MAY 17/SMALL RAID ON OUR PRECIOUS METALS FAIL AGAIN TODAY: GOLD UP 75 CENTS TO $1867.80//SILVER UP 9 CENTS TO $28.23//GOLD TONNAGE STANDING AT THE COMEX: 4.9 TONNES/SILVER OZ STANDING 36.655 MILLION OZ//JUNE 2021 OPEN INTEREST REMAINS EXTREMELY HIGH AT 266,351//HUGE NET 2.14MILLION OZ LEAVES THE SILVER COMEX//COMMODITY WATCH: SUPPLY SHORTAGES REPORT//ISRAEL-PALESTINIAN CONFLICT UPDATES/CORONAVIRUS UPDATE/VACCINE UPDATES//SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1867.80   UP $0.80   The quote is London spot price

Silver:$28.23  UP  9 CENTS   London spot price ( cash market)

your data.

 
 
 

Closing access prices:  London spot

i)Gold : $1870.00 LONDON SPOT  4:30 pm

ii)SILVER:  $28.19//LONDON SPOT  4:30 pm

 

PLATINUM AND PALLADIUM PRICES BY GOLD-EAGLE (MORE ACCURATE)

 

 

PLATINUM  $1224.63  DONW $19.23

PALLADIUM: 2908.61 DOWN $5.51  PER OZ.

 

 

James McShirley on the pricing of gold eagles/and silver eagle

James Mc late this afternoon… May 3

Coin premiums to spot widening- Silver Eagles look like around 50%+ to spot. Gold Eagles +$170 to spot. How long can they keep this derivatives charade going?

Jim McShirley

May 5: Jim McShirley:

Meanwhile the separation between physical and spot continues to increase. Gold Eagles are now showing +$180 or more to spot on several popular sites. Silver Eagles are +$13 and up to spot. If you ignore the ticker going by on cable news gold is nearly $2k in the real world, silver $40. That’s still a pittance, but nothing like MSM is presenting to the public.

may 17  Jim McShirley

Forgot to mention the Gold Eagle physical to spot widened another $5 today, now around +$185 or more. Spot has practically become like the GLD, which is little more than a heavily-discounted tracker to the real stuff. Gold coins are indeed MUCH closer to all-time highs than the Crimex price. It will be interesting to see if this keeps blowing out until spot prices are meaningless.

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   0/2

EXCHANGE: COMEX
CONTRACT: MAY 2021 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,867.500000000 USD
INTENT DATE: 05/17/2021 DELIVERY DATE: 05/19/2021
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
332 H STANDARD CHARTE 1
624 H BOFA SECURITIES 2
737 C ADVANTAGE 1
____________________________________________________________________________________________

TOTAL: 2 2
MONTH TO DATE: 1,494

 

ISSUED: 0

Goldman Sachs:  stopped: 0

 
 

NUMBER OF NOTICES FILED TODAY FOR  MAY. CONTRACT: 2 NOTICE(S) FOR 200 OZ  (0.00622 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1494 NOTICES FOR 149400 OZ  (4.6469 tonnes) 

SILVER//MAY CONTRACT

35 NOTICE(S) FILED TODAY FOR 175,000  OZ/

total number of notices filed so far this month  : 7104 for 35,520,000  oz

 

BITCOIN MORNING QUOTE  $45487 UP 1404  DOLLARS 

 

BITCOIN AFTERNOON QUOTE.:$42,500 DOWN 1583 DOLLARS

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GLD AND SLV INVENTORIES:

GLD AND SLV INVENTORIES:

Gold

WITH GOLD UP $0.75AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 A MAMMOTH CHANGE IN GOLD INVENTORY AT THE GLD: . A DEPOSIT OF 7.57 TONNES OF GOLD INTO THE GLD/

WITH RESPECT TO GLD WITHDRAWALS:  (OVER THE PAST FEW MONTHS)

GOLD IS “RETURNED” TO THE BANK OF ENGLAND WHO ARE CALLING IN THEIR LEASES: THE GOLD NEVER LEAVES THE B OF ENGLAND IN THE FIRST PLACE. THE BANK IS PROTECTING ITSELF IN CASE OF COMMERCIAL FAILURE

THIS IS A MASSIVE FRAUD!!

GLD: 1,035.93 TONNES OF GOLD//

Silver

AND WITH NO SILVER AROUND  TODAY: WITH SILVER  UP 09 CENTS

A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A MASSIVE DEPSIT OF 7.844 MILLION OZ//

WITH REGARD TO SILVER WITHDRAWALS FROM THE SLV:

THE SILVER WITHDRAWALS ARE ACTUALLY “RETURNED” TO JPM, AS JPMORGAN CALLS IN ITS LEASES WITH THE SLV FUND.  (THE STORY IS THE SAME AS THE BANK OF ENGLAND’S GOLD). THE SILVER NEVER LEAVES JPMORGAN’S VAULTS. THEY ARE CALLING IN THEIR LEASES FOR FEAR OF SOLVENCY ISSUES.

INVENTORY RESTS AT:

571.664  MILLION OZ./SLV

xxxxx

GLD closing price//NYSE 175.03 UP $0.33 OR  0.19%

XXXXXXXXXXXXX

SLV closing price NYSE 26.15 DOWN $0.04 OR 0.15%

XXXXXXXXXXXXXXXXXXXXXXXXX

 
 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Let us have a look at the data for today

THE COMEX OI IN SILVER ROSE BY A GIGANTIC SIZED 7065 CONTRACTS FROM 175,487 UP TO 182,552, AND CLOSER TO THE NEW RECORD OF 244,710, SET FEB 25/2020. THE GAIN IN OI OCCURRED WITH OUR  $0.88 GAIN IN SILVER PRICING AT THE COMEX  ON MONDAY. IT SEEMS THAT THE GAIN IN COMEX OI IS PRIMARILY DUE TO HUGE BANKER AND ALGO  SHORT COVERING AS OUR BANKER FRIENDS ARE GETTING QUITE SCARED OF BASEL III COMING JUNE 28/2021 !//STRONG REDDIT RAPTOR BUYING//.. COUPLED AGAINST A STRONG EXCHANGE FOR PHYSICAL ISSUANCE. WE ALSO  HAD ZERO LONG LIQUIDATION 

 

WE WERE  NOTIFIED  THAT WE HAD A STRONG  NUMBER OF  COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: 2449,, AS WE HAD THE FOLLOWING ISSUANCE: MAY:  0, JUNE: 0 JULY 2449 AND ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE 2449 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! SILVER IS IN BACKWARDATION AND AS SUCH THE DANGER TO OUR BANKERS IS LONDONERS WILL PURCHASE CHEAPER FUTURES METAL OVER HERE AND THEN TAKE DELIVERY.

HISTORY OF SILVER OZ STANDING AT THE COMEX FOR THE PAST 33 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

2020

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***(5THHIGHEST RECORDED STANDING FOR SILVER)

2.205  MILLION OF FINAL STANDING FOR JUNE

86.470  MILLION OZ FINAL STANDING IN JULY…RECORD HIGHEST EVER RECORDED

6.475 MILLION OZ FINAL STANDING IN AUGUST

55.400 MILLION OZ FINAL STANDING IN SEPT (3RD HIGHEST RECORDED STANDING)

8.900 MILLION OZ INITIALLY STANDING IN OCT.

3.950 MILLION OZ FINAL STANDING IN NOV.

46.685 MILLION OZ FINAL STANDING FOR DEC. (4TH HIGHEST RECORDED STANDING)

2021

60 MILLION FINAL STANDING FOR JAN 2021

12.020  MILLION OZ FINAL STANDING FOR FEB 2021

58.425 MILLION OZ FINAL STANDING FOR MARCH 2021//2ND HIGHEST EVER RECORDED

14.935 MILLION OZ INITIAL STANDING FOR APRIL

36.655 MILLION OZ INITIAL STANDING FOR MAY 

 

MONDAY, AGAIN OUR CROOKS USED COPIOUS PAPER TRYING TO LIQUIDATE SILVER’S PRICE …AND THEY WERE
UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN ,(IT ROSE BY $0.88).OUR OFFICIAL SECTOR/BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS AS  WE HAD A HUMONGOUS GAIN OF 9514 CONTRACTS ON OUR TWO EXCHANGES.  THE GAIN WAS DUE TO i) HUGE BANKER/ALGO SHORT COVERING// WE ALSO HAD  ii) STRONG REDDIT RAPTOR BUYING//.    iii)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS iiii) A VERY STRONG INITIAL  SILVER STANDING FOR COMEX SILVER MEASURING AT 37.700 MILLION OZ AND THEN FALLING EACH DAY UNTIL TODAY LANDING AT 36.655 MILLION OZ ON DAY 12 AS NO SILVER WAS AVAILABLE ON THE ENGLISH SIDE OF THE POND!, v) GIGANTIC COMEX OI GAIN /
.
YOU CAN BET THE FARM THAT OUR BANKERS  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER..
 
 
 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS

 

MAY

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

19,644 CONTRACTS (FOR 11 TRADING DAY(S) TOTAL 19,644 CONTRACTS) OR 98.220 MILLION OZ: (AVERAGE PER DAY: 1786 CONTRACTS OR 8.930 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 98.220  MILLION PAPER OZ HAVE MORPHED OVER TO LONDON

JAN EFP ACCUMULATION FINAL:  113.735 MILLION OZ

FEB EFP ACCUMULATION FINAL:   208.18 MILLION OZ (RAPIDLY INCREASING AGAIN)

MAR EFP ACCUMULATION SO FAR: : 103.450 MILLION OZ  (DRAMATICALLY SLOWING DOWN AGAIN//FEARS OF EFP CONTRACTS BEING EXERCISED FOR METAL)

APRIL: 84.730 MILLION OZ  (SILVER IS NOW IN SEVERE BACKWARDATION AND THUS DRAMATICALLY FEWER ISSUANCE OF EFP’S)

MAY: 98.220 MILLION OZ. (SILVER IS STILL IN SEVER BACKWARDATION BUT EFP ISSUANCE DRAMATICALLY INCREASING AGAIN!!)

 

RESULT: WE HAD A GIGANTIC INCREASE COMEX OI SILVER COMEX CONTRACTS OF 7,223, WITH OUR $0.88 GAIN IN SILVER PRICING AT THE COMEX ///MONDAY .THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 2449 CONTRACTS WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS.

TODAY WE HAD A HUMONGOUS SIZED GAIN OF 9672 OI CONTRACTS ON THE TWO EXCHANGES (WITH OUR  $0.88 RISE IN PRICE)//THE DOMINANT FEATURE TODAY// MASSIVE BANKER SHORTCOVERING/  AND A VERY STRONG INITIAL SILVER OZ STANDING FOR MAY. (37.770 MILLION OZ) FOLLOWED  TODAY WITH A 10,000 OZ GAIN  …. SO OUR NEW STANDING REMAINS AT 36,655,000 OZ.  

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e  2449 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s)TOGETHER WITH A GIGANTIC SIZED INCREASE OF 7065 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH OUR $0.88 GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $28.14//MONDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

WE HAD 35 NOTICES FILED TODAY FOR 175,000 OZ

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 SILVER IN BACKWARDATION (INDICATING SCARCITY), WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT)

 
 
 
 

GOLD

IN GOLD, THE COMEX OPEN INTEREST  ROSE BY A HUGE SIZED SIZED 18,354 CONTRACTS TO 537,533 ,,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 GIGANTIC SIZED INCREASE IN COMEX OI CAME WITH OUR STRONG GAIN IN PRICE  OF $29.55///COMEX GOLD TRADING//MONDAY.AS IN SILVER WE MUST HAVE HAD HUGE BANKER/ALGO SHORT COVERING ACCOMPANYING OUR GOOD SIZED EXCHANGE FOR  PHYSICAL ISSUANCE. WE ALSO HAD ZERO LONG LIQUIDATION AS WE HAD AN ATMOSPHERIC SIZED GAIN OF 17,680 TOTAL CONTRACTS ON OUR TWO EXCHANGES.  WE ALSO HAD A STRONG INITIAL STANDING IN GOLD TONNAGE FOR MAY AT 3.530 TONNES TO WHICH WE HAD A HUGE QUEUE JUMP OF 600 OZ ON DAY NO 11 AND NOW 4.8678 TONNES ARE STANDING. THIS FOLLOWED A STRONG APRIL AT 95.331 TONNES. 

HUGE DIFFERENCE TODAY BETWEEN THE PRELIMINARY NUMBERFS VS FINAL: 4949 CONTRACTS AS THE CME REMOVE ALL BIS TRADES.

 

YET ALL OF..THIS HAPPENED WITH OUR STRONG GAIN IN PRICE OF $29.55 WITH RESPECT TO MONDAY’S TRADING

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

WE HAD AN ATMOSPHERIC SIZED GAIN OF 17,680 OI CONTRACTS (54.99 TONNES) ON OUR TWO EXCHANGES

 

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A GOOD SIZED 4275 CONTRACTS:

CONTRACT  AND JUNE:  4275  ALL OTHER MONTHS ZERO//TOTAL: 4275 The NEW COMEX OI for the gold complex rests at 526,584. 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 HUMONGOUS SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 17,680 CONTRACTS:  13,405 CONTRACTS INCREASED AT THE COMEX AND 4275 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 17,680 CONTRACTS OR 54.99 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES

WE HAD A GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (4,275) ACCOMPANYING THE GIGANTIC SIZED GAIN IN COMEX OI  (13,405 OI): TOTAL GAIN IN THE TWO EXCHANGES:  17,680 CONTRACTS. WE NO DOUBT HAD 1 MASSIVE BANKER SHORT COVERING AS OUR BANKERS ARE RUNNING FROM DODGE AND CONSIDERABLE ALGO SHORT COVERING ,2.) STRONG INITIAL STANDING AT THE GOLD COMEX FOR MAY AT 3.530 TONNES//FOLLOWED BY A GOOD QUEUE JUMP OF 600 OZ ON DAY 11 //NEW STANDING FOR MAY:     4.8678 TONNES 

3) ZERO LONG LIQUIDATION,  /// ;4) STRONG COMEX OI GAIN AND 5) GOOD ISSUANCE OF EXCHANGE FOR PHYSICAL AND ….ALL OF THIS HAPPENED WITH OUR STRONG GAIN IN GOLD PRICE TRADING MONDAY//$29.55!!.

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

FOR NEWCOMERS, HERE ARE THE DETAILS:

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

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

 
 

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

.

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX SILVER 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 APRIL. HEADING TOWARDS THE ACTIVE DELIVERY MONTH OF MAY FOR SILVER:

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

 
 
 
 
 
 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2021 INCLUDING TODAY

MAY

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 46,012, CONTRACTS OR 4,601,200 oz OR 143.11 TONNES (11 TRADING DAY(S) AND THUS AVERAGING: 4182 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 11 TRADING DAY(S) IN  TONNES: 143.11 TONNES

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

THUS EFP TRANSFERS REPRESENTS 143.11/3550 x 100% TONNES =4.03% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2021 TO DATE:
 
JANUARY: 265.26 TONNES (RAPIDLY INCREASING AGAIN)
 
FEB  :  171.24 TONNES  ( DEFINITELY SLOWING DOWN AGAIN)..
 
 
MARCH:.   276.50 TONNES (STRONG AGAIN///IT SURPASSED JANUARY!!)

 

APRIL:      189..44 TONNES  ( DRAMATICALLY SLOWING DOWN AGAIN//GOLD IN BACKWARDATION)

MAY:        143.11 TONNES  (NOW DRAMATICALLY INCREASING AGAIN)

 

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

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

1.Today, we had the open interest at the comex, in SILVER, ROSE BY A GIGANTIC SIZED 7065 CONTRACTS FROM 175,847 UP TO 182,552 AND CLOSER TO OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  

 

EFP ISSUANCE 2449 CONTRACTS

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

 MAY: 0 AND JUNE: 0, JULY 2449: ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE:  2449 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI GAIN OF 7065 CONTRACTS AND ADD TO THE 2449 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A COLOSSAL  SIZED GAIN OF 9514 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 47.57 MILLION  OZ, OCCURRED WITH OUR $0.88 GAIN IN PRICE///

 

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

1/COMEX GOLD AND SILVER REPORT

(report Harvey)

 

2 ) Gold/silver trading overnight Europe, Gold

(Mark O’Byrne/zerohedge + OTHER COMMENTARIES

3. ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED  UP 11.40 PTS OR 0.32%   //Hang Sang CLOSED UP 399.72 PTS OR  1.42%     /The Nikkei closed UP 582.01 pts or 2.09%  //Australia’s all ordinaires CLOSED UP 0.60%

/Chinese yuan (ONSHORE) closed UP AT 6.4240 /Oil UP TO 66.84 dollars per barrel for WTI and 69.86 for Brent. Stocks in Europe OPENED ALL GREEN EXCEPT SPAIN   //  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4240. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4214   : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 
 
 
 
 
3 a./NORTH KOREA/ SOUTH KOREA

NORTH KOREA//USA/OUTLINE

END

b) REPORT ON JAPAN

3 C CHINA

CHINA VS USA//

4/EUROPEAN AFFAIRS

OUTLINE

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

OUTLINE

6.Global Issues

OUTLINE

7. OIL ISSUES

OUTLINE

8 EMERGING MARKET ISSUES

OUTLINE
 

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

GOLD

LET US BEGIN:

 

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A HUMONGOUS SIZED 18,354 CONTRACTS TO 537,533 MOVING CLOSER TO THE RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS STRONG COMEX INCREASE OCCURRED WITH OUR RELATIVELY STRONG GAIN OF $29.55 IN GOLD PRICING MONDAY’S COMEX TRADINGWE ALSO HAD A GOOD EFP ISSUANCE (4275 CONTRACTS). …AS THEY WERE PAID HANDSOMELY  NOT TO TAKE DELIVERY AT THE COMEX AND SETTLE FOR CASH.  

WE NORMALLY HAVE WITNESSED  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. IT SEEMS THAT ARE BANKERS FRIENDS ARE EXERCISING EFP’S FROM LONDON AND NOW THEY ARE LOATHE TO ISSUE NEW ONES.  

 

(SEE BELOW)

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

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON ACTIVE DELIVERY MONTH OF MAY..  THE CME REPORTS THAT THE BANKERS ISSUED GOOD SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 4275 EFP CONTRACTS WERE ISSUED:  ;:  0, JUNE:  4275 & JULY 0 & AND THEN DECEMBER:  0 CONTRACTS & ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 4275  CONTRACTS .(DESPITE THE STRONG BACKWARDATION IN GOLD FOR JUNE/AUG VS SPOT)

WHEN WE HAVE BACKWARDATION,  EFP ISSUANCE IS VERY COSTLY BUT THE REAL PROBLEM IS THE SCARCITY OF METAL AND IT IS FAR BETTER FOR OUR BANKERS TO PAY OFF INDIVIDUALS THAN RISK INVESTORS ESPECIALLY FROM LONDON STANDING FOR DELIVERY. THE LOWER PRICES IN THE FUTURES MARKET IS A MAGNET FOR OUR LONDONERS SEEKING PHYSICAL METAL. BACKWARDATION ALWAYS EQUAL SCARCITY OF METAL!

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: AN ATMOSPHERIC SIZED 17,680  TOTAL CONTRACTS IN THAT 4275 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GIGANTIC SIZED COMEX OI OF 13,405 CONTRACTS.WE HAVE A STRONG AMOUNT OF GOLD TONNAGE STANDING FOR MAY   (4.8678) WHICH FOLLOWED  (95.331 TONNES) IN APRIL, WHICH FOLLOWED MARCH:  (30.205 TONNES) WHICH FOLLOWED FEB (113.424 TONNES)  WHICH FOLLOWED OUR STRONG LEVEL OF JAN 2021 GOLD . ((6.500 TONNES).  

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $29.95)., AND  WERE  UNSUCCESSFUL IN FLEECING ANY LONGS AS WE HAD AN ATMOSPHERIC SIZED GAIN ON OUR TWO EXCHANGES OF 17,680 CONTRACTS.  THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED 54.99 TONNES,ACCOMPANYING OUR STRONG GOLD TONNAGE STANDING FOR MAY (4.8678 TONNES)..I  STRONGLY BELIEVE THAT OUR BANKER FRIENDS ARE GETTING QUITE NERVOUS.  THE HUGE GAIN IN COMEX OI IS DUE TO BANKER SHORT COVERING IN A BIG WAY.  THEY ARE LOOKING OVER THEIR SHOULDERS AND WITNESSING MASSIVE SILVER/GOLD SHORTAGES THAT CANNOT BE COVERED. THEY ARE TRYING TO FLEE IN HASTE “FROM DODGE”. 

NET GAIN ON THE TWO EXCHANGES :: 17,680 CONTRACTS OR  1,768,000 OZ OR 54.99  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 PRODUCT.
 
THUS IN GOLD WE HAVE THE FOLLOWING:  526,584 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 52.65 MILLION OZ/32,150 OZ PER TONNE =  1637 TONNES

 

THE COMEX OPEN INTEREST REPRESENTS 1637/2200 OR 74.43% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 
 

Trading Volumes on the COMEX GOLD TODAY:252,868 contracts// volume /fair ////volumes used in raid today   //

CONFIRMED COMEX VOL. FOR YESTERDAY:  320,609 contracts// good 

//most of our traders have left for London

 

MAY 18 /2021

 
INITIAL STANDINGS FOR MAY COMEX GOLD
 
 
 
 
 
 
 
 
 
 
 
 
 
Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
 
 
 
nil OZ
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits to the Dealer Inventory in oz  
Deposits to the Customer Inventory, in oz
 
11,320.688 OZ
 
Delaware
HSBC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No of oz served (contracts) today
2  notice(s)
200 OZ
(0.00622 TONNES
No of oz to be served (notices)
71 contracts
(7100 oz)
 
0.22084 TONNES
 
 
 
Total monthly oz gold served (contracts) so far this month
1494 notices
149400 OZ
4.6467 TONNES
 
 
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz
 

We had 0 deposit into the dealer

 
 
 
total deposit:  nil oz    
 
 
 

total dealer withdrawals: nil oz

we had 2 deposits into the customer account
i) Into HSBC: 8487.864 oz
ii) Into Delaware:  2832.824 oz
 
 
 
 
TOTAL CUSTOMER DEPOSITS: 11,320.688  oz
 
 
 
 
 
 
We had 0 withdrawals….
 
 
 
 
 
 
 
 
 
 
 
 
total withdrawals nil
a net: 0.3520 tonnes  enters the comex
 
 
 
 
 
 
 

We had  0  kilobar transactions (0 out of 3 transactions)

ADJUSTMENTS  1// dealer to customer

JPMorgan enhanced:  12,244.292 oz

 
 
 
 
 
 
 

The front month of MAY registered a total of 73 CONTRACTS for a LOSS of 19 contracts. We had 25 notices filed on MONDAY so we GAINED A good sized 6 contracts or an additional  600 oz will  stand for delivery in this non active delivery month of May as they refused to morph into London based forwards. 

 

 
 
 
JUNE LOST A NORMAL 11,759 CONTRACTS DOWN TO  261,364.  .(AND THIS IS THE FRONT MONTH THAT WE WILL PAY CLOSE ATTENTION TO!)  FOR COMPARISON ON MAY 18/2020:  257,707 OI WITH A DROP OF 3360 CONTRACTS.
INITIALLY ON JUNE 1/2020: 146.60 TONNES OF GOLD STOOD FOR DELIVERY.
 
JULY GAINED 178 CONTRACTS TO STAND AT 829.
 
AUGUST GAINED A huge 22,904 CONTRACTS UP TO 200,848

We had 2 notice(s) filed today for  200  oz

FOR THE MAY 2021 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 2  contract(s) of which 0  notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by J.P.Morgan//customer account and 0 notices received (stopped) by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the MAY /2021. contract month, we take the total number of notices filed so far for the month (1494) x 100 oz , to which we add the difference between the open interest for the front month of  (MAY:  73 CONTRACTS ) minus the number of notices served upon today 2 x 100 oz per contract equals 156,500 OZ OR 4.8678 TONNES) the number of ounces standing in this  active month of MAY

thus the INITIAL standings for gold for the MAY contract month:

No of notices filed so far (1494) x 100 oz+  73)  OI for the front month minus the number of notices served upon today (2} x 100 oz} which equals 156,500 oz standing OR 4.8678 TONNES in this  active delivery month of MAY.

We GAINED 600 oz standing for delivery at the comex.  

 

 

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

NEW PLEDGED GOLD:

450,514.371, oz NOW PLEDGED  march 5/2021/HSBC  13.626 TONNES

268,921.505 PLEDGED  MANFRA 8.36 TONNES

288,378.262, oz  JPM  8.35 TONNES

1,166,051.732 oz pledged June 12/2020 Brinks/36.26 TONNES

86,294.813, oz Pledged August 21/regular account 2.68 tonnes JPMORGAN

6,308.08 oz International Delaware:  .196 tonnes

192.906 oz Malca

total pledged gold:  2,266,661.669 oz                                     70.50 tonnes

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 472.28 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 4.8678 tonnes

CALCULATION OF REGISTERED THAT CAN BE SETTLED UPON:

total registered or dealer  17,459,840.690 oz or 543.07 tonnes
 
 
total weight of pledged:  2,266,661.669 oz or 70.50 tonnes
 
thus:
 
registered gold that can be used to settle upon: 15,193,179.0 (472,57 tonnes) 
 
 
 
 
true registered gold  (total registered – pledged tonnes  15,193,179.0 (472.57 tonnes)
 
total eligible gold: 17,052,321.116 oz   (530.39 tonnes)
 
 
total registered, pledged  and eligible (customer) gold 34,512,161.806 oz or 1,073.47 tonnes (INCLUDES 4 GC GOLD)
 
 

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  947.13 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

 

 
 
MAY17/2021
 
 

 

And now for the wild silver comex results

INITIAL STANDING FOR SILVER//MAY

MAY. SILVER COMEX CONTRACT MONTH//INITIAL STANDING

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
2,144,381.655 oz
 
 
Brinks
Manfra
Int Delaware
 
CNT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits to the Dealer Inventory
nil oz
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits to the Customer Inventory
 
nil oz
 
CNT
 
 
 
 
 
 
 
 
 
 
whatever enters the comex faults
eaves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No of oz served today (contracts)
35
 
CONTRACT(S)
(175,000 OZ)
 
No of oz to be served (notices)
227 contracts
 135,000 oz)
Total monthly oz silver served (contracts)  7104 contracts

 

35,520,000 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 deposit into the dealer 
 

total dealer deposits:   nil        oz

i) We had 0 dealer withdrawal

total dealer withdrawals: nil oz

we had  0 deposit into customer account (ELIGIBLE ACCOUNT)

 

 
 
 
 
 
 

JPMorgan now has 187.546 million oz of  total silver inventory or 52.64% of all official comex silver. (187.546 million/356.266 million

total customer deposits today nil   oz

we had 4 withdrawals

i) Out of CNTs: 681,663.624 oz

 

ii) Out of Brinks:  600,760.200 oz

 

iv) Out of Manfra: 614,270.200 oz

iv)International Delaware:  247,687.631 oz

 
 
 
 
 
 

total withdrawals  2,144,381.655   oz

 
 


 

 

 
 
 

Total dealer(registered) silver: 115.436 million oz

total registered and eligible silver:  356.266 million oz

a net 2.144 million oz leaves the comex silver vaults.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 
 
 
 
 

May fell in contracts, losing 168 contracts to stand at  262 contracts.  We had 170 notices filed on MONDAY so we gained a small 2 contracts or AN ADDITIONAL 10,000 oz of silver will stand delivery in this very active delivery month of May. 

 

THERE IS NO SILVER OZ TO BE HAD ON EITHER SIDE OF THE ATLANTIC.

 

June GAINED 102 contracts up to 2088.

July gained  5212 contracts up to 148,308 contracts

 
No of notices filed today:  35 CONTRACTS for 175,000 oz
 

To calculate the number of silver ounces that will stand for delivery in MAY. we take the total number of notices filed for the month so far at  7104 x 5,000 oz = 35,520,000 oz to which we add the difference between the open interest for the front month of MAY (262) and the number of notices served upon today 35 x (5000 oz) equals the number of ounces standing.

Thus the MAY standings for silver for the MAY/2021 contract month: 7104 (notices served so far) x 5000 oz + OI for front month of MAY (262)  – number of notices served upon today (35) x 5000 oz of silver standing for the Jan contract month .equals 36,655,000 oz. ..VERY STRONG FOR AN ACTIVE MAY MONTH. 

 

We gained 10,000 oz of silver standing for delivery 

 

the big question: where is the 100 million oz of silver that Sprott has sought? 

 

TODAY’S ESTIMATED SILVER VOLUME 76,639 CONTRACTS // volume   good// 

 

FOR YESTERDAY 94,630  ,CONFIRMED VOLUME/ very  good//

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 +0.67% (MAY 18/2021)

2. Sprott gold fund (PHYS): premium to NAV RISES TO –0.46% nav   (MAY 18/2021 )

Note: /Sprott physical gold trust is back into NEGATIVE/0.47% (MAY 18/2021)

(courtesy Sprott/)

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

 

NAV $19.82 TRADING $19.60//NEGATIVE 1.13

END

And now the Gold inventory at the GLD/(this vehicle is a fraud as there is no gold behind them!)

MAY 18/WITH GOLD UP $.75 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A MASSIVE 7.57 TONNES OF GOLD ADDED TO THE GLD///INVENTORY RESTS AT 1035.93 TONNES

MAY 17  WITH GOLD UP $29.95 TODAY/// .. NO CHANGES IN GOLD INVENTORY AT THE GLD…INVENTORY RESTS AT 1028.36 TONNES

MAY 14  WITH GOLD UP $13.05… A BIG CHANGES IN GOLD INVENTORY AT THE GLD.//A DEPOSIT OF 3.21 TONNES INTO THE GLD//INVENTORY RESTS AT 1028.36 TONNES

MAY 12/WITH GOLD DOWN $12.20 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1025.15 TONNES

MAY 11/WITH GOLD DOWN $1.60 TODAY;  NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1025.15 TONNES

MAY 10/WITH GOLD UP $7.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/ A WITHDRAWAL OF 5.82 TONNES FROM THE GLD./INVENTORY RESTS AT 1025.15 TONNES.

MAY 7/WITH GOLD UP 20,70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1019.33 TONNES

MAY 6/WITH GOLD UP $15.10 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.13 TONNES OF GOLD INTO THE GLD///INVENTORY RESTS AT 1019.33 TONNES 

MAY 5/WITH GOLD UP $7.45 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1018.20

MAY 4/WITH GOLD DOWN $14.80 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.16 TONNES INTO THE GLD///INVENTORY RESTS AT 1018.20 TONNES.

MAY 3/WITH GOLD UP $23.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY REST AT 1017.04 TONNES./

APRIL 30/WITH GOLD UP $0.20 TODAY; A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL OF 4.67 TONNES FROM THE GLD///INVENTORY RESTS AT 1017.04 TONNES.

APRIL 29//WITH GOLD DOWN $5.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1021.70 TONNES.

APRIL 28/WITHGOLD DOWN $4.80 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1021.70 TONNES.

APRIL 27/WITH GOLD DOWN $2.60 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1021.70 TONNES.

APRIL 26/WITH GOLD DOWN $1.80 TODAY;NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1021.70 TONNES

APRIL 23/WITH GOLD UP $3.40 TODAY; NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1021.70 TONNES

APRIL 22/WITH GOLD DOWN $11.30 TODAY:NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1021.70 TONNES

APRIL 21/WITH GOLD UP $14.40 TODAY:NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESSTS AT 1021.70 TONNES

APRIL 20/WITH GOLD UP $8.25 TODAY:A HUGE CHANGE IN GOLD INVENTORY AT THE GLD A DEPOSIT OF 2.04 PAPER TONNES INTO THE GLD///INVENTORY RESTS AT 1021.70 TONNES

APRIL 19/WITH GOLD DOWN $9.25 TODAY A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL OF 3.2 TONNES FROM THE GLD///INVENTORY RESTS AT 1019.66 TONNES.

APRIL 16/WITH GOLD UP $13.60 TODAY:NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1022.86 TONNES

APRIL 15/WITH GOLD UP $29.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.21 TONNES FROM THE GLD////INVENTORY RESTS AT 1022.86 TONNES

APRIL 14/WITH GOLD DOWN $11.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1026.07 TONNES

APRIL 13/WITH GOLD UP $14.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1026.07 TONNES

APRIL 12/WITH GOLD DOWN $11.10 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1026.07 TONNES

APRIL 9/WITH GOLD DOWN $13.50 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL OF 2.67 TONNES FORM THE GLD//INVENTORY RESTS AT 1026.02 TONNES

APRIL 8/WITH GOLD UP $16.90 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD/I: A WITHDRAWAL OF .36 TONNES FROM THE GLD//INVENTORY RESTS AT 1028.69 TONNES

APRIL 7/WITH GOLD DOWN $1.25 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.78 TONNES FROM THE GLD///INVENTORY RESTS AT 1029.05 TONNES

APRIL 6//WITH GOLD UP $12.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1032.83 TONNES

APRIL 5/WITH GOLD DOWN $1.65 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL OF 4.67 TONNES FROM THE GLD///INVENTORY RESTS AT 1032.83 TONNES.

APRIL 1/WITH GOLD UP $13.00 TODAY:  NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1037.50 TONNES

MARCH 31/WITH GOLD UP $28.80 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1037.50 TONNES

MARCH 30/WITH GOLD DOWN $28.20 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD… A DEPOSIT OF .88 TONNES//INVENTORY RESTS AT 1037.50TONNES

MARCH 29/WITH GOLD DOWN $20.00 TODAY//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 6.41 TONNES FROM THE GLD..//INVENTORY RESTS AT 1036.62 TONNES

MARCH 26/WITH GOLD UP $7.00 TODAY// NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1043.03 TONNES

MARCH//25: WITH GOLD DOWN $7.75 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.33 TONNES//GOLD REST AT 1043.03 TONNES

MARCH 24//WITH GOLD UP $7.75 TODAY://A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 6.42 TONNES OF GOLD: THIS GOLD IS BEING RETURNED TO THE BANK OF ENGLAND ON A PHONY LEASE SCAM//INVENTORY RESTS AT 1045.36 TONNES.

MARCH 23/WITH GOLD DOWN $12.65 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1051.78 TONNES

MARCH 22/WITH GOLD DOWN $3.90 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.5 TONNES OF GOLD INTO THE GLD///INVENTORY RESTS AT 1051.78 TONNES

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at:

 

MAY 18 / GLD INVENTORY 1035.93 tonnes

LAST;  1058 TRADING DAYS:   +101.96 TONNES HAVE BEEN ADDED THE GLD

LAST 987 TRADING DAYS// +  286.48 TONNES  HAVE NOW  BEEN ADDED INTO  THE GLD INVENTORY

end

Now the SLV Inventory/( vehicle is a fraud as there is no physical metal behind them!)

MAY 18/WITH SILVER UP 09 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MASSIVE DEPOSIT OF 7.884 MILLION OZ INTO TEH SLV.//INVENTORY RESTS AT 571.664 MILLION OZ..

MAY 17 WITH SILVER UP 88 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//..INVENTORY RESTS AT 565.820 MILLION OZ

MAY 14 WITH SILVER UP 28 CENTS TODAY: A HUGE GAIN OF 1.949 MILLION OZ INTO THE SLV….INVENTORY RESTS AT 565.820 MILLION OZ

MAY 12/WITH SILVER DOWN 39 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: A PAPER WITHDRAWAL OF 1.67 MILLION OZ /INVENTORY RESTS AT 563.871 MILLION OZ//

MAY  11/WITH SILVER UP 17 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.206 MILLION OZ DESPITE THE PRICE RISE//INVENTORY RESTS AT 565.541 MILLION OZ//

MAY 10.WITH SILVER UP 2 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.81 MILLION OZ FORM THE SLV/INVENTORY RESTS AT 566.747 MILLION OZ//

MAY 7/WITH SILVER UP 2 CENTS TODAY: NO  CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 566.577 MILLION OZ

MAY 6/WITH SILVER UP 90 CENTS TODAY: TWO CHANGES IN SILVER INVENTORY AT THE SLV//:1. A WITHDRAWAL OF  FROM THE SLV RECORDED AT 2 PM AND THEN 2. A HUGE DEPOSIT OF 1.31 MILLION OZ INTO THE SLV RECORDED AT 5;20 PM.//INVENTORY RESTS AT 568.577 MILLION OZ//

MAY 5/WITH SILVER UP ONE CENT TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 567.481 MILLION OZ//

MAY 4/WITH SILVER DOWN 40 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 567.481 MILLION OZ//

MAY 3/WITH SILVER UP 99 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 567.481 MILLION OZ

APRIL 30//WITH SILVER DOWN 16 CENTS TODAY; No CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 567.481 MILLION OZ//

APRIL 29/WITH SILVER DOWN 2 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 567.481 MILLION OZ..

APRIL 28/WITH SILVER DOWN 31 CENTS TODAY:: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.206 MILLION OZ FORM THE SLV////INVENTORY RESTS AT 567.481 MILLION OZ//

APRIL 27./WITH SILVER UP 20 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 568.687 MILLION OZ//

APRIL 26/  WITH SILVER UP 10 CENTS TODAY; A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.260 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 568.687

APRIL 23/WITH SILVER DOWN 10 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV/: A DEPOSIT OF 278,000 OZ INTO THE SLV.///INVENTORY RESTS AT 569.847 MLLION OZ/

APRIL 22/WITH SILVER DOWN 34 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: A MASSIVE WITHDRAWLA OF 3.619 MILLION OZ//INVENTORY REST AT 569.569 MILLION OZ..

APRIL 21/WITH SILVER UP 72 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 573.188 MILLION OZ//

APRIL 20/WITH SILVER UP 1 CENT TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIST OF 1.114 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 573.188 MILLION OZ.

APRIL 19/WITH SILVER DOWN 31 CENTS TODAY: A HUGE  CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.671 MILLION OZ FORM THE SLV//INVENTORY RESTS AT 572.074 MILLION OZ//

APRIL 16.WITH SILVER UP 18 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.113 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 573.745 MILLION OZ//

APRIL 15/WITH SILVER UP 42 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 574.868 MILLION OZ//

APRIL 14/WITH SILVER UP 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 574.868 MILLION OZ//

APRIL 13/WITH SILVER UP 51 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV///INVENTORY RESTS AT 574.868 MILLION OZ//

APRIL 12/WITH SILVER DOWN 39 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 574.868 MILLION OZ///

APRIL 9/WITH SILVER DOWN 27 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 574.868 MILLION OZ//

APRIL 8/WITH SILVER UP 33 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 574.868 MILLION OZ//

APRIL 7 /WITH SILVER  UP 3 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 574.868 MILLION OZ. 

APRIL 6/WITH SILVER UP 39 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 256,000 OZ FROM THE SLV////INVENTORY RESTS AT 574.868 MILLION OZ///

APRIL 5/WITH SILVER DOWN 14 CENTS TODAY: NO  CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 575.124 MILLION OZ

APRIL 1.WITH SILVER UP 48 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 3.898 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 575.124 MILLION OZ/

MARCH 31/WITH SILVER UP 37 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 579.022 MILLION OZ

MARCH 30/WITH SILVER DOWN 62 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV/: A DEPOSIT OF 417,000 OZ INTO THE SLV/INVENTORY REST AT 579.022 MILLION OZ..

MARCH 29/WITH SILVER DOWN 34 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 578.605 MILLION OZ.

MARCH 26/WITH SILVER UP 5 CENTS TODAY: TWO HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.042 MILLION OZ AT 3 PM AND ANOTHER AT 5.20 PM:  1.949 MILLION OZ /INVENTORY RESTS AT 578.605 MILLION OZ

MARCH 25/WITH SILVER DOWN 15 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV; A WITHDRAWAL OF 3.253 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 582.596 MILLION OZ

MARCH 24//WITH SILVER UP 1 CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 585.846 MILLION OZ./

MARCH 23/WITH SILVER DOWN 55 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 585.846 MILLION OZ/

MARCH 22/WITH SILVER DOWN 50 CENTS TODAY,TWO HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.486 MILLION OZ FROM THE SLVAT 3 PM AND ANOTHER 2.599 MILLION OZ WITHRAWWAL AT 5:20 ////INVENTORY RESTS AT 585.846 MILLION OZ/ (TOTAL SILVER LEAVING 4.085 MILLION OZ)

XXXXXXXXXXXXXX

SLV INVENTORY RESTS TONIGHT AT

MAY 18/2021
571.664 MILLION OZ

 
 

PHYSICAL GOLD/SILVER STORIES
i)Jim Rickards:

OR

EGON VON GREYERZ//MATHEW PEIPENBURG

A must read:  why gold is the better store of value than Bitcoin

(Mathew Piepenburg/GoldSwitzerland.com)

Bitcoin Versus Gold: A Tired Debate

 
TUESDAY, MAY 18, 2021 – 06:30 AM

Authored by Matthew Piepenburg via GoldSwitzerland.com,

Bias vs. Logic

We’ve written elsewhere about the ironic over-use of logic to justify otherwise illogical biases.

As Swiss-based precious metals professionals who see physical gold and silver as currency protection outside of an openly illogical (and dangerously fractured) banking system, it is more than fair for some to challenge our own “logic” (bias?) when it comes to precious metal ownership.

We understand such critiques.

Pandora’s Box

Such criticism, of course, strikes even more nerves (and claims of potential illogic) when precious metal professionals open the Pandora’s box of any conversation around Bitcoin, which has become, understandably, the sacred cow of many over-night millionaires and legitimately intelligent folks who, like us, distrust now obviously debased fiat currencies.

There’s also no ignoring the hysteria (as well as money flows) which support growing claims that BTC has or will replace gold as a new, modern and highly sophisticated store of value.

Needless to say, our logic (or “bias” to many Bitcoiners) strongly disagrees with this BTC claim for reasons you have all likely heard before and which we will only touch upon below.

Apples to Oranges

In many ways, however, we are not concerned with the BTC vs. Gold Debate for the simple reason that we see them as entirely separate investment classes—that is, a comparison of apples to oranges, not oranges to say… tangerines.

At the simplest level, BTC is a speculation investment, gold is a preservation asset, and thus we have no long-term interest in (as opposed to fear of) entering this “debate” nor in championing precious metals by denigrating cryptos in general or BTC in particular.

In short, one doesn’t need to attack BTC to make a case for gold, as gold’s case stands entirely—and logically– by itself.

At the same time, and regardless of one’s views (or biases) on gold, one (be they gold owners or stock pickers) should not simply ignore the growing and undeniable concerns rising around the BTC issue, even if those critiques come today from a Precious Metal enterprise.

In short, and despite the inevitable attacks I can and will receive from the BTC camp, I see objective risk in this otherwise bubbling and much loved “digital coin.”

Bitcoin Bubble? Yep.

In a world of debt-driven bubbles, be they 1) stocks with CAPE ratios at 30; 2) sovereign bonds offering negative yields; 3) corporate bonds of predominantly covenant light and junk status; 4) SPAC froth; and 5) grossly over-valued tech names—it is no surprise nor effort for me to add the word “Bitcoin” to the list of current bubbles in global economic recession made all the worse by an equally nightmarish global pandemic.

BTC: This Time is Different?

As for the profile of a bubble, the case against (or at least openly cautious of) BTC has been made before and will mean nothing to those who are already convinced that “this time it’s different.”

BTC’s true believers feel this “coin” will only rise to the moon and take over the world as a new store of value and new global currency backed by admittedly remarkable technological innovation rather than a physical commodity.

But here’s the rub: The facts as well as future possibilities portend a very different story, despite all the fun many have had riding the BTC wave.

BTC, as current data and future regulatory, geopolitical and financial trends confirm, is not a currency, nor a unit of account, and despite all the vlogs, blogs and interviews to the contrary, is certainly not a stable store of value.

Currency? Store of Value?

Even the most faithful devotes of BTC cannot deny that a “currency” or “store of value” with price moves of 20% in a single trading day is hardly finding (or justifying) its way to such designations.

As for currency status, not even BTC conferences will take it as payment, for its radical price moves can potentially wipe out (or grow) their profit margins overnight.

Others, of course, will say, Bitcoin’s time will come after gradual adoption, and “what about Tesla, you can buy that with BTC.”

Well, actually you can’t, and trusting tweet-happy front-runners like Musk, or over-valued balance sheets like Tesla, is an individual choice, and yours to enter (and hopefully exit correctly) at your own discretion and skill.

Old Tricks, New Widget

There is also no doubt that great fortunes have and can be made in such investments. I can’t count how many times I’ve traded Tesla long and short with a smile.

But let us also recognize that Musk’s “funding secured” tweets in 2018 amounted to fraud, and as of this writing, a Tesla in fact can’t be bought with BTC despite Elon’s expected attempts to “greenwash” this crypto’s otherwise electricity-sucking mining operations as “environmentally healthy.”

But lies, front-runs and price-fixing tricks from CEOs like Musk are forgiven because, at least for now, Tesla’s stock and BTC’s valuation “prove their rightness” based on price, not truth, value or common sense.

Needless to say, no “asset” discussion of BTC is free of its short but sordid history of pump and dump, spoofing, wash trading and other front-running schemes and headlines (think BitMax) in which the big money pretends a “philosophical” interest in BTC merely to crush the little money when the time is right to buy and then sell—a near perfect nirvana for the Greater Fool Trade.

One other quick but relevant point is this: Where does BTC come from? Its genesis story, well, kinda matters, no?

Did a mystery man named Nakamoto upload some code and then vanish into thin air with no one asking why?

Who truly holds the largest controlling share of BTC? Where’s the head office, staff and the ownership ledger for this otherwise totally de-centralized, $2T asset?

I have no idea either. Just saying…

The Asset Question

As for being an asset, BTC provides no income, cash flow, dividends, or coupon interest. Everyone, knows this, and everyone also knows that the same can be said of physical gold.

Bitcoiners, of course, rightly don’t care, as the money they’ve made is the key driver behind their “logic” and trade.

Candidly, few can fault such motives—but at least be honest: The BTC trade is precisely that—a trade, not an asset, store of value or currency.

Every blunt BTC investor I know has confessed the same. In short, deep down, they recognize that BTC is a risk asset not an alternative currency, store of value, or wealth preservation vehicle.

In case that sounds unfair, just watch what BTC does rather than what it (or I) says. In short, it acts just like a (highly) risk asset—hence its real appeal as well as danger.

Rather than “hedge,” protect or buffer portfolios when markets tank (as, say, gold or other hard assets do), BTC just tanks faster with each and every market moment of “uh-oh” and “risk-off.”

In March of 2020, for example, when stocks fell by 35%, BTC fell by 50% and the larger crypto pool in general fell by more than 60%.

Whatever critics of gold can say, and they can say a lot, gold never falls that fast, that hard and that violently because gold is not a risk asset, but a risk protector. In short, gold and BTC are very different.

Again, chose your motive rather than pick your side, as we are comparing two entirely different athletes.

But as for other key distinctions, gold, unlike BTC, does have some industrial use, centuries of jewelry utility and a 5000-year track record as a store of value from the planet earth (rather than blockchain code) that has saved far-sighted investors in one “uh-oh” moment after the other with eerie consistency.

But again, all the BTC vs. Gold debaters know this too. That’s fine. Again: just pick your motive–speculation or preservation—and stop screaming at each other 

A Payment System?

Many also know that as a payment system, BTC’s heralded future (and proponents) over look other regulatory and Real Politik trends which don’t often make the debate floor or the hyped-headlines.

When it comes to future payment systems, it’s more than fair, as well as realistically cynical, to assume that governments will, when backed to a corner, get the final say of which digital currency prevails, and it’s most likely not gonna be BTC…

Central Bank Digital Currencies (CBDC) will most likely (and vastly) outpace BTC and slowly, over time, find their way into ever-more commercial and private uses, including currencies like an eventual E-Euro, E-Dollar, or E-Yen which will crowd out pseudo private (yet currently trending) currencies like BTC many years down the road.

This, of course, is not a fact, but merely a realistic assumption based on power-dynamics not fair currency markets. In the meantime, BTC can continue its rise, and alas, its bubble.

As for the big, mean governmental big boys, rightly or wrongly, fairly or unfairly, their regulatory crack down on BTC has yet to really begin.

First Mnuchin, and now Yellen and others, are already telegraphing their “ethical” concerns about BTC as a financial cover for human trafficking, drug sales, terrorist funding and other unsavory uses. This may or may not be sincere, as politico’s are sadly driven by realism not moralism.

Such regulatory concerns, as well increasing AML and KYC rules on Cryptos to crackdown on their criminal uses, will eventually help “justify” the deflation of this BTC bubble, even if a Bitcoin ETF or even derivatives trade sends its price much higher in the interim.

Again, BTC can rise much higher, and BTC can make you rich (or broke).

For those who understand such risk and such reward, and for those (even better) who can trade (enter/exit) BTC carefully and intelligently, we boring gold executives in Switzerland are not mocking you.

In fact, we applaud the stories and wealth made on the BTC wave. Speculation, like preservation, each have their place in the diverse mind-sets and motives of the global investor class.

Different Uses, Different Views

But our offices do not represent nor champion wave assets or bubble markets. That’s a mind-set and choice, not a bias, criticism or attack.

In fact, may investors can share both choices, owning BTC to speculate for wealth and simultaneously holding gold to preserve it (I’ve spoken to more than one BTC millionaire looking to buy gold after their BTC sale).

For these reasons, many of us (gold and/or BTC) are all growing tired of gold bugs mocking BTC and BTC fanatics mocking gold in the way a Yankees fan mocks a Red Sox fan (or a Manchester United fan mocks an Arsenal fan).

These angry debates and participants are essentially ignoring the fact that these are two investments playing on entirely different playing fields.

In short, the “BTC vs. Gold debate” in mode today makes as much sense as measuring David Beckham’s fast ball against Mariano Rivera’s free kicks.

As for BTC, we candidly (logically?) see it as a speculative bubble asset poised to rise and then either deflate or “pop.” That’s a bias, of course, but one backed by the data, history and long-term trends we track.

Trade BTC as you will, but we personally (and without delusion) don’t believe it will be a currency, “coin,” store of value or “new gold.”

Physical gold, of course, has its own data, history and trends—each far richer, deeper and more reliable than risk assets in general and bubble assets in particular.

We ultimately see gold as a preservation asset and have written ad nauseum of its confirmed role as such over countless years, cycles and historical turning points.

For the last decade or so, BTC has made many rich, and for the next decade or so, could make others even richer. That’s a speculative bet. Fine.

But for the last 5000 years, and for many more to come, gold will do what it always does: Preserve your wealth when other assets and “currencies” can’t.

That’s not a bet.

OR

 
PAM AND RUSS MARTENS

Wall Street On Parade

Are Record-Setting Commodity Prices a Result of Demand or Futures Manipulation?

By Pam Martens and Russ Martens: May 17, 2021 ~

During the current month of May, 2021, the following commodities have all set record high prices: lumber, iron ore, steel and copper. The volatility in the price of lumber this month has looked not all that dissimilar to the crazy price swings in the shares of GameStop, which have been under investigation for months by the U.S. Senate Banking and House Financial Services Committees. Thus far, however, there have been no announced hearings into what is causing these wild moves in commodity prices…

https://wallstreetonparade.com/2021/05/are-record- setting-commodity-prices-a-result-of-demand-or-futures- manipulation/

***

-END-

Lawrie Williams

ii) Important gold commentaries courtesy of GATA/Chris Powell

Because of a lack of global yield on reserve assets, central banks are seeking out riskier assets and for the first time, gold is on their list

Stubbington//London financial times//gata

Central banks seek out riskier assets for reserves in yield drought — and gold is on their list

 

By Tommy Stubbington

Financial Times, London

Monday, May 17, 2021

Central bankers who manage foreign currency reserves have been turning to new — and riskier — investments to compensate for the global collapse in bond yields ushered in by the pandemic, according to a new survey.

The annual poll of 78 reserve managers with a combined $6.4 trillion of assets found that the reduction in yields has presented the greatest challenge to these investors over the past year. For many, it has driven a shift into new asset classes including corporate bonds, emerging market bonds and equities.

 

Reserve managers are typically among the world’s most risk-averse investors, but they enjoy huge clout thanks to the more than $12tn they manage, according to the most recent IMF figures. This cash, accumulated by central banks to keep their currencies steady or to protect them in times of crisis, is generally parked in safe assets such as short-term government debt.

However, the survey carried out by Central Banking Publications suggests the pressure of low returns is forcing some to take on greater risk to preserve their capital. Bond yields around the world plummeted to record lows last year as central banks slashed interest rates and launched huge debt-buying programmes to combat the fallout from the pandemic. Although yields have since rebounded, they remain very low by historical standards.

Just over half of respondents to the survey said they were considering investing in new asset classes, while 44 per cent said they might add new currencies to their holdings. According to the IMF, 59 percent of the world’s $12.7 trillion of foreign exchange reserves is held in US dollars, with most of the rest in euros, yen or sterling.

The survey also found that 42 percent were considering inflation-linked bonds and 23 percent were looking at adding to their holdings of gold. …

… For the remainder of the report:

https://www.ft.com/content/5dc1665b-c34c-4497-9ccb-ba1f630d44fd

end

India is a great country to house a totally physical gold exchange. India is proposing one and it will not allow paper gold.

(Press Trust/India/Business Standard/New Delhi)//GATA

Proposed gold exchange in India wouldn’t allow ‘paper’ gold

 

SEBI Proposes Framework for Gold Exchange, Suggests Electronic Receipts

From the Press Trust of India via Business Standard,

New Delhi

Monday, May 17, 3021

India’s markets regulator, the Securities and Exchange Board of India (SEBI), today proposed an elaborate framework for setting up a gold exchange wherein the yellow metal will be traded in the form of electronic gold receipts and will help in having a transparent domestic spot price discovery mechanism.

Also, the proposed denominations — reflecting underlying physical gold — of Electronic Gold Receipts (EGRs) are 1 kilogram, 100 grams, and 50 grams, and subject to conditions, those can also be even for 5 and 10 grams.

Apart from issuing a consultation paper on the gold exchange, the watchdog has come out with draft norms for vault managers and they will be registered as a SEBI intermediaries.

The proposed gold exchange, encompassing the entire ecosystem of trading and physical delivery of gold, is extremely necessary to create a vibrant gold ecosystem in india which is commensurate with its large share of global gold consumption, according to SEBI. …

The regulator noted that the vault manager should ensure that no EGR is created without the presence of physical gold in the vaults. …

 


 


 


… For the remainder of the report:https://www.business-standard.com/article/markets/sebi-proposes-framewor…

END

Centerra gold seeks arbitration over its large Kyrgyzstan gold time. Basically the country wants to confiscate the mine

Peter Sorbello/the Diplomat/GATA

Centerra Gold seeks arbitration over Kyrgyzstan gold mine

 

By Paolo Sorbello

The Diplomat //

Washington, D.C.

Monday, May 17, 2021

A new law, rushed through the Kyrgyzstan parliament, could pose new threats to the business activity of the country’s largest gold mine operator, the latest of an endless series of disputes around the country’s most profitable enterprise. Now the company is seeking arbitration to resolve the ongoing dispute.

Under the guidance of the new bill, approved by parliament May 8, the government could take over operations at the Kumtor gold mine for a period of three months in case of documented threats to the environment or human health.

While the law, signed by President Sadyr Japarov on May 14, does not explicitly target the Kumtor gold mine, it is directed toward companies that operate under concession agreements in Kyrgyzstan.

The Kumtor gold mine is the only project in the country operating under a concession agreement, which the government signed in 2009 with Centerra Gold. …

 


 


 


 


… For the remainder of the report:

 


https://thediplomat.com/2021/05/centerra-seeks-arbitration-over-kyrgyz-g…

=END

 

iii) Other physical stories:

GOLD TRADING TODAY

Gold Gains As Dollar Goes Red For 2021, Nears Lowest Since 2014

BY TYLER DURDEN
TUESDAY, MAY 18, 2021 – 10:07 AM

The USDollar index’s recent acceleration lower has pushed it into the red for 2021, erasing the 3% surge seen in the first few months of the year…

Source: Bloomberg

As Bloomberg notes, the recent weakness came after Fed officials reiterated (vehemently) on Monday that they see recent price pressures as transitory and intend to keep policy accommodative for some time to come. Meanwhile, investors are brushing off fears that the new Indian virus variant could threaten reopening drives in the U.K. and Europe, while a surge in raw materials from iron to oil and copper has buoyed commodity-linked currencies.

“Global growth should broaden, and the vaccine and growth laggards should bounce back,” said Deutsche Bank AG strategists George Saravelos and Shreyas Gopal.

“This should be conducive to a return of broader USD weakness, and we see European currencies as the prime beneficiaries.”

But all of this has pushed the dollar down to a critical support level, near its weakest since 2014…

Source: Bloomberg

And the dollar’s recent slide has reignited interest in gold (as bitcoin comes under pressure)…

Of course, the only thing that can stop the dollar’s demise is Goldman going short again…

Still this trend is definitely not your friend if you’re a dollar-based consumer/investor…

And finally, don’t forget that the dollar’s status as the dominant global reserve currency has dropped to a 25 year low

Source

Remember, nothing lasts forever…

 

As Craig Hemke recentlky noted, The Fed is powerless to ‘fix’ any of this (even if it should want to) as it is stuck and is fearful of rising rates with massive U.S. debt. Hemke contends, “The Fed cannot allow the bond market to sell off because that would translate to higher interest rates. We are already at $30 trillion in a federal budget deficit . . . and they are averaging 1.5%. So, they are paying $450 billion in interest alone. If that goes to 3%, they are paying $900 billion. If that goes to 4.5%, they are paying $1.3 trillion. The whole budget deficit has already exploded, and there is no turning back. . . . You saw the CPI at 4.25 %. Who in their right mind is going to buy a Treasury note at 1.65%? They will guarantee themselves a loss of purchasing power of 2.5%. . . . The Fed is promising that the inflation rate is going to come down, and it will be ‘transitory.’ I say it’s not ‘transitory.’ We have $3 trillion in deficit spending this year already, and it’s only going to get worse. We are on the path of Modern Monetary Theory (MMT), and the Treasury issues the bonds and the Fed just buys the bonds. . . . This creates a very favorable environment for owning physical gold and physical silver even with the phony baloney pricing scheme of futures contracts.

COMMODITY WATCH/

Supply shortages everywhere  and it is going to last a long time

(zerohedge)

“It’s Gotten Out Of Control”: Supply Shortages Plaguing Global Economy Expected To Last A Long Time

 
TUESDAY, MAY 18, 2021 – 02:15 PM

Stocks are selling off again on Monday as worries about inflation persist, as the market is increasingly coming around to Morgan Stanley’s view that inflation will be an endemic phenomenon of the V-shaped recovery engineered by the Fed and federal government.

The defining characteristic of the post-COVID recovery will be a period of high growth and higher inflation, diminishing the risk of secular stagnation. Whether this will ultimately force the Fed to taper their bond buying and hike interest rates sooner than they otherwise might remains to be seen.

But in the latest installment of its new daly newsletter Supply Lines, Bloomberg highlighted the myriad evidence for an overheating economy, which we have been pointing out piece by piece, as prices have surged on everything from lumber (which thankfully for home builders has seen price pressures ease somewhat in recent days) to used cars, as new-car production is hampered by shortages of critical chips.

Even among low-tech products, firms are panic-buying inventory faster than suppliers can satisfy, a phenomenon that has been undoubtedly aggravated by worker shortages. And last week’s hot CPI print was perhaps the confirmatory sign the market needed to drive home the point that these rising prices are already being passed on to consumers, even if companies are loath to admit that.

And it’s not just lumber: the BBG spot commodities index is at its highest level since 2011.

Source: BBG

Because as BBG implies, this situation is truly unique, differentiated from earlier supply shocks by “the sheer magnitude” of it.

Copper, iron ore and steel. Corn, coffee, wheat and soybeans. Lumber, semiconductors, plastic and cardboard for packaging. The world is seemingly low on all of it. “You name it, and we have a shortage on it,” Tom Linebarger, chairman and chief executive of engine and generator manufacturer Cummins Inc., said on a call this month. Clients are “trying to get everything they can because they see high demand,” Jennifer Rumsey, the Columbus, Indiana-based company’s president, said. “They think it’s going to extend into next year.”

The difference between the big crunch of 2021 and past supply disruptions is the sheer magnitude of it, and the fact that there is — as far as anyone can tell — no clear end in sight. Big or small, few businesses are spared. Europe’s largest fleet of trucks, Girteka Logistics, says there’s been a struggle to find enough capacity. Monster Beverage Corp. of Corona, California, is dealing with an aluminum can scarcity. Hong Kong’s MOMAX Technology Ltd. is delaying production of a new product because of a dearth of semiconductors.

This situation has been exacerbated by an unlikely amalgam of circumstances: the pipeline hack, snow in Texas that paralyzed the state’s economy, droughts wrecking crops. And indicators show that our countries logistics experts are bracing for these shortages to continue for the next year. For evidence of this, BBG points to an obscure gauge called the “Logistics Managers’ Index”, which is based on a survey of corporate supply managers.

Source: BBG

One academic who helps compile that index said what he’s seeing is nothing short of a “paradigm” shift into our new reality:

To Zac Rogers, who helps compile the index as an assistant professor at Colorado State University’s College of Business, it’s a “paradigm shift.” In the past, those three areas were optimized for low costs and reliability. Today, with e-commerce demand soaring, warehouses have moved from the cheap outskirts of urban areas to prime parking garages downtown or vacant department-store space where deliveries can be made quickly, albeit with pricier real estate, labor and utilities. Once viewed as liabilities before the pandemic, fatter inventories are in vogue. Transport costs, more volatile than the other two, won’t lighten up until demand does.

“Essentially what people are telling us to expect is that it’s going to be hard to get supply up to a place where it matches demand,” Rogers said, “and because of that, we’re going to continue to see some price increases over the next 12 months.”

The supply shortage runs surprisingly deep. For example, Bloomberg found a small company that manufactures crib mattresses, which is struggling with shortages of foam padding that it uses to make its products. Why will this panic persist? Because panic breeds panic: as the cribe-maker quipped: “Everybody is going to overbuy it.” they said.

Caught in the crosscurrents is Dennis Wolkin, whose family has run a business making crib mattresses for three generations. Economic expansions are usually good for baby bed sales. But the extra demand means little without the key ingredient: foam padding. There has been a run on the kind of polyurethane foam Wolkin uses — in part because of the deep freeze across the U.S. South in February, and because of “companies over-ordering and trying to hoard what they can.”

“It’s gotten out of control, especially in the past month,” said Wolkin, vice president of operations at Atlanta-based Colgate Mattress, a 35-employee company that sells products at Target stores and independent retailers. “We’ve never seen anything like this.”

Though polyurethane foam is 50% more expensive than it was before the Covid-19 pandemic, Wolkin would buy twice the amount he needs and look for warehouse space rather than reject orders from new customers. “Every company like us is going to overbuy,” he said.

Perhaps the only upside of this is that if COVID-19 does make a mutant-assisted resurgence, warehouses will be well-stocked for the next shutdown.

end

Cryptocurrencies/

Cryptocurrency exchange coinbase is plunging in value

(zerohedge)

Plunging Coinbase Steamrolls Shareholders Even More With $1.25BN Convertible Offering

 
MONDAY, MAY 17, 2021 – 04:31 PM

As if the pain for Coinbase longs, some of whom were stupid enough to buy the stock above $400 on the day the company went public, wasn’t enough with COIN stock today closing below its $250 IPO reference price for the first time, and down 42% from its post-IPO high on April 14…

… having been up just 7 of the 24 days since it went public…

… moments ago the Coinbase management team, which has been engaged in a furious dumping of its stock without regard for outside shareholders, decided to suckerpunch all those who were dumb enough to believe in the cryptoexchange by announcing a $1.25BN convertible offering due 2026 sold pursuant to Rule 144A to qualified institutional buyers.

 According to prospectus, “this capital raise represents an opportunity to bolster Coinbase’s already strong balance sheet with low cost capital that maintains operating freedom and minimizes dilution for Coinbase’s stockholders.” Which is wonderful since the company went public just one month ago!

Coinbase said it intends to use the net proceeds from the offering for general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions.

If the initial purchasers exercise their option to purchase additional notes, Coinbase expects to use a portion of the net proceeds from the sale of such additional notes to enter into additional capped call transactions. Coinbase may also use a portion of the net proceeds to make investments in and acquisitions of other companies, products or technologies that Coinbase may identify in the future.

The offering comes just days after Coinbase said it brought in $1.8 billion in total revenue for the first quarter of 2021.

And as Bloomberg adds, the convertible bonds are expected to be offered with an initial coupon range of 0% to 0.5%, with the conversion premium offered at 55% to 60%. The bond are being sold via Goldman and JPMorgan, and are expected to price after the market’s close on Tuesday.

The news sent the stock, which was already down 4% for the day, sliding another 3% lower after hours as investors are left wondering what cruel and unusual ways the management, which has been furiously dumping its stock…

… has in mind to push the price to zero in what appears to be the modern version of the Hudsucker Proxy.

end

JB Express : Jim and the Boys talk to Chris Marcus

 

***

 

end

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

i) Chinese yuan vs USA dollar/CLOSED UP at 6.4240 /

//OFFSHORE YUAN:  6.4241   /shanghai bourse CLOSED UP 11.40 PTS OR 0.32% 

HANG SANG CLOSED UP 399.72 PTS OR 1.42% 

2. Nikkei closed UP 399.72 PTS OR 1.42% 

 

3. Europe stocks  ALL GREEN EXCEPT SPAIN

USA dollar index  DOWN TO 89.84/Euro RISES TO 1.2213

3b Japan 10 year bond yield: RISS TO. +.080/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.97/ 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 ABOVE 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI:: 66.84 and Brent: 98.86

3f Gold UP/JAPANESE Yen UP 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 FALLS TO -.12%/Italian 10 Yr bond yield DOWN to 1.10% /SPAIN 10 YR BOND YIELD DOWN TO 0.60%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.22: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.10

3k Gold at $1870.50 silver at: 28.54   7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble  DOWN 4/100 in roubles/dollar) 74.04

3m oil into the 66 dollar handle for WTI and 69 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 108.97 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 .8977 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0964 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 FALING to 0.12%

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 1.639% early this morning. Thirty year rate at 2.358%

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

6.  TURKISH LIRA:  DOWN  TO 8.34.. DEADLY

Futures, Global Stocks Rise As Dollar Rout Accelerates

 
TUESDAY, MAY 18, 2021 – 08:19 AM

US equity futures rose for the 3rd day in 4 and world stocks pushed higher on Tuesday while the dollar tumbled to three-month lows as  optimism that economic reopening will boost growth outweighed concern about a pick-up in virus cases in parts of Asia even if it leads to higher prices. Oil gained and 10Y yields dropped marginally.

At 7:30 a.m. ET, Dow e-minis were up 77 points, or 0.22%, S&P 500 e-minis were up 9 points, or 0.3%, and Nasdaq 100 e-minis were up 73 points, or 0.55%. Retailers Walmart and Macy’s jumped in premarket trading after raising their full-year guidance, while Home Depot gained as its results beat estimates. Commodity and automotive shares boosted the Stoxx Europe 600 Index, while Asian equities also climbed.

 

Nasdaq 100 contracts led U.S. futures higher after dovish remarks on Monday from Fed Vice-Chair Richard Clarida, who pointed to the weak April jobs report as proof of slack in the economy, and from other Fed policymakers helped to reassure markets that U.S. monetary policy will remain easy. The comments came ahead of Wednesday’s release of the minutes from the Fed’s policy meeting last month, which will be closely watched for any indications about where monetary policy is headed this year.

“Investors welcomed reassuring words from Fed Vice Chairman Richard Clarida yesterday as he continued to downplay inflation data, highlighting lingering lack of progress on employment numbers,” said Pierre Veyret, an analyst at ActivTrades in London. “The trading stance remains bull-oriented so far and investors are ready to seize any opportunity to buy dips on stocks.”

“In short, the Fed’s music is still the same. It is not yet time for tapering, and will not be for a while,” said Giuseppe Sersale, fund manager at Anthilia in Milan.

Here are some notable premarket movers:

  • AMC Entertainment jumped 9.5%, adding to recent gains fueled by a social-media frenzy about meme stocks and crypto-currencies
  • AT&T shares extend Monday’s slide in premarket trading after the communications giant said it will spin off its media operations and merge them with Discovery. Shares fall 4.3%
  • Baidu reported revenue for the first quarter that beat the average analyst estimate. Shares rise 3.2%
  • Shares of EV charging equipment makers Chargepoint Holdings and Blink Charging gained 1.7% and 2.6% as President Joe Biden was set to make the case for his $174 billion electric vehicle plan on Tuesday
  • Eastman Kodak falls 5.4% after Reuters reports that the New York Attorney General’s office is preparing an insider-trading lawsuit against the firm and its executive chairman, Jim Continenza. Reuters cites the company and people familiar with the matter
  • Home Depot shares rose as much as 2.6% ahead of the bell after the home improvement retailer reported first-quarter results that handily topped analysts’ estimates. Shares of competitor Lowe’s, which reports premarket Wednesday, may also rise
  • II-VI was downgraded to equal weight from overweight at Barclays, which wrote that the stock offered limited upside given its acquisition of Coherent. Shares fall 0.6%
  • MGM Resorts International rises as much as 2.5% after JPMorgan analyst Joseph Greff raised his recommendation on the stock to overweight from neutral
  • Macy’s Inc. soared after posting first-quarter sales that outpaced Wall Street’s expectations — a sign that shoppers are venturing back to department stores and malls as vaccination rates rise. Shares rise 4.8%
  • Performance Food has agreed to buy Core-Mark in a cash and stock deal with $2.1 billion equity value, according to Bloomberg data. Shares climb 6.3%
  • Tencent Music analysts were mostly positive on the China-based online music entertainment company after it reported first- quarter revenue that beat expectations. However, at least two firms trimmed their price targets on account of higher investments. U.S.-listed shares rose 0.7%
  • Walmart Inc. posted strong quarterly sales growth and boosted its profit outlook, an impressive feat as the retailer was facing a difficult comparison with last year’s pandemic-fueled stockpiling. The shares rose 3.5% in premarket trading.

Market volatility had risen in recent weeks on worries that abundant stimulus and rising inflationary pressure in the United States could force the Federal Reserve to reduce its support in order to prevent the world’s largest economy from overheating. “Taper talk is the new taper,” said Mike Kelly, head of multi-asset at PineBridge Investments. “Structural inflation is still some way off but temporary supply-side bottlenecks will last at least until September. The Fed will try to talk their way through it and markets will get frustrated. But the more temporary inflation overshoots, the harder it will be to avoid taper talk.”

Connected with that, tomorrow traders will parse the Fed minutes for policy discussion about inflation and hints of a timeline for reducing stimulus, after Vice Chair Richard Clarida said Monday that the weak U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back asset purchases.

Clarida’s comments spilled over to global markets, and bourses in Europe rose, with the STOXX 600 regional benchmark closing in on its previous record high, up 0.4% led higher by energy and basic resources firms on optimism around easing economic restrictions. Italy’s FTSE MIB outperforms peers. Vodafone fell 6.5% after Chief Executive Officer Nick Read’s strategy showed higher capital expenditure on network investments will hit free cash flow. Here are some notable European movers:

  • Sonova shares climb as much as 12% to a record high after the company reported better-than-expected 2H results. Analysts were particularly impressed by the company’s guidance, which exceeded expectations.
  • Ubisoft shares advance as much as 6.8%, its biggest intraday rise since Jan. 13, after Exane upgrades the video game maker to outperform from neutral on outlook for net booking growth acceleration.
  • Oxford Biomedica shares rise as much as 12% after the company announced an increase to the expected quantity of AstraZeneca vaccine it will be manufacturing this year and raised guidance.
  • Scor shares jump as much as 5.6%, their biggest intraday increase in more than 4 months, after the French insurer named a new CEO and announced the earlier than expected departure of long-standing CEO Denis Kessler, who stays on as chairman.
  • Vodafone shares fall as much as 8.3% in their biggest one-day drop since March last year as analysts flag that the telecoms group’s higher spending plans could weigh on its free cash flow.

Earlier in the session, MSCI’s broadest index of Asia-Pacific shares outside Japan rallied 1.6%, rising for a third-straight session, with Taiwan leading the charge Tuesday in a dramatic rebound from a week-long selloff amid concerns over a resurgence of the coronavirus. Taiwan’s benchmark gauge climbed more than 5% in its best day since March 2020 on news the country is in talks with the United States for a share of the vaccine doses Washington plans to send abroad. Gains were driven by tech giants including chipmaker TSMC and iPhone assembler Hon Hai Precision, which also ranked among the biggest boosts to the MSCI Asia Pacific Index. Stocks were also strong in Japan, where investors shrugged off data showing Japan’s economy shrank more than expected in the first quarter as a slow vaccine rollout and new COVID-19 infections hit spending and engaged in dip-buying after recent declines. Among larger names, human-resources firm Recruit and the nation’s largest bank MUFG climbed after encouraging outlooks. South Korean shares gained as local institutional investors added tech and auto names. MSCI’s key regional index has gained over 3% in the past three days of trading after tumbling 4.9% over three days last week. In addition to rising virus infections in places including India, Taiwan and Singapore, global markets have been spooked by fears of accelerating inflation as economies ramp back up, especially in the U.S.

“Despite the optics, underlying growth is still favorable given the conducive external backdrop — aggressive U.S. stimulus and U.S. economic reopening will lend further impetus to Asia’s export recovery,” Morgan Stanley analysts led by Terence Cheng wrote in a note. “We see recent Covid-19 flare-ups across Asia as a temporary speed bump” and “inflation should still stay benign in Asia.”

China stocks rose slightly, with the CSI 300 Index climbing 0.1% to close at 5,187.60, in its third straight day of gains and led by energy and material companies, as investor caution weighed on market sentiment. China Oilfield Services rose 4.7% to lead gains in the energy sector as Brent oil edges toward $70 a barrel. Meanwhile, vaccine makers were the biggest decliners on the gauge, as investors took profit following gains over the past week. Shanghai Fosun Pharmaceutical and Shenzhen Kangtai Biological Products fell more than 6.5% each. Semiconductor products manufacturer JCET Group was also one of the biggest drags on the index, falling 5% after saying a state chip fund planned to trim its stake in the firm.

Morgan Stanley said it remained cautious on the broader Chinese stock market despite the recent rebound, with lingering uncertainties including limited room for upside earnings revisions as they are already priced in and a reflationary environment putting pressure on company margins. There are also concerns around liquidity tightening and continued regulatory risks for internet and fintech stocks, the Wall Street broker said. Stocks in China and Hong Kong will only see gains of mid -to high-single digits over the next year, “marginally higher” than the broader emerging market universe, analysts including Laura Wang wrote in the note.

In FX, the dollar fell toward a four-month low, while U.S. 10-year Treasuries were steady as investors awaited key housing data ahead of minutes due Wednesday from the Federal Reserve’s last meeting.

The Bloomberg dollar index fell against all of its Group-of-10 peers while the euro advanced beyond $1.22 for the first time in almost three months. The New Zealand dollar outperformed led by a rally in equity and commodity markets after the Fed’s Richard Clarida played down the risk of policy tightening. The pound climbed to its highest level since February and neared amulti-year high, with the focus turning to Bank of England speeches later Tuesday, and Wednesday’s inflation data. The U.K. labor market strengthened more than expected and added more payrolls in April than any month since early 2015. The Norwegian krone touched a one-week high versus the greenback as Brent crude topped $70 a barrel in London for the first time since mid-March amid signs that recovering consumption has whittled away a glut of oil built up at the height of the Covid-19 pandemic. The yen advanced a fourth consecutive day versus the dollar.

In rates, treasuries were little changed in early U.S. session, off lows despite gains for stock futures; regional support for U.S. debt emerged during Asia session in light trading. 10-year yield near flat around 1.65% with belly of the curve slightly richer, long-end marginally cheaper on the day, steepening 5s30s by ~1bp; bunds and gilts underperform by less than a basis point. Curve slightly steeper although yields remain within a basis point of Monday’s closing levels. U.S. data includes housing starts, while Fed’s Kaplan is expected to speak. IG dollar issuance slate includes World Bank 5Y, CDP Financial $1b 5Y and Cades 3Y; another active session is expected after almost $20b was priced Monday, led by $7b UnitedHealth offering whose order book was said to approach $27b

In commodities, Brent crude topped $70 a barrel for the first time since March, as expectations of demand recovery following reopenings of the European and U.S. economies offset concern over spreading coronavirus cases in Asia. Brent crude was up 0.8% at $70.03 and U.S. West Texas Intermediate crude gained 0.7% at $66.75. Copper rose toward a record as the potential for tighter regulation and higher taxes in Chile fueled concerns about the long-term supply outlook; zinc jumped amid speculation about disruptions to Chinese output. Spot gold rose to its highest in nearly four months as a weaker U.S. dollar and growing inflationary pressure bolstered the metal’s appeal as an inflation hedge. It was last up 0.1% at $1,867.9 per ounce.

Bitcoin rose 4%, paring some of its steep losses since Tesla boss Elon Musk said he would stop taking bitcoin as payment due to environmental concerns. Ether jumped 6.7%.

Looking at the day ahead now, and data releases include US housing starts and building permits for April, UK unemployment data for March, and the second estimate Q1 GDP in the Euro Area. Central bank speakers include BoE Governor Bailey and Deputy Governors Broadbent and Ramsden, the ECB’s Villeroy and the Fed’s Kaplan. Finally, earnings releases include Walmart and Home Depot.

Market Snapshot

  • S&P 500 futures up 0.4% to 4,172.50
  • STOXX Europe 600 up 0.33% at 443.8
  • MXAP up 1.7% to 204.56
  • MXAPJ up 1.7% to 684.94
  • Nikkei up 2.1% to 28,406.84
  • Topix up 1.5% to 1,907.74
  • Hang Seng Index up 1.4% to 28,593.81
  • Shanghai Composite up 0.3% to 3,529.01
  • Sensex up 1.3% to 50,231.13
  • Australia S&P/ASX 200 up 0.6% to 7,065.98
  • Kospi up 1.2% to 3,173.05
  • German 10Y yield rose 0.2 bps at -0.113%
  • Euro up 0.5% to $1.2215
  • Brent Futures up 0.8% to $70.01/bbl
  • Gold spot up 0.1% to $1,869.23
  • U.S. Dollar Index down 0.41% to 89.79

Top Overnight News from Bloomberg

  • The surge in commodities prices is failing to trigger some of the traditional responses in bonds and currencies. Unlike recent commodities rallies in 2008 and 2011, yields on Treasuries and currencies of major exporters like Australia have barely budged. Likewise, the Federal Reserve’s favored measure of inflation expectations has disconnected from moves in raw materials
  • There’s currently no risk of a lasting return of inflation in the euro area even as the outlook for economic growth improves, European Central Bank Governing Council member Francois Villeroy de Galhau says
  • Germany’s top court rejected bids to enforce its controversial 2020 ruling on the ECB’s PSPP program with more orders against the Bundesbank and the nation’s government
  • Almost every day for the past week, in the European morning a chunky buyer of Eurodollar futures has shown up. Assuming the trades are new positions, the recent slide in USD Libor has the trades mostly coming good so far
  • In a world awash with U.S. currency, the premium for lending dollars in funding markets is disappearing as investors turn elsewhere for positive yields

A look at global markets courtesy of Newsquawk

Asian equities traded mostly positive as the region shrugged off the negative lead from Wall Street where sentiment was dragged lower by lingering inflationary concerns and following somewhat mixed NY Fed Manufacturing data, while US equity futures also staged a rebound after-hours. ASX 200 (+0.6%) was underpinned as the mining-related sectors benefitted from the continued strength in underlying commodity prices and amid reports that Australian PM Morrison is pushing states to remove domestic restrictions on vaccinated citizens as part of a plan to boost travel freedom. Nikkei 225 (+2.1%) notched firm gains with the index unfazed by the wider than expected contraction in Japan’s Q1 GDP which printed -1.3% vs exp. -1.2% Q/Q and -5.1% vs exp. -4.6% for the annualized reading. The decline in the world’s 3rd largest economy was widely anticipated due to the state of emergency for nearly a dozen prefectures including Tokyo which lasted for almost the entirety of Q1, although there was also plenty of jawboning from Economic Minister Nishimura who stated the decline was smaller than during last year’s state of emergency as spending on durable goods was solid and that the economy still has potential to recover with exports continuing to increase due to the overseas recovery. Furthermore, Nishimura suggested that job and income conditions are improving, consumer spending appetite appears strong and that the government will take flexible action including using reserves set aside to address the virus as required. Hang Seng (+1.4%) and Shanghai Comp. (+0.3%) were varied whereby the mainland lagged despite a lack of direct catalysts, but there were reports that the US Senate voted overwhelmingly to open the debate on the bill that would provide USD 110bln for technology research to address China competition, while the TAIEX (+5.2%) was the outperformer in an aggressive resurgence from yesterday’s COVID-triggered slump. Finally, 10yr JGBs languished amid strength in Japanese stocks and following the recent pullback in T-notes, while the lack of BoJ purchases also contributed to the subdued demand with the central bank only in the market today for treasury discount bills.

Top Asian News

  • Vodacom, Alibaba Look to Boost South Africa Sales With Super- App
  • China’s Neusoft Medical Said to Mull $400 Million Hong Kong IPO
  • Citi Hires 650 Wealth Professionals in Hong Kong, Singapore
  • India Seeks to Defer Prompt LNG Deliveries as Virus Curbs Demand

Major bourses in Europe have drifted off best levels but still hold onto modest gains (Euro Stoxx 50 +0.4%) amid a distinct lack of catalysts throughout the European morning and as earning seasons simmers down. US equity futures meanwhile hold onto a bulk of overnight gains but have lost momentum as Europe wanes alongside a pickup in the EUR. Bank of America’s May Fund Manager survey suggested the first signs of “peak optimism” on growth, whilst tech stocks overweight is at a three-year low as investors load up on resources and banking names, whilst suggesting that the most prominent tail risks include inflation and a taper tantrum. Back to Europe, major bourses largely see broad-based gains with some mild outperformance in the FTSE MIB (+0.7%) and AEX (+0.7%) with the former lifted by banks and the latter underpinned by its tech exposure. In fitting with this, Tech and Banks reside as top performers, but Oil & Gas and Basic Resources outpace amid price action in those respective complexes (see commodities section). Meanwhile, the Telecoms sector is the marked laggard following its outperformance yesterday as Vodafone (-10%) and Iliad (-9.0%) shares slump after earnings underwhelmed. Healthcare resides at the bottom of the pile, pressured by Novartis (-0.8%) after the US supreme court rebuffed the Co’s appeal over its arthritis drug. Overall, the sectors are portraying a pro-cyclical bias. In terms of individual movers, BT (+1.8%) bucks the telecoms trend amid reports its CEO has purchased another GBP 2mln worth of shares, whilst Vivendi (+1.7%) is also firmer on the back of news that it could offload a further 10% of its Universal Music Group business.

Top European News

  • German Top Court Rejects Bids to Enforce ECB PSPP Ruling
  • ECB’s Villeroy: No Inflation Risk, Monetary Policy to Stay Loose
  • U.K. Ministers Stuck in Talks Over Australia Trade Deal
  • Watch Food Delivery Stocks on Report DoorDash Plans German Entry

In FX, the Greenback has now given up all and more of its post-US CPI recovery gains amidst almost universal declines and a resumption of the bear trend that was prevalent prior to last Wednesday’s inflation data. Indeed, the DXY has fallen to a new sub-90.000 multi-month low at 89.751 to expose the only remaining trough ahead of 89.500 from late February (89.677 on the 25th of that month) and before Buck bears train crosshairs on the current 2021 trough (89.206 from January 6). The negative narrative for the Dollar remains the same and is compounded by renewed strength in commodities on the ROTW reopening bandwagon, bar recent/latest COVID-19 outbreak hotspots, as vaccine rollouts catch up to the US, while the Fed continues to hold back on tapering and policy normalisation in contrast to other Central Banks that have started the process of removing pandemic levels of accommodation. Ahead, housing data and more from Fed hawks Bostic and Kaplan, but it’s hard to imagine anything that might turn the tide for the index and Greenback in general at present.

  • CHF/NZD/AUD/EUR/GBP – Not much to pick between the best performing majors, or the ones extracting most from Buck’s downfall to be more precise. However, the Franc and Kiwi are just about edging it relative to fellow G10 currencies and perhaps in quid pro quo fashion following heavier depreciation when the boot was on the other foot, with the former up over 0.8975 and latter back above 0.7250, albeit facing formidable option expiry interest between 0.7260-70 in 1.4 bn before attention switches to NZ PPI later today. Conversely, the Aussie appears to have pulled far enough away from 1.2 bn expiries at the 0.7750 strike to probe 0.7800 irrespective of yet another set of dovish RBA minutes overnight ramming home the no rate hike likely before 2024, at the earliest. Elsewhere, the Euro has breached 1.2200 and Pound has climbed beyond 1.4200, as the single currency and Sterling tussle either side of the 0.8600 handle in cross terms.
  • CAD/JPY – The major ‘laggards’, though the Loonie continues to set almost daily highs against its US rival and has been close to 1.2000 as the clock ticks down to Canadian CPI tomorrow, while the Yen has rallied through 109.00 even though Japanese Q1 GDP and Capex fell short of expectations and subsequent coronavirus restrictions will take more toll on the economy.
  • SCANDI/EM – Somewhat conflicting impulses for the Nok as Brent finally overcomes resistance to scale Usd 70/brl, but Norway’s trade surplus narrows to leave the Crown under 10.0000 vs the Eur, while the Try has given up post-Turkish holiday corrective gains in stark contrast to the rest of the community that are reaping rewards of strength in underlying crude, metals and raw material prices plus Usd weakness and relatively buoyant risk sentiment overall. Note also, the Brl could well get an extra fillip from Brazilian Federal tax revenues beating consensus by some distance in March.

In commodities, WTI and Brent July contracts have been choppy but ultimately firmer, with Brent topping USD 70/bbl (vs low 69.44/bbl) alongside the European cash open in what seemed to be a tech-driven move at the time, whilst WTI tested USD 67/bbl to the upside (vs low 66.24/bbl). News flow for the complex has again been on the lighter side, with eyes remaining on the fallout of COVID across the globe, whilst geopolitical risks also remain heightened. Meanwhile, the private inventory data later today will be followed for any hints towards tomorrow’s DoEs, which is expected to be distorted by the Colonial Pipeline outage. As a reminder, a significant draw is expected in PADD1 (East Coast) product stocks alongside builds in crude and products from PADD3 (US Gulf Coast) and a decline in refining activity. Elsewhere, spot gold and silver see sideways trade as upside from softer Dollar is countered by elevated yields. LME copper meanwhile eyes USD 10,500/t to the upside with the aid of risk appetite alongside the weaker Dollar. On this front, BHP sees a rise in average copper production over the next five years of over 300k tonnes per year and predicts that there will be strong demand in steel-making as the world decarbonises. Overnight, Dalian iron ore and Shanghai zinc surged, with traders citing robust domestic demand and expectations for overseas demand to rise significantly.

US Event Calendar

  • 8:30am: April Building Permits MoM, est. 0.6%, prior 2.7%, revised 2.3%
  • 8:30am: April Housing Starts MoM, est. -2.1%, prior 19.4%
  • 8:30am: April Building Permits, est. 1.77m, prior 1.77m, revised 1.76m
  • 8:30am: April Housing Starts, est. 1.7m, prior 1.74m

DB’s Jim Reid concludes the overnight wrap

Yesterday I hinted at the need for fresh knee surgery. Well today I’m putting out a public health announcement in the hope that I save others. About 2 months ago I felt tightness and swelling at the back of my knee one morning as I started on my exercise bike. There was no specific catalyst or pain. 2 months later, and with my knee constantly swollen, the scan revealed a hole in my cartilage. There were only two things that could have caused it. Speed swing training for golf or trampolining with the kids. When I cited these two things to my consultant on Friday I fully expected him to blame golf and tell me I had to take it easier at my age. However when I said the word trampolining he looked at me in horror and said if there was one thing he would rip out of every garden that has one it would be a trampoline. He said he’s treated nearly as many of these injuries as he has skiing ones. My kids were devastated over the weekend when I told them that I had to officially retire from bouncing them on the trampoline. This is an extended list that now includes running, tennis, football and cricket. Secretly I was very relieved that golf hadn’t caused it though. So full throttle with that while I decide when to have microfracture surgery for a second time and on a different knee. This will involve 6 weeks on crutches with no weight bearing and then rehab. Sigh. So next time your kid asks you to bounce them give it a second thought.

Markets are bouncing around at the moment without quite working out what to do about the onslaught of important data since payrolls. Net net, 10yr yields are c.8.3bps higher since just before that employment report and the S&P 500 and Nasdaq are down -1.64% and -2.71% respectively. So although there have been some big daily moves in the opposite direction we’ve generally seen small risk off at the same time as higher yields over this period.

Yesterday saw a similar trend alongside a rebound in commodity prices that only served to bolster the existing inflationary pressures argument. In terms of the moves, the S&P 500 (-0.25%) and Europe’s STOXX 600 (-0.05%) both fell back by the close of trade, with technology stocks underperforming in both regions as the NASDAQ fell a larger -0.38%. This coincided with higher volatility, with the VIX index up +0.9pts to 19.7pts, though this was some way beneath the intraday high of 28.93 reached on Thursday of last week. Energy stocks were more buoyant with the S&P energy sector gaining +2.30% and the STOXX 600 Oil and Gas sector up a lesser +0.38%, aided by the fact that WTI oil prices were up +1.38% to just about reach a post-pandemic high of $66.27/bbl.

The market moves came as yesterday’s Fed speakers continued to strike their overall dovish tone, as well as their belief that the inflationary pressures seen will prove temporary. In terms of tapering, Vice Chair Clarida said that the weak jobs report in April demonstrated that “we have not made substantial further progress” that the Fed needs to see in order to begin that process. This message was also reiterated by Atlanta Fed President Bostic, who said that “We are still 8 million jobs short of where we were pre-pandemic. Until we make substantial progress to close that gap, I think we have got to have our policies in a very strongly accommodative situation or stance”.

Against this backdrop, US Treasuries were fairly steady yesterday, with the 10yr yield seeing a modest +2.0bps rise to 1.649%. The rise was driven by inflation expectations with the 10yr breakevens increasing +2.6bps to 2.56% – a new 8 year high. The moves were similar in Europe, where yields climbed to fresh pandemic highs as nervousness over ECB tapering and higher inflation remained in the background. 10yr bunds saw yields rise +1.4bps to -0.12%, which is their highest level in almost 2 years, while French OATs were up +2.7bps to 0.289%, their highest level in over a year themselves. The risk-off tone meant that bunds outperformed their counterparts across the continent, with the Italian (+2.0bps) and Spanish (+1.6bps) spreads over bunds both moving wider. The taper story is gathering some momentum here. Elsewhere the greenback fell -0.17% for its 6th daily loss in its last 8 sessions and is now trading near three month lows.

Asian markets are mostly trading higher this morning with the Nikkei (+2.24%), Hang Seng (+1.25%) and Kospi (+1.07%) all posting gains. Chinese markets are trading a bit more mixed though with the CSI (-0.16%) and Shenzhen Comp (-0.06%) down while the Shanghai Comp (+0.08%) is up. Meanwhile, Taiwan’s TAIEX exchange is up as much as +4.96% as the country’s financial stabilisation fund said it was monitoring stocks after the worst rout in more than a year. Futures on the S&P 500 (+0.23%) are also pointing towards a positive open for nowalongside the Stoxx 50 and Dax futures being up +0.68% and +0.55% respectively. In terms of overnight data, Japan’s preliminary 1Q21 annualised GDP print came in at -5.1% qoq (vs. -4.5% expected) while the previous quarter was revised down to 11.6% qoq from 11.7% qoq. In other news, Variety reported that Amazon is in discussion to buy MGM movie studio for about $9bn. Small change for a company worth $1.65tn.

In other market news, Bitcoin rose +1.63% bouncing as it reached a 3-month low, closing at $44,816. That’s just the second gain in the last week for the cryptocurrency after a variety of tweets from Elon Musk, including a new one yesterday where he clarified in a fresh tweet that “Tesla has not sold any Bitcoin”. Companies exposed to cryptocurrencies struggled yesterday, with Coinbase down -4.07% as it caught up with the moves over the weekend. Tesla was down another -2.34% and is now down -34.7% from its peaks in late-January and -18.3% YTD.

In terms of the pandemic, cases continue to decline at the global level with the number of new cases in India also having now peaked for the time being. But other areas have experienced a renewed surge, particularly in Asia, and fresh restrictions were being imposed yesterday to deal with this. In Singapore, the Ministry of Health said that they’d found a further 21 cases, of which 11 weren’t linked to existing clusters. It comes as the World Economic Forum announced that they were cancelling their annual meeting that had been scheduled to be held in Singapore, saying that it would instead happen in the first half of 2022, at a location to be determined. Given I was planning to attend I’ve recommended the Bahamas. Meanwhile, Hong Kong moved to classify Singapore as a high-risk virus destination, and will now require a 21-day quarantine for arrivals from the city-state. Elsewhere, a flareup in Taiwan saw them ban foreigners from entering for a month from May 19 until June 18. However, there was better news out of the US, where John Hopkins data showed that Sunday saw the lowest number of new cases since March 2020, at the start of the pandemic. President Biden announced that the US will send an additional 20 million vials of vaccine abroad by the end of June. The shots will be a mix of Pfizer, Johnson & Johnson and Moderna vaccines, and will be on top of the 60 million Astrazenca shots that have already been promised.

There wasn’t a great deal of data out yesterday, though the New York Fed’s Empire State manufacturing survey for May fell slightly to 24.3 (vs. 23.9 expected). Notably however, the prices paid index rose to an all-time record of 83.5, as did the prices received index at 37.1, so adding to those signs of building inflationary pressures. Separately, the NAHB’s housing market index for May remained at 83 as expected.

To the day ahead now, and data releases include US housing starts and building permits for April, UK unemployment data for March, and the second estimate Q1 GDP in the Euro Area. Central bank speakers include BoE Governor Bailey and Deputy Governors Broadbent and Ramsden, the ECB’s Villeroy and the Fed’s Kaplan. Finally, earnings releases include Walmart and Home Depot.

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED  UP 11.40 PTS OR 0.32%   //Hang Sang CLOSED UP 399.72 PTS OR  1.42%     /The Nikkei closed UP 582.01 pts or 2.09%  //Australia’s all ordinaires CLOSED UP 0.60%

/Chinese yuan (ONSHORE) closed UP AT 6.4240 /Oil UP TO 66.84 dollars per barrel for WTI and 69.86 for Brent. Stocks in Europe OPENED ALL GREEN EXCEPT SPAIN  //  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4240. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4214   : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

NORTH KOREA//USA/

 

END

b) REPORT ON JAPAN

JAPAN//

 

3 C CHINA

CHINA

CHINA/

END

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

ISRAEL/PALESTINIANS

Israel strikes a “Hamas Submarine” on the Gaza coast as Hamas tries to destroy Israeli rigs

(zerohedge)

Watch: Israel Strikes ‘Hamas Submarine’ On Gaza Coast As Offshore Gas Rigs Under Threat

 
 
21 – 05:30 PM

Amid recent reports that Hamas has attempted to launch seaborne attacks on offshore Israeli assets, including recent attempts at rocket launches on Mediterranean gas installations, Israel’s military on Monday said its warplanes had struck a direct hit on a “Hamas submersible weapon”

A Monday Israel Defense Forces (IDF) statement said, “Today, using aerial reconnaissance and the Navy, the IDF spotted several suspects on a vessel believed to be a Hamas submersible weapon. The vessel was being taken to the coast, presumably to carry out a terror attack in Israeli waters.”

A translation of the Hebrew IDF tweet reads: “destruction of an unmanned diver vessel in the northern Gaza Strip earlier today.” The military added in a separate statement: “Some time ago, an Israeli Navy warship and aircraft carried out strikes against the vessel’s operators and the weapon itself to eliminate the threat.”

The footage purported to show the destruction of an “unmanned diver vessel” in the northern Gaza Strip, however, nothing of the vessel’s outline can be seen in the water, and it appears to be anchored at shore. 

Other IDF-released videos on Monday were said to show the destruction of more Hamas naval assets along the Gaza Strip’s coastline…

And relatedly to Hamas’ attempts at sea operations via its fledgling “naval and submarine research and development department”, there’s been reports of rockets launched on Israel’s Tamar natural gas rig, which has yet to be hit:

During the past week, the Hamas terror group has fired dozens of rockets toward Israel’s Tamar natural gas rig, which was drained of fuel and temporarily taken offline at the start of the fighting, The Times of Israel learned Sunday.

None of these rockets came close to striking the rig, which is protected by a ship-borne Iron Dome anti-missile battery and other defensive systems. As rockets produced in the Strip are not precision-guided munitions, they are highly unlikely to ever hit the rig, an exceedingly small target to hit from the coast.

The Tamar gas processing rig which lies 24 kilometers off Ashkelon – multiple Hamas rockets failed to reach their target:

Via Times of Israel

Multiple of Israel’s gas platforms stand a mere 25km of the coast of southern Israel, and often temporarily suspend operations when major fighting erupts over Gaza.

On Sunday Israel’s navy ordered a partial shutdown of the Tamar platform and others, as well as a suspension of natural gas production until further notice.

END

The clueless Biden supports a GAZA ceasefire on a call to Netanyahu . More rocket fire from Lebanon

(zerohedge)

Biden Voices Support For Gaza Ceasefire In Netanyahu Call As More Rockets Fired From Lebanon

 
MONDAY, MAY 17, 2021 – 06:30 PM

The crisis in Gaza has entered its second week of fighting, with the death toll in Gaza as of Monday topping 200 from unrelenting Israeli airstrikes, and in Israel ten civilians have been killed due to Hamas and Islamic Jihad rocket fire. Under mounting criticism for lack of any significant diplomatic action coming out of Washington, the White House for the first time has issued a statement in support of a ceasefire

In a Monday phone call with Israeli Prime Minister Netanyahu, Biden first relayed the usual support of “Israel’s right to defend itself against indiscriminate rocket attacks,” while also urging every effort on the part of Israel’s military to protect civilians. According to the readout, “The President expressed his support for a ceasefire and discussed U.S. engagement with Egypt and other partners towards that end. The two leaders agreed that they and their teams would remain in close touch.”

According to late Monday reports from the Times of Israel, a diplomatic source “familiar with the efforts to broker a ceasefire” says that “we’re close” and that something firm is likely to be reached in “two days maximum.”

The statement comes after Blinken earlier referenced a “quiet” initiative going on behind the scenes for a ceasefire, typically done with Egypt taking a central role in talking to Hamas. The Associated Press detailed:

Speaking in Copenhagen, where he was making an unrelated tour of Nordic countries, U.S. Secretary of State Antony Blinken ticked off other, quieter U.S. outreach so far to try to de-escalate hostilities in the Gaza Strip and Israel, and said he would be making more calls Monday.

“In all of these engagements we have made clear that we are prepared to lend our support and good offices to the parties should they seek a cease-fire,” Blinken said.

The clock is ticking given that late Monday there was another incident along Israel’s northern border with Lebanon. Many have feared that a huge, disastrous escalation is possible if Hezbollah opens up a new front, which is thought unlikely at this point. 

For the second time in days projectiles have been fired toward Israel from southern Lebanon by unknown entities, with the Israeli military confirming six rockets were fired but failed to make it across the border.

The army responded by shelling areas that it said was the source of the firing – which sets up the possibility or likelihood of further retaliation from militants in southern Lebanon. The region is certainly a Hezbollah stronghold, but multiple Palestinian militant groups have long operated from there as well.

Meanwhile the violence looks to continue, with little that’s firm regarding “closeness” to reaching a ceasefire agreement actually on the horizon…

 END
 
TURKEY/USA/ISRAEL
Erdogan blast Biden for his stance with Israel
(zerohedge)

“Blood On Your Hands”: Erdogan Issues Worst Rebuke To Biden Since Taking Office

 
TUESDAY, MAY 18, 2021 – 01:15 AM

Turkish President Recep Tayyip Erdogan on Monday blasted the Joe Biden administration for standing idly by while the civilian body count piles up in Gaza after one week of unrelenting Israeli airstrikes. And even more than this Turkey is outraged over new reports that Biden approved a $735 million dollar weapons sale from the United States to Israel.

“You are writing history with your bloody hands,” Erdogan said in remarks addressed to President Biden. The stinging rebuke came after a meeting with this cabinet over the continuing Gaza crisis. Turkey has long been a staunch supporter of Palestinian rights, though Erdogan’s rule has in recent years seen relations with Israel reach a low-point given the hardline Islamist leanings of his Justice and Development Party. The Hill reports of the massive US weapons sale to Israel that “A majority of the possible sale is of Boeing-made Joint Direct Attack Munitions, equipment that can make unguided bombs dropped from aircraft into guided missiles, the aide confirmed.” 

“The window for Congress to block this sale is for all intents and purposes closed,” The Hill wrote, also noting outrage among a handful of Democrat progressives.

Following a meeting with his Cabinet, Erdogan issued a rebuke to the U.S. president, saying:

Now, unfortunately, you (Biden) are writing history with your bloody hands with this event (in which) Gaza is being attacked with seriously disproportionate force causing the martyrdom of thousands of people. You have forced us to say this.”

And specifically on the new reports of Biden-approved weapons sales to the Jewish state, Erdogan scolded further:

“Today we saw Biden’s signature on weapons sales to Israel,” Erdogan said in reference to US media reports of a new arms shipment approved by the Biden administration.

“Palestinian territories are awash with persecution, suffering and blood, like many other territories that lost the peace with the end of the Ottomans. And you are supporting that,” Erdogan said.

This apparently marks the end of previously reported attempts of Erdogan to reach out to the administration, following warmer (despite at times tense) personal relations with Trump, given that Monday’s comments mark the harshest words Erdogan has unleashed on Biden since his January arrival in the White House. 

After all this, Erdogan apparently offered his vision for peace in the region…

But Turkey’s leader also went after some European countries, especially Austria – over reports of the Austrians flying an Israeli flag from a government building. He said Austria is trying to make Muslims “pay the price of their own genocide against the Jews” – a reference to the large number of Austrian Nazis that during WWII helped facilitate the Holocaust there.

end

6.Global Issues

CORONAVIRUS UPDATE/VACCINE

HEALTH IMPACT NEWS:

European database for adverse drugs reactions for our 4 COVID 19 vaccines.

Michael Every on today’s major topics

(Michael Every)

Rabo: All The Elements Are In Place For Things To Get Truly Heated

 
TUESDAY, MAY 18, 2021 – 09:30 AM

By Michael Every of Rabobank

You’re Toast(er)

As the market goes through another inflation/deflation/stagflation spasm, this time reflected in some commodity prices tumbling from sky-high peaks, and some going yet higher, and gold up as crypto is down, it’s time to underline that all the elements are in place for things to get truly heated ahead.

After the US CPI report, I talked about the price of second-hand cars and how the lack of any new vehicles, because of the global lack of semiconductors, meant people were having to bid up whatever there was available to drive around in. Yet don’t think there aren’t silicon chips in *everything* nowadays: phones and computers, sure; but even fridges and toasters use them. And so does farming equipment – at a time when there is huge, underlying, upwards pressure on food prices for many other reasons. Indeed, a report from Hoosier Ag Today says:

“The biggest factor impacting the ability of US farmers to produce the food we need has nothing to do with the weather, the markets, trade, regulations, or disease. The worldwide shortage of computer chips will impact all aspects of agriculture for the next two years and beyond…farm equipment manufacturers have halted shipments to dealers because they don’t have the chips to put in the equipment…not only have combine, planter, tillage, and tractor sales been impacted, but even ATV supplies are limited. Parts, even non-electric parts, are also in short supply because the manufacturers of those parts use the chips in the manufacturing process. As farmers integrate technology into all aspects of the farming process, these highly sophisticated semi-conductors have become the backbone of almost every farming operation.”

So let’s just underline again that we built a technological wonder of a global economy based on just-in-time supplies of a few key inputs from only a few locations; and then demand surged due a virus that ran rampant through said global economy; and supply chains got snarled for that, and other reasons; and now a lack of silicon chips even impacts on the price of potato chips (in the US) and chips (in the UK). And this is before global supply-chain issues get any worse due to increasingly-strained geopolitics, physically and/or legally.

As the Hoosier Ag Today concludes in op-ed rather than straight news fashion: “While free and fair world trade is important, there is value in having adequate domestic production of vital things like computer chips, energy, vaccines, and, of course, food.  This is something our leaders need to be thinking about before the next shortage reaches crisis proportions.” Lots of leaders are: but more in some sectors, and some countries, than others.

From those not on that Talebian “where is the fat tail risk?” list, what we get instead is a continuation of the verbal and intellectual trend that inserted silicon chips into toasters. In this regard, it reminds me of the AI-driven Talkie Toaster from UK sci-fi comedy ‘Red Dwarf’. Bought for $£19.99 (DollarPounds) plus tax, to quote from a fan Wiki: “Despite being more intelligent than the Red Dwarf computer Holly, the novelty kitchen appliance was, on top of being defective, only designed to provide light conversation at breakfast time, and as such it was totally single-minded and tried to steer every conversation to the subject of toast.” In one episode, we get this exchange, for example:

Lister: Look, I don’t want any toast, and he doesn’t want any toast. In fact, no-one around ‘ere wants any toast!

Talkie Toaster: How ’bout a muffin?

Lister: Or muffins, we don’t like muffins round ‘ere! We don’t want muffins, no toast, buns, baps, baguettes or bagels, no croissants, no crumpets, no teacakes, no potato cakes and no hot cross buns! And definitely no flapjacks!

Talkie Toaster (after a very brief pause): Ah, so you’re a waffle man!

Of course, Talkie Toaster is highly intelligent: but any subject will be steered round to toasting, which is the raison d’être and sine qua non of existence. In another episode we get this:

Talkie Toaster: I have a question. A sensible question. A question that will test the limits of your new IQ and stretch the sinews of your knowledge to bursting point!

Holly: This is gonna be about waffles, isn’t it?

Talkie Toaster (sounding hurt, as it’s been caught out): Certainly not. And I resent the implication that I’m a one-dimensional bread-obsessed electrical appliance!

Holly: I apologise, Toaster, what’s the question?

Talkie Toaster: The question is this: given that God is infinite, and that the Universe is also infinite…would you like a toasted teacake?

Substitute iterations of neoliberalism for toasting and see the parallel. If you don’t want globalization, how about free-trade? No? So you must want efficient market mechanisms operating across borders? No? Then how about balancing existing global demand and supply? If not, then how about out-sourcing to boost productivity, or maximizing returns on equity? For every global Lister saying he doesn’t want the economic equivalent of pancakes or pikelets, there are still those chirping out cheerily that in that case they must want a pita pocket “because markets”. And meanwhile, the *actual* global economy is being severely disrupted, with the tail risk of even more to come, from cotton to solar panels to who knows what or where next.

Frankly, sometimes you need to feed your brain with bacon and eggs instead; or oatmeal; or steamed buns. Indeed, without wishing to be as normative as the Hoosier Ag Today, if one thinks like an AI toaster, then one is likely to be toast in the long run: and consumers expecting low, low prices forever “because markets” are already getting burned.

Whether that inflation now means stagflation or deflation later requires more space than available here. And some toast inside me.      

end

7. OIL ISSUES

After paying the ransomware, now colonial pipeline shippers are saying that the Communication system is now down

(zerohedge)

Colonial Pipeline Shippers Say Comms System Is Down

 
TUESDAY, MAY 18, 2021 – 10:42 AM

Just two weeks after the Colonial Pipeline was hacked, causing chaotic scenes amid gas shortages as the massive U.S. fuel system, and subsequently, allegedly, paid the ransomware attackers off, shippers on the pipeline’s platform say the communications system is now down.

As Bloomberg reports, the system that allows customers to nominate and make changes to their batches of fuel traveling through the system has been inaccessible as of Tuesday morning, according to shippers on the line, asking not to be identified because the information isn’t public.

Oil prices briefly blipped higher on the headline…

And of course it prompted some social media responses:

This comes on the same day that President Biden proposes adding billions of dollars tied to improving cybersecurity to his infrastructure proposal.

end

8 EMERGING MARKET ISSUES

INDIA//CORONAVIRUS UPDATE/VACCINE UPDATE
Cases slow down.  However the deadly Indian mutant arrives in the uSA
(zerohedge)

 

India Sees Cases Slow As Outbreak Spills Into Nepal; Regional Mutant Arrives In US

 
MONDAY, MAY 17, 2021 – 10:50 PM

It finally looks like India’s brutal second wave of COVID-19 is easing, as cases again slowed on Monday, while daily deaths remained near record highs. New cases dropped below 300K on Monday, to 281,386, while deaths remained stubbornly above 4K at 4,106. In total, India has counted 24,965,463 cases (with many more likely uncounted) and 274, 390 deaths.

Vaccinations, meanwhile, have lagged with just 182M doses administered across the country of 1.4 billion.

Source: Johns Hopkins

However, there’s a new threat on the horizon that could cripple India’s health-care system at what is probably its most vulnerable moment: a cyclone called Cyclone Tauktae, which is hammering the western part of the country, including drenching the financial capital of Mumbai.

In Gujarat, where on Sunday and overnight nearly 150,000 people from 17 districts were evacuated, all Covid-19 patients in hospitals with five kilometres of the coast were also moved. In some places, to ensure that hospitals are not faced with power outages, 1,383 back-up generators have been installed, according to local officials.

Virus safety protocols such as wearing masks, social distancing and the use of sanitisers would be observed in the shelters for evacuees, officials added.

Data released Monday showed new cases in Mumbai have declined 70% in the past week, from 11,000 daily cases to fewer than 2,000 in Mumbai.

Across India, active cases number more than 3.6 million, meaning hospitals are still swamped by patients.

Izhaar Hussain Shaikh, an ambulance driver in Mumbai, drove about 70 patients to the hospital last month. Two weeks into May, he’d carried only 10 patients, according to Newsweek. “We used to be so busy before, we didn’t even have time to eat.”

Meanwhile, more signs that India’s outbreak is spreading beyond its borders emerged as the worsening outbreak in neighboring Nepal made headlines in the West. NBC News reported that cases have exploded in Nepal in recent weeks, which is one reason why China installed a border “line” at the summit of Mt Everest to warn mountaineers to stay out of China.

Dr. Tedros Adhanom Ghebreyesus, expressed worry about the unfolding crisis.

“India remains hugely concerning,” he said at a news briefing. “But it’s not only India that has emergency needs. Nepal, Sri Lanka, Vietnam, Cambodia, Thailand and Egypt are just some of the countries that are dealing with spikes in cases and hospitalizations.”

Others warned that the situation in Nepal might worsen in the coming days as some 9K cases are reported daily, while many more likely go undiagnosed.

“We are in the initial phase,” said Sushila Pandit, a Nepalese aid worker with Mercy Corps, an international nongovernmental aid group. “I think the condition will be more critical in the the coming days.”

Experts in Europe warned last week that mutant strain known as B.1.617 and some of its variants had been traced to parts of Europe and the UK. Well on Monday, scientists warned that B.1.617 had officially been tracked to the US, according to USA Today.

 
 
 
end
CHILE
This is not good.  Chile has become quite prosperous after removing Pinochet.  Now Chilean assets dive after radicals win an election mandate to overhaul Chile’s free market constitution
(zerohedge) 

Chile Assets Dive After Radicals Win Election Mandate To Overhaul ‘Free Market Friendly’ Constitution

 
MONDAY, MAY 17, 2021 – 05:10 PM

In what’s being widely described as a shock loss after this weekend’s historic election to determine who will draft the country’s new constitution, traditional parties including President Sebastián Piñera’s ruling center-right coalition Chile Vamos got clobbered, seeing their parliamentary seats and influence greatly diminish in favor of both independent, hard-left and radical candidates Sunday night.

With over 90% of the votes counted by Monday afternoon, Pinera’s coalition won a mere one-fifth of the constitutional assembly’s 155 seats (at 37 seats), while traditional center-left parties picked up only 25 seats, leaving the lion’s share to “radical blocs” that include communists and independent leftists that are bent on implementing sweeping changes to Chile’s constitution which dates back to Gen. Pinochet’s military rule. Radical re-drafting of the constitution was a central demand of the 2019 protests triggered by high living costs and rampant inequality (which famously, it should be remembered, was initially sparked by a $0.04 metro fare price hike given long boiling anger among the working class).

 

During 2019 inequality protests which rocked Chile, via AFP

BBC tallies that now with more than 98% of the votes counted, “independent candidates had secured 48 seats, the left 28, the centre-left 25, and the right-wing coalition 37.” And an additional 17 seats will go to representatives of indigenous groups, the latter which were a driving force in the protests and unrest of 2019. 

Given the ruling government failed utterly in its battle to secure the critical one-third of seats needed to block major changes, a radical new constitution is all but assured, with the new constitution expected to head to public vote by the first half of next year (after delegates will spend at least nine months drafting it).

Chile’s markets were hammered on fears of the constitutional overhaul and seemingly lighting-fast slide Leftward, with stocks immediately plummeting and the peso weakening as much as 3.6%, hitting a 1-1/2-month low before gaining a little ground back.

Upon the glaring popular rejection of established political parties Reuters recorded that “The IPSA stock index tumbled nearly 10% before recouping some losses to trade down around 8%, still its biggest daily drop since the COVID-19 pandemic ripped through global financial markets in March 2020.”

And more: “Dollar-denominated sovereign bonds suffered, with some longer-dated issues dropping more than 1 cent in the dollar. The premium demanded by investors to hold Chilean debt over U.S. Treasuries widened,” according to Reuters, and 5-year credit default swaps “jumped by 7 basis points to 61 bps, the highest since October, Refinitiv data showed.”

Market jitters are sure to stretch further for the world’s largest copper producer as well as major lithium-mining country on the extreme uncertainty regarding the likely drastic political changes on the horizon.

As an example of how far away we could be from Chile’s current “free market friendly” constitution, one of the big winners from the vote – the far-left Broad Front – had this to say… “We’re going to start from scratch and build a new Chile” toward a “state that guarantees universal social rights,” leading member of the far-left coalition, Gabriel Boric, said.

And Goldman Sachs noted this means the country is headed for a “larger, more interventionist state and the broadening of the social safety net.”

END

Your early  currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings TUESDAY  morning 7:30 AM….

Euro/USA 1.2213 UP .0057 /EUROPE BOURSES /ALL GREEN EXCEPT SPAIN

USA/ YEN 108.97 DOWN 0.271 /NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.4198  UP   0.0051  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.2037 DOWN .0025

 

Early THIS  TUESDAY morning in Europe, the Euro ROSE BY 21 basis points, trading now ABOVE the important 1.08 level RISING to 1.2156 Last night Shanghai COMPOSITE CLOSED UP 11.40 PTS OR .32% 

//Hang Sang CLOSED UP 399.72 PTS OR 1.42%

/AUSTRALIA CLOSED UP 0.60% // EUROPEAN BOURSES OPENED ALL GREEN EXCEPT SPAIN

 

Trading from Europe and Asia

EUROPEAN BOURSES CLOSED ALL GREEN EXEPT SPAIN  

 

2/ CHINESE BOURSES / :Hang Sang UP 399.72 PTS OR 1.42%

/SHANGHAI CLOSED UP 11.40 PTS OR 0.32% 

Australia BOURSE CLOSED UP 0.60%

Nikkei (Japan) CLOSED UP 582.01 PTS OR 2.19%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1868.80

silver:$28.48-

Early TUESDAY morning USA 10 year bond yr: 1.639% !!! UP 1 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

The 30 yr bond yield 2.358 UP 1  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 89.84  DOWN 32 CENT(S) from MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  TUESDAY NUMBERS 1: 00 PM

Portuguese 10 year bond yield: 0.61% DOWN 1  in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.08%  UP 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.61%//  DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:  1.10 DOWN  2  points in basis points yield from yesterday./

the Italian 10 yr bond yield is trading 49 points higher than Spain.

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.20% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

END

IMPORTANT CURRENCY CLOSES FOR  TUESDAY

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

Euro/USA 1.2205  UP     .0049 or 49 basis points

USA/Japan: 108.94  DOWN .291 OR YEN UP 29  basis points/

Great Britain/USA 1.4188 UP .0041 POUND UP 41  BASIS POINTS)

Canadian dollar UP 52 basis points to 1.2053

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The USA/Yuan,  CNY: closed    ON SHORE  (UP).. 6.4255

THE USA/YUAN OFFSHORE:  6  (YUAN UP)..6.4263

TURKISH LIRA:  8.36  EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield  at +0.08%

Your closing 10 yr US bond yield UP 0 IN basis points from MONDAY at 1.651 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.371 UP 0 in basis points on the day

Your closing USA dollar index, 89.86  DOWN 30  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 TUESDAY: 12:00 PM

London: CLOSED UP 12.51 PTS OR 0.18% 

 

German Dax :  CLOSED UP 14.68 PTS OR 0.10% 

 

Paris Cac CLOSED UP 3,54PTS OR 0.06% 

 

Spain IBEX CLOSED UP  37.20  PTS OR  0.41%

 

Italian MIB: CLOSED UP 55.27 PTS OR 0.20% 

 

WTI Oil price; 65.78 12:00  PM  EST

Brent Oil: 69.33 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    73.76  THE CROSS  LOWER BY 0.13 RUBLES/DOLLAR (RUBLE HIGHER BY 13 BASIS PTS)

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

WTI CRUDE OIL PRICE 4:30 PM : 65.37//

BRENT :  68.70

USA 10 YR BOND YIELD: … 1.645.. DOWN 1 basis points…

USA 30 YR BOND YIELD: 2.365 DOWN 1 basis points..

EURO/USA 1.2226 (UP 69   BASIS POINTS)

USA/JAPANESE YEN:108.92 DOWN .319 (YEN UP 32 BASIS POINTS/..

USA DOLLAR INDEX: 89.77 DOWN 39  cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.4196 UP 39  POINTS

the Turkish lira close: 8.36

the Russian rouble 73.62   UP 0.28 Roubles against the uSA dollar. (UP 28 BASIS POINTS)

Canadian dollar:  1.2058  UP  3 BASIS pts

German 10 yr bond yield at 5 pm: ,-0.10%

The Dow closed DOWN 267.13 POINTS OR 0.78%

NASDAQ closed DOWN 75.41 POINTS OR 0.56%


VOLATILITY INDEX:  20.94 CLOSED UP 1.22

LIBOR 3 MONTH DURATION: 0.149%//libor dropping like a stone

USA trading day in Graph Form

Gold Gains As Dollar, Commodities, Crypto, & Stocks Slump

 
TUESDAY, MAY 18, 2021 – 04:00 PM

The US cash open sparked a buying panic in stocks (after Nasdaq had given up all its overnight gains accelerating lower after the dismal housing data) and then again as 1430ET (margin call time) loomed, the broad market took a big hit. The ubiquitous dip was bought (back up to unch for Nasdaq and Small Caps) but then with about 10 mins to the close, everything fell apart…

Two relatively large sell programs hit…

Source: Bloomberg

VIX jerked back above 21 on that final puke…

Nasdaq tested up to its 100DMA this morning but failed…

Healthcare and Utes managed gains on the day with Energy and Industrials hit hardest…

Source: Bloomberg

AT&T has been monkeyhammered back to reality

While the EV SPAC boom is busted…

Source: Bloomberg

That didn’t stop China EV Retailer Jiuzi debuts 800% above IPO price on Nasdaq

Inflation expectations implied by caps/floors

Source

In fact, the forward inflation curve implies CPI above 2% for years to come (and above 3% for at least the next 3 years)…

Source: Bloomberg

Despite a modest puke across the US open after dismal Housing Starts data, Treasuries ended very modestly bid overall on the day (belly outperformed by 1-2bps vs wings unch)

Source: Bloomberg

The dollar tumbled to its lowest close since January 6th (barely above it) and is back in the red for 2021…

Source: Bloomberg

Pushing very close to critical support…

Source: Bloomberg

Cryptos staged an early rebound but ended back towards the lows with Bitcoin testing down below $43k once again…

Source: Bloomberg

Bitcoin’s next support may be around $39,600 (200DMA) or $40,000…

Source: Bloomberg

Ether was also lower on the day but outperformed Bitcoin…

Source: Bloomberg

WTI was clubbed like a baby seal today on Iran nuke deal headlines (which were quickly walked back). WTI fell close to a $63 handle (and we noted Brent broke above $70 before its plunge) ahead of tonight’s API inventory data…

Gold managed to hold on to gains for the day…

As bitcoin and the dollar sink, there has been a renaissance in the barbarous relic…

Which clobbered commodities intraday…

Source: Bloomberg

Finally, today’s horrible housing data sent US Macro Surprise data to its lowest since June 2020…

Source: Bloomberg

And, with markets awash in liquidity, plenty on Wall Street see bubble risks growing across systemically important assets, including dollar-denominated high-yield credit. Debt spreads have tightened this year to levels not seen seen 2007.

Source: Bloomberg

Kathy Jones of Charles Schwab & Co. is telling clients to beware the “nuttiness” in corporate junk bonds.

a)Market trading/THIS MORNING/USA

 
ii) Market data

 

U.S. housing starts drop sharply in April

WASHINGTON (Reuters) – U.S. homebuilding fell more than expected in April, likely pulled down by soaring prices for lumber and other materials, but construction remains supported by an acute shortage of previously owned homes on the market.

Housing starts tumbled 9.5% to a seasonally adjusted annual rate of 1.569 million units last month, the Commerce Department said on Tuesday. Data for March was revised lower to a rate of 1.733 million units, still the highest level since June 2006, from the previously reported 1.739 million units.

Economists polled by Reuters had forecast starts falling to a rate of 1.710 million units in April.

-END-

 

 

iii) Important USA Economic Stories

ILLINOIS//JEEP

Illinois is having a tough time:  now its Jeep factory is set to lay off 1,600 workers amid a global semiconductor shortage

(zerohedge)

Illinois Jeep Factory Set To Lay Off 1,600 Workers Amid Global Semiconductor Shortage

 
MONDAY, MAY 17, 2021 – 11:30 PM

A Jeep Cherokee factory is cutting 1,600 jobs in Northern Illinois as the auto industry continues to struggle with the global shortage of semiconductors.

The U.S. arm of Stellantis announced this week is was going to cut one of its two work shifts at the Belvidere Assembly Plant as of July 26. 1,641 workers could be affected, a local NBC affiliate reported over the weekend. 

Company spokeswoman Jodi Tinson claimed that the company was trying to “balance sales with production,” and that the factory’s situation “has been further exacerbated by the unprecedented global microchip shortage.”

This stands at odds with comments made by the company’s CFO earlier this month, when we reported that Chief Financial Officer Richard Palmer said the semi shortage impact would be higher in Q2, but also said it “is still very controlled”.

The plant has been idled since late March, the report notes. Its re-opening has been delayed and isn’t expected until “at least” later this month. 

Recall, we last wrote about Stellantis at the beginning of May, after the auto maker said there was “no end in sight” to the ongoing semi chip shortage. 

The company said in its report earlier this month that it lost production of 190,000 vehicles due to the shortage. The world’s fourth largest carmaker said that 8 of its 44 plants were affected by the shortage, ultimately resulting in reductions in shifts and slowing, or shuttering, of vehicle lines. 

The company had been making changes to its lineup, including changing the dashboard of the Peugeot 308, to try and adapt to the crisis. 

“We don’t have great visibility. As such it would be imprudent to assume the issue is going to go away,” Palmer continued, sounding less like the issue is “still very controlled”. 

Recall, Intel’s CEO, speaking on 60 Minutes earlier this month, said: “We have a couple of years until we catch up to this surging demand across every aspect of the business.” Days prior, we wrote that Morgan Stanley had also suggested the shortage could continue “well into 2022”. 

Stellantis was created out of the merger of Fiat Chrysler Automobiles and PSA Peugeot.

END
Stefanik angry as the Biden Justice department is trying to block the Maricopa county audit.
(Phillips/EpochTimes)

GOP Chair Elise Stefanik: Justice Department Is “Trying To Block” Maricopa County Audit

 
MONDAY, MAY 17, 2021 – 06:50 PM

Authored by Jack Phillips via The Epoch Times,

Rep. Elise Stefanik (R-N.Y.), who was recently elected as the House Republican Conference chair, said the Department of Justice’s questions about the Maricopa County, Arizona, audit of the 2020 election may be unconstitutional.

On May 5, the Justice Department sent a letter to Arizona Senate leader Karen Fann, a Republican, inquiring about the custody of the ballots under review by a group of private contractors, alleging that the group’s other processes—including the canvassing of addresses—could be considered “voter intimidation.”

“I support that audit,” Stefanik said after being asked about it in a Fox Business interview on May 16.

Transparency is good for the American people. And again, this should be a nonpartisan issue, whether you are Republican, Democrat, independent, or conservative, transparency is important, and the audit was passed by the Arizona state Senate.”

Stefanik later said that the “Biden Department of Justice is trying to block that audit,” which, she said, “is unconstitutional from my perspective.”

“Our states, constitutionally, are responsible for writing states’ constitution law,” she said.

Pamela Karlan, principal deputy assistant attorney general with the Justice Department’s Civil Rights Division, wrote to Fann that “the proposed work of the audit raises concerns regarding potential intimidation of voters.”

Fann replied that the plan by election auditors to verify the validity of certain voters had been placed on hold.

“If and to the extent the Senate subsequently decides that canvassing is necessary to the successful completion of the audit, its vendor will implement detailed requirements to ensure that the canvassing is conducted in a manner that complies fully with the commands of the United States Constitution and federal and state civil rights laws,” Fann wrote earlier this month.

Stefanik’s comments on May 16 came just days after Dominion Voting Systems and Maricopa County officials said they wouldn’t provide passwords for election machines in Maricopa County. Dominion said it would comply with the audit, but that Cyber Ninjas – the company hired by the Arizona state Senate – isn’t accredited by the U.S. Election Assistance Commission.

The Department of Justice didn’t respond to a request for comment by press time.

Stefanik was approved last week in a vote by House Republicans to become the Republican Conference chair—the party’s No. 3 position in the House. She took over after GOP lawmakers voted to remove Rep. Liz Cheney (R-Wyo.), a frequent critic of former President Donald Trump, from the position.

Stefanik received support from Trump as well as other House GOP leaders.

end

INFLATION WATCH

NONE TODAY

end

VACCINE WATCH/CORONAVIRUS UPDATE/ TEXAS//USA

Two months after the doorknob Biden blasted Texas for its “Neanderthal thinking”, Texas reports zero covid deaths

(zerohedge)

Two Months After Biden Blasted “Neanderthal Thinking”, Texas Reports Zero COVID Deaths

 
TUESDAY, MAY 18, 2021 – 08:00 AM

Texas Gov. Greg Abbott elicited criticism from Dr. Fauci and a host of Democrats when he decided to drop all COVID-19-linked restrictions in the Lone Star State back in March. Now, as states across the country are falling in line with President Biden’s aggressive new mask guidance (clearly intended to encourage more holdouts to accept the vaccine) Texas is reporting a milestone that many of these critics once believed unthinkable: On Sunday, the state’s Department of State Health Services reported its first day without a single COVID-19 deaths since March 21, 2020.

Confronted in an interview last month, Dr. Fauci finally acknowledged that he couldn’t explain Texas’ success. And President Biden memorably slammed Republicans in Texas (and in other southern states like Mississippi that followed Texas’ lead) as “Neaderthal-thinking” Republicans.

That good news was quickly overshadowed when state officials reported 23 new deaths on Monday, the highest daily count in two months.

Still, as the Houston Chronicle admits, it’s clear Texas has “turned a corner” and that the takeaway from the zero-death day is that the state has done remarkably well in combating COVID.

And in a social media post, Gov. Abbott recently rattled off a host of stats illustrating just how successful the state has been.

Adding to this, the state reported a record low seven-day positivity rate of 3.9% last week, and cases and hospitalizations have fallen to their lowest marks since last summer.

Funeral homes in the area rejoiced at finally seeing business return to a more normal pace.

Bradshaw-Carter Funeral Home owner Tripp Carter said they haven’t had a COVID-related service since early March, which she credited in part to Houstonians abiding by precautionary measures.

“We are right in the heart of the city, and so it’s just great that we haven’t seen any more cases,” Carter said. “Houstonians, or at least certainly in the inner loop, were very conscious about following CDC guidelines.”

Texas counted only 624 new confirmed infections on Wednesday according to state data, with a seven-day average of 2,072 new cases per day.

Source: State of Texas

To put this all in context, Texas was reporting nearly 30,000 new cases per day and upward of 400 deaths a day earlier this year. It once was home to the worst outbreak in the country, and last summer became the first state to top 1 million confirmed cases.

Deaths finally began to slow in March, as vaccine eligibility was gradually expanded. To date, 41% of Texans have received at least one vaccine dose, and nearly one in three are fully vaccinated against coronavirus, which lags the rate in many other states.

Now, the state can focus its attention on the new crisis of 2021: the fester crisis at the southern border caused by a surge in migrants responding to Biden’s pledge to welcome immigrants.

At least now, with the COVID numbers down, maybe Biden will deem it safe enough to hold more photo-ops at the border where he lectures the GOP on immigration policy.

iv) Swamp commentaries/

Swamp stuff:  Newsome now wishes to give money trying to bride Californians in a bid to head off the recall vote.

(Showalter/AmericanThinker.com)

Newsom Turns To Bribery, Opens Up Big Bag Of Goodies To Californians In Bid To Head-Off Recall

 
MONDAY, MAY 17, 2021 – 09:50 PM

Authored by Monica Showalter via AmericanThinker.com,

Politicians in trouble frequently wheel out the freebies ahead of a tough election.

California’s Gov. Gavin Newsom, however, is taking it to 11.

Seems, he’s not all that confident that Democrats will be able to rig him into victory to keep him in office in this year’s coming recall referendum on him. Internals must be horrible.

Which is why he’s now holding out monster goodie bag to angry voters as a last-ditch bribe to secure their votes.

According to National Review:

This week, Newsom began a statewide tour to brag about a $75.7 billion state “surplus” that is burning a hole in his recall jeans. That “surplus” alone is larger than the total expenditures of 44 other states in 2020. Combining substantial capital-gains revenues from the bank accounts of Big Tech billionaires and an embarrassing amount of federal stimulus funds, to the tune of $371 billion in total payments, the governor is taking credit for the windfall. Promising to hand out wads of cash and pay off overdue rent and utility bills while hoping middle-class voters will forget Newsom’s cavalier statewide lockdowns over the past year reeks of bribery.

It comes from a one-time slush fund surplus coming from the federal government, courtesy of Joe Biden and his congressional Democrats, and ironically, as Sacramento legislators are proposing tax hikes on normal taxpayers. Nice.

But he’s got a recall referendum coming in November, so like Hugo Chavez, he’s wheeling out the free washing machines and bags of beans, as Hugo and other corrupt Latin autocrats used to do to “win” elections.

Here’s Newsom’s own tweet advertising the crowd-pleasers he’s holding out to voters; the electoral junk food:

High as this spending is, and universal as these solutions are, they are nothing but Band-Aids onto the festering economic wounds he’s inflicted on the state last year, through high taxes, lockdowns, and police defundings, all problems which now require tourniquets.

Anybody think the billions for the homeless he’s proposing are actually going to fix homelessness in this state? It should employ a lot of bureaucrats and probably backfill some bloated public pensions, as has been the story in the past.

And where the heck is he going to get the permits to build all these free houses for the homeless in any case, given the state’s other NIMBY-inspired laws. Malibu?

That’s just one problem, and there are a ton of others:

Number one, it’s unsustainable. According to the Associated Press:

But it is a budget on the edge. Nearly all of the $100 billion in extra money is a one-time surplus, meaning it won’t be available next year. Newsom and the Legislature have already approved a massive tax cut for small businesses that will reduce revenues by more than $6 billion over the next five years.

In the years to come, budget officials predict the state’s revenue will grow slightly while its expenses keep increasing. For now, they say the two sides of the budget will balance and not cause a deficit. But that leaves no room for error in a time when the pandemic has made it impossible to predict the future.

It’s enough for Keely Martin Bosler, Newsom’s budget director, to remark on “how incredibly uncertain things continue to be.”

He’s basically proposing to spend now, get people addicted to freebie programs, and then either cut them off cold when the cash runs out, or drive the state into bankruptcy. Taxes, of course, already the nation’s highest, will go into the stratosphere.

Number two, it sends terrible messages. The guy who practically killed himself in the pandemic to pay his rent after losing his job, maybe defaulting on his other bills in the process and paying that price through his credit rating, gets nothing. The deadbeat who didn’t pay even though he could pay, or who didn’t apply for otherwise free federal aid, taking advantage of the eviction moratorium instead, gets his back rent paid. And who knows if the landlords get paid. Based on Newsom’s tweet, he might just pass a law or issue an executive action declaring that nobody needs to pay and let the landlords eat the losses. The unpaid traffic fines, meanwhile, giving the nominally poor a pass for speeding, bad driving, endangering others, expired registrations, parking in the middle of the road, taking up handicapped spaces, parking in red fire zones, any number of nightmare violations, get wiped out, while once again, the guy who moved heaven and earth to pay his parking fines at the expense of food or something, gets the news from Newsom that he’s a sucker. The whole thing smacks of a program to increase contempt for rule of law. After all, if all you have to do is wait for relief from Newsom, same as if you’re waiting for the next subway to stop, why pay anything at all?

Number three, there’s a heckuva lot that he didn’t mention. California is flooded with drug-addicted homeless, now seeping into ordinarily placid middle-class areas now. Yesterday I tried to cross a highway pedestrian bridge in San Diego into a poorer neighborhood to buy some fresh vegetables and was blocked at the entrance by three homeless people doing drugs together right in that pedestrian walkway, blocking it. Passing them by was so close that any of them could have pulled a knife on me and I went home by a longer way that involved a chancy highway underpass, which also could have been a home to bums, given that it was trash-strewn, meaning, it probably was at some point. I didn’t even call the cops, given the knowledge that they aren’t enforcing anything anymore. My conclusion from that is that it’s going to get worse, way worse, spilling into the placid, previously crime-free areas and Newsom has no intention of backing up the police to enforce this very necessary quality of life measure for the law-abiding taxpayers who pay his big-budget bills.

Newsom also didn’t mention his big plan for free health care for elderly illegal aliens over the age of 60. Elderly people have the biggest of all medical bills, and rest assured, now with Joe Biden’s border surge on, the dinner triangle has just been rung for the nation’s illegals to bring in their ailing elderly relatives because the ride is now free. If you were a citizen of someplace like Honduras and heard this, and you will, you’d be a fool not to. California’s Gov. Gray Davis was fired by voters in a recall referendum back in 2003 over the issuing of drivers’ licenses to illegals. You can see why Newsom didn’t quite put that as a selling point to voters in his tweet. But rest assured, he’s got special interests who harvest ballots who are very, very happy with him.

Number four, there’s a heckuva lot that he ought to be spending money on, yet he refuses to do. Where is the cash for more police to remove the riff-raff and criminal element that is plaguing both rich and poor areas now throughout California’s cities and making life unlivable? Where are the tax cuts in this highest-of-all high tax states? He considers that “his” money, so no tax cuts of any significance for the tax-battered. What’s he doing about monster health care costs for those who actually pay? Nothing, of course. Where is the housing and land-policy reform, which is keeping new housing from being built, and contributing to this state’s monster real estate bubble, which is pricing ordinary families out of homes? Price controls create shortages, Gav. And of course, this fool is clueless.

It’s such a bad picture, so cynical, so Peronist, (or just see that 1999 Mexican masterpiece movie “Herod’s Law” about the “crumbling, rotting, 70-year old regime of the Institutional Revolutionary Party (PRI)” as one reviewer put it, to get a whiff) that one hopes that California’s voters might just see through it. The fact that Newsom’s doing this is proof, all by itself, that he’s unfit to be governor.

Governors in this state, as National Review notes, are historically balancing elements who can say ‘no’ to spendthrift legislators, Jerry Brown before him being one example. The fact that Newsom also wrecked the state’s economy through his fanatic lockdowns while red-state governors showed real judgment and leadership in doing all they could to keep their state’s economies open is another strike against this clown. Now we have this budget-bankrupting spendfest to put the cherry on top of his rotten cake. He’s so bad even Caitlyn Jenner looks like a better potential governor than Newsom is.

Throw him out.

end

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

China April Retail Sales rose 17.7% y/y; 25% was consensus; previous +34.2%.  YTD Sales grew 29.6%; 31.9% was expected; previous +33.9%.  April Industrial Production: +9.8%, +10% exp, +14.1% previous

 

China’s Home Market ‘Out of Control’ as Prices Climb Further
Government has signaled a property tax trial to cool market
    New home prices in 70 cities, excluding state-subsidized housing, rose 0.48% last month from March, when they gained 0.41%, National Bureau of Statistics figures showed Monday. Values in the secondary market, which faces less government intervention, climbed 0.4%, the same pace as a month earlier…
https://www.bloomberg.com/news/articles/2021-05-17/china-s-home-market-out-of-control-as-prices-climb-further

Only Fed academics, leftists, and socialists, including the bevy of socialists and leftists at the Fed, cannot see inflation is a problem.  The markets on Monday reeked of inflation angst.

Gold, precious metals, copper, oil, and gasoline soared.  Techs and Fangs were aggressively sold.

ESMs hit their session high at 18:10 ET on Sunday night.  They steadily declined until the usual early US rally appeared.  The rally ended at 9:38 ET.  ESMs and stocks resumed their decline.  They hit a bottom at 13:30 ET.  ESMs and stocks then rallied into the close.

Atl Fed Prez & chief Fed leftists Bostic: Healthy Level of Inflation Is a Sign of Growing Economy

Fed’s Bostic isn’t’ rattled by higher inflation data, back continued easy policy
Atlanta Fed President Raphael Bostic said it will take a “couple of months” to understand the inflation dynamics that are underway as the economy is recovering from the pandemic. He backed a continued easy policy stance.  “I don’t think we’re going to have clear answers on this at least until early fall, and it may take longer than that. It all depends on how rapidly we recover,” Bostic said, in an interview on CNBC Monday (link)…
https://www.morningstar.com/news/marketwatch/20210517218/feds-bostic-isnt-rattled-by-higher-inflation-data-backs-continued-easy-policy

Fed VCEO Clarida: Reopening a $20 Trillion Economy May Take Longer than Shutting It Down
[No Schiff Sherlock!  That’s the best you can offer?]

Fed’s Clarida Says Not Yet Time to Start Taper Talk – BBG
The weaker-than-expected U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back the central bank’s massive bond purchases…
https://finance.yahoo.com/news/fed-clarida-says-not-yet-152635825.html

In 1978, Jimmy Carter’s personally selected Fed CEO, G. William Miller, ignored inflation to run the economy hot, acceding to Carter’s command to help Democrats in the 1978 Midterm Elections.  This unleashed the biggest US inflation since the US Civil War.

The current Fed teems with G. William Miller types: political whores that will wreck the US economy and harm average Americans to aid and abet their political sponsors. 

@FinancialJuice: WH Press Sec. Psaki: We take inflation very seriously.  The Federal Reserve is in charge of keeping track of it.  Inflation has not changed the view that more needs to be done to reduce employment.

@KatiePavlich: It is Monday. The White House called a lid at 1:48 pm eastern.

Dr Fauci says COVID has exposed the ‘undeniable effects of racism’ and shone ‘a bright light on our own society’s failings’ after the virus disproportionally killed people of color
https://www.dailymail.co.uk/news/article-9585021/Fauci-says-pandemic-exposed-undeniable-effects-racism.html

 

In rural America, census takers relied more on neighbors
In Alaska, West Virginia and other mostly rural states, census takers relied more on the word of neighbors, landlords and others for information about a home’s residents. In New Jersey, New York and other more densely populated states in the Mid-Atlantic region, they were more likely to come away from a household lacking basic information on race, sex and ethnic background…
    In these states, census takers relied on information from proxies for between almost a quarter and a third of households. Puerto Rico’s rate was 37.3%.  Nationally, the rate was 18.2%, a little less than the 2010 rate of 19.5%, but the bureau for the first time used administrative records in 2020, which helped fill in some of those information gaps…
https://apnews.com/article/census-2020-health-coronavirus-pandemic-government-and-politics-7c1175c5e89c21a142f86c3638998a86

The US Census is severely flawed – and it is used to tabulate US economic data.  Several years ago, we highlighted reports of Census workers in Philadelphia making up reports to fill their quotas.

Census ‘faked’ 2012 election jobs report
Just two years before the presidential election, the Census Bureau had caught an employee fabricating data that went into the unemployment report, which is one of the most closely watched measures of the economy…“He’s not the only one,” said the source, who asked to remain anonymous for now but is willing to talk with the Labor Department and Congress if asked…
    Labor requires Census to achieve a 90 percent success rate on its interviews — meaning it needed to reach 9 out of 10 households targeted and report back on their jobs status… The New York and Philadelphia regions, I’m told, had been coming up short of the 90 percent.  Philadelphia filled the gap with fake interviews…  https://nypost.com/2013/11/18/census-faked-2012-election-jobs-report/

Don’t count on competence of census takers
Years ago, a whistleblower told me that census field operators were cheating on surveys, particularly the ones for the unemployment rate that are done by the US Labor Department.  Instead of actually going up to peoples’ homes, knocking on doors and questioning occupants, the surveyors were filling in the answers themselves. This cheating even had a name inside the Census Bureau — “curbstoning.”..
https://nypost.com/2019/06/03/dont-count-on-competence-of-census-takers/

Sex, lies and threats at the Census Bureau
Workers at the government agency who do background checks on job applicants billed taxpayers for the equivalent of nearly 10 years of work they never did, threatened whistleblowers who looked to turn them in and did favors for sexual partners and relatives, an eye-opening report has found.  Now 40 or so of these workers have been bagged by the inspector general of the Commerce Department — which oversees Census — who called perfectly improper behavior “pervasive misconduct.”…
https://nypost.com/2015/09/21/sex-lies-and-threats-at-the-census-bureau/

@EricTopol: In a matter of days, the US covid death rate will drop to the lowest level since the start of the pandemic.  [Chart at link]  https://twitter.com/EricTopol/status/1393932611077107712

Dallas Fed Prez Kaplan: We Should Acknowledge that the Fed Impacts Asset Price and Inequality

Censorship, Surveillance and Profits: A Hard Bargain for Apple in China – Apple built the world’s most valuable business on top of China. Now it has to answer to the Chinese government.
Apple now assembles nearly all of its products and earns a fifth of its revenue in the China region. But just as Mr. Cook figured out how to make China work for Apple, China is making Apple work for the Chinese government
Chinese workers assemble nearly every iPhone, iPad and Mac. Apple brings in $55 billion a year from the region, far more than any other American company makes in China…
    China’s leader, Xi Jinping, is increasing his demands on Western companies, and Mr. Cook has resisted those demands on a number of occasions. But he ultimately approved the plans to store customer data on Chinese servers and to aggressively censor apps, according to interviews with current and former Apple employees… The Chinese government must approve any encryption technology that Apple uses in China, according to two current Apple employees…
https://www.nytimes.com/2021/05/17/technology/apple-china-censorship-data.html

Why The Biden Administration Will Not Define The Pipeline Attack As Terrorism
The White House wanted to portray itself as a pure observer to a private decision on how to handle “hackers.”  The reason is obvious: Colonial just paid a ransom to terrorists. Moreover, gas pipelines are not just “a private company” but a highly regulated industry that closely follows the government’s directions…  What the Biden administration seems to fear most is public recognition that it is afraid — afraid of the vulnerability of our infrastructure, afraid that the public will learn what cyber terrorists already know…
https://jonathanturley.org/2021/05/17/welcome-to-the-darkside-why-the-biden-administration-will-not-define-the-pipeline-attack-as-terrorism/

From India, Brazil and Beyond: Pandemic Refugees at the Border – NYT
Fleeing virus-devastated economies, migrants are traveling long distances to reach the United States and then walking through gaps in the border wall. The Arizona desert has become a favorite crossing point.
    The Biden administration continues to grapple with swelling numbers of migrants along the southwestern border. In April alone, 178,622 people were encountered by the Border Patrol, the highest number in 20 years…
    From India and elsewhere in Asia, they embark on Phileas Fogg journeys. Some reported taking buses in their hometowns to a big city, like Mumbai, where they boarded planes to Dubai and then connected through Moscow, Paris and Madrid, finally flying to Mexico City. From there, they embarked on the two-day bus ride to reach the Mexico-U.S. border
https://www.nytimes.com/2021/05/16/us/migrants-border-coronavirus-pandemic.html?referringSource=articleShare

 

@ByronYork: This is a disaster entirely of Joe Biden’s makingThe US would never tolerate such a situation at its airports or seaports. But large parts of the US-Mexico border are open, and people from around the world see an opportunity.

Biden Turns ‘War on Terror’ Tactics on Americans After Capitol Riot [Team Biden’s Reichstag?]
He uses the threat of “white supremacist terrorism” to ramp up spying on private communications.
https://spectator.org/biden-domestic-security-spying-no-fly-list/?s=02

Ex-US Sec of State @mikepompeo: The Biden Administration has distanced itself from Israel by attempting to revive the failed Iran deal, siding with the Ayatollahs over our ally. America must be strong and defend its allies without hesitation.

Secretary of State Antony Blinken says ‘he’s seen NO evidence’ Hamas was operating in Gaza media building destroyed in airstrike – despite claims that Biden was ‘satisfied’ with Netanyahu’s ‘smoking gun’ intelligence
https://www.dailymail.co.uk/news/article-9587697/Antony-Blinken-says-hes-seen-no-evidence-Hamas-operating-Gaza-building-used-AP.html

CNN cuts ties with freelancer who tweeted praise for Hitler https://t.co/4Dq1hoyamK

2 police officers among 48 people shot in Chicago in violent weekend [Where’s the outrage?]
https://abcnews.go.com/amp/US/police-officers-48-people-shot-chicago-violent-weekend/story

SNL ratings dive to lowest level EVER one week after Elon Musk’s hosting gig
https://www.dailymail.co.uk/news/article-9586577/Saturday-Night-Live-ratings-dive-lowest-viewership.html

end 

Let us conclude TUESDAY’S commentary with this interview XXX by Greg Hunter
 
 
 

end  

I WILL SEE  YOU WEDNESDAY NIGHT

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