FEB 2//CROOKED BANKERS CONTINUE TO RULE THE ROOST: GOLD DOWN $27.60 TO $1833.95//SILVER DOWN $2.81 TO $26.41 GOLD STANDING AT THE COMEX LOWERS SLIGHTLY TO 101.6 TONNES/SILVER ADVANCES TO OVER 9 MILLION OZ/CORONAVIRUS UPDATE: GLOBE//VACCINE UPDATE//SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1833.95 DOWN  $27.60   The quote is London spot price

Silver:$26.41. DOWN  $2.81   London spot price ( cash market)

your data…

 

Closing access prices:  London spot

i)Gold : $1838.20  LONDON SPOT  4:30 pm

ii)SILVER:  $26.70//LONDON SPOT  4:30 pm

Editorial of The New York Sun | February 1, 2021

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COMEX DATA

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

receiving today:958  /2803

EXCHANGE: COMEX
CONTRACT: FEBRUARY 2021 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,860.800000000 USD
INTENT DATE: 02/01/2021 DELIVERY DATE: 02/03/2021
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 1000 24
104 C MIZUHO 1323
132 C SG AMERICAS 9
180 H NOMURA SII 1
323 H HSBC 26
332 H STANDARD CHARTE 147
363 H WELLS FARGO SEC 350
435 H SCOTIA CAPITAL 14
555 C BNP PARIBAS SEC 1
555 H BNP PARIBAS SEC 18
624 H BOFA SECURITIES 431
657 C MORGAN STANLEY 400
661 C JP MORGAN 50 471
661 H JP MORGAN 487
686 C STONEX FINANCIA 4
690 C ABN AMRO 19 12
709 C BARCLAYS 340
709 H BARCLAYS 323
732 C RBC CAP MARKETS 1
800 C MAREX SPEC 6 12
880 C CITIGROUP 76
905 C ADM 54 7
____________________________________________________________________________________________

TOTAL: 2,803 2,803
MONTH TO DATE: 20,015

 

issued:50

GOLDMAN SACHS STOPPED 24 CONTRACTS.

 
 

NUMBER OF NOTICES FILED TODAY FOR  FEB. CONTRACT: 2803 NOTICE(S) FOR 280,300 OZ  (8.718 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  20,015 NOTICES FOR 2,015,000 OZ  (62.255 tonnes) 

SILVER//FEB CONTRACT

 

371 NOTICE(S) FILED TODAY FOR 155,000  OZ/

total number of notices filed so far this month: 1372 for 6,860,000  oz

BITCOIN MORNING QUOTE  $34,941   UP 1102

BITCOIN AFTERNOON QUOTE.:  $35,712  UP 1973 DOLLARS .

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $27.60  AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/ A WITHDRAWAL OF 2.63 TONNES FROM THE GLD/

GLD: 1,257.50 TONNES OF GOLD//

WITH SILVER DOWN $2.81 TODAY: AND WITH NO SILVER AROUND

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// AN UNBELEIVABLE DEPOSIT OF 18.627 MILLION OZ INTO THE SLV 

INVENTORY RESTS AT:

SLV: 620.563  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

 

Let us have a look at the data for today

THE COMEX OI IN SILVER ROSE BY A HUGE SIZED 5694 CONTRACTS FROM 179,138 UP TO 184,832, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE GAIN IN OI OCCURRED WITH OUR STRONG $2.56 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 AN ATMOSPHERIC EXCHANGE FOR PHYSICAL. WE ALSO HAD ZERO LONG LIQUIDATION, AND A HUGE GAIN IN STANDINGFOR SILVER OUNCES STANDING AT THE COMEX FOR FEB.  WE HAD AN  HUMONGOUS+++ NET GAIN IN OUR TWO EXCHANGES OF 19,856 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:  13,716, AS WE HAD THE FOLLOWING ISSUANCE:  MARCH  13,716 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  13,716 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

9.235  MILLION OZ INTITAL STANDING FOR FEB 2021

MONDAY, 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 $2.56) ).. 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 (19,410 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 INCREASE STANDING IN SILVER OZ  STANDING  FOR FEB, iii) HUGE 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..

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 SILVER 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 SILVER  AS WE HEAD TOWARDS THE  NEW ACTIVE FRONT MONTH OF MAR.

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

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

 

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

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

.

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

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

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE NON  ACTIVE DELIVERY MONTH OF FEB. HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF MAR FOR SILVER:

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

FEB

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

18,547 CONTRACTS (FOR 2 TRADING DAY(S) TOTAL 18547 CONTRACTS) OR 92.735 MILLION OZ: (AVERAGE PER DAY: 9274 CONTRACTS OR 46.367 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF FEB: 92.735 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 FEB: 92.735. MILLION PAPER OZ HAVE MORPHED OVER TO LONDON.

JAN EFP ACCUMULATION FINAL:  113.735 MILLION OZ

FEB EFP ACCUMULATION FOR FAR:   92.735 MILLION OZ (RAPIDLY INCREASING AGAIN)

RESULT: WE HAD A HUGE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 5694, WITH OUR  $2.56 RISE IN SILVER PRICING AT THE COMEX ///MONDAY.…THE CME NOTIFIED US THAT WE HAD AN ATMOSPHERIC SIZED EFP ISSUANCE OF 13,716 CONTRACTS WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS.

TODAY WE GAINED AN ATMOSPHERIC SIZED 19,410 OI CONTRACTS ON THE TWO EXCHANGES (WITH OUR $2.56 RISE IN PRICE)//

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 13,716 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A HUGE SIZED INCREASE OF 5694 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH OUR $2.56 RISE IN PRICE OF SILVER/AND A CLOSING PRICE OF $29.22 // MONDAY’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: 371 NOTICE(S) FOR 1855,000 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 STRONG 7596 CONTRACTS TO 528,264 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 STRONG SIZED GAIN IN COMEX OI OCCURRED WITH OUR   GAIN IN PRICE  OF $12.45 /// COMEX GOLD TRADING// MONDAY. WE PROBABLY HAD SOME BANKER/ALGO SHORT COVERING  ACCOMPANYING OUR SMALL EXCHANGE FOR  PHYSICAL ISSUANCE. WE  HAD ZERO LONG LIQUIDATION. WE LOST A SMALL STANDING IN GOLD OUNCES  AT THE COMEX TO 101.272 TONNES FOR FEBRUARY..AS WE HAVE A LACK OF PHYSICAL GOLD OVER HERE!...THIS ALL HAPPENED WITH OUR  RISE IN PRICE OF $12.45. 

WE HAD A VOLUME OF 5    4 -GC CONTRACTS//OPEN INTEREST  0//

WE HAD A STRONG GAIN  OF 10,421 CONTRACTS  (32.413 TONNES) ON OUR TWO EXCHANGES.. 

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 2825 CONTRACTS:

CONTRACT . FEB:0,  APRIL:  2825  ALL OTHER MONTHS ZERO//TOTAL: 2825.  The NEW COMEX OI for the gold complex rests at 528,264. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EXCHANGE DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A STRONG SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 10,421 CONTRACTS: 7596 CONTRACTS INCREASED AT THE COMEX AND 2825 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 10,421 CONTRACTS OR 32.413 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A FAIR SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (2825) ACCOMPANYING THE STRONG SIZED GAIN IN COMEX OI  (7596 OI): TOTAL GAIN IN THE TWO EXCHANGES:  10,617 CONTRACTS. WE NO DOUBT HAD 1 ) CONSIDERABLE BANKER SHORT COVERING AND CONSIDERABLE ALGO SHORT COVERING ,2.)SMALL DECREASE STANDING //  AT THE GOLD COMEX FOR THE FRONT FEB. MONTH RISING TO 101.272 TONNES3) ZERO LONG LIQUIDATION// ;4) STRONG COMEX OI GAIN  AND 5) SMALL ISSUANCE OF EXCHANGE FOR PHYSICAL  ...ALL OF THIS WAS COUPLED WITH OUR GAIN IN GOLD PRICE TRADING//MONDAY//$12.45.

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.

 
 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

FEB

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF FEB : 6651, CONTRACTS OR 665,100 oz OR 20.680 TONNES (2 TRADING DAY(S) AND THUS AVERAGING: 3325 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 2 TRADING DAY(S) IN  TONNES: 20.68 TONNES

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

THUS EFP TRANSFERS REPRESENTS 20.68/3550 x 100% TONNES =0.58% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2021 TO DATE:
 
 
JANUARY: 265.26 TONNES (RAPIDLY INCREASING AGAIN)
 
FEB  :20.68 TONNES SO FAR

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 5694 CONTRACTS FROM 179,138 UP TO 1854,832 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 INCREASE  STANDING  FOR SILVER  AT THE COMEX FOR FEB., AND 4) ZERO LONG LIQUIDATION 

EFP ISSUANCE 13,716 CONTRACTS

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

 MARCH:  13,716  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 13,716 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 5694 CONTRACTS TO THE 13,716 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN ATMOSPHERIC SIZED GAIN OF 19,410 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 97.05 MILLION  OZ, OCCURRED WITH OUR $2.56 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)TUESDAY MORNING/MONDAY NIGHT: 

SHANGHAI CLOSED UP 28.40 PTS OR .81%   //Hang Sang CLOSED UP 355.84 PTS OR 1.23%    /The Nikkei closed UP 271.12 POINTS OR 0.97%//Australia’s all ordinaires CLOSED UP 1.51%

/Chinese yuan (ONSHORE) closed UP AT 6.4567 /Oil UP TO 54.82 dollars per barrel for WTI and 57.62 for Brent. Stocks in Europe OPENED ALL GREEN//  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4567. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4606 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 STRONG 7596 CONTRACTS TO 528,264 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 STRONG COMEX INCREASE OCCURRED WITH OUR  RISE OF $12.45 IN GOLD PRICING /MONDAY’S COMEX TRADING/)… WE ALSO HAD A SMALL EFP ISSUANCE (2825 CONTRACTS).   WE  ALSO PROBABLY HAD  1)  CONSIDERABLE BANKER SHORT COVERING,  2)   ZERO  LONG LIQUIDATION,  AND 3)  SMALL DECREASE STANDING AT THE GOLD  COMEX//FEB. DELIVERY MONTH(101.272 TONNES) (SEE BELOW) …  AS WE ENGINEERED A STRONG SIZED GAIN ON OUR TWO EXCHANGES OF 10,421 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 5    4 -GC VOLUME//open interest LOWERS TO 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 2825 EFP CONTRACTS WERE ISSUED:  ; FEB// ’21  0 AND APRIL:  2825  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2825  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 STRONG 10,421 TOTAL CONTRACTS  IN THAT 2825 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED  COMEX OI GAIN OF 7596.  WE HAVE A HUGE AMOUNT OF GOLD STANDING FOR FEB (101.272 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 WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $12.45)., AND WERE  UNSUCCESSFUL IN FLEECING ANY LONGS  AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED 32.413 TONNES, ACCOMPANYING OUR HUGE GOLD TONNAGE STANDING FOR FEB (101.272 TONNES)..

NET GAIN ON THE TWO EXCHANGES :: 10,617 CONTRACTS OR  1,061,700 OZ OR  33.023  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:  528,264 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 52.84 MILLION OZ/32,150 OZ PER TONNE =  1643 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1643/2200 OR 74.68% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 
 

Trading Volumes on the COMEX TODAY:229,008 contracts// volume poor/

CONFIRMED COMEX VOL. FOR YESTERDAY:  269,765 contracts//  volume: fair //most of our traders have left for London

 

FEB 2 /2020

 
INITIAL STANDINGS FOR FEB COMEX GOLD
 
 
 
 
 
 
 
 
Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
 
129,161.164 OZ
Brinks
 
 
 
 
 
 
 
Deposits to the Dealer Inventory in oz 96,453.000 oz

 

Brinks

 

3,000 kilobars

Deposits to the Customer Inventory, in oz
nil
 
Oz
 
 
 
 
 
 
No of oz served (contracts) today
2803 notice(s)
280,300 OZ
(8.718 TONNES
 
 
 
No of oz to be served (notices)
12,544 contracts
1,254,400 oz)
 
39.019 TONNES
 
 
 
Total monthly oz gold served (contracts) so far this month
20,015 notices
 
2,001,500 OZ
62.255 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: 96,453.000 oz
(3,000 kilobars)
 
 
 
total deposit: 96,453.000   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 1  kilobar transactions

ADJUSTMENTS:  dealer to customer HSBC

HSBC:  28,164.276 oz  (dealer to customer)

The front month of FEB registered a total of 15,347 CONTRACTS FOR A LOSS OF 1510 CONTRACTS.  WE

HAD 1085 CONTRACTS FILED ON MONDAY SO WE LOST A SMALL 425 CONTRACTS OR 42,500 OZ MORPHED INTO LONDON BASED FORWARDS AND RECEIVED A FIAT BONUS FOR THEIR EFFORTS.

 

MARCH LOST 170 contracts to stand at 2300

APRIL added 5392 contracts to stand at 410,081

We had 2803 notice(s) filed today for 280,300 oz

FOR THE FEB 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and  50 notices were issued from their client or customer account. The total of all issuance by all participants equates to 2803  contract(s) of which 471  notices were stopped (received) by j.P. Morgan dealer and 487 notice(s) was (were) stopped/ Received) by J.P.Morgan//customer account and 24 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 (20,015) x 100 oz , to which we add the difference between the open interest for the front month of  (FEB 15,347 CONTRACTS ) minus the number of notices served upon today (2803 x 100 oz per contract) equals 3,255,900 OZ OR 101.272 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 (20015 x 100 oz  PLUS 15,347 OI) for the front month minus the number of notices served upon today (2803} x 100 oz which equals 3,255,900 oz standing OR 101.272 TONNES in this active delivery month of FEBRUARY. This is a HUGE amount  standing for GOLD IN  FEB

WE LOST A SMALL 425 CONTRACTS OR 42,500 OZ MORPHED INTO LONDON BASED FORWARS TRYING THEIR LUCK TO FIND METAL ON THAT SIDE OF THE POND.  

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 534.76 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 101.272 tonnes

CALCULATION OF REGISTERED THAT CAN BE SETTLED UPON:

total registered or dealer  19,313,886.912 oz or 600.74 tonnes
 
 
total weight of pledged:  2,121,119.74 oz or 66.32 tonnes
 
 
thus:
 
registered gold that can be used to settle upon: 17,192,767.0  (534,76 tonnes)
 
 
 
true registered gold  (total registered – pledged tonnes  17,192,767.0 (534.76 tonnes)
 
 
 
total eligible gold: 19,783,191.073 , oz (615.34 tonnes)
 
 

total registered, pledged  and eligible (customer) gold  39,097,077.985 oz 1,216.08 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  1089.74 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

 

 
 
FEB 2/2020

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
300,302.442 oz
 
 
 
CNT
 
Delaware
 
 
 
 
 
 
 
 
Deposits to the Dealer Inventory
389,296.67 oz
Brinks
 
 
 
 
 
 
Deposits to the Customer Inventory
 
nil oz
 
 
 
 
 
 
 
 
 
 
No of oz served today (contracts)
371
 
CONTRACT(S)
(1855,,000 OZ)
 
No of oz to be served (notices)
475 contracts
 2,375,000 oz)
Total monthly oz silver served (contracts)  1372 contracts

 

6,860,000 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 1 deposits into the dealer:
 
i)Into the dealer: Brinks
389,296.670 oz
 
 

total dealer deposits: 389,296.670        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: 299,348.442 oz
ii) Out of Delaware:954.000 oz
 
 
 
 

total withdrawals 300,302.442  oz

We had 1 adjustments: dealer  to customer

Loomis:  33,860.810 oz

Total dealer(registered) silver: 149.589million oz

total registered and eligible silver:  397.303 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

FEBRUARY saw a GAIN of 155 contracts to stand at 846. We had 16 notices filed on Monday. So we gained 171 contracts or an additional 855,000 oz will stand for delivery on this side of the pond. 

MARCH LOST 2665 contracts DOWN to 133,541.April gained another 83 contracts to stand at 150

The total number of notices filed today for FEB 2021. contract month is represented by 371 contract(s) FOR 1,885,000 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  1372 x 5,000 oz = 5.005,000 oz to which we add the difference between the open interest for the front month of FEB (846) and the number of notices served upon today 371 x (5000 oz) equals the number of ounces standing.

Thus the FEB standings for silver for the FEB/2021 contract month: 1371 (notices served so far) x 5000 oz + OI for front month of FEB(846)- number of notices served upon today (371) x 5000 oz of silver standing for the Jan contract month .equals 9,235,000 oz. ..VERY STRONG FOR A NON ACTIVE  FEB MONTH.

We gained 171 contracts or an additional 855,000 oz will stand for delivery over here.

TODAY’S ESTIMATED SILVER VOLUME :216,556 CONTRACTS // volume criminal//1.08 billion oz or 154% of annual silver production

FOR YESTERDAY  376,996  ,CONFIRMED VOLUME// atmospheric/1.88 billion oz or 269% of annual silver production

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+ 1.75% ((FEB 2/2021)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.78% to NAV:   (FEB 2/2021 )

Note: Sprott silver trust back into POSITIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/1.75%(FEB 2/2021)

(courtesy Sprott/GATA

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

NAV 19.61 TRADING 18.82///NEGATIVE 4.07

END

And now the Gold inventory at the GLD/

FEB 2/WITH GOLD DOWN $27.60 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD// A WITHDRAWAL OF 2.63 TONNES FROM THE GLD//.INVENTORY RESTS AT 1157.50 TONNES

FEB 1/WITH GOLD UP $12.45 TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 4.5 TONNES FROM THE GLD///INVENTORY RESTS AT 1160.13 TONNES

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:

 

FEB 2 / GLD INVENTORY 1157.50 tonnes

LAST;  991 TRADING DAYS:   +222.77 TONNES HAVE BEEN ADDED THE GLD

LAST 891 TRADING DAYS// +  391.00TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY

end

Now the SLV Inventory/

FEB2//WITH SILVER DOWN  $2.81 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: AN UNBELEIVABLE DEPOSIT OF 18.627 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 620.563 MILLION OZ//

FEB 1/WITH SILVER UP $2.56 TODAY: A FAIRY TALE DEPOSIT OF 34.419 MILLION OZ INTO  SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 601.936 MILLION OZ//

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 10CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV.: A XXXWITHDRAWAL 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 XXXXOZ 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 /

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

 


 


574.299 MILLION OZ
 
XXXXXXXXXXXXXX
 
 
 
 
 
FEB 2/2021

SLV INVENTORY RESTS TONIGHT AT

 


 


620.536 MILLION OZ

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

ii) Important gold commentaries courtesy of GATA/Chris Powell

SD Bullion states that the real price for silver is 30% above spot…if you can find any.

I am seeing one silver oz bullion at a price of 51.00 usa.

(SD Bullion)

SD Bullion CEO says price for real metal is 30% above ‘spot,’ if any metal is left

 
 Section: 

 

12:50p ET Monday, February 1, 2021

Dear Friend of GATA and Gold:

As the silver “short squeeze” attack was launched last night, SD Bullion CEO Tyler Wall told Bloomberg Television that the price for real metal in hand had jumped to 30 percent above the “spot” price and that dealer inventories were nearly exhausted. Wall’s comments to Bloomberg TV are 6 minutes long and can be viewed at YouTube here:

https://youtu.be/Yk7lqvb2nHk

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

END

Kranzler is probably correct:  the big short banks can used derivatives and other crap to contain the price of silver

(Kranzler/IRD/GATA)

Dave Kranzler: Can the big silver shorts be squeezed?

 
 Section: 

 

By Dave Kranzler
Investment Research Dynamics, Denver
Monday, February 1, 2021

Unfortunately, unless the physical market can be squeezed, at some point the bullion banks like JP Morgan and HSBC — with help from the central banks and the Bank for International Settlements — will be able to regain their grip on the pricing of gold and silver using derivatives, paper gold and silver.

I hope this latest move in the silver price is sustainable but I don’t think it is. But I hope it will elevate the awareness of the criminal manipulation of the metals by the big banks and shine a spotlight on how cheap gold and silver are as well as the mining shares.

That said, the physical market can be squeezed, but it requires that big investors take delivery of gold and silver on the Comex and from the London Bullion Market Association and remove their bars from Comex/LBMA vaults for private safekeeping.
Short of that, the Comex and the LBMA can perpetuate the manipulation scheme by continuing to lease gold from central banks — gold that the central banks obtain via swaps from the BIS — and continue the illusion of “delivery” through hypothecation. …

… For the remainder of the analysis:

https://investmentresearchdynamics.com/can-the-big-silver-shorts-be-sque…

END

As described below, the silver rally runs into roadblocks as the crooked CME raise margins again.

(Bloomberg/CME)

Silver rally runs into roadblock as margins rise, warnings mount

 
 Section: 

 

From Bloomberg News
Monday, February 1, 2021

Silver futures opened lower after the CME Group announced that it was raising margins for Comex contracts following a rally to an eight-year high that was inspired by an army of retail investors.

Most-active prices declined as much as 2.4% in early Asian trading Tuesday.

Margins will rise to $16,500 per contract from $14,000, effective Feb. 2, the exchange said in a statement, describing its decision as based on “the normal review of market volatility to ensure adequate collateral coverage.”

… 

The global silver market has emerged as the latest focus for an army of retail investors who share tips and views on Reddit’s WallStreetBets forum after they drove up the prices of some out-of-favor U.S. stocks.

Still, it remains unclear who authored the initial posts that ignited the staggering run-up in prices. In addition, many commodity analysts have cautioned that chasing up silver would be a much tougher proposition than squeezing stocks higher. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2021-02-01/silver-opens-lower-in…

END

Andrew Maguire:  if they attack the right way…..going after physical; they can unrig the silver and gold market.

(Kinesis/Andrew Maguire/GATA)

If they attack in the right way, Reddit Raptors can un-rig silver and gold, Maguire says

 
 Section: 

 

8:40p ET Monday, February 1, 2021

Dear Friend of GATA and Gold:

The silver squeezers he calls the “Reddit Raptors” are not amateurs, London metals trader Andrew Maguire tells Kinesis Money’s Shane Morand in an unscheduled interview tonight. Rather, Maguire says, if they attack the silver market in the right way, ensuring their claim on real metal, they have a chance to overturn not only the rigging of the silver market but that of the gold market too.

Maguire’s interview is 7 minutes long and can be viewed at YouTube here:

https://www.youtube.com/watch?v=q64mBCadDQs

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

END

Thom Calandra..

Whichever way the market goes, you can win with The Calandra Report — and so can GATA

 
 Section: 

 

7:56p ET Monday, February 1, 2021

Dear Friend of GATA and Gold:

Financial letter writer Thom Calandra of The Calandra Report did a remarkable thing today. He led the letter with an anonymous friend’s contrarian commentary about the U.S. dollar and commodity prices, an argument that the dollar will strengthen and commodity prices weaken in coming months as the world economy sinks.

You can read it here:

https://thomcalandra.com/melt-ups-occurring-apply-here/

Calandra expressed disagreement with his friend’s commentary but thought his readers needed to evaluate another view.

… 

Meanwhile Calandra also did what he does best — evaluating mining and laboratory companies whose shares he thinks have great potential no matter which way the financial markets turn. Today he was calling them “melt-ups” as many mining shares were indeed melting up as riotous retail investors began their campaign to “squeeze” silver.

With all this excitement in the monetary metals again, Thom is reopening for a few days his special offer to GATA supporters. Take a year’s subscription to The Calandra Report and you’ll get not only a sharply discounted price — $169 instead of the usual $229 — but half your subscription fee will be donated to GATA.

Thom’s research and name-dropping reports have been on a winning streak for many months now. His analysis and recommendations spring from his contacts in throughout the mining exploration business: across Quebec, Nevada, the Yukon, the Democratic Republic of Congo, Ghana, Arizona, Ontario, México, and Ecuador, among other far-flung places. He has similar contacts in the laboratory business.

If you check some of the sample reports posted in the clear at his internet site —

https://thomcalandra.com/

— you’ll see profitable names that were little known a year ago but are well-known now.

Thom never takes fees in exchange for coverage. He almost always owns shares of the companies he recommends in his letter. He takes pride in knowing the geologists and CEOs.

His letter also may be the lowest-cost mining analysis service. He conscientiously replies to all queries.

A rising tide may lift all boats, and the growing exposure of government price-suppression policy aganst the monetary metals is improving their prospects. But if, as Thom’s contrarian friend argued today, the dollar will rise and commodities weaken, money still can be made in special situations, where Thom has excelled.

If you’d like a part of that while helping GATA, your discount offer from The Calandra Report is waiting for you here:

https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=CCV…

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

end

Central banks are taking the rare step of announcing currency sales in advance trying to jawbone their currency down due to the falling uSA dollar

(London Financial Times)

Central banks take rare step of flagging currency sales in advance

 
 Section: 

 

By Eva Szalay
Financial Times, London
Tuesday, February 2, 2021

Several central banks have ventured into unusual territory in the opening weeks of this year, announcing currency sales in advance as they tread a delicate line between dulling the impact of a sliding dollar and dodging the ire of the U.S. Treasury.

Since the start of January, central banks in Chile, Israel, and Sweden have all outlined plans to sell their currencies in foreign exchange markets. Policymakers in Poland also issued a verbal warning to zloty bulls that they may intervene.

The moves underline the pressure on small currencies that are pushing higher in response to a broad slide in the dollar, holding down inflation in their domestic economies, and threatening exports at a time when global trade remains fragile. But the warnings also suggest that policymakers are keen to avoid being labelled currency manipulators — a title Switzerland and Vietnam earned from the U.S. last year.

“We are in an interesting moment when it comes to central banks straddling the fine line between [foreign exchange] intervention and [foreign exchange] manipulation,” said Alan Ruskin, chief international strategist at Deutsche Bank in a recent note to clients.

“While each of the [central banks] has different motivations, they do appear to be deftly dancing around possible censure from the U.S. This is a slippery slope,” he added.

Under pressure from the Federal Reserve’s pledges to keep interest rates low potentially for years to come, the dollar has weakened almost 7 percent over the past year against a basket of peers, sending the currencies of emerging markets and trade-sensitive economies soaring. …

… For the remainder of the report:

https://www.ft.com/content/0383f3a4-41a0-464a-b831-fd1a09a6b1b0

iii) Other physical stories:

CME hikes silver margins by 18% but it is the physical that people want.  The paper to physical disconnet is set to explode

(zerohedge)

CME Hikes Silver Margins By 18%: Paper-Physical Disconnect Set To Explode

 
MONDAY, FEB 01, 2021 – 18:04

Earlier today, around the time the fireworks in silver hit which sent the price of the precious metal to an 8 year high in its biggest one-day gain “since Lehman”, we had a feeling of what was going to happen after the close when we tweeted that “the CME can easily hike silver margins, but it has no control over the physical market. Just how disconnected can paper and physical silver get.”

Well, we didn’t have long to wait: shortly after the close, the CME Group announced it was raising margins on Comex silver futures by 18% after futures surged to an eight-year high, the exchange said in a statement.

Margins will rise to $16,500 per contract from $14,000, effective Feb. 2, according to the exchange. “The decision is based on “the normal review of market volatility to ensure adequate collateral coverage,” it said in a statement.

In kneejerk reaction the price of silver dropped 2%, sliding from just above $29/oz to just below.

While the margin hike has predictably pressured the price of paper silver lower, the question is what happens now to physical silver which is completely independent of the CME’s margin whims – as we noted above – and where the disconnect between paper and physical just hit an all time high as insatiable demand in the physical space is being offset by attempts to depress paper prices. We showed this in the delta between the price of one American Eagle coin and one SI(lver) future, which just exploded to an all time high of 30%, or almost $14 per ounce.

And that’s of course assuming one can actually find physical silver out there…

end
 
 
Silver shortages on the physical side//infinite supplies of paper.
(T Persson/BullionStar.com)

#SilverSqueeze: Physical Silver Shortage vs. Paper Silver

 
MONDAY, FEB 01, 2021 – 22:00

Submitted by Torgny Persson, BullionStar.com

The silver short squeeze in physical silver at present is unprecedented. Even so, the spot price of paper silver is not even close to the real physical equilibrium price of silver.  BullionStar may soon have no option but to abandon setting prices based on silver spot price altogether and move to fixed prices.

Thanks to  r/WallStreetBets (WSB) and related spin offs, the wider public is starting to open its eyes to the corruption and cronyism in the financial markets including in the paper gold and paper silver markets.

For years, BullionStar has been one of the strongest critics of the manipulated precious metals markets where paper issuance of silver (out of thin air) exceeds the physical availability of real silver at a multiple of at least 100 to 1.

While some in the WSB movement have suggested purchases of SLV shares and call options, many others are recommending physical silver. It’s important to understand that purchases of SLV shares does not equate to putting pressure on bullion banks. Bullion banks provide various services to ETF’s, such as custodial services, and ETF’s are known for colluding with central banks. The only way to put pressure on the corrupted paper silver market and on the bullion banks is to buy physical silver. Only then is there a chance that price discovery for real physical silver will shift to be based on the actual trading of physical silver instead of being inherited from synthetic paper trading prone to manipulation.

Click here to see what silver bullion items we currently have in stock.

This week may be the most interesting week for silver savers and investors in decades. The questions asked by this movement are of huge importance for the whole financial and monetary system.

  • Is what we are seeing the start of a seminal silver crisis with the potential of finally bringing down the manipulated paper silver market?
  • Can this movement lead to an attack of the very nature of unbacked fiat currency?
  • Will the bullion banks try to smash the paper spot and paper futures prices back down and if so, will the price of physical silver definitively disconnect from the paper price?
  • Can COMEX and SLV really source the physical silver required amidst the high demand?

Paper Silver Manipulation

What was claimed to be a conspiracy theory of bullion banks colluding to manipulate and suppress the paper price of precious metals have been proven true again and again.

BullionStar has also exposed, for example hereherehere, herehere, and here how the precious metals industry organisations, like the London Bullion Market Association (LBMA), protect the interests of the paper dealing bullion banks rather than further the interest of physical producers and dealers.

Suppressing the paper price of gold and silver goes to the very core, not only of the financial system, but to the whole monetary system. In Gold & Silver Price Manipulation – The Greatest Trick ever Pulled, we wrote:

“Manipulating gold and silver prices by spoofing futures trades and cancelling them is one thing. Central bank intervention into physical gold markets to dampen the gold price is another. But perhaps the most far reaching yet unappreciated method of manipulation is sitting there in plain sight, and that is the very structure of the contemporary ‘gold’ and ‘silver’ markets where prices are established by trading in vast quantities of fractionally-backed synthetic gold and silver credit, be it in the form of vast quantities of unallocated positions that are ‘gold’ or ‘silver’ in name only, or in the form of gold and silver futures which haven’t the slightest connection with CME approved precious metals vaults and warehouses.

By siphoning off demand for real gold and silver and channeling it into unbacked or fractionally-backed credits and futures, the central banks and their bullion bank counterparts have done an amazing job in creating an entire market structure of futures and synthetics trading that is unconnected to the physical gold and silver markets. This structure siphons off demand away from the physical precious metals markets, and in doing so, creates a system of price discovery which is nothing to do with physical gold and silver supply and demand.

Apart from fractional-reserve banking, precious metals market structure is perhaps one of the biggest cons on the planet. So next time you think of precious metals manipulation, remember that in addition to spoofing and secretive central bank gold loans, the entire structure of the precious metals markets is unfortunately one big manipulation hiding in plain sight.”

Silver Price Suppression

Another contributor to the suppression of the paper price for gold and silver is the government manipulation of inflation figures.

Using ShadowStats Alternate CPI, the real inflation-adjusted All-Time-High for silver is US$ 966.77. Yes, nearly US $1,000!

Following BullionStar’s post on the real inflation-adjusted ATH for silver, many followers of WSB has referenced to US$ 1,000 as the price target for silver.  A ZeroHedge post from today with more than 2.1M views and 9K comments also makes reference to this price calculated by BullionStar while noting that the silver bullion market is one of the most manipulated on earth.

It’s important for banks, central banks and governments to ensure that precious metals prices remain subdued.  This is so because precious metals still indirectly backstops the whole monetary system. If the price of gold and silver were to skyrocket, it would expose that the emperor has no clothes, i.e. that fiat currency is intrinsically worthless.

Central banks and governments have employed a two pronged approach, where on one hand, the money supply is increased via Quantitative Easing to prop up bank and vested interests while on the other hand, the paper price of gold and silver is suppressed.

The QE Defender Game developed by BullionStar illustrates how central banks are propping up banks while suppressing gold and silver prices. Give the game a go and see which level you can reach!

 

Play BullionStar’s QE Defender game that illustrates how the central banks are propping up the banks while at the same time suppressing gold and silver prices.

Physical gold and silver is measured in weight, has intrinsic value due to its metallic and monetary characteristics and is money in the true sense. The currency of today is not backed by anything and has no monetary properties. Its value is dependent merely on a (false) perception of value. While BullionStar accepts cryptocurrency for order settlement of both buy and sell orders, cryptocurrency cannot replace the age-old monetary properties of precious metals as the ultimate wealth asset.

 

BullionStar was one of the first bullion dealers in the world to accept Bitcoin as payment for bullion back in 2014.

Paper Silver Price vs. Physical Silver Price

Silver price discovery, which is how the price of silver is established by the market, is akin to a game of charades. Price discovery is based on paper silver spot trading in London and paper silver futures trading in New York. The whole charade is based on the premise of little to no real physical silver ever changing hands. If holders of paper silver were to demand delivery of physical silver, supply would quickly run out, which is exactly what is happening right now. Historically however, almost all paper silver transactions have been digitally cash settled without anyone ever seeing any silver.

As there is no central market place for the trading of physical silver, the price for physical silver has been inherited from the spot and futures paper markets with an added premium covering the costs for refining, minting, shipping, storage, insurance and retail. With the developments over the last few days of investors shifting away from paper silver and taking delivery of physical silver, the whole market construct for precious metals is changing.

Price Disconnect between Paper Silver Price and Physical Silver Price

Despite the 16.2% silver spot price increase from USD 25.58 a week ago to USD 29.72 at the time of writing, the spot price of silver still does not reflect the demand and supply on the physical silver market.

 

Spot Price of Silver in US Dollars

Over the last few days, we have seen unprecedented demand for silver bars and silver coins at BullionStar. We currently have about 25 customers buying silver from us for every 1 customer selling. Typically, this ratio is about 2-3 customers buying for every customer selling.

To be able to handle the demand pressure, we have had to introduce a minimum order amount of SGD 499 or equivalent in other currencies. Our team members are working around the clock to try to fulfil all orders that have been placed. Our order volume, call volume and email volume is up exponentially, around ten times to normal.

Furthermore, as the silver squeeze and shortage is getting more serious by the hour, we do not expect to be able to replenish many silver products anytime soon.  As the spot price does not match the demand on the physical market, we have had to significantly increase price premiums for silver.

We currently offer Canadian Silver Maples – 1 oz 2021 for a price premium from 29.4 %. This is almost double the premium a few days ago. American Silver Eagles – 1 oz 2021 are offered at a premium of 46%, more than double the premium a few days ago.

Many, if not most, of our competitors worldwide are already sold out of all physical silver bullion. At BullionStar, our strategy is to stock additional physical gold and silver inventory aggressively at higher than normal levels at the first sign of market instability. We therefore still have available supply of the most popular silver products.

Paper Silver Market Default/Failure – Moving to Fixed Prices

As more savers and investors take physical delivery of silver, we believe that there is a significant risk that some of the silver paper markets may default in that they are not able to deliver physical silver in exchange for the paper silver. Baring a full default, the paper price of silver may continue to inaccurately reflect the demand and supply of real physical silver.

With all supply of physical silver drying up at an incredible pace, it is becoming increasingly difficult for us to set prices and price premiums.

Unless the spot spot price of paper silver starts to reflect the real physical equilibrium price of silver,  BullionStar may soon have no option but to abandon setting prices based on silver spot price altogether and move to fixed prices.

Worldwide Shipping of Bullion – Reduced Shipping Rates

With the WSB movement starting in the United States, we note that nearly all US bullion dealers seem to be completely sold out on physical silver.

We are currently experiencing a record inflow of new customers. Setting up a BullionStar account is a straightforward 1 minute process. Simply open an account by filling in your details and start trading physical precious metals.

BullionStar ships bullion to most countries worldwide including the United States. To view shipping rates, add the desired bullion to your shopping cart and go to the checkout where you select “Shipping by Courier” to view the shipping cost.

This article was originally published on the BullionStar.com website under the same title “#SilverSqueeze: Physical Silver Shortage vs. Paper Silver”.

end

Paper silver is slammed in  price erasing most of the gains yet physical silver one oz values rise to around 41.00 Usa/$53.00 cdn per oz.

Paper Silver Slammed, Erases Most Of Monday’s Gains; Physical Premium Remains Extreme

 
TUESDAY, FEB 02, 2021 – 8:49

After getting a lot of attention over the last few days thanks to the so-called Reddit Raiders, topping $30 during yesterday’s trading, (paper) silver prices are fading fast this morning – following CME’s margin hike overnight – erasing almost all of the Monday’s gains.

Monday saw another massive inflow of funds into the SLV (Silver ETF), but we note that the value of the ETF is significantly discounted to its NAV…

And physical premia remain extremely high.

Source: APMEX

But as Peter Schiff pointed out in a recent podcastsilver is a fantastic buy right now even absent the attention of message board investors. In fact, silver was poised to go up even before the Reddit crowd looked its way.

Overall, SchiffGold.com says that the fundamentals are extremely bullish for silver in the long-term, without or without a push from the Reddit Raiders.

 
Steve Brown on the crooked shorts in silver..
 

WallStreetBets is a Crooked Wall Street Con

Steve Brown

Reddit site Wallstreetbetsplayed their emoji tools, fooled by Andrew Ross Sorkin — the Wall Street shill who misled the public about the Bank of Big’s criminal culpability for the crash of 2008-2009 – and Keith Gill, a professional trader who falsely portrayed himself as a beleaguered “little guy” versus the Evil Empire.  And the gamed financial media showed its real influence by perpetually flooding the news cycle with reports of a Brave New World of young rogue traders prepared to lose everything to “save the world”.

Somehow this train wreck of a Wall Street r/wallstreetbets Gamestop scam then got parlayed into a real issue by a viral wallstreetbets post about the criminally gamed silver market which has since been deleted by a moderator (or “moderators” as he falsely states) of wallstreetbets.  Rightly targeting the spot silver market as the most criminally corrupt and suppressed market in the world, someone via wallstreetbets decided to attempt to confront the illegal fixing of the silver market by the London Bullion Market Association and the Bank of International Settlements, and then backed down. That wallstreetbets pushed the silver meme was denied later by the rather suspect character behind reddit’s wallstreetbets forum.

Once it became clear that confronting the Evil Empire on its own turf had much greater implication than gaming an inconsequential hedge fund re Gamestop, whoever came up with the idea of confronting the world’s largest criminal banks quickly retreated and fell back.  But whether knowingly or unknowingly the wallstreetbets meme would enrich America’s most criminal bankperhaps to the tune of many millions, just as it did with Gamestop, potentially $174Mn US in a single day.  How?  By touting shares of an US exchange traded fund based on silver, called SLV, which is run by that very same crooked bank, JP Morgan.

Reddit’s emoji traders – or someone of influence there – decided to focus on SLV as a legitimate fund to purchase, which posed a massive red flag for anyone with knowledge of silver and the silver market.  Gamed for many years, the disgraced trader Max Keiser who worked for Alex Brown and Buzzy Krongard, notorious CIA director as well as  Blackwater benefactor, led the very same scam in 2010 before turning to a new one shortly thereafter.

As a result that disgrace of an @wallstreetbets major scam landed a huge windfall for America’s biggest criminal bank and a host of other financial miscreants, a scandal either ignored or accepted as just part of this MMT insanity, with which we are now forced to live. There is of course no doubt that the illegal fixing of precious metals by the LBMA is an illicit and unlawful practice only considered lawful because it is condoned by the US government and others to protect the currency market. And the idea that rogue traders posing as world saviors on reddit could somehow confront the monetary behemoth ruling the globe — just as they supposedly triumphed over a paltry hedge fund with Gamestop shares (they didn’t) — is of course nonsense, and absurd to the extreme.

But unlike Gamestop, those who did invest in a silver exchange traded fund or in the metal itself must not feel cheated.  With new rules in place to assure gold’s status as a tier one asset, where silver follows gold by an albeit fluctuating ratio, silver fundamentals look promising. Even though the Fed bases inflation on Bureau CPI with high weighting to low fuel prices (when inflation was high and fuel costs were rising, the Bureau left out food and fuel in its CPI figures for the Fed) the fact is that inflation is running rampant, whether the Federal Reserve cares to admit it or not.

There is nothing wrong with an investment which represents real intrinsic value in an honest market.  However the issue becomes critical when the market is dishonest, and those gaming it are just as verifiably crooked, with their own agenda to defraud the public.

Your early TUESDAY 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 6.4567 /

//OFFSHORE YUAN:  6.4606   /shanghai bourse CLOSED UP 28.40 PTS OR .81%

HANG SANG CLOSED UP 355.84 PTS OR 1.23%

2. Nikkei closed UP 271.12 POINTS OR 0.97%

3. Europe stocks OPENED ALL GREEN/

USA dollar index RISES TO 91.14/Euro FALLS TO 1.2032

3b Japan 10 year bond yield: RISES TO. +.06/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 105.04/ 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:: 54.82 and Brent: 57.62

3f Gold DOWN/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 -.48%/Italian 10 yr bond yield UP to 0.64% /SPAIN 10 YR BOND YIELD UP TO 0.11%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.12: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 0.66

3k Gold at $1841.70 silver at: 27.60   7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble DOWN 142/100 in roubles/dollar) 78.47

3m oil into the 54 dollar handle for WTI and 57 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 105.04 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 .8983 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0807 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 0.48%

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 1.110% early this morning. Thirty year rate at 1.884%

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

6.  TURKISH LIRA:  UP  TO 7.17..

Futures Surge Above 3,800 As Short Squeeze Fizzles; Attention Turns To Stimulus

 
TUESDAY, FEB 02, 2021 – 7:48

US equity futures have continued their Monday rally, rising above 3,800 as the collapse in most shorted stocks continued, with European indices firmer following the positive Asian session…

… while silver slid from an eight-year high as the latest short squeeze reversed.

Sectors are broadly in the green though oil & gas is among the laggards as BP’s update offsets much of the positivity from crude benchmarks themselves. In top geopolitical news, China top diplomat Yang warned the U.S. not to cross the country’s “red line,” in a pointed speech that pushed back against early moves by President Joe Biden to press Beijing on human rights. The Dollar index continues to make ground above 91.00 this morning pressuring major counterparts but particularly so against the EUR which is also hindered via EUR/GBP action in-spite of firmer than expected GDP data. Overnight, the RBA maintained its key rate at 0.10% as expected but unexpectedly announced it is to extend its QE purchases by AUD $100BN. Looking at today’s session highlights include OPEC JTC meeting and speeches from Fed’s Kaplan, Williams, Mester, we also get earnings from Amazon, Exxon, Alphabet.

At 07:00 a.m. ET, Dow E-minis were up 247 points, or 0.82%, S&P 500 E-minis were up 32.5 points, or 0.86% and Nasdaq 100 E-minis were up 109.75 points, or 0.84%, building on the previous session’s momentum, as investors anticipated strong results from Amazon and Google-parent Alphabet while also looking for signs of progress on a pandemic-relief package. Alphabet, which will report the cost and operating profit of its Google Cloud business for the first time, added 1.3% premarket, while retail behemoth Amazon.com Inc gained 1.2%. Both companies, which report Q4 earnings after market close, have jumped more than 7% each after strong earnings from rest of the FAANG group last month. Ford added 2% after the U.S. automaker said it will invest $1.05 billion in its South African manufacturing operations, including upgrades to expand production of its Ranger pickup truck. Shares of Exxon Mobil rose 1.5% ahead of its results scheduled before the bell, which are expected to be marred by a charge of up to $20 billion on the value of its natural gas properties.

Meanwhile, the massive short squeeze appears over: “meme” stocks GameStop, AMC and Nokia tumbled between 23% and 30%, while miners Hecla Mining Co and Coeur Mining tracked a fall in spot silver prices. This was offset by buoyant mood in the broader market as President Biden and congressional Democrats signaled they’re intent on a large pandemic relief bill, and there’s clear evidence that the virus case numbers are starting to decline. The U.S. has been administering shots at a faster daily rate than any country in the world, giving about 1.34 million doses a day, according to data gathered by Bloomberg.

“We remain positive on risky assets. A combination of easy monetary and fiscal policy when the recovery is gaining momentum should bode well for them,” said Mohit Kumar, strategist at Jefferies International. “While it is still not clear whether the retail-led volatility is behind us, our view is that the impact should be temporary.”

Global markets were also buoyant: MSCI’s world equity index was 0.4% firmer after posting its strongest day in three months on Monday. European equities rallied from the open; with the Euro Stoxx 50 rising over 1.5% and the Stoxx 600 up 1.1%; the CAC 40 outperformed at the margin. Autos, travel and financial services are the best performers. Miners are the sole sector in the red. Shares in BP lost 3.8% after it plunged to a $5.7 billion loss last year, its first in a decade. The Stoxx 600 Automobiles & Parts index rose as much as 3.1%, the most since Dec. 15, led by gains for parts suppliers and Stellantis after it was initiated with a buy rating at Goldman Sachs. Airbus shares gain as much as 6.6%, the most since November, after Morgan Stanley upgraded the plane manufacturer to overweight on a positive view about its production plans.

Earlier in the session, Asian stocks rose for a second day, following a rally in U.S. peers as concerns eased that the recent turmoil spurred by speculative buying will derail the bull market. MSCI’s index of Asia Pacific stocks outside Japan rose 1.5%, with China’s benchmark CSI300 Index climbing 1.5%, helped by easing concerns about tight liquidity and falling cases of new coronavirus infections. Japan’s Nikkei 225 added 1%. Vietnam, India and Taiwan led gains among national benchmarks. Chipmakers TSMC and Samsung were among the biggest drivers of the MSCI Asia Pacific Index. Hong Kong stocks also advanced, boosted by Tencent after its chairman Pony Ma was praised in state media for his entrepreneurship. India stocks gained more than 2.4%, one day after the nation’s key stock gauges recorded their biggest budget-day gains in at least two decades

Global market are buoyant ahead of negotiations Tuesday between U.S. President Joe Biden and Republican senators on a new COVID support bill. The GOP’s $618bn stimulus plan released early Monday was about a third the size of the President’s proposal. Top Democrats later on Monday filed a joint $1.9 trillion budget measure in a step toward bypassing Republicans.

“If you have the ability to have stimulus compromise it’s going to be very supportive for financial assets in the medium term as it means you will have the ability to have an economic recovery,” said Francois Savary, chief investment officer at Swiss wealth manager Prime Partners. “The $1.9 trillion was set as a high bar of the possibilities and in a way to get into a negotiation to get something that would be smaller and more efficient.”

In FX, the dollar hovered near a seven-week high, benefiting from a euro selloff overnight after coronavirus lockdowns choked consumer spending in Germany, and on short-covering in over-crowded dollar-selling positions. The Bloomberg dollar index slipped for the first time in three days while Treasuries extended declines as progress in U.S. coronavirus vaccine rollout bolstered risk appetite across markets. Reports of productive talks on additional U.S. stimulus also boosted sentiment. Against the U.S. dollar, the euro was trading at $1.2078, just above an early December low of $1.2056 hit in the previous session. The Australian dollar pared gains after the country’s central bank said it will extend its quantitative easing programme to buy an additional $100 billion of bonds. The Aussie last stood at $0.7627, nearly flat on the day.  Turkey’s lira firmed more than 1%, extending a rally after the central bank promised tight policy for an extended period last week.

In rates, Treasuries were under pressure led by long-end of the curve amid risk-asset rally in which S&P 500 futures exceeded Monday’s high. Yields cheaper by ~3bp across long-end of the curve, steepening 5s30s by as much as 1.7bp to widest level since November 2016; 10-year yields around 1.11% with gilts lagging by 0.5bp. Thirty-year yield came within 3bp of its YTD high; 5s30s within 2bp of its November 2016 high. Gilts lag following 2026 and 2071 bond sales, with U.S. set to make 1Q refunding announcement Wednesday.

In commodities, silver prices slipped 4.8% to $27.59 per ounce, as investors locked in profits after the precious metal touched a near eight-year peak in the previous session driven by retail investors. Spot gold fell 0.6% Tuesday to $1,847.51 per ounce.

Brent crude was up 1.1% at $56.95 a barrel. WTI gained 1.2% to $54.22 as falling inventories and rising fuel demand due to a massive snow storm in the Northeast United States propped up prices.

Looking ahead, investors will also be paying close attention to earnings, with Amazon.com Inc. and Google parent Alphabet Inc. among companies releasing results on Tuesday.  About 84% of the 186 S&P 500 firms that have reported so far have topped estimates for earnings, well above the 75.5% beat rate for the past four quarters, according to Refinitiv IBES data.

Market Snapshot

  • S&P 500 futures up 0.8% to 3,797.00
  • MXAP up 1.3% to 210.35
  • MXAPJ up 1.5% to 711.19
  • Nikkei up 1.0% to 28,362.17
  • Topix up 0.9% to 1,847.02
  • Hang Seng Index up 1.2% to 29,248.70
  • Shanghai Composite up 0.8% to 3,533.69
  • Sensex up 2.4% to 49,755.65
  • Australia S&P/ASX 200 up 1.5% to 6,762.60
  • Kospi up 1.3% to 3,096.81
  • German 10Y yield rose 3.7 bps to 0.497%
  • Euro little changed at $1.2070
  • Italian 10Y yield fell 4.1 bps to -0.510%
  • Spanish 10Y yield rose 12.6 bps to 0.107%
  • Brent futures up 1.2% to $57.01/bbl
  • Gold spot down 0.7% to $1,847.26
  • U.S. Dollar Index little changed at 90.90

Top Overnight News

  • China’s top diplomat warned the U.S. not to cross the country’s “red line,” in a pointed speech that pushed back against early moves by President Joe Biden to press Beijing on human rights
  • U.K. Prime Minister Boris Johnson’s government is sticking to an election promise not to hike taxes on wages and sales next month, rejecting pressure to increase revenue to tackle the record deficit run-up during the coronavirus pandemic, according to a person familiar with the matter
  • The euro areas GDP declined 0.7% in the fourth quarter, compared with estimates for a 0.9% drop. Germany and Spain both posted surprise economic expansions in reports last week. Italy reported a contraction of 2% earlier on Tuesday
  • A fledgling format for selling bonds that ties margins to a borrower’s progress in doing business in ways that protect the planet is set to boom this year — but won’t work for everyone, according to a sustainable debt specialist at HSBC Holdings Plc. Companies trying to configure so-called sustainability-linked bonds can run into technical obstacles such as not being able to meet environmental targets before the debt matures
  • After a surge in silver futures to the highest in almost eight years, traders are still trying to solve a mystery: Who penned the Reddit posts that ignited this staggering run-up in prices — and why were they taken down?

A quick look at global markets courtesy of Newsquawk:

Top Asian News

  • Hong Kong Retail Sales Plummet After New Virus Restrictions
  • Turkey Arrests Dozens of Students Protesting Erdogan’s Pick

European stocks see another session of gains (Euro Stoxx 50 +1.8%) as the optimism seen in APAC hours echoes into Europe, with the regional sentiment also underpinned amid less severe-than-feared EZ Flash GDP figures; following better than expected releases out of France, Germany etc. This has lead to a mild outperformance in the EZ relative to the US – where futures trade with broad-based gains of around 1% – whilst the UK’s FTSE (+0.8%) and Switzerland’s SMI (+0.9%) tail their Euro-peers. Sticking with the FTSE 100, the index is capped by somewhat unfavourable Sterling dynamics whilst bearing the brunt of losses in heavyweight BP (-3.2%) post-earnings, who missed on adj. net expectations but noted that organic capex last year was in-line with guidance. For reference, BP has around a 3% weighting in the FTSE 100. The downside in the crude giant is also reflected in the Energy sector which underperforms; but, with peers underpinned on the performance of crude itself. Broader sectors are all in positive territory and portray a risk-on bias as cyclicals (ex-oil) outpace defensives – with Auto names leading the gains, closely followed by Travel & Leisure and financial services. Basic resources reside among the laggards as base metal prices pull back before the Chinese Spring Festival and as precious metals unwind a lion’s share of yesterday’s gains. In terms of individual movers, Airbus (+6%) shares soar following an upgrade at Morgan Stanley. On the flip side, Fresenius Medical Care (-13.9%) plumbs the depths as the group anticipates a significant negative impact on 2021 net income from accelerated COVID-19 related mortality of dialysis patients. Fresenius SE (-6%) moves lower in sympathy as it owns some 32% of Fresenius Healthcare – with both companies accounting for around 3% of the DAX (+1.25%).

Top European News

  • Euro-Area Economy Shrank Less Than Forecast at End of 2020
  • Insider-Trading Suspects Can Stay Silent, EU Top Court Rules
  • Italian Economy Shrank at End of 2020, Underperforming Peers

In FX, bullish risk sentiment and hefty 1.4 bn option expiry interest at the 0.7600 strike appear to have rescued the Aussie from a steeper decline in wake of an unexpectedly dovish RBA policy meeting where QE was extended pre-emptively beyond April by another Aud 100 bn and guidance on rates indicated no tightening until 2024 at the earliest. However, 1.0600 in Aud/Nzd may not be impenetrable as the Kiwi rebounds from 0.7150 vs the Greenback on the aforementioned positive market tone ahead of NZ jobs data that could rubber stamp the recent removal of NIRP expectations for the RBNZ or rekindle forecasts for further easing this year. Conversely, more hawkish commentary from the CBRT, including the potential for extra front-loaded and decisive tightening if needed to get inflation back on track, gave the Lira sufficient impetus to extend its recovery through 7.2000 and 7.1500 before waning just above 7.1000 awaiting any backlash from Turkish President Erdogan who has reverted to his anti-rate hike standpoint, and as the Dollar rebounds broadly.

  • USD – As noted above, the recovery in high beta rivals and positive market tone sapped some momentum from the Buck that might otherwise have gleaned traction from the relatively pronounced and ongoing loss of attraction in Silver and its fellow precious metals, as Xag/Usd dips under Usd 27.50/oz vs a fraction over Usd 30 at one point yesterday. Nevertheless, the DXY has derived fresh impetus from renewed weakness in the Euro to surpass 91.100 vs 90.805 at one stage and the index has now been up to 91.123 compared to 91.063 late on Monday and an early EU session best of is now hovering midway between peak and 90.805 trough.
  • CAD/GBP – Not quite all change, but the Loonie and Pound have pared a chunk of losses against their US counterpart from sub-1.2850 and circa 1.3660 to reclaim the 1.2700 handle and retest 1.3700 respectively, with the former receiving some support from firmer crude prices and latter via improving pandemic and vaccine developments. Moreover, Sterling seems to have survived spill-over RHS demand in Eur/Gbp, albeit with relative Euro underperformance as the cross reverts to type and eyes 0.8800 to the downside.
  • CHF/EUR/JPY – All choppy vs the Buck, as the Franc hovers within a 0.8979-48 range mindful of latest verbal intervention from SNB chair Jordan, but Euro fails to keep its head above 1.2050 following another hiccup in efforts to form a new Italian Government coalition or get respite from better than feared EZ GDP data and another rise in inflation expectations via the favoured 5 year/5 year long term metric. Meanwhile, the Yen is struggling regroup after the loss of technical support and slip below 105.00 in advance of Japan’s services PMI and an announcement from the PM about COVID-19 restrictions that is anticipated to extend the state of emergency.
  • SCANDI/EM – More Nok outperformance on chart and oil grounds, while the Sek mulls latest dovish Riksbank inferences and EMs beyond the Try are benefiting from the general appetite for risk, with the Czk also acknowledging Czech Q4 GDP defying lowly expectations to a degree.

In commodities, WTI and Brent front month futures trade firmer as the complex tracks gains seen across the stock markets as sentiment remains constructive following the EZ flash GDP figures and heading into the US entrance. The broader environment remains unchanged as participants weigh COVID variants’ impacts against vaccines and OPEC+ supply balancing. On that note, the JTC meeting will take place today ahead of tomorrow’s JMMC confab, with no change expected to current policy given that the producers came to an accord for Q1 in January, whilst fundamentals also remain largely the same since the prior meeting. In terms of commentary, BP expects oil demand to recover this year, but the speed and degree will depend on government policies and individual activity as vaccines are rolled out, “From the oil supply side, limited growth from non-OPEC+ countries coupled with active market management from OPEC+ means that for 2021 we anticipate a normalization of the currently high inventory levels.”, the energy giant says. Looking ahead to today, the weekly Private Inventories after the US close may induce price action ahead of tomorrow’s EIA release – until then, sentiment will likely drive price action barring any major crude catalysts. WTI resides just above USD 54/bbl (vs low USD 54.50/bbl) while its Brent counterpart probes USD 57/bbl (vs low USD 56.20/bbl). Elsewhere, previous metals reverse a bulk of yesterday’s gains, with spot silver losing its shine as it declined from yesterday’s USD 30/oz+ best levels to sub-28/oz in early European trade, with some citing a margin hike by the CME as one of the catalysts. Spot gold meanwhile is slightly more composed on an intraday basis around USD 1850/oz (vs high USD 1862/oz). Base metals meanwhile are trending lower with LME copper eyeing USD 7,750/t to the downside heading into anticipated holiday-induced demand drops as China heads into the Spring Festival.

US Event Calendar

  • Jan. Wards Total Vehicle Sales, est. 16.2m, prior 16.3m
  • 1pm: Fed’s Kaplan Discusses Economy
  • 2pm: Fed’s Mester to Give Remarks on Labor Market

DB’s Jim Reid concludes the overnight wrap

It had to happen. Given its now February, and given I’m not going into the concrete jungle that is London at the moment, my hay fever was always just round the corner. Last night I had a bad sneezing fit and very itchy eyes. Since I moved out of London over a decade ago I now get bad hay fever anytime from mid January to early February. It is the strangest thing when it’s so cold outside. It’s been a little delayed this year as I’ve hardly been outside. However those little pollen bits have penetrated my cocoon. Time for the antihistamine.

Whatever medicine the market took over the weekend it worked as after experiencing their worst week since October, global equity markets got February off to a strong start as concerns eased over the broader market impact of retail investors. Indeed by the end of yesterday’s session the S&P 500 gained +1.61%, recovering almost all of Friday’s losses, as tech stocks led the advance with the NASDAQ up +2.55% ahead of earnings releases from Amazon and Alphabet after the US close today. The rally was broad-based with roughly 80% of the S&P 500 gaining on the day and all but two of the 24 S&P industry groups gaining. It was the best day for the S&P since late November and the best day for the tech-concentrated NASDAQ since early January. With the risk-on tone, equity volatility subsided and the VIX index fell -2.85pts to 30.24. The volatility index has now been above 30 for the past 4 sessions though, for the first time since the run up to the US elections.

It was much the same story in Europe too, where the STOXX 600 (+1.24%), the DAX (+1.41%) and the CAC 40 (+1.16%) all moved higher, while other risk assets like Brent crude (+0.84%) and WTI (+2.59%) oil prices also benefited. A reminder though that a weak January for equities does have omens for the rest of the year if 150 years of US equities returns are to be believed. See here for the CoTD on this from yesterday.

Amidst the broader equity rally, many of the Reddit-fuelled trades from last week lost ground yesterday, with GameStop falling -30.77% as investor interest moved elsewhere. Other darlings of the message board managed to battle back as Nokia (+7.24%) and Blackberry (+3.76%) rose after whipsawing between losses and gains. However more of the focus of the WallStreetBets forum was on silver after starting on this trade in the middle of last week. The metal rose +7.65% in its best day since August, having at one point been on track for its best daily performance (+11.4% at the intra-day highs) since 2008. The surge sent the ratio of gold to silver prices down to its lowest level since 2014. Silver miners like Hecla (+28.30%), First Majestic Silver Corp (+22.08%) and Silver One Resources (+30.43%) saw major gains on the back of the move, with traders again targeting heavily shorted names. Overnight silver is down -1.96% after the CME Group hiked trading margins by c.+17.9% on silver futures contracts. The exchange said that the decision was based on “the normal review of market volatility to ensure adequate collateral coverage.” It’s fair to say it’s going to be easier to move the mining stocks than the underlying metal given the relative deepness of the securities.

Overnight in Asia markets have continued to move higher with the Nikkei (+0.85%), Hang Seng (+1.54%), Shanghai Comp (+0.47%) and Kospi (+1.12%) all up. Futures on the S&P 500 are also up +0.53%. Elsewhere, Brent crude oil prices are up +1.03%.

US 10yr yields are +0.7bps overnight following a +1.4bps increase yesterday as President Biden met with 10 Republicans senators about their $618bn stimulus offer, one that is substantially smaller than Biden’s proposal. The President and Senate Republicans agreed to continue talks, though it was unclear whether either side was ready to budge. The ranking Democrat on the Senate Finance Committee, Mr Wyden, called the Republican plan a ‘non-starter’, indicating that it does not do enough. These comments were echoed by Senate Majority leader Schumer, who again said that Democrats would use budget reconciliation if needed. In case the White House and Senate Republicans cannot find a quick resolution to their differences, House Democrats yesterday moved forward with plans to prepare their own relief legislation. This would be a bill that could pass through both chambers of Congress without Republican support, but would be missing some of the original staples of President Biden’s proposal – most notable the $15 minimum wage and repealing a cap on state and local tax deductions.

Back to fixed income and we did see the 5s30s yield curve climb to its steepest level in nearly 5 years, and the dollar index strengthen +0.44% to a 7-week high. Meanwhile in Europe Italian BTPs were the outperformer, with yields down -2.2bps as investors remained unconcerned by the continued government formation process. In terms of the latest, the lower house speaker, Roberto Fico, has until today to report back to President Mattarella following his consultations with the political parties, but things appear to be moving towards a resolution, with the risk of early elections remaining low. Other government bonds such as German 10yr bunds (+0.2bps), French OATs (+0.1bps) and UK gilts (-0.6bps) were little changed on the day.

In the UK, cases of the South African variant were found amongst those who didn’t have any travel links, leading to residents in a number of areas being asked to take tests, irrespective of whether they’re displaying symptoms. In better news however, the number of new daily cases in the country fell below 20,000 for the first time in over 6 weeks, which comes after 4 weeks of lockdown and a month of excellent vaccine rollouts. Yesterday German Chancellor Merkel promised all Germans would be offered a vaccine by the end of the September even if no new vaccines were approved. Meanwhile in the US, a snowstorm in New York City has led to the cancellation of all vaccination appointments both yesterday and today. The 7-day rolling count of new cases in the US fell to its lowest level since mid-November, as the holiday travel bump subsides and various mobility restrictions show their effect. Also yesterday the US announced that more Americans have now received at least one dose of vaccine (26.5mn) than the total number of residents who have tested positive for the virus over the past year (26.3mn). This comes as the country is now averaging just over one million doses per day.

The main data highlight yesterday were the manufacturing PMIs, albeit there weren’t that many surprises given we’d already had the flash readings from the major economies. In terms of the main numbers, both the Euro Area (54.8) and the US (59.2) manufacturing PMIs were revised up a tenth from the flash readings, while the ISM manufacturing reading fell more than expected to 58.7 (vs. 60.0 expected). One notable thing in that release was the prices paid index, which rose to 82.1 in January (vs. 76.0 expected), which is the highest since April 2011. Elsewhere, German retail sales fell by a larger-than-expected -9.6% (vs. -2.0% expected) in December.

To the day ahead now, and data releases include the Q4 GDP figures for the Euro Area and Italy, along with preliminary January CPI from France. Central bank speakers include the ECB’s Hernandez de Cos, as well as the Fed’s Kaplan and Mester. And earnings releases include Amazon, Alphabet, Pfizer, Exxon Mobil, Amgen, UPS and Alibaba.

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/MONDAY NIGHT: 

SHANGHAI CLOSED UP 28.40 PTS OR .81%   //Hang Sang CLOSED UP 355.84 PTS OR 1.23%    /The Nikkei closed UP 271.12 POINTS OR 0.97%//Australia’s all ordinaires CLOSED UP 1.51%

/Chinese yuan (ONSHORE) closed UP AT 6.4567 /Oil UP TO 54.82 dollars per barrel for WTI and 57.62 for Brent. Stocks in Europe OPENED ALL GREEN//  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4567. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4606 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/GREAT BRITAIN

China slams the British for allowing Hong Kongers being made eligible for UK citizenship

(zerohedge)

China Slams British “Brazen Thieves” As Hong Kongers Made Eligible For UK Citizenship

 
TUESDAY, FEB 02, 2021 – 10:35

Britain has started accepting applications for its program to hand out British Overseas Visas to eligible Hong Kongers, and as the first of what could become millions apply, Beijing is less than pleased, and is once again lashing out. The CCP was so enraged by the UK’s challenge to China’s geopolitical power that it barred visitors holding UK passports last week, and on Sunday they slammed London’s decision as “the logic of a brazen bandit.”

The CCP accused London of breaking promises made during the handover to Hong Kong, which is ironic considering China was supposed to allow Hong Kong to enjoy its Democratic freedoms under the “One Country, Two Systems” doctrine, which is in effect, legally speaking, until 2047.

London’s offer of a path to citizenship for some 5.2MM Hong Kongers follows Beijing’s imposition of a National Security law that outlawed any talk “secessionist” or “foreign-influenced” activity. Demands for western style Democracy seemed to be at the top of the new list of forbidden topics. The NatSec law followed months of unrest in Hong Kong, which had finally started to die down before COVID-19 rocked the world after escaping from Wuhan.

In a statement released shorty after the UK opened up the applications, a cabinet-level Hong Kong and Macau Affairs Office issued a “strong condemnation” of the move, accusing London of trying to turn millions of Hong kongers into “second-class citizens (kind of like China is doing with the Uyghers?). /p>

Essentially, Beijing repeated Beijing’s own accusations and insults right back at it.

The office said the policy amounted to a breach of the Sino-British Joint Declaration, a treaty signed by both countries in 1984 which set out the ground rules for Hong Kong’s development after its return to China in 1997. “The British side did not keep its promise…and even brazenly claim it was out of its respect for its historical relationship and friendship with Hong Kong to beautify its history of invasion and colonisation,” it said.“This is the logic of a brazen bandit. This is an open affront to the sovereignty of China. We sternly oppose that.” Beijing’s liaison office in Hong Kong also accused Britain of violating China’s sovereignty and international law.

Britain first announced the plan back in July. At the time, many educated and wealthier workers said they fully intended to leave HK and possibly never come back. It’s not clear so far how many have signed up. Many Hong Kongers told the SCMP they would wait until Feb. 23 when the British government has said it would build a smartphone app.

Some families told the SCMP they were torn between wanting to leave, but lackling a plan for how to make money and survive once they arrive.

Others told the SCMP they were worried about being snitched out to the CCP and Beijing for expressing interest in leaving.

END

4/EUROPEAN AFFAIRS

Europe

My goodness:  a dosing debacle for Astra Zeneca

(zerohedge)

AstraZeneca Failed To Inform Clinical Trial Participants About Dosing Debacle: Report

 
TUESDAY, FEB 02, 2021 – 4:15

With the AstraZeneca-Oxford vaccine having encountered its fair share of setbacks and delays – between the German government questioning age restrictions, and other EU nations turning to offerings from Russia and China amid production delays, a new embarrassment has emerged.

According to Reuters, approximately 1,500 volunteers in a late-stage clinical trial were kept in the dark after they were given “about a half dose due to a measuring mistake by Oxford researchers.” Instead of fessing up, Chief researcher, Andrew Pollard, played it off in a June 8 letter to trial subjects as ‘an opportunity for Oxford researchers to learn how well the vaccine works at different doses.’ There was no acknowledgement of the error, nor did Pollard tell the participants that the issue had been reported to British medical regulators – who then required that Oxford add another test group to the study which would receive the full dose, in line with the original plan. The dosing error was made public on December 24.

Reuters shared the letter – which it obtained from the university through a Freedom of Information request – with three different experts in medical ethics. The ethicists all said it indicates the researchers may not have been transparent with trial participants. Volunteers in clinical trials are supposed to be kept fully informed about any changes.

“They are not clear at all about what they need to be clear about – what’s going on, what they knew, the rationale for undertaking further research,” said Arthur L. Caplan, founding head of the Division of Medical Ethics at New York University Grossman School of Medicine. “It is lost in a snowstorm of verbiage.”

Steve Pritchard, a spokesman for Oxford, told Reuters: “The half-dose group was unplanned, but we did know in advance that there was a discrepancy in the dose measurements and discussed this with the regulators before dosing and when the dosing was revised.”

Pritchard also said, “We have not stated that a dosing error occurred.

Pollard didn’t respond to a request for comment. –Reuters

The company’s assertion that no error was made is directly contradicted by documents produced by Oxford and AstraZeneca. In December, Reuters reported that a “Global Statistical Analysis Plan” by Oxford/AstraZeneca, dated Nov. 17 and later published in the scientific journal The Lancet, called the dosing discrepancy “a potency miscalculation.

Britain’s Health Research Authority – responsible for approving medical research and ensuring it is ethical – said in a statement that changes to the study design and the letter sent to participants were approved by one of its ethics committees. (As an aside, the vaccine was recently approved for authorization in a growing number of countries, including the UK, the EU and India. The UK became the first country to approve it, and began rolling out the vaccine on Jan. 4).

Once the interim results were in following the dosing debacle, the picture got even more muddy: 90% efficacy was seen for people that received the first half dose while the rate for those who received two full doses was 62%, totally confounding researchers. Altogether, the efficacy for both groups combined was 70.4%.

One medical ethics researcher quoted by Reuters described the “mishap” as a potential breach of trust if participants and other researchers were told that the half-dose was an intended, mis-dosing, not accidental. “Presenting the dosing variation as a planned change in the study is potentially a breach of trust if in fact the dosing resulted from an error. The letter makes clear the dosing change but not the reason for the change.”

Not a good look when public acceptance of any vaccine requires the utmost confidence.

end

Eurozone Economy Contracts In Final Quarter Of 2020

 
TUESDAY, FEB 02, 2021 – 10:20

By Maartje Wijffelaars, Economist at Rabobank

Summary

  • The Eurozone economy contracted with 0.7% q/q in the final quarter of last year
  • This means the economy shrank 6.8% in 2020, which is less than expected after the gigantic losses in the first half of the year
  • Going forward, the apparent resilience of the economy, very much reinforced by government support measures, bodes some comfort
  • That said, the third wave and accompanying containment measures likely lead to another GDP contraction in Q1
  • Moreover, new mutations, a slow vaccination trajectory and resurfacing supply chain issues could hamper the recovery for some time longer

Economy contracts in Q4

This morning’s GDP figure for the Eurozone shows the economy contracted in the final quarter of last year with 0.7% q/q (figure 1) and 6.8% in 2020 as a whole – compared to 3.7% in 2009 (figure 2). Hence the second COVID wave that started end-summer delayed the recovery, as expected, but the overall economic drag of the virus upsurge was smaller than the consensus only a few weeks ago. This story that holds for most member states, as we also explained in a note last Friday. Spain outperformed the group with small growth of 0.4% q/q, while Austria was the weakest link, contracting by 4.2% q/q.

A breakdown into expenditure components or sectors for the Eurozone is not yet available. But based on member states’ data, we know that the service sector took a small hit, while manufacturing sector activity increased. Both activity in the service sector and the manufacturing sector seem to have performed better than expected. There are several reasons, yet an important one is that in general the economy seems to be better able to cope with restrictions than expected based on experience in Q2: more restaurants do take-away, more shops sell online – more people buy online -, and working from home facilities have improved.

This resilience gives some comfort going forward, but it is unlikely to prevent another contraction in Q1. With Eurozone governments fighting the third wave in the pandemic, including more contagious mutations, containment measures have been extended well into the first quarter and even intensified in some countries (figure 3). Furthermore, delays in the administration of vaccines could delay the gradual opening of the economy even further. Moreover, current experience in Israel – with over 30% of its population having been inoculated – shows that it could still require tough containment measures for some time even if a substantial share of the population has been vaccinated. Another risk to the outlook is that the resurgence of supply chain issues, could hamper manufacturing production, investment and consumption over the coming months.

Supply chain issues on the horizon

According to January’s manufacturing PMIs, supplier delivery times reached their highest degree since April due to disruptions in supplies coming from Asia. Paradoxically this pushes up the overall PMI figure as in ‘normal’ times longer delivery times are an indication of rapidly increasing demand. Hence the still upbeat manufacturing PMI figure should be viewed with a pinch of salt (figure 4). Especially producers of consumer goods are said to be struggling. The lack of new supplies has already led to destocking at manufacturing companies to levels last seen 2.5 years ago, although not yet to last decade lows – according to ECFIN business surveys.

To add some more colour, recently, the spot prices for containers from China have skyrocketed on the back of a container shortage caused by the crisis (figure 5 and 6). Containers still reside unoffloaded in ports in the US and Europe. Additionally, some large shipping companies have withdrawn a part of their fleet during the first wave of infections in April. Combined with increased demand during Q3 and Q4 of 2020, prices have been pushed upwards from two directions.

Not every company is equally vulnerable to higher transport prices however. First, larger companies often have long-term service contracts, whilst smaller companies often have to deal with subcontractors that update their prices more frequently. Second, some companies are more dependent on intermediate goods from China and Eastern Asia than others. Companies in the computer, electronics & electrical equipment sector for example, are very dependent on Chinese intermediate goods (figure 7), whilst virtually every agricultural intermediate product comes from within Europe. Third, retailers dealing in seasonally dependent products, such as fashion, are potentially at a greater disadvantage, since goods might arrive only once the season has passed.

Uncertainty continues to cloud the outlook

All in all, with the lockdown measures known at this point and carry-over effects, we stand by our forecast for a further drop in Eurozone GDP in the first quarter of 2021, in the order of -0.5 to -1.5% q/q and some recovery in the second quarter. Clearly this forecast is surrounded with quite some uncertainty, not least due to the large dependence on how the virus and vaccination strategy evolve and the uncertainty in estimating timing and exact impact of current supply chain bottlenecks.

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Iran

Not good: Iran launches a new satellite carrying rocket. Biden not a happy camper as his plan to restore nuclear deal falters

(zerohedge)

Iran Launches New Satellite-Carrying Rocket As Biden Plan To Restore Nuclear Deal Falters

 
MONDAY, FEB 01, 2021 – 23:00

In a first since the Biden administration entered the White House, Iran has successfully launched its newest domestic built satellite-carrying rocket, named Zuljanah.

Iranian state TV while not specifying the exact date featured video of the launch Monday which occurred in a daytime desert setting. “State TV said the rocket is capable of carrying a 220-kilogram (485-pound) satellite, adding that the three-stage rocket uses solid fuel in the first and second stages and fluid fuel in the third,” according to the AFP.

The launch was a test hailed by officials as utilizing the Islamic Republic’s “most powerful rocket engine”.

An Iranian defense ministry statement said “the test helped Iran to achieve its most powerful rocket engine… the rocket can be launched using a mobile launching pad.”

“It is capable of carrying a single 220 kg satellite or up to 10 smaller ones” with the rocket itself capable of reaching a height of 310 miles, according to the statement.

And state TV added: “The Zuljanah is able to reach a height of 500 km … The three-stage satellite launcher uses a combination of solid and liquid fuels. It uses solid fuel in the first and second stages and fluid fuel in the third stage.”

It is precisely the type of launch previously condemned by the prior Trump administration as a breach of past nuclear deal related commitments. The past administration had accused Iran of seeking to develop nuclear capable ballistic missiles under the guise of its “peaceful” space program.

Iran has in recent years sent small satellites into space, namely the IRGC’s Noor last year successfully put into orbit.

It’s also expected this latest test will come under Western condemnation at a sensitive moment Iran and the US are teasing the possibility of restoring the 2015 nuclear deal (JCPOA), but with each side telling the other essentially “you move first”.

The timing is further interesting given Tehran appears to be continuing to develop leverage aimed at getting Biden to quickly lift sanctions and finally return to the JCPOA.

At the start of this week US Secretary of State Antony Blinken told NBC News that the administration hopes to negotiate a “longer and stronger” deal, but only after Iran returns to compliance.

At the same time, Tehran is telling the White House that it must drop the Trump-era sanctions first. Blinken’s statements also grabbed attention because of the following:

During the interview, taped on Sunday, Blinken said Iran was months away from developing enough nuclear material to create a bomb, in “a matter of weeks”, if Iran continues to lift restraints put in place by the 2015 deal.

However, this has pretty much been the same refrain across multiple administrations going back years.

end

Xi and Putin make the case for win-win vs. zero-sum | The Vineyard of the Saker

This is a most stark revealing statement about the strategy of China for hegemony dominance. The digital highway going forward  is far more important than other monetary transfer means. Especially with the advent of Digital currencies on blockchain for settlement in trade. The singularity of a single digital currency as settlement is not often enough considered as a form of dominance of a supply chain dependent on the the means and utility of the settlement. Countries who sign up without alternatives will leave themselves open to exploitation by China. In particular because most of the participants hold USD denominated debt at a country and company level. Any foreseeable shortage of dollars in this regard for debt servicing will lead to undue influence. And one can see that today China itself is living through a dollar crisis of its’ own with a distinct shortage of dollar liquidity. This is currently a combination of decreased global demand for Chinese products while at the same time the length of time Chinese companies have to carry inventory has stretched by at least 60 days in containers not being able to be off loaded at ports. And it remains to be seen if such goods actually translate into receivables that can be financed or are cancelled. One light imagine that having your inventory of spring products sitting on a container at sea might not be of use if the products do not arrive until summer. We await to watch this calamity in the making as the producers will eat the cost of production if timely delivery is not possible rendering much inventory as impaired as to value. At the same time China has desperately attempted to build their own consumer economy at the expense of the western world who has discovered lockdown madness. Effectively reducing their consumption of goods and services and rendering their economies to decline. Many countries on the highway risk similar fate in future as China attempts to further acceptance of the Yuan in settlement at the expense of the dollar. 

So what happens if at some point digital money is based on gold or some other fixed value point becomes the standard for settlement amongst the countries connected? And those countries not connected are excluded from preference settlement for trade? Similarly those connected give up currency settlement for trade to the party(s) controlling the highway of settlements as 3 things count: speed of settlement; stability of value; and depth of availability of currency. 

This represents seismic financial possibilities that go much further than what the Reset crowd is attempting and in effective they are contributing to their own demise and the failure of respective economies and societies. In essence they are being isolated and refuse to see their own folly of decision making in destroying both economies and historical societal strengths. As it is China has warned them that it will not play their game. Russia has opted out as well. Countries like Pakistan are currently learning quickly that all that sparkles Chinese is not riches as Chinese ownership and dominance of industry and thus the economy is at the heart of Chinese goals. 

As it is I understand Brazil will be the gateway into South America for connectivity and thus digital settlement for interested parties. 

What the west should be concerned about is developing their own digital highway for unencumbered settlement and thus future hegemony, because in a world where settlements are a separate widely accepted activity, military might will only go so far, lessening the influence that once was. For now, it is the depth of dollar liquidity that allows dominion in currency settlement and it may not always be so. Europe is gambling its’ future ill prepared for the Chinese juggernaut building out its’ highway which no doubt will come with a toll. And Central Banks are bypassed participants as this is rolled out as the highway owners will make the rules of transit, in the future. 

“In partnership with Huawei, fiber optic cable is being laid out all across Pakistan – as I saw for myself when I traveled the Karakoram Highway, the northern part of CPEC. This fiber optic cable all the way from the Karakoram to Balochistan will link with the Pakistan-East Africa Connecting Europe (PEACE) submarine cable in the Arabian Sea.

The end result will be high-end connectivity between a host of BRI-participating nations and Europe – as the Mediterranean section is already being laid, running from Egypt to France. Before the end of 2021, the whole 15,000 km-long fiber optic cable will be online.

This shows that BRI is not as much about building roads, dams and high-speed rail networks but especially the Digital Silk Road, intimately connected with state of the art Chinese cyber-tech”.

http://thesaker.is/xi-and-putin-make-the-case-for-win-win-vs-zero-sum/

6.Global Issues

Israel//Coronavirus update/vaccine

Israel despite vaccinating half their people, still sees covid cases rise

(zerohedge)

Israel COVID Cases Rise Despite Lockdown, Vaccinations; Japan Extends State Of Emergency: Live Updates

 
TUESDAY, FEB 02, 2021 – 7:35

Summary:

  • US new cases lowest since Nov.
  • England, Wales see second-highest deaths
  • Israeli cases rise despite vaccinations, lockdowns
  • Japan extends state of emergency
  • Merkel promises a dose for every German by September
  • Italy begins unwinding lockdown
  • Moderna proposes filling vials with 15 doses instead of 10
  • China reports 30 new cases, lowest in a month

* * *

The US reached a new COVID milestone yesterday, as the number of Americans who have received the first dose of the vaccine surpassed the number confirmed positive with the virus. Still, the US is just coming off the deadliest month since the beginning of the crisis, and cases and hospitalizations are only just starting to fall.

The US reported fewer than 120K new cases yesterday, its lowest daily level since November, while hospitalizations continued to retreat toward 90k, the lowest number since the fall.

Hospitalizations are falling in virtually every state.

The big question for the US is the same as for Europe: will the hyper-infectious “mutant” strains cause a reversal in the trend, or break through the vaccines to cause yet another wave of COVID, leaving vaccinemakers constantly racing to update their product? Patterns in the EU largely mirror the US.

But with deaths so close to the peak, and Italy kicking off its post-holiday reopening Tuesday, mutant strains are still causing concern.

Moving on from the US, the battle over AstraZeneca doses in Europe appeared to die down, as Chancellor Angela Merkel promised all Germans a first vaccine dose by the end of September, (provided the drugmaker sticks to its delivery commitments). Dubai has become the latest country in the Middle East to authorize the vaccine.

In the UK, virus-linked deaths in England and Wales reached their second-highest level since the start of the pandemic, highlighting the severity of the latest wave.

Despite boasting the highest vaccination rate in the land, Israel is finding the virus stubbornly hard to defeat as new cases bounce back. Indeed, cases might even be rising despite the number of vaccinations, and a nationwide lockdown that continues. While the vast majority of those over 80 have been vaccinated, the nation’s campaign is stalling.

While 83% of the 60-plus age group has been inoculated, the vaccination program among that part of the population has mostly stalled, the center said. Israel is aiming for 95% vaccination rate among that age group,

In Asia, Japanese Prime Minister Yoshihide Suga extended the state of emergency in 10 prefectures on Tuesday, including Tokyo, will be extended by a month to March 7. However, the extension will not cover Tochigi Prefecture, where the number of new infections is judged to have dropped sufficiently. Suga added that while the number of infections has fallen in some places, it is too soon to lift restrictions: “It is obvious that the number of new cases has decreased in Tokyo and elsewhere since the declaration of the state of emergency. Focusing on restaurants to ask for cooperation has been effective,” Suga said. “We want to ensure that the current measures are thoroughly implemented so that the declaration can be promptly lifted.”

Japanese cases have declined in recent weeks…

…while deaths have risen.

Here’s a roundup of more COVID news from overnight and Tuesday morning:

  • Johnson & Johnson will ship some Covid-19 vaccines ordered by the European Union to the U.S. for the last stage of production, raising concern among some member states (Source: Bloomberg).
  • Russia’s Sputnik received approval for emergency use in Pakistan with local partner AGP (Source: Bloomberg).
  • Moderna says it has proposed filling vials with additional doses of its vaccine, raising the volume to 15 doses from 10 to ease a production crunch (Source: Nikkei).
  • New York reported 8.5K new COVID-19 cases on Monday, the first time new infections have been below 10K since late December, Gov. Andrew Cuomo said in a tweet. The state also reported 141 new COVID-19 deaths.

* * *

China reports 30 cases, the fewest in a month, as Beijing tries to convince the world that its latest outbreak in Hebei Province, surrounding Beijing, has finally passed.

end

7. OIL ISSUES

end

8 EMERGING MARKET ISSUES

BURMA

Biden declares Burma crisis a coup d’Etat and thus sanctions are coming.  Biden states that the election

was fair and that the military’s claim that it is fraudulent is wrong.

(zerohedge)

Biden Declares Myanmar Crisis A Coup D’Etat – Sanctions Coming As Unrest Looms

 
TUESDAY, FEB 02, 2021 – 14:00

The State Department is warning of the potential for “civil and political unrest in Burma” following the dramatic military takeover of the country and arrest of its civilian leadership Monday. This as all international travel has been halted, and various communications including internet were cut to the capital.

The Biden administration has now formally declared it as a coup d’état, which means Washington is required by law to cut off all foreign assistance to the southeast Asian country. It further announced that targeted action will be taken “against those responsible” for the arrests and continued detention of the elected civilian leadership, likely in the form of sanctions.

 

Via FT

“After careful review of the facts and circumstances, we have assessed that Aung San Suu Kyi, the leader of Burma’s ruling party, and Win Myint, the duly elected head of government, were deposed in a military coup on February 1,” the State Department announced Tuesday.

“We continue to call on the Burmese military leadership to release them and all other detained civil society and political leaders immediately and unconditionally.”

“In addition, we will undertake a broader review of our assistance programs to ensure they align with recent events,” the official said.

 

Myanmar leader Aung San Suu Kyi and Army commander Gen. Min Aung Hlaing, via Bankok Post

“At the same time, we will continue programs that benefit the people of Burma directly, including humanitarian assistance and democracy support programs that benefit civil society. A democratic civilian led government has always been Burma’s best opportunity to address the problems the country faces,” the statement added.

According to the State Department, currently “very little” foreign assistance goes to Myanmar’s government given recent years of what’s been dubbed “democratic backsliding” in international reports.

One local eyewitness told BBC of the chaotic hours after military raids on government leaders’ homes: “We woke up with the news of the military coup in the early morning and some of our friends were detained,” according to BBC’s Newsday program.

“The internet connectivity is not there anymore… I can’t go out and use my phone, there is no data at all. This is what’s happening right now. There are military cars roaming around the city,” the eyewitness added.

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

Euro/USA 1.2032 DOWN .0035 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 105.04 UP 0.164 (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 1.3673   DOWN   0.0003  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.2819 DOWN .0031 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  TUESDAY morning in Europe, the Euro FELL BY 35 basis points, trading now ABOVE the important 1.08 level FALLING to 1.2032 Last night Shanghai COMPOSITE UP 28.40 PTS OR .81% 

//Hang Sang CLOSED UP 355.84 PTS OR 1.23% 

/AUSTRALIA CLOSED UP 1,51%// EUROPEAN BOURSES ALL GREEN

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 355.84 PTS OR 1.23% 

/SHANGHAI CLOSED UP 28.40 PTS OR .81% 

Australia BOURSE CLOSED UP 1.51% 

Nikkei (Japan) CLOSED DOWN 271.12  POINTS OR 0.97%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1843.95.00

silver:$27.49-

Early TUESDAY morning USA 10 year bond yield: 1.11% !!! UP 3 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

The 30 yr bond yield 1.884 UP 3  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 91.14 UP 16 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.05% UP 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.06.%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.12%//UP 3 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 53 points higher than Spain.

GERMAN 10 YR BOND YIELD: RISES TO –.49% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.87% 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 TUESDAY

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

Euro/USA 1.20191  DOWN     .0049 or 49 basis points

USA/Japan: 105.08 DOWN .200 OR YEN UP 20  basis points/

Great Britain/USA 1.3646 DOWN .0029 POUND DOWN 29  BASIS POINTS)

Canadian dollar UP 34 basis points to 1.2815

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The USA/Yuan,  CNY: closed UP AT 6.4565    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.4604  (YUAN up)..GETTING REALLY DANGEROUS

TURKISH LIRA:  7.19  EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield  at +0.06%

Your closing 10 yr US bond yield UP 3 IN basis points from MONDAY at 1.111 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.873 UP 2 in basis points on the day

Your closing USA dollar index, 91.20 UP 22  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 UP 50.23  0.78%

German Dax :  CLOSED UP 213.14 POINTS OR  1.56%

Paris Cac CLOSED UP 101.43 POINTS 1.86%

Spain IBEX CLOSED UP 152.70 POINTS or 1.96%

Italian MIB: CLOSED UP 241.36 POINTS OR 1.11%

WTI Oil price; 54.94 12:00  PM  EST

Brent Oil: 57.55 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    75.72  THE CROSS LOWER BY 0.38 RUBLES/DOLLAR (RUBLE HIGHER BY 38 BASIS PTS)

TODAY THE GERMAN YIELD FALLS  TO –.49 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 :  54.77//

BRENT :  57.55

USA 10 YR BOND YIELD: … 1.111..up 3 basis points…

USA 30 YR BOND YIELD: 1.876 up 3 basis points..

EURO/USA 1.2032 ( DOWN 34   BASIS POINTS)

USA/JAPANESE YEN:105.03 UP .148 (YEN DOWN 15 BASIS POINTS/..

USA DOLLAR INDEX: 91.17 UP 16 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.3659 DOWN 17  POINTS

the Turkish lira close: 7.20

the Russian rouble 76.25   DOWN 0.25 Roubles against the uSA dollar. (DOWN 25 BASIS POINTS)

Canadian dollar:  1.2794 UP 55 BASIS pts

German 10 yr bond yield at 5 pm: ,-0.49%

The Dow closed UP 457.57 POINTS OR 1.57%

NASDAQ closed UP 202.74 POINTS OR 1.88%


VOLATILITY INDEX:  25.75 CLOSED DOWN 4.52

LIBOR 3 MONTH DURATION: 0.210%//libor dropping like a stone

USA trading today in Graph Form

Stocks, Crypto, & Bond Yields Pop As WSB Game Stopped

 
TUESDAY, FEB 02, 2021 – 16:00

It appears the Reddit-Raiders Game just Stopped. Most-Shorted stocks tumbled…

Source: Bloomberg

Did it look something like this?

Led by GME and KOSS, down some 60-70% from Friday’s close (despite some insane intraday swings)…

GME crashed back into double-digits today… (what goes up, must come down?)

But the vol today probably felt something like this…

And as the shorts plunged, the most crowded longs surged…

Source: Bloomberg

Which dragged the broad market dramatically higher, led by The Nasdaq (Dow lagging but still up over 2.5% this week) – this is the biggest two-day jump in stocks since the election… markets had a weak close though again…

Another Reddit-Raider fave, Silver, was also clubbed like a baby seal today…

And Silver Miners erased yesterday’s gains…

The Value-to-Momo rotation continued…

Source: Bloomberg

But interestingly the Value/Growth trades are not rotating – like broad market flows dominated…

Source: Bloomberg

Meanwhile, bonds were sold as heavy corporate issuance (think rate-locks and rotation) weighed…

Source: Bloomberg

10Y Yields rose back up to 1.10% but were unable to break through…

Source: Bloomberg

The yield curve steepened to 3 year highs…

Source: Bloomberg

Real Yields tumbled today, decoupling from gold once again…

Source: Bloomberg

The dollar ended the day unchanged fading off earlier highs late in the day…

Source: Bloomberg

Cryptos were bid today as WSBettors were hammered. Ethereum soared to a new record high…

Source: Bloomberg

And Bitcoin surged back above $36,000

Source: Bloomberg

Someone is happy…

Meanwhile, oil prices hit one-year highs (WTI >$ $55) ahead of tonight’s inventory data…

Source: Bloomberg

And gold tumbled back below $1850 as Silver slumped…

Finally, while the GME chaos may be receding, Bloomberg notes that there remains plenty to be anxious about, including stretched equity valuations, the pace of the U.S. economic recovery and the rollout of coronavirus vaccines. In the options market, the cost of S&P 500 Index puts relative to calls is still elevated after rising to a three-year high last week.

Source: Bloomberg

“Implied volatility was up broadly, but more so in the downside puts as investors worried about market dislocations leading to broader contagion,” Chris Murphy, Susquehanna International Group’s co-head of derivatives strategy, wrote in a note to clients Monday.

“While the SPX is pricing in more risk to the downside than the upside than usual, the opposite is happening on the single stock level. It will be hard for both to be right.”

a)Market trading/LAST NIGHT/THIS MORNING/USA

Most Shorted Stocks Are Crashing

 
TUESDAY, FEB 02, 2021 – 8:01

Yesterday, when GME was still trading at $300, we warned traders that the squeeze was almost over because as calculated by S3 Partners, the short interest had collapsed from over 110% to 53%…

… and warned subs in our private twitter feed to take cover.

For some reason, we got a lot of grief from the “diamond hands” crew for simply reporting the facts (and as we explained for those wondering, the most desperate shorts went so far as raiding the XRT ETF to obtain GME shares to cover), which are manifesting themselves vividly this morning, with GME crashing by more than half from when we warned yesterday, and was last trading at just $142…

… while the other top meme stock, AMC was down to $9 after rising as high as $18 on Monday.

There was no respite across the most-shorted sector, with virtually all of last week’s most popular names tumbling including silver..

… as attention now seems to be shifting to biotechs where names like VXRT, DVAX and BCRX sharply higher today.

 

b)MARKET TRADING/USA//Non farm payrolls

 
 

ii)Market data/USA

 
 

iii) Important USA Economic Stories

Chicago is in a mess:  The teachers defy Lightfoot, ignoring the science and thus a strike is imminent

(zerohedge)

Showdown In Chicago As Teachers Defy Mayor’s Orders, Ignore Science; Strike Imminent

 
 
MONDAY, FEB 01, 2021 – 16:40

Chicago Mayor Lori Lightfoot has ordered teachers to return to classrooms for in-person instruction starting Monday, while the Chicago Teachers’ Union (CTU) is set to call a strike after weekend negotiations to secure a deal failed over the weekend.

On Sunday, Lightfoot announced that teeachers who don’t have an “approved accommodation” will be expected back in class, and those who don’t will be locked out of their district accounts on Monday at end of business. If there are “mass lockouts,” the CTU said in a Sunday bulletin that they will call a meeting of its House of Delegates in order to “set a date for a strike to begin,” according to the Chicago Tribune.

Schools had been slated to reopen for more than 60,000 kindergarten through eighth grade students Monday, joining about 6,500 preschool and special education students who started attending in-person on Jan. 11.

But Chicago Public Schools pulled the plug late Sunday when it became increasingly clear teachers would continue to refuse to return en masse, despite the hard line Lightfoot and district CEO Janice Jackson have been toeing for weeks, threatening to lock educators out of their remote teaching platforms if they won’t show up in person. –Chicago Tribune

“Let me be very clear: Our schools are safe. We’ve invested over $100 million dollars in ventilation, other safety protocols, making sure that we have masks, safety health screening, temperature checks — all the things that you would expect that the CDC guidance has told us that we know makes sense to mitigate any issues in schools. We’ve looked at and followed every study across the globe, including here in Chicago, by our local experts,” Lightfoot told MSNBC‘s “Morning Joe.”

“We’ve had three weeks of safely implementing our plan until the teachers union blew it up,” Lightfoot added.

Apparently there are consequences to spooking constitutents with ongoing lockdowns for the super deadly virus during the Trump administration, only to suddenly push for reopening under Biden.

Meanwhile, the teachers (some of whom are presumably teach science) aren’t ‘following the science,’ after former CDC director Robert Redfield, said in November that “All schools should remain open,” saying in a statement: “[T]here is extensive data that we have gathered over the last two to three months to confirm that k-12 schools can operate with face-to-face learning and they can do it safely and they can do it responsibly,” adding “The infections we have identified in the schools, when they have been evaluating, were not acquired in schools. They were acquired in the community and the household.”

 

Former CDC Director Robert Redfield

More recentlya study published last week in the Morbidity and Mortality Weekly Report found that just 3.7% of COVID-19 cases at 17 Wisconsin schools were tied to in-school transmission.

Only 7 of the 191 cases (3.7%), all of them in students, were linked to in-school transmission. Five of the cases occurred at elementary schools (3 in a single class), and 2 were associated with secondary schools. No staff member infections were tied to in-school spread. –CIDRAP

Officials have pushed back the resumption of Pre-K through eighth grade classes one day to Tuesday, however the Tribune isn’t alone in doubting whether that will happen.

The Union, meanwhile, accused the Mayor and Jackson of having “trouble telling the truth publicly,” and urged teachers not to believe anything that doesn’t come from the union, according to the report.

“CPS never showed up at bargaining Sunday,” the union said in a bulletin. “After hours of waiting, CTU leadership was told the CPS team would not come to bargaining unless we made massive concessions: on CDC health metrics; on vaccinations; on giving time for vaccination before reopening; and accommodations for over 2,000 members who have medically vulnerable people in their households.”

“That is not only unacceptable, that is outrageous. We don’t want a strike.”

end
 
Trump nominated for Nobel Peace Prize over his Israel-UAE peacedeal\Phillips/EpochTimes

Trump Nominated For Nobel Peace Prize Over Israel-UAE Peace Deal

 

Authored by Jack Phillips via The Epoch Times (emphasis ours),

Former President Donald Trump was nominated for the Nobel Peace Prize on Monday morning by an Estonian member of the European Parliament, Jaak Madison.

In a post on social media, Madison said:

“In the last 30 years, Donald Trump is the first president of the United States, who during his tenure, has not started a war. Additionally, he signed several peace agreements in the Middle East which have helped provide stability in the region and peace.”

Madison was referring to the Abraham Accords, a joint statement between Israel, the United Arab Emirates, and the United States–and later, with Bahrain and other Arab countries.

“We encourage efforts to promote interfaith and intercultural dialogue to advance a culture of peace among the three Abrahamic religions and all humanity,” according to a statement on the State Department’s website. “We believe that the best way to address challenges is through cooperation and dialogue and that developing friendly relations among States advances the interests of lasting peace in the Middle East and around the world.”

Trump was nominated for the Nobel Peace Prize last year by Norwegian Parliament member Christian Tybring-Gjedde.

“For his merit, I think he has done more trying to create peace between nations than most other Peace Prize nominees,” Tybring-Gjedde told Fox last year.

Separately, Harvard Law professor emeritus Alan Dershowitz nominated Trump’s son-in-law and former presidential advisor Jared Kushner on Monday morning. Dershowitz—who is eligible to nominate individuals because of his status as a former Harvard Law professor—argued that Kushner and his associate Avi Berkowitz helped negotiate the Abraham Accords.

 

(L-R) Bahrain Foreign Minister Abdullatif al-Zayani, Israeli Prime Minister Benjamin Netanyahu, President Donald Trump, and UAE Foreign Minister Abdullah bin Zayed Al-Nahyan pose from the Truman Balcony at the White House before they participate in the signing of the Abraham Accords where the countries of Bahrain and the United Arab Emirates recognize Israel, in Washington, on Sept. 15, 2020. (Saul Loeb/AFP via Getty Images)

“The Nobel Peace Prize is not for popularity. Nor is it an assessment of what the international community may think of those who helped bring about peace,” Dershowitz wrote. “It is an award for fulfilling the daunting criteria set out by Alfred Nobel in his will.”

Under the diplomatic push, Trump’s administration also negotiated deals with Sudan and Morocco.

Kushner, in a statement Sunday, said that he was honored to be nominated for the prize.

President Joe Biden’s administration is expected to review all national security deals struck during the Trump administration, including arms packages for the United Arab Emirates and Saudi Arabia.

Some lawmakers have complained about the Morocco deal because, to win the nation’s agreement, the United States recognized its sovereignty over the disputed Western Sahara.

Also on Monday, the Black Lives Matter movement was nominated for the Peace Prize by a Norwegian Parliament member, Petter Eide. Eide said that people have messaged him “to say that BLM is a violent organization,” but he rejected the claims.

The winner of the Nobel Peace Prize will be awarded in November 2021.

Reuters contributed to this report.

end

No question about it; the Dems are using the impeachment as a political weapon and destroying the constitutional process

(zero hedge)

Trump Lawyer: Impeachment Is “Political Weaponization” Of A Constitutional Process

 
TUESDAY, FEB 02, 2021 – 10:01

Authored by Janita Kan via The Epoch Times,

David Schoen, one of former President Donald Trump’s newly appointed impeachment defense attorneys, said he believes that Democrats are using the impeachment process as a “weapon” to go after Trump in an attempt to bar him from running for office again.

“This is the political weaponization of the impeachment process,” Schoen told Fox News’ Sean Hannity on Monday.

“I think it’s also the most ill-advised legislative action that I’ve seen in my lifetime. It is tearing the country apart at a time when we don’t need anything like that.”

Democrat lawmakers have been calling for Trump’s impeachment since the beginning of his term, Schoen said, and the upcoming trial is their latest attempt to target him, as well as to carry out their agenda of preventing him from ever running for president again.

“That’s about as undemocratic as you can get,” Schoen said.

“Can you imagine the slap in the face that is to the 75 million or more voters?”

“Fair-minded people don’t support using the impeachment process to then try to bar someone from running for office again,” he added.

The Democrat-controlled House on Jan. 13 voted 232–197 to impeach Trump on a single article of impeachment, alleging that the president incited an “insurrection” that caused the U.S. Capitol breach on Jan. 6.

The impeachment, which was completed in a single seven-hour session, has been criticized by Republicans for its expediency and lack of due process. Meanwhile, the question of whether the Senate trial, which will begin on the week of Feb. 8, is constitutional has prompted a heated public debate among legal scholars and lawmakers.

Scholars who are arguing that the trial is unconstitutional are relying on an interpretation of Article II, Section 4, of the U.S. Constitution, which states, “The President, Vice President and all civil officers of the United States, shall be removed from office on impeachment for, and conviction of, treason, bribery, or other high crimes and misdemeanors.”

According to their reading of the text, these scholars say impeachment is for current officeholders, and since Trump had already left office, the Senate’s jurisdiction—or authority—to hold an impeachment trial expired on Jan. 20, when his term came to a close.

On the other hand, scholars who are arguing that the upcoming trial is constitutional say that the impeachment power and the Senate’s jurisdiction needs to be read in conjunction with Article I, Section 3, which states, “Judgment in Cases of Impeachment shall not extend further than to removal from Office, and disqualification to hold and enjoy any Office of honor, Trust or Profit under the United States.”

These scholars also contend that the argument for impeachment is supported by historical precedents.

Schoen also signaled that he and attorney Bruce Castor Jr. will also argue that Trump’s speech at the rally on Jan. 6 is protected by the First Amendment.

“This is a very, very dangerous road to take with respect to the First Amendment, putting at risk any passionate political speaker,” Schoen said.

The media, lawmakers, former officials, and other critics have put the blame on Trump for the Jan. 6 Capitol breach and have been calling for his impeachment. Hours earlier, the president addressed a crowd in Washington D.C. where he reiterated allegations about election irregularities and potential fraud, and his dissatisfaction with the media and several lawmakers. Before calling on his supporters to “fight like hell” to be well-represented in Congress, Trump urged supporters to protest “peacefully and patriotically” at the U.S. Capitol.

The breach at the U.S. Capitol began before Trump had finished his speech at the rally, according to a timeline compiled by The Epoch Times. As the incident escalated, Trump continued his urge for peace and respect for law enforcement throughout the afternoon.

Following the incident, Trump condemned the “violence, lawlessness, and mayhem,” saying that those who “infiltrated the Capitol have defiled the seat of American democracy.”

The Justice Department and FBI have also announced that they have charged protesters who had conspired to breach the U.S. Capitol days before the incident, a detail that challenges the argument put forward by the media that Trump’s speech on Jan. 6 was the impetus for the violence.

“President Trump has condemned the violence at all times. Read the words of his speech. [He] calls for peacefulness. This has nothing to do with President Trump,” Schoen said.

iv) Swamp commentaries

Steve Cohen Raises $1.5 Billion In Days To Fill Melvin (No) Capital Losses

 
TUESDAY, FEB 02, 2021 – 14:38

One week after Steve Cohen’s Point72 invested $750MM in Melvin (No) Capital alongside Citadel’s Ken Griffen, only to suffer immediate losses as Melvin – run by Cohen’s former PM Gabe Plotkin – saw its losses balloon from 30% to 53% in just a few days as the marketwide short-squeeze forced the fund to unwind its billions in shorts at massive losses, and just one day after Charli Gasparino reported that Cohen opened his fund to new investors “amid losses at firm due to exposure to Melvin Capital”, the hedge fund has already secured a whopping $1.5 billion in commitments in a matter of days, Bloomberg reports citing people familiar with the matter.

Yet while Gasparino reported that Point72 was rising the capital in response to its Melvin Capital losses – and one certainly can’t deny that the timing is quite peculiar – according to Bloomberg, Point 72 “is raising the fresh cash because it sees investment opportunities in the market.”

Right – the same way that Robinhood just raised $4 billion because it is “seeing a flood of new clients.”

 

blue eyes, blue sweater.

Oh, and the fact that the “legendary” hedge fund was down 9% in January has nothing at all to do with its scramble to raise an offsetting amount of new capital…

And while we would love to Steve Cohen for a comment for this story, sadly he deleted his twitter account over the weekend due to “threats”.

Meanwhile Gabe Plotkin, whose Melvin is a dead fund walking after the deluge of redemption requests coming in this week, remains busy adding a tennis court to his Miami beachfront mansion.

 

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

Silver Spikes Past $30 as Retail Investors Swarm Biggest Target

Most-active futures jumped as much as 13% to $30.35…the highest in eight years. That followed a weekend buying binge that overwhelmed online sellers of silver coins and bars… Like the buying stampede in GameStop Corp. and other small-cap stocks… silver’s advance can be traced to Reddit’s WallStreetBets forum. One post last week declared the metal “THE BIGGEST SHORT IN THE WORLD” and encouraged traders to pile into the iShares trust as a way to stick it to big banks…

https://advisorhub.com/silver-spikes-past-30-as-retail-investors-swarm-biggest-target/

 

@zerohedge: “Due to potential market volatility, TradeStation is suspending reduced intraday futures margin rates on Silver Contracts. All Futures accounts will be required to have full maintenance margin.”

 

Silver Futures Suffer Sudden Wave of Selling After Surging Most Since Lehman

Having surged by the most since Lehman, topping $30 for the first time since 2013, Silver futures have been taking some heavy volume punishment since the US equity market opened… [Who intervened?]

https://www.zerohedge.com/commodities/its-been-nuts-silver-surges-most-lehman-bankruptcy-hits-7-year-high-over-30

 

Markit: January PMI hits record high amid strong client demand [59.2 in January from  57.1]

Near-record supply chain disruptions push up input costs

Prices charged rise at steepest pace since July 2008 [At time China was buying for Olympics]

https://www.markiteconomics.com/Public/Home/PressRelease/2a6f1edfd4224b23b15e3cbb396fb8cc

 

January ISM Mfg 58.7, down from 60.5, 60 expected; Prices paid 82.1, 76.0 expected

China gene firm providing worldwide COVID tests worked with Chinese military

Top U.S. security officials have warned American labs against using Chinese tests because of concern China was seeking to gather foreign genetic data for its own research… Elsa Kania, an adjunct senior fellow at the Center for a New American Security think tank, who has provided testimony to U.S. Congressional committees, told Reuters that China’s military has pushed research on brain science, gene editing and the creation of artificial genomes that could have an application in future bioweapons

https://mobile.reuters.com/article/amp/idUSKBN29Z0HA?__twitter_impression=true&s=02

 

Two million Australians in lockdown after one COVID-19 case found  https://trib.al/4OYU7Va

 

Long-time readers know that we regularly note how the equity market is regularly manipulated.  The big sharks that have manipulated equities and ‘owned’ the market for decades are irate that packs of piranhas are not only harming them, but they have also drawn unwanted attention from regulators to the rigged and bastardized market.  Now, payments for orders, high frequency trading, front running customer orders and collusion will be scrutinized.  If Congress isn’t totally corrupted by filthy lucre, it will investigate expiry squeezes, overnight and last-hour ESH manipulation, monthly performance gaming and other schemes.  If this would transpire, untold firms would no longer ‘have an edge’ and their profits would disintegrate.

 

Today – With Street forces pulling GameStop back toward Earth, have ‘the boys’ regained control of the equity market?  Will Street forces with vested interests and survival needs try to game GameStop downward?  Will packs of piranhas make another banquet of the sharks that are used to feeding on the public and insouciant institutions?  Is there any reason to believe that the US equity market is ‘freely traded’ and honest?

 

Please recall that during the dark days of 2008 (and other crises since Genesis), Street forces were regularly marshalled to save the stock market or thwart a losing situation for some large, connected entities.  This produced wicked swings in the stock market and people’s psyches – just like in the summer and early fall in 1929 and other blooming market calamities.  The moral of the story is: Street entities are desperate; and they will employ desperate measures to survive and recapture lost fortunes.  Don’t look for help from regulators, the Fed or Congress until the market or financial system is at the brink.

 

Do not play unless you must trade/invest, or you are clairvoyant, or you are very well informed.  The carnage, exposure and dirty linens have not yet been exposed or truthfully estimated – and desperate people are still fighting for survival.

Biden looking into yanking Trump’s access to intelligence briefings https://trib.al/a3AN51d

 

Can you imagine the MSM and Dem outrage if Trump had pulled Obama’s access to intel briefings?

 

@paulsperry_: Is Joe Biden, who was directly involved at the White House in the FBI’s persecution of Trump aides over the Russiagate hoax, offering a form of hush money to the #Spygate crooks with plum jobs in his administration?

 

@MarkSimoneNY: If the loony Democrats convince people you can impeach a President after he’s left office, when the Republicans take back the house in 2022, they should impeach Barack Obama for the illegal surveillance of the Trump campaign

Well that is all for today

I will see you WEDNESDAY night.

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