-11598347802

HCQ All Over Again: WaPo Trashes Blood Plasma COVID-19 Treatment after Trump Announces Breakthrough – “Blood from people who recover from coronavirus could provide a treatment,” reported the Washington Post on March 27, just a couple weeks after the World Health Organization declared COVID-19 a pandemic.  Just over a week later, the Washington Post reported again that while there was no vaccine yet for COVID-19, “we do have one potentially promising treatment to help people infected with the coronavirus: infusions of antibody-rich plasma from other patients who have had the disease and recovered.”… “Scientists express doubts about coronavirus treatment touted as breakthrough by Trump” reads the headline on their live updates page Monday afternoon…

https://pjmedia.com/news-and-politics/matt-margolis/2020/08/24/hcq-all-over-again-wapo-trashes-blood-plasma-covid-19-treatment-after-trump-announces-breakthrough-n834659

Massive genetic analysis shows how a single conference in Boston sent coronavirus around the nation – In one of the largest genetic analyses of any American outbreak, sequencing the genomes of virus samples from in and around Boston revealed that a conference held by the biotech firm Biogen in late February spread a distinct substrain of the virus across the city, state and even much of the country.

https://www.washingtonpost.com/climate-environment/2020/08/25/boston-coronavirus-superspreading-event/

@jsolomonReports: Democrats have a Russian spy problemObama-Biden State Department repeatedly traded info with man Senate intel panel says was a Russian intel officer, memos show. Will there be a damage assessment

Ukrainian flagged as intel danger to Trump had extensive contact with Obama officials

Obama State Department considered Konstantin Kilimnik a ‘sensitive source,’ Senate report now identifies him as Russian intel officer.

https://justthenews.com/accountability/russia-and-ukraine-scandals/ukrainian-flagged-spy-danger-trump-had-extensive-contact

Hillary Clinton Urges Biden Not to Concede ‘Under Any Circumstances’ in November Election

https://news.yahoo.com/hillary-clinton-urges-biden-not-135350203.html

As long as Hillary and the Dems started tearing the USA apart by not exercising a peaceful transition of power in 2016, why stop now?  Might as well tear apart the USA until a violent revolution appears!

First night of GOP convention delivers nearly six times more views than start of Democrats’ event on C-SPAN livestream [But the polls! Hollywood stars and the MSM were apoplectic!]

https://thehill.com/homenews/media/513507-first-night-of-gop-convention-delivers-nearly-six-times-more-views-than-start?s=09

Network ratings for the 1st night of the RNC Convention declined 29% vs. 2016, 16m vs. 22.5m.

@seanmdav [late last night]: Granted, it’s only the first night, but the RNC so far has been shockingly compelling and emotionally moving.  I didn’t know the modern GOP was capable of putting together something like this. It’s disorienting how good it is.  [Was this a factor in the ESU surge at the time?]

@SteveGuest: CNN’s Wolf Blitzer: the Rep. Nat’l Convention has been “well-produced, very efficient”

Virtually every MSM outlet called the RNC Convention ‘dark’.  How is this possible that they all used the same exact word?  We’d bet that was the Dem talking points memo given to them.

Trump grants pardon to activist Jon Ponder ahead of convention appearance

President Trump has pardoned Jon Ponder, a convicted felon who has since founded a program aimed at helping former inmates reenter society and who will speak at the Republican National Convention later Tuesday… Trump described how Ponder, after being arrested for bank robbery, began studying the Bible in prison and later founded “Hope for Prisoners,” a reentry program in Nevada that helps former prisoners begin productive lives…   http://hill.cm/WFvNilO

New Documents Reveal Minneapolis Medical Examiner Would Conclude George Floyd Died of a Drug Overdose – on the basis of blood samples collected from George Floyd at a Minneapolis hospital…Dr. Baker reveals that Floyd’s blood tested positive for the presence of 4ANPP, methamphetamine, fentanyl, and norfentayl. He described the level of fentanyl found in George Floyd’s bloodstream as a “fatal level under normal circumstances.”…[Where is the media on this?]

https://bigleaguepolitics.com/new-documents-reveal-minneapolis-medical-examiner-would-conclude-george-floyd-died-of-a-drug-overdose/

New footage shows Jacob Blake brawling with cops before being… police chief calls Gov. Tony Evers ‘wholly irresponsible’ for condemning law enforcement

https://www.dailymail.co.uk/news/article-8660213/amp/Video-shows-Jacob-Blake-brawling-cops-shot-Wisconsin-cops-placed-leave.html

@MarkDice: What’s in Jacob Blake’s hand here?… https://twitter.com/MarkDice/status/1298400667770351616

With the historic tech boom, shouldn’t there be efficient non-lethal guns (tranquilizer darts, stun, LED Incapacitator) available for law enforcement?

8 Non-Lethal Weapons That Will Blow Your Mind

https://www.instantcheckmate.com/crimewire/post/non-lethal-weapons/

Rioters loot businesses in Kenosha, point gun at journalist, as establishment media ignores violence

[MSM knows violence & looting hurts Biden & Dems; Wisky is a swing state]  https://t.co/7x4LoAMzzq

CNN Accidentally Displays Honest Chyron about Violent Protests, Quickly Changes It

8PM Curfew Ordered after Violent Protests over Police Shooting of Unarmed Black Man in Wisconsin,” read the text on screen during “The Situation Room with Wolf Blitzer.”  The word “violent” however, was quickly removed and changed to instead read “8PM Curfew Ordered After Protests Over Police Shooting Of Unarmed Black Man In Wisconsin”… [The MSM fears the riots are helping DJT.]

https://thefederalist.com/2020/08/25/cnn-accidentally-displays-honest-chyron-about-violent-protests-quickly-changes-it/#.X0VEZKN8-sM.twitter

Armed civilians defend local businesses from rioters in Kenosha, Wisconsin as protests continue

https://justthenews.com/government/local/armed-civilians-defend-local-businesses-rioters-kenosha-wisconsin-protests

@CHSommers: My God. Last night DC protesters intimidated people in a restaurantOrdered them to raise their fists in protest. Anyone who disobeyed was viciously denounced for supporting “white supremacy.” Distressing video of bullying posing as activism [This is Blackshirt/fascist tactics.  Where’s the MSM, Dem and GOP Establishment outrage?] https://twitter.com/rawsmedia/status/1298055028213678082

GOP Senator @TomCottonAR: This appalling mob behavior is unacceptable in a free society. [Video]

https://twitter.com/TomCottonAR/status/1298316727579742209

Babylon Bee: [Gov.] Gavin Newsom Assures Californians Wildfires Are ‘Mostly Peaceful’

https://babylonbee.com/news/gavin-newsom-assures-californians-wildfires-are-mostly-peaceful/

Anti-DJT forces are concerned that Joe’s blowing it.

Syracuse University professor disciplined for calling coronavirus the ‘Wuhan flu’ https://trib.al/4K4QCR1

Biden’s Loose Lips Could Sink His Chances – Op-ed in NYT by Bret Stephens [Neocon & anti-Trump]

   If Joe Biden isn’t careful, Donald Trump might have a new nickname for him: “Shutdown Joe.” Or maybe, “Shut Down Joe.” Those monikers came to mind after the former vice president’s biggest blunder in the campaign thus far.  I’m referring to Biden’s comment, in his interview last week with ABC’s David Muir, that if scientists advised him to shut down the country again to contain a winter surge of Covid-19 and the flu, “I would shut it down; I would listen to the scientists.”… But it doesn’t help with the voters Biden needs to avoid antagonizing in swing districts… He is promising to hand over his decision-making authority to unelected people who, whatever their education, expertise or virtues, haven’t gained the trust of fence-sitting voters…

And he is proposing to resort to a strategy that, as Wall Street Journal reporter Greg Ip reported on Monday, is now being viewed by some economists and even health experts as “an overly blunt and economically costly tool” that could have been avoided in favor of “alternative strategies that could slow the spread of the epidemic at much less cost.”…

https://www.nytimes.com/2020/08/24/opinion/bidens-loose-lips-could-sink-his-chances.html

end

Let us close with this special interview of DiMartino Booth, a former banker and now is a gold bug…

Greg Hunter/USAWatchdog/DiMartino Booth

“Gold Is The Perfect Hedge”, DiMartino Booth Warns “The Damage To The Economy Is Permanent”

Via Greg Hunter’s USAWatchdog.com,

Former Fed insider Danielle DiMartino Booth is not a fan of the Federal Reserve, especially now, with its massive money printing campaign.

DiMartino Booth thinks “the damage to the economy is permanent” and that’s not the only thing here to stay.  DiMartino explains,

“We are seeing permanent inflation increasing, and we have seen another uptick in initial jobless claims.  This is not the data you want to see if companies want to have pricing power. . . . We do have inflation where it is not measured, and that is in asset prices and housing prices.”

Di Martino Booth says the Fed will do everything possible to keep the money printing going.  DiMartino Booth contends,

Anything they can do to keep the printing presses running, any cover they can try and create, any type of narrative they can try and paint that allows them justification to go from a $4.5 trillion balance sheet to a $7 trillion balance sheet…

The Fed is looking for cover to continue its constant quantitative easing (money printing) campaign.  If it says it is going to let inflation run hot, it has that cover it is looking for.  It is always about lower for longer.  It is always about keeping the printing press running 24/7.”

DiMartino Booth says don’t take the stock market highs at face value because if you look deeper, things are not that good.  DiMartino Booth says,

The concentration of the seven largest stocks is now $8 trillion.  That is larger than most countries, by the way.  Without them, the S&P 500, the broadest benchmark stock index in the country, would be . . . a down year in the stock market.”

On the other hand, DiMartino Booth says the bailouts mostly benefited Wall Street and not Main Street.  DiMartino Boot explains,

This is the haves and have nots of credit.  If you are a small or midsize company, good luck.  It’s very difficult to find credit.  If you are the biggest companies . . . you don’t even have to have profits.  You can just get as much money as you want to keep going.  So, it is as bifurcated as it comes. . . . There has not been as much discussion as needed about the monetary policy at the Federal Reserve that has done a bang-up job of keeping the largest companies going while we have watched a lot of Mom and Pops, that . . . just needed a liquidity bridge, go by the wayside.  This has been a tremendous fiscal and monetary failing.

DiMartino Booth also warns, “As long as you have this type of damage and business travel being eviscerated, you are going to see permanent damage to the economy.  You will see entire hotel chains close down, and those jobs be lost for good in many cases.

On unemployment in America, Di Martino Booth predicts, at least 25% of these job loses will be permanent in nature stretching out through 2021. . . . I think there will be permanent damage to the housing market too . . . . Now, what we are seeing are evictions.”

Why are gold and silver prices taking off in the past few months?  DiMartino Booth says,

“The reason you have seen as much interest as you have in gold comes down to something very simple.  We are in a speculative ball right now.  Whether you are talking about junk bonds or the stock market, everything has gone completely haywire…

When the peanut butter hits the fan, gold is the one place where investors can find the protection they need

As long as there is anxiety and disruption potential, that is what makes gold the perfect hedge whether you see deflation or inflation further out on the horizon.”

Join Greg Hunter as he goes One-on-One with financial expert and former Fed insider Danielle DiMartino Booth, founder of Quillintelligence.com.  

*  *  *

To Donate to USAWatchdog.com Click Here

DiMartino Booth founded Quillintelligence.com. There is some free information there. She also offers a subscription service for original cutting edge analysis called “The Daily Feather” and the “Weekly Quill.”  To become a subscriber click here.  There is also some free information and articles on DiMartinoBooth.com.

Well that is all for today

I will see you THURSDAY night.

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