MAY 26/GOLD UP $4.45 TO $1901.15//SILVER DOWN 15 CENTS TO $$27.80//SILVER OZ STANDING AT THE COMEX: 36,340,000//GOLD TONNAGE: 5.6 TONNES//FRONT JUNE GOLD OI: 89,188 CONTRACTS// SILVER BULLION ONE OZ COIN: $10.50 OVER SPOT OR $38.50 USA//CORONAVIRUS UPDATES/VACCINE UPDATE//TED BUTLER ON THE MAJOR SHORTS IN SILVER//CHINA TRYING TO TAMP DOWN INFLATION AS THEY OUTLAW THE BUYING OF COMMODITY LINKED INVESTMENT PRODUCTS//AFTERMATH OF THE BELARUS HIJACKING OF A DISSIDENT AND HIS GIRLFRIEND: BECOMES EXPLOSIVE// IRAN SAID TO ALREADY HAVE BOMB GRADE ENRICHED URANIUM//INFLATION WATCH ON COMMODITIES: COFFEE/LUMBER//HOUSE PRICES//SWAMP STORIES//

GOLD:$1901.15   UP $4.45   The quote is London spot price

Silver:$27.80  DOWN 15 CENTS   London spot price ( cash market)

your data.

 
 
 

Closing access prices:  London spot

i)Gold : $1896.55 LONDON SPOT  4:30 pm

ii)SILVER:  $27.69//LONDON SPOT  4:30 pm

LBMA OTC options expiry on Friday which is also first day notice

Expect a big raid on gold and silver tomorrow

 

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

 

 

PLATINUM  $1196.06  DOWN $13.51

PALLADIUM: 2746.33 DOWN $55.87  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.

May 19: James McShirley

Coin premiums to spot continue to widen. Gold Eagles blew out another $20 and are now +$200 and up to spot. Despite the futures selloff Silver Eagles are holding steady around $40 and up. Physical buying is belying the Crimex racket. T

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 1/45

EXCHANGE: COMEX
CONTRACT: MAY 2021 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,898.100000000 USD
INTENT DATE: 05/25/2021 DELIVERY DATE: 05/27/2021
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
624 H BOFA SECURITIES 32
657 C MORGAN STANLEY 1
661 C JP MORGAN 1
661 H JP MORGAN 45
732 C RBC CAP MARKETS 11
____________________________________________________________________________________________

TOTAL: 45 45
MONTH TO DATE: 1,793

ISSUED: 45

Goldman Sachs:  stopped: 0

 
 

NUMBER OF NOTICES FILED TODAY FOR  MAY. CONTRACT: 45 NOTICE(S) FOR 4500 OZ  (0.1399 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1793 NOTICES FOR 179,300 OZ  (5.577 tonnes) 

SILVER//MAY CONTRACT

19 NOTICE(S) FILED TODAY FOR 95,000  OZ/

total number of notices filed so far this month  : 7264 for 36,320,000  oz

 

BITCOIN MORNING QUOTE  $39,755 UP 2257  DOLLARS 

 

BITCOIN AFTERNOON QUOTE.:$38,006 DOWN 508 DOLLARS

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GLD AND SLV INVENTORIES:

GLD AND SLV INVENTORIES:

Gold

WITH GOLD UP $4.45 AND NO PHYSICAL TO BE FOUND ANYWHERE:

WITH ALL REFINER CLOSED//MEXICO ORDERING ALL MINES SHUT:   WHERE ARE THEY GETTING THE “PHYSICAL?STRANGE:  A HUGE CHANGE IN GOLD INVENTORY AT THE GLD// A PAPER WITHDRAWAL OF 2.04 TONNES FROM THE GLD// MAKES NO SENSE!

//

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: 1,044.08 TONNES OF GOLD//

Silver

AND WITH NO SILVER AROUND  TODAY: WITH SILVER  DOWN 15 CENTS

NO CHANGE IN SILVER INVENTORY AT THE SLV

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:

576.673  MILLION OZ./SLV

xxxxx

GLD closing price//NYSE 177.61 DOWN $0.34 OR  0.19%

XXXXXXXXXXXXX

SLV closing price NYSE 25.67 DOWN $0.32 OR 1.23%

XXXXXXXXXXXXXXXXXXXXXXXXX

 
 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Let us have a look at the data for today

THE COMEX OI IN SILVER ROSE BY A STRONG SIZED 1376 CONTRACTS FROM 179,454 UP TO 180,830, AND CLOSER TO THE NEW RECORD OF 244,710, SET FEB 25/2020. THE GAIN IN OI OCCURRED WITH OUR STRONG  $0.16 GAIN IN SILVER PRICING AT THE COMEX  ON TUESDAY. IT SEEMS THAT THE GAIN IN COMEX OI IS PRIMARILY DUE TO SOME 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 SMALL EXCHANGE FOR PHYSICAL ISSUANCE. WE ALSO  HAD ZERO LONG LIQUIDATION 

I AM NOW RECORDING THE DIFFERENTIAL IN OI FROM PRELIMINARY TO FINAL:

IN SILVER ONLY 282 CONTRACT DIFFERENTIAL…MAY 26.2021  (1658 GAIN VS 1376 GAIN)

WE WERE  NOTIFIED  THAT WE HAD A SMALL  NUMBER OF  COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: 592,, AS WE HAD THE FOLLOWING ISSUANCE: MAY:  0, JUNE: 0 JULY 592 AND ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE 592 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

36.340 MILLION OZ INITIAL STANDING FOR MAY 

 

TUESDAY, 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 $0.16).OUR OFFICIAL SECTOR/BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS AS  WE HAD A STRONG GAIN OF 1948 CONTRACTS ON OUR TWO EXCHANGES.  THE GAIN WAS DUE TO i) SOME BANKER/ALGO SHORT COVERING// WE ALSO HAD  ii) STRONG REDDIT RAPTOR BUYING//.    iii)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS iiii) A VERY STRONG INITIAL  SILVER STANDING FOR COMEX SILVER MEASURING AT 37.700 MILLION OZ AND THEN FALLING FOR SEVERAL DAYS WITH TODAY DECREASING TO 36.340 MILLION OZ ON DAY 17 AS NO SILVER WAS AVAILABLE ON THE ENGLISH SIDE OF THE POND OR ON THIS SIDE!, v) GOOD 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:

26,412 CONTRACTS (FOR 17 TRADING DAY(S) TOTAL 26,412 CONTRACTS) OR 132.060 MILLION OZ: (AVERAGE PER DAY: 1553 CONTRACTS OR 7.768 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 132.060  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: 132.060 MILLION OZ. (SILVER IS STILL IN SEVER BACKWARDATION BUT EFP ISSUANCE DRAMATICALLY INCREASING AGAIN!!)

 

RESULT: WE HAD A GOOD INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1376, WITH OUR $0.16 GAIN IN SILVER PRICING AT THE COMEX ///TUESDAY .…THE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 572 CONTRACTS WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS.

TODAY WE HAD A VERY STRONG SIZED GAIN OF 1948 OI CONTRACTS ON THE TWO EXCHANGES (WITH OUR $0.16 GAIN IN PRICE)//THE DOMINANT FEATURE TODAY// SOME BANKER SHORTCOVERING/  AND A VERY STRONG INITIAL SILVER OZ STANDING FOR MAY. (37.770 MILLION OZ) FOLLOWED  TODAY WITH ANOTHER 180,000 OZ LOSS  …. SO OUR NEW STANDING LOWERS TO 36,340,000 OZ.  

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e  572  OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s)TOGETHER WITH A STRONG SIZED INCREASE OF 1376 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH OUR $0.16 GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $27.95//TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

WE HAD 19 NOTICES FILED TODAY FOR 95,000 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 FELL BY A HUGE SIZED SIZED 20,718 CONTRACTS TO 510,164 ,,AND FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE DIFFERENTIAL FROM PRELIMINARY OI TO FINAL OI IN GOLD TODAY: A WHOPPING  10,299 CONTRACTS.

THE HUGE SIZED DECREASE IN COMEX OI CAME DESPITE OUR RISE IN PRICE  OF $12.25///COMEX GOLD TRADING//TUESDAY.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, DESPITE  THE GOOD SIZED LOSS OF 15,581 TOTAL CONTRACTS ON OUR TWO EXCHANGES, THE MAJORITY OF LOSS  WAS DUE TO THE COMMENCEMENT OF SPREADER LIQUIDATION  (CLOSE TO 20,000 CONTRACTS).   WE ALSO HAD A STRONG INITIAL STANDING IN GOLD TONNAGE FOR MAY AT 3.530 TONNES TO WHICH WE HAD A STRONG GAIN OF 1800 OZ ON DAY NO 15 AND NOW 5.577 TONNES ARE STANDING. THIS FOLLOWED A STRONG APRIL AT 95.331 TONNES. 

YET ALL OF..THIS HAPPENED WITH OUR GAIN IN PRICE OF $12.25 WITH RESPECT TO TUESDAY’S TRADING

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

WE HAD A GOOD SIZED LOSS OF 15,851 OI CONTRACTS (49.30 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A GOOD SIZED 4867 CONTRACTS:

CONTRACT  AND JUNE:  4867; AUGUST: 0  ALL OTHER MONTHS ZERO//TOTAL: 3220 The NEW COMEX OI for the gold complex rests at 510,164. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EXCHANGE DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A HUGE SIZED DECREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 15,851 CONTRACTS:  20,718 CONTRACTS DECREASED AT THE COMEX AND 4867 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS OF 15851 CONTRACTS OF 49,30 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES

WE HAD A GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (4867) ACCOMPANYING THE HUGE SIZED LOSS IN COMEX OI 20,419 OI): TOTAL LOSS IN THE TWO EXCHANGES:  15,851 CONTRACTS. WE NO DOUBT HAD 1) HUGE BANKER SHORT COVERING/BIS MANIPULATION! 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 STRONG GAIN OF 1800 OZ ON DAY 17 //NEW STANDING FOR MAY:  5.577 TONNES 

3) ZERO LONG LIQUIDATION,  /// ;4) STRONG COMEX OI LOSS AND 5) GOOD ISSUANCE OF EXCHANGE FOR PHYSICAL 6) HUGE SPREADER LIQUIDATION AND ….ALL OF THIS HAPPENED WITH OUR GAIN IN GOLD PRICE TRADING MONDAY//$8.25!!.

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 : 72,162, CONTRACTS OR 7,216,200 oz OR 224.45 TONNES (17 TRADING DAY(S) AND THUS AVERAGING: 4244 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 17 TRADING DAY(S) IN  TONNES: 224.45 TONNES

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

THUS EFP TRANSFERS REPRESENTS 224.45/3550 x 100% TONNES =6.30% 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:        224.45 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 STRONG SIZED 1376 CONTRACTS FROM 179,454 UP TO 180,830 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 572 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 572: ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE:  572 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 1376 CONTRACTSAND ADD TO THE 572 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A STRONG SIZED GAIN OF  1948 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 9.740 MILLION  OZ, OCCURRED WITH OUR $0.16 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)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 1.202 PTS OR 0.34%   //Hang Sang CLOSED UP 255.15 PTS OR 0.88%      /The Nikkei closed UP 88.21 pts or 0.31%  //Australia’s all ordinaires CLOSED DOWN .24%

/Chinese yuan (ONSHORE) closed UP AT 6.3902 /Oil UP TO 65.82 dollars per barrel for WTI and 68.42 for Brent. Stocks in Europe OPENED ALL RED   //  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.3902. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3839   : /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// vs EUROPE

 

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 FELL BY A GIGANTIC SIZED 20,718 CONTRACTS TO 510,164 MOVING FURTHER FROM  THE RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS COMEX DECREASE OCCURRED DESPITE OUR STRONG GAIN OF $12.25 IN GOLD PRICING TUESDAY’S COMEX TRADINGWE ALSO HAD A GOOD EFP ISSUANCE (4867 CONTRACTS). …AS THEY WERE PAID HANDSOMELY  NOT TO TAKE DELIVERY AT THE COMEX AND SETTLE FOR CASH. ALMOST THE ENTIRE LOSS WAS DUE TO COMMENCEMENT OF SPREADER LIQUIDATION.  

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 A GOOD SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 4867 EFP CONTRACTS WERE ISSUED:  ;: , JUNE:  4867 & JULY 0 & AUGUST: 0 AND THEN DECEMBER:  0 CONTRACTS & ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 4867  CONTRACTS .WITH GOLD STILL IN BACKWARDATION

 

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 LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A HUGE SIZED 15,851  TOTAL CONTRACTS IN THAT 4867 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A HUGE SIZED COMEX OI OF 20,718 CONTRACTS.WE HAVE A STRONG AMOUNT OF GOLD TONNAGE STANDING FOR MAY   (5.577) 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 $12.25)., AND  WERE  UNSUCCESSFUL IN FLEECING ANY LONGS AS DESPITE WE HAD A GOOD SIZED LOSS ON OUR TWO EXCHANGES OF 15,851 CONTRACTS, ALL OF THE LOSS WAS DUE TO SPREADER LIQUIDATION.  THE TOTAL LOSS ON THE TWO EXCHANGES REGISTERED 49.30 TONNES,ACCOMPANYING OUR STRONG GOLD TONNAGE STANDING FOR MAY (5.577 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”.

THE BIS REMOVED XXX CONTRACTS FROM COMEX TRADES. THESE WERE REMOVED AFTER TRADING ENDED LAST NIGHT. 

 

NET LOSS ON THE TWO EXCHANGES :: 15,851 CONTRACTS OR  1,585,100 OZ OR  49.30  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:  510,164 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 51.01 MILLION OZ/32,150 OZ PER TONNE =  1586 TONNES

 

THE COMEX OPEN INTEREST REPRESENTS 1586/2200 OR 72.11% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 
 

Trading Volumes on the COMEX GOLD TODAY:331,271 contracts// volume /fair ////volumes used in raid today   //

CONFIRMED COMEX VOL. FOR YESTERDAY:  509,313 contracts// –huge 

// includes spreader liquidation//most of our traders have left for London

 

MAY 26 /2021

 
INITIAL STANDINGS FOR MAY COMEX GOLD
 
 
 
 
 
 
 
 
 
 
 
 
 
Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
 
 
2747.98 OZ
Manfra
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits to the Dealer Inventory in oz  
Deposits to the Customer Inventory, in oz
497.380 OZ
 
Delaware
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No of oz served (contracts) today
45  notice(s)
 
4500 OZ
(0.1399 TONNES
No of oz to be served (notices)
0 contracts
(000 oz)
 
0.0000 TONNES
 
 
Total monthly oz gold served (contracts) so far this month
1793 notices
179,300 OZ
5.577 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 1 deposit into the customer account
i) Into Delaware
 
 
TOTAL CUSTOMER DEPOSITS: 497.380  oz
 
 
 
 
 
 
We had 1 withdrawals….
i) Out of Manfra: 2747.98 oz
 
 
 
 
 
 
 
 
 
total withdrawals 2747.98 oz
a net: .0715 tonnes leaves the comex
 
 
 
 
 
 
 
 

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

ADJUSTMENTS  1//customer to dealer

JPMorgan; 886,147.317 oz  (a monstrous 27.56 tonnes//preparing for first day notice deliveries)

 
 
 
 
 
 
 
 

The front month of MAY registered a total of 45 CONTRACTS for a GAIN of 7 contracts. We had 11 notices filed on MONDAY so we GAINED  18 contracts or an additional  1800 oz will stand for delivery in this non active delivery month of May as they refused to morph into London based forwards and as such negated a fiat bonus. 

 

 
 
 
JUNE LOST A HUMONGOUS 72,781 CONTRACTS DOWN TO  79,409.  .(AND THIS IS THE FRONT MONTH THAT WE WILL PAY CLOSE ATTENTION TO!)  FOR COMPARISON ON MAY 27/2020:  95,722 OI WITH A DROP OF 72,244 CONTRACTS. MOST OF THE SPREADERS HAVE NOW LEFT!!
 
WE HAVE 2 MORE READING DAYS THIS MONTH/2021 COMPARED TO 2 MORE DAYS LAST YR/2020.
INITIALLY ON JUNE 1/2020: 146.60 TONNES OF GOLD STOOD FOR DELIVERY.
 
JULY GAINED 377 CONTRACTS TO STAND AT 2059.
 
AUGUST GAINED A HUGE 48,928 CONTRACTS UP TO 351,841

We had 45 notice(s) filed today for 4500  oz

FOR THE MAY 2021 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and  45 notices were issued from their client or customer account. The total of all issuance by all participants equates to 45  contract(s) of which 0  notices were stopped (received) by j.P. Morgan dealer and 1 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 (1793) x 100 oz , to which we add the difference between the open interest for the front month of  (MAY:  45 CONTRACTS ) minus the number of notices served upon today 45 x 100 oz per contract equals 179,300 OZ OR 5.577 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 (1793) x 100 oz+  45)  OI for the front month minus the number of notices served upon today (45} x 100 oz} which equals 179,300 oz standing OR 5.577 TONNES in this  active delivery month of MAY.

We GAINED 1800 oz standing for delivery at the comex.  

 

 

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

NEW PLEDGED GOLD:

447,898.216, oz NOW PLEDGED  march 5/2021/HSBC  13.93 TONNES

202,692.098 PLEDGED  MANFRA 6.30 TONNES

288,378.262, oz  JPM  8.35 TONNES

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

80,189,799, oz Pledged August 21/regular account 2.49 tonnes JPMORGAN

6,308.08 oz International Delaware:  .196 tonnes

192.906 oz Malca

total pledged gold:  2,185,130.107 oz                                     67.97 tonnes

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 503.01 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 5.577 tonnes

CALCULATION OF REGISTERED THAT CAN BE SETTLED UPON:

total registered or dealer  18,356,991.162 oz or 570.97 tonnes
 
 
total weight of pledged:  2,185,130.107 oz or 67.97 tonnes
 
thus:
 
registered gold that can be used to settle upon: 16,171,861.0 (503,01 tonnes) 
 
 
 
 
true registered gold  (total registered – pledged tonnes  16,171,861.0 (503.01 tonnes)
 
total eligible gold: 16,214,871.966 oz   (504.35 tonnes)
 
 
total registered, pledged  and eligible (customer) gold 34,571,863.128 oz or 1,075.33 tonnes (INCLUDES 4 GC GOLD)
 
 

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  948.99 tonnes

end

I have compiled  data with respect to registered (or dealer) gold taken on first day notice for each of the past 24 months

The data begins on first day notice for the May month taken on the last day of July 2018. and it continues to present day.

I then took, how many deliveries were recorded by the CME for each and every month.  I also included for reference the price of gold on first day notice.

The first graph is a logarithmic  graph and the second graph, linear.

You can see the huge explosion of registered gold at the comex along with deliveries.

 
 
THE DATA AND GRAPHS:
 
 
 
 
 
 
 
END

 

 
 
MAY26/2021
 
 

 

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
10,789.45 oz
 
 
 
Delaware
Manfra
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits to the Dealer Inventory
nil oz
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits to the Customer Inventory
nil oz
 
cnt
 
nothing came in today
 
 
 
 
 
 
 
whatever enters the comex faults
leaves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No of oz served today (contracts)
19
 
CONTRACT(S)
(95,000 OZ)
 
No of oz to be served (notices)
4 contracts
 (20,000 oz)
Total monthly oz silver served (contracts)  7264 contracts

 

36,320,000 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 187.007 million oz of  total silver inventory or 52.85% of all official comex silver. (187.007 million/353.773 million

total customer deposits today nil   oz

we had 2 withdrawals

i) out of Delaware: 970.45

 

ii)  Out of Manfra: 9,819.00  

 

 
 
 
 

total withdrawals  10,789.450   oz

 
 

adjustments//1

 CUSTOMER to dealer

1.Loomis: 68,248.100 oz

 

 
 
 
 

Total dealer(registered) silver: 112.799 million oz

total registered and eligible silver:  353.773 million oz

a net .010 million oz LEAVES the comex silver vaults.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx19

 
 
 
 

May fell in contracts, losing 97 contracts to stand at  23 contracts.  We had 61 notices filed on TUESDAY so we lost  36  contracts or AN ADDITIONAL 180,000 oz of silver will not stand delivery in this very active delivery month of May They will try their luck on the other  side, as there is no appreciable silver over here.

 

 

June lost 21 contracts down to 2157.

July GAINED 850 contracts UP to 143,687 contracts

 
No of notices filed today:  19 CONTRACTS for 95,000 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  7264 x 5,000 oz = 36,320,000 oz to which we add the difference between the open interest for the front month of MAY (23) and the number of notices served upon today 19 x (5000 oz) equals the number of ounces standing.

Thus the MAY standings for silver for the MAY/2021 contract month: 7264 (notices served so far) x 5000 oz + OI for front month of MAY (23)  – number of notices served upon today (19) x 5000 oz of silver standing for the Jan contract month .equals 36,340,000 oz. ..VERY STRONG FOR AN ACTIVE MAY MONTH. 

 

We lost 180,000 oz of silver standing for delivery.  No queue jumping this month as the bankers know that there is no silver over here!

 

 

TODAY’S ESTIMATED SILVER VOLUME 64,901 CONTRACTS // volume fair// 

 

FOR YESTERDAY 74,367  ,CONFIRMED VOLUME/ fair//

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

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

end

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO +0.25% (MAY 26/2021)

SILVER FUND POSITIVE TO NAV

No of unit of PSLV: 402,810,481

No of oz of physical silver held; MAY 24/2021  144,515.694 OZ

No. of oz of physical silver held:  Sept 20/20: 85,907.361

No of oz pf physical silver held: Dec 21/2019:  65,073.570 oz

During the past 8 months Sprott has added: 58,608.30 oz 

So far this year: 53.8 million oz

2. Sprott gold fund (PHYS): premium to NAV RISES TO –0.40% nav   (MAY 26/2021 )

 

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

 

NAV $20.25 TRADING $20.06//NEGATIVE 0.93

END

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

MAY 26/WITH GOLD UP $4.45 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.04 TONNES FROM THE GLD//INVENTORY RESTS AT 1044.08 TONNES

MAY 25/WITH GOLD UP $13.25 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A DEPOSIT OF 2.30 TONNES INTO THE GLD///INVENTORY REST AT 1046.12 TONNES.

MAY 24/WITH GOLD UP $8.25 TODAY: NO CHANGES IN GOLD INVENTORY A THE GLD//INVENTORY RESTS AT 1042.92 TONNES

MAY 21/WITH GOLD DOWN $5.20 TODAY: TWO HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 5.82 TONNES OF GOLD INTO THE GLD AT 3 PM AND ANOTHER 5.83 TONNES ADDED AT 5.20 PM/INVENTORY RESTS AT 1042.92. TONNES

MAY 20/WITH GOLD UP 20 CENTS TODAY/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL OF 4.66 TONNES FROM THE GLD//INVENTORY RESTS AT 1031.27 TONNES

MAY 19/WITH GOLD UP $13.35 TODAY: NO CHANGES IN GOLD IVENTORY AT THE GLD//INVENTORY RESTS AT 1035.93 TONNES

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 $14.41 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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at:

 

MAY 26 / GLD INVENTORY 1044.08 tonnes

LAST;  1064 TRADING DAYS:   +119.21 TONNES HAVE BEEN ADDED THE GLD

LAST 994 TRADING DAYS// +  293.73 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 26/WITH SILVER DOWN 15 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 576.673 MILLION OZ/

MAY 25/WITH SILVER UP 16 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: A PAPER DEPOSIT OF 1.855 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 576.673 MILLION OZ/

MAY 24/WITH SILVER UP 25 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.855 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 574.818 MILLION OZ//

MAY 21.WITH SILVER DOWN 51 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.299 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 572.963 MILLION OZ/

MAY 20/WITH SILVER UP 4 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 571.664 MILLION OZ//

MAY 19/WITH SILVER DOWN 32 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 571.664 MILLION OZ/

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 THE 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 WITHDRAWAL 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.

XXXXXXXXXXXXXX

SLV INVENTORY RESTS TONIGHT AT

MAY 26/2021
576.673 MILLION OZ

 
 

PHYSICAL GOLD/SILVER STORIES
i)Peter Schiff

 
 

OR

EGON VON GREYERZ//MATHEW PEIPENBURG

 

OR

 
PAM AND RUSS MARTENS

Wall Street On Parade

-END-

Lawrie Williams

LAWRIE WILLIAMS: Gold: Stair-stepping into the $1,900s

We have to be a little self-congratulatory in that the gold price has been performing as we had predicted, although has been moving up perhaps faster than we had foreseen. Yesterday gold breached $1,900 for the first time since it fell back below that level in early January on its way down to below $1,700 in early March, since when it has been stair-stepping its way back up to its current level of around $1,906 as I write. The big question now is whether it can maintain a plus $1,900 level, consolidate and then move further onwards and upwards, or fall back again into the $1,800s?

So far downward moves have been quickly reversed and although the yellow metal may yet be vulnerable to a price take-back, it currently looks set for a move up well into the $1,900s. Whether it can then continue its rapid advance, though, remains to be seen. $2,000 plus may be a step too far for now, but it certainly makes the predictions of gold regaining its 2020 high point of around $2,040, which it hit last August, during the current calendar year much more likely than the weaker prices had suggested in the past few months.

The latest boost to the gold price seems to have developed from the publication of what had been seen as disappointing Consumer Confidence data, meaning that the expectations of a rapid end to the Covid pandemic-related downturn may be proceeding slower than anticipated – at least in terms of public perception. A report from the U.S. Conference Board said that its Consumer Confidence Index fell to a reading of 117.2, down from April’s downwardly-revised reading of 117.5 (as opposed to 121.7 a month earlier). Economists had been expecting a reading around 119, so there is still confidence in continuing economic growth going forward, but this confidence level did not meet the expectations of the better predicted figure.

New home prices fell also, which won’t have helped sentiment, while expectations on inflation rose from 6.2% in April to 6.5% in May. None of these figures are disastrous, but taken together they have impacted negatively on overall consumer confidence and job growth expectations and look to have been positive for gold, and belatedly for silver too.

The heavily disseminated news on the huge initial falls in the bitcoin and other cryptocurrency prices, coupled with perceived weakness in equity markets, have increased worries that the gravy train may be coming to a halt. Bitcoin has recovered a little, but we suspect this gain may be temporary. Meanwhile the prospects for seemingly potentially out-of-control inflation, with government support for Covid- related unemployment due to fall away in around three months time, will have contributed to consumer nervousness.

What should be a little worrying for the gold investor, though, has been the performance of gold and silver mining stocks amidst yesterday’s big metal price rises. The main gold stock indexes – the HUI and the XAU – both fell – despite the gold and silver price rises. Often the gold stocks have tended to pre-empt metal price movements and this could well signify a metal price take-down over the next few days, so we wouldn’t be too surprised to see gold slipping back below $1,900 and silver below $28. But, given the likelihood of continuing supportive data, we suspect that if this were to happen it would be a shortlived correction and gold and silver would soon resume their upwards price patterns.

The stock price falls, though, make the better gold mining stocks in particular seemingly good buys. At a $1,900 gold price they will be making excellent profits and, as we have noted before, the bigger gold miners all pay dividends, at levels mostly well in excess of those that are available in the fixed interest markets. With the prospect of higher earnings driving up the stock prices, and leading to perhaps further dividend increases, as the miners release their Q2 earnings after the mid-year, these dividends provide some ever-welcome icing on the cake for the investor. If one sticks to the Tier 1 gold miners, their diversity of production sources protects against serious stock price downturns, while their size means the stock price gain potential is rather less than those of some of the smaller operators and better explorers. They tend to be much safer investments, but perhaps don’t appeal so much to the gamblers of this world.

26 May 2021 |

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ii) Important gold commentaries courtesy of GATA/Chris Powell

Ted Butler…a must read….as he explains how the shorts in silver are trapped

Ted Butler: Short subject

 


adminSection: Daily Dispatches

By Ted Butler

Tuesday, May 25, 2021

Again and again, I have stressed that silver has been suppressed in price for decades by the concentrated short position of the four and eight largest traders in Comex futures. Many have come to accept this, but my findings do not have universal acceptance. 

That’s too bad because it’s all that matters in determining price. It would be better if we were all on the same page. 

The big shorts have always been able to buy back the short position that they added regularly. Thanks to a steady supply of traders who readily sold out of long positions on rigged price selloffs, the big shorts were able to buy back enough of their short positions to make it profitable.

But starting a year ago, the silver price-rigging scheme run by the big Comex shorts stopped working as it had for the prior three and a half decades. The big shorts were unable to contain prices, as silver (and gold) ran to multi-year highs generating billions of dollars in losses for the big shorts. …

 


 


 


… For the remainder of the commentary: 
https://silverseek.com/article/short-subject

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Short Subject

Again and again, I have stressed that silver has been suppressed in price for decades by the concentrated short position of the 4 and 8 largest traders in COMEX futures. Many have come to accept this, but my findings do not have universal acceptance. That’s too bad because it’s all that matters in determining price. It would be better if we were all on the same page. The big shorts have always been able to buy back the short position that they added regularly. Thanks to a steady supply of traders who readily sold out of long positions on rigged price selloffs, the big shorts were able to buy back enough of their short positions to make it profitable.

But starting a year ago, the silver price-rigging scheme run by the big COMEX shorts stopped working as it had for the prior three and a half decades. The big shorts were unable to contain prices, as silver (and gold) ran to multi-year highs generating billions of dollars in losses for the big shorts. Moreover, the former biggest short from 2008 to 2020, JPMorgan, had eliminated its once dominant short position in both COMEX silver and gold. This left the other big shorts to twist in the wind. The important thing now is what happens when the 4 big COMEX silver shorts move to buy back their massive concentrated short position on higher prices. It will be a moment like no other in the history of the silver market. Over the past 35 years, the 4 big shorts have only bought back short positions on lower, not higher prices. It will be a change so radical it almost defies description. Up until now, the 4 big COMEX shorts have always been the short sellers of the last resort on every silver price rally. No one appointed them to this price rigging role, they just assumed it.

If the 4 big shorts merely stop adding to short positions on silver price rallies that will be enough to cause the price to explode. If they try to buy back short positions on higher prices that will inflame the rally almost beyond description. Who in the world will sell to satisfy the buying that will inevitably occur on higher prices – including potential buying from the big shorts? Once prices start to move up forcefully, new buying will kick-in strongly. There have to be sellers for every buyer and if you take the short sellers suddenly out of the equation – whom do you replace them with? An article on Bloomberg commented on the developing shortages in just about everything. But of all the shortages, the only one in which there is aggressive investment demand is silver. So, who in their right mind would be massively short an item in short supply with massive potential investment demand waiting in the wings? Bottom line – as long as there exists a concentrated short position in COMEX silver beyond what exists in any other commodity, silver is a buy.

More and more, the 4 and 8 big COMEX shorts appear stuck – unable to simply quit the concentrated shorting game. This is the only issue that matters in silver and gold and we all have a front-row seat to the spectacle. Adding to their already excessive concentrated short positions only extends the manipulation and allows the big shorts to pretend they are in control, even though the losses can’t be pretended away. Moving to buy back would cause their losses to escalate sharply. Some might argue that this has been the case for decades and still the manipulation goes on. There’s a lot of truth in that, save for one new factor – the growing evidence of a physical shortage in silver. The combination of withdrawals in COMEX silver inventories, increases in ETF, particularly SLV holdings and the apparent lack of any significant quantities of leasable silver threaten to bring the ongoing scam of the 8 big COMEX shorts to an end.  

Ted Butler

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SILVER TRADING//CHRIS MARCUS//SD BULLION

Here’s Why Silver Premiums Are Still Rising: James Anderson of SD Bullion

Here’s why silver premiums are still rising: James Anderson of SD Bullion joins me to explain.

To find out more, click to watch the video now!

 

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COMMODITY WATCH/

COFFEE

Brazil’s coffee output plunges and that means we should expect much higher prices for the bean.

(zerohedge)

Brazil’s Coffee Output Plunge Could Mean Starbucks Prices Are About To Rise

 
WEDNESDAY, MAY 26, 2021 – 05:45 AM

Brazil’s federal government is projecting total coffee output in the world’s top-producing country will slump for the 2021 growing season, according to Reuters

Companhia Nacional de Abastecimento (Conab), the government’s food supply and statistics agency, said total coffee output would plunge 22.6% in 2021, to an expected 48.8 million 60-kilo bag. 

Conab forecasts an output of 33.36 million bags of Arabica this season and 15.44 million of Robusta.

There are two main species of coffee: Arabica and Robusta. Starbucks purchases only Arabica beans cultivated at high altitudes. About 70% of the world’s Arabica beans are grown in Brazil. Starbucks, and many other coffee chains, could soon feel the burn as wholesale price increases will likely be passed onto consumers. 

We’ve already mentioned coffee shortages are brewing as global supplies are shifting into a deficit as drought in Brazil slashes output. This has resulted in surging wholesale prices and US supplies slumping to a six-year low. Savor today’s cheap cup of joe because retail prices will rise. 

More on the drought and how crop and food prices are skyrocketing to multi-year highs, and the culprit is likely due to La Nina, a weather pattern characterized by the cooling of the equatorial Pacific that triggers atmospheric shifts and causes droughts in some regions of the world and wetter conditions in others. 

Brazil has been devastated by drought during its traditional rainy season. 

ICE Coffee futures for Arabica coffee have soared to multi-year highs on output declines in South America. 

Meanwhile, La Nina has disrupted weather patterns worldwide, leading to terrible droughts in South and North America. Consequently, food prices have soared to the highest levels in a decade

As much as the Federal Reserve expects “transitory” inflation – La Nina altering weather patterns could exacerbate food inflation and create years of elevated crop and food prices.

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Cryptocurrencies

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

i) Chinese yuan vs USA dollar/CLOSED UP at 6.3902 /

//OFFSHORE YUAN:  6.3839   /shanghai bourse CLOSED UP 12.02 PTS OR 0.34% 

HANG SANG CLOSED UP 255.15 PTS OR 0.88%  

2. Nikkei closed UP 88.21 PTS OR 0.31%

3. Europe stocks  ALL RED

 

USA dollar index  UP TO 89.80/Euro FALLS TO 1.2222

3b Japan 10 year bond yield: FALLS TO. +.075/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.92/ 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:: 65.82 and Brent: 68.42

3f Gold UP/JAPANESE Yen DOWN CHINESE YUAN:   ON -SHORE CLOSED DOWN 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 -.200%/Italian 10 Yr bond yield DOWN to 0.93% /SPAIN 10 YR BOND YIELD DOWN TO 0.46%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.13: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 0.86

3k Gold at $1905.10 silver at: 28.07   7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble  DOWN 12/100 in roubles/dollar) 73.61

3m oil into the 65 dollar handle for WTI and 68 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 108.92 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the FRANC. It is not working: USA/SF this morning .8964 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0960 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.200%

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 1.567% early this morning. Thirty year rate at 2.251%

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

6.  TURKISH LIRA:  DOWN  TO 8.44.. DEADLY

Futures Jump As Coordinated Central Bankers Push Back On Inflation Fears

 
WEDNESDAY, MAY 26, 2021 – 07:52 AM

US equity futures rose on Wednesday, rebounding from a modest dip  the day before as more central-bank officials joined the chorus predicting that inflationary pressures are transitory, while a recent dip in bond yields supported Nasdaq futures climb for a third straight session. At 7:15 a.m. ET, Dow e-minis were up 82 points, or 0.24%, S&P 500 e-minis were up 14 points, or 0.33%, and Nasdaq 100 e-minis were up 51.25 points, or 0.38%. Treasuries and the dollar were roughly flat, recovering from an earlier drop. BItcoin soared back over $40,000, rising as much as 8.6%, before paring gains.

Among the notable premarket moves were retail trader favorites GameStop and AMC which surged in U.S. premarket trading, adding to Tuesday’s rally as investors touted the stocks on social media platforms including Twitter, Stocktwits and trader WallStreetBets. The gains will add to losses for short-sellers of the stocks who have already seen $6.8 billion in mark-to-market losses this year, according to S3 Partners. GameStop climbed 4.3% to $218.40, while AMC added 3.8% to $17.04 at 7:10am in New York.

Here are some other notable premarket movers:

  • Larimar Therapeutics slumps in premarket trading after the U.S. Food and Drug Administration placed a clinical hold on its CTI-1601 drug.
  • Nabriva Therapeutics jumps after the company, alongside Sinovant Sciences, said Tuesday that lefamulin was shown to be non-inferior to moxifloxacin.
  • Urban Outfitters jumped 9.3% after reporting 1Q results after market Tuesday that beat profit and sales estimates. Analysts see the apparel maker as a retail recovery play, with Jefferies saying the strong results will “bring bulls back,” while JPMorgan upgraded the retailer to neutral from underweight.
  • Oil heavyweight Exxon Mobil Corp gained 0.7% ahead of its first major boardroom contest where climate change is a central issue.
  • Crypto- exposed stocks like Riot Blockchain, Marathon Patent Group and Coinbase Global rose between 2% and 4.6% in premarket trading as bitcoin climbed back above $40,000 for the first time this week with other cryptocurrencies recovering some of the ground lost this month.
  • Nordstrom dropped 6% in thin trading after reporting a bigger-than-expected quarterly loss, hurt by price markdowns.

Futures rose after a downbeat Tuesday, where the S&P closed down 8 points, despite Fed vice chair Richard Clarida downplaying the effects of higher price pressures, voicing faith in the central bank’s ability to engineer a “soft landing” if prices continue to escalate beyond what is expected. All the same, Clarida’s comments reflect a shifting tone at the Fed. A month ago, Fed Chair Jerome Powell said it was “not yet” time to even contemplate discussion of policy tapering, but more recently policymakers have acknowledged they are closer to debating when to pull back some of their crisis support for the U.S. economy. This is why, as we noted overnight, the narrative on Wall Street is starting to shift, portraying the taper as a positive or bullish catalyst.

“The messages were not necessarily new but they reinforced the prevailing consensus still that the bulk of the surprise in April (CPI) can be traced to transitory elements,” said Stefan Hofer, chief investment strategist at LGT in Hong Kong. “The proof is in the pudding so to speak over the coming months, how much of the CPI increase is structural and how much of it is transitory. And the jury is I would say still out on that, but the Fed is sticking to its guns and markets seem to be by and large still comfortable with that.”

Fears of soaring inflation have weighed on Wall Street’s main indexes this month, with most analysts expecting a jump in borrowing costs in the short term as the economy reopens, even though a recent Chinese crackdown on commodity prices coupled with a plunge in China’s credit impulse suggests a deflationary wave is coming. Furthermore, central bankers around the globe are playing down the risk of rising prices. The question, as Bloomberg notes, is how long the Fed and other central banks can keep stimulative monetary policy in place if economic data continue to show price pressures.

“What we keep hearing from the Fed is that they’re going to take a very different approach to inflation this time around,” Kristina Hooper, Invesco chief global market strategist, said on Bloomberg TV. “The Fed is likely to let the punchbowl stay out a lot longer. The big fear about inflation is that the Fed would act.”

Europe’s Stoxx 600 Index erased earlier gains of as much as 0.4% as the rally lost steam after the region’s stocks approached record levels. Banks pulled the index lower with the banks subgroup index down 1.5%, after a report on Sweden’s lenders facing new tax. The travel & leisure subgroup index trim gains to 0.9%. Here are some of the biggest European movers today:

  • Marks & Spencer shares rose as much as 6.3% to highest intraday since March 2020. The U.K. retailer’s FY results showed continued improvement in its balance sheet as well as “constructive” comments for the year ahead, according to Morgan Stanley.
  • Softcat shares jumped as much as 6%, the most since March 24, after the IT services firm says it sees its full-year earnings ahead of expectations.
  • Norwegian Air shares rose as much as 31% as a restructuring proposal is expected to take effect after close of trading on the Oslo Stock Exchange on May 26.
  • Vectura Group shares gained as much as 34% to a price above the level of an agreed offer from Carlyle Group that values the U.K. drug maker at GBP958m. Stifel said the offer represents a fair premium to their price target.
  • Solutions 30 shares jumped as much as 26%, rebounding from a slump in the previous two sessions, after CEO Gianbeppi Fortis sought to reassure investors worried about pressures from short sellers and its auditor’s decision not to certify the company’s 2020 accounts.
  • Spire Healthcare shares rose as much as 29% after agreeing to a takeover by Ramsay Health Care. RBC said “it may not have taken much for Spire’s share price to reach this” without a bid, “given the pent-up demand in the market”
  • De La Rue shares fell as much as 8.3% before trimming the decline after the banknote and authentication document-maker’s full-year results. Company has been speculated upon as a potential producer of Covid-19 “vaccine passports.”

Similar to Clarida, Bank of France Governor Francois Villeroy de Galhau talked down stimulus adjustments anytime soon, while European Central Bank Executive Board member Fabio Panetta said he sees no signs of sustained inflation that would allow for a reduction in bond purchases.

In Asia, stocks rose for a fifth day as the soothing Fed comments helped boost sentiment with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 0.28% near more than two-week highs, while Tokyo’s Nikkei added 0.27%. The MSCI Asia Pacific Index climbed above its 50-day moving average on Wednesday, a sign that the region’s stocks have steadily recovered from a slump in early May.

“The weaker U.S. dollar has helped non-USD assets,” said Linus Yip, a strategist at First Shanghai Securities in Hong Kong. However, the sustainability of market gains remains uncertain as “we haven’t seen a significant change in Asia economies. And the pandemic hasn’t been controlled in India and Taiwan,” he said. The Bloomberg Dollar Spot Index fell as much as 0.2% in its third day of declines before paring some losses. The gauge is hovering near its year-to-date low. A weaker greenback tends to be beneficial for Asian shares if it signals higher risk appetite and is seen as a positive for growth in the region’s emerging economies, many of which rely on imports priced in dollars. Stocks in India were on track for a record close. Chinese equities ended little changed after the CSI 300 Index jumped 3.2% on Tuesday, the most since July. Hong Kong stocks rose to the highest level in almost a month. Communication services and industrial shares led the gains in Asia, while materials stocks posted declines. China’s internet giant Tencent and Taiwan’s TSMC contributed the most to the regional benchmark’s advance. Markets in Singapore, Indonesia, Thailand and Malaysia were shut for holidays.

Japanese equities overcame early turbulence to post their fifth-straight day of gains, as investors were encouraged by signs of calm in external financial markets. Electronics makers were the biggest boost to the Topix, which has eked out a gain of 1.3% over the past five sessions, helped also by optimism over a ramp-up of Japan’s coronavirus vaccination program. Fast Retailing and Recruit contributed most to gains in the Nikkei 225. A measure of volatility on the blue-chip gauge fell to its lowest since May 10. Stocks fluctuated in early Tokyo trading after U.S. shares fell overnight. “U.S. long-term yields have retreated quite a bit, and that is probably quite a big factor leading to the calm in markets,” along with smaller moves in Bitcoin, said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank. “We have U.S. jobs data coming up next week, but for now, we’re in an environment that’s extremely good for equity markets, with U.S. economic conditions being good while inflation is contained.”

Analysts at Jefferies said Asian regional equity markets could benefit, especially given a weak dollar could help boost global trade and emerging markets by lowering global prices of goods and services. “A weak dollar should underwrite emerging market performance despite very mixed vaccine roll-outs to date,” they said in a note. “Until the U.S. government declares the pandemic is over and job growth is running at one million plus per month, tapering is unlikely to happen…In the meantime, real rates will be heavily negative. Moreover, based on the dollar’s Real Effective Exchange Rate, the greenback cannot be described as being ‘cheap’.”

In rates, Treasuries little changed across the curve after paring losses amid bund rally. US Treasuries fell to multi-week lows on Tuesday on easing inflation concerns and a strong auction of 2-year notes. The yield on the benchmark 10-year Treasury note stood at 1.5638 after scaling a more than one-month high earlier in May. Higher yields pressured valuations for tech and other growth stocks, whose future cash flows are discounted at higher rates after the ECB’s Panetta said only sustained inflation could warrant slowing PEPP. European price action dominated the rates market, with German 10-year almost 4bp richer vs U.S. as markets pare taper expectations. Treasury auction cycle continues with 5-year note sale, following strong demand for Tuesday’s 2-year.

In FX, the Bloomberg Dollar Spot Index fell a third day and the greenback traded mixed versus its Group-of-10 peers, with Antipodean currencies leading gains; The euro fluctuated at around $1.2250; the euro erased a modest gain at the beginning of the European session, and the region’s government bonds advanced, as ECB Executive Board member Fabio Panetta said he sees no signs of sustained inflation pressures that would allow for a reduction in bond purchases yet. On the other end of the spectrum, New Zealand’s dollar led G-10 gains to touch a three-month high and swap rates surged after RBNZ published official cash rate forecasts for the first time in more than a year that show the rate beginning to rise in mid-2022.

The onshore yuan rose for a fourth day to its highest in three years after the PBOC set the yuan’s daily midpoint fixing at its strongest level since June 2018, signaling its comfort with a recent rally after the currency tested a key level against the dollar a day earlier, prompting state banks to step into curb the rally.

In commodities, oil was little changed as traders weighed expectations of improving demand in the U.S. against the possibility of new supply from Iran. Global benchmark Brent crude was up 3 cents at $68.68 and U.S. crude fell 7 cents to $66 per barrel. Bitcoin traded around $40,000, earlier crossing above the key barrier, despite China’s northern region of Inner Mongolia escalating a campaign against cryptocurrency mining on Tuesday, days after Beijing vowed to crack down on bitcoin mining and trading. Gold extended its advance after Federal Reserve official Clarida talked down prospects for inflation, piling pressure on Treasury yields.

It’s a fairly quiet day ahead now on the calendar, with the data highlights including French consumer confidence for May, and central bank speakers including Fed Vice Chair Quarles and the ECB’s Villeroy. Earnings releases include Nvidia, and the CEOs of a number of Wall Street firms will be testifying before the Senate Banking Committee.

Market Snapshot

  • S&P 500 futures up 0.3% to 4,197.50
  • STOXX Europe 600 rose 0.23% to 446.25
  • MXAP up 0.3% to 207.32
  • MXAPJ up 0.4% to 695.72
  • Nikkei up 0.3% to 28,642.19
  • Topix little changed at 1,920.67
  • Hang Seng Index up 0.9% to 29,166.01
  • Shanghai Composite up 0.3% to 3,593.36
  • Sensex up 0.6% to 50,965.37
  • Australia S&P/ASX 200 down 0.3% to 7,092.53
  • Kospi little changed at 3,168.43
  • Brent Futures up 0.2% to $68.78/bbl
  • Gold spot up 0.5% to $1,907.81
  • U.S. Dollar Index little changed at 89.73
  • German 10Y yield fell 2.2 bps to -0.189%
  • Euro little changed at $1.2245

Top Overnight News from Bloomberg

  • U.S. three-month 10-year implied swaption volatility — a closely watched gauge of how much prices may move over the period — has been steadily declining, and hit the lowest levels since early March, as officials repeat the line that inflation will be transitory
  • Bitcoin rallied back above the $40,000 level as cryptocurrencies recover some of the ground lost in this month’s volatile rout. Bitcoin’s explosive moves are stoking the volatility of U.S. stock futures in haywire trading days, according to Singapore’s DBS Group Holdings Ltd
  • The U.K. government was forced to backtrack over its attempt to restrict travel to coronavirus hotspots in England where the so-called Indian variant is spreading. The U-turn came after ministers were accused of introducing “local lockdowns by the back door” with the new guidance against travel to eight areas in England, which was published without fanfare online late last week but didn’t reach the attention of local leaders for several days
  • China’s banking regulator has asked lenders to stop selling investment products linked to commodities futures to retail buyers, Reuters reports, citing three unidentified people
  • Europe’s labor market may recover more slowly from the pandemic than its economy, according to a study by Accenture. The region lost 3.5 million jobs in 2020 that will take until 2023 to be recreated, the consultancy said, citing a survey of 700 company executives. That’s as much as one year after the last European Union economy will have seen output returning to pre-crisis levels

A quick look at global markets courtesy of Newsquawk

Asia-Pac stocks were mostly positive in what was a modest improvement from the subdued performance on Wall Street where most major indices posted marginal losses following mixed data releases, although the Nasdaq 100 bucked the trend amid resilience in tech and as softer yields helped stem downside in duration sensitive stocks. ASX 200 (-0.3%) was kept afloat for most of the session amid notable strength in tech and outperformance in gold miners after the precious metal reclaimed the USD 1900/oz level. Furthermore, the top-weighted financials were also higher as shares in big-4 leader CBA briefly topped AUD 100 for the first time, although gains in the broader marker were limited amid snap lockdown concerns in Victoria state which reported 10 new locally transmitted cases and after a COVID-positive person was confirmed to have attended a match at the Melbourne Cricket Ground. Nikkei 225 (+0.9%) traded positively amid reports that Japan’s government is considering another cash handout program of up to JPY 100k for households in need, but with upside restricted amid expectations of state of emergency extensions and further calls for the cancellation of the Olympics, this time coming from an editorial by Asahi Shimbun press, which is an official partner of the Tokyo Olympics. Hang Seng (+0.6%) and Shanghai Comp. (+0.3%) held on to the spoils from the prior day’s outperformance where northbound flows into the Chinese mainland through the stock connect reached record levels. Focus was also on Xiaomi after it received the final US District Court ruling which removed its designation as a Communist Chinese Military Company and lifted all restrictions on the Co.’s shares, although this failed to boost its share price with participants awaiting its earnings results. Finally, 10yr JGBs were rangebound with upside restricted amid the mild positive risk tone and with the BoJ only in the market for treasury bills, while New Zealand 10yr yields gained around 8bps following the RBNZ rate hike projections.

Top Asian News

  • Two Million Evacuated as Cyclone Hits India Amid Virus Woes
  • Japan Ministry Says UBS No Longer Primary Dealer for JGBs
  • Nine-Day Wait for Covid Test Results Leaves Taiwan in Limbo
  • Triumphant Assad Eyes Return to Arab Fold as Syrians Vote

Major bourses in Europe kicked off the day with mild gains but have since drifted off best levels (Euro Stoxx 50 -0.2%) with the region now seeing a mild downside bias amid a light European morning in terms of data and news flow, and as month-end looms. US equity futures meanwhile hold onto modest gains, but the breadth of the price action remains narrow with no clear stand-out performers. Analysts at Barclays note that fatigue and inflation woes have seen investors trimming bullish bets over the last month. “Cyclical exposure has moderated, but Value has recovered its 2020 outflows, with buying of Financials, Energy and Materials outpacing Tech. Value is thus more consensus and prone to profit-taking but can still benefit from higher rates and momentum rebalancing, in our view.”, the bank says. Barclays also suggests that the correlations between the broader equity market vs cryptos and SPACs have been relatively lower, meaning little contagion in the bank’s view. “Overall, less complacency reduces correction risk, and investors have dry powder to keep buying on dips, which should support a further grind higher in equities.”, the analysts note. Back to Europe, cash bourses are trading either side of neutral while sectors have been tilting more towards a defensive bias as Personal Household Goods, Food & Beverages and Healthcare reside among the better performers. Travel & Leisure is the clear outperformer as sector heavyweight Flutter Entertainment (+2%) is underpinned by an upgrade at HSBC – note, Flutter accounts for over 1/5th of the sector. Banks and Basic resources meanwhile reside at the bottom of the pile amid the recent pullback in yields and as some base metal prices in Asia slumped. Tech also resides as laggards following its recent outperformance. In terms of individual movers, Marks & Spencer (+4.8%) is among the top gainers post-earnings as the group notes that its balance sheet has emerged stronger than expected and online sales doubled in the period. Meanwhile, Spire Healthcare (+24%) was bolstered as Ramsay Healthcare offered to purchase 100% of Spire for GBP 2.40/shr in a deal valued at around GBP 2bln. On the downside, Nordea (-0.6%) sees losses as its largest shareholder Sampo (-1.0%) offloaded 162mln shares to institutional investors.

Top European News

  • U.K. Could Block Some London Listings on Security Grounds
  • Ireland Needs Credible Fiscal Strategy, Watchdog Warns
  • Czech Central Bank Is Deciding Between June and August Rate Hike
  • Swedish Banks Face New Tax to Cover ‘Enormous’ Crisis Costs

In FX, the Kiwi was already taxiing in preparation for the RBNZ policy meeting, but took off in wake of the Bank signalling lift-off for the OCR at the end of Q3 next year and flagging the end of the LSAP remit by June 2022. Indeed, Nzd/Usd scaled the 0.7300 handle and Aud/Nzd cross retreated through 1.0650 even though the Aussie is holding gains vs the Greenback following firmer than forecast Q1 construction work completed that offset a dip in Westpac’s leading index for April. However, Aud/Usd ran into resistance just ahead of 0.7800 and will now be looking towards Q1 Capex and the breakdown for further impetus, while observing decent option expiry interest for the NY cut in the interim given 1.2 bn rolling off between 0.7750-40 and 1.1 bn from 0.7770-85.

  • USD/GBP/CHF/CAD/EUR/JPY – There may be an element of intraday or short term jobbing rather than strictly technical impulses behind the latest Buck bounce as the DXY managed to hold above 89.500 again and pare losses off a slightly higher low compared to Tuesday, but other factors have contributed, including the latest dovish interjection from the ECB. Indeed, GC member Panetta went further than his peers in a speech containing rationale for delaying any decision about unwinding the pace of QE in Q3 when he noted a non-negligible appreciation of the Euro exchange rate to knock the single currency back down below 1.2250. Predictably, the ensuing Dollar rebound that lifted the index to 89.794 at one stage, rippled across to the remaining basket constituents, with Cable off peaks circa 1.4172, Usd/Chf firmer around a 0.8950 axis post-more dovish remarks from SNB head Jordan, Usd/Cad towards the upper end of a 1.2043-82 range and Usd/Jpy in the high 108.00 area again as the Japanese Government downgrades its official view of the economy amidst further contagion from COVID-19.
  • SCANDI/EM/PM – Some payback for the Sek vs the Nok and Eur after an uptick in Sweden’s sa jobless rate and the Riksbank’s latest FSR revealing a brighter outlook, but risks to stability still deemed to be elevated. Conversely, the Nok may be deriving some underlying support from a mild bid in Brent and Q2 Norwegian oil investment forecasts showing increases in the current year and 2022, while the Cnh and Cny are going from strength to strength, partly on the back of a higher onshore fixing from the PBoC overnight (in fact the loftiest midpoint in almost 3 years) and the CSJ highlighting analyst predictions for more Yuan upside based on Usd weakness, China’s trade surplus and economic recovery. Elsewhere, the Try has regained a bit of composure after sliding to a fresh all time low near 8.4850 on Tuesday and the Zar continues to glow in the shadow of Gold that has topped Usd 1900/oz.
  • RBNZ maintained policy settings as expected with the OCR kept at 0.25% and both LSAP and Funding for Lending Programme were also left unchanged, although it provided rate forecasts which pointed to a 25bps hike in September 2022 and to 1.75% by June 2024. RBNZ stated that it will maintain stimulatory monetary settings until it is confident inflation and employment targets are achieved, while it added that domestic economic activity has returned to near pre-pandemic levels and that the medium-term outlook is similar to scenario presented in February, but they remain cautious due to ongoing virus-related restrictions to activity. In terms of forecasts, the RBNZ sees the OCR at 0.25% in September 2021, 0.31% in June 2022, 0.49% in September 2022 and 1.78% in June 2024, while Governor Orr stated at the press conference that he feels comfortable using the OCR projection as a guidance but noted that the projection will only occur if the economy pans out as expected and Deputy Governor Hawkesby also suggested the important message is that OCR is not forward guidance. (Newswires)

In commodities, WTI and Brent front month futures have been choppy within relatively narrow bands with the former on either side of USD 66/bbl (65.81-66.43 range) and the latter around USD 69/bbl (68.44-69.17 range). Crude markets have been somewhat uneventful throughout the European morning after a relatively mixed Private Inventory report (Crude -0.44mln vs exp. -1.1mln), and ahead of the DoEs where the headline is forecast to draw 1.05mln bbls. Elsewhere, eyes remain on Iranian nuclear talks with the Iranian president recently noting that a common understanding has been found on some key points, but the US must take the first step – several officials hope for this to be the final round of talks. On this, Russian Deputy PM Novak hit the wires ahead of the June 1st JMMC/OPEC+ meeting, stating that the group will have to keep Iranian output growth in mind. Iran is currently exempt from the OPEC+ quotas amid US sanctions. Elsewhere, spot gold and silver remain buoyed by the recent Dollar, and yield declines. Spot gold reclaimed USD 1,900/oz status overnight (vs low 1,897/oz) before encountering a barrier at USD 1,910/oz in early European hours. Spot silver meanwhile surpassed USD 28/oz. Over to base metals, LME copper trades on a firmer footing and eclipsed USD 10,000/t to the upside, underpinned by reports that unions at BHP’s Escondida mine rejected the labour offer, thus paving the way for strikes. The Escondida copper mine is currently the world’s largest copper mine by reserve. Overnight, steel rebar futures in Shanghai extended on losses, whilst Singapore and Dalian iron ore futures fell over 5% apiece after China’s NDRC held a meeting with key enterprises in the steel industry.

US Event Calendar

  • 7am: May MBA Mortgage Applications, prior 1.2%
  • 10am: Fed’s Quarles Discusses Insurance Regulation
  • 3pm: Fed’s Quarles Discusses the Economic Outlook

DB’s Jim Reid concludes the overnight wrap

It’s fair to say that we’re in a holding pattern for now. The inflationists have undoubtedly won the first round of the data war but central banks, and in particular the Fed, have won the early PR skirmishes. To expand on this you only have to see my CoTD yesterday (link here) to appreciate that US inflation surprises are almost off the charts and higher than ever before. Whether or not it’s transitory, economists have completely underestimated its strength so far. Markets though have for now preferred to be calmed by what has been a seemingly coordinated dovish response from the Fed. Their messaging has been excellent for calming markets. If inflation is transitory they have done a phenomenally good job. However here’s where round 2 will get interesting. If it isn’t transitory they have really boxed themselves in and they’ll need to make a disruptive big step change to the messaging. So an awful lot is at stake here.

This bigger theme played out on a very small scale yesterday as investors weighed up competing pressures to the economic outlook. On the one hand, weaker-than-expected economic data served to dampen sentiment following a recent run of very strong growth. But on the other, the reports raised the prospect that inflationary pressures were more likely to be subdued, helping to reduce a key concern of investors lately, whilst also raising the likelihood that monetary stimulus from the Fed would be maintained for longer. By the close of trade the negatives had marginally outweighed the positives, in turn sending the S&P 500 down to a small -0.21% loss, with the Dow Jones (-0.24%) and the NASDAQ (-0.03%) also experiencing modest declines.

Nearly 75% of all S&P 500 members saw their shares decline though in a broad selloff that was particularly hard on cyclical industries that have outperformed this year. Energy (-2.04%), Banks (-1.18%) and Material (-0.88%) stocks were among the worst performers as commodity prices and yields declined. European equities saw a similar dynamic with Basic resources (-1.73%) and Energy (-1.43%) shares the largest laggards as Technology (+1.29%) caught up to the US tech rally the day earlier after German markets came back from their Monday holiday. The STOXX 600 overall was basically unchanged (+0.03%) after registering its smallest daily move in nearly a month.

In terms of those releases, there were a number of data points that surprised to the downside out of the US. Firstly, the Conference Board’s consumer confidence index for May fell to 117.2 (vs. 118.8 expected), marking the first decline in the measure this calendar year. Furthermore, the previous month’s figure was revised down -4.2 points to 117.5, so a slightly less rosy picture of what went before, whilst the expectations gauge hit a 3-month low of 99.1. Separately, new home sales fell to an annualised rate of 863k (vs. 950k expected) amidst a big surge in prices, with the prior month similarly revised down -104k to 917k. And speaking of that price surge in housing, the Case-Shiller 20-city composite city home price index was up +13.3% year-on-year, the fastest annual increase since December 2013.

These data points were supplemented by comments from Fed Vice Chair Clarida reiterating much of what was said in last week’s release of the April Fed meeting minutes. He said that it’s possible that “in upcoming meetings, we’ll be at the point where we can begin to discuss scaling back the pace of asset purchases.” Clarida believes that pricing pressures will eventually “prove to be largely transitory”. The Vice Chair also noted that the macro data is likely to continue to be volatile, citing the most recent employment report, which “really highlights a fair amount of near-term uncertainty about the labor market.”

Though equities struggled for traction given the data, the reports were much better news for sovereign bond markets, which gained further ground as investors again moved to downgrade the pace of rate hikes over the next couple of years. Yields on 10yr US Treasuries fell -4.2bps to 1.559% in their 4th consecutive move lower, which is the benchmark’s lowest closing levels since April 23. European countries saw an even larger decline in yields, with those on 10yr bunds (-2.7bps), OATs (-3.8bps) and gilts (-2.5bps) all falling back. Once again, Greek debt was a relative outperformer, with the spread of their 10-year yields over bunds falling to a 12-year low of 1.07%.

Overnight in Asia, equities have posted gains for the most part, with the Nikkei (+0.29%), the Shanghai Comp (+0.29%) and the Hang Seng (+0.76%) all advancing. The exception to this pattern is the Kospi however, which has fallen -0.22%. Elsewhere, the New Zealand dollar surged against other major currencies (+1.12% vs USD) after the RBNZ brought back their projection of the Official Cash Rate, which pointed to a rate hike in the second half of 2022. In turn, this also led to a surge in yields, with those on the country’s 10yr debt seeing a +8.2bps increase this morning. US equity futures are pointing higher this morning, with those on the S&P up +0.29%.

Back to yesterday, and on the political front we got confirmation from the White House that President Biden would be meeting Russian President Putin in Geneva on June 16. This is their first in-person meeting since Biden’s inauguration and comes amidst tensions between the two sides over a range of issues, with the US having recently imposed fresh sanctions on Russian officials over the poisoning of Alexei Navalny. The meeting between the two will come directly after Biden’s attendance at the G7 summit in the UK from June 11-13, followed by a meeting of the NATO heads of State and Government in Brussels on June 14.

Staying on the political sphere, today also marks exactly 4 months until the German election in September, and the polls have recently begun to indicate that the Green Party’s surge in the polls has shown signs of stalling. That big increase followed the selection of Annalena Baerbock as the party’s chancellor candidate, but her popularity has shown signs of ebbing, which is probably to do with news stories from last week that she failed to report bonus payments that she’d received from her party. This isn’t necessarily a turning point, and the overall polling average from Bloomberg still puts the Greens on 23.6%, which is just shy of the CDU/CSU bloc on 24.4%. But that’s still a reversal from just 3 weeks earlier, when the same average put the Greens ahead on 24.8%, compared to the CDU/CSU’s 24.1%. As a reminder, our German economists’ baseline call is that there’ll be a CDU/CSU-Green government.

On the pandemic, we got the news yesterday that the Moderna vaccine was between 93% and 100% effective at preventing symptomatic Covid among 12-17 year olds, depending on whether you included very mild cases. In turn, this opens the prospect that the vaccine will soon join the Pfizer vaccine in being cleared by the US for younger age groups. Separately, the White House has announced that half of all American adults are now fully vaccinated. Elsewhere, the UK government also issued some revisions to their own guidance for 8 council areas where the Indian variant is spreading the fastest. They’re recommending that people should meet outside rather than inside where possible, and avoid travelling into or out of those areas unless essential. The new advice was actually published online on Friday, but was done without an announcement and only came to the attention of the wider media over the last couple of days. France is considering imposing travel restrictions on those coming and going to Britain following reports of the Indian variant. Elsewhere parts of Southeast Asia continue to struggle under the current wave of infections with Malaysia now seeing more per capita daily cases than India.

Looking at yesterday’s data, the Ifo’s business climate indicator from Germany for May rose to 99.2 (vs. 98.0 expected), which is its strongest level in 2 years. The expectations (102.9) hit its highest since April 2017, while the current assessment reading (95.7) reached its highest since February 2020.

It’s a fairly quiet day ahead now on the calendar, with the data highlights including French consumer confidence for May, and central bank speakers including Fed Vice Chair Quarles and the ECB’s Villeroy. Earnings releases include Nvidia, and the CEOs of a number of Wall Street firms will be testifying before the Senate Banking Committee.

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 1.202 PTS OR 0.34%   //Hang Sang CLOSED UP 255.15 PTS OR 0.88%      /The Nikkei closed UP 88.21 pts or 0.31%  //Australia’s all ordinaires CLOSED DOWN .24%

/Chinese yuan (ONSHORE) closed UP AT 6.3902 /Oil UP TO 65.82 dollars per barrel for WTI and 68.42 for Brent. Stocks in Europe OPENED ALL RED   //  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.3902. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3839   : /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/USA

What a doorknob: the world needs to know the origin of the COVID 19 virus and yet he shuts down the Wuhan lab investigation because he is deeply compromised.

(zerohedge)

Biden Shut Down Wuhan Lab Investigation Probing COVID-19 Origins: Report

 
WEDNESDAY, MAY 26, 2021 – 08:05 AM

The Biden administration pulled the plug on a Trump-era State Department investigation into whether COVID-19 originated from the Wuhan Institute of Virology in China, according to a Tuesday evening report by CNN.

The effort, led by then-Secretary of State Mike Pompeo, also sought to determine whether China’s biological weapons program may have played a role in the pandemic. According to the report, it was met with internal opposition from officials who thought it was simply a politicized witch hunt to blame China for the virus.

According to three unnamed sources, when Biden was briefed on the investigations’ findings in February and March, he pulled the plug – and instead opted to trust the findings of the World Health Organization, which conducted an ‘investigation’ earlier this year which turned out to be nothing more than political theater, the cast of which included the highly conflicted Peter Daszak, the Fauci-funded virologist who was studying bat viruses at the Wuhan lab.

“The way they did their work was suspicious as hell,” said one former State Department official who (we’re guessing was rooting for team Schiff during Trump’s impeachment).

Pompeo, meanwhile, said in May 2020 that there was “enormous evidence” and a “significant amount of evidence” to support the lab-escape theory. And according to former senior State Department official David Feith, “People in the US government were working on the question of where Covid-19 came from but there was no other effort that we knew of that took the lab leak possibility seriously enough to focus on digging into certain aspects, questions and uncertainties.

The revelation that Biden shut down the inquiry is awkward at best, after the Wall Street Journal reported on Sunday that three researchers at the Wuhan Institute of Virologywere so sick in November of 2019 that they sought hospitalization, citing the intelligence report that Biden rejected.

The details of the reporting go beyond a State Department fact sheet, issued during the final days of the Trump administration, which said that several researchers at the lab, a center for the study of coronaviruses and other pathogens, became sick in autumn 2019 “with symptoms consistent with both Covid-19 and common seasonal illness.

The disclosure of the number of researchers, the timing of their illnesses and their hospital visits come on the eve of a meeting of the World Health Organization’s decision-making body, which is expected to discuss the next phase of an investigation into Covid-19’s origins. -WSJ

The lab leak theory, floated by Zero Hedge and several other outlets in early 2020, was promoted heavily by former President Trump, who blamed China for unleashing the virus on the world and derailing historic economic growth following three years of ‘America First’ international negotiations, along with generous tax breaks.

“I said it right at the beginning, and that’s where it came from,” Trump told Newsmax Tuesday night, taking somewhat of a victory lab over the MSM’s ‘come to Jesus’ moment over the mounting lab leak hypothesis. “I think it was obvious to smart people. That’s where it came from. I have no doubt about it. I had no doubt about it. I was criticized by the press.”

Trump also said he remains confident that the lab leak theory is correct.

“‘People didn’t want to say China. Usually they blame it on Russia,” he continued. “I said right at the beginning it came out of Wuhan. And that’s where all the deaths were also, by the way, when we first heard about this, there were body bags, dead people laying all over Wuhan province, and that’s where it happened to be located.”

To me it was very obvious. I said it very strongly and I was criticized and now people are agreeing with me, so that’s okay.

 

END
CHINA/COMMODITIES
China halts banks form selling commodity linked investment in an effort to stop inflation which is ripping apart China
(zerohedge)

China Halts Banks From Selling Commodity-Linked Investment Products To Retail Traders

 
WEDNESDAY, MAY 26, 2021 – 09:14 AM

Now that the inflation narrative has been paralyzed with Bloomberg picking up on what we said last week about China’s tumbling credit impulse… China’s top banking regulator has directed banks to stop selling commodity-linked investments to mom-and-pop buyers, three sources with knowledge of the matter told Reuters. They said China is cracking down on the commodity boom and is attempting to curb future investment losses. 

The China Banking and Insurance Regulatory Commission (CBIRC) requested banks to unwind existing books of commodity-linked products. This comes, as we noted above, China’s credit impulse is plunging and has crossed into negative territory, which will limit upside in global commodity prices. 

The commodity boom began in the spring of 2020, driven by unprecedented monetary support from global central banks and fiscal support from governments, resulting in soaring prices from iron ore to copper to soybeans to wheat to crude to gasoline to almost every commodity. And, of course, Chinese retail traders went wild during the boom, sort of like Chinese farmers who invested their life savings in 2015 only to lose it all when everything crashed. 

“The risk contained in banks’ commodity-linked investments cannot be easily spotted by ordinary investors, neither can they bear it,” one of the sources said. “Banks also don’t have enough expertise to run such products properly.”

CBIRC is moving to curb commodity speculation among retail as state planners and exchanges in recent weeks said they would implement price-control measures for commodities. 

Last weekend, the National Development and Reform Commission (NDRC) cracked down on commodity speculation, threatening top metal firms with severe punishment for price manipulation to excessive speculation to spreading fake news. 

After a year-long vertical rampage, iron-ore futures have hit a sudden air pocket in the last week amid chatter from Chinese regulators. There’s a “zero tolerance” for monopoly behavior and hoarding, the NDRC top execs Sunday. 

“With policy risk-shifting toward government intervention, prices will surely be affected by market sentiment,” said Li Ye, an analyst at Shenyin Wanguo Futures Co. in Shanghai, who Bloomberg quoted. “The rapid surge in commodity prices has badly affected manufacturers and market orders, leading to losses and defaults.”

Over the past few years, we have vehemently explained that ‘as goes China’s credit impulse, so goes the world’, and it would appear, once again, that is occurring. 

With China’s credit impulse negative, mom-and-pop investors who leveraged up in commodity-linked investments could get wiped out again as liquidity eases. 

Sources said some banks are shifting their commodity-linked investments and clients to affiliated brokerages, but this would require permission from the securities regulator. 

The Chinese government also warned that it would monitor and effectively ‘manage’ a rapid increase in commodity prices, without specifying how.

One final reminder: the credit impulse first reaches assets driven primarily by the Chinese economy (Chinese bond yields and industrial metals). Next to be impacted are inflation breakevens and sovereign yields in Western economies. The peak correlation for other growth-sensitive assets such as eurozone banks and AUD/JPY arrives with a bigger lag of around 4-5 quarters. This result, while logical, is quite significant, as it gives us a playbook for the ebb and flow in Chinese credit impulse.

… and it’s possible China is killing the commodity craze

4/EUROPEAN AFFAIRS

GERMANY/USA/RUSSIA/NORD STREAM 2

Biden’s protests go on deaf ears. NATO was introduced to defend against Russia  and now Germany buys Putin’s natural gas.  Biden wants Germany to buy the more expensive LNG

(Pat Buchanan)

Merkel Flips Off Biden’s Protest… To Buy Putin’s Gas

 
WEDNESDAY, MAY 26, 2021 – 05:00 AM

Authored by Pat Buchanan via Buchanan.org,

When the U.S. created NATO, a primary purpose of the alliance was to serve as a western wall to defend Germany against the 400,000 Russian troops on the eastern side of the Elbe River.

Seventy years later, Germany has decided to double its dependence on Vladimir Putin’s Russia for the natural gas needed to run the German economy, despite the opposition of her great protector, the USA.

The Biden administration decided to waive sanctions on Matthias Warnig, the ally of Putin whose company, Nord Stream 2 AG, is laying the pipeline beneath the Baltic Sea from Russia to Germany that is now 95% complete.

When done, Nord Stream 2 will make Moscow, Germany’s principal supplier of natural gas, and cut Kyiv out of hundreds of millions in transit fees it annually receives for letting Russian gas pass through Ukraine to Germany.

Previously, Joe Biden and Secretary of State Anthony Blinken had seemed resolute in opposition. Said Blinken:

“We think the (Nord Stream 2) pipeline is a bad idea. It advances Russia’s interests and undermines Europe’s interests and our own. It actually goes against the very principles that the EU has set out in terms of energy security and not being too dependent on any one country, notably, in this case, Russia.”

As late as March, the Biden administration had made clear its commitment to complying with sanctions legislation put in place with bipartisan support in Congress, and had called on companies involved in Nord Stream 2 to “immediately abandon work on the pipeline.”

Ukraine is stunned and outraged.

Its parliament, the Rada, has passed a resolution urging Congress to “use all available tools provided by US law to completely and irreversibly stop the construction of the Nord Stream 2 gas pipeline by applying blocking sanctions against all participants in this Russian geopolitical project.”

Why did Biden and Blinken fold? Was it to set the table for the Biden’s June summit with Putin?

The decisive factor was probably that Nord Stream 2 is just about complete and America’s principal continental ally, Germany, is wholly committed to the project. Prime Minister Angela Merkel, who is leaving office this year, approved the deal with Putin’s Russia and her legacy is now tied to its completion.

Germany’s dependence on Russian gas is certain to grow as Berlin, as it plans to do, phases out its coal and nuclear power plants.

This raises a question about NATO, and the commitment of its 30 members to treat an attack against one as an attack against all.

Would a Germany that is doubling its dependency on Russia for the natural gas that fuels its economy be willing to go to war against that same Russia, and send German troops to fight alongside NATO?

Would Berlin be willing to declare war on its own gas station?

Biden’s climbdown on opposition to Nord Stream 2 is startling from another standpoint. He and his team have shown themselves to be true climate change zealots who want to see gas and oil rapidly phased out.

On his first day in office, Biden canceled the Keystone XL pipeline, enraging the Canadians and killing off 11,000 American jobs. Biden then outlawed any new drilling permits for oil or gas on federal lands.

Michigan Gov. Gretchen Whitmer just told a Canadian energy company, Enbridge, it must shut down a controversial oil and gas pipeline that passes under the Straits of Mackinac, amid rising fears that a spill would be catastrophic to the region.

For 67 years, Enbridge has moved oil and gas from western Canada through Michigan and the Great Lakes to refineries in Ontario.

But Michigan now says that this one section of the pipeline is too risky to continue operating.

Earlier in May, America got a wake-up call about the vulnerability of its energy supply. Colonial Pipeline, which carries refined gasoline and jet fuel from Texas up the East Coast to New York, was forced to shut down after being hit by ransomware.

The attack was apparently the act of a criminal group, not a nation-state. But the damage done was considerable.

Half the gas stations in several states on the Eastern seaboard had to close when their gasoline pumps were exhausted by long lines of panicked motorists. To get their pipeline fully operating again, Colonial had to pay millions.

This demonstrated the vulnerability of the U.S. energy system and its new technology to the kind of cyberattacks that enemies far more serious than the criminal gang who launched the attack on the Colonial Pipeline could launch.

Fifty years ago, we confronted a grave threat to U.S. energy security and independence: an oil embargo imposed by the Saudis and other Arab OPEC countries in retaliation for Richard Nixon’s military aid that enabled Israel to survive and prevail in the Yom Kippur War of 1973.

Are we still prepared for something of that magnitude?

-END-

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

BELARUS//RUSSIA/USA

Russian satellite Belarus hijacked a plane containing dissent Roman Protasevich.  Authorities removed Protasevich and his Russian girlfriend.  The Europeans introduced sanctions against Belarus and we are now waiting for what the uSA might do, This is very fluid…

(zerohedge)

Outrage After Detained Belarusian Activist & His Girlfriend ‘Confess’ To Crimes In Online Videos

 
WEDNESDAY, MAY 26, 2021 – 09:30 AM

Family and friends of Russian citizen Sofia Sapega – who was detained alongside her boyfriend Roman Protasevich on the Ryanair flight which was forcibly diverted to Minsk on Sunday – are saying she was simply in the wrong place at the wrong time.

Since the pair’s arrests, Western powers have condemned what they called an act of “state piracy” and a “hijacking” of an airliner, with the EU ready to heap more sanctions on the Lukashenko government and with European flights now avoiding Belarusian airspace altogether over safety concerns. The whole bizarre episode appears to be leading toward another major diplomatic “Navalny-style showdown” between the West and Russia and its allies, given especially Putin’s vocal support for embattled Lukashenko over the past months since the disputed election.

According to Reuters, “Sapega is a student at a university in the Lithuanian capital Vilnius. She was flying there on Sunday with Protasevich after their holiday in Greece to defend her master’s thesis ahead of graduation, according to the university.”

Russia’s Foreign Ministry has since confirmed that 23-year old Sapega is a Russian national and is facing charges in Belarus along with her boyfriend “in connection with the suspicion of having committed, between August and September 2020, offences under several articles of the Belarusian Criminal Code,” according to an official statement.

Protasevich was an influential figure in independent and opposition Belarusian media reporting, specifically via a popular Telegram channel, which helped fuel massive anti-Lukashenko protests since his controversial re-election to a sixth term late last summer (which will extend his 27-years in power).

Sofia Sapega stands accused of assisting Protasevich in helping to organize protests, but also publishing personal information of law enforcement personnel to the internet, which is a crime in Belarus.

Within a couple days after their detention, videos appeared online of the two “confessing” to a litany of crimes which has outraged the Belarusian opposition as it has the hallmarks of a forced confession, given also it’s expected to come with significant prison sentences. 

The two are facing charges related to organizing riots which could bring 15 years in prison…

They are expected to be kept in pre-trial detention for up to months, while Belarusian opposition leader Sviatlana Tsikhanouskaya issued a statement through a spokesman from neighboring Lithuania saying of Sapega that “She is guilty of being a friend of Roman. And they forced her to confess to ‘crimes’ she did not commit.”

Various leaders have weighed in on the pair’s fate in particular in the wake of the “confession” videos, with Britain’s Prime Minister Boris Johnson denouncing Belarus: “The video of Roman Protasevich makes for deeply distressing viewing. As a journalist and a passionate believer in freedom of speech I call for his immediate release.” And he added a moment the EU and multiple Western governments are preparing further sanctions: “Belarus’ actions will have consequences.”But many others are pointing out the glaring hypocrisy and very selective reading of recent history when it comes to the unified “outrage” generated with this fresh Belarus saga…

END

IRAN/USA/EU

Not good:  IAEA Chief warns that Iran has already reached nuclear weapons capable enrichment.

Any Biden wants to make a deal with them?

(zerohedge)

IAEA Chief Warns Iran Has Already Reached Nuclear Weapons Capable Enrichment

 
WEDNESDAY, MAY 26, 2021 – 01:45 PM

Amid the fifth and what’s expected to be the final round of Iran nuclear talks in Vienna, the director-general of the International Atomic Energy Agency (IAEA) has voiced that time is running out on reaching an agreement given the Islamic Republic has already reached bomb-building capability in terms of enriched uranium purity levels. 

IAEA chief Rafael Grossi told Financial Timesthat Iran has reached uranium purity levels that “only countries making bombs are reaching” after routinely ramping up enrichment since Trump pulled out of the Obama-era JCPOA back in May 2018.

IAEA Director-General Rafael Grossi

Calling the current situation “very concerning” (and especially if a deal is not ultimately reached in Vienna), he explained to FT:

“A country enriching at 60 per cent is a very serious thing — only countries making bombs are reaching this level,” said Grossi. “Sixty per cent is almost weapons grade, commercial enrichment is 2, 3 [per cent].”

Grossi still defended Iran’s “sovereign right” to do so. Tehran has always justified its program as only for domestic energy consumption needs, while its Ayatollahs over the years going back to the 1980’s have consistently condemned nuclear weapons as ‘unIslamic’. 

“We don’t seem to find much need for that at the current level of industrial, medical activity in Iran, but this is for a country to decide,” he said.

Just ahead of this week’s round of talks in which draft documents of an agreement are expected to be hashed out and finalized, Tehran and the UN nuclear watchdog IAEA reached a last minute understanding to extend a technical agreement which allows inspectors access to surveillance images of nuclear sites after just before the weekend Iran ended the program. This vital access which allows for continued close monitoring was extended for up to another month, which all parties hope is long enough to see a deal through. 

Meanwhile, there’s little doubt that IAEA chief Grossi’s words will be received with most worry and alarm in Tel Aviv after on Tuesday Israeli PM Benjamin Netanyahu said while standing at a press conference beside US Secretary of State Antony Blinken: “I can tell you that I hope that the United States will not go back to the old JCPOA because we believe that that deal paves the way for Iran to have an arsenal of nuclear weapons with international legitimacy,” the PM said.

“We also reiterated that whatever happens, Israel will always reserve the right to defend itself against a regime committed to our destruction, committed to getting the weapons of mass destruction for that end,” the Israeli prime minister added, introducing a bit of awkwardness at the meeting given Blinken responded by reiterating US support for reaching a deal with Iran.

END

AFGHANISTAN/USA

Pentagon officials; USA troops will be out of Afghanistan by July

(DeCamp/Antiwar.com)

US Troops Will Be Out Of Afghanistan By July: Pentagon Officials

 
WEDNESDAY, MAY 26, 2021 – 03:45 PM

Authored by Dave DeCamp via AntiWar.com,

According to a report from The New York Times, US troops are expected to be out of Afghanistan by early to mid-July, well before the September 11th deadline set by President Biden.

Unnamed US officials told the Times that Washington’s allies are also expected to be out by July, although Germany is apparently struggling to keep up the pace. US Central Command on Tuesday said the Afghanistan withdrawal process was about 16 to 25 percent complete.

 

Getty Images

The US recently handed over Kandahar Airfield to Afghan forces. The Times report said that US fighter jets and other military equipment will start leaving Bagram Air Base in the coming days. Last week, locals told Afghanistan’s Tolo News that the US has shipping truckloads of scrapped equipment out of the Bagram Air Base, which is the largest US military facility in Afghanistan.

Because of the quicker withdrawal, the Pentagon is scrambling for ways to maintain influence and assets in Afghanistan. The US and NATO both plan to continue supporting the Afghan government financially. The Times report said the approximately 17,000 Pentagon contractors in Afghanistan are leaving alongside US and other foreign troops.

The Afghan military is almost entirely reliant on these Pentagon contractors to maintain their equipment, so Afghan officials are looking into hiring contractors of their own, which the US would pay for anyway.

The Pentagon is hoping to reposition military assets into neighboring countries, but the US has no basing agreements in the region. The US might have to settle for launching reconnaissance missions or airstrikes in Afghanistan from bases in the Gulf after the pullout.

Pentagon officials said after the withdrawal, the US would limit airstrikes in Afghanistan to “counterterrorism operations,” a definition that can be used loosely.

The US wants to keep a diplomatic mission in Afghanistan, which would require the Kabul airport to be secure from the Taliban or other militants. Hundreds of Turkish troops are currently guarding the airport, but it’s not clear if they will stay. The US is mulling options to incentivize Ankara into continuing defending the airport. A diplomatic mission in Afghanistan could also be used to justify a small US troop presence.

Washington’s decision to pull out before September is likely an effort to avoid Taliban attacks on withdrawing troops. President Biden broke the US-Taliban peace deal by pushing back the original May 1st withdrawal deadline. Earlier this month, Tolo News reported that the US and the Taliban were in talks to get foreign troops out by sometime in July. In exchange, the Taliban would participate in a planned Afghan peace summit in Istanbul.

 

end

6.Global Issues

CORONAVIRUS UPDATE/VACCINE

John Hopkins professor: Half of Americans have natural immunity. The dismissing of this is the biggest failure of medical leadership

(Watson/SummitNews)

Johns Hopkins Prof: Half Of Americans Have Natural Immunity; Dismissing It Is “Biggest Failure Of Medical Leadership”

 
WEDNESDAY, MAY 26, 2021 – 04:19 PM

Authored by Steve Watson via Summit News,

A professor with the Johns Hopkins School of Medicine has said that there is a general dismissal of the fact that more than half of all Americans have developed natural immunity to the coronavirus and that it constitutes “one of the biggest failures of our current medical leadership.”

Dr. Marty Makary made the comments during a recent interview, noting that “natural immunity works” and it is wrong to vilify those who don’t want the vaccine because they have already recovered from the virus.

Makary criticised “the most slow, reactionary, political CDC in American history” for not clearly communicating the scientific facts about natural immunity compared to the kind of immunity developed through vaccines.

There is more data on natural immunity than there is on vaccinated immunity, because natural immunity has been around longer,” Makary emphasised.

“We are not seeing reinfections, and when they do happen, they’re rare. Their symptoms are mild or are asymptomatic,” the professor added.

“Please, ignore the CDC guidance,” he urged, adding “Live a normal life, unless you are unvaccinated and did not have the infection, in which case you need to be careful.”

“We’ve got to start respecting people who choose not to get the vaccine instead of demonizing them,” Makary further asserted.

Listen:  (zerohedge)

The professor’s comments come amid a plethora of media generated propaganda suggesting that natural immunity isn’t enough, and that those who do not choose to take the vaccine should be socially ostracised.

The likes of the World Health Organisation have even shifted the definition of ‘herd immunity’, eliminating the pre-COVID scientific consensus that it could be achieved by allowing a virus to spread through a population, and insisting that herd immunity comes solely from vaccines.

*  *  *

Brand new merch now available! Get it at https://www.pjwshop.com/

*  *  *

end

GLOBAL INFLATION

Dr Daniel Lacalle explains inflation and money on a macro level

a good read…

Dr Daniel Lacalle

Inflation, Money, And Supply Bottlenecks

 
WEDNESDAY, MAY 26, 2021 – 06:30 AM

Authored by Daniel Lacalle,

“The constant refinancing of debt from companies of doubtful viability also leads to the perpetuation of overcapacity because a key process for economic progress, such as creative destruction, is eliminated or limited”.

One of the arguments most used by central banks regarding the increase in inflation is that it is because of bottlenecks and that the recovery in demand has created tensions in the supply chain. However, the evidence shows us that most commodities have risen in tandem in an environment of a wide level of spare capacity and even overcapacity.

If we analyse the utilization ratio of industrial and manufacturing productive capacity, we see that countries such as Russia (61%) or India (66%) are at a clear level of structural overcapacity and a utilization of productive capacity that remains still several points lower than that of February 2020. In China it is 77%, still far from the 78% pre-pandemic level. In fact, if we analyse the main G20 countries and the largest industrial and commodity suppliers in the world, we see that none of them have levels of utilization of productive capacity higher than 85%. There is ample available capacity all over the world.

Inflation is not a transport chain problem either. The excess capacity in the shipping and transport sector is more than documented and in 2020 new capacity was added in both freights and air transport. Ships delivered in 2020 added 1.2 million twenty-foot equivalent units (TEUs) of capacity, with 569,000 TEUs of capacity on ultra large container vessels (ULCV), ships with capacity for more than 18,000 TEUs, according to Drewry, a shipping consulting firm. International Air Transport Association (IATA) chief economist Brian Pearce also warned that the problem of capacity was increasing in calendar year 2020.

One of the important side effects of the chain of monetary stimuli, low interest rates and fiscal stimulus programs is the increase in the number of zombie companies. The BIS (Bank for International Settlements) has shown this phenomenon in several empirical studies. Ryan Banerjee, senior economist at the BIS, identified the constant policy of lowering rates as a key factor in understanding the exponential increase in zombie companies, those that cannot cover their debt interest bills with operating profits. The constant refinancing of debt from zombie companies also leads to the perpetuation of overcapacity, because a key process for economic progress, such as creative destruction, is eliminated or limited. Low interest rates and high liquidity have perpetuated or increased global installed excess capacity in aluminium, iron ore, oil, natural gas, soybeans and many other commodities.

Why does inflation rise if overcapacity is perpetuated and there is enough transport capacity?

We have forgotten the most important factor, the monetary one, or some central banks want to make us forget it. “Inflation is always and everywhere a monetary phenomenon,” explained Milton Friedman many decades ago. More supply of money directed towards scarce assets, be it real estate or raw materials. The purchasing power of money goes down.

Why did they tell us that there was “no inflation” before COVID-19 if money supply increased also massively?

The big difference between 2020 and the past years is that previously, the Federal Reserve or the ECB increased money supply at or below the levels of demand for money (measured as demand for credit and use of currency). For example, the increase in the money supply of the United States was close to 6% with a global demand for dollars that grew between 7 and 9%. In fact, the world maintains a dollar shortage of about $ 17 trillion, according to Luke Gromen of Forest for the Trees. This keeps the dollar or euro relatively stable and a perception that inflation is low. However, there were red flags before Covid-19. There were protests all over the world, including Europe, against the rising cost of living. The world’s reserve currencies export inflation to other countries.

What happened in 2020?

For the first time in decades, the Federal Reserve, and the main central banks increased money supply well above demand. The response to the forced shutdown of activity with massive money printing generated an unprecedented inflationary wave. The economy did not collapse due to lack of liquidity or a credit crunch, but due to the lockdowns.

The 2020 monetary tsunami launched a global boomerang effect with three consequences:

  • Emerging market currencies plummeted against the dollar because their central banks “copied” the U.S. policy without the global demand that the U.S. dollar enjoys.

  • The second effect was a disproportionate amount of money flowing to risky assets joined by more flows to take overweight positions in scarce assets. That excess money made investors move from being underweight in commodities to overweight, generating a synchronized and abrupt rally.

  • The third key factor is that extraordinary measures typical of a financial or demand crisis were taken to mitigate a supply shock, generating an unprecedented rise in money with no added credit demand. More money in scarce assets is not a price increase, but a decrease in the purchasing power of money.

What is the risk?

The history of money since the Roman Empire always tells us the same thing. First, money is aggressively printed with the excuse that “there is no inflation.” When inflation rises, central banks and governments tell us that it is “transitory” or due to “multi-casual” effects. And when it shoots up, governments present themselves as the “solution” imposing price controls and restrictive measures on exports. It is not a theory. All of us who have lived in the seventies know it.

That is why it is dangerous to pursue conglomerate stocks as an inflationary bet… Because when price controls and government intervention increases, margins collapse.

The risk of stagflation is not small, and the so-called value stocks are not a good bet in this environment. In stagflation, commodities with tight supply dynamics, gold and silver, high margin sectors and bonds of stable currencies support a portfolio. However, most sectors underperform as we saw in the 70s, where the S&P 500 generated very weak returns, significantly below inflation.

What can be different from other episodes?

Only a drastic reaction from central banks can change it. However, the question is: Will central banks tighten policy when government deficits are soaring and even a small increase in sovereign yields can generate a debt crisis?

Will they react to what is clearly — as always — a monetary inflationary process?

end

Michael Every on the days most important topics

(courtesy Michael Every)

Rabo: To Achieve “Buy American” The Entire Supply Chain Needs To Shift From Raw Materials To Components

 
WEDNESDAY, MAY 26, 2021 – 11:01 AM

By Michael Every of Rabobank

Oy Gestalt!

There isn’t a lot of direct interest to report on markets today, so I am going to take a small/big segue to cry “Oy Gestalt!” The phrase “Oy gevalt!” is a step up from “Oy vey!” as a cry of deep frustration. “Gestalt” is a school of psychology which emphasizes we need to perceive entire patterns or configurations to solve a problem, sometimes summarized with the adage, “the whole is more than the sum of its parts.” So let’s cry “Oy gestalt!” at what is going on around us.

US President Biden is to meet Russian President Putin in Geneva on 15 June to try to reset relations. This is a U-turn from the Democrats’ Russia obsession – but that’s just domestic politics; comes after Biden called Putin “a killer” – but that’s just domestic politics and bad diplomacy; after a Russian hack on a US oil pipeline, and the skyjacking of a jet; the latter came a few days after the US allowed Russia to complete the Nord Stream 2 gas pipeline to Germany, despite experts saying is not in its long-run interests; and as the WSJ says “Russian Military Seeks to Outmuscle US in Arctic”; a US General warns of Russia and China filling the US void in the Middle East; and the Global Times says “China, Russia eye fixing ‘global disorder’ amid US withdrawal”.

Geostrategically, this summit is a logical attempt at a ‘reverse Nixon’ to move Russia away from China, which is clearly seen as the #1 problem for the US. But in the 1970s, the power differentials between the US, USSR, and China were very different to today. The US could offer China Western markets and FDI: what can it give Russia today they may not already be close to achieving (with China) anyway? Is the US pushing back on NS2, or in the Arctic, or on Ukraine, or in Central Asia, or the Middle East, or Africa? No, it is retreating – while making no effort to create a new pan-European umbrella to try to shift Russia back westwards to a retirement in St Tropez.

As part of the US China-centric Cold War approach, Congress is deliberating a USD52Bn package that could, according to the Commerce Secretary, build 7-10 new semiconductor plants in the US. This is the kind of hi-tech on-shoring required for ‘resilience’ – but it’s small beer compared to what South Korea has planned, and they are still located next door to China and Russia. Moreover, where are the critical components to build the US semiconductors going to come from?These key inputs are increasingly located in territories or facilities friendly, owned, or in China and/or Russia, which are both rapidly expanding their geopolitical footprints. The same is true for green tech inputs, from solar panels to electric car batteries.

There is broad recognition in the US of the need to address deep-rooted inequality, expressed via ‘Buy American’, which Covid-19 has also shown is essential for vaccines, medicines, and medical equipment. However, the entire supply chain may need to shift, from raw materials to components, in order to be able to achieve this political and geostrategic goal. Private businesses are not going to front-run such a disruptive, expensive process unless the state lays down guidelines they can see are going to last. This means new trade relationships and/or physical infrastructure.

Think of China’s Belt and Road: is there any doubt in the mind of anyone involved that China means long-term business with the logistics that allow it to lock in physical supplies of key commodities in a hub-and-spokes model? And if it has the bulk of supply of critical inputs, how can it not then have the bulk of the manufacturing capacity too? Where does that leave US, EU, and UK hopes to ride green tech to a more self-reliant, more socially-equal future?

This brings us back to the more immediate market focus of the inflation/deflation debate. There is obviously a lack of joined-up thinking at play, which is why we have record US job openings and a very low labor participation rate. But how many central banks understand that as they concern themselves with economic justice at home, with echoes of ‘the class struggle’, and the fight against the climate crisis, that part of their ability to achieve these national goals may be directly linked to a very different kind of struggle going on abroad – over future supply chains and the finite resources needed for “Levelling up” and a “Green New Deal”? Few enough that it is worth crying “Oy gestalt!”

Central banks used to understand geopolitics. The Fed and BOE were more than aware of what was going on in WW2, and what needed to be funded, and which supply chains were required to make sure the Allies won. But outside such obvious episodes, central banks were created specifically to fund major national conflicts – not to target inflation or jobs. The assumption was that if you won the war, the jobs would flow; inflation could be worried about later, while the deflation of not having enough gold or silver would be averted. More commercially, think of the US hunt for powerful natural phosphate guano, which saw the States seize 100 islands in the Caribbean and Pacific in the 19th century to ensure enough supply to fuel their growing agricultural economy – which helped keep US food prices low, and to sculpt the global balance of power we see today.

In short, the gestalt view is that dealing with Western inequality is needed to prevent the pillars of liberal democracy from cracking. Here we have broad agreement. This requires abandoning parts of the neoliberal international economic consensus to onshore more production and jobs. Here too we have broad agreement. That requires making supply chains more ‘resilient’. Again, there is consensus here. However, in a Cold War environment where everyone wants to do the same thing, this means forcing an entire nexus of supply chains to come home; and the raw materials at the end of it; and the physical infrastructure to get it there safely. There is little recognition of this uncomfortable mercantilist truth – yet. But if you don’t do the above, then dealing with inequality via more stimulus can only end up in supply-push inflation that kills consumer demand and worsens inequality; or at least in a larger trade deficit that worsens inequality.

Of course, building that infrastructure and directing/controlling supply chains involves a lot more than polite committees passing resolutions. Or guano. It’s raw realpolitik. And it’s expensive. But then again, so are endless stimulus packages, and getting this big picture view wrong. Yet selling this kind of change to countries not used to it is difficult. Try telling the EU it needs to do a lot more than rolling its sleeves up if it wants to have true “open strategic autonomy” as one example. And a new outwards policy focus needs a change in the inwards one too. As the White House pushes for transformative economic and cultural change, the Financial Times today already carries an editorial arguing “Biden may have to choose between cultural and economic radicalism” because “history shows that Americans can only tolerate so much change at any given time”. Try selling those voters the message that the US has to build its own muscular Belt and Road when it cannot agree on building any roads at home.

A lot more change will be seen regardless, because others are already playing this game. And imagine if this spike in supply-chain driven inflation gets worse and isn’t transitory. Imagine if it is or isn’t covered by wage growth. And imagine if we then get deflation to follow. ”Oy gestalt!

end

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

INDIA//CORONAVIRUS UPDATE/VACCINE UPDATE
 
 
END

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

Euro/USA 1.2232 DOWN .0015 /EUROPE BOURSES /ALL RED   

USA/ YEN 108.92 UP 0.110 /NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.4157  UP   0.0015  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.2087  UP .0022

 

Early THIS  WEDNESDAY morning in Europe, the Euro FELL BY 15 basis points, trading now ABOVE the important 1.08 level FALLING to 1.2222 Last night Shanghai COMPOSITE CLOSED UP 12.02 PTS OR 0.34% 

//Hang Sang CLOSED UP 255.15 PTS OR 0.88%

 

/AUSTRALIA CLOSED UP 1.00% // EUROPEAN BOURSES OPENED ALL RED GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES CLOSED ALL RED   

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 255.15 PTS OR 0.88%

/SHANGHAI CLOSED UP 12.02 PTS OR 0.34% 

Australia BOURSE CLOSED DOWN 0.24%

Nikkei (Japan) CLOSED UP 88.21 PTS OR 0.31%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1905.60

silver:$28.07-

Early WEDNESDAY morning USA 10 year bond yr: 1.567% !!! UP 1/2 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

The 30 yr bond yield 2.251 DOWN 1  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 89.80  UP 16 CENT(S) from TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing  WEDNESDAY NUMBERS 1: 00 PM

Portuguese 10 year bond yield: 0.46% DOWN 4  in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.075%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 0.46%//  DOWN 4 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:  0.92 DOWN 5  points in basis points yield from yesterday./

the Italian 10 yr bond yield is trading 46 points higher than Spain.

GERMAN 10 YR BOND YIELD: FALLS TO –.200% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.12% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

END

IMPORTANT CURRENCY CLOSES FOR  WEDNESDAY

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

Euro/USA 1.2207  DOWN     .0041 or 41 basis points

USA/Japan: 109.09  DOWN .001 OR YEN UP 1  basis points/

Great Britain/USA 1.4127 DOWN .0016 POUND DOWN 16  BASIS POINTS)

Canadian dollar DOWN 46 basis points to 1.2112

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The USA/Yuan,  CNY: closed    ON SHORE  (UP).. 6.3916

THE USA/YUAN OFFSHORE:    (YUAN UP)..6.3854

TURKISH LIRA:  8.47  EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield  at +0.076%

Your closing 10 yr US bond yield DOWN 2 IN basis points from TUESDAY at 1.562 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.250 DOWN 2 in basis points on the day

Your closing USA dollar index, 90.02  UP 38  CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED UP 6.52 PTS OR 0.16% 

 

German Dax :  CLOSED DOWN 14.76 PTS OR 0.10% 

 

Paris CAC CLOSED UP 0.64  PTS OR 0.14% 

 

Spain IBEX CLOSED DOWN  18.40  PTS OR  0.20%

 

Italian MIB: CLOSED DOWN 107..68 PTS OR 0.43% 

 

WTI Oil price; 66.22 12:00  PM  EST

Brent Oil: 68.90 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    73.50  THE CROSS  HIGHER BY 0.01 RUBLES/DOLLAR (RUBLE LOWER BY 1 BASIS PTS)

TODAY THE GERMAN YIELD FALLS  TO –.200 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 : 66.18//

BRENT :  68.79

USA 10 YR BOND YIELD: … 1.578..UP 2 basis points…

USA 30 YR BOND YIELD: 2.267 UP 1 basis points..

EURO/USA 1.2193 (DOWN 54   BASIS POINTS)

USA/JAPANESE YEN:109.14 UP .350 (YEN DOWN 35 BASIS POINTS/..

USA DOLLAR INDEX: 90.05 UP 41  cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.4122 DOWN 20  POINTS

the Turkish lira close: 8.46

the Russian rouble 73.50   DOWN 0.01 Roubles against the uSA dollar. (DOWN 1 BASIS POINTS)

Canadian dollar:  1.2119  DOWN 53 BASIS pts

German 10 yr bond yield at 5 pm: ,-0.200%

The Dow closed UP10.59 POINTS OR 0.03%

NASDAQ closed UP 45.01 POINTS OR 0.33%


VOLATILITY INDEX:  17.68 CLOSED DOWN  1.16

LIBOR 3 MONTH DURATION: 0.139%//libor dropping like a stone

USA trading day in Graph Form

Small Caps Surge Amid Massive Short-Squeeze, Dollar Dead-Cat-Bounces

 
WEDNESDAY, MAY 26, 2021 – 04:00 PM

Spot the odd one out!

Small Caps exploded at the cash open (just as they did yesterday) and kept going (unlike yesterday) as Dow, S&P, and Nasdaq trod water. Did Small Caps run the stops and lose momentum?

All thanks to a huge short-squeeze – the second biggest daily jump in “most shorted” stocks this year…

Source: Bloomberg

And the WSB Reddit Raiders are back on the short squeeze hunt…

Source: Bloomberg

With AMC and GME surging…

Squeeeeze…

Small Caps huge surge today was very technical as it bounced off its 100DMA and ran stops above its 50DMA…

Will it hold this time?

And the whipsaws in the Russell/Nasdaq pair are ripping people’s faces off left and right…

Bezos bought Bond today and AMZN shares ended lower, MGM higher…

Mixed bag in bonds today with the longer-end underperforming (but only up around 2bps)…

Source: Bloomberg

10Y yields chopper around in a very narrow range, still well off the FOMC Minutes spike high…

Source: Bloomberg

The dollar bounced back to unchanged on the week…

Source: Bloomberg

Cryptos were higher on the day but gave back early gains during the US session with Bitcoin unable to hold $40k…

Source: Bloomberg

Ether followed a similar path but outperformed bitcoin, testing above $2800…

Source: Bloomberg

ETH trading volumes are overtaking those of BTC…

Gold ended unchanged after a clubbing at around 1345ET took futs down below $1900…

Oil prices chopped around weighing demand pickups with Iran supply concerns (and helped by some notable inventory draws today)…

Commodities were broadly higher today but had a big dip intraday, but is well off the highs…

Source: Bloomberg

And finally, don’t forget the banks keep puking excess over to The Fed (even before month-end window-dressing)

Source: Bloomberg

END

a)Market trading/THIS MORNING/USA

end

afternoon trading

 
 
ii) Market data

USA

 

iii) Important USA Economic Stories

The Reverse Repo mess explained through the eyes of Zoltan Poszar. Today another 17 billion added up to $450.28 billion.

(zerohedge)

Zoltan’s Latest Shocker: The Taper Will Be Bullish If…

 
TUESDAY, MAY 25, 2021 – 09:11 PM

Ask around on Wall Street (or any street) what the biggest bogeyman to capital markets is and 11 times out of 10 the answer will be “the taper“, even though the fact that everyone is fully aware of the risks from the Fed’s looming announcement, also means that it is more than fully priced in.

Which is why, in light of the fact that the market’s true biggest risk is runaway, out-of-control, inflation, we previously suggested that far from being a crash catalyst, the taper may well end up being a trigger for further market gains especially since it would mean that the unprecedented flood of liquidity in the market which has sent the Fed’s reverse repo facility to near record levels

… as banks simply no longer have a place where to store all the Fed’s reserves, will finally ease.

Incidentally, we are not the first ones to make that argument: back in 2013, just around the time Ben Bernanke spooked the market with the first “Taper Tantrum”, none other than hedge fund titan David Tepper made the same argument:

Regarding Fed policy, Tepper said investors shouldn’t fret about the central bank tapering its $85 billion monthly bond-buying program. In fact, he hopes the Fed starts pulling back on the stimulus sooner than later.

“There better be a true [Fed] taper or else you might be back into the last half of 1999,” Tepper said. “…”If the Fed doesn’t taper back, we’re going to get into this hyper-drive market. It’s a backwards argument. To keep the markets going up at a steady pace the Fed has to taper back.”

Tepper said he expects the central bank to find a “natural” way to ease its way out of its bond buying program. There should be no “hand-wringing” by markets over concern about a tapering, he said.

“Guys that are short, they better have a shovel to get themselves out of the grave,” Tepper said.

Fast forward to today when the same logic applies: the longer the Fed does nothing, the more likely it is to lose control of inflation altogether (not to mention flooding the repo system with liquidity beyond repair) and so we expect that within the next few weeks ahead of the Fed’s September “Taper bomb”, the narrative will change accordingly.

Which brings us to the first indication thereof: in his latest Global Money Dispatch note, repo guru Zoltan Pozsar (formerly the NY Fed’s market plumbing wunderkind and currently at Credit Suisse), the Hungarian provides a rather technical and more nuanced, if altogether similar argument: the taper could well lead to lower rates (i.e., no bond market tantrum when then jumps to stocks) provided that at the same time, the Fed announced the end of Wells Fargo’s asset growth ban, activating some $500 billion in unused balance sheet capacity, or more than enough to offset many months of declining Fed purchases courtesy of a brand new private sector entity.

For those curious how the groundwork is being set to paint the taper in a positive light, here is the full Pozsar note:

There is the QE problem, the Wells Fargo problem, and the taper problem…

The QE problem has to do with the Fed buying way too many mortgages, richening MBS relative to Treasuries. The Fed is buying $40 billion of MBS a month, and Bank of America is providing a tailwind by buying as many MBS as the Fed.

What will fix this issue is either the Fed buying less MBS and more Treasuries, or Bank of America doing the same – the Fed for “market functioning” reasons and Bank of America for relative value reasons. Either way, fixing the QE problem will require one of these banks to buy more Treasuries before taper commences.

If you are concerned about the MBS float, the last thing you need is the Fed suddenly lifting Wells Fargo’s asset growth ban. Well Fargo has an unused balance sheet capacity of more than $500 billion, and after years of no growth and a shrinking loan book, it would be stepping into duration markets with force.

If the QE problem is bad enough for MBS and leads to a bid for Treasuries, the QE problem plus freeing Wells Fargo now would mean MBS trading even richer and, by extension, an even stronger bid for Treasuries. Timing is everything…

…and getting it right can turn a problem into an opportunity.

While lifting Wells Fargo’s asset growth ban now would do more harm than good, it could come in handy when the Fed commences taper later this year or next. The market assumes that taper will lead to a sell-off in rates, like in the past – but that need not be the case. The Fed could announce its plans to taper, while at the same time announcing the end of Wells Fargo’s asset growth ban, so that fewer purchases by the Fed would be offset by more purchases by Wells.

Less buying by the Fed and more buying by Wells Fargo…

…and rates don’t have to sell off, provided there is coordination at the Fed. The monetary and regulatory arms of the Fed typically do not coordinate, but never say never. Using the Wells Fargo “option” could help the Fed make taper a smoother affair than the 2013 experience, which wasn’t smooth to begin with. It’s one thing to taper against a boring fiscal backdrop like during 2013, and another to taper against a backdrop painted with cumulonimbi of fiscal issuance – given the fiscal outlook, the Fed should be creative with the Wells Fargo option.

Then there is the consensus problem, which is that everyone expects rates to go up from here, and “if everyone is thinking alike, then somebody isn’t thinking”: the macro reasons for higher rates make sense, but the potential for more Treasury purchases either by the Fed or banks before taper commences, and Wells Fargo deploying $500 billion of balance sheet after taper commences, could set off a rates rally from here. Consider these problems at least as risks…

 

end

 

Commodity  markets

Lumber

The USA is at it again.  The USA lumber industry is in constant bottlenecks and this has caused USA lumber companies to raise their prices.  Home builders then sought Cdn. lumber.  Now the uSA wants to protect its lumber industry so they doubled the tariffs

Dalhei//Woodworking network

Lumber Firms Applaud, Home Builders Angry As U.S. Moves To Double Canadian Lumber Tariffs

 
TUESDAY, MAY 25, 2021 – 08:45 PM

by Robert Dalheim of Woodworking Network

The U.S. Department of Commerce says it will seek to double tariff rates on most Canadian softwood lumber, angering home builders. New rates vary by company. West Fraser goes from 9 percent to 11.4 percent, Canfor from 4.6 to 21 percent, Resolute Forest from 20.3 to 30.2 percent, and J.D. Irving from 4.2 to 15.8 percent.

The overall increase is from 9 percent to 18.32 percent.

Home builders, who had been urging for a removal of tariffs, expressed their disappointment.

“At a time when soaring lumber prices have added nearly $36,000 to the price of a new home and priced millions of middle class households out of the housing market, the Biden administration’s preliminary finding to double the tariffs on Canadian lumber shipments shows the White House does not care about the plight of American home buyers and renters who have been forced to pay much higher costs for housing,” said National Association of Home Builders chairman Chuck Fowke.

“The administration should be ashamed for casting its lot with special interest groups and abandoning the interests of the American people. It knows that the lumber tariffs are nothing less than a tax on American home buyers, renters and businesses that rely on lumber products and they could not have come at a worse time. Lumber prices are already up more than 300 percent from a year ago. If the administration’s decision to double tariffs is allowed to go into effect, it will further exacerbate the nation’s housing affordability crisis, put even more upward pressure on the price of lumber and force millions of U.S. home buyers and lumber consumers to foot the bill for this ill-conceived protectionist action.

U.S. lumber producers on the other hand, applauded the decision.

“A level playing field is a critical element for continued investment and growth for U.S. lumber manufacturing to meet strong building demand to build more American homes,” said Jason Brochu, U.S. Lumber Coalition Co-Chair and Co-President of Pleasant River Lumber Company.  “The U.S. Lumber Coalition applauds the Commerce Department’s continued commitment to strongly enforce the U.S. trade laws against subsidized and unfairly traded Canadian lumber imports.”

Canada, as one would predict, was also unhappy.

“U.S. duties on Canadian softwood lumber products are a tax on the American people,” said Mary Ng, Canadian Minister of Small Business, Export Promotion and International Trade. “We will keep challenging these unwarranted and damaging duties through all available avenues. We remain confident that a negotiated solution to this long-standing trade issue is not only possible, but in the best interest of both our countries.”

The decision comes as somewhat of a surprise. Home builders had been lobbying hard for a temporary removal of tariffs. Many Republicans had championed the NAHB’s claims. They had asked trade chief Katherine Tai to eliminate the tariffs.

It’s unclear how much the new tariffs will affect lumber prices.

Lumber companies say tariffs hardly make an impact.

“Lumber only makes up 4 percent of the cost of a new home— with near-zero impact on homebuyers,” the Lumber Coalition wrote in an opinion article published on Woodworking Network. “The NAHB’s claim that import duties cause today’s high lumber prices and therefore drive up the cost of homes is false. Supply and demand, not import duties, cause price fluctuations.”

The article was controversial, drawing in heavy scrutiny online.

The NAHB argued back, saying the Coalition was severely and intentionally underrating the cost of lumber in a home.

“If you walk into a home, you may notice that cabinets, windows, doors, and trusses are also often made of wood. And if you watch a home being built, you will see a lot of plywood and OSB being used for sheathing, flooring underlayment, siding, and interior wall and finishing, just to name a few uses. Also, builders do not in general buy lumber from sawmills, but from an intermediary like a lumber yard that operates with a profit margin.”

 

end

INFLATION WATCH

The easing of vessel congestion at La ports now goes in the opposite direction as more ships join queue trying to get their goods to harbour

(zerohedge)

Easing Of Vessel Congestion At LA Ports Reverses As More Ships Join Queue

 
TUESDAY, MAY 25, 2021 – 07:45 PM

Last week’s good news of easing vessel congestion earlier this month outside the busiest U.S. gateway for trade with Asia showed a glimmer of hope that supply chain disruptions could subside had flipped last week as more containerships join the queue.  

Bloomberg data shows the number of containerships queuing off the coast of Los Angeles reached the highest in two weeks.

As of Sunday, 21 containerships were anchored waiting for entry into L.A.-Long Beach, compared with 19 a week earlier. The bottleneck peaked at around 40 vessels in the queue in early February and has steadily declined ever since, but the latest data shows progress could be reversing. 

 

Source: Bloomberg

Shipping data shows another 16 vessels are expected to arrive at L.A.-Long Beach over the next few days, with ten of those scheduled to be moored offshore and join the queue. 

On Friday, the average waits for berth space, a designated location in a port used for mooring vessels when they are not at sea, was 5.9 days, compared with 6.1 a week earlier. That number peaked in April around eight days.

Readers may recall the collapse of the trans-pacific supply chains has been among the main reasons for soaring prices. It’s also hardly a secret that the most vulnerable section of supply chains are West Coast ports where congestion remains off the charts (as recently discussed in “It’s About To Get Much Worse”: Supply Chains Implode As “Price Doesn’t Even Matter Anymore” and “Port Of LA Volumes Are “Off The Charts.””) Which is why the first, and most critical step to restoring normalcy in both supply chains – and prices – will come from stabilizing and normalizing shipping congestion and backlog… at some point.

But as new data suggest, shipping congestion and backlogs are reversing and could result in even higher prices for any product that has to cross the Pacific before ending up in an Amazon warehouse or Walmart store shelf. 

END

HOUSE PRICES/USA

Housing Prices Skyrocketed In March, Increasing Pressure For Fed Tapering

 
WEDNESDAY, MAY 26, 2021 – 12:10 PM

Via Christophe-Barraud.com,

In March, housing prices growth accelerated, rising at the fastest pace since at least 2013. The trend is likely to remain strong in the coming months raising pressure on Fed to taper MBS purchases in the second half of the year.

Housing Prices Growth Kept Accelerating In March…

In March, a measure of housing prices in 20 cities rose at the fastest pace since December 2013, boosted by low mortgage rates and limited inventory. As I expected, on a YoY basis, the S&P CoreLogic Case-Shiller index (20-City Composite) surprised upward and rose 13.27% in March (up from 12.0% in February). In the meantime, the S&P CoreLogic Case-Shiller index of national property values climbed 13.19% YoY, the biggest jump since December 2005. The increase followed a 12.04% gain in February.

This trend was confirmed by other indexes. As a matter of fact, the CoreLogic House Price Index for March grew by 11.27% YoY (up from 10.28% YoY in February). It was the fastest increase since March 2006. In addition, the FHFA (Federal Housing Finance Agency) purchase-only price index rose 13.9% YoY in March (the largest increase on record and up from 12.4% YoY percent in February).

… Raising Pressure On Fed To Taper MBS Purchases In H2

Even though housing prices growth will slow this summer (due to unfavourable base effects, a rebound in inventory and the end of foreclosure moratorium and mortgage forbearance), the trend should remain robust.

In this context, I think that the debate concerning MBS purchases from the Fed will gain traction in the coming months. It will result in tapering before year-end. Fed Chairman Jerome Powell could be tempted to flag the move at Jackson Hole conference during the summer.

VACCINE WATCH/CORONAVIRUS UPDATE/

MONTANA

Fascinating; in this Montana resort: NO COVID vaccinated guests are allowed

(zerohedge) 

Our Health & Safety” – No COVID-Vaccinated Guests Allowed At This Montana Airbnb

 
TUESDAY, MAY 25, 2021 – 07:05 PM

An Airbnb listing hidden deep within western Montana’s woods has been taken down after it discriminated against vaccinated people with “COVID misinformation.” 

“WE ARE RESTRICTING THE CABIN TO NON-COVID VACCINATED GUESTS ONLY,” the listing read. 

“For the health and safety of not only other guests but also ourselves, all COVID vaccinated guests are asked to find another vacation rental that allows vaccinated guests,” it said.

The listing continued: “It has now been scientifically proven and is clearly stated on the vaccine manufacturers web sites, that the MRNA protein in the ingredients SHED through the vaccinated persons skin, breath etc, and will be passed along to non-vaccinated people.” 

Charlie Warzel, a former reporter at BuzzFeed News, brought attention to the listing on Twitter on Sunday. He direct messaged the owners of the property and asked about their vetting process. The owners replied by saying they abide by the honor system. 

“We are not able to prove we have not taken the shots so it’s all on the honor system. We just have to all trust each other. If you say you haven’t taken the shots we trust you and you are more than welcome here,” one of the owners told Warzel. But the conversation ended quickly as Warzel believes the owners saw his tweets about the property, which had gone viral. 

An Airbnb spokesperson told BuzzFeed the listing for the Montana cabin was suspended Sunday night “for promoting COVID misinformation in violation of our content policy.”

The continued canceled movement has reached new levels. Any opposition to vaccines and big tech will censor, suspend, or delete opposition accounts. The division between vaxxed and non-vaxxed continues to grow as the country is more fractured than ever. 

 

 END

 

 

iv) Swamp commentaries/

 

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

China to strengthen commodity price controls in five-year plan
The country will also step up monitoring and analysis of commodity prices such as crude oil, natural gas and soybean, the National Development and Reform Commission (NDRC) said in a statement.
    “(Local governments) should study and judge the import impact in depth, promptly make suggestions… (on matters) such as reserves, import and export, fiscal and taxation, and financial adjustment measures,” the statement said.  The NDRC also said authorities would “reasonably adjust cotton target price levels” and stick to the country’s minimum purchase price policy framework for rice and wheat, it said…  https://www.reuters.com/article/us-china-commodities-idUSKCN2D60A2

Commodities, ex-precious metals declined, some sharply (grains) on Tuesday.  Bonds rallied sharply on the prospect that China is killing commodity inflation.

Stocks Buoyed by Fed Reassurance; Bitcoin Slumps
U.S. home prices increase the most since the end of 2005
https://www.bloomberg.com/news/articles/2021-05-24/asian-stocks-set-to-climb-as-dollar-yields-drop-markets-wrap

Fed, OCC, FDIC in ‘sprint’ on regulation for crypto, Quarles says http://reut.rs/3fHfc24

Richmond Fed President Barkin: Market Measures of Inflation Haven’t Exceeded Fed Target – BBG

Only a Fed official or Ivy League academic would have the gall to try to make such absurd statements.

House price inflation roared in March.  The FHFA House Price Index jumped 1.4% m/m; 1.0% was expected.  February was revised to 1.1% from 0.9%.  The S&P CoreLogic 20-City house price index surged 1.6% m/m and 13.27% y/y.  1.3% m/m and 12.55% y/y were consensus.

The BLS does NOT use actual home prices to measure housing inflation.  It uses Owners’ Equivalent Rent (OER), which is derived from a survey of homeowners.  There is no way in hell that average Americans have the ability, experience, or expertise to accurately estimate at what rate they could rent their homes.  Yet, the BLS asks Americans how much they think they can get for renting their homes.  Of course, even experts do not know how much a rent will be until an actual transaction occurs.

BLS: How the CPI measures price change of Owners’ equivalent rent of primary residence (OER) and Rent of primary residence (Rent) – The expenditure weight in the CPI market basket for Owners’ equivalent rent of primary residence (OER) is based on the following question that the Consumer  Expenditure Survey asks of consumers who own their primary residence:  “If someone were to rent your home today, how much do you think it  would rent for monthly, unfurnished and without utilities?”…
https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-and-rent.pdf

April New Home Sales are 864k; 950k was expected.  March was revised to 917k from 1.021m.

The Conference Board’s Consumer Confidence unexpectedly sank to 117.2 from a sharply revised lower 117.5 (originally 121.7) in April.  Expectations plunged to 99.1 from 107.9 (originally 109.8).

The Big Read US Dollar – The demise of the dollar? Reserve currencies in the era of ‘going big’
The extraordinary stimulus measures in the US could undermine confidence in the greenback if inflation takes off… Today, with the US accounting for less than a quarter of global gross domestic product it makes less sense and leads to the accusation, levelled by the then French finance minister Giscard d’Estaing in the 1960s, of the “exorbitant privilege” whereby the US government can borrow more cheaply because of the greater demand for its IOUs arising from the reserve currency role…
    The threats to the dollar to watch are US fiscal profligacy and monetary debasement.
https://www.ft.com/content/408d4065-f66d-4368-9095-c6a8743b0d01

Elizabeth Warren slams Fed’s top bank cop, saying system will be ‘safer’ when he’s gone
Quarles disputes that the Fed’s easing of oversight led to Credit Suisse’s losses from Archegos
https://www.marketwatch.com/story/elizabeth-warren-slams-feds-top-bank-cop-saying-system-will-be-safer-when-hes-gone-11621959159

ESMs peaked at 2:17 ET (4212.75).  The ensuing decline ended an hour later.  ESMs and European stocks then traded sideways in a modest range until a modest spurt higher at the NYSE open.
Pompeo-led effort to hunt down Covid lab theory shut down by Biden administration over concerns about quality of evidence [Team Biden & its stooges craft an excuse to mitigate outrage over the news.]
https://www.cnn.com/2021/05/25/politics/biden-shut-down-trump-effort-coronavirus-chinese-lab/index.html

GOP Sen. @TomCottonAR: The Biden administration *shut down* the work to identify the origins of COVID.   If “quality of the evidence” was the problem, why hasn’t the Biden Team launched their own investigation?

@HansMahnckeSuppressing the lab leak story, and deplatforming and vilifying anyone who spoke out had nothing to do with science, Lancet, anti-racism, etc. It was entirely about Trump.  Just imagine if instead of Trump it had been Biden or Obama who said in April 2020 that it was the lab.
    The media suppressing the lab leak story and promoting the Russia collusion hoax are two sides of the same coin. They knew that a lab leak was entirely feasible just as they knew that Steele’s dossier was a bunch of lies. They didn’t report what they knew but what harmed Trump.

@EricMMatheny: Did Fauci know about the research taking place at the Wuhan Institute of Virology? Did he know that the Chinese Communist government was tweaking SARS viruses to increase both contagiousness and lethality? Did he approve the funding as head of NIAID? Special Counsel is needed.

@barnes_law: “This right to refuse emergency, experimental vaccines, such as the Covid-19 vaccine, implements the internationally agreed legal requirement of Informed Consent established in the Nuremberg Code of 1947.”   https://vivabarneslaw.locals.com/post/689810/vaccine-mandate-employee-letter-examp

Facebook trying to censor posts from COVID-19 vaccine skeptics: report https://t.co/D7JD4AlW9I

17,000 tweet ‘Hitler was right,’ and Big Tech barely reacts https://t.co/nzU6NBcnqQ

83% of Americans Are Belt Tightening Due to Inflation Pressures
    1.   77% of Americans were aware of an acceleration of the inflation rate. In fact, 54% were very concerned about it. 42% plan to tighten their budgets lightly and 41% plan to tighten their budgets significantly.
    2.   86% indicated they experience price increases on everyday goods and services. Notably, they pointed to on groceries (96%), gas (93%), dining out (57%), and clothing (42%)…
https://www.forbes.com/sites/walterloeb/2021/05/24/83-of-americans-are-belt-tightening-due-to-inflation-pressures/

@EmeraldRobinson: Did you know there’s an audit of ballots in New Hampshire?  Did you know: a majority of ballots had been folded & were creased? Did you know: as many as 60% of the folded ballots were improperly counted by the machines?  Did you know: the audit was ordered because the machines did not count the votes from the physical ballots accurately?  Did you know: the first recount showed R votes were undercounted while D votes were overcounted? Only a hand recount caught the errors.
    It’s interesting that the counting errors in New Hampshire all went the same way that the counting errors in Antrim County, Michigan went & what do we think we are going to find once the Maricopa audit is complete?

@JohnBasham: St Louis’ murder rate, already highest in US, soared last year & in response the Democrat mayor vows to Defund The Police. Mayor @tishaura Jones’ budget proposal would close a city jail, divert $4M from police, & cut nearly 100 police jobshttps://t.co/Fd7Ho423FN

@charliekirk11: Murder Rates by City 2021 YTD vs 2020Minneapolis—Up 40%; Chicago—Up 22%; Portland—Up 800%; Washington DC—Up 35%; Philadelphia—Up 40%; Los Angeles—Up 27% What do you think all of these cities have in common?

@RealCandaceO:Big Pharma tells pregnant women that one glass of wine or unpasteurized juice (which they make no profits from) can be harmful to their unborn child—but an experimental, non-fda approved vaccine with no long term trials (which earns them billions) is perfectly safe.  Trust the science.
China to strengthen commodity price controls in five-year plan
The country will also step up monitoring and analysis of commodity prices such as crude oil, natural gas and soybean, the National Development and Reform Commission (NDRC) said in a statement.
    “(Local governments) should study and judge the import impact in depth, promptly make suggestions… (on matters) such as reserves, import and export, fiscal and taxation, and financial adjustment measures,” the statement said.  The NDRC also said authorities would “reasonably adjust cotton target price levels” and stick to the country’s minimum purchase price policy framework for rice and wheat, it said…  https://www.reuters.com/article/us-china-commodities-idUSKCN2D60A2

Commodities, ex-precious metals declined, some sharply (grains) on Tuesday.  Bonds rallied sharply on the prospect that China is killing commodity inflation.

The Conference Board’s Consumer Confidence unexpectedly sank to 117.2 from a sharply revised lower 117.5 (originally 121.7) in April.  Expectations plunged to 99.1 from 107.9 (originally 109.8).

The Big Read US Dollar – The demise of the dollar? Reserve currencies in the era of ‘going big’
The extraordinary stimulus measures in the US could undermine confidence in the greenback if inflation takes off… Today, with the US accounting for less than a quarter of global gross domestic product it makes less sense and leads to the accusation, levelled by the then French finance minister Giscard d’Estaing in the 1960s, of the “exorbitant privilege” whereby the US government can borrow more cheaply because of the greater demand for its IOUs arising from the reserve currency role…
    The threats to the dollar to watch are US fiscal profligacy and monetary debasement.
https://www.ft.com/content/408d4065-f66d-4368-9095-c6a8743b0d01
@RealCandaceO:Big Pharma tells pregnant women that one glass of wine or unpasteurized juice (which they make no profits from) can be harmful to their unborn child—but an experimental, non-fda approved vaccine with no long term trials (which earns them billions) is perfect

 

END

Let us end Wednesday night with this interview of Peter Schiff and Greg Hunter.

Greg Hunter/Peter Schiff

Dollar is Going to Collapse – Peter Schiff

By Greg Hunter’s USAWatchdog.com

Money manager and economist Peter Schiff says all the debt and money printing by the Fed will, ultimately, get down to one thing and that is the U.S. dollar.  The Fed has been getting away with this turbocharged money creation policy since the last financial meltdown in 2008.  In 2021, the consequences of “money for nothing” are finally kicking in.  Schiff explains, “The inflation crisis and the dollar crisis . . . are a much bigger economic event that will have a much greater impact than the 2008 financial crisis.  I have been warning about the consequences of all this money printing for years and years.  Now, finally, you are really starting to see that.  The government has been able to bury the amount of inflation they have been creating because of the CPI (Consumer Price Index).  The CPI doesn’t really capture the degree that prices are going up.  So, it creates a false sense of confidence that we haven’t had inflation, but now prices are rising so rapidly that even the government’s doctored CPI number can’t hide it. . . . We are getting these huge price increases across the board.”

How worried should people be about all the Fed money printing?  Schiff warns, “The Fed says there’s nothing to worry about.  Inflation is just going to magically come back down.  We are still going to be at 2% inflation.  So, we can keep the printing presses going with the pedal to the metal, and we are going to have these huge deficits.  We are going to print all this money, and there is nothing to worry about.  Well, you better worry!  This crisis will be much worse than 2008, and unlike 2008, nobody’s getting a bailout.  The reason the Fed could do the bailouts is the Fed could print the money to fund the bailout.  The next crisis is the dollar that is going to be in crisis. The dollar is going to be crashing, and they can’t bail anybody out from a dollar crash because all they can do is print more dollars, which will just accelerate the collapse of the dollar.”

The warning is simple.  Schiff says, “This is a completely dysfunctional economy that is going to collapse when the bottom drops out of the dollar.  I think that crisis is close at hand.”

In closing, Schiff points out, “Gold and silver are very cheap.  Everything is in a bubble except gold and silver because gold and silver are real money. . . . We are going to see all these bubbles deflate in terms of gold and silver.  The price of stocks, real estate and crypto currencies are all going to come way down in terms of gold and silver. . . . Get your gold and silver, physical coins, buy that now while you can still get it.  In the future, not only are the prices going to go way up for the metal, but the premium on the coin is going to go way up in addition to that.”

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with money manager and economic expert Peter Schiff, founder of Euro Pacific Capital and Schiff Gold.

 
 
 
 

I WILL SEE  YOU THURSDAY NIGHT

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