GOLD:$1846.55 DOWN $9.85 The quote is London spot price

Silver:$25.40. DOWN $0.10 London spot price ( cash market)

your data…

Closing access prices: London spot

i)Gold : $1851.00 LONDON SPOT 4:30 pm

ii)SILVER: $25.46//LONDON SPOT 4:30 pm

We have two more reading days after today. I expect a rather large February delivery month for gold.

COMEX DATA

EXCHANGE: COMEX
CONTRACT: JANUARY 2021 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,850.700000000 USD
INTENT DATE: 01/26/2021 DELIVERY DATE: 01/28/2021
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
624 H BOFA SECURITIES 8
657 C MORGAN STANLEY 7
661 C JP MORGAN 1
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 9 9
MONTH TO DATE: 2,038

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

receiving today: 1/9

issued:0

GOLDMAN SACHS STOPPED 0 CONTRACTS.

NUMBER OF NOTICES FILED TODAY FOR JAN. CONTRACT: 9 NOTICE(S) FOR 900 OZ (0.02799 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR: 2038 NOTICES FOR 203800 OZ (6.3390 tonnes)

SILVER//JANUARY CONTRACT

91 NOTICE(S) FILED TODAY FOR 455,000 OZ/

total number of notices filed so far this month: 1285 for 6,425,000 oz

BITCOIN MORNING QUOTE $30,846 DOWN 1793

BITCOIN AFTERNOON QUOTE.: $31,450 DOWN 894 DOLLARS .

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GLD AND SLV INVENTORIES:

WITH GOLD DOWN $9.85 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .87 TONNES FROM THE GLD.

GLD: 1,272.88 TONNES OF GOLD//

WITH SILVER DOWN 10 CENTS TODAY: AND WITH NO SILVER AROUND:

NO CHANGES IN SILVER INVENTORY AT THE SLV..

INVENTORY RESTS AT:

SLV: 576.343 MILLION OZ./

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSEBY A SMALL SIZED 132 CONTRACTS FROM 156,235 UP TO 167,880, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE GAIN IN OI OCCURRED WITH OUR SMALL $0.07 GAIN IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS DUE TO CONSIDERABLE BANKER AND ALGO SHORT COVERING.. COUPLED AGAINST A TINY EXCHANGE FOR PHYSICAL. WE ALSO HAD ZERO LONG LIQUIDATION, AND A STRONG INCREASE IN SILVER OUNCES STANDINGAT THE COMEX FOR JAN. WE HAD A STRONG NET GAIN IN OUR TWO EXCHANGES OF 1736CONTRACTS (SEE CALCULATIONS BELOW).

WE WERE NOTIFIED THAT WE HAD A STRONG NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: 1282, AS WE HAD THE FOLLOWING ISSUANCE: MARCH 1282 FOR ZERO ALL OTHER MONTHS AND THEREFORE TOTAL ISSUANCE 1282 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 A FEW OF THEM!

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

8.900 MILLION OZ INITIALLY STANDING IN OCT.

3.950 MILLION OZ FINAL STANDING IN NOV.

46.685 MILLION OZ FINAL STANDING FOR DEC.

6.880 MILLION INITIAL STANDING FOR JAN 2021

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 7 CENTS) ).. AND, OUR OFFICIAL SECTOR/BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS AS WE HAD A STRONG GAIN IN OUR TWO EXCHANGES (1736 CONTRACTS). NO DOUBT THE TOTAL GAIN IN OI IN OUR TWO EXCHANGES WERE DUE TO i)BANKER/ALGO SHORT COVERING. WE ALSO HAD ii) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A STRONG GAIN IN SILVER OZ STANDING FOR JANUARY, iii) SMALL COMEX GAIN 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

JAN

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

16,708 CONTRACTS (FOR 16 TRADING DAY(S) TOTAL 16,708 CONTRACTS) OR 83.54 MILLION OZ: (AVERAGE PER DAY: 982 CONTRACTS OR 4.914 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER: SO FAR THIS MONTH OF JAN: 83.54 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON.

ACCUMULATION IN YEAR 2021 TO DATE SILVER EFP’S: 83.54MILLION OZ.

JAN EFP ACCUMULATION SO FAR: 83.54 MILLION OZ (RAPIDLY INCREASING AGAIN)

RESULT: WE HAD A SMALL SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 132, WITH OUR TINY $0.07 RISE IN SILVER PRICING AT THE COMEX ///TUESDAY.…THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1282 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX TO LONDON AS FORWARDS.

TODAY WE GAINED A STRONG SIZED 1414 OI CONTRACTS ON THE TWO EXCHANGES (WITH OUR $0.07 GAIN IN PRICE)//

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1278 OPEN INTEREST CONTRACTS HEADED FOR LONDON (EFP’s) TOGETHER WITH A SMALL SIZED INCREASE OF 132 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH OUR $0.07 RISE IN PRICE OF SILVER/AND A CLOSING PRICE OF $25.50 // TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY.

FOR THE NEW JANUARY DELIVERY MONTH/ THEY FILED AT THE COMEX: 6 NOTICE(S) FOR 30,000 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 HUGE 16,534 CONTRACTS TO 534,574 AND FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE HUGE SIZED LOSS IN COMEX OI OCCURRED WITH OUR VERY LOSS IN PRICE OF $4.15 /// COMEX GOLD TRADING// TUESDAY. WE PROBABLY HAD SOME BANKER/ALGO SHORT COVERING ACCOMPANYING OUR SMALL EXCHANGE FOR PHYSICAL ISSUANCE. WE HAD ZERO LONG LIQUIDATION AS THE ENTIRE LOSS OF COMEX OI WAS DUE TO THE COMMENCEMENT OF SPREADER LIQUIDATION. WE A STRONG INCREASE IN GOLD OUNCES STANDING AT THE COMEX AT 6.500 TONNES....THIS ALL HAPPENED WITH OUR FALL IN PRICE OF $4.15.

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

WE HAD A STRONG LOSS OF 14,313 CONTRACTS (44.52 TONNES) ON OUR TWO EXCHANGES..

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A SMALL SIZED 1502 CONTRACTS:

CONTRACT . FEB:1502, APRIL: 0 ALL OTHER MONTHS ZERO//TOTAL: 1502. The NEW COMEX OI for the gold complex rests at 534,574. 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 HUGE SIZED DECREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 15,032 CONTRACTS: 16,534 CONTRACTS DECREASED AT THE COMEX AND 1502 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS TOTAL OI LOSS OF 15,032 CONTRACTS OR 46.76 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (1502) ACCOMPANYING THE HUGE SIZE LOSS IN COMEX OI (16,534 OI): TOTAL LOSS IN THE TWO EXCHANGES: 15,032 CONTRACTS. WE NO DOUBT HAD 1 ) CONSIDERABLE BANKER SHORT COVERING AND CONSIDERABLE ALGO SHORT COVERING ,2.)A STRONG STANDING// GOOD INCREASE AT THE GOLD COMEX FOR THE FRONT JAN. MONTH TO 6.500 TONNES) 3) ZERO LONG LIQUIDATION AS ALL OF THE LOSS WAS DUE TO SPREADER LIQUIDATION ;4) HUGE COMEX OI LOSS (SPREADERS) AND 5) SMALL ISSUANCE OF EXCHANGE FOR PHYSICAL ...ALL OF THIS WAS COUPLED WITH OUR LOSS IN GOLD PRICE TRADING//TUESDAY//$4.15.

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 SILVER (WE SWITCH OVER TO GOLD ON NOV 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 FEB.

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 SILVER. THEY WILL ACCUMULATE CONSIDERABLE AMOUNT OF THE CONTRACTS AND THEN LIQUIDATE ONE WEEK PRIOR TO FIRST DAY NOTICE

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

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO 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 ACTIVE DELIVERY MONTH OF FEB FOR GOLD:

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

JAN

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JAN : 76,760, CONTRACTS OR 7,676,000 oz OR 236.60 TONNES (17 TRADING DAY(S) AND THUS AVERAGING: 4474 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE SIZE OF THESE EFP TRANSFERS : THIS MONTH IN 16 TRADING DAY(S) IN TONNES: 236.60 TONNES

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

THUS EFP TRANSFERS REPRESENTS 236.60/3550 x 100% TONNES =6.660% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2021 TO DATE: JANUARY: 236.60 TONNES (RAPIDLY INCREASING AGAIN)

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

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

1.Today, we had the open interest at the comex, in SILVER, ROSE BY A SMALL SIZED 132 CONTRACTS FROM 167,748 UP TO 167,880 AND CLOSER TO OUR COMEX RECORD //244,710(SET FEB 25/2020). THE LAST RECORDS WERE SET IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER 2 3/4 YEARS AGO. THE PRICE OF SILVER ON THAT DAY: $17.89.

THE SMALL SIZED GAIN IN OI SILVER COMEX WAS PRIMARILY DUE TO; 1) SOME BANKER SHORT COVERING//ALGO SHORT COVERING , 2) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A STRONG INCREASE IN STANDING FOR SILVER AT THE COMEX FOR JAN., AND 4) ZERO LONG LIQUIDATION

EFP ISSUANCE 1282 CONTRACTS

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

MARCH: 1282 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1282 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. IF WE TAKE THE COMEX OI GAIN OF 132 CONTRACTS TO THE 1282 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A STRONG SIZED GAIN OF 1414 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 7.070 MILLION OZ, OCCURRED WITH OUR $0.07 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 UP 3.91PTS OR .11% //Hang Sang CLOSED DOWN 93.73 PTS OR .32% /The Nikkei closed UP 89.03 POINTS OR 0.31%//Australia’s all ordinaires CLOSED UP 0.22%

/Chinese yuan (ONSHORE) closed DOWN AT 6.4719 /Oil UP TO 52.64 dollars per barrel for WTI and 55.83 for Brent. Stocks in Europe OPENED ALL RED// ONSHORE YUAN CLOSED AGAINST DOWN THE DOLLAR AT 6.4719. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.4869 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 ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP RAISED RATES TO 25%

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY BY A HUGE 16,534 CONTRACTS TO 535,293 MOVING FURTHER FROM THE 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 WITH OUR FALL OF $4.15 IN GOLD PRICING /TUESDAY’S COMEX TRADING/). WE ALSO HAD A SMALL EFP ISSUANCE (1502 CONTRACTS). WE ALSO PROBABLY HAD 1) CONSIDERABLE BANKER SHORT COVERING, 2) ZERO LONG LIQUIDATION AS THE ENTIRE LOSS WAS DUE TO SPREADER LIQUIDATION AND 3) STRONG INCREASE IN GOLD STANDING AT THE COMEX//JAN. DELIVERY MONTH(6.500 TONNES) (SEE BELOW) … AS WE ENGINEERED A HUGE SIZED LOSS ON OUR TWO EXCHANGES OF 15,032 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.

(SEE BELOW)

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

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON ACTIVE DELIVERY MONTH OF JAN.. THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 1502 EFP CONTRACTS WERE ISSUED: JAN: ; FEB// ’211502 AND APRIL: 0 ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1502 CONTRACTS.

YOU WILL FIND THAT WHEN WE HAVE A GOOD PREMIUM IN THE FUTURES/SPOT, THEN THE NUMBER OF EXCHANGE FOR PHYSICALS DECLINE IN NUMBERS. THE COST IS JUST TOO MUCH FOR THEM TO ISSUE. TODAY THAT PREMIUM WAS SMALL AND THUS A LITTLE MORE THAN USUAL OF EXCHANGE FOR PHYSICALS WERE ISSUED.

ON A NET BASIS IN OPEN INTEREST WE LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A HUGE 15,032 TOTAL CONTRACTS IN THAT 1502 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A HUGE SIZED 16,534 COMEX CONTRACTS WITH ALL THE LOSS STEMMING FROM SPREADER LQIUDATION!.. WE HAVE A STRONG LEVEL OF JAN 2021 GOLD CONTRACTS STANDING FOR DELIVERY. ((6.500 TONNES). IF YOU INCLUDE NOVEMBER’S HUGE 34.7 TONNES, AND DEC. 93.589 OUR COMEX IS OFFICIALLY UNDER ASSAULT.

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE //// (IT FELL $4.15)., BUT WERE UNSUCCESSFUL IN FLEECING ANY LONGS AS THE TOTAL LOSS ON THE TWO EXCHANGES REGISTERED 46.76 TONNES, ACCOMPANYING OUR STRONG GOLD TONNAGE STANDING FOR JAN (6.500 TONNES)..ALL OF THE COMEX LOSS WAS DUE TO SPREADER LIQUIDATION

NET LOSS ON THE TWO EXCHANGES :: 15,032 CONTRACTS OR 1,503,200 OZ OR 46.76 TONNES

COMMODITY LAW SUGGESTS THAT COMMODITY FUTURES OPEN INTEREST SHOULD APPROXIMATE 3% OF TOTAL PRODUCTION. IN GOLD THE WORLD PRODUCES AROUND 3500 TONNES PER YEAR BUT ONLY 2200 TONNES ARE AVAILABLE FROM THE WEST (THUS EXCLUDING RUSSIA, CHINA ETC..WHO KEEP 100% OF THEIR PRODUCTION)

THUS IN GOLD WE HAVE THE FOLLOWING: 535,293 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 53.52 MILLION OZ/32,150 OZ PER TONNE = 1664 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1664/2200 OR 75.66% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Gold	Ounces
Withdrawals from Dealers* Inventory in oz*	nil oz
Withdrawals from Customer* Inventory in oz*	nil OZ
Deposits to the Dealer* Inventory in oz*	NIL oz
Deposits to the Customer* Inventory, in oz*	502.866 OZ Delaware
No of oz served (contracts) today	9 notice(s) 900 OZ (0.02799 TONNES)
No of oz to be served (notices)	52 contracts (5200 oz) 0.1617 TONNES
Total monthly oz gold served (contracts) so far this month	2038 notices 203,800 OZ 6.3390 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

Withdrawals from Dealers Inventory NIL oz

We had 0 kilobar transactions

ADJUSTMENTS: none

The front month of JAN registered a total of 61 contracts for a GAIN of 31. We had 19 notices filed on Tuesday so we GAINED 50 contracts or AN ADDITIONAL 5000 oz will stand for delivery in the non active delivery month of January. LONGS refused to morph into a London based forward as they will try their luck searching for metal on this side of the pond. This is a strong queue jump

FEBRUARY LOST 45,292 contracts DOWN TO 81,521 CONTRACTS.

WE HAVE TWO MORE READING DAYS BEFORE FIRST DAY NOTICE. FEB WILL BE A STRONG DELIVERY MONTH

MARCH GAINED 107 contracts to stand at 1934

APRIL added 27,400 contracts to stand at 359,053

We had 9 notice(s) filed today for 900 oz

To calculate the INITIAL total number of gold ounces standing for the JAN /2021. contract month, we take the total number of notices filed so far for the month (2038) x 100 oz , to which we add the difference between the open interest for the front month of (JAN 61 CONTRACTS ) minus the number of notices served upon today (9 x 100 oz per contract) equals 209,000 OZ OR 6.500 TONNES) the number of ounces standing in this NON active month of JAN

thus the INITIAL standings for gold for the JAN/2021 contract month:

No of notices filed so far (2038 x 100 oz PLUS (61 OI) for the front month minus the number of notices served upon today (9} x 100 oz which equals 209,000 oz standing OR 6.500 TONNES in this non active delivery month of January. This is a STRONG amount standing for GOLD IN JAN (generally one of the weakest of all delivery months of the year).

We gained 50 contracts or a queue jump of 5000 oz of gold. These longs refused to morph into London based forwards.

NEW PLEDGED GOLD:

461,317.475 oz NOW PLEDGED SEPT 15.2020/HSBC 14.34 TONNES

84,274.333 PLEDGED APRIL 3/2020: SCOTIA:2.148 TONNES

290,795.495 oz JPM 9.04 TONNES

1,014,918.830 oz pledged June 12/2020 Brinks/30.198 TONNES

94,500.934 oz Pledged August 21/regular account 2.93 tonnes JPMORGAN

180,158,329 oz Pledged Nov 27.2021 MANFRA 5.60 TONNES

6,308.08 oz International Delaware: .196 tonnes

192.06 oz Malca

168,811.741 Manfra

total pledged gold: 2,121,119.74 oz 65.97 tonnes

registered gold that can be used to settle upon: 16,996,141.0 (528,65 tonnes)

true registered gold (total registered – pledged tonnes 16,996,141.0 (528.65 tonnes)

total registered, pledged and eligible (customer) gold 38,717,707.162 oz 1,204.28 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold: 126.34 tonnes

total gold net of 4 GC: 1077.94 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:

END

JAN 27/2020

And now for the wild silver comex results

INITIAL STANDINGS

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 1 deposit into the customer account (ELIGIBLE ACCOUNT)

I Into Delaware: 2982.29 oz

JPMorgan now has 193.906 million oz of total silver inventory or 48.63% of all official comex silver. (193.906 million/398.736 million

total customer deposits today: 2982.29 oz

we had 5 withdrawals:

i ) Out of Brinks: 682,094.520 oz

ii) Out of CNT: 1989.400 oz

iii) Out of Delaware: 14,883.868 oz

iv) Out of HSBC: 20,068.740 oz

v) Out of Manfra; 55,435.310 oz

total withdrawals: 773,461/778 oz

We had 0 adjustments:

Total dealer(registered) silver: 149.509million oz

total registered and eligible silver: 397.966 million oz

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Jan saw a GAIN of 85 contracts UP to 91 contracts. We had 6 notices filed on TUESDAY so we GAINED 97 contracts or 485,000 oz will stand in this non active delivery month of January. They REFUSED TO morph into London based forwards and as such NEGATED a fiat bonus. This was one big queue jump. Somebody was in urgent need of a huge amount of silver on this side of the pond.

FEBRUARY saw another GAIN of 82 contracts to stand at 1168. MARCH LOST 902 contracts DOWN to 129,807.

The total number of notices filed today for JAN 2021. contract month is represented by 91 contract(s) FOR 455,000 oz

To calculate the number of silver ounces that will stand for delivery in JAN we take the total number of notices filed for the month so far at 1376 x 5,000 oz = 6,880,000 oz to which we add the difference between the open interest for the front month of JAN (91) and the number of notices served upon today 91 x (5000 oz) equals the number of ounces standing.

Thus the JAN standings for silver for the JAN/2021 contract month: 1376 (notices served so far) x 5000 oz + OI for front month of JAN(91)- number of notices served upon today (91) x 5000 oz of silver standing for the NOV contract month .equals 6,880,000 oz. ..VERY STRONG FOR A NON ACTIVE JAN MONTH.

WE GAINED 97 CONTRACTS OR 485,000 ADDITIONAL OZ WILL STAND FOR DELIVERY OVER HERE

TODAY’S ESTIMATED SILVER VOLUME :95,961 CONTRACTS // volume very good//

FOR YESTERDAY 57,450 ,CONFIRMED VOLUME// poor/

YESTERDAY’S CONFIRMED VOLUME OF 97,254 CONTRACTS EQUATES to 0.486 billion OZ 69.4% 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- 4.51% ((JAN 27/2021)

2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.92% to NAV: (JAN 26/2021 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/4.51%(JAN 27/2021)

(courtesy Sprott/GATA

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

NAV 19.23 TRADING 18.32///NEGATIVE 4935

END

And now the Gold inventory at the GLD/

JANUARY 27/WITH GOLD DOWN $9.85 TODAY; A SMALL CHANGE IN GOLD INVENTORY AT THE GLD A WITHDRAWAL OF .87 TONNES FROM THE GLD///INVENTORY RESTS 1172.38 TONNES

JAN 26/WITH GOLD DOWN $4.15 TODAY:NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1173.25 TONNES

JAN 25.WITH GOLD DOWN 20 CENTS TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1173.25 TONNES

JAN 22/WITH GOLD DOWN (9.50 TODAY:A SMALL CHANGE IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL OF .88 TONNES FROM THE GLD//NVENTORY RESTS AT 1173.25 TONNES

JAN 21/WITH GOLD DOWN $0.40 TODAY; NO CHANGES IN GOLD INVENTORY AT THE GLD: ////INVENTORY RESTS AT 1174.13 TONNES

JAN 20/WITH GOLD UP $25.20 TODAY; A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.5 TONNES OF GOLD FROM THE GLD////INVENTORY RESTS AT 1174.13 TONNES

JAN 19/WITH GOLD UP $10.90 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A MASSIVE DEPOSIT OF 16.63 TONNES INTO GLD////INVENTORY RESTS AT 1177.63 TONNES

JAN 15/WITH GOLD DOWN $22.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//: A WITHDRAWAL OF 10.21 TONNES FROM THE GLD///INVENTORY RESTS AT 1161.00 TONNES

JAN 14.WITH GOLD DOWN $2.75 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 10.50 TONNES FROM THE GLD.//INVENTORY RESTS AT 1171.21 TONNES

JAN 13/WITH GOLD UP $11.65 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1181.71 TONNES

JAN 12/WITH GOLD DOWN $6.70 TODAY;A HUGE CHANGES IN GOLD INVENTORY AT THE GLD// A WITHDRAWAL OF .400 TONNES FROM THE GLD..//INVENTORY RESTS AT 1181.71 TONNES

JAN 11/WITH GOLD UP $14.30 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1182.11 TONNES

JAN 8//WITH GOLD DOWN $75.70 : A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 4.57 TONNES FROM THE GLD//INVENTORY RESTS AT 1182.11 TONNES

JAN 7/WITH GOLD UP $5.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1186.78 TONNES

JAN 6/WITH GOLD DOWN $44.25 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.17 TONNES//INVENTORY RESTS AT 1186.78 TONNES

JAN 5/WITH GOLD UP $10.05 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD:A DEPOSIT OF 17.21 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 1187.95 TONNES

JAN 4/WITH GOLD UP $49.70 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD; A DEPOSIT OF 0.88 TONNES INTO THE GLD/////INVENTORY RESTS AT 1170.74 TONNES

DEC 31/WITH GOLD UP $1.45 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1169.86 TONNES

DEC//30//WITH GOLD UP $13.30 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1169.86 TONNES

DEC.29//WITH GOLD UP $1.65 TODAY: A DEPOSIT OF 2.53 TONNES CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1169.86 TONNES.

DEC 28WITH GOLD DOWN $3.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1167.53 TONNES

DEC 24/WITH GOLD UP $6.15 TODAY; NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1167.53 TONNES

DEC.23/WITH GOLD UP $7.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL OF 2.33 TONNES FROM THE GLD//INVENTORY RESTS AT 1167.53 TONNES

DEC 22/WITH GOLD DOWN $12.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPSOIT OF 2.04 TONNES INTO THE GLD//INVENTORY RESTS AT 1169.86 TONNES

DEC 21/WITH GOLD DOWN $5.60 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1167.82 TONNES

DEC 18/WITH GOLD DOWN 90 CENTS TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1167.82 TONNES

DEC 17 WITH GOLD UP $39.35 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.33 TONNES FROM THE GLD////INVENTORY RESTS AT 1167.82 TONNES

DEC 16/WITH GOLD UP $2.55 TODAY A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: ANOTHER WITHDRAWAL OF 1.17 TONNES FORM THE GLD..//INVENTORY RESTS AT 1170.15 TONNES

DEC 15/ WITH GOLD UP $23.75 TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 4.67 TONNES FROM THE GLD//INVENTORY RESTS AT 1171.32 TONNES//

DEC 14//WITH GOLD DOWN $10.45 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD:: A WITHDRAWAL OF 3.79 TONNES FROM THE GLD//INVENTORY RESTS AT 1175.99 TONNES

DEC 11/WITH GOLD UP $5.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1179.78 TONNES

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at:

JAN 27 / GLD INVENTORY 1172.38 tonnes

LAST; 987 TRADING DAYS: +237.61 TONNES HAVE BEEN ADDED THE GLD

LAST 887 TRADING DAYS// +406.24 TONNES HAVE NOW BEEN ADDED INTO THE GLD INVENTORY

end

Now the SLV Inventory/

JAN 27/ WITH SILVER DOWN 10 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV.: A WITHDRAWAL OF 3.022 MILLION OZ OF IMAGINARY SILVER// INVENTORY RESTS AT 573.277 MILLION OZ/

JAN 26/WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 576.299 MILLION OZ///

JAN 25/WITH SILVER DOWN 5 CENTS A HUGE CHANGE IN SILVER INVENTORY: A DEPOSIT OF 2.044 MILLION OZ INTO THE SLV// INVENTORY RESTS AT 576.299 MILLION OZ./.

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

ii) Important gold commentaries courtesy of GATA/Chris Powell

First time ever: Kitco reports on gold price suppression!!

(Kitco/GATA)

Dogs and cats living together! Kitco News does gold price suppression again!

Submitted by cpowell on Tue, 2021-01-26 19:21. Section: Daily Dispatches

2:24p ET Tuesday, January 26, 2021

Dear Friend of GATA and Gold:

“Fire and brimstone coming down from the skies! Rivers and seas boiling!…

“Forty years of darkness! Earthquakes, volcanoes! …

“The dead rising from the grave! …

“Human sacrifice, dogs and cats living together! Mass hysteria!”

https://www.youtube.com/watch?v=SA1SxZoFmOU

Today the “Ghostbusters” crew might add: “Kitco News reporting about gold price suppression!

For the second time this month — second time in a week even — Kitco News reporter David Lin has interviewed someone about government gold price suppression policy.

Last week it was former U.S. Rep. Ron Paul:

http://gata.org/node/20826

Today it is research and consulting firm founder Luke Gromen, who, as if reading from GATA’s documentation archive, says governments have managed the gold price for decades to defeat competition with their currencies and particularly the world reserve currency, the U.S. dollar.

Gromen adds that this suppression lately has been implemented through the creation of vast imaginary supplies of “paper” or derivative gold.

But Gromen thinks that excessive debt is starting to give governments an interest in letting gold rise, which would ease debt burdens and support asset prices. He sees much higher gold prices ahead.

Gold price suppression must be getting pretty obvious. Could the Financial Times and Bloomberg News be next?

Lin’s interview with Gromen is 18 minutes long and can be viewed at Kitco here:

https://www.kitco.com/news/2021-01-26/Why-gold-price-is-not-at-6k-alread…

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

END

If the uSA undergoes yield curve control and negative real rates, the prices of gold and silver will rise

(Hemke/Sprott/GATA)

Craig Hemke at Sprott Money: ‘Yield-curve control’ with negative real rates will unleash metals

Submitted by cpowell on Wed, 2021-01-27 00:42. Section: Daily Dispatches

7:40p ET Tuesday, January 26, 2021

Dear Friend of GATA and Gold:

Craig Hemke of the TF Metals Report, writing tonight at Sprott Money, says “yield-curve control” — the imposition of a precise ceiling on U.S. government bond interest rates — is coming from the Federal Reserve sooner or later.

.”When it comes,” Hemke writes, “the formal institutionalization of negative real (inflation-adjusted) interest rates is going to set off the next wave of new all-time highs for both gold and silver.”

Hemke’s analysis is headlined “The January FOMC and Gold” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/blog/The-January-FOMC-and-Gold-Craig-Hemke-J…

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

END

With HSBC domiciled in London and yet 90% of its business is in China to Bloomberg it will not be a shock if they break up this big bank

Bloomberg/GATA

Breakup of HSBC wouldn’t be a shock

Submitted by cpowell on Wed, 2021-01-27 01:34. Section: Daily Dispatches

By Elisa Martinuzzi
Bloomberg News
Tuesday, January 26, 2021

HSBC Holdings, a London- and Hong Kong-listed banking behemoth with $3 trillion in assets, is among the handful of truly global lenders. But its future as an international firm — a lynchpin of decades of trade between East and West — is increasingly dictated by politics, not the laws of free-market economics.

An eventual breakup of the company along regional lines shouldn’t take investors by surprise.

…

Caught between the Chinese crackdown on Hong Kong and criticism from the U.K. and the U.S. that it’s becoming a tool of Beijing, HSBC Chief Executive Officer Noel Quinn faced a rare grilling by British lawmakers today.

Pressed to explain the bank’s ethics, political stances, and his own opinion of China’s handling of dissidents in Hong Kong, Quinn tried hard to abstain from political judgments.

Unfortunately for him, lawmakers weren’t buying it. They accused him and his bank of double standards and appeasing China. They had a point. …

… For the remainder of the commentary:

https://www.bloomberg.com/opinion/articles/2021-01-26/hsbc-breakup-would.

END

For your interest..

Medieval treasure trove ‘belonging to princess’ found buried in Polish cornfield

Submitted by cpowell on Wed, 2021-01-27 01:44. Section: Daily Dispatches

By Stuart Dowell
The First News, Warsaw, Poland
Monday, December 21, 2020

Thousands of 12th-century treasures dating back nearly 900 years have been found in a cornfield near Kalisz.

The medieval riches which include coins and jewellery rumoured to have belonged to a Ruthenian princess and sister-in-law of 12th-century Polish king Bolesław the Wrymouth were discovered in the small village of Słuszkow.

…

Inside a pot hidden beneath the earth, archaeologist Dr Adam Kędzierski from the Institute of Archaeology and Ethnology of the Polish Academy of Sciences found 6,500 silver coins arranged in linen pouches, silver ingots, fragments of lead, and two gold rings and two wedding bands.

The extraordinary discovery was made after hearing local legends about hidden treasure from the village priest. …

… For the remainder of the report and some great photos:

https://www.thefirstnews.com/article/medieval-treasure-trove-belonging-t…

end

iii) Other physical stories:

* * *

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 DOWN AT 6.4719 / /

//OFFSHORE YUAN: 6.4834 /shanghai bourse CLOSED UP 3.91 PTS OR .11%

HANG SANG CLOSED DOWN 93.73 PTS OR .32%

2. Nikkei closed UP 89.03 POINTS OR 0.31%

3. Europe stocks OPENED ALL RED/

USA dollar index DOWN TO 90.53/Euro FALLS TO 1.2106

3b Japan 10 year bond yield: RISES TO. +.03/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 103.85/ 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:: 52.64 and Brent: 55.83

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.55%/Italian 10 yr bond yield DOWN to 0.65% /SPAIN 10 YR BOND YIELD DOWN TO 0.08%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1205: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 0.67

3k Gold at $1841.50 silver at: 25.10 7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble DOWN 64/100 in roubles/dollar) 75.75

3m oil into the 52 dollar handle for WTI and559 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 103.85 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 .8880 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0756 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to –0.55%

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 1.019% early this morning. Thirty year rate at 1.4781%

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

6. TURKISH LIRA: UP TO 7.39..

Futures Tumble Ahead Of The Fed Amid Growing Hedge Fund Forced Liquidation Fears

US equity futures tumbled and European share indexes fell on Wednesday as investors once again turned “cautious” about COVID-19 and bubble valuations, with the Fed meeting and tech giants’ earnings also due later. At the same time, some of the most widely held hedge fund stocks were hammered amid growing concerns that hedge funds short the soaring “most-shorted” will have to dump their longs in forced liquidations to provide interim capital as described earlier.

S&P 500 contracts sank 1%, with the deepest losses in the small-cap futures. Nasdaq 100 Index futures outperformed following a strong sales report from Microsoft while other giga- tech companies including Apple, Facebook and Tesla are all due to report after the close today. Meanwhile, GameStop continued its meteoric rise after Elon Musk tweeted about the company, and even following reports that Citron and Melvin had closed their shorts, the stock was still up a whopping 65% from Tuesday’s close.

“There’s been a bit of a shift of tone in markets in the last few days,” said Catherine Doyle, investment specialist at Newton Investment Management. “Markets are starting to worry about COVID again,” she added, highlighting in particular the Brazilian and South African variants of the virus.

The MSCI world equity index having fallen around 1% since it hit a new all-time high on Jan. 21. Following a weak Asian session in which shares were hurt by profit-taking, European indexes also retreated, with the STOXX 600 down 0.8%, London’s FTSE 100 was down 0.7% while Germany’s DAX was down 1%. The Stoxx Europe 600 Index declined as the European Union and AstraZeneca disagreed over whether a planned call to resolve vaccine delivery delays would take place. The euro fell after a European Central Bank official said it has the necessary tools to avoid any further strengthening of the currency.

Earlier in the session, Asian stocks fell for a second day as investors took a breather following the regional benchmark’s ascent to another record high on Monday. The MSCI Asia Pacific Index headed for its biggest two-day decline in more than a month as traders evaluated a series of earnings reports while also seeking more clarity on the timeline for U.S. stimulus. Equity benchmarks in India, Vietnam and the Philippines were among the biggest losers. The Philippine Stock Exchange Index capped its eighth drop in nine sessions amid concern fourth quarter GDP data due Thursday may be weaker than estimated. Stocks rose in Japan and Singapore. Stocks were also lower in South Korea, which reported its most new virus cases in almost two weeks. Global cases surpassed 100 million. Materials was the worst performing sector on the regional benchmark followed by communication services as heavyweights Tencent Holdings and SoftBank declined. A gauge of industrials climbed as Nidec extended gains to hit another record. The Federal Reserve is expected to maintain its aggressive support for the U.S. economy when it concludes a two-day meeting on Wednesday

In rates, Treasuries erased declines in early U.S. trading as stock futures fell, pushing 10-year note’s yield below 1.03% to weekly low. Focus is on FOMC statement at 2pm ET and corporate new-issue calendar headed bymulti-tranche 7-Eleven deal. Treasury yields remain within a basis point of Tuesday’s closing levels, outperforming gilts while keeping pace with bunds. With Euro Stoxx 50 down 1.3% amid vaccine delivery delays, S&P 500 E- mini futures are lower by more than 1% at session lows.

In FX, the dollar rose against most Group-of-10 peers ahead of the Fed meeting while risk-sensitive currencies headed by the Swedish krona led declines along with the euro. The common currency fell to a day low of $1.2119 after ECB policy maker Klaas Knot said the institution had tools to counter its recent appreciation. The pound erased gains after touching the highest since May 2018; hedge funds and real money names keep adding pound topside in both the cash and options markets. Australia’s dollar fell to a session low in European trading after slipping from a session high following a report that showed headline inflation remained below the central bank’s target.

There is a busy slate today, with expected data include mortgage applications and durable goods orders. Abbott, Boeing, AT&T, Facebook, Tesla and Apple are reporting earnings. The FOMC decision and briefing by Chair Jerome Powell are scheduled for 2pm

Market Snapshot

S&P 500 futures down 0.2% to 3,835.50
STOXX Europe 600 up 0.1% to 408.15
MXAP down 0.3% to 211.93
MXAPJ down 0.6% to 712.08
Nikkei up 0.3% to 28,635.21
Topix up 0.7% to 1,860.07
Hang Seng Index down 0.3% to 29,297.53
Shanghai Composite up 0.1% to 3,573.34
Sensex down 1.9% to 47,427.63
Australia S&P/ASX 200 down 0.7% to 6,780.57
Kospi down 0.6% to 3,122.56
German 10Y yield fell 0.3 bps to -0.536%
Euro down 0.3% to $1.2127
Italian 10Y yield fell 3.1 bps to 0.536%
Spanish 10Y yield fell 0.9 bps to 0.064%
Brent futures up 0.8% to $56.35/bbl
Gold spot down 0.2% to $1,847.12
U.S. Dollar Index up 0.2% to 90.37

Top Overnight News from Bloomberg

The resignation of Italian Prime Minister Giuseppe Conte has sparked a fresh round of back-room plotting and negotiating as the pandemic rages and the economy tanks. Conte is a survivor, but he has no political party of his own as he tries to recruit a new, broader coalition anchored around himself. He offers investors stability, and that’s an outcome that bond traders have craved
Sanofi agreed to produce more than 125 million doses of BioNTech SE and Pfizer Inc.’s coronavirus vaccine for the European Union in an unusual collaboration to speed vaccination efforts
Senate Majority Leader Chuck Schumer said he’s ready to start moving on a Democrat-only Covid-19 relief plan as soon as next week if Republicans continue to reject President Joe Biden’s $1.9 trillion proposal
European Central Bank policy makers have agreed to look deeper into the euro’s appreciation against the dollar since the start of the pandemic, focusing on whether it’s driven by differences in stimulus policies compared with the U.S., according to officials familiar with the matter
Australia’s consumer prices rose faster than forecast in the final three months of last year as the government amended funding to various stimulus programs amid an economy regaining momentum
The U.S. must take “aggressive” steps to combat China’s “unfair” trade practices while also investing to bring manufacturing back to the country, said Gina Raimondo, President Joe Biden’s nominee for Commerce secretary
Global coronavirus cases surpassed 100 million, according to data compiled by Johns Hopkins University. U.S. President Joe Biden announced a push to purchase more doses of vaccines and get them more quickly to the states. Pfizer Inc. will be able to supply the U.S. with 200 million doses two months sooner than previously forecast, according to its top executive
The resignation of Italian Prime Minister Giuseppe Conte has sparked a fresh round of back-room plotting and negotiating as the pandemic rages and the economy tanks

A quick look at global markets courtesy of Newsquawk

Asian equities traded mixed and attempted to shrug off the weak handover from the US where there was a slight negative bias amid pre-FOMC caution and ongoing doubts regarding President Biden’s USD 1.9tln stimulus proposal, although participants also reflected on earnings and a late boost was seen in Nasdaq 100 futures after-hours due to strong results from Microsoft which beat on both its top and bottom lines. ASX 200 (-0.7%) was led lower by weakness across the mining-related sectors and as yesterday’s regional losses caught up with the index on return from its holiday closure, while Nikkei 225 (+0.3%) was kept afloat by recent conducive currency moves but with upside capped amid expectations for an extension to the state of emergency in areas still seeing a high number of infections. KOSPI (-0.2%) swung between gains and losses as early strength in the local tech giants petered out including Samsung Electronics which is planning to increase FY21 chip capex by 20% Y/Y to KRW 35tln and with LG Display turning south despite posting a profit of KRW 620.9bln vs prev. loss KRW 1.8tln Y/Y. Hang Seng (-0.3%) and Shanghai Comp. (+0.1%) were indecisive after another substantial liquidity drain by the PBoC, as well as continued US-China tensions with President Biden’s Commerce Secretary nominee vowing to use the full tool kit to protect US networks from companies such as Huawei and ZTE, while FTSE Russell is mulling whether to eject more Chinese firms from key index listings. However, there were some encouraging developments including a jump in Chinese Industrial Profits for December which grew by 20.1% Y/Y and with Alibaba lifted by recent comments from the PBoC Governor who suggested Ant Group’s mammoth IPO could be revived after its issues are resolved. Finally, 10yr JGBs were lacklustre with price action stalling beneath the psychological 152.00 level as Japanese stocks remained in the green and following similar indecisive trade in T-notes, but with downside cushioned by the BoJ’s presence in the JGB market today for a relatively reserved JPY 600bln total.

Top Asian News

Retail Army Helps Sri Lanka Stocks Skyrocket to World’s Best
Cathay Pacific Proposes Issue of HKD Convertible Bonds Due 2026
Turkey’s Long-Unloved Debt Is Starting to Win Over Investors

European stocks kicked off the mid-week session in an indecisive mid-week manner before extending on losses (Euro Stoxx 50 -1.4%) as the region initially picked the tentative APAC tone in the run-up to the FOMC policy announcement and presser (full preview available in the Newsquawk Research Suite). US equity futures also remain on standby with the NQ (U/C) initially outperforming on the back of Microsoft’s numbers (+2.5%, pre-market) amid a number of COVID-related tailwinds including a surge in PC sales and increased cloud services revenue. Back to Europe, sectors are mixed with a slight defensive bias, with Real Estate outperforming as Unibail-Rodamco (+13%) and Klepierre (+12%) gain with some citing easing fears of a third national lockdown in France. Meanwhile, Telecoms are propped up alongside reports that Vodafone (+2%), Telefonica (+3%) and Three are partnering to build and share mobile masts to boost 4G coverage in rural areas, whilst sources stated Vodafone is reportedly looking into different options for their Ghanaian business with a view to reorganise the unit and reduce its debt. The broader IT sector meanwhile is softer on the day with pre-market losses in AMD (-2%) also weighing on chip names. In terms of individual movers, LVMH (+0.7%) holds onto opening gains after reported robust COVID-influenced numbers whilst topping revenue forecasts. Evotec meanwhile (+2%) opened higher by some 30% following reports that Reddit-stricken Melvin Capital is closing its short positions amid the suffering caused by Gamestop (+85% pre-market), although GME trimmed pre-market gains after CNBC reported that Melvin Capital has closed their Gamestop positions. Elsewhere, the quarterly production update by Fresnillo (-8%) was not well received despite an improve in gold production as guidance underwhelmed.

Top European News

European Economy Lags Peers as Vaccine Mess Deepens Slump
Astra Pushes Back as EU Warnings Over Vaccine Delay Escalate
ECB’s Knot Says Tools Are Available to Counter Euro Strength
EDF’s Hinkley Nuclear Plant Hits Delays, Cost Overruns

In FX, The Dollar is flat to a tad firmer across the board in the run up to the FOMC amidst little expectation of anything major in terms of policy moves or fresh guidance beyond the inevitable updated assessment of the economic situation and outlook since the prior meeting, plus anything Fed chair Powell reveals in the press conference via text or during the Q&A (full preview of the event available in the Research Suite). However, durable goods in the interim often has the potential to surprise and could provide the Buck and index with another test of resilience after the latter extended its run of consecutive closes above 90.000 on Tuesday to 9 trading sessions, and just carved out a firmer 90.432 intraday high vs 90.119 at one stage, albeit with a big helping hand from the Euro.

EUR/CAD/NZD/AUD – Latest reports regarding the ECB expressing consternation about Greenback weakness in relation to the Euro given relative US-Eurozone and Fed-ECB economic conditions and policy stances, were largely taken in stride, but comments direct from the GC’s mouth via Knot have been taken seriously as said the Bank has the means to counter Euro strength, including further easing – see 9.13GMT post on the Headline Feed for more. In response, Eur/Usd retreated further from circa 1.2170 peaks to trough around 1.2119, while Eur/Gbp recoiled to a fresh January low under the previous 0.8830 base from last Thursday. Elsewhere, the Loonie is also languishing near the bottom of the G10 ranks along with the Aussie and Kiwi that have failed to glean any lasting traction from firmer than forecast CPI or the fact that the Aud/Nzd cross remains top heavy above 1.0700. Usd/Cad is back on the 1.2700 handle, Aud/Usd under 0.7750 and Nzd/Usd sub-0.7250 all awaiting the FOMC, though the latter also has NZ trade data to digest.
GBP/CHF/JPY – Cable marginally extended post-Brexit transition highs before fading when the Dollar got its indirect ECB boost and held then retained grip of the 1.3700 handle due to supportive Eur/Gbp moves as noted above rather than anything UK specific. Similarly, the Franc and Yen are mainly taking cues from elsewhere, and the Buck more so than risk sentiment that is souring again, with Usd/Chf continuing to meet resistance/offers into 0.8900 and Usd/Jpy keeping further distance from 104.00 in advance of key Japanese data to end the month starting with retail sales after the Fed.

In commodities, WTI and Brent front month futures eked modest gains initially in early European hours but prices remain contained within ranges seen since mid-Jan. Despite the disparities across stocks and a downside bias to sentiment, crude prices remain underpinned by last night’s Private Inventory data which showed headline crude posting a sizeable surprise draw of 5.3mln bbl vs forecasts for a modest 0.4mln bbl build; however, as the selling pressure has intensified WTI and Brent are now marginally lower on the session. Participants will now be looking to the more widely-followed EIA release whereby headline crude is expected at a 0.4mln bbl build. More broadly, the crude market will be eyeing the COVID-related developments in light of the new variants and logistical hurdles. Desks are flagging potential demand implications from the localised lockdowns in China, with the government also poised to discourage travel over the upcoming Lunar New Year holiday – “passenger trips during the holiday period to be down 40% from 2019 levels”, according to ING citing the Chinese transport ministry. WTI trades on either side of USD 53/bbl and Brent sees itself just north of USD 56/bbl, with both contracts within USD 0.30-0.40/bbl parameters at the time of writing. Elsewhere spot gold and silver remain within relatively narrow bands ahead of the FOMC policy announcement, with the former on either side of USD 1845/oz and the latter back below USD 25.5/oz. LME copper prices meanwhile are modestly softer amid the indecision seen across markets coupled with Dollar strength, whilst Goldman Sachs raised their 3-,6-and 12-month copper price forecasts to USD 8,500/t, USD 9,000/t and USD 10,000/t respectively. Finally, zinc prices overnight hit over 2-month lows amid higher inventories.

US Event calendar

8:30am: Durable Goods Orders, est. 1.0%, prior 1.0%; Durables Ex Transportation, est. 0.5%, prior 0.4%
8:30am: Cap Goods Orders Nondef Ex Air, est. 0.5%, prior 0.5%; Cap Goods Ship Nondef Ex Air, est. 0.6%, prior 0.5%
2pm: FOMC Rate Decision (Upper Bound), est. 0.25%, prior 0.25%

DB’s Jim Reid concludes the overnight wrap

Today is the busiest on this week’s calendar, with a raft of important tech earnings as well as the Federal Reserve decision later on. And with some financial assets currently trading at what many are describing as bubble territory, there’ll be heightened attention on these releases to see whether these current valuations are justified. Indeed, in our latest monthly survey, the most popular area for where people thought there was a bubble (apart from Bitcoin) was in US tech equities, with a mean score of 7.9 on a scale from 0-10.

Tonight after the close, we’ll hear from Apple, Tesla and Facebook, all of which have surged to new highs since the pandemic, with Tesla up by more than 12-fold since its recent lows back in March. They come on the back of Microsoft yesterday, who reported fiscal Q2 sales rose 17%, above consensus estimates. The stock rose just under +4% after hours, as the cloud-computing division rose over 50% as the firm reported more corporate clients shifting to online productivity tools and teleconferencing software. Meanwhile GameStop, which has been propelled by Reddit users seeking to take on Wall Street shorts, rose a further +90.1% yesterday, with the stock having risen more than 5-fold in the space of just 2 weeks. Why can’t the stocks I own do that! After hours Elon Musk tweeted a link to a r/wallstreetbets thread on the company and typed “Gamestonk”. In response the shares went up another +68.2% at one point after hours before settling +41.4%. In effect that tweet from Musk added c.$7bn to the market cap in around 30mins. These are not normal times and while the r/wallstreetbets thing is fascinating to watch, I can’t help but think that this is unlikely to end well for someone. As I’ve been saying in recent weeks, this isn’t likely to be a low vol dull year. There’s enough bubbling up, if you pardon the pun, to create a lot of market noise down the line.

Today’s other big highlight will be the first Federal Reserve meeting of 2021, as well as Chair Powell’s subsequent press conference, though whether there’ll be much to report is another matter. According to our US economists (link here), there shouldn’t be any material changes to the policy settings and message from the Fed, following their move to adopt outcome-based forward guidance for asset purchases in December. Furthermore, they expect the statement to be untouched, aside from acknowledging a recent softening in the data. The big question will be over any timetable for tapering asset purchases, but Powell is likely to adopt a dovish tone on this, and reiterate that it’s premature to contemplate this given the challenging near-term outlook and remaining uncertainties.

Ahead of all this, US equities dropped slightly from their record highs, with the S&P 500 (-0.15%), the NASDAQ (-0.07%) and the small-cap Russell 2000 (-0.68%) all dipping. The topline moves were pretty subdued on the whole however, as investors awaited the events mentioned above and with stimulus talks treading water. There continues to be a good deal of dispersion under the surfacewith Energy (-2.12%) and Transportation (-1.50%) weighing on the S&P, as more defensive industry groups like Food & Staples (+1.45%) tried to pull the broad index back into positive territory. Europe saw a stronger performance, though that can be explained by them missing out on the previous day’s rebound after the close. The STOXX 600 (+0.63%), the DAX (+1.66%) and the CAC 40 (+0.93%) all saw sizeable moves upward.

Staying on Europe, Italian Prime Minister Conte resigned yesterday as expected, meaning that President Mattarella will now start consultations with the leaders of the parliamentary groups so as to put together a new government. Reports have suggested that Conte is seeking to put together a new coalition, with Bloomberg reporting officials saying this could be a broader alliance that includes pro-European centrists and unaffiliated lawmakers. Whether Conte is reappointed will depend upon his ability to forge a new majority, since Mattarella is unlikely to give the green light to a minority government. As a reminder, our European economists continue to see the risks of an early election as limited, since a number of the governing parties would stand to lose out from fresh polls.

Markets have taken the Italian instability in their stride, with the spread of yields between 10yr Italian BTPs and German bunds falling a further -4.7bps yesterday to 1.18%. And although this spread is above the 4-year low of 1.05% reached at the beginning of the month, it’s still below the levels seen through much of 2020, so it’s worth keeping these moves in context. Sovereign bond yields rose in most other countries however, with yields on 10yr Treasuries rising +0.5bps to 1.035%, as those on 10yr bunds (+1.7bps), OATs (+1.3bps) and gilts (+0.3bps) also moved higher.

Going back to politics, the US Senate swore in its members into former President Trump’s impeachment trial, which will begin the week of February 8. A vote to declare the impeachment trial as unconstitutional, on the basis that Mr Trump is no longer in office, was voted down 55-45. While five Republicans joined the 50 Democrats on this process vote, it looks unlikely that 67 senators vote for conviction in the end. The most market-relevant thing to keep an eye on in all of this is if any ill-will from this process spills over into the Senate’s stimulus negotiations and derails the pandemic relief. Possibly anticipating this, Senate Majority Leader Schumer yesterday said that Democrats should be prepared to start moving on President Biden’s Covid-19 relief bill in a unilateral way through budget reconciliation if Republicans continue to reject working on the $1.9 trillion plan. Not all of the plan would be able to get through the budget process, including any minimum wage changes and the additional $160bn funding to the states for vaccine rollout efforts. Bipartisanship may not be totally out of the question as 16 Senators from both parties are readying a counterproposal to the Biden plan, which lawmakers expect to be able to unveil by the end of the week.

Overnight in Asia markets are mostly trading higher with the Nikkei (+0.25%), Hang Seng (+0.15%) and Shanghai Comp (+0.32%) all up. An exception to this pattern is the Kospi (-0.16%). Futures on the S&P 500 are down -0.17% while those on the Nasdaq are up +0.49% ahead of today’s big tech earnings and aided by Microsoft’s strong earnings report mentioned above. In other Asia related news, the PBoC governor Yi Gang said at the virtual WEF yesterday that the country’s monetary policy will continue to “prop up the economy,” with officials remaining mindful of risks, such as a rising macro leverage ratio and higher non-performing loans. The PBoC has withdrawn c. $27bn in liquidity from market this week with $15bn of it being withdrawn today. So in light of this, these comments were a relief to some worried by this recent action.

On the coronavirus, matters escalated in the ongoing row between the EU and AstraZeneca following the news that vaccine deliveries would be delayed, amidst calls for export controls on vaccines from a number of senior figures. Indeed, in a speech yesterday, Commission Preisdent von der Leyen said “Europe invested billions to help develop the world’s first Covid-19 vaccines. … And now, the companies must deliver. They must honour their obligations.” On top of this, the German health ministry pushed back against reports that the AstraZeneca vaccine only had an efficacy of 8% among the over-65s, something reported in the Handelsblatt newspaper, and which AstraZeneca themselves have called “completely incorrect”. There was lots of talk about it being a misread on the % of participants in the trail from this age group rather than efficacy. Given how widely this story has been distributed it shows how potential misinformation can spread quickly in this digital world. Read an incredibly interesting interview with the AstraZeneca CEO here for more background.

On the more positive side, the European Medicines Agency ED Cooke signaled that Pfizer is expected to increase vaccine deliveries to EU countries in April, with production at more sites coming online over the next two months. Elsewhere the US government has also said that it intends order 100mn more doses each of Pfizer Inc. and Moderna Inc.’s coronavirus vaccines, and at least temporarily speed up shipments to states to about 10mn doses a week ( a +16% increase from the current weekly pace). This comes as an executive from Pfizer said that it will be able to supply the US with 200mn doses two months sooner than previously forecast. Meanwhile, overnight news is suggesting that the UK government will introduce a limited hotel quarantine system for passengers arriving from the highest-risk countries, and is likely to apply to arrivals from countries with new forms of the virus, such as South Africa and Brazil. So a watered down version of what was expected to be a mandatory requirement for all international travelers. On the other side of the world, Kyodo has reported that Japan is considering extending its state of emergency beyond Feb 7 to until the end of February.

In terms of yesterday’s data, the US Conference Board’s consumer confidence reading came in roughly in line with expectations in January, with a rise to 89.3 (vs. 89.0 expected). However, there was a divergence between the present situation and the expectations readings, with the present situation number falling to an 8-month low of 84.4, while the expectations number rose to a 3-month high of 92.5. Meanwhile in the UK, the unemployment rate for the three months to November rose to 5.0% (vs. 5.1% expected), its highest level in over 4 years. While the total number of hours worked continued to rise, now standing at around 7% below pre-pandemic levels, the redundancy rate also moved higher, still standing above its peak around the global financial crisis. Finally, the IMF revised up their global growth forecast for 2021 to +5.5% (vs. 5.2% back in October), and left their 2022 forecast unchanged at +4.2%.

To the day ahead now, and the aforementioned Federal Reserve decision will likely be the main highlight. We’ll also hear from the ECB’s Lane and Villeroy. Otherwise, data releases include French consumer confidence for January, as well as preliminary US data for December on durable goods orders and nondefence capital goods orders ex air. Earnings releases include Apple, Tesla, Facebook, AT&T, Abbott Laboratories and Boeing.

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT:

SHANGHAI CLOSED UP 3.91PTS OR .11% //Hang Sang CLOSED DOWN 93.73 PTS OR .32% /The Nikkei closed UP 89.03 POINTS OR 0.31%//Australia’s all ordinaires CLOSED UP 0.22%

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

b) REPORT ON JAPAN

CORONAVIRUS UPDATE/JAPAN/GLOBE

Japan, EU Desperate For More COVID Jabs As Global Cases Top 100MM: Live Updates

Summary:

EU & AstraZeneca fight
Japan agrees to make AZ vaccines
Biden bans “Chinese virus” phrase
Sanofi to use its facilities to build BioNTech-Pfizer drug
Indonesia sees deadliest day yet
Israel to vaccinate all Olympic athletese by Msy
India reports nearly 13K new infections
Tokyo reports under 1K

* * *

As far as markets are concerned, the focus on Wednesday was on shares of GameStop and the epic short squeeze inspired by Wall Street Bets, the popular subreddit that for years has served as a venue for amateur traders, as well as a compendium of horror stories about traders losing massive sums on long-shot bets.

While the action in penny-stock land offered a badly needed distraction, the COVID-19 outbreak continues to rage across the world. In the US, the total number of cases has topped 25.4MM, the highest single-country total in the world. Meanwhile, worldwide, the number of confirmed cases has topped 100MM. Deaths, 425K (for the US) and 2.2MM (for the world).

New cases continued to fall across all 4 regions of the US, although deaths ticked higher following a brief dip.

Meanwhile, the US has become the first country to hit 25MM cases, as we mentioned above.

The number of patients hospitalized with COVID is falling almost everywhere across the country.

Following in the footsteps of the US, the UK has imposed a 10-day quarantine on arrivals from COVID hot spots, according to local media reports.

As the drama over AstraZeneca’s vaccine intensifies, vaccine news on Wednesday wasn’t all bad. We’re seeing some good news on the vaccine front as well. For example: Pharma giant Sanofi has agreed to produce millions of doses of the BioNTech and Pfizer coronavirus vaccine in an unusual collaboration to try and speed up the production of vaccines. The French drugmaker will allow Germany’s BioNTech access to all of its facilities in Frankfurt, which will start to deliver doses this summer, Sanofi said in a statement Wednesday. The deal will produce more than 125 million doses of the messenger RNA vaccine for the European Union.

“Sanofi’s move certainly suggests this is possible”” said Sam Fazeli, an analyst at Bloomberg Intelligence.

Desperate to build up vaccine stocks of its own, Japan is preparing to produce AstraZeneca COVID shots as it grows desperate to secure enough doses for the country’s population of 126MM as global supply shortages worse, Nikkei reports.

Joe Biden, meanwhile, has banned using the phrase “China Virus” as part of a memorandum condemning racism, xenophobia and intolerance against Asian Americans in the US, while praising the Asian and Pacific communities for their contribution to combating the COVID-19 pandemic.

Here’s some more COVID news from overnight and Wednesday morning:

Indonesia logs its deadliest day of the pandemic so far, with 387 COVID-19 deaths in the past 24 hours, and reports 11,948 new cases. The country’s totals stand at 1,024,298 cases, including 11,948 deaths (Source: Nikkei).
Israel intends to have all its athletes due to compete at the Tokyo Olympics vaccinated by May, it’s National Olympic Committee says amid a global debate over whether athletes should be given priority as shots become available (Source: Nikkei)..
A vaccine developed by India’s Bharat Biotech and a government research institute is likely to be effective against the U.K. strain, according to a study of 26 participants shared by the company (Source: Nikkei).
Tokyo reports 973 new infections, down from 1,026 a day earlier, with the number of patients in serious condition rising by 11 to 159 (Source: Nikkei).
India reports 12,689 cases in the last 24 hours, up from the eight-month low of 9,102 recorded the previous day, bringing the country’s total to 10.69 million (Source: Nikkei).

* * * *

Finally, as the world tries to determine how long various vaccination programs will last, the Economist Group has determined that China and India will see their programs stretch until late 2022 due to the size of their populations and more than 85 poor countries will not have widespread access to vaccines before 2023.

3 C CHINA

CHINA/USA

4/EUROPEAN AFFAIRS

As discussed yesterday through Dr Lacalle: the Euro slides after the ECB signals a potential for currency wars.

(zerohedge)

Euro Slides After ECB Signals Potential For Currency Wars

As the Biden administration shows no signs of slowing the money-printing (in fact quiet the opposite), it would appear, as we noted previously, that the rest of the world is not enjoying the concomitant dollar depreciation and is starting to fight back (with words for now).

With the euro recently soaring back near 6 year highs, ECB Governing Council member Klaas Knot told Bloomberg this morning that the Central Bank has the necessary tools, including interest-rate cuts, to prevent any further strengthening of the euro undermining inflation.

“That is something we of course monitor very, very carefully,” Knot, who heads the Dutch central bank, said in a Bloomberg TV interview on Wednesday.

“It’s one of the factors, not the exclusive factor, but one of the factors we take into account when arriving at our assessment of where inflation is going to go.”

And in what sounds like fighting talk, The ECB has agreed to look deeper into whether the euro’s gain versus the dollar since the start of the pandemic is driven by differences in stimulus policies compared with the U.S. Federal Reserve, according to officials familiar with the matter.

“There is still room to cut rates, but of course that would also have to be seen in conjunction to our overall monetary stance, which is determined by a multiplicity of tools — asset purchases, TLTROs, forward guidance — they all come into play.”

The reaction was swift as the euro fell…

Source: Bloomberg

As Daniel Lacalle noted just yesterday, devaluing is not a tool to export, it is a tool to disguise structural imbalances and always harms much more than it benefits.

Unfortunately, in the United States, there are voices that want to “weaponize the dollar” (politically intervene the currency) defending the obsolete and pointless policy of devaluation, which would be the biggest mistake in history and put the US economy and its status as a reserve currency at risk.

If the world gets into a currency war, with the assault on wages and savings that devaluation entails, no one wins.

A currency war is a war against citizens, their salaries and their savings, to benefit inefficient and indebted sectors.

A currency war would devastate the purchasing power of salaries and suppress investment and consumption decisions. When governments attack the currency, the economic agents’ reaction is not to invest and consume more, but a generalized slump in spending and capital allocation.

If a country enters a currency war, it disproportionately hurts its own citizens. If China, the Eurozone, Russia and the US do it, it will likely lead to a severe global crisis.

A currency war is not about who wins, but who loses the most. And if countries embark on an assault on their citizens’ wealth via devaluation the message to the world is only one: buy true reserve of value assets, like gold or silver, and hide.

Ridiculous: UK Covid cops threatening citizens with a 200 pound fine for having snowball fights

(Watson/SummitNews)

UK COVID Cops Threaten £200 Fines For People Having Snowball Fights

Authored by Paul Joseph Watson via Summit News,

Police in the UK enforcing coronavirus lockdown restrictions are threatening people with £200 fines if they engage in snowball fights or sledging.

Yes, really.

Snow fell in many parts of the country over the weekend, providing a welcome distraction to the fact that the country has been under some form of lockdown for the best part of 10 months.

However, this prompted authorities to become even more draconian, urging people not to engage in snowball fights or sledging or face the risk of being fined.

“Forces in London, Surrey and Wiltshire sent out warnings urging Brits not to break lockdown while enjoying the snow, saying “Covid regulations still apply,” reports the Mirror.

“We are currently receiving lots of calls and reports relating to snowballs being thrown and people outside sledging,” tweeted Surrey Police.

“Please stay safe and remember that Covid regulations do still apply.”

Wiltshire Police inspector Louis McCoy was more insistent, tweeting, “I don’t want to be dealing with sledgers and snowball fights. There’s still a lockdown on. Think about it, don’t be tempted.”

Snow! pic.twitter.com/Hmk6tVLbfn

— Insp Louis McCoy (@WiltspoliceLM) January 24, 2021

Swindon Police posted a message to Facebook announcing that they were keeping tabs on snowball fights.

“We are currently responding to reports of about 150 children and about 50 adults gathering in the Sevenfields area of Swindon and concerns have been raised that they are not abiding by the coronavirus guidelines,” said the force.

“Please do not gather in large groups – you are reminded that Fixed Penalty Notices may be issued to those who do not abide by the regulations.”

“We are in the midst of a pandemic and failing to socially distance and wear face masks could aid the spread of the virus.”

Meanwhile, Kingston Police urged people not to go out and enjoy the snow at all, tweeting that they should only look at it “from the comfort of your own home” as “there’s a pandemic going on.”

It’s so beautiful to watch the snow fall from the comfort of your own home. Plus there’s a pandemic going on. #StaySafe in the #snowday by playing in the back garden!

(Also drive carefully if you are allowed).#KettlesOn pic.twitter.com/kCL2Ww4qyy

— Kingston Police | #StayHome (@MPSKingston) January 24, 2021

Four men traveling in a car in Guildford were also hit with £200 fines each after they told police they were “looking at the snow.”

As we previously highlighted, engaging with snow is seen by authorities as a dangerous contravention of lockdown rules.

West Mercia Police attracted ridicule when the force angrily tweeted about “2 reports of snowballs being thrown” in violation of coronavirus lockdown rules.

A large snowball fight in a park in Leeds also attracted media condemnation despite students involved claiming they were just trying to blow off some steam to combat mental health problems caused by lockdown.

Avon and Somerset Police also fined someone for eating a kebab in their car alone while Derbyshire Police interrogated two women for drinking coffee while on a rural walk.

The UK remains under total lockdown with powers recently extended until July, meaning the country could still be under such restrictions until the summer.

* * *

New limited edition merch now available! Click here. In the age of mass Silicon Valley censorship It is crucial that we stay in touch. I need you to sign up for my free newsletter here. Support my sponsor – Turbo Force – a supercharged boost of clean energy without the comedown. Also, I urgently need your financial support here.

end

Bomb squad arrives at Astra Zeneca’s plant which is making its vaccine

(zerohedge)

Bomb Squad Surrounds AstraZeneca Plant, Site Partially Evacuated

As if AstraZeneca’s squabbles with the EU and its pharma regulator weren’t bad enough, British police have dispatched a bomb squad to the the industrial estate where the AstraZeneca vaccine is made.

According to the BBC, police are dealing with an ongoing incident in North Wales where AZ’s Wrexham Industrial estate is located. The site now has a cordon that was reportedly placed near the Wrexhm Industrial estate.

Police said a cordon had been placed around the Wockhardt plant and the public have been asked to keep away. There are no reports of any injuries.

Doses of the vaccine, developed by Oxford-AstraZeneca, are produced and stored there. North Wales Police said it was at Wrexham Industrial estate. The BBC reports that a bomb disposal unit has been called to deal with a suspicious package. There are no reports of any injuries.

The plant was reportedly evacuated after it received a suspicious package: “Upon expert advice we have partially evacuated the site pending a full investigation.”

The BBC understands that the bomb disposal unit is on site.

“All relevant authorities were immediately notified and engaged. Upon expert advice we have partially evacuated the site pending a full investigation,” he said. “The safety of our employees and business continuity remain of paramount importance.” The Wrexham plant has the capability to produce around 300MM doses of the vaccine a year.

Wockhardt UK entered an agreement in August to help prepare the vaccine for distribution, and the Welsh Government said there had been “no adverse effects” on the coronavirus vaccine roll-out.

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

ISRAEL/IRAN/USA

Israel will attack Iran if Biden returns to the Iran nuclear deal

DeCamp/Antiwar.com

Israelis Say They Will Attack Iran If Biden Returns US To Nuclear Deal

Authored by Dave DeCamp via AntiWar.com,

Israeli officials have made their opposition to the Biden administration returning to the Iran nuclear deal known. Some have even threatened a military strike on Iran if President Biden revives the deal, known as the JCPOA.

An Israeli source affirmed this to Breaking Defense in an article published on Monday. “Israel needs to know — and fast — whether Washington plans to stop Iran’s race to the bomb or take some action to do this,” the source said, speaking on the condition of anonymity.

The source said that Israeli intelligence is monitoring Iran’s nuclear facilities closely. Israeli airstrikes on Syria were also mentioned, which have ramped up in recent months. “This pressure will continue and grow, as a preparation for a direct attack on targets in Iran,” the source said of airstrikes in Syria.

Israel always claims its airstrikes in Syria hit Iranian targets, but they usually strike Shia militias. Last week, an Israeli airstrike hit Syria that reportedly killed four civilians and destroyed three houses.

Earlier this month, Tzachi Hanegbi, an Israeli minister from the Likud party, made the most direct public threat against Iran. Hanegbi said that if the US returns to the JCPOA that “Israel will again be alone against Iran” and will attack Iran’s nuclear program.

Breaking Defense, its source, and Haneegbi all push the narrative that Iran is racing towards a bomb when that is not the case. One example they use is the fact that Iran recently increased uranium enrichment to 20 percent, which is still vastly lower than the 90 percent needed for weapons-grade uranium.

Despite the hype, the 20 percent enrichment has a civilian purpose. It allows Iran to make fuel rods for its Tehran Research Reactor, a facility that was built by the US in the 1960s that can produce medical isotopes.

Another crucial piece of context left out of the Breaking Defense article is the reason why Iran started enriching uranium at 20 percent. Iran’s parliament passed a bill to increase enrichment after the November assassination of Mohsen Fakhrizadeh, the prominent Iranian scientist who was killed in an apparent Israeli plot. So it was Israeli aggression that led to the increased enrichment.

Iran has maintained that it is willing to return to compliance with the JCPOA if the Biden administration lifts sanctions. Any more attacks from Israel could prevent Iran from decreasing enrichment levels.

END

ISRAEL// USA/

USA purchases the Iron Dome system from Israel and it will be used oat USA bases in the Persian Gulf

(zerohedge)

“Iron Gulf”: Israel’s Iron Dome Systems To Be Deployed At US Bases In Persian Gulf

Early this week Israel’s Haaretz newspaper featured quotes from top Israeli military sources which are sure to add major fuel to the fire of simmering Iran tensions in the region.

The Israeli sources say there’s been a behind closed doors agreement to deploy the Iron Dome defense systems to US military bases in the Gulf. “The United States is expected to soon begin deploying Iron Dome missile interceptor batteries, one of the jewels of Israel’s arms manufacturing industry, in its bases in the Gulf States, according to security officials,” Haaretz wrote.

*Iron dome systems in action, via TRT World*

Israeli officials told the newspaper further that ongoing talks are now centered on obtaining “the technical approval of the Americans to deploy the batteries in order to protect their forces from possible attacks by Iran and its allies.”

It’s as yet unknown which countries would host the Israeli anti-air systems, which are most often used to deter Hamas rockets out of Gaza, but the secretive talks follow on the heels of the Trump-brokered Abraham accords which saw normalization of ties between the UAE and Israel, among others.

This also comes as earlier this month Israel transferred its second Iron Dome battery to the US Defense Department, as part of a deal inked in 2019.

Below are some key quotes in the Haaretz report, which was also picked up by Bloomberg:

Because of the sensitivity of the matter for the Americans, Israeli officials are refusing to reveal in which countries the Iron Dome interceptors will be deployed. But behind closed doors, Israel gave its tacit agreement to the Americans to place the batteries in order to defend its forces from attacks by Iran and its proxies, according to Israeli officials.

And surprisingly the Iron Dome systems could eventually make their way to US bases in Eastern Europe:

As well as the Gulf states, deployments are also expected in Eastern European countries, out of fear that Russia could endanger American forces, or strategic infrastructure in those countries, said the Israeli officials.

In early January when the Israel Ministry of Defense delivered the second of two Iron Dome anti-air missile defense systems to the US Army, Defense Minister Benny Gantz told Israel National News that “the delivery of the Iron Dome to the U.S. Army once again demonstrates the close relations between the Israel Ministry of Defense and the U.S. Department of Defense.”

Gantz continued: “I am confident that the system will assist the U.S. Army in protecting American troops from ballistic and airborne threats as well as from developing threats in the areas where U.S. troops are deployed on various missions.”

END

TURKEY

Turkey cannot get a break: pirates ambush a Turkish container ship off West Africa. They kidnap 15 and kill one.

(zerohedge)

Pirates Ambush Turkish Container Ship Off West Africa, Kidnap 15, Kill 1

A Turkish container ship was ambushed by pirates off the West African coast, according to Reuters. Pirates were able to breach the vessel’s protective citadel with explosives, kidnapping 15 sailors and killing one.

The Liberian-flagged M/V Mozart was en route from Lagos, Nigeria, to Cape Town, South Africa, when a sophisticated attack by pirates, about 100 nautical miles northwest Sao Tome and Principe, attacked the large container ship.

Three sailors remain on board the Mozart, which is about 5 miles from Gabon’s Port Gentil on Monday morning and expected to dock later today, according to Refinitiv Eikon data.

Turkish President Tayyip Erdogan was made aware of the incident, and is in talks with officials in planning a rescue mission of the kidnapped sailors.

State-run Anadolu news agency said the vessel has been “cruising blindly” due to pirate’s severely damaging internal controls.

According to the International Maritime Bureau (IMB), the Gulf of Guinea is one of the most dangerous bodies of water for piracy.

IMB said 130 sailors in 22 incidents last year were kidnapped by pirates in the gulf. In July, ten Turkish sailors were kidnapped off Nigeria’s coast. A month later, they were all released.

The Mozart attack should raise international pressure on countries that border the gulf to do more to protect commercial vessels traversing their waters.

END

RUSSIA/USA

Putin Hails Extension Of Key Nuclear Treaty “A Step In Right Direction” With US

With just days to go before its expiration next month, the United States and Russia struck a deal to extend the landmark New START treaty, which is the last nuclear arms control agreement between to the two former Cold War rivals.

Shortly after their first phone call on Tuesday between Presidents Biden and Putin in which the two discussed a range of sensitive topics which have plagued relations the AFP reported that Putin formally submitted a bill for Russian parliament to extend New START by five years.

“The presidents expressed satisfaction following today’s exchange of diplomatic notes on an agreement to extend the New START Treaty,” Putin’s office announced following the call. Russian parliament has since formally approved its five year extension.

The Kremlin noted that the “sides will finalize, within days, procedures needed to ensure further functioning of this major international mechanism of reciprocal limitation of nuclear missile arsenals,” according to TASS.

Russian parliament quickly approved the extension on Wednesday:

Both houses of parliament voted unanimously to extend the New START treaty for five years, a day after a phone call between U.S. President Joe Biden and Russian President Vladimir Putin. The Kremlin said they agreed to complete the necessary extension procedures in the next few days.

While the White House did not immediately confirm, last week it was announced that Biden is willing to see a five year extension with no preconditions. “The State Duma voted unanimously to extend the New START treaty for five years,” AP noted separately.

According to Reuters on Tuesday, “Asked why Washington had not explicitly said an agreement had been reached, a second U.S. official, also on condition of anonymity, said some steps were needed, including approval by the Duma, Russia’s lower house of parliament.” On the US side the treaty doesn’t require legislative approval for extension.

“International institutions are weakening, regional conflicts are multiplying, the global security system is degrading,” Russian President Vladimir Putin said at Davos Agenda, a virtual event organized by the World Economic Forum.#WEF21 #DavosAgenda https://t.co/Lr4vJ8hkww pic.twitter.com/nFExZuV5wF

— CNBC International (@CNBCi) January 27, 2021

The White House readout said of the Biden-Putin phone call that “They discussed both countries’ willingness to extend New START for five years, agreeing to have their teams work urgently to complete the extension by February 5th.”

During his address to the World Economic Forum’s on Wednesday, Putin announced that the 5-year New START extension is “a step in the right direction,” but also urged more to be done.

“The situation can still develop unpredictably and uncontrollably if we sit on our hands,” he warned in his virtual address to the Davos summit.

6.Global Issues

Market madness through the eyes of Bill Blain…

Blain: The Market’s Madness Will Continue, “We’re In A New World”

Authored by Bill Blain via MorningPorridge.com,

“Future’s made of virtual insanity now… for useless, twisting, our new technology”

Apologies for the lack of commentary on Tuesday – yet again it was due to business getting in the way of the story (and a bit too much Whisky and Haggis on Monday). However, it did give me time to develop a theme: What’s the big investment secret of this modern age?

It’s simple: having the strength of will to remain Rationally Irrational when all around fear the return of common sense.

There are an increasing number of shillyshallying waverers muttering about the dangers of insane P/E multiples, the explosion of SPACs looking to buy everything and anything at any price, worrying wobbles in the bond market, chronic illiquidity, the speculative retail explosion of insanity in stocks like Gamestop, and the incredible wealth made by the few from Covid handouts.

Reading the markets at the moment is like the opening pages of an Agatha Christie “whodunit”: every character’s motive for murdering markets is in plain sight. But will it happen? What will trigger the dénouement ?

I’m pretty sure it’s not going to happen as soon as, or in the way, the market doomster’s expect. That’s the secret of a good murder-mystery… you can never be sure right till the end. The murder is coming.. but not when or where you are looking for it.

The market’s madness will continue. We are in a new world.

One aspect is the very small number of financial-crats who have enormous power they have to wield. In the new US, Janet Yellen and Jerome Powell are tied at the hip and have given up any pretence the Fed and Treasury are independent of each other. The president of the ECB, Chrissy Legarde is regarded as the most significant politician in the EU because she’s the only one with recognisable credibility and a grasp of the problem – to be solved by pumping more money at it. Even the Old Lady of Threadneedle Street (The Bank of England) is likely to join the negative rates charade. (Which is why I’m holding onto a long Gilts position…)

The reality is simple. Global central banks will not, cannot, countenance a market crash. If bonds wobble and yields widen, the CBs will act, buyers will jump in, mopping up supply with the ersatz liquidity of QE and yield curve averaging. If a bond wobbles triggers a slide in stock prices, the sound of buy-the-dippers will quickly drown out any anguished concern.

Central Banks don’t even need to say anything anymore about stemming market tremblors, or supporting growth with handouts, or administering further recovery sticky plasters through helicopter cheques to citizens… because we already know they will do it.

If it reads like a runaway train.. it’s because it is. The engineer can’t turn down the steam. At some stage a crash or a shoogling taper tantrum stop is inevitable – the question how do they slow the train with least damage…. A sharp dose of inflation?

What if central bankers around the globe are thinking “Mein Gott.. Vot haf we done?” Or if Scotty in the Engine Room is watching the dilithium crystals shatter and crack… “The engine’s winae tak it Capt’n”

When the fortunes of the richest billionaires on the planet have doubled, tripled and trimtruppled through the crisis on the back of unlimited handouts? One comment I recent read figures the richest 1% of Americans have seen their worth rise by $3 trillion in financial assets as a result of Covid, while of the $5 trillion printed by the Fed and Govt, only $2 trillion has gone into the real economy and helicopter cheques. It’s pretty shocking – a great gift to the underserving rich. (Well worth reading John Authors on “Rage Against the Machine” this morning.)

So what’s the right market strategy in time like this?

Follow the money. Even though you know its morally reprehensible, and that ESG has become little more than a tickbox, and corporates are throwing their social responsibility out the window as they boost bonuses, buy-back stocks and party like there is no tomorrow… The trick is to go with it… be Rationally Irrational and pick the stocks likely to go up most for longest, hoping (against history) you can bail before yu are caught.

I will shortly be offering a correspondence course in Advance Rational Irrationality focusing on why it makes sense to buy non ESG compliant stocks like oil, coal and gas.. and why bonds might be worst investment possibly so load up on them..

But… there is a problem…

Having explained why RI is the only way to approach current markets, let’s just put the big issue in context. It’s the Covid – which is magnifying the whole basis of my IR strategy by forcing central banks to do even more.. What if we pass peak Covid and government start to scale back the handouts?

That doesn’t feel likely this morning as the UK passes 100,000 Covid deaths. It is tragic. The calls for deeper lockdowns are mounting, there is talk of closing schools till September (a massive negative for productivity – and therefore a boost for further stimulus). The catastrophic economic damage to the UK economy isn’t just broken business, but increasingly crushed personal resilience as people panic about the future and their personal finances.

Confidence is waning – which is hardly surprising if you listen to the never-ending maudlin woe on the BBC.(I really don’t need prime-time news devoting 5 mins to another story of a 95 year-old grandmother “in the prime of life” passing away. I am sure she was lovely and has a loving family, but there is a danger this strategy of keeping us all scared and fearful to enforce lockdown so the NHS isn’t overwhelmed is backfiring.) I was shocked listening to a shadow minister berate the government on Radio 4 this morning – he’d got a bad case of pandemic-panic; the man was scared, on the verge of breakdown, barely able to coherently answer the questions, trapping himself in the web of his own simplistic denials.

It rather puts the political situation in context: strip away the blame game and Government probably did its best based on the data and information it had, and the bureaucracy it functions through.

The Pandemic is tragic, but enough is enough. The degree of enforced economic damage is being buried in the maudlin, almost Victorian grief-fest we’re being bombarded with daily. Each early death of a care-home residents (40%), or an elderly relative suffering from a pre-existing condition (50%), is shocking and immediate, but let’s keep it in context and focus on the needs of the remaining 99% of the population who need jobs, futures and something to look forward to.

Given all the factors about the age, health and diversity of the UK population, the fact London is the premier global hub, the climate, the UK being the 10th most densely populated country on Earth, and the fact we were the first nation to establish anything like a national health service (which is in much in need of reinvention), then we probably didn’t do so badly. Mistakes have been made everywhere. We just happen to have Boris, and past form means he’s an incredibly easy man to blame.

The reality is some countries are doing well. Europe, the US and many others are struggling, having been hit hard.

Finally, we do need to think about Yoorp now that Italy is being Italy again. The EU’s travails in terms of the Vaccine clusterfeth would be hilarious if they we’re so serious for member countries. Meanwhile, the US expects to see its deliveries speed up: Pfizer to deliver US Vaccine faster than expected.

While the EU blusters about closing further vaccine exports, and spreads unwarranted fake-news about the virus, the facts are simple: The EU took responsibility for vaccines away from nations. It forced European nations that had coat-tailed the UK and were set to agree broadly the same terms with Astra-Zenaca to step back while they took over. It then took the EU’s bureaucracy 3 months longer to agree terms, and they didn’t like the price. The reason AZ is being forced to delay deliveries is due to the EU’s insistence the virus is made on partner sites in the EU.

One hope’s global corporates considering setting up in the EU will take note.

end

A warning to us on the risks of messenger RNA vaccines

LewRockwell.com/

and special thanks to Doug C for sending this to us;

https://www.lewrockwell.com/2021/01/no_author/horrific-latent-deaths-predicted-among-the-elderly-by-genetics-professor-after-immunization-with-rna-vaccines/

Horrific Latent Deaths Predicted Among The Elderly By Genetics Professor After Immunization With RNA Vaccines

PROFESSOR DOLORES CAHILL, PROFESSOR of TRANSLATIONAL RESEARCH (FORSCHUNG) AND MOLECULAR GENETICS, School of Medicine, University College Dublin, chairperson Irish Freedom Party, speaking at RENSE.com, predicts impending mass death from RNA vaccines (paraphrased):

Professor Dolores Cahill, speaking about RNA vaccines

“I suppose there are potentially three adverse reactions (from messenger RNA vaccines—MODERNA, PFIZER).

Beginning with anaphylaxis (severe, potentially life-threatening allergic reaction) in the first week. Therefore, these vaccines shouldn’t be given in the 2^nd dose.Bronson Vitamin A 10,0… Buy New $14.99 ($0.06 / Count) (as of 04:04 EST – Details)

Then the real adverse events will happen, against whatever is the real mRNA in the vaccines, and when the person vaccinated comes across (this coronavirus) sometime later …. what happened in the animal studies, 20% or 50% or 100% of the animals died!

Among people over 80, maybe about 2.5% will experience severe side effects, adverse events where people cannot work or live life normally.

Then with the 2^nd vaccination it could be 1 in 10 or ten percent. For the over 80-year-olds, I would think that 80% of them would have life-limiting reactions or die when they come across the messenger RNA again.

For others (not elderly) it could be half of the people who could be severely harmed.

What it does is… this gene therapy or medical device is setting up an autoimmune disease chronically. It’s like injecting people who have nut allergies with peanuts.

It’s anaphylaxis in the first wave. It’s anaphylaxis +allergic reaction the 2^nd wave. But the 3^rd reaction occurs when you come across whatever the messenger RNA is against (virus, bacterium, etc.), and now you have stimulated your immune system to have a low-grade autoimmune disease, not immunity to yourself per se because the mRNA is expressing a viral protein.

Now you made yourself a genetically modified organism, and so the immune system that is meant to push the viruses or bacteria out… now the autoimmune reaction is attacking your body low grade.Vitamin D3 by Nature&r… Buy New $20.80 ($0.09 / Count) (as of 02:47 EDT – Details)

Now (months later) when you come across the virus that stimulates the immune system to get rid of the virus and when it (the immune system) sees that you have viral proteins in your own cells and organs, then about a week later (the adaptive immune system kicks in, the mechanism that makes specific long-term memory antibodies against a pathogen) and you go into organ failure. Because your immune system is killing your own organs. Those patients will present as sepsis initially. Then (later) you die of organ failure.

If you have one or two co-morbidities, the energy the immune system requires to boost your immune system will make the older person very tired and exhausted and they don’t have the capacity to survive if you have underlying conditions.

Normally, because the mRNA is in every cell of their body, it’s almost unstoppable. It destroys the heart, or the spleen, or the lungs, or the liver because the mRNA is expressing the protein in every cell.

Just as a solution, what we urgently need, just as a repository, 1 in 100, or 1 in 200 vaccine vials injected, to be set aside, especially into the elderly in the care homes. They need to be stored in a biorepository of the vaccine vials randomly, so when the people start to die, we can actually see what is in this vaccine. We should be doing this now.

I am concerned that there are maybe multiple mRNAs in this vaccine, not just something for coronavirus. If it is influenza or other viruses, we would be priming these people to other natural (cold and flu) viruses that are circulating.

We urgently need quality control to randomly require doctors to give 1 in 100 vaccine vials to a repository and someone like me could forensically analyze what’s in these vaccines. So, when the elderly start dying, we will know. We should be knowing now what’s in them.

It’s absolutely a dangerous gene therapy. Should not be given to the elderly,” emphasized professor Cahill.

The allergic reactions and deaths begin

Moderna, maker of the RNA COVID-19 vaccine, reports only 10 of 4 million vaccinees had an early (within 10 minutes of inoculation) allergic reaction. However, there is no data for 80+ year-olds with this vaccine, the group Dr. Cahill warns about, that typically have weak immune systems.

Now suddenly there are reports of a number of individuals at one vaccination center in California experiencing allergic reactions from an RNA-vaccine. While health authorities claim allergic reactions are rare, 10 patients are reported to have required medical attention for severe allergic reactions within 24-hours after vaccination at one site in California and six health care workers had allergic reactions at another vaccination center in San Diego in one day.

Hot lot withdrawn

Health officials withdrew one lot (41L20A) of the RNA vaccine. Inexplicably, health officials continue to offer false assurance it is “safe to use” the Moderna RNA vaccine when no conclusive safety data among large populations have been completed yet. No one knows if the Moderna RNA vaccine is safe. It is an unlicensed experimental vaccine. Remember, according to Professor Cahill, the really severe reactions will be latent – occur months later.

Then again, news agencies report of 33 deaths among 48,000+ people age 75 and over following immunization with the Pfizer COVID-19 RNA vaccine. Health officials continue to blame these deaths on the frailty of older subjects. But that is precisely the point – they may be too old and frail to benefit from vaccination.RESVERATROL1450-90day … Buy New $25.99 ($0.14 / Count) (as of 05:59 EDT – Details)

RNA to DNA

The COVID-19 coronavirus is an RNA virus. The MODERNA COVID-19 vaccine is an RNA vaccine. Gene activation involves transcription of DNA into messenger RNA and then to gene-derived proteins.

Merle Nass MD, calls attention to the fact messenger RNA (or any RNA) can potentially be converted to DNA in the presence of the enzyme reverse transcriptase. That DNA could then become linked to your native DNA. There is the possibility of vaccine-RNA being converted to DNA and then permanently inserted into our DNA. (Resveratrol, a red wine molecule, by virtue of its ability to inhibit reverse transcriptase, could put a halt to this potential biogenetic hazard.)

It would be wise for people undergoing any vaccination to supplement their diet with vitamins A and D, zinc and resveratrol which normalize the immune response, especially individuals that have experienced allergic reactions or are allergy prone.

END

Robert H email to me on food storages:

In the past, I have written about upcoming food shortages.

This not because we cannot grow enough food. Rather it is because of government indifference and decision making that is producing shortages by default. Back in the spring I cautioned that lockdowns and futile misguided test procedures would eliminate migration of work force causing shortages of labor for farms as seasonal produce rotted in fields. Like the asparagus crops did in France or in fields in southern Ontario. This combines to reduce actual available output that in turn restricts processed supply of food. Canned or glass jars of French asparagus are simply lessened by a lack of supply and cause consumers to switch to alternatives. Thus putting pressure on food prices. Stories of rotten vegetables was well canvassed with everything from tomatoes to potato being plowed under in America and elsewhere.
Today, we see the additional supply chain restraints in everything from travel restrictions on people moving from one country to another to actual plane delivery disruptions occurring contributing to cost. Imagine a flight from Chile delivering blueberries knowing that the plane will need a fresh crew to fuel and turn around as no overnight stays will take place when you have to quarantine for 2 weeks. This leads to a cost increase, that has nothing to do with growing the crop. Rather it is a supply chain cost reality. And now it seems various governments are acting in unison demanding for 2 weeks hotel stays regardless of purpose or residency. So forget traditional vendors traveling to sell their wares in export nations and they will need to bridge this reality with new found personnel or partners. This comes with a cost to borne by consumers. And that is assuming they can do this is record time as perishable crops do not wait for markets. And a loss of market to many smaller vendors will force them to retrench setting back supply. This too will contribute to higher unemployment on local levels. For example, I have met many Italian vendors in Toronto selling everything from clothes to produce to wine and seen their representatives selling wares on a seasonal basis to prompt sales. No such activity will take place if they have spend 2 weeks in a hotel to quarantine before making a sales call. And if by some remote chance they do, the cost will be reflected in the goods they sell.
The trend is upwards for food prices and speculators-will jump on the trend fueling even higher prices leading to more shortages for anyone not able to afford the cost. Especially as we see more damage to household incomes with lockdowns and sheer destruction of jobs. No amount of training will change the reality that economies simply will not return to the levels of 2019 for measured time as actual supply chains are being broken as companies falter. Already globally both products and smaller brands are disappearing
to maintain diverse supply. This will also discourage new entrants.

The need to decentralize supply to a local level will become much more pertinent than before. And even there, there will be a price/supply conflict as smaller producers on a local level will face both more restricted supply issues and price pressures which will be battled by large chains looking to maintain sales levels. And thus squeeze margins for everyone while costs climb. This at a time when trade credit will be harder to come by. Europe already has a trade credit problem which is quickly becoming worse. As it is, Europe at the moment has the worse food issues facing it going forward. But this is a global trend. We should expect more cries from Africa and other lesser developed nations who are less capable of adopting and adapting to the changes over the next 3-4 years.

The net result is that we will see more varied product shortages and higher prices with a lowered selection of brands in the future.

http://www.fao.org/worldfoodsituation/foodpricesindex/en/

end

7. OIL ISSUES

end

8 EMERGING MARKET ISSUES

INDIA

Now India has internal revolts as Modi’s reforms are backfiring: farmers attack police

(zerohedge)

Modi Reform Backlash Sparks Chaos In New Delhi As Farmers Attack Police

Tens of thousands of angry farmers drove tractors and marched through India’s capital on Tuesday.

According to Asian News International (ANI), New Delhi Police said, “protesters turned violent at some places. Many police personnel were injured & public properties also damaged.”

Reuters tweeted a video showing farmers have gone mad in the capital. Police and farmers clashed during the Republic Day celebrations.

🚜🇮🇳 Los agricultores indios que protestan contra las reformas agrícolas condujeron tractores por las calles de Nueva Delhi durante las celebraciones del Día de la República y se enfrentaron con la policía, que lanzó gases lacrimógenos pic.twitter.com/aQZ36yXxIE

— Reuters Latam (@ReutersLatam) January 26, 2021

Farmers broke through police barricades and stormed the historic Red Fort, a historical fort in the city that served as the Mughal Emperors’ primary residence. ANI shows farmers beating and tossing police off a wall.

#WATCH | Delhi: Protestors attacked Police at Red Fort, earlier today. #FarmersProtest pic.twitter.com/LRut8z5KSC

— ANI (@ANI) January 26, 2021

Farmers attack a riot control vehicle.

#WATCH | Two vehicles of Delhi Police including a riot control vehicle were vandalised by protesters at Nangloi-Najafgarh Road earlier today. (Video source – Delhi Police) pic.twitter.com/FWW6Detxpw

— ANI (@ANI) January 26, 2021

Chaos.

“Happy republic day “ Indian citizens this is your “India”. The whole world is watching you !!!! Shameless act by Modi sarkaar !! @UNHumanRights #HistoricTractorMarch #FarmersProtest
#RSSRepublicDay pic.twitter.com/AeCY10btVn

— Hoorain Pervaiz🇵🇰 (@HoorainPervaiz) January 26, 2021

Chaos.

“Happy republic day “ Indian citizens this is your “India”. The whole world is watching you !!!! Shameless act by Modi sarkaar !! @UNHumanRights #HistoricTractorMarch #FarmersProtest
#RSSRepublicDay pic.twitter.com/AeCY10btVn

— Hoorain Pervaiz🇵🇰 (@HoorainPervaiz) January 26, 2021

“11th March 1783 the KHALSA flag was unfurled over the Red Fort, majestically at the APEX of the Lal Qila. THEN it signified the BEGINNING of the end for the Delhi Empire. What significance is this for today’s FUTURE ?? TIME will tell….,” one user said.

Here are more views of farmers storming the Red Fort.

One person compares the fort’s storming to the recent riot at the US Capitol complex.

Are you compare these 2 pics from west to east, from oldest democracy to biggest democracy? #FarmersProtest #FarmersProstests #किसान_नहीं_गुंडे

If leader of first pic is being impeach, why not others one? pic.twitter.com/sOQYTD4IW9

— ∂ιиєѕн ρяαʝαρтι (@Itsdinnu) January 26, 2021

Farmers have stayed peaceful but today was absolute chaos. These folks are mad because of unfair farming legislation passed several months ago.

They allege Prime Minister Narendra Modi’s farming law, which ends the government’s programs to keep commodity prices at fixed levels, therefore allowing free markets to dictate prices, favors large corporations over mom and pop farmers.

There’s no telling on when the unrest will end.

end

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

Euro/USA 1.2106 DOWN .0057 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 /RED

USA/JAPAN YEN 103.85 UP 0.254 (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 1.3696 DOWN 0.0044 (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.2763 UP .0071 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 57 basis points, trading now ABOVE the important 1.08 level FALLING to 1.2106 Last night Shanghai COMPOSITE UP 3.91 PTS OR .11%

//Hang Sang CLOSED DOWN 93.73 PTS OR .32%

/AUSTRALIA CLOSED UP 0,72%// EUROPEAN BOURSES ALL RED

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 93.73 PTS OR .32%

/SHANGHAI CLOSED UP 3.91 PTS OR .11%

Australia BOURSE CLOSED UP 0.72%

Nikkei (Japan) CLOSED UP 89.03 POINTS OR 0.31%

INDIA’S SENSEX IN THE RED

Gold very early morning trading: 1839.40

silver:$25.03-

Early WEDNESDAY morning USA 10 year bond yield: 1.019% !!! DOWN 2 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

The 30 yr bond yield 1.781 DOWN 1 IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 90.53 UP 56 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: 0.02% DOWN 0 in basis point(s) yield from YESTERDAY/

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

SPANISH 10 YR BOND YIELD: 0.08%//DOWN 0 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.65 UP l points in basis points yield from yesterday./

the Italian 10 yr bond yield is trading 57 points higher than Spain.

GERMAN 10 YR BOND YIELD: FALLS TO –.53% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.19% 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 1.2099 DOWN .0064 or 64 basis points

USA/Japan: 104.11 UP .510 OR YEN DOWN 51 basis points/

Great Britain/USA 1.3645 DOWN 56 POUND DOWN 56 BASIS POINTS)

Canadian dollar DOWN 84 basis points to 1.2781

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The USA/Yuan, CNY: closed DOWN AT 6.4834 ON SHORE DOWN)..

THE USA/YUAN OFFSHORE: 6.4936 (YUAN DOWN)..

TURKISH LIRA: 7.38 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield at +0.03%

Your closing 10 yr US bond yield DOWN 1 IN basis points from TUESDAY at 1.019 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.77 DOWN 2 in basis points on the day

Your closing USA dollar index, 90.59 UP 42 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 DOWN 86.64 1.30%

German Dax : CLOSED DOWN 250.95 POINTS OR 1.81%

Paris Cac CLOSED DOWN 63.90 POINTS 1.16%

Spain IBEX CLOSED DOWN 112.20 POINTS or 1.41%

Italian MIB: CLOSED DOWN 324.27 POINTS OR 1.47%

WTI Oil price; 53.19 12:00 PM EST

Brent Oil: 56.19 12:00 EST

USA /RUSSIAN / RUBLE FALLS: 75.69 THE CROSS HIGHER BY 0.56 RUBLES/DOLLAR (RUBLE LOWER BY 56 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO –.55 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 : 52.66//

BRENT : 55.55

USA 10 YR BOND YIELD: … 1.013..down 3 basis points…

USA 30 YR BOND YIELD: 1.774 down 2 basis points..

EURO/USA 1.2103 ( DOWN 60 BASIS POINTS)

USA/JAPANESE YEN:104.19 UP .586 (YEN DOWN 59 BASIS POINTS/..

USA DOLLAR INDEX: 90.64 UP 47 cent(s)/

The British pound at 4 pm Britain Pound/USA:1.3679 down 61 POINTS

the Turkish lira close: 7.41

the Russian rouble 75.90 DOWN 0.79 Roubles against the uSA dollar. (DOWN 79 BASIS POINTS)

Canadian dollar: 1.2802 DOWN 109 BASIS pts

German 10 yr bond yield at 5 pm: ,-0.55%

The Dow closed DOWN 633.97 POINTS OR 2.05%

NASDAQ closed DOWN 382.51 POINTS OR 2.84%

VOLATILITY INDEX: 32.83 CLOSED UP 9.81

LIBOR 3 MONTH DURATION: 0.218%//libor dropping like a stone

USA trading today in Graph Form

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

An index of the “most-shorted” stocks in the US equity market is up a stunning 54% in January. For context, it was up 49% in the entirety of 2020, one of its greatest years ever.

Source: Bloomberg

And as shorts were squeezed drastically, hedge funds were forced to liquidate their favorite longs (and likely most liquid) to cover the margin calls and/or losses on the shorts…

Source: Bloomberg

That spilled over into the broad market with Nasdaq clubbed like a baby seal…

Biggest down day for markets since October

All S&P Sectors were lower today, led by Tech…

Source: Bloomberg

But, don’t worry, Fed’s Jay Powell and the Biden admin said they are “monitoring” the markets…

Today saw the biggest selling program (downtick) since October.,..

Source: Bloomberg

The selling peaked as Powell began speaking…

Source: Bloomberg

But today’s malarkey was in the big short-squeezes, so here are a handful for your amusement…

GME was up anywhere between 100% and 350%…

AMC exploded almost 300% today…

NOK spiked briefly but held a loit of the gains for a 60%-plus gain…

KYNC was up almost 200%…

And EXPR was up over 200% despite giving half its early gains back…

But yeah, apart from all that, the market is totally normal.

Growth’s bid over Value stalled today…

Source: Bloomberg

Interestingly, non-profitable tech companies lost ground this week…

Source: Bloomberg

VIX surged above 30 today as stocks sold off but we can’t help but feel this is call-buying-driven for now… nevertheless, it’s a notable decoupling.

Source: Bloomberg

Bonds were bid as stocks puked…

Source: Bloomberg

10Y Yields briefly dipped below 1,.00% today – the lowest since the 6th of Jan…

Source: Bloomberg

The dollar was higher on the day, tagging the top of its recent channel…

Source: Bloomberg

But bitcoin dropped back below $30k intraday before bouncing back…

Source: Bloomberg

Gold slipped lower on the day…

Source: Bloomberg

Oil ended unch after some wild whipsaws around inventories.,..

Source: Bloomberg

Finally, this will make you laugh – the holding company for Blockbuster‘s liquidation is up a rather amusing 4900% in the last two days…

Source: Bloomberg

Yes, that Blockbuster!

a)Market trading/THIS MORNING/USA

10Y Yield Tumbles Below 1.00% As Liquidations Lash Stocks

As the short-squeeze malarkey accelerates this morning…

Source: Bloomberg

Funds are being forced to liquidate their longs to cover losses/margin…

Source: Bloomberg

And that is weighing on the broad market…

Which has put a bid under bonds, sending the 10Y yield back below 1.00%…

Source: Bloomberg

And the dollar is bid as overseas positions are unwound and repatriated…

Source: Bloomberg

It seems that all the cheering over soaring heavily-shorted stocks has an ugly unintended consequence after all. We are sure the regulators will be looking into this now.

END

b)MARKET TRADING/USA//FOMC

The master of double talk:

FOMC Warns Recovery, Job Market Has “Moderated”

Since the last FOMC meeting, on December 16th, stocks are clinging to gains as bonds have lost the most with gold and the dollar firmly unchanged…

Source: Bloomberg

However, while the ‘traditional’ asset classes have been somewhat stagnant, Bitcoin is up 50% since the last Fed meeting (and was up over 115% at its highs)….

Source: Bloomberg

Also, real yields are marginally lower (more negative) since the December Fed

Source: Bloomberg

And after all that, unlike the quite exciting December FOMC meeting, consensus among economists was that the January FOMC meeting should be fairly quiet.

We suspect it will be more of this…

Of course, everyone will be focused on any mentions of tapering (or heaven forbid, rate hikes). Since introducing forward guidance for its asset purchase policy in December, FOMC members have provided a range of possibilities for when the Fed might start tapering asset purchases. A few of the regional Fed presidents mentioned the possibility of pulling back asset purchases later this year, but key members of the FOMC have pushed back on an early tapering.

Most economists see a taper starting in 2022, either in the first quarter or the second, according to a Bloomberg survey. And 88% of respondents said tapering would indeed be the Fed’s next move when it comes to the bond purchases. Only 12% saw an increase to the pace, currently at $120 billion a month.

Source: Bloomberg

Summing up expectations – Rates unch, bond-buying unch, and no economic forecast updates.

So what did they say?

The Fed is a little less optimistic:

“The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic”

Useful timing indeed considering Congress’ push for $1,.9 trillion in “stimulus.”

And mentioned vaccines:

“The path of the economy will depend significantly on the course of the virus, including progress on vaccinations.“

FOMC leaves rates unchanged at 0-25bps; pace of US economic activity and employment has moderated in recent months; purchases remain unchanged at USD 80bln USTs and USD 40bln MBS

The Fed did not mention Gamestop?

* * *

Full redline below (NOTE- One other change to the statement will be the update of the FOMC voters. Presidents Barkin, Bostic, Daly, and Evans are voters in 2021, replacing Presidents Harker, Kaplan, Kashkari, and Mester. In addition, Christopher Waller, formerly the head of research at the St. Louis Fed under President James Bullard, has joined the FOMC as a governor):

ii)Market data/USA

Durable Goods Orders Disappoint In Preliminary January Data

Durable Goods Orders were expected to rise (+1.0% MoM) for the 8th straight month in preliminary January data, but disappointed expectations for the first time since April by rising just 0.2% MoM.

Source: Bloomberg

Overall, durable goods orders have far surpassed the pre-COVID levels

Source: Bloomberg

While the headline disappointed, orders ex-Transports rose 0.7% MoM, beating expectations of a 0.5% MoM jump, and core capital goods orders, which exclude aircraft and military hardware, rose 0.6% after an upwardly revised 1% advance in November.

iii) Important USA Economic Stories

COVID UPDATE/USA/ANXIETY AND DEPRESSION AMONG MANY USA CITIZENS.

COVID Response Sparks Spike In Americans’ Anxiety & Depression

Aside from killing nearly 400,000 Americans to date and wreaking havoc on the country’s economy, Statista’s Felix Richter notes that the COVID-19 pandemic is also taking a heavy toll on mental health.

That’s according to data compiled by the U.S. Census Bureau and the National Center for Health Statistics, showing that more than 4 in 10 U.S. adults had developed symptoms of depression or anxiety by the end of 2020, a sharp increase over the results of a comparable survey conducted in the first half of 2019.

You will find more infographics at Statista

The latest findings are derived from the Household Pulse Survey, which has been launched to produce data on the social and economic impacts of COVID-19 on American households. A total of 60,000 Americans were surveyed about their mental health between December 9 and 21, asked to report how often they have felt down, depressed, hopeless or anxious in the last week, how often they have been unable to stop worrying or shown little interest or pleasure in doing things – all symptoms that have been shown to be associated with diagnoses of generalized anxiety disorder or major depressive disorder.

As the chart above shows, the share of respondents showing signs of anxiety or depression has nearly quadrupled compared to results obtained before the pandemic. As hundreds of thousands have died and millions have lost their jobs, Americans are facing a plethora of uncertainties with respect to their and their families’ health and financial wellbeing, worries which are only exacerbated when dealt with alone amid a time of social distancing.

END

CORONAVIRUS UPDATE/USA

USA STATES now ease lockdowns despite mutant Covid strains

(zerohedge)

US States Ease Lockdowns Despite “Mutant” COVID ‘Boogeymen’

Even as President Joe Biden challenges Americans to a “100 day masking challenge” and other mask-related restrictions on federal land, some of the biggest states in the US (including ultra-liberal California and swing-state Michigan, among others) are going their own way, resisting calls from the Biden administration to go heavy with masks and lockdowns, which have – as we’ve noted, seemingly made no difference and lack scientific basis.

Perhaps it has something to do with the WHO’s admission that PCR overamplification may have led to the “Case-Demic” that “conspiracy theorists have long warned about.

But whatever the case may be, recently, liberal governors like New York’s Andrew Cuomo appeared to recognize that the economy needs to reopen, and quickly. Even Cuomo acknowledges that the holiday spike is fading.

Notably, the spike in cases from the pre-holiday period is already beginning to subside. This, coupled with all of those warnings about a post-holiday case surge, had led to suspicions that the American public has been gaslighted – or at least intentionally misled, by federal authorities intent on doing whatever they can to tarnish President Trump’s legacy.

Meanwhile, and possibly related, vaccination rates worldwide aren’t off to a great start – while reports of healthcare professionals and others who refuse to take it have been rolling in.

Yet, despite liberal leaders’ sudden post-inauguration interest in reopening, they seem to be ignoring the new boogeyman – the new “mutated” strains from the UK and South Africa, which have caused a good deal of panic among public health officials (whether warranted or not).

And since the US has administered fewer than 25MM vaccines, more of these COVID “variants” are setting off alarms – causing vaccine maker Moderna announcing the development of a ‘booster’ shot to protect against both mutants.

Teachers’ unions, meanwhile, are increasingly opposed to lawmakers pushing to return to in-person instruction within 100 days.

According to Northwestern University epidemiologist Sadiya Khan, who spoke with Bloomberg, “We’re just asking to go backwards by easing restrictions without focusing on achieving herd immunity with vaccination.” The doctor is an epidemiologist at the Northwestern University Feinberg School of Medicine in Chicago.”It’s very fragile,” she said referring to the COVID economy.

Perhaps things would be less ‘fragile’ if Democratic leaders’ sudden push to reopen didn’t have the most suspicious timing in the known universe, and California (and other states) were more transparent about whose ‘science’ they’re following.

END

This is going to be really bothersome to the new Biden administration

Wu/EpochTimes.

Migrants Increasing At “Concerning Rate” On Southern Border, Says CBP Agent

Authored by Terri Wu via The Epoch Times,

As caravans build up in Honduras, migrants are increasing at a “concerning rate” at the United States southern border, according to Matthew Hudak, U.S. Customs and Border Protection (CBP) chief patrol agent of the Laredo sector in Texas. He warns that immigration is just a piece of the threat coupled with the pandemic health risk and other crimes along the border.

“Like everybody, we’re tracking the formation of these caravans in Central America,” said Hudak. The Laredo Sector is one of nine CBP sectors along the southern border. It contains about 135 miles of the international border with Mexico.

On Jan. 8, CBP Acting Commissioner Mark A. Morgan issued a statement on potential migrant caravans:

“Do not waste your time and money, and do not risk your safety and health.”

According to Hudak, the Laredo Sector hasn’t seen a reduction of migrants in response to the statement. It has made over 30,000 arrests in this fiscal year, a 50 percent increase over the same period last year. Hudak added that similar trends are identified by other sectors on the southern border. The U.S. government fiscal year starts on Oct. 1. Hudak called the 50 percent increase “a pretty concerning rate.”

Matthew J. Hudak, Chief Patrol Agent of Laredo Sector of the U.S. Customs and Border Protection during the video interview on Jan. 21, 2021. (Terri Wu/The Epoch Times)

He told The Epoch Times that some portions of the caravan of 9,000 migrants will make their way to the southern border. Part of the group was stopped in Guatemala on Jan. 16. Depending on the pace and the means with which these migrants travel, the arrival time at the U.S.-Mexico border may be between a few days and a few weeks. As of Jan. 21, he hasn’t yet seen a dramatic increase of migrants indicative of caravans arriving at the southern border.

Hudak said that human smuggling is usually achieved with systems shared with drug and firearm smuggling, and the fees migrants are charged feed larger criminal organizations. Therefore, he sees a more significant threat: “We may be talking about one piece of it, which is immigration, but it’s part of a much larger criminal enterprise.”

The Laredo Sector is one of nine CBP sectors along the southern border of the United States. It contains about 135 miles of the international border with Mexico. (Americanpatrol.com)

He attributed the trend of migrant increase to the U.S. economy and better healthcare systems, especially during the pandemic. Timing also plays a role.

“We’ve seen the economy in this country get back on track and continue to expand. That’s always a driving force of people coming this way looking for jobs and work. We have done interviews where we do get that information that there is a sense of timing, that now is the time to try to make that journey here to the U.S.”

Teresa De la Garza, Department of Justice (DOJ) accredited immigration representative at Catholic Social Services in Laredo, Texas, went through an 11-year process to become an American. Growing up at the border, she used to go to an international school in Texas and go back home to Mexico every day. She said part of the migrant enthusiasm is fueled by more of a change of president than shifts in immigration policies.

Teresa De la Garza (center), immigration representative at Catholic Social Services in Laredo, TX, with her colleagues (from left to right) Angeles Palacios, Vanessa Guerrero, Sandra Gutierrez, and Edgar Martinez. (Courtesy of Teresa De la Garza)

She considered the enthusiasm unrealistic.

“Some of the policies that have changed in these past four years can’t be reversed as soon as another president comes in. It will take time.”

In her view, the new administration will need beyond four years to make significant immigration policy changes.

De la Garza is currently busy with many appointments through March for consulting applicants of the Deferred Action for Childhood Arrivals (DACA) program. The program is for illegal immigrants who were brought into the States before their 16th birthday. A Jan. 20 presidential memorandum has reinstated the program after the Department of Homeland Security put the program on hold for review last year.

The local communities don’t want migrants arriving due to pandemic-related health concerns, according to De la Garza. Just a week ago, CBP intercepted 114 migrants in a box truck. Most of them weren’t wearing personal protection equipment.

On Jan. 14, 2021, U.S. Border Patrol agents from Laredo Sector stopped a human smuggling attempt involving a U-Haul rental box truck in south Laredo and arrested 114 illegal migrants. (Courtesy of CBP)

According to Hudak, the top near-term challenges are protecting national security and the workforce during the pandemic and keeping up with the evolution of tactics of the cartels and the smuggling organizations, including using more moving vehicles than large trailer trucks.

end

BOEING

More troubles for Boeing

(zerohedge))

Boeing Plunges After Unexpected 777X Delay; Cash Inferno Continues

One quarter after Boeing announced it would fire 11,000 workers in hopes to stem its massive cash burn (which in Q3 hit $5 billion), moments ago Boeing gave an update on how its attempt to halt the melting of the ice-cube is going. Alas… not good.
In Q4, the company reported revenue of $15.30BN, down from $17.9BN a year ago, if slightly ahead of est. of $15.09BN. The loss per share – which exploded – was meaningless, soaring to ($15.25) in Q4 up over 7x from the Loss of $2.33 a year ago, and clearly irrelevant in the context of the ($1.80 exp), largely as a result of another massive charge taken by the company due to delays on the 777X program. Meanwhile Boeing’s attempts to stem its massive cash burn continue to fail, with the company’s free cash burn in Q4 at $4.27Bn, more than the $4BN estimate, and a record $18.4Bn for the full year.

And while everyone knows about the company’s struggles with the 737MAX and covid, the big surprise this quarter was the headline charge on one of the day’s big announcements: the delay of the 777X. The first delivery of the behemoth wide-body jet now won’t be made until late 2023. The program took a $6.5 billion charge, Boeing said. Some other Highlights from the quarter:

Boeing Says 777X Program Recorded $6.5B Pretax Charge in 4Q
Boeing Says First 777X Delivery Expected in Late 2023
Boeing 4Q Neg Oper Cash Flow $4.01B, Est. Negative $3.98B
Boeing 4Q Adj Free Cash Burn $4.27B, Est. Burn $4B
Boeing 4Q Neg Adj Free Cash Flow $4.27B, Est. Negative $4B

This is what CEO Calhoun said about the quarter:

“The deep impact of the pandemic on commercial air travel, coupled with the 737 MAX grounding, challenged our results,” Calhoun said. “While the impact of COVID-19 presents continued challenges for commercial aerospace into 2021, we remain confident in our future, squarely-focused on safety, quality and transparency as we rebuild trust and transform our business.”

The company also reported that in Q4 total Commercial Planes Deliveries 59, slightly ahead of the estimated 58.60.

Some other highlights from the quarter:

Boeing:Will Continue With Actions in Yr to Preserve Liquidity
Boeing Sees Revenue, Operating Cash Flow Improving vs 2020

CEO Dave Calhoun gave some more color on the decision to delay the market debut of the company’s next new jet, the 777X, by about a year to late 2023.

“This schedule, and the associated financial impact, reflects a number of factors, including an updated assessment of global certification requirements, our latest assessment of COVID-19 impacts on market demand, and discussions with customers with respect to aircraft delivery timing. We remain confident in the 777X and the unmatched capabilities and value it will offer our customers,” he said in a message to employees.

Perhaps the delay should have been expected: Boeing cited the pandemic’s impact on market demand and “an updated assessment of global certification requirements” as reasons for the pushed-out launch. This will be the first plane scrutinized by the FAA since the Max debacle, and the regulator is going to carefully review every inch of the plane according to Bloomberg.

Just as troubling: there was no explanation from Calhoun why Boeing hasn’t delivered any of its 787 Dreamliners since mid-October. The company indicated in December that it had broadened inspections for tiny manufacturing defects in the jets’ carbon-composite frames, a process that involves ripping out interiors, in some cases.

“We also launched comprehensive production inspections of our 787 airplanes to ensure that each meets our rigorous engineering specifications prior to delivery, as we also drive stability in our production system to be better positioned for market recovery,” Calhoun told employees.

There was one encouraging sign in Boeing’s earnings report, that it has delivered 40 of its 737 Max planes since the U.S. grounding ended in November. Five airlines have returned the plane to service. Boeing has hundreds of Max jets that are built but undelivered. With the grounding ending, the company can start shipping them to customers and turning them into cash.

Unfortunately, that’s not nearly enough, and as Bloomberg notes, the company’s total backlog was about $363 billion at the end of 2020, down roughly $100 billion from a year earlier. The biggest decline was in the commercial aerospace division. This reflects a wave of cancellations for the Max jet as the prolonged grounding gave customers more room to negotiate when the pandemic hit.

And as the pandemic rages, commercial aircraft revenues continue to be smothered, and the result is lower wide-body volume because of Covid-19, 787 production issues and grounded Maxes sent jetliner deliveries to their worst level in decades. The tally? Commercial aircraft revenue dropped in half last year to $16.1 billion.

As an aside, Boeing has not changed its plans to speed production of the 737 to a 31-plane a month pace by early next year, “with further gradual increases to correspond with market demand.” That should a relief for investors after Airbus SE last week pared plans to increase output of the rival A320neo family.

As usual investor attention fell on the company cash flow, or rather cash burn, with Boeing burning another $4.3 billion in free cash in the fourth quarter, slightly more than the $4 billion cash use expected by analysts…

… bringing its full-year cash burn to $19.7 billion in 2020.

Amusingly, the company which two quarters ago was on the verge of collapse, still has an investment grade BBB-/Baa2 rating with a debt load which is now over $60 billion. Meanwhile, its cash declined by $2 billion in the quarter, from $27.1BN to $25.6BN.

Not boosting confidence was the continued lack of projections: once again Boeing failed to provide a detailed outlook for its 2021 results (for the simple reason that it can’t). That’s a contrast with two of its biggest suppliers, GE and Raytheon Technologies, which yesterday resumed providing financial guidance.

Bottom line: after surging higher in recent days, BA stock tumbled on yet another dismal quarter, and was last trading back under $200, at $194 after dropping as low as $192.

Rand Paul: Dems Are “Angry, Unhinged, Deranged By Their Hatred” Of Trump

Authored by Steve Watson via Summit News,

Senator Rand Paul argued against the impeachment of Donald Trump Tuesday, urging that “Democrats are about to drag our great country down into the gutter of rancor and vitriol the likes of which has never been seen in our nation’s history.”

Paul proclaimed that Democrats are “angry, unhinged partisans, deranged by their hatred of the former president.”

“Shame on those who seek blame and revenge, and who choose to pervert a constitutional process while doing so,” Paul said on the Senate floor, adding “I want this body on record — every last person here.”

“It’s almost as if they have no ability to exist except in opposition to Donald Trump” Paul declared, explaining that they are more guilty of ‘incitement’ than Trump could be.

Watch:

“No Democrat will honestly ask whether Bernie Sanders incited the shooter that nearly killed Steve Scalise,” Paul said, adding “No Democrat will ask whether Maxine Waters incited violence when she literally told her supporters to confront Trump officials in public.”

Paul further stated that while he voted against challenging the electoral college certification of the election, it is beyond the pale to attempt to cancel lawmakers who did.

“I disagreed. I don’t think Congress should overturn the Electoral College but impeaching or censoring, or expelling a member of Congress you disagree with? Is the truth so narrow that only you know the truth?” the Senator noted, in a reference to voter fraud.

Paul’s speech was part of an effort by the Senator to force a vote on the constitutionality of the impeachment trial.

When all was said and done, 45 Republicans voted with Paul, against the impeachment trial.

This means that 5 Republicans in the Senate side with Democrats on the impeachment. Those Senators are Mitt Romney of Utah, Ben Sasse of Nebraska, Susan Collins of Maine, Lisa Murkowski of Alaska and Pat Toomey of Pennsylvania.

Say their names.

Senator Paul noted that given that at least 17 Republicans would have to vote with Democrats, the vote “shows that impeachment is dead on arrival.”

“If you voted that it was unconstitutional then how in the world would you ever hope to convict somebody for this?” Paul asked, adding ,”45 of us, almost the entire caucus, 95% of the caucus, voted that the whole proceeding was unconstitutional.”

“This is a big victory for us. Democrats can beat this partisan horse as long as they want — this vote indicates it’s over, the trial is all over,” Paul declared

end

Stefan Gleeson..

Biden to Preside Over Another Financial Crisis

January 27, 2021

Stefan Gleason

Money Metals

Being put in charge of the U.S. government’s finances in 2021 is a bit like being appointed captain of the Titanic in 1912.

More to the point, trying to avert a financial disaster ahead in the current environment is akin to trying to steer a doomed ship away from a deadly iceberg moments before impact.

By the time the Titanic’s crew had realized the impending danger in front of them, it was too late to change course. The massive ship’s momentum ensured a collision would occur.

President Joe Biden’s incoming U.S. Treasury Secretary will be virtually powerless to change the trajectory of government debt growth – a trajectory that history suggests will end in disaster.

Yellen Believed She’d Never Live to See Times Like These

On Monday, the U.S. Senate confirmed Janet Yellen to be President Joe Biden’s Treasury Secretary. All Democrats and most Republicans supported her nomination, with only 15 opposed.

Treasury Secretary was once a leftist professor at UC Berkeley.

When President Donald Trump’s pick for Treasury, Steven Mnuchin, went to the Senate in 2017, only one Democrat voted to confirm his nomination.

Later in 2017, then Federal Reserve chair Janet Yellen stated she didn’t believe we would see another financial crisis “in our lifetimes.”

“Would I say there will never, ever be another financial crisis? … Probably that would be going too far. But I do think we’re much safer, and I hope that it will not be in our lifetimes, and I don’t believe it will be,” she said during a conference in London.

Obviously, Yellen couldn’t have been expected to foresee the outbreak of a highly contagious novel coronavirus from China. But she shouldn’t have been so confident about central planners’ ability to steer the economy away from the next disaster.

The particular trigger points for financial crises are inherently unpredictable.

The next one could be kicked off by a natural disaster, a terrorist attack, a political upheaval, a bank failure, a debt default, a spike in interest rates, a surge in inflation, or something else entirely.

Treasury Secretary Yellen believes runaway government debt spending isn’t a risk factor for the next crisis, but rather the solution to the current one. During her recent testimony, she urged Congress to “act big” on stimulus.

Acting big means pushing an already record-high budget deficit even higher – likely to over $3 trillion this year. Meanwhile, the official accumulated national debt (not even counting unfunded Social Security, Medicare, and other liabilities) is approaching $28 trillion – well in excess of total U.S. GDP.

Inflation Danger Ahead

The powers that be in the U.S. have managed to keep kicking the can down the road for longer than many sound money advocates had thought possible.

But fiscal and monetary policy have now entered a new and dangerous phase. Politicians promise to literally send out cash (“stimulus”) to millions of voters while the central bank monetizes the deficit spending and abandons previous commitments to “stable prices.”

The specific danger ahead is inflation.

The official consumer price inflation figure reported by the Bureau of Labor Statistics is just the tip of the iceberg.

The true magnitude of the inflation problem that could hit the economy is represented by a spiking currency supply and the untold trillions more dollars that will have to be created in the months ahead on behalf of the Treasury Department’s ever-growing borrowing needs.

Skeptics who say there’s no underlying inflation problem apparently think the stock market, Bitcoin, and other financial assets have simply “inflated” on their own. But they won’t be so sanguine when inflation manifests through record-high food, energy, and precious metals prices.

Gold and silver are more than just inflation hedges. They are insurance against various sorts of financial and political crises – including the ones nobody sees coming.

Precious metals markets can be just as unpredictable day-to-day as world events. Over longer periods, however, they more reliably reflect the inverse of investor confidence in the Federal Reserve Note.

As Treasury Secretary Yellen together with her protégé Jerome Powell at the Fed prepare to pursue “weak dollar” policies and coordinate globally with other central planners, investors may find that the world’s strongest currencies are physical precious metals.

-END-

iv) Swamp commentaries

Crooks!! They should throw these Rinos and Dems under a bus

(zerohedge)

Anti-Trump Senators Quietly Pitching Colleagues On Censure As Trump Impeachment Unlikely

With the chances of the Senate actually convicting former President Trump in the upcoming impeachment trial, Sens. Tim Kaine (D-VA) and Susan Collins (R-INO) are quietly pitching their colleagues on a bipartisan resolution to censure Trump, according to Axios.

The Senators are ‘looking for a way to condemn Trump on the record’ as it’s become abundantly clear that Democrats don’t have the 17 GOP crossover votes required to gain a conviction for Trump’s second impeachment. That said,Axios says that some Democrats are only interested in censure if at least 10 GOP Senators will publicly commit to it – which would accomplish the 60-vote margin required to pass major legislation in the chamber.

It isn’t clear whether the censure would come after a trial, or be in lieu of it.

More via Axios:

Driving the news: Kaine (D-Va.) and Collins (R-Maine) have been interested in a censure resolution for weeks now and have discussed it on multiple occasions.

But the bipartisan discussions among senators grew more earnest after 45 Republicans voted today in favor of a motion to dismiss the trial because Trump is now out of office.

The vote was a clear indication he won’t be convicted.

Between the lines: In some ways, a censure vote could be more difficult for Republicans, because they can’t rely on the argument that a resolution is unconstitutional — like they are for an impeachment conviction.

It would also be a history-making vote. No other president has been censured after leaving office.

What they’re saying: “I think it’s pretty obvious from the vote today, that it is extraordinarily unlikely that the president will be convicted. Just do the math,” Collins told reporters Tuesday afternoon.

Kaine has said he wants to do whatever possible to keep the focus on the Biden-Harris agenda and COVID-19 relief, so he supports a speedy trial or alternate way to hold Trump accountable.

* * *

Earlier Tuesday, Sen. Rand Paul (R-KY) excoriated Democratsover the impeachment effort against Trump for allegedly inciting the Jan. 6 Capitol riot, despite the fact that he told his supports to come, and leave, peacefully while protesting the results of the 2020 election.

“Democrats are about to drag our great country down into the gutter of rancor and vitriol the likes of which has never been seen in our nation’s history,” said Paul, adding “It’s almost as if they have no ability to exist except in opposition to Donald Trump”

Sen. @RandPaul:

“Democrats are about to drag our great country down into the gutter of rancor and vitriol the likes of which has never been seen in our nation’s history… It’s almost as if they have no ability to exist except in opposition to Donald Trump.” pic.twitter.com/kiCimV0GIX

— Daily Caller (@DailyCaller) January 26, 2021

end

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

Chinese stocks fall as central bank adviser [Ma Jun] warns of asset bubble

PBoC moves to tighten liquidity following country’s strong economic recovery from Covid-19

The risk of asset bubbles would increase if the central bank did not adjust its policy… https://www.ft.com/content/357ef660-8827-4776-81ea-9e4abffda811

China Asset-Bubble Warning Threatens Stock Frenzy in Hong Kong

https://www.bloomberg.com/news/articles/2021-01-26/china-asset-bubble-warning-threatens-stock-frenzy-in-hong-kong

@tomselliott: Joe Biden in October: “I have this strange notion, we are a democracy … if you can’t get the votes … you can’t [legislate] by executive order unless you’re a dictator. We’re a democracy. We need consensus.” https://twitter.com/tomselliott/status/1354035368211984390

CBS’s @camiloreports: U.S. Judge Drew Tipton temporarily halts the Biden administration’s 100-day moratorium on certain deportations in an early legal battle over the new president’s immigration policy.

https://twitter.com/camiloreports/status/1354150713631379462

GOP Sen @RandPaul: The Senate just voted on my constitutional point of order. 45 Senators agreed that this sham of a “trial” is unconstitutional. That is more than will be needed to acquit and to eventually end this partisan impeachment process. This “trial” is dead on arrival in the Senate.

Five Trump-hating GOP senators aligned with Democrats and voted “no” on Sen. Paul’s motion to dismiss the impeachment trial on Constitutional grounds: Lisa Murkowski (AK), Susan Collins (ME), Mitt Romney (UT), Pat Toomey (PA) and Ben Sasse (NE)

The Russia informant transcript the FBI didn’t want Americans to see

In secretly recorded talks with informer Stefan Halper, Carter Page dispelled key Russia collusion allegations before FISA warrant was even approved. The memos show Halper was repeatedly coached by the FBI on how to penetrate the Trump campaign foreign policy circle starting in August 2016 and how to quiz Page about several sensational allegations of collusion made by fellow FBI informant and former MI6 operative Christopher Steele in his now infamous dossier…

https://justthenews.com/accountability/russia-and-ukraine-scandals/declassified-russia-informant-transcript-fbi-didnt-want

The Left Said Amy Coney Barrett’s Faith Made Her ‘Radical.’ Now, They Say Joe Biden’s Faith Makes Him ‘Devout’ – the message of the Left and the legacy media as a whole is clear: devout faith in a leader is to be celebrated, as long as that leader is with us.

https://www.dailywire.com/news/the-left-said-amy-coney-barretts-faith-made-her-radical-now-they-say-joe-bidens-faith-makes-him-devout

@TheBabylonBee: Man Who Called Half the Country Racists All Year Calls for Unity

https://babylonbee.com/news/man-who-called-half-the-country-nazis-all-year-calls-for-unity/

Jeff Carlson: @themarketswork: 1) “Funded by hundreds of millions of dollars from Facebook founder Mark Zuckerberg and other high-tech interests, activist organizations created a two-tiered election system” 2) “Private monies dictated city and county election management contrary to both federal law and state election plans endorsed and developed by state legislatures with authority granted by the United States Constitution.”… 5) “This public-private partnership in these swing states effectively placed government’s thumb on the scale to help these private interests achieve their objectives and to benefit the candidates of one political party.”… 7) “Swing state governors also started issuing emergency executive orders shutting down in-person voting while pouring new state resources into encouraging persons to vote in advance.”… 9) “These actions represent the beginning of the formation of a two-tier election system favoring one demographic while disadvantaging another demographic.” 10) “Zuckerberg-CTCL funds allowed these Democrat strongholds to spend roughly $47 per voter, compared to $4 to $7 per voter in traditionally Republican areas of the state.”… 12) “In Democrat Delaware County, Pennsylvania, one drop box was placed every four square miles and for every 4,000 voters. In the 59 counties carried by Trump in 2016, there was one drop box for every 1,100 square miles and every 72,000 voters.”… “These irregularities existed wherever Zuckerberg’s money was granted to local election officials.” https://twitter.com/themarketswork/status/1353429525535748101

https://assets.documentcloud.org/documents/20428534/hava-and-non-profit-organization-report-final-w-attachments-and-preface-121420.pdf

Well that is all for today

I will see you MONDAY night.

Silver	Ounces
Withdrawals from Dealers* Inventory*	NIL oz
Withdrawals from Customer Inventory	773,461.178 oz CNT Brinks Delaware Manfra HSBC
Deposits to the Dealer* Inventory*	nil oz
Deposits to the Customer Inventory	2983.39 oz Delaware
No of oz served today (contracts)	91 CONTRACT(S) (455,000 OZ)
No of oz to be served (notices)	0 contracts NIL oz)
Total monthly oz silver served (contracts)	1376 contracts 6,880,000 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*

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NUMBER OF NOTICES FILED TODAY FOR JAN. CONTRACT: 9 NOTICE(S) FOR 900 OZ (0.02799 tonnes)

91 NOTICE(S) FILED TODAY FOR 455,000 OZ/

Let us have a look at the data for today

3. ASIAN AFFAIRS

Trading Volumes on the COMEX TODAY: 329.803 contracts// volume poor/

CONFIRMED COMEX VOL. FOR YESTERDAY: 269,732 contracts// volume: POOR //most of our traders have left for London

ii) Important gold commentaries courtesy of GATA/Chris Powell

Dogs and cats living together! Kitco News does gold price suppression again!

Craig Hemke at Sprott Money: ‘Yield-curve control’ with negative real rates will unleash metals

Breakup of HSBC wouldn’t be a shock

Medieval treasure trove ‘belonging to princess’ found buried in Polish cornfield

iii) Other physical stories:

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

3A/ASIAN AFFAIRS

3 a./NORTH KOREA/ SOUTH KOREA

b) REPORT ON JAPAN

3 C CHINA

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6.Global Issues

Horrific Latent Deaths Predicted Among The Elderly By Genetics Professor After Immunization With RNA Vaccines

7. OIL ISSUES

8 EMERGING MARKET ISSUES

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

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

Closing Price f0r Oil, 4:00 pm/and 10 year USA interest rate:

USA trading today in Graph Form

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