DEC 2//DOLLAR PLUMMETS/USA BOND YIELDS RISE AND THAT SENDS GOLD/SILVER MUCH HIGHER! GOLD UP ANOTHER $12.00 TO $1827.00//SILVER UP ONE CENT TO $23.97//STRANGE COMEX DATA TODAY AS COMEX OI FOR GOLD AND SILVER DROP DESPITE YESTERDAY’S HUGE RISE//GOLD STANDING 93.9 TONNES//CORONAVIRUS UPDATE//CHINA VS USA ET AL: CHINA WARNS THAT IT MAY HOLD BACK RARE EARTHS TO THE WORLD IF THEY ARE CUT OFF..USA: BIG MISS IN PRIVATE ADP JOBS REPORT//ELECTION CHAOS//PROJECT VERITAS VS CNN PLUS OTHER SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1827.00 UP  $12.00   The quote is London spot price

Silver:$23.97  up 1 CENT   London spot price ( cash market)

ACCESS MARKET

i)Gold : $1831.50  LONDON SPOT  4:30 pm

ii)SILVER:  $24.10//LONDON SPOT  4:30 pm

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

THIS EMERGENCY DECLARATION IS STILL IN EFFECT!!!!
Email from Robert H to me:
I wonder if anyone read this? Why, because it is clear that interference occurred and the undermining of  confidence in the election occurred.”
Sept 12.2018
“I, DONALD J. TRUMP, President of the United States of America, find that the ability of persons located, in whole or in substantial part, outside the United States to interfere in or undermine public confidence in United States elections, including through the unauthorized accessing of election and campaign infrastructure or the covert distribution of propaganda and disinformation, constitutes an unusual and extraordinary threat to the national security and foreign policy of the United States. Although there has been no evidence of a foreign power altering the outcome or vote tabulation in any United States election, foreign powers have historically sought to exploit America’s free and open political system. In recent years, the proliferation of digital devices and internet-based communications has created significant vulnerabilities and magnified the scope and intensity of the threat of foreign interference, as illustrated in the 2017 Intelligence Community Assessment. I hereby declare a national emergency to deal with this threat.”

Image

these people voted for Biden/Harris ticket!

DONATE

Click here if you wish to send a donation. I sincerely appreciate it as this site takes a lot of preparation.

CLOSING FUTURES PRICES:  KEY MONTHS

DEC. GOLD  $1824.90.   CLOSE 1.30 PM      SPREAD SPOT/FUTURE DEC   $2.90/ BACKWARD   // GOOD FOR EFP ISSUANCE//GOOD FOR EUROPEANS TO BUY COMEX GOLD///

FEB GOLD:  1831.40. CLOSE 1:30 PM  SPREAD SPOT/FUTURE:  $4.40 CONTANGO//$1.60 BELOW NORMAL CONTANGO//GOOD FOR EFP ISSUANCE

CLOSING SILVER FUTURE MONTH

SILVER DECEMBER  CLOSE:     $24.03  1:30  PM SPREAD SPOT/FUTURE DEC.       :   3  CENTS PER OZ  CONTANGO (   3 CENTS ABOVE NORMAL CONTANGO

SILVER MARCH CLOSE:  24.12/SPREAD SPOT/FUTURE:     15 CENTS

9 CENTS ABOVE NORMAL CONTANGO

XXXXXXXXXXXXXXXXXXXXXXXXX

COMEX DATA

wow!!looks like the Fed through JPMorgan is bailing out the comex:

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

receiving today:   2014/4238

EXCHANGE: COMEX
CONTRACT: DECEMBER 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,814.100000000 USD
INTENT DATE: 12/01/2020 DELIVERY DATE: 12/03/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 973 8
135 H RAND 1
323 C HSBC 3
332 H STANDARD CHARTE 87
355 C CREDIT SUISSE 54
435 H SCOTIA CAPITAL 207
624 C BOFA SECURITIES 77
624 H BOFA SECURITIES 171
657 C MORGAN STANLEY 237
657 H MORGAN STANLEY 345
661 C JP MORGAN 1867
661 H JP MORGAN 147
686 C STONEX FINANCIA 1 3
690 C ABN AMRO 7 176
700 H UBS 10
709 C BARCLAYS 2239 483
732 C RBC CAP MARKETS 370
800 C MAREX SPEC 1 9
880 C CITIGROUP 41
880 H CITIGROUP 872
905 C ADM 81 6
____________________________________________________________________________________________

TOTAL: 4,238 4,238
MONTH TO DATE: 14,169

ISSUED:  0

GOLDMAN SACHS STOPPED 8 CONTRACTS.

NUMBER OF NOTICES FILED TODAY FOR  DEC. CONTRACT: 4238 NOTICE(S) FOR 423,800 OZ  (13.182 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  14,169 NOTICES FOR 1,416,900 OZ  (44.072 tonnes) 

SILVER//DEC CONTRACT

998 NOTICE(S) FILED TODAY FOR 4,990,000  OZ/

total number of notices filed so far this month: 5766 for 28,830,000  oz

BITCOIN MORNING QUOTE  $18882   UP 228

BITCOIN AFTERNOON QUOTE.  :$19,104  UP 336 DOLLARS .

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

THESE TWO VEHICLES//GLD/AND SLV  ARE ABSOLUTE FRAUDS AND HAVE NOWHERE NEAR THE METAL THEY CLAIM THEY HAVE!

GLD AND SLV INVENTORIES:

WITH GOLD UP $12.00 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

THIS MAKES A LOT OF SENSE!!

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

A WITHDRAWAL OF 3.51 TONNES FROM THE GLD

INVENTORY RESTS AT:

GLD: 1,191.28 TONNES OF GOLD//

WITH SILVER UP ONE CENT TODAY: AND WITH NO SILVER AROUND:

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV

A DEPOSIT OF 2.231 MILLION OZ INTO THE SLV

INVENTORY RESTS AT:

SLV: 546.542  MILLION OZ./

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A SMALL 375 CONTRACTS FROM 152,747 DOWN TO 152,372, AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE SMALL LOSS IN OI OCCURRED DESPITE OUR GAIN  OF $1.46 IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS  DUE TO HUGE BANKER AND ALGO SHORT COVERING, COUPLED AGAINST A SMALL EXCHANGE FOR PHYSICAL. WE  HAD ZERO LONG LIQUIDATION, AND A CONSIDERABLE DECREASE IN SILVER OUNCES  STANDING AT THE COMEX FOR DEC.  WE HAD A TINY GAIN IN OUR TWO EXCHANGES OF 181 CONTRACTS  (SEE CALCULATIONS BELOW).

WE WERE  NOTIFIED  THAT WE HAD A SMALL  NUMBER OF  COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  500, AS WE HAD THE FOLLOWING ISSUANCE:   DEC:  0, MARCH 500 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  500 CONTRACTS. THE BANKERS ARE NOW BEING BITTEN BY THOSE SERIAL FORWARDS (EFP’S CIRCULATING IN LONDON)AS THEY ARE NOW BEING EXERCISED AND COMING BACK TO NEW YORK FOR REDEMPTION OF METAL.  THE COST TO SERVICE THESE SERIAL FORWARDS IS HIGH TO OUR BANKERS  BUT THEY HAVE NO CHOICE BUT TO ISSUE AS MANY AS THEY CAN!

HISTORY OF SILVER OZ STANDING AT THE COMEX FOR THE PAST 26 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 FINAL STANDING IN AUGUST

55.400 MILLION OZ FINAL STANDING IN SEPT

11.400 MILLION OZ FINAL STANDING IN OCT.

3.950 MILLION OZ FINAL STANDING IN NOV.

45.630 MILLION OZ INITIAL STANDING FOR DEC.

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE $1,46) ).. AND, OUR OFFICIAL SECTOR/BANKERS WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY  SILVER LONGS AS WE HAD A  SMALL GAIN IN OUR TWO EXCHANGES 125 CONTRACTS). NO DOUBT THE SMALL GAIN IN OI ON THE TWO EXCHANGES WAS DUE TO i) HUGE BANKER/ STRONG ALGO SHORT COVERING.  WE ALSO HAD  ii)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A CONSIDERABLE DECREASE IN SILVER OZ STANDING FOR DEC, iii) SMALL COMEX LOSS AND  iv) ZERO  LONG LIQUIDATION. YOU CAN BET THE FARM THAT OUR BANKERS  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER..

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS

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

2012 CONTRACTS (FOR 2 TRADING DAY(S) TOTAL 2012 CONTRACTS) OR 10.060 MILLION OZ: (AVERAGE PER DAY: 1006 CONTRACTS OR 5.030 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF DEC: 10.060 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 1.07% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)*

ACCUMULATION IN YEAR 2020 TO DATE SILVER EFP’S:          1,600.86 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 EFP                              71.15 MILLION OZ.

JULY EFP                               133.95 MILLION OZ/ (EXCHANGE FOR PHYSICALS STARTING TO RISE EXPONENTIALLY AGAIN)

AUGUST EFP                         127.46 MILLION OZ (EXCHANGE FOR PHYSICALS STARTING TO DECREASE AGAIN)

SEPT EFP                                78.360 MILLION OZ (EXCHANGE FOR PHYSICALS DRAMATICALLY FALLING OFF A CLIFF)

OCT EFP                                 69.73   MILLION OZ (STILL FALLING IN NUMBERS)

NOVEMBER EFP                    63.77 MILLION OZ ( SLOWED DOWN CONSIDERABLY AGAIN)

DECEMBER EFP:                     10.06 MILLION OZ

RESULT: WE HAD A SMALL SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 375, DESPITE OUR  $1.46 GAIN IN SILVER PRICING AT THE COMEX ///TUESDAY.…THE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 500 CONTRACTS WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS.

TODAY WE GAINED A TINY 125 OI CONTRACTS ON THE TWO EXCHANGES (WITH OUR   $1,46 GAIN IN PRICE)//

THE TALLY//EXCHANGE FOR PHYSICALS

i.e  500 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A SMALL SIZED DECREASE OF 375 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH OUR $1.46 RISE IN PRICE OF SILVER/AND A CLOSING PRICE OF $23.96 // 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. 0.7640 BILLION OZ TO BE EXACT or 109% of annual global silver production (ex Russia & ex China).

FOR THE NEW NOV  DELIVERY MONTH/ THEY FILED AT THE COMEX: 998 NOTICE(S) FOR 4,990,000 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)

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 3940 CONTRACTS TO 538,042AND FURTHER FROM OUR  NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE SMALL FALL IN COMEX OI OCCURRED DESPITE OUR GAIN IN PRICE  OF $38.55 /// COMEX GOLD TRADING//TUESDAY.WE  HAD HUGE BANKER/ALGO SHORT COVERING ACCOMPANYING OUR FAIR SIZED EXCHANGE FOR  PHYSICAL ISSUANCE. WE HAD ZERO LONG LIQUIDATION AS WE HAD A SMALL GAIN ON OUR TWO EXCHANGES  (54 CONTRACTS) WE HAD A SMALL LOSS IN GOLD OUNCES  AT THE COMEX AS LONGS DECIDED TO “LOOK FOR METAL OVER IN LONDON” BUT IN REALITY THEY ENTER THE MERRY GO AROUND OF OUR SERIAL FORWARDS AND COLLECT 200 DOLLARS PER OZ AS THEY PASS “go” EVERY 14 DAYS. (  GOLD STANDING DOWN TO 93.751 TONNES).THIS ALL HAPPENED WITH OUR HUGE GAIN IN PRICE OF $38.55. 

WE HAD A VOLUME OF 0    4 -GC CONTRACTS//OPEN INTEREST  10//

WE HAD A SMALL SIZED GAIN OF 54 CONTRACTS  (0.167 TONNES) ON OUR TWO EXCHANGES..

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR//SMALL SIZED 3994 CONTRACTS:

CONTRACT .  DEC: 643; FEB: 3351  ALL OTHER MONTHS ZERO//TOTAL: 3959.  The NEW COMEX OI for the gold complex rests at 538,042. 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 SMALL SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 125 CONTRACTS: 3940 CONTRACTS DECREASED AT THE COMEX AND 3994 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 125 CONTRACTS OR 0.625 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A FAIR/SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (3994) ACCOMPANYING THE SMALL SIZED LOSS IN COMEX OI  (3940 OI): TOTAL GAIN IN THE TWO EXCHANGES: 296 CONTRACTS. WE NO DOUBT HAD  1)  HUGE BANKER SHORT COVERING AND SOME ALGO SHORT COVERING ,2 SMALL LOSS IN GOLD OUNCES  STANDING AT THE GOLD COMEX FOR THE FRONT DEC. MONTH TO 93.751 TONNES3)  ZERO LONG LIQUIDATION ;4)  FAIR//SMALL COMEX OI LOSS,  5) FAIR/SMALL SIZED ISSUANCE OF EXCHANGE FOR PHYSICAL….ALL OF THIS OCCURRED WITH  OUR HUGE STRONG GAIN IN GOLD PRICE TRADING/TUESDAY//$38,55.

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.

We have now switched to GOLD for our spreaders!!

FOR DETAILS ON THE SPREADING EXERCISE HERE IS A BRIEF OUTLINE:

SPREADING OPERATIONS/NOW SWITCHING TO GOLD  (WE SWITCH OVER TO SILVER ON DEC  1)

SPREADING OPERATION FOR OUR NEWCOMERS:

FOR NEWCOMERS, HERE ARE THE DETAILS:

SPREADING LIQUIDATION HAS NOW COMMENCED IN GOLD AS WE HEAD TOWARDS THE NEW ACTIVE FRONT MONTH OF DEC.

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

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

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

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

.

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX GOLD OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE NON  ACTIVE DELIVERY MONTH OF OCT. HEADING TOWARDS THE NON ACTIVE DELIVERY MONTH OF NOV FOR GOLD:

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF NOV. BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST INGOLD WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (DEC), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END  OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.”

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

DEC.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DEC : 8767 CONTRACTS OR 876,700 oz OR 27.26 TONNES (2 TRADING DAY(S) AND THUS AVERAGING: 4384 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 2 TRADING DAY(S) IN  TONNES: 27.26  TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2019/2020, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES

THUS EFP TRANSFERS REPRESENTS 27,26/3550 x 100% TONNES =.767% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE:  3,866.21 TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 571.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE                1,113.77  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 (EFP ISSUANCE EXTREMELY LOW)

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

AUGUST TOTAL EFP ISSUANCE;                 150.78 TONNES  FINAL (AGAIN: RETREATING IN NUMBERS)

SEPT TOTAL EFP ISSUANCE:                       178.49 TONNES (EFP’s AGAIN RISING DUE TO BACKWARDATION/LOWER FUTURE PREMIUMS//THUS LESS COST TO CARRY)

OCT TOTAL EFP ISSUANCE.                        158.78 TONNES (AGAIN DROPPING)

NOV  TOTAL EFP ISSUANCE:                        201.08 TONNES ( INCREASING AGAIN) 

DEC. TOTAL EFP ISSUANCE:                         27.26 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 SMALL 375 CONTRACTS FROM 152,747 DOWN TO 152,372 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 SMALL SIZED LOSS IN OI SILVER COMEX WAS PRIMARILY DUE TO; 1) HUGE BANKER SHORT COVERING//ALGO SHORT COVERING//// , 2) A SMALL/FAIR ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A DECREASE  IN SILVER OUNCES  STANDING   AT THE COMEX FOR DEC., AND 4) ZERO LONG LIQUIDATION 

EFP ISSUANCE 500 CONTRACTS

OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS  AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE: DEC. 500 AND MARCH:  0  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 500 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 375 CONTRACTS TO THE 500 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A SMALL GAIN OF 125 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 0.625 MILLION  OZ, OCCURRED WITH OUR $1.46 GAIN IN PRICE///

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

(report Harvey)

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 2.56 POINTS OR .07%   //Hang Sang CLOSED DOWN 35.10 POINTS OR .13%    /The Nikkei closed UP 13.44 POINTS OR 0.05%//Australia’s all ordinaires CLOSED DOWN 0.01%

/Chinese yuan (ONSHORE) closed UP AT 6.5651 /Oil UP TO 44.49 dollars per barrel for WTI and 47,23 for Brent. Stocks in Europe OPENED ALL MIXED//  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.5651. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.5576 TRADE TALKS STALL//YUAN LEVELS //TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC/TRUMP TESTS POSITIVE FOR COVID 19  : /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 BY A SMALL SIZED 3940 CONTRACTS TO 538,284 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 THIS  COMEX DECREASE OCCURRED DESPITE OUR HUGE GAIN OF $38.55 IN GOLD PRICING TUESDAY’S COMEX TRADING/).

 WE  HAD A FAIR EFP ISSUANCE (3994 CONTRACTS).  WE THUS HAD  1)  HUGE BANKER SHORT COVERING// ALGO SHORT COVERING//,  2)  ZERO LONG LIQUIDATION  AND 3)  SMALL LOSS IN GOLD OUNCES  STANDING AT THE  COMEX FOR DECEMBER  ( NOW STANDING AT 93.751 TONNES)//DEC. DELIVERY MONTH (SEE BELOW) 4)   AS WE ENGINEERED A TINY SIZED GAIN ON OUR TWO EXCHANGES OF 54 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. HOWEVER, MUCH TO THE ANNOYANCE OF OUR BANKERS, THE COMEX IS THE SCENE OF AN ASSAULT ON GOLD AS LONDONERS, NOT BEING ABLE TO FIND ANY PHYSICAL ON THAT SIDE OF THE POND, EXERCISE THESE CIRCULATING EXCHANGE FOR PHYSICALS IN LONDON AND FORCING DELIVERY OF REAL METAL OVER HERE AS THE OBLIGATION STILL RESTS WITH NEW YORK BANKERS. WE CAN NOW VISUALLY SEE THAT SHORTS ARE TRYING TO EXTRICATE THEMSELVES FROM THEIR MESS (“TRYING TO GET OUT OF DODGE”) AS LONGS DEPART THE COMEX FOR THE SAFER CONFINES OF LONDON.

(SEE BELOW)

WE  HAD 0    4 -GC VOLUME//open interest REMAINS AT 10

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF NOV..  THE CME REPORTS THAT THE BANKERS ISSUED A FAIR SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 3994 EFP CONTRACTS WERE ISSUED:     DEC 643; FEB// ’21 3351 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 3994  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.

IT SEEMS THAT OUR BANKER FRIENDS ARE LOATHE TO ISSUE EFPS DESPITE THE LOW PREMIUM ON FUTURE GOLD CONTRACTS.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 54 TOTAL CONTRACTS IN THAT 3994 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A SMALL SIZED 3940 COMEX CONTRACTS.. THE BIG NEWS IS THE GIGANTIC LEVEL OF DEC 2020 GOLD CONTRACTS STANDING FOR DELIVERY. ((93.751 TONNE).  IF YOU INCLUDE  NOVEMBER’S HUGE 34.7 TONNES, OUR COMEX IS OFFICALLY UNDER ASSAULT. BUT THIS TIME THE GOLD WILL LEAVE FOR EUROPE!!

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $38,55).  AND, THEY WERE UNSUCCESSFUL IN FLEECING ANY LONGS AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED   0.167 TONNES, ACCOMPANYING OUR STRONG GOLD TONNAGE STANDING FOR DECEMBER (93.751 TONNES)

NET GAIN ON THE TWO EXCHANGES :: 54 CONTRACTS OR 5400 OZ OR  0.167  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:  538,042 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 53.80 MILLION OZ/32,150 OZ PER TONNE =  1673 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1673/2200 OR 76.06% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 187,540 contracts// volume poor / ////

CONFIRMED COMEX VOL. FOR YESTERDAY:  216,346 contracts//  volume: poor//

/most of our traders have left for London

DEC 2 /2020

DEC. GOLD CONTRACT MONTH

INITIAL STANDING FOR DEC GOLD
Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
3767.3 oz
HSBC
Deposits to the Dealer Inventory in oz 48,226.500 oz

1500 KILOBARS

BRINKS

Deposits to the Customer Inventory, in oz NIL
OZ
No of oz served (contracts) today
4238 notice(s)
 423,800 OZ
(13.182 TONNES)
No of oz to be served (notices)
15,972 contracts
(1,597,200 oz)
49.681 TONNES
Total monthly oz gold served (contracts) so far this month
14,169 notices
1,416,900 OZ
44.072 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 1 deposit into the dealer

i) Into Brinks:  48,226.500 oz (1500 kilobars)
total deposit: 48,226.500 oz

total dealer withdrawals: 0 oz

we had 0 deposit into the customer account

i) Into JPMorgan:  0 oz

ii) Into everybody else: 0

total customer deposit: nil  oz

we had 1 gold withdrawals from the customer account:

i) Out of HSBC  3767.3 oz

Total withdrawals:  3767.3 oz

We had 2  kilobar transactions

ADJUSTMENTS: 2 //

i) Out of Loomis:  customer to dealer//13181.500 oz (41 kilobars)

ii) Out of JPMorgan: 254,653.573 oz (customer to dealer) 7.9 tonnes

The front month of DEC registered a total of 20,210 contracts for a loss of 5261. We had 4560 notices filed upon yesterday so we lost 701 contacts or 70100 additional oz will not stand in this very active delivery month of December as these guys morphed into London based forwards and accepted a fiat bonus for their efforts. These guys receive a hefty bonus for not taking delivery as they enter the centric merry- go- round on those London serial forwards.

January lost 5 contracts to stand at 2551 contracts. FEBRUARY lost a STRONG 1283 contracts down TO 394,763.

THE BIG STORY AGAIN TODAY IS THE HIGH INITIAL OI STANDING FOR DECEMBER (93.751 tonnes).

Once our paper players are finished, then we will see the bankers queue jump longs as they attempt to put out gold fires around the world.

We had  4238x notice(s) filed today for  423,800 oz OR 13.182 TONNES.

FOR THE DEC 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 4238  contract(s) of which  147  notices were stopped (received) by j.P. Morgan dealer and  1867 notice(s) was (were) stopped/ Received) by J.P.Morgan//customer account and 8 notices received (stopped) by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the DEC /2020. contract month, we take the total number of notices filed so far for the month (14,169) x 100 oz , to which we add the difference between the open interest for the front month of  DEC (20,210 CONTRACTS ) minus the number of notices served upon today (4238 x 100 oz per contract) equals 3,014,100 OZ OR 93.751 TONNES) the number of ounces standing in this active month of DEC

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

No of notices filed so far (14169, x 100 oz +20,210 OI) for the front month minus the number of notices served upon today (4238) x 100 oz which equals 3,014,100 oz standing OR 93.751 TONNES in this  active delivery month of December. This is a HUGE amount for gold standing for  DEC delivery month (generally the strongest delivery month of the year). THE COMEX IS UNDER A HUGE FRONTAL ATTACK FROM EUROPEAN BANKS SEEKING PHYSICAL METAL! JUDGING FROM THE INITIAL NOTICES FILED VS THE NUMBER OF NOTICES STANDING, IT WILL BE EXTREMELY DIFFICULT FOR OUR BANKERS TO FIND THE NECESSARY GOLD TO SATISFY OUR EUROPEANS. 

NEW PLEDGED GOLD:  BRINKS

466,240.074, oz NOW PLEDGED  SEPT 15.2020/HSBC  14.51 TONNES ( A HUGE INCREASE FROM 10.6)

60,784.803 PLEDGED  APRIL 3/2020: SCOTIA:            1.3234 tonnes

deleted Int. Delaware pledge July 7  (600 tonnes)

280,010.045 oz  JPM  8.70 TONNES

602,840.325 oz pledged June 12/2020 Brinks/   july 2/july 21               18.75 tonnes

88,796.123 oz Pledged August 21/regular account 1.588 tonnes jpm

98,804.139 oz Pledged Nov 27.2021 MANFRA   3.07 tonnes

total pledged gold:  1,597,479.579 oz                                     49.69 tonnes

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 501.34 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 93.751 tonnes

CALCULATION OF REGISTERED THAT CAN BE SETTLED UPON:

total registered or dealer  17,715,624.694 oz or 551.03 tonnes
total weight of pledged:  1,597,479.579 oz or 49.69 tonnes
thus:
registered gold that can be used to settle upon: 16,118,145.0  (501,34 tonnes)
true registered gold  (total registered – pledged tonnes  16,118.145.0 (501.34 tonnes)
total eligible gold:  19,678,598.715 oz (612.08 tonnes)

total registered, pledged  and eligible (customer) gold  37,394,224.409 oz 1,163.11 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  1036.77 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

Dec 2/2020

And now for the wild silver comex results

And now for the wild silver comex results

INITIAL STANDINGS

DEC. SILVER COMEX CONTRACT MONTH//INITIAL STANDING

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
8431.917 oz
Delaware
Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
nil
No of oz served today (contracts)
998
CONTRACT(S)
(4,990, 000 OZ)
No of oz to be served (notices)
3360 contracts
 16,800,000 oz)
Total monthly oz silver served (contracts)  5766 contracts

28,830,000 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 deposits 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 (ELIGIBLE ACCOUNT)

i )Into JPMorgan: nil oz

JPMorgan now has 192.834 million oz of  total silver inventory or 49.66% of all official comex silver. (192.834 million/388.051 million

ii) Into everybody else:  0

total customer deposits today:  0    oz

we had 1 withdrawals:

i ) Out of Delaware  8431.917 oz

total withdrawals 8431.917l    oz

We had 1 adjustments

i) Out of Int. Delaware: 342,414.890 ox

Total dealer(registered) silver: 145.846million oz

total registered and eligible silver:  389.235 million oz

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

December saw a LOSS of  3947 contracts DOWN to 4,358 contracts. We had 3599 notices served upon yesterday so we lost 348 contracts or 1,740,000 additional oz will not stand in this very active delivery month of December. It seems our paper players prefer the monopoly money for circular serial forwards vs taking any metal over here/

January saw a GAIN of 133 contracts UP to 1005. FEBRUARY saw another gain of 2 contracts to stand at 51.   MARCH  gained  2852 contracts up to 127,062.

The total number of notices filed today for the DEC 2020. contract month is represented by 998 contract(s) FOR 4,990,000 oz

To calculate the number of silver ounces that will stand for delivery in DEC we take the total number of notices filed for the month so far at 5766 x 5,000 oz = 28,830,000 oz to which we add the difference between the open interest for the front month of DEC(4338) and the number of notices served upon today 998x (5000 oz) equals the number of ounces standing.

Thus the DEC standings for silver for the DEC/2019 contract month: 5766 (notices served so far) x 5000 oz + OI for front month of DEC(438)- number of notices served upon today (998) x 5000 oz of silver standing for the NOV contract month .equals 45,630,000 oz. ..VERY STRONG FOR AN ACTIVE  DEC MONTH.

We lost 348 contracts or 1,740,000 oz will not stand as they morphed into London based forwards

TODAY’S ESTIMATED SILVER VOLUME 76,934 CONTRACTS // volume huge//

FOR YESTERDAY  96,377  ,CONFIRMED VOLUME// huge

YESTERDAY’S CONFIRMED VOLUME OF 96,377 CONTRACTS EQUATES to 0.486 billion  OZ 68.8% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

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

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

end

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  FALLS TO- 4.22% ((DEC 2/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO 1.87% to NAV:   (DEC 2/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/4.22% (DEC 3)

(courtesy Sprott/GATA

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

NAV 18.88 TRADING 18.07///NEGATIVE 4.31

END

And now the Gold inventory at the GLD

DEC 2/WITH GOLD UP $12,00 TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD//: A WITHDRAWAL OF 3.51 TONNES FROM THE GLD//INVENTORY RESTS AT 1191.28 TONNES

DEC 1//WITH GOLD UP $38.55 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLDE//INVENTORY RESTS AT 1194.78 TONNES

NOV 30/WITH GOLD DOWN $11.85 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1194.78 TONNES

NOV 27/WITH GOLD DOWN $18.90 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 4.96 TONNES OF GOLD FROM THE GLD…//INVENTORY RESTS AT 1194.78 TONNES

NOV 25//WITH GOLD UP $0.05 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A MASSIVE PAPER WITHDRAWAL OF 13.43 TONNES FROM THE GLD..IS THE GLD MAKING GOLD VAPOUR DELIVERIES FOR THE COMEX?//INVENTORY REST AT 1199.74 TONNES

NOV 24/WITH GOLD DOWN $33.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 7.00 TONNES FROM THE GLD//INVENTORY RESTS AT 1213.17 TONNES

NOV 23/WITH GOLD DOWN $33.95 TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.9 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1220.17 TONNES

NOV 20/WITH GOLD UP $11.10 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD// A WITHDRAWAL  (ROBBERY) OF 1.74 TONNES FROM THE GLD//INVENTORY RESTS AT 1217.26 TONNES

NOV 19/WITH GOLD DOWN $9.80 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 7.30 TONES FROM THE GLD////INVENTORY REST AT 1219.00 TONNES

NOV 18/WITH GOLD DOWN $13.50 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 5.10 TONNES FROM THE GLD INVENTORY//INVENTORY RESTS AT 1226.30 TONNES

NOV 17/WITH GOLD DOWN 3 DOLLARS TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.92 TONNES FROM THE GLD////INVENTORY RESTS AT 1231.40 TONNES

NOV 16/WITH GOLD UP $2.20 TODAY/A HUGE CHANGES IN GOLD INVENTORY AT THE GLD A WITHDRAWAL OF 5.25 TONNES FROM THE GLD////INVENTORY RESTS AT 1234.32 TONNES

NOV 13/WITH GOLD UP $11.90 TODAY//A HUGE CHANGE IN GOLDINVENTORY AT THE GLD; A WITHDRAWAL OF 1.17 TONNES FROM THE GLD////INVENTORY RESTS AT 1239.57 TONNES

Nov 12/WITH GOLD UP $11.00 TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A PAPERWITHDRAWAL OF 9.02 TONNES FROM THE GLD///INVENTORY RESTS AT 1240.74 TONNES

NOV 11/WITH GOLD DOWN $13.10 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1249.79 TONNES/

NOV 10/WITH GOLD UP $20.10 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 10.51 TONNES/INVENTORY RESTS AT 1249.79 TONNES

NOV 9/WITH GOLD DOWN $88.45 TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIST OF 7.88 TONNES INTO THE GLD///INVENTORY RESTS AT 1260.30 TONNES

NOV 6/WITH GOLD UP $5.30 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1252.42 TONNES

NOV 5/WITH GOLD UP $51.45 TODAY: STRANGELY A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.5 TONNES FROM THE GLD////INVENTORY RESTS AT 1252.42 TONNES

NOV 4/WITH GOLD DOWN $9.35 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1255.92 TONNES

NOV 3//WITH GOLD UP $16.85 TODAY:  STRANGE!!! A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 1.75 TONNES FROM THE GLD////INVENTORY RESTS AT 1255.92 TONNES

NOV 2/WITH GOLD UP $13.60 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD:A WITHDRAWAL OF .58 TONNES AND THIS IS GENERALLY TO PAY FOR FEES (STORAGE/INSURANCE)//INVENTORY RESTS AT 1257.67 TONNES

OCT 30/WITH GOLD UP $11 TODAY: NO CHANGE IN GOLD INVENTORYAT THE GLD//INVENTORY RESTS AT 1258.25 TONNES

OCT 29/WITH GOLD DOWN $11.80 DOLLARS TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 8.47 TONNES FROM THE GLD////INVENTORY RESTS AT 1258.25 TONNES

OCT 28/STRANGE!WITH GOLD DOWN $30.50 TODAY, A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1266.72 TONNES

OCT 27/WITH GOLD UP $6.20 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1263.80 TONNES

OCT 26/WITH GOLD UP $1.50 TODAY; A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.77 TONNES FROM THE GLD//INVENTORY RESTS AT 1263.80 TONNES

OCT 23/WITH GOLD  DOWN 80 CENTS TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD A WITHDRAWL OF 3.8 TONNES FROM THE GLD////INVENTORY RESTS AT 1265.55 TONNES

OCT 22/WITH GOLD DOWN $22.80 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1269.35 TONNES

OCT 21//WITH GOLD UP $17.50 DOLLARS TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1269.93 TONNES

OCT 20/WITH GOLD UP $3.30 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: ANOTHER PAPER WITHDRAWAL OF 2.92 TONNES//INVENTORY RESTS AT 1269.93 TONNES

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at

DEC 2/ GLD INVENTORY 1191.28 tonnes

LAST;  960 TRADING DAYS:   +247.81 TONNES HAVE BEEN ADDED THE GLD

LAST 860 TRADING DAYS// +425.30  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY

Now the SLV Inventory

DEC 2/WITH SILVER UP ONE CENT TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.231 MILLIONOZ INTO THE SLV//INVENTORY RESTS AT 546.542 MILLION OZ//

DEC 1/WITH SILVER UP $1.46 TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 544.311 MILLION OZ/

NOV 30/WITH SILVER DOWN 15 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 544.311 MILLION OZ.

NOV 27/WITH SILVER DOWN $0.69 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: A WITHDRAWAL OF 1.813 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 544.311 MILLION OZ.

NOV 25/WITH SILVER UP $0.05 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 4.091 MILLION PAPER OZ FROM THE SLV //// IS THE SLV MAKING SILVER VAPOUR DELIVERIES FOR THE COMEX?//INVENTORY RESTS AT 550.215 MILLION OZ..

NOV 24/WITH SILVER DOWN 33 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 10.322 MILLION OZ FROM THE SLV..//INVENTORY REST AT 550.215 MILLION OZ

AND IF ANYBODY BELIEVES THIS GARBAGE, WE HAVE A GREAT PROPERTY TO SELL YOU (FLORIDA SWAMP LANDS).

NOV 23/WITH SILVER DOWN $.70 TODAY: A HUGE CHANGE IN SILVER AT THE SLV; A WITHDRAWAL OF 2.046 MILLION OZ FROM//INVENTORY RESTS AT 562.583 MILLION OZ

NOV 20//WITH SILVER UP $0.32 TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 52.583 MILLION OZ//

NOV 19/WITH SILVER DOWN 35 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV:2 TRANSACTIONS:1) A WITHDRAWAL OF 1.396 MILLION OZ AND 2). 2.602 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 562.583 MILLION OZ

NOV 18/WITH SILVER DOWN 23 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1581 MILLION OZ FROM THE SLV…//INVENTORY RESTS AT 566.581 MILLION O

NOV 17/WITH SILVER DOWN 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 568.162 MILLION OZ//

NOV 16/WITH SILVER UP $.05 TODAY//A HUGE  CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDDRAWAL OF 1.209 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 568.162 MILLION OZ//

NOV 13/WITH SILVER UP 43 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV” A WITHDRAWAL OF 2.88 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 569.371 MILLION OZ.

NOV 12/WITH SILVER DOWN 2 CENTS TODAY: NO CHANGES IN SILVER INVENTORY FROM THE SLV//INVENTORY RESTS AT 572.254 MILLION OZ

NOV 11/WITH SILVER DOWN 8 CENTS TODAY: A HUGE 3.627 MILLION OZ WITHDRAWAL FROM THE SLV/ INVENTORY RESTS AT 572.254 MILLION OZ

NOV 10/WITH SILVER UP $.65 TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: STRANGE ANOTHER HUGE DEPOSIT OF 4.739 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 575.881 MILLION OZ

NOV 9/WITH SILVER  DOWN $1.76 TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE  SLV: A DEPOSIT OF 10.324 MILLION OZ ADDED INTO THE SLV INVENTORY////INVENTORY RESTS AT 571.742 MILLION OZ

NOV 6/WITH SILVER UP 47 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 561.418 MILLION OZ//

NOV 5/WITH SILVER UP $1.21 TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 561.418 MILLION OZ..

NOV 4/WITH SILVER DOWN 43 CENTS TODAY: TWO HUGE CHANGE IN SILVER INVENTORY AT THE SLV:  A) WITHDRAWAL OF 240,000 OZ FROM SLV//// AND THEN B) A DEPOSIT OF 1.83 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 561.418 MILLION OZ

NOV 4/WITH SILVER DOWN 43 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV:  A WIHDRAWAL OF 240,000 OZ FROM SLV////INVENTORY RESTS AT 559.558 MILLION OZ

NOV 3/WITH SILVER UP 29 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY REST AT 559.798 MILLION OZ///

NOV 2/WITH SILVER UP 40 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 559.798 MILLION OZ//

OCT 30/WITH SILVER UP 23 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 931,000 FROM THE SLV////INVENTORY RESTS AT 559.798 MILLION OZ..

OCT 29/WITH SILVER DOWN 4 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 2.326 MILLION OZ//INVENTORY RESTS A 560.729 MILLION OZ..

OCT 28/WITH SILVER DOWN $1.09 TODAY: A HUGE WITHDRAWAL OF 2.791 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 558.403 MILLION OZ..

OCT 27/WITH SILVER UP 18 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 561.194 MILLION OZ//

OCT 26/WITH SILVER DOWN 18 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 561.194 MILLION OZ

OCT 23/WITH SILVER DOWN 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 561.194 MILLION OZ

OCT 22/WITH SILVER DOWN 46 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 561.194 MILLION OZ

OCT 21/WITH SILVER UP 26 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.977 MILLION OZ FROM THE SLV..//INVENTORY RESTS AT 561.194 MILLION OZ.

OCT 20/WITH SILVER UP 31 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 652,000 OZ INTO THE SLV////INVENTORY RESTS AT 564.171 MILLION OZ//

DEC 2.2020:

SLV INVENTORY RESTS TONIGHT AT  546.542 MILLION OZ/

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

ii) Important gold commentaries courtesy of GATA/Chris Powell

Hugo again emphasizes that we do not have free markets in our precious metals..just constant government intervention

(Hugo Salinas Price/GATA)

Hugo Salinas Price: No free market in gold, just constant government intervention

 Section: 

12:40p ET Tuesday, December 1, 2020

Dear Friend of GATA and Gold:

Hugo Salinas Price of the Mexican Civic Association for Silver shows today how “not for profit” selling of gold in the futures market happens constantly and is meant to suppress the monetary metal’s price and thereby defend government currencies.

Salinas Price writes: “Tell-tale signs of official intervention in the gold market are the swift collapses in the price of gold that take place frequently.

“Unofficial, bonafide sellers of gold wish to maximize their dollar profits when they sell their gold. They do not ‘unload’ their gold on the market all at once.

“The official sellers of gold do not care about maximizing their dollar profit. They are interested in only one thing: to bring down the price of gold as fast as possible, to scare away potential investors and flush out weak hands. Thus the tell-tale signs of intervention appear in the daily graphs of the price of gold as nearly vertical falls in the price.”

Salinas Price’s analysis is headlined “No Free Market in Gold: Constant State Intervention” and it’s posted as the association’s internet site, Plata.com.mx, here:

http://plata.com.mx/enUS/More/403?idioma=2

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

END

Interesting: ECB officials afraid that their key policy decisions were not understood….so they made dozens of private calls to banks and investors in an unusual attempt to buttress their puzzling public communications

(Wall Street Journal.GATA)

Top ECB official privately called investors, banks after key policy decisions

By Tom Fairless and Paul J. Davies
The Wall Street Journal
Tuesday, December 1, 2020

FRANKFURT, Germany — The European Central Bank’s chief economist made dozens of private calls to banks and investors after policy meetings this year, an unusual attempt to buttress the central bank’s sometimes-puzzling public communications, according to three people with whom he spoke and a review of his schedule.

The calls began in March, after ECB President Christine Lagarde flummoxed traders by suggesting at a news conference that the central bank wouldn’t prop up Italy’s bond market. Italian stocks and bonds slumped. Hours later, Philip Lane, the chief economist, placed separate calls to 11 banks and investors in which he sought to clarify the message.

Former central bank officials said the calls risked privileging big investors with sensitive information.

Typically, central bankers carefully control their utterances and try to make sure all market participants get information at the same time. Public diaries show that neither Ms. Lagarde’s predecessor, Mario Draghi, nor his chief economist, Peter Praet, made similar calls during their last two years in office. …

… For the remainder of the report:

https://www.wsj.com/articles/top-ecb-official-privately-called-investors…

END
Very true: since 2015 all year end gold selloffs have led to New Year rallies
(USA Gold/GATA)

USAGold: Since 2015 year-end gold selloffs have led to new-year rallies

 Section: 

1p ET Tuesday, December 1, 2020

Dear Friend of GATA and Gold:

USAGold’s “News & Views” letter for December, edited as always by Mike Kosares, may be most interesting for noting that since 2015 year-end selloffs in gold have turned into rallies in the new year. December’s “News & Views” is posted in the clear here:

https://www.usagold.com/nv1025december2020/

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

his chief economist, Peter Praet, made similar calls during their last two years in office. …

… For the remainder of the report:

https://www.wsj.com/articles/top-ecb-official-privately-called-investors…

END

James Turk; with the dollar falling, gold and silver will not be held down much longer.

(James Turk/Kingworldnews/GATA)

With dollar falling, metals won’t be held down much longer, Turk says

 Section: 

5:20p ET Tuesday, December 1, 2020

Dear Friend of GATA and Gold:

In comments at King World News today, GoldMoney founder and GATA consultant James Turk says that while governments do a good job of containing monetary metals prices during option expiries like last week’s, under the pressure of vast money creation the U.S. dollar is falling too hard for the monetary metals to be kept down much longer. Circumstances remain bullish for the metals, Turk says.

His comments can be found at KWN here:

https://kingworldnews.com/gold-silver-and-mining-stocks-explode-higher-s…

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

END

Nonsense:  gold will always be the metal for safe haven.  It is the paper price and manipulation of the metals that has caused harm.  Bitcoin will eventually find its true instrinsic value and that is zero

(Bloomberg)

Bitcoin’s rally spurs Wall Street to question future of gold

 Section: 

By Eddie Spence and Yvonne Yue Li
Bloomberg News
Tuesday, December 1, 2020

Bitcoin has shot to a record just as billions of institutional dollars have fled gold.

Whether that’s a simple coincidence or the start of a rotation that would have a profound impact on crypto and the precious-metals market is impossible to know for sure. But the debate is now heating up on whether the world’s largest digital currency can one day rival bullion as an inflation hedge and portfolio diversifier.

Bitcoin’s tumble last week, the biggest since March, after a 150% run-up this year underscores the famous volatility of the asset class that has kept mainstream investors at bay. Yet if they start moving just a small portion of their gold holdings into the $350 billion Bitcoin industry, it would be a game-changer for diversification strategies on Wall Street.

“Gold was really the safe asset of the past world and baby boomer generation,” said Jean-Marc Bonnefous, a former commodities hedge fund manager turned crypto investor. “Now it’s being replaced by automated assets like Bitcoin.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2020-12-01/the-hottest-debate-on…

END

iii) Other physical stories:

Our good friend and supporter Steve Bruce has written a fine expose on Rio Tinto

you will find this very interesting:

Steve Bruce

9:02 PM (1 hour ago)

to Chrisme
end

Jim Cook Interviews Ted Butler

December 02, 2020

Jim Cook

Investment Rarities Inc.

26Shares

Cook: What is the reason for the extreme price volatility in the silver market?

Butler: We’re reaching the end of the line, in terms of the final resolution and the train is shaking so much, it looks to be coming off the tracks.

Cook: Is this a good thing?

Butler: It’s the best thing possible, because it signifies an end to the price control.

Cook: What will that do?

Butler: It should set the price free. The only reason silver has been so cheap is because a few big short sellers on the COMEX have suppressed the price. But growing physical demand has put these big short sellers in a bind and they are losing more money than they ever dreamed possible.

Cook: What about JPMorgan – aren’t they a big part of the short sellers?

Butler: JPM used to be the biggest COMEX short seller, but they managed not only to slip out from all their paper short positions, but build up a tremendous physical silver and gold position over the years. JPM went from the biggest short seller to the biggest long ever seen. It’s quite remarkable and extraordinarily bullish.

Cook: Are you saying physical demand is now such that it can overcome paper trading on the futures market?

Butler: Yes, exactly – but with the added kicker that the former biggest paper manipulator, JPMorgan, is now the biggest physical long.

Cook: Where is this great demand coming from?

Butler: Everywhere, namely, both retail and wholesale. Of course, wholesale demand has the biggest impact on price. Since the middle of March, some 400 million physical ounces have been demanded and have come into the COMEX warehouses and the world’s ETFs.

Cook: Can you put that quantity of silver into perspective?

Butler: 400 million ounces represents 20% of the world’s silver bullion. That’s in the form of industry-standard good-delivery 1,000 ounce bars. Of the 2 billion ounces of silver that exists in the world, 75% of it is already in the silver ETFs and COMEX warehouses. That’s 1.5 billion ounces of silver. What’s even more astonishing is that 400 million ounces is 50% of annual world mine production and the transactions for that much silver did not do much to the price.

Cook: How can 400 million ounces change hands without an enormous price eruption?

Butler: There’s only one explanation. The paper positioning on the COMEX sets the price no matter what else is happening in the world of silver. That such a massive amount flowed into the ETFs and the COMEX in such a short period of time is all anybody should be talking about, especially since this is going to end soon.

Cook: How great might the loss be for the big short sellers?

Butler: At this point, the 8 largest shorts in gold and silver are out around $13 billion, mostly on the rally in gold over the past year or so. But with silver having moved higher recently, they are starting to lose big on silver. At this point every dollar higher on silver creates an additional $370 million in losses for the 8 biggest shorts. A ten dollar move will cost them $3.7 billion from here and a twenty dollar move $7.5 billion. And that’s just for starters.

Cook: Is this what they call a short squeeze?

Butler: Yes, and the move up in gold and silver at this point already qualifies as one of largest, if not the largest short squeeze in history.

Cook: Where can these short sellers possibly get the silver they need to cover their short positions?

Butler: Getting the physical silver to deliver at this point is not really possible – the most practical course for them is to buy back their shorts, which will only add upside fuel to the coming price fire.

Cook: How high can silver go?

Butler: After watching the prices of so many things, like stocks and Bitcoin, move far higher than I ever would have imagined, I can’t help but believe that silver will move far higher than I previously imagined – well over $100 or $200. Certainly silver has better fundamentals than anything else out there.

Cook: Is it possible the government will get involved because some of these banks who are short are considered too big to be allowed to fail?

Butler: Should the government openly move to aid the banks which are short silver, that would be letting the whole world know that the price had been suppressed and serve as a personal invitation for everyone to buy silver.

Cook: These big shorts have crushed the price many times in the past. What if they strike again?

Butler: They may, but the tide is moving against them. Try coming up with a legitimate reason for being heavily short silver at prevailing prices and watch yourself get laughed out of the room.

Cook: One of your strongest arguments for silver is that the price is artificially low because of the concentrated short position. Could you call silver a value investment?

Butler: Silver is the ultimate value investment, not only because it is so darn cheap, but because it is absolutely vital for modern life. We are going to have a pitched battle between industrial silver users who need silver to stay in business and investors seeking outsized gains.  Do you not believe this was behind JPMorgan’s accumulation of one billion ounces of physical silver?

Cook: One last question. If the situation is so dire for the big shorts as you suggest, why haven’t they started to at least reduce their short positions over the last year?

Butler: That’s an excellent question. Best I can determine, they only react when they are forced to. In gold, it wasn’t until the 8 big shorts were out more than $5 billion that they started to bring in enough physical gold to offset their growing open losses. Since silver only started to rally strongly this summer (compared to the gold rally which started a year earlier), the 8 big shorts haven’t had enough time to react. There’s been some recent increase in COMEX silver warehouse stocks, but nowhere near enough to offset their paper shorts. More to the point, I don’t think the 8 big shorts can come up with the 300 million+ physical ounces they need in silver. That leaves buying back these short positions as the only practical remedy and that means a price explosion. I once wrote that when silver goes off, it will be like an atom bomb on a hydrogen bomb on a neutron bomb.

Cook: The silver story must be the best kept secret on earth.

Butler: I’m trying my best to make others see it. I don’t think there will be anything like it again in my lifetime.

Ted Butler is considered to be the nation’s foremost expert on silver. He is the editor of  Butler Research LLC (butlerresearch.com). Jim Cook is the president Investment Rarities, a company he founded in 1973 (investmentrarities.com).

James R. Cook

President

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 UP TO 6.5651 /

//OFFSHORE YUAN:  6.5576   /shanghai bourse CLOSED DOWN 2.56 POINTS OR .07%

HANG SANG CLOSED DOWN 35.10 POINTS OR .13%

2. Nikkei closed DOWN 155.22 POINTS OR 0.67%

3. Europe stocks OPENED ALL MIXED/

USA dollar index DOWN TO 91.40/Euro FALLS TO 1.2059

3b Japan 10 year bond yield: RISES TO. +.03/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 104.63/ 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:: 44.49 and Brent: 47.23

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.52%/Italian 10 yr bond yield UP to 0.67% /SPAIN 10 YR BOND YIELD UP TO 0.12%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.19: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 0.67

3k Gold at $1823.00 silver at: 23.97   7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble UP 5/100 in roubles/dollar) 75.75

3m oil into the 44 dollar handle for WTI and 47 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 104.63 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 .8968 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0820 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

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

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 0.930% early this morning. Thirty year rate at 1.670%

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

6.  TURKISH LIRA:  UP  TO 7.85..

Futures Fall From Record As Traders Ignore Latest Vaccine News, Seek New Catalysts

US index futures dropped and European shares edged lower as investors struggled to find fresh catalysts to extend their buying of stocks after the market has fully priced in an improved health outlook on vaccine optimism, while waiting for the latest ADP private payrolls report. Treasury yields modestly faded Tuesday surge which was sparked by renewed fiscal stimulus optimism, while the dollar rebounded from a 2.5 year low. At 7:30 a.m. ET, Dow E-minis fell 111 points, or 0.36% and S&P 500 E-minis dropped 11.25 points, or 0.31%. Nasdaq 100 E-minis declined 29.50 points, or 0.24%.

Among individual stocks, Salesforce.com dropped about 4.5% as it agreed to buy workplace messaging app Slack Technologies Inc in a $27.7 billion deal as it bets on an extended run for remote working. Moderna shares fell in the pre-market to as low as $135.52, down from earlier trading that saw prices as high as $151.47, after Merck said it had sold its direct holding in Moderna in the first half of the fourth quarter. Pfizer climbed after its Covid-19 shot was cleared for deployment in the U.K. as soon as next week while shares in BioNTech surged by more than 8% before trimming gains.

In the latest positive vaccine news, overnight Britain approved Pfizer and BioNTech’s COVID-19 vaccine, jumping ahead of the United States and Europe to become the first country to formally endorse a shot it said should reach the most vulnerable people early next week. The two drug firms and competitor Moderna have also sought emergency use approval from European regulators this week, while U.S. health officials have announced plans to start vaccinating Americans as early as mid-December, once regulatory approvals are in place.

“Early vaccines will help bolster the reflation and normalcy trade, which has been the key macro theme in driving equity markets,” said Neil MacKinnon, global macro strategist at VTB Capital. “Equity bulls will be hoping that the vaccine news is not an example of ‘buy the rumor, sell the fact’,” he added, saying there was a risk stock markets have already been “priced to perfection.”

The MSCI index of global stocks inched up 0.4% to keep it near an all-time high set in the previous session. “General risk sentiment is unchanged – perhaps there’s a bit of consolidation today but that’s understandable given where we’ve come from since November,” said Derek Halpenny, EMEA head of research for global markets at MUFG. The dollar lost more than 2.5% of its value in November.

Despite the positive vaccine news, European stocks failed to add to their recent surge. The Stoxx Europe 600 Index erased declines of as much as 0.5%, before dipping again, and trading down 0.3% last with automakers and travel shares leading declines while defensive sectors, such as real estate, utilities, healthcare gained.

Earlier in the session, Asian markets were mixed; shares in China recovered from early losses and rose 0.12%. China’s No. 2 smartphone maker Xiaomi Corp. dropped the most ever after disclosing a share sale. The offshore yuan erased gains after president-elect Joe Biden told the New York Times he won’t soon remove tariffs on Chinese goods. Tokyo stocks were little changed after setting a new 29-year high. Softbank Group shares fell 0.66% after Bloomberg News said the tech investor is winding down its options trades on companies including Amazon.com Inc and Facebook Inc.

As Bloomberg notes, after vaccine breakthroughs fueled record monthly gains for global stocks in November, markets appear to have priced in an improved health outlook, and investors are turning some of their attention to bonds. One of the year’s biggest spikes in Treasury yields on Tuesday has spurred speculation about the potential impact of rising rates on stocks and corporate debt.

The question is how much is already priced in, and is the upside therefore limited?” Esty Dwek, head of global market strategy at Natixis Investment Managers Solutions, wrote in a report. “The outlook is one of improvement and leaving behind the chaos of the pandemic. Still, a number of risks remain.”

Markets were also buoyed on Tuesday after top U.S. Senate Republican Mitch McConnell said that Congress should include new coronavirus stimulus in a $1.4 trillion spending bill aimed at heading off a government shutdown in the midst of the pandemic. Joe Biden told the New York Times his priority is getting a generous aid package through Congress even before he takes office in January.

Also on Tuesday Fed Chair Powell again cautioned lawmakers that the U.S. economy remains in a damaged and uncertain state during testimony at a Tuesday hearing before the Senate Banking Committee. Perhaps boosted by his comments, congressional efforts to pass additional coronavirus relief in the U.S. pushed ahead Tuesday as House Speaker Nancy Pelosi presented a fresh Democratic proposal and Senate Majority Leader Mitch McConnell floated a revision of his smaller plan to fellow Republicans.

In rates, Treasuries held small gains following Tuesday’s rout although yields remained within a basis point of Tuesday’s closing levels. Yields were lower by about 1bp at long end with the curve slightly flatter; 10-year around 0.92% after touching 0.936% Tuesday, the cheapest in two weeks. Yields on euro zone government bonds edged up to their highest in three weeks at -0.51% before weakening to -0.525% at 1153 GMT.

In FX, The dollar edged off 2-1/2 year lows against the euro and a basket of major currencies hit earlier on Wednesday. The pound was under some pressure, with doubts remaining over whether Britain can agree a trade deal with the European Union. Sterling fell 0.6% to $1.3342. UK blue-chip stocks were up 0.2%.

In commodities, oil prices dropped after OPEC and its allies left markets in limbo by postponing a formal meeting to decide whether to lift output in January. Brent crude futures fell 0.44% to $47.21 per barrel, while U.S. crude was down 0.74% at $44.22 per barrel. Oil has raced up nearly 30% over the last month. Gold rose for a second day, while bitcoin traded just above $19,000.

As pandemic-led restrictions continue to pose a threat to the labor market recovery, investors will keep a close eye on November’s private payrolls data, which is due at 8:15 a.m. ET.  The U.S. House of Representatives is expected to pass legislation later on Wednesday that could prevent some Chinese companies from listing their shares on U.S. exchanges unless they adhere to U.S. auditing standards, congressional aides said.The bill would give Chinese companies like Alibaba , tech firm Pinduoduo Inc. and oil giant PetroChina Co Ltd. three years to comply with U.S. rules before being removed from U.S. markets.

Looking at today’s calendar, we get the November ADP employment change at 8:15am ET and Fed Chair Powell appearance before House panel. ECB Board member Philip Lane is due to speak as part of the Thomson Reuters Global Investment Summit at 1400 GMT, ahead of a Dec. 10 ECB policy meeting which is expected to increase and extend the central bank’s Pandemic Emergency Purchase Programme.

Market Snapshot

  • S&P 500 futures down 0.1% to 3,656.25
  • STOXX Europe 600 down 0.05% to 391.72
  • MXAP up 0.3% to 191.55
  • MXAPJ up 0.3% to 631.40
  • Nikkei up 0.05% to 26,800.98
  • Topix up 0.3% to 1,773.97
  • Hang Seng Index down 0.1% to 26,532.58
  • Shanghai Composite down 0.07% to 3,449.38
  • Sensex down 0.05% to 44,635.22
  • Australia S&P/ASX 200 up 0.03% to 6,590.20
  • Kospi up 1.6% to 2,675.90
  • Brent futures down 0.1% to $47.36/bbl
  • Gold spot up 0.5% to $1,824.21
  • U.S. Dollar Index little changedat 91.36
  • German 10Y yield rose 1.2 bps to -0.516%
  • Euro down 0.1% to $1.2058
  • Italian 10Y yield rose 4.8 bps to 0.563%
  • Spanish 10Y yield unchanged at 0.12%

Top Overnight News from Bloomberg

  • President Trump has discussed with advisers whether to grant pre-emptive pardons to his children, to his son-in-law and to his personal lawyer Rudolph W. Giuliani, and talked with Mr. Giuliani about pardoning him as recently as last week, according to two people briefed on the matter
  • President-elect Joe Biden told the New York Times he’d leave the phase-one trade deal with China in place while he conducts a full review of U.S. policy toward its Asian rival in consultation with key allies
  • One of the year’s biggest spikes in Treasury yields has investors mapping out the impact of rising rates on markets ranging from stocks to corporate bonds
  • The U.K. became the first western country to approve a Covid-19 vaccine, with its regulator clearing Pfizer Inc. and BioNTech SE’s shot ahead of decisions in the U.S. and European Union
  • European Central Bank policy maker Martins Kazaks said an expansion of the institution’s emergency bond-buying program by 500 billion euros ($603 billion) would be “reasonable” and he’s ready to support an extension until mid 2022
  • German car and parts makers’ expectations have regressed during each of the last four months in the Ifo Institute’s monthly survey, sending the economic think tank’s index into negative territory in November

A quick look at global markets courtesy of NewsSquawk

In Asia, stocks lacked firm direction as momentum faded from the record-setting performance on Wall St, where the S&P 500 and Nasdaq printed fresh all-time highs after a resumption of COVID-19 relief discussions and weak data spurred stimulus hopes, while US futures pulled back after-hours with DJIA futures retreating further away from 30k. ASX 200 (Unch.) was indecisive after underperformance in healthcare and tech was offset by gains in the mining sectors and with better than expected GDP data failing to spur risk appetite as although Q/Q growth topped estimates at 3.3% vs. Exp. 2.6%, the economy still contracted by 3.8% from the prior year. Nikkei 225 (+0.1%) traded rangebound and ignored a predominantly weaker currency, while KOSPI (+1.6%) outperformed amid strength in chipmakers and with shares in index heavyweight Samsung Electronics rallying to unprecedented levels. Hang Seng (-0.1%) and Shanghai Comp. (Unch) conformed to the humdrum mood after the PBoC drained CNY 110bln of liquidity and amid lingering concerns regarding US-China tensions, as well as the worsening COVID-19 situation in Hong Kong. Finally, 10yr JGBs fell below the key 152.00 level as they tracked the downturn in T-notes but with further losses stemmed by the uninspiring mood for regional stocks and with the BoJ present in the market for nearly JPY 1.1tln of JGBs in up to 5yr maturities.

Top Asian News

  • Specter of Cashless Gambling Drives Junket Operators from Macau
  • Thai Court Rejects Petition to Disqualify Premier Amid Protests
  • Philippines Adds to Global Debt Binge With Another Bond Deal

European markets kicked the session off lower across the board but have since trimmed/nursed losses with the region now seeing a mixed picture (Euro Stoxx 50 -0.2%) following the uninspiring APAC handover. The main news of the morning has been UK’s approval of the Pfizer/BioNTech COVID-19 vaccine, a move touted in UK press over the weekend, with the vaccine to be rolled out as soon as next week, with sources over the weekend suggesting the first jab to be administered on December 7th. On this front, it is worth keeping in mind the challenges posed by the logistics of supply and distribution, whereby “The companies have developed specially designed, temperature-controlled thermal shippers utilizing dry ice to maintain temperature conditions of -70°C±10°C. They can be used be as temporary storage units for 15 days by refilling with dry ice”, according to the official PFE/BNTX release. Nonetheless, the news sparked little in the way of a sustained reaction across European and US equity futures, with US FDA and EU EMA reviews expected later this month. On that note, EU lawmakers called the UK approval “problematic” as it was too fast – something to keep an eye on to gauge the bloc’s risk profile with regards to accelerated approvals. Sectors in Europe are mostly in the red having had had a downbeat open, but energy has recouped lost ground on account of price action in the complex whilst healthcare is supported. Elsewhere, Travel & Leisure was faring well at the open but the optimism has since waned. Overall, a clear risk profile cannot be derived from sectors. Looking at individual movers, G4S (+7%) top the charts following a revised offer from Gardaworld who upped the price to GBP 2.35 per G4S shares vs. the prior offer of GBP 1.90. G4S has until December 16th to digest the terms and respond. Meanwhile, Rolls-Royce (+1.0%) sees tailwinds after signing an aerospace engineering partnership with Indian giant Infosys. Finally, Tesco (-1.5%) shares are on the backfoot as the Co. is to repay the UK govt GBP 585mln of business rates relief received in the wake of the pandemic, whilst adding the latest estimates in October was that COVID would cost Co. GBP 725mln this year, well in excess of the rates relief received.

Top European News

  • U.K. Debates Carbon Cut as High as 69% to Show Climate Ambition
  • The U.K. Has Approved a Vaccine. Here’s What Happens Next
  • Covid-19 Testing for Most of a Nation Backfires on Slovak Leader

In FX, the Pound was riding high alongside fellow majors against downtrodden Dollar before an update on Brexit trade talks from chief EU negotiator Barnier pulled the rug from Cable and pushed Eur/Gbp back above 0.9000. In short, far from entering the final phase towards a deal, the 2 sides remain apart on the 3 main sticking points and an agreement is still in the balance. Moreover, his briefing to envoys also conceded that is uncertain whether the gaps can be bridged as EU officials are said to be getting increasingly nervous about the prospect of reaching an accord, albeit with one source in Brussels suggesting that a deal can still be done in December, next month or (presumably) later in 2021. Cable is now a full point down from best levels circa 1.3440 and the cross is hovering near the top of a 0.9045-0.8965 range.

  • DXY – For all intents and purposes, the Buck appears to have stopped the rot by virtue of the aforementioned relapse in Sterling, as other G10 currencies suffered contagion, like the Euro to lift the index from 91.103 to 91.426. However, the Greenback remains fragile overall ahead of ADP, the 2nd part of Fed chair Powell’s Congressional testimonies and 2 speeches from Williams before the latest Beige Book prepared for next month’s FOMC.
  • AUD/NZD/CAD – Mixed GDP data and the ongoing rift with China may be keeping the Aussie capped into 0.7400 vs its US counterpart, but Aud/Nzd has bounced from recent lows nearer the 1.0400 mark as the Kiwi stalls in the high 0.7300 zone against its US peer following remarks from RBNZ Governor Orr flagging risks to the economic recovery and outlook, while reiterating that the LSAP, FLP and OCR can all be adjusted to meet the Bank’s mandate. Meanwhile, some stability in crude prices is keeping the Loonie afloat between 1.2915-50 parameters awaiting OPEC+ tomorrow.
  • JPY/CHF/EUR – Little respite for the underperforming Yen irrespective of fading risk sentiment and bear-steepening in US Treasuries abating somewhat, as Usd/Jpy pivots 104.50 in a moderately firmer 104.23-72 band. Elsewhere, the Franc is straddling 0.9000 against the Dollar, but thankfully for the SNB unable to keep pace with the Euro following its outsized gains yesterday given more deflationary than expected Swiss CPI. Indeed, Eur/Chf is elevated within a 1.0852-71 band even though Eur/Usd has run in to resistance just shy of 1.2100, albeit partly in sympathy with the Pound as noted above. Note also, aside from the obvious psychological factors surrounding the next round number, a prior high from September 2017 (1.2092) may be hampering the single currency in addition to a key Fib retracement level only a few pips above (1.2103 represents a 76.4% correction of the move from 1.2555 to 1.0638 – mid-February 2018 peak to this year’s low).
  • SCANDI/EM/PM – The Sek and Nok seem more in thrall with Eur excesses than the general risk tone or somewhat confusing Norwegian current account developments as the surplus widened in Q3, but only after a huge downward revision to the prior quarter. Conversely, EMs are trading mixed with the Zar underperforming regardless of Xau extending its recovery rally beyond another chart hurdle in the form of the 10 DMA (after breaching the 200 DMA on Tuesday).

In commodities, WTI and Brent front month futures have recouped earlier losses which were seen in wake of OPEC indecision coupled with a surprise build of 4.1mln bbl (vs. Exp. -2.4mln bbls) in private inventories last night. The recovery in futures commenced in APAC hours but gained traction following the UK vaccine approval announcement, albeit in the context of yesterday’s sell-off, the recovery is somewhat tame. In terms of where we stand on OPEC, ministers are to meet again today in an attempt to hash out differences over the producers’ next move – with three options reportedly on the table. 1) An extension of current cuts by three months (Saudi’s preference), 2) output to be raised from January but by a smaller volume than the 2mln BPD under the DoC (Russia’s preference), and 3) hiking output under the original plan. Furthermore, the compliance mechanism seems to be an issue with the UAE, whereby sources noted that kingdom is willing to back the 7.7mln BPD extension but contingent on assurances of improved compliance. Note UAE also reportedly called for an extension of 7.2mln BPD cuts. WTI Jan trades on either side of USD 44.50/bbl (vs. low 43.92/bbl) and Brent Feb on either side of USD 47.50/bbl (vs. low ~ 46.85/bbl). Elsewhere, precious metals have been bolstered post-vaccine approval amid reflationary play and despite the firmer Buck. Spot gold also surpassed the 10DMA (~ 1820/oz) flagged by technicians ahead of USD 1850/oz psychological mark and the 21 DMA at USD 1859/oz. Spot silver meanwhile continues to make headway above USD 24/oz. Elsewhere, Dalian iron ore futures gained as much as 3.5% amid rosy steel demand prospects, whilst LME copper is subdued amid the firmer Buck and mixed equity picture.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 3.9%
  • 8:15am: ADP Employment Change, est. 430,000, prior 365,000
  • 2pm: U.S. Federal Reserve Releases Beige Book

Central Banks

  • 10am: Powell Appears Before House Finance Panel
  • 1pm: Fed’s Williams Holds Press Briefing
  • 2pm: U.S. Federal Reserve Releases Beige Book

DB’s Jim Reid concludes the overnight wrap

Risk assets got December off to a very strong start yesterday, as both the S&P 500 (+1.13%) and the NASDAQ composite (+1.28%) shrugged off the rising number of pandemic cases to reach fresh all-time highs. 21 of the 24 S&P 500 industry groups rose yesterday, and there was not a clear driver of the rally which was led by a mix of growth and cyclical names. Tech hardware (+2.65%), Media (+2.27%), Autos (+1.96%) and Banks (+1.95%) all led the way, Energy (+0.44%) had been doing well early in the session before oil prices reversed on further OPEC+ meeting worries. The overall equity strength was seen in Europe too, where the STOXX 600 (+0.65%), the DAX (+0.69%) and the FTSE 100 (+1.89%) had all moved higher by the close.

With equities reaching all-time highs, there was a major selloff in sovereign bond markets as investors rotated out of safer assets, and yields on 10yr US Treasuries were up +8.7bps to 0.926% by the close. The moves offered support for those of us saying the Covid crisis is more likely to lead to inflation than deflation in the coming years (although maybe not in 2021), since US 10-year breakevens rose to 1.82% yesterday, their highest closing level since May 2019. European sovereigns witnessed a similar selloff, and yields on 10yr bunds (+4.3bps), OATs (+3.7bps) and gilts (+4.2bps) all moving higher yesterday. Nevertheless, Greek bonds continued their relative outperformance however, with the spread of their 10yr yields over bunds falling to a post-sovereign debt crisis low yesterday of 1.185%.

Fed Chair Powell spoke yesterday before the Senate Banking Committee and again tried to urge lawmakers that while economic indicators are improving, the outlook for the economy continues to see risks. The Fed chair noted that the “recent news on the vaccine front is very positive for the medium term,” but added that “significant challenges and uncertainties remain, including timing, production and distribution, and efficacy across different groups.” Powell also both congratulated the CARES act for helping to support the economy while also stressing the fact that more fiscal stimulus may be needed, especially in a winter that is sure to see more small business closures if case counts do not get under control quickly. Treasury Secretary Mnuchin shared the Fed Chair’s desire to get more fiscal stimulus and urged Congress to “pass something quickly”.

This came just ahead of reports that House Speaker Pelosi and Senate Majority Leader McConnell had new proposals for fresh stimulus. Pelosi’s plan has been sent to Secretary Mnuchin and the Republican leadership, while Senator McConnell is circulating his plan among Republicans to gauge support. President-elect Biden has called on Congress to get a “robust package” passed in the lame duck session, though indicated that this would be just the start. Neither plan had been released but you may recall that McConnell previously supported a $500 billion package, while President Trump indicated he is willing to back a bigger bill. Any legislation would have to get past a Democratic-controlled House, where Pelosi has called for a $2.4 trillion plan.

Risk appetite was further supported yesterday by some very strong readings in the global manufacturing PMIs, where all of the major economies reported decent numbers. In the Euro Area, the final PMI was revised up from the flash reading to 53.8 (vs. flash 53.6), the UK saw a revision up to 55.6 (vs. flash 55.2), and the US remained in line with the flash number at 56.7. Furthermore, as we mentioned in yesterday’s edition, China’s PMI was above expectations as well at 54.9. So all of the world’s major economies have their manufacturing PMIs in the 50s, which is in expansionary territory, and that’s even with the increase in restrictions that have come into place with Covid case numbers on the rise.

Speaking of Covid, UK MPs voted by 291-78 yesterday in favour of the new tiered system of restrictions for England. And the 78 voting against the measures included 55 from Prime Minister Johnson’s own Conservative Party, which reflects the fact that there’s increasing disquiet against further prolonged restrictions. Nevertheless, Johnson also told the House of Commons that if the Pfizer/BioNTech vaccine was approved, then it could start to be administered before Christmas, which raises the prospect that life could return closer to normal early next year.

Staying with vaccines, Pfizer/BioNTech have said that they have sought regulatory clearance for their Covid-19 vaccine in the EU with BioNTech adding that it could start shipping the first doses “within hours” after approval. Meanwhile, CNN has reported overnight that the US will see the first shipments of this vaccine delivered by December 15 while Moderna’s vaccine will arrive a week later.

In New York City, older residents and those with underlying health conditions were advised to remain at home and not have people over. This came as city hospitalisations rose by 242 yesterday, the largest one day rise since April. In better news, Dr Fauci said that US residents without co-existing conditions or elevated risks will get access to vaccines by April. He went on to say that, if Americans embrace vaccination to a high enough degree, herd immunity could be reached over the summer. The comments came in an online news conference with Colorado governor Polis. Overnight, Bloomberg has reported that the US CDC new guidance will cut quarantine time for individuals exposed to the coronavirus by as much as half. Across the other side of world, the Nikkei reported that Japan won’t require visitors to get vaccinated before arriving for next year’s Summer Olympics.

On Brexit, with just over 4 weeks to go until the end of the transition period, the chief political commentator of Times Radio reported yesterday that the trade talks had finally entered the so-called tunnel, which are intensified negotiations in the late-stage of talks. He said that “Neither side formally confirming tunnel status yet. No10 never recognise the term, but also not denying it.” There is some chatter that a deal as early as later this week could be on the cards. I say early but in reality this is very late in the day but the early refers to how soon that is to now! On the flip side there were also reports suggesting negotiators were bemused by reports that talks had entered a so called tunnel so no-one knows where we are apart from the two sides who are probably confused themselves! The EU’s chief negotiator is set to brief diplomats from the bloc’s 27 member states today on the progress of the negotiations. So expect more headlines and perhaps some more clarity on the state of negotiations.

Elsewhere in Europe, data yesterday showed the flash estimate of CPI inflation in the Euro Area remained at -0.3% for the 3rd month running in November, a tenth below expectations. However as in the US, inflation expectations have been on the up over the last week, with five-year forward five-year inflation swaps for the Euro Area now at a 3-month high of 1.23%. And on top of this, the dollar’s slide meant that the euro closed above $1.20 for the first time since April 2018. See here for why DB think the Euro rise continues.

To the day ahead now, and we’ll hear from Fed Chair Powell and Treasury Secretary Mnuchin again as they appear before the House Financial Services Committee. Otherwise, there’ll also be remarks from the Fed’s Williams and the BoE’s Haskel, and the Federal Reserve will be releasing its Beige Book. Elsewhere, data highlights include the Euro Area unemployment rate and German retail sales for October, while from the US we’ll get the ADP’s November report of private payrolls.

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 2.56 POINTS OR .07%   //Hang Sang CLOSED DOWN 35.10 POINTS OR .13%    /The Nikkei closed UP 13.44 POINTS OR 0.05%//Australia’s all ordinaires CLOSED DOWN 0.01%

/Chinese yuan (ONSHORE) closed UP AT 6.5651 /Oil UP TO 44.49 dollars per barrel for WTI and 47,23 for Brent. Stocks in Europe OPENED ALL MIXED//  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.5651. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.5576 TRADE TALKS STALL//YUAN LEVELS //TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC/TRUMP TESTS POSITIVE FOR COVID 19  : /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/USA

China has by far the biggest share in the rare earth market. If they stop the export on rare earths to the west that could be very devastating to many industries that rely on these metals.

Robert to me on this subject…

Big story

Robert to me on this:

This will set off the fireworks.
All the more reason for the world to turn away from China and stop selling them the natural resources within other nations. This will be the same tactic they will use in the future on other minerals as it is simply the way they operate as they are not a market driven or centric economy but one that is based on singular dominance of markets.
If the west does not figure this out soon, they will be under the Chinese boot. And one should not expect tolerance or market pricing as the same cruel behavior exhibited to their own citizens will be the way they project control outside their borders. A country which used its’ own people as slave labor is hardly a beacon of enlightenment or even success. As the reality of slave labor building economies departed western culture long ago. While teh Chinese used slavery as means to dominate manufacturing to their advantage, while teh west complained about child labor elsewhere and neglected to raise a voice for the Chinese people who have suffered the cruelty of the Party. What Australians are receiving from China is a harbinger of what they will do, where they dominant an economy. Australia waited too long to built markets to diversify its’ product exports and will now pay a steep price to escape the Chinese boot.
The levers of geopolitical control trade zones are well under way and within several years may only be the reality in markets
.
(courtesy Asia Times Financial)

China enforces new export controls, red letter day for rare earths

New law means China now has a mechanism to further reduce rare earth exports; and prices of these mineral elements have continued to rise, while some China hawks are calling for exports to the US and Japan to be cut to zero as ‘retaliation for Huawei’

China enforces new export controls, red letter day for rare earths
Rare earths are loaded on to trucks at the port of Lianyungang in eastern China’s Jiangsu province in this file photo from late 2010. Rare earth minerals are used worldwide in high-technology, clean energy and other products that exploit their special properties for magnetism, luminescence and strength. A new export control law has been implemented in a move described as trade retaliation against the United States. Photo: Wang Chun lyg / Imaginechina via AFP.

(ATF) China implemented its Export Control Law on Tuesday December 1, which looks likely to have a major impact on the rare earths sector and possibly other industries.

The Export Control Law was endorsed by the Standing Committee of the 13th National People’s Congress. It highlights the Chinese government’s determination to “uphold the rule of law and maintain trade fairness in the context of counter-globalisation”, the Party says.

The law aims to safeguard China’s security and interests in the current “complex international trade environment”, otherwise known as a trade war with the United States and a global recession caused by the coronavirus pandemic.

The law, to be overseen by China Customs officials, is China’s first special law in the field of export control, aside from cultural relics.

It stipulates that the state will implement export control on dual-use items such as military products, nuclear, and other goods, technologies, services, rare earths and other items related to national security and interests, and fulfilling international obligations such as non-proliferation.

The Export Control Law means China now has a mechanism to further reduce rare earth exports, according to Netease news.

If so, it is likely to cause the global supply of rare earth elements to shrink, so the price of these mineral elements has continued to rise recently, as demand for rare earths has increased.

Rare earths are now widely used in automobiles, electronic equipment and other fields. Taking the automobile industry as an example, according to data from the China Automobile Manufacturers Association, in October 2020, China’s new energy vehicle production was 165,000, a year-on-year increase of 94%. Automobile production was 2.48 million units, an increase of 8.8% year-on-year. So, there is considerable local demand for these mineral elements.

‘Unified export control’

Officials in charge of the Guangdong General Administration of Customs told Nanfang Daily the country implements a unified export control system, which is managed by formulating control lists, directories or catalogues, and implementing export licences. If the consignor of export goods or an agent of a declared enterprise needs export-controlled goods, it shall obtain a licence issued by the National Export Control Administration Department and submit it to Customs for verification.

According to the new law, export operators will face the confiscation of illegal income and maximum confiscation of unlicensed export control items, export control items beyond the scope of the export license, or export control items that are prohibited for export. That could result in a fine of 10 times the amount of illegal business operations. And, if the circumstances are serious, they will also be ordered to suspend business for rectification until their qualifications for exporting related controlled items are revoked.

The person in charge emphasized that Customs officials will strictly verify export licences in accordance with the law, and if there is evidence that the exported goods may fall within the scope of export control, it will challenge companies on exported goods and, if necessary, submit an organisational identification to the national export control administration.

Transit, trans-shipment, transportation, re-export of controlled items, or export from bonded areas, export processing zones and other special customs supervision areas and export supervised warehouses, bonded logistics centres and other bonded supervision places to overseas, also need to comply with the law.

‘Cut to zero’

Now the law has passed, the price of rare earths have continued to rise, with some China hawks calling for rare earth exports to the US and Japan to be cut to zero, according to Phoenix TV.

From late November, the three main types of rare earths – terbium oxide, praseodymium oxide and dysprosium oxide – rose to 8-year, 3-year, and 5-year highs, respectively. Rare earths are regarded as strategic materials due to the Sino-US technology war, so this is a key factor in why they face export controls and why the price for these elements has soared.

People in various sectors around the world are understandably concerned, because rare earths are essential raw materials for many military, and high-tech industries, and China accounts for up to 95% of the world’s exports of rare earths, some of it imported, processed and re-exported.

Judging from the content of the Export Control Law, China’s national security is mainly protected by the export of sensitive materials and technologies on the control list, and its applicable objects include all enterprises in China and foreign-funded enterprises.

According to numerous local media reports, China wants to manage the export of rare earths, “which will make it difficult for American companies to obtain cheap and high-quality rare earth resources as before.”

This is seen as direct retaliation for US restrictions on Chinese flagship firms such as Huawei, and cutting access to modern technologies such as top-end computer chips. Of course, other countries besides the USA use rare earths. And many have been working to develop mines and processing facilities.

The United States allocated $209 million for development of its rare earth industry in 2019. And in November 2018, the United States and Australia, which had at least a sixth of the world’s rare earth reserves at that time, started cooperation. They have identified 15 mineral development projects that include rare earths.

South Korea, Ireland and others are making similar moves.

end

HONG KONG/MAINLAND CHINA

Trump will not like this;  Hong Kong activists Joshua Wong and Agnes Chow jailed for defying Beijing

(zerohedge)

Hong Kong Activists Joshua Wong & Agnes Chow Jailed For Defying Beijing

In the latest act of repression from the Hong Kong government, which recently presided over the expulsion of pro-democracy ‘opposition’ lawmakers from its Legislative Council, activists Agnes Chow and Joshua Wong have been sentenced to prison time for their roles in the 2019 pro-democracy movement.

Wong on Wednesday was sentenced to 13.5 months in jail, while Chow was given 10 months. The former student leaders, along with another activist named Ivan Lam, who also received a short prison sentenced, pleaded guilty last week to charges related to a protest on June 21, 2019, just one of dozens of chaotic street protests/skirmishes between demonstrators and the HK Police.

They stood accused of organizing, taking part in and inciting others to participate in an unauthorized assembly. They had faced maximum sentences of five years.

Wong also faced other protest-related charges tied to “unauthorized” assemblies in October 2019 and on June 4, 2020, when Hong Kongers gathered to commemorate the victims of the Tiananmen Square massacre, officially known in China as “the June 4th incident”.

Chow is also accused of inciting secession, a charge under the new national security law, which could lead to her extradition to mainland China to face a maximum penalty of life imprisonment.

The 23-year-old who turns 24 on Thursday told friends visiting the detention center that she was “prepared” to go to prison for the first time, although she was “a bit worried” and disappointed she wouldn’t get to celebrate her birthday with family.

Before a hearing on Monday, Wong, who first came to international prominence for his role in the 2014 Umbrella movement demanding universal suffrage in the city-state, vowed to continue his activism despite the “political suppression” he faced under Hong Kong authorities, and the Beijing-imposed ‘national security’ law that was effectively bolted on to Hong Kong’s constitution (known as the “Basic Law”) by the CCP earlier this year.

For Wong, this will be his third jail term in 4 years.

“I want to be frank that, in the face of uncertainties, I just feel uneasy and anxious,” Wong wrote in an open letter penned during his detention. “However, as I said when I stepped into the dock in the courtroom, ‘Hang in everyone, I know the situation that the people outside face will be more difficult. Keep fighting.'”

4/EUROPEAN AFFAIRS

GERMANY/WIRECARD FRAUD

Not good: its seems that BAFIN has pointed out that Ernst and Young auditors new that some of the stuff Wirecard hiding some of their transgressions

(zerohedge)

German Regulator Reportedly Has Evidence Ernst & Young Helped Conceal Wirecard Fraud

German authorities have defended domestic regulators and politicians – including BaFin, the Germany equivalent of the SEC, along with Chancellor Angela Merkel’s finance minister Olaf Scholz – past the point of public believability. It’s clear, as former CEO Markus Braun’s lawyers are arguing, that the German officials who were tasked with holding companies accountable instead protected Wirecard – until Ernst & Young refused to sign off on the company’s financial statements earlier this year after failing to track down more than $2 billion that the company claimed was stashed in the Philippines.

Wirecard’s sudden slide into insolvency, which made several short-seller’s rich, led to the arrest of Braun (whose formerly sterling reputation as an evangelist for the transformative power of data and technology has likely been forever blemished) while former COO Jans Marsalek managed to successfully evade authorities (it’s believed he is hiding out in Russia, possibly with the protection of Russian intelligence services). Public fury was directed initially at Braun, who was released on €5 million bail, a massive sum for somebody who had the vast bulk of their wealth tied up in shares of a now-worthless company, but has since migrated to German regulators who ignored numerous reports from shortsellers over the years, even going on the offensive and targeting an investigative reporter from the FT, alleging some fantastical scheme about the reporter cooperating with short sellers.

In recent weeks, the perception that EY’s business in Germany would simply weather this storm without any lasting repercussions has faded as German lawmakers and regulators have called for a criminal investigation into EY.

They claimed that top managers at EY’s German unit were likely aware of Wirecard’s fraud (at least, on some level), and likely enabled the company for years.

And on Tuesday, the FT – the paper that masterminded the investigation that brought Wirecard down – reported that German regulators purportedly have evidence that EY signed off on some of the company’s results, even though auditors new some of the statements were “factually inaccurate”. Apas, Germany’s regulator that oversees auditing firms, has obtained the evidence, and is turning it over to prosecutors to help further a criminal probe.

Some of the wrongdoing dates to 2017, when EY reportedly gave Wirecard a pass despite the fact that the “issues” highlighted in EY’s complaints to the company couldn’t be easily resolved. In reality, the stonewalling of the audit team by executives at Wirecard was clearly suspect.

However, in 2017 EY was just days away from denying Wirecard the crucial all-clear, according to documents reviewed by Apas. On March 29 of that year EY warned Wirecard that a qualified audit was imminent and shared a draft version of a qualified opinion with its client, people familiar with the documents told the FT. One of the sticking points raised by EY were protracted delays to a forensic audit by EY’s anti-fraud team into alleged accounting manipulations at a Wirecard subsidiary in India, which was being stonewalled by Wirecard executives. Just days later, the auditors changed their minds. On April 5, they signed an audit opinion that stated: “Our audit has not led to any reservations.” Apas found that it was unreasonable to believe that the issues could have been resolved within a few days, according to people familiar with the matter. The watchdog told prosecutors that therefore EY’s unqualified audit was “factually inaccurate”.

In terms of personnel, it looks like the two key players on the EY side are Andreas Loetscher and Martin Dahmen, who were the lead partners of the EY unit charged with auditing Wirecard. Dahmen eventually left EY in 2018 to become the head of accounting at Deutsche Bank.

Last week the EY auditing partners, Andreas Loetscher and Martin Dahmen told MPs that they were being probed by Apas over their work for Wirecard and declined to give testimony to the parliamentary inquiry commission into Wirecard. EY told the Financial Times on Monday that because of “the ongoing confidentiality obligation” the firm and Mr Dahmen were unable to discuss details of the audit procedures at Wirecard. Based on its current understanding of the facts, “our colleagues conducted their audit procedures professionally, to the best of their knowledge and in good faith”, the firm said. The auditing firm stressed that it was “actively working towards a legally effective release from the confidentiality obligation after which we will be able to provide details.” Mr Loetscher, who in 2018 left EY to become Deutsche Bank’s head of accounting, declined to comment. Apas previously said that it categorically does not comment about its work, pointing to strict legal confidentiality requirements. Munich prosecutors are evaluating the evidence sent by Apas and have not decided whether to open a criminal investigation of EY partners. Under German law, auditors found guilty of such misconduct can be punished with up to three years in jail.

Around the time Dahmen left, Wirecard infamously tried to cover up the massive fraud by engineering a buyout of Deutsche Bank. Though that deal apparently died on the vine.

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/ISRAEL

Pat Buchanan: has Netanyahu boxed in the clueless Biden?

(Buchanan)

Has Bibi Boxed Biden In On Iran?

Authored by Pat Buchanan via Buchanan.org,

If Israel, as is universally believed and has not been denied, was behind the assassination of Iran’s leading nuclear scientist, questions arise:

Why would the Israelis kill him? And why would they do it now?

The scientist, Mohsen Fakhrizadeh, it is conceded, was a leader in Iran’s nuclear bomb program, but that program was disbanded in 2003.

Under George W. Bush, in 2007, all 17 U.S. intelligence agencies declared with “high confidence” that Iran no longer had a bomb program.

Four years later, the same intel agencies affirmed that finding.

Since 2015, Iran’s nuclear facilities, under the Iran nuclear deal, have been subject to U.N. surveillance and inspections. And Iran has neither produced plutonium nor enriched uranium to the 90% level needed for a bomb.

Israel claims Iran never stopped working on a bomb, but U.S. intel agencies and U.N. nuclear inspectors have agreed that the military nuclear program that Fakhrizadeh oversaw was ended in 2003.

So, again, why would Prime Minister Bibi Netanyahu authorize Mossad to send an assassination team to Iran to kill the nuclear scientist? And why now?

If Iran is actually running a secret program to build a bomb in violation of the nuclear deal, why not identify the site of the violation, demand that U.N. inspectors visit, expose Iranian duplicity to the world, and kill the deal?

Why kill the scientist?

From Netanyahu’s standpoint, there are, however, many motives to make the call to kill Fakhrizadeh.

To humiliate the Iranian regime. To demonstrate Mossad’s capacity to kill Israel’s enemies with impunity. To send a message to others working in Iran’s nuclear program that the regime’s security forces cannot protect them.

To Sunni and Gulf Arabs who see Iran as a sectarian and strategic rival and adversary, Israel’s ability to punish Iran and its regional militias with repeated, unanswered strikes makes Israel a far more desirable ally and partner than ever before.

But with this strike, Bibi was also sending a message to Joe Biden, who is seven weeks away from assuming the presidency.

What is Bibi’s message?

Mr. President-elect:

This Mossad operation should tell you how seriously we view Iran’s determination to build a nuclear bomb, and how existential a threat that would be for us. And we intend to deal with that threat sooner rather than later.

And if, on taking office, you try to rejoin the Iran nuclear deal and lift U.S. sanctions in return for Iran’s full compliance with the terms of that deal, then we will not be restricted in the actions we take to prevent that from happening.

As President Trump put America first, we put Israel first, and Iran tops the list of threats we intend to face — preferably with you, but if necessary, alone.

From Bibi’s standpoint, the killing of Iran’s top nuclear scientist seems to be a win-win-win proposition. Bibi’s personal scandals are eclipsed and put on the back burner. He is seen by Israelis as a man of action and decisive protector of the nation against its greatest threat.

Should Iran answer the assassination with a counterstrike, that could lead to Israeli retaliation, escalation, and war. This could turn Bibi into a wartime prime minister like Winston Churchill and fulfill his dream of having America bring its full air, naval and missile power to deliver a crushing blow to the Iranian military and the Ayatollah’s regime.

However, the assassination of Fakhrizadeh and Iran’s resolve to retaliate complicates — if it does not close — Biden’s path toward rejoining the nuclear deal and reconciling with Iran.

If the killing ignites a war, Tehran knows there is a real possibility that America would align with Israel, as Donald Trump detests the Iranian regime as much as Netanyahu does.

And if the “moderates” in Tehran fail to maintain the national honor by retaliating against Israel, that could result in a hardline regime winning in this year’s elections.

As Trump showed with the assassination of Gen. Qasem Soleimani in his car coming out of Baghdad airport, he does not recoil from direct action against perceived enemies.

Last week, the U.S. flew two B-52s out of Minot, North Dakota, to the Middle East. The USS Nimitz carrier group began moving out of the Indian Ocean toward the Persian Gulf.

Four days before the hit on the Iranian scientist, Netanyahu met secretly in a Red Sea port city with Saudi Crown Prince Mohammed bin Salman and Secretary of State Mike Pompeo.

Was Pompeo told what the Israelis were about to do? Did the U.S. know of, approve of, or not object to the attack? Do Americans want this war that seems closer today?

end

6.Global Issues

Michael Every on the world’s most important stories

(Michael Every)

Rabobank: Some Of These Cases Could Potentially Get To The Supreme Court

By Michael Every of Rabobank

Tidings of comfort and joy (and socks)

Another all-time high in US equity markets; a surge in US bond yields (10-years up as high as 0.93% before retracing slightly); EUR up to 1.2076, meaning USD down, down, down. Open the brandy and put out a mince pie!

Somebody was feeling awfully festive on 1 December.

Yes, we have further movement towards a US stimulus package, with a number below USD1 trillion now appearing to be small enough that everyone in DC concurs that it can fit into a Christmas stocking: even those involved in vicious internecine lawfare for or against President Trump. In short, a stimulus package that was seen as too small to help the US economy out of its slump a few months ago is being celebrated today when the economic damage (such as the return to a decline in manufacturing jobs according to the US ISM survey) is already deeper. Tidings of comfort and joy.

Meanwhile, that DC lawfare is still very real, even if it is increasingly not being covered in depth by US media, which is focusing instead on rumors of Trump considering pardons for friends and family (for what specifically is not mentioned), investigations of considerations of previous pardons (for whom for what?), and the sudden revelation that Attorney General Barr appointed Durham as a Special Counsel to investigate the Russiagate hoax (not to be confused with the Special Counsel to investigate Russiagate!) back in October but didn’t tell anyone ahead of the US election – which will potentially make life as interesting for a Biden presidency as the Mueller investigation did for Trump. Tidings of comfort and joy.

AG Barr also came out to say he has seen no evidence of electoral fraud that would overturn the result, which did make a media splash, and which the Trump campaign was forced to rebut, claiming the DOJ has been far from active on the ground. Crucially, however, for a market that has long given up on nuance or detail, Barr was specifically referring to *criminal* cases, and stated that the correct courts for US election remedy are instead civil – which is indeed the constitutional case. On that front, the lawfare is indeed still blazing away, even if the media aren’t paying too much attention.

Yesterday, for example, the Trump campaign provided what it claims is statistical evidence that there are a larger number of illegitimate ballots in several disputed states than the margin of Biden’s victory there – which is the legal benchmark of how one can overturn a US election result. To be clear, this does not mean the evidence will hold up in court, or even that it will be *heard* in court, because as many seasoned US observers make clear, this is as much a de facto political battle as it is a legal one.

Nonetheless, some of these cases could potentially get to either a sympathetic state supreme court, or to the Supreme Court. The outcomes there are far from certain even if so…yet as keeps being repeated here, the markets are **absolutely** certain that they know what is about to happen. Tidings of joy for whom exactly? At least the relevant lawyers’ pockets will be jingling all the way.

Meanwhile, are higher bond yields much comfort for bond holders or states swimming in debt? And is EUR heading for 1.21, for just one example, a comfort for the ECB, which already faces deflation for Christmas? More like a lump of coal in the stocking.

On which note, UK and EU negotiators are still apparently racing to strike a deal with their own lawfare regarding trade before the end of the week; and it is still unclear what the outcome will be. Does BoJo even know what he wants? Hopefully the UK negotiating team will be fully equipped with scotch eggs in both pockets at all times, given this seems to be the most essential item for Brits to hold to be able to keep calm and carry on.

In short, everyone seems to be full of seasonal good spirits, or just spirits if they have a scotch egg on hand, “because markets”, and it seems that in December every day of advent is going to have a little chocolate to gobble up.

Sometimes all one gets is socks.

end
CORONAVIRUS UPDATE/GLOBE

WHO Again Revises Mask Guidelines; Poland 14th Country To Top 1 Million Confirmed COVID Cases: Live Updates

Summary:

  • Gov Cuomo holds live COVID briefing
  • US hospitalizations hit yet another record
  • American cases bounce back after holiday week downtick
  • Russia promises vaccinations will start  next week
  • WHO again revises mask guidelines
  • Italy imposes holiday guidelines
  • Poland latest country to top 1 million confirmed cases
  • Italy imposes new restrictions

* * *

Update (1130ET): NY Gov Andrew Cuomo is holding another live press briefing on Wednesday as complaints about NYC sheriffs deputies shutting down local businesses reach a fever pitch.

Cuomo has hinted at the possibility of more restrictions and just the other day said he was moving to open emergency hospital capacity.

* * *

Hospitals across the US, especially in hard-hit parts of the Midwest, are seeing record numbers of patients, with some warning that they’re dangerously close to reaching max capacity of COVID-19 beds, a point at which the quality of care for the most vulnerable patients severely deteriorates due to staff and other resource shortages.

Indiana and Nevada are now reporting more than 500 currently hospitalized per million people, along with South Dakota. For reference, the highest value of hospitalizations per million people we’ve seen was 968 in New York back in April.

The number of currently hospitalized patients nationwide is set to top 100k, as daily cases start to pick back up following a holiday week slump.

US hospitals reported the most COVID-linked deaths since May in November, according to Bloomberg data.

The biggest news internationally Wednesday is yet another step in the process to vaccinate the globe (or at least the developed world) as the UK’s primary pharma regulator announced that it had become the first western country to grant emergency-use authorization, promising that the risks of waiting for a more comprehensive review were far outweighed by the risks of allowing COVID-19 to continue to ravage the elderly and vulnerable, along with the health-care workers tasked with caring for them.

The authorization, which follows similar moves by China and Russia (though no other regulator in the west has actually signed off on experimental vaccines being administered to health-care workers) has clearly made Russian President Vladimir Putin feel some type of way, because the Russian President announced Wednesday that mass vaccinations in Russia would begin next week.

Overnight, the WHO warned that people should wear masks indoors and outdoors where physical distancing of at least 1 meter can’t be maintained, especially in areas with community or cluster transmission, the World Health Organization said in its updated guidance for mask use.

Of course, this isn’t the first time the WHO has tweaked its guidance on masks.

Finally, Poland – Germany’s relatively tiny neighbor – has just become the latest European country to pass 1 million cases, becoming at least the 14th country to pass that milestone.

Here’s more news from Wednesday morning:

Austria is reopening schools for students under 14 years of age, as well as most stores and services such as hairdressers from next week, subject to social distancing rules. Restaurants and hotels will remain shuttered over Christmas and New Year’s, Chancellor Sebastian Kurz told journalists in Vienna (Source: Bloomberg).

Interpol issued a global warning to law enforcement to prepare for organized crime to target Covid-19 vaccines, saying authorities should expect “an onslaught of all types of criminal activity” linked to the shot (Source: Bloomberg).

The Italian government is set to tighten estrictions during the Christmas and New Year holiday season. Health Minister Roberto Speranza told the Rome Senate that a new decree, due to come into force on Friday, will prolong a three-tier system that tailors restrictions to regional contagion levels. With cabinet members divided on how tight the new curbs should be, measures under consideration include banning travel between regions, closing hotels in mountain areas and ski-lifts, and keeping a 10 p.m. curfew in force, according to officials who asked not to be identified discussing confidential talks (Source: Bloomberg).

7. OIL ISSUES

end

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 1.12059 DOWN .0011 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/TRUMP POSITIVE WITH VIRUS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /MIXED

USA/JAPAN YEN 104.63 UP 0.325 (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 1.2948   UP   0.0015  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.2948 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 11 basis points, trading now ABOVE the important 1.08 level FALLING to 1.2059 Last night Shanghai COMPOSITE DOWN 2.56 POINTS OR .07% 

//Hang Sang CLOSED DOWN 35.10 PTS OR .13% 

/AUSTRALIA CLOSED DOWN 0,01%// EUROPEAN BOURSES ALL MIXED

Trading from Europe and Asia

EUROPEAN BOURSES ALL MIXED

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 35.10 POINTS OR .13% 

/SHANGHAI CLOSED DOWN 2.56 POINTS OR ,07% 

Australia BOURSE CLOSED DOWN 0.01% 

Nikkei (Japan) CLOSED UP 13.44  POINTS OR 0.05%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1821.50

silver:$23.90-

Early WEDNESDAY morning USA 10 year bond yield: 0.930% !!! DOWN 0 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 1.670 DOWN 0  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 91.40 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: 0.07% DOWN 1 in basis point(s) yield from YESTERDAY/

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

SPANISH 10 YR BOND YIELD: 0.10%//DOWN 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.64 DOWN 4 points in basis points yield from yesterday./

the Italian 10 yr bond yield is trading 54 points higher than Spain.

GERMAN 10 YR BOND YIELD: FALLS TO –.52% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.16% 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 1.2092  UP     .0021 or 21 basis points

USA/Japan: 104.52 UP .223 OR YEN DOWN 22  basis points/

Great Britain/USA 1.3349 DOWN .0072 POUND DOWN 72  BASIS POINTS)

Canadian dollar DOWN 3 basis points to 1.2936

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The USA/Yuan,  CNY: close UP TO 6.5634    ON SHORE  (UP)..

THE USA/YUAN OFFSHORE:  6.5446  (YUAN up)..

TURKISH LIRA:  7.87  EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield  at +0.03%

Your closing 10 yr US bond yield UP 3 IN basis points from TUESDAY at 0.953 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.702 UP 3 in basis points on the day

Your closing USA dollar index, 91.18 down 13  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 78.66  1.23%

German Dax :  CLOSED DOWN 69.06 POINTS OR .52%

Paris Cac CLOSED UP 1.37 POINTS 0.02%

Spain IBEX CLOSED UP 80.00 POINTS or 0.98%

Italian MIB: CLOSED DOWN 127.72 POINTS OR 0.58%

WTI Oil price; 45.55 12:00  PM  EST

Brent Oil: 48.56 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    75.08  THE CROSS LOWER BY 0.72 RUBLES/DOLLAR (RUBLE HIGHER BY 72 BASIS PTS

TODAY THE GERMAN YIELD FALLS  TO –.52 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 f0r Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OILPRICE 4:30 PM :  45.20//

BRENT :  48.10

USA 10 YR BOND YIELD: … 0.943..up 1 basis points…

USA 30 YR BOND YIELD: 1.698 up 3 basis points..

EURO/USA 1.2102 ( UP 31   BASIS POINTS)

USA/JAPANESE YEN:105.37 UP .179 (YEN DOWN 18 BASIS POINTS/..

USA DOLLAR INDEX: 91.11 DOWN 21 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.3362 DOWN 60  POINTS

the Turkish lira close: 7.863

the Russian rouble 75.09   UP 0.70 Roubles against the uSA dollar. (UP 70 BASIS POINTS)

Canadian dollar:  1.2922 UP 11 BASIS pts

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

The Dow closed UP 40.74 POINTS OR 0.14%

NASDAQ closed DOWN 5.74 POINTS OR 0.05%


VOLATILITY INDEX:  21.08 CLOSED UP .31

LIBOR 3 MONTH DURATION: 0.232%//libor dropping like a stone

USA trading today in Graph Form

Bonds Bloodbath As Jobs Flop, Gold Pops, Dollar Drops

After a weak ISM manufacturing employment print, deteriorating initial claims data, and now ADP’s big disappointment, the jobs picture is deteriorating fast in America…

Source: Bloomberg

But don’t let that fool you… there’s always hope for ‘stimulus’… that lifted stocks from their ugliness intraday. But after yesterday’s exuberance, today was quiet-ish – Small Caps led the day as Nasdaq lagged but the overall moves were modest…

The Small Cap outperformance relative to mega-tech look familiar again…

One thing is for sure… it’s not the economy, stupid!

Source: Bloomberg

Global Central Banks are giving it all they can…

Another day, another meltup in Energy stocks…

Source: Bloomberg

Value continues to hold its gains versus momentum but, despite the recent yield spike, remains notably decoupled from its bond-regime from October…

Source: Bloomberg

CRM crashed today (and WORK was lower) after they announced their hugely expensive deal…

But still, no one wants any protection…

Source: SpotGamma

But the big headlines of the day were saved for the bloodbathery in bond-land (note the surge in yields hit around 7amET again and stalled at the EU close)…

Source: Bloomberg

10Y Yields pushed up to recent resistance (election and vaccine spike highs)…

Source: Bloomberg

The yield curve soared to its steepest since Nov 2017…

Source: Bloomberg

The dollar popped and dropped on the day, ending lower once again…

Source: Bloomberg

Dollar’s reversal today came on Yuan strength as headlines suggested Biden would not roll back Trump tariffs…

Source: Bloomberg

Bitcoin held steady today around the $19k mark…

Source: Bloomberg

And – for a change – gold paid attention to the dollar weakness and rallied…

…with the precious metal rising back above its 200DMA…

WTI ripped higher on the heels of headlines proclaiming “headway” was made among OPEC members (despite a notable surge in product stocks)…

Finally, we better hope that Copper is wrong or the world’s stock market investors are in for a hell of a surprise when rates soar…

Source: Bloomberg

Though we have seen this kinda of disconnect before… and it didn’t end well…

Source: Bloomberg

And bear in mind that bonds are now ‘cheaper’ than stocks once again…

a)Market trading/LAST NIGHT/USA

b)MARKET TRADING/USA//Non farm payrolls

ii)Market data/USA

Usually the ADP report is bullish.  Rarely do we get a big miss. Does this suggest that the labour market weakness is accelerating

(zerohedge)

Big Miss On ADP Employment Suggests Labor Market Weakness Accelerating

Amid a second wave of lockdowns, weak ISM employment data, and a disappointing rebound in initial jobless claims, analysts expected ADP employment data to hold steady with a gain of 440k in November (after disappointing expectations in October). However, ADP printed a hugely disappointing 307k addition (the weakest addition since July)…

Source: Bloomberg

“While November saw employment gains, the pace continues to slow,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

“Job growth remained positive across all industries and sizes.”

Both goods and services sectors added jobs but at a slower pace…

Small and Medium-sized business added the most jobs…

For now, signals are that the US labor market is fading fast…

END

iii) Important USA Economic Stories

GOP plaintiffs ask the Supreme Court of the uSA to block Pennsylvania certification.

(EpochTimes)

GOP Plaintiffs Ask SCOTUS To Block Pennsylvania Certification

Authored by Simon Veazey via The Epoch Times,

The Republican plaintiffs who are challenging legislation that allowed mail-in ballots from all comers in Pennsylvania, today filed a request to the Supreme Court to block the state from certifying the election.

The state Supreme Court had dismissed the case on Nov. 28, overturning a temporary block on election certification issued by a lower court.

Challenging that ruling, the emergency application for injunction, dated Dec. 1,asks the Supreme Court to prohibit the Pennsylvania governor and secretary of state from “taking official action to tabulate, compute, canvass, certify, or otherwise finalize the results of the election.”

“To the extent that the above-prohibited actions have already taken place, petitioners seek an injunction to restore the status quo ante, compelling respondents to nullify any such actions already taken, until further order of this court,” says the petition.

The emergency application essentially asks the court to put a temporary hold on certifying the state election pending the filing of a full writ of certiorari – asking the court to review the lower court decisions.

The case was filed by Rep. Mike Kelly (R-Pa.) and others. They claim that an act passed last year by the state legislature that allows voting by mail without excuse violated the state constitution.

The state Supreme Court dismissed the case with prejudice, saying that the lawsuit had not been filed in a “timely manner,” since the act in question was signed into law on Oct. 31, 2019.

That ruling, however, appears to leave open the broader merits of the case – that the law, Act 77, requires an amendment to the state constitution.

In this screenshot from the RNC’s livestream of the 2020 Republican National Convention, Pennsylvania congressional nominee Sean Parnell addresses the virtual convention on Aug. 24, 2020. (Courtesy of the Committee on Arrangements for the 2020 Republican National Committee via Getty Images)

One of the plaintiffs, Republican congressional candidate Sean Parnell, told KDKA on Nov. 30:

“While we believe that Act 77 is certainly a state issue, we also believe that there are very important federal questions nested within it. So what we’re doing is we’re looking to appeal to the Supreme Court on those federal questions.”

The petition, filed with Judge Samuel A. Alito, poses two questions for the Supreme Court to answer:

  1. Can a state violate its own constitutional restrictions without violating the U.S. constitutional clauses relating to elections and due process?
  2. And did the Pennsylvania Supreme Court violate the First and Fourteenth Amendments of the U.S. Constitution “by dismissing with prejudice the case below, on the basis of laches, thereby foreclosing any opportunity for petitioners to seek retrospective and prospective relief for ongoing constitutional violations?”

The state Supreme Court said on Nov. 28 that the petitioners waited until days before the county of boards of election were required to certify the election results, which could “result in the disenfranchisement of millions of Pennsylvania voters” who voted by mail.

“It is beyond cavil that petitioners failed to act with due diligence in presenting the instant claim,” the court wrote.

Parnell told KDKA that it was a “Catch-22” situation.

 “Had I filed it earlier, I would have probably not been able to bring the case into court because I wouldn’t have had legal standing,” he said.

“So they would have probably said, ‘Well, the harm that you’re alleging is speculative.’”

Parnell said that the case was not about whether mail-in ballots are good or bad per se, but about state constitutional procedure.

“Democrat or Republican, if the citizen learns that his law is unconstitutional, it’s our duty and responsibility as citizens to challenge that law,” he said, noting that he was being criticized by some Republicans for his actions.

The lawsuit is filed against the state, the majority Republican general assembly, Gov. Tom Wolf, and Pennsylvania Secretary of State Kathy Boockvar.

In the state Supreme Court ruling, Chief Justice Thomas Saylor issued a separate opinion agreeing to reverse the preliminary injunction. However, Saylor said he believes the Republican petitioners should still be able to argue their case about the constitutional validity of Act 77.

“I find that the relevant substantive challenge raised by appellees presents troublesome questions about the constitutional validity of the new mail-in voting scheme,” Saylor wrote.

Shortly after the appeal was filed, Senator Ted Cruz issued a statement in support:

END

Very credible … righteous anger should be in the minds of all voters as it an insult to everyone who voted as clearly they do not care about the value of people’s votes.
Patrick Byrne
END
TROUBLE for DC Metro as they face massive cuts to rail and bus service and they expect 1/3 of all workers to
be terminated.
(zerohedge)

D.C. Metro Faces Massive Cuts To Rail, Bus Service; A Third Of All Workers To Be Terminated

It’s not just New York that is facing draconian cuts to its mass transit infrastructure and workforce as the city slides into financial ruin: the country’s capital is doing everything it can to catch up. Facing a hole in the budget of nearly a half-billion dollars, the general manager of Washington D.C’s Metro is proposing massive budget cuts to rail and bus service that would take effect this summer.

General Manager Paul Wiedefeld said in September that without more federal help, big cuts would be needed. Since then things have only gone from bad to worse and as WJLA reports, overall rail ridership is down more than 85% most weekdays, while bus ridership is less than half what it was in 2019.

Among the things Wiedefeld is proposing for Metrorail:

  • Closing 19 stations – Archives, Arlington Cemetery, Cheverly, Clarendon, Cleveland Park, College Park, East Falls Church, Eisenhower Avenue, Federal Center SW, Federal Triangle, Greensboro, Grosvenor-Strathmore, Judiciary Square, McLean, Morgan Boulevard, Mount Vernon Square, Smithsonian, Van Dorn Street, Virginia Square-GMU
  • Eliminating rail service on Saturday and Sunday
  • Having trains run only every half hour on each line. Stations served by two lines would have trains every 15 minutes as would Red Line stations between Silver Spring and Medical Center
  • Closing rail stations early at 9 p.m. weekdays
  • Reintroducing “turnbacks” where not all Red and Yellow line trains go to the end of the line, and only having Silver Line service run between Ashburn (when it opens) and Ballston

In addition, Metrobus would also face big cuts. Wiedefeld is proposing only having a total of 41 bus routes. Those routes would be longer, covering the same territory that 60 bus lines currently cover.

Wiedefeld said overall bus service would be about 45% of pre-COVID-19 levels, adding that bus service would actually be added on weekends to try to make up for having no weekend rail service. And although Wiedefeld has been trying to minimize the number through buyouts and negotiations with the union to not give salary increases next year, he says thousands of jobs would be cut under his proposal.

“We’re looking at roughly 2400 hundred positions that we have to eliminate on top of the 1400 that we’re eliminating right now in [current] budget,” he said. “So that’s roughly 3800 positions, almost a third of our entire workforce. So that’s extremely difficult.”

Metro has lost hundreds of millions of dollars in fare money from riders after the pandemic caused ridership numbers to plummet. Although Wiedefeld expects some riders to come back next year, he doesn’t think it will be nearly enough to avoid big cuts. He expects rail and bus ridership combined in the fiscal year 2022 — which runs from July 1, 2021, until June 30, 2022 – to be about 34 percent of what it was pre-pandemic.

Most of Metro’s fare revenue money comes from rail ridership, which is also the ridership that has been hurt the most by the pandemic. A higher percentage of bus riders have continued riding than rail riders.

Wiedefeld says there are potential ways the need for such severe cuts would be minimized. They include if a vaccine is successful and if Congress passes a bill to provide relief money as it did much earlier in the pandemic.

If passed the cuts would take effect July 1.

Wiedefeld is also proposing using $250 million in money that Metro had planned to use on maintenance for capital budget costs instead.

Mayor Bowser provided the following statement in a tweet:

WMATA’s deeply troubling proposal is another reminder of the critical need for federal stimulus to revive our economy and to preserve our way of life. Not too long ago with our partners in the region and our federal government, we put Metro on the right track to meet the needs of residents and visitors alike. Regardless of party or ideology, we must once again come together to save Metro.

END
Trump threatens to veto its defense bill which funds the military unless social media protections are
scrapped. Democrats are now in a bind..
(EpochTimes)

Trump Threatens Veto Of Defense Bill Unless Social Media Protections Scrapped

Authored by Zachary Stieber via The Epoch Times,

President Donald Trump late Tuesday threatened to veto defense legislation unless rules shielding technology companies from most liability lawsuits are changed.

Section 230, which is a liability shielding gift from the U.S. to ‘Big Tech’ (the only companies in America that have it – corporate welfare!), is a serious threat to our National Security & Election Integrity. Our Country can never be safe & secure if we allow it to stand,” Trump wrote on Twitter.

“Therefore, if the very dangerous & unfair Section 230 is not completely terminated as part of the National Defense Authorization Act (NDAA), I will be forced to unequivocally VETO the Bill when sent to the very beautiful Resolute desk. Take back America NOW. Thank you!” he added.

The NDAA is approved by Congress every year to fund the military.

Democratic lawmakers quickly reacted to Trump’s threat.

“I have written a bipartisan bill to reform Section 230 but the idea that it should be repealed, with no hearing, in the defense bill, is goofy. You will know who is serious about policy making in this space by whether or not they reflexively agree [with] Trump here,” Sen. Brian Schatz (D-Hawaii) wrote on Twitter.

Senate Minority Leader Chuck Schumer (D-N.Y.) added, “Are Senate Republicans still so afraid of the whims of Donald Trump’s Twitter account that they’ll stand with him and hold up a pay raise for our troops?”

Senate Minority Leader Charles Schumer (D-N.Y.) speaks in Washington on Dec. 1, 2020. (Tasos Katopodis/Getty Images)

Trump has long derided Section 230 of the Communications and Decency Act, which protects social media companies from liability for what their users post.

The act positions providers of “an interactive computer service” from being treated as publishers, a position critics say is increasingly at odds with how tech giants like Twitter and Facebook act in reality.

The companies have ramped up censorship of users, including Trump, in recent months, even hiding some of the president’s posts from the public unless they click a warning label.

Officials from both parties have expressed interest in reforming Section 230 but most of the enthusiasm to do so comes from Republicans, who have been far more targeted by the tech companies.

“Section 230 basically allows social media platforms like Twitter and Facebook to pass on information without legal liability. If a newspaper does something you don’t like, you think they’ve slandered you in a certain way, you can sue them,” Senate Judiciary Chairman Lindsey Graham (R-S.C.) said at a hearing last month that involved Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg.

Tech executives have said they understand the push to alter Section 230 and have put forth their own ideas for how to do so, including requiring moderation processes and practices be published for the public to peruse.

“It’s critical as we consider these solutions, we optimize for new startups and independent developers,” Dorsey told Graham’s committee. “Doing so ensures a level playing field that increases the probability of competing ideas to help solve problems going forward.”

iv) Swamp commentaries

THE CROOKED CNN CAUGHT BY PROJECT VERITAS

(zerohedge/Project Veritas)

Project Veritas Infiltrates CNN ‘Rundown’ Calls; Execs Trash Trump, Call Tucker Carlson ‘White Supremacy Hour’

Project Veritas has done it again – this time having surreptitiously recorded CNN‘s 9 a.m. morning ‘rundown’ calls for months, during which they recorded CNN president Jeff Zucker and other executives telling their fake news foot soldiers how to spin the news.

The first batch of several upcoming dumps has dropped with the hashtag #CNNTapes, featuring Zucker and other executives suggesting they need to ‘not normalize’ Trump’s behavior, target Senator Lindsey Graham (R-SC), and that Fox News host Tucker Carlson’s show is “white supremacy hour.”

Highlights via Project Veritas (emphasis ours):

  • CNN President Jeff Zucker: “This is a president who knows he’s losing, who knows he’s in trouble, is sick, maybe is on the aftereffects of steroids or not. I don’t know. But he is acting erratically and desperately, and we need to not normalize that.”
  • Zucker: “You know, this is what we’ve come to expect for the last three and a half years, four years, but it clearly is exacerbated by the time that we’re in and the issues that he’s [Trump] dealing with. I think that we cannot just let it be normalized. He is all over the place and acting erratically, and I think we need to lean into that.
  • Zucker: “Frankly, if we’ve made any mistake, it’s been that our banners have been too polite, and we need to go well after Lindsey Graham.
  • Zucker: “There’s a ton going on. Let’s stay strong. Let’s stay newsy. Let’s stay urgent. Let’s be smart. There is a lot of news out there, and Lindsey Graham really deserves it.”
  • David Vigilante, CNN General Counsel: “Yeah, I was just going to say, if you’re going to talk about the story, I think it’s unavoidable that you have to talk about the naked racism of Tucker Carlson. Because that’s really what drove this anti-diversity push, you know, Trump watches Tucker Carlson’s show and then reacts. And just as sort of the white supremacy hour they have on Fox News every night, I think it’s the — You can’t disconnect the two.”
  • Stephanie Becker, CNN field producer: “On the issue of why it’s important to get the transition going right, the 9-11 report talks about one of the problems was that the trouble that was brewing that lost during the transition. So, if you want a good, concrete example of what happens when you don’t have a good transition, well, look at the Twin Towers.

END

end

Owner Of NYC Bar Arrested Days After Declaring “Autonomous Zone” To Dodge Pandemic Restrictions

The co-owner of a bar on Staten Island which declared itself an ‘autonomous zone‘ after its liquor license was yanked over COVID-19 lockdown violations was arrested and perp-walked out of the business in handcuffs on Tuesday night.

Photo via ABC7NY

According to Deputy Sheriffs, Mac’s Public House general manager and co-owner Daniel Presti was charged with several offenses, including obstructing governmental administration, for continuing to operate the establishment despite being in an ‘orange zone’ – where indoor dining is not allowed and there is a 10 p.m. dining curfew, according to NY1.

To try to get around those rules, Mac’s tried to offer free food and drinks with a suggested donation.

The state stripped the bar of its liquor license last week, and the city health department ordered the bar to close.

The state Liquor Authority had said offering alcohol for free is not a “loophole” and that a liquor license is needed to sell or serve alcohol.

On Tuesday, the city Buildings Department ordered the business to vacate.

Despite that order, investigators say plainclothes deputies saw 14 people inside eating and drinking inside Tuesday night.

Deputies arrested Presti and gave employees appearance tickets for violating city and state laws. –NY1

Following the arrest, approximately 50 people gathered outside Mac’s for a peaceful protest.

You don’t selectively enforce. You have all of these big box businesses that are wide open, making billions of dollars and these people, if they don’t survive, they’re going to go to ugly extremes, and that’s what’s going to happen, it’s going to be worse than the virus itself,” said protester Scott Lobaido.

Police stand outside Mac’s Public House on Tuesday, Dec. 1, 2020 at around 6:46 p.m. (Staten Island Advance/Irene Spezzamonte)

State Sen. Andrew Lanza (R) arrived on scene and delivered a speech to the crowd, which included dozens of restaurant owners from across Staten Island who came in support of Presti and co-owner Keith McAlarney.

“This order simply says that they need to cease and desist,” said Lanza. “Nowhere here is there an arrest warrant, nowhere here is anything about arresting anyone on their private property. So I’ll ask, [and] you don’t have to answer … why was he arrested? I was told you would tell me why he was arrested and now I’m asking for that answer.”  Last week, the state of New York issued a Section 16 order from Health Commissioner Dr. Howard A. Zucker ordering Macs to follow coronavirus restrictions – with failure to do so resulting in possible fines of up to $10,000 per day. Mac’s liquor license was suspended on Nov. 27 by unanimous vote, according to silive.com.

People are not happy…

end

Despite Optimism For New Stimulus Deal “By The Weekend”, Two Sides Remain Far Apart

Following yesterday’s reflationary frenzy driven by optimism that a fiscal stimulus deal was (again) just around the corner, markets have realized that despite overtures by both parties, Republicans and Democrats still remains far apart on a compromise, even a “mini” targeted deal which leads to something bigger next year.

For those who missed the Tuesday action, House Speaker Nancy Pelosi and Schumer presented a new stimulus proposal to McConnell and Treasury Secretary Steven Mnuchin, though they inexplicably refused to release details. McConnell responded by circulating his own plan to fellow Republicans, saying it had the blessing of President Donald Trump. While he labeled it a new proposal, an outline distributed to GOP senators showed it was largely a revision of an earlier $500 billion plan that had been rejected by Democrats as inadequate. At the same time, a bipartisan group of lawmakers from the House and Senate offered a $908 billion compromise package, which so far hasn’t been embraced by leaders in either party.

So picking up where we left off yesterday on Wednesday, House Majority Leader Steny Hoyer said that House and Senate leaders are striving for a deal on a pandemic relief package by the weekend to set up votes by the middle of next week. The Maryland Democrat said he talked with Senate Majority Leader Mitch McConnell on Monday and they agreed “it would be optimal if we could get to an agreement by this weekend”; and while he acknowledged that timetable was optimistic, he said the recent flurry of proposals on a compromise offer “positive steps” forward for the long-stalled negotiations. Hoyer also said the continued spread of the coronavirus across the country – which explains why reports of covid’s spread did not fade away after the election – is adding urgency to efforts to wrap up congressional business so members can return home and safely quarantine before the holidays.

Alas, despite the “optimistic” rhetoric, both sides continue be hold to some of the earlier positions that left negotiations at a standstill. They again accused each other of putting partisanship ahead of compromise, and it was unclear on Wednesday whether Democrats and Republicans have moved far enough to provide a breakthrough according to Bloomberg.

Case in point, Senate Democratic leader Chuck Schumer showcased the dividing lines this morning when he blasted McConnell’s latest plan as “another inadequate partisan proposal.” Meanwhile, McConnell showed no sign of budging in remarks on the Senate floor reiterating the need for a “targeted” approach for any new stimulus. Schumer separately highlighted Democratic opposition to liability limitations for businesses over Covid-19, something that’s been a priority for McConnell.

“The latest Republican offer on Covid will include immunity for corporations who put their workers at risk from Covid but not a dime for workers who lost their jobs because of the pandemic,” Schumer said. “The Republican leader should not waste the Senate’s time on another inadequate partisan proposal and instead should sit down with Democrats to begin a true bipartisan effort to quickly meet the needs of the country.”

Also on Wednesday, Mnuchin told reporters Wednesday that he had spoken “briefly” with Pelosi Tuesday about her new pitch, but declined to offer public comment on it. He said that he didn’t plan to speak with her again Wednesday. Asked what Trump will sign, Mnuchin said Trump favors the approximately $500 billion McConnell plan. Prior to losing the election, Trump said he wanted more than $2.2 trillion in stimulus.

Meanwhile, also on Wednesday, during the second day of Mnuchin and Powell’s testimony in Congress, this time before the House, the duo continued to call for additional fiscal support for the economy. Mnuchin said he would spend more time reviewing yesterday’s $908 billion bipartisan proposal but said he looked forward to making progress on Senate Majority Leader Mitch McConnell’s much smaller plan.

Mnuchin and Powell agreed that help for small businesses is a top priority. Mnuchin made a direct appeal for permission to use unused Cares Act Money to revive the Paycheck Protection Program. Powell went further by also appealing to lawmakers to support aid for state and local authorities, a step Republicans have rejected.

Even as Congress struggles to pass even a targeted bill, it faces other hurdles: over the next 10 days, Congress also has to deal with passing a $1.4 trillion annual spending bill to fund government operations. The U.S. government has been working under a stopgap measure since the fiscal year began on Oct. 1. That expires Dec. 11, and missing the deadline would trigger a partial government shutdown.

Missouri Republican Senator Roy Blunt said getting the spending bill finished is key to getting other legislation wrapped up, including any pandemic relief: “If we get it done, it opens the potential door for other things,” Blunt said.

Congressional leaders also are moving to bring the annual defense authorization bill for a vote despite Trump threatening to veto it unless Congress abolishes a law that protects technology companies from liability over most user content.

END

Beige Book shows 4.12 districts see little or no growth due to lockdowns

(zerohedge)

Beige Book Darkens As 4 Of 12 District Sees “Little Or No Growth”, Optimism Wanes On New Lockdowns

While superficially the Fed’s latest Beige Book, which was based on data collected before Nov 20, toed the “modest recovery” party line with most of the Fed 12 district characterizing economic expansion as the trite “modest or moderate”, it certainly had a dark shadow as four districts described “little or no growth”, while five narratives noted that activity remained below pre-pandemic levels for at least some sectors.

Worse, Philadelphia and three of the four Midwestern Districts observed that activity began to slow in early November as COVID-19 cases surged. This deterioration, however, was offset by reports which indicated higher-than-average growth of manufacturing, distribution and logistics, homebuilding, and existing home sales, “although not without disruptions.”

Continuing the trend of pain in CRE, districts also reported “some deterioration of loan portfolios, particularly for commercial lending into the retail and leisure and hospitality sectors.” As a result, an increase in delinquencies in 2021 is more widely anticipated. And while most districts reported that firms’ outlooks remained positive, optimism has waned – many contacts cited concerns over the recent pandemic wave, mandated restrictions (recent and prospective), and the looming expiration dates for unemployment benefits and for moratoriums on evictions and foreclosures.

Focusing on employment, the data was modestly good as nearly all Districts reported that employment rose, but for most, the pace was slow, at best, and the recovery remained incomplete. Those firms that were hiring continued to report difficulties in attracting and retaining workers, while the sharp rise in COVID-19 cases had precipitated more school and plant closings and renewed fears of infection, which have further aggravated labor supply problems, including absenteeism and attrition. Providing for childcare and virtual schooling needs was widely cited as a significant and growing issue for the workforce, especially for women—prompting some firms to extend greater accommodations for flexible work schedules. In several Districts, firms feared that employment levels would fall over the winter before recovering further. Despite hiring difficulties, firms in most Districts reported that wages grew at a slight or modest pace overall. However, many noted greater pressure to raise rates for low-skilled workers, especially in outlying areas. Staffing firms described greater placement success with competitive rates, and one firm instituted a minimum wage rate for its industrial clients.

In what may comes as a shock to the Fed, firms in most districts reported modest to moderate increases of input prices, while the selling prices of final goods rose at a slight to modest pace. Contacts noted that COVID-19 cases have caused ongoing disruptions and delays among short-staffed producers and shippers—raising transportation costs, which are then passed through to buyers.

Looking at the word count of the beige book, there was a fractional improvement in the “slowness” category with 30 instances of “slow” in December, down from 31 in October, although concerns about covid clearly jumped with mentions of covid or coronavirus spiking from 41 to 53 in December, the most since April.

Finally, here is a highlight of key observations by district:

Boston

Manufacturers reported increased revenues from a year ago, including some strong gains. Retailers and staffing firms continued recovering toward pre-pandemic levels, while the hospitality and tourism sectors remained hard-hit. Uncertainty about the course of the pandemic, vaccines, and possible relief measures added caution to positive outlooks.

New York

The regional economy has been flat, and the labor market has remained weak. Manufacturing growth slowed, consumer spending and tourism were little changed, and a number of service industries saw declines in activity. Commercial real estate softened further, but most residential sales markets continued to show strength. Wages and other business input costs picked up modestly, while selling prices were little changed.

Philadelphia

Business activity held steady during the current Beige Book period and remained below levels attained prior to the onset of COVID-19. However, sharply rising COVID-19 cases triggered a downward trend in early November and heightened concerns over anticipated layoffs, foreclosures, evictions, and bankruptcies. Meanwhile, modest job growth, slight wage growth, and modest inflation continued.

Cleveland

Economic activity increased moderately, and staff levels increased slightly. Firms connected to IT, housing, and consumer durables fared better than those connected to travel, energy, and hospitality. Supply chain constraints boosted transportation costs and prices for certain construction and manufacturing inputs. Contacts expected a modest improvement in activity, but hiring plans were restrained because of the pandemic’s uncertain path.

Richmond

The regional economy grew moderately in recent weeks. Employment rose and demand for some professional business occupations was strong. Wage and price growth were modest. The housing market remained robust, and commercial real estate leasing improved somewhat. Port and trucking volumes reached robust levels and manufacturing activity picked up.

Atlanta

District economic activity modestly expanded. Labor markets continued to improve. Contacts noted some nonlabor costs rose. Retail activity and auto sales were mixed. Activity in tourism and hospitality picked up slightly. Residential real estate demand was strong and home prices rose. Commercial real estate conditions remained challenged. Manufacturing activity increased. Conditions at financial institutions stabilized.

Chicago

Economic activity increased moderately but remained below its pre-pandemic level. Employment, consumer spending, and manufacturing increased moderately; business spending increased modestly; and construction and real estate was flat. Wages rose slightly, as did prices. Financial conditions improved modestly. Strong harvests, government support, and higher prices boosted expectations for farm income.

St. Louis

Reports from District contacts suggest economic activity has continued to increase slightly since our previous report; however, conditions deteriorated toward the end of the reporting period. The overall outlook for business conditions over the next 12 months has improved but remains slightly pessimistic.

Minneapolis

District economic activity grew moderately. Employment rose modestly, but obstacles such as child care availability and virtual schooling for households with children impacted labor participation, particularly among women. Consumer spending grew slightly, with softening demand in some segments due to rising COVID-19 infections. Manufacturers generally saw brisk growth. Agricultural conditions improved slightly.

Kansas City

Economic activity continued to expand slightly. After rising in October, consumer spending fell slightly in November but was expected to bounce back in the coming months. Contacts in the manufacturing, residential real estate, wholesale trade, transportation, and professional and high-tech services sectors all reported increased levels of activity. In addition, the energy sector held steady, and the agriculture sector improved moderately.

Dallas

Economic activity expanded modestly. Growth moderated in the manufacturing, retail, and services sectors. The housing market continued to outperform expectations, but office leasing remained weak. Energy activity remained depressed though it showed further signs of improvement. Outlooks were positive, though highly uncertain due to looming concerns surrounding political uncertainty and the unknown course of the pandemic.

San Francisco

Economic activity in the District expanded modestly. Employment levels increased slightly, while price inflation showed little change. Sales of retail goods rose appreciably, but conditions in the services sector were unchanged. Manufacturing expanded moderately, and the agriculture sector improved slightly. Residential real estate activity continued to grow, while commercial markets changed little. Lending activity increased mildly.

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

Gold jumped as much as 2.3% on the Dollar Index’s decisive downside breach of 92.  The index declined as much as 0.75%.  Bonds declined as much as 2-13 points, on fear of coming US fiscal profligacy and continued or increased Fed promiscuity as well as recent data that shows inflation is accelerating.

Silver soared 6.8%.  Silver outperforms gold when inflation concern is high.

Fed Chair Powell, testifying at the Senate Banking Com with Mnuchin, reiterated his entreaty for more fiscal spending.  This is a tacit admission that the Fed is running out of effective ammo to boost the economy and/or further Fed promiscuity will exacerbate the historic concentration of wealth and income to revolutionary levels.  This is why Fed officials have become incessant virtue signalers!

@YahooFinance: “The reason Chairman Powell is pushing so hard for fiscal stimulus is because he recognizes, as most of us do, that monetary stimulus has not quite run out of steam… but it’s getting to the end of its rope,” Willett Advisors CEO @SteveRattner says.

Powell testimony headlines on Bloomberg

  • Powell Says Recovery May Stall Out without Fiscal Help
  • Inequality really holds the economy back (virtue signal on Fed-created atrocity)
  • Fed committed to using all tools strongly, for as long as it is needed
  • Economy has performed better than expected
  • Lot of Small Businesses at risk during winter
  • In the medium term there is upside risk [Huh?!]
  • Excessive Student Loan Deb Can Create Economic Lag
  • Fed in early stage of understanding climate change risks (abject virtue signaling)
  • Broad Response to Climate Change Must Come from Elected Officials
  • States that depend on tourism hit hard
  • State, Local Governments have laid off over 1M Workers
  • Local Tax Revenues Less Affected by Pandemic than Expected
  • With Pandemic, Risk of Too Much Stimulus Lower than giving too little
  • Renewed fiscal aid would really help recovery effort
  • Continue to work with banks to work with borrows (AKA avoid foreclosures)

Mnuchin headlines on Bloomberg

  • We support a target fiscal response
  • Urges Congress to enact more relief for small businesses, especially in underserved communities
  • Restaurants Need Grants, Not Loans
  • I do think that more fiscal response is needed
  • Spoke with McConnell, Meadows, updated Trump

Mnuchin, Powell Sound Supportive on New $908 Billion Coronavirus Relief

https://www.marketwatch.com/story/mnuchin-powell-sound-supportive-on-new-908-billion-coronavirus-relief-package-2020-12-01

CNBC’s @EamonJavers: Biden does not take questions from reporters as he departs econ event.

Federal watchdog says Labor’s jobless numbers inaccurate, points to pre-pandemic data collecting

The GAO report states policymakers are struggling to get accurate picture of unemployment as a result of the data collection… The report said the weekly data included overestimates and at other times underestimates of the number of people filing for unemployment benefits, the wire service also reports…

https://justthenews.com/politics-policy/coronavirus/federal-watchdog-says-labors-jobless-numbers-inaccurate-points-pre

 

@BillFOXLA: Just hours after L.A. County Supervisor @SheilaKuehl voted to ban all outdoor dining last Tuesday, which she described as “a most dangerous situation”, we’ve learned that she dined outdoors at Il Forno Trattoria in Santa Monica.

https://foxla.com/news/la-county-supervisor-dines-at-restaurant-hours-after-voting-to-ban-outdoor-dining

Ex-NSC official @RichHiggins_DC: Republican Establishment is sitting on their hands as Biden steals the Presidency but don’t forget: They sat on their hands over spygate, russiagate, and probably coordinated impeachment with Pelosi too.  Also did nothing on BLM and Antifa, COVID too

Chanel Rion OAN @ChanelRion: Giuliani: Why did your governor refuse to see the evidence and rush to certify this election?  AZ Witness: “I think he [Gov Ducey] was bought and paid for.”…

@KelemenCari: Arizona witness: Trump ballots were altered by hand to also include a name in the write-in spot, making them an “over vote” ballot, and invalidating it altogether.

    MI eyewitness: There was a 3 hour lull after midnight at the Detroit Vote Center until the vans came in around 4 in the morning with about 60 boxes of ballots.

    MI eyewitness: Ballots from 30-40,000 new “voters” who were supposedly signed up Nov 2 or 3 were scanned and counted. Their names were not in the voter rolls, but in the supplemental roll.

    A MI eyewitness was hired by Dominion to offer IT support. She was not allowed to wear a badge or identify herself. Samuel, a Dominion owner from Colorado disappeared for 3 hours- said he was at a warehouse in Detroit called “The Chicago Warehouse.” She also witnessed ballots being scanned multiple times.

@correctthemedia: The owner of Dominion was personally in Detroit TCF”  “All steel lockboxes were removed from tabulators and used as barricades. Ballots were re-scanned multiple times and when Republican challengers noticed & took pictures, they were removed”

@KingMakerFT: Dominion contract employee to MI Senate Oversight CommitteeEverything that went on at the TCF Center in Wayne County was fraud. It was all fraud. I called the FBI on Nov 4 and talked to a woman for45 minutes. Nobody from the FBI has tried to talk to me since.

Dominion-Trained IT Contractor Blows Up Michigan Hearing, ‘They Were Re-Scanning, Counting Ballots 8 to 10 Times’

https://www.thegatewaypundit.com/2020/12/dominion-trained-contractor-blows-michigan-hearing-re-scanning-counting-ballots-8-10-times-video/

CNBC’s @justin_hart: Here is one of the most damning testimonies from the Michigan hearings. A contractor for Dominion describes the fraud (and ineptitude) she witnessed firsthand.

https://twitter.com/justin_hart/status/1333849869648203777

Col. Waldron Confirms US Has a Copy of the Election Night Data ‘Traffic and Packets’ Sent Overseas to Frankfurt!    https://www.thegatewaypundit.com/2020/12/breaking-exclusive-got-col-waldron-confirms-us-copy-election-night-data-traffic-packets-sent-overseas-frankfurt-video/

@joshdcaplan: WKBN: GOP Pennsylvania Rep. Mike Kelly asks for Supreme Court hearing over election lawsuit

 

@RudyGiuliani: Georgia is having major #VoterFraud problems again because the Sec’y of State and Governor have done nothing about Democrat stealing the Presidential vote.  Democrats commit crimes to win. All we ask is that Republicans do their duty and enforce the law. Legislature take over.

Powell: Dominion Server Removed From Fulton County While Lawyers Sought Restraining Order

“Someone went down to the Fulton center where the votes and Dominion machines were, claimed there was a software glitch and they had to replace the software, and it seems that they removed the server,” Powell told “Lou Dobbs Tonight” in an interview aired on Nov. 30… Powell added that her team does not know where the server is.

https://www.zerohedge.com/political/powell-dominion-server-removed-fulton-county-while-lawyers-sought-restraining-order

Atty/Sidney Powell cohort (@LLinWood: Our country is headed to civil war. A war created by 3rd party bad actors for their benefit – not for We The People. Communist China is leading the nefarious efforts to take away our freedom.  @realDonaldTrump should declare martial law.

@paulsperry_: Biden stealing the election from Trump is far more plausible than Trump stealing the election from Hillary; yet after his 2016 win, the DC media ran with the Russia “collusion” hoax & didn’t give a damn about evidence. Now w circumstances reversed, suddenly they care about proof!

 

Whistleblowers allege ballots illegally crossed state lines, ballot backdating, digital manipulation

“Potential ballot fraud on a massive scale”

https://justthenews.com/politics-policy/elections/whistleblowers-allege-thousands-vanished-ballots-allegations-backdating

@arelab13: Trucker whistleblower drove pallets of ballots from Bethpage NY to Harrisburg PA in Oct. He wasn’t allowed to offload. He was told to wait 6 hrs. He was angry. Says it was weird. He was told to speak w/transit supervisor—never done before who told him to drive to Lancaster

https://twitter.com/arelab13/status/1333867892115460102

Jesse Morgan, a truck driver who worked as a subcontractor with USPS says that he was asked to transport roughly 288k filled out ballots from NY to Pennsylvania and his trailer carrying those ballots went missing.   https://twitter.com/bennyjohnson/status/1333878044562481152

THE CHINA CONNECTION: Parent company of Dominion Voting Systems Received $400 million from UBS Bank in Switzerland — 75% owned by the Chinese Government

    The investigation, conducted by Austin Security and Investigation Solutions, centers on Staple Street Capital, which acquired Dominion Voting Systems in 2018…“On Oct 8, 2020, Staple Street Capital filed SEC Form D offerings and sales amount of $400,000,000 with the Sales Compensation Recipient identified as UBS Securities,” states the investigation, which also notes that another payment of $200,000,000 was received in December 2014.  “UBS Securities is a Swiss investment bank which owns 24.99% of UBS Securities Co LTD, a Chinese Investment Bank. The remaining 75% of UBS Securities CO LTD is owned by the Chinese government,” states the report…

https://www.indiarightnownews.com/the-china-connection-parent-company-of-dominion-voting-systems-received-400-million-from-ubs-bank-in-switzerland-75-owned-by-the-chinese-government/

Attorney @LLinWood: Information being received NOW that Communist China purchased Dominion Voting in October 8 for $400M. Efforts underway to verify. If true, this confirms other evidence that Communists intend to overthrow our government to get our precious land.

@RepMattGaetz: I talked today to Republicans in both the House of Representatives and the Senate.

There’s an interest in examining voting irregularities and forcing a debate in Congress about whether or not to accept states’ electors where those irregularities exist. Nothing is off the table.

AP: Barr tells AP that Justice Dept. hasn’t uncovered widespread voting fraud that could have changed 2020 election outcome.  https://apnews.com/article/election-2020-joe-biden-donald-trump-elections-william-barr-b1f1488796c9a98c4b1a9061a6c7f49d

 

CNN’s @kaitlancollins: After telling the Associated Press there is no evidence of fraud that would change the outcome of the election, Attorney General Bill Barr just arrived at the White House.

 

Fox’s @ChadPergram: Trump legal team: With all due respect to the Attorney General, there hasn’t been any semblance of a Department of Justice investigationWe have gathered ample evidence of illegal voting in at least six states, which they have not examined.

 

Statement of Trump Legal Team on Bill Barr’s Comment on Voter Fraud

https://twitter.com/JennaEllisEsq/status/1333863535538032650/photo/1

 

@CBS_Herridge: From a DOJ spokesperson: “Some media outlets have incorrectly reported that the Department has concluded its investigation of election fraud and announced an affirmative finding of no fraud in the election. That is not what the Associated Press reported nor what the Attorney General stated. The Department will continue to receive and vigorously pursue all specific and credible allegations of fraud as expeditiously as possible.”

Barr appoints Durham special counsel to keep investigating Russia probe origins under new administration (via AP) “The current investigation, a criminal probe, had begun very broadly but has since “narrowed considerably” and now “really is focused on the activities of the crossfire hurricane investigation within the FBI.”  https://trib.al/voxDMZs

@CBS_Herridge: BREAKING #Durham This is a major development + reflects serious nature of the evidence  WASHINGTON (AP) — Barr appoints Durham special counsel to keep investigating Russia probe origins under new administration

 

@seanmdav: The announcement letter from Barr and the formal paperwork appointing Durham as a Russiagate special counsel show that Barr appointed Durham as a special counsel nearly two months ago, on October 19, 2020.

 

@TomFitton: Incredible. AG Barr appointed Durham as Special Counsel three weeks before the election but kept it secret from the American people.

@CBS_Herridge: Durham Special Counsel Durham scope is broad + encompasses recently declassified docs.  This may set up interesting dynamic with nexus to then VP Biden. Declassified records include unmasking @GenFlynn  + Jan 2017 WH meeting where, according to notes, “VP” raised Logan Act.

https://twitter.com/CBS_Herridge/status/1333890422775685123

Well that is all for today

I will see you THURSDAY night.

2 comments

  1. How can you be such a cunt to publish this:
    THE CHINA CONNECTION: Parent company of Dominion Voting Systems Received $400 million from UBS Bank in Switzerland — 75% owned by the Chinese Government

    where did you see that UBS is Chinese???
    your getting senile, mr organ.

    Like

  2. […] by Harvey Organ of Harvey Organ Blog […]

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: