JUNE 7/GOLD CLOSES UP $7.45 TO $1849.20//SILVER IS UP 6 CENTS TO $22.15//PLATINUM CLOSES DOWN $17.60 TO $1012.20//PALLADIUM CLOSES DOWN $21.80 TO $1983.40//COVID UPDATES//VACCINE IMPACT//ELEVATED RISK FOR MONKEYPOX//UKRAINE VS RUSSIAN: RUSSIA COMPLETES LAND BRIDGE CONNECTING RUSSIA TO THE DONBAS AND CRIMEA//UK WARNS THAT 500,000 BUSINESS CAN GO UNDER DUE TO HUGE INCREASES IN ENERGY COSTS//SWAMP STORIES FOR YOU TONIGHT//

JUNE 7 2022 · by harveyorgan · in Uncategorized · Leave a comment·Edit

harveyorgan · in Uncategorized · Leave a comment·Edit

GOLD;  $1849.20 UP $7.45 

SILVER: $22.15 UP  $.06

ACCESS MARKET: GOLD $1852.00

SILVER: $22.26

Bitcoin morning price:  $29464 DOWN 1853

Bitcoin: afternoon price: $30,193  DOWN 1124  

GOLD;  $1847.60 

Platinum price: closing DOWN $17.60 to $1012.20

Palladium price; closing DOWN $21.80  at $1983.40

END

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 EXCHANGE: COMEX EXCHANGE: 

no. of contracts issued by JPMorgan:  2196/3680

EXCHANGE: COMEX
CONTRACT: JUNE 2022 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,839.200000000 USD
INTENT DATE: 06/06/2022 DELIVERY DATE: 06/08/2022
FIRM ORG FIRM NAME ISSUED STOPPED


118 C MACQUARIE FUT 71
118 H MACQUARIE FUT 105
323 C HSBC 147
323 H HSBC 499
332 H STANDARD CHARTE 66
363 H WELLS FARGO SEC 102
435 H SCOTIA CAPITAL 59
624 H BOFA SECURITIES 183
657 C MORGAN STANLEY 1
661 C JP MORGAN 3671 2196
686 C STONEX FINANCIA 23
690 C ABN AMRO 23
700 C UBS 92
709 H BARCLAYS 60
732 C RBC CAP MARKETS 11
800 C MAREX SPEC 3 14
905 C ADM 5 29


TOTAL: 3,680 3,680
MONTH TO DATE: 19,000

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT 3680  NOTICE(S) FOR 368,000 Oz//11.4463  TONNES)

total notices so far: 19,000 contracts for 1,900,000 oz (59.097 tonnes)

SILVER NOTICES: 

0 NOTICE(S) FILED 10   OZ/

total number of notices filed so far this month  1502  :  for 7,510,000  oz



END

Russia is a major supplier of silver to London while Mexico supplies the COMEX

With the sanctions, London has no way to obtain silver other than compete with NY.

GLD

WITH GOLD UP $7.45

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

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

ALSO INVESTORS SWITCHING TO SPROTT PHYSICAL  (phys) INSTEAD OF THE FRAUDULENT GLD//

A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.97 TONNES FROM THE GLD

INVENTORY RESTS AT 1063.07 TONNES

Silver//SLV

WITH NO SILVER AROUND AND SILVER UP  6 CENTS

AT THE SLV// A BIG CHANGE IN SILVER INVENTORY AT THE SLV://NO CHANGES IN SILVER IVWENTORY AT THE SLV.: A HUGE WITHDRAWAL OF 2.861 MILLION OZ FROMTHE SLV/

INVESTORS ARE SWITCHING SLV TO SPROTT’S PSLV

CLOSING INVENTORY: 544.306 MILLION OZ

Let us have a look at the data for today

SILVER//OUTLINE


SILVER COMEX OI ROSE BY A STRONG SIZED  1305 CONTRACTS TO 147,401   AND CLOSER TO  THE NEW RECORD OF 244,710, SET FEB 25/2020 AND  THE GAIN IN OI WAS ACCOMPLISHED WITH OUR  STRONG   $0.20 GAIN  IN SILVER PRICING AT THE COMEX ON MONDAY.  OUR BANKERS WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE BY $0.20) AND  ALSO UNSUCCESSFUL IN KNOCKING OFF ANY SILVER LONGS AS THEY REMAIN FIRM IN THEIR BELIEF OF A SILVER FAILURE AS WE HAD A TINY NET LOSS OF194 CONTRACTS ON OUR TWO EXCHANGES

WE  MUST HAVE HAD: 
I) HUGE BANKER SHORT COVERING AS THEY ARE VERY ANXIOUS TO GET OUT OF DODGE!!/. II)WE ALSO HAD  SOME  REDDIT RAPTOR BUYING//.   iii)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS iiii) A STRONG INITIAL SILVER STANDING FOR COMEX SILVER MEASURING AT 7.635 MILLION OZ FOLLOWED BY TODAY’S E.F.P. JUMP TO LONDON OF 2 CONTRACTS OR 10,000 OZ//NEW STANDING:  8,095,000 / //  V)    STRONG SIZED COMEX OI LOSS/

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


THE DIFFERENTIAL FROM PRELIMINARY OI TO FINAL OI SILVER TODAY: CONTRACTS  : +3

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS  JUNE. ACCUMULATION FOR EFP’S SILVER/JPMORGAN’S HOUSE OF BRIBES/STARTING FROM FIRST DAY/MONTH OF JUNE: 

TOTAL CONTACTS for 5 days, total 5,121,  contracts:  25.605 million oz  OR 5.121 MILLION OZ PER DAY. (1024CONTRACTS PER DAY)

TOTAL EFP’S FOR THE MONTH SO FAR: 5.121 MILLION OZ

.

LAST 11 MONTHS TOTAL EFP CONTRACTS ISSUED  IN MILLIONS OF OZ:

MAY 137.83 MILLION

JUNE 149.91 MILLION OZ

JULY 129.445 MILLION OZ

AUGUST: MILLION OZ 140.120 

SEPT. 28.230 MILLION OZ//

OCT:  94.595 MILLION OZ

NOV: 131.925 MILLION OZ

DEC: 100.615 MILLION OZ 

JAN 2022//  90.460 MILLION OZ

FEB 2022:  72.39 MILLION OZ//

MARCH: 207.430  MILLION OZ//A NEW RECORD FOR EFP ISSUANCE AND WE ARE STILL GOING STRONG THIS MONTH.

APRIL: 114.52 MILLION OZ FINAL//LOW ISSUANCE

MAY: 105.635 MILLION OZ//

JUNE: 5.121 MILLION OZ

RESULT: WE HAD A STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF  1305 WITH OUR STRONG  $0.20 GAIN IN SILVER PRICING AT THE COMEX// MONDAY.,.  THE CME NOTIFIED US THAT WE HAD A FAIR  SIZED EFP ISSUANCE  CONTRACTS: 560 CONTRACTS ISSUED FOR JULY AND 0 CONTRACTS ISSUED FOR ALL OTHER MONTHS) WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS    THE DOMINANT FEATURE TODAY: /HUGE BANKER SHORT COVERING AS THEY GET OUT OF DODGE//// WE HAVE A HUGE INITIAL SILVER OZ STANDING FOR JUNE. OF 7.635 MILLION  OZ FOLLOWED BY TODAY’S 10,000 E.F.P JUMP TO LONDON//NEW STANDING:8.095 //  .. WE HAD A VERY STRONG SIZED GAIN OF 1865 OI CONTRACTS ON THE TWO EXCHANGES FOR 9.325 MILLION  OZ WITH THE LOSS IN PRICE. 

 WE HAD 0  NOTICES FILED TODAY FOR  nil OZ

THE SILVER COMEX IS NOW BEING ATTACKED FOR METAL BY LONDONERS ET AL.

GOLD//OUTLINE

IN GOLD, THE COMEX OPEN INTEREST FELL  BY A FAIR SIZED 2626 CONTRACTS  TO 495,816 AND FURTHER FROM 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: -698 CONTRACTS.

THE BIS HAS ABANDONED THE GOLD COMEX TRADING!!!

.

THE  LOSS IN COMEX OI CAME WITH OUR  LOSS IN PRICE OF $5.85//COMEX GOLD TRADING/MONDAY / WE MUST HAVE  HAD  SOME SPECULATOR SHORT COVERING ACCOMPANYING OUR FAIR SIZED EXCHANGE FOR PHYSICAL ISSUANCE. WE HAD ZERO LONG LIQUIDATION   //JUST SPECULATOR SHORT COVERING FROM OUR STUPID SPECULATORS.

WE ALSO HAD A HUGE INITIAL STANDING IN GOLD TONNAGE FOR JUNE AT 69.26 TONNES ON FIRST DAY NOTICE /FOLLOWED BY TODAY’S 4100 OZ QUEUE JUMP//NEW STANDING:  69.191 TONNES

YET ALL OF..THIS HAPPENED WITH OUR LOSS IN PRICE OF   $5.85 WITH RESPECT TO MONDAY’S TRADING

WE HAD A GOOD SIZED GAIN OF 5129  OI CONTRACTS 15.95 PAPER TONNES) ON OUR TWO EXCHANGES..

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A STRONG SIZED  7755 CONTRACTS:

The NEW COMEX OI FOR THE GOLD COMPLEX RESTS AT 495,816

IN ESSENCE WE HAVE A GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 5129, WITH 2626 CONTRACTS DECREASED AT THE COMEX AND 7755 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN ON THE TWO EXCHANGES OF 5827 CONTRACTS OR 18.124 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES

WE HAD A STRONG SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (7755) ACCOMPANYING THE FAIR SIZED LOSS IN COMEX OI (2626,): TOTAL GAIN IN THE TWO EXCHANGES 5129 CONTRACTS. WE NO DOUBT HAD 1) SOME SPECULATOR SHORT COVERING ,2.) STRONG INITIAL STANDING AT THE GOLD COMEX FOR JUNE. AT 69.26 TONNES FOLLOWED BY TODAY’S QUEUE  JUMP OF 4100 OZ//NEW STANDING:69.191 TONNES /  3) ZERO LONG LIQUIDATION//CONSIDERABLE SPECULATOR SHORT COVERING //.,4) FAIR SIZED COMEX  OI. LOSS 5) STRONG ISSUANCE OF EXCHANGE FOR PHYSICAL/

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2022 INCLUDING TODAY

JUNE

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JUNE :

22,053 CONTRACTS OR 2,205,300 OZ OR 68.59  TONNES 5 TRADING DAY(S) AND THUS AVERAGING: 4410 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 5 TRADING DAY(S) IN  TONNES: 68.59 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2021, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES

THUS EFP TRANSFERS REPRESENTS  68.59/3550 x 100% TONNES  1.94% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2021 TO 2022 

JANUARY/2021: 265.26 TONNES (RAPIDLY INCREASING AGAIN)

 FEB  :  171.24 TONNES  ( DEFINITELY SLOWING DOWN AGAIN).. 

MARCH:.   276.50 TONNES (STRONG AGAIN/

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

MAY:        250.15 TONNES  (NOW DRAMATICALLY INCREASING AGAIN)

JUNE:      247.54 TONNES (FINAL)

JULY:        188.73 TONNES FINAL

AUGUST:   217.89 TONNES FINAL ISSUANCE.

SEPT          142.12 TONNES FINAL ISSUANCE ( LOW ISSUANCE)_

OCT:           141.13 TONNES FINAL ISSUANCE (LOW ISSUANCE)

NOV:           312.46 TONNES FINAL ISSUANCE//NEW RECORD!! (INCREASING DRAMATICALLY)//SIGN OF REAL STRESS//SURPASSING THE MARCH 2021 RECORD OF 276.50 TONNES OF EFP

DEC.           175.62 TONNES//FINAL ISSUANCE// 

JAN:2022   247.25 TONNES //FINAL

FEB:           196.04 TONNES//FINAL

MARCH:  409.30 TONNES INITIAL( THIS IS NOW A RECORD EFP ISSUANCE FOR MARCH AND FOR ANY MONTH.

APRIL:  169.55 TONNES (FINAL VERY  LOW ISSUANCE MONTH)

MAY:  247,44 TONNES FINAL// 

JUNE: 68.59 TONNES

SPREADING OPERATIONS

(/NOW SWITCHING TO GOLD) FOR NEWCOMERS, HERE ARE THE DETAILS

SPREADING LIQUIDATION HAS NOW COMMENCED   AS WE HEAD TOWARDS THE  NEW ACTIVE FRONT MONTH OF JUNE. WE ARE NOW INTO THE SPREADING OPERATION OF SILVER

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: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 BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (JULY), 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.”

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 1305 CONTRACT OI TO 147,401 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  5 YEARS AGO.  

EFP ISSUANCE 560 CONTRACTS

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

JULY 560  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 0 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 1305 CONTRACTS AND ADD TO THE 560 OI TRANSFERRED TO LONDON THROUGH EFP’S,

WE OBTAIN A STRONG SIZED GAIN OF 1865   OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. 

THUS IN OUNCES, THE  GAIN  ON THE TWO EXCHANGES 9.325 MILLION OZ

OCCURRED WITH OUR GAIN IN PRICE OF  $0.20 .

OUTLINE FOR TODAY’S COMMENTARY

1/COMEX GOLD AND SILVER REPORT

(report Harvey)

2 ) Gold/silver trading overnight Europe,

(Peter Schiff,

3. Egon von Greyerz///Matthew Piepenburg via GoldSwitzerland.com,

4. Chris Powell of GATA provides to us very important physical commentaries

end

5. Other gold commentaries

end

6. Commodity commentaries

3. ASIAN AFFAIRS

i)TUESDAY MORNING// MONDAY  NIGHT

SHANGHAI CLOSED UP 5.39 PTS OR 0.17%   //Hang Sang CLOSED DOWN 122.23 PTS OR 0.54%    /The Nikkei closed UP 28.06 OR 0.10%          //Australia’s all ordinaires CLOSED DOWN 1.54%%   /Chinese yuan (ONSHORE) closed DOWN 6.6708    /Oil UP TO  118.03dollars per barrel for WTI and UP TO 119.19 for Brent. Stocks in Europe OPENED  ALL RED       //  ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6708 OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.6752: /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN  TRADING WEAKER AGAINST US DOLLAR/OFFSHORE WEAKER

a)NORTH KOREA

outline

b) REPORT ON JAPAN/

OUTLINE

3 C CHINA

OUTLINE

4/EUROPEAN AFFAIRS

OUTLINE

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

OUTLINE

6.Global Issues

OUTLINE

7. OIL ISSUES

OUTLINE

8 EMERGING MARKET ISSUES

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A FAIR SIZED 12626 CONTRACTS TO 495,816 AND 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 WITH OUR LOSS OF $5.85 IN GOLD PRICING MONDAY’S COMEX TRADING. WE NOW DOUBT HAD OUR SPREADER //TAS OPERATION IN FULL SWING ON FRIDAY. WE ALSO HAD A FAIR SIZED EFP (1991 CONTRACTS). . THEY WERE PAID HANDSOMELY  NOT TO TAKE DELIVERY AT THE COMEX AND SETTLE FOR CASH. IT NOW SEEMS THAT THE COMMERCIALS HAVE GOADED THE SPECS TO GO SHORT BIG TIME AND THEY ARE CAUGHT. THE COMMERCIALS WILL SLAUGHTER THESE GUYS WHEN THEY THINK THE TIME IS RIGHT

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.

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW MOVING TO THE  ACTIVE DELIVERY MONTH OF JUNE..  THE CME REPORTS THAT THE BANKERS ISSUED A STRONG SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS.,

THAT IS 7755 EFP CONTRACTS WERE ISSUED:  ;: ,  . 0 AUG :7755 & ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  7755 CONTRACTS 

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

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A GOOD SIZED  TOTAL OF 5,129CONTRACTS IN THAT 7755 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE HAD A FAIR SIZED  COMEX OI LOSS OF 12626  CONTRACTS..AND  THIS GOOD GAIN ON OUR TWO EXCHANGES HAPPENED DESPITE  OUR FALL IN PRICE OF GOLD $5.85.   

// WE HAVE A STRONG AMOUNT OF GOLD TONNAGE STANDING FOR MAY   (69.191),

 HERE ARE THE AMOUNTS THAT STOOD FOR DELIVERY IN THE PRECEDING 12 MONTHS OF 2021:

DEC 2021: 112.217 TONNES

NOV.  8.074 TONNES

OCT.    57.707 TONNES

SEPT: 11.9160 TONNES

AUGUST: 80.489 TONNES

JULY: 7.2814 TONNES

JUNE:  72.289 TONNES

MAY 5.77 TONNES

APRIL  95.331 TONNES

MARCH 30.205 TONNES

FEB ’21. 113.424 TONNES

JAN ’21: 6.500 TONNES.

TOTAL SO FAR THIS YEAR (JAN- DEC): 601.213 TONNES

YEAR 2022:

JANUARY 2022  17.79 TONNES

FEB 2022: 59.023 TONNES

MARCH: 36.678 TONNES

APRIL: 85.340 TONNES FINAL.

MAY: 20.11 TONNES FINAL

JUNE: 69.191 TONNES

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $5.85) BUT WERE UNSUCCESSFUL IN KNOCKING OFF ANY SPECULATOR LONGS/COMMERCIAL LONGS AS WELL AS SPECULATOR SHORTS////  WE HAVE  REGISTERED A GOOD SIZED GAIN  OF 15.95 TONNES ON TOTAL OI FROM OUR TWO EXCHANGES, ACCOMPANYING OUR HUGE GOLD TONNAGE STANDING FOR JUNE (69.191 TONNES)

WE HAD 698 CONTRACTS REMOVED FROM COMEX TRADES. THESE WERE REMOVED AFTER TRADING ENDED LAST NIGHT

NET GAIN ON THE TWO EXCHANGES 5,129 CONTRACTS OR 512900  OZ OR 15.95 TONNES

Estimated gold volume 113,715/// poor

final gold volumes/yesterday  112,039   poor

INITIAL STANDINGS FOR JUNE ’22 COMEX GOLD //JUNE 7

GoldOunces
Withdrawals from Dealers Inventory in oznil oz
Withdrawals from Customer Inventory in oz142,615.830 oz
Brinks
Loomis
2436 kilobars and 2000 kilobars
Deposit to the Dealer Inventory in oznil OZ 
Deposits to the Customer Inventory, in oznil
No of oz served (contracts) today3680  notice(s)
368,000 OZ
11.4463 TONNES
No of oz to be served (notices)3245 contracts 324,500 oz
10.09 TONNES
Total monthly oz gold served (contracts) so far this month19,000 notices
1,900,000 OZ
59.097 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this monthNIL oz
Total accumulative withdrawal of gold from the Customer inventory this monthxxx oz

dealer deposits  0

total dealer deposit  0   oz//

No dealer withdrawals

0 customer deposits

total deposits: nil oz

12 customer withdrawals:

i) Out of Brinks: 78,319.830 (2436 kilobars)

ii) Out of Loomis:  64,296.000 oz (2,000 kilobars)

total withdrawal: 142,615.830  oz

ADJUSTMENTS:  2 dealer to customer//manfra/

23.438.079 oz//Manfra

5894.389 oz JPMorgan

CALCULATIONS FOR THE AMOUNT OF GOLD STANDING FOR JUNE.

For the front month of JUNE we have an  oi of 6925 contracts having LOST 574 contracts

We had 615 notices filed on MONDAY so we GAINED 41  contracts

July has a GAIN OF 21 OI to stand at 2093

August has a LOSS of 2093 contracts DOWN to 421,708 contracts

We had 3680 notice(s) filed today for  368,000 oz FOR THE JUNE 2022 CONTRACT MONTH. 


Today, 0 notice(s) were issued from J.P.Morgan dealer account and  3671 notices were issued from their client or customer account. The total of all issuance by all participants equate to 3680 contract(s) of which 0  notices were stopped (received) by j.P. Morgan dealer and  2196 notice(s) was (were) stopped/ Received) by J.P.Morgan//customer account and 0 notice(s) 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 (19,000) x 100 oz , to which we add the difference between the open interest for the front month of  (JUNE 6925  CONTRACTS ) minus the number of notices served upon today  3680 x 100 oz per contract equals 2,2245,000 OZ  OR 69.191 TONNES the number of TONNES standing in this  active month of JUNE. 

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

No of notices filed so far (19,000) x 100 oz+   (6925)  OI for the front month minus the number of notices served upon today (3680} x 100 oz} which equals 2,224,500 oz standing OR 69.191 TONNES in this   active delivery month of JUNE.

TOTAL COMEX GOLD STANDING:  69.191 TONNES  (A STRONG STANDING FOR A JUNE (  ACTIVE) DELIVERY MONTH)

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

COMEX GOLD INVENTORIES/CLASSIFICATION

NEW PLEDGED GOLD:

241,794.285 oz NOW PLEDGED /HSBC  5.94 TONNES

204,937.290 PLEDGED  MANFRA 3.08 TONNES

83,657.582 PLEDGED JPMorgan no 1  1.690 tonnes

265,999.054, oz  JPM No 2 

1,152,376.639 oz pledged  Brinks/

Manfra:  33,758.550 oz

Delaware: 193.721 oz

International Delaware::  11,188.542 o

total pledged gold:  2,210,073.763 oz                             

TOTAL OF ALL GOLD ELIGIBLE AND REGISTERED:  34,894.885.508 OZ 

TOTAL ELIGIBLE GOLD: 16,930,500.475  OZ

TOTAL OF ALL REGISTERED GOLD: 17,954,383.033 OZ  

REGISTERED GOLD THAT CAN BE SERVED UPON: 15,744,310.0 OZ (REG GOLD- PLEDGED GOLD)  

END

JUNE 2022 CONTRACT MONTH//SILVER//JUNE 7

SilverOunces
Withdrawals from Dealers InventoryNIL oz
Withdrawals from Customer Inventory1,292,439.047  oz
JPM
CNT
Deposits to the Dealer InventorynilOZ
Deposits to the Customer Inventory436,865.146 oz
Delaware
No of oz served today (contracts)0CONTRACT(S)
nil  OZ)
No of oz to be served (notices)117 contracts
 (585,000 oz)
Total monthly oz silver served (contracts)1502 contracts
 7,510,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this monthNIL oz
Total accumulative withdrawal of silver from the Customer inventory this month


i) zero dealer deposits  
And now for the wild silver comex results

total dealer deposits:  0     oz

i) We had 0 dealer withdrawal

total dealer withdrawals: nil oz

We have 1 deposits into the customer account

i) Into Delaware:  436,865.146 oz

total deposit:  436,865.146    oz

JPMorgan has a total silver weight: 171.057 million oz/336.038 million =50.92% of comex 

 Comex withdrawals: 2

i) Out of CNT 712,583,447 oz

ii) Out of JPMorgan:  579,855.600 oz

total withdrawal  1,292,439.047       oz

0 adjustments: 

the silver comex is in stress!

TOTAL REGISTERED SILVER: 72,453 MILLION OZ

TOTAL REG + ELIG. 336.038 MILLION OZ

CALCULATION OF SILVER OZ STANDING FOR JUNE

silver open interest data:

FRONT MONTH OF JUNE OI: 117 HAVING LOST 29 CONTRACTS. 

WE HAD 27 NOTICES FILED ON MONDAY SO WE LOST 2 CONTRACTS OR AN ADDITIONAL 10,000 OZ WILL NOT STAND IN THIS NON ACTIVE

DELIVERY MONTH OF JUNE

JULY HAD A LOSS OF 1901 CONTRACTS DOWN TO 101,310 CONTRACTS.

AUGUST GAINED 142 CONTRACTS TO STAND AT 752

SEPTEMBER HAD A GAIN OF 3220 CONTRACTS UP TO 31,140 CONTRACTS.

 .

TOTAL NUMBER OF NOTICES FILED FOR TODAY: 0 for NIL oz

Comex volumes:68,679// est. volume today//   poor

Comex volume: confirmed yesterday: 57,071 contracts ( poor )

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 1510 x 5,000 oz = 7,510,000 oz 

to which we add the difference between the open interest for the front month of JUNE(117) and the number of notices served upon today 0  x (5000 oz) equals the number of ounces standing.

Thus the  standings for silver for the JUNE./2022 contract month: 1510 (notices served so far) x 5000 oz + OI for front month of JUNE (17)  – number of notices served upon today (0) x 5000 oz of silver standing for the JUNE contract month equates 8,095,000 oz. .

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

END

GLD AND SLV INVENTORY LEVELS:

JUNE 7/WITH GOLD UP $7.45: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1066.04 TONNES

JUNE 6/WITH GOLD DOWN $5.85: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1066.04 TONNES

JUNE 3/WITH GOLD DOWN $19.75//A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.16 TONNES FROM THE GLD//INVENTORY RESTS AT 1066.04 TONNES

JUNE 2/WITH GOLD UP $22.50: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.64 TONNES FROM THE GLD//INVENTORY RESTS AT 1067.20 TONNES

JUNE 1/WITH GOLD UP $1$ HUGE CHANGES IN GOLD INVENTORY AT THE GLD: AWITHDRAWAL OF 1.45 TONNES FROM THE GLD///INVENTORY RESTS AT 1068.36 TONNES

MAY 31/WITH GOLD DOWN $15.10: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1069.81 TONNES

MAY 27/WITH GOLD UP $4.95//NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1069.81 TONNES

May 26/WITH GOLD UP $2.10/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.74 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1069.81 TONNES

MAY 25/WITH GOLD UP @$2.70: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 11.89./INVENTORY RESTS AT 1068.07 TONNES

MAY 20/WITH GOLD UP $7.75: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 6.97 TONNES INTO THE GLD/INVENTORY RESTS  AT 1056.18 TONNES

MAY 19/WITH GOLD UP $24.20; NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1049.21 TONNES//

MAY 18/WITH GOLD DOWN $2.55//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 4.07 TONNES FROM THE GLD///INVENTORY RESTS AT 1049.21 TONNES

MAY 17/WITH GOLD UP $5.40:HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.61 TONNES FROM THE GLD////INVENTORY RESTS AT 1053.28 TONNES

MAY 16/WITH GOLD UP $5.40: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 4.93 TONNES FROM THE GLD///INVENTORY RESTS AT 1055.89 TONNES

MAY 13/ WITH GOLD DOWN $16.25//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 5.8 TONNES FROM THE GLD.//INVENTORY RESTS AT 1060.82 TONNES

MAY 12/WITH GOLD DOWN $26.50: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.99 TONNES FROM THE GLD////INVENTORY RESTS AT 1066.62 TONNES

MAY 11/WITH GOLD UP $9.85//BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 7.25 TONNES FROM THE GLD/////INVENTORY RESTS AT 1068.65 TONNES

MAY 10//WITH GOLD DOWN $16.90: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A MASSIVE WITHDRAWAL OF 6.10 TONNES OF GOLD FROM THE GLD//INVENTORY RESTS AT 1075.90 TONNES

MAY 9/WITH GOLD DOWN $24.05: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.98 TONNES FROM THE GLD..//INVENTORY RESTS AT 1082.00 TONNES

MAY 6/WITH GOLD UP $7.95: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 4.06 TONNES FROM THE GLD////INVENTORY RESTS AT 1084.98 TONNES

MAY 5/WITH GOLD UP $6.60 TODAY:NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1089.04 TONNES

MAY 4//WITH GOLD UP 70 CENTS TODAY; A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.19 \TONNES FROM THE GLD//INVENTORY RESTS AT 1089.04 TONNES

MAY 3/WITH GOLD UP $6.05: A BIG CHANGE IN GOLD INVENTORY AT THE GLD/ A WITHDRAWL OF 2.32 TONNES//INVENTORY RESTS AT 1092.23

MAY 2/WITH GOLD DOWN $46.20: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.17 TONNES FROM THE GLD///INVENTORY RESTS AT 1094.55 TONNES

GLD INVENTORY: 1066.04 TONNES

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

JUNE 7/WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 547.167 MILLION OZ/

JUNE 6/WITH SILVER UP 20 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 6.459 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 547.167 MILLION OZ//

JUNE 3/WITH SILVER DOWN $.34: A SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITTHDRAWAL OF 246,000 OZ FORM THE SLV//INVENTORY RESTS AT 553.626 MILLION OZ..

JUNE 2/WITH SILVER UP 57 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.261 MILLION OZ FORM THE SLV.//INVENTORY RESTS T 553.872 MILLION OZ

JUNE 1/WITH SILVER UP 19 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV//: A WITHDRAWAL OF 2.538 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 556.133 MILLION OZ//

MAY 31/WITH SILVER DOWN $.41 TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY REST S AT 558.071 MILLION OZ//

MAY 27/WITH SILVER UP 10 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 558.071 MILLION OZ///

MAY 26/WITH SILVER UP 8 CENTS TODAY; HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 3.515 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 558.071 MILLION OZ

MAY 25/WITH SILVER UP 20 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF .922 MILLION OZ FROM THE SLV/ //INVENTORY RESTS AT 561.486 MILLION OZ//

MAY 20.WITH SILVER DOWN 20 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WIHDRAWAL OF .785 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 565.085 MILLION OZ//

MAY 19/WITH SILVER UP 34 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY REST AT 565.085 MILLION OZ//

MAY 18/WITH SILVER UP $0.04 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// A WITHDRAWAL  1.892 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 565.085 MILLION OZ//

MAY 17/WITH SILVER UP $.22 TODAY; HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 3.508 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 565.085 MILLION OZ//

MAY 16/WITH SILVER UP $.52 TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.546 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 568.593 MILLION OZ//

MAY 13/WITH SILVER UP 31 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 570.439 MILLION OZ/

MAY 12/WITH SILVER DOWN 88 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 570.439 MILLION OZ//

May 11/WITH SILVER UP 8 CENTS TODAY: BIG CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 5.487 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 570.439 MILLION OZ//

MAY 10.//WITH SILVER DOWN 40 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 575.977 MILLION OZ//

MAY 9/WITH SILVER DOWN 50 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 575.977 MILLION OZ

MAY 6/WITH SILVER DOWN 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 575.977 MILLION OZ//

MAY 5/WITH SILVER UP 6 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF .93 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 575.977 MILLION OZ//

MAY 4/WITH SILVER DOWN 27 CENTS TODAY: A SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF .851 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 576.900 MILLION OZ

MAY 3/WITH SILVER UP 4 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF.877 MILLION OZ INTO THE SLV.

MAY 2/WITH SILVER DOWN 47 CENTS: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 554,000 OZ FROM THE SLV.//INVENTORY RESTS AT 575.171 MILLION OZ//

INVENTORY TONIGHT RESTS AT 547.167 MILLION OZ/

PHYSICAL GOLD/SILVER STORIES

1.PETER SCHIFF

Peter Schiff: America Has Never Been In A Weaker Position To Fight Inflation

TUESDAY, JUN 07, 2022 – 12:40 PM

Via SchiffGold.com,

Federal Reserve Chairman Jerome Powell, President Biden and other government officials insist the US economy is in a strong position to handle an inflation fight. In his podcast, Peter Schiff explains why they are wrong. In fact, America has never been in a weaker position to take on an inflation fight.

There are a lot of people already claiming inflation has peaked and that the Federal Reserve is winning the war against inflation. But on what evidence?

Certainly, just looking at the price of oil, we’ve done nothing to combat inflation. In fact, if you look at actual evidence that’s out there, we are further behind the inflation curve than we were when the Fed began its fight. And that’s because it’s a fake fight. The Fed is talking, but they’re not acting. They’re dragging their feet on both rate hikes and quantitative tightening.”

There is some evidence that the central bank may have finally started trying to shrink its balance sheet. We saw a slight drop in total assets held by the Fed in April. But how long can it keep up quantitative tightening?

How long before they call it off and go back to quantitative easing? Because that is ultimately going to happen. And the way that you know that’s going to happen is because nobody in Congress is talking about major tax increases for the middle class. Nobody is talking about significant cuts to government spending, including middle-class entitlements like Social Security and Medicare. Because that’s what would be required in order for the Fed to actually follow through on its commitment to shrink the balance sheet. Because after all, if the Fed is going to shrink the balance sheet, how is the government going to sell all of these bonds if it continues to spend the same amount of money?”

The government depends on the central bank to create artificial demand for its bonds. When the Fed shrinks its balance sheet, it will go from being one of the biggest bond buyers to a bond seller. Instead of helping the Treasury sell bonds, it will become a competitor in the marketplace. Even if the Fed doesn’t actually sell Treasuries, but simply allows bonds to roll off its books without replacing them, it’s a difference without a distinction. That still means the Fed will have to sell more Treasuries to make up for what the Fed is no longer purchasing.

Absent Fed buying, interest rates will have to continue to skyrocket in order to entice people to buy all of the Treasuries necessary to finance government spending. The government cannot afford to have its borrowing costs increase.

So, the only alternative is to replace the Federal Reserve with the taxpayer. So, we need to have more taxes, or we have to cut spending. But since neither of those is under consideration, that quantitative tightening can’t happen. They can start, but they can’t complete it.”

Peter said this is also how you know we won’t make any headway in this inflation fight.

Because raising interest rates again is not enough. And the Fed is not raising interest rates enough anyway because they have to make interest rates higher than the inflation rate. They need real interest rates to be positive, and we’re not going to get anywhere close to positive. We’re not even going to get to zero real interest rates.”

In April, the CPI was 8.3% on an annual basis. That means the Fed needs to raise rates to over 8.3% just to get the real rate to zero. And that’s using the cooked government CPI formula that understates inflation.

President Joe Biden keeps saying he’s committed to fighting inflation. But you can’t be committed to fighting inflation without a commitment to cutting government spending or raising taxes. And not just raising taxes on the rich. That won’t generate enough revenue. They would have to raise taxes on the middle class — something Biden says he won’t do.

If the government has been relying on inflation as its source of funding, if that’s how all of this government is being paid for, well, if we’re going to stop creating inflation, then we need an alternative way for paying for government, or in the alternative, we have to reduce the size of government because there’s no way to pay for it.”

Peter said the public needs to understand that there is no free lunch.

Any government we have, we have to pay for. The government doesn’t support the people. The people must support the government. Right now, we’re supporting the government with inflation. That’s the tax that we’re paying. Prices are going up because the government is spending all this money and not collecting taxes. So, the only way to get relief from the inflation tax is to either get relief on the cost of government by having the government cut spending, or we have to pay higher taxes as a tradeoff for lower inflation. So, all these politicians that claim they want lower inflation — unless they also claim they want higher taxes or less government spending — they are lying.”

Biden claims we’re going into this inflation fight in a position of economic strength, thanks to his policies.

The opposite is actually true. Not only is the US economy not in a strong position to fight inflation; we are in a weak position. In fact, we have never been in a weaker position to fight inflation than we are right now.”

Again — in order to fight inflation, you have to raise interest rates and shrink the money supply.

But the US economy is more addicted to cheap money now and low interest rates than ever before. How can you fight inflation when we have so much debt? How can you raise interest rates high enough to fight inflation when there’s so much debt and nobody can afford to pay an interest rate high enough to effectively fight inflation? And when you are running record budget deficits, how do you pull the rug out from under that? How do you fight inflation, meaning shrinking the money supply, when the government is running the biggest budget deficits in its history? Sure, they’re slightly smaller than they were at their absolute peak during the COVID pandemic. But relative to where they’ve been historically, and relative to our current level of taxation, we have enormous budget deficits. And so, how do we fight inflation with such big deficits when fighting inflation is going to require the elimination of those deficits? It’s never going to happen.”

In this podcast, Peter also talks about the May jobs numbers and points out that employment is a lagging economic indicator.

2. Lawrie Williams//Pam and Russ Martens/

END

3. Chris Powell of GATA provides to us very important physical commentaries

India’s May gold imports surge a huge 677% from a year ago.

(Reuters/GATA)

India’s May gold imports surge 677% to $5.83 billion

Submitted by admin on Mon, 2022-06-06 10:53Section: Daily Dispatches

From Reuters
via The Hindu, Chennai
Monday, June 6, 2022

India’s gold imports in May jumped 677% from a year ago to the highest level in a year as a correction in prices just before a key festival and wedding season boosted retail jewellery purchases, a government source said today.

Higher imports by the world’s second-biggest bullion consumer could support benchmark gold prices, but the surge could increase India’s trade deficit and put pressure on ailing rupee.


India imported 101 tonnes of gold in May, compared to 13 tonnes a year earlier, the source said on condition of anonymity as he is not authorised to speak to media.

In value terms, May imports surged to $5.83 billion from $678 million a year ago, he said.

“Retail consumers were waiting for a price correction. As prices corrected during Akshaya Tritiya festival, they rushed to jewellery shops,” said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in the eastern Indian city of Kolkata. …

… For the remainder of the report:

https://www.thehindubusinessline.com/markets/gold/indias-may-gold-imports-surge-677-to-583-billion/article65500586.ece

end

USA hedge fund, Elliott and Associates are suing the LME for $456 million for cancelling nickel trades that forced the exchange to suspend its nickel market

(zerohedge)

Hedge fund sues LME for $456 million over nickel trade cancellations

Submitted by admin on Mon, 2022-06-06 10:38Section: Daily Dispatches

By Selena Li and Eric Onstad
Reuters
Monday, June 6, 2022

U.S. hedge fund Elliott Associates is suing the London Metal Exchange (LME) for $456 million for cancelling nickel trades after chaotic trading in March that forced the exchange to suspend its nickel market, the LME said today.

The legal action piles more pressure on the exchange, which is being probed by regulators and is struggling to restore trust and volumes in its nickel market.

Elliott said the LME should not have halted trading and erased deals after prices more than doubled to over $100,000 a tonne in a matter of hours on March 8. 

The LME and LME Clear Ltd. were named as defendants in the judicial review claim filed in a British court by Elliott Associates and Elliott International last week, the LME’s parent company Hong Kong Exchanges and Clearing Ltd said. …

… For the remainder of the report:

https://www.reuters.com/markets/commodities/elliott-associates-sues-lme-456-mln-over-nickel-trading-halt-hkex-2022-06-06/

END

4.OTHER GOLD/SILVER COMMENTARIES

end

5.OTHER COMMODITIES //DIESEL+ OTHERS

END

END

COMMODITIES IN GENERAL/

END

6.CRYPTOCURRENCIES

7. GOLD/ TRADING

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

ONSHORE YUAN: CLOSED DOWN 6.6708

OFFSHORE YUAN: 6.6732

HANG SANG CLOSED  DOWN 122.23 PTS OR 0.56% 

2. Nikkei closed UP 28.06% OR 0.10%

3. Europe stocks  ALL CLOSED  ALL RED

USA dollar INDEX  UP TO  102.76/Euro RISES TO 1.0672

3b Japan 10 YR bond yield: RISES TO. +.243/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 132.81/JAPANESE FALLING APART WITH YEN FALTERING AS WELL AS LONG TERM YIELDS RISING BREAKING THE JAPANESE CENTRAL BANK.

3c Nikkei now  ABOVE 17,000

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

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

3f 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.

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

3h European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +1.258%/Italian 10 Yr bond yield RISES to 3.34% /SPAIN 10 YR BOND YIELD FALLS TO 2.40%…

3i Greek 10 year bond yield FALLS TO 3.81

3j Gold at $1848.05 silver at: 22.06  7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3k USA vs Russian rouble;// Russian rouble UP  0.25      roubles/dollar; ROUBLE AT 60.78

3m oil into the 118 dollar handle for WTI and  119 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 132.81DESTROYING 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 0.9768– as the Swiss Franc is still rising against most currencies. Euro vs SF 1.0423well 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.

USA 10 YR BOND YIELD: 3.029 DOWN 1  BASIS PTS

USA 30 YR BOND YIELD: 3.181 DOWN 1 BASIS PTS

USA DOLLAR VS TURKISH LIRA: 16.76

Futures Slide As Sell-The-Rippers Emerge, Encouraged By Target’s Dismal Update

TUESDAY, JUN 07, 2022 – 08:03 AM

It was a relatively quiet session for stocks with futures trading modestly lower overnight as yields eased their Monday surge and when the biggest news was Australia’s unexpected 50bps rate hike (double consensus) before all hell broke loose at 7am, when Target cut guidance for the second time in two weeks due to the infamous bullwhip effect we had warned about just a few weeks ago, sending TGT stock crashing more than 9% and encouraging the cold risk-off wind that pushed S&P futures 0.8% lower to session lows around 4,080…

… while Nasdaq 100 futures fell 1% as Treasury yields hovered around 3.05%, their highest in nearly a month. Europe’s Stoxx Europe 600 Index slipped as telecom and technology stocks weighed.

In the premarket, shares of Target tumbled as much as 10% after the retailer cut its profit outlook for the second time in three weeks amid an inventory surplus. The news sent retailers such as Walmart and Costco also sliding premarket; WMT was down as much as 4.3% ahead of the bell, COST -2.9%, Kroger -1.3%, Macy’s -3%. Among other notable movers, cryptocurrency-exposed stocks tumbled in premarket trading as Bitcoin slid back below $30,000. Meanwhile Kohl’s shares rose 12% in premarket trading as the company holds exclusive talks with Franchise Group regarding a deal that would value the retail chain at about $8 billion. Here are some other notable premarket movers:

  • Cryptocurrency-exposed stocks decline in premarket trading as Bitcoin slides back below $30,000, with another attempt at upward momentum losing traction amid risk-off markets. Riot Blockchain (RIOT US) -5%, Marathon Digital (MARA US) -3.7%.
  • Kohl’s (KSS US) shares jump 12% in US premarket trading as the company holds exclusive talks with Franchise Group regarding a deal that would value the retail chain at about $8 billion.
  • Peloton’s (PTON US) shares rose 1.4% in US after-hours trading on Monday. Former vice president of Amazon Web Services Liz Coddingtonis “well-positioned” to help Peloton in its next stage of growing subscribers, Citi says, after the exercise machine maker appointed Coddington CFO.
  • Gitlab (GTLB US) shares rose 9.8% in postmarket trading on Monday after the software company’s first-quarter report.
  • HealthEquity (HQY US) shares climbed 5.8% in postmarket Monday. It boosted its revenue guidance for the full year as its results beat the average analyst estimate in what RBC analyst Sean Dodgesaid could be the start of a years-long upside driven by rising interest rates.
  • ProFrac (PFHC US) shares could be active after analysts initiated coverage of oil services firm with three overweight ratings and one buy, with both Piper Sandler and Morgan Stanley positive on the company’s valuation and vertical business model.
  • Veru Inc. (VERU US) gained 2.8% in postmarket trading after Tang Capital Partners LPdisclosed a 5.2% passive stake in the firm.

On Monday, investors once again sold the rip, showing their reluctance to take on risk amid fears policy to subdue inflation will go overboard and kill off economic recoveries, rather than cooling off price pressures in a so-called soft landing.

“This debate around ‘are we going to see a recession, are we going to see a soft landing?’ — that’s really keeping markets relatively range bound,” Laura Cooper, a senior investment strategist at BlackRock Inc., said in an interview with Bloomberg TV. “We likely need to see a dovish pivot from policymakers to really have conviction that we’re going to a sustained rally in equities.”

Rising bond yields are adding to worries about risks to economic growth as central banks ratchet up policy tightening. US benchmark Treasury yields stabilized near 3%, a psychological threshold that may burden new supply due this week before crucial inflation data.

“The combo of declining growth, rising rates and falling liquidity is pretty ugly for equities,” said James Athey, investment director at abrdn. “Reluctant as investors in those market are to admit, the outlook for multiples and earnings isn’t great and is probably getting worse.”

Meanwhile, Friday’s CPI reading for May will be crucial for clues on the Federal Reserve’s pace of monetary tightening, especially the clothing and apparel component where we expect prices to plunge amid the inventory liquidation. Strong hiring data last week already cleared the way for the central bank to remain aggressive in its fight against inflation by raising interest rates. Higher rates particularly hurt growth sectors that are valued on future profits, like tech. 

In Europe, the benchmark Stoxx 600 Index also resumed losses on Tuesday led by drops of more than 1% in technology and travel shares. European equities traded poorly with several indexes giving back over half of Monday’s gains. Euro Stoxx 50 drops as much as 0.8%, cash DAX underperforming at the margin. Tech, retail and telecoms are the weakest Stoxx 600 sectors. FTSE 100 trades flat.  The European Central Bank on Thursday is set to end trillions of euros of asset purchases and cement a path to exiting eight years of negative interest rates.

Earlier in the session, Asian stocks declined with chipmakers coming under pressure as traders reassessed the outlook for demand, offsetting Japan’s boost from a weak yen. The MSCI Asia Pacific Index dropped as much as 1.2%, with TSMC and Samsung Electronics the biggest drags. Most sectors traded lower, while some Chinese internet giants and Japanese automakers were among the notable gainers. Tech hardware stocks fell as worries about demand for handsets and other gadgets outweighed hopes for a recovery in China on the easing of Covid lockdowns. South Korean equities dropped as the market reopened after a holiday, while shares in Australia slumped after the Reserve Bank of Australia blindsided the market with an outsized hike to combat rising costs. The RBA responded to price pressures with its biggest rate increase in 22 years — predicted by just three of 29 economists — and indicated it remained committed to “doing what is necessary” to rein in inflationary pressures.

There are persistent worries about demand for semiconductors as the market consensus is that a demand slowdown for handsets and other consumer electronics is highly likely,” said Lee Jinwoo, chief strategist at Meritz Securities in Seoul. Most Chinese tech stocks finished lower in volatile trading after climbing Monday following a report that regulators are concluding their investigation of transport firm Didi. Japanese shares rose as the yen weakened to its lowest level in two decades, boosting exporters such as Toyota and Honda. Read: Yen Slides to Two-Decade Low, Reigniting Focus on Intervention Asian stocks are down in June after posting their first monthly gain in five months in May. Traders will be assessing the inflation and growth outlook ahead of the Federal Reserve’s meeting next week while monitoring the state of Covid restrictions in China.  “Stock market valuations have de-rated quite significantly and from our perspective, there is a lot of the bad news largely in the price. Possibly there’s more to go,” Chetan Seth, Asia Pacific equity strategist at Nomura Holdings said at a conference in Singapore

In FX, Bloomberg dollar spot rises as much as 0.4% and the dollar was steady or higher against all of its Group-of-10 peers; NOK is the weakest G-10 performer. JPY softness extends, briefly trading at 133/USD. The yen extended its slump to a fresh 20- year low near 132.60/USD as BOJ’s Kuroda continued to emphasize persistent easing commitment. Senior Japanese government officials said they were closely watching currency markets with a sense of urgency Tuesday as they returned to a heightened state of alert following a renewed slide in the yen to fresh two-decade lows. The dollar’s steep rally to the 133 handle versus the yen and the Australian central bank’s biggest rate hike in 22 years make the case for long-volatility exposure in the major currencies and traders follow suit. The pound fell to an almost three-week low versus the greenback before paring losses to trade around $1.25. The gilt yield curve bull flattened. The euro was little changed, trading around $1.07. Bunds and European bonds reversed opening losses even as wagers earlier crossed half the way toward calling a historic half-point.

In rates, treasuries swung from losses to gains, sending yields as much as 3bps lower as the yield curve flattened. Treasury futures rose led led by the long-end amid weakness in European stocks and S&P 500 futures.Bloomberg notes that gains were helped by block trade in 10-year note futures as cash yield eases back toward 3%. US yields were richer by nearly 3bp across long-end of the curve, flattening 2s10s, 5s30s by ~1bp; 10-year, down ~2bp to 3.02%, outperforms bunds slightly, while gilt is little changed. German bunds outperform, richening ~3bps from the 5y point out, gilts are relatively quiet. Peripheral spreads are slightly tighter to core, semi-core widens a touch. Australian bond yields soared and the Aussie briefly reversed a loss after the central bank surprised investors by raising its cash rate by 50 basis points — the biggest increase in 22 years — to 0.85%, a result predicted by just three of 29 economists. It also committed itself to “doing what is necessary” to rein in inflationary pressures.

In commodities, crude futures drift higher with WTI near $120 and Brent back around $122. Spot gold adds ~$6 to near $1,847/oz. Base metals are in the red with LME nickel down over 3%.

Bitcoin is pressured and back below the USD 30k mark and incrementally below last week’s trough of USD 29.04k.

Looking to the day ahead now, and data releases include German factory orders for April, the final UK services and composite PMI for May, as well as the US trade balance and consumer credit for April. Otherwise central bank speakers include the ECB’s Wunsch.

Market Snapshot

  • S&P 500 futures down 0.4% to 4,106.00
  • STOXX Europe 600 down 0.4% to 442.31
  • MXAP down 0.9% to 167.50
  • MXAPJ down 1.1% to 552.94
  • Nikkei up 0.1% to 27,943.95
  • Topix up 0.4% to 1,947.03
  • Hang Seng Index down 0.6% to 21,531.67
  • Shanghai Composite up 0.2% to 3,241.76
  • Sensex down 1.2% to 55,018.56
  • Australia S&P/ASX 200 down 1.5% to 7,095.74
  • Kospi down 1.7% to 2,626.34
  • Brent Futures up 0.3% to $119.88/bbl
  • Gold spot up 0.1% to $1,843.79
  • U.S. Dollar Index up 0.10% to 102.54
  • German 10Y yield little changed at 1.30%
  • Euro little changed at $1.0694

Top Overnight News

  • The ECB will begin a new era of monetary policy this week as officials complete their pivot to confront the threat of inflation running out of control. Armed with new forecasts and with prices rising at a record pace, President Christine Lagarde and her colleagues will end trillions of euros of asset purchases and cement a path to exiting eight years of negative interest rates
  • The yen has tumbled to a two-decade low against the dollar, caught in the crossfire between the two wildly different monetary policy regimes in Japan and the US. The Bank of Japan is pinning interest rates to zero in a bid to boost a sputtering economy and spur price growth, while the Federal Reserve is hiking furiously to beat back raging inflation
  • Investors from Tokyo to New York are betting on further weakness in Japan’s currency, which is already wallowing at a two-decade low against the greenback
  • Bank of Japan Governor Haruhiko Kuroda walked back some of his comments that consumers are now more willing to accept higher prices after criticism on social media and a grilling in parliament

A more detailed look at global markets courtesy of Newsquawk

Asia-Pac stocks traded cautiously amid recent upside in yields and ahead of upcoming risk events. ASX 200 declined with losses exacerbated after the RBA delivered a larger-than-expected rate hike. Nikkei 225 swung between gains and losses although a weak JPY boosted the index above 28k. Hang Seng and Shanghai Comp. were varied as the mainland was kept afloat by reopening optimism and with Hong Kong subdued by property names, although tech benefitted from hopes Beijing may be easing its crackdown on the sector with China reportedly to conclude the cybersecurity probe into certain companies.

Top Asian News

  • China’s Tianjin city reopened all subway stations that were closed due to COVID, while Shanghai Port’s daily volume rose to 95% of the normal level, according to local press.
  • Labor Advisory Committee urged US President Biden to extend China tariffs, according to Axios.
  • Japan set up a team to monitor land sales near bases and nuclear plants or on strategically located islands under a new law designed to prevent hostile foreigners from affecting national security, according to Nikkei.
  • RBA hiked rates by 50bps to 0.85% (exp. 25bps increase) and said inflation in Australia has increased significantly, while it is committed to doing what is necessary to ensure that inflation in Australia returns to the target over time. RBA added that inflation is likely to be higher than was expected a month ago and the Board expects to take further steps in normalising monetary conditions over the months ahead with the size and timing of future interest rate increases to be guided by the incoming data and the assessment of the outlook for inflation and the labour market. Furthermore, it noted the Australian Economy is resilient although one source of uncertainty about the economic outlook is how household spending evolves, given the increasing pressure on Australian households’ budgets from higher inflation.
  • Japan’s Economy Minister Yamagiwa says they are closely watching any impact of FX movements on the economy, wants to refrain from commenting on FX levels, via Reuters.

European bourses are modestly pressured, Euro Stoxx 50 -0.9% , with newsflow relatively limited once more and participants looking ahead to the week’s risks events. Stateside, performance is in-fitting with this directionally, though marginally more contained in terms of magnitudes, with a limited US docket ahead; ES -0.5%. EU lawmakers have come to an agreement on a single mobile charging point, via Reuters; will be USB-C by fall-2024.

Top European News

  • UK PM Johnson won the confidence vote, as expected, with total votes at 211 vs 148, according to Reuters. However, the Telegraph highlights that Johnson is not “out of the woods yet” given that he has lost the support of so many backbenchers.
  • UK PM Johnson said he is grateful for colleagues’ support and that they need to come together as a party now. PM Johnson added that they can now focus on what they are doing to help people in the country and have a chance to continue strengthening the economy, while he responded that is certainly not interested when asked about a snap election, according to Reuters.
  • Subsequently, the 1922 Committee is, according to the understanding of UK MP Ellwood, looking at altering party rules to allow another no-confidence vote within a one-year period, via Sky’s Degenhardt.
  • Barclaycard UK May consumer spending rose 9.3% Y/Y, which reflected the rising cost of living and base effects, according to Reuters.

FX

  • Dollar takes time out after rallying further on yield factors and frailty of others, DXY midway between 102.830-450 range.
  • Yen continues to underperform on rate and relative BoJ policy dynamics, with Franc also feeling the heat from SNB vs Fed, ECB etc policy divergence; USD/JPY touches 133.00 before easing back, USD/CHF tops 0.9675 and EUR/CHF crosses 1.0400.
  • Kiwi hit by abrupt turnaround in AUD/NZD tide after RBA exceeded market expectations with a 50bp hike compounded by hawkish guidance; NZD/USD sub-0.6500 around 0.6450, AUD/NZD above 1.1100 and AUD/USD within sight of 0.7200.
  • Sterling volatile after PM Johnson wins confidence vote, but significant minority of Conservative Party want him out; Cable choppy either side of 1.2500 and EUR/GBP whipsaws around 0.8550.
  • Loonie softer with oil ahead of Canadian trade data and Ivey PMIs, USD/CAD near 1.2600 after probe beyond round number.
  • Lira continues to slide after Turkish President Erdogan repeats intention to keep cutting rates irrespective of ongoing rise in inflation, USD/TRY tests 14.7500.

Fixed Income

  • Firm bounce in bonds following extension of bear run to new cycle lows.
  • Bunds lead the way in core debt circles with a near full point recovery to 149.80, while BTPs remain to the fore at the margins between 121.27-122.86 bounds.
  • Gilts flat after falling short of 115.00 before solid 2025 DMO auction, T-note a tad firmer and curve flatter for choice ahead of 3 year sale.

Commodities

  • Crude benchmarks have waned from initial upside stemming from bullish bank commentary amid a broader easing in risk sentiment.
  • Thus far, WTI and Brent have been as low as USD 117.76/bbl and USD 118.62/bbl respectively, circa. USD 2.00/bbl from initial highs.
  • Goldman Sachs hiked its Q3 Brent oil forecast to USD 140/bbl from USD 125/bbl and increased its Q4 forecast to USD 130/bbl from USD 125/bbl.
  • Morgan Stanley’s base case view is for Brent to reach USD 130/bbl during Q3 with an upside to the bull case estimate of USD 150/bbl.
  • Spot gold languished near the prior day’s lows amid a firmer greenback.
  • JPMorgan continues to see gold trading softer towards USD 1,800/oz in Q3 2022 on an expected rebound in investor risk sentiment and continued push higher in US yields.
  • Spot gold is firmer but capped by USD 1850/oz, which now coincides with its 10-DMA, after losing the level late on Monday; base metals are generally pressured, amid risk aversion and following yesterday’s price action.

US Event Calendar

  • 8:30am: Revisions: Trade Balance
  • 8:30am: April Trade Balance, est. -$89.5b, prior -$109.8b
  • 3pm: April Consumer Credit, est. $35b, prior $52.4b

DB’s Jim Reid concludes the overnight wrap

Yesterday I published the 24th Annual Default Study. While nothing much will change for the remainder of 2022, we think we might be coming to the end of the ultra-low default world we’ve discussed so much in previous editions. First, we will likely have a cyclical US recession to address in 2023, and after that, a risk of the reversal of trends that have made the last 20 years so subdued for defaults.

We see US HY defaults peaking at just over 10% in 2024 with Europe just under 7% helped by a higher BB weighting. After that we see many of the trends of the last couple of decades reversing, helping to leave the ultra-low default era behind. You can read all about this in the note but these factors include: higher structural inflation, less ability for central banks to be as aggressive across all fixed income – they will be forced to pick their battles (eg Peripherals), less global FX reserve accumulation, a turn up in the free float of global government bonds, higher term premium, a structural fall from peak corporate profits, and shorter gaps between recessions. None of this need be a disaster just a change in the long-term trend. Clearly our view relies a lot on inflation being sticky and helping set off a 2023 recession and then remaining sticky after this, and thus changing the landscape of the last 20 years. If we’re wrong on both, the ultra-low default world will survive. See the report here.

The biggest story yesterday was a surge in yields but before we get there, a big curiousity to those of us in the UK, albeit with very limited implications for global markets, was the confidence vote last night for Prime Minister Boris Johnson from within his own party. That came after the threshold of 15% of his own MPs called for a vote, and the final result saw him win by just 211-148, meaning that 41% of his own party’s MPs voted against him. For reference, that’s more than the 37% of MPs who voted against his predecessor Theresa May in a similar vote in December 2018, and it was only 5 months later that she announced her resignation after failing to deliver Brexit and witnessing a dramatic turn in the Conservatives’ poll ratings. The next big hurdle for Johnson will likely be two by-elections on June 23rd, one of which is in a “Red Wall” seat that the Conservatives gained off Labour for the first time in decades to win their majority at the last election, whilst the other is in a traditionally safe Devon seat for the Conservatives but where the bookmakers have the Liberal Democrats as the favourite to win. So bad showings in those two would keep questions about Johnson’s leadership in the headlines and further intensify the pressure on him. In theory the Conservative leadership rules give him another year before a repeat confidence vote can happen, but history tells us that once this process gets set in motion it is incredibly difficult to reverse the negative momentum, and both Theresa May and Margaret Thatcher resigned well within a year even though they also won a majority of their own MPs at the confidence vote. Sterling actually climbed around +0.5% in the morning as the vote was officially triggered before giving back half these gains as the day progressed. However even after the surprise result at 9pm last night Sterling didn’t move, and this morning it’s just -0.09% lower, trading at 1.252 against the US dollar.

Back to the main event, which was the global rates sell-off, where 10yr Treasury yields poked back up above 3% for the first time in nearly a month, whilst European yields hit fresh multi-year highs of their own ahead of this Thursday’s ECB meeting. There’ve been a couple of catalysts behind those moves higher, but a key one over the last week and a half has been the perception that near-term recession risks (at least in 2022) are fading back again, which in turn is set to give central banks the space to continue hiking rates and thus take bond yields higher. On top of that, the fact that recent inflation data has proven stickier than expected has also pushed yields higher, and investors are eagerly awaiting to see if we get another upside surprise from the US CPI reading out on Friday.

All-in-all, those moves sent the 10yr Treasury yield up by +10.3bps yesterday to 3.04%, with a rise in real yields of +8.3bps behind the bulk of the move. That came as investors dialled back up their bets on Fed tightening over the rest of the year, with the implied rate by the December FOMC meeting at a 1-month high of 2.85%, whilst the rate priced in by the Feb-2023 meeting went back above 3% for the first time in a month as well. But it was in Europe where there were even more significant milestones, with the amount of ECB rate hikes priced in by December exceeding 125bps for the first time, meaning that markets are fully pricing in at least one 50bp hike by year-end, assuming the ECB begins liftoff at the July meeting.

That prospect of a 50bp hike from the ECB sent yields on 10yr bunds up +4.9bps to 1.32%, which is their highest level since mid-2014, whilst the German 2yr yield (+3.0bps) hit its highest level since 2011. It was a similar picture elsewhere on the continent, with yields on 10yr OATs (+4.1bps) at a post-2014 high, and those on 10yr BTPs (+1.3bps) at a post-2018 high. Gilts underperformed however, with 10yr yields up +9.2bps as investors moved to price in at least one 50bp hike from the BoE by year-end.

Those moves have gained further momentum overnight after the Reserve Bank of Australia hiked rates by a larger-than-expected 50bps, helping 10yr Treasury yields to rise a further +1.9bps this morning to hit 3.06%. Their statement also pointed to further tightening ahead, and said that they expect “to take further steps in the process of normalizing monetary conditions in Australia over the months ahead”, and that they were “committed to doing what is necessary to ensure that inflation in Australia returns to target over time.” Unsurprisingly, the Australian dollar is also the top-performing G10 currency this morning, up +0.50% against the US Dollar.

The strong rise in bond yields wasn’t enough to stop equities from posting a decent start to the week, although they did pare back their initial gains following the US open. By the close, the S&P 500 (+0.31%) had held onto a broad-based advance, with 8 of 11 sectors advancing, even after paring back gains as high as +1.5% in the morning. Tech stocks fared slightly better than the broader index, with the NASDAQ gaining +0.40%. The clearest split was between mega- and small-cap shares, as mega-cap shares were clear outperformers as the FANG+ Index ended the day +1.68% higher while the small-cap Russell 2000 (+0.36%) lagged behind. It was much the same story in Europe too, where the STOXX 600 (+0.92%), the DAX (+1.34%) and the CAC 40 (+0.98%) all moved higher as well.

Whilst equities were making further gains, there wasn’t much respite on the inflation side since commodities continued their advance, with Bloomberg’s Commodity Spot Index (+1.86%) hitting a fresh record on the back of the latest moves. Admittedly, Brent Crude (-0.18%) and WTI (-0.31%) oil prices fell back slightly, and we also saw European natural gas prices (-1.75%) fall to their lowest levels since Russia’s invasion of Ukraine began. But US natural gas prices surged another +8.37% to a fresh post-2008 high, whilst agricultural goods also saw some serious movements, with futures on corn (+2.13%), wheat (+5.10%) and sugar (+1.40%) all rising on the day. This morning we’ve seen even further momentum behind commodity prices, with Brent crude moving back above the $120/bbl mark thanks to a +0.69% gain.

Overnight in Asia, equity markets have put in a pretty mixed performance as they grappled with that monetary tightening mentioned above. The Nikkei (+0.51%), the CSI 300 (+0.65%) and the Shanghai Comp (+0.48%) have all moved higher, but the Hang Seng (-0.12%) has posted a marginal decline and the Kospi (-1.37%) has lost significant ground. Meanwhile in Australia, the S&P/ASX 200 has deepened its loses since the RBA’s hawkish decision, and is currently down -1.63%, whilst futures in the US are also pointing lower, with those on the S&P 500 down -0.59% this morning. On the FX side, we’ve also seen the Japanese Yen fall to a 20-year low against the US Dollar of 131.88 by the close yesterday, and this morning it’s lost further ground to hit 132.86. That comes as the BoJ stands out among its global peers in not tightening policy, which is leading to a widening interest rate differential as other central banks continue hiking.

Finally we started on credit so let’s end there too before the day ahead preview. Our colleagues in the European Leveraged Finance Research team have just published their quarterly top trade ideas. You can find the report here.

To the day ahead now, and data releases include German factory orders for April, the final UK services and composite PMI for May, as well as the US trade balance and consumer credit for April. Otherwise central bank speakers include the ECB’s Wunsch.

end

3. ASIAN AFFAIRS

i)TUESDAY MORNING// MONDAY NIGHT 

SHANGHAI CLOSED UP 5.39 PTS OR 0.17%   //Hang Sang CLOSED DOWN 122.23 PTS OR 0.54%    /The Nikkei closed UP 28.06 OR 0.10%          //Australia’s all ordinaires CLOSED DOWN 1.54%%   /Chinese yuan (ONSHORE) closed DOWN 6.6708    /Oil UP TO  118.03dollars per barrel for WTI and UP TO 119.19 for Brent. Stocks in Europe OPENED  ALL RED       //  ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6708 OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.6752: /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN  TRADING WEAKER AGAINST US DOLLAR/OFFSHORE WEAKER/

3 a./NORTH KOREA/ SOUTH KOREA

///NORTH KOREA/SOUTH KOREA/USA/JAPAN

US & S.Korean Jets In Large ‘Show Of Force’ As White House Warns Kim Against Nuclear Test

TUESDAY, JUN 07, 2022 – 10:20 AM

So far this year alone has seen North Korea launch at least 18 rounds of missiles, which included its first intercontinental ballistic missile tests since 2017, in significant timing given also the world’s attention has been focused on the Russian invasion of Ukraine.

On Monday for the first time this year, the US and South Korea “answered” Pyongyang’s latest Sunday launches of eight missiles by firing precisely eight missiles of their own. Sunday’s launches were the biggest single-day testing event all year. On Tuesday US and South Korean forces have continued a ‘show of force’ by flying dozens of fighter jets over waters off the Korean Peninsula.

The flights also included aircraft from Japan. The Associated Press describes, “Extending the countries’ joint displays of military might, four U.S. F-16 fighter jets flew in formation with 16 South Korean planes — including F-35A stealth fighters — over waters off South Korea’s eastern coast, an exercise aimed at demonstrating an ability to quickly respond to North Korean provocations, South Korea’s Joint Chiefs of Staff said.”

“The United States and Japan conducted a separate drill involving six aircraft — four Japanese F-15 fighters and two American F-16s — above waters between the Korean Peninsula and Japan, Japan’s Defense Ministry said,” the report adds.

Meanwhile, US Deputy Secretary of State Wendy Sherman is in Seoul for talks with her Korean counterparts. She took the opportunity to again warn Pyongyang against holding a nuclear test, which hasn’t occurred in a half-decade. She said there would be a “swift and forceful” counterresponse of the north moves forward with conducting a nuclear explosion

The warning appeared timed and coordinated with the larger than usual joint flights among US allies in regional waters. Without doubt it got Pyongyang’s attention, though it remains to be seen whether there will be escalation or a walking back of ratcheting tensions.

“Any nuclear test would be in complete violation of U.N. Security Council resolutions. There would be a swift and forceful response to such a test,” Sherman said. “We continue to urge Pyongyang to cease its destabilizing and provocative activities and choose the path of diplomacy.”

She and South Korean representatives, including Vice Foreign Minister Cho Hyun-dong,  are expected to discuss North Korea’s nukes with Japanese Vice Foreign Minister Mori Takeo on Wednesday.

Within the last month Western media reports have begun sounding the alarm over resumed construction and expansion at North Korean nuclear sites.

While not confirmed, the allegations that Pyongyang is seeking to revive some long-dormant sites are based on open-source satellite imagery, as CNN previously detailed

North Korea appears to have resumed construction at a long-dormant nuclear reactor in recent weeks that, if completed, would dramatically increase its capacity to produce plutonium for nuclear weapons, according to new satellite images obtained by CNN and a source familiar with recent US intelligence reporting on the matter.

The satellite images, which were captured by Maxar during April and May of this year, show North Korea has restarted construction of the second reactor at its Yongbyon nuclear complex after years of inactivity, experts at the Middlebury Institute of International Studies who analyzed the photos said.

The reactor is about 10 times larger than the existing nuclear reactor at Yongbyon, which has been operating since the late 1980s.

On Monday, International Atomic Energy Agency (IAEA) chief Rafael Grossi issued a briefing at a quarterly meeting of the IAEA, saying that work at the north’s main nuclear site at Yongbyon is advancing, amid fears of a return to nuclear saber-rattling by the Kim Jong Un regime.

3B  JAPAN

end

3c CHINA

4/EUROPEAN AFFAIRS//UK AFFAIRS/

POLAND

Poles told to burn wood to keep warm in the winter as inflation rips through their country.

“Collect Branches For Fuel” – Poles Told To Burn Wood To Keep Warm Amid ‘Putinflation’

TUESDAY, JUN 07, 2022 – 05:45 AM

In early 2019just before the COVID-lockdown crisis hit the world, the southern Polish city of Kraków introduced a ban on burning coal and wood in a campaign against smog.

The move means residents face fines for using such fuel in their stoves, boilers, fireplaces and even for cooking on stationary barbecues. Lighter, portable barbecues are exempt.

Inspectors will monitor air pollution levels using a drone, thermal imaging camera and a dust monitor, state news agency PAP reported.

Fast-forward three years, with millions of refugees surging across the border from Ukraine and energy prices at record-er and record-er highs, it appears the Polish government has changed its mind on ‘smog’ and ‘climate change’ as it reminded citizens on Friday they can forage firewood from forests to keep warm.

The government said it was taking steps to make it easier for people to collect firewood in an effort to ease the pressure created by sky-rocketing energy bills and shortages of coal.

“It is always possible, with the consent of foresters, to collect branches for fuel,” said deputy climate and energy minister Edward Siarka.

However, it’s not quite as ‘easy’ as wondering into the forest with your axe.

The polish government demands that those wishing to gather wood must first undergo training and obtain permission from the local forestry unit. Additionally, they went on to clarify that people can only take branches already lying on the ground, and cannot cut down trees.

“Only branches can be gathered. At the same time, the collected branches cannot be thicker than seven centimeters,” said Katowice Directorate of State Forestry official Marek Mroz.

Interestingly, while Prime Minister Mateusz Morawiecki’s government is blaming the Russian invasion of Ukraine for driving up costs (Putinflation), as Euronews reports, critics, however, say the war is only partially to blame. They argue that costs have risen for seven years under Law and Justice’s social spending policies, which include cash handouts to families with children and the elderly.

“We will all be collecting brushwood,” said Donald Tusk, leader of the opposition Civic Platform on Friday.

“Because this seems to be the latest idea to prevent Polish poverty that Law and Justice has prepared for all of us.”

The Law and Justice party has said it is seeking ways to alleviate the energy crisis, stating that eight ships carrying more than 700,000 tonnes of coal are on their way to Poland.

Greta will not be happy at all!! (has anyone else noticed how quiet she has been during this crisis). Who cares about the ‘climate’ when your fingers have frostbite and you can’t heat your food…

end

UK

Huge story:  huge inflation in the UK could cause 500,000 small businesses to go bust

(zerohedge)

“Ticking Timebomb”: 500,000 UK Small Businesses Could Imminently Go Bust 

TUESDAY, JUN 07, 2022 – 02:45 AM

As a stagflationary storm looms over the UK economy, the Federation of Small Businesses (FSB) chairman warned of a tsunami of small business closings without new support packages from the government. 

FSB chairman Martin McTague, recently told BBC Radio 4’s Today, “there is still a massive problem with small businesses. They are facing something like twice the rate of inflation for their production prices, and it’s a ticking timebomb. They have got literally weeks left before they run out of cash and that will mean hundreds of thousands of businesses, and lots of people losing their jobs.”

McTague referred to the Office for National Statistics (ONS) data, showing that 2 million (or about 40%) of the UK’s small businesses had less than three months of cash in reserves to support operations. He noted that 10% (or 200,000) were in grave danger, and 300,000 only had a few weeks of cash left. 

“It is a very real possibility because … they don’t have the cash reserves. They don’t have any way they can tackle this problem,” McTague said. 

FSB chairman’s warning comes as April UK inflation hit 9%, the highest level since 1982. Inflation has been widely sparked not just by loose monetary policy conditions during the virus pandemic but now soaring energy costs as Europe tries to ween itself off Russian fossil fuels and monetary tightening by the central bank. 

McTague gave one example of a hotel owner in Scarborough, a resort town on England’s North Sea coast, which had profits wiped out because soaring power bills were five times higher than normal levels. 

“They weren’t able to trade any longer without essentially trading at a loss and therefore damaging the future of their business and everybody that worked for them,” he said. 

Soaring inflation and faltering growth is a perfect recipe for a stagflationary macro backdrop that is already crushing small businesses and households. ONS data showed the economy contracted by .1% in March, and the economy appears to be sliding into what could be the beginning of a recession

Meanwhile, Bloomberg data shows the Bank of England is on an aggressive hiking path this summer to quell inflation. Tightening into a downturn will only add even more pressure on small businesses by making lending more expensive and stifling demand. 

Recession fears and economic turmoil have sent the pound to a two-year low. 

A combination of higher energy prices, a slumping pound, faltering economic growth, a deteriorating environment for small businesses, weak households, trade restrictions on Russia, a central bank that is tightening, and overall inflation at four-decade highs have all produced a toxic environment for the UK economy. 

No wonder the UK Misery index is soaring to the highest level since 1994. 

Meanwhile, Barclays’ small and medium-sized enterprises barometer shows 75% of British firms are worried about the challenging macro climate and how it could dramatically impact their operations. 

END

NATO/SWEDEN/FINLAND /RUSSIA

This is extremely dangerous: war games in the Baltic with Finland and Sweden joining in

(Anzalone/Antiwar.com)

NATO Kicks Off Baltic War Games With Finland, Sweden As Russia Tensions Boil

TUESDAY, JUN 07, 2022 – 02:00 AM

Authored by Kyle Anzalone via AntiWar.com,

The North Atlantic Treaty Organization announced it will launch military drills with 7,000 troops in the Baltics. The provocative war games will include Sweden and Finland. Stockholm is hosting the exercises after applying for NATO membership last month.

The war games, dubbed Baltic Operations (BALTOPS 22), are based in Stockholm. BALTOPS 22 will primarily consist of naval operations and run from June 5-17. The drills will involve 45 ships and 75 aircraft. Sixteen nations will participate, including Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, the Netherlands, Norway, Poland, Sweden, Turkey, the United Kingdom, and the United States.

The annual war games are taking on increased significance as Helsinki and Stockholm recently submitted their applications to join NATO. The USS Kearsarge is in the Swedish capital city for the war games. According to Chairman of the Joint Chief, Gen. Mark Milley said, part of the ship’s mission is a show of force to Russia.

“I think the Kearsarge being here is a pretty strong statement,” Milley said. “This is a big exercise with 7000-8000 soldiers from 16 countries, two of which are not NATO members.”

Swedish Prime Minister Magdalena Andersson added, “This shows President Biden’s security assurances are followed by actions.”

Several NATO members gave security guarantees to Sweden and Finland as they go through the membership process. The security guarantees are meant to prevent a Russian attack before Stockholm and Helskinki receive protection under the alliance’s mutual defense pact.

Russia says it will not react to Finland and Sweden joining the North Atlantic alliance but warned against a military buildup in the Nordic counties.

Antti Pelttari, head of Finland’s intelligence service, confirmed Moscow had not targeted Helsinki with reprisals since it submitted its NATO application. “It has been rather quiet, and let’s hope it stays that way,” he said in an interview with Financial Times. “It’s a positive thing that nothing has happened.”

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS/

RUSSIA/UKRAINE

Kremlin Declares “Land Bridge” Complete From Western Russia To Donbas To Crimea

TUESDAY, JUN 07, 2022 – 12:20 PM

Russia’s military has declared that its desired strategic “land bridge” connecting Russian national territory with the Donbas and Crimea is complete, according to statements given to CNN senior national security correspondent Alex Marquardt. The Tuesday Russian military statement said that “roads and rail lines between western Russia and Crimea are operational,” which marks that “the land bridge is complete.”

“Conditions have been created for the resumption of full-fledged traffic between Russia, Donbas, Ukraine and Crimea on six railway sections,” Defense Minister Sergei Shoigu said. “Automobile communication has been opened from the territory of Russia along the mainland to Crimea.” Thus it appears the Kremlin is touting its own ‘mission accomplished’ moment, at least pertaining to the eastern and southern theaters of the war.

Starting in April, the defense ministry announced its “phase 2” plan for the invasion while pulling back in the north, and abandoning the fight outside the capital of Kiev and other cities deep in Ukrainian territory. It stated as its prime objective “control over southern Ukraine and Donbas” – where fighting has been heavily concentrated over the past two months.

Early last month in testimony before the Senate Armed Services Committee, US Director of National Intelligence Avril Haines listed the “land bridge” concept as now a chief goal of President Vladimir Putin and his generals. She said that as part of the Donbas campaign, he’s “determined to build a land bridge to Russian-controlled territory in Moldova,” the AFP reported of her public testimony at the time.

But US intelligence sees this as a strategic springboard for a Russian military advance on other parts of Ukraine, even beyond its borders: “We assess President Putin is preparing for prolonged conflict in Ukraine during which he still intends to achieve goals beyond the Donbas,” Haines said at the time.

And further: 

“We… see indications that the Russian military wants to extend the land bridge to Transnistria,” Haines said, referring to the Moscow-backed separatist region of Moldova along Ukraine’s southwest border.

If indeed the land bridge is complete, according to Defense Minister Shoigu’s latest claims, it’s now likely inevitable that Russia will soon assert full control over the Donbas. Already within the past days there’s been growing consensus that essentially all of the Luhansk province is under Russian control.

However, it remains to be seen and is entirely unclear at this point whether Russia has aims beyond Ukraine, into Transnistria, as US intelligence is predicting. This would mean the eventual extension of the land bridge across the whole south of Ukraine, including the vital port city Odessa

Below: the Land Bridge as it was shaping up by early March…

The final holdout flashpoint city of Severodonetsk has over the past week seen a steady Russian advance, but as street fighting rages local officials say the situation changes “every hour”.

Ukraine officials have also admitted the invading Russians far outnumber local troops defending the city:

“The situation is changing every hour, but at the same time there’s enough forces and resources to repel attacks,” said the mayor of Severodonetsk, Oleksandr Striuk.

“We have hope, we have faith in our armed forces, no one’s going to abandon” Severodonetsk, he added.

Just days ago, Moscow seemed close to taking the strategic industrial hub in the east but Ukrainian forces have managed to hold out.

“Our heroes are holding their positions in Severodonetsk. Fierce street fights continue in the city,” Ukrainian President Volodymyr Zelenskyy said in a video address late on Monday.

Conflicting reports suggest Ukrainian forces may have repelled the Russians in some sectors. Meanwhile the UK defense ministry has on Tuesday commented on the potential for Russian forces to achieve a major breakthrough based on establishing the connecting ‘land bridge’. Achieving victory in Severodonetsk will be key to Russian war aims, the UK defense ministry said.

“Russia will almost certainly need to achieve a breakthrough on at least one of these axes to translate tactical gains to operational level success and progress towards its political objective of controlling all of Donetsk Oblast,” a statement by the UK MOD said.

end

TURKEY/USA/KURDS/SYRIA

The Kurds in Syria are furious that Turkey wants to invade and destroy them.  So they are offering to work with the Assad Government to resist this invasion

(Ditz/Antiwar.com)

US-Backed Kurds Offer To Work With Assad Government To Resist Turkish Invasion

MONDAY, JUN 06, 2022 – 09:00 PM

Authored by Jason Ditz via AntiWar.com,

The most enduring US ally in the Syrian War, the Kurdish Syrian Democratic Forces (SDF) are very publicly interested in resisting the latest round of planned Turkish invasions of northern Syria, saying they are open to coordination with the Syrian government’s troops to do so.

Turkey has repeatedly invaded northern Syria and northern Iraq to have a run at Kurdish factions, declaring them “terrorists” in both. The operations in Syria aim at the SDF’s parent organization, the YPG.

The most recent threatened Turkish operation seeks to establish a 30 km “security zone” within Syria. This is roughly in line with past plans threatened, mostly with an eye toward propping up Turkish-backed rebels in the area.

Syria opposes such raids because that “zone” becomes rebel territory, and the SDF oppose it because it’s carved out of their territory. SDF leaders suggest the Syrians would particularly help if they used air defenses against the Turkish warplanes. According to Middle East Eye:

The Syrian Democratic Forces (SDF) would be “open” to coordinating with Syrian government troops to fend off any Turkish invasion of the north, the head of the US-backed militia has said. 

Mazloum Abdi also told Reuters on Sunday that Damascus should use its air defense systems against Turkish planes

The US-armed SDF are a formidable on the ground force, but were an auxiliary of the US in fighting ISIS, and envision the same role with Syria in resisting Turkey.

Turkey backed the rebels in Syria almost immediately at the beginning, envisioning the Sunni Arab-dominated rebels being more hostile to Kurdish autonomy, and leaving the YPG in a weakened position.

Ironically, Turkey’s pro-rebel position set Islamists up in north Syria, and when the US got involved, they backed the YPG in resisting those groups, leaving the YPG and the SDF as a stronger group than they likely were before the war began. Now, they may find themselves natural allies to Syria, and even further entrenched as an autonomous faction in northeast Syria.

Turkey, by contrast, has found its border far less stable for its involvement in the war, and its relationship with Syria broken. The rebels plainly aren’t going to win the war, and Turkey will have to deal with the Assad government they worked to undermine.

END

6//GLOBAL COVID ISSUES/VACCINE MANDATE

Biden CDC Pushes Masks Amid Elevated Monkeypox Threat… Then Quietly Removes Advice

TUESDAY, JUN 07, 2022 – 08:30 AM

Authored by Katabella Roberts via The Epoch Times,

The Centers for Disease Control and Prevention (CDC) on Monday raised its alert level for monkeypox to level 2 and recommended that people wear masks when traveling, before appearing to make a U-turn on the advice.

In an update, the government agency raised the alert level to 2, encouraging people to practice enhanced precaution measures such as avoiding contact with visibly sick people, regularly washing hands, and wearing a face covering.

“Cases of monkeypox have been reported in Europe, North America, South America, Africa, Asia, and Australia,” the CDC wrote in its alert.

Some cases were reported among men who have sex with men. Some cases were also reported in people who live in the same household as an infected person,” it added.

The health body on Monday cautioned travelers to avoid close contact with sick people, including those with skin or genital lesions, as well as with dead or live wild animals such as small rodents and monkeys.

Travelers were also urged to avoid eating preparing meat from wild game or using products such as creams and lotions derived from wild animals from Africa, where cases of monkeypox are mainly found.

“Avoid contact with contaminated materials used by sick people (such as clothing, bedding, or materials used in health care settings) or that came into contact with infected animals,” the health body said.

Finally, the CDC urged travelers to wear masks, noting that doing so “can help protect you from many diseases, including monkeypox.”

However, the advice regarding mask-wearing is no longer present on the CDC website as of June 7, while the rest of the advice for travelers remains in place.

The Epoch Times has contacted the CDC for comment.

Monkeypox is a rare virus believed to be transmitted to humans from animals and is endemic to Central and West Africa, typically places in close proximity to tropical rainforests.

It spreads from one person to another through close contact with bodily fluids, lesions, respiratory droplets, and contaminated materials.

Scientists say the virus can cause an array of symptoms including fever, body aches, swelling of the lymph nodes, fatigue, headaches, and a bumpy rash that often occurs one to three days after the fever begins before spreading to other parts of the body. The rash can last up to a month.

As of June 6, there have been 1,038 confirmed cases of monkeypox in 29 countries around the world tied to the current outbreak, of which 31 are in the United States, according to the CDC.

The first suspected case was reported on May 7 in an individual who traveled from the United Kingdom to Nigeria and subsequently returned to the United Kingdom.

Health officials have noted that a number of cases have been found among homosexual men, although the virus itself is not a sexually transmitted infection and can be caught by anyone.

Monkeypox is fatal in as many as 1 to 11 percent of people who become infected, although previous vaccination against smallpox, which is related to the monkeypox virus, may provide protection.

In May, pharmaceutical and biotechnology company Moderna announced it is testing potential vaccines against monkeypox in pre-clinical trials as part of its commitment to advancing programs by 2025 against pathogens that pose a threat to public health.

GLOBAL ISSUES/SUPPLY CHAINS

VACCINE INJURY

Vaccine Impact



Bill to let 12-Year-Olds Get Vaccine Without Parental Consent Could be Voted on in California Assembly This Week

June 6, 2022 6:28 pm

In California, children between the ages of 12 and 18 cannot go to the doctor without their parent’s consent. Children aren’t allowed to enroll themselves in school without a parent. Children can’t even sign up for the local soccer team without a parent. They can’t open a bank account without a parent. They cannot drive until age 16. Children can’t vote until age 18. They aren’t even allowed to administer cold medication to themselves at school. But one thing they can do without their parent’s consent, is decide to get a deadly HPV Gardasil vaccine, thanks to a bill signed into law by then Governor Jerry Brown back in 2011. A common side effect of the Gardasil vaccine is becoming infertile and never being able to bear children. This week, the California Assembly is set to vote on another bill that allows children as young as the age of 12 to make their own decision without their parents’ consent to receive a vaccine, this time the experimental COVID-19 shot that has already killed and maimed many thousands of children in the U.S. There have already been 37,301 cases of deaths and injuries for children between the ages of 12 and 18 following COVID-19 vaccines, which only covers one year since they were approved for 12 to 15-year-olds in May of 2021. About 12% of those cases in the United States have happened in the State of California, with 3,809 cases, with Texas a distant second with 2,039 cases reported in children between the ages of 12 and 18.

Read More…


Railroad Congestion in U.S. is a Deadly Catastrophe that is About to Affect Everyone with No Immediate Solutions in Sight

June 6, 2022 7:13 pm

As we watch the entire supply-chain in the United States begin to fail, and the catastrophic effects that will plunge this nation most likely into chaos and social unrest in the not-too-distant future, one only needs to observe what is happening with our railroad system to understand how truly gigantic, and horrifying, this situation is today. John Schmitter writing for RailState gives a good description of the current problem: “The recent Surface Transportation Board hearings have brought to light a long-existing issue in the rail industry: capacity. Railroads prioritize cutting costs and raising prices (with a focus on the operating ratio). They have less concern about capacity and service. Take this article about Union Pacific, for example. UP has been removing up to 3% of railroad-controlled cars from the network, in order to manage the current congestion. The number of cars on the UP system, however, remains on the rise. How can we conceptualize this? Say you’ve been going to your favorite grocery store and have noticed that over the past few months, the checkout lines have been long and the shelves have been empty. The problem? The store doesn’t have enough people to work the checkout lines, and the owners aren’t ordering more inventory because that would drive up inventory costs. Instead, they’re telling their customers to shop less frequently and to buy fewer things. Their solution is to limit the amount of time customers may spend in the store, and the amount of goods they may buy. How much business would you expect this grocery store to maintain? Zero. Competitors would add staff and increase the inventory, and you — looking for a better shopping experience — would be forced to take your loyalties elsewhere. Railroads have a monopoly, which means there’s no penalty for failure to provide enough capacity to handle even small, unanticipated increases in volume. Railroads will handle the business eventually, unless the customer loses the sale completely. And herein lies the issue: everyone else in the network is forced to suffer, thanks to these performance hindrances. Constrained capacity means that even a small, unexpected increase in demand will bring the network to a grinding halt. According to the railroads, there’s not enough time or money to add crew members or line capacity. Adding more crew members requires at least six months of training, so they may work safely and productively.” As a business owner myself with a 20-year history of importing high quality foods to the U.S., I can tell you that I have never seen anything like this…

Read More…

Michael Every//

Michael Every on the day’s most important topics

Rabo: Biden Is Talking Loudly And Carrying A Small Stick

TUESDAY, JUN 07, 2022 – 10:01 AM

By Michael Every of Rabobank

Not Transi-Tory

That was quite the Monday given there was no data to look to.

In the UK, PM BYO survived his no-confidence vote by 211 to 148, but meaning 40% of his Tory MPs did not back him. If you take out the front benchers obligated to vote for him, he didn’t even carry the majority. Just as opinion polls show the UK public wants rid of this government, but it’s still here, the Tory party wants rid of Johnson, but he’s still here – for now. However, he looks fatally wounded – “in office, but not in power.” On past form, he may well be gone within the year. Whether that can turn around the fortunes of the Tories in the next election remains to be seen. For now, more uncertainty, probably with dollops of populism to try to cover it up: what odds now a new crisis with the EU over sausage rolls?

In Israel, PM Bennett is also clinging on by his fingernails after the opposition passionately voted against a law they all passionately support, and so did some his own coalition: new elections or a new coalition there are also likely to usher in dollops of populism.

In markets, we saw a further push higher in bond yields: US 2s rose 7bp to 2.73%, 5s by 10bp to 3.03%, and 10s by 11bp to 3.04%. The 3% ceiling has been clearly breached again, and the curve is steepening. That may well have been helped by heavy invest-grade bond issuance ahead.

However, it’s also worth noting that commodity prices rose in tandem. Recall the repeated hypothesis here that higher bond yields, with a steeper tone, and higher commodity prices mean the Fed is behind the curve, not ahead of it. Indeed, US natural gas prices spiked to nearly $9, while WTI and Brent oil held at around $119: no sign of higher yields pushing down energy. Or food, despite reports Russia and Turkey may de-mine the Black Sea to allow a grain export corridor to run from Odessa: wheat futures rose over 5%, corn 2%, and soybeans 0.4%. Overall, the Bloomberg spot commodity index hit a new high.

There was more bad news for the “transitory” camp who, like equity bulls, tell you that because something is doing the opposite of what they said it would, it just means it must then reverse:  “it’s always time to buy stocks,” and “inflation always comes down.”

Larry Summers released a new paper finding a return to target core inflation will require “the same disinflation as achieved under Volcker.” Summers et al. argue that pre-1983, US shelter inflation used house prices and mortgage interest rates as inputs. Monetary policy thus mechanically affected inflation, due to the effect of the Fed Funds rate on mortgage rates. Yet in 1983, the BLS switched to owners’ equivalent rent (OER). Regular readers may recall that has been flagged here a few times of late, as I argued it would push CPI higher if rents went up as housing became less affordable. Summers, who I take it not a reader of mine, concurs.

The paper says since 1983 shelter CPI has become much less volatile and much more correlated with rent CPI. It then constructs a series that estimates what CPI inflation would have been if the BLS had used OER pre-1983, concluding, “housing will serve as a significant hindrance to rapid disinflation whereas it used to move the series lower…. The disinflation of the early 1980s achieved by Paul Volcker has served as the exemplum of the power of hawkish monetary policy. Our analysis reveals that current inflation, especially core inflation, is considerably closer to previous peaks than in the official series.”

Inflation is transitory if you strip out energy, food, commodities, and shelter. Similarly, speculation over BoJo resigning is transitory if you strip out the MPs who didn’t back him and the national opinion polls.

This implies more market volatility ahead as central banks try to square the circle of how to do what needs to be done, because markets, without blowing up things that aren’t allowed to be, like markets. Relatedly, there are three policy levers the market needs to keep an eye on, and each has three broad settings:

  • Monetary policy – (looser, same, tighter)
  • QE policy – (more, same, less/QT)
  • Fiscal policy – (looser, same, tighter)

It’s obvious what we are seeing in terms of monetary policy – rates are rising (with the RBA in the spotlight today). We know what we have been promised on QE – that it will stop in some places and be reversed in the US. The fiscal position varies by country, but is leaning from expansionary to contractionary, albeit interspersed with dollops of populist help to consumers.

The key point is that most in markets presume that of the 3*3*3 (27) possible combinations above, many are ‘impossible’. After all, fiscal and monetary policy should be coordinated, right? Rates and QE policy likewise. However, this is changing – and that is no surprise to cynics.

Does it make sense to tighten monetary policy and loosen fiscal policy? Logically, no. Yet we may well see that happen politically. It just means monetary policy needs to do even more.

Does it make sense to raise rates and do more QE? Logically, no. And yet that is about to happen politically. The ECB are set to start hiking on Thursday, with our ECB watchers favouring 25bp, but recognising the risk of a 50bp step. However, the Financial Times reports the ECB is to support a new bond-buying program to suppress the yield spread between its core and periphery. Indeed, it is quoted that many of the ECB’s hawks have accepted they will have to provide more support to the bond market in order to be able to raise rates(!)

Those neck-deep in ECB acronym-ony (and acrimony) may see this as sage, in the same way equity bulls do every bailout of stocks. Others may see it as up is down – and not of a transitory nature. Welcome to a China-style financial system of hypothecated capital flows. Next up: credit that can only be spent on certain categories of investment or goods, or only at home. Digital currencies will help with that kind of thing.

Of course, the US will probably end up doing something similar. If the Fed keeps hiking and higher Treasury yields mean there is not enough money to pay for the military, then it may do more QE to fund the fiscal deficit, while letting the private sector slow down. Or it may bail out certain stocks, which are the US equivalent of an Italy or a Greece. Politics wins again either way – it’s just whose that is the issue.

In short, it appears time for the traditional view that rates and QE co-trend to go out the window(?)

In which case, watch exchange rates. Countries that run current-account deficits while suppressing yields below market-clearing levels are not going to attract the capital they need. That means a lower exchange rate. Ask Japan, where the Yen is now trading at a two-decade low on some measures. Also note that Germany’s mighty trade surplus is shrivelling away under the pressure of soaring commodity prices. Imagine if a weaker Euro meant higher inflation, but that meant the ECB intervening more to suppress peripheral spreads. Is the US an exception because of the global role of the dollar, while it lasts, and because there is  a big portfolio difference between suppressing a key peripheral bond yield and pushing up the price of a key US stock?  

Meanwhile, for those rubbing their hands at an alternative ‘New World Order’, consider that what is being described above is how China already works(See what even a hard-commodity mining publication had to say about China, commodities, and MMT recently.) It just has a larger current account surplus due to a past lack of Western geostrategic focus/“because markets”-ery, which is wearing off, and capital controls. Take them away and see what happens.   

Those counting on ‘commodity-backed’ FX should also note ‘Traders in China rush to check metal stocks on pledging concerns, as questions are asked over whether “the metal they hold in Chinese warehouses really exists, as allegations of irregular financing trigger a widespread loss of confidence in the world’s largest aluminium market.” Nothing like this has ever happened before with China and metals. Ever. And it never will if we shift to a global commodity-backed trading system. Ever. That, as the LME is sued for $486m for its recent actions in the nickel market. You want things to be *really* safe? Go back to physical barter without leverage. Imagine what that implies for the economy and markets. Blockchain or blockhead-chain?

An article from the weekend links the above at the meta level – historian Niall Ferguson arguing the US and China need to make nice but won’t. The summary: “Dust Off That Dirty Word Détente and Engage With China: Joe Biden’s grand strategy is setting the US and Beijing on a collision course. It’s bad foreign policy and terrible domestic politics.”

Ferguson implies Biden should ‘do a Nixon’ and:

  1. End the trade war with China;
  2. Begin the process of ending the war in Ukraine with a little Chinese pressure on Putin; and
  3. Apply joint US-China pressure on the Arab oil producers to step up production in a serious way, instead of letting them play Washington and Beijing off against one another.

He then concludes, “I, too, would loathe to live in a world where China called the shots. But is Joe Biden’s deeply flawed grand strategy making such a world less likely? Or more? If the choice is between war over Taiwan and a decade of detente, I’ll take the dirty French word.” A few key points immediately spring to mind.

First, Ferguson’s argument is that President Biden is talking loudly and carrying a small stick rather than talking softly and carrying a big one, as Teddy Roosevelt advised. That’s not far off the mark, as we see from yesterday’s White House announcement freezing solar panel tariffs, which mostly originate from China’s Xinjiang, ahead of the June 21 start-date of US legislation that bans all imports from China’s Xinjiang unless firms can prove the goods are not made using forced labour.

Second, Ferguson suggests the talk needs to change, not the stick: Vegetius and many modern geostrategists argue it is the *stick* that needs up-sizing (as do US rates, relatedly).  

Third, Ferguson has been far more hawkish until now. It isn’t clear if this is a Ukraine- and inflation-driven cri de cœur, a D.C. trial balloon, or a reflection that the well-connected author has been spooked by something he has seen or been told: after all, he is specifically suggesting we are heading to war over Taiwan on the present path.

Steering towards that ‘unthinkable’ –as unthinkable as raising rates and doing more QE?– or away from it, implies huge shifts in fiscal, monetary, and trade policy; and in markets it implies huge shifts in rates, FX, and commodities. In short, it’s likely we get volatility to match what we have seen in 2022 to date – and which is not going to prove transitory,… or Tory.   

end

7. OIL ISSUES//ELECTRICITY ISSUES/USA

US National Gas Average Approaches $5 As “A Little Demand Destruction” Emerges

TUESDAY, JUN 07, 2022 – 11:00 AM

As American households are crushed under the weight of rapid inflation and sagging economic growth, the Biden administration has yet to cool energy prices. By the end of the week, if not next, the national average for gasoline at the pump could cross another milestone: $5 a gallon. 

As of Tuesday morning, gas prices at the pump climbed to a record $4.919, up 21% since mid-April of $4.07. The national average price for a gallon of gas last year was around $3. 

AAA data shows thirteen states, including California, Oregon, Washington, Nevada, Arizona, Illinois, Indiana, Michigan, New Jersey, Massachusetts, Maine, Alaska, and Hawaii, including the District of Colombia, averaged over $5 a gallon on Tuesday morning. 

On Monday, Andy Lipow, president of the consulting firm Lipow Oil Associate, told CNN that he expects the national average to breach the $5 mark within the next ten days. 

Meanwhile, one gas station in California is just pennies away from $10, which is about double the national average.

And based on the 3-2-1 crack spread, which measures the difference in price between a barrel of crude oil and its byproducts, prices at the pump are about to head even higher.

Also, East Coast (PADD 1) ending stocks are seasonally at the lowest levels in 15 years as supplies remain tight because of sluggish refining capacity amid the peak driving season.

With the national average for gasoline approaching $5, Wolf Street’s Wolf Richter has some good news: 

A little demand destruction for gasoline has occurred, but obviously not enough to make a dent into the price spikes. The EIA reported — based on barrels supplied by refiners, blenders, etc., and not by retail sales at gas stations — that gasoline consumption, at 8.88 million barrels per day (red line) through May 27 fell by 3.1% from the same period in 2021, and by 6.2% from the same period in 2019:

To put all this in context, despite the crowing of The White House about rising wages, those purchasing power of those dollars is becoming weaker and weaker. The average hourly wage in America now buys less than 7 gallons on regular gas – its lowest since June 2014 – and almost one third of what it was at its peak purchasing power in April 2020…

Biden’s attempts to keep prices down have failed… and so prices will likely rise further… As the old saw goes, ‘the cure for high prices is… high prices’ and so do not expect demand destruction (and market forces) to reduce gas prices until they are considerably higher. Given the weight of this concern amid America’s voting public, it bodes even more poorly for the Biden administration (who just enforced the EPA to push his green agenda amid no ‘green’ emergency) as his ratings push to record lows..

8 EMERGING MARKET& AUSTRALIA ISSUES

Australia////  NEW ZEALAND/ SOUTH AFRICA/BRAZIL/ARGENTINA/INDIA/PAKISTAN

Sri Lanka

Sri Lanka turns to Russia for cheap oil

(zerohedge)

Cash-Strapped Sri Lanka Turns To Russia To Quench Thirst For Oil

MONDAY, JUN 06, 2022 – 06:00 PM

A broke and extremely cash-strapped Sri Lanka has turned to Russia for cheap oil, as much of the western world shuns Moscow over its invasion of Ukraine while savvy eastern nations such as India and China take advantage of a bifurcated oil market to buy as much crude as they can at a price that is roughly $30 below spot.

Trapped in the worst economic crisis in its history, the South Asian country said last weekend that it would pay $72 million for 90,000 tons of Russian crude ordered via a Dubai-based company and docked at Colombo for weeks, the Nikkei reported. Sri Lanka’s first purchase of Russian oil since the outbreak of the war in Europe gave a new lease of life to a refinery in Sapugaskanda, just outside the commercial capital, which had been shut since March.

It also highlighted how the country’s woes have given Russia an opening. Sri Lanka has already kicked off discussions with Moscow about directly importing crude oil, although it is unclear where the funds for such shipments would come from (spoiler alert: China). Russia has yet to announce any credit line for its South Asian customer.

Sri Lanka needs $554 million to import oil for the month of June alone, according to Power and Energy Minister Kanchana Wijesekera.

Experts say that while Sri Lanka’s move to take Russian oil may raise eyebrows, the country has little room to be choosy about its trade partners as it suffers from a severe fuel shortage, daily power cuts and surging living costs. Furthermore, Russian oil continues to be traded at a steep discount to global prices.

Sure enough, Sergi Lanau, deputy chief economist at the Washington-based Institute of International Finance (IIF), said the decision to turn to Russia is mostly based on finding low prices in a desperate situation. “I do not think the government has much bandwidth at the moment to strategize on the geopolitical front,” he told Nikkei Asia.

George I. H. Cooke, a former diplomat in Sri Lanka’s foreign service, agreed the country is in a “tricky situation” and has no choice but to accept assistance from anyone willing to help.

Cooke also noted that ties with Russia are nothing new. “Sri Lanka has had a long-standing relationship with Russia going back to 1957 and this relationship has strengthened over years,” he said. “That aside, we also need to understand that Sri Lanka is facing a very big crisis and as a result of that, we cannot be picking and choosing who we are willing to deal with.”

Incidentally, the two countries are marking their 65th anniversary of relations this year. As of 2020, Sri Lanka and Russia’s bilateral trade stood at $391 million with Sri Lanka exporting products such as tea, knitted gloves and lingerie, while Russia exported mostly wheat, iron and asbestos.

In March this year, Sri Lanka was among the few countries to abstain from voting on a United Nations resolution condemning Russia for its war on Ukraine. Alan Keenan, senior consultant at the International Crisis Group, said that the U.S. and European Union and other governments working to isolate Russia will no doubt be displeased about the new dealings. But given their own strong desire to prevent a complete economic and social collapse in Sri Lanka, it seems unlikely that there will be any serious repercussions.

“The Sri Lankan government has long maintained close ties with Russia,” Keenan noted. “In the final years of the civil war [in Sri Lanka] and in the years following, Russia has offered important military and political support, including on the U.N. Security Council and Human Rights Council, where it helped protect Sri Lanka from accountability for its military’s brutal and criminal tactics. With both countries in crisis, it is unlikely this will change now.”

end

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

Euro/USA 1.0672 DOWN 0.0017 /EUROPE BOURSES //ALL RED

USA/ YEN 132.81   UP 0.637 /NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.2491 DOWN   0.0032

 Last night Shanghai COMPOSITE CLOSED UP 5.39 POINTS UP 0.17%

 Hang Sang CLOSED  DOWN 122.23 PTS OR 0.56%

AUSTRALIA CLOSED DOWN 1.54%    // EUROPEAN BOURSES ALL RED 

Trading from Europe and ASIA

I) EUROPEAN BOURSES ALL RED 

2/ CHINESE BOURSES / :Hang SANG CLOSED DOWN 122.23 PTS OR 0.56%   

/SHANGHAI CLOSED UP 5.39 PTS UP 0.17% 

Australia BOURSE CLOSED DOWN  1.54% 

(Nikkei (Japan) CLOSED  UP 28.06 OR 0.10%

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1848.30

silver:$22.05

USA dollar index early TUESDAY morning: 102.76  UP 31  CENT(S) from MONDAY’s close.

 TUESDAY MORNING NUMBERS ENDS

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And now your closing TUESDAY NUMBERS 1: 00 PM

Portuguese 10 year bond yield: 2.44%  DOWN 7  in basis point(s) yield

JAPANESE BOND YIELD: +0.238% DOWN 0     AND 0/10   BASIS POINTS /JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 2.44%// DOWN 6   in basis points yield 

ITALIAN 10 YR BOND YIELD 3.39  DOWN 3   points in basis points yield ./

GERMAN 10 YR BOND YIELD: FALLS TO +1.281%

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY  

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

Euro/USA 1.0696 UP  6    or 6 basis points

USA/Japan: 132.46 UP .285  OR YEN DOWN  29  basis points/

Great Britain/USA 1.2575 UP 0.0053 OR 53  BASIS POINTS

Canadian dollar UP .0031 OR 31 BASIS pts  to 1.2551

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The USA/Yuan,  CNY: closed    ON SHORE  (CLOSED ..DOWN 6.6701  

THE USA/YUAN OFFSHORE:    (YUAN CLOSED (DOWN)..6.6774

TURKISH LIRA:  16.59  EXTREMELY DANGEROUS LEVEL/DEATH WISH/HYPERINFLATION TO BEGIN.

the 10 yr Japanese bond yield  at +0.238

Your closing 10 yr US bond yield DOWN 7  IN basis points from MONDAY at  2.996% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic

 USA 30 yr bond yield   3.122 DOWN 7 in basis points 

Your closing USA dollar index, 102.41 UP 0   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 TUESDAY: 12:00 PM

London: CLOSED DOWN 9.29 PTS OR 0.12%

German Dax :  CLOSED DOWN 97.19  POINTS OR 0.66%

Paris CAC CLOSED DOWN 48.43 PTS OR 0.74% 

Spain IBEX CLOSED UP 5.20 OR 0.06%

Italian MIB: CLOSED DOWN 199.48 PTS OR  0.81%

WTI Oil price 119.34   12: EST

Brent Oil:  120.32   12:00 EST

USA /RUSSIAN ///   RUBLE FALLS TO:  61.24  DOWN 0.25        RUBLES/DOLLAR

GERMAN 10 YR BOND YIELD; +1.281

CLOSING NUMBERS: 4 PM

Euro vs USA: 1.0708 UP   .0019   OR  UP 19 BASIS POINTS

British Pound: 1.2592 UP .0068  or  68 basis pts

USA dollar vs Japanese Yen: 132.62 UP 0.441//YEN down 44 BASIS PTS

USA dollar vs Canadian dollar: 1.2525 DOWN 0057 (CDN dollar UP 57 basis pts)

West Texas intermediate oil: 120.28

Brent OIL:  121.07

USA 10 yr bond yield: 2.981 DOWN 6 points

USA 30 yr bond yield: 3.126  DOWN 7  pts

USA DOLLAR VS TURKISH LIRA: 16,75

USA DOLLAR VS RUSSIA///USA/ ROUBLE:  61.04 DOWN  .04/ ROUBLES (ROUBLE  DOWN .04  ROUBLES/USA

DOW JONES INDUSTRIAL AVERAGE: UP 264.36 PTS OR 0.80%

NASDAQ 100 UP 112.05 PTS OR 0.89%

VOLATILITY INDEX: 23.94 DOWN 1.13 PTS (4.51)%

GLD: 172.95 UP 1.13 PTS OR 0.66%

SLV/ 20.52 UP .15 PTS OR 0.74%

end)

USA trading day in Graph Form

Stocks & Bonds Spike As Growth/Stagflation Scares Soar

TUESDAY, JUN 07, 2022 – 04:01 PM

Target was trounced on its inventory “glut” debacle as the bullwhip effect is in full effect… but dip-buyers stepped in (or share-buyback-ers) and put some lipstick on that pig (a pig that is the canary in the coalmine – to mix metaphors – for the rest of the US economy, over-stuffed and under-consumed)

0930ET – the US equity market cash open – was once again an incredibly bullish event as the slow drip of overnight weakness was immediately flipped into a buying-panic that paused briefly around the European close and then re-acclerated to drag the S&P and Nasdaq up 1%, Small Caps +1.5%…

Today’s ramp dragged the S&P and Dow back to unchanged from the pre-payrolls level right before Friday’s plunge

The correlation regime between stocks and bonds has flipped once again with bond and stock prices rising together today as the impact of rate-locks (due to a heavy IG calendar) are shrugged off)…

Source: Bloomberg

Treasuries were bid across the curve today (except the short-end), erasing much of yesterday’s rate-lock surge in yields (2Y +1.5bps, 30Y -7bps)…

Source: Bloomberg

10Y rallied back below 3.00% today, finding support (in yields) at th epeak of the post-payrolls spike from Friday…

Source: Bloomberg

Today’s moves in bond-land flattened the yield curve dramatically…

Source: Bloomberg

Rate-hike expectations were very modestly lower today

Source: Bloomberg

The dollar reversed overnight gains as the US equity market opened and ended the day lower against its fiat peers…

Source: Bloomberg

It’s been a wild ride from crypto this week. Bitcoin ended the day only modestly lower but managed to scramble back from its death-free-fall overnight in Asia trading, back up near $31,500…

Source: Bloomberg

Gold rallied back above $1850 today…

Oil prices surged again with WTI topping $120 ahead of tonight’s API inventory data…

Are we near the end of this epic rally? With a blow-off-top sparking real demand destruction next?

https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=eyJ0ZndfcmVmc3JjX3Nlc3Npb24iOnsiYnVja2V0Ijoib2ZmIiwidmVyc2lvbiI6bnVsbH0sInRmd190d2VldF9yZXN1bHRfbWlncmF0aW9uXzEzOTc5Ijp7ImJ1Y2tldCI6InR3ZWV0X3Jlc3VsdCIsInZlcnNpb24iOm51bGx9LCJ0ZndfcmVkdWN0aXZlX2FjdGlvbnNfMTQ0NTgiOnsiYnVja2V0Ijoibm9fcmVwbHkiLCJ2ZXJzaW9uIjo0fSwidGZ3X3NlbnNpdGl2ZV9tZWRpYV9pbnRlcnN0aXRpYWxfMTM5NjMiOnsiYnVja2V0IjoiaW50ZXJzdGl0aWFsIiwidmVyc2lvbiI6bnVsbH0sInRmd19leHBlcmltZW50c19jb29raWVfZXhwaXJhdGlvbiI6eyJidWNrZXQiOjEyMDk2MDAsInZlcnNpb24iOm51bGx9fQ%3D%3D&frame=false&hideCard=false&hideThread=false&id=1534172799346122755&lang=en&origin=https%3A%2F%2Fwww.zerohedge.com%2Fmarkets%2Fstocks-bonds-spike-growthstagflation-scares-soar&sessionId=98fc1bde01582f7ecc57d48d75460b1d1ced44d5&siteScreenName=zerohedge&theme=light&widgetsVersion=b45a03c79d4c1%3A1654150928467&width=550px

Finally, today was a great day for buying stocks – The World Bank downgraded global economic growth and warned of staglfationary pressures building.. (ya think!)…

Source: Bloomberg

And The Atlanta Fed downgraded US economic growth to 0.9% and stagflationary threats are screaming…

Source: Bloomberg

As US financial conditions have eased in the last two weeks, we wonder – like Nomura’s Charlie McElligott – if The Fed will once again jawbone the aggressive inflation-fighting hawkishness and tighten conditions once again…

Get back to work Mr.Powell (though we are not exactly sure wtf you’re gonna do now!)

I) / EARLY MORNING TRADING/

II)USA data

Atlanta Fed Slashes Q2 GDP Again, Now Just 0.9% Away From Official Recession

TUESDAY, JUN 07, 2022 – 02:57 PM

Curious why stocks are soaring just days before the Fed is set to hike 50bps, and further tighten conditions when the first “QT maturity” shrinks the Fed’s balance sheet by some $15 billion next week? The answer comes courtesy of the Atlanta Fed which just warned that the US is less than 1% away from a recession.

After a week of relentlessly hawkish Fed speakers (all pronouncing the economy’s ‘underlying strength’, and all mercifully silent now that the Fed is in its blackout period ahead of next week’s 50bps rate hike), the continued erosion in economic data has prompted The Atlanta Fed to slash its forecast for Q2 GDP growth from +1.3% to 0.9+%, meaning the US is now less than 1% away from a technical recession (after Q1’s contraction).

According to the Atlanta Fed’s GDPNow model estimate for real GDP, growth in the second quarter of 2022 has been cut to just 0.9%, down from 1.3% on June 1, and down from 1.9% on May 27.

Yes, it is down 1% in ten days, and at this rate GDP will be negative in another ten days, officially triggering a recession.

As the AtlantaFed notes, “After recent releases from the US Bureau of Economic Analysis, the US Census Bureau, the US Bureau of Labor Statistics, and the Institute for Supply Management, the Atlanta Fed nowcasts of second-quarter real personal consumption expenditures growth and real gross private domestic investment growth decreased from 4.4 percent and -8.3 percent, respectively, to 3.7 percent and -8.5 percent, respectively. Also, the nowcast of the contribution of the change in real net exports to second-quarter real GDP growth increased from -0.25 percentage points to -0.13 percentage points.”

In short: the US consumer is getting tapped out, just as we have been warning repeatedly.

Which also fits with Jamie Dimon’s recent “downgrade” of the economy from “storm clouds” to “hurricane”… and also makes some sense given the recent collapse in macro data relative to expectations…

And longer-term, the trend towards stagflation could not be clearer…

And thus increasingly problematic for The Fed, as the jawboning is driving rate-hike expectations higher once again

Meaning The Fed is hiking rates into a recession.

END

Shocking consumer credit numbers with everyone maxing out their credit cards

(zerohedge)

Shocking Consumer Credit Numbers: Everyone Maxing Out Their Credit Card Ahead Of The Recession

TUESDAY, JUN 07, 2022 – 03:34 PM

While it is traditionally viewed as a B-grade economic indicator, the April consumer credit report from the Federal Reserve was another shocker especially after last month’s stunning surge in credit card debt which saw the biggest increase in revolving credit on record which is why we said that today’s G.19 print straight from the Fed would be just as important as Friday’s CPI print…

https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3JlZnNyY19zZXNzaW9uIjp7ImJ1Y2tldCI6Im9mZiIsInZlcnNpb24iOm51bGx9LCJ0Zndfc2Vuc2l0aXZlX21lZGlhX2ludGVyc3RpdGlhbF8xMzk2MyI6eyJidWNrZXQiOiJpbnRlcnN0aXRpYWwiLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3R3ZWV0X3Jlc3VsdF9taWdyYXRpb25fMTM5NzkiOnsiYnVja2V0IjoidHdlZXRfcmVzdWx0IiwidmVyc2lvbiI6bnVsbH19&frame=false&hideCard=false&hideThread=false&id=1534144804933799940&lang=en&origin=https%3A%2F%2Fwww.zerohedge.com%2Feconomics%2Fshocking-consumer-credit-numbers-everyone-maxing-out-their-credit-card-ahead-recession-0&partner=tweetdeck&sessionId=6d8d390dd4cc231b8f14232a405388e71898e126&siteScreenName=zerohedge&theme=light&widgetsVersion=b45a03c79d4c1%3A1654150928467&width=550px

… and sure enough it was, while again confirming what we have been saying for month: any excess savings accumulated by the US middle class are long gone, and in their place Americans have unleashed a credit-card fueled spending spree.

Here are the shocking numbers: in April one month after the jarring March print again came in more than double the $25 billion expected to $52.435 billion, in April consumer credit again exploded to a ridiculous $38.1 billion, again blowing away expectations of a $35 billion increase (and not much lower than last month’s downward revised $47.3 billion).

And while non-revolving credit (student and car loans) rose by a relatively pedestrian 21.1 billion (which was still the 6th highest on record)…

… the stunner for the third month in a row was revolving, or credit card debt, which remained shockingly high, rising by the second highest on record at $17.8 billion, and down from only the highest print on record, March’s downward revised $25.6 billion (from $31.4 billion)…

… and sending total revolving consumer credit back to new all time highs at just over $1.1 trillion, erasing all the post-covid credit card deleveraging just in time for those credit card APRs to start moving much higher, first slowly and then very fast.

As an aside, and while not at all surprising, both auto and student loans hit a new all time high at the end of the first quarter.

While this unprecedented rush to buy everything on credit at a time when there were no notable Hallmark holidays should not come as much of a surprise, after all we have repeatedly shown that for the middle class any “excess savings” are now gone, long gone with the personal savings rate plunging to the lowest since just before Lehman…

… the fact is that most economists – such as those at Goldman Sachs – had previously anticipated that continued spending of savings by consumers is what will keep the US economy levitating in 2022. Unfortunately, as the consumer credit numbers of the past three months demonstrate all too clearly, any savings that US middle class households may have stored away courtesy of stimmies, are long gone.

The implications are profound: any model that projected that US spending will be fueled by “savings” can now be trashed. And since this is most of them, the consequences are dire as they confirm – once again – that the Fed is tapering, QTing and hiking right into a consumer-driven recession which was not visible until new precisely because of all the credit-card fueled spending, which according to Deutsche Bank will begin in late 2023 and which according to Morgan Stanley can start in as little as 3 months. Today’s data suggests that Morgan Stanley is right.

END

END

IIB) USA COVID/VACCINE MANDATES

END.

iii)a.  USA economic stories

This does not look good: Target crashes again after cutting profit outlook for the 2nd time in 3 weeks…excess inventory!

Target Crashes After Cutting Profit Outlook For 2nd Time In Three Weeks Due To Excess Inventory

TUESDAY, JUN 07, 2022 – 07:23 AM

Just two weeks ago, Target dropped the most since 1987’s Black Monday after the retailer warned profits would come in well below expectation due to soaring inflation eating into profit margins and would also impact revenue growth. Fast forward to today when Target issued another profit warning, just as we expected now that we have entered the prime of guidance cut season …

… because the retailer will need to cancel orders or offer discounts to clear out unwanted goods, the latest sign of the sudden mismatch between supply and demand inside America’s stores.

In this morning’s profit warning, Target warned that operating profit will amount to just 2% of sales in the current quarter, well below its May 18 prediction that the gauge would be in a wide range around 5.3%. Target still sees operating margin rising to about 6% in the second half of the year, but that number will be cut too in time.

In addition, the company will offload excess inventory and adjust some prices “to address the impact of unusually high transportation and fuel costs.” Target is also seeking to get a handle on supply-chain disruptions by adding “incremental holding capacity near U.S. ports,” which will give it greater flexibility.

“We’ve had some additional time after earnings to really evaluate the overall operating environment,” said Target Chief Executive Brian Cornell in an interview with the WSJ. That includes watching consumer behavior as they face high rates of inflation, he said, and seeing many other retailers talk about high inventory levels during their earnings presentations. “We have to be decisive and get out in front of this to make sure this doesn’t linger through the back half of the year.”

“Excess inventory doesn’t usually age well,” Chief Financial Officer Michael Fiddelke told Bloomberg. “We want to make sure that we’re being aggressive to right-size our inventory now.” He said this would help improve shoppers’ experience while boosting value for shareholders.

Of course, none of this should be news to regular Zero Hedge readers because just three weeks ago we wrote Bullwhip Effect Ends With A Bang: Why Prices Are About To Fall Off A Cliff” in which we showed the dramatic surge in the inventory-to-sales ratio at General Merchandise retailers, and predicted that as they have no choice but to liquidate excess inventory, prices – and profit margins – are set to crater.

Big retailers benefited over the past two years from the pandemic rush to buy patio furniture, laptops and home décor, as shoppers were buoyed by savings and government stimulus checks. Now many of those same stores are grappling with a swift reversal of buying behavior with consumers spending less on goods in favor of services and necessities such as food and fuel.

The measures show Target’s struggle to adjust to rapid shifts in demand amid stubborn inflation that’s forced consumer spending into less-profitable staple goods and away from discretionary categories such as electronics and home products. That’s left Target and its big-box rivals with more merchandise that consumers don’t want, complicating their effort to maintain their market-share gains of the pandemic while keeping investors happy.

As Bloomberg adds, retailers have to account for many consumers’ sudden price sensitivity, while balancing their own surging operating costs from fuel, labor and other expenses. Meanwhile, the lessons of the pandemic, when shoppers hoarded goods, are still fresh, and companies are wary of being caught without enough merchandise to sell.

But holding on to larger quantities of products is expensive, and if they fail to move, markdowns further hurt profitability while benefiting bargain-hunting shoppers. Inventories have soared at retailers from Gap Inc. to Costco Wholesale Corp. Last week, Walmart Inc. said it would need “another couple quarters” to work through its bloated inventory. Given the industry overhang, Target decided since its earnings report to take “a decisive set of actions,” Fiddelke said.

Needless to say, the market was not happy, although it certainly was surprised despite our explicit warning that this was coming. On May 13, Target shares plunged the most since 1987 after the release of its first-quarter results, which included the more pessimistic profit outlook and an increase in product inventories. The following week, the stock sank to the lowest since September 2020 before recording meager gains since then. In all, Target has fallen 31% so far this year. And this morning, the stock is plunging another 10%,

Target was not alone as the market realize that we were right all along, and peer retailers such as Walmart and Costco all fell premarket after Target’ margin guidance cut. WMT was down as much as 4.3% ahead of the bell, COST -2.9%, while TGT shares sank as much as 10%, Kroger -1.3%, Macy’s -3%, and so on as traders realize that the US is about to be hit with a historic liquidation wave as retailers rush to dump tens of billions in excess inventory.

end 

iii b USA//inflation stories/log jams etc/

END

iv)swamp stories

King REPORT

The King Report June 7, 2022 Issue 6775Independent View of the News
Caixin’s May China General Services PMI rose to 41.4 from 36.2; 46 was expected. https://t.co/61Ac1mM33p
 
US Inflation Nearer 1980 Peak Than Thought, Summers Group Says
    Analysis shows June 1980 core CPI was 9.1%, not 13.6% (Due to changes in BLS methodology)
    Paper suggests more pain may be needed to stem inflation now
A group of economists including former Treasury Secretary Lawrence Summers recalculated historical readings for the consumer price index to apply modern-day spending patterns, especially for housing…
https://www.investing.com/news/economy/us-inflation-nearer-1980-peak-than-thought-summers-group-says-2833968
 
Current inflation is at or above 1980-level CPI and PPI if 1980 BLS methodology is employed.  Summers et al are trying to be slick by applying current BLS methodology to 1980 PPI readings to make current and past PPI look more benign than reality.
 
Biden to waive tariffs for 24 months on solar panels hit by probe  https://t.co/Hpc7N6m6jA
President Joe Biden will declare a 24-month tariff exemption on Monday for solar panels from four Southeast Asian nations after an investigation froze imports and stalled projects in the United States
 
@RNCResearch: (WH Press Sec) Karine Jean-Pierre can’t point to a reason Biden invoked the Defense Production Act for solar panel manufacturing: “What’s the real emergency in the solar industry?”
https://twitter.com/RNCResearch/status/1533899326824620035
 
The Big Guy is exploiting the Defense Production Act to circumvent a tariff investigation by his own administration into Chinese companies circumventing existing laws and dumping cheap solar products into the US.  But there is more!  At the same time, Joe’s handlers want to lift some tariffs on China!
 
Solar Firm Blasts Biden for ‘Interfering’ in Trade Case
    Auxin Solar petitioned Commerce Department to initiate probe
    Biden’s move ‘unprecedented and potentially illegal’: Auxin
https://www.bloomberg.com/news/articles/2022-06-06/us-solar-firm-blasts-biden-for-interfering-in-trade-case
 
Biden instructed the Commerce Dept. to examine the impact of lifting some of DJT’s China tariffs.
 
Some Biden advisors misguidedly believe this will reduce inflation – or they want to euchre Americans into believing that lifting the tariffs will reduce inflation.  Or is this a case of ‘10% for The Big Guy’?  The suspicious of corruption is difficult to ignore given the ample evidence.
 
Biden wants to get out more, seething that his standing is now worse than Trump’s
Morale inside 1600 Pennsylvania Ave. is plummeting amid growing fears that the parallels to Jimmy Carter, another first-term Democrat plagued by soaring prices and a foreign policy morass, will stick…
   The plan is to put Biden on the road to highlight progress being made, even incrementally…
https://t.co/4SvX5anwC4
 
There is a very good reason that The Big Guy’s handlers hid Joe as much as possible during the 2020 campaign, staffers prevent the media from quizzing Joe, The Big Guy has NOT had a press conference in four months, a staffer was dressed as the Easter Bunny and tasked with supervising Joe, and Biden flees to Delaware almost every weekend.  More Joe appearances mean more farce and bumbling.
 
If his handlers allow The Big Guy to get out and be The Big Guy, the scheme could end quickly.
 
The Big Guy’s June gaslighting gambit will be rebutted by consumers’ checkbook and experiences.
 
Most Americans (55%) Think We’re Already in A Recession (21% say ‘not in recession’) https://www.breitbart.com/economy/2022/06/06/most-americans-think-were-already-in-a-recession/
https://docs.cdn.yougov.com/o91vu7bpkr/econTabReport.pdf#page=22
 
@zerohedge: “The nightmare scenario we’ve all been hypothetically thinking about for years, if not decades, is here. Runaway German inflation at the same time as soaring Italian yields.” – Deutsche Bank
 
Musk Says Twitter Refusal on Spam Info Is Breach of Merger Pact
https://money.yahoo.com/video/elon-musk-alleges-twitter-breaching-140600861.html
 
Elon Musk threatens to back out of Twitter deal over bot estimates
Musk has amended an SEC filing to claim Twitter is committing a “material breach” of merger terms by allegedly refusing to disclose enough information about bot spam and fake account data he’s concerned Twitter is trying to hide the true scope of its bot problem…
https://finance.yahoo.com/news/elon-musk-twitter-bots-merger-deal-breach-141116883.html
 
AG Pax­ton Launch­es Inves­ti­ga­tion Against Twit­ter for Poten­tial­ly Deceiv­ing Texas Con­sumers, Texas Busi­ness­es Over Fake Bot Accounts
https://www.oag.state.tx.us/news/releases/ag-paxton-launches-investigation-against-twitter-potentially-deceiving-texas-consumers-texas
 
Someone decided to drive ESMs sharply higher during overnight trading, when the ESM market is at its thinnest.  ESMs peaked at 4159.00 at 8:49 ET.  The bulk of the rally occurred between 20:00 ET and 4:16 ET.  Amazon opened +3% due to its 20-1 split.
 
Team Joe has decided to make a concerted effort in June to gaslight Americans about the economy.  Voter attitudes tend to solidify in the summer and change very little by November barring a major event.  On Jun 8, 2018, Democrats had a 7.6-point lead in the generic ballot for the 2018 Midterm elections.  On November 5, 2018, the lead was 7.3%.  Barring an economic miracle, Dems will be decimated in November.  https://www.realclearpolitics.com/epolls/other/2018_generic_congressional_vote-6185.html
 
ESMs sank when the NYSE opened despite Amazon’s surge at the open.  As one would expect, traders eagerly bought the early dip after the NYSE open.  ESMs soared from 4138.75 at 9:48 ET to a new daily high of 4168.25 at 10:06 ET.  ESMs and stocks then went inert and traded in a tight range. 
 
When the close struck 11:00 ET, Old World traders knew it was time to execute their tactics for the beckoning European close.  Alas, there were few organic buyers or dopey traders to absorb Old World liquidation for the close.  ESMs tumbled to 4129.50 at 11:20 ET.
 
After Europe closed, ESMs rallied 15 handles by 11:45 ET.  They then cratered to 4110.25 at 12:30 ET.  ESMs then soared to 4140.00 at 14:00 ET.  Five minutes later, a decline commenced that took ESMs back to the NYSE session low of 4110.25.  The pre-last hour rally, on hope for the late manipulation, began on schedule.  After a 13-handle ESM bounce by 15:00 ET, ESMs and stocks went inert.  ESMs eased to a new NYSE low of 4107.25 at 15:20 ET.  ESMs bounced to 4126 at 15:50 ET but sank to 4117 at 15 ET.
 
USUs (September ‘U’ is now the front month for US debt futures) traded modestly higher during Asian trading and early European trading.  They commenced a decline at 3:41 ET that morphed into a tumble after the NYSE open.  USUs hit a bottom of 136 22/32, -1 14/32 at 11:12 ET.  The rebound rally was modest; USUs sank to a new session low of 136 17/32, -1 19/32 at 15:00 ET. 
 
The 10-year hit 3.043%.  The US 2-year note hit 2.73% on Monday.  This implies that the Fed is 200bps behind neutral.  Versus CPI, the Fed is 775bps behind the curve.
 
Energy futures rallied smartly when Asian trading commenced.  They methodically eased lower thereafter.  However, natural gas soared as much as 10% and settled +9.4%.
 
Apple opened sharply higher after CEO Cook said he would issue tons of announcements.
 
CNBC: Apple just announced iOS 16, the latest software for iPhones, with an updated lock screen and more (Update to message & IMessage, Safety Check, ICloud Family). https://cnb.cx/3MsNJPH
 
Apple reveals a major update to CarPlay, its in-dash software for iPhones. https://cnb.cx/3MsNJPH
 
Apple peaked near 11:00 ET and then sank until it turned negative at 12:30 ET.  A modest rally ensued.
 
U.S. House speaker Pelosi discloses trades in Apple and Microsoft (May 13 & 24)
https://www.reuters.com/markets/us/us-house-speaker-pelosi-discloses-trades-apple-microsoft-2022-06-06/?taid=629e3f7b7385bc0001a4c420
 
Positive aspects of previous session
Early US rally
Gasoline and oil declined
 
Negative aspects of previous session
ESMs and US stocks tumbled after the early US rally
Bonds got hammered
 
Ambiguous aspects of previous session
Is the late-May rebound rally over?
 
First Hour/Last Hour Action [S&P 500 Index]: 1st Hour from NYSE open: Up; Last Hour: Up
 
Pivot Point for S&P 500 Index [above/below indicates daily trend to traders]: 4133.13
Previous session High/Low4168.78; 4109.18
 
The Tom Cruise film (Top Gun: Maverickhas already taken in $549 million https://t.co/QPkiQhTwLS
 
Many critics panned Top Gun when it was released in the Great Eighties.  They complained that it was too patriotic and portrayed the military in too good of a light.  Of course, many critics eagerly lavish praise on films that portray the US military in negative light.  Another irritant to the hate-America first crowd was that Top Gun caused a surge in US military recruitment.  Reports say Top Gun Maverick has generated a 500% increase in US Navy recruitment. 
 
@JamesMelville: EU to exempt private and corporate jets from green aviation fuel tax. We are not all in this together. https://www.irishtimes.com/business/transport-and-tourism/corporate-jets-to-escape-eu-s-green-aviation-fuel-tax-1.4618545
 
@AlmanacTrader: Since 1950 June is the worst DJIA & S&P 500 months, 2nd worst for NASDAQ and Russell 2000… 2022 continues to track the seasonal trend of midterm election years, especially the two more ominous patterns of 1st term midterm years and the 2nd year of new Democratic presidents with late Q2 lows and a retest or lower low in October.  https://twitter.com/AlmanacTrader/status/1533932317345038338
 
@charliebilello: With 98% of companies reported, S&P 500 Q1 GAAP earnings are down 15% versus Q4 2021 and flat year-over-year.  https://twitter.com/charliebilello/status/1533917344522715140
 
Today – From Monday’s King Report: Traders want to play for rallies early in this week because May CPI is due on Friday.  Another positive factor for bulls: The Fed is in a blackout period ahead of its June 14-15 soiree.  There will be no hawkish Fed utterances until then.  Plus, there is no impact economic news scheduled for release today.  If bulls cannot foster a rally today…
 
The fact that ESMs and stocks peaked at 10:09 ET on conditioned trader buying and then relentlessly declined until a modest late manipulation appeared is bad news for bulls.  ESMs are -8.50 at 20:10 ET.
 
Expected economic data: April Trade Balance -$89.5B; April Consumer Credit +$35.0B
 
S&P 500 Index 50-day MA: 4241; 100-day MA: 4329; 150-day MA: 4445; 200-day MA: 4449
DJIA 50-day MA: 33,463; 100-day MA: 33,937; 150-day MA: 34,568; 200-day MA: 34,662
 
S&P 500 Index – Trender trading model and MACD for key time frames
MonthlyTrender and MACD are negative – a close above 4987.97 triggers a buy signal
WeeklyTrender and MACD are negative – a close above 4359.32 triggers a buy signal
Daily: Trender and MACD are positive – a close below 3989.19 triggers a sell signal
Hourly: Trender and MACD are negative – a close above 4163.86 triggers a buy signal
 
Packin’ heat: Nude Hunter Biden cavorts with hooker, illegal gun in latest mess for president
A naked Hunter casually waves around a handgun and even points it at the camera while partying with a prostitute in 2018, the video shows… The debauched images of Hunter Biden waving around the illegally obtained weapon comes amid a rash of mass shootings — and random gun violence in major cities…
   “Hunter is in a compromising position that will rock Washington, DC,” one source close to the matter told Radar… Biden also called for lawmakers to address the nation’s “mental health crisis.”…
https://nypost.com/2022/06/06/naked-hunter-biden-cavorts-with-hooker-and-illegal-gun-photos/
 
@BillFOXLA: A 16 y/o hit & run driver in a stolen car who ran over a mom & child in Venice (CA) was sentenced on Friday to 5-7 months in juvie camp. LA DA @GeorgeGascon office tells me this was an “appropriate resolution”, but I’ve learned he has a prior criminal history.  Per multiple law enforcement sources, the juvie was on probation, & violating it, at the time of this hit & run…
    Despite the juvie’s criminal history, sources in the LA DA’s office tell me that in accordance with his policies, Gascon’s admin didn’t charge the juvie w/ assault w/ a deadly weapon or attempted murder for the hit & run, which led to light juvie camp sentence.
    Gascon’s office told me @LASDHQ agreed with the lesser charges in the case. After @LACoSheriff
pushed back & said LASD had no involvement in the case or the “lightweight sentencing”, Gascon’s office admitted LASD wasn’t involved & told me they will “correct” their statement…
    Just spoke with the mother who was run over by this juvenile. She was unaware of his criminal history, or that he was on probation when the hit & run took place. She is furious about the light sentence, and the way this case was handled. Her new statement to @FoxNews:
https://twitter.com/BillFOXLA/status/1533624618413568001
 
Once again, there is clear and unambiguous evidence that Big Blue City prosecutors will not enforce or prosecute existing laws – but Dems and the MSM want us to believe that new laws are needed.
 
Media Now Dishonestly Classifying Gang Violence as ‘Mass Shootings’
https://townhall.com/tipsheet/katiepavlich/2022/06/06/media-now-dishonestly-classifying-gang-violence-as-mass-shootings-n2608273
 
CBS: “Red flag” laws work — but only if they are used correctly, data show
A CBS News review of court records in the states in which red flag laws have already been implemented shows wide disparities in the frequency of red-flag orders and usage of the law
https://www.cbsnews.com/news/red-flag-laws-states-implementation/
 
Homicides per 100,000 guns owned – Mexico 1268.25, USA 5.49
https://twitter.com/JackPosobiec/status/1533827888092430338
 
Local Uvalde citizens are posting commentary on social media that due to recent busts on the Cartel near Uvalde, the school might have been targeted because many border patrol agents’ children go there.
 
NYT: Many Border Patrol agents and officers with Customs and Border Protection, its parent agency, live in the Uvalde area, which is part of the 245-mile-long Del Rio Border Patrol sector. About 160 agents and officers work out of the Uvalde station, which is about an hour from the U.S. border with Mexico and has a traffic checkpoint…  https://www.nytimes.com/2022/05/28/us/politics/border-patrol-uvalde.html
 
Store where Texas school shooter got rifle was linked to cartel case
Previously part of an ammunition smuggling case involving the Mexican drug cartel, according to Immigration and Customs Enforcement…
https://nypost.com/2022/05/30/shop-where-texas-school-shooter-got-gun-was-linked-to-cartel-case/
 
Ex-DNI @RichardGrenell: Disaster on the world stage for @JoeBiden – Saudi Arabia, Israel and now Mexico all snub Biden within the last 24 hours alone. They all see what we see.
 
‘Disaster on the World Stage for Biden’… Suffers Embarrassing Snub from Global Leaders
On Monday, Mexico’s President Andres Manuel Lopez Obrador confirmed he will not attend the Summit of the Americas later this week… A foreign diplomat and two U.S. officials told NBC News that Biden’s visits to Saudi and Israel will not take place in June, as expected…
https://beckernews.com/disaster-on-the-world-stage-for-biden-u-s-president-suffers-embarrassing-snub-from-global-leaders-45255/
 
Gov. Ron DeSantis: “We believe that when parents send their kids to school, it’s for education, not for indoctrination.  We’re going to hold that line in Florida.” https://twitter.com/TPostMillennial/status/1533597695939682304
 
@johncardillo: Trump’s McCarthy endorsement drove yet another wedge between him and his base. More so than the Oz endorsement. If he… loses his base it will be because of death by 1000 paper cuts.
 
Just too many unforced errors, bad personnel calls, and endorsement decisions.
@kristina_wong: Former ambassador to US (and Trump impeachment witness) William Taylor says Ukraine should be able to use US-supplied weapons to hit Russian forces *inside* Russia.  Being reported in Ukrainian and Eastern European media.
    @ HansMahnmailto:basis…@benshapiro’s”>basis…@benshapiro’s Daily Wire has more followers and engagement, many times more than the New York Times or CNNThat is a problem for democracy.”
 
DeSantis spokeswoman @ChristinaPushaw: Democracy is when only the New York Times and CNN are allowed to be the arbiters of truth, and any dissent against the regime narrative — I mean, “disinformation” — must be censored. That is what Democracy means.
 
Anything that liberals dislike, threatens their ideology, or diminishes the media hegemony is a problem or threat to Democracy.  Like their incessant ‘racist’ labeling, ‘threat to Democracy’ is so overused that it has lost efficacy.
 
@ChadPergram: Fox has confirmed that the committee investigating last year’s riot at the Capitol has hired former ABC News President James Goldston to “produce” the slate of hearings scheduled for this month. Fox is told Goldston will have a hand in all of the hearings this month.  But Goldston will be particularly involved in the efforts by the committee to make its prime-time hearing Thursday and another one later this month “TV friendly.”…
 
J6 Committee Dems Hire TV Exec to Literally ‘Produce’ Hearings
https://www.zerohedge.com/political/j6-committee-dems-hire-tv-exec-literally-produce-hearings
 
@yashar: Here’s the letter (obtained by @megynkelly) that House Minority Leader Kevin McCarthy sent to ABC News President James Goldston about the Epstein investigation that the network quashed.
 
Texas State Rep to File Legislation Banning Drag Shows for Children
After shocking videos emerged over the weekend showing small children attending a drag show in Dallas… The scantily clad drag queens gyrated in front of the tots, and invited them to join them on stage. Disturbing video footage showed parents giving their children money to give the transvestites as they writhed in front of them
    The event was advertised as a “child friendly” drag show, although signs in the bar read “It’s not gonna lick itself” and “I licked it so it’s mine.”…
https://amgreatness.com/2022/06/06/texas-state-rep-to-file-legislation-banning-drag-shows-for-children/
 
The Sovietization of American Life – Victor David Hanson, Hoover Institute
The law is no longer blind and disinterested, but adjudicates… on the ideology of the accused. Eric Holder is held in contempt of Congress and smiles; Peter Navarro is held in contempt of Congress and is hauled off in cuffs and leg-irons. James Clapper and John Brennan lied under oath to Congress—and were rewarded with television contracts; Roger Stone did the same and a SWAT team showed up at his home. Andrew McCabe made false statements to federal investigators and was exempt. A set-up George Papadopoulos went to prison for a similar charge. So goes the new American commissariat…
     The common denominator in Joe Biden’s two years of colossal failures is Soviet-like edicts… Playing the role of Pravda, Biden and his team simply denied things were bad, relabeled failure as success, and attacked his predecessor and critics as various sorts of counterrevolutionaries.
    Biden rejected commonsense, bipartisan policies… he superimposed leftist dogma on every decision, whose ideological purity, not real-life consequences for millions, was considered the measure of success.
    There can be no expertise under Sovietization; everything and everyone serves ideology. Our military—especially its four-star generals, current and retired—parroted perceived ideologically correct thought. Repeating party lines about diversity, white supremacy, and climate change are far more relevant for career advancement than proof of prior effective military leadership in battle…
    Behind all our disasters there looms an ideology, a creed that ignores cause and effect in the real world—without a shred of concern for the damage done to those outside the nomenklatura.
https://amgreatness.com/2022/06/05/the-sovietization-of-american-life/
 
DeSantis campaign hits back at Soros-funded election ‘manipulation’ with ad buy on Hispanic radio network – The formation of the Latino Media Network was announced last week and is partially funded by an affiliate of George Soros’ investment group
     “Governor Ron DeSantis is taking [on] Soros on his own turf with a Spanish language ad buy on the Soros network, serving as a PSA to Hispanic Floridians to warn of the pro-socialism, radical agenda behind The Latino Media Network,” read a statement the DeSantis campaign provided…
https://www.foxnews.com/politics/desantis-campaign-soros-funded-election-manipulation-ad-buy-hispanic-radio-network
 
Musk dings Washington Post as newspaper grapples with in-fighting playing out in public… invoking the paper’s latest drama surrounding left-wing tech columnist Taylor Lorenz and her reporting… Felicia Sonmez lighting into Post colleague Dave Weigel on Friday for retweeting a joke that management called sexist, and her subsequent blasting of another Post reporter, Jose Del Real, who suggested that airing the laundry in public to embarrass a co-worker was a bad idea. Executive editor Sally Buzbee was forced to send a memo to the staff about treating one another with “respect and kindness.”  Lorenz already drew sharp criticism from the right for her reporting on the collapse of the Biden administration’s Disinformation Governance Board last month, which she blamed on a right-wing disinformation campaign, as well as her doxxing of the conservative woman behind the popular Libs of TikTok account… https://www.foxnews.com/media/elon-musk-slams-washington-post-christopher-rufo-super-bad
 
NY Post’s @LevineJonathan: At what point do Jeff Bezos/The Adults intervene here?
 
@realchrisrufo: Taylor Lorenz is the rule, not the exception, at the Washington Post
 
@AnnCoulter: There are still remote Himalayan villages we haven’t surveyed, and swaths of the Brazilian rainforest with tribes we’ve never seen. So, it would be premature to say Taylor Lorenz is the worst person on the planet.
 
@greg_price11: It’s 5:58 p.m. and there are still no posts yet today on any of Joe Biden’s social media accounts or a statement from the White House about the 78th anniversary of D-Day.  This would now be the second year in a row that America’s president snubbed the D-Day anniversary.

Greg Hunter interviewing 

See you WEDNESDAY

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