FEB 5//GOLD AND SILVER REBOUND FROM THE NASTY RAID: GOLD UP $20.10 TO $1811.80//SILVER UP 70 CENTS TO $26.95//HUGE JUMP IN GOLD TONNAGE STANDING UP TO 103.9 TONNES (HUGE QUEUE JUMP BY OUR BANKERS)//LARGE INCREASE IN SILVER OZ STANDING AT 10.5 MILLION OZ//POOR JOBS REPORT IN THE USA/ALSO POOR JOBS REPORT IN CANADA//CORONAVIRUS UPDATE//VACCINE UPDATES//CHINA HAS A WAR OF WORDS FOR BIDEN//RUSSIA ALSO HAS BARBS WITH BIDEN//BIDEN HAVING HIGH LEVEL TALKS RE THE NUKES PER IRAN//SWAMP STORIES FOR YOU TONIGHT/

GOLD:$1811.80 UP  $20.10   The quote is London spot price

Silver:$26.95. UP  $0.70   London spot price ( cash market)

your data…

Closing access prices:  London spot

i)Gold : $1813.90  LONDON SPOT  4:30 pm

ii)SILVER:  $27.00//LONDON SPOT  4:30 pm

Editorial of The New York Sun | February 1, 2021

end

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COMEX DATA

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

receiving today: 301/708

EXCHANGE: COMEX
CONTRACT: FEBRUARY 2021 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,788.900000000 USD
INTENT DATE: 02/04/2021 DELIVERY DATE: 02/08/2021
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 666 5
118 H MACQUARIE FUT 2
323 H HSBC 1
332 H STANDARD CHARTE 80
435 H SCOTIA CAPITAL 3
555 H BNP PARIBAS SEC 4
624 H BOFA SECURITIES 98
657 C MORGAN STANLEY 101
661 C JP MORGAN 190
661 H JP MORGAN 111
686 C STONEX FINANCIA 16
690 C ABN AMRO 40 2
709 H BARCLAYS 74
800 C MAREX SPEC 2 1
880 C CITIGROUP 18
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 708 708
MONTH TO DATE: 23,199

issued  0

GOLDMAN SACHS STOPPED 5 CONTRACTS.

NUMBER OF NOTICES FILED TODAY FOR  FEB. CONTRACT: 708 NOTICE(S) FOR 70,800 OZ  (2.202 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  23,199 NOTICES FOR 2,319,900 OZ  (72.160 tonnes) 

SILVER//FEB CONTRACT

94 NOTICE(S) FILED TODAY FOR 470,000  OZ/

total number of notices filed so far this month: 1606 for 8,030,000  oz

BITCOIN MORNING QUOTE  $37,958   UP 467

BITCOIN AFTERNOON QUOTE.:$37,698  DOWN 260 DOLLARS .

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GLD AND SLV INVENTORIES:

WITH GOLD UP $20.10  AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

NO CHANGE IN GOLD INVENTORY AT THE GLD/

GLD: 1,259.84 TONNES OF GOLD//

WITH SILVER UP $0.70 TODAY: AND WITH NO SILVER AROUND

NO CHANGES IN SILVER INVENTORY AT THE SLV//

INVENTORY RESTS AT:

SLV: 659.278  MILLION OZ./

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

THE COMEX OI IN SILVER FELL BY A STRONG SIZED 2345 CONTRACTS FROM 177,422 DOWN TO 175,077, AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE LOSS IN OI OCCURRED WITH OUR STRONG $0.54 LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS  DUE TO CONSIDERABLE BANKER AND ALGO  SHORT COVERING..  COUPLED AGAINST A STRONG EXCHANGE FOR PHYSICAL ISSUANCE. WE ALSO HAD TINY LONG LIQUIDATION, AND A HUGE GAIN IN STANDING FOR SILVER OUNCES STANDING AT THE COMEX FOR FEB.  WE HAD A SMALL NET LOSS IN OUR TWO EXCHANGES OF 394 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:  1951,, AS WE HAD THE FOLLOWING ISSUANCE:  MARCH  1951 JULY: 0 AND ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE 1951 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

10.575  MILLION OZ INTITAL STANDING FOR FEB 2021

THURSDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL $0.54) ).. AND, OUR OFFICIAL SECTOR/BANKERS WERE SOMEWHAT  SUCCESSFUL IN THEIR ATTEMPT TO FLEECE  SOME SILVER LONGS AS WE HAD A SMALL LOSS IN OUR TWO EXCHANGES (394 CONTRACTS). NO DOUBT THE TOTAL LOSS IN OI IN OUR TWO EXCHANGES WERE DUE TO i)BANKER/ALGO SHORT COVERING.  WE ALSO HAD  ii)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A HUGE INCREASE STANDING IN SILVER OZ  STANDING  FOR FEB, iii) STRONG COMEX LOSS AND iv) TINY 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:

27,835 CONTRACTS (FOR 5 TRADING DAY(S) TOTAL 27,835 CONTRACTS) OR 139.175 MILLION OZ: (AVERAGE PER DAY: 5567 CONTRACTS OR 27.835 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF FEB: 139.175 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: 139.175. MILLION PAPER OZ HAVE MORPHED OVER TO LONDON.

JAN EFP ACCUMULATION FINAL:  113.735 MILLION OZ

FEB EFP ACCUMULATION FOR FAR:   139.420 MILLION OZ (RAPIDLY INCREASING AGAIN)

RESULT: WE HAD A STRONG SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2345, WITH OUR  $0.54 FALL IN SILVER PRICING AT THE COMEX ///THURSDAY.THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1535 CONTRACTS WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS.

TODAY WE LOST AN SMALL SIZED 394 OI CONTRACTS ON THE TWO EXCHANGES (WITH OUR $0.54 FALL IN PRICE)//

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1951 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED DECREASE OF 2345 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH OUR $0.54 FALL IN PRICE OF SILVER/AND A CLOSING PRICE OF $26.25 // THURSDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

FOR THE NEW FEB.  DELIVERY MONTH/ THEY FILED AT THE COMEX: 94 NOTICE(S) FOR 470,000 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 SURPRISINGLY ROSE BY A SMALL 533 CONTRACTS TO 517,620 AND CLOSER TO  OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE SMALL SIZED RISE IN COMEX OI OCCURRED DESPITE OUR HUGE LOSS IN PRICE  OF $42.05 /// COMEX GOLD TRADING// THURSDAY. WE PROBABLY HAD SOME BANKER/ALGO SHORT COVERING  ACCOMPANYING OUR GOOD EXCHANGE FOR  PHYSICAL ISSUANCE. WE  HAD ZERO LONG LIQUIDATION. WE HAD A MONSTER GAIN IN GOLD STANDING  AT THE COMEX TO 103.993 TONNES FOR FEBRUARY..AS OUR BANKERS ORCHESTRATE A HUGE QUEUE JUMPING SEARCHING FOR METAL OVER HERE...THIS ALL HAPPENED WITH OUR  FALL IN PRICE OF $42.05!!!. 

WE HAD A VOLUME OF 5    4 -GC CONTRACTS//OPEN INTEREST  10//

WE HAD A GOOD GAIN  OF 5624 CONTRACTS  (17.49 TONNES) ON OUR TWO EXCHANGES.. 

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 5091 CONTRACTS:

CONTRACT . FEB:0,  APRIL:  5091  ALL OTHER MONTHS ZERO//TOTAL: 1912.  The NEW COMEX OI for the gold complex rests at 517,620. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EXCHANGE DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 5624 CONTRACTS: 533 CONTRACTS INCREASED AT THE COMEX AND 5091 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6440 CONTRACTS OR 17.49 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (5091) ACCOMPANYING THE SMALL SIZED GAIN IN COMEX OI  (533 OI): TOTAL GAIN IN THE TWO EXCHANGES:  5624 CONTRACTS. WE NO DOUBT HAD 1 ) CONSIDERABLE BANKER SHORT COVERING AND CONSIDERABLE ALGO SHORT COVERING ,2.)POWERFUL INCREASE STANDING //  AT THE GOLD COMEX FOR THE FRONT FEB. MONTH RISING TO 103.993 TONNES3) ZERO LONG LIQUIDATION// ;4) SMALL COMEX OI GAIN  AND 5) GOOD ISSUANCE OF EXCHANGE FOR PHYSICAL  ...ALL OF THIS WAS COUPLED WITH OUR HUGE LOSS IN GOLD PRICE TRADING//THURSDAY//$42.05!!.

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 : 21,159, CONTRACTS OR 2,115,900 oz OR 65.82 TONNES (5 TRADING DAY(S) AND THUS AVERAGING: 4232 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 5 TRADING DAY(S) IN  TONNES: 65.82 TONNES

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

THUS EFP TRANSFERS REPRESENTS 65.82/3550 x 100% TONNES =1.85% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2021 TO DATE:
JANUARY: 265.26 TONNES (RAPIDLY INCREASING AGAIN)
FEB  :  65.82 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, FELL BY A STRONG SIZED 2345 CONTRACTS FROM 177,422 DOWN TO 175,077 AND FURTHER FROM OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

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

EFP ISSUANCE 1951 CONTRACTS

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

 MARCH:  1951 ; JULY: 0 AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1951 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI LOSS OF 2345 CONTRACTS TO THE 1951 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A SMALL SIZED LOSS OF 394 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 1.965 MILLION  OZ, OCCURRED WITH OUR $0.54 LOSS IN PRICE///

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

(report Harvey)

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 5.53 PTS OR .16%   //Hang Sang CLOSED UP 175.18 PTS OR .60%    /The Nikkei closed UP 437,24 POINTS OR 1.54%//Australia’s all ordinaires CLOSED UP 1.07%

/Chinese yuan (ONSHORE) closed UP AT 6.4703 /Oil UP TO 56.81 dollars per barrel for WTI and 59.51 for Brent. Stocks in Europe OPENED ALL GREEN//  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4703. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4745 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 SURPRISINGLY ROSE BY BY A SMALL 533 CONTRACTS TO 517,620 MOVING CLOSER TO THE RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS SMALL COMEX INCREASE OCCURRED DESPITE OUR HUGE FALL OF $42.05 IN GOLD PRICING /THURSDAY’S COMEX TRADING/)… WE ALSO HAD A GOOD EFP ISSUANCE (5091 CONTRACTS).   WE  ALSO PROBABLY HAD  1)  CONSIDERABLE BANKER SHORT COVERING//ALGO SHORT COVERING,  2)  ZERO  LONG LIQUIDATION,  AND 3)  LARGE INCREASE STANDING AT THE GOLD  COMEX//FEB. DELIVERY MONTH(103.993 TONNES) (SEE BELOW) …  AS WE ENGINEERED A GOOD SIZED GAIN ON OUR TWO EXCHANGES OF 5624 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 RAISES TO 10

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JAN..  THE CME REPORTS THAT THE BANKERS ISSUED A GOOD SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 5091 EFP CONTRACTS WERE ISSUED:  ; FEB// ’21  0 AND APRIL:  5091 & ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 5091  CONTRACTS.

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

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A GOOD 5624 TOTAL CONTRACTS  IN THAT 5091 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED  COMEX OI  OF 533.  WE HAVE A HUGE AMOUNT OF GOLD STANDING FOR FEB (103.993 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 SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $42.05)., AND WERE   UNSUCCESSFUL IN FLEECING ANY LONGS  AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED 20.03 TONNES, ACCOMPANYING OUR HUGE GOLD TONNAGE STANDING FOR FEB (103.993 TONNES)..

NET GAIN ON THE TWO EXCHANGES :: 5624 CONTRACTS OR  562400 OZ OR  17.49  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:  517,620 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 51.76 MILLION OZ/32,150 OZ PER TONNE =  1610 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1610/2200 OR 73.17% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY:204,982 contracts// volume poor/

CONFIRMED COMEX VOL. FOR YESTERDAY:  294,557 contracts//  volume: fair/raid //most of our traders have left for London

FEB 5 /2021

INITIAL STANDINGS FOR FEB COMEX GOLD
Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
9645.300 OZ
Malca
300 kilobars
Deposits to the Dealer Inventory in oz 64,237.698 oz

Brinks

Deposits to the Customer Inventory, in oz
290.435
Oz
Delaware
No of oz served (contracts) today
708 notice(s)
70800 OZ
(2.20 TONNES
No of oz to be served (notices)
10,235 contracts
1,023,500 oz)
31.835 TONNES
Total monthly oz gold served (contracts) so far this month
23,199 notices
2,319,900 OZ
72.160 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 deposit into the dealer

i) Into Brinks dealer:  64,237.698 oz
total deposit:  64,237.698  oz

total dealer withdrawals: nil oz

we had  1 deposits into the customer account

i) Into Delaware; 290.635

we had  1 gold withdrawals from the customer account:

i)Out of Malca: 9645.300 oz (300 kilobars)

We had 1  kilobar transactions

ADJUSTMENTS:  dealer to customer Brinks and JPM

(dealer to customer)
Brinks  4,243.932

The front month of FEB registered a total of 10,943 CONTRACTS FOR A LOSS OF 233 CONTRACTS.  WE

HAD 1816 CONTRACTS FILED ON THURSDAY SO WE GAINED A GIGANTIC 1583 CONTRACTS OR 158,300 OZ REFUSED TO MORPH INTO LONDON BASED FORWARDS AND AS SUCH NEGATED A FIAT BONUS.  IT IS NOW OUR BANKERS TURN TO FIND BADLY NEEDED PHYSICAL. THIS QUEUE JUMP IS ENORMOUS!

MARCH LOST 31 contracts to stand at 2467

APRIL lost 343 contracts to stand at 402,086

We had 708 notice(s) filed today for 70800 oz

FOR THE FEB 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and  0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 708  contract(s) of which 111  notices were stopped (received) by j.P. Morgan dealer and 190 notice(s) was (were) stopped/ Received) by J.P.Morgan//customer account and 14 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 (23,199) x 100 oz , to which we add the difference between the open interest for the front month of  (FEB 10,943 CONTRACTS ) minus the number of notices served upon today (708 x 100 oz per contract) equals 3,343,400 OZ OR 103.993 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 (23,199 x 100 oz  PLUS 10,943 OI) for the front month minus the number of notices served upon today (708} x 100 oz which equals 3,343,400 oz standing OR 103.993 TONNES in this active delivery month of FEBRUARY. This is a HUGE amount  standing for GOLD IN  FEB

WE GAINED A HUGE 1583 CONTRACTS OR 158,300 OZ REFUSED TO MORPH INTO LONDON BASED FORWARDS AS NOW OUR BANKER FRIENDS WILL TRY THEIR LUCK TO FIND METAL ON THIS SIDE OF THE POND.  

NEW PLEDGED GOLD:  

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

121,233.331 PLEDGED  APRIL 3/2020: SCOTIA:3.7708 TONNES

290,795.495 oz  JPM  9.04 TONNES

1,048,677.37 oz pledged June 12/2020 Brinks/32.618 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:  2,191,837.332 oz                                     68.17 tonnes

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 535.82 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 103.993 tonnes

CALCULATION OF REGISTERED THAT CAN BE SETTLED UPON:

total registered or dealer  19,418,618.075 oz or 604.00 tonnes
total weight of pledged:  2,191,837.332 oz or 68.17 tonnes
thus:
registered gold that can be used to settle upon: 17,226,781.0  (535,82 tonnes)
true registered gold  (total registered – pledged tonnes  17,226,781.0 (535.82 tonnes)
total eligible gold: 19,762,363.742 , oz (614.69 tonnes)

total registered, pledged  and eligible (customer) gold  39,180,980.817 oz 1,218.69 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  1092.35 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 5/2021

And now for the wild silver comex results

And now for the wild silver comex results

INITIAL STANDING FOR SILVER/FEB

FEB. SILVER COMEX CONTRACT MONTH//INITIAL STANDING

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
692,823.320 oz
CNT
DELARWARE
HSBC
Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
27,011.150 oz
CNT
Delaware
No of oz served today (contracts)
94
CONTRACT(S)
(470,000 OZ)
No of oz to be served (notices)
509 contracts
 2,545,000 oz)
Total monthly oz silver served (contracts)  1606 contracts

8,030,000 oz)

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

total dealer deposits: nil        oz

i) We had 0 dealer withdrawal

total dealer withdrawals: nil oz

we had 2 deposits into the customer account (ELIGIBLE ACCOUNT)

i) Into CNTl  22,039.850 oz

ii) Into Delaware: 4971.300 oz

JPMorgan now has 193.906 million oz of  total silver inventory or 48.71% of all official comex silver. (193.906 million/398.174 million

total customer deposits today: 27,011.150    oz

we had 3 withdrawals:

i) out of CNT:
611,618.770  oz
ii0 Out of Delaware:
3026.00
iii) Out of HSBC:
78,179.540 oz

total withdrawals 692,823.310  oz

We had 1 adjustments:

dealer account to customer: Loomis:  600,300.421

Total dealer(registered) silver: 151.449million oz

total registered and eligible silver:  398.174 million oz

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

FEBRUARY saw a LOSS of 27 contracts to stand at 603. We had 120 notices filed on THURSDAY. So we gained 93 contracts or an additional 465,000 oz will stand for delivery on this side of the pond. 

MARCH LOST 4150 contracts DOWN to 116,919.April gained another 8 contracts to stand at 191

The total number of notices filed today for FEB 2021. contract month is represented by 94 contract(s) FOR 470,000 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  1606 x 5,000 oz = 8,030,000 oz to which we add the difference between the open interest for the front month of FEB (603) and the number of notices served upon today 94 x (5000 oz) equals the number of ounces standing.

Thus the FEB standings for silver for the FEB/2021 contract month: 1606 (notices served so far) x 5000 oz + OI for front month of FEB(603)- number of notices served upon today (94) x 5000 oz of silver standing for the Jan contract month .equals 10,575,000 oz. ..VERY STRONG FOR A NON ACTIVE  FEB MONTH.

We gained 93 contracts or an additional 465,000 oz will stand for delivery over here.

TODAY’S ESTIMATED SILVER VOLUME :108,150 CONTRACTS // volume high/

FOR YESTERDAY  115,716  ,CONFIRMED VOLUME//high 

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

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

end

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  FALLS TO -0.51% ((FEB 5/2021)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -1.12% to NAV:   (FEB 5/2021 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/0.51%(FEB 5/2021)

(courtesy Sprott/GATA

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

NAV 19.52 TRADING 18.86///NEGATIVE 3.37

END

And now the Gold inventory at the GLD/

FEB 5/WITH GOLD UP $20.10 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1159.84 TONNES

FEB 4/WITH GOLD DOWN $42.05 TODAY: STRANGE: HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.34 TONNES ADDED INTO THE GLD///INVENTORY RESTS AT 1159.84 TONNES

FEB 3/WITH GOLD DOWN 20 CENTS TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1157.50 TONNES

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 5 / GLD INVENTORY 1159.84 tonnes

LAST;  994 TRADING DAYS:   +225.11 TONNES HAVE BEEN ADDED THE GLD

LAST 894 TRADING DAYS// +  393.34TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY

end

Now the SLV Inventory/

FEB 5/WITH SILVER UP 70 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 659.278 MILLION OZ

FEB 4/WITH SILVER DOWN 0.54 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 10.079 MILLION OZ FROM THE SLV..//INVENTORY RESTS AT 659.278 MILLION OZ//

FEB 3/WITH SILVER UP 38 CENTS TODAY: A MIND NUMBING: 56.784 MILION OZ “DEPOSIT” INTO THE SLV at 3 pm AND A WITHDRAWAL OF 7.99 MILLION OZ FROM THE SLV AT 5 PM//WITH THESE CHANGES IN SILVER INVENTORY AT THE SLV INVENTORY RESTS AT 669.357 MILLION OZ//

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./.

XXXXXXXXXXXXXX
FEB 5/2021

SLV INVENTORY RESTS TONIGHT AT

659.278 MILLION OZ

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

ii) Important gold commentaries courtesy of GATA/Chris Powell

JSKim:  he is correct the real short squeeze is in gold and silver and not Gamestop

(Kim)

J.S. Kim: The real short squeeze is in gold and silver, not GameStop

 Section: 

11:06a ET Thursday, February 4, 2021

Dear Friend of GATA and Gold:

Market analyst John S. Kim writes today that the real financial market squeeze is in gold and silver, not GameStop and AMC Entertainment shares.

Kim writes: “If Redditors were outraged by the 140% short position of hedge funds against GameStop shares, they should be outraged by the 5,000% (in excess of 500 times) of traded silver ounces in the New York silver futures market and the excess of 100 times of traded gold ounces in the New York gold futures market almost every year in comparison to annual global gold and silver production, as my noble friends at GATA have tirelessly worked to expose.”

Kim’s analysis is headlined “The Real Squeeze is in Gold and Silver, not in GameStop and AMC” and it’s posted at his internet site here:

https://maalamalama.com/wordpress/the-real-short-squeeze-is-in-gold-and-…

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

END

Von Greyerz pounds the table that gold shortages are severe not only in London but in Jew York

Kingworldnews/Von Greyerz

Gold shortages are severe in London and New York, von Greyerz tells King World News

 Section: 

11:12a ET Thursday, February 4, 2021

Dear Friend of GATA and Gold:

Swiss gold fund manager Egon von Greyerz, in comments today to King World News, says severe shortages of gold have developed among London Bullion Market Association members and the futures market in New York as the Bank for International Settlements tries to help bullion banks close their short positions. He predicts that the gold market will reverse upward soon and the derivatives scam in gold will end soon too.

Von Greyerz’s comments are posted at KWN here:

https://kingworldnews.com/greyerz-there-are-major-physical-shortages-in-…

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

END

Good sign: state legislatures are now eying sound money reforms

State legislatures eye sound-money reforms

 Section: 

By JP Cortez
Money Metals News Service, Eagle, Idaho
Monday, February 1, 2021

More state lawmakers than ever are introducing sound-money legislation in the opening days of the 2021 legislative session.

Several states will consider measures to remove sales or general excise taxes from the purchases of gold, silver, and other precious metals. Many other states will weigh bills to eliminate income taxes on gold and silver. Still others will decide whether state funds can be held in physical gold and silver — and may even consider establishing a state-chartered bullion depository.

With debt-funded spending and money-printing in our nation’s capital proceeding at breakneck speed, will states see the wisdom of enacting measures to counteract these policies of currency debasement?

Here’s a rundown on newly introduced state legislation. …

… For the remainder of the report:

https://www.moneymetals.com/news/2021/02/01/state-legislatures-eye-sound…

END

Nigeria’s central banks orders banks to close all cryptocurrency accounts

(Bloomberg)

Nigeria’s central bank orders cryptocurrency accounts to close

 Section: 

By Ruth Olurounbi
Bloomberg News
Friday, February 5, 2021

Nigeria’s central bank ordered deposit-taking banks and other financial institutions to immediately close accounts transacting in or operating cryptocurrency exchanges, saying such deals are “prohibited.”

Failure to comply with the directive will result in “severe regulatory sanctions,” according to a circular sent to financial institutions on Friday and published on the central bank’s website.

… 

The country’s Securities and Exchange Commission said in September it would regulate trade in digital currencies to provide protection for investors and to ensure that transactions are transparent.

The tough stance by the central bank of Africa’s largest economy comes after protests in October against the excesses of the police’s Special Anti-Robbery Squad, known as SARS, which saw organizers accepting Bitcoins for funding after the government allegedly blocked local payment platforms for collecting donations. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2021-02-05/nigerian-central-bank…

iii) Other physical stories:

“It Can’t Happen Here”

FRIDAY, FEB 05, 2021 – 12:40

Authored by James Rickards via The Daily Reckoning,

The Federal Reserve printed $4 trillion in the years following the 2008 crash, expanding its pre-crisis balance sheet of about $900 billion to roughly $4.5 trillion. Many people thought, if hyperinflation were ever going to happen in the U.S., it would have already.

Well, it never happened. Today, in response to the pandemic and the economic lockdowns that followed, the Fed has cranked up the printing press to even higher levels. It’s printed almost as much money in one year as it printed in the several years after the financial crisis.

On February 26, 2020, the balance sheet was $4.16 trillion. Less than one year later, it’s roughly $7.3 trillion. Meanwhile, America’s M1 money supply spiked 70% last year.

But this blizzard of money-printing has not caused the level of alarm that the post-financial crisis money creation caused. If we didn’t get the hyperinflation then, they say, why should we get it now? Most people are complacent.

They have a point. We still have no hyperinflation or even moderate inflation (except maybe in asset prices).

But I’ve even argued that we won’t see inflation right away. Inflation is not only a product of money creation but also of money velocity. You can print as much money as you want, but if it’s not exchanging hands and there isn’t much turnover, it won’t lead to inflation.

Inflation is at least as much a psychological phenomenon as a monetary phenomenon. And expectations right now are for disinflation.

Because of the lockdowns and their economic fallout, we will likely suffer a recession in the first quarter of 2021. Money velocity is low, so disinflation is the problem in the short term. But that doesn’t mean inflation isn’t coming back or even that hyperinflation isn’t possible once it does.

Inflation will return, and when it does, it could be massive and potentially lead to hyperinflation. All this can happen faster than most people think.

When you hear “hyperinflation,” you might only think of two images.

  • One is a reckless third-world country like Zimbabwe or Argentina printing money to cover government expenses and worker salaries to the point where trillions of local “dollars” or pesos are needed to buy a loaf of bread.
  • The second image is of the same phenomenon in an advanced country such as Germany but long ago. Perhaps you think of grainy, black-and-white photos from the 1920s displaying people carting around wheelbarrows of paper money.

The last thing you probably think of is hyperinflation in a 21st-century developed economy such as the United States. We tell ourselves that hyperinflation might happen in faraway or long-ago places, but it can’t happen here.

Yet, it can happen here.

In fact, the United States flirted with hyperinflation in the late 1970s, when Treasury bonds were denominated in Swiss francs because the dollar was rapidly depreciating and people were losing faith in the dollar. We also flirted with hyperinflation in the late 1910s. Other episodes arose after the Civil War and the American Revolution.

Hyperinflation acts like a deadly virus with no cure. It may be contained for long periods of time, but once it breaks out into a general population, there may be no stopping it without enormous losses.

To explain why, it’s essential to know what hyperinflation is, how it begins and how it feeds on itself.

In a complex system such as the U.S. economy, small initial blunders can have catastrophic consequences once feedback loops and behavioral changes take over.

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

i) Chinese yuan vs USA dollar/CLOSED UP AT 6.4703 /

//OFFSHORE YUAN:  6.4745   /shanghai bourse CLOSED DOWN 5.53 PTS OR .16%

HANG SANG CLOSED UP AT 175.18 PTS OR .60%

2. Nikkei closed UP 437.24 POINTS OR 1.54%

3. Europe stocks OPENED ALL GREEN/

USA dollar index DOWN TO 91.38/Euro RISES TO 1.1986

3b Japan 10 year bond yield: RISES TO. +.06/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 105.70/ 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:: 56.81 and Brent: 59.51

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.43%/Italian 10 yr bond yield DOWN to 0.53% /SPAIN 10 YR BOND YIELD UP TO 0.14%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 0.98: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 0.65

3k Gold at $1797.50 silver at: 26.39   7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble UP 62/100 in roubles/dollar) 74.94

3m oil into the 56 dollar handle for WTI and 59 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 105.70 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 .9032 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0824 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.43%

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 1.1660% early this morning. Thirty year rate at 1.962%

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

6.  TURKISH LIRA:  UP  TO 7.06..

Futures Hit All Time High, Oil Soars Ahead Of Jobs Report

FRIDAY, FEB 05, 2021 – 7:58

With overnight US equity futures rising for a 5th straight day, tracking global markets, the Emini climbed to a new all time high as investors parsed through a flurry of corporate results amid signs the U.S. labor market may be gradually improving, while covid news continued to improve.

At 7:30 a.m. ET, Dow E-minis were up 146 points, or 0.51%, Nasdaq 100 E-minis were up 51.25 points, or 0.39% and S&P 500 E-minis were up 18.75 points, or 0.49%. Some notable moves:

  • Pinterest jumped 11% after the image-sharing company reported better-than-expected quarterly results, benefiting from strong user growth and heavy advertising by e-commerce retailers during the holiday season.
  • Johnson & Johnson rose 2.2% after the drugmaker said it had asked U.S. health regulators to authorize its single-dose COVID-19 vaccine for emergency use, and it would apply to European authorities in coming weeks.
  • Snapchat dropped about 7% after it warned that upcoming privacy changes by Apple could hurt its ad business.
  • GameStop shares were up 8% at $58 after Robinhood eased all trading restrictions.

Europe’s STOXX 600 index was up 0.3% at 410.8, as strong earnings results spurred gains in stocks including Vinci SA, the region’s largest construction company, and drugmaker Sanofi SA. One sign of the rally’s durability: the benchmark Stoxx 600 has risen for five straight days, the longest stretch in a month though slower vaccination rollouts in continental Europe and disappointing industrial data from Germany tempered optimism.

Earlier in the session, MSCI’s gauge of Asian shares outside Japan rose 0.4% while Japan’s Nikkei rallied 1.5%. Asian stocks rose with the regional benchmark posting its biggest weekly gain since early November, after economic optimism and improving coronavirus trends saw U.S. shares reach record highs. Equity benchmarks in the Philippines and Japan led the broad rally, helping the MSCI Asia Pacific Index rise for a fourth day this week. Philippine stocks advanced, erasing an earlier loss, as the central bank said inflation will settle within its target after data showed consumer price gains in January reached the fastest pace in two years. Japanese automakers climbed following a Nikkei report that Apple is in talks with several manufacturers as potential EV partners and strong earnings from Mazda Motor. The company’s stock surged 19%, the most in 12 years. Hong Kong shares were also strong, as short-video service provider Kuaishou Technology nearly tripled in its trading debut following the world’s biggest internet IPO since Uber’s U.S. share sale in May 2019

The S&P 500 and the Nasdaq are set to wrap up their best week since the Nov 3 election as upbeat earnings and economic data boosted optimism about a speedy recovery while a retail trading frenzy appeared to fade following a bout of market volatility last week. With Thursday data showing US jobless claims fell last week to the lowest level since the end of November, investors will be closely watching today’s January payrolls report which as we previewed earlier, could hammer risk assets if it comes in too hot (over 200K), as that would spark fears of roaring reflation and remove the urgency for Biden to pass his stimulus. The BLS data is likely to show U.S. economy added 105,000 jobs in January after 140,000 jobs were lost in December, as pandemic-led restrictions eased. The data is expected at 8:30 a.m. ET (see our full preview here).

Moves in the U.S. stock market indicate “the business cycle has entered an early stage of recovery,” said Nobuhiko Kuramochi, a market strategist at Mizuho Securities. Stocks with cheap valuations are likely to be bought, with expectations for an economic normalization getting a lift thanks to improving economic data and progress in vaccinations, he said.

“The economic data is coming in very strong,” Andrew Slimmon, fund manager at Morgan Stanley Investment Management, said on Bloomberg TV. “The market is going to struggle at some point this year, but at the moment it’s too early because the numbers are still coming through.”

On the political front, President Biden’s drive to enact a $1.9 trillion coronavirus aid bill gained momentum early on Friday as the U.S. Senate narrowly approved a budget plan allowing the passage of the legislation in coming weeks with or without Republican support. The House had already adopted its budget resolution but will likely have to vote again Friday to agree on the Senate’s language. Once that’s done, Democrats will be able to craft a relief bill in the coming weeks that can pass without any Republican votes under special budget rules.

“Following from a positive U.S. trading session on Thursday supported by decent earnings numbers, it looks as though Democrats will go on their own on stimulus and not try to compromise with Republicans, so you might get something closer to the $1.9 trillion rather than a compromise,” said Philip Shaw, chief economist at Investec in London.

In FX, the dollar headed for its best weekly gain in three months, confounding dollar bears and tracing a trading pattern known as the “Dollar Smile”, which in previous years has preceded major U.S. economic rebounds and currency surges. However, on Friday the dollar slipped ahead of a U.S. jobs report, falling against most of its Group-of-10 peers, while Treasuries edged lower. Most major currency pairs traded in a narrow range, with the oil-sensitive Canadian dollar and Norwegian krone gaining the most against the greenback.

“It seems markets are now trying to trade on economic normalisation based on progress in vaccination,” said Arihiro Nagata, general manager of global investment at Sumitomo Mitsui Bank. “The fact that the only currencies that are doing better than the dollar over the past two days are the British pound and the Israeli shekel, the two countries that are going further ahead in vaccination, seems to support that.”

The Norwegian krone led an advance in G-10 as Brent oil rose toward $60 a barrel on expectations OPEC+ is committed to restraining global supplies even as the demand outlook improves. The pound rose a second day after the Bank of England said on Thursday it isn’t close to introducing negative interest rates; gilts edged lower. The Australian dollar advanced in European session after the earlier slipping amid a weaker yuan fixing, and as central bank chief Philip Lowe said interest rates will remain low for “quite a while yet”.

“The market is concentrating on position adjustment as investors want to look at U.S jobs data to see whether or not the dollar’s uptrend is clearly in place and will continue,” said Takuya Kanda, general manager at Gaitame.com Research Institute Ltd.

In rates, longer-term U.S. Treasury yields rose in anticipation of the large pandemic relief bill from Washington as well as on rising inflation expectations. The benchmark 10-year yield stood at 1.165%, a fresh three-week high as Treasury futures traded near session lows, extending a weekly slide, amid steeper losses for gilts and gain for S&P 500 futures. The 10-year yield rebounded to ~1.16% from session low 1.127% reached during Asia hours, is more than 9bp higher on the week; 10-year gilts lag Treasuries by an additional ~3bp following Thursday’s BOE policy decision while bunds keep pace. Bond yields rose in Europe as well, with Germany’s 30-year government bond yield climbing back into positive territory for the first time since September.

In commodities, oil hit its highest level in a year, above $59 a barrel, supported by hopes of a quicker economic revival and supply curbs by OPEC and its allies. Brent crude was up 63 cents, or 1.1%, at $59.47 by 1200 GMT after hitting its highest since Feb. 20 last year at $59.75. U.S. crude was up 54 cents, or 1%, at $56.77, after reaching $57.09, its highest since Jan. 22 last year.

“The conditions still remain supportive for oil markets,” said Jeffrey Halley, analyst at brokerage OANDA. “Oil should find plenty of willing buyers on any material dip.”

In commodities, Brent was on track to rise more than 6% this week. The last time it traded at $60, the pandemic had yet to take hold, economies were open and people were free to travel, meaning demand for gasoline, diesel and jet fuel was much higher. The rollout of COVID-19 vaccines, however, is fuelling hopes of lockdowns being eased, boosting fuel demand. But even demand optimists such as OPEC do not expect oil consumption to return to pre-pandemic levels until 2022. Further boosting the market, a weekly supply report showed a drop in U.S. crude inventories to their lowest since March, suggesting that output cuts by OPEC+ producers are having the desired effect. Gold edged up 0.7% to over $1,805 per ounce, but was still set for its worst weekly dip in four after hitting a two-month low of $1,785.10 on Thursday.

Friday’s earnings highlights include chemicals giant Linde, makeup firm Estee Lauder and biotech Regeneron. Nonfarm payrolls are also due, expected to show a sharp gain for January.

Market Snapshot

  • S&P 500 futures up 0.4% to 3,878.25
  • MXAP up 0.8% to 212.64
  • MXAPJ up 0.5% to 716.31
  • Nikkei up 1.5% to 28,779.19
  • Topix up 1.4% to 1,890.95
  • Hang Seng Index up 0.6% to 29,288.68
  • Shanghai Composite down 0.2% to 3,496.33
  • Sensex up 0.3% to 50,746.72
  • Australia S&P/ASX 200 up 1.1% to 6,840.53
  • Kospi up 1.1% to 3,120.63
  • Stoxx Europe 600 Index up 0.4%
  • German 10Y yield fell 1.8 bps to -0.462%
  • Euro up 0.2% to $1.1982
  • Brent Futures up 1.3% to $59.63/bbl
  • Gold spot up 0.7% to $1,806.22
  • U.S. Dollar Index down 0.16% to 91.38

Top Overnight News from Bloomberg

  • The Senate voted 51-50 to adopt a budget blueprint for President Joe Biden’s $1.9 trillion virus relief package — following nearly 15 hours of wading through amendments from both parties
  • It will take the world as a whole seven years at the current pace before reaching 75% coverage with a two-dose vaccine, a Bloomberg database of Covid-19 shots suggests
  • The dollar’s turnaround is shaking up a consensus on Wall Street that a strengthening recovery would weigh on havens such as the dollar. The opposite appears to be happening, as the prospect of more- generous U.S. government spending and rising Treasury yields have spurred the currency
  • It didn’t take much from the Bank of England for U.K. investors to price out the specter of negative interest rates. Now, their attention is turning just as fast to whether it might wean the nation’s bond market off life- support
  • The U.K. will require travelers from coronavirus hot spots to quarantine starting Feb. 15, the government said, adding flesh to a policy first announced last month
  • A return of the reflation trade is seen pushing the U.S. yield curve higher, though swap markets may be what’s driving the latest extension. Hedging activity in interest rates — from insurance companies contending with record stock gains and investors who were short volatility — may be fueling the climb in longer-dated bond yields

A look at global markets courtesy of Newsquawk

Asia-Pac stock markets traded higher as regional bourses took their cues from the fresh all-time highs on Wall St where focus remained on earnings releases and stimulus hopes, with risk appetite stateside also stoked by encouraging data. ASX 200 (+1.1%) and Nikkei 225 (+1.5%) gained from the open with the broad constructive mood spurring outperformance among cyclicals in Australia and after the RBA reiterated its supportive tone, as well as upgraded its 2020 GDP forecast to -2.0% from -4.5%, while sentiment in Tokyo was underpinned after better-than-expected Household Spending data which showed surprise growth of 0.9% (exp. -1.9%) and as earnings updates also provided a catalyst with SoftBank Corp lifted after it raised FY net guidance. Hang Seng (+0.6%) and Shanghai Comp. (-0.2%) benefitted from the rising tide across stocks but with upside capped by a continued tepid liquidity effort by the PBoC which remained net neutral in today’s open market operations. Nonetheless, Kuaishou Technology stole the limelight on its Hong Kong debut as its shares surged to triple the IPO price which also benefitted its backer and index heavyweight Tencent Holdings, while CNOOC was buoyed after the Chinese oil giant posted a record preliminary production for last year. Finally, 10yr JGBs were subdued with demand sapped by the gains across stocks but with downside stemmed following a recent rebound in USTs and with the BoJ present in the market today for a total of JPY 640bln of bonds mostly concentrated in 5yr-25yr maturities.

Top Asian News

  • Asia Stocks Cap Best Week in Three Months as Philippines Rallies
  • SoftBank May See Record Vision Fund Profit on Market Rebound
  • Tencent Music Said to Tap Banks for $5 Billion Hong Kong Listing
  • Kuaishou Surges 161% In Biggest Technology IPO Since Uber

Equities in Europe trade mostly higher (Euro Stoxx 50 +0.6%) as sentiment tilts towards risk-on ahead of the looming US jobs data. US equity futures meanwhile trade with broad-based gains across the ES (+0.4%), NQ (+0.3%), and YM (+0.4%), whilst the RTY (+0.7%) narrowly outperforms. In terms of the broader environment in the midst of earnings season, eyes remain on the rate of vaccinations alongside any vaccine resilience shown by emerging COVID-19 variants, whilst markets also eye policymakers for any hints of recalibration to fiscal or monetary packages as the recovery stage is underway – as US Senate adopted budget measures to fast-track the USD 1.9tln Biden stimulus plan, although the swift passage will depend on any opposition for Democrats. Back to Europe, the FTSE MIB (+1.5%) outperforms following reports that the PD Chief said the party will support a Draghi government and expects Draghi has an 80-90% chance of forming a government, whilst the SMI (-0.3%) continues to be weighed on by Nestle (-1.3%) following yesterday’s report of potential toxic metal levels in its baby food products. Sectors are mostly firmer with a cyclical bias. Travel & Leisure top the charts whilst JNJ submitted an application to US FDA for EUA of its single-shot Janssen COVID-19 vaccine, thus paving the way for another vaccine addition, and recent reports telegraphed the experimental mixing of vaccines in a bid to make distribution and inoculation more flexible. Oil & Gas also resides as a winner amid price action in the crude complex, meanwhile telecoms underperform after T-Mobile (-2.5%) underwhelmed markets post-earnings, in turn denting its largest shareholder Deutsche Telekom (-1%). In terms of large-cap earnings-related movers, BNP Paribas (+3.9%) is supported despite missing on revenue and FICC expectations as the board is to propose a dividend equivalent to 21% of 2020 net income, and is looking into share buybacks contingent on the ECB. Sanofi (+2%) is buoyed as earnings matched forecasts and the group confirmed its target regarding the expansion of business operating income margin.

Top European News

  • Report on Credit Suisse Banker’s Fraud Shows Years of Lapses
  • Sanofi Bolsters Cost-Cutting in Pursuit of More Blockbusters
  • BNP Paribas Warns Fixed Income to Slow After Uneven Results
  • Deutsche Bank Single-Handedly Revives Europe’s Floater Market

In FX, it could purely be a case of consolidation ahead of the monthly BLS update, but also a function of external factors and perhaps some technical impulses given the fact that the DXY failed to sustain upward momentum towards the next bullish chart target in the form of the 100 DMA (91.839 as of today) having eclipsed Thursday’s peak by a fraction at one stage (91.600 vs 91.581), and is now back below 91.500 nearer a 91.329 low. However, the US Treasury yield backdrop and curve profile is also a tad less supportive, oil remains on the boil and precious metals are trying to find a footing after their fall from grace, with Gold back on the Usd 1800/oz handle, albeit just and Silver straddling Usd 26.50/oz.

  • AUD/CAD/GBP – The Aussie is back on the 0.7600 handle with independent impetus from firmer than forecast retail sales data and a relatively upbeat RBA SOMP, albeit underlining the likelihood that ultra-accommodative policy will be maintained for the next 3 years at least, while the Loonie remains anchored around 1.2800 with one eye on crude prices and the other on the upcoming Canadian labour report. Elsewhere, Sterling is still elevated in wake of the BoE’s emphatic not now if at all NIRP message, with Cable probing 1.3700 and Eur/Gbp under 0.8750 even though the Euro is trying to claw back losses against the Buck and other peers. Note, little reaction to latest comments from BoE’s Broadbent – see 9.08GMT post on the headline feed for details – or weaker than expected Halifax house prices, as the Pound awaits more from Governor Bailey around the same time as NFP, but in cross terms 1.2 bn option expiries between 0.8760-70 could either cap rebounds or keep bears at bay.
  • CHF/EUR/NZD/JPY – Also firmer vs the Dollar or clawing back recent losses, as the Franc draws encouragement from hold just above 0.9050 again, the Euro recovers from a slightly deeper pullback from 1.2000 where 1.1 bn option expiry interest resides, the Kiwi bounces from under 0.7150 and Yen through 105.50 after hitting a sub-105.60 trough.
  • SCANDI/EM – Similar theme of Nok outperformance relative to the Sek, almost irrespective of Norwegian and Swedish fundamentals, like a decline in manufacturing output vs pronounced pick-up in Swedish new industrial orders, as the former continues to track oil in the main and latter run into resistance circa 10.1000 against the Eur. Conversely, the Try has breached 7.1000 vs the Usd following yet more hawkish statements from the CBRT as Governor Agbal pledges to take action before any rise in inflation beyond the forecast path, noting upside risks via January CPI and adding that policy will have a strong inflationary bias. All this in contrast to an unchanged RBI with guidance to maintain and accommodative stances as long as requited, and the PBoC staying neutral in terms of daily liquidity operations ahead of China’s Lunar New Year holidays, keeping the Inr and Cny/Cnh steady 72.9000 and 6.4700 respectively.

In commodities, WTI and Brent front-month futures trade on a firmer footing with gains of some USD 0.5-0.6/bbl seen across the benchmarks as WTI eyes USD 57/bbl to the upside (vs low USD 56.43/bbl) and Brent meanders on either side of USD 59.50/bbl (vs. low USD 50/bbl). The complex is seemingly garnering strength from the stock market performance, whilst also being underpinned on vaccine hopes and OPEC+ flexibility. Fresh catalysts have remained light during early European hours, with markets awaiting the Jan US jobs report for the next scheduled impetus. Elsewhere, spot gold and silver trade in positive territory in what seems like a breather from the recent volatility and losses seen in the complex, whilst a softer dollar helps keep prices afloat, with spot gold marginally north of USD 1800/oz after rebounding from yesterday’s USD 1784/oz low – and spot silver trades on either side of USD 26.50/oz after briefly dipping below USD 26/oz yesterday. In terms of base metals, LME copper is back on the rise and steadily making its way towards USD 7,500/t as the softer Dollar and risk-on tilt in the markets support the sentiment-influenced metal. Meanwhile, industrial metals overnight saw gains heading into the Chinese Lunar New Year, with Dalian iron ore futures ending the session over 4% higher as higher demand expectations after the Chinese New Year propped up prices.

US Event Calendar

  • 8:30am: Jan. Change in Nonfarm Payrolls, est. 105,000, prior -140,000
  • 8:30am: Jan. Average Hourly Earnings YoY, est. 5.0%, prior 5.1%; MoM, est. 0.3%, prior 0.8%
  • 8:30am: Jan. Unemployment Rate, est. 6.7%, prior 6.7%
  • 8:30am: Dec. Trade Balance, est. – $65.7b, prior -$68.1b
  • 3pm: Dec. Consumer Credit, est. $12b, prior $15.3b

DB’s Jim Reid concludes the overnight wrap

Global risk assets advanced for a 4th day running yesterday, as positive sentiment among investors was supported by continued progress on the vaccine rollouts, hopes for further fiscal stimulus, as well as strong economic data. By the close, the S&P 500 had risen a further +1.09% to close at a fresh all-time high, in an advance that saw 387 companies in the index rise on the day. Small-caps outperformed with the Russell 2000 gaining +1.98% to reach a record high itself, and while the NASDAQ (+1.23%) similarly reached new highs, it was banks that saw the strongest performance on a sector basis. The S&P 500 Banks industry group was up a further +2.77%, as the Europe’s STOXX Banks index also rose +2.68%. Meanwhile the VIX index of volatility continued to fall from last week’s peak, down -1.1pts to 21.8pts, and European bourses shared in the rally, as the STOXX 600 (+0.56%), the DAX (+0.91%) and the CAC 40 (+0.82%) all moved higher. As an aside, GameStop fell -42.11%, while AMC pulled back -20.96%, as the deflation of this bubble continues. GameStop is now -89% lower than its intraday day highs, but is also remarkably still up roughly +200% YTD.

Yesterday I put out a CoTD comparing the run up of some tech stocks today with radio stocks of the 1920s. See here for more but the parallels are there. Both share common features like being in sectors that were/are likely long-term winners but at elevated and rapidly increasing valuations, both saw huge retail participation and were also helped by very loose monetary conditions. So is history repeating itself? Maybe with fresh stimulus cheques coming any potential bubbles could intensify further first.

On the topic of fresh stimulus, the US Senate started voting last night on a budget resolution for the 2021 fiscal year, following the House passing its version on Wednesday evening. This would allow President Biden’s Covid-19 relief package to pass with a simple party line vote. The topic of the minimum wage hike to $15/hr came up again yesterday, with the White House saying that President Biden “feels strongly” that it should go into effect. However it is unclear whether it would fit the rules of budget reconciliation. Regardless, Speaker Pelosi said that even if it does not make this bill, Democrats will try to rally support for it in the follow on recovery package that is expected later in the year.

Asian markets are following Wall Street’s lead this morning with the Nikkei (+1.24%), Hang Seng (+0.55%), Shanghai Comp (+0.53%) and Kospi (+0.68%) all up. Futures on the S&P 500 are also up +0.20%.

So with reflation being the trade of the week and with equities climbing to new highs yesterday, some big moves actually came from selected sovereign bond markets, where a number of fresh milestones were reached on both sides of the Atlantic. In the UK, gilt yields jumped and sterling rose after the Bank of England struck a hawkish tone. Most notably, although the BoE signalled that negative rates “might become desirable at some point, they said they weren’t likely to happen anytime soon. The MPC stating that they would require at least six months preparation to get it operational thus meaning August was the earliest we could see it. By then we should be in full reopening mode.

Furthermore, though the BoE forecast that the economy would contract by around -4% in Q1, they projected that it would bounce back strongly after that, with CPI inflation above the BoE’s 2% target by Q1 2022. In response, gilts noticeably underperformed other sovereign bonds, with 10yr yields rising +6.9bps to 0.44%, their highest level since March, while sterling was the strongest G10 currency yesterday, with a +0.19% gain against the US dollar.

At the other end of the spectrum, the biggest outperformer yesterday were Italian BTPs once again, which reached a big milestone as the spread of their 10yr yields over bunds fell a further -5.1bps to 1.0%, falling beneath the 1% mark for the first time in over 5 years. The moves came as former ECB President Mario Draghi began consultations in order to form a new government, with a number of senior political figures sounding a conciliatory note towards the idea. The outgoing foreign minister and former Five Star leader Luigi Di Maio said that his party had a “duty” to hear Draghi, while former PM Silvio Berlusconi said that the decision to give Draghi a mandate to form a government “goes in the direction we’ve advocated for weeks”.

As well as the UK and Italy, there were some reasonably notable levels seen elsewhere, with yields on 10yr bunds up +1.0bps to -0.45%, a level not seen since back in September. Treasury moves were more subdued however, with 10yr yields around unchanged at +0.2bps to 1.139%, which came as the dollar strengthened +0.39% to a fresh 2-month high.

Later today, markets’ attention will be on the US jobs report for January, which is also the first of the Biden presidency. In terms of what to expect, our US economists are now forecasting a +200k increase in nonfarm payrolls, after total jobless claims fell by 1.73 million since the last report and the ADP print surprised to the upside (+174k). This comes after the -140k decrease in jobs back in December (which was the first monthly decline since the height of the pandemic). However, that increase likely won’t be enough to shift the unemployment rate, which they think will remain unchanged at 6.7%, so it would be no surprise if the Biden administration seize upon the jobs report to pressure Congress to act swiftly on their stimulus proposal. Ahead of the jobs report, there were some promising signs from the latest weekly initial jobless claims, with the numbers for the week through January 30 falling to a 9-week low of 779k (vs. 830k expected), while the continuing claims figure for the week through January 23 fell to a post-pandemic low of 4.592m (vs. 4.7m expected). That said, both figures remain well above pre-pandemic levels.

In terms of the pandemic, restrictions were relaxed all over the US yesterday as case counts continue to fall as the holiday wave is squarely behind us in many states. Here in the UK, the Times reported that officials are working on a “vaccine passport” to facilitate tourism.

Looking at yesterday’s other data, US factory orders for December rose by +1.1% (vs. +0.7% expected), while the November data was also revised up three-tenths. Separately, Euro Area retail sales rose by +2.0% in December (vs. +2.8% expected), and the January construction PMIs from Germany (46.6) and the UK (49.2) were both beneath the 50-mark in contractionary territory.

To the day ahead now, and the aforementioned US jobs report for January is likely to be the highlight. Other data releases include December data on German factory orders, Italian retail sales and the US trade balance. Separately, central bank speakers include BoE Governor Bailey and the ECB’s Vice President de Guindos.

3A/ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 5.53 PTS OR .16%   //Hang Sang CLOSED UP 175.18 PTS OR .60%    /The Nikkei closed UP 437,24 POINTS OR 1.54%//Australia’s all ordinaires CLOSED UP 1.07%

/Chinese yuan (ONSHORE) closed UP AT 6.4703 /Oil UP TO 56.81 dollars per barrel for WTI and 59.51 for Brent. Stocks in Europe OPENED ALL GREEN//  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4703. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4745 TRADE TALKS STALL//YUAN LEVELS //TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC/TRUMP TESTS POSITIVE FOR COVID 19  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

b) REPORT ON JAPAN

3 C CHINA

CHINA/USA

Supposedly the USA warship John S McCain has been expelled from the Paracel islands, this  morning.

Your move Mr Biden…

US Warship “Expelled” From South China Sea By PLA Forces

FRIDAY, FEB 05, 2021 – 7:17

The superpower clash between China and the U.S. continued on Friday as a U.S. Navy ship sailed near the Chinese-controlled Paracel Islands in the heavily disrupted South China Sea, only to get an stern rebuke (and what some would call, an appropriate response) from Beijing.

The USS John S. McCain, an Arleigh Burke-class destroyer, entered the waters near Paracel islands Friday without China’s permission on a “freedom of navigation operation,” the first known operation in the heavily disputed area under the new Biden administration. 

Shortly after, CGTN reported that the People’s Liberation Army (PLA) “expelled” the destroyer after it “trespassed” into China’s territorial waters. Tian Junli, a spokesperson for the PLA Southern Theater Command, said the move “seriously infringed China’s sovereignty and security.” He said PLA troops in the region are on “high alert at all times to protect the peace and stability of the region.”

The heavily disputed waterway is one of the flashpoints in the U.S.-China relationship, including a trade war, technology war, U.S. sanctions, Hong Kong and Taiwan.

U.S. sailings of warships near the militarized islands in the South China Sea have angered Beijing in the past.

The U.S. Navy’s 7th Fleet said the destroyer USS John S. McCain “asserted navigational rights and freedoms in the vicinity of the Paracel Islands, consistent with international law”.

Meanwhile, according to the latest naval deployment map from Stratfor, other US naval ships located just off China’s coast include the carrier CVN 71 Roosevelt, and the LHA 6 America large Amphibious group.

Last month, USS Theodore Roosevelt entered the South China Sea for what the Navy called a routine freedom of navigation operation. There’s more here than meets the eye as a great power competition continues to brew between both countries.

Over the past year, the U.S. has increased aerial patrols, and U.S. Navy warship sails through the disrupted region and near and through the Taiwan Strait, an exercise aimed at angering Beijing. Such “close encounters” and US flyovers and sail throughs in the South China Sea and near Taiwan become more frequent during the tail-end of the Trump presidency.

As Al Jazeera notes, “Last year Chinese military jets made a record 380 incursions into Taiwan’s defence zone, with some analysts warning tensions between the two sides were at their highest since the mid-1990s.”

Earlier in the week Monday two US reconnaissance planes flew near Taiwan’s airspace at a moment Taipei has begun to publicly acknowledge for the first time the presence of both American and Chinese PLA jets sometimes in the same aerial defense zones, which constitutes an alarming and highly dangerous situation.

end

4/EUROPEAN AFFAIRS

UK

Not good: UK vaccine Minister dictates that all over the age of 50 must be vaccinated before the lockdown lift begins. Nonsense!

PFWNews

UK Vaccine Minister: All Over Age 50 Must Be Vaccinated Before Lockdown Lift Begins

FRIDAY, FEB 05, 2021 – 2:00

Submitted by PFW News,

UK Vaccine Minister Nadhim Zahawi says that lockdown restrictions will not be lifted until all over the age 50 receive the COVID-19 vaccine, a decision he claims could push the return to normalcy into the summer.

UK Vaccine Minister Nadhim Zahawi (L) seated next to Editorial Director of BBC News Kamal Ahmed (R)

Zahawi, the top bureaucrat over the country’s vaccine roll out, clarified when speaking to The Sun on Tuesday that the government ideally wants to see the top 9 age categories vaccinated in the first phase of dose administration, which includes everyone over 50.

“Is your message to the country and to your own back benches, forget mid-February, forget the 8th of March … not until we’ve done everybody over the age of 50 can we can we really talk about getting back to life, anything like normal?” a radio host with The Sun asked Zahawi, to which the Minister responded …

“We’ll do that as quickly as possible … the prime minster has made it very clear that on the 22nd of February there will be a road map for how we intend to reopen the economy, beginning with schools on the 8th of March and then gradually the rest of the economy.”

Zahawi would insist that the UK is on pace to have jabbed nearly everyone in the most Covid vulnerable group – those over 70 – within the next 11 days.

Despite this group accounting for the vast majority of Covid deaths, the Minister claims this is still not enough to lift freedom crushing restrictions.

“We want to reopen schools, reopen our economy, get our lives back, but never have to go back into another severe lockdown like the one we’re all experiencing and suffering from at the moment,” he said.

The Vaccine Minister would espouse a slow moving method to lifting lockdown measures that relies heavily on data.

“You’ve got to make sure that your vaccination program has protected the top nine categories in phase one – that is 99% of mortality.”

Prime Minister Boris Johnson announced during a Tuesday Downing Street press conference that there would indeed be a road map for exiting lockdown presented on February 22.

The people of England are currently strapped under harsh lockdown rules that restrict them from being social with anyone outside their home or “support bubble” without a government approved “reasonable excuse.”

People breaking these rules can face fines, including an £800 penalty for those attending house parties of more than 15 people and a £10,000 fine for the organizers, reports BBC News.

end
EU/USA
The EU may offer a temporary tariff freeze during the first call with Biden
(zerohedge)

EU May Offer Temporary Tariff Freeze During First Call With Biden

FRIDAY, FEB 05, 2021 – 8:45

The European Commission may offer a six-month tariff suspension to US President Joe Biden during an upcoming phone call with Commission President Ursula von der Leyen, according to Bloomberg, citing ‘people with knowledge of her preparation.’

The call is expected to occur in the coming days.

The goodwill gesture would seek a freeze on levies related to aircraft and metal disputes affecting $18 billion worth of European and US products, which would allow both sides to negotiate a longer-term agreement.

The conversation between the two, the first since Biden’s inauguration last month, will come at a pivotal moment in transatlantic relations. The EU is keen to put an end to the long-running spats — the aircraft dispute has lasted 17 years – – while also resetting relations with the U.S., which hit a low point during Donald Trump’s term when he said the bloc was a “foe” of Washington. -Bloomberg

It’s very important that we put those bilateral trade irritants behind us and really concentrate on the broader international trade agenda,” said EU Trade Commissioner Valdis Dombrovskis during a Feb 1. online event organized by the German Marshall Fund.

Any easing of the tariffs would build on other signs of agreements between the allies. Europeans are optimistic that a long-running dispute over how to tax global tech companies could be reached, and a deadlock over who would become the next head of the WTO appeared to be close to a resolution. -Bloomberg

Meanwhile, the World Trade Organization has authorized the EU and US to hit each other with $11.5 billion of tariffs over illegal aid provided to Boeing and Airbus – which affect everything from aircraft parts to an “array of unrelated sectors such as wine, spirits, olives, tractors and video games,” according to the report.

Attempts to reach a settlement stalled last year after the Trump administration boosted the punitive tariffs on Dec. 30 – a move which followed a 2018 duty on steel to the tune of 25%, and a 10% levy on aluminum products on the basis of national security concerns. The EU disputed the tariffs – which were based on a Cold War-era law and affected around $3.4 billion of US goods.

The EU retaliated by targeting goods including Levi Strauss & Co. jeans, Harley-Davidson Inc. motorcycles, and bourbon whiskey.

If no agreement is made by June, the EU will have the option of imposing an additional $3.6 billion euros (US$4.3 billion) of American goods.

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

RUSSIA/USA
Russia is not a problem, China is.  Now Biden vows to defend democracy globally and he will not roll over to Russia.
(zerohedge)

Biden Vows To “Defend Democracy Globally”, Says “Days Of Rolling Over” To Russia “Are Over”

THURSDAY, FEB 04, 2021 – 18:20

On Thursday afternoon President Biden gave a much anticipated and wide-ranging speech laying out his foreign policy agenda during a visit to the State Department. As expected much of it was a repudiation of Trump’s “America First” vision – though without mentioning Donald Trump by name. His address to State Department diplomats and staff was centered around the theme of his words: “America is back. Diplomacy is back at the center of our foreign policy.”

Alarming for anyone who has called for an end to the vision which sees Washington as essentially acting the like to ‘global police force’ – which unfortunately became a (disastrous) reality starting in the Bush years and under the neocons, Biden vowed that as commander-in-chief he would “defend democracy globally”.

He urged for the US to rebuild “the muscles of democratic alliances that have atrophied from four years of neglect and abuse.” He emphasized that”We can’t do it alone.”

Of course, the big question is what will that look like, with many expecting a return to the kind of ‘humanitarian interventionism’ abroad and liberal internationalism that defined the Obama years. This often took the form of covert wars (with the foremost example being Syria) and military interventions under the guise international coalitions (such as NATO’s war on Libya) aimed at regime change.

“We must meet this new moment of accelerating global challenges – from a pandemic to the climate crisis to nuclear proliferation – that will only be solved by nations working together in common cause,” Biden said in the afternoon address. “That must start with diplomacy, rooted in America’s most cherished democratic values: defending freedom, championing opportunity, upholding universal rights, respecting the rule of law, treating every person with dignity.”

Here are some of the highlights and significant foreign policy changes in US posture…

Russia

Biden said that “we will not hesitate to raise the costs on Russia.” At a moment Russian opposition leaders are lobbying Washington for the targeted use of Magnitsky sanctions on Putin’s inner circle, Biden actually mentioned the imprisoned opposition activist Alexey Navalny by name.

He called on the Kremlin to release Navalny “immediately and without condition” while expressing that authorities had targeted him for “exposing corruption” of Putin and top Kremlin leadership. And further:

He said that he “made it clear to President Putin, in a manner very different from my predecessor, that the days the United States rolling over in the face of Russia’s aggressive action” – pointing to cyber attacks from the SolarWinds breach and the poisoning of opposition figure Alexei Navalny – “are over.”

Yemen

As expected, the president announced the formal end of US offensive operations in the war-torn country:

Biden announced an end to all American support for offensive operations in Yemen and said he will appoint an envoy to focus on the long-standing conflict. Calling the conflict “a war that has created humanitarian and strategic catastrophe,” Biden also made clear the US will “continue help and support to Saudi Arabia.”

While it was announced earlier that a “pause” on all weapons transfers to Saudi Arabia and UAE would take immediate effect for an executive review, it’s unclear precisely what it means that the US will continue its “support” for the Saudis as they continue pummeling Yemen with bombs.

Countering China; Myanmar Coup 

Biden emphasized the need to counter China:

“American leadership must meet this new moment of advancing authoritarianism, including the growing determination of China to rival the United States and the determination of Russia to damage our democracy,” he said.

He also addressed the Myanmar crisis, vowing to “impose consequences” – likely in the form of targeted sanctions against military leaders who oversaw the arrests of civilian leaders.

“The Burmese military should relinquish the power they have seized, release the activists and officials they have detained, lift the restrictions on telecommunications and refrain from violence.”

Halting Trump’s troop draw downs

Biden noted in the speech that Defense Secretary Lloyd Austin will soon be overseeing a global posture review, which will require halting the Trump-ordered troop draw downs from Germany for the time being.

“America’s alliances are among our greatest assets, and leading with diplomacy means standing shoulder to shoulder with our allies and key partners once more,” he said.

Defending Freedom & Democracy Abroad in ‘New Era’

Emphasizing during the introductory portion of his remarks that there will be a ‘new era’ in US foreign policy, he said the US will return to strengthening alliances through greater engagement and diplomacy which is rooted in America’s “most cherished democratic values.” And further:

In his first major foreign policy address as president, Biden said that defending freedom, championing opportunity, upholding universal rights and respecting the rule of law are “the grounding wire of our global power” and give the U.S. “an abiding advantage” on the world stage.

“Though many of these values have come under intense pressure in recent years, even pushed to the brink in the last few weeks, the American people are going to merge from this stronger, more determined and better equipped to unite the world in fighting to defend democracy – because we have fought for it ourselves,” he added in the prepared remarks.

END
RUSSIA VS BIDEN/USA
Putin responds:
(zerohedge)

Russia Blasts Biden’s “Aggressive” Speech; Navalny Back In Court On New Charges

FRIDAY, FEB 05, 2021 – 13:03

The Kremlin has blasted what a spokesman called “aggressive and unconstructive rhetoric” after President Biden in a Thursday key foreign policy address from the State Department demanded the immediate release of dissident activist and politician Alexei Navalny.

Underscoring that Moscow will ignore and rebuff such measures to interfere in internal legal matters, the spokesman said Friday, “This is a very aggressive and unconstructive rhetoric, unfortunately,” and added, “any hints of an ultimatum are absolutely unacceptable to us,” according to TASS.

During the Thursday speech outlining his foreign policy vision, Biden said that “we will not hesitate to raise the costs on Russia” while specifically invoking Navalny by name, also pinpointing alleged Russian involvement in cyber attacks related to the SolarWinds breach.

Via Moscow City Court/AP

Notably he also said the days of the United States “rolling over in the face of Russia’s aggressive action… are over” and demanded that Russian authorities release Navalny “immediately and without condition”. Biden said Putin has “targeted” Navalny for “exposing corruption”.

At a moment Russian opposition leaders are lobbying Washington for the targeted use of Magnitsky sanctions on Putin’s inner circle, Biden actually mentioned the imprisoned opposition activist by name, something very significant.

On Tuesday a Moscow court sentenced Alexei Navalny to three-and-a-half years in prison for “unlawful conduct” stemming from probation violations related to a 2014 embezzlement conviction. It ends up being a little over 2.5 years given time already served previously under house arrest. Navalny and his supporters have called the proceedings a “shameless fabrication” of justice. For a couple weekends running his supporters have taken to the streets in what authorities have deemed ‘illicit’ demonstrations.

Navalny is back in court Friday where he faces separate charges. Specifically he’s accused of “defaming a World War Two veteran” according to reports.

According to CNN this new case relates to “comments he made last June on social media. He had criticized a video by state media channel RT in which various people expressed support for controversial changes to the Russian constitution. Veteran Ignat Artemenko, 94, was among them.”

More details on the case are as follows:

Last June, Russia’s Investigative Committee launched a probe into Navalny on charges of defamation, after the politician slammed people featured in a video promoting the constitutional reform that allowed an extension to President Vladimir Putin’s rule as “corrupt stooges,” “people without conscience” and “traitors.”

The authorities maintained that Navalny’s comments “denigrate (the) honor and dignity” of a World War II veteran featured in the video. If convicted, Navalny faces a fine or community service.

Also on Friday EU foreign policy chief Josep Borrell made a controversial trip to Russia to meet with Foreign Minister Sergey Lavrov in Moscow. The trip has reportedly angered Navalny supporters. Despite Borrell previously condemning Navalny’s arrest and court proceedings, he still made the trip with no pre-conditions.

Opposition activists hoped that he would cancel the trip in protest, or at least make the Navalny affair the focus of his trip.

end

IRAN/USA
High levels talks on Iran are happening right now. They have two centrifuges going and probably they are weeks away from a bomb.
(zerohedge)

Biden Convenes “Urgent” High Level NSC Meeting To Talk Iran Nukes

FRIDAY, FEB 05, 2021 – 9:03

Axios has a new report underscoring the “urgency President Biden feels about Iran” – given on Friday the White House is convening a National Security Council principals committee meeting focused on what to do about the Islamic Republic’s nuclear program. This after within the past week multiple international headlines suggested (somewhat misleadingly) that Iran is “weeks away” from being capable of producing a nuclear weapon.

Biden campaigned firmly on a commitment to immediately restore US participation in the 2015 nuclear deal (JCPOA) brokered under the Obama administration; however, this is already stalled given the White House position that Tehran must return to conformity to uranium enrichment and other caps stipulated by the deal.

Iran has of course responded by saying it’s exclusively the US side (under Trump) which broke off the deal, thus it’s up for Washington to “move first” by dropping all sanctions which have served to cripple the Iranian economy.

Here are the key details regarding Friday’s high level NSC meeting, according to Axios:

  • Principals committee meetings — held in the Situation Room and attended by the secretaries of Defense and State and other key national security players — are designed to discuss policy at the highest level before presenting recommendations to the president.
  • One of the main action items Friday is whether to push toward returning to the nuclear deal before the June presidential elections in Iran or wait until after, a source familiar with the issue said

Earlier in the week national security advisor Jake Sullivan told reporters that “We are actively engaged” with European partners, and further, “The consultations will produce a unified front when it comes to our strategy.”

The statement came in response to European Union offers to mediate a full restoration of of the JCPOA, which initially Washington seemed to rebuff.

On Thursday French President Emmanuel Macron put forward a plan for him to personally act as a broker for renewed talks. However Iran has viewed any offer for “stricter” talks that would move the goal posts in terms of the deal with hostility.

“I do believe we do need to finalize, indeed, a new negotiation with Iran,” Macron said. “We have to address ballistic missile issues, and we have to address the stability of the region, and this comprehensive agenda is to be negotiated now,” he added.

Again, Iran has spoken out vehemently against anything that resembles “new negotiations” while insisting it’s up for the side that tore up the deal in the first place to show that it can conform first.

END
IRAN/USA
This is not good:  USA border agents nab a group of Iranians trying to enter the uSA through Mexico
(zerohedge)

US Border Agents Nab Group Of Iranians

THURSDAY, FEB 04, 2021 – 19:00

U.S. Customs and Border Protection (CBP) agents arrested a group of Iranians who illegally crossed into the US Monday evening.

CBP said five women and six men were nabbed near San Luis, Arizona, on a bridge near County 21st Street and the Salinity Canal. Agents detained the group shortly after illegally crossing the Mexico–U.S. border.

There was no mention in the CBP press release if any group member belonged to terrorist organizations. The group is in processing with CBP while their fate is yet to be determined.

The illegal crossing comes shortly after the Biden administration reversed significant border protections by former President Trump.

Former Acting CBP Commissioner Mark Morgan was heard on Newsmax this week calling out the new administration for their borderless security, ultimately making America less safe.

The U.S. and many countries in the West have repeatedly declared that Iran is the principal state sponsor of terrorism. So when a bunch of Iranians are apprehended on the border, it’s a big deal because of their potential connections to radical groups.

The Immigration Reform Law Institute has outlined 10,000 illegal immigrants from countries designated as state sponsors of terrorism are living within the U.S. 

Biden reversing the travel ban on predominantly Muslim countries, halting border wall construction, and suspending deportations may result in a more dangerous country.

END

6.Global Issues

CORONAVIRUS UPDATE/VACCINE UPDATE//GLOBE

AstraZeneca Jab Works Against Mutant COVID; JNJ Asks For US Approval: Live Updates

FRIDAY, FEB 05, 2021 – 9:45

Summary:

  • AstraZeneca jab effective against COVID mutant
  • JNJ asks US for regulatory approval
  • UK orders Curevac jab
  • Sputnik V and CanSino shot may see joint trial
  • Germany considers another lockdown extension
  • France faces potential third lockdown
  • Infection rate in England drops
  • Sinopharm delivers first vaccines to Hungary

* * *

Vaccines are once again the top COVID-19 story on Friday as AstraZeneca and Oxford have returned with even more data about their jab. This time, the data purport to show that the vaccine is, in fact, effective against the B.1.1.7 mutant strain first isolated in Kent. Anxiety about the ability of a mutating coronavirus has intensified ever since trial data appeared to show that Novavax’svaccine was only 50% effective in blocking the mutant strain from South Africa.

It wasn’t the only vaccine news from Friday morning: Johnson & Johnson shares rose after the company said it had asked US health regulators to authorize its single-dose COVID-19 vaccine for emergency use, and that it would apply to European authorities in the coming weeks. The company, the world’s biggest drugmaker, released data showing the vaccine, which will be doled out in a single dose, isn’t as effective as its rivals.

The vaccine data dropped a week ago, and already western nations are warring over supplies. A group of EU leaders from Austria, Greece, Denmark and the Czech Republic sent a letter to European Commission President Ursula von der Leyen warning that JNJ should be forced to keep vaccines which must reportedly be sent to the US for “fill and finishing” in Europe – and find some other way to get the job done – if shipping the vaccines overseas might somehow jeopardize EU access to the vaccines.

As COVID cases finally show some signs of easing in the UK, the British government has made a deal with CureVac whereby the company will deliver an initial supply of 50MM doses against COVID-19 variants. Britain will require travelers arriving from coronavirus hot spots to quarantine in hotels starting Feb. 15, almost three weeks after the plan was announced by Prime Minister Boris Johnson.

In response to news in the west that a trial would be run involving the Moderna and Pfizer COVID vaccines, Russian vaccine developers are reportedly in discussions with China’s CanSinoto test a combination of their shots reportedly aimed at showing better results. In Hungary, the first EU member to approve both the Russian and Chinese coronavirus vaccines, Prime Minister Viktor Orban said Friday that Hungary could gradually return to normality this spring by inoculating the most exposed people by March 15.

As case numbers and hospitalizations decline in the EU, Germany is reportedly considering yet another extension of its COVID-19 lockdown, while French President Emmanuel Macron faces increasing pressure to consider a third lockdown in France.

Globally, COVID cases declined day over day, with the overall trend seen as moving lower still. The total number of cases was just under 105MM, while global deaths climbed to 2.3MM.

In the US, cases were higher day over day, but overall trends remained lower across the board.

Hospitalizations nationwide continued a streak of declines that began in early January.

Here are more COVID stories from overnight:

  • Latvia will extend its Covid state of emergency to April 6, the government said in a statement on Friday. Schools will remain closed and new rules on shopping will be implemented to contain the spread of the virus (Source: Bloomberg).
  • Mutations that are part of the fast-spreading coronavirus strain found in the U.K. emerged months earlier than the variant was identified, underscoring the need for faster monitoring of the virus’s changes, according to a study led by BioNTech SE’s chief executive officer (Source: Bloomberg).
  • One in 65 people in England were infected with Covid-19 in the week ending Jan. 30, down from one in 55 previously, according to the ONS. The infection rate in London has fallen to 2.1% from 2.7% (Source: Nikkei).
  • China’s Sinopharm will deliver to Hungary enough vaccines to inoculate 250,000 people in each month between February and April, Hungarian Prime Minister Viktor Orban’s chief of staff says (Source: Nikkei).

* * *

Finally, Pfizer said Friday that it had withdrawn an application for emergency use authorization of its COVID-19 jab in India after apparently failing to meet the drug regulator’s demand for a local study on its safety and ability to provoke an immune response.

end
CANADA

Canada posts blowout job loss in January as shutdowns bite

OTTAWA, Feb 5 (Reuters) – Canada lost far more jobs than expected in January, with the declines driven by coronavirus lockdowns in populous Ontario and Quebec, while the unemployment rate rose sharply, Statistics Canada data showed on Friday.

Canada lost 212,800 jobs in January, the largest monthly decline since the height of the first wave in April 2020, more than four times the average analyst prediction of a loss of 47,500 jobs. The unemployment rate climbed to 9.4%, its highest level since August, missing analyst expectations of 8.9%.

Employment remains 4.5% below pre-pandemic levels.

“It’s definitely a disappointment,” said Derek Holt, vice president of Capital Market Economics at Scotiabank. “We’re going through a soft patch and better days are ahead. So I would view it as a transitory loss.”

Both Ontario and Quebec shuttered many nonessential businesses in late December, seeking to curb an expected surge of COVID-19 cases following the holiday season. New infections soared across Canada in early January, but have edged back down to an average 4,061 new cases daily.

Quebec has said it will start loosening restrictions next week, while Ontario has allowed schools in some cities to reopen and is expected to announce next week a path for businesses to reopen.

With many retailers shuttered in January and the restrictions also hitting hotels and food services, service sector employment plunged by 236,200 jobs. Employment in the goods sector rose by 23,400.

Full-time employment was up by 12,600 while part-time employment fell by 225,400 positions.

“There are some aspects that aren’t quite as dire as the headline would suggest,” said Doug Porter, chief economist at BMO Capital Markets, pointing to the losses being concentrated in part-time work and sectors hit by the shutdowns.

“When we look ahead … the fact that the losses are so heavily confined to a couple of sectors that were shut down does indicate that if and when things begin to open up again, those job losses should be reversed relatively quickly,” he added.

The Canadian dollar was trading 0.3% higher at 1.2792 to the greenback, or 78.17 U.S. cents.

The large decline in employment was seen reinforcing the Bank of Canada’s pledge to hold interest rates at 0.25% into 2023.

Canada’s trade deficit, meanwhile, narrowed more than expected in December, Statistics Canada data showed. Exports rose on energy products, while imports fell on consumer goods.

END

7. OIL ISSUES

No question about it:  Biden’s energy plan will be very costly for consumers

(Daniel Lacalle)

end

8 EMERGING MARKET ISSUES

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

Euro/USA 1.1986 UP .0020 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//DRAGHI AS PM//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 105.70 UP 0.124 (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 1.3691   UP   0.0019  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.2794 DOWN .0032 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  FRIDAY morning in Europe, the Euro ROSE BY 20 basis points, trading now ABOVE the important 1.08 level RISING to 1.1986 Last night Shanghai COMPOSITE DOWN 5.63 PTS OR .16% 

//Hang Sang CLOSED UP 175.18 PTS OR .60% 

/AUSTRALIA CLOSED UP 1,07%// EUROPEAN BOURSES ALL GREEN

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 175.18 PTS OR .60% 

/SHANGHAI CLOSED DOWN 5.53 PTS OR .16% 

Australia BOURSE CLOSED UP 1.07% 

Nikkei (Japan) CLOSED UP 437.24  POINTS OR 1.54%

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1801.80

silver:$26.48-

Early FRIDAY morning USA 10 year bond yield: 1.166% !!! UP 2 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

The 30 yr bond yield 1.962 UP 2  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 91.38 DOWN 15 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

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And now your closing  FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.06% DOWN 0 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.06.%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.13%//DOWN 0 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.54 UP 1 points in basis points yield from yesterday./

the Italian 10 yr bond yield is trading 41 points higher than Spain.

GERMAN 10 YR BOND YIELD: FALLS TO –.44% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.08% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.2035  UP     .0069 or 69 basis points

USA/Japan: 105.43 DOWN .145 OR YEN UP 15  basis points/

Great Britain/USA 1.3716 UP .0044 POUND UP 44  BASIS POINTS)

Canadian dollar UP 44 basis points to 1.2781

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The USA/Yuan,  CNY: closed    ON SHORE  (UP)..AT 6/4667

THE USA/YUAN OFFSHORE:  6.750  (YUAN up)..AT 6.4627

TURKISH LIRA:  7.06  EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield  at +0.06%

Your closing 10 YR bond yield UP 0 IN basis points from THURSDAY at 1.166 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.941 UP 0 in basis points on the day

Your closing USA dollar index, 91.06 down 47  CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED DOWN 14.39 22.39%

German Dax :  CLOSED DOWN 3.57 POINTS OR .03%

Paris Cac CLOSED UP 50.72 POINTS 0.90%

Spain IBEX CLOSED UP 92.10 POINTS or 1.13%

Italian MIB: CLOSED UP 182.87 POINTS OR 0.80%

WTI Oil price; 56.84 12:00  PM  EST

Brent Oil: 59.32 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    74.66  THE CROSS LOWER BY 0.90 RUBLES/DOLLAR (RUBLE LOWER BY 90 BASIS PTS)

TODAY THE GERMAN YIELD RISES  TO –.44 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 :  56.97//

BRENT :  59.42

USA 10 YR BOND YIELD: … 1.171..up 1 basis points…

USA 30 YR BOND YIELD: 1.980 up 4 basis points..

EURO/USA 1.2042 ( UP 83   BASIS POINTS)

USA/JAPANESE YEN:105.38 UP .191 (YEN DOWN 19 BASIS POINTS/..

USA DOLLAR INDEX: 91.00 DOWN 52 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.3736 UP 64  POINTS

the Turkish lira close: 7.06

the Russian rouble 74.66   UP 0.89 Roubles against the uSA dollar. (UP 89 BASIS POINTS)

Canadian dollar:  1.2765 UP 60 BASIS pts

German 10 yr bond yield at 5 pm: ,-0.44%

The Dow closed UP 92.38 POINTS OR 0.30%

NASDAQ closed UP 30.80 POINTS OR 0.23%


VOLATILITY INDEX:  21.04 CLOSED DOWN .73

LIBOR 3 MONTH DURATION: 0.192%//libor dropping like a stone

USA trading today in Graph Form

Stocks Surge Most Since June Despite Redditor-Rout, Crypto Spikes To New Highs

FRIDAY, FEB 05, 2021 – 16:15

The WSB Big-Shorts Raid has roundtripped (crashing 42% this week)…

Source: Bloomberg

But, on the heels of moar and moar stimmies and promises…

…US equity markets exploded higher (Small Caps up almost 8% for their best week since June!)…amid a dismally-disappointing jobs print! Makes sense, right, bad news is good news for MOAR free money!!!

Which may not come as a total surprise when you realize that last week saw the largest alpha drawdown (hedge fund edge) since 2009…and somebody needed to do something… think of the children!!

The question is – how much longer can this continue before we are just too stuffed full of fake money…

Energy stocks continued their meltup along with crude as Healthcare lagged on the week…

Source: Bloomberg

The most-crowded stocks in N. America have performed well since Wednesday as the top 50 crowded longs are up ~6.7% while the crowded shorts are down ~7.9%. Much of this came on Thursday, with the +8.0% spread between the top 50 crowded longs and shorts being the largest spread we’ve seen since we began tracking the data in 2010.

Source: Bloomberg

Most Shorted Biotechs ripped higher this week, the biggest two-week gain since May…

Source: Bloomberg

GME gained 17% today but lost 80% on the week…

VIX collapsed back to a 20 handle this week – its lowest in 2 months..

Treasury yields surged this week with the long-end dramatically underperforming amid a heavy calendar of corporate issuance and more stimmy talks…

Source: Bloomberg

10Y Yields spiked up to the early January highs and reversed… for now…

Source: Bloomberg

The yield curve continued to steepen dramatically with 2s10s at its highest since April 2017…

Source: Bloomberg

The dollar ended the week marginally higher after today’s dismal jobs data sparked hope for more stimmys and triggered a tumble in the world’s reserve currency…

Source: Bloomberg

And we note that US equities have notably decoupled from the USD in the last few weeks…

Source: Bloomberg

It was a huge week for crypto led by Ethereum’s rip to new record highs…

Source: Bloomberg

Ethereum soared this week, topping $1760 at its highs…

Source: Bloomberg

Bitcoin surged back above $38,000…

Source: Bloomberg

Which left Bitcoin at its weakest relative to Ethereum since August 2018…

Source: Bloomberg

Gold futures bounced back above $1800 today after an ugly week…

Silver ended the week unchanged after a massive roundtrip on the Reddit-Raiders ramp…

The reversal in silver happened right as its ratio to gold hit a critical support level from 2014…

Source: Bloomberg

Oil prices surged this week (by the most since October) with WTI topping $57 – its highest since January 2020…

Finally, did the US equity market get ahead of itself again relative to the constant flow of liquidity gushing into the world?

Source: Bloomberg

Because remember, the market is NOT the economy…

Source: Bloomberg

a)Market trading/LAST NIGHT/USA

b)MARKET TRADING/USA//Non farm payrolls

non farm payrolls; huge miss!

January Payrolls Miss: Only 49K Jobs Added As Unemployment Rate Tumbles To 6.3%

FRIDAY, FEB 05, 2021 – 8:33

Following last month’s dismal unemployment print, which saw the first contraction since April in December payrolls, expectations were high for a solid rebound in January – maybe too solid – and unfortunately while jobs did grow in January, the final number of +49,000 came in well below the 105K consensus estimate, if up solidly from December’s downward revised -227K.

The change in total nonfarm payroll employment for November was revised down by 72,000, from +336,000 to +264,000, and the change for December was revised down by 87,000, from -140,000 to -227,000. With these revisions, employment in November and December combined was 159,000 lower than previously reported.

Looking below the surface, private payrolls, which exclude government jobs, rose by just 6,000 in January, a far cry from the 163K expected, while government jobs rose by 43,000 in the month, led by gains in state and local government education.

While the headline payrolls print was clearly disappointing, there was better new below the surface as hourly earnings rose 0.2% M/M, just below the 0.3% expected, but on an annual basis hourly earnings surged 5.4%, unchanged from last month’s upward revised print and above the 5.0% expected.

Some more good news: the unemployment rate for all workers tumbled from 6.7% to 6.3%, beating consensus estimates of 6.7%, with the unemployment rate for blacks sliding from 9.9% to 9.2%, while the Hispanic unemployment rate also slumped from 9.3% to 8.6%.

Here is a breakdown of where the key job changes in January:

  • In January, employment in professional and business services rose by 97,000, with temporary help services accounting for most of the gain (+81,000). Job growth also occurred in management and technical consulting services (+16,000), computer systems design and related services (+11,000), and scientific research and development services (+10,000). These gains were partially offset by job losses in services to buildings and dwellings (-14,000) and in advertising and related services (-6,000).
  • In January, employment increased in local government education (+49,000), state government education (+36,000), and private education (+34,000). In both public and private education, pandemic-related employment declines in 2020 distorted the normal seasonal buildup and layoff patterns. This likely contributed to the job gains in January.
  • Wholesale trade continued to add jobs in January (+14,000). However, employment in the industry is 263,000 below its February level.
  • In January, employment in mining increased by 9,000, with a gain of 8,000 in support activities for mining. Mining employment is down by 133,000 since a recent peak in January 2019, though employment in the industry showed little change for several months prior to the uptick in January.
  • In January, employment in leisure and hospitality declined by 61,000, following a steep decline in December (-536,000). In January, employment edged down in amusements, gambling, and recreation (-27,000) and in accommodation (-18,000). Employment in food services and drinking places continued to trend down (-19,000). Employment in leisure and hospitality fell by 8.2 million during March and April, increased by 4.9 million from May to November, and then declined by 597,000 over the past 2 months.
  • Retail trade lost 38,000 jobs in January, after adding 135,000 jobs in December. Over the month, employment declined in general merchandise stores (-38,000), electronics and appliance stores (-29,000), and nonstore retailers (-15,000). These job losses were partially offset by gains in food and beverage stores (+15,000), clothing and clothing accessories stores (+15,000), and health and personal care stores (+14,000). Employment in retail trade is 383,000 lower than in February.
  • Employment in health care declined by 30,000 in January. Within the industry, job losses occurred in nursing care facilities (-19,000), home health care services (-13,000), and community care facilities for the elderly (-7,000).
  • Employment in transportation and warehousing declined by 28,000 in January and is 164,000 lower than in February. In January, job losses occurred in warehousing and storage (-17,000) and in couriers and messengers (-14,000); however, employment in these industries is higher than in February by 97,000 and 137,000, respectively. Employment in air transportation increased by 15,000 over the month but is 105,000 lower than in February.
  • Employment in manufacturing changed little over the month (-10,000), following 8 months of growth. Within the industry, durable goods lost 17,000 jobs in January.
  • Construction employment changed little over the month (-3,000), after increasing for 8 consecutive months. However, employment in the industry is down by 256,000 since February.
end
The payroll report is quite ugly.  Of all of job gains it was government at a 88% increase
(zerohedge)

Who’s Hiring And Who’s Firing: Government Accounted For 88% Of All January Job Gains

FRIDAY, FEB 05, 2021 – 12:22

It may not have been as ugly as the December payrolls report (which we today learned was actually -227K, far worse than the -140K initially reported), but coming in at just 49K, January’s job gains were less than half the 105K expected. Worse, of that 49K, a whopping 43K was government jobs meaning that just 6K private jobs total were added in January, a tiny fraction of the 163K consensus forecast.

To be sure, the household survey was stronger, with a 539k rise in payroll-concept-adjusted employment in January, while the unemployment rate fell 0.4% to 6.3%, which however reflected a drop in the labor force participation rate (-0.1pp to 61.4%) and the unemployment rate adjusted for misclassification (“employed, not at work, other”) also fell by 0.4pp to 6.9%. The number of workers reporting being on temporary layoff fell by 293k to 2,746k, while the number of permanent job losers decreased by 133k to 3,503k. As a result, the share of unemployed workers reported being on temporary layoff fell to 27.0% vs. 28.4% in December.

And while at the aggregate level the picture is mixed and depends on which survey one looks, at the discrete sector level (which comes from the establishment survey), the perspective was downright ugly with job gains in just 48% of industries and – as noted above – the government accounting for almost all of the headline gains, with 43K of 49K jobs, or 88% of all.

In addition to declines in the virus-affected leisure and hospitality (-61k, after a -536K crash in December) and retail (-38k) sectors, payrolls fell across the healthcare (-41k), transportation (-28k), manufacturing (-10k), and construction (-3k) industries.

On the positive side, jobs were added to Information (+16k), Wholesale Trade (+14.3K), Mining and Logging (+9k), and Financial Activities (+8k).

The most notable area of strength (aside from the surge in government jobs of course) was in temporary help services (+81k), which may have benefited from fewer end-of-year layoffs, although one can hardly argue that a surge in temp hiring is the stuff of strong economies.

A full visual breakdown of who was hiring in December, and who wasn’t, is shown below:

Finally, courtesy of Bloomberg, below are the industries with the highest and lowest rates of employment growth for the most recent month. Additionally, monthly growth rates are shown for the prior year.

ii)Market data/USA

JPMorgan’s nationwide consumer data gleaned from foot traffic and credit card points to economic headwinds…..drowning recovery.

JPMorgan’s Nationwide Consumer Data Slips As COVID ‘Dark Winter’ Drowns Recovery

FRIDAY, FEB 05, 2021 – 5:35

The US economy slowed considerably in recent months, as it faced a dark winter of COVID-19 infections. New retail foot traffic and credit card data from JPMorgan points to economic headwinds developing early in the new year.

Despite the vaccine rollout and stimulus checks that have boosted confidence among stock market investors hoping economic activity will shortly pick up, JPM’s Mislav Matejka showed consumer activity is off to a slow start.

We think February will remain problematic from the dataflow perspective, but the delta will start to look much more favorable on this front from March-April,” Matejka said. 

Experian foot traffic data on a year-over-year basis, more specifically, focus on North America, has materially slumped since late September and moved lower into the third week of January.

Meanwhile, economic forecasters have suggested stronger growth for the first quarter due to a massive vaccination campaign where some 33.7 million doses have already been administered.

“There’s nothing more important to the economy now than people getting vaccinated,” Federal Reserve Chairman Jerome Powell said last week. 

But Powell admitted, “we’re a long way from a full recovery.” 

… and certainly, that is the case with another stimulus round in limbo.

JPM’s Chase credit card data suggest consumer spending has stalled in late January.

While it could be another couple of weeks until another round of COVID relief is passed, JPM’s consumer data, from retail foot traffic to credit card spending, suggests a robust recovery to begin the year is nowhere to be found.

end
U.S. trade deficit jumps to 12-year high in 2020

WASHINGTON (Reuters) – The United States’ trade deficit surged to its highest level in 12 years in 2020 as the COVID-19 pandemic disrupted the flow of goods and services.

The Commerce Department said on Friday that the trade deficit jumped 17.7% to $678.7 billion last year, the highest since 2008. Exports of goods and services tumbled 15.7% to their lowest level since 2010. Imports of goods and services dropped 9.5% to a four-year low.

The plunge in exports contributed to the economy shrinking 3.5% last year, the biggest drop in gross domestic product since 1946. Trade flows have been gradually improving. For December, the trade deficit narrowed 3.5% to $66.6 billion .

Economists polled by Reuters had forecast the trade gap would shrink to $65.7 billion in December.

Imports of goods rose 1.5% to $217.7 billion in December. Goods exports shot up 4.7% to $133.5 billion.

end

iii) Important USA Economic Stories

A must read…Brandon Smith explains what is going to happen re the COVID 19 lockdowns and the vaccine

(Brandon Smith/Alt Market us.

The Old Mantra Of “Too Big To Fail” Is Exposed As A Lie…

FRIDAY, FEB 05, 2021 – 0:00

Authored by Brandon Smith via Alt-Market.us,

It is a general rule that corrupt economies tend to operate on faith and not on fundamentals. And to be clear, it’s not so much about naive faith that the system is stable or functional. No, it’s more about the masses having faith that the corruption and instability will never be derailed. Most people are not as stupid as the establishment and central bankers think they are – Almost everyone knows the system is broken, they just refuse to consider the possibility that the fraud will be disrupted, or that it will be allowed to fail.

The old mantra “too big to fail” is a lie. NOTHING is too big to fail, and that includes the US economy, the dollar and the elaborate Kabuki theater that keeps them both afloat. All it takes is a single moment, an epiphany that the Ponzi scheme is unsustainable rather than unstoppable.

I’m reminded specifically of the inflationary crisis of Argentina in 2001 – 2002.

Argentina’s economy was highly dependent on foreign capital inflows, and its currency peg to the US dollar, not to mention they were precariously reliant on support from the IMF. The IMF openly validated the government of Argentina and their currency peg model, but foreign capital began to decline and the peg became unsustainable. Without tangible growth in manufacturing and a strong middle class, an economy cannot survive for long. A top down system based on illusory “financial products” and creative accounting is doomed to crash eventually.

All it took was for the IMF to criticize the policies they initially endorsed and announced that they were removing financial aid, and all hell broke loose in Argentina.

Almost overnight the Argentina peso plunged in value, interest rates spiked and inflation struck hard. People poured into the streets and civil unrest erupted. The IMF would later admit it made “errors” in its handling of the Argentina situation, but this was simply spin control designed to protect them from further scrutiny. The IMF avoided most of the blame and has been growing into a monstrous global centralization machine ever since.

I think we are witnessing the beginning of a similar end of mass faith in fraud in the US. The recent Robinhood short squeeze event as well as the current decoupling of physical silver prices from the paper ETF market have accelerated the timetable. Not surprisingly, these moves have forced the establishment to intervene to some extent to essentially stop renegade traders from freely investing. Accusations are flying and deplatforming has ensued. The idea that the system is a functional fraud is gone; The world now knows it is a dysfunctional fraud, and collapse cannot be very far behind.

Furthermore the collusion between banks, hedge funds and Big Tech is blatantly revealed. These relationships are supposed to remain hidden in the ether. They are obvious to anyone with any financial knowledge and sense, but they aren’t supposed to be wielded in the open. Conspirators aren’t supposed to admit to the conspiracy? Right?

Some people might say the establishment has been forced to unmask by activists. Maybe. But, as I have been warning for many years, when criminals start openly admitting to their crimes it is probably because they think that it’s too late for anyone to do anything about it.

The point is, bankers and globalists have ways of avoiding responsibility for the disasters they engineer. When the con-game breaks, they always have patsies to take the fall.

This sets up a bizarre dynamic in which the money elites that constructed the economy like a time-bomb are treated like victims (or heroes) and the people telling the truth about the fraud are treated like villains and criminals. Are activist stock market traders and silver market guerrillas to blame for any crisis that erupts in the near future? No, of course not, but they will be blamed anyway.

That said, propaganda narratives and scapegoats may not be enough to save the bankers this time. They will never allow a major fiscal crash to develop in a vacuum. They need more cover, and they need to have the means to lock down the public to prevent civil unrest or rebellion from spilling over into their backyards. I have long suspected that the covid pandemic is a useful tool in this regard. As I noted in my article ‘How Viral Pandemic Benefits The Globalist Agenda’, published in January of 2020:

Even if a pandemic does not kill a large number of people, it still disrupts international travel, it disrupts exports and imports, it disrupts consumer behavior and retail sales, and it disrupts domestic trade. If it does kill a large number of people, and if the Chinese government’s response is any indication, it could result in global martial law. With many economies including the US economy already in a precarious balancing act of historic debt vs. crashing demand and useless central bank repo market intervention, there is little chance that the system can withstand such a tsunami…”

As we all know, medical martial law in the name of “public health” is being established in most countries regardless of the actual death rate. The insane globalist rantings of the World Economic Forum and Klaus Schwab have been very revealing; Schwab and other elites have even called the pandemic a “perfect opportunity” to execute there agenda for the “Great Reset”.

However, the globalists are highly fallible, and mistakes in judgment have been made. During the Event 201 pandemic wargame on a coronavirus outbreak (conveniently held two months before the real thing happened), the elites forecast at least 65 million initial deaths globally from such a virus. We are a year into the pandemic and nowhere near that kind of death rate. In fact, the death rate is so minuscule (0.26%), that the public is beginning to realize the lockdown mandates are pointless.

In the US, conservative states are moving on and keeping their economies wide open. Half the population is refusing to take the vaccines, and many members of law enforcement are refusing to implement lockdown policies. I don’t think this is what the globalists expected at all. They needed mass fear and they are getting mass defiance.

They’re going to need a bigger threat, or a bigger virus.

This is why I have been repeatedly warning that the talk of reopenings by Biden and other democrats is going to be very short livedI have predicted that Biden will attempt a federal lockdown similar to the Level 4 lockdowns used in Europe and Australia after a couple of months of relative calm. I based this prediction on the covid “mutation” narrative being spread right now by the mainstream media and establishment cronies like Anthony Fauci. It is not hard to see where this is headed.

The globalists must have the “legal” option of restricting public movement as well as large gatherings, and they must have the option of surveillance on individuals 24/7 through contact tracing. This is the only way to prevent rebellion against the Reset and rising anger due to economic turmoil. The veil has been lifted, the conspiracy is being widely broadcast. Martial law alone would only inspire more dissent, medical tyranny in the name of “saving lives” is the ONLY play the globalists have. They have to have help from a large portion of the citizenry, so they must maintain the appearance that they are operating from the moral high ground.

The covid mutation story is clearly the next play, and Bank of America economists appear to agree with me. They recently stated that they see little optimism in terms of a reopening of the economy, and that hard lockdowns will return, possibly in March or April.

Another factor to consider is that the economic crash will have to reach a peak soon because Joe Biden now resides in the White House. If the crash happens in the near term, activist investors can be blamed, Trump can be blamed, and conservatives and liberty activists can be blamed. If the crash happens a year or two from now, only Biden and the globalists will get the blame.

Without lockdowns and scapegoats the scenario will end very badly for the globalists. It might end badly for them anyway. Be ready for more chaos by Spring; I suspect the elites are getting desperate, and if they allow America to go back to normal and for the pandemic to end with a whimper they will never get another chance at their precious Reset.

*  *  *

END
Get use to this:  In a vote Dems push through the $1.9 trillion stimulus as Harris casts her first tiebreaker
(zerohedge)

Senate Dems Push Through $1.9TN Stimulus As Harris Casts First Tiebreaker

FRIDAY, FEB 05, 2021 – 8:05

Democrats are moving to push through President Joe Biden’s $1.9 trillion stimulus plan with or without – and most likely without  – Republican support.

Following an hours-long “vote-o-rama” (a sophisticated legislative procedure, for those who aren’t familiar), VP Kamala Harris cast her first tie-breaking vote to approve the budget plan in the Senate.

The deciding vote came early Friday morning, after about 15 hours of all-night debate, and votes on dozens of amendments. In the end, the Senate found itself in a 50-50 partisan deadlock, allowing Harris to break the tie. But not before a series of amendments were passed to the budget plan that passed the House on Wednesday. Reuters offered an example: the Senate added a measure calling for increased funding for rural hospitals whose resources have been strained by the pandemic.

Given the changes approved by the Senate, the revised bill will now be kicked back to the House, which will need to approve the changes and agree on the Senate’s language. After all that is done, there is still one last step: Democrats will come together to craft the final relief bill, and pass it under special budget rules allowing them to circumvent a Republican filibuster in the Senate. The special rule is called “reconciliation”,

Democratic leaders like Chuck Schumer, the legislative leader in the Senate, said the vote was a “giant first step” toward passing comprehensive coronavirus aid.

Budget Chairman Bernie Sanders added that adoption means help is on the way to those suffering from an “economic collapse.”

“Tonight we can say to them we understand the pain that they are experiencing and we are going to do something about it,” Sanders said.

Dems want to spend the $1.9 trillion to speed COVID-19 vaccines throughout the US, while some of the money would extend to special unemployment benefits that will expire at the end of March and make direct payments to people to help them pay bills and stimulate the economy. Dems also would like to send money to state and local governments dealing the worst health crisis in decades, a measure that Republicans have fought to oppose, arguing it would merely subsidize spendthrift blue states.

Meanwhile, a group of 10 GOP senators who met with Biden at the White House on Monday have sent him a letter pointing to the fact that significant amounts of money already appropriated by Congress have not yet been spent.

end

Here we go again: GME AMC rise as Robinhood lifts trading restrictions

(zerohedge)

GME, AMC Suddenly Panic-Bid As Robinhood Lifts Trading Restrictions

FRIDAY, FEB 05, 2021 – 10:15

Stock trading app Robinhood removed temporary trading restrictions on all stocks including GameStop and AMC Entertainment after a tumultuous week for markets.

The company issued an update on its website late on Thursday, saying:

“There are currently no temporary limits to increasing your positions.”

And that appears to have been enough to enable the buying-panic to resume in these (once) heavily shorted stocks…

GME has been halted twice and is up over 50%…

And AMC has ripped back from deeply red territory…

Earlier in the day, Robinhood users were only able to trade 500 GameStop shares and 5,500 AMC shares, according to Reuters.

Still a long way to go to recover the week’s losses…

Will Micro-cap biotechs get a bid too?

end

Trump refuses to testify at the Senate impeachment hearings claiming they are a public relations stunt

(zerohedge)

Trump Refuses To Testify At “Public Relations Stunt” Impeachment Trial

Yesterday, the Democrats’ House impeachment managers formally invited former President Trump to testify “either before, or during” his Senate impeachment trial (and face cross-examination). Questions would specifically focus on his role in “inciting a mob”  – as the Democrats put it – to “attack” the Capitol on Jan. 6.

Well, Trump’s team has finally come up with their answer, and it’s a resounding “no”. But not only that: Trump advisor and spokesman Jason Miller also denounced the Democrats’ continued fixation with impeachment as “an unconstitutional proceeding” and “a public relations stunt”. Trump’s senate “trial” will proceed on Feb. 9 after the House already passed articles of impeachment, officially making Trump the first president to be impeached twice.

Democrats say following through with the trial is important to ensure that Trump faces “accountability” for the events of Jan. 6, when a crowd of his supporters rallied at the Capitol following a speech by Trump where he urged them to pressure VP Mike Pence to reject the results of the 2020 presidential vote and reinstall Trump for another term. Even though they Dems know full-well that Trump and anyone in his orbit will simply refuse to testify, or simply ignore subpoenas like they did last time, if it comes to that.

But while the trials’ political and theatrical elements are obvious, the real reason Democrats seem so obsessed with impeachment is that if they can swing a conviction, they could then hold a second vote to “disqualify” Trump from ever seeking office again, which would rule out the 2024 run that Trump has promised his supporters (though he’ll be in his late 70s).

From the AP:

Hours after the Democrats’ request was revealed, Trump adviser Jason Miller dismissed the trial as “an unconstitutional proceeding” and said the former president would not testify. Separately, Trump’s lawyers denounced the request as a “public relations stunt.”

A few hours after Jamie Raskin, who is leading the impeachment management team, asked Trump to testify, Trump attorneys Bruce Castor and David Schoen responded that the letter to Trump from the Democrats proves that Democrats “cannot prove your allegations” and that an impeachment trial is too serious “to try to play these games.”

Raskin responded that Trump’s refusal “speaks volumes and plainly establishes an adverse inference supporting his guilt.” Democrats have repeatedly argued that Republicans are resorting to calling the process “unconstitutional” because they can’t defend the former president’s actions, and they point to the many legal scholars who have said the trial is on firm constitutional ground.

“Any official accused of inciting armed violence against the government of the United States should welcome the chance to testify openly and honestly – that is, if the official had a defense,” he said in a statement.

Meanwhile, defense lawyers and many Senate Republicans have argued that the trial is unconstitutional because Trump is no longer in office, even though he was impeached while he was still president. In a test vote in the Senate last week, 45 Republicans voted for an effort to dismiss the trial on those grounds.

end
Senate adopts the Ernst amendment not to raise the minimum wage during the pandemic.
(zerohedge)

Senate Adopts Ernst Amendment To Not Raise The Minimum Wage During Pandemic

FRIDAY, FEB 05, 2021 – 11:29

Authored by Mark Tapscott via The Epoch Times,

An amendment offered by Sen. Joni Ernst (R-Iowa) to prohibit increasing the federal minimum wage while the nation continues grappling with the CCP Virus was unanimously adopted by the Senate late Thursday.

“Adopted by voice vote: Ernst Amendment #767 (Re: Prohibit the increase of the federal minimum wage during a global pandemic) in relation to S.Con.Res.5, Sanders Budget Resolution,” the Senate GOP Floor Monitor tweeted shortly before midnight.

The Sanders Budget Resolution was offered by Senate Budget Committee Chairman Bernie Sanders (I-Vt.) as a means of allowing Senate Democrats to adopt President Joe Biden’s $1.9 trillion CCP virus recovery proposal without support from any of the Senate’s 50 Republicans.

Biden proposed during the campaign and since taking office as President raising the federal minimum wage to at least $15 per hour.

Other Democrats, including Sanders, have pushed for an increase to $23 per hour.

“Tonight, I got the entire Senate – Democrats and Republicans – to agree not to hike the federal minimum wage to $15 per hour during a global pandemic, which would kill jobs and destroy small businesses,” Ernst said shortly after the vote.

The Senate action throws a major obstacle in the way of efforts by Biden and Democratic leaders in both chambers of Congress to boost the minimum wage that Republicans and economists for years have warned kills jobs, especially entry-level positions that are critically important for young people.

Earlier this week, The Epoch Times reported that the U.S. Chamber of Commerce, in calling for a compromise on Biden’s $1.9 Trillion proposal, specifically opposed raising the minimum wage.

iv) Swamp commentaries

House Democrats and 11 Rhinos boot Greene from Committees over Q anon

(zerohedge)

House Democrats And 11 Republicans Boot Greene From Committees Over QAnon

THURSDAY, FEB 04, 2021 – 19:07

House Democrats on Thursday voted to strip Rep. Marjorie Taylor Greene (R-GA) of her committee assignments after arguing that her past support of QAnon disqualified her from holding them.

Lawmakers voted 230-199 to remove Greene from the House education and budget committees, with 11 Republicans joining the Democrats, after the GOP declined to take action themselves, according to The Hill.

The vote came after members of both parties gave impassioned speeches for or against removing Greene – with much of the GOP stepping up to her defense, while at the same time condemning her past comments.

Some Republicans warned Democrats that they were setting a dangerous precedent.

“I think you are, frankly, overlooking the unprecedented nature of the acts that you’ve decided upon, and where that may lead us when the majority changes,” said Rep. Tom Cole (R-OK), the senior Republican member of the Rules Committee.

On Wednesday night, Greene received a standing ovation during a closed-door GOP conference meeting, where she apologized for embracing QAnon. Then on Thursday, Greene said in a House floor speech that she had recently ‘realized the dangers’ of such narratives.

Greene described how she’d “stumbled across” QAnon in late 2017 and began posting about it on Facebook while she was “upset about things and didn’t trust the government.” 

Later in 2018, Greene said, “when I started finding misinformation, lies, things that were not true in these QAnon posts, I stopped believing it.”

Greene also disavowed her previous support for several conspiracy theories, declaring a belief that school shootings are “absolutely real” and that 9/11 “absolutely happened.” 

But as Greene concluded her speech, she adopted a more defiant tone, blasting unnamed Democrats for what she suggested was their encouragement of the violence that, at times, accompanied last year’s national protests against police brutality. –The Hill

If this Congress is to tolerate members that condone riots that have hurt American people, attack police officers, occupy federal property, burn businesses and cities, but yet wants to condemn me and crucify me in the public square for words that I said, and I regret, a few years ago, then I think we’re in a real big problem,” she said, before criticizing the MSM.

“Will we allow the media, that is just as guilty as QAnon of presenting truth and lies, to divide us?” Greene asked, drawing sharp rebuke from House Rules Committee Chairman Jim McGovern (D-MA) who called the comparison “beyond the pale.”

Yet, at the end of the day, Greene’s defense wasn’t enough to overcome the Democrats and 11 Republicans who decided to punched right over a colleague’s past.

end

This is getting ugly: Hedge funds getting death threats.

(zerohedge)

Blowback: Hedge Funds Ramp Up Security Amidst “Death Threats”, “Obscene Messages”

FRIDAY, FEB 05, 2021 – 11:45

Unlike Alexandria Ocasio-Cortez, some hedge funds actually are being threatened. The increase in “hate” toward rich money managers is the result of the Reddit-fueled populist uprising surrounding capital markets.

This “Reddit Rebellion” has prompted wealthy hedgies ramping up their personal and corporate security with Bloomberg reporting today that as a result of last week’s GameStop debacle, “the level of vitriol has experts wondering if merely owning a certain stock, or betting against it, might pose new safety risks.” In fact, short sellers told Bloomberg they had dealt with “death threats, attempts to hack their phones, people trying to enter their offices and obscene messages sent to spouses.”

Christopher Falkenberg, president of security firm Insite Risk Management, told Bloomberg “we now say to clients, ‘Tell us about your positions.’ We’ve never done that before. And we have clients with short positions who are saying to us, ‘We need a new security program.”

Gabe Plotkin, head of Melvin Capital, a hedge fund that suffered billions in losses due to the GameStop short squeeze, says he has hired extra security for his family (and, arguably, his Miami beachfront mansion which is currently in the process of expansion). Plotkin was reportedly the target of “anti-Semitic slurs” and a chorus of insults from the market’s newest participants.

Another famous example is Point 72’s Steve Cohen, who was driven off Twitter by a mob of angry investors. He said his family received personal threats and cited that as the reason for leaving Twitter. 

Days prior to that, Citron Research made a video saying it was getting out of short selling altogether, and that its family had been threatened and contacted repeatedly as a result of its investments. “I’ve never seen such an exchange of ideas of people so angry about someone joining the other side of a trade,” Left commented at the time.

One early critic of now-defunct Wirecard said that “a suspicious car once followed his young son and nanny and took pictures of them”. He also claimed “he was being watched from vehicles parked outside his home — once they even accosted him at his front door.”

But not all short sellers have given up. Muddy Waters’ Carson Block, despite lightening up his short positions, has said he is not going to stop issuing short research. On Thursday, well known Hindenburg Research released a critical report on SPAC Clover Health that was brought to the market by Chamath Palihapitiya.

“Even if they unwound the trades, they represent the establishment. This is going to change things for our clients,” Falkenberg said. In addition to adding private security, many fund managers have been adding to their physical defenses at home, he said.

Falkenberg concluded: “The vitriol is more extreme, focusing not only on their stock positions but also their cultural positions. It becomes inherently more personal, and the trader becomes more of a personal enemy.” He also noted that the threats are part of a “general increase in hostility toward institutions”.

Needless to say, little of this insanity would be manifest across markets if there wasn’t an ocean of excess liquidity making a total mockery of investing. Thanks again, Jerome.

Then again, the only thing that can possibly end this insanity and cleanse the system of all its excesses, is even more “hostility toward institutions”, so one can argue that the best strategy at this point is to cheer on the failed establishment as it rushes to the inevitable and catastrophic culmination of decades of monetary and fiscal absurdity.

end

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

@bank of England: The Monetary Policy Committee voted unanimously to keep Bank Rate at 0.1% and to maintain the amount of quantitative easing at £895bnhttp://b-o-e.uk/MPR-Feb-2021

Bank of England says banks need 6 months for any sub-zero rates

Britain’s banks would need at least six months to prepare for any cut in interest rates below zero, the Bank of England said on Thursday…The British central bank said it would ask banks to get ready for the possibility of negative rates, but that financial markets should not view sub-zero borrowing costs as a foregone conclusion…Britain’s economy would probably shrink by 4% in the first three months of 2021, the central bank said, but it was expected to recover rapidly towards pre-COVID levels over the year…

https://www.reuters.com/article/us-britain-boe-idUSKBN2A41P8

The dollar rallied sharply on the pound’s plunge, which was triggered by fear of the BoE’s negative interest rate warning.  Gold tumbled as much as 2.5% on the dollar rally.

US Initial Jobless Claims fell to 779k from 812k; 830k was expected.  Continuing Claims dropped to 4.592m from 4.785m; 4.7m was expected.

@uscensusbureau: Manufactured Goods new orders, up eight consecutive months, +1.1% to $493.5B (seasonally adjusted) in December 2020https://t.co/huzRs3L0xJ

U.S. productivity falls 4.8% in the 4th quarter to mark biggest drop since 1981

Although productivity rose by 2.6% last year, it only did so because hours worked fell even faster than output.  Output… slid 4.2% in 2020. Hours worked sank by an even larger 6.6%…In the fourth quarter, companies increased output by 5.3%, but hours worked tumbled at an annual 10.7% pace. Both are extremely high.  As a result, unit-labor costs jumped by a 6.8% annual pace in the fourth quarter. They rose by 4.3% for the full year…  https://t.co/DODuGLHgRG

Democrats unveil antitrust bill that could upend the tech sector

Senator Amy Klobuchar, the Chairwoman of the Senate Subcommittee on Antitrust, unveiled sweeping new legislation Thursday that could lead to the greatest expansion of federal power to maintain competition in a century.  The Minnesota Democrat’s bill seeks to require the Justice Department and the Federal Trade Commission to block mergers that would create “monopsony” power, when a firm becomes an overly dominant employer or purchaser of goods and services in a particular market. Monopsonies are the inverse of monopolies, which are firms that are overly dominant sellers of goods and services… https://on.mktw.net/3rkaCuG

Democrats urge Biden to cancel up to $50k in student loan debt by executive action

Senate Majority Leader Chuck Schumer, Sen. Elizabeth Warren and Rep. Ayanna Pressley on Thursday urged President Biden use his executive authority to cancel up to $50,000 in student loan debt for federal student loan borrowers…  https://www.foxnews.com/politics/democrats-biden-cancel-student-loan-debt-executive-action

Mitt Romney proposes giving American families an extra $3,000 a year… per child ages 6 to 17 and up to $4,200 a year for infants to age 6…

https://www.cnbc.com/2021/02/04/mitt-romney-proposes-giving-american-families-an-extra-3000-a-year.html

U.S. to issue executive order to build up capacity to accept refugees   http://reut.rs/2O97HGX

Biden said he will increase US refugee admissions to 125,000 per year [Despite the pandemic?].

Four Fed Presidents (Kaplan, Mester, Bostic, Kashkari) spoke on Thursday.  All issued dovish comments: no QE taper this year, the economy will expand quickly once more people are vaccinated, inflation will be transitory; the US economy will grow 5% to 6% (Evans) this year; but more fiscal stimulus is needed.

Dallas Fed President Kaplan: “We’ll see short-term inflation pressures as the economy reopens, but it will only be transitory.

Chicago Fed President said, “3% inflation would be a problem.”

Food inflation concerns deepen as prices reach highest level since 2014

Corn prices are up 45 per cent from a year ago… soyabeans have jumped 56 per cent… Wheat is up 16 per cent while rice is 27 per cent higher… https://ft.com/content/571a9d

@Ben__Rickert: The world faces two possible outcomes. Out of control inflation or the financial system blowing up because interest rates rise. The Reichsbanks in Weimar, Germany faced the exact same situation. My bet is on inflation.

Sanders and Ocasio-Cortez introduce legislation that would require Biden to declare national emergency on climate change – the ability to direct extra funding to the issue… http://hill.cm/hRPKfiy

Rhode Island senator calls for carbon tax, urges ‘Corporate America to show up’ https://yhoo.it/3rmX55t

The Thirty Tyrants – The deal that the American elite chose to make with China…

American elite decided that democracy wasn’t working for them. Blaming the Republican Party for preventing them from running roughshod over the American public, they migrated to the Democratic Party in the hopes of strengthening the relationships that were making them rich…

    The only people who took Trump seriously were the more than 60 million American voters who believed him when he said he’d fight the elites to get those jobs back…But Trump’s incessant attacks on that elite gave them collective self-awareness as well as a powerful motive for solidarity… And so, the China Class was born

    After correctly identifying the sources of corruption in our elite, the reasons for the impoverishment of the middle classes, and the threats foreign and domestic to our peace, he [DJT] failed to staff and prepare to win the war he asked Americans to elect him to fight

    That Democratic officials intentionally destroyed lives and ended thousands of them by sending the ill to infect the elderly in nursing homes is irrelevant to America’s version of the Thirty Tyrants. The job was to boost coronavirus casualties in order to defeat Trump and they succeeded…

In 1978, as the newly elected mayor of San Francisco, Feinstein befriended Jiang Zemin, then the mayor of Shanghai and eventually president of China. As mayor of America’s tech epicenter, her ties to China helped the growing sector attract Chinese investment… Her alliance with Jiang also helped make her investor husband, Richard Blum, a wealthy man… while her friend Jiang consolidated his power and became the Communist Party’s general secretary by sending tanks into Tiananmen Square. Feinstein defended him… Senate GOP leader Mitch McConnell’s shipbuilder billionaire father-in-law James Chao has benefited greatly from his relationship with the CCP

    The Central Intelligence Agency openly protected Chinese efforts to undermine American institutions. CIA management bullied intelligence analysts to alter their assessment of Chinese influence and interference in our political process so it wouldn’t be used to support policies they disagreed with—Trump’s policies… Biden’s inauguration marks the hegemony of an American oligarchy that sees its relationship with China as a shield and sword against their own countrymen

    The bad news is that the Thirty Tyrants exiled notable Athenian democrats and confiscated their property while murdering an estimated 5% of the Athenian population. The good news is that their rule lasted less than a year.  https://t.co/SyABnseNjc

The Fed balance sheet grew $5.672B for the week ended Wed.  https://www.federalreserve.gov/releases/h41/current/

Today – The January Employment Report should have only an ephemeral effect if that.  The market has become thoroughly perverted by various classes of traders.  As for fundamentals, everyone knows the Fed will keep pumping dough for the foreseeable future and there will be some sort of stimulus package.  The best chance for some type of top to materialize will be when Biden’s Trillions is passed.

Dem Rep. Mad Max Waters: “He absolutely should be charged with premeditated murder because of the lives that were lost for this invasion with his insurrection…”

https://www.zerohedge.com/political/rep-waters-trump-needs-be-charged-premeditated-murder

House impeachment managers ask Trump to testify under oath at his trial

“If you decline this invitation, we reserve any and all rights, including the right to establish at trial that your refusal to testify supports a strong adverse inference regarding your actions (and inaction) on January 6, 2021,” Raskin wrote…[Drawing conclusions from not testifying is verboten in legal cases.]

https://www.cnbc.com/2021/02/04/trump-impeachment-democrats-call-for-testimony-under-oath-from-ex-president.html

Trump attorney David Schoen’s response to Rep. Raskin: “We are in receipt of your latest public relations stunt… there is no such thing as a negative inference in this unconstitutional proceeding.  Your letter confirms what is known to everyone: You cannot prove your allegations against the 45th President of the United States, who is now a private citizen…” https://twitter.com/disclosetv/status/1357429468273467394/photo/1

@RMConservative: Alcee Hastings literally took a bribe as a judge and was one of the only people removed through impeachment in history by a near-unanimous vote. He sits in congress today.

AP: The Maricopa County Board of Supervisors is again refusing to buckle to pressure from Republicans who control the Arizona Senate and turn over elections equipment and ballots from November’s general election[But there was no election fraud!]

https://www.fox10phoenix.com/news/maricopa-county-still-refusing-demand-by-arizona-senate-on-election

Jonathan Turley: We have been discussing how writers, editors, commentators, and academics have embraced rising calls for censorship and speech controls, including President-elect Joe Biden and his key advisersThe erosion of free speech has been radically accelerated by the Big Tech and social media companies, including YouTube. Now YouTube has censored actual testimony given to the United States Senate by Dr. Pierre Kory, who was testifying on different drug treatment

   What is striking is how censorship, blacklists, and speech controls are being repackaged as righteous and virtuous. Indeed, the failure to sign such anti-free speech screeds is a precarious choice for many as writers and publishers call for blacklists.

We are watching the most successful campaign against free speech in the history of the United States. It is being supported by many in the media and academia… true free speech could become a quaint historical relic in the United States.
https://jonathanturley.org/2021/02/04/youtube-censors-senate-testimony-from-doctor-on-possible-covid-drug/

@DailyCaller: Tucker Carlson reveals that Bank of America was flagging the purchasing history of its customers and sending it to the federal government in order to find out if they were involved in the Capitol riot. The feds later interrogated a customer who was cleared of wrongdoing.

https://twitter.com/DailyCaller/status/1357498685811228674

@tomselliott: Chicago spends $22K per pupil and ranks among the top 20 districts in America for teacher salaries. By comparison, Chicago Catholic schools spend $7,500 per student, yield far better results, and have been open since the school year began.

It’s amazing how much panic one honest man can spread among a multitude of hypocrites.”  — Sowell

Impeachment 2.0, Swamp Revealed, Incompetent Economy

By Greg Hunter’s USAWatchdog.com (WNW 467 2.5.2021)

Impeachment 2.0 is gearing up for the trial in the Senate next week.  The Democrats want Donald Trump to testify, and his lawyers say–not going to happen.  They have to prove their case, and they ain’t going to be able to do it says the Trump impeachment tag team of lawyers.  This is another phony impeachment for a guy no longer in office.  The country burns while the Senate fiddles.

If you did not really know how deep the corruption was in the D.C. swamp, you certainly do now.  Just about the time I feel we are finally hitting bottom, another trap door opens and we sink further.  The one thing we have seen in all this fraud with the elections is how deep the swamp really is.  We also now know there is really only just one big criminally, compromised and corrupt party that hates “We the People.”

The economy is still sinking, and it’s not going to bounce back anytime soon.  The incompetence in Washington comes when an illegitimate government is put into power by fraud.  On its face, it is incompetent, and the world knows it.  How long can the confidence game with the dollar and the Treasury market last with the inmates running the asylum?

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

Impeachment 2.0, Swamp Revealed, Incompetent Economy

Well that is all for today

I will see you MONDAY night.

One comment

  1. […] by Harvey Organ, Harvey Organ Blog: […]

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