JUNE 2//GOLD UP $4.85 TO $1207.65//SILVER UP 12 CENTS TO $28.13//GOLD STANDING AT THE COMEX FOR JUNE: 68.82 TONNES/SILVER OZ STANDING; A LARGE 12.6 MILLION OZ (OFF DELIVERY MONTH)//CORONAVIRUS UPDATES/VACCINE UPDATES/INVERMECTIN ERADICATES COVID IN DELHI INDIA//IRAN DEAL A LITTLE CLOSER, BUT IRAN’S HUGE BATTLE SHIP SUNK IN A MAJOR FIRE AND THEIR HUGE REFINERY IN TEHRAN SUBJECT TO A MYSTERIOUS FIRE//TURKEY’S LIRA PLUMMETS TO 8.60 AS ERDOGAN TELLS ITS CENTRAL BANKER TO LOWER INTEREST RATES TO FIGHT INFLATION (??) ALASDAIR MACLEOD ON THE BASEL III TALKS WITH GREG HUNTER//SWAMP STORIES FOR YOU TONIGHT//

 GOLD:$1907.65   UP $4.85   The quote is London spot price

Silver:$28.13  UP 12 CENTS   London spot price ( cash market)

your data.

 
 
 

Closing access prices:  London spot

i)Gold : $1908.10 LONDON SPOT  4:30 pm

ii)SILVER:  $28.16//LONDON SPOT  4:30 pm

 

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

 

 

PLATINUM  $1195.11  UP $3.50

PALLADIUM: 2860.11 UP $9.59  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. 

may 28 James McShirley

Gold Eagle premiums to spot have further widened to +$225 and up. The U.S. Mint has essentially declared force majeure with silver coin production due to “global shortages.” Never mind LEGALLY the U.S. Mint should be in a bidding war to the moon if necessary to procure adequate silver supplies. That’s what is happening with lumber, and should be happening with silver as well. The mandatory lockdowns (the gold/silver suppression variety, not virus) are reaching extreme pressures. The days of both metals spinning in place all day are drawing to a close. The sound and fury of hyperinflation is becoming readily apparent to even the people who are drinking the MSM Kool- Aid. MOPE is lost, and the “inflation expectations” that the Fed SO cares about is soaring. It’s prime time, gold and silver time. Let ‘er rip.

James Mc

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  663/3486

EXCHANGE: COMEX
CONTRACT: JUNE 2021 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,902.500000000 USD
INTENT DATE: 05/28/2021 DELIVERY DATE: 06/02/2021
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 H GOLDMAN 975
092 C DEUTSCHE BANK 36
099 H DB AG 416
118 H MACQUARIE FUT 136
132 C SG AMERICAS 2
323 C HSBC 22
323 H HSBC 245
355 C CREDIT SUISSE 9
435 H SCOTIA CAPITAL 124
523 H INTERACTIVE BRO 66
555 H BNP PARIBAS SEC 202
624 H BOFA SECURITIES 184
657 C MORGAN STANLEY 13
657 H MORGAN STANLEY 16
661 C JP MORGAN 912 663
661 H JP MORGAN 2176
685 C RJ OBRIEN 1
686 C STONEX FINANCIA 32 15
690 C ABN AMRO 100 16
709 C BARCLAYS 248
732 C RBC CAP MARKETS 7 1
737 C ADVANTAGE 86 59
800 C MAREX SPEC 57 17
905 C ADM 46 90
____________________________________________________________________________________________

TOTAL: 3,486 3,486
MONTH TO DATE: 16,185

ISSUED: 912

Goldman Sachs:  stopped: 3975

 
 

NUMBER OF NOTICES FILED TODAY FOR  JUNE. CONTRACT: 3,486 NOTICE(S) FOR 348,600 OZ  (10.84 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  16,185 NOTICES FOR 1,618,500 OZ  (50.342 tonnes) 

SILVER//MAY CONTRACT

145 NOTICE(S) FILED TODAY FOR 725,000  OZ/

total number of notices filed so far this month 2176  :  for 10,880,000  oz

 

BITCOIN MORNING QUOTE  $37,335  UP1370  DOLLARS 

 

BITCOIN AFTERNOON QUOTE.:$37,901 UP 1936 DOLLARS

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GLD AND SLV INVENTORIES:

GLD AND SLV INVENTORIES:

Gold

WITH GOLD UP $4.84 AND NO PHYSICAL TO BE FOUND ANYWHERE:

WITH ALL REFINER CLOSED//MEXICO ORDERING ALL MINES SHUT:   WHERE ARE THEY GETTING THE “PHYSICAL?STRANGE:  NO CHANGES IN GOLD INVENTORY AT THE GLD

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//  A DEPOSIT OF 2.62 TONNES OF PAPER GOLD INTO THE GLD

 

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

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

THIS IS A MASSIVE FRAUD!!

GLD  1045.83 TONNES OF GOLD//

Silver

AND WITH NO SILVER AROUND  TODAY: WITH SILVER UP 12 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 178.78 UP $0.88 OR  0.49%

XXXXXXXXXXXXX

SLV closing price NYSE 26.15 UP $0.31 OR 1.18%

XXXXXXXXXXXXXXXXXXXXXXXXX

 
 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Let us have a look at the data for today

THE COMEX OI IN SILVER ROSE BY A STRONG SIZED 1082 CONTRACTS FROM 181,224 UP TO 182,312, AND CLOSER TO THE NEW RECORD OF 244,710, SET FEB 25/2020. THE STRONG GAIN IN OI OCCURRED DESPITE OUR TINY  $0.10 GAIN IN SILVER PRICING AT THE COMEX  ON TUESDAY. IT SEEMS THAT THE GAIN IN COMEX OI IS PRIMARILY DUE TO HUMONGOUS BANKER AND ALGO  SHORT COVERING AS OUR BANKER FRIENDS ARE GETTING QUITE SCARED OF BASEL III COMING JUNE 28/2021 !//STRONG REDDIT RAPTOR BUYING//.. COUPLED AGAINST A STRONG EXCHANGE FOR PHYSICAL ISSUANCE. WE ALSO  HAD ZERO LONG LIQUIDATION 

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

THE DIFFERENTIAL FROM PRELIMINARY OI TO FINAL OI IN SILVER TODAY:   81 CONTRACTS.

WE WERE  NOTIFIED  THAT WE HAD A STRONG  NUMBER OF  COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: 1102,, AS WE HAD THE FOLLOWING ISSUANCE:, JUNE: 0 JULY 1102 AND SEPT 0 ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE 1102 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 FINAL STANDING FOR APRIL

36.365 MILLION OZ FINAL STANDING FOR MAY 

12.590 MILLION OZ INITIAL STANDING FOR JUNE

 

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 $0.10).OUR OFFICIAL SECTOR/BANKERS WERE ALSO UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS WITH TUESDAY’S TRADING.  WE HAD A STRONG GAIN OF 2190 CONTRACTS ON OUR TWO EXCHANGES.  THE GAIN WAS DUE TO i) HUGE BANKER/ALGO SHORT COVERING// WE ALSO HAD  ii) STRONG REDDIT RAPTOR BUYING//.    iii)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS iiii) A VERY STRONG INITIAL SILVER STANDING FOR COMEX SILVER MEASURING AT 11.110 MILLION OZ FOLLOWED BY A HUGE QUEUE  JUMP OF 765,000 ON DAY 3 OF THE DELIVERY CYCLE//  v) STRONG 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

 

JUNE

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

1777 CONTRACTS (FOR 3 TRADING DAY(S) TOTAL 1777 CONTRACTS) OR 8.885 MILLION OZ: (AVERAGE PER DAY: 592 CONTRACTS OR 1.776 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JUNE: 8.885  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: 137.83 MILLION OZ

 

JUNE:  8.885 MILLION OZ//

 

RESULT: WE HAD A STRONG INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1088, DESPITE  OUR TINY  $0.10 GAIN IN SILVER PRICING AT THE COMEX ///TUESDAY .…THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1102 CONTRACTS WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS.

TODAY WE HAD A VERY STRONG SIZED GAIN  OF 2271 OI CONTRACTS ON THE TWO EXCHANGES (DESPITE OUR SMALL $0.10 GAIN IN PRICE)//THE DOMINANT FEATURE TODAY// HUGE BANKER SHORTCOVERING/  AND A VERY STRONG INITIAL SILVER OZ STANDING FOR JUNE. (11.110 MILLION OZ FOLLOWED BY ANOTHER MASSIVE QUEUE JUMP OF 765,000 OZ AS THE NEW TOTAL OF SILVER STANDING REACHES 12.590 MILLION OZ. 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e  1102  OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s)TOGETHER WITH A STRONG SIZED INCREASE OF 1088 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH OUR $0.10 GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $28.01//TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

WE HAD 100 NOTICES FILED TODAY FOR 500,000 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 STRONG SIZED SIZED 7036 CONTRACTS TO 491,764 ,,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:   2536 CONTRACTS.

THE HUGE SIZED DECREASE IN COMEX OI CAME DESPITE OUR RISE IN PRICE  OF $0.10///COMEX GOLD TRADING//TUESDAY.AS IN SILVER WE MUST HAVE HAD HUGE BANKER/ALGO SHORT COVERING ACCOMPANYING OUR FAIR SIZED EXCHANGE FOR  PHYSICAL ISSUANCE. WE MAY HAVE ALSO HAD SOME LONG LIQUIDATION AS, WE HAD A SMALL LOSS ON OUR TWO EXCHANGES OF 2347 CONTRACTS. I WOULD EXPECT THAT THE MAJORITY OF THE LOSS IS DUE TO BANKERS COVERING THEIR LOSSES DUE TO BASEIII IMPLEMENTATION LATE THIS MONTH.  WE ALSO HAD A HUGE INITIAL STANDING IN GOLD TONNAGE FOR JUNE AT 69.73 TONNES BUT THAT FOLLOWED BY FIRST A STRANGE GAIN OF 39,900 OZ BUT THAT WAS FOLLOWED BY A LOSS OF 68,200 OZ ON A DAY 3.  THE CROOKS ARE A LITTLE MIXED UP WITH THEIR PAPERWORK

NEW TOTAL OF GOLD TONNAGE STANDING FOR JUNE:  68.85 TONNES/

 

YET ALL OF..THIS HAPPENED WITH OUR RISE IN PRICE OF $0.10 WITH RESPECT TO TUESDAY’S TRADING

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

WE HAD  A SMALL SIZED LOSS OF 2347 OI CONTRACTS (7.6300 TONNES) ON OUR TWO EXCHANGES

 

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A FAIR SIZED 4689 CONTRACTS:

CONTRACT  AND JUNE:  0; AUGUST: 4689  ALL OTHER MONTHS ZERO//TOTAL: 4689 The NEW COMEX OI for the gold complex rests at 489,198. 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 SMALL SIZED DECREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2347 CONTRACTS:  7036 CONTRACTS DECREASED AT THE COMEX AND 4689 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 2347 CONTRACTS OF 7.300 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES

WE HAD A FAIR SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (4689) ACCOMPANYING THE FAIR SIZED LOSS IN COMEX OI (7036 OI): TOTAL LOSS IN THE TWO EXCHANGES:  2347 CONTRACTS. WE NO DOUBT HAD 1) HUGE BANKER SHORT COVERING/BIS MANIPULATION!, ADDITIONAL SPREADER LIQUIDATION, AS OUR BANKERS ARE RUNNING FROM DODGE AND CONSIDERABLE ALGO SHORT COVERING ,2.) STRONG INITIAL STANDING AT THE GOLD COMEX FOR JUNE AT 69.730 TONNES, BUT FOLLOWED BY A 692,000 OZ MORPHING INTO LONDON DAY 3//NEW COMEX TOTALS 68.82 TONNES //3) ZERO LONG LIQUIDATION,  /// ;4) HUGE COMEX OI LOSS AND 5) FAIR ISSUANCE OF EXCHANGE FOR PHYSICAL AND ….ALL OF THIS HAPPENED WITH OUR GAIN IN GOLD PRICE TRADING TUESDAY//$0.10!!.

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

JUNE

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JUNE : 6160, CONTRACTS OR 616,000 oz OR 19.160 TONNES (3 TRADING DAY(S) AND THUS AVERAGING: 2053 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 3 TRADING DAY(S) IN  TONNES: 19.160 TONNES

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

THUS EFP TRANSFERS REPRESENTS 19.160/3550 x 100% TONNES =0.53% 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:        250.15 TONNES  (NOW DRAMATICALLY INCREASING AGAIN)

JUNE:      19.160 TONNES

 

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 1088 CONTRACTS FROM 181,764 UP TO 182,312 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 1102 CONTRACTS

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

 JUNE: 0, JULY 1102: ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE:  1102 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 1088 CONTRACTS AND ADD TO THE 1102 OI TRANSFERRED TO LONDON THROUGH EFP’S,WE OBTAIN A STRONG SIZED GAIN OF 2190 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 10.955 MILLION  OZ, OCCURRED WITH OUR $0.10 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

)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 27.58 PTS OR 0.76%   //Hang Sang CLOSED DOWN 170.38 PTS OR 0.58%      /The Nikkei closed UP 138.80 pts or 0.46%  //Australia’s all ordinaires CLOSED UP 1.04%

/Chinese yuan (ONSHORE) closed DOWN AT 6.3846 /Oil DOWN TO 68.26 dollars per barrel for WTI and 70.83 for Brent. Stocks in Europe OPENED ALL GREEN   //  ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.3846. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.3843   : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  WEAKER 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 STRONG SIZED 7036 CONTRACTS TO 489,198 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 TINY GAIN OF $0.10 IN GOLD PRICING TUESDAY’S COMEX TRADING. WE ALSO HAD A FAIR EFP ISSUANCE (4678 CONTRACTS). …AS THEY WERE PAID HANDSOMELY  NOT TO TAKE DELIVERY AT THE COMEX AND SETTLE FOR CASH.

 

WE NORMALLY HAVE WITNESSED  EXCHANGE FOR PHYSICALS ISSUED BEING SMALL AS IT JUST TOO COSTLY FOR THEM TO CONTINUE SERVICING THE COSTS OF SERIAL FORWARDS CIRCULATING IN LONDON. HOWEVER, MUCH TO THE ANNOYANCE OF OUR BANKERS, THE COMEX IS THE SCENE OF AN ASSAULT ON GOLD AS LONDONERS, NOT BEING ABLE TO FIND ANY PHYSICAL ON THAT SIDE OF THE POND, EXERCISE THESE CIRCULATING EXCHANGE FOR PHYSICALS IN LONDON AND FORCING DELIVERY OF REAL METAL OVER HERE AS THE OBLIGATION STILL RESTS WITH NEW YORK BANKERS. IT SEEMS THAT ARE BANKERS FRIENDS ARE EXERCISING EFP’S FROM LONDON AND NOW THEY ARE LOATHE TO ISSUE NEW ONES.  

 

(SEE BELOW)

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

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW MOVING TO THE VERY ACTIVE DELIVERY MONTH OF JUNE..  THE CME REPORTS THAT THE BANKERS ISSUED A FAIR SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 4689 EFP CONTRACTS WERE ISSUED:  ;: , JUNE:  0 & JULY 0 & AUGUST: 4689 AND THEN DECEMBER:  0 CONTRACTS & ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 4689  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 SMALL SIZED  2347 TOTAL CONTRACTS IN THAT 4689 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A STRONG SIZED COMEX OI OF 7036 CONTRATS. WE HAVE A HUGE AMOUNT OF GOLD TONNAGE STANDING FOR JUNE   (68.85) WHICH FOLLOWED MAY (5.77 TONNES FOLLOWING  (95.331 TONNES) IN APRIL, WHICH FOLLOWED MARCH:  (30.205 TONNES) WHICH FOLLOWED FEB (113.424 TONNES)  WHICH FOLLOWED OUR STRONG LEVEL JAN 2021 GOLD . ((6.500 TONNES).  

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $0.10)., AND MAYBE THEY  WERE SUCCESSFUL IN FLEECINGSOME LONGS AS WE HAD A SMALL SIZED LOSS ON OUR TWO EXCHANGES OF 2347 CONTRACTS. THE TOTAL LOSS ON THE TWO EXCHANGES REGISTERED 7.6300 TONNES,ACCOMPANYING OUR HUGE GOLD TONNAGE STANDING FOR JUNE (68.85 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 2566 CONTRACTS FROM COMEX TRADES. THESE WERE REMOVED AFTER TRADING ENDED LAST NIGHT. 

 

NET LOSS ON THE TWO EXCHANGES :: 2347 CONTRACTS OR  234700 OZ OR  7.300  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:  489,198 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 48.91 MILLION OZ/32,150 OZ PER TONNE =  1521 TONNES

 

THE COMEX OPEN INTEREST REPRESENTS 1521/2200 OR 69.13% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 
 

Trading Volumes on the COMEX GOLD TODAY:162,507contracts// volume / extremely poor /   //

CONFIRMED COMEX VOL. FOR YESTERDAY:  302,317 contracts// –fair/good 

// //most of our traders have left for London

 

JUNE 2 /2021

 
INITIAL STANDINGS FOR JUNE COMEX GOLD
 
 
 
 
 
 
 
 
 
 
 
 
 
Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
 
 
1605.65 OZ
HSBC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits to the Dealer Inventory in oz  
Deposits to the Customer Inventory, in oz
nil OZ
 
HSBC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No of oz served (contracts) today
678  notice(s)
 
67,800 OZ
(2.1088 TONNES
No of oz to be served (notices)
5263 contracts
 526300oz)
 
16.370 TONNES
 
 
Total monthly oz gold served (contracts) so far this month
16,863 notices
1,686,300 OZ
52.451 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 0 deposit into the customer account
 
 
 
TOTAL CUSTOMER DEPOSITS: nil  oz
 
 
 
 
 
 
We had 1 withdrawals….
 
i) Out of HSBC: 1605.65 oz 
 
 
 
 
 
 
total withdrawals 1605.65 oz
 
a net: .0499 tonnes leaves the comex
 
 
 
 
 
 
 
 

We had  1  kilobar transactions (1 out of 2 transactions)

ADJUSTMENTS  1// customer  to  dealer

i)Manfra:  48,226.500  (1500 kilobars)

 

 
 
 
 
 
 
 
 

The front month of JUNE registered a total of 5951 CONTRACTS for a LOSS of 4176 contracts. We had 3486 notices filed on TUESDAY, so we LOST 682  contracts or an additional 68200 oz(2.121 TONNES)  will NOT stand for delivery in this very active delivery month of June. Yesterday I wrote the following when describing the gain in tonnage: “very unusual: in the preliminary numbers we lost contracts but that was changed in the final numbers for a gain as additional longs decided to try for metal over here.”  It turns out that that was a lie as the crooks must have corrected who left for London and who stayed. On day No 3 we lost 682 contracts or 68200 oz will not stand for delivery as they accepted a fiat bonus and then they were cashed out.

 

 
 
 
 
JULY gained 65 CONTRACTS TO STAND AT 2351.
 
AUGUST LOST A LARGE 4376 CONTRACTS DOWN TO 396,676. 
 

We had 678 notice(s) filed today for 67,800  oz

FOR THE JUNE 2021 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and  594 notices were issued from their client or customer account. The total of all issuance by all participants equates to 678  contract(s) of which 0  notices were stopped (received) by j.P. Morgan dealer and 192 notice(s) was (were) stopped/ Received) by J.P.Morgan//customer account and 925  notices received (stopped) by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the JUNE /2021. contract month, we take the total number of notices filed so far for the month (16,863) x 100 oz , to which we add the difference between the open interest for the front month of  (JUNE:  5951 CONTRACTS ) minus the number of notices served upon today 678 x 100 oz per contract equals 2,213,600 OZ OR 68.85 TONNES) the number of ounces standing in this active month of JUNE

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

No of notices filed so far (16,863) x 100 oz+  5951)  OI for the front month minus the number of notices served upon today (678} x 100 oz} which equals 2,213,600 oz standing OR 68.85 TONNES in this  active delivery month of MAY.

We LOST a huge 682 contracts or an additional 68,200 oz will NOT stand for metal over on this side of the pond. THE CROOKS CANNOT GET IT STRAIGHT AS TO WHO MOVES TO LONDON AND WHO STAYS 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

276,177.249, oz  JPM  8.59 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:  2,172,929.094 oz                                     67.58 tonnes

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 502.96 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 68.85 tonnes

CALCULATION OF REGISTERED THAT CAN BE SETTLED UPON:

total registered or dealer  18,391,214.03 oz or 572.04 tonnes
 
 
total weight of pledged:  2,172,929.094 oz or 67.58 tonnes
 
thus:
 
registered gold that can be used to settle upon: 16,218,285.0 (504,45 tonnes) 
 
 
 
 
true registered gold  (total registered – pledged tonnes  16,218,285.0 (504.45 tonnes)
 
total eligible gold: 16,174,062.742 oz   (503.08 tonnes)
 
 
total registered, pledged  and eligible (customer) gold 34,565,276.772 oz or 1,075.12 tonnes (INCLUDES 4 GC GOLD)
 
 

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  948.78 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

 

 
 
JUNE 2/2021
 
 

 

And now for the wild silver comex results

INITIAL STANDING FOR SILVER//June

June. SILVER COMEX CONTRACT MONTH//INITIAL STANDING

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
1,017,029.240 oz
 
 
 
 
 
CNT
HSBC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits to the Dealer Inventory
nil oz
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits to the Customer Inventory
nil oz
 
 
 
 
 
 
 
 
 
 
whatever enters the comex faults
leaves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No of oz served today (contracts)
100
 
CONTRACT(S)
(500,000 OZ)
 
No of oz to be served (notices)
242 contracts
 (1,210,000 oz)
Total monthly oz silver served (contracts)  2276 contracts

 

11,380,000 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)

i
 
 
 
 
 
 
 
 

JPMorgan now has 187.007 million oz of  total silver inventory or 53.04% of all official comex silver. (187.007 million/352.556 million

total customer deposits today nil   oz

we had 1 withdrawals

i)Out of CNT 976,913.330 oz

ii)Out of HSBC:  40,115.910 oz

 
 
 
 
 

total withdrawals  1,017,029.240   oz

 
 

adjustments// 0

 

 
 

Total dealer(registered) silver: 110.285 million oz

total registered and eligible silver:  352.556 million oz

a net 1.017 million oz LEAVES the comex silver vaults.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 
 
 
JUNE ROSE IN CONTRACTS BY 8 CONTRACTS UP TO 342. WE HAD 145 NOTICES SERVED ON TUESDAY SO WE GAINED A HUGE 153 CONTRACTS OR 765,000 ADDITIONAL OZ WILL STAND IN THIS NON ACTIVE DELIVERY MONTH OF JUNE AS QUEUE JUMPING BY OUR BANKERS RETURNED IN EARNEST (AFTER AN HIATUS OF A COUPLE OF MONTHS) LOOKING FOR SILVER METAL ON THIS SIDE OF THE POND.
 
 
 
 
 

July LOST 440 contracts UP to 143,132 contracts

AUGUST GAINED ANOTHER 6 CONTRACTS TO STAND AT 11

SEPTEMBER GAINED 1330 CONTRACTS UP TO 19,942

 
No of notices filed today: 100 CONTRACTS for 500,000 oz
 

To calculate the number of silver ounces that will stand for delivery in JUNE. we take the total number of notices filed for the month so far at  2276 x 5,000 oz = 11,380,000 oz to which we add the difference between the open interest for the front month of JUNE (342) and the number of notices served upon today 100 x (5000 oz) equals the number of ounces standing.

Thus the JUNE standings for silver for the JUNE/2021 contract month: 2276 (notices served so far) x 5000 oz + OI for front month of JUNE (342)  – number of notices served upon today (100) x 5000 oz of silver standing for the Jan contract month .equals 12,590,000 oz. ..VERY STRONG FOR A NON ACTIVE JUNE MONTH. 

We gained 765,000 additional oz standing in June as they refused to morph into London based forwards.

 

 

TODAY’S ESTIMATED SILVER VOLUME  55,882 CONTRACTS // volume WEAK// 

 

FOR YESTERDAY 116,876  ,CONFIRMED VOLUME/  VERY STRONG//

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

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

end

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  FALLS TO -0.21% (JUNE 2/2021)

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 -0.21% nav   (JUNE 2

/2021 )

 

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

NAV $20.29 TRADING $20.11//NEGATIVE 0.89

 

END

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

JUNE 2/WITH GOLD UP $4.85 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/: A DEPOSIT OF 2.62 TONNES OF PAPER GOLD INTO THE GLD///INVENTORY RESTS AT 1045.83 TONNES/

JUNE 1/WITH GOLD UP $0.10 TODAY; NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1043.21  TONNES

MAY 28/WITH GOLD UP $6.85 TODAY:A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/; A WITHDRAWAL OF .87 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 1043.21 TONNES

MAY 27/WITH GOLD DOWN $5.35 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1044.08 TONNES

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:

 

JUNE 2 / GLD INVENTORY 1045.83 tonnes

LAST;  1067 TRADING DAYS:   +120.96 TONNES HAVE BEEN ADDED THE GLD

LAST 967 TRADING DAYS// +  295.48 TONNES  HAVE NOW  BEEN ADDED INTO  THE GLD INVENTORY

end

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

JUNE 2/WITH SILVER UP  12 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 576.673 MILION OZ.

JUNE 1//WITH SILVER UP 10 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 576.673 MILLION OZ/

MAY 28/WITH SILVER UP 8 CENTS TODAY:NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 576.673 MILLION OZ/

MAY 27/WITH SILVER UP 3 CENTS TODAY//NO CHANGES IN SILVER INVENTORY AT THE SLV..INVENTORY RESTS AT 576.673 MILLION OZ.

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 DEPOSIT OF 1.114 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 573.188 MILLION OZ.

XXXXXXXXXXXXXX

SLV INVENTORY RESTS TONIGHT AT

JUNE 2/2021
576.673 MILLION OZ

 
 

PHYSICAL GOLD/SILVER STORIES
i)Peter Schiff

Peter Schiff: Traders Starting To Realize High Inflation Is Bullish For Gold

 
WEDNESDAY, JUN 02, 2021 – 06:30 AM

Via SchiffGold.com,

For months, the markets have responded to inflationary pressures by piling into dollars and selling gold. They’ve taken this counterintuitive approach because they believe the Fed will tighten monetary policy to fight inflation sooner rather than later. But we’re starting to see a shift in sentiment. As Peter Schiff explains in a recent podcast, traders seem to be realizing that inflation might be here to stay, and that is bullish for gold and bearish for the dollar.

Last month, we started to see a rotation in the stock market with investors moving out of the “hyped up, overvalued” momentum stocks into more traditional value-oriented, dividend-paying stocks that are considered better inflationary hedges. The NASDAQ was the only index down on the month. The Dow up about 2% in May while the NASDAQ saw its biggest decline since last October.

The reason that you saw weakness in the NASDAQ and strength in the Dow is because the Dow Jones is where you can find more value-oriented stocks. Of course, value is a relative term. I mean, they may not be value stocks in an absolute sense that they’re real bargains. But they’re value relative to these hyped-up momentum stocks.”

You can also see the rotation when you compare foreign and domestic stocks. Foreign stocks substantially outperformed compared to the S&P and the Dow Jones.

The reason for that is because foreign markets have a lot more value-oriented stocks than the US. America leads the world in the over-priced momentum stocks. And so, when those stocks were in vogue and everybody was buying them the US market was the best game in town. But now that we’re rotating away from those names and people want out of momentum and into the value, they’re also getting out of the US market into foreign markets, which also means they’re getting out of dollars.”

The dollar index dropped for the second consecutive month in May. More importantly, this is the lowest monthly close for the US dollar index since 2014.

Meanwhile, gold and silver had a big month in May. Both metals were up about 7.5%. Gold had its best monthly gain since last July and closed the month above $1,900.

Peter said the most significant development in the gold market was its reaction to the hotter than expected increase in the personal consumption index. This key inflation indicator was up 3.6% in April, much higher than expected. The year-over-year core PCI was up 3.1%, the biggest rise in 29 years.

As soon as these numbers came out, traders went to their typical knee-jerk response, buying dollars and selling gold. Gold dropped some $15 initially.

Of course, this is counterintuitive. High inflation numbers mean the dollar is losing value. It would make sense to sell dollars under these conditions. And it would also make sense to hedge that inflation by buying gold. But the markets are still looking to the Fed. They expect the central bank to try to rein in inflation by tightening monetary policy and raising interest rates.

But eventually, what traders are going to figure out, is that high inflation is not good for the dollar and bad for gold because the Fed is going to fight inflation by tightening policy — because the Fed is not going to fight inflation. It’s not going to tighten policy. And so, inflation is going to continue to erode away the value of those dollars. So, why would you buy them? You won’t. You will sell them and you will buy gold.”

Peter said there are some indications that traders are starting to wake up to this reality. After the initial selloff Friday, traders spent the rest of the day selling dollars and buying gold. The dollar surrendered almost all its morning post-inflation news gains and gold recouped all of its losses and ended up closing up on the day.

I think this is very significant because it shows to me that the traders are waking up to this reality that inflation is bearish for the dollar and bullish for gold, and they’re starting to realize that it doesn’t matter how much the Fed barks about its willingness or intentions or ability to fight inflation should it rear its head, the market is starting to realize that inflation isn’t going to be fought, that inflation is going to win by default because the Fed isn’t even going to try to fight it — because it can’t.”

If this is the case, we should see much bigger gains in the price of gold and silver.

END

OR

EGON VON GREYERZ//MATHEW PEIPENBURG

 

OR

ROSS NORMAN

ROSS NORMAN – Basel III and gold – Central bankers locking the fire exits.

June 2, 2021

Ross Norman

To a man with a hammer, everything looks like a nail, said Mark Twain. So it is that pundits have interpreted forthcoming Basel III rules as simply an opportunity to bash bullion banks and to assert that gold prices are going to the moon. Again … yawn.

Imagine for a moment that your cash at bank became “allocated” … that is to say your bank holds it in physical form and it moves from account to account to reflect every single transaction you make, instead of the current book entry system that allows debits and credits to be offset, cleared and settled overnight through a central agency that used to be called BACS. Yes, chaos would ensue … but assuming banks could manage, costs would rise dramatically, and that would be passed on to you. Madness you might think … why would regulators introduce something so retrograde and inefficient … herein lies the story behind the proposed Basel III changes and gold …

The Basel III rules on unallocated gold will require bullion banks to hold more High Quality Liquid Assets (HQLA) for longer periods of time to offset loans to their clients. It follows that for example gold miners who finance themselves with a gold loan (most do) will find it more difficult to secure funding and it will be more expensive to finance rendering many projects uneconomic or simply difficult to fund. Industrials such as jewellery fabricators, physical gold stockists and precious metals refineries who also lease metal will find those markets thinner and far, far more expensive. Shortages of physical will become a frequent occurrence, especially when you most want it as pipelines shrink. We don’t yet know for sure, but borrowing costs could likely double or treble. These sectors are very low margin, high cost businesses who are highly sensitive to cost increases and they will respond by keeping physical stocks of borrowed metal to an absolute minimum. Some will simply shut up shop. The outcome of the proposed rules is less about the existential issues around the professional market and actually about the broader sector becoming far smaller, less efficient and by extension far more expensive… and that’s what I believe the BIS wants to achieve. It is my belief the regulators are deliberately locking the fire exits in the theatre and simply looking to make gold less relevant. What next … reverse the decision of Jan 1 2000 and reintroduce VAT at 20% on investment gold across UK and continental Europe ?

We are in a time where significant fiat currency debasement looks to be upon us, and further financial repression a given … how else to relieve the massive debt burden crushing the economy ? … and to be effective the BIS needs to render alternatives less appealing. Financial innovation has given us a large number of alternative safe haven assets and it follows that as inflation takes grip, many savers could and would slip out from under the net. Gold is one of those go-to’s. Perhaps in that light, the war-on-cash and the rising rhetoric by central banks against alternative digital currencies makes sense.

Bullion banks under Basel III will in future have to set aside more HQLA in order provide unallocated metal, to oil the wheels of trade, especially around trade settlements. Bullion desks will approach their treasury colleagues for say US treasuries with a 13 month tenure (a HQLA needs to be over a year in tenure) to offset say a rolling 3 month gold lease to a jewellery fabricator and now be expected to pay handsomely for that funding … as costs rise … and this is the important bit … they will be passed onto clients. Without this consignment facility whatsoever the jewellery fabricator could find it difficult to hedge his risk or indeed the price swings in underlying metal prices could render him insolvent – on thin margins they might simply elect just shut up shop. Compromising the services that bullion banks provide will make being in gold less attractive right through the value chain … it would be reducing the lubricant from the machine. Unallocated gold has been necessary because, without it, physical bars will need to move between vaults and across borders to settle trades each day. The BIS seemingly wants to hamstring the bullion markets and we shall all pay the price for these new inefficiencies.

Likely this is price neutral, but renders the gold market less relevant as an alternative asset as pipelines shrink. Yes, perhaps a small number of unallocated positions will become allocated (forcing some buying) but this is small in size and there are many offsetting scenarios. More importantly a significant number of would- be institutional investors will be dissuaded from buying gold simply becomes the market is too small, spreads are too wide and the market shrinking … a lobster pot … easy in, but difficult out.

Yes, there is some irony that Central Bankers are themselves the largest single holders of physical gold at about 90,000 tonnes collectively and they will be rendering their own reserves much less liquid … and they do seem determined to shoot themselves in the foot … but, needs must … and such is the scale of the macro-problem.

In the 1970’s gold represented about 6% of total assets under management. Today it is about 0.5%. Expect that figure to fall further as gold becomes increasingly niche and less relevant.

Tragically too much attention has focused upon the narrow desire to bash bullion banks, which has served as an un-necessary distraction in that it is masking the real story being played out here…

In short, it my view that the contingent problems are not being fully evaluated … for want of a nail the shoe was lost; for want of a shoe the horse was lost; and for want of a horse the man was lost.

Ross Norman
CEO
Metals Daily Ltd

END

 
PAM AND RUSS MARTENS

Wall Street On Parade

-END-

Lawrie Williams

 

or

end

ii) Important gold commentaries courtesy of GATA/Chris Powell

Even with phony numbers inflation in Europe rose to 2% in Europe

(Arnold/London’s Financial Times/GATA)

Eurozone inflation tops ECB target for first time since 2018

 

 

 Section: Daily Dispatches

 

By Martin Arnold
Financial Times, London
Tuesday, June 1, 2021

Eurozone inflation rose to 2 percent in May, the first time the rate has surpassed the European Central Bank’s target in more than two years, complicating policymakers’ decision next week on whether to maintain its ultra-loose monetary policy.

The jump from 1.6 percent in April followed an even sharper acceleration of consumer price growth in the United States, which recently hit 4.2 percent. The eurozone’s increase is likely to fuel investors’ anxiety that central banks will bring forward the winding down of the vast monetary stimulus they launched last year in response to the coronavirus pandemic.

The ECB’s governing council will meet next week to decide whether to adjust its monetary policy — including its recently accelerated pace of bond buying — in response to signs that economic activity and prices are rising as Covid-19 lockdown measures are eased. …

… For the remainder of the report:

https://www.ft.com/content/1b075b3a-f307-44e0-b3a4-b1f3f267bea7

END

USA Gold talks about inflation ripping apart the globe but more importantly dwells on what Basel iii new rules will impact the price of gold positively.

(USAGold/GATA)

USAGold’s June ‘News & Views’ letter highlights likely impact of inflation and Basel 3

 

 

 Section: Daily Dispatches

 

11:12a ET Tuesday, June 1, 2021

Dear Friend of GATA and Gold:

“Inflation’s Surprise Spring Offensive” is the headlined on USAGold’s “News & Views” letter for June. But there are also sections on the recent strong demand for gold that has been vaulted at the Bank of England, the potential impact of the “Basel 3” regulations, and the usual interesting quotes.

The June “News & Views” letter is posted in the clear at USAGold here: 

https://www.usagold.com/nv1030june2021/

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

END

Peru’s elite are in panic at a prospect of a hard left victory in the new presidential election.  Peru is a strong commodity country producing lots of gold and copper.

(London’s Financial Times/GATA)

Peru’s elite in panic at prospect of hard-left victory in presidential election

 

 

 Section: Daily Dispatches

 

By Michael Stott
Financial Times, London
Tuesday, June 1, 2021

Ravaged by one of the world’s worst coronavirus outbreaks, wracked by political turmoil, scarred by corruption scandals and blighted by worsening poverty, Peru will choose its fourth president in under a year on June 6.

Described by many observers as a choice between the lesser of two evils, the second-round run-off election pits Pedro Castillo, a rural primary school teacher turned hard-left populist, against Keiko Fujimori, the widely disliked scion of an authoritarian president who ruled in the 1990s.

Panic has seized the Peruvian elite at the prospect of a win by Castillo, whose political party Free Peru is led by a Marxist advocating widespread nationalisation, higher taxes, a new “people’s constitution” and import substitution policies in the world’s No. 2 copper producer.

“Would you like to live in Cuba or Venezuela?” ask electronic billboards along a main highway in Lima, in a reference to Castillo. The sol fell to a historic low of 3.85 to the dollar last Wednesday as wealthier Peruvians rushed to dump the national currency and move their savings abroad.

“I have not seen capital flight this bad here in two decades,” one leading business figure told the Financial Times. …

… For the remainder of the report:

https://www.ft.com/content/bddb1bec-1c26-43d7-b465-08ad035169b8

END

Craig Hemek on gold…. 

Craig Hemke at Sprott Money: Gold price dips are ‘transitory,’ not inflation

 

 

 Section: Daily Dispatches

 

9:45p ET Tuesday, June 1, 2021

Dear Friend of GATA and Gold:

Inflation isn’t going to be “transitory,” as the Federal Reserve keeps insisting, but dips in the price of gold will be, Craig Hemke of the TF Metals Report writes tonight at Sprott Money.

The Federal Reserve soon will commandeer and suppress all interest rates with “yield-curve control,” Hemke writes, and this will be “incredibly bullish” for gold.

Hemke’s analysis is headlined “Gold Price Dips Are Transitory” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/blog/Gold-Price-Dips-Are-Transitory-Craig-Hemke-June-1-2021

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

END

Indonesia sees the light as they eye greater financial inclusion of a gold based blockchain system

(S and P Global/New York/GATA)

Indonesia eyes greater financial inclusion with gold-based blockchain system

 

 

 Section: Daily Dispatches

 

By Tracy Hu and Rebecca Isjwara
S&P Global, New York
Monday, May 31, 2021

The Indonesian government’s plan to launch a blockchain-based, precious metals-backed payments and savings platform outside the banking system will likely drive financial inclusion further in a country where about 51% of adults, or 95 million citizens, are unbanked.

Developed by Indonesia’s state-owned postal service, PT Pos, and foreign token provider Kinesis, PosGO Syariah is a Shariah-compliant mobile platform that allows users to trade gold and silver with physical delivery, as well as save, transact, and manage their wealth in digital tokens without bank accounts.

PosGO, supported by the country’s National Sharia Council, offers digital access to gold and is touted as the first Islamic mobile ecosystem business in Indonesia.

The supply of physical gold, which the developers believe will likely attract most volume due to affinity among the locals, comes from Kinesis’ partner and founder, Allocated Bullion Exchange, an online trading platform. Kinesis and PT Pos are building a vault to store the physical gold inside the country. Kinesis CEO Thomas Coughlin also heads the Allocated Bullion Exchange. …

… For the remainder of the report:

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/indonesia-eyes-greater-financial-inclusion-with-gold-based-blockchain-system-64423086

* * *

END

Other gold/silver related stories

INFLATION WATCH

 

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 6.3845 /

//OFFSHORE YUAN:  6.3843   /shanghai bourse CLOSED DOWN 27.58 PTS OR 0.76% 

HANG SANG CLOSED DOWN 170.38 PTS OR 0.58%  

2. Nikkei closed UP 138.80 PTS OR 0.46%

3. Europe stocks  ALL GREEN

 

USA dollar index  UP TO 90.03/Euro FALLS TO 1.2221

3b Japan 10 year bond yield: FALLS TO. +.0790/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.64/ 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:: 68.26 and Brent: 70.93

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

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 DOWN for WTI and DOWN FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.188%/Italian 10 Yr bond yield DOWN to 0.89% /SPAIN 10 YR BOND YIELD DOWN TO 0.46%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.10: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 0.82

3k Gold at $1905.90 silver at: 27.96   7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3l USA vs Russian rouble; (Russian rouble  DOWN 13/100 in roubles/dollar) 73.53

3m oil into the 68 dollar handle for WTI and 70 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 109.72 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 .9007 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0978 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 0.188%

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 1.609% early this morning. Thirty year rate at 2.280%

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

6.  TURKISH LIRA:  DOWN  TO 8.583.. DEADLY

Futures Stuck At 4200 Gamma Pin As Traders Fixate On Meme Stocks

 
WEDNESDAY, JUN 02, 2021 – 08:02 AM

One day after a concurrent ramp (then reversal) in stocks and the VIX prompted some confusion on trading desks, on Wednesday e-mini futs were stuck at the 4200 gamma pin…

… while European stocks rose and Asian markets fell as the tussle between economic optimism and inflation concern continues to play out in markets. Bitcoin and the dollar ticked up, oil and treasuries were mostly flat.

The S&P 500 slipped fractionally after three straight days of gains on Tuesday as losses in healthcare and technology stocks overshadowed gains in economically sensitive financials and energy after upbeat U.S. factory activity data. While futures were little changed – with Dow e-minis up 36 points, or 0.10%, S&P 500 e-minis up 0.75 points, or 0.02%, and Nasdaq 100 e-minis flat – ahead of key economic data due later this week, it was the latest leg of the surge in “meme stocks” that stood out in early moves on Wall Street on Wednesday. Here are some of the biggest U.S. movers today:

  • AMC Entertainment (AMC) extends rally in premarket trading, rising 31% to $44 after raising $230.5 million in a stock sale to Mudrick Capital Management. The stock has since faded much of its gains.
  • Cannabis stocks like Tilray (TLRY) and Aurora Cannabis (ACB) climb in premarket trading after Amazon.com (AMZN) said it will actively support proposed U.S. legislation that would legalize marijuana at the federal level.
  • Etsy Inc rose 1% after the company said it would acquire Depop, a privately held fashion marketplace, for $1.63 billion, as the online seller looks to attract Gen-Z consumers.
  • IRhythm Technologies (IRTC) drops 13% after saying Chief Executive Officer Mike Coyle plans to resign due to personal matters.
  • Orbital Energy Group (OEG) drops 4.5%, reversing some of Tuesday’s 115% rally after its unit Gibson Technical Services reached an agreement with telecom service provider TEC for a project in central Mississippi.
  • Zoom Video Communications (ZM) gains 2.8% after analysts said its quarterly results signaled a good start to the year.

While broader stock markets remain close to record highs, the momentum of earlier in the year has ebbed as investors begin to worry a stronger-than-expected rebound from COVID-19 means higher inflation and sooner-than-expected monetary policy tightening.

Fed Governor Lael Brainard said on Tuesday there are risks on both sides of monetary policy as the U.S. economy surges ahead while millions of people are unemployed. “Investors would see a surge in payrolls growth as a sign that the Fed is more likely to move,” said Lauren Goodwin, portfolio strategist at New York Life Investments.

The MSCI world equity index bounced in and out of positive territory for the day and below Tuesday’s record high.  In Europe, the Stoxx 600 Index climbed 0.1%, trading near all time highs, with energy shares getting a boost from rising oil prices. British shares’ initial gains fizzled with the FTSE 100 last up 0.1%, while Germany’s DAX and the French CAC 40 gained 0.2%. Here are some of the biggest European movers today:

  • Interpump Group shares rise as much as 7.6% to a record high after the company said it is acquiring White Drive Motors & Steering, in a transaction expected to close in 4Q.
  • Beiersdorf gains as much as 3.3%, hitting the highest since Nov. 17. The personal-care products maker is well-positioned for a strong recovery and is trading at an “undemanding” valuation, Berenberg said, upgrading the stock to buy and raising its price target.
  • Volvo adds as much as 3.8% after the company proposed a distribution of proceeds from the sale of UD Trucks. Handelsbanken sees the plan as a “clear indication” of a solid outlook.
  • U-Blox rises as much as 10% after the Swiss electronic components maker raised its sales growth guidance; analysts at ZKB and Vontobel highlight strong order intake and see upside to consensus.
  • Solutions 30 climbs as much as 12%, continuing its roller-coaster ride since last week’s slump.
  • Wizz Air falls as much as 3.4%, the most since May 11, after the Eastern Europe- focused budget carrier cut its fleet guidance.
  • Eurofins Scientific drops as much as 4.1%, falling with stocks of other lab-testing companies, after Abbott Laboratories issued a profit warning on declining demand

Earlier in the session, Asian stocks slipped snapping a three-day winning streak, as inflation concerns offset a positive outlook for earnings growth. The MSCI Asia Pacific Index fell 0.1% paring an advance of as much 0.4%, as tech stocks declined. China’s CSI 300 Index slid 1%, after the state-run Securities Times reported that regulators are against analysts’ practice of setting specific targets for market gauges. China’s IT sector pulled back from a near-three-month peak. Meanwhile, Philippine stocks were the biggest gainers, with the benchmark closing at its highest since March 5, after a media report said the government increased allowable capacity for restaurants and personal care shops, while allowing venues for conferences and exhibits to open. Japanese shares were also among the top performers. The Topix gained for a second day with investors assessing the nation’s vaccine rollout and upcoming U.S. employment data this week. Korea’s Kospi ended the day 0.1% higher — pulling back from an initial climb — after the country announced that inflation rose at its highest pace since 2012 in May as the economy’s rebound gathered momentum. “The fears around inflation likely won’t be proved or disproved for a few months yet – although the lack of excitement around last week’s high-ish PCE readings perhaps suggests that in this area, too, a lot is in the price with break-evens around 2.5%,” Patrik Schowitz, globalmulti-asset strategist at JPMorgan Asset Management wrote in a note.

There was more good news on the data front, where economies are recovering much faster than anticipated — the latest data showed Australia’s economy racing ahead last quarter as consumers and businesses spent with abandon, lifting output back above where it was last year before the pandemic.

That helped the Australian stock market to its latest record but the Aussie dollar succumbed to selling to remain with its recent range as the central bank has been stubbornly sticking to its dovish tone. The S&P/ASX 200 index rose 1.1% to close at 7,217.80, a new record. Energy stocks led sector gains as oil extended advances after closing at the highest since October 2018. Worley was among the top performers after saying it was poised to deliver an improved 2H. Regis Resources was among the worst, snapping a three-day winning streak. In New Zealand, the S&P/NZX 50 index fell 0.2% to 12,440.05

In rates, Treasury 10-year yields slipped 1 basis point on Wednesday to 1.6028%, after choppy price action in Asia and European morning in which gilts and bunds advanced. 10-year yield, lower by about half a basis point at ~1.60%, lagging bunds and gilts despite Euro zone yields largely shrugged off Tuesday’s data showing euro zone inflation rose to 2% in May — a sign that markets were confident the European Central Bank would not decide to slow the pace of its bond buys when it meets on June 10. Germany’s 5-year bond sale receiving a bid/cover ratio of 1.21x, the lowest since April 2020.

“As the major developed economies continue to reopen from COVID lockdowns, the focus on central bank meetings is going to intensify,” MUFG analysts said in a monthly outlook note. They expect the ECB to avoid signaling a slowdown in bond purchases, but think the Fed might confirm that “very initial” discussions on tapering its bond buying have begun.

In FX, the Bloomberg dollar index was heading for its best two-day run in almost three weeks, with the ongoing shift in tone from Federal Reserve policy makers offering support. The Bloomberg Dollar Spot Index rose 0.3%, with the greenback gaining against all of its major peers. The pound declined as worries over a third wave of coronavirus and a delay in economic reopening intensified. The onshore yuan edged lower to 6.3871 per dollar after retreating from three-year highs as policymakers took steps to cool its advance including raising banks’ FX reserve requirements.

The yen declined against most of its major peers amid expectations that a slower recovery in Japan’s economy will keep the central bank from tapering stimulus. USD/JPY rose for the first time this week as Bank of Japan board member Seiji Adachi said “a long battle” must be anticipated toward achieving 2% inflation. The pound edged lower on concern over a possible third U.K. coronavirus wave and a delay to economic reopening; GBP/USD was down as much as 0.2% to 1.4129, the lowest in a week. Australia’s dollar was lower even as its economy expanded faster than economists forecast in the first three months of the year, driven by the private sector as firms boosted investment and households tapped their pandemic savings war chest. The Reserve Bank of Australia left policy unchanged on Tuesday and reiterated that inflation and wage gains are unlikely to be at the point where an interest-rate hike is needed until 2024.

The Turkish lira fell to a record low against the greenback after President Recep Tayyip Erdogan renewed calls for lower interest rates.

In commodities, crude oil prices rallied again after closing above $70 a barrel for the first time in two years, aided by investors wagering that the economic recovery would lift energy demand and that supply would fall behind. Brent futures added 1.3% to $71.16 per barrel and U.S. West Texas Intermediate crude added 1.11% to $68.47, despite the OPEC+ alliance agreeing to hike output in July.

Mark Haefele, chief investment officer at UBS, Global Wealth Management, said vaccination rollouts would spur “a return to normal patterns of mobility, supporting energy demand”, while support for prices also came from an OPEC showing discipline about production increases. “We see energy firms as among the main beneficiaries of the broader global reflation trend, along with financials,” he said.

Cryptocurrency prices rose, with Bitcoin up 1.2% to $37,175 . Gold was flat at $1,900 having traded slightly lower for much of the session.

To the day ahead now, and data releases include the April numbers for German retail sales, UK mortgage approvals and Euro Area PPI. Meanwhile from central banks, we’ll hear from the Fed’s Evans, Bostic, Kaplan and Harker, along with the ECB’s Villeroy. Furthermore, the Federal Reserve will be releasing their Beige Book. Looking at the rest of the week, we get the weekly unemployment claims report and May’s private payrolls data on Thursday will be followed by the crucial monthly jobs numbers on Friday. Investors are closely tracking the labor market’s recovery after an unexpected slowdown in jobs growth in April fanned inflation worries.

Market Snapshot

  • S&P 500 futures little changed at 4,197.50
  • MXAP little changed at 210.20
  • MXAPJ down 0.3% to 708.54
  • Nikkei up 0.5% to 28,946.14
  • Topix up 0.8% to 1,942.33
  • Hang Seng Index down 0.6% to 29,297.62
  • Shanghai Composite down 0.8% to 3,597.14
  • Sensex down 0.7% to 51,583.79
  • Australia S&P/ASX 200 up 1.1% to 7,217.80
  • Kospi little changed at 3,224.23
  • Brent Futures up 0.78% to $70.80/bbl
  • Gold spot down 0.22% to $1,896.28
  • U.S. Dollar Index up 0.28% to 90.08
  • STOXX Europe 600 +0.2% to 450.99
  • German 10Y yield fell 5 bps to -0.184%
  • Euro down 0.27% to $1.2180

Top Overnight News from Bloomberg

  • Turkey’s President Recep Tayyip Erdogan renewed calls for lower interest rates, pushing the lira to a fresh low against the dollar and piling pressure on his central bank governor to ease policy despite high inflation
  • A selloff in China Huarong Asset Management Co.’s bonds is broadening to the nation’s other major bad-debt managers
  • Federal Reserve Governor Lael Brainard said there are risks on both sides of monetary policy right now as the U.S. economy surges ahead in a post-pandemic boom while millions of people remain unemployed
  • Europeans are in for a costly summer that will test central bankers’ resolve on stimulus as the region’s delayed economic recovery unleashes surging demand
  • South Korea’s inflation rose to its highest since 2012 in May as the economy’s rebound gathered pace, adding support to views that the central bank could be among the first in the region to start normalizing policy

Quick look at global markets courtesy of Newsquawk

Asian equity markets traded mixed following a similar indecisive performance in the US where the mood was kept tentative on return from the extended weekend alongside mixed data releases and as this week’s key event remained on the horizon with the NFP jobs data on Friday. ASX 200 (+1.1%) was led higher by outperformance in the energy sector after recent upside in oil prices and with better-than-expected GDP data for Q1 contributing to the tailwinds, although participants also digested confirmation of the one-week lockdown extension to Australia’s second most populated city of Melbourne. Nikkei 225 (+0.5%) briefly reclaimed the 29k level, helped by favourable currency flows and after recent comments by BoJ board member Adachi who stuck to the dovish message in which he suggested to be ready for a long battle to reach the 2% price goal and that the BoJ must ease further without hesitation if an external shock places large downward pressure on the economy. Elsewhere, Hang Seng (-0.6%) and Shanghai Comp. (-0.8%) were lacklustre amid mixed US-China headlines including a call between US Treasury Secretary Yellen and Chinese Vice Premier Liu He where they agreed bilateral ties between the two countries are very important and expressed a willingness to maintain communication, although there was also a recent US congressional advisory report that alleged the US Commerce Department is failing to do its part to protect national security and keep sensitive technology out of the hands of China’s military. Finally, 10yr JGBs were flat as price action was contained by resistance at the 151.50 level and with demand sapped due to the positive mood in Japanese stocks, although downside was also limited with the BoJ present in the market for over JPY 1.1tln of JGBs ranging from 1yr-5yr and 10yr-25yr maturities.

Top Asian News

  • China Stocks Drop as Technology Shares Come Off Three-Month High
  • Singapore’s Local Virus Cases Rise to More Than One-Week High
  • Musk Says Tesla’s Biggest Challenge Is Supply Chain
  • Bank of Korea Moves to Dispel Concerns on 9-Year High Inflation

European bourses thus far have been inspired, with flat and caged trade seen across the board (Euro Stoxx 50 Unch), with the European calendar on the light side and news flow also quiet. US equity futures have also been trading horizontally ahead of a slew of Fed speakers later today, and Friday’s looming US jobs report also likely prompting trader to keep some dry powder. Back to Europe, sectors are mostly firmer but do not portray a particular theme nor bias, whilst the breadth of the market also remains narrow. Oil & Gas modestly outperform following the post-OPEC+ gains across the crude complex, whilst there is little to report regarding the other sectors. In terms of individual movers, Volvo (+3.4%) resides near the top of the pack after Co’s board has proposed a SEK 9.5/shr share distribution of the proceeds, corresponding to around SEK 19bln, from the sale of UD Trucks. Lufthansa (+2.2%) is firmer alongside source reports that Germany is said to be taking part in a Lufthansa capital raise. Alstom shares (Unch) gave up gains seen at the open as shareholder Bouygues (+0.3%) offloaded 11ml Alstom shares at EUR 45.35/shr.

Top European News

  • U.K. Mortgage Approvals Rise to 86,921 in April Vs. Est. 81,000
  • U.K. to Begin Process to Join Trans-Pacific Trade Partnership
  • EU to Force Multinationals to Report Revenue in Each Country
  • Wizz Air Holds Hope for Busier Summer Even As Outlook Cloudy

In FX, the Greenback continues to grind higher having formed a base or at least finding underlying bids on Tuesday to bounce off post-Memorial Day lows, and has now probed 90.000 to the upside in DXY terms amidst a broad if not all round recovery vs major counterparts. The Buck appears to have overcome initial disappointment with elements of the manufacturing ISM, while also taking comfort from the failure of other currencies to maintain momentum and breach key resistance or psychological levels when it was floundering. Moreover, the Dollar may be benefiting from some short covering ahead of another raft of Fed speakers flanking the Beige Book for June’s FOMC meeting as the index hovers between 90.193-89.856 parameters vs yesterday’s 89.941-662 session range.

  • TRY – Scant respite for the Lira, though it has clambered off extreme and fresh all time lows circa 8.7775 hit on the back of latest attempts by Turkish President Erdogan to steer CBRT monetary policy towards lower rates. In short, he met with the Governor and reiterated that the country needs to ease in order to bring down inflation in typically unorthodox fashion, and Usd/Try is now trying to regain composure, but failing to get near 8.5000 again.
  • AUD/JPY/NZD/CHF – The high betas and low yielders are conceding most ground to the Greenback as the pendulum changes direction and Aussie loses traction around 0.7750, Kiwi retreats through 0.7250, Yen succumbs to stop-sales beyond 109.70 and Franc slips back below 0.9000. Note, Aud/Usd was only briefly uplifted by firmer than forecast Q1 GDP data as the good news was countered by a week long extension to lockdown in Melbourne, while upbeat comments from the RBA’s Head of Economic Analysis, jones were tinged with caution, but the headline pair may still be drawn to decent option expiry interest between 0.7740-50 (1.3 bn) even though RBA Deputy Governor Debelle is adamant that wage growth will not be strong enough to boost overall inflation until 2024. Meanwhile, NZ Q1 terms of trade were mixed and Head of Financial Markets at the RBNZ, Raynor, stated that the balance sheet is likely to be enlarged for a long time, and BoJ Board member Adachi chimed with the usual dovish script that further easing must be implanted without hesitation if an external shock puts large downside pressure on the economy.
  • EUR/GBP/CAD – Stops also contributed to the Euro’s downfall with market contacts noting sell orders at 1.2200, but the headline pair has held around recent lows in the 1.2170-80 region with ongoing support from the Eur/Gbp cross that remains elevated on the 0.8600 handle, as Sterling slips further from yesterday’s new multi-year highs vs the Buck around 1.4250 to pivot 1.4150 and hover mostly below. Conversely, the Loonie continues to outperform above 1.2100 against the backdrop of lofty crude and awaiting Canadian building permits for further direction before Friday’s face-off with the US on employment.

In commodities, WTI and Brent front month futures see modest gains, but the benchmarks have eclipsed overnight ranges – with the former just north of USD 68/bbl (67.78-68.48 range) and the latter testing USD 71/bbl (vs 70.35 low) at the time of writing. OPEC+ saw a swift meeting yesterday with quotas through to July maintained as expected, whilst the producers also reiterated a proactive stance against the backdrop of the Iranian JCPOA talks, which are poised to resume next week after a wrap-up meeting later today – with the Iranian President also noting that talks are progressing well. OPEC+ refrained from giving guidance past July, given the fluidity of the supply/demand situation. Analysts at ING have maintained the view that ICE Brent will average USD 70/bbl over the second half of this year. As a reminder, the weekly Private Inventory data will be released later today due to the US Memorial Day holiday on Monday. Meanwhile on the geopolitical front, Iran’s largest warship caught on fire and sunk in the Gulf of Oman, with the circumstances currently unclear. This situation is one to keep on the radar, given that the Gulf of Oman is the mouth of the Strait of Hormuz chokepoint. Elsewhere, precious metals are mildly pressured by the recent Dollar strength, although some losses are cushioned as yields remain stable following a modest pullback from yesterday’s best levels. Spot gold and silver trade within narrow parameters under USD 1,900/oz and USD 28/oz respectively. Over to base metals, LME copper is subdued but holds onto its USD 10,000/t status, with the red metal facing headwinds from the firmer Buck alongside continuing operations at BHP’s Chilean copper mines despite strike action. Meanwhile, Dalian iron ore and coking coal futures saw another session of gains as traders continue to cheer the relaxation of restrictions at the top steelmaking Chinese city of Tangshan.

US Event Calendar

  • 7am: May MBA Mortgage Applications -4.0%, prior -4.2%
  • 2pm: U.S. Federal Reserve Releases Beige Book

DB’s Jim Reid concludes the overnight wrap

Since we last spoke I’ve played 5 tournament rounds of golf over three days and been to Legoland. 4 rounds were decent. One very bad which for golf is not bad going. A very busy Legoland was enough to try the patience of a saint and I must confess I lost it towards the end of a long day when someone jumped what was an hour long queue with his whole family to join a friend. Steam came out of my ears and I went up to him and told him he was bang out of order. A row ensued but they didn’t relent. I came up with the immortal line “where would the world be if everyone acted like you”. He shrugged his shoulders and carried on. My wife had to tell me to calm down.

I’m contrast there seemed to be an orderly queue of buyers and sellers yesterday as most risk assets pressed on to fresh highs after strong data releases helped bolster investor sentiment. By the close of trade, the MSCI World Index (+0.21%) and the STOXX 600 (+0.75%) had both climbed to all-time records, while the S&P 500 (-0.05%) fell back ever so slightly as it reopened following Monday’s holiday. Even though the S&P was largely unchanged, US equities saw large moves under the surface as the cyclical over growth trade continued with energy (+3.93%), materials (+1.39%) and banks (+0.97%) outperforming higher growth industries like biotech (-1.41%) and software (-0.61%). The worst performing industry in the S&P 500 was healthcare equipment (-1.88%), on the back of Abbott Laboratories (-9.3%) warning investors of lower-than-expected profits this year as demand for Covid-19 testing kits is drying up. Good news in general however.

The Euro Area flash CPI reading coming in at 2.0% for the first time since 2018 was interesting, but it didn’t stop a broad-based rally in Europe with 19 of 20 sectors higher with cyclicals leading the way – particularly inflation-sensitive basic resources (+2.85%).

Looking at those economic reports in depth now and the main highlight were the various manufacturing PMIs from throughout the world, which added to the positive tone set by the flash readings. The Euro Area manufacturing PMI was revised up from the flash reading to 63.1 (vs. flash 62.8), with both France and Germany seeing positive revisions too. And in the US, the final PMI was revised up to 62.1 (vs. flash 61.5), while the ISM manufacturing print also came in at an above-expected 61.2 (vs. 61.0 expected).

So far so good, but the breakdowns pointed to what could be some issues down the line, as the ISM employment measure was fairly soft at 50.9 (vs. 54.6 expected). Looking through the press release where it quoted various respondents, it was noticeable how many referred to supply-side issues, such as difficulties in obtaining components or hiring qualified candidates, so it’ll be interesting to see how this translates to the nonfarm payrolls number on Friday. The measure of average lead time for production materials has risen nearly 20 days over the last 3 months and is now at 85 days – the longest length of time recorded since the data started being kept in 1987. Meanwhile although the prices paid measure did slip back slightly to 88.0 (vs. 89.5 expected), it’s worth bearing in mind that this is still the 2nd highest reading for the measure since the GFC.

One factor helping to bolster the inflationary case recently has been the rise in a number of key commodity prices, and yesterday saw them extend their gains from last week as the Bloomberg Commodity Spot Index rose +1.42%. Oil prices were one of the big movers, with Brent crude (+1.34%) and WTI (+2.11%) closing at their highest level in over 2 years, which came even as OPEC+ agreed that they’d maintain their plans to increase production in July. OPEC+ gave little indication on exactly how much production will increase by with forecasts clouded by the US-Iran nuclear talks and the uncertain global demand picture. Elsewhere agricultural prices moved higher too, with corn (+4.87%) and wheat (+4.52%) futures both rebounding following recent declines.

Asian markets are trading mixed overnight with the Nikkei (+0.50%) and Kospi (+0.14%) up while the Hang Seng (-0.50%) and Shanghai Comp (-0.65%) are both down. Futures on the S&P 500 (-0.01%) are pointing to a flat open while, those on the Stoxx 50 are up +0.10%. In Fx, the Turkish lira is down -1.13% as we type, after being down as much as -3.08% at one point overnight, weighed down by remarks from President Recep Tayyip Erdogan calling for lower interest rates. Elsewhere, the US Treasury Secretary Janet Yellen and China’s Vice Premier Liu He held an “introductory virtual meeting,” overnight where the two sides discussed how to “support a continued strong economic recovery and the importance of cooperating on areas that are in U.S. interests, while at the same time frankly tackling issues of concern,” according to a statement from the US Treasury.

Back to data and as mentioned earlier, yesterday saw the release of the Euro Area flash CPI data, which rose to +2.0% in May (vs. +1.9% expected), which was the highest reading since November 2018. Energy prices drove the move higher with a +13.1% year-on-year increase, as core CPI came in at just +0.9%, in line with expectations. As a result, it’s unlikely to weigh heavily on the ECB Governing Council ahead of next week’s meeting, in contrast to the US where core CPI stood at +3.0% in April, its highest level so far this century.

Against this backdrop, sovereign bond markets had a weaker performance yesterday, with yields on 10yr Treasuries (+1.2bps) and gilts (+3.1bps) seeing the largest rises as they caught up from the previous day’s holiday. Nevertheless, yields on the European continent were also higher for the most part, with those on 10yr bunds (+0.9bps) and OATs (+1.0bps) rising too. And there was a further reduction in the spread of Greek 10yr yields over bunds, falling to a fresh post-2008 low of 101bps yesterday.

In terms of the latest on the pandemic, there was some good news out of the UK yesterday as the country recorded 0 Covid-19 deaths within 28 days of a positive test. Even if this may have been distorted a bit by reporting over the longer holiday weekend, the fact it’s capable of happening is still a positive sign of movement in the right direction, as the government faces calls from some to delay its planned easing for England on June 21. Elsewhere, Germany announced it has downgraded its risk level for the pandemic to “high” from “very high”, which means loosening restrictions may soon be coming to Europe’s largest economy. The threat level has been at “very high” since December. And staying on the positives, New York City saw their positivity rate fall to its lowest level since the pandemic began yesterday, at 0.83%. Separately, it was reported by Axios that the White House would invite all employees back to work in person in July.

Looking at yesterday’s other data, unemployment in Germany fell by -15k in May (vs. -9k expected), while the wider Euro Area saw unemployment fall a tenth to 8.0% in April (vs. 8.1% expected), marking its lowest level since last June. Finally in Italy, growth in Q1 was revised up to show +0.1% growth (vs. -0.4% contraction before).

To the day ahead now, and data releases include the April numbers for German retail sales, UK mortgage approvals and Euro Area PPI. Meanwhile from central banks, we’ll hear from the Fed’s Evans, Bostic, Kaplan and Harker, along with the ECB’s Villeroy. Furthermore, the Federal Reserve will be releasing their Beige Book.

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 27.58 PTS OR 0.76%   //Hang Sang CLOSED DOWN 170.38 PTS OR 0.58%      /The Nikkei closed UP 138.80 pts or 0.46%  //Australia’s all ordinaires CLOSED UP 1.04%

/Chinese yuan (ONSHORE) closed DOWN AT 6.3846 /Oil DOWN TO 68.26 dollars per barrel for WTI and 70.83 for Brent. Stocks in Europe OPENED ALL GREEN   //  ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.3846. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.3843   : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

NORTH KOREA//USA/SOUTH KOREA

 

END

b) REPORT ON JAPAN

JAPAN

 

3 C CHINA

CHINA/EU

 
 
CHINA VS USA 
Congress now urges NBA stars to cut all ties with Chinese brands that use Xinjiang cotton
(zerohedge)

Congress Urges NBA Stars To Cut Ties With Chinese Brands That Use Xinjiang Cotton

 
WEDNESDAY, JUN 02, 2021 – 09:54 AM

By now, the uproar over the NBA kowtowing to Beijing over a tweet from Daryl Morey showing support for “freedom fighters” in Hong Kong was a shameful episode that has now been largely forgotten by the general public. And with tensions flaring again over the White House’s efforts to punish Beijing for the genocide in Xinjiang, a congressional commission on Tuesday is calling on American basketball stars to end their endorsements of Chinese sportswear firms that use cotton grown in the region.

Now that Hong Kong has essentially fallen to Beijing, Xinjiang has replaced Hong Kong as the China human rights issue du jour. And following reports that certain Chinese apparel firms (ANTA, Li-Ning and Peak sportswear, to name a few) had publicly proclaimed their intention to continue using cotton from Xinjiang, the chairs of the bipartisan Congressional-Executive Commission on China sent a letter to a dozen or so NBA players who have deals with these labels urging them to cut ties.

These companies mostly manufacture sneakers and other athletic apparel. According to the Daily Mail, retired NBA All-Star Dwyane Wade has a lifetime deal with Li-Ning, while injured Golden State Warriors guard Klay Thompson has a contract with ANTA. Peak, which previously had a deal with the New Jersey Nets before the team moved to Brooklyn in 2012, has several current NBA players, including backup Philadelphia 76ers center Dwight Howard.

These deals create “reputational risks” for the players, who are now financially beholden to Beijing. After all, America doesn’t need another episode where its most popular sports star is parroting Chinese propaganda.

“Players have continued to sign new deals with Anta Sports,” the letter from Senator Jeff Merkley and Representative Jim McGovern added.

“We believe that commercial relationships with companies that source cotton in Xinjiang create reputational risks for NBA players and the NBA itself,” they said, noting that the U.S. government had determined that the Chinese government was committing genocide and crimes against humanity in Xinjiang and barred imports of cotton from the region.

“The NBA and NBA players should not even implicitly be endorsing such horrific human rights abuses,” the letter said.

For years now, reporting has confirmed the existence of systematic forced labor in the province, where its mostly Muslim inhabitants engage in forced labor. In the letter, a copy of which was seen by Reuterslawmakers warned that Anta, Li-Ning and Peak had publicly embraced Xinjiang cotton, “likely making them complicit in the use of forced labor.”

“We urge the NBPA to work with its members to raise awareness about the ongoing genocide taking place in Xinjiang and the role of forced labor in the production of products made by brands that NBPA members have endorsed,” the letter said.

“We hope that the result of such efforts would be that the players would leverage their contracts with Anta, Li-Ning, and Peak to push these companies to end their use of Xinjiang cotton. Short of that outcome, we encourage players to end their endorsement deals with these companies,” it said.

Back in September, NBA Commissioner Adam Silver said the NBA’s long-standing business ties to China (the league’s most important growth market oversees) have a “net positive” impact on the “mutual understanding” between the US and Communist China. However, the NBA’s standing in China deteriorated after Houston Rockets general manager Daryl Morey tweeted his support for pro-democracy protesters in Hong Kong. That lone tweet prompted China to pull NBA games from airing in the country, costing the league millions and forcing Morey to walk back his comment and apologize, something that horrified American lawmakers.

 
 
 

end

CHINA/USA

First Russia, Now China? President Biden Readies Watered-Down Beijing Blacklist Order

 
WEDNESDAY, JUN 02, 2021 – 05:06 PM

“China Joe” Biden has entered the chat.

President Biden is preparing to amend a sweeping US ban on trading with Chinese firms with connections to the PLA, China’s military, after the policy, initially proposed by President Trump, was challenged in court.

According to Bloomberg, under Biden’s amended order, the Treasury Department will create a list of companies that could face financial penalties for their connection to China’s defense and surveillance technology sectors, the people said.  Previously, the nature of the financial sanctions and the specific companies targeted were set via a Congressionally mandated report from the Pentagon.

The amended order, which Biden is set to sign later this week, will change the criteria for entry on the blacklist to capture those companies that operate in the defense or surveillance technology sectors. Previously, President Trump’s more broad-based order targeted companies owned, controlled or otherwise affiliated with the Chinese military. The order will also shift control of the blacklist from the Pentagon to the Treasury.

Per BBG, the Biden Administration expects to keep “a large number” of companies already included on the entities’ list, while allowing Treasury’s Office of Foreign Assets Control to add a few new companies as well.

Two Chinese companies have successfully challenged the order (including TikTok owner ByteDance) and the White House claims that these revisions are necessary to “ensure it’s legally sound and sustainable” over the long term. By shifting responsibility to the Treasury, Biden hopes to shore up the legal standing for the order.

The review has been closely watched on Capitol Hill, where lawmakers of both parties are now open to a tougher stance on Beijing (especially after the Biden Administration has been forced to acknowledge that the “lab leak” theory of COVID-19’s origins isn’t a “conspiracy theory”, but in fact the most probable scenario.

A bipartisan group of lawmakers – including Florida Senator Marco Rubio, Arizona Democrat Senator Mark Kelly and Representative Liz Cheney – demanded the publication of a new list of Chinese military-affiliated entities in a letter sent to Defense Secretary Lloyd Austin this week.

Technically, a list of targeted firms was due April 15 and is mandated by last year’s defense authorization bill. However, it appears that under the Biden Administration, the Pentagon has let its responsibilities lapse as it waits for authority to be transferred to Treasury.

“The U.S. government must continue to act boldly in blocking the Chinese Communist Party’s economic predation against our industrial base,” they said in the letter. “We must not allow China to erode America’s military primacy.”

Wall Street has also been closely watching Biden’s plan after Trump’s initial order was met with “confusion” in the world of markets, according to Bloomberg.

Amid all the confusion, the Biden Administration has pushed back a deadline that would have closed a loophole: investors can still pump money into subsidiaries of listed firms, despite a ban on the listed parent companies, which has been in place since November. It appears that Biden plans to keep this loophole intact, as the new rules are expected to only apply to subsidiaries if they are specifically listed by the Treasury.

“Providing Treasury with authority over which Chinese military companies are subject to capital markets sanctions would tend to help Wall Street maintain the status quo to the extent possible,” said Roger Robinson Jr., former chairman of the Congressional U.S.-China Economic and Security Review Commission.

Bottom line: Biden’s plan will be much less comprehensive than Trump’s. Not that it matters, since the courts largely sided with Chinese firms, including (as we mentioned earlier) ByteDance, the TikTok parent, which won a court battle allowing it to evade Trump’s attempt to blacklist the popular social media app.

The big question now is whether Biden will keep the pressure on firms like Huawei, which was identified as a key threat to American national security over its propensity to spy on behalf of Chinese intelligence, something it’s technically required to do by Chinese law (Note: the company itself denies all of this, and claims it has never spied on Beijing’s behalf, despite being caught red-handed more than once). GOP Senators are skeptical, and have recently channeled that anger into opposing a Biden nominee – Christopher Fonzone, Biden’s pick to be legal counsel at the Office of the Director of National Intelligence – despite having previously done legal work for the Ministry of Commerce and Huawei.

And there’s always the financial dealings of Biden’s son, Hunter Biden, which involved figures with close ties to China’s intelligence apparatus.

END

end

4/EUROPEAN AFFAIRS

EUROPE/

Europe launches a “digital wallet” in its first attempt towards a cashless society

(zerohedge)

EU Launches “Digital Wallet” In Latest Step Toward ‘Cashless Society’

 
WEDNESDAY, JUN 02, 2021 – 02:45 AM

Despite the concerns about digital privacy being invaded by the “vaccine passports” that Europe has demanded of travelers, the EU is pressing ahead with plans to launch a “digital wallet” that would carry digital copies of a drivers’ license and credit cards (sort of like Apple Pay does) as Europe continues its transition away from cash.

According to the FT, the EU is preparing to unveil its plans for the bloc-wide “digital wallet” on Wednesday. The product is the result of what Brussels described as several states’ demands for the EU to create a digital tool to access important records and other products and services via the smartphone.

The EU’s Thierry Breton

A digital wallet could store payment details and passwords, and allow citizens from all 27 countries to log into local government websites or pay utility bills or perhaps even merchants using a single recognized identity.

Like with other smartphone apps, the digital wallets will be accessed via fingerprint and/or retina scanning. It can also serve as a vault where users can store official documents such as a driver’s license. Using the wallet will not be compulsory, but EU citizens who chose to sign up would benefit from an extra-secure digital ecosystem and greater flexibility ideal for post-pandemic life.

“The new digital ID will give every European the keys to their digital twin,” Thierry Breton, and EU commissioner in charge of digital policy, said in a speech earlier this year.

EU officials plan to make it illegal for companies to use any data gleaned from these ‘digital passports’ for marketing or any other commercial purpose, the FT said. Brussels is engaged in discussions with member states to provide guidelines on technical standards for the rollout of the digital wallet, which is expected to be fully operational in about a year.

But here’s the bottom line: The EU digital wallet is “simple, secure and it will protect people online”, said a person with direct knowledge of the plans. “People will also have the power to decide how much information they give out while Google and others don’t let you decide what you’re giving away.”

So far, the program has seen limited interest, with only 19 member states moving to introduce the digital wallets to their citizens, and unfortunately not all of them are cross-compatible. But regulators hope that the rise in “digital literacy” driven by the pandemic will help make the “digital wallet” more popular. After all: who wants to keep carrying around all those annoying ID and credit cards?

What if, instead of carrying a wallet and a phone, we just carried a phone?

 

end

EU/CORONAVIRUS UPDATE

UK

UK sees zero daily Covid deaths as they now call for an end to lockdown. The Delta strain (Indian strain//B1.617) is still spreading across the nation

(zerohedge)

UK Sees Zero Daily COVID Deaths For First Time As Calls To End Lockdown Grow

 
WEDNESDAY, JUN 02, 2021 – 04:15 AM

Demands for the UK to end all remaining lockdown restrictions are growing after public health officials for the first time since the start of the pandemic recorded zero deaths for the past day.

That’s the first time since March 7 of last year that nobody died in the UK from COVID-19 in a 24-hour period.

Business groups have lead the charge pushing for an earlier reopening, but British PM Boris Johnson says he won’t make a decision on ending the lockdown until he has been fully briefed on the risks of the Indian COVID-19 variant that’s been spreading rapidly in the UK.

UK Hospitality, which represents about 85,000 venues, said jobs will be lost if there’s a delay to the end of lockdown measures, while survey data from the Night Time Industries Association suggests the future of nine in 10 nightlife businesses is threatened after more than a year of enforced closures.

Prevalence of the newly-renamed Delta strain is the only obstacle that could delay UK’s plans for unlocking. It has spread across the UK and the number of daily COVID cases has ticked upwards in the past two weeks, raising concerns about whether a second summer could be lost for the British tourism industry.

Already, adding pressure on PM Johnson was the decision by Scotland’s First Minister Nicola Sturgeon to postpone Scotland’s June 7 relaxation of its restrictions across a swathe of the region including Edinburgh. Sturgeon cited an increase in the number of cases of the variant first detected in India as reason for the extension.

Health Secretary Matt Hancock urged caution in response to the fall in daily deaths.

“Despite this undoubtedly good news we know we haven’t beaten this virus yet,” he said in an emailed statement. “And with cases continuing to rise please remember hands, face, space and let in fresh air when indoors, and of course, make sure when you can you get both jabs.”

However, despite the milestone in fatalities, some of the “experts” are launching a fresh fearmongering campaign. They’re pointing to the spread of an Indian variant, along with a recent jump in hospitalizations, as signs that the British lockdown, which has already been unwound to a substantial degree and is on the cusp of being dismissed completely. They’re arguing that these are signs that another vicious surge could seize England and the UK if the public isn’t careful.

A top adviser to the British government, Professor Adam Finn, from the Joint Committee on Vaccination and Immunization, says he’s concerned about England unlocking too early (the government is slated to end restrictions on June 21, when all legal limits will be removed). However, the public clearly doesn’t want to hear this, since he’s already complaining about being repeatedly told to “shut up”. The government scientist said he was repeatedly “told to shut up” by people who don’t want to hear his warnings.

For better or worse, promoters of keeping restrictions in place as a precaution against the variants just got a boost from the WHO, which is changing up how it names the variants to remove some of the stigma associated with discovering them (since they’re often named after where they were discovered) but also to make it easier for the media to discuss them.

But with the US and UK both leading the world in vaccinations, it’s worth wondering: does anybody really believe these warnings?

END

EU/CHINA

As promised, the European Parliament freezes ratification of the Chinese Invesstment treaty

(Kern/Gatestone)

European Parliament Freezes Ratification Of China Investment Treaty

 
WEDNESDAY, JUN 02, 2021 – 05:00 AM

Authored by Soeren Kern via The Gatestone Institute,

The European Parliament has halted ratification of a controversial investment treaty with China until Beijing lifts sanctions on European lawmakers, academics and think tanks. The move, a rare display of fortitude by an institution notorious for vacillation, reflects a hardening stance in Europe toward the Chinese Communist Party.

The ratification freeze, backed by all of the major groupings in the European Parliament, is significant for several reasons:

  1. it represents a turning point in EU-China relations, in that Beijing no longer calls the shots;

  2. it marks a shift in the balance of power in favor of the European Parliament at the expense of the European Commission;

  3. and it signifies the beginning of the end of Merkelism, and ideology which has, among other things, consistently prioritized commercial interests over human rights concerns, whether in China, Russia or Iran.

The European Parliament on May 20 overwhelmingly passed a resolution to “freeze” ratification of the deal with 599 votes in favor, 30 against and 58 abstentions. A statement said:

“The resolution emphasizes that any consideration by the European Parliament of the EU-China Comprehensive Agreement on Investment (CAI) … as well as any discussion on its mandatory ratification by MEPs, have ‘justifiably been frozen’ because of the Chinese sanctions.

“MEPs demand that China lift the sanctions before they consider the agreement…. They also remind the European Commission that MEPs will take the human rights situation in China, including in Hong Kong, into account when deciding whether to endorse the agreement or not….

“MEPs also call for re-balancing EU-China relations. They support a toolbox of autonomous measures such as legislation against distortive effects of foreign subsidies on the internal market, an import ban on forced labor goods as well as an enhanced and strengthened EU Foreign Investment Screening Regulation. The EU also needs to adequately address China’s cybersecurity threats and hybrid attacks.”

The CAI was concluded in great haste on December 30, 2020 by German Chancellor Angela Merkel, French President Emmanuel Macron, President of the European Commission Ursula von der Leyen and European Council President Charles Michel. Other EU countries were excluded from the negotiations. Merkel reportedly wanted an agreement at any cost before Germany’s six-month EU presidency ended on December 31.

The lopsided agreement, which ostensibly aims to level the economic and financial playing field by providing European companies with improved access to the Chinese market, actually allows China to continue to restrict investment opportunities for European companies in many strategic sectors. The deal also lacks meaningful enforcement mechanisms for issues that the EU claims to care about, such as climate change and human rights, including forced labor.

On December 30, Von der Leyen proudly declared that the CAI will “uphold our interests” and “promote our core values.” On January 6, only seven days later, Chinese launched a massive crackdown on democracy activists in Hong Kong.

Former Hong Kong Governor Lord Patten said the CAI makes a “mockery” of the EU’s ambitions to be taken seriously as a global and economic player:

“It spits in the face of human rights and shows a delusional view of the Chinese Communist Party’s trustworthiness on the international stage.”

In commentary published by the Financial Times, columnist Gideon Rachman argued that the deal was “naive” and will increase China’s leverage over Europe:

“Over the past year, China has crushed the freedom of Hong Kong, intensified oppression in Xinjiang, killed Indian troops, threatened Taiwan and sanctioned Australia. By signing a deal with China nonetheless, the EU has signaled that it doesn’t care about all that….

“China has repeatedly demonstrated its willingness to use its economic power as a strategic weapon. By deepening their economic reliance on China — without coordinating their policy with fellow democracies — European nations are increasing their vulnerability to pressure from Beijing. That is a remarkably shortsighted decision to make.”

Sanctions and Countersanctions

The current standoff revolves around burgeoning evidence of massive human rights abuses by the Chinese Communist Party against Uyghur Muslims in Xinjiang, a remote autonomous region in northwestern China. Human rights experts say that at least one million Muslims are being detained in hundreds of internment camps, where they are subject to torturemass rapesforced labor and sterilizations.

In November 2018, Western countries including France, Germany and the United States called on China to close down detention camps in Xinjiang.

In October 2019, the Trump Administration imposed sanctions on Chinese individuals and entities accused of responsibility for abuses against Uyghurs in Xinjiang. It imposed additional sanctions in MayJune and July 2020. On January 19, 2021, then U.S. Secretary of State Mike Pompeo determined that China, under the direction and control of the Chinese Communist Party, has committed genocide against Uyghurs and other ethnic and religious minority groups in Xinjiang.

In March 2021, the European Union, the United Kingdom and Canada, presumably under pressure from the United States, announced (herehere and here) that they too had imposed sanctions on Chinese officials accused of Uyghur-related human rights abuses in Xinjiang.

China responded by imposing sanctions (herehere and here) on more than two dozen European, British and Canadian lawmakers, academics and think tanks.

The sanctioned individuals, who are prohibited from entering China, include German lawmaker Reinhard Bütikofer, who chairs the European Parliament’s delegation to China; four other Members of the European Parliament; Tom Tugendhat, who chairs the Foreign Affairs Committee of the British Parliament; four other Members of the British Parliament; Sjoerd Wiemer Sjoerdsma of the Dutch Parliament; Samuel Cogolati of the Belgian Parliament; Dovilė Šakalienė of the Lithuanian Parliament; Iain Duncan Smith, former leader of the British Conservative Party; British scholar Joanne Nicola Smith Finley; German scholar Adrian Zenz; and Swedish scholar Björn Jerdén.

The individuals have publicly criticized the Chinese government for human rights abuses. Sjoerdsma, for instance, recently called for a boycott of the Winter Olympics in Beijing in 2022. Cogolati and Šakalienė have drafted genocide legislation, while Zenz has written extensively on the detention camps in Xinjiang.

China also sanctioned the EU’s main foreign policy decision-making body, known as the Political and Security Committee; the European Parliament’s Subcommittee on Human Rights; the Berlin-based Mercator Institute for China Studies; the UK-based China Research Group; the Conservative Party Human Rights Commission; and the Alliance of Democracies Foundation, a Danish think tank founded by former NATO secretary-general Anders Fogh Rasmussen.

China contends that its sanctions are tit for tat — morally equivalent retaliation — in response to those imposed by Western countries. In fact, the European sanctions are for crimes against humanity, whereas the Chinese sanctions seek to silence European critics of the Chinese Communist Party.

In a March 22 statement, China’s Ministry of Foreign Affairs said:

“The Chinese side urges the EU side to reflect on itself, face squarely the severity of its mistake and redress it. It must stop lecturing others on human rights and interfering in their internal affairs. It must end the hypocritical practice of double standards and stop going further down the wrong path. Otherwise, China will resolutely make further reactions.”

In the days before the European Parliament voted on the CAI, Chinese President Xi Jinping reportedly called German Chancellor Merkel and French President Macron, and Chinese Premier Li Keqiang phoned Italian Prime Minister Mario Draghi, in an unsuccessful effort to save the investment deal.

On May 20, Global Times, the daily tabloid newspaper owned by the Chinese Communist Party, responded to the decision to halt ratification of the CAI:

“The conditions imposed by the European Parliament for resuming ratification process are rough and arrogant. It demands that ‘China lift the sanctions before Parliament can deal with the CAI.’ These sanctions imposed by China are actually countermeasures against the EU’s sanctions over Chinese officials and entities.

“There is no way China will lift those sanctions under pressure from the European Parliament. The European Parliament said in the motion that it ‘calls on the [European] Commission to use the debate around the CAI as leverage to improve the protection of human rights’ in China. Such an intent will be resisted and despised by China.”

On May 21, China’s foreign ministry spokesman Zhao Lijian said that he hoped the EU “could do less emotional venting and more rational thinking, and make correct decisions in line with its own interests.”

On May 25, Chinese Foreign Minister Wang Yi launched a blistering attack against European sanctions: “Our European friends know what is genocide.”

Responses

The European Parliament’s decision to freeze ratification of the CAI has been greeted with broad approval. Reinhard Bütikofer, the German MEP sanctioned by China and co-author of the resolution, said that Beijing’s efforts to silence criticism of the Chinese Communist Party were “as ridiculous as they are arrogant, and they will fail.” Using language from the Chinese playbook, he added“With its sanctions, China has miscalculated. They should learn from their mistakes and rethink.”

In an interview with Euronews, Bütikofer said that even if China lifts its sanctions, the CAI would have to be modified in order for it to be ratified:

“Basically, the resolution says this agreement is in the freezer, buried very deep in the freezer. And we demand that China lift its sanctions before the European Parliament could be willing to consider dealing with the matter.

“When you look at the substance of the deal, there are issues not really addressing the application of forced labor in China. The deal doesn’t give a very strong conflict-resolution mechanism. If China fails to implement the provisions of the deal, the instruments that we have to force them to live by them, the letter that they have signed onto, are extremely weak.

“There are restrictions with regard to market access. This is neither providing a level playing field nor is really very beneficial to European industry, with a few exceptions maybe. And on the other hand, it allows the Chinese side to enjoy national treatment with regard to European media while European media are still excluded from the Chinese market completely.”

Armin Laschet, a leading candidate to succeed Merkel as German chancellor in general elections in September, said that the CAI could not be ratified unless China lifted its sanctions: “If you want to be our partner, you have to show mutual respect. So, on that issue I would like to see movement on the Chinese side.”

Portuguese MEP Pedro Marques said that China was guilty of an “attack against European democracy.” He declared: “We will not tolerate it.”

Adrian Zenz, the scholar sanctioned by China for unearthing human rights abuses in Xinjiang, tweeted that overwhelming support for freezing ratification of the CAI “is akin to a death sentence.”

China expert Bethany Allen-Ebrahimian said:

“The Chinese government has bungled its relationship with the EU, just as it seemed that Beijing had successfully driven a wedge between a Trump-weary Europe and the Biden administration.”

Indian foreign affairs expert Gautam Chikermane wrote that the EU needs to rethink its first principles “thrice over” and decide what it stands for:

“The announcement says the CAI or any other agreement with China will not move forward while the sanctions are in place. In a corollary, if China pulls back on sanctions, the EU will pull back its rejection. This is geopolitical naivete….

“China cannot and will not be tamed. It will not adhere to the rule of law. It will not give up on its uncouth wolf warriors. It will not change its debt trap diplomacy. It will not end the weaponization of political systems, in this case the fault lines of democracies, to smother democracies. If it is counter sanctions today, it will be intellectual property theft tomorrow, and 5G data surveillance of free citizens next. Under Xi Jinping, China has become a hydra-headed monster.

“Further, the gentle fine print the EU has placed is little more than good manners. Behind this fine print lie the dark lobbies of the EU’s largest corporations. There is danger that the tail of EU capitalism will wag the dog of member states and sovereign democracies into submission….

“The values of liberty, equality and fraternity the EU has floated and disseminated across the world in the 20th century need to be expanded into the 21st century. Right now, these values, and through them the citizens of EU nations, are being ruthlessly smothered by Beijing.

“That the EU continues to imagine business as usual with such a country shows the internal contradictions of values, now sugar-coated by petty corporate interests.”

Japanese analyst Katsuji Nakazawa, writing for Nikkei Asiaadded:

“The European Parliament has voted overwhelmingly to freeze the ratification process of an investment pact with China — a deal that Beijing six months ago considered a big strategic victory.

“It has sent shock waves throughout China, with only one month and change before arguably the most important event in President Xi Jinping’s era, the 100th anniversary of the Chinese Communist Party’s establishment, on July 1.

“Some party members are worried that the centenary’s festive mood will be dampened by the harsh diplomatic reality. Not only are China’s relations with the U.S. bad, but now EU relations are stuck in a ditch….

“With Xi playing his cards to remain as China’s top leader beyond the party’s next quinquennial national Congress in the autumn of 2022, he is in no mood to admit to policy failure. Therefore, no major reversals are on the horizon.”

Perhaps Andreas Fulda, a German scholar of China, said it best: “While halting the ratification of CAI is good, scrapping CAI altogether would be better.”

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN

Iran’s largest warship, the Kharg, mysteriously catches fire and sinks in the Gulf of Oman

I wonder who did this?

(zerohedge)

Iran’s Largest Warship Mysteriously Catches Fire And Sinks In Gulf Of Oman

 
WEDNESDAY, JUN 02, 2021 – 07:00 AM

Just as negotiators were preparing to meet in Vienna on Wednesday to wrap up the latest round of talks on reviving the Iran nuclear deal, Iran’s largest warship caught fire Wednesday in the Gulf of Oman and sank under unclear circumstances.

The Fars and Tasnim news agencies reported that efforts to save the support warship, named Kharg (after the island where Iran’s main oil terminal sits), were a failure. The fire started around 0225 local time roughly 1,270 kilometers (790 miles) southeast of Tehran in the Gulf of Oman, not far from the Strait of Hormuz, where several Saudi oil tankers have been attacked in recent years (the US Navy accused the Iranians of using limpet mines to carry out these attacks).

The blaze reportedly raged for 20 hours before the ship sank. It appears the entire crew safely left the vessel. The fire occurred during a “training naval operation” and it’s not clear exactly what caused it.

“All efforts to save the vessel were unsuccessful and it sank,” Iran’s semi-official Fars News Agency said.

According to the AP, the Kharg is one of only a few vessels in the Iranian navy capable of providing replenishment at sea for other ships. The Kharg can also lift heavy cargo, while also carrying a launch pad for helicopters. The warship, built in Britain and launched in 1977, entered the Iranian navy in 1984 after lengthy negotiations following Iran’s 1979 Islamic Revolution.

The ship had light armament and was capable of carrying three helicopters on board, one on the helipad and two more stashed in hangars.

Typically, the Iranian navy patrols the Gulf of Oman and the surrounding area, while the paramilitary Revolutionary Guard patrols the shallower waters in the Strait of Hormuz and the Persian Gulf.

Back in April, another Iranian ship called the MV Saviz, which was believed to be a Guard base and anchored for years in the Red Sea off Yemen, was targeted in an attack suspected to have been carried out by Israel. It’s certainly possible that Israel might be behind this attack as well, as tensions have flared recently between Israel and Iran following the latest war between Israel and Hamas in Gaza.

Iranian authorities say the vessel has been used in anti-piracy operations.

While there were no reports of casualties, the sinking of the Kharg marks the latest naval disaster for Iran following a 2020 incident that occurred during an Iranian military training exercise. At the time, a missile mistakenly struck a naval vessel near the port of Jask, killing 19 sailors and wounding 15. Before that, in 2018, an Iranian navy destroyer sank in the Caspian Sea.

end

IRAN/
THEN: 
Major blaze at Iran’s largest refiner: Again, I wonder who cold have done this/
(zerohedge)

Massive Blaze Engulfs Tehran Refinery Just Hours After Sinking Of Iranian Warship

 
WEDNESDAY, JUN 02, 2021 – 12:05 PM

A major oil refinery in Tehran is now engulfed in a huge blaze just hours after on Wednesday morning the Islamic Republic’s largest warship caught fire and sank in the Gulf of Oman under mysterious circumstances.

Iranian state Tasnim news in a breaking report has identified it as the Shahid Tondguyan oil refinery, considered among the country’s largest. 

Coincidence? Or are we now witnessing a return to the summer of 2020 which saw tit-for-tat sabotage attacks on oil tankers, military and nuclear sites involving Israel and Iran? 

The timing is also interesting given Iran and the West appear on the verge of completing a restored nuclear deal in Vienna, which means the US would drop sanctions and allow Iran to pursue ‘peaceful nuclear energy’ development. Israel has vowed to do everything to prevent such a deal which Tel Aviv sees as providing a path to nuclear weapons. 

Multiple videos show a massive blaze in progress, billowing thick black smoke high over the Iranian capital… 

Iranian state TV has further described in an unconfirmed report that one of the emergency lines of liquefied gas erupted and caused the large fire. 

According to Reuters citing local officials, there’s been no reports of casualties. 

And more limited details are as follows: “The fire struck the state-owned Tondgooyan Petrochemical Co. to the south of Tehran on Wednesday night. Firefighters believe it struck a pipeline for liquefied petroleum gas at the facility. That’s according to a report on Iranian state television. Associated Press journalists in central Tehran, some 20 kilometers away, could see the black smoke rise in the distance.”

developing

 
 
 

end

IRAN/ISRAEL/USA/EU/RUSSIA/ETC

Iran Says Nuclear Negotiators Close To Agreement – Remaining Barriers “Not Unsolvable” 

 
WEDNESDAY, JUN 02, 2021 – 03:02 PM

Iran now says that remaining contested issues between it and the United States are “not unsolvable” and that all parties appear in agreement on this point at a moment the latest round of talks in Vienna are wrapping up. The Islamic Republic’s deputy foreign minister and chief negotiator Abbas Araghchi told state TV on Wednesday that of nuclear issues which remain, presumably including the dropping of US sanctions, they “have reached a point where everyone believes that they’re not unsolvable.”

“All the delegations are determined and there is full seriousness” he added, while also noting Wednesday’s meeting will decide a “return date” for talks, also as after last week it was widely reported that draft documents were being finalized, suggesting a deal which includes US reentry into the JCPOA is imminent. 

Via AFP

“I do not think there will be much delay between today’s meeting and the next round of talks. Like in the previous rounds, we will probably return to Vienna after consulting with our capitals,” Araqchi observed further. Reviewing the format of the talks an ‘indirect’ nature of Washington’s negotiating involvement, Reuters writes that “Such meetings of the remaining parties – Iran, Russia, China, France, Britain, Germany and the European Union – in a format known as the Joint Commission have punctuated and bookended indirect talks between Iran and the United States on both countries returning to full compliance with the 2015 deal.”

“The EU chairs Joint Commission meetings in the basement of a luxury hotel and leads shuttle diplomacy between Iranian envoys and a U.S. delegation based in another luxury hotel across the road. Iran refuses to hold direct talks with Washington,” the report details. 

Despite the optimistic reports of major progress of late, the big geopolitical wildcard which puts a question mark over the whole proceedings is Israel and an embattled prime minister on his way out politically who just days ago vowed that “containment” of a nuclear armed Iran “is not an option”. PM Netanyahu further said:

“I’ve told this to my friend for 40 years, Joe Biden, and I said to him, ‘With or without a deal, we will continue to do everything in our power to thwart the armament of Iran with nuclear weapons.’

And interestingly also on Wednesday there was the mysterious sinking of Iran’s largest warship, the Kharg, which caught fire in the Gulf of Oman and sank.

The Fars and Tasnim news agencies reported that efforts to save the Kharg (after the island where Iran’s main oil terminal sits), were a failure. The fire started around 0225 local time roughly 1,270 kilometers (790 miles) southeast of Tehran in the Gulf of Oman, not far from the Strait of Hormuz, where several Saudi oil tankers have been attacked in recent years (the US Navy accused the Iranians of using limpet mines to carry out these attacks).

The question remains: are we seeing an emboldened Netanyahu with nothing to lose politically (and much to gain as the ‘national security hawk’) ordering covert action to sink the positive momentum in Vienna? 

END

ISRAEL//IRAN

Netanyahu threatens the elimination of Iran threat even if USA and Biden disagrees with their decision

(zerohedge)

Desperate Netanyahu Threatens “Elimination” Of Iran Threat Even If “Friction” With US Results

 
TUESDAY, JUN 01, 2021 – 05:00 PM

Israeli Prime Minister Benjamin Netanyahu, who increasingly looks to be on his way out of power, said on Tuesday that’s he’s willing to worsen relations with the US under the Biden administration if it means preventing Iran from acquiring a nuclear weapon.

“An Iranian nuclear bomb is a threat for the continuation of the Zionist project and we must fight it relentlessly,” he said at a ceremony on the occasion of Israel’s new Mossad chief David Barnea taking the helm. “If we have to choose between friction with our great friend the U.S. and the elimination of this existential threat, the elimination of the threat will come first,” Netanyahu asserted.

The embattled PM’s rhetoric is turning increasingly bellicose and some might say desperate at a moment eleven days of fighting just wrapped up in Gaza under a tenuous ceasefire deal, and as Iran is in the midst of the fifth and final round of talks with world powers in Vienna which seek restoration of the JCPOA nuclear deal. Perhaps even more impactful and driving Netanyahu’s seeming desperation is that the country is on the cusp of seeing its first government in 12 years formed without Bibi as leader.

This after the Sunday night political shocker wherein his longtime close ally Naftali Bennett of the Yamina party (and now likely next PM) announced plans to align with Lapid to oust Netanyahu (which swiftly led Netanyahu’s supporters to brand Bennett a “traitor”). But the man who consistently ran on a national security platform based on greatly hyping threats to the Jewish state’s survival has himself long survived many near-misses politically over the past decade in power.

“I’ve told this to my friend for 40 years, Joe Biden, and I said to him, ‘With or without a deal, we will continue to do everything in our power to thwart the armament of Iran with nuclear weapons,’” Netanyahu continued in is Tuesday remarks.

And here’s more on the speech from Axios, particularly words which suggest Netanyahu is ready to go so far as ordering a preemptive attack on Iran should a ‘bad deal’ be announced from Vienna:

He stressed that he told President Biden Israel would continue its efforts to prevent Iran from obtaining the bomb with or without a nuclear deal. “Containment is not an option,” Netanyahu said.

Over the past month there’s been delegations sent from Tel Aviv to Washington to try and convince the Biden White House against leaving Israel out in the cold (as Tel Aviv sees it). The admin has meanwhile sought to assure its closest Mideast ally that it will be consulted and its concerns taken into account before anything final is reached. 

Israel is also expected to press Washington on a proposed $1 billion in emergency aid package following the eleven-day Gaza war, and to rapidly replenish the costly Iron Dome defense system.

The next major meeting is planned for Thursday between Israeli Defense Minister Benny Gantz and Secretary of Defense Lloyd Austin. 

end
 

TURKEY/

Lira plummets to record lows after Erdogan orders its central bank to slow inflation by cutting rates…no kidding!

(zerohedge)

Lira Craters To Record Low After Erdogan Orders Central Bank To Slow Inflation By Cutting Rates

 
TUESDAY, JUN 01, 2021 – 05:47 PM

By now, even the shoeshine boy knows that central banks are one-print trick pony farcical joke, one which is exposed not just by cryptos which have emerged as a clear alternative to fiat currencies, but by central banks themselves who are adopting their own digital currencies knowing well that the days of traditional paper money are numbered.

And yet within the giant Venn Diagram of the “big farce”, there is a smaller Venn Diagram, which is basically everything and anything Turkey-related, and whose farcical content is exponentially more concentrated because while central banks have become the laughing stock of the financial world in its twilight days before the upcoming great reset, nothing is as funny as Turkey’s despotic ruler and one-man government-cum-central bank, Erdogan, inverting central bank orthodoxy on its head without a trace of sarcasm.

That’s precisely what happened moments ago when the Turkish despot president, who just two months ago fired his central bank governor – the second such sacking in 3 months – for hiking rates too much, announced that he had spoken with the new Turkish central bank governor, and said that “we must have lower rates” – read Erdogan’s puppet at the CBRT now has a clear order – to, get this, slow inflation:

  • *ERDOGAN: `I SPOKE WITH CENBANK GOVERNOR, WE MUST LOWER RATES’
  • *ERDOGAN CALLS FOR LOWER INTEREST RATES TO SLOW INFLATION
  • *ERDOGAN SAYS RATES CAN FALL, CITING `JULY-AUGUST’ PERIOD

That’s right: Erdogan will fight Turkey’s soaring inflation with… lower rates.

And no, he was not joking much to the shock of all those long-suffering lira longs who saw all of their hard-earned “carry” gains vaporized in milliseconds as the Turkish currency crashed to a new all time low.

And while we wait for Turkey to finally implode into a smoldering pile of hyperinflation rubble as foreign investors finally decide they have had enough with Erdogan’s surreal circus, we now know why one month ago Turkey was among the first nations to crackdown on bitcoin when it banned cryptocurrency payments. Considering the coordinated campaign against crypto by all other central banks, we can only imagine the level of monetary insanity that is about to be unleashed by all other clown in charge.

end

6.Global Issues

CORONAVIRUS UPDATE/VACCINE//

Two commentaries:  deadly Fauci emails revealed..

(zerohedge)

Fauci Emails Reveal Damage Control Scramble After ZeroHedge Spotlights Man-Made COVID-19 Theory

 
TUESDAY, JUN 01, 2021 – 07:22 PM

In January, 2020, when the World Health Organization insisted that COVID-19 wasn’t transmissible between humans, and Dr. Anthony Fauci said that the risk to the American public from the virus was “low,” officials at the National Institutes of Health were scrambling to perform damage control after a controversial – and now withdrawn – study suggested that there were HIV-like ‘insertions’ included in SARS-CoV-2.

The study, “Uncanny similarity of unique inserts on the 2019-nCoV spike protein to HIV-1 gp120 and Gag,” posited that segments of the virus’s RNA had no relation to other coronaviruses such as SARS, and instead appeared to be closer to HIV.

Specifically:

To further investigate if these inserts are present in any other corona virus, we performed a multiple sequence alignment of the spike glycoprotein amino acid sequences of all available coronaviruses (n=55) [refer Table S.File1] in NCBI refseq (ncbi.nlm.nih.gov) this includes one sequence of 2019-nCoV[Fig.S1]. We found that these 4 insertions [inserts 1, 2, 3 and 4] are unique to 2019-nCoV and are not present in other coronaviruses analyzed.

We then translated the aligned genome and found that these inserts are present in all Wuhan 2019-nCoV viruses except the 2019-nCoV virus of Bat as a host [Fig.S4]. Intrigued by the 4 highly conserved inserts unique to 2019-nCoV we wanted to understand their origin. For this purpose, we used the 2019-nCoV local alignment with each insert as query against all virus genomes and considered hits with 100% sequence coverage. Surprisingly, each of the four inserts aligned with short segments of the Human immunodeficiency Virus-1 (HIV-1) proteins.

The now-withdrawn paper piqued the interest of several journalists, including Zero Hedge (whose account Twitter banned one day after we updated our coverage of the article, claiming we ‘doxed’ a Chinese scientist in an earlier report).

Thanks to a recent Freedom of Information Act (FOIA) request for Fauci’s emails, we now know that the National Institutes of Health was not only aware of the Indian report, but were actively discussing how to handle it.

A January 31 email from AFP’s Issam Ahmed asks NIH immunologist Dr. Barney Graham for comment:

“I was told by a contact you may be willing to give an opinion of this paper that has just gone live. It suggests the new Coronavirus has four inserts similar to HIV-1 and this is not a coincidence,” reads the email.

Graham immediately forwards the correspondence to the Office of Communications and Government Relations (OCGR)saying “This is one we don’t want to answer without high-level input, but wanted you to know about the rising controversy.”

Two days later, Jennifer Routh OCGR replies, telling Graham: “OCGR is going to send a note to the reporter to decline, noting that the paper is not peer-reviewed. Please let us know if you receive similar requests.”

That same Sunday morning, Fauci is looped in – with Sir Jeremy Farrar forwarding Zero Hedge‘s article after mentioning how World Health Organization Director Tedros Adhanom and the organization’s cabinet chief were in ‘conclave’ – ostensibly on how to manage the narrative – noting “If they do prevaricate [bullshit the public], I would appreciate a call with you later tonight or tomorrow to think how we might take forward.”

“Do you have a minute for a quick call?” Fauci replies, after having called the Indian paper “really outlandish.”

 Of course, the Indian paper was quickly withdrawn by its authors, and the notion that COVID-19 could have been man-made was rendered radioactive – for a while.

In April of last yearDr Luc Montagnier – winner of the Nobel Prize for Medicine in 2008 for “discovering” HIV as the cause of the AIDS epidemic – claimed that SARS-CoV-2 is a manipulated virus that was accidentally released from a laboratory in Wuhan, China.

“With my colleague, bio-mathematician Jean-Claude Perez, we carefully analyzed the description of the genome of this RNA virus,” explains Luc Montagnier, interviewed by Dr Jean-François Lemoine for the daily podcast at Pourquoi Docteur, adding that others have already explored this avenue:

Indian researchers have already tried to publish the results of the analyses that showed that this coronavirus genome contained sequences of another virus, … the HIV virus (AIDS virus), but they were forced to withdraw their findings as the pressure from the mainstream was too great.

The plot thickened further as a study by Chinese scientists published in May 2020 found that the novel coronavirus uses the same strategy to evade attack from the human immune system as HIV.

Then, last June, former MI-6 head Sir Richard Dearlove said he believes COVID-19 is a manmade virus which contains ‘inserted’ sections that accidentally escaped from a Chinese laboratory, according to The Telegraph.

But Sir Richard, 75, pointed to a scientific paper published this week by a Norwegian-British research team who claim to have discovered clues within Covid-19’s genetic sequence suggesting key elements were “inserted” and may not have evolved naturally.

Entitled “A Reconstructed Historical Aetiology of the SARS-CoV-2 Spike”, the new study, seen by The Telegraph, suggests the virus is “remarkably well-adapted virus for human co-existence” and is likely to be the result of a Wuhan lab experiment to produce “chimeric viruses of high potency”.

The paper concludes: “Henceforth, those who would maintain that the Covid-19 pandemic arose from zoonotic transfer need to explain precisely why this more parsimonious account is wrong before asserting that their evidence is persuasive, most especially when, as we also show, there are puzzling errors in their use of evidence.” –The Telegraph

The Australian government canceled further development of a COVID-19 vaccine in December 2020 after several trial participants had false positive tests for HIV.

More recently, two European virologists say they’ve found genetic ‘fingerprints’ which prove COVID-19 was man made.

British professor Angus Dalgleish – best known for creating the world’s first ‘HIV vaccine’, and Norwegian virologist Dr. Birger Sørensen – chair of pharmaceutical company, Immunor, who has published 31 peer-reviewed papers and holds several patents, wrote that while analyzing virus samples last year, the pair discovered “unique fingerprints” in the form of “six inserts” created through gain-of-function research at the Wuhan Institute of Virology in China.

They also conclude that “SARS-Coronavirus-2 has “no credible natural ancestor” and that it is “beyond reasonable doubt” that the virus was created via “laboratory manipulation.”

We can only imagine what the NIH and Fauci are saying about this theory now.

end

Another email shows a researcher who funded the Wuhan lab admits to manipulating coronaviruses but more important thanked Fauci for dismissing the lab leak theory

(Watson/SummitNews)

Email Shows Researcher Who Funded Wuhan Lab, Admits Manipulating Coronaviruses, Thanked Fauci For Dismissing Lab-Leak Theory

 
WEDNESDAY, JUN 02, 2021 – 08:16 AM

Authored by Steve Watson via Summit News,

Dr Fauci’s emails have been released via a Freedom of Information Act request, and there is some pretty interesting stuff in them, particularly one email where a researcher who funded the Wuhan Institute of Virology thanks Fauci for publicly dismissing the lab leak theory early on during the pandemic.

The email from Dr. Peter Daszak, President of the EcoHealth Alliance, a group that has extensive ties to the Wuhan lab gain of function research, sent the email to Fauci on April 18, 2020, roughly six weeks after the outbreak had taken hold.

The email states:

“As the Pl of the ROl grant publicly targeted by Fox News reporters at the Presidential press briefing last night, I just wanted to say a personal thank you on behalf of our staff and collaborators, for publicly standing up and stating that the scientific evidence supports a natural origin for COVID-19 from a bat-to-human spillover, not a lab release from the Wuhan Institute of Virology.

From my perspective, your comments are brave, and coming from your trusted voice, will help dispel the myths being spun around the virus’ origins. Once this pandemic’s over I look forward thanking you in person and let you know how important your comments are to us all.”

Fauci responded to the email the day after, writing

“Peter:

Many thanks for your kind note.

Best Regards,

Tony”

Daszak, who also works for the World Health Organisation, is on record admitting that he was involved with manipulating coronaviruses. Here is a video of him talking in DECEMBER 2019 about how ‘good’ the viruses are for messing around with in a lab:

Daszak notes that “coronaviruses are pretty good… you can manipulate them in the lab pretty easily… the spiked proteins drive a lot about what happens. You can get the sequence you can build the protein, we work with Ralph Baric at UNC to do this, insert into the backbone of another virus and do some work in a lab.”

Elsewhere, the emails show that Fauci also knew very early on, before the WHO even declared a pandemic, that researchers suspected the virus had been ‘potentially engineered’ in a lab, as this exchange with Kristian G. Andersen of the Scripps Research Institute from January 2020 shows:

The emails with Fauci show that Daszak had already dismissed the lab leak notion nearly a year before that ‘investigation’ began, and despite other researchers saying it looked potentially engineered.

Perhaps the most disturbing aspect of this is that Daszak was one of the lead “investigators” on the WHO panel tasked with looking into the origins of the pandemic.

Is it any surprise that this guy, whose organisation has shovelled at least $600,000 to the Wuhan Institute of Virology in the past few years to play around with coronaviruses inside the lab, determined within 3 hours of visiting the lab in February 2021 that there was ‘nothing to see here’?

Peter Daszak (R), Thea Fischer (L) and other members of the World Health Organization (WHO) team investigating the origins of the COVID-19 coronavirus, arrive at the Wuhan Institute of Virology in Wuhan in China’s central Hubei province on February 3, 2021. (Photo by Hector RETAMAL / AFP) (Photo by HECTOR RETAMAL/AFP via Getty Images)

Daszak, like Fauci, has also since denied that there was any gain of function research being conducted at the Wuhan lab, and that it wasn’t being funded by EcoHealth Alliance or via the NIH with US tax dollars.

These are blatant lies, as there is mountains of evidence that confirms this was exactly the case.

Why would they deny it when it can be so easily proven the research was being conducted?

Another interesting factoid about Daszak is that he was employed as an ‘expert fact checker’ by Facebook when it was monitoring and removing ‘misinformation’ about the origins COVID on its platform.

If all of that doesn’t scream coverup then what does?

*  *  *

end
 
We have been reporting on this for many months; a link between Pfizer vaccine and Myocarditis
You will recall that Israel is the highest vaccinated country in the world and they used the Pfizer vaccine
(M RNA). The vaccine corona attached onto the heart muscle and causes this inflamation
(zerohedge)
 

Israel Spots Probable Link Between Pfizer Vaccine, Myocarditis

 
WEDNESDAY, JUN 02, 2021 – 09:23 AM

According to Reuters, Israel’s Health Ministry released a statement Tuesday describing how Pfizer Inc. and BioNTech SE’s COVID-19 vaccine could be linked to dozens of heart inflammation cases, mainly observed in younger men. 

So far, the vaccine has been administered to 5 million people in the country and could soon be expanded to teens as young as 12-15 years old. 

The ministry’s findings found 275 cases of myocarditis between December 2020 and May 2021, including 148 cases within a month after the first vaccination. Of these, 27 cases after the first dose and 121 after the second. Half of the people had previous medical conditions. 

According to the findings, most patients who experienced heart inflammation spent less than four days in the hospital, and 95% of the cases were classified as mild. 

The study found “there is a probable link between receiving the second dose (of Pfizer) vaccine and the appearance of myocarditis among men aged 16 to 30.” 

Pfizer said in a statement that it had reviewed the Israeli observations of myocarditis, noting that no link to its vaccine has been confirmed. 

“A careful assessment of the reports is ongoing and it has not been concluded,” Pfizer said. “Adverse events, including myocarditis and pericarditis, are being regularly and thoroughly reviewed by the companies as well as by regulatory authorities.”

Meanwhile, Nachman Ash, Israel’s pandemic-response coordinator, told local radio station Radio 103 FM, “the health committee gave the green light for vaccinating 12- to 15-year-olds, and this will be possible as of next week.” 

An advisory group with the U.S. Centers for Disease Control and Prevention recommended last month further examination into the possible link between myocarditis and mRNA vaccines. 

The handful of myocarditis cases seem to outweigh the positives as more than 55% of Israel’s population has already been vaccinated. 

While the country continues a vaccination spree, what’s not being widely spoken about is a new study that suggests natural immunity to the virus could last a lifetime.

 

end 

Michael Every // commentary on the days most important topics

(courtesy Michael Every 

Rabo: China Can Only Achieve Its Goals Under A New Bretton Woods Regime

 
WEDNESDAY, JUN 02, 2021 – 09:39 AM

By Michael Every of Rabobank

Shift or Spin?

As Bloomberg notes today, “China is Digging Deep Into Its Currency Toolkit to Manage Yuan”. This follows the first hike in the FX reserve requirement ratio since 2007. As the article goes on to point out: “The PBOC is seeking to curb speculation in the yuan without derailing a plan to liberalize the currency and promote its global usage.” Now this statement is true. It’s also not going to be possible – not as a critique of China, you understand, but for anyone in that position.

You cannot liberalize a currency in order to internationalize it, and maintain exchange rate stability once global markets have a free supply of it, and can push it up, or down: unless everything else except FX rates –growth, inflation, interest rates, trade flows, and capital flows– are held stable between China and the rest of the world. At least not without re-writing the global financial rules so we effectively go back to a new Bretton Woods (pegged to…?).

Allow me to remind readers that under the gold-backed Bretton Woods, member countries could only change their exchange rate against the metal (and thus the US dollar) by more than 10% with IMF approval, which was contingent on its determination that the applicant’s balance of payments was in a “fundamental disequilibrium”. Any country that changed FX rates without approval or after being denied approval was denied access to the IMF entirely. Given that “fundamental disequilibrium” was never defined, very few >10% movements were seen. Indeed, some FX rates only moved once in two decades. Imagine being an FX broker going for lunch and missing the only trade of your career; and contrast that with our 24/7 trade-FX-from-home culture of today embraced by those who seem to pine for the gold that backed Bretton Woods.

In short, unless we get a huge shift either in China or the rest of the world, or both, then talk of CNY internationalization is more likely to be spin – which is something we have argued since the Chinese currency was first put in the IMF basket of “global reserve currencies” back in 2015,…to no real effect whatsoever so far in terms of its global usage, as we see above.

Not entirely unrelated, Bloomberg also reports: “Xi Seeks ‘Lovable’ Image for China in Sign of Diplomatic Rethink”. Chinese officials have been told to create a “trustworthy, lovable, and respectable” image for the country; to “make friends extensively, unite the majority, and continuously expand its circle of friends with those who understand and are friendly to China.”; and the missive is to get “a grip on tone” in global communications, and to be “open and confident, but also modest and humble.” Obviously, such a step would be welcome, not just from China, but globally. However, the question of shift or spin again emerges. After all, Beijing has been embracing so-called ‘Wolf Warrior’ diplomacy since 2017, and its representatives around the world, and the excitable Global Times, have used language strong enough to get pushback even from European governments; and the Global Times’ editor has even openly advocated an attack on Australia should a war start in the South China Sea.

Indeed, the Global Times’ take on the new national PR direction is a little different from Bloomberg’s. Its headline is China needs a voice that matches its national strength, international status: Xi”; and it states China needs “to develop a voice in international discourse that matches China’s comprehensive national strength and international status,” and that “experts” say “China will not keep silent amid a stigmatization and propaganda warfare launched by the US and its allies.” Perhaps underlining the communication and perception gaps that have emerged in recent years, it adds: “Analysts said that due to the cultural tradition of humility of the Chinese nation, China is not a country that loves promoting itself to other nations, and it doesn’t like playing tit-for-tat with others, and prefers to treat others with kindness. This is a key reason why China’s voice in the Western-dominated global public opinion field is yet to match its national strength and influence.” Western ‘China hawks’ –who can be wolfish themselves– would say there is more to it than that as the Endless Frontiers Act progresses through Congress; Australia and Japan accelerate defence spending; and the UK sends an aircraft carrier to sail the South China Sea.

The Global Times then quotes a Beijing-based expert on international relations: “it’s easy for China to fix China-US ties immediately. As long as China announces it gives up 5G technology, space exploration, all advanced weapons and economic development, all struggles between China and the US would disappear. To stay weak and obey, and accept Western narrative hegemony in the international field of public opinion is the key for a non-Western country to keep the ties with the US friendly. It’s never about democracy and freedom; it’s about strength and autonomy.”

And it continues by quoting a senior Chinese media professional and European studies expert based in France, who states: “…many countries’ political elites and people in regions like Africa, Southeast Asia and Middle East are defending or supporting China’s stance and image in the international arena. This is an optimistic trend…It’s impossible for China to convince every single country and make all Western countries friendly, but it’s possible for China to win the support from the majority of the international community.

In other words, unlike the Bloomberg spin, the broader thrust seems to be towards China building PR ‘market share’ *outside* the West – which it is already successfully doing with its exports.

Meanwhile, shift or spin is very much the issue for central banks too. The RBA did nothing yesterday, but next month is decision time: will it stick to a 3-year policy for yield curve control, or start to allow this to roll down the curve? Likewise, the ECB saw May Eurozone CPI above its “below but close to 2.0%” inflation target yesterday, months ahead of its target date: and all it took was a massive ‘bullwhip’ supply-chain shock that it had entirely failed to forecast!

Will the ECB shift towards slightly tighter monetary policy earlier than had been expected as well? More likely, this entirely accidental success on inflation will see central-bank spin that such price hikes are “transitory” – as global oil prices rise again as demand picks up, and all US JBS meat-packing plants were briefly shut down under a new Russian cyberattack; and that the ECB fully understands the supply-chain issues they did not predict a few months ago. (Which obviously also run through US/Western-China relations, and USD/CNY, by the way.)

 
end

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

INDIA//CORONAVIRUS UPDATE/VACCINE UPDATE
 
NONE
 
 
END

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

Euro/USA 1.2187 DOWN .0030 /EUROPE BOURSES /ALL GREEN   

USA/ YEN 109.72 UP 0.229 /NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.4162  UP   0.0007  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.2071  UP .0007

 

Early THIS  WEDNESDAY morning in Europe, the Euro FELL BY 30 basis points, trading now ABOVE the important 1.08 level FALLING to 1.2187 Last night Shanghai COMPOSITE CLOSED DOWN 27.58 PTS OR 0.76% 

//Hang Sang CLOSED DOWN 179,36 PTS OR 0.58%

 

/AUSTRALIA CLOSED UP 1.04% // EUROPEAN BOURSES OPENED ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES CLOSED ALL GREEN   

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 170.38 PTS OR 0.58%

/SHANGHAI CLOSED DOWN 27.58 PTS OR 0.76% 

Australia BOURSE CLOSED UP 1.04%

Nikkei (Japan) CLOSED UP 131.80 PTS OR 0.46%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1896.60

silver:$27.76-

Early TUESDAY morning USA 10 year bond yr: 1.609% !!! DOWN 1 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 2.280 DOWN 1  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 90.07  UP 24 CENT(S) from TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  WEDNESDAY NUMBERS 1: 00 PM

Portuguese 10 year bond yield: 0.45% DOWN 2  in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.079%  DOWN 1/10   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 0.45%//  DOWN 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:  0.89 DOWN  2   points in basis points yield from yesterday./

the Italian 10 yr bond yield is trading 44 points higher than Spain.

GERMAN 10 YR BOND YIELD: FALLS TO –.196% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.09% 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 1.2216  DOWN     .0002 or 2 basis points

USA/Japan: 109.60  UP .101 OR YEN DOWN 10  basis points/

Great Britain/USA 1.4180 UP .0026 POUND UP 26  BASIS POINTS)

Canadian dollar UP 23 basis points to 1.2047

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The USA/Yuan,  CNY: closed    ON SHORE  (DOWN).. 6.3811

THE USA/YUAN OFFSHORE:    (YUAN UP)..6.3775

TURKISH LIRA:  8.60  EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield  at +0.070%

Your closing 10 yr US bond yield UP 5 IN basis points from TUESDAY at 1.592 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.2774 UP 6 in basis points on the day

Your closing USA dollar index, 89,90  UP Y7  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 22.88 PTS OR 0.32% 

 

German Dax :  CLOSED UP 20.96 PTS OR 0.13% 

 

Paris CAC CLOSED UP 28.23  PTS OR 0.44% 

 

Spain IBEX CLOSED DOWN 20.30  PTS OR  0.22%

Italian MIB: CLOSED UP 31.29 PTS OR 0.12% 

 

WTI Oil price; 68.36 12:00  PM  EST

Brent Oil: 70.99 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    73.20  THE CROSS  LOWER BY 0.48 RUBLES/DOLLAR (RUBLE HIGHER BY 48 BASIS PTS)

TODAY THE GERMAN YIELD FALLS  TO –.197 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 : 68.68//

BRENT :  71.27

USA 10 YR BOND YIELD: … 1.592..DOWN 2 basis points…

USA 30 YR BOND YIELD: 2.2792 DOWN 1 basis points..

EURO/USA 1.2209 (DOWN 9   BASIS POINTS)

USA/JAPANESE YEN:109.56 UP .058 (YEN DOWN 6 BASIS POINTS/..

USA DOLLAR INDEX: 89.89 DOWN 6  cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.4168 UP 13  POINTS

the Turkish lira close: 8.59

the Russian rouble 73.15   UP 0.53 Roubles against the uSA dollar. (UP 53 BASIS POINTS)

Canadian dollar:  1.2036  UP 34 BASIS pts

German 10 yr bond yield at 5 pm: ,-0.197%

The Dow closed UP  25.07 POINTS OR 0.07%

NASDAQ closed UP 19.86 POINTS OR 0.14%


VOLATILITY INDEX:  17.39 CLOSED DOWN  0.51

LIBOR 3 MONTH DURATION: 0.128%//libor dropping like a stone

USA trading day in Graph Form

END

a)Market trading/THIS MORNING/USA

end

afternoon trading

 
 
ii) Market data

INFLATION WATCH

Fed’s Beige Book Freaks Out Over Unprecedented Nationwide Shortages Of Everything

 
WEDNESDAY, JUN 02, 2021 – 02:20 PM

With the economy overheating, it will hardly come as a surprise that the latest Fed Beige Book – which found that the economy expanded at what the Fed absurdly called a “moderate pace” from early April to late May, at least clarifying that this was a “somewhat faster” rate than the prior reporting period – one of the top concerns was soaring costs, but nothing spooked the various Fed districts quite as much as what appears to be a shortage of everything, with district after district complaining about broken supply chains, a lack of workers, and critical commodities that just can’t be procured, all resulting in sharply higher prices, slower delivery times and all around chaos.

Reading the report, we learn that several Districts cited “the positive effects on the economy of increased vaccination rates and relaxed social distancing measures, while they also noted the adverse impacts of supply chain disruptions. The effects of expanded vaccination rates were perhaps most notable in consumer spending in which increases in leisure travel and restaurant spending augmented ongoing strength in other spending categories.”

Commenting on the overall state of economic activity, the Fed found that:

  • Light vehicle sales remained solid but were often constrained by tight inventories.
  • Factory output increased further even as significant supply chain challenges continued to disrupt production.
  • Manufacturers reported that widespread shortages – there’s that word again – of materials and labor along with delivery delays made it difficult to get products to customers.
  • Similar challenges persisted in construction.
  • Homebuilders often noted that strong demand, buoyed by low mortgage interest rates, outpaced their capacity to build, leading some to limit sales. Nonresidential construction increased at a moderate pace, on balance, even as contacts in several Districts said that supply chain disruptions pushed costs higher and, in some cases, delayed projects.
  • Demand for professional and business services increased moderately, while demand for transportation services (including at ports) was exceptionally strong.
  • Lending volumes increased modestly, with gains in both household and business loans. Overall, expectations changed little, with contacts optimistic that economic growth will remain solid.

Employment and Wages

  • Staffing levels increased at a relatively steady pace, with two-thirds of Districts reporting modest employment growth over the
  • reporting period and the remainder indicating employment gains were moderate.
  • As the spread of COVID-19 continued to slow, employment growth was strongest in food services, hospitality, and retail.
  • Manufacturers also added workers in several Districts. It remained difficult for many firms to hire new workers, especially low-wage hourly workers, truck drivers, and skilled tradespeople.
  • The lack of job candidates prevented some firms from increasing output and, less commonly, led some businesses to reduce their hours of operation.
  • Overall, wage growth was moderate, and a growing number of firms offered signing bonuses and increased starting wages to attract and retain workers.
  • Contacts expected that labor demand will remain strong, but supply constrained, in the months ahead.

Prices

  • Not surprising, the Fed found that overall price pressures increased further since the last report, something the record surge in the latest CPI print confirmed.
  • Selling prices increased moderately, while input costs rose more briskly. Input costs have continued to increase across the board, with many contacts noting sharp increases in construction and manufacturing raw materials prices.
  • Increases were also noted in freight, packaging, and petrochemicals prices.
  • Contacts reported that continuing supply chain disruptions intensified cost pressures.
  • Strengthening demand, however, allowed some businesses, particularly manufacturers, builders, and transportation companies, to pass through much of the cost increases to their customers.
  • Looking forward, contacts anticipate facing cost increases and charging higher prices in coming months.

And some more detail at the regional Fed level:

Boston

  • Business activity in the First District expanded at a moderate pace. Restaurant sales were up sharply, and restaurant openings buoyed retail property leasing. Labor demand strengthened but hiring was held back by labor shortages. Recruiting efforts intensified, with varying degrees of wage increases. Prices held mostly steady despite growing cost pressures.

New York

  • The regional economy continued to grow at a strong pace, with growth broad-based across industries. Hiring picked up and wages continued to grow moderately, with availability of workers cited as a top concern. Consumer spending and tourism picked up noticeably. Input price pressures have intensified further, and more businesses are raising their selling prices.

Philadelphia

  • Business activity continued at a moderate pace of growth during the current Beige Book period – still below levels attained prior to the pandemic. Supply constraints continued to limit growth but may also be contributing to overstated perceptions of strong demand for labor and parts. Employment continued to grow modestly as did wage growth, while prices grew moderately.

Cleveland

  • The pace of business activity quickened, and contacts expect that demand will remain strong in the near term. However, supply chain bottlenecks constrained growth and caused materials costs to escalate. Price hikes became more widespread as firms attempted to keep up with rising costs. Hiring activity was reportedly modest because of a dearth of job applicants. A greater share of firms boosted wages, especially for hourly workers.

Richmond

  • The regional economy expanded moderately in recent weeks. Manufacturers and service providers reported increased activity but also faced higher labor and input costs as well as shortages of materials. Employment rose moderately but was constrained by challenges filling open positions. Prices rose briskly in recent weeks as some increased costs of business were passed along to customers.

Atlanta

  • Economic activity expanded at a moderate pace. Labor markets improved and wage pressures picked up for some positions. Some nonlabor costs remained elevated. Retail sales increased. Leisure, hospitality, and tourism activity strengthened. Residential real estate demand remained strong. Commercial real estate conditions were mixed. Manufacturing activity improved. Banking conditions were steady.

Chicago

  • Economic activity increased moderately. Employment, consumer spending, business spending, and manufacturing production all increased moderately, while construction and real estate was flat. Wages and prices rose moderately and financial conditions improved slightly. Prospects for agriculture income in 2021 improved.

St. Louis

  • Contacts reported that economic conditions have moderately improved since our previous report. Many contacts described a situation in which growth in demand for their products or services is outpacing their growth in capacity.

Minneapolis

  • The District economy saw robust demand, tempered by inventory shortages and rising prices. Job openings increased, but wage growth was not well aligned with firms ’ broader concerns over labor availability, and workforce contacts cited low wages as a barrier to job seekers taking available jobs. Manufacturing and construction activity continued to grow despite strong input cost pressures. Agricultural incomes grew sharply.

Kansas City

  • Economic activity rose moderately since the last survey. Consumer spending increased moderately, and sales were above pre-pandemic levels for the majority of retail, restaurant, and auto contacts. Most other sectors expanded as well, including commercial real estate, which increased for the first time since the pandemic started. However, about two-thirds of firms reported a negative impact from rising material prices and lack of availability.

Dallas

  • The District economy expanded at a solid rate, bolstered by continued strong growth in housing, manufacturing, and nonfinancial services. Drilling activity rose further. Price pressures intensified. Reports of labor shortages were more widespread across sectors and skill levels than the last report. Outlooks stayed positive.

San Francisco

  • Economic activity in the District expanded significantly, and labor market conditions continued to improve modestly. Wages and inflation picked up further. Retail sales increased, and activity in the services sector strengthened moderately. Conditions in the manufacturing and agriculture sectors continued to improve. Residential construction remained strong, while lending activity grew somewhat.
 

iii) Important USA Economic Stories

Half of LA County is ablaze caused by the homeless

(Joseph/EpochTimes)

City On Fire: Over Half Of LA County Blazes Caused by Homeless

 
TUESDAY, JUN 01, 2021 – 10:00 PM

Authored by Jamie Joseph via The Epoch Times,

Los Angeles is set ablaze up to 24 times a day. The cause? Thousands of homeless encampments…

This year, fires started in homeless encampments have accounted for 54 percent of the blazes battled by the Los Angeles Fire Department (LAFD), according to officials—a sharp uptick compared to 2020.

As the county grapples with more than 66,000 people living on its streets, critics are pointing to the growing number of fires caused by the homeless as another indication that officials are mishandling the crisis. And in parts of the city where the homeless are concentrated, residents and business owners say their concerns are not being heard.

LAFD Capt. Erik Scott told The Epoch Times that potential hazards in encampments come from warming and cooking fires, particularly on cold nights.

“One of our concerns is fires in tents where people experiencing homelessness are sleeping—where they could be injured or even die—and fires that start against a building and spread into the structure,” Scott said.

“Flames from those fires can spread into the brush in wildland areas, or to nearby buildings in urban areas or inside vacant buildings.”

He said potential fire hazards increase significantly on windy days, when the flames can spread rapidly.

“Using open flame to cook in any enclosed spaces, especially tight quarters like tents, can easily catch the tent or belongings inside on fire,” said Scott. In addition, toxic smoke gases can asphyxiate the tent’s occupants, knocking them out or killing them.

LAFD Fire Chief Ralph M. Terrazas recently walked through the Skid Row area in downtown L.A. with representatives from nearby business districts to discuss their concerns about encampments.

“The LAFD now has our Downtown-based Fast Response Vehicle on duty six days per week to service the Skid Row area,” Scott said.

He described the vehicle as a quad-cab pickup truck equipped with a 300-gallon fire-suppression tank that “can quickly extinguish fires while small.”

But not all fires caused by the homeless are small: In the wealthy enclave of Pacific Palisades, a homeless person was charged May 18 with committing arson attacks that ignited a 1,158-acre brush fire. The suspect allegedly ignited the blaze repeatedly, according to witnesses in an LAFD helicopter.

Burned items are found along the 91 Freeway near the area where a homeless man died after starting a fire, in Anaheim, Calif., on April 21, 2021. (John Fredricks/The Epoch Times)

The issue is citywide, Scott said. Multiple agencies and departments have separate roles regarding the homeless, based upon their agency’s jurisdiction. The LAFD is now working closely with both city and county partners to address the encampment fires.

After the Pacific Palisades suspect was arrested, L.A. Councilmember Mike Bonin responded on Twitter.

“Arson is a crime committed by a person, and not by their housing status,” Bonin wrote.

“Suggesting the suspect’s housing status is a contributing factor to the crime is irresponsible, and implies other people experiencing homelessness are inherently more dangerous or more likely to commit arson than housed people.”

A man on an electric scooter drives past the site of a building that was torched by homeless individuals, in Venice Beach, Calif., on Jan. 27, 2021. (John Fredricks/The Epoch Times)

Venice Beach

One L.A. neighborhood in particular experiences these fires too often: Venice Beach. The world-renowned tourist destination—with an estimated 30,000 visitors per day—is now crippled with crime, drugs, fires, and homeless tents piled on top of each other.

Many of the tents have propane tanks and camping stoves inside, used by the homeless for cooking or warmth. Needles, feces, and other discarded hazardous items are regularly found on the nearby sand.

The deterioration of the neighborhood has impacted local businesses. People from around the world are canceling their hotel reservations in the area, according to Venice Chamber of Commerce President George Francisco, who said he’s received firsthand accounts from local hotel owners.

“People see the news stories, and they just cancel,” Francisco told The Epoch Times.

“Or when you’re looking for hotel rooms and you see the coverage … how could any of these places stay in business?”

Francisco said city officials haven’t offered any solutions to protect businesses and residents. He used to stay in touch with Bonin, he said, but the councilman hasn’t responded to him in four years—despite multiple letters sent to officials sounding the alarm on the homelessness issue affecting businesses on the boardwalk.

“No one is trying to solve this problem [because it would] cripple the largest financial business in Venice, which is social services,” Francisco said, pointing to Bonin’s policies that address homelessness by creating more emergency shelters, which then contract nonprofits to operate them.

Bonin, who did not respond to The Epoch Times’ request for comment, championed the neighborhood’s first bridge housing facility. Residents have told The Epoch Times previously that the facility doesn’t work, and only serves to attract more transients and trash.

The Wild Wild West

Videos are shared daily on social media by a local neighborhood watchdog group that show the disorder on the Venice boardwalk. In early May, the group posted a video that showed an encampment erupting in flames. Another video, shared later in the month, shows two homeless people physically assaulting one another while a dog gets caught in the middle.

“Sadly, animal abuse and neglect are common in the boardwalk encampments,” according to the caption.

Another video, posted to Twitter on May 20, shows two individuals in a fistfight in front of the Venice Beach Bar. “Who needs MMA [mixed martial arts] when we have the Venice Boardwalk?” the posting states. The caption concludes by thanking Councilmember Bonin, whose district includes Venice.

Luis Perez, the bar’s general manager, told The Epoch Times the incident was what locals call “street justice.” The fight started because one of the men, who lives in a nearby encampment, was allegedly abusing his girlfriend, he said.

Perez said similar incidents take place weekly—and the bar is suffering because of them. They’re “definitely feeling a loss of business, because you know, tourists don’t want to be here,” he said. “If they do come here, they pass right through,” and go to Santa Monica or Marina Del Rey instead.

The regulars who hang around the area have started to call it “the Wild Wild West,” he said, where “there’s no control.”

An LAFD paramedic responds to an emergency on the Venice Boardwalk, in Venice Beach, Calif., on Jan. 27, 2021. (John Fredricks/The Epoch Times)

Perez said he has seen around 10 fires in encampments located on the boardwalk only two blocks from the bar.

“There was a woman—I haven’t seen her in a long time—she was definitely suffering from mental illness issues. I came into the bar one morning … and the fire trucks were out, and apparently she had said she was playing with something, and she hit a fire off,” he said.

He said the situation gets worse when the weather gets colder and people try to keep warm within the encampments.

“It’s very unsanitary, very violent,” he said.

“We try to tell our councilman … all of us, all the restaurant owners down here. There’s a group of us that are constantly sending videos and asking for help, and we have no police presence because the police department [has] been defunded.”

Before the pandemic, the boardwalk would see police presence every 10 to 15 minutes, Perez said. Now, a whole day will go by without seeing any officers patrolling the boardwalk.

“These are troubled times for us down here in the business district,” he said.

“It’s really sad, and we’re all struggling to try to keep up, keep people wanting to come back, and come in and feel safe.”

Perez said there had always been unhoused people in the area, ever since the bar opened in 2016. The difference between then and now, he said, is that he knew them all by name. They were transients who played music, created art on the boardwalk, and sold other goods. There were no tents allowed, per the city code.

But during the pandemic, Bonin declared the boardwalk a sanctuary zone—and Perez said he saw homeless people being bussed in from other cities.

“All the people who actually were here for years went away, because I haven’t seen anyone who used to be around here,” he said, adding that it wasn’t long before he didn’t recognize anyone.

“I do realize that as a situation we got to find a place to help these people out, but I personally just don’t believe that a beautiful state park in a business district is the right place to allow for that to be a sanctuary area,” he said.

A homeless man sleeps on a bench in the Venice neighborhood of Los Angeles on Jan. 27, 2021. (John Fredricks/The Epoch Times)

Putting Out Fires

The fires in Venice Beach have become such a threat that the LAFD has allocated one special fire vehicle to patrol the area four days a week.

The vehicle is a unique, fully equipped paramedic unit with a 150-gallon water tank, according to Scott. “Since it is a smaller size vehicle, that allows us to get around quicker than a traditional larger engine,” he said.

But for some residents, it’s too little, too late.

In April, a woman’s home burned down, and the fire killed her dog. The suspect, accused of throwing something onto the roof, was a homeless person living in one of the encampments.

On Ocean Front Walk, where visitors stroll the boardwalk, an empty space has been fenced off between two businesses. The lot was once the site of a commercial building—until January, when homeless encampments next to it caught fire. The building burnt to the ground in the early hours of the morning.

The destruction caused by homeless fires has resulted in millions of dollars in damages, according to the L.A. Times.

Francisco suggested small business owners on Venice Beach forced to put up with the problems caused by the homeless should be taken into consideration.

“You have basically 70 percent of all visitors coming to Venice, going to Ocean Front Walk and the boardwalk, which is predominantly populated by shops … but they are small, four to 12 person operations––and there is something that should be cherished about that,” Francisco said.

“There’s never been city abetted, you know, small business aid in this council district. There’s plenty of operations that are given money to, quote unquote, help solve the homeless problem. There seems to be no lack of effort for that.”

According to the Venice Chamber of Commerce, Venice is the second largest tourist attraction in Southern California, behind only Disneyland, with 62 percent of visitors having an average income over $50,000.

The businesses they visit, mainly T-Shirt and other pop-up shops, have been under “constant siege” due to COVID-19 restrictions and other financial challenges, Francisco said––and that was before the threat of homeless encampments and fires.

Teetering on the Brink

Klaus Moeller is a small business owner on the boardwalk. His Ben & Jerry’s Ice Cream shop opened in 2018, but he arrived in Venice 11 years earlier.

“Loved the grungy feel of Venice, and of course the 14 million or so tourists that came each year,” Moeller told The Epoch Times.

“It was such a fun place for us to spread happiness and love—plus employ 20 local kids—pretty much all of them minorities.”

But after struggling through the pandemic and its restrictions, his business is now on the brink of closing. Though his landlords have reduced the rent to help the shop survive, Moeller said it’s losing money every month.

The homeless encampments right outside the shop deterred customers even before the pandemic, he said. But when the stay-at-home orders began last year, Bonin allowed encampments to congregate on the boardwalk.

“In order to house maybe 200 people, of whom I think maybe 30 are actual Venice homeless, the #2 tourist attraction in SoCal has been ruined. How is that fair to local tax paying business operators and residents?” Moeller asked in an email.

“We have fires, shootings, stabbings and robberies. It is insanity. A hotel on the boardwalk has been turned into a homeless shelter. That means less tourists can stay here and support the shops and restaurants.”

Moeller said the area has been overrun by two competing gangs that are selling drugs to transients. According to news reports, gang activity in the area has been relatively common in recent years, and one woman was murdered last December in a gang-related shooting near Moeller’s business.

“The amount of crime is so out of hand that it is literally not possible for the police to deal with,” he said.

“Take care of the root of the problem, and stop inviting transients from all over the world to move here. Charity begins at home. Take care of the Venice residents.”

 

end

Commodity  markets//COMMODITY PRICES

JBS is making progress in their cyber attack.  

 

(zerohedge)

JBS Says “Significant Progress” After Ransomware Attack, Sets To Reopen Meat Plants Wednesday 

 
WEDNESDAY, JUN 02, 2021 – 08:33 AM

JBS SA, the world’s largest meat producer, released a statement in the overnight session stating “significant progress” has been made to resolve a ransomware attack that paralyzed its US operations and some plants in other countries. 

“Our systems are coming back online, and we are not sparing any resources to fight this threat,” JBS USA CEO Andre Nogueira said in a statement.

“Given the progress, our IT professionals and plant teams have made in the last 24 hours, the vast majority of our beef, pork, poultry and prepared foods plants will be operational Wednesday“, Nogueira said.  

The cyberattack forced the shutdown of all JBS’ US beef plants, which account for almost a quarter of American supplies. 

“On Sunday, 30 May, JBS USA determined that it was the target of an organized cybersecurity attack, affecting some of the servers supporting its North American and Australian IT systems”, JBS said at the time. 

JBS Facilities 

The shuttering raises concern about food security as hackers increasingly target critical commodity-linked companies. 

White House Deputy Press Secretary Karine Jean-Pierre said Tuesday that the hacking group behind the attack is “likely” based in Russia.” 

“The White House is engaging directly with the Russian government on this matter, and delivering the message that responsible states do not harbor ransomware criminals,” she said.

Three weeks ago, another ransomware attack brought down Colonial Pipeline Co., operator of fuel pipelines on the East Coast. It was targeted by a group called DarkSide.” 

While JBS soothes fears of potential meat shortages and soaring food prices – there has yet to be a statement released by the company indicating all systems are operational. 

 

end

Dr Daniel Lacalle analyzes Biden’s budget plan

(Daniel Lacalle)

 

Biden’s Budget Plan May Lead The US To Weaker Growth And Less Jobs

 
WEDNESDAY, JUN 02, 2021 – 03:23 PM

Authored by Daniel Lacalle,

The first thing any economist should do wen reading a budget proposal is to analyse the basic macro assumptions and the results presented by the administration. When both are poor, the budget should be criticised. This is the case of the Biden Budget Plan.

Same growth, a lot more debt and less employment.

According to the administration, the impact on growth of this budget will be negligible, as their own -and optimistic- estimates see no change in the slowdown of the U.S. economic growth trend.

The CBO (Congressional Budget Office, The Budget and Economic Outlook: 2021 to 2031) estimates a 1.7% average real growth in GDP between 2020 and 2030, the same average they forecast for the 2025-2030 period. This is lower than the potential real GDP growth of the U.S. economy but driven by much higher debt… with lower employment.

The CBO also expects an extremely poor job growth, with the unemployment rate at an average of 4.8% in the 2020 to 2030 period, a 4.1% for 2025-2030. This means not achieving the unemployment rate of 2019 even by 2030 after spending $6 trillion.

Even more concerning is the massive deterioration of the financial position of the United States.  The Committee For A Responsible Federal Budget (CFRB) warns that “Federal debt held by the public would rise from 100 percent of GDP at the end of FY 2020 and a record 110 percent of GDP in 2021 to 114 percent of GDP by 2024 and 117 percent of GDP by the end of 2031. In nominal dollars, debt would grow by $17.1 trillion through the end of FY 2031, from $22.0 trillion today to $39.1 trillion in FY 2031” (President Biden’s Full FY 2022 Budget).

This is a concern because history shows us that these estimates tend to err on the side of optimistic and that debt rises faster.

The $3.8 trillion of offsets in the budget are exceedingly optimistic. The Biden administration assumes that the tax hikes will have no impact whatsoever on investment and forecasts an overly optimistic revenue collection trend. For example, estimates of tax revenue assume a growth above GDP and without any single slump in the entire period, something that has not happened in decades. Even so, the administration estimates will only cover around three-quarters of the cost of new spending, as budget deficits would total $14.5 trillion over the next decade. Annual deficits will likely average $1.4 trillion (4.7 percent of GDP) every year for a decade. There is no single year in which outlays will be covered by revenues even in these bullish estimates of economic growth.

According to the CFRB “rather than putting the debt on a stable and then downward path relative to the economy, the President’s budget would blow past the prior record and increase debt levels to 117 percent of GDP by 2031”.

Spending increases to 24.5 percent of GDP over the coming decade, according to the CFRB. The Biden administration’s baseline projection is 22.7% of GDP, significantly above both the 50-year averages of 20.6 and 17.3 percent of GDP. The problem is that most of it goes to current spending without real economic return and increasing entitlement programs that will likely affect productivity, employment, and investment. Even in the Biden administration forecast, annual spending would be 4% of GDP higher than revenues… And those revenue estimates are excessively bullish.

So how does the Biden administration expect to pay for rising deficits and debt? Neo Keynesian economists say that deficits do not matter and that the Federal Reserve can monetize the excess of spending. This begs two questions: If deficits do not matter why raise taxes massively? and, why not cut taxes instead?

The most dangerous part of the budget is that all this spending delivers no real improvement over the average trend of growth and employment while ballooning the Mandatory Spending side of the budget, making it impossible for future administrations to balance the budget.

Mandatory outlays rise by $1.2 trillion between 2021 and 2030, which shows that no revenue measure now of in the future can eliminate the deficit or cut the debt. No realistic estimate of economic growth or improved tax revenue estimate can offset an increase of $14.5 trillion in debt in ten years. As mandatory spending increases, the likelihood of improving the fiscal challenges of the U.S. economy slide away. One small recession in the next ten years and the debt will rise even faster, way above 120% of GDP.

The CBO and Biden administration projections show tax revenues rising every year in every category, and we all know this is simply impossible looking at the history of the past five decades. Furthermore, even with the CBO or Biden administration estimates, there is one clear conclusion: The United States deficit problem is a spending problem. No realistic revenue measure will balance the budget.   

The question is, what inflation are they going to generate to dissolve this debt? This is the biggest risk of this budget. The Biden administration is clearly aiming at a massive increase in consumer prices to soften the debt blow in real terms, and this means lower real wage growth, weaker purchasing power of salaries and, more importantly, destruction of savings and the purchasing power of the U.S. dollar.

Many economists point to the European Union showing that many countries have levels of debt that are higher than 116% of GDP. True. They also show weaker growth, poorer employment rates and subdued productivity growth. There is also a lesson there. France, a country that has constantly raised taxes to allegedly finance a high government spending has not has a balanced budget since the late 70s and the economy has been in stagnation for decades. Unemployment, even in growth periods, is much higher than in the United States.

When you copy the European Union, you also should know you will get European Union-style lack of growth and job creation.

The Biden budget plan, in its own estimates, does not deliver higher growth or better employment levels. Reality will likely show that the results will be even poorer.

 
 

iv) Swamp commentaries/

 

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

US stocks soared on Tuesday’s open on conditioned buying for the expected start of the week and month rallies.  Bonds got slammed on economic data that shows the inflationary forces of labor and supply shortages are intensifying.  Oil soared as much as 3.8% because OPEC+ did not alter its production.

Oil jumps to two-year high as OPEC and allies reconfirm gradual production increase
The group opted to stick to the plan agreed upon in April, whereby 2.1 million barrels per day of supply would be brought back to the market between May to July.
https://www.cnbc.com/2021/06/01/oil-opec-meeting-in-focus-amid-concerns-over-iranian-oil-supply.html

May ISM Manufacturing 61.2 vs. 60.7 prior, 61 expected; prices paid 88, prior 89.6, 88.5 expected; new orders 67, prior 64.3, 66 expected; employment fell to 50.9 from 55.1, 54.6 expected; order backlogs: a record 70.6, 68.2 prior; customer inventories a record low 28 (28.4 prior); supplier deliveries 78.8, highest since 1974  https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/may/

Markit US Manufacturing PMI for May: 62.1, 61.5 prior and expected.

  • Supply chain disruption leads to soaring cost pressures
  • Backlogs of work rise at quickest pace on record

One of the fastest rises in input prices since data collection began in May 2007…
https://www.markiteconomics.com/Public/Home/PressRelease/fca84cfcbc154e05a2bd805b264290e5

ISM survey respondent: “Labor shortages impacting internal and supplier production. Logistics performance is terrible.”… “Business is good, but labor and raw materials are becoming very problematic, driving increases in costs… The continued global supply chain tightness and raw material shortages from the Gulf make it less likely that any business can recover this year. Demand is strong, but what good is that if you cannot get the materials needed to produce your finished goods?”…

ISM: “Inflows of new orders are surging at a rate unsurpassed in 14 years of survey history, buoyed by reviving domestic demand and record export sales as economies reopen from COVID-19 restrictions.”

Potential Pallet Shortage May Escalate Throughout 2021 – There is a current pallet shortage going on in the food logistics industry, and while the effects haven’t been felt yet – they will be soon.
https://www.foodlogistics.com/safety-security/risk-compliance/news/21452242/united-fresh-produce-association-potential-pallet-shortage-may-escalate-throughout-2021

Chinese Factories Delay New Orders as Costs Rise, Risking Global Supply Shortages – Higher raw-material prices and a lack of workers are forcing more manufacturers to slow production, stoking fears of inflation https://www.wsj.com/articles/chinese-factories-delay-new-orders-as-costs-rise-risking-global-supply-shortages-11622543400

Monthly Construction Spending, April 2021 [0.2% m/m, 0.5% expected, March to 1% from 0.2%]
https://www.census.gov/construction/c30/pdf/release.pdf?CID=CBSM+EI

Tesla Isn’t Immune from Rising Commodity Prices… Prices for Tesla cars are on the rise after a string of reductions in recent months… Prices are up because raw material prices are rising and because of “major supply chain price pressures industry-wide.”… https://t.co/xmIcdIutjb

Bank of England Expresses Unease About Jump in Housing Prices

  • First double-digit growth recorded since the middle of 2014
  • Nationwide says buyers are seeking more space after pandemic

https://www.bloomberg.com/news/articles/2021-06-01/boe-expresses-unease-about-jump-in-u-k-house-price-inflation

Positive aspects of previous session
ESMs surged during European trading on Tuesday
The Russell 2000 jumped 1.15% as the rotation into small caps continued

Negative aspects of previous session
Another pump & dump occurred
Bonds got slammed on inflation angst; Oil and gasoline soared

Ambiguous aspects of previous session
Why aren’t stocks more jiggy with the trillions of dollars being pledged for stuff?

First Hour/Last Hour Action [S&P 500 Index]: 1st Hour from NYSE open: Down; Last Hour: Down

Pivot Point for S&P 500 Index [above/below indicates daily trend to traders]: 4211.26
Previous session High/Low4234.12; 4197.59

Fauci Stokes Pandemic Fears Despite Plummeting Cases and Deaths https://t.co/Yb02icZbGg
Fauci continued to raise alarm about variants, which thus far have failed to derail the United States’ COVID-19 recovery. “As long as there is some degree of activity throughout the world, there’s always a danger of variants emerging and diminishing somewhat the effectiveness of our vaccines.”…

Number of COVID cases in Delhi crashes after mass distribution of ivermectin https://t.co/X12yW3RcmV

Biden’s China problem – president won’t dare confront Beijing over COVID origins. Here’s why
Nearly 70% of US voters believe it is likely that COVID-19 originated in a Chinese laboratory
    He needs President Xi Jinping to help him sell his extreme climate proposals to American voters… Biden will also need Beijing’s help in navigating the restart of the misguided Iran nuclear deal…
    Beijing may have compromising material on the Biden family The Chinese would have zero qualms about threatening to highlight the Biden family’s activities, and thus embarrass the president, in order to squash U.S.-led inquiries about the origin of COVID-19…
https://www.foxnews.com/opinion/biden-china-problem-covid-origins-confront-liz-peek

China reports human case of H10N3 bird flu, a possible first
https://apnews.com/article/china-bird-flu-flu-health-b5862e1d9892b25fdb470abf30432289

China reports first human case of H10N3 bird flu (H5N1 has a 60% death rate)
The disease does not infect humans easily, but when it does, it carries an impressive 60% mortality rate, according to the World Health Organization (WHO)…
https://www.investmentwatchblog.com/china-reports-first-human-case-of-h10n3-bird-flu-h5n1-has-a-60-death-rate/

CDC “Closely Tracking” Human Case of Bird Flu in China [Next US shutdown being planned?]
https://www.thegatewaypundit.com/2021/06/cdc-closely-tracking-human-case-bird-flu-china/

Chinese Government Pays $2 Billion to Vatican Annually, Says Whistleblower Guo Wengui
[for] their silence on the violation of fundamental rights in China…
https://www.ibtimes.sg/chinese-government-pays-2-billion-vatican-annually-says-whistleblower-guo-wengui-47648

Americans are done with the 5-days week in the office, and big center cities are feeling the “donut effect.” – Americans are congregating in the suburbs and, arguably, apartments in urban, more dense areas are being vacated at a faster pace.  We call it the “Donut Effect.” The places losing the most people are centers of big cities. Downtowns are doing very badly, they’ve lost roughly 15% of people and businesses, and the suburbs of the same large cities are doing really well…
    For people with children under the age of 12, you find almost 50% more women than men choose to work from home five days a week. Already, among graduates with young kids there’s a big gender divide among who would choose to work from home five days a week. You hear it for people with disabilities, people who live far away… https://t.co/049UvfZv4x

@ggreenwald: European leaders — including Germany’s Merkel and France’s Macron — are furious over new reports this week that the Obama/Biden Admin used Danish intelligence in 2014 to spy on their own EU allies, including Merkel herself. Demanding answers from Biden:

European leaders demand answers after fresh report about U.S. spying on allies
The Danish broadcaster DR reported Sunday that the Danish Defense Intelligence Service, known in Denmark by its acronym FE, in 2014 conducted an internal investigation which concluded that the U.S. had used cooperation with the Danes to spy against Denmark and neighboring countries
https://www.msn.com/en-us/news/world/european-leaders-demand-answers-after-fresh-report-about-us-spying-on-allies/ar-AAKBozy

Sweden Calls Allegations of U.S. Eavesdropping on Allies ‘Unacceptable,’ Demands Explanation
“If the news is correct (…) this is not acceptable between allies, very clearly,” said French President Emmanuel Macron, whose country was also allegedly targeted by U.S. intelligence…
https://www.newsweek.com/sweden-calls-allegations-us-eavesdropping-allies-unacceptable-demands-explanation-1596465

Obama’s massive and illegal spy operations were a major factor in the frenzy to remove Trump.  Why was Barry Sotero, AKA Barack Obama, so paranoid?  What did he fear that could be revealed about him?

Biden will halt oil and gas leases in Arctic refuge sold by Trump: report https://trib.al/9sChLm0

A darker sense of humour could be an early sign of dementia [Anyone come to mind?]
https://www.businessinsider.com/dark-sense-of-humour-may-be-an-early-sign-of-dementia-2015-11

All JBS Beef Plants in U.S. Shut After Cyberattack, Union Says [Will panic hoarding begin?  JBS is the world’s largest beef company.  It controls ~20% of the US beef market.]
https://www.bloomberg.com/news/articles/2021-06-01/all-jbs-

Biden, Jill headed to beach house midweek, marks 12th Delaware trip in 4 months https://trib.al/pZ94OQq

 

Apparently, the long Memorial Day Weekend was not enough rest and relaxation for the Big Guy.

@townhallcom: BIDEN: “…young black entrepreneurs are just as capable of succeeding given the chance as white entrepreneurs are, but they don’t have lawyers, they don’t have accountants…”
https://twitter.com/townhallcom/status/1399831108427059201

@RubinReport: According to Joe Biden black people don’t know how to get an ID, hire a lawyer or find an accountant…and if they don’t vote for him they ain’t black. But yea, Republicans are the real racists.

@Wizard_Predicts: BIDEN: “Terrorism from white supremacy is the most lethal threat to the homeland today—not ISIS, not Al-Qaeda, white supremacists.”  https://twitter.com/Wizard_Predicts/status/1399843108842622984

@JMichaelWaller: Back in 1984, journalists Robert Moss and Arnaud de Borchgrave, authors of “The Spike,” practically foresaw something like today’s events in their novel, “Monimbó.”…

Good Reads: Monimbó by Robert Moss, Arnaud de Borchgrave
Covertly supported by the Soviets, a Cuban conspiracy to incite racial unrest in the United States involves Robert Hockney in the violent Miami underworld of drug smugglers, right-wing fanatics, and informers and takes the country to the brink of disaster.

@CBSNews: President Biden announces Vice President Harris will lead the administration’s efforts to protect the right to vote… https://cbsn.ws/3vJxSEX

Vice President Harris’ team tries to distance her from fraught situation at the border
After the announcement, Harris’ aides appeared to “panic,” according to one of the officials, out of concern that her assignment was being mischaracterized and could be politically damaging if she were linked to the border, which at the time was facing a growing number of arrivals…
https://www.cnn.com/2021/06/01/politics/harris-immigration/index.html

America the Outlier: Voter Photo IDs Are the Rule in Europe and Elsewhere  https://t.co/NiDNuwk0Rk

As The Supreme Court Prepares for Major Rulings, Sen. Blumenthal Issues Warning to Conservative Justices of “Seismic” Changes if They Rule the Wrong Way – Jonathan Turley
    Blumenthal is taking up the cudgel of court packing with not so subtle threats to conservative justices that, if they do not vote with their liberal colleagues, the Court may be fundamentally altered.  He is not alone in such reckless and coercive rhetoric…The statement is reminiscent of Senate Majority Leader Chuck Schumer declaring in front of the Supreme Court “I want to tell you, Gorsuch, I want to tell you, Kavanaugh, you have released the whirlwind, and you will pay the price.”  Democratic leaders not only have embraced court packing but now openly threaten the Court to vote with the liberal justices or face dire consequences for the Court…  https://jonathanturley.org/2021/05/31/supreme-court-prepares-for-major-rulings-as-blumenthal-issues-warning-to-conservative-supreme-court-justices-of-seismic-changes-if-they-rule-the-wrong-way/

You can image the MSM outrage if GOP Senators threatened the SCOTUS.  Why aren’t GOP leaders slamming Blumenthal, Schumer et al for their overt SCOTUS threats?  Yep, we all know why.

Homeless NYC man with 40 prior arrests – including eight in the past year – is charged with sucker-punching Asian woman in Manhattan as Bill de Blasio’s bail reforms are blamed for crime spiral
https://www.dailymail.co.uk/news/article-9640255/Race-hate-attacker-48-arrested-sucker-punching-Asian-woman-NYC.html

Putin to press Biden on human rights of Capitol rioters, Russia says https://trib.al/pg8SvOp

Let us conclude Wednesday with this terrific interview of Alasdair Macleod/and Greg Hunter

A must view…

(courtesy Greg Hunter/Alasdair Macleod)

We Are at the Top of the Bubble – Alasdair Macleod

By Greg Hunter’s USAWatchdog.com

Finance and economic expert Alasdair Macleod says a new rule change at the Bank of International Settlements (BIS), aka the central bank of central bankers, is going to help drive the price of gold and many other commodities higher.  The new rule is called “Net Stable Funding Requirement” (NSFR).  It goes into effect by the end of June in Europe and by the end of the year in the UK where the London Bullion Market Association (LBMA) operates the biggest gold trading platform in the world.  The short story is this new BIS rule is going to stop paper contracts from conjuring supply of gold, silver and many other commodities out of thin air.   Macleod says, “That’s what they do, and that is what is going to be stopped.  For a long time . . . I think the American government has encouraged the growth of paper alternatives to gold in order to take demand away from the real stuff. . . .They said to the Bank of International Settlements that we can’t have another Lehman Brothers.  So, what’s happened?  They have come up with regulations to help insure we won’t have another Lehman. . . . I think the real big, big change is going to be in the second half of this year.”

Macleod says couple this BIS rule change along with the out-of-control global spending and coming inflation and you have the perfect predictable storm.  Macleod says, “With these two things coming together, only one thing can happen.  The dollar goes down and down and down.  Also, people are going to be frightened and think we have no gold . . . they are going to go out and try to buy gold.  It’s going to be like squeezing a bar of soap in the bath, it will just shoot up.  I can’t see any other outcome than that. . . . Look at what is happening with the BIS and the new regulations that they are bringing in.  From the gold point of view, you’ve got a falling dollar and you have sudden demand for gold being unleashed that was previously happy to sit in a bank on an unallocated basis.”

Macleod also says, “This has gotten to a point where we can’t go any further.  We are at the top of the bubble.  What happens when this market tops out?  The dollar goes with it.”

Macleod predicts big corrections in bonds and stocks along with the dollar because despite what you are hearing, Macleod says, “Look at the fundamentals in the economy.  They are talking about economic recovery, but . . . look at all the shops that are closed and never to be reopened.  This is not a healthy economy.  This is a very bad economy.  The reason why prices are rising is you’ve got all this money being put into the consumers’ hands.  This is the middle class here, and they are spending this money, and where is the production to satisfy the spending?  It’s not there, it’s closed down. . . . There is no solution.  We are getting to the point that there is actually no exit from this mess.”

In closing, a warning about revolutions.  Macleod says, “This is part of the myth of a revolution.  When you look at a revolution, it’s actually because the currency collapses because the economy collapses.  It’s not because there is no bread.  Why is there no bread?  Because there is no bloody money.”

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Alasdair Macleod, Head of Research for GoldMoney.com.

We Are at the Top of the Bubble – Alasdair Macleod | Greg Hunter’s USAWatchdog

END

I WILL SEE  YOU THURSDAY NIGHT

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