JAN 29//GAMESTOP SHENINIGANS//CITADEL ADN ROBINHOOD EXECUTIVES SHOULD GO TO JAIL//GOLD UP $9.65 TO $1849.10//AND SILVER UP 58 CENTS TO $26.86//HUGE GOLD TONNAGE STANDING FOR FEB: 103.64 TONNES//HUGE SILVER OZ STANDING 8.3 MILLION OZ//CORONAVIRUS UPDATE/VACCINE UPDATE//GAMESTOP AND SILVER COMMENTARIES FOR YOU TONIGHT//CHINA AND USA ON A NEAR WAR FITTING!//TEXAS READY TO SECEDE! SWAMP STORIES FOR YOU TONIGHT

GOLD:$1849.10 up  $9.65   The quote is London spot price

Silver:$26.86. UP  $0.58   London spot price ( cash market)

your data…

 

Closing access prices:  London spot

i)Gold : $1848.70  LONDON SPOT  4:30 pm

ii)SILVER:  $27.05//LONDON SPOT  4:30 pm

 

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Some commentators on silver vs GME

Alasdair Macleod
@MacleodFinance
The bullion bank silver short on Comex is about 100m ounces and there is no liquidity in London. It won’t take much to put a rocket under the price, as we are now seeing. Could destabilise all PM contracts.
5:15 AM · Jan 29, 2021·Twitter for iPad

*From King World News:

Chris Ritchie: “Can you do me a favour and check the total dollars traded in GameStop this week and compare that to the $ needed to buy up 20-30% of the annual silver supply?”

Violent Short Squeeze

Eric King: “Chris, I just calculated the last 4 trading days in GameStop (GME) in dollar terms and it totals $82.3 billion. I think annual silver production is roughly 1 billion ounces and at current prices that would total about $25 billion. That means yesterday’s trading volume in GameStop of $29.9 billion would have purchased more than the entire annual silver mine production! And the last 4 trading days in GameStop ($82.3 billion in dollar terms) would have purchased more than a staggering 3-times the entire annual global silver mine production! This type of buying would obviously create one hell of a violent short squeeze in the silver market.”

Joe Grande

important…

I read on Twitter this morning that Robinhood is only allowing people to close $PSLV, (sell) the Sprott Physical Silver Trust, but you can buy SLV. This tells me that a fair number of people are starting to understand the difference between purchasing paper silver vs. physical silver.

Joe Grande

COMEX DATA

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

receiving today: 5287/16,127

EXCHANGE: COMEX
CONTRACT: FEBRUARY 2021 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,837.900000000 USD
INTENT DATE: 01/28/2021 DELIVERY DATE: 02/01/2021
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 4
072 H GOLDMAN 8900
132 C SG AMERICAS 309
132 H SG AMERICAS 6
323 C HSBC 49
323 H HSBC 112
332 H STANDARD CHARTE 805
355 C CREDIT SUISSE 192
435 H SCOTIA CAPITAL 87
555 H BNP PARIBAS SEC 100
624 C BOFA SECURITIES 115
624 H BOFA SECURITIES 2350
657 C MORGAN STANLEY 36 2178
661 C JP MORGAN 5729 2519
661 H JP MORGAN 2768
685 C RJ OBRIEN 20 10
686 C STONEX FINANCIA 30 25
690 C ABN AMRO 78 78
709 C BARCLAYS 2768
709 H BARCLAYS 1770
730 C PTG DIVISION SG 2
732 C RBC CAP MARKETS 4
732 H RBC CAP MARKETS 644
800 C MAREX SPEC 55
800 H MAREX SPEC 1
880 C CITIGROUP 413
905 C ADM 74 23
____________________________________________________________________________________________

TOTAL: 16,127 16,127
MONTH TO DATE: 16,127

 

issued:5729

GOLDMAN SACHS STOPPED 4 CONTRACTS.

 
 

NUMBER OF NOTICES FILED TODAY FOR  FEB. CONTRACT: 16,127 NOTICE(S) FOR 1,612,700 OZ  (50.16 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  16,127 NOTICES FOR 1,612,700 OZ  (50.16 tonnes) 

SILVER//FEB CONTRACT

 

985 NOTICE(S) FILED TODAY FOR 4,925,000  OZ/

total number of notices filed so far this month: 985 for 4,925,000  oz

BITCOIN MORNING QUOTE  $37,924   UP 6,475

BITCOIN AFTERNOON QUOTE.:  $34,690  UP 3234 DOLLARS .

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GLD AND SLV INVENTORIES:

WITH GOLD UP $9.65  AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 

CROOKS!! 

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD// A WITHDRAWAL OF 4.37 TONNES FROM THE GLD.//

GLD: 1,264.80 TONNES OF GOLD//

WITH SILVER UP 58 CENTS TODAY: AND WITH NO SILVER AROUND:

STRANGE!!

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV..A WITHDRAWAL OF 4.366 MILLION OZ FROM THE SLV/

WITH SILVER UP THESE PAST TWO DAYS?

INVENTORY RESTS AT:

SLV: 567.517  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

 

Let us have a look at the data for today

THE COMEX OI IN SILVER ROSE BY A ASTRONOMICAL SIZED 9480 CONTRACTS FROM 167,853 UP TO 177,333, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE GAIN IN OI OCCURRED WITH OUR STRONG $0.44 GAIN IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS  DUE TO CONSIDERABLE BANKER AND ALGO  SHORT COVERING..  COUPLED AGAINST A HUGE EXCHANGE FOR PHYSICAL. WE ALSO HAD ZERO LONG LIQUIDATION, AND A MONSTROUS INITIAL STANDING IN SILVER OUNCES STANDING AT THE COMEX FOR FEB.  WE HAD AN  ATMOPSHERIC NET GAIN IN OUR TWO EXCHANGES OF 14,640 CONTRACTS  (SEE CALCULATIONS BELOW).

WE WERE  NOTIFIED  THAT WE HAD A STRONG  NUMBER OF  COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  5150, AS WE HAD THE FOLLOWING ISSUANCE:  MARCH  5160 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  5160 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.

6.890 MILLION FINAL STANDING FOR JAN 2021

8.385  MILLION OZ INTITAL STANDING FOR FEB 2021

THURSDAY, 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 44 CENTS) ).. AND, OUR OFFICIAL SECTOR/BANKERS WERE   UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE  ANY SILVER LONGS AS WE HAD A HUMONGOUS GAIN IN OUR TWO EXCHANGES (14,640 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 MONSTER ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A STRONG INITAL STANDING IN SILVER OZ  STANDING  FOR FEB, iii) HUMONGOUS 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:

22,747 CONTRACTS (FOR 19 TRADING DAY(S) TOTAL 22,747 CONTRACTS) OR 113.735 MILLION OZ: (AVERAGE PER DAY: 1197 CONTRACTS OR 5.860 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JAN: 113.735 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON.

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JAN: 113.735 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON.

JAN EFP ACCUMULATION SO FAR:  113.735 MILLION OZ   (RAPIDLY INCREASING AGAIN)

FEB EFP…

RESULT: WE HAD A HUMONGOUS SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 9673, WITH OUR  $0.44 RISE IN SILVER PRICING AT THE COMEX ///THURSDAY.…THE CME NOTIFIED US THAT WE HAD A HUGE SIZED EFP ISSUANCE OF 5160 CONTRACTS WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS.

TODAY WE GAINED AN ATMOSPHERIC SIZED 14,833 OI CONTRACTS ON THE TWO EXCHANGES (WITH OUR $0.44 RISE IN PRICE)//

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 5160 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A MONSTER SIZED INCREASE OF 9673 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH OUR $0.44 RISE IN PRICE OF SILVER/AND A CLOSING PRICE OF $26.28 // THURSDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

FOR THE NEW FEB.  DELIVERY MONTH/ THEY FILED AT THE COMEX: 985 NOTICE(S) FOR 4,985,000 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 ROSE BY A SMALL 2615 CONTRACTS TO 536,272 AND CLOSER TO  OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE SMALL SIZED GAIN IN COMEX OI OCCURRED DESPITE OUR STRONG  LOSS IN PRICE  OF $6.90 /// COMEX GOLD TRADING// THURSDAY. WE PROBABLY HAD SOME BANKER/ALGO SHORT COVERING  ACCOMPANYING OUR FAIR EXCHANGE FOR  PHYSICAL ISSUANCE. WE  HAD ZERO LONG LIQUIDATION AS WE CONCLUDED WITH OUR SPREADER LIQUIDATION AND DESPITE THAT, WE STILL HAD A GAIN OF 6877 CONTRACTS. WE HAVE A GIGANTIC INITIAL STANDING IN GOLD OUNCES  AT THE COMEX AT 103.66 TONNES FOR FEBRUARY....THIS ALL HAPPENED WITH OUR  FALL IN PRICE OF $6.90. 

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

WE HAD A GOOD GAIN OF 6558 CONTRACTS  (20.398 TONNES) ON OUR TWO EXCHANGES.. 

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 3943 CONTRACTS:

CONTRACT . FEB:0,  APRIL:  3943  ALL OTHER MONTHS ZERO//TOTAL: 3943.  The NEW COMEX OI for the gold complex rests at 536,272. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EXCHANGE DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6558 CONTRACTS: 2615 CONTRACTS INCREASED AT THE COMEX AND 3943 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6558 CONTRACTS OR 20.398 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A FAIR SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (3943) ACCOMPANYING THE SMALL SIZED GAIN IN COMEX OI  (2615 OI): TOTAL GAIN IN THE TWO EXCHANGES:  6558 CONTRACTS. WE NO DOUBT HAD 1 ) CONSIDERABLE BANKER SHORT COVERING AND CONSIDERABLE ALGO SHORT COVERING ,2.)HUMONGOUS INITIAL STANDING//  AT THE GOLD COMEX FOR THE FRONT FEB. MONTH TO 103.66 TONNES3) ZEROLONG LIQUIDATION AS WE CONCLUDED OUR SPREADER LIQUIDATION ;4) SMALL COMEX OI GAIN  AND 5) FAIR ISSUANCE OF EXCHANGE FOR PHYSICAL  ...ALL OF THIS WAS COUPLED WITH OUR LOSS IN GOLD PRICE TRADING//THURSDAY//$6.90.

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 : 84,640, CONTRACTS OR 8,464,000 oz OR 263.26 TONNES (19 TRADING DAY(S) AND THUS AVERAGING: 4454 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 19 TRADING DAY(S) IN  TONNES: 263.26 TONNES

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

THUS EFP TRANSFERS REPRESENTS 265.26/3550 x 100% TONNES =7.47% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2021 TO DATE: JANUARY: 265.26 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 HUMONGOUS SIZED 9480 CONTRACTS FROM 167,853 UP TO 177,333 AND CLOSER TO OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

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

EFP ISSUANCE 5160 CONTRACTS

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

 MARCH:  5160  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 5160 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 9480 CONTRACTS TO THE 5160 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN ATMOSPHERIC SIZED GAIN OF 14,640 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 73.20 MILLION  OZ, OCCURRED WITH OUR $0.44 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)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 22.11 PTS OR .63%   //Hang Sang CLOSED DOWN 267.06 PTS OR .94%    /The Nikkei closed DOWN 534.03  POINTS OR 1.89%//Australia’s all ordinaires CLOSED DOWN 0.68%

/Chinese yuan (ONSHORE) closed UP AT 6.4310 /Oil UP TO 52.56 dollars per barrel for WTI and 55.41 for Brent. Stocks in Europe OPENED ALL RED//  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4310. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4501 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 
 
 

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

GOLD

LET US BEGIN:

 

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY BY A SMALL 2615 CONTRACTS TO 536,272 MOVING CLOSER TO 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 SMALL COMEX INCREASE OCCURRED DESPITE OUR  FALL OF $6.90 IN GOLD PRICING /THURSDAY’S COMEX TRADING/). WE ALSO HAD A FAIR EFP ISSUANCE (3943 CONTRACTS).   WE  ALSO PROBABLY HAD  1)  CONSIDERABLE BANKER SHORT COVERING,  2)   ZERO  LONG LIQUIDATION AS WE CONCLUDED WITH OUR SPREADER LIQUIDATION  AND 3)   HUMONGOUS STANDING AT THE GOLD  COMEX//FEB. DELIVERY MONTH(103.64 TONNES) (SEE BELOW) …  AS WE ENGINEERED A GOOD SIZED GAIN ON OUR TWO EXCHANGES OF 6827 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 3943 EFP CONTRACTS WERE ISSUED:  ; FEB// ’21  0 AND APRIL:  3943  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 3943  CONTRACTS.

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

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A GOOD 6,558 TOTAL CONTRACTS  IN THAT 3943 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED 2615 COMEX CONTRACTS DESPITE THE CONCLUSION OF OUR SPREADER LIQUIDATION!..  WE HAVE A HUGE AMOUNT OF GOLD STANDING FOR FEB (103.64 TONNES) FOLLOWING OUR 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 WERSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $9.85)., BUT WERE  UNSUCCESSFUL IN FLEECING ANY LONGS  AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED 21.39 TONNES, ACCOMPANYING OUR HUGE GOLD TONNAGE STANDING FOR FEB (103.64 TONNES)..

NET GAIN ON THE TWO EXCHANGES :: 6558 CONTRACTS OR  655800 OZ OR  20.398  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:  536,272 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 53.62 MILLION OZ/32,150 OZ PER TONNE =  1667 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1667/2200 OR 75.80% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 
 

Trading Volumes on the COMEX TODAY:297,396 contracts// volume poor/

CONFIRMED COMEX VOL. FOR YESTERDAY:  187,782 contracts//  volume: POOR //most of our traders have left for London

 

JAN 29 /2020

 
INITIAL STANDINGS FOR FEB COMEX 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 64,018.217 oz

 

Brinks

Deposits to the Customer Inventory, in oz
nil
Oz
 
 
 
No of oz served (contracts) today
16,127 notice(s)
 
1,612,700 OZ
(50.16 TONNES)
 
 
 
 
No of oz to be served (notices)
17,196 contracts
1,719,600 oz)
 
53.48 TONNES
 
 
 
Total monthly oz gold served (contracts) so far this month
16,127 notices
 
1,612,7000 OZ
50.16 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 1 deposits into the dealer

into Brinks dealer: 64,018.217 oz
 
 
 
total deposit: 64,018.217   oz
 
 
 

total dealer withdrawals: nil oz

 

we had  0 deposits into the customer account

 
 
 

we had  0 gold withdrawals from the customer account:

 

We had 0  kilobar transactions

ADJUSTMENTS:  one

dealer to customer Scotia:  1876.55 oz

The front month of FEB registered a total of 33,323 CONTRACTS. Each contract represents 100 oz.

Thus by definition, the initial amount of gold standing for Feb is as follows:

33,323 contacts x 100 oz per contract  =   3,332,300 oz or 103.64 tonnes

 

MARCH GAINED 303 contracts to stand at 2579

APRIL added 10,321 contracts to stand at 404,825

We had  33,327 notice(s) filed today for  3,332,700 oz

FOR THE FEB 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and  5,729 notices were issued from their client or customer account. The total of all issuance by all participants equates to 16,127  contract(s) of which 2519  notices were stopped (received) by j.P. Morgan dealer and 2769 notice(s) was (were) stopped/ Received) by J.P.Morgan//customer account and 4 notices received (stopped) by the squid  (Goldman Sachs)
 

To calculate the INITIAL total number of gold ounces standing for the FEB /2021. contract month, we take the total number of notices filed so far for the month (16,127) x 100 oz , to which we add the difference between the open interest for the front month of  (FEB 33,323 CONTRACTS ) minus the number of notices served upon today (16,127 x 100 oz per contract) equals 3,332,300 OZ OR 103.64 TONNESthe number of ounces standing in this  active month of FEB

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

No of notices filed so far (16,127 x 100 oz  PLUS 33,323 OI) for the front month minus the number of notices served upon today (16,127} x 100 oz which equals 3,332,300 oz standing OR 103.64 TONNES in this active delivery month of FEBRUARY. This is a HUGE amount  standing for GOLD IN  FEB  

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

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 530.64 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 103.64 tonnes

CALCULATION OF REGISTERED THAT CAN BE SETTLED UPON:

total registered or dealer  19,181,401.941 oz or 596.62 tonnes
 
 
total weight of pledged:  2,121,119.74 oz or 66.32 tonnes
 
 
thus:
 
registered gold that can be used to settle upon: 17,060282.0  (530,64 tonnes)
 
 
 
true registered gold  (total registered – pledged tonnes  17,060,028.0 (530.64 tonnes)
 
 
 
total eligible gold: 19,602,386.378 , oz (609.71 tonnes)
 
 

total registered, pledged  and eligible (customer) gold  38,783,788.319 oz 1,206.33 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  1079.99 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 29/2020

And now for the wild silver comex results

 
 

And now for the wild silver comex results

INITIAL STANDINGS

FEB. SILVER COMEX CONTRACT MONTH//INITIAL STANDING

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
608,484.229 oz
 
 
 
CNT
 
Delaware
 
 
 
 
 
 
 
 
Deposits to the Dealer Inventory
nil oz
 
 
 
 
 
 
Deposits to the Customer Inventory
 
nil oz
 
 
 
 
 
 
 
 
 
 
No of oz served today (contracts)
985
 
CONTRACT(S)
(4,925000 OZ)
 
No of oz to be served (notices)
691 contracts
 3,455,000 oz)
Total monthly oz silver served (contracts)  495 contracts

 

4,925,,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month
 
We had 0 deposits into the dealer:
 
 
 
 

total dealer deposits: nil        oz

i) We had 0 dealer withdrawal

total dealer withdrawals: nil oz

we had 0 deposit into the customer account (ELIGIBLE ACCOUNT)

 
 
 
 

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: nil    oz

we had 2 withdrawals:

 
 
i) Out of CNT:  600,431.670 oz
ii) Out of Delaware:8052.555 oz
 
 
 
 

total withdrawals 608,484.229  oz

We had 2 adjustments: dealer  to customer

Brinks:  113,140.382 oz

Loomis: 174,935.260 oz

 

Total dealer(registered) silver: 149.221million oz

total registered and eligible silver:  397.322 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

FEBRUARY saw a GAIN of 70 contracts to stand at 1676.

Each notice (contract) is represented by 5,000 oz per contract

Thus the initial amount of silver standing in this non active delivery month of February is as follows;

1676 notices x 5,000 oz per notice =      8.380 million oz

MARCH GAINED 7239 contracts UP to 133.982.

The total number of notices filed today for FEB 2021. contract month is represented by 985 contract(s) FOR 4,925,000 oz

To calculate the number of silver ounces that will stand for delivery in FEB we take the total number of notices filed for the month so far at  985 x 5,000 oz = 4,925,000 oz to which we add the difference between the open interest for the front month of FEB (1677) and the number of notices served upon today 985 x (5000 oz) equals the number of ounces standing.

Thus the FEB standings for silver for the FEB/2021 contract month: 985 (notices served so far) x 5000 oz + OI for front month of FEB(1677)- number of notices served upon today (985) x 5000 oz of silver standing for the Jan contract month .equals 8,385,000 oz. ..VERY STRONG FOR A NON ACTIVE  FEB MONTH.

TODAY’S ESTIMATED SILVER VOLUME :187,782 CONTRACTS // volume criminal//939 million oz

134% of annual production//day traders

FOR YESTERDAY  104,008  ,CONFIRMED VOLUME// good/

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  RISES TO- 2.11% ((JAN 29/2021)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO 1.84% to NAV:   (JAN 29/2021 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/2.11%(JAN 29/2021)

(courtesy Sprott/GATA

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

NAV 19.76 TRADING 18.95///NEGATIVE 4.11

END

And now the Gold inventory at the GLD/

JAN 29/WITH GOLD UP $9.65 TODAY; A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL  OF 4.37 TONNES FROM THE GLD//INVENTORY RESTS AT 1164.80 TONNES

JAN 28/WITH GOLD DOWN $6.90 TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.71 TONNES LEAVES THE GLD////INVENTORY RESTS AT 1169.17 TONNES

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  29 / GLD INVENTORY 1164.80 tonnes

LAST;  989 TRADING DAYS:   +229.90 TONNES HAVE BEEN ADDED THE GLD

LAST 889 TRADING DAYS// +  398.16TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY

end

Now the SLV Inventory/

JAN 29/WITH SILVER UP 58 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 4.366 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 567.517 MILLION OZ//

JAN 28/WITH SILVER UP 44 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.393 MILLION OZ//INVENTORY RESTS AT 571.883 MILLION OZ/

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./.

JAN 22/WITH SILVER DOWN 31 CENTS CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT /

 


574.299 MILLION OZ

JAN 21/WITH SILVER UP 8 CENTS TODAY ; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 

 


574.299 MILLION OZ//
 
//JAN 20/WITH SILVER UP 46 CENTS TODAY ; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV; A DEPOSIT OF 697,000 OZ INTO THE SLV//INVENTORY RESTS AT  574.299 MILLION OZ/
 
 
 
JAN 29/2021

SLV INVENTORY RESTS TONIGHT AT 

 


567.517 MILLION OZ
 
END
 

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

ii) Important gold commentaries courtesy of GATA/Chris Powell

I commented on this yesterday, and told everyone to view the Maguire tape. If you have not done so please view it on the weekend:  3 banks have dropped unallocated gold preparing for Basel iii

(Andrew Maguire/GATA)

3 Swiss banks drop unallocated gold to prepare for Basel III rules, London metals trader Maguire says

 
 Section: 

 

9:04p ET Thursday, January 28, 2021

Dear Friend of GATA and Gold:

In his latest interview with Shane Moran for Kinesis Money, London metals trader Andrew Maguire explains why the “Basel III” financial stability rules, which are soon to be imposed by the Bank for International Settlements, will push major banks out of the “daisy chain” of unallocated gold contracts and into physical gold holdings by the end of June.

Maguire adds that in anticipation of the new rules, three major Swiss banks — UBS, Credit Suisse, and Julius Baer — have just decided to exit the unallocated gold business immediately.

The major bullion banks represented by the London Bullion Market Association, Maguire says, are seeking exemption from the new rules but will have to comply with them because their counterparties in the European Union and Switzerland will be complying.

The “Basel III” rules, Maguire contends, will amount to an official upward revaluation of gold by $500 or more and an upward revaluation of silver by $10 or more.

The interview is 39 minutes long and can be viewed at YouTube here:

https://www.youtube.com/watch?v=jErcxVAx_ME&feature=emb_logo

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

end

JPMorgan helpfully lists 45 other shares that are vulnerable to the shortbusters.

(Reuters/GATA)

JPMorgan helpfully lists 45 other shares vulnerable to Shortbusters

 
 Section: 

 

‘GameStop Effect’ Could Ripple Further as Wall Street Eyes Short Squeeze Candidates

By April Joyner and Saqib Iqbal Ahmed
Reuters
Thursday, January 28, 2021

NEW YORK — The clash between retail traders and Wall Street professionals that sparked roller coaster rides in the shares of GameStop Corp. may pose a risk to dozens of other stocks and potentially create a headache for the broader market, analysts said.

Market watchers identified dozens of stocks potentially vulnerable to extreme volatility after a buying spree from an army of retail traders in recent days prompted hedge funds to unwind their bets against GameStop and other companies, fueling surges in their share prices in a phenomenon known as a “short squeeze.”

“Unfortunately, it’s definitely not a one-off thing,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. “The type of activity that drove that higher, I believe, has caused people to try to duplicate that in other names.”

J.P. Morgan this week named 45 stocks that may be susceptible to short squeezes and similar “fragility events,” including real estate company Macerich Co, restaurant chain Cheesecake Factory, and clothing subscription service Stitch Fix Inc.

Like GameStop, American Airlines Group, AMC Entertainment Holdings, and others that have recently become targets of retail traders in recent days, all the stocks have high short interest ratios. …

… For the remainder of the report:

https://www.reuters.com/article/us-retail-trading-shorts/gamestop-effect…

end

iii) Other physical stories:

Rickards on silver…

Rickards On The Resurgence Of Silver

 
FRIDAY, JAN 29, 2021 – 13:20

Authored by Jim Rickards via The Daily Reckoning,

Most investors who focus on precious metals and commodities know that gold had a great year in 2020, up 24.6%. However, not as many know that silver did even better! Silver was up 47.4% in 2020, rising from $17.80 per ounce on January 2, 2020, to $26.35 per ounce on December 31, 2020.

Silver didn’t just outperform gold in 2020; it also outperformed every other major asset class, including U.S. small cap stocks (up 18.5%), U.S. stocks (up 15.5%), U.S. corporate bonds (up 9.7%) and U.S. Treasuries (up 3.6%). Many other asset classes declined in price in 2020, including commodities, the U.S. dollar, real estate and crude oil.

Silver backed off a little in early 2021 (it’s now trading around $25.25 per ounce), but it has held onto almost all of its 2020 gains. Of course, the question for investors is: Where do we go from here?

Your correspondent with a pallet of 1,000 ounce (about 62.5 pounds) silver ingots in a vault in Switzerland. The walls of the vault are draped with brown paper in order to avoid revealing security details or possible clues to the location. The silver is pure bullion: 99.99% silver. The date the bar was poured, serial number, purity and name of the refiner are all clearly shown stamped on the ingots. At current market prices, one of the silver ingots is worth $25,000. By way of contrast, the small gold bar (seen in the photo near my left hand) is worth about $65,000.

For reasons explained below, investors should expect continued strong outperformance by silver both in bullion form and in the form of shares in well-run silver mining companies.

Before turning to the fundamentals that will send silver prices higher, it’s useful to clear away some of the fog and outright myths surrounding the role of silver in the monetary system and the relationship between the price of silver and the price of gold.

Silver-to-gold comparisons are apples-to-oranges despite the fact that both silver and gold are elements and precious metals.

Let us begin by looking at a simple fact: while silver and gold are both precious metals, silver is a commodity, and gold is not. This statement surprises many readers, but it’s true. The difference turns on the definition of a commodity.

A commodity is a generic and fungible input used with other inputs in manufacturing or other processing activity. Copper is a commodity used in wires. Coal is a commodity used to make steel. Corn is a commodity used in food processing.

Silver is a commodity used in many industrial processes, including water purification, tableware, solar panels, electrical contacts, X-Ray film, mirrors and medical instruments. It’s the best electrical conductor of any metal. It is also used in automobile emission control equipment. All of these industrial and scientific applications qualify silver as a commodity input.

Gold is not good for much of anything except as money. Yes, I know that gold is mined from the ground like other commodities, and it is traded on commodity exchanges, but it’s not a commodity.

There are some specialized applications such as coatings for space helmets and ultra-thin wires made from “five nines” gold, but that’s about it. Jewelry is just bullion that you can wear; it’s not a generic input. Gold is only good as money. Still, it’s the best form of money.

Of course, silver also performs as a precious metal (along with gold, platinum and palladium), and it has long been used as a form of money in coins and bars. The U.S. dollar itself was based on the older Spanish dollar, also known as a piece of eight (in Spanish: Real de a Ocho).

And, that history points to the difficulty of valuing silver and forecasting its price. Silver is both a form of money and an industrial commodity. Its monetary price responds to the same factors as gold, including inflation, interest rates, flight to safety and the exchange value of the dollar.

At the same time, silver (but not gold) responds to the business cycle, since more or less silver may be needed for industrial processes as the economy is either in expansion or contraction.

Of course, it is possible to forecast silver prices by taking account of both the precious metals factors and the business cycle factors. The point is that silver price vectors often diverge from gold price vectors because gold is a pure play on money while silver is a dual play on money and the industrial economy.

This hybrid role for silver can often be frustrating for investors who see gold surging while silver marks time. They may be quick to allege price manipulation in the silver market. The reason is much more mundane, involving only supply and demand for industrial commodities.

Another myth about silver prices involves the infamous “sixteen-to-one” ratio of gold to silver prices. Silver advocates suggest that the price of gold should not be more than 16 times the price of silver. They base this on a misreading of history and law.

Today gold is $1,842 per ounce, and silver is $25.24 per ounce, which yields a ratio of about 73-to-1. If you believe that the appropriate ratio is 16-to-1, then the price of silver would have to be $115 per ounce, assuming gold is unchanged. The silver bulls make this case and suggest that only market manipulation is keeping silver away from that $115 per ounce target.

The entire 16-to-1 argument is nonsense. It’s a popular talking point among some silver aficionados, but it has no economic significance whatsoever.

With that said, there’s no doubt that the price of silver is influenced to some extent by the price of gold. While the two do not move in lockstep, and while there is no necessary ratio between the two prices, it is the case that the factors that drive gold prices higher (inflation, low interest rates, flight to quality) will also drive silver prices higher.

Given silver’s recent outperformance and the tailwinds provided by the surging price of gold, what are the prospects for silver prices in the months ahead?

Right now, my models are telling me that silver is set to have another strong year to follow the surge of 2020. The basis for this can be seen in Chart 1 below.

Chart 1 – Price of silver measured in dollars per ounce – January 2019 – January 2021

In 2020, silver followed the same pattern as gold and stocks. It began the year with a slight gain, crashed during the worst of the pandemic panic, rallied back to new highs and then held those gains while trading in a fairly narrow range. The high for silver was $29.15 per ounce on August 10, 2020, just a few days after gold hit its high for the year.

What are the factors affecting the price of silver going forward?

We should expect geopolitical stress as North Korea, China, Russia and Iran are all expected to test the resolve of the new Biden administration. This does not mean war will result, but it does mean we can expect hot spots to become tenser.

This list of hot spots includes the Taiwan Strait, the South China Sea, the Straits of Hormuz, Ukraine and the Korean peninsula. Our enemies will probe in all directions to see if Biden will stand firm or give ground. This expected tension is bullish for the prices of precious metals.

Interest rates will remain at zero (for short term rates) and 1% or less (for long-term rates) through all of 2021. That’s bullish for silver because silver competes with interest-bearing instruments for investor dollars. Lower interest rates tilt that competition in favor of silver.

The dollar should remain weak due to zero interest rates and weak economic growth. Don’t believe the narrative about a V-shaped recovery and pent-up demand. The economy is locking down again because the pandemic is worse now than it was last spring. Small business is being destroyed, and unemployment is rising. With credit losses emerging, silver becomes a safe-haven.

Finally, the Biden administration and its Secretary of the Treasury, Janet Yellen, have embraced Modern Monetary Theory in all but name. This means a $3 trillion deficit in fiscal 2021 on top of the $4 trillion deficit in fiscal 2020. The Federal Reserve has chipped in with $4 trillion of money printing in the past year. Even if inflation does not emerge immediately, inflationary expectations are on the rise. That’s also bullish for silver.

All of these factors – geopolitics, interest rates, exchange rates and inflation – are set to boost the price of silver in 2021.

Musk tweets, then Bitcoin soars 15%

(zerohedge)

Bitcoin Soars 15% On Elon Musk Tweet

 
FRIDAY, JAN 29, 2021 – 7:30

Shortly after the joke cryptocurrency DogeCoin soared 800% after Elon Musk tweeted the image of a dog which his followers interpreted as an endorsement of the farcical crypto, just around 420am ET, the world’s richest man singlehandedly pushed bitcoin up by 15%, boosting its market cap by around $80 billion, with a single tweet: “In retrospect, it was inevitable”

What is he referring to? The answer was to be found in his twitter bio which was changed to just one word: “#bitcoin”

As a reminder, three weeks ago we predicted that Elon Musk would be instrumental in pushing bitcoin above $100,000 per token, when discussing the strategy of companies to convert existing cash to bitcoin, we said that “countless other publicly-traded firms will now rush to convert all their cash (and more) into bitcoin, while abandoning  existing operations in hopes of becoming bitcoin investment pools and having their shares similarly snapped up by whale investors such as Morgan Stanley. First Trust, JPMorgan, Alliance Bernstein, and all the other institutions which are currently long and adding to their Microstrategy holdings.”

One such company which we are convinced will announce it is converting billions of its existing cash into bitcoin, is none other than Tesla, whose CEO Elon Musk was urged by MSTR CEO Saylor to make a similar move with Tesla’s money. And since Musk, already the world’s richest man thanks to the most aggressive financial engineering on the planet, has never been one to shy away from a challenge, we are absolutely confident that it is only a matter of time before Tesla announces that it has purchased a few billion bitcoin.

Tonight’s tweet by Musk was only the first such step, one which we are certain will be followed by news in the coming days that Tesla has bought several billion in bitcoin, which will also help send TSLA stock above $1,000 in this meme-driven market.

For now, however, we will be content with just the 15% surge, which sent bitcoin from $32,000 to above $37,500 in minutes, and pushed various crypto-linked stocks sharply higher such as Marathon Patent +21%, Bit Digital +23%, Ebang +7.3% and Riot Blockchain +20% in U.S. premarket.

END
the new DogeCoin up 800%

DogeCoin Up 800%; WallStreetBets, Elon Musk Involved

 
THURSDAY, JAN 28, 2021 – 22:57

Many years ago, in December 2013, when bitcoin was still in its very early adoption phase and few had any illusions that it would ever hit $1000 let alone $40,000, two software engineers – Billy Markus and Jackson Palmer – introduced a cryptocurrency that was meant to be a payment system that was “instant, fun, and free from traditional banking fees” but was in reality a joke, and a meme spoof on the concept of bitcoin. In other words, it was a joke, even within the otherwise austere and serious crypto community. It was called DogeCoin, and was represented by a Shiba Inu dog as its logo, literally taken from the “Doge” meme.

We bring it up, because moments ago, Dogecoin surpassed Litecoin in market cap, hitting $8.5 billion after rising 800% today, and hitting an all-time high of $0.082 before settling down to $0.0667, on volume that overtook both bitcoin and ethereum on binance, with some $3.4 billion dogecoins traded.

So what the hell is going on here, and why is this particular crypto soaring when the rest  of the crypto space is quiet?

Is Melvin Capital/Citadel short dogecoin and have the 5.5 million bloodhounds of Wallstreetbets been unleashed yet again?

While it is unclear what sparked the furious buying spree, according to CoinDesk, WSB is indeed involved, and the move was “likely caused by attention from public Reddit trading collective Wall Street Bets combined with a TikTok post about the “dogecoin army” by niche celebrity Carole Baskin from Netflix’s “Tiger King.”

Separately, around 5:47pm ET, Elon Musk tweeted a picture of whippet, which some believe was a to DOGE’s surge, but others note may have unleashed the heaviest part of the buying…

… with some reacting to Musk’s tweet “there’s the $DOGE tweet we’ve been waiting for… In typical @elonmusk fashion.”

Whatever the reason, this is the clearest indication yet of the absolute dash for trash momentum observed across capital markets since the Fed’s take over, with “investors” now openly mocking the asset allocation process and dumping their cash into an “asset” which even its creators admit is worthless.

While DOGE appears to have peaked and is now sliding, expect much more insanity tomorrow and the coming days as this ridiculous bubble is now prompting laughable (literally) assets to generate returns the stock market could only dream of.

END

Now Robinhood restricts crypto currencies after Musk comment

(zerohedge)

Crypto Restricted On Robinhood After Musk Comments Spike Bitcoin

 
FRIDAY, JAN 29, 2021 – 8:58

If the SEC wants to look into anyone for market manipulation, maybe they should leave Reddit alone and start looking once again at their old nemesis Elon Musk. After all, it was Musk’s “GameStonk!” tweet that helped light the fuse for the stock to rocket in after hours trading earlier this week.

Now, Musk’s cheerleading of crypto appears to have caused Robinhood to restrict trading – once again – in an asset “due to extraordinary market conditions”. 

“Due to extraordinary market conditions, we’ve temporarily turned off Instant buying power for crypto,” Robinhood told CNBC on Friday morning. “Customers can still use settled funds to buy crypto. We’ll keep monitoring market conditions and communicating with our customers.”

As we noted earlier this morning, just around 420am ET, the world’s richest man singlehandedly pushed bitcoin up by 15%, boosting its market cap by around $80 billion, with a single tweet: “In retrospect, it was inevitable”.

What is he referring to? The answer was to be found in his Twitter bio,which was changed to just one word: “#bitcoin”

As a reminder, three weeks ago we predicted that Elon Musk would be instrumental in pushing bitcoin above $100,000 per token, when discussing the strategy of companies to convert existing cash to bitcoin, we said that “countless other publicly-traded firms will now rush to convert all their cash (and more) into bitcoin, while abandoning  existing operations in hopes of becoming bitcoin investment pools and having their shares similarly snapped up by whale investors such as Morgan Stanley. First Trust, JPMorgan, Alliance Bernstein, and all the other institutions which are currently long and adding to their Microstrategy holdings.”

Cryptocoin dogecoin, which is based solely on a popular “doge” meme, was also up as much as 800% on Friday. Musk has Tweeted numerous times in support of dogecoin, most recently on Thursday. 

For Robinhood, the interruption comes while the platform continues to try and put out fires from yesterday’s decision to limit trading in high short interest names like GME and AMC.

We noted this morning that Robinhood had reportedly drawn on credit lines and tapped investor cash to the tune of $1 billion – after its CEO took to both Bloomberg and CNBC last night to say that the brokerage was not having liquidity issues. 

end

J JOHNSON’S COMMODITY REPORT

GameStop or GameOn?

Posted January 29th, 2021 at 8:26 AM (CST) by J. Johnson

Great and Wonderful Friday Morning Folks,

It’s First Notice Day for February’s Precious Metals Deliveries with April Gold up $27, at $1,868.20, right close to the London high at $1,869.60 with the low at $1,841.20. Silver is leading the percentages with its trade at $27.48, up $1.558 after hitting a high of $27.72 with the low at $26.15. The Never-Ever-Changing US Dollar is still at 90.47, up 4.3 points and has been in a channel for weeks, even with all this crap going on, with the high at $90.76 and the low at 90.455. Of course, all this happened before Comex opens, the London close, and after the Pakistani Supreme Court set free (acquitted) the men who killed Daniel Pearl. Very odd timing to say the least. Never Forget 9/11!

Gold in Venezuela gained 252.69 Bolivar overnight with the last trade at 18,658.65 with Silver pushing up to 274.457 Bolivar showing a gain of 21.873. Gold under the Argentine Peso now has a 162,823.50 price behind an ounce proving a gain of 2,278.73 Peso’s with Silver gaining 191.88 A- Peso’s with its last trade at 2,395.11. Turkey now has Gold priced at 13,626.09 Lira, proving a 21.91 gain with Silver’s last trade at 200.477 T-Lira, gaining 13.728 since yesterday.

February Silver’s Delivery Demands now shows 1,677 contracts standing for delivery with a Volume of 11 up on the board, inside a tight trading range between $27.395 and $27.37 with the last trade at the high, a gain of $1.486 so far today proving an increase of 71 delivery contracts over yesterday’s post. The proof that the system is being challenged again is inside the numbers behind the price as 9,593 paper contracts had to be added in order to keep Silver from exploding even higher bringing the Overall Open Interest to 177,527 overnighters willing to attempt the GameStop!

February Gold’s Delivery Demands are now showing 33,327 fully paid for contracts waiting for receipts, a reduction of 12,449 contracts over yesterday’s numbers, with a Volume of 599 already up on the board with a trading range between $1,868.80 and $1,837.70 with the last swap at the high, a gain of $30.90 before Comex starts. February is a Primary Delivery Month for Gold; this might matter in the weeks ahead. Gold’s Overall Open Interest gained 1,939 contracts giving us an early morning total of 536,591 shorts (as the reductions in delivery are shadowed) to trade against the physicals, until that last bar leaves.

Trading app Robinhood has been accused of automatically selling users’ shares after banning GameStop stock – reports. If this is true, imo, it’s the sign post just ahead of a very bumpy road in getting one’s money back intact. Last night it was said that Robinhood was looking for loans (aka credit) from JPMorgan Chase & Co. and Goldman Sachs Group Inc. Now, at least to start the day off, Robinhood has lifted the ban, and GME continues to move upward, for now.

Wa llStreetBets was the group that pushed against the short hedge funds that were trading against their favorite store – Gamestop. Before Robinhood stopped their game, these same gamers were talking about taking their profits off GME and buying into SLV. Whatever the real story is, it appears that GME’s removal/stoppage was within a half hour time when Silver (chart is central timed) reached its peak, during yesterday’s trades.

No one knows for sure, but the timing sure helps the thesis and so does the data behind the price, as SLV’s Volume kinda moved higher yesterday.

What a time to be on the sidelines, with precious metals in hand, while the entire Democratically control government, decides who will survive, and who can steal from the poor. WallStreetBets was also telling each other to buy physicals too. GameOn! Have a great weekend, have a smile for all and as always …

Stay Strong!

Jeremiah Johnson
JeremiahJohnson @cableone.net

END

Lawrie Williams on Gamestop and silver:

LAWRIE WILLIAMS: Could Social Media Drive Silver to New Heights à la GameStop

Few investors will be unaware of the strange investment phenomenon on Wall Street which has seen apparent ‘no-hope’ stocks like GameStop soar in value as a new breed of investor has used it to target short selling hedge funds. Short selling is at best a controversial activity, so for a perhaps more altruistic type of investor the very act of directly tackling the short selling hedge funds, and at the same time using the funds’ woes to make sometimes substantial profits, is a very positive means to what they would probably see as a justifiable end.

What has happened with GameStop, and a number of other short-sold stocks, is that a flood of investment from social media-inspired stay-at-home day traders has driven up the stock prices, thus causing the short sellers to buy the stocks as a stop-loss necessity. This has been a self-perpetuating phenomenon with resultant stock shortages driving prices ever higher making those which still hold short positions vulnerable to ever greater potential losses. Indeed there are reports that some funds might be forced out of business as a result.

This saga has been exacerbated by the low interest rate environment, making money cheap to borrow, plus the rise in free, or low cost, internet trading platforms like robinhood.com. This has allbrought a plethora of new non- traditional equities investors into play who are far more open to new investment ideas than the much more long- established investment community. This new breed of investor is much more attuned to investment advice promulgated by social media, however misleading some of this advice might seem to be to the traditionalist investor and day trader.

It’s taken a little time, and some burnt fingers, for the professional investment community to start to fight back – at least as far as the equity markets are concerned. But it now begs the question of whether this kind of activity be transferred to a completely different market – like precious metals for example – and if so, particularly to silver given its relatively low price and the huge short positions held by traders and bankers. Should the kind of buying activity seen in the GameStop trades find its way into the market for silver we could see exactly the kinds of price surges seen in the GameStop equity price coming into play. Indeed it may already have begun to happen.

In such a case, there could even be a two-pronged approach with the day traders piling into easily tradable counters like the SLV silver-based ETF, while the true silver metal bulls might simultaneously invest heavily into silver bullion. Both would tie up silver metal in an already tight supply/demand balance. Thus the kind of impetus this could give to the relatively thinly-traded silver market could be large indeed. The same could also apply to gold where there are also big short positions held, although it could also be a case of the silver tail wagging the gold dog generating some increased impetus in investment interest in what is generally seen as the primary precious metal!

But be warned. We still think there will be a quite severe crash in equities – perhaps brought on in part by the obvious bubble in many over-hyped equities of which GameStop and similar stocks driven up by the phenomenon noted above could provide the inflection point. There are a whole batch of stocks – led by some of the more popular tech equities – where profits and prospective growth cannot anywhere near justify their current high prices. They are where they are seemingly driven there by hype alone. Eventually reason will win out and they will come crashing down.

Silver and gold may, or may not, benefit in the short term in any such crash. They do provide a degree of safety but, as in the 2008 stock meltdown some big holders will have to sell good assets along with bad to preserve liquidity. But if this happens gold, in particular, will likely bounce back much more quickly than equities and perhaps rise to new highs as it did in 2009 and the following three years. So, along with cash, gold and silver in particular may well provide easily the best wealth protection.

But, as noted above there could also be some spectacular prior gains for both metals if some of the current money going into shorted stocks transfers into the precious metals sector – particularly if the investment establishment manages to bring some of the recently-seen stock market mayhem under control. The establishment may well win the current battle in the equities markets but it could well be silver and gold which win the overall investment war.

29 Jan 2021

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

i) Chinese yuan vs USA dollar/CLOSED UP AT 6.4310 /

//OFFSHORE YUAN:  6.4501   /shanghai bourse CLOSED DOWN 22.11 PTS OR .63%

HANG SANG CLOSED DOWN 267.06 PTS OR .94%

2. Nikkei closed DOWN 534.03 POINTS OR 1.89%

3. Europe stocks OPENED ALL RED/

USA dollar index UP TO 90.54/Euro RISES TO 1.2133

3b Japan 10 year bond yield: RISES TO. +.06/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 104.69/ 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:: 52.56 and Brent: 55.41

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.50%/Italian 10 yr bond yield UP to 0.65% /SPAIN 10 YR BOND YIELD UP TO 0.10%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.25: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 0.68

3k Gold at $1867.15 silver at: 27.47   7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble UP 23/100 in roubles/dollar) 75.84

3m oil into the 52 dollar handle for WTI and 55 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 104.69 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 .8885 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0792 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.50%

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 1.07% early this morning. Thirty year rate at 1.834%

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

6.  TURKISH LIRA:  UP  TO 7.32..

Futures Slide Amid Fears WallStreetBets Will Again Steamroll Greenwich

 
FRIDAY, JAN 29, 2021 – 8:23

Late last night when futures were sliding by 1% following Robinhood’s flipflop and itsdecision to allow trading of the most-shorted stocks after all which sent names such as GME, AMC and others soaring, and which now trade as a mirror image to the most popular hedge fund stocks…

… we joked that futures were sliding amid renewed fears that the short squeeze army was coming to streamroll the hedge fund capital of Greenwich in the latest chapter of the Wall Street vs Wall Street Bets battle.

And while we were joking, this quickly became the dominant narrative overnight, with Reuters reporting this morning that “Wall Street set for weak open on hedge fund-retail battle“…

… as S&P futures and European stocks fell “as a Wall Street battle between hedge funds and retail investors” reversed yesterday’s furious rally, while risk appetite was also cooled by a row in Europe over COVID-19 vaccine supply.

And while S&P 500 futures recouped some ground in European trade after dropping as much as 1%, were down 0.5% as of 730am. Nasdaq 100 futures fell 0.7%. World stocks fell 0.4% towards three-week lows set in the previous session, and were heading for a weekly fall of more than 2%.

The stand-off between the daytrading hordes and short hedge funds comes after central bank and government stimulus have injected trillions in stimulus into stock markets creating the biggest bubble ever, encouraging involvement by retail investors, and making stocks extremely susceptible to a bubble burst.

“There’s fear in terms of the volatility,” said Derek Halpenny, head of research for global markets at MUFG. “Specific trades in pockets of the market can spread into the broader market.”

After shares in GameStop, AMC Entertainment and BlackBerry plunged more than 40% on Thursday after several online platforms  imposed buying halts, they rebounded even more on Friday as Robinhood and Interactive Brokers eased the restrictions on Friday.  GameStop shares nearly doubled and AMC Entertainment was up 55% in U.S. pre-market trade.

“Any hedge fund will be carefully looking at all their shorts after this week and regulators will look very carefully at collective retail trading,” Deutsche Bank analysts said.

In Europe, the Stoxx Europe 600 index declined, though it pared losses after data from three of the euro area’s largest economies suggested the region can avoid a deeper recession, while still facing headwinds from extended coronavirus lockdowns. Curiously, unlike the US, European shorts actually dropped perhaps as news that the short-squeeze army had been unleashed again was slow to cross the Atlantic. Swedish retailer Hennes & Mauritz AB fell after warning it’s still in “crisis mode,” with 40% of stores shut. British bootmaker Dr. Martens Plc jumped as much as 26% as it began to trade in London.

Delays in COVID-19 vaccine production have snowballed into a spat between Britain, the European Union and drugmakers over how best to direct limited supplies. AstraZeneca offered eight million more doses of its COVID-19 vaccine to the European Union, after it unexpectedly announced cuts in supplies last week. But the bloc said that was far short of what was originally promised, an EU official told Reuters on Friday.

Asian stocks fell for a fourth straight session on the last trading day of January, on track for the worst weekly loss since March. Chipmakers and suppliers were the largest drags on the regional benchmark, with Samsung Electronics falling 2%, TSMC down 1.7% and Tokyo Electron slumping almost 5%. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1%, on course for a weekly loss of 4.4%. Japan’s Nikkei fell 1.9%, recording its first weekly loss of the year. Better-than-expected earnings in some Asian semiconductor-related companies failed to boost sentiment. Korean chipmaker SK Hynix’s fourth-quarter earnings more than tripled and beat estimates, and in Japan, Advantest’s operating income also exceeded expectations as the testing device maker raised its forecast. Chinese stocks slid as a money-market rate in China surged to the highest in almost six years, reflecting tight liquidity in the financial system. Vietnam shares rebounded from its worst day since 2001 while Philippine stocks fell most since August.

The PBOC injected 100 billion yuan into the financial system on Friday, following a week of reducing liquidity, which had sparked concerns the central bank was in fact tightening monetary policy. That, however, proved insufficient to lower overnight repo rates, which have soared to a 5 year high.

In FX, the Bloomberg Dollar Spot Index advanced, and was set for its best week since October. The greenback climbed versus most peers; the Norwegian krone reversed a loss after Norges Bank announced a higher rate of krone buying in February.  The euro also inched higher after reversing an earlier loss, while German bonds declined, with the yield curve steepening after ECB policymaker Gabriel Makhlouf said an interest-rate cut isn’t warranted right now. Aussie heading for its worst week since October, pushed down by drops in stock futures and oil; sales versus the kiwi over vaccine concerns also weighed on the currency. The yen fell to its lowest in nearly two months on flow- driven trades.

In crypto, Bitcoin soared above $37,000, after Elon Musk mentioned the cryptocurrency in his bio page on Twitter

In rates, Treasuries were on the back-foot into early U.S. session, following wider losses across core European bonds as bets for monetary easing fade following comments by ECB’s Gabriel Makhlouf. Yields were higher by up to 3bp across long-end of the curve, steepening 2s10s, 5s30s by 2bp-3bp; 10-year yields around 1.07% — back to little changed on the week after breaching 1% Wedensday and Thursday — with bunds, gilts trading cheaper by 0.5bp and 1bp in the sector. Bunds underperform after ECB’s Gabriel Makhlouf says that an interest-rate cut isn’t warranted right now.

Market Snapshot

  • S&P 500 futures down 0.8% to 3,750.25
  • MXAP down 1.4% to 204.13
  • MXAPJ down 1.1% to 686.56
  • Nikkei down 1.9% to 27,663.39
  • Topix down 1.6% to 1,808.78
  • Hang Seng Index down 0.9% to 28,283.71
  • Shanghai Composite down 0.6% to 3,483.07
  • Sensex down 1.1% to 46,337.49
  • Australia S&P/ASX 200 down 0.6% to 6,607.36
  • Kospi down 3.0% to 2,976.21
  • Brent futures up 0.5% to $55.80/bbl
  • Gold spot up 0.5% to $1,851.88
  • U.S. Dollar Index up 0.3% to 90.71
  • German 10Y yield rose 5.6 bps to 0.509%
  • Euro little changed at $1.2115
  • Italian 10Y yield fell 3.5 bps to -0.525%
  • Spanish 10Y yield rose 21.9 bps to 0.089%

Top Overnight News from Bloomberg

  • Cargill Inc and Deutsche Bank AG are among a group of major foreign companies under probe in Taiwan for speculating on the surging local currency last year, hindering the central bank’s efforts to rein in a rampant foreign-exchange market
  • Three of the euro area’s four largest economies rounded off the pandemic year suggesting the region can avoid a deeper recession, while still facing headwinds from extended coronavirus lockdowns. GDP in Spain unexpectedly increased 0.4%, defying expectations for a 1.4% drop. In another surprise, Germany also recorded growth, while output in France fell less-than-forecast after consumer spending rebounded sharply in December
  • Italy’s former premier Matteo Renzi, who triggered the collapse of Italy’s government, said he wants a new cabinet soon to avoid new elections
  • Beijing is so fearful of speculative manias that authorities are creating the biggest liquidity crunch in more than five years, roiling Chinese stocks and bonds and freezing a key funding market

A quick look at global markets courtesy of Newsquawk

Asian equity markets steadily deteriorated as the initial emboldenment from the rebound on Wall St, where the major indices atoned for their recent weakest performance in 3 months, gradually faded on month-end and with overnight newsflow dominated by earnings results and data releases. ASX 200 (+0.6%) failed to sustain early gains and finished negative despite better-than-expected private sector credit data with the downturn led by underperformance in the financials and mining sectors, while Nikkei 225 (-1.9%) was lifted at the open amid a weaker currency but then reversed course as participants also digested a heavy slate of earnings and economic data including mixed Tokyo inflation numbers and a larger than anticipated decline for Industrial Production. Hang Seng (-0.9%) and Shanghai Comp. (-0.6%) were initially kept afloat after the PBoC injected liquidity into the market, although the gains were later pared as today’s CNY 98bln net injection failed to allay liquidity and policy tightening concerns which saw money market rates continue to creep higher to push the overnight repo rate to its highest since 2015. Finally, 10yr JGBs were lower following similar pressure in T-notes and after the BoJ Summary of Opinions pointed to the likelihood of a more flexible approach to yield curve control in the March review such as permitting the 10yr yield to trade at a wider range around the 0% target which would effectively allow yields to increase more before the central bank steps in.

Top Asian News

  • Hong Kong’s Economy Contracts Record 6.1% in Pandemic Year
  • GameStop, AMC Trades to Resume at Chinese Online Brokers
  • Taiwan’s GDP Growth Outpaces China’s for First Time in 30 Years
  • Bank of Japan Paves Way to Buy Less Shorter-Term Debt Next Month

European equities see losses across the board (Euro Stoxx 50 -0.7%), but have clambered off worst levels after the downbeat APAC reverberated into Europe. US equity futures meanwhile remain pressured with more pronounced losses seen in the tech-heavy NQ (-1.6%) vs the value-driven RTY (-0.4%) – with month-end flows also to factor in amidst the heat the earnings season. Macro developments for stocks have been scarce during the final European session thus far as traders look ahead to the US open, with the Reddit hype likely to steal the limelight again as trading platforms are lifting trade bans on Gamestop (+107% pre-market), AMC (+62% pre-market), albeit further platform issues will be watched for given the sheer volumes expected. On this note, US Senate panel is to hold a hearing on the current state of the stock market in wake of the GameStop situation, while reports also noted that the New York AG office is reviewing Robinhood app activity. Back to Europe, sectors are mostly lower with no real risk bias telegraphed, whilst the breakdown sees Telecoms and Autos outpacing whilst Healthcare, and Finance resides on the other end of the spectrum. The gains in the Telecoms sector are led by heavyweights Ericsson (+9%) post-earnings, whilst Nokia (+4.9%) cheers the trading lift ban imposed by various retail platforms. In terms of individual movers, AstraZeneca (-1.1%) is weighed on by threats of legal action by the EU regarding the vaccine dispute. Daimler (+1%) underpins the Auto sector after reporting results significantly above guidance and market expectations. Other earnings related movers include BBVA (-2.6%), Caixabank (+2.5%) and JC Decaux (+2.8%).

Top European News

  • U.K. Slammed by Experts Over ‘Neo-Victorian’ Food Poverty
  • EU Raises Pressure on AstraZeneca Over Covid Vaccine Shortage
  • Daimler, BMW and VW Get Little Credit for All the Cash Piling In
  • Ericsson Holds On to 2022 Goals Even as Investors Want More

In FX, little sign of salvation or even remote support for the Yen via decent 1.2 bn option expiry interest between 104.40-45 in Usd/Jpy as the pair extends its breach of the 100 DMA through 104.50 to circa 104.94 and well beyond well 104.75, which was the higher from December 2nd 2020. Clearly, 105.00 beckons next before a virtual double bottom from mid-November last year that might offer a bit more in the way of respite (105.14 on November 16 and 105.15 on the preceding Friday). Meanwhile, upward momentum has also been building in Eur/Jpy above 126.50 to just over 127.00 amidst month end tailwinds from rebalancing models flagging a moderate Dollar sell against most majors, bar the Yen, and at least one bank pointing to the obvious attraction of killing 2 birds that the cross provides. Moreover, the Yen has hardly been helped by weaker than forecast Japanese IP or mixed Tokyo CPI data any more than the latest BoJ Summary of Opinions that highlighted rising deflation risks as reason for the Bank to enhance its easing stance.

  • USD – Aside from the obvious assistance of Yen depreciation, the Buck is managing to stave off aforementioned sales for portfolio purposes due to safe-haven demand as broad risk sentiment sours again. However, the DXY remains capped below recent recovery highs close to 91.000 within a 90.780-520 range ahead of a final batch of US data to round off January and the first post-FOMC meeting Fed speakers in the form of Kaplan and Daly to glean extract any further policy insight, while also keeping an eye on the Euro as the biggest component of the index following another ECB ‘sources’ piece.
  • EUR – Surprisingly strong German jobs data, better than feared GDP and another Eurozone M3 beat did not really register, but the Euro has reacted to latest reports quoting ECB sources pushing back on the notion of a rate cut, and dumbing down on the level of concern over the single currency’s strength – see 10.24GMT post on the headline feed for more details. Eur/Usd is now forming a firmer base on the 1.2100 handle, and eyeing 1.2150 ahead of a series of descending peaks below 1.2200 that also align with 21 and 50 DMA resistance at 1.2170 and 1.2189 respectively.
  • NZD/CAD/CHF – All narrowly mixed and rangebound vs their US counterpart, with the Kiwi hovering between 0.7150-84 having failed to retain grasp of 0.7200 on several occasions after getting within a whisker of 0.7250 at one stage, while the Loonie is still holding above 1.2900 following its sharp post-BoC retreat and now seeking some independent impetus from Canadian monthly GDP, albeit rather stale now for November. Elsewhere, the Franc is treading water above 0.8900 and 1.0800 vs the Euro in advance of Monday’s update on Swiss bank sight deposit balances.

In commodities, WTI and Brent front month futures see a choppy session thus far as the contracts nursed losses in early European hours – with the former now around USD 52.50/bbl (vs low 51.96/bbl) and the latter just under USD 55.50/bbl (vs low 54.92/bbl). The two benchmarks see somewhat of a dichotomy, with the US contract outperforming its Brent counterpart, with reports also suggested that the US oil industry is looking to forge a partnership with corn growers and biofuel to push against Biden’s green policy. Furthermore, the week saw substantial surprise draws in both Private Inventories and DoEs which further supports a bullish backdrop. Aside from that, the macro narrative remains the balance between the COVID-impacted demand and OPEC-supported supply. Elsewhere, spot gold and sport silver are supported despite the backdrop for a firmer Dollar, with some potential reflationary play, but one of the main drivers cited by analysts includes the Reddit crowd’s silver influence causing sympathy plays across precious metals. Spot gold resides around USD 1850/oz with its 50 DMA at 1856 and yesterday’s low around USD 1833/oz, whilst spots silver probes USD 27/oz. In terms of base metals, LME copper prices track the broader stock markets lower, albeit trades off lows – with some supply side reports suggested that Peru will also permit mining during COVID-related lockdowns. Finally, China’s steel rebar futures fell 1.4% amid surging inventories.

US Event Calendar

  • 8:30am: Dec. Personal Spending, est. -0.4%, prior -0.4%
  • 8:30am: Dec. Personal Income, est. 0.1%, prior -1.1%
  • 8:30am: Dec. PCE Core Deflator YoY, est. 1.3%, prior 1.4%; PCE Core Deflator MoM, est. 0.1%, prior 0%
  • 9:45am: Jan. MNI Chicago PMI, est. 58.5, prior 59.5, revised 58.7
  • 10am: Dec. Pending Home Sales YoY, est. 20.2%, prior 16.0%, Pending Home Sales (MoM), est. -0.5%, prior -2.6%
  • 10am: Jan. U. of Mich. Expectations, est. 74.1, prior 73.8; Mich. Sentiment, est. 79.3, prior 79.2; Current Conditions, est. 87.7, prior 87.7;

DB’s Jim Reid concludes the overnight wrap

After this tumultuous week, risk assets recovered yesterday from their major declines on Wednesday, with the S&P 500 advancing +0.98%, as it came off its biggest fall since October. Markets retreated a fair bit into the close though with the S&P up as much as +2.1% intraday. On top of this futures in Asia have given up all these gains (-1.28%) with the Nikkei (-1.70%), Hang Seng (-0.48%), Shanghai Comp (-0.28%) and Kospi (-3.31%) also all down. Sentiment in the Asian session is also being dragged down by a cash squeeze in China as the cost of overnight borrowing in the country rose 28 bps to 3.3302% today, the highest in almost six years, as the country’s lenders sought out cash for end-of-month regulatory checks and tax payments. The rise in the rate came even as the PBOC added $15bn of short term cash to the banking system, less than expected. Futures on the Nasdaq are down -1.47%. In keeping with the risk off the US dollar index is up +0.30%.

In terms of the latest on the Reddit-fuelled rally for certain companies, there were some initial signs that the reversal might be beginning yesterday, as GameStop’s share price ended the session down -44.3%, having briefly become the biggest stock on the Russell 2000 with a market cap of $35.7bn at the intra-day peak. Indeed over the last 24 hours the stock price ranged from 513 in pre-market trading to 112 at the lows before closing at 193. In after hours trading it was back up +61.2% to $312.

A big part of the collapse was after brokerages such as Robinhood and Interactive Brokers heavily restricted trading in several of these r/wallstreetbets names, with Robinhood also increasing margin requirements for certain securities. It didn’t go down well in the forum and many lawmakers from both sides of the aisle expressed concerns at these restrictions for retail investors. I can’t help but think this week will have long term consequences. It’s shaken up the system and there will be some permanent changes to the ways investors, especially hedge funds and retail, act. Surely any hedge fund will be carefully looking at all their shorts after this week and regulators will look very carefully at collective retail trading. After the close Robinhood’s CEO Tenev said they restricted buying of certain stocks due to its financial position, saying “it is not negotiable for us to comply with our financial requirements and our clearinghouse deposits.” This came as Bloomberg said that the company has to drawn down credit lines with banks.

Overnight, Robinhood has said that its clients would be able to make limited purchases of some of the companies that it blocked, without providing any further details. This news helped push reddit favourites up again in afterhours trade with GameStop (+61.2%), AMC (+31%), Blackberry (+12.55%), Koss Corp. (+62%) and Express Inc. (+32%) all up after mostly slumping yesterday.

Over the past two days the crowd seemed to be moving on to other more widely held names. American Airlines saw their shares go up +31.3% in early trading yesterday before it was added to the Robinhood list of untradeable stocks and the stock had to settle for a +9.30% gain on the day – still its best since early November when the Covid-19 vaccines were approved for use in the US.

There were some other beneficiaries as the day traders moved on to other assets, with silver surging +4.89% as this was picked up as a potential asset to target by the Reddit crowd. They also picked out First Majestic Silver Corp as a short-squeeze candidate and the company’s shares rose +49% in early trading before the price action settled at +20.2% on the day. Fascinating that we’re moving into other asset classes.

Moving on, some good news on the vaccine front came through just after the US close. Novavax’s Covid-19 vaccine was found to be effective in large trials in the UK and South Africa, though it was more effective in the former. It was 89.3% effective in preventing symptomatic Covid-19 in the UK, following a final-stage study with more than 15,000 residents. In South Africa, a trial of over 4,400 people showed that the vaccine was 60% effective in those who were HIV negative and 49.4% effective overall. Novavax rose 20% in after-market trading following the news and is a big deal for the US and UK, with the former having a deal for 100mn doses and the latter having an order for 60mn doses. It won’t come on stream for several weeks though. The South African strain continues to be a problematic mutation and although these numbers prove it can be battled by current vaccines, countries are still going to be more careful post vaccinating the vulnerable than they would have been without it, especially on their international borders. Indeed in a bit concerning news on the virus, Reuters reported overnight that researchers in Brazil have said that they found two patients infected with different strains of the new coronavirus at the same time. This they believe raises concerns that coexistence of different strains in the same person’s body can speed up mutations of the virus. However, the findings are not published in a scientific journal or are peer reviewed.

Haven assets suffered from the risk-on moves yesterday, and core sovereign bonds lost ground on both sides of the Atlantic. Yields on 10yr US Treasuries were up +2.9bps to 1.045% (fairly stable overnight), and southern European debt outperformed in Europe, with the spreads of 10yr Italian yields over bunds narrowing -2.6bps to a one-week low. Bunds themselves underperformed, seeing a +0.7bps rise in yields, while those on OATs (+0.3bps) and gilts (+1.8bps) similarly moved higher. Over in foreign exchange markets, the dollar index shed -0.21%, and the Japanese Yen was the worst-performing G10 currency, weakening -0.12% against the US dollar.

Back to vaccines, the main other news yesterday was that Germany’s vaccine commission recommended that the AstraZeneca vaccine was only used for those aged 18-64, and not in the 65+ group, marking a contrast from the UK where it was approved for use in all adults. They didn’t feel they had enough data to approve for the elderly. Given its use in the UK however, where over 10% of the population has already been diagnosed, we should find out pretty quickly how effective it is on the most elderly age groups. We should now hear from the EMA regulator today as to whether the Oxford/AZN vaccine has been approved in the EU at large and it will be interesting if they follow the German’s regulators approach to over 65s. If they do the continent will likely be further delayed in their vaccine roll out and it will make this week’s public battle with the company a little odder.

Meanwhile Reuters reported that Paris and two other regions in France would stop giving out first doses due to limited supplies, and so as to get the second dose to those already vaccinated. The country’s government continues to weigh implementing lockdowns again in the face of the new variants, though no resolution was delivered yesterday. Separately in the US, state health officials in South Carolina said that two cases of the South African variant had been diagnosed, which is the first time that this variant has been confirmed in the country. Elsewhere restrictions continue to be rolled back across the US, with Ohio yesterday relaxing its state-wide curfew. The governor promised to revisit other restrictions in two weeks dependent on the path of infections. Many of the largest US states have now eased restrictions in the past two weeks, citing lower case counts and less burdened healthcare systems.

In terms of yesterday’s data, sentiment was supported by stronger-than-expected data on weekly jobless claims from the US, which fell to 847k (vs. 875k expected) in the week through January 23. Furthermore, the continuing claims for the week through January 16 fell to their lowest level since the pandemic began, at 4.771m, with the insured unemployment rate also at a post-pandemic low of 3.4%. Otherwise, US GDP in Q4 grew at an annualised rate of +4.0% (vs. +4.2% expected), meaning that GDP for the full year in 2020 contracted by -3.5%. That marks the worst annual performance for the US economy since 1946, and is bigger than the -2.5% contraction in 2009. Elsewhere, German inflation surged to +1.6% in January on the EU-harmonised measure, which is the highest rate since February 2020. That was supported by one-off factors such as the end of a temporary reduction in value added tax and a higher minimum wage.

To the day ahead now, and data releases include the preliminary Q4 GDP readings from Germany and France, as well as German unemployment data for January and the Euro Area’s M3 money supply for December. Meanwhile in the US, there’s personal income and personal spending for December, the final January reading of the University of Michigan’s consumer sentiment index, pending home sales for December and the January MNI Chicago PMI. Central bank speakers include the Fed’s Kaplan and Daly, and earnings releases include Eli Lilly, Chevron, Charter Communications, Honeywell and Caterpillar.

3A/ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 22.11 PTS OR .63%   //Hang Sang CLOSED DOWN 267.06 PTS OR .94%    /The Nikkei closed DOWN 534.03  POINTS OR 1.89%//Australia’s all ordinaires CLOSED DOWN 0.68%

/Chinese yuan (ONSHORE) closed UP AT 6.4310 /Oil UP TO 52.56 dollars per barrel for WTI and 55.41 for Brent. Stocks in Europe OPENED ALL RED//  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4310. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4501 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

b) REPORT ON JAPAN

3 C CHINA

CHINA/USA//TAIWAN

this has now been revealed that they were close to war as Chinese bombers carried out simulated attack on the USS Roosevelt near Taiwan.

(zerohedge)

Chinese Bombers Carried Out “Simulated Attack” On USS Roosevelt Carrier Near Taiwan

 
FRIDAY, JAN 29, 2021 – 14:12

Tensions spiked in the South China Sea and near Taiwan over this past weekend and have continued boiling since, after Chinese PLA aircraft made repeat in incursions into Taiwan’s claimed airspace. In response Taiwan’s Air Force scrambled jets in its own ‘show of strength’ deterrence message, and with the US aircraft carrier USS Roosevelt in the region, China’s Defense Ministry subsequently warned Taipei on Thursday that “independence means war”.

A new report in FT that broke overnight now reveals that the Sunday incident was even more alarming for the prospect of direct conflict than previously thought. FT cites unnamed intelligence sources to report that “Chinese military aircraft simulated missile attacks on a nearby US aircraft carrier during an incursion into Taiwan’s air defense zone three days after Joe Biden’s inauguration, according to intelligence from the US and its allies.”

File image of Taiwan Air Force F-16 monitoring a Chinese H-6 bomber, via Taiwan’s Defense Ministry

We earlier noted that on Sunday Taiwan reported a huge PLA aerial incursion for the second straight day, on Sunday counting well over a dozen fighter jets that included six J-10 fighters, four J-16s, two SU-30s, a Y-8 reconnaissance aircraft and two Y-8 anti-submarine aircraft. They were apparently escorting Chinese H-6 long range bombers. “Airborne alert sorties had been tasked, radio warnings issued and air defense missile systems deployed to monitor the activity,” Taiwan’s defense ministry had said.

The FT report adds more previously unknown context to the incident:

People familiar with intelligence collected by the US and its allies said the bombers and some of the fighter aircraft involved were conducting an exercise that used a group of US Navy vessels led by the carrier USS Theodore Roosevelt in the same area as a simulated target.

Pilots of H-6 bombers could be heard in cockpit conversations confirming orders for the simulated targeting and release of anti-ship missiles against the carrier, the people said.

As the US carrier group observed the inbound Chinese bombers from below, there’s little doubt that “fingers were on the trigger” in preparation to respond if all hell broke loose. 

An analyst at Taiwan’s Institute for National Defense and Security Research cited in the new FT report, Su Tzu-yun, underscored the PLA aircraft are precisely capable of delivering devastating anti-ship missiles.

“The Su-30 [fighters] can carry Kh-31 anti-ship missiles, and the H-6 bombers and J-16 fighters can both carry YJ anti-ship missiles,” said the analyst.

“All three aircraft are clearly a display of threat against surface ships,” he added.

 

Via The Guardian

There’s also little doubt that President Biden has been briefed, and the incident will prove an immense hurdle when it comes to the administration’s expressed hopes of improving relations with China following Trump’s long-running pressure campaign against Beijing.

This is quite possibly the biggest single act of escalation to date, despite multiple “close calls” and encounters over the past two years in the South China Sea.

4/EUROPEAN AFFAIRS

GERMANY/COMMERZBANK

Commerzbank fires one third of its bankers

(zerohedge)

Commerzbank Fires One-Third Of German Bankers

 
FRIDAY, JAN 29, 2021 – 5:45

Even after Commerzbank’s hoped-for merger with Deutsche Bank crumbled in part due to union leaders’ objection to the possibility that too many of their members’ would be made “redundant”, it looks like the German retail lender is moving ahead with a massive wave of job cuts.

While it’s not quite as large as Deutsche Bank’s massive round of layoffs, announced a couple of years back as part of Christian Sewing’s massive forced restructuring (one of the biggest rounds of bloodletting since Lehman), the cuts – announced by Commerzbank chief Manfred Knof – will eliminate 1 in 3 jobs at Commerzbank Germany.

The FT described the cuts as a last-ditch effort to turn around the ailing lender, whose shares have dropped by 90% over the past decade. Last month, Commerzbank said it would book a €61MM ($74) charge-off related to restructuring costs in 2020 tied to the elimination of 2.9K.

On Thursday, Commerzbank declined to comment on whether those jobs were included in another job cut target, or whether they represent new, previously unannounced cuts. The Frankfurt-based lender confirmed the numbers in a statement to regulators published after Handelsblatt, the German newspaper, originally broke the story.

Speaking on the details of the plan, none spokesperson for the bank said “no decisions have been taken on any item of the strategy program,” said Commerzbank. The management board submitted a draft of the plans to the supervisory board, which will discuss it on Feb. 3.

Details will be unveiled at the bank’s annual meeting with the press next month.

Interestingly, Knof joined Commerzbank earlier this month after departing Deutsche Bank after Martin Zielke, the former CEO of Commerzbank, and Stefan Schmittmann, the bank’s former chairman, stepped down last year as Cerberus, the US private equity firm, continues to do battle with Commerzbank and Deutsche Bank as the firm continues to push for the creation of a new German “national champion.”

During the summer, Cerberus, a frequent critic of Commerzbank and DB, insisted that “swift and decisive action” was required to stop a “downward spiral” caused by bloated costs, low profits and “managerial inaction.” Cerberus also accused Commersbank of underperforming its European peers.

Now, the question is, which one of those peers might make a good partner (or buyer) for Commerzbank?

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

RUSSIA/SPUTNIK VACCINE/CORONAVIRUS UPDATE
 
 
Russia has orchestrated a mass vaccination of its Sputnik model. Putin declares that the virus is slowly receding. The jury is still out on the effectiveness of its vaccine.
 
 
 
(zerohedge)
 

Putin Declares Virus “Slowly Receding” In Russia Amid Sputnik V Mass Vaccination Campaign

 
THURSDAY, JAN 28, 2021 – 22:30

Russian President Vladimir Putin told a meeting of his cabinet on Thursday that the swift actions of national health officials have caused the pandemic to slowly subside throughout the country, also given Russia was the first the roll out with a large-scale vaccination program of its population.

Generally, [these actions] yield positive results,” Putin declared, according to TASS. “The pandemic is gradually receding.”

While stressing it remains “too early to relax” he nonetheless emphasized that the number of recoveries “has been steadily above the infection numbers lately.” Putin added, “As of lethality, the situation is generally satisfactory if you can speak about it in such terms. Nevertheless, this is the case in comparison with other countries.”

 

Via Zuma Press

He further touted at a moment that Hungary has controversially broken ranks with the EU and approved and bought the Russian Sputnik V vaccine that, “We have around 12 infections per every 100,000 people,” which is “four times as low as in European countries, many European countries.”

“We launched a mass vaccination campaign on January 18, we have big plans in this regard,” the president noted. “[Trade and Industry Minister Denis] Manturov reported to me that vaccine production was ahead of schedule,” he added

Yet he still estimated that 68 million Russians needed to be vaccinated against the coronavirus. Late summer and into the fall Russia faced fierce criticism over what Western officials called a “rush” to approve an unproven vaccine.

Indeed Russia was the first out globally, but time will tell of the effectiveness of the efforts. In early December ‘frontline’ workers that included teachers, doctors, social workers were the first round in the mass vaccination efforts, with the middle of this month seeing the campaign reaching the broader population.

Russia now has the fifth highest number of cases worldwide at just over 3.7 million infections, which is barely under the UK. For the past months Russia was among the top four most infected countries globally. Critics have attacked the Kremlin’s official claims of having already vaccinated millions people with Sputnik V, with many suggesting the true number is in reality in the hundreds of thousands.

Moscow further says it’s received orders for over a billion doses to be administered abroad at a moment the WHO is still reviewing it, as Reuters reports: “Asked about WHO’s scrutiny of Russia’s Sputnik V vaccine, Kluge said he had spoken with Moscow’s ambassador on Wednesday and that he could confirm that data needed by WHO scientists to review the shot was en route to Geneva where the WHO is based.”

“The Russian vaccine is being distributed in Europe including EU member state Hungary as well as elsewhere in the world, even though the European Medicines Agency is not currently reviewing it for approval,” the report noted.

END

IRAN/USA

This is interesting:  Blinken states that Iran must first comply with the nuclear deal before the USA signs on

(DeCamp/AntiWar.com)

Blinken Says Iran Must Comply With Nuclear Deal Before The US Does

 
THURSDAY, JAN 28, 2021 – 23:30

Authored by Dave DeCamp via AntiWar.com,

In a sign that the US is a long way from lifting sanctions on Iran, Secretary of State Antony Blinken said the US will not return to the nuclear deal until Iran comes back into compliance.

“President Biden has been very clear in saying that if Iran comes back into full compliance with its obligations under the JCPOA, the United States would do the same thing,” Blinken said at a press conference on Wednesday.

 

Biden with newly confirmed Secretary of State Anthony Blinken

But we are a long ways from that point. Iran is out of compliance on a number of fronts. And it would take some time … for it to come back into compliance in time for us then to assess whether it was meeting its obligations,” he said.

Blinken’s comments come after Iranian Foreign Minister Javad Zarif said the US must take the first step. Writing in Foreign Affairs last week, Zarif called on President Biden to unconditionally lift sanctions if he is serious about restoring the JCPOA.

Zarif’s argument is that since the US was the first to violate the deal by re-imposing sanctions on Iran in 2018, it’s on Washington to revive the JCPOA. Iran gradually began violating the deal in 2019, after waiting a year for the other signatories to offset US sanctions.

Zarif, and other Iranian officials, have made it clear these violations are easily reversible and that they would quickly comply with the agreement if the US gives Iran sanctions relief.

END

6.Global Issues

Coronavirus/vaccine update

Fauci wrong again:  The Novavax Vaccine is only 50% effective against the mutant South African Covid strain

(zerohedge)

Dr. Fauci Wrong Again: Novavax Vaccine Only 50% Effective Against “Mutant” South African COVID Strain

 
THURSDAY, JAN 28, 2021 – 21:10

The latest COVID-19 vaccine news is unequivocally disappointing.

Novavax, one of six US companies that received hundreds of millions of dollars upfront from the US government to develop a COVIID-19 vaccine, has just released preliminary data from its Phase 3 trials. The data showed the vaccine was 89.3% effective in the UK branch of the trial.

Vaccine trials were held in nearly half a dozen countries, but in the UK, 62 people (out of roughly 15K) came down with COVID-19 symptoms after receiving either the vaccine or a placebo. Of these, six had received the vaccine, while 56 had gotten the placebo.

Yet, in a separate, middle-stage study in South Africa, the trial data suggested the vaccine was much less effective. In South Africa, the Novavax shot was about 49.4% effective against Covid-19 in the study. Preliminary results showed that more than 90% of the sick subjects for whom sequencing data were available were infected with the new variant circulating in South Africa.

The news comes at an inopportune time: A few hours ago, the CDC revealed that the first two confirmed cases of the hyper-infectious South African COVID mutation had been confirmed in South Carolina.

In a separate Novavax trial held in South Africa, the efficacy was significantly lower. In a small trial the rate of protection was just 50%. Almost all the cases that scientists have analyzed there so far were caused by the mutated strain, known as B.1.351.

What’s even more disturbing: The data also showed that many trial participants were infected with the variant even after they had already had COVID-19.

Novavax tried to put a bright spin on the results.

“We have the first trial — we are the first to conduct an efficacy trial — in the face of a changing virus,” said Stanley Erck, the president and chief executive of Novavax. He said that researchers expected the variants could change the trial results, but “the amount of change has been a bit of a surprise to everyone.”

However, there’s no denying the fact that scientists like Dr. Anthony Fauci who repeatedly claimed that the vaccines would provide enduring protection despite mutations of the virus were clearly exaggerating their level of certainty. But that’s not the first time the data has gone against “the science”.

END
 
JNJ reports that its vaccine is not as effective as originally thought
 
 
(zerohedge)

JNJ Shares Tumble After Reporting Vaccine Effectiveness

 
FRIDAY, JAN 29, 2021 – 8:31

Johnson & Johnson, the biggest pharmaceutical company in the world, has just released the first round of results from its Phase 3 COVID-19 vaccine trials, and they are disappointing.

They showed that the vaccine is only 66% effective at preventing moderate and severe COVID-19 (and that’s excluding mild cases of the virus), which is less than Moderna, Pfizer, AstraZeneca and others in the west.

However, western media like the FT highlighted the fact that the vaccine is, at the very least, still 57% effective against the South African variant – which is…not exactly reassuring.

The vaccine showed some protection against the 501. V2 variant, which first emerged in South Africa, although efficacy was 57 per cent in trials conducted there. The jab showed an efficacy rate of 72 per cent in the US, and 66 per cent in Latin America. Alex Gorsky, J&J’s chief executive, called the results a “critical milestone”. The company intends to file for a US emergency use authorisation in early February and, if granted, will immediately be able to ship vaccines. “Our goal all along has been to create a simple, effective solution for the largest number of people possible, and to have maximum impact to help end the pandemic,” he said.

The FT also noted that the trial results for JNJ aren’t exactly comparable to other vaccines. It also noted that the vaccine doesn’t require cold temperatures, and can be delivered in a single dose, all of which are advantages over vaccines produced by rivals like Pfizer and Moderna.

Chief Scientific Officer Paul Stoffels added that “a one-shot vaccine is considered by the World Health Organization to be the best option in pandemic settings, enhancing access, distribution and compliance.”

That’s critical, since the trial data released last night by Novavax showed that the US OWS-backed vaccine wasn’t nearly as effective against the mutated virus than the version in the UK.

Given the fact that it’s a Dow component, JNJ shares are taking down the whole index, and contributing to a broader selloff in value stocks as the news was viewed as an important reflationary catalyst.

It’s just the latest reminder that the fantastic results promised by Dr. Anthony Fauci and former FDA chief Dr. Scott Gottlieb (aka CNBC’s go-to COVID expert) far outstrip the reality. The two experts both touted the Johnson & Johnson vaccine as almost guaranteed to be one of the safest and most effective vaccines. But it’s not the first time they were wrong. Dr. Fauci touted the results earlier this week.

While also raising questions about the other trial results.

END

US COVID Hospitalizations Tumble As EU Reassures Public Vaccines Are Safe For Elderly: Live Updates

 
FRIDAY, JAN 29, 2021 – 10:40

Summary:

  • EU regulators say vaccines safe for elderly
  • JNJ chief scientific officer says will apply for emergency approval in US
  • WHO team finally visits Wuhan
  • Tokyo and surrounding area hint at closures of bars, restaurants
  • Thailand’s tourism industry hit
  • India new cases continue to decline
  • China reports 52 new infections

* * *

Regulators in Germany yesterday warned that the Pfizer-BioNTech vaccine shouldn’t be administered to minors or those older than 64. It appears the comments have sparked some kind of a battle between European regulators, as the European Medicines Agency, the top medical regulator in the EU, tells the public that the Pfizer-BioNTech vaccine is safe for older people, as a Europe-wide review found, with no link between the shot and any kind of enhanced risk.

A Europe-wide review found no link between the shot and the deaths of elderly people exposed to the vaccine. However, the EMA review found no new side effects.

In the US, JNJ released its first COVID vaccine data, while its chief scientific officer, Dr. Paul Stoffels, appeared on CNBC to confirm that the company plans to apply for emergency-use approval in the US immediately, and hopes to have supplies of the vaccine being doled out within weeks.

But nevertheless, new cases and hospitalizations are already starting to decline, as new cases reported in the US were under 156K yesterday, while hospitalizations fell by 3K, with big declines across the major outbreak states.

In other news, the WHO team finally made its way to Wuhan on Friday, and visited the Hubei Provincial Hospital of Integrated Chinese and Western Medicine, where many early cases of the virus were located.

Zhang Jixian, director of the hospital’s department of respiratory and critical care, has been described by Chinese state media as the first to report the virus after examining an elderly couple in late 2019 whose CT scans showed differences from typical pneumonia.

With vaccines a big topic again Friday morning following the Novavax news Thursday night and the JNJ news Friday morning, WHO’s CoVax program said it plans to ship enough vaccines to cover 3% of the population of the developing world as of Friday.

In Japan, the governors of Tokyo and its three neighboring prefectures of Kanagawa, Chiba and Saitama have agreed to consider asking restaurants and bars to shut down operations if the central government decides to extend the monthlong COVID-19 state of emergency beyond Feb. 7. The local governments are considering asking them to close early. Tokyo just reported 868 new infections, down from 1,064 a day earlier, as the capital tries to slow the spread of the virus.

Thailand’s tourism industry is now being hit with a number of business closures and job losses as it suffers through yet another wave of COVID-19 infections while pleading with the government for aid. At least 1MM workers in the country’s hospitality sector have been laid off so far, according to one trade group.

India, meanwhile, reported 18.9K cases over the past 24 hours, up from 11.7K the previous day, bringing the country total to 10.72MM. It also reported 163 deaths due to the virus, bringing the country’s total confirmed deaths to 154K. Meanwhile, India has vaccinated about 2.93MM people against COVID-19 since it started vaccinations on Jan. 16.

Here’s some more COVID-19 news from overnight:

  • The Serum Institute of India, the world’s biggest vaccine maker, has applied with local authorities for permission to conduct a small domestic trial of Novavax’s COVID-19 vaccine (Source: Nikkei).
  • South Korea has delayed until Sunday any easing of social distancing measures because outbreaks involving mission schools are threatening to undermine efforts to keep new infections under control ahead of the Lunar New Year holidays (Source: Nikkei).
  • China reports 52 new infections for Thursday, down from 54 cases a day earlier. Of the new ones, 36 were locally transmitted infections. Asymptomatic cases, which China does not classify as confirmed COVID-19 cases, rose to 42 from 28 a day earlier (Source: Nikkei).

* * *

As we first reported yesterday, now that cases of the South African variant have found their way to the US, there’s about to be a lot more talk about the 501. V2 variant/mutant, especially now that the latest vaccine data from JNJ has confirmed what Moderna’s follow-up study appeared to suggest: vaccines aren’t nearly as effective against the mutating virus as public health officials have promised.

7. OIL ISSUES

end

8 EMERGING MARKET ISSUES

 

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

Euro/USA 1.2133 UP .0012 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 104.69 UP 0.388 (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 1.3722   DOWN   0.0002  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.2801 DOWN .0028 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  FRIDAY morning in Europe, the Euro ROSE BY 12 basis points, trading now ABOVE the important 1.08 level RISING to 1.2133 Last night Shanghai COMPOSITE DOWN 22.11 PTS OR .63% 

//Hang Sang CLOSED DOWN 267.06 PTS OR .94% 

/AUSTRALIA CLOSED DOWN 0,68%// EUROPEAN BOURSES ALL RED

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 267.06 PTS OR .94% 

/SHANGHAI CLOSED DOWN 22.11 PTS OR .63% 

Australia BOURSE CLOSED DOWN 0.68% 

Nikkei (Japan) CLOSED DOWN 534.03  POINTS OR 1.89%

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1868.20

silver:$27.43-

Early FRIDAY morning USA 10 year bond yield: 1.07% !!! UP 2 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

The 30 yr bond yield 1.834 UP 3  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 90.54 UP 8 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.04% UP 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.06.%  UP 2   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.11%//UP 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.65 UP 2 points in basis points yield from yesterday./

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

GERMAN 10 YR BOND YIELD: FALLS TO –.50% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.17% 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 FRIDAY

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

Euro/USA 1.2136  UP     .0015 or 15 basis points

USA/Japan: 104.67 UP .363 OR YEN DOWN 36  basis points/

Great Britain/USA 1.2940 UP .0054 POUND UP 54  BASIS POINTS)

Canadian dollar DOWN 13 basis points to 1.2781

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The USA/Yuan,  CNY: closed UP AT 6.4280    ON SHORE  (UP)..

 

THE USA/YUAN OFFSHORE:  6.4486  (YUAN UP)..

 

TURKISH LIRA:  7.31  EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield  at +0.06%

Your closing 10 yr US bond yield UP 2 IN basis points from THURSDAY at 1.073 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.832 UP 3 in basis points on the day

Your closing USA dollar index, 90.52 UP 6  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 FRIDAY: 12:00 PM

London: CLOSED DOWN 118.69  1.82%

German Dax :  CLOSED DOWN 233.06 POINTS OR 1.71%

Paris Cac CLOSED DOWN 111.31 POINTS 2.02%

Spain IBEX CLOSED DOWN 175.00 POINTS or  2.21%

Italian MIB: CLOSED DOWN 343.97 POINTS OR 1.57%

WTI Oil price; 52.39 12:00  PM  EST

Brent Oil: 55.30 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    75.66  THE CROSS LOWER BY 0.41 RUBLES/DOLLAR (RUBLE HIGHER BY 41 BASIS PTS)

TODAY THE GERMAN YIELD FALLS  TO –.50 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 :  52.22//

BRENT :  55.06

USA 10 YR BOND YIELD: … 1.085..up 4 basis points…

USA 30 YR BOND YIELD: 1.843 up 4 basis points..

EURO/USA 1.2135 ( UP 15   BASIS POINTS)

USA/JAPANESE YEN:104.72 UP .425 (YEN DOWN 18 BASIS POINTS/..

USA DOLLAR INDEX: 90.56 UP 10 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.3701 DOWN 23  POINTS

the Turkish lira close: 7.32

the Russian rouble 75.72   UP 0.36 Roubles against the uSA dollar. (UP 36 BASIS POINTS)

Canadian dollar:  1.2789 DOWN 40 BASIS pts

German 10 yr bond yield at 5 pm: ,-0.50%

The Dow closed DOWN 622.78 POINTS OR 2.04%

NASDAQ closed DOWN 246.43 POINTS OR 1.87%


VOLATILITY INDEX:  32.10 CLOSED UP 1.89

LIBOR 3 MONTH DURATION: 0.205%//libor dropping like a stone

USA trading today in Graph Form

Crypto Jumps In January As Hedgies ‘Suffer’ Greatest Stock Short-Squeeze In History

Tyler Durden's Photo

 

BY TYLER DURDEN
FRIDAY, JAN 29, 2021 – 16:00

The USDollar managed to end higher for the month of January while stocks, bonds, and gold all ended lower…

Source: Bloomberg

Cryptos, however, had a big month, led by Ethereum (and helped the last few days by a migration of WSB’rs and Elon Musk)…

Source: Bloomberg

Of course, the really big news was the ‘Reddit Rebellion’ that routed shorts late in the month, pushing “Most Shorted” stocks to their biggest monthly squeeze in history…

Source: Bloomberg

With the Top 10 most-heavily shorted stocks in the Russell 3000 utterly exploding…

Source: Bloomberg

This is madness… Those are month-to-date %age performance numbers! lol

Source: Bloomberg

Small Cap stocks surged in January (where many of the ‘most-shorted’ stocks are found) as Dow and S&P were flat and Nasdaq managed only modest gains…

Energy outperformed in January, Staples were worst but everything was hit in the last few days…

This week was the worst for stocks since October…

The Russell 2000 outperformed the S&P 500 for the 5th straight month…

Source: Bloomberg

This week’s weakness sent The Dow back below its 50DMA…

And The S&P 500 found support at its 50DMA…

And as shorts suffered, hedgies were forced to liquidate many of their most liquid longs…

Source: Bloomberg

…pushing FANG stocks back to unchanged on the month…

Source: Bloomberg

WSB to Hedgies…

Artemis’ Christopher Cole points out that VIX traded at all-time highs to realized January 27th (Vol-of-vol also near an all-time high amid the transmutation of solvency risk for select L/S HF and margin calls on brokers such as Robinhood)

Bonds were notably sold in the last two days – even as stocks puked – suggesting a sell everything liquidation…

Source: Bloomberg

On the month, the short-end was unch as the long-end steepened notably…

Source: Bloomberg

1.10% remains a key level for 10Y yields…

Source: Bloomberg

Real Yields tumbled in the back half of January…

Source: Bloomberg

The dollar was up on the month – its first monthly gain since September

Source: Bloomberg

Bitcoin tested back above $38k today after Elon Musk’s tweet…

Source: Bloomberg

 

Notably, precious metals got a boost in the last week as the WSB crowd shifted their attention to miners…

 

Silver surged…

 

And so did Gold, but each surge in gold was met by a mysterious selling pressure…

And crude futures were totally insane…

Finally, this made us laugh out loud – The Fear & Greed Indicator has plunged to 36, full of fear!

And the S&P 500 is just 3.5% from all-time record high prices (and valuations).

a)Market trading/LAST NIGHT/USA

 
 

b)MARKET TRADING/USA//Non farm payrolls

 
 

ii)Market data/USA

Americans’ Spending Slumps For Second Straight Month

 
FRIDAY, JAN 29, 2021 – 8:37

Americans’ personal spending dropped for the second month in a row in December, despite a modest (better than expected) rise in incomes on pandemic relief.

  • Purchases decreased 0.2% from the prior month, following a downwardly revised 0.7% decline in November.

  • Personal incomes rose 0.6%, stronger than the 0.1% gain projected.

Source: Bloomberg

On a year-over-year basis, spending is starting to drop faster (down 2.0%)…

Source: Bloomberg

All of which left the savings rates ticking up modestly…

An increase in savings!! That is not acceptable!

end

Pending Home Sales Drop For 4th Straight Month In December, Led By MidWest

 
FRIDAY, JAN 29, 2021 – 10:04

After a modest, but disappointing, uptick in new home sales and existing home sales, analysts expected a drop in pending home sales in December and it did, dropping 0.3% MoM (slightly better than the 0.5% decline expeccted)

Source: Bloomberg

This is the 4th straight monthly decline, underscoring the difficulties of further upward momentum in the housing market as the lack of available properties drives up asking prices and restrains demand.

However, contract signings are still up 22.8% from a year earlier on an unadjusted basis, highlighting the strides residential real estate has made amid record-low mortgage rates and buyer preferences for larger homes that double as office space.

“There is a high demand for housing and a great number of would-be buyers, and therefore sales should rise with more new listings,” Lawrence Yun, chief economist at the NAR, said in a statement.

“This elevated demand without a significant boost in supply has caused home prices to increase and we can expect further upward pressure on prices for the foreseeable future.”

By region, pending home sales declined 3.6% in the Midwest, the fourth straight decrease. In the largest U.S. region — the South — contract signings edged up 0.1%. Pending sales were unchanged in the West and rose in the Northeast.

end

UMich Sentiment Weakens In January As Republicans Hope Slumps

 
FRIDAY, JAN 29, 2021 – 10:14

Headline UMich Sentiment weakened in January, falling from 79.2 in December to 79.0 (well below the 79.4 expected) with both current conditions and future expectations weakening.

The gauge of current conditions slipped from the preliminary reading to a three-month low of 86.7, while the expectations measure edged up to 74, according to surveys through Jan. 25.

Source: Bloomberg

Sentiment levels were well below the average of 97.0 from 2017 to 2019, but UMich claims that this recent ‘stabilization’ is due to…

Although the nation is still being ravished by the pandemic, and the nation’s cooperative reactions have been far from perfectthe overall stability of consumer confidence has benefitted from wearing masks and social distancing, the quick substitution of home for office work, and the prompt distribution of generous federal benefits.

In contrast to the reduced levels but relatively stable trends in consumers’ economic expectations, partisan views have remained quite volatile. In the past three months, the Index of Consumer Expectations, the primary gauge for the future performance of the economy, has jumped among Democrats to 91.8 in January from 68.6 in October, and among Republicans it has plunged to 51.4 in January from 96.4 in October.

This reverses the shift which occurred when Trump was elected and maintained throughout his term in office. The data also indicate that the weighted average across Democrats and Republicans (74.2) has closely followed trends for Independents as well as the all-household average. The sharp partisan differences have been effectively neutralized with respect to economic expectations, although still exerting a dominant force shaping public discussions.

end

iii) Important USA Economic Stories

The attack on Wall Street intensifies as more short

(courtesy Reuters)
 
April Joyner/Ahmed and special thanks to Doug C. for sending this for us:

“GameStop effect” could ripple further as Wall Street eyes short squeeze candidates

NEW YORK (Reuters) – The clash between retail traders and Wall Street professionals that sparked roller coaster rides in the shares of GameStop Corp may pose a risk to dozens of other stocks and potentially create a headache for the broader market, analysts said.

 

Slideshow ( 2 images )

Market watchers identified dozens of stocks potentially vulnerable to extreme volatility after a buying spree from an army of retail traders in recent days prompted hedge funds to unwind their bets against GameStop and other companies, fueling surges in their share prices in a phenomenon known as a “short squeeze.”

“Unfortunately, it’s definitely not a one-off thing,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. “The type of activity that drove that higher, I believe, has caused people to try to duplicate that in other names.”

J.P. Morgan earlier this week named 45 stocks that may be susceptible to short squeezes and similar “fragility events,” including real estate company Macerich Co, restaurant chain Cheesecake Factory Inc and clothing subscription service Stitch Fix Inc.

Like GameStop, American Airlines Group Inc, AMC Entertainment Holdings Inc and others that have recently become targets of retail traders in recent days, all the stocks have high short interest ratios.

 

That means a large percentage of investors have borrowed the stock to sell it in anticipation that they will be able to buy it back at a lower price and profit on the trade. But if the stock rises sharply, those investors may be forced to buy back the stock at a loss.

“The unfortunate events in GameStop this week may be building a dangerous precedent for markets whereby retail investors act en masse to leverage their buying powers to spark fragility events,” analysts at J.P. Morgan said in a note.

Using derivatives and coordinating buying on websites such as the Reddit forum wallstreetbets, retail investors have had an outsize impact on markets in recent months. Hedge funds Melvin Capital Management and Citron Capital closed out short positions in GameStop earlier this week after buying pressure pushed up the company’s shares.

GameStop shares were recently down 25% on Thursday as retail brokerages Robinhood Markets Inc and Interactive Brokers Inc, restricted purchases of the stock, along with several others that have catapulted in recent days, including AMC Entertainment Group Inc and BlackBerry Ltd.. Even so, the video game retailer’s shares have gained more than 500% since last Thursday.

 

Barring wider trading restrictions, similar patterns could play out over several weeks as short sellers unwind their bets, said Michael Purves, chief executive of Tallbacken Capital Advisors.

Some firms run strategies that involve holding both long and short positions on a stock, he said, and as a result, certain stocks could see a surge and then a sharp drop as those firms adjust their positions. That process could put pressure on stocks more broadly and contribute to market volatility.

“I do think the contagion risk is real,” Purves said. “Any stock that is heavily shorted is exposed to getting GameStopped.”

Reporting by April Joyner and Saqib Iqbal Ahmed; editing by Edward Tobin

END
 
Cash strapped Robinhood, is now scrambling to raise one billion dollars as players jump ship form its platform after its bonehead move yesterday
 
(zerohedge)

Cash-Strapped Robinhood Scrambles To Raise $1 Billion From The Rich

 
FRIDAY, JAN 29, 2021 – 7:40

After years of carefully building its brand and reputation, Robinhood, the stock-trading app that helped invent the no-fee commission, is on the verge of collapse as it faces a mortal threat for any financial company: a bank – or in this case a brokerage run – as thousands of its core users threatened to abandon the platform after RH halted trades in shares of Gamestop, AMC and other shares that had become part of a Reddit-inspired populist revolt against the hedge fund community.

Immediately, the move sparked a wave of rumors which verged on (what some might call) conspiracy: Dependent on HFT market-makers like Citadel for most of its revenue, Robinhood was cutting off the bulls who were bidding Gamestop and a handful of other popular hedge fund shorts into the stratosphere in service to its “masters”.

Robinhood wasn’t the first mover: As we pointed out the other day, TDAmeritrade was the first to make the “unprecedented” move. As we suspected, it was almost immediately followed by the rest of the major day-trading brokerages.

However, as the day progressed the situation became clearer, Robinhood was in trouble.

After the market close on Thursday, Robinhood co-founder and CEO Vlad Tenev was on CNBC being grilled by Andrew Ross Sorkin about whether the firm was selling out the customers and core users who made it a success. Tenev swore that he and the firm had acted “preemptively” (in cutting off certain trades and cashed out some customers’ positions), attempting to make clear that the firm didn’t really need any liquidity.

As Dave Portnoy cracked jokes on twitter about the “irony” of a company called Robinhood stealing from the poor to give more to the rich, Tenev was telling Andrew Ross Sorkin that “we absolutely did not do this at the direction of any market maker…the reason we did it was because Robinhood is a brokerage firm, we have lots of financial requirements including SEC met-capital requirements.”

Readers can watch the rest of that interview below:

With RH’s reputation – not to mention its multibillion-dollar IPO which insiders still insist is slated for the first half of 2021 – hanging in the balance, Bloomberg reported Friday morning that Robinhood and its fellow discount brokerages were forced by the DTCC – the cooperatively owned clearinghouse that aims to prevent market meltdowns by ensuring that complex derivatives trades don’t take down the entire market – to put up more capital as collateral, a demand that – as Tenev said yesterday – the firm could not ignore (lest it draw the wrath of the federal government).

“Look, it is not negotiable for us to comply with our financial requirements and our clearinghouse deposits,” Tenev added, somewhat more bluntly, in an interview with Bloomberg.

“We have to do that.”

Of course, to put up the required money, Robinhood first had to find it, and so the firm was forced to go, hat in hand, to the biggest banks in America asking for a loan, which – as we reported last night – it readily secured.

The firm reportedly drew on a line of credit from six banks amounting to between $500 million and $600 million to meet higher margin, or lending, requirements from its central clearing facility for stock trades, known as the Depository Trust & Clearing Corporation.

However, as NYTimes reportsRobinhood still needed more cash quickly to ensure that it didn’t have to place further limits on customer trading, said two people briefed on the situation who insisted on remaining anonymous because the negotiations were confidential.

Robinhood, which is privately held, contacted several of its investors, including the venture capital firms Sequoia Capital and Ribbit Capital, who came together on Thursday night to offer the emergency funding, five people involved in the negotiations said.

Which prompted this mockery from us…

But more than $1BN in collateral to secure trading in shares that are by all accounts heavily liquid (for the moment, at least)? It’s understandable, to say the least, that the public is suspicious. Tenev said the firm took the decision “proactively” due to the surge in popularity. “It pains us to have had to impose these restrictions,” he added. But here is SilentCal (@KralcTrebor) with the best explanation of what happened that we have seen:

But more than $1BN in collateral to secure trading in shares that are by all accounts heavily liquid (for the moment, at least)? It’s understandable, to say the least, that the public is suspicious. Tenev said the firm took the decision “proactively” due to the surge in popularity. “It pains us to have had to impose these restrictions,” he added. But here is SilentCal (@KralcTrebor) with the best explanation of what happened that we have seen:

But more than $1BN in collateral to secure trading in shares that are by all accounts heavily liquid (for the moment, at least)? It’s understandable, to say the least, that the public is suspicious. Tenev said the firm took the decision “proactively” due to the surge in popularity. “It pains us to have had to impose these restrictions,” he added. But here is SilentCal (@KralcTrebor) with the best explanation of what happened that we have seen:

here’s my best explanation of why @RobinhoodApp restricted trading in the short-squeeze stocks.

Spoiler: the story isn’t the Ken Griffen called Janet Yellen who instructed DTCC to raise margin on Robinhood to force them to shut down the speculative buying.

Here goes…

Robinhood (RH) is a broker. They don’t execute stock orders themselves. They sign up customers, route their orders to executing brokers, and keep track of who owns what. RH is also its own clearing broker, so they directly settle and custody their clients’ securities.

Yes, RH is paid by Citadel to handle executing some of its order flow. This isn’t as nefarious as it sounds – Citadel Equity Securities is paying to execute retail orders because they aren’t pernicious (like having 500x the size behind them).

RH customers buy and sell stocks. Those trades don’t settle (settle = closing, the exchange of cash for security) until T+2, two days later. Depending on the net of buys/sells, RH is on the hook to pay or receive that net cash. That’s credit risk.

NSCC is the entity that takes that credit risk. It matches up the net buyers and sellers, post-trade, and handles the exchange of cash for security. To mitigate the credit risk that one of the clearing brokers fails, they demand the brokers post a clearing deposit with them.

The NSCC is required to do this by SEC rule, tracing to Dodd-Frank. Here’s the details: sec.gov/rules/sro/nscc…

Everyone posts, and if a broker fails, then NSCC takes any losses out of that broker’s deposit, then some from NSCC, then from everyone else (the other brokers).

This is a post-crisis idea encoded in Dodd-Frank that making everyone post collateral reduces the credit risk and systemic risk and such.

So how does the NSCC clearing deposit get calculated?

It’s basically Deposit = min( 99% 2d VaR + Gap Risk Measure, Deposit Floor Calc) + Mark-to-Market … math and jargon!

Let’s use an example. Say Fidelity has clients who bought 2bn of stock and sold 1.5bn of stocks. First, net down buy/sell between customers in the same stock.

Say that leaves 1bn buy and 0.5bn sell. Run some math to answer “that won’t move more than X with 99% odds in the next 2 days.” Let’s say that’s 3% of the net, so 3% * (1bn-0.5bn) = 0.15bn = 15m. That the 99% 2d VaR.

Next, we ask “is any one stock net more than 30% of the net buy/sell” … and if it is, then we take 10% of that amount and add it as the Gap Risk Measure. So if Fidelity customers bought 200m IBM, then add 20m to that 15m. That’s Gap Risk Measure.

Deposit Floor Calc is some thing that looks at the 1bn buy and the 0.5bn sell and does a small calc and adds them, so that if the first calc (99% 2d VaR + Gap Risk Measure) is small, then this floor will keep the overall from being tiny.

Then, last, you add Mark-to-Market. Basically if your customers bought IBM at 140/shr and it goes to 110/shr before it settles for cash at 140/shr, the NSCC has 30/shr of credit exposure to the clearing broker and that amount gets added to the required collateral posted to NSCC.

There are some other items, but that’s the basic idea – full details are here: dtcc.com/-/media/Files/…

The NSCC sets the framework, but it is spelled out in Dodd-Frank that they have to do so by law.

These deposits are held in the Clearing Fund at the NSCC.

Financials are here: dtcc.com/legal/financia…

They had 10.5bn in the Clearing Fund as of Sep 30, 2020.

This is the regime post-Dodd-Frank. NSCC updated it’s rules in 2018 to improve the VaR calc and to add the Gap Risk Measure.

How did this impact Robinhood?

Well, let’s say Robinhood had $20bn of client assets starting 2021. Those customers used to trade $1bn/d say. What is the context for Clearing Deposit? Say 2 days it’s a little unbalanced and it’s 1.2bn buy and 0.8bn sell. Ok, that’s probably around 12m, maybe 20m deposit.

If they take in $600m of new deposits and say $400m wants to buy GME. Plus of their $20bn existing, say there is $400m of GME buys over the past 2d. Then the picture could look like 2.0bn buys and 1.0bn sells, which might normally be 30m deposit. But volatility went up. A bit.

Now 99% 2d VaR is much higher. It should be 20x higher for their net portfolio, but the formula will smooth it out some. Maybe it’s ~4x bigger. So just on VaR, they have to post 120m now. That they should have.

The Gap Risk Measure is what kills them.

If GME is over 30% of their net unsettled portfolio, then they are required to post 10% of all the GME buys. So if that’s 800m, they have to post another 80m. And there is no limit to it. As long as their clients are up P&L, the mark-to-market covers it.

But if RH takes in 500m of new money and 300m buys GME, then at minimum they are looking at posting 30m+ from just that exposure at NSCC. They cannot use client money – RH has to use their own resources to post. And if GME stock drops, RH has to post the loss pre-settlement.

This would also explain why RH drew its credit lines and said vague things about clearing requirements. bloomberg.com/news/articles/…

The policy goal here is to avoid the central plumbing entities from taking credit risk. In reality, such regulations raise costs and create barriers to entry. It raises profits for entities like DTCC (which owns NSCC and is itself owned by Wall St)

RH offered to open up stock market investing more broadly. They succeeded, clearly. But the regulations didn’t change – there are still pro-Wall St, pro-incumbent rules and capital requirements. It’s one of the most highly regulated industries in our nation.

So @AOC is right to ask how it can be that Robinhood stopped its clients from buying certain securities. And what she’ll find is that the reason is that Dodd-Frank requires brokers like RH to post collateral to cover their clients’ trading risk pre-settlement.

And it isn’t the Fed or SEC who sets the rules. It’s the Wall St owned central clearing entity itself, DTCC, that makes its own rules. So when the retail masses decided to squeeze the short-sellers, in the middle of crushing them, it was govt regulations which tripped them up.

All of which leaves us wondering, with risk only having increased yesterday (from a VaR and thus capital perspective), regardless of who Robinhood borrowed the money from, or where it is now, it is ‘we, the people’ who are essentially the last line of defense against a complete financial implosion (and just like they were yesterday, will be sacrificed at the altar of Wall Street to ensure survival).

Given GME’s 80%-plus surge this morning, once wonders how soon RH will be forced to ‘choke’ buying once again, and how many clients will abandon Tenev and his not so merry-men.

end
 
They will leave Robin Hood platform in droves: They are limiting the purchase of GME to just 2 shares.
(zerohedge)

Robinhood Limits Purchases Of GME To Just 2 Shares

 
FRIDAY, JAN 29, 2021 – 13:31

To much fanfare, late on Thursday Robinhood “caved” to massive peer pressure as WallStreetBets, politicians, the public, even its employees, raged at the company’s decision to halt buy orders in GME – which had sent the stock price crashing – and once the company relented and said it would again allow stock purchase, GME stock exploded, soaring as high as $460 today after dropping to just above $100 yesterday.

However, as always, there is a catch, because while Robinhood allows purchases of GME stock… they are limited to just 2 shares!

Other size restrictions are as follows:

  • AAL – 55 shares
  • AMC – 25 shares
  • BB – 25 shares
  • BBBY – 30 shares
  • CTRM – 1650 shares
  • EXPR – 200 shares
  • GME – 2 shares
  • KOSS – 10 shares
  • NAKD – 300 shares
  • NOK – 50 shares
  • SNDL – 1200 shares
  • TR – 25 shares
  • TRVG – 400 shares

While previously it has been reported that RObinhood’s limitation is 5 shares, whether it is 2 or 5 is modest, but what matters is that Robinhood has come up with a clever loophole: while it still “allows” buying of GME stock – as a reminder it was the outright halt of buying that sparked a firestorm of response – it permits so little that it would have virtually no impact on either Robinhood’s balance sheet or any investor’s wealth chances.

But at least it’s “allowing” customers to trade in GME again, thus frontrunning even more populist anger. Smart.

end
Simon Black describes the GameStop fiasco beautifully
Simon Black)

“This Is A Financial Revolution…”

 
FRIDAY, JAN 29, 2021 – 13:50

Authored by Simon Black via SovereignMan.com,

At precisely 2:32pm Eastern time on May 6, 2010, the US stock market started to drop.

The decline was sudden, and vicious. Within minutes, more than $1 trillion of market capitalization had vanished, with the Dow Jones Industrial Average losing nearly 10% of its value.

This event became known as the ‘Flash Crash’. And early explanations pointed to the big investment banks and their high-tech trading algorithms, i.e. software that could buy and sell stocks without human involvement.

When the market started its decline that day, banks’ trading algorithms went haywire and started selling everything. This caused the market to decline even further, which triggered the algorithms to sell even more.

The humans were powerless to stop it. There were stories of panicked tech teams at investment banks frantically ripping cables out of the floor trying to shut down the machines.

But the selling went on for 36 minutes… during which time the banks and big funds racked up enormous losses.

For me, however, the Flash Crash was great. I was ‘short’ the stock market at the time, meaning I had bet that the market would decline.

And when the market dropped by more than 1,000 points, I happily cashed in.

But two days later I received an email from my broker explaining that they were CANCELING my trade.

The poor little investment banks had lost money because their fancy algorithms didn’t work. So the exchange was giving them a ‘do over’ at my expense.

Incredible. It hadn’t even been two years at that point since the banks had to be bailed out at taxpayer expense during the Global Financial Crisis of 2008.

Then, 20 months later, the Flash Crash happened. And the banks were simply able to wipe all their losses away.

The lesson is obvious: when we screw up, we pay the price for our mistakes. But when the banks screw up, the whole financial system comes to their rescue.

Plenty of people have made this realization over the years.

If you’ve been following the news, you are probably aware that there are a few stocks right now– most notably GameStop (GME), that have soared to incredible heights in a matter of days, thanks to a zealous group of individual investors on reddit and TikTok.

These aren’t titans of finance; they’re a bunch of little guys, many of whom are also frustrated by the rigged financial system.

A bit of background– GameStop is a company that sells video games. And, for years, almost all of their sales have been from their 5500+ stores around the world.

That business model worked really well… in 2005.

Today, most users download video games online directly from the publishers, or they stream games from Google, Amazon, Apple, or Steam. Going into a store and buying a DVD is a thing of the past, and GameStop’s sales have suffered as a result of this trend.

A handful of hedge funds have been betting that GameStop will go out of business soon, or at least that the stock price will continue to decline.

So these funds shorted the stock in a huge (and dubious) way, selling more shares of the company than were actually in existence.

And a number of small investors saw these questionable short positions and said, ‘Enough is enough. We’re tired of hedge funds exploiting the market.’ So they’ve banded together and bid up the price of GameStop’s stock to absolutely epic levels.

GME’s stock price is up from $17 earlier this month, $347 at yesterday’s close, all from these small investors.

And as a result, the hedge funds who shorted GameStop have extreme losses.

Individual investors are angry; comments on the subreddit r/wallstreetbets really sum this up:

“Hedge Funds have literally taken lives through their greed. It’s time for some long overdue taste of their own medicine.”

and

“It’s a class war. It’s time we fought back.”

and

“[Hedge funds: ] This is personal for me, and millions of others. . . I’m making this as painful as I can for you.”

and

“There is and has been a ruling class whose sole purpose is to retain power. They gaslight us into thinking they know what is best for us. 1% knows better than 99%. This is not [about] stocks, this is a financial revolution. . .”

And they’re right.

Small investors have been fleeced for years. It’s infuriating. People are angry.

And as we saw over and over again throughout 2020, when people become angry enough, they band together, often in loosely organized mobs, and take action.

Oftentimes that action is destructive (or self-destructive), and even irrational.

We watched people burn buildings in the name of combating discrimination, others descend upon the US Capitol, others destroy people’s lives via Twitter, and yet others assaulting their fellow citizens who weren’t wearing masks.

That’s human nature: we do strange things when we’re angry. But it makes us feel better.

GameStop is similar. The business loses tons of money, lost half of its equity last year, and has a net asset value of just $690 million. Yet at yesterday’s close the company was worth $20+ billion.

(So GameStop’s ‘Price/Book’ ratio was roughly 30, while the average Price/Book in the S&P500 is 4.16.)

GameStop is a completely irrational investment. And sure enough, the price has been hammered this morning after the brokerage app RobinHood suspended GME trading.

But as the reddit users say, it’s not about the money. It’s personal. It’s emotional. They’re knowingly engaging in destructive (and self-destructive) behavior. They’re OK losing money– because they’re angry.

This is a sign of the times.

We saw explosive mob anger last year over social issues, political issues, health issues. Now we’re seeing it in the financial system.

The obvious theme here is that people are seriously angry. And it’s not going away. It’s building.

Personally I think a better strategy is to borrow from the 1983 movie War Games: “The only winning move is not to play.”

We have an incredible amount of options at our disposal. Just like I wrote recently about divorcing oneself from Big Tech, no one has to use gmail; you don’t have to play Google’s game.

There are plenty of other secure, cloud-based email services. Same goes for Google Drive, Google search, etc.

Similarly, we have plenty of options when it comes to our investments.

If you think the stock market is rigged, you don’t have to play. Consider alternative investments instead– gold, real estate, private companies, crypto, etc. It may be more productive to NOT play the game rather than take huge risks to fight the system.

Either way, expect the anger to continue building. (Just imagine the fury if inflation starts to rise…)

And this is reason enough to have a Plan B.

*  *  *

On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years. That’s why we published a new, 50-page long Ultimate Guide on Gold & Silver that you can download here.

end
Rabobank’s Michael Every on the Reddolution::
(Michael Every)…

Rabobank: Is The Redd-olution Finally Over?

 
FRIDAY, JAN 29, 2021 – 15:11

By Michael Every of Rabobank

Game Over or Game On? (and Hamsters)

This is still not an equity-focused Daily; yet it still can’t avoid talking about what just happened. Wednesday saw the forum for the ‘Redd-olution’ shut down, then belatedly reopened; a massive spike in the share-price of GameStop, as the retail horde crushed hedge fund short-sellers with another incredible spike into bubbleville; then the online broker they transact with, Robinhood, decided all trading in GameStop and a few other key stocks was to be sell only, with the broker de facto becoming a regulator; and so the price of said stocks then reversed dramatically, wider stocks rallied, US and global bond yields rose, and the USD weakened as risk went back on.

On one level this is indeed Game Over. The House wins. The Empire Strikes Back. ‘Sanity’ prevails. And, yes, we should not be encouraging retail investors to manipulate markets and pile into obvious bubbles with stimulus cheques “because markets”.

However, on another level this is Game On. The retail horde are not going anywhere, and may have no day jobs to go back to. They have been defeated here, but can pile into any stock or asset they choose, forcing brokers or regulators to shut down trading, making life hard for The Street, and a mockery of the system. Moreover, they have political support: when AOC and Ted Cruz and Donald Trump, Jr. all agree the system is rigged, you know something is happening.

The easy to grasp political meme is that the ‘sanity’ now restored is one of infinite liquidity and light touch regulation for established market players –so hedge funds can short more than 100% of a stock (which is the market ‘genius’ the Redd-olution first spotted) or buy 100-year Argentinian bonds, or go long tech that bleeds money– but means bankrupting rule-changes and a heavy regulatory hand for retail punters trying to cut out the middle men. Over 40 years we still haven’t seen any political action to reverse the collapse in US real wages that has led people to need to day-trade for a living or retirement; but it took just 48 hours to act to save hedge funds. With zero irony, Steven Cohen, who runs hedge fund Citadel that does Robinhood’s trades for it, even tweeted: “I’m just trying to make a living just like you”(!) Yet what is the real political solution?

Back in 2015, when China’s equity bubble was imploding, I used the analogy of my mum’s hamster, which was always escaping from its cage. She had responded by progressively blocking each side of the cage with 12” LPs, but the thing always found a way out from the open sides. When all four were covered, and she was considering entombing it with an LP on the top of the cage too, I told her to either accept it was going to escape, or not have a hamster at all. It’s no surprise if you understand political economy and Minsky, but the US in 2021 echoes China in 2015. Vast amounts of liquidity are being thrown at a system that does not produce the “desired” outcomes: and the response is to micromanage where the liquidity flows, rather than accepting that hamsters gonna hamster.

In China’s case, this is part of their system, which despite cycles of mini-booms and busts and increasingly inefficient capital allocation, also produce massive output gains; and as long as Minsky isn’t gonna Minsky, which means as long as external trade is never gonna deficit, this is sustainable, even if an external political backlash is inevitable. By contrast, the US is the home of individual and market freedoms, yet we see the same trend of trying to stop the hamster escaping, while feeding it purely on speed: is an internal political backlash inevitable?

At least China has central planning, with markets there to help: in the US we have central planning with no plan other than “because markets” (but not these markets; or like that; or by you).

However, moving from the micro to the meta, that can change. In the US there is a shift to national security focused on China, which gives central planners broad lines for market activity to then colour within – albeit on less of the page than they could doodle on before. Moreover, a Green New Deal is a major focus for President Biden and the same analogy holds there. The two sets of broad lines could look very similar, or very different.

On which, yesterday China’s official spokesperson stated: China is willing to work with the US on climate change. But such cooperation cannot stand unaffected by the overall China-US relations. It is impossible to ask for China’s support in global affairs while interfering in its domestic affairs and undermining its interests.” So climate czar John Kerry may have nothing to do with Beijing after all; or lots and lots. Just don’t forget the lobbying US Big Tech executives are already doing to decouple from China.

But back to our current ‘sanity’, where Bloomberg op-eds roundly cheer the end of the first stage of the Redd-olution (after all, these kind of people don’t even pay for terminals!) and herald that “Hedge Funds’ Trades Are Working Again After Worst Day in History”. So nature is healing, and it’s time to buy 100-year bonds from repeat defaulters and/or loss-making tech companies again.

Back to your wheels, people!

end
 
This is big!!
 
Texas AG issued a Civil Investigative Demand to Robinhood, Citadel and others for collusion between hedge funds to halt trading on their platforms. Once they find that Citadel covered their shortfall yesterday, the directors will go to jail.  It will be about time that somebody puts these crooks away
 
 
 
(zerohedge)
 
 

Texas AG Issues CIDs To Robinhood, Citadel, Others Over “Shocking Coordination” Between Hedge Funds, Trading Platforms To Halt Trading

 
FRIDAY, JAN 29, 2021 – 15:52

The probes and lawsuits are coming.

Texas Attorney General Ken Paxton sent out a Civil Investigative Demand to 13 entities, including Robinhood and Citadel, regarding the “suspension of stock trading and investing” requiring higher margin reserves for trading certain companies and suspending chat platform activity.

Other names which were also issued CIDs include Discord, Robinhood Markets, Robinhood Securities, Interactive Brokers, TD Ameritrade, TD Bank, E-Trade, WeBull Financial, Public Holdings, M1 Holdings, Citadel Financial, and Apex Clearing.

“Wall Street corporations cannot limit public access to the free market, nor should they censor discussion surrounding it, particularly for their own benefit. This apparent coordination between hedge funds, trading platforms, and web servers to shut down threats to their market dominance is shockingly unprecedented and wrong. It stinks of corruption,” said Attorney General Paxton.

“I’m hopeful that these companies will step up and cooperate with these CIDs in order to clear any confusion over why stock purchases were forcibly closed and why even conversation around these stocks was silenced.”

In addition to public statements and internal documents, the CIDs request copies of all terms of service, policies related to content control and moderation, and communications between platforms and moderators of chat servers, including decisions to limit, control, or prevent access to the Discord r/WallStreetBets server.

Read copies of the CID here

 
 
The mob wins:  Legendary short seller Andrew Left is discontinuing short selling research 
 
 
(zero hedge)

Legendary Short Seller Andrew Left Says “Discontinuing Short Selling Research” After 20 Years

 
FRIDAY, JAN 29, 2021 – 9:04

One of the most prolific and best known short sellers in the world, Andrew Left of Citron Research, has officially been the angry mob’s first “victim”.

As we predicted last night…

…Left announced in a video on Friday morning:

“Citron Research discontinues short selling research. After 20 years of publishing Citron will no longer publish ‘short reports’. We will focus on giving long side multibagger opportunities for individual investors”

“For the first 15 years of existence,” Left said, “no financial news outlets wanted to even cover that we existed.” 

“We uncovered more fraud than any non-governmental agency out there,” Left said in his video. “We have done this whole thing without hiding from lawsuits and without publishing anonymously,” he continued. 

After 20 years, we’ve noticed that “we’ve actually become the establishment,” he says. “It has completely, now, lost its focus”. 

END
Next step: secede from the uSA
(Epoch Times)

Texas Governor Orders Agencies to Sue Biden Administration for Climate Actions that ‘Kill Jobs’

January 29, 2021 Updated: January 29, 2021
 

Texas Republican Gov. Greg Abbott on Thursday vowed to oppose what he called the Biden administration’s bid to destroy jobs with its volley of actions targeting the oil and gas industry.

Abbott signed an executive order during a press conference in Odessa on Thursday, which directed all state agencies to sue the Biden administration for any federal actions that threaten the Lone Star state’s energy sector.

“Texas is going to protect the oil and gas industry from any type of hostile attack launched from Washington D.C.,” Abbott said. “President Biden’s embrace of the green new deal is a job killer in Texas. It also takes a wrecking ball to the energy independence that Texas has been able to provide to the United States of America and Texas is not going to stand idly by and watch the Biden administration kill jobs in Midland, in Odessa or any other place across the entire region,” he added.

Abbott’s order (pdf) came on the heels of a series of executive actions taken by President Joe Biden in the name of fighting “climate change.” These include the decision to revoke authorization for the Keystone pipeline, the decision to rejoin the Paris Climate Accord, and a moratorium on issuing new oil and gas leases on federal land and waters.

While Biden’s actions have drawn fire from Republicans, industry groups, and even some Democrats, Special Presidential Envoy for Climate John Kerry said at a Wednesday press briefing at the White House that Biden wants to make sure workers in the energy industry “have better choices” in jobs that “pay better” and are “cleaner,” giving the example of being a solar power technician instead of being a miner. Kerry also claimed that it’s a false notion that “dealing with climate” comes at the expense of energy workers, adding that there is “a lot of money to be made” in the creation of new “healthier” jobs in sectors such as green hydrogen, geothermal heat, and other renewables.

john kerry

 

Special Presidential Envoy for Climate John Kerry speaks during a press briefing at the White House in Washington, on Jan. 27, 2021. (Drew Angerer/Getty Images)

Senate Minority Leader Mitch McConnell (R-Ky.) on Thursday criticized the Biden administration’s actions on energy policy that he collectively dubbed a “piecemeal green new deal.”

“There’s nothing green about a tsunami of pink slips for American workers, or carting Canadian crude around in trucks and trains instead of a pipeline,” McConnell said on the Senate floor. “This piecemeal green new deal is the wrong prescription: wrong for the environment, wrong for national security, and most of all for the working Americans who will soon be formerly working Americans if this keeps up.”

“Wilfully throwing our own people out of work, reducing our domestic energy security, raising costs and prices for working families—all for no meaningful impact on global temperatures,” McConnell added.

McConnell also cited a study (pdf) by energy consulting firm OnLocation, which concluded that Biden’s oil and gas lease ban would mean the loss of nearly 1 million jobs by 2022.

“The decision on federal lands will leave us down nearly one million American jobs by next year alone,” McConnell said on the Senate floor. “It’s a heck of a way to kick off a presidency.”

Congress Electoral College

 

In this image from video, then-Senate Majority Leader Mitch McConnell (R-Ky.) speaks as the Senate reconvenes on Jan. 6, 2021. (Senate Television via AP)

But Texas is “prepared to fight back,” Abbott said, with his executive order directing every state agency to, “use all lawful powers and tools to challenge any federal action that threatens the continued strength and vitality of the energy industry. Each state agency should work to identify potential litigation, notice and comment opportunities, and any other means of preventing federal overreach within the law.”

Abbott also said he would support legislation that would prohibit cities from banning natural gas appliances, an action he said was recently taken in San Francisco.

“In Texas, we will not let cities use political correctness to dictate what energy source you use,” he said.

Mimi Nguyen-Ly contributed to this report.

end

John Kerry’s stupid arguments for wasting money on climate change

(Mish Shedlock)

John Kerry’s Straw Man Arguments For Wasting Money On Climate Change

 
FRIDAY, JAN 29, 2021 – 11:40

Authored by Mike Shedlock via MishTalk,

It’s cheaper to deal with the crisis of climate than it is to ignore it, says John Kerry. Let’s explore his thought process.

Cheaper to Deal With It Now

Kerry’s Comments

  • “There are countless economic analyses now that show it’s now cheaper to deal with the crisis of climate than it is to ignore it.”

  • “We spent $265 billion 2 years ago on 3 storms, Irma, Harvey, and Maria. Maria destroyed Puerto Rico. Harvey dropped more water on Houston in five days than goes over Niagara Falls in a year. And Irma had the first recorded winds of 185 miles an hour for 24 sustained hours.”

  • “All of them were exacerbated by the last four years. Now we have to try to make up for that. That is a hard pull but this president is capable of doing it.”

Straw Man Fallacies

Implied in Kerry’s straw man analysis is implicit belief that addressing “climate change” would have prevented Irma, Harvey, Maria, and the wildfires in California.

Where is the CO2 coming from? 

CO2 Stats

  • Please note that the US reduced its carbon footprint from 6.13 billion tons in 2007 to 5.28 billion tons in 2019.

  • Meanwhile, China increased its footprint from 6.86 billion tons in 2019 to 10.17 billion tons in 2019.

  • In the same timeframe, global output rose from 31.29 billion tons to 36.44 billion tons.

  • In 2007, the US accounted for 19.6% of the total global carbon footprint.

  • In 2019, the US accounted for only 14.5% of the total global footprint.

The above stats are from Our World CO2 Emissions.

The US could eliminate its entire carbon footprint tomorrow and it would not even matter (except of course, the entire global economy would crash).

How Much Money is Needed?

Kerry did not say how much money he needed, only that we have to make up for the last four years. Lovely.

The implied assumption is we will quickly stop hurricanes by throwing money at the problem.

We better hurry too, because we lost four years. What a hoot.

AOC’s Green New Deal Pricetag

Please recall AOC’s Green New Deal Pricetag of $51 to $93 Trillion vs. Cost of Doing Nothing

Climate Change Religion

Climate change is a religion. I doubt I can change any minds about what is happening,

But politicians don’t solve problems so it is unwise to have any faith in their proposed solutions. If there is a solution, the free market will find it.

If after reading this, you think the US can spend enough to stop hurricanes that have been happening for billions of years, you need to have your head examined.

What You Can Do

At the personal level, if you are still devoted to addressing climate change, I have some practical suggestions: Don’t fly; don’t drive; don’t have kids; Don’t eat and don’t breathe.

The latter is especially important. CO2 comes out with every breath. Having kids is the single worst thing you can do.

Are you still committed to the cause?

Reader Q&A

iv) Swamp commentaries

For your interest…

San Francisco Votes To Strip George Washington, Abraham Lincoln From School Names

 
THURSDAY, JAN 28, 2021 – 17:10

The names of George Washington and Abraham Lincoln, American’s 1st and 16th presidents – the latter of whom ended slavery – will be stripped from public schools in San Francisco, after the school board voted 6-1 Tuesday in favor of renaming 44 San Francisco school sites over connections to slavery, oppression, racism or similar criteria, according to the San Francisco Chronicle.

In addition to presidents, conquistadors and authors, Democratic Senator Dianne Feinstein‘s name was added to the cancel list because she replaced a vandalized Confederate flag in 1984 while serving as Mayor. The flag had been displayed in front of City Hall. When it was pulled down a second time, she did not replace it.

According to critics, the methodology used to cancel historical figures was ‘slapdash,’ and included little to no input from historians, as well as a lack of information on the basis for each recommendation. In one instance reported by the Chroniclethe committee didn’t know whether Roosevelt Middle School was named after Theodore or Franklin Delano.

“I must admit there are reasons to support this resolution, but I can’t,” said community member Jean Barish, adding “These are not decisions that should be made in haste.”

School board members, however, have insisted that the renaming is timely and important, given the country’s reckoning with a racist past. They have argued the district is capable of pursuing multiple priorities at the same time, responding to critics who say more pressing issues deserve attention.

In some schools, families argued for a name change for years, including those at James Denman Middle School, named after the first superintendent, a racist leader who denied Chinese students a public education. Others argued that current names mean students are wearing school sweatshirts with the names of slave owners, including Washington, Thomas Jefferson and James Madison. –SF Chronicle

Board member Mark Sanchez defended the action, saying “It’s a message to our families, our students and our community,” adding “It’s not just symbolic. It’s a moral message.”

The board’s lone “no” vote, Kevine Boggess, said that while he didn’t agree with all the recommendations and their criteria, his vote was largely based on his opposition to naming schools after elected officials – which makes no sense.

 

A statue of Abraham Lincoln stands at the entrance of Abraham Lincoln High School on Tuesday, December 8, 2020, in San Francisco, Calif.
Photo: Yalonda M. James, The Chronicle

Parent Nguyen Louie is in favor of changing the name of her childrens’ school, Junipero Serra Elementary, named after a colonizer. “We should not honor him with the name of our elementary school.”

According to the report, 80% of San Francisco parents are in favor of changing the name.

“Give us a chance to come up with our own new name,” Nguyen added. “One we can be proud of.”

The months-long debate garnered national attention, with former President Donald Trump tweeting about it, stoking an ongoing culture war that has intensified in recent months.

Many San Francisco parents — as well as Mayor London Breed — argued the effort was ill-timed given the pandemic and the impact on children, especially students of color, and the fact that students are not even in the schools subject to renaming. Some criticized the board Tuesday for focusing on symbolism rather than the urgent reality facing struggling students, who are approaching a year in distance learning, with many struggling academically, socially and emotionally.

And the renaming is likely to be costly.

It’s unclear how much the district will spend on new signage, repainted sports fields or gym floors, athletic, band or other uniforms, and other administrative costs. But based on other districts across the country, it could cost San Francisco at least $1 million to rename the 44 school sites and potentially significantly more.

The district faces a significant budget deficit, which could reach $75 million next school year. –SF Chronicle

Of note,while the school board found time to address this pressing issue, they failed to discuss any items related to the academic or health impact on students, or about reopening schools. Instead, most of the meeting was dedicated to issues relating to racism – such as their unanimous vote to issue a formal apology to Native American families for land theft, along with the “pain and trauma caused by racist imagery, textbooks and mascots, while allocating $200,000 for the district’s American Indian Education program.”  The district’s measure will also require the removal of all Thanksgiving stereotypes such as headdresses, and the removal of inaccurate depictions of Pocahontas from history books as a “willing and curious prisoner.”

END

Five Days After Biden Inauguration, Judge Rules Late Changes To VA Election Law That Allowed Late Mail-in-Ballots Without Postmark To Be Counted Is ILLEGAL

100 Percent Fed Up – Joe Biden’s bizarre inauguration spurred the same amount of enthusiasm most Americans have for purchasing a 3-ring binder from CVS. Yet, somehow, we’re supposed to believe he got more votes than any president in United States history?

One of the most common arguments made by Democrats, RINOs, and their allies in the media, to disprove voter fraud in the November election is that every single voter fraud case that’s been tried in the courts has failed. Americans need to keep their eyes on upcoming court cases related to election fraud. SCOTUS Blog lists an astounding 21 election fraud-related cases they’re watching.

One case that’s not making news in the Democrat Party’s mainstream media is a decision made by a  Virginia judge on Monday. The judge ruled that last-minute changes made by election officials to allow absentee ballots with missing or illegible postmarks to be counted is illegal. 

TRENDING: DC Officials Announce Plans to Erect Permanent Security Fence Around US Capitol – In Same Week Democrats Ended Construction of Border Security Fence

Washington Examiner- “This is a big win for the Rule of Law,” said Public Interest Legal Foundation President J. Christian Adams, who represented Frederick County electoral board member Thomas Reed in the case. “This consent decree gives Mr. Reed everything he requested — a permanent ban on accepting ballots without postmarks after Election Day and is a loss for the Virginia bureaucrats who said ballots could come in without these protections.”

The case was over a Virginia Board of Elections rule issued in August that allowed mail-in ballots without a postmark to be received up to three days after the November election.

The new Virginia Board of Elections rule notified county election boards that any ballots “received by the general registrar’s office by noon on the third day after the election … but does not have a postmark, or the postmark is missing or illegible” should not be rendered invalid. The elections board decided a week later that those ballots should be counted.

One win for Virginia voters who care about election integrity. It’s a pity this practice wasn’t stopped BEFORE the ballots were tabulated in the November election

END

Georgia’s Raffensperger Caught in Another Scandal – After His Claims that “Audits” of Georgia’s Voting Machines and Election Were Performed by a Certified Auditor Come into Question

PShare

 

 

Georgia’s Secretary of State Brad Raffensperger is the face of 2020 Election sham.  His actions in Georgia were reprehensible.  And now we caught him in another scandal.

It’s really hard to find the words to describe Georgia’s Secretary of State Brad Raffensperger’s actions during the 2020 election cycle.  We’ve reported extensively on his actions and today can add more dishonesty on his part to the list.

To this day there are hundreds of thousands of ballots that were lacking the legal documentation to confirm the results in Georgia in the 2020 election.  Secretary of State Raffensperger certified the results anyway. 

Hundreds of thousands of ballots lack the proper documentation required by law to confirm their validity.  These votes should never have been certified by anyone:

TRENDING: DC Officials Announce Plans to Erect Permanent Security Fence Around US Capitol – In Same Week Democrats Ended Construction of Border Security Fence

But there’s more.  Raffensperger used a firm to audit the Dominion voting machines before and after the 2020 election.  But Raffensperger withheld information on the audit firm and actually lied about its certifications.

Attorney Sidney Powell told the  World Tribune:

“There should be an investigation, a thorough criminal investigation, frankly, of everyone involved in acquiring the Dominion [Voting] System for the state of Georgia,” attorney Sidney Powell said.

Powell is right.

Georgia’s Secretary of State Raffensperger withheld pertinent information from Georgia’s voters and outright lied about the firm auditing Georgia’s machines and vote.

Jeff Carlson at the Markets Work shared this in early December:

The firm hired by Georgia’s secretary of state to conduct an “audit” of Dominion Voting Systems technology used during the 2020 elections is the same one that previously certified the Dominion systems and also approved a last-minute system-wide software change just weeks before the election.

Secretary of State Brad Raffensperger failed to disclose that the company, Pro V&V, had a preexisting relationship with Dominion that dated back years, in his Nov. 17 statement announcing the results of the audit.

Raffensperger also failed to disclose that Dominion had used technical conclusions from Pro V&V in a pre-election Georgia lawsuit that questioned the reliability of Dominion’s systems during a last-minute software fix before the Nov. 3 election. The testing from Pro V&V had been characterized as “superficial” and “cursory testing” by an expert cited in court documents.

In the widely quoted statement, Raffensperger said that the audit of Dominion machines was complete, there was “no sign of foul play,” and that “Pro V&V found no evidence” of tampering with the machines:

“We are glad but not surprised that the audit of the state’s voting machines was an unqualified success,” said Secretary Raffensperger. “Election security has been a top priority since day one of my administration. We have partnered with the Department of Homeland Security, the Georgia Cyber Center, Georgia Tech security experts, and wide range of other election security experts around the state and country so Georgia voters can be confident that their vote is safe and secure.”

Raffensperger also included an impressive description of Pro V&V in his statement, but again failed to disclose the firm’s relationship with Dominion, nor did he address the fact that Pro V&V appears to be a very small and private company that operates out of a single office suite.

Raffensperger issued a memo of the results of the Pro V&V audit at that time:

The problem with Raffensperger’s memo is that Pro V&V was not certified in 2020 at the time it performed the audits of Dominion Voting Machines in Georgia. 

It had been certified up through 2017 but there was never any proof that it had been re-certified until yesterday.

We reported yesterday morning that Pro V&V was not certified and by yesterday afternoon the EAC posted memos to its site re-certifying Pro V&V.  (It’s still unknown what actions took place to re-certify Pro V&V so quickly after our reporting):

Regardless, when Raffensperger claimed Pro V&V was a certified auditor, he was wrong, he lied.

Georgians should be livid with the way that they have been treated in the 2020 election and the numerous abnormalities that were NEVER investigated.  

The voting machines chosen by Secretary of State Raffensperger were never reviewed by a certified auditor but Secretary of State Raffensperger claimed they were.  He lied.

END

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

L’ affaire GameStop/WallStreetBets hit critical mass yesterday and is now the major story in the US.  The ensuing consequences of the machinations and schemes is unknown but could be profound.  We cannot overstate how irate the ‘little people’ are at what they perceive to be is another rig for the elites. Politicians of both parties are expressing opprobrium at what has occurred.  Hearings are being arranged.  It’s time for operators and hedgies to take a very low profile; it’s going to get very nasty.  Operators that are righteous and true [Our clients, of course] could get tarred with the less scrupulous types.

 

The fact that GameStop short interest hit 140% of its float is an indictment of regulators and brokers.  A lot of entities are NOT delivering shares for settlement at the statutory times and over 21 million shares were never available for delivery.  This means brokers allowed people to short over 21 million shares without verifying the availability of deliverable shares.  The laxity with short-share deliveries was a major factor in the Crisis of 2008.  We witnessed this abuse firsthand because it happened to some of our clients.  There were repeated and long-lasting ‘fails to deliver’ all over the globe.

 

L’ affaire GameStop/WallStreetBets has become an enormous cause célèbre for populists.  They are pounding Street elites and their acolytes over real and perceived hypocrisy and double standards.  The anger intensified yesterday when some brokers banned the masses from buying high short-interest stocks.

 

GameStop Soars To $500 [Pre-NYSE open] as Most-Shorted Stocks Resume Surge

https://www.zerohedge.com/markets/gamestop-soars-500-most-shorted-stocks-resume-surge

 

GameStop hit 483 at 10:00 ET.  It then plunged to 112.25 by the European close because some trading platforms banned users from buying GME and other hot stocks.  This heightened populist indignation.

 

Robinhood Stops Users from Trading GameStop Stocks, Other Reddit YOLO Picks

https://www.vice.com/en/article/m7ak7y/robinhood-stops-users-from-trading-gamestop-stocks-other-reddit-yolo-picks

 

Robinhood Says Told Users It May Close Some ‘At-Risk’ Positions – BBG15:24 ET

 

E*Trade Restricts Purchases of GameStop, AMC Shares – Bloomberg 15:52 ET

 

Crackdown Arrives: Interactive Brokers Joins Robinhood, Blocks Buying of GameStop, AMC, Others   https://www.zerohedge.com/markets/you-can-not-purchase-additional-shares-robinhood-reportedly-removed-shuts-down-buying

 

@biancoresearch: On @BloombergTV now, Interactive Brokers Chm Thomas Peterffy said regulators/ brokers agreed that restrictions on trading because they believed the short squeeze would keep “going and going.”  So they had to “stop the losses.”  Stop the losses for whom, Thomas? Who was at risk?

 

@zerohedge: Dear retail traders: you pay Robinhood $0. You are irrelevant and expendable. Here’s who calls the shots at Robinhood: Robinhood Securities LLC – Held NMS Stocks and Options Order Routing Public Report  [59.78 of ‘non-directed’ orders went to Citadel]

https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%20Rule%20606a%20and%20607%20Disclosure%20Report%20Q3%202020.pdf

 

Tyler Winklevoss @tyler: Robinhood was always lies and fancy marketing. They never cared about the Wall Street Bets crowd, they only cared about selling the little guy order flow to Citadel. Today, they showed their true colors to the world.  [Will Congress investigate this practice?]

 

70.87 Billion Reasons Why the Retail Brokers Just Betrayed Their Customers – Short-sellers – mostly hedge funds – are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies just in 2021 alone! Add puts and other underwater derivatives, and the real loss will be even greater. And just as striking: Ortex data showed that as of Wednesday, there were loss-making short positions on more than 5,000 U.S. firms…https://www.zerohedge.com/markets/7087-billion-reasons-why-exchanges-betrayed-retail-customers

 

Losses on short positions in U.S. firms top $70 billion – Ortex data https://t.co/JJepUHS7uW

 

@Cernovich: Yellen earned more than $800,000 speaking to Citadel, the firm that ordered Robinhood to rig the market.  [If @Cernovich isn’t accurate, will Citadel sue him?]

 

Steven Cohen’s fund Point72 suffers 15% loss amid GameStop frenzy: NYT http://reut.rs/3pkUrg5

Two hedge-fund legends have suffered bruising losses as amateur traders banded together to take on some of the world’s most sophisticated investors https://t.co/KRaQzsRptz

 

Robinhood hit with class-action lawsuit after restricting GameStop stock

https://nypost.com/2021/01/28/robinhood-hit-with-lawsuit-after-restricting-gamestop-stock/

 

Dave Portnoy @stoolpresidente:Dems & Republicans haven’t agreed on 1 issue till this.   That’s how blatant, illegal, unfathomable today’s events are. It also shows how untouchable @RobinhoodApp @StevenACohen2C Citadel Point72 all think they are.  Fines aren’t enough. Prison or bust

 

@PoliticalShort: Soon “the market is rigged” will be deemed hate speech by Big Tech.

 

@JackPosobiec: Remember when they thought populism would go away if they banned the Bad Orange Man from all social media?

 

@LynAldenContact: high frequency traders pay big money to have their systems collocated in exchange data centers, so that they can run quicker than anyone else in order to skim money off the top of trades.

 

@zerohedge: Dear free and efficient markets, is there a restricted list for stocks that anyone without a Hampton’s mansion can no longer trade?

 

@DonaldJTrumpJr: It took less than a day for big tech, big government and the corporate media to spring into action and begin colluding to protect their hedge fund buddies on Wall Street. This is what a rigged system looks like, folks!

 

The populists vs. Street elites kerfuffle is escalating and attracting more people to the cause.  All that’s missing is a Trump-like barker to assume the leadership mantle and exploit the situation.  In the meantime, anger and mistrust is increasing and there is no telling where it will be focused in the future.

 

New York Young Republicans Holding ‘Re-Occupy Wall Street’ Protest in Zuccotti Park

…in response to brokers shutting down trading on Game Stop and other memed stocks…

https://www.thegatewaypundit.com/2021/01/new-york-young-republicans-holding-re-occupy-wall-street-protest-zuccotti-park/

 

@disclosetv: New York hedge fund billionaire Leon Cooperman fumes at retail traders and shouts: “ “This fair share Is a bullsh*t concept… It’s a way of attacking wealthy people.”  [How is buying stocks attacking wealthy people, Leon?  Pray tell.]  https://twitter.com/disclosetv/status/1354862517902827521

 

@DineshDSouza: Popular anger is now directed at hedge funds. Good! Next target: digital media companies that censor people. People are going to figure out how to screw the digital moguls and put those bastards on the street!

 

@BuckSexton: Somebody is going to have to explain why a public Reddit thread calling for individual investors to buy a stock is not ok But billion dollar hedge funds appearing on financial tv anytime they want to pump whatever stock they want is totally fine

 

Street analysts, hedge fund titans and big-name investors can also appear at large conferences and pitch stocks they hold or bash stocks they are short.  And how about those private dinners at which hedge funds ‘discuss ideas’?  Populists perceive these practices as legalized collusion and manipulation.

 

@YossiGestetner: Odd that idea dinners are not “manipulation” but sharing stock ideas out in the open for everyone to read is reason for “concern.”

 

Regulators, Street nabobs, the Fed and Congress better be extremely careful on how they play their cards and address the overt and sub-surface issues that are fueling these high emotions.  Social media reflected the pervasive anger and is exacerbating the situation, of course.

 

Dem Rep Alexandria Ocasio-Cortez (@AOC): Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino.

 

GOP Rep @laurenboebert: First Big Tech censored conservatives.  Now it appears Big Tech is colluding with Wall Street to bailout hedge funds after private investors beat them at their own game.  Congress should subpoena Robinhood & anyone involved with the GameStop halt & make them explain themselves.

 

@gamesblazer06: the irony is all these hedge funds lever up in sponsored FICC at 8-9x… then expand their short bookon some spec stock… then get taken out on a stretcher… & all of a sudden cry like babies.  Sorry it works both ways.

 

@umairh: Do you guys (not) know that hedge funds have giant programs that scrape Twitter and Facebook and robo trade based on what you say…all day? So the Reddit thing is just…meaningless. They’re already doing this on an industrial scale and have been.

 

@WSBChairman [WallStreetBets CEO]: Who remembers when investment banks gambled away our economy in 2008 but then got bailed out. They are the same people crying about GME.

 

@ggreenwald: What an absolutely extraordinary coincidence of timing that Discord happened to decide the r/Wall Streetbets sub-reddit had too much “hate speech” to tolerate on the same day hedge fund billionaires declared them a huge threat for the crime of winning at their expense!

 

@MichaelDuncan: I’d like someone to come on @RuthlessPodcast and explain why this GameStop scheme is more fraudulent than the stock market going up up up while Main St is on lock down for a year.

 

@LibertarianBlue: Trading halted for volatility; Voting halted for volatility; Social media halted for volatility; Constitution suspended for volatility; Throwing you in the gulag for volatility

 

Let’s not forget about how Congress enriches itself from insider trading!

Feinstein prepared to pay fine after failing to properly disclose husband’s stock purchase

Last January and February, he reportedly sold as much as $6 million worth of a biotechnology stock – Allogene Therapeutics – before the pandemic outbreak sent stocks tumbling. The transactions were also believed to have taken place around the time that senators were briefed on possible spread of the virus in the U.S., though Feinstein said she was not present at that briefing…

https://www.foxbusiness.com/politics/feinstein-fine-after-disclose-stock-purchase?cmpid=FNC_app#

    Ex-NYPD Chief @BernardKerik:  For anyone else, it would mean immediate jail time

 

With the pressure off hedge fund shorts, US stocks soared on the diminished probability of hedge fund equity liquidation and the perception that ‘boys’ and the elites are back in control of the markets.

 

ESHs and stocks peaked just before 14:00 ET on Thursday.  Spirited selling then drove ESHs 43 handles lower by the close.  Stocks and ESHs hit session lows at the close.  This is obviously a negative portend.

 

@GretaLWall: White House Press Secretary Jen Psaki declines to comment on Wall St controversy with Robinhood and Reddit stock boom [Because of Yellen’s connection to some of the players?]

 

@JackPosobiec: Biden admin caught totally flat-footed. Psaki just asked about GameStop Rebellion and had no real answer. Punted to SEC statement. They are in the pocket of the suits. Yellen took the money.

 

@barnes_law: A key mistake elites made was convincing themselves populism was “created” by those who rode it to power (Trump/Bernie), and thus they delude themselves into believing removing them, ends populism. Populism diffused is often much more powerful when not limited to a single leader.

Sen. Warren calls for SEC to deal with ‘market manipulation’ amid GameStop surge

https://www.marketwatch.com/story/sen-warren-calls-for-sec-to-deal-with-market-manipulation-amid-gamestops-surge-2021-01-28

 

How about investigating expiry manipulation, last-hour manipulation and performance gaming, Liz?

 

Congressman Byron Donalds (R-FL) joins a growing bipartisan group calling for an immediate investigation into Citadel, LLC., and Robinhood… https://donalds.house.gov/news/documentsingle.aspx?DocumentID=71

 

House Financial Services Committee Following Recent Market Instability, Waters Announces Hearing on Short Selling, Online Trading Platforms

    Today, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, made the following statement regarding recent market instability.  “Hedge funds have a long history of predatory conduct and that conduct is entirely indefensible. Private funds preying on the pension funds of hard-working Americans must be stopped. Private funds engaging in predatory short selling to the detriment of other investors must be stopped. Private funds engaging in vulture strategies that hurt workers must be stopped…

    As a first step in reining in these abusive practices, I will convene a hearing to examine the recent activity around GameStop (GME) stock and other impacted stocks with a focus on short selling, online trading platforms, gamification and their systemic impact on our capital markets and retail investors.

   “We must deal with the hedge funds whose unethical conduct directly led to the recent market volatility and we must examine the market in general and how it has been manipulated by hedge funds and their financial partners to benefit themselves while others pay the price.”

https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=407096

 

Democrats have total control now.  L’ affaire GameStop/WallStreetBets is their problem.  How Dems deal with the mess will be a titanic issue in 2022 – and it’s an early crisis for The Big Guy.

 

Robinhood to Allow Limited Buying of Some Securities Tomorrow – Bloomberg 16:16 ET

[GME jumped as much as 75% in after-hour trading on the Robinhood report.]

 

Robinhood Is Said to Draw on Credit Lines from Banks Amid Tumult – Bloomberg 16:44 ET

At least several hundred million dollars… Lenders include JPMorgan Chase and Goldman Sachs…

https://www.bloomberg.com/news/articles/2021-01-28/robinhood-app-is-said-to-draw-on-credit-lines-from-banks-amid-trading-frenzy

 

WH: ‘Shouldn’t be a surprise’ Janet Yellen paid by firm in GameStop stock struggle https://trib.al/oe8AMLS

 

The Fed balance sheet declined $10.016B due to a $30.08B drop in MBS.

https://www.federalreserve.gov/releases/h41/current/

 

Today is month end, which is another reason for the rally on Thursday and the intervention.  It is time for hedge funds and money managers to manipulate longs higher and shorts lower, to game January performance.  Barring news, the usual suspects will try to manipulate longs higher and shorts lower.

 

A huge risk now: State AGs filing charges on parties involved in L’ affaire GameStop/WallStreetBets.  Then, the Biden DoJ might get involved – unless there is concerted political intervention.  Remember when The Street in mass proclaimed that pure capitalism was good for everyone?  Good times!

 

NY AG Letitia James ‘reviewing’ Robinhood over GameStop trade restrictions https://t.co/yhWrZbVhHp

@Quicktake: Louise Linton, the wife of former Treasury Secretary Steven Mnuchin, will release a movie next month in which she plays a murderous, sex-addicted hedge fund manager. The film, which Linton wrote and directed, is titled “Me You Madness” https://t.co/42sl7aFdQY

 

Biden’s brother touts proximity to new president in ad for Florida law firm – This is far from the first time a Biden family member has used their last name to advance business interests

https://justthenews.com/accountability/political-ethics/frank-biden-touts-proximity-new-commander-chief-inauguration-day-ad

 

NY undercounted coronavirus nursing home deaths by up to 50%, state AG finds

James’ report said that government guidance may have put residents at increased risk

https://www.foxnews.com/politics/ny-undercounted-nursing-home-deaths-by-as-much-as-50-state-ag-says

 

@BenjaminEW: Four Texas Democrats — @RepGonzalez @RepCuellar @RepFletcher and @RepVeasey — urge Biden to rescind his order freezing oil and gas leasing on federal lands, writing “now is not the time to jeopardize American jobs” https://gonzalez.house.gov/sites/gonzalez.house.gov/files/01.27.21%20Interior%20Federal%20Ban_2021%20House%20FINAL%20EDIT.pdf

 

@adamhousley: Looks like 90% of the unemployment fraud in California went out of state and the number could reach 50 Billion dollars. Unreal.

 

We got a notice that someone filed an unemployment claim in our name in Illinois.  We told our accountant about it.  He said he has about two dozen similar fake claims from clients that he is addressing.

 

NYT: Three people who stormed the Capitol tried to recruit a large following ahead of time, prosecutors say… One person who stormed the Capitol, a self-described leader of a militia group, solicited recruits shortly after Election Day for a “basic training class” ahead of the inauguration, prosecutors claim in an indictment filed Wednesday, the latest indication that the authorities believe the violence at the Capitol was a coordinated and planned attack…

https://www.nytimes.com/live/2021/01/28/us/biden-trump-impeachment

 

Those who make peaceful revolution impossible make violent revolution inevitable.” — John F. Kennedy

 

GOP Senator Ron Johnson (@SenRonJohnson) tweeted at 6:00 PM on Wed, Jan 27, 2021: Social media censorship just ratcheted up to a new level.  Google’s YouTube removed two videos of doctors testifying under oath at my US Senate hearing on early treatment of COVID. Another body blow to freedom of speech and expression.  Very sad and scary.  Where does this end? https://t.co/uBmLc1bxom

 

‘College kids’ with NO medical experience win state [PA] contract to inject thousands of vaccines https://t.co/Spa685bNkh

 

@AugustTakala: TUCKER: Today, the FBI showed up at 31-year-old Doug Mackey’s (AKA Ricky Vaughn’s) house, a “conservative journalist” in Florida. He’s facing 10 years for disinformation “in the form of memes.”   https://twitter.com/AugustTakala/status/1354598098551656450

 

@robbystarbuck: Biden’s Department of (in)Justice has charged a Trump voter who had 58,000 followers on twitter with election interference because he posted a meme in 2016 telling Democrats to vote for Hillary Clinton via text as a joke. He’s being charged for a MEME!

 

@MattWalshBlog: This Ricky Vaughn case is insane. The federal government is criminally prosecuting a guy for posting memes five years ago. He faces 10 years in prison. This is some real-life dystopian stuff.

@Cernovich: According to the Department of Justice, disinformation is actionable in a lawsuit under the voting rights act. Using this precedent, news consumers can start suing media outlets for dishonest reporting under the voter suppression theory articulated in Ricky Vaughn case.

@johncardillo: John Durham couldn’t indict people who fraudulent swore out FISA warrants but people are being indicted for five-year-old memes.

@JesseKellyDC: Republicans had four years to do something about Barack Obama using the FBI as a political weapon. They did “the right thing”. Democrats take power and promptly start jailing their opponents.  Only one side is playing to win.

    Americans have had it so good for so long, they do not understand how much trouble is about to be here in this countryWhen The System becomes this corrupted, things get very bad very fast. And y’all are still talking about Donald Trump. My word are you guys in for a shock.

 

Here is a Dem supporter doing the same exact thing for which Doug Mackey is being prosecuted:

 

@mskristinawong tweeted at 8:38 AM on Tue, Nov 08, 2016: Hey Trump Supporters! Skip poll lines at #Election2016 and TEXT in your vote! Text votes are legit. Or vote tomorrow on Super Wednesdayhttps://t.co/ES34HV0yad

 

Equal justice under the law, and all that stuff, right?

end

let us close out the week with this offering courtesy of Greg Hunter

GREG HUNTER:

Illegitimate Government, Impeachment Backfire, Economy Tanking

By Greg Hunter’s USAWatchdog.com (WNW 466 1.29.2021)

Both establishment Democrats and RINO Republicans are wanting Trump voters, and this includes many Democrats, to publicly say that Joe Biden won the 2020 Election legitimately, even though the evidence and numbers say otherwise. Why? Is it because the Fraud is so big it will never go away. Is it because the Deep State wants the Biden Administration to be seen as legitimate, even though many think the government is, in fact, illegitimate. Is it because the fraud is so big that Trump will have to be returned to office one way or another? Who knows, but many strange things are going on in our nation’s capitol that we have never seen before. We live in interesting times. That is the only thing you can say for sure.

The Democrats and some Republicans voted to try to impeach President Trump for a second time, and this charge is more bogus than the last. They say his claims about the massive election fraud that happened nationwide with the 2020 Election are false. So far, not a single court, including the U.S. Supreme Court, has heard any evidence. This is a stunning fact, even though more than 40 cases have been filed and rejected. This includes four cases on hold at the U.S. Supreme Court. Again, they have been rejected without hearing one bit of evidence. With the Impeachment in the House and trial in the Senate, President Donald Trump will finally have his day in court. Trump will be able to show evidence of massive voter and election fraud. This impeachment will backfire. Let’s hope the American people will finally see the evidence that their vote and their country have been stolen by the Deep State.

Another 847,000 people filed for unemployment benefits this week. It is a stunning number, and with the Biden Administration, that number is not going to shrink but continue to grow. The economy is sick, and it will be getting sicker with policies of Joe Biden and his puppet masters.

Join Greg Hunter as he talks about these stories and more in the Weekly News Wrap-Up

END

Well that is all for today

I will see you MONDAY night.

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