AUGUST 31//PARTIAL COMMENTARY FOR YOU TONIGHT//COMEX DATA//MORNING DATA ON FOREIGN EXCHANGE, GOLD/SILVER VALUES//ASIA STOCK EXCHANGES// CRIMINAL INVESTIGATION INTO PERTH MINT//COVID UPDATES//DR PAUL ALEXANDER//VACCINE INJURY//EUROPE’S HUGE PROBLEMS WITH ENERGY//CHINA’S RESCUE PLAN FALLS SHORT//

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Options expiry concludes today

GOLD;  $1714.90 down $10.20

SILVER: $18.08 down 36 cents

ACCESS MARKET: 

GOLD $

SILVER: $

Bitcoin morning price:  $20,305 DOWN 366

Bitcoin: afternoon price: $20,671 DOWN 1378

Platinum price 

Palladium price;

END

DONATE

EXCHANGE: COMEX

CONTRACT: SEPTEMBER 2022 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,723.200000000 USD
INTENT DATE: 08/30/2022 DELIVERY DATE: 09/01/2022
FIRM ORG FIRM NAME ISSUED STOPPED


072 C GOLDMAN 179
118 C MACQUARIE FUT 150
132 C SG AMERICAS 41
435 H SCOTIA CAPITAL 34
624 H BOFA SECURITIES 107
657 C MORGAN STANLEY 8
661 C JP MORGAN 171
690 C ABN AMRO 32
737 C ADVANTAGE 33 7
800 C MAREX SPEC 4
905 C ADM 42


TOTAL: 404 404
MONTH TO DATE: 404

JPMorgan stopped:   32/91

_____________________________________________________________________________________

GOLD: NUMBER OF NOTICES FILED FOR SEPT CONTRACT:  

404 NOTICES FOR 40,400 OZ //1.2566 TONNES

total notices so far: 40,400 contracts for 40,400 oz (1.2566 tonnes) 

SILVER NOTICES: 5,244 NOTICES FILED FOR 26,220,000 OZ/

 

total number of notices filed so far this month  1051 :  for 5,255,000  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 DOWN $10.20 

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//

BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 7.24 TONNES FROM THE GLD//

INVENTORY RESTS AT 973.37 TONNE

Silver//SLV

WITH NO SILVER AROUND AND SILVER DOWN $.44

AT THE SLV// ://BIG CHANGES IN SILVER INVENTORY AT THE SLV//: A WITHDRAWAL OF 3.087 MILLION OZ FROM THE SLV//

INVESTORS ARE SWITCHING SLV TO SPROTT’S PSLV

CLOSING INVENTORY: 465.573 MILLION OZ

Let us have a look at the data for today

SILVER//OUTLINE


SILVER COMEX OI ROSE BY  A HUGE SIZED 3355  CONTRACTS TO 138,747.   AND CLOSER TO  THE NEW RECORD OF 244,710, SET FEB 25/2020 AND THE HUGE GAIN IN OI WAS ACCOMPLISHED DESPITE OUR  $0.44 LOSS  IN SILVER PRICING AT THE COMEX ON TUESDAY.  OUR BANKERS WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL BY $0.44) BUT WERE  UNSUCCESSFUL IN KNOCKING OFF ANY SPEC SILVER LONGS AS WE HAD A GIGANTIC GAIN OF 6176 CONTRACTS ON OUR TWO EXCHANGES,   AND MINOR SPECULATOR LIQUIDATION.

WE  MUST HAVE HAD: 
I) MINOR  SPECULATOR SHORT LIQUIDATIONS ////CONTINUED BANKER OI COMEX ADDITIONS /. II)  WE ALSO HAD  SOME  REDDIT RAPTOR BUYING//.   iii)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS iiii) AN  INITIAL SILVER STANDING FOR COMEX SILVER MEASURING AT 29.380 MILLION OZ    / //  V)   HUGE SIZED COMEX OI GAIN///MINOR SPEC LIQUIDATION/)

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

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

TOTAL CONTACTS for 23 days, total 15,826  contracts:  79.130 million oz  OR 3.440 MILLION OZ PER DAY. (688 CONTRACTS PER DAY)

TOTAL EFP’S FOR THE MONTH SO FAR: 79.130  MILLION OZ

.

LAST 16 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 

APRIL: 114.52 MILLION OZ FINAL//LOW ISSUANCE

MAY: 105.635 MILLION OZ//

JUNE: 94.470 MILLION OZ

JULY : 87.110 MILLION OZ 

AUGUST: 79.130 MILLION OZ //FINAL

RESULT: WE HAD A HUGE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 3355 DESPITE OUR   $0.44 LOSS IN SILVER PRICING AT THE COMEX// TUESDAY.,.  THE CME NOTIFIED US THAT WE HAD A GIGANTIC SIZED EFP ISSUANCE  CONTRACTS: 2821 CONTRACTS ISSUED FOR SEPT AND 0 CONTRACTS ISSUED FOR ALL OTHER MONTHS) WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS    THE DOMINANT FEATURE TODAY: /SOME BANKER ADDITIONS A// MINOR SPEC SHORT  LIQUIDATIONS BUT STRONG BANKER ADDITIONS /// WE HAVE A GOOD INITIAL SILVER OZ STANDING FOR AUGUST. OF 29.380 MILLION  OZ  //  .. WE HAD AN ATMOSPHERIC SIZED GAIN OF 6176 OI CONTRACTS ON THE TWO EXCHANGES FOR 30.88 MILLION  OZ AS..THE SPECS STILL BEING SENT TO THE SLAUGHTER HOUSE.

 WE HAD 5244  NOTICE(S) FILED TODAY FOR  26,220,000 OZ

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

GOLD//OUTLINE

IN GOLD, THE COMEX OPEN INTEREST ROSE  BY A FAIR SIZED 1625 CONTRACTS  TO 459,474 AND CLOSER TO THE RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110. WE WILL PROBABLY SEE THE COMEX OI FALL TO AROUND 380,000 AS OUR SPECS GET ANNIHILATED.

THE DIFFERENTIAL FROM PRELIMINARY OI TO FINAL OI IN GOLD TODAY:–XXX   CONTRACTS.

.

THE FAIR SIZED  INCREASE  IN COMEX OI CAME DESPITE OUR STRONG FALL IN PRICE OF $12.00//COMEX GOLD TRADING/TUESDAY / WE MUST HAVE  HAD  ADDITIONAL SPECULATOR SHORT COVERINGS ACCOMPANYING OUR GOOD SIZED EXCHANGE FOR PHYSICAL ISSUANCE./. WE HAD ZERO LONG LIQUIDATION    //AND MINOR SPECULATOR SHORT COVERINGS//CONTINUED ADDITIONS TO OUR BANKER LONGS!! THE COMEX WILL BLOW UP AS THE SPECS CANNOT DELIVER GOLD TO OUR BANKER LONGS.

WE ALSO HAD A HUGE INITIAL STANDING IN GOLD TONNAGE FOR AUGUST AT 8.401 TONNES ON FIRST DAY NOTICE  

YET ALL OF..THIS HAPPENED DESPITE OUR FALL IN PRICE OF   $12.00 WITH RESPECT TO THURSDAY’S TRADING

WE HAD A STRONG SIZED GAIN OF 5087  OI CONTRACTS 15.822 PAPER TONNES) ON OUR TWO EXCHANGES..

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A GOOD SIZED 3462  CONTRACTS:

The NEW COMEX OI FOR THE GOLD COMPLEX RESTS AT 459,474

IN ESSENCE WE HAVE A STRONG  SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 5087 CONTRACTS  WITH 1625 CONTRACTS  INCREASED AT THE COMEX AND 3462 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN ON THE TWO EXCHANGES OF 6529 CONTRACTS OR 20.307 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES

WE HAD A GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (3462) ACCOMPANYING THE FAIR SIZED GAIN IN COMEX OI (1625): TOTAL GAIN IN THE TWO EXCHANGES 5087 CONTRACTS. WE NO DOUBT HAD 1) MINOR SPECULATOR SHORT COVERINGS// CONTINUED GOOD BANKER ADDITIONS//  ,2.) STRONG INITIAL STANDING AT THE GOLD COMEX FOR SEPT. AT 8.401 TONNES    3) ZERO LONG LIQUIDATION//// //.,4)   FAIR SIZED COMEX OPEN INTEREST GAIN 5) GOOD ISSUANCE OF EXCHANGE FOR PHYSICAL/

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2022 INCLUDING TODAY

AUGUST

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

61,593 CONTRACTS OR 6,159,300 OZ OR 191.58  TONNES 23 TRADING DAY(S) AND THUS AVERAGING: 2677 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 23  TRADING DAY(S) IN  TONNES: 191.58 TONNES

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

THUS EFP TRANSFERS REPRESENTS  191.58/3550 x 100% TONNES  5.40% 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: 238.13 TONNES  FINAL

JULY: 378.43 TONNES FINAL

AUGUST: 191.58 TONNES (//FINAL//DRAMATICALLY FALLING AGAIN)

SPREADING OPERATIONS

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

SPREADING LIQUIDATION HAS NOW COMMENCED   AS WE HEAD TOWARDS THE  NEW NON ACTIVE FRONT MONTH OF SEPT. 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 ACTIVE DELIVERY MONTH OF AUGUST HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF SEPT., 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 GIGANTIC SIZED 3355 CONTRACT OI TO 138,747 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 2821 CONTRACTS

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

SEPT 2821  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2821 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 3355  CONTRACTS AND ADD TO THE 2821 OI TRANSFERRED TO LONDON THROUGH EFP’S,

WE OBTAIN AN ATMOSPHERIC SIZED GAIN OF 6176   OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. 

THUS IN OUNCES, THE GAIN  ON THE TWO EXCHANGES 30.880 MILLION OZ

OCCURRED DESPITE OUR LOSS IN PRICE OF  $0.44

OUTLINE FOR TODAY’S COMMENTARY

1/COMEX GOLD AND SILVER REPORT

(report Harvey)

2 ) Gold/silver trading overnight Europe,

(Peter Schiff,

end

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

6. Commodity commentaries//

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING// TUESDAY  NIGHT

SHANGHAI CLOSED DOWN 25.08 PTS OR 0.78%   //Hang Sang CLOSED UP 5.36 OR 0.03%    /The Nikkei closed DOWN 104.05 OR % 0.31.          //Australia’s all ordinaires CLOSED DOWN 0.06%   /Chinese yuan (ONSHORE) closed UP AT 6.8960//OFFSHORE CHINESE YUAN UP 6.8956//    /Oil DOWN TO 88.92  dollars per barrel for WTI and BRENT AT 95.24/    / Stocks in Europe OPENED  ALL RED.        ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN  TRADING STRONGER AGAINST US DOLLAR/OFFSHORE STRONGER 

a)NORTH KOREA/SOUTH 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 ROSE  BY A FAIR SIZED 1625 CONTRACTS TO 459,474 AND CLOSER TO THE RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020). AND THIS COMEX INCREASE OCCURRED DESPITE OUR FALL OF $12.00  IN GOLD PRICING  TUESDAY’S COMEX TRADING. WE ALSO HAD A STRONG SIZED EFP (3462 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 MASSIVELY SHORT  AND NOW THEY ARE DESPERATELY TRYING TO COVER THEIR FOLLY.

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 IN THE NON  ACTIVE DELIVERY MONTH OF AUGUST..  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 3462 EFP CONTRACTS WERE ISSUED:  ;: ,  . 0 DEC :3462 & ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  3462 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 STRONG SIZED SIZED  TOTAL OF 5087  CONTRACTS IN THAT 3462 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE HAD A FAIR  SIZED  COMEX OI GAIN OF 1625  CONTRACTS..AND  THIS GAIN ON OUR TWO EXCHANGES HAPPENED DESPITE  OUR STRONG FALL IN PRICE OF GOLD $ 12.00.  WE  ARE NOW WITNESSING THE SPECULATORS WHO HAVE BEEN MASSIVELY SHORT TRYING DESPERATELY TO COVER WHILE THE BANKERS WHO ARE LONG CONTINUE TO ADD TO THEIR PURCHASES. THIS  WILL NOT END WELL FOR OUR SPECS.

// WE HAVE A STRONG AMOUNT OF GOLD TONNAGE STANDING SEPT   (8.401),

 HERE ARE THE AMOUNTS THAT STOOD FOR DELIVERY IN THE PRECEDING 12 MONTHS OF 2021-2022:

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: 74.933 TONNES FINAL

JULY 29.987 TONNES FINAL

AUGUST:104.979 TONNES//FINAL

SEPT:  8.401 TONNES

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $12.00) BUT WERE UNSUCCESSFUL IN KNOCKING OFF ANY  SPECULATOR LONGS AS WE HAD A STRONG SIZED TOTAL GAIN ON OUR TWO EXCHANGES //   COMMERCIAL LONGS ADDED TO THE POSITIONS, AND SPECULATOR SHORTS CONTINUED TO ADD TO THEIR POSITIONS//////  WE HAVE  REGISTERED A STRONG SIZED GAIN  OF 20.307 TONNES ON TOTAL OI FROM OUR TWO EXCHANGES, ACCOMPANYING OUR  GOLD TONNAGE STANDING FOR SEPT (8.401 TONNES)

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

NET GAIN ON THE TWO EXCHANGES 5087 CONTRACTS OR 508,700  OZ OR 15.822 TONNES

Estimated gold volume 101,420///  extremely poor/

final gold volumes/yesterday  187,676/extremely poor

INITIAL STANDINGS FOR AUGUST ’22 COMEX GOLD //AUGUST 31

GoldOunces
Withdrawals from Dealers Inventory in oznil oz
Withdrawals from Customer Inventory in oz4989.354  oz


Brinks
HSBC
Manfra


Deposit to the Dealer Inventory in oznil 
Deposits to the Customer Inventory, in oz4,469.651 oz
No of oz served (contracts) today404   notice(s)
40400  OZ
1.2566 TONNES
No of oz to be served (notices)2297 contracts 
229,700 oz
7.1446 TONNES
Total monthly oz gold served (contracts) so far this month40400 notices
40400 OZ
1.2566 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

total dealer deposit  0

total dealer deposit:  nil oz

No dealer withdrawals

Customer deposits: 1

i) Into Brinks: 4469.651 oz

total deposits 4469.651 oz oz

3 customer withdrawals:

i) Out of Brinks 32.15  oz  (one kilobar)

ii) Out of HSBC: 487.552 oz

iii) OUT OF MANFRA:  4469.651 oz

total:  4989.354  oz

total in tonnes: 0.1556 tonnes

Adjustments: dealer to customer //3

i) Brinks 8,419.312 oz

ii) JPM: 6,585.067 oz

iii) Manfra: 24,783.421 oz

CALCULATIONS FOR THE AMOUNT OF GOLD STANDING FOR AUGUST.

For the front month of SEPT we have an  oi of 2701 contracts having GAINED 29 contracts .

Thus by definition, the initial amount of gold standing for Sept is as follows:

2701  notices x 100 oz per notice = 270100 OZ

or

8.401 tonnes

October LOST 284 contracts DOWN to 38,927 

We had 404 notice(s) filed today for 40400 oz FOR THE SEPT. 2022 CONTRACT MONTH. 


Today, 0 notice(s) were issued from J.P.Morgan dealer account and  0 notices were issued from their client or customer account. The total of all issuance by all participants equate to 404 contract(s) of which 0   notices were stopped (received) by  j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by J.P.Morgan//customer account and 0 notice(s) received (stopped) by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the SEPT /2022. contract month, 

we take the total number of notices filed so far for the month (404) x 100 oz , to which we add the difference between the open interest for the front month of  (SEPT 2701 CONTRACTS ) minus the number of notices served upon today 404 x 100 oz per contract equals 270,100 OZ  OR 8.401 TONNES the number of TONNES standing in this  active month of AUGUST. 

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

No of notices filed so far (404) x 100 oz+   (2701)  OI for the front month minus the number of notices served upon today (404} x 100 oz} which equals 270,100 oz standing OR 8.401 TONNES in this NON active delivery month of SEPTEMBER.

TOTAL COMEX GOLD STANDING:  8.401 TONNES  (A GREAT STANDING FOR A SEPT (   NON ACTIVE) DELIVERY MONTH)

SOMEBODY IS AFTER A HUGE AMOUNT OF GOLD.  THE EFPS ARE NOW BEING USED TO TAKE GOLD FROM THE COMEX.  THUS THE AMOUNT OF GOLD STANDING FOR AUGUST WILL RISE EXPONENTIALLY.

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:  2,344,669.896 oz   72.92 tonnes 

TOTAL OF ALL GOLD ELIGIBLE AND REGISTERED:  28,385,818.612 OZ  

TOTAL REGISTERED GOLD: 13,684,523.529  OZ (425.63 tonnes)

TOTAL OF ALL ELIGIBLE GOLD: 14,701,295.083 OZ  

REGISTERED GOLD THAT CAN BE SERVED UPON: 11,333,985. OZ (REG GOLD- PLEDGED GOLD) 352.70 tonnes//rapidly declining 

END

SILVER/COMEX/AUGUST 31

SEPTEMBER CONTRACT MONTH:

SilverOunces
Withdrawals from Dealers InventoryNIL oz
Withdrawals from Customer Inventory572,369.660 oz
CNT

Brinks


 
Deposits to the Dealer Inventorynil OZ
Deposits to the Customer Inventory nil oz


 
No of oz served today (contracts)5244CONTRACT(S)
26,220,000   OZ)
No of oz to be served (notices)632 contracts 
(3,160,000 oz)
Total monthly oz silver served (contracts)5244 contracts
 26,220,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this monthNIL oz
Total accumulative withdrawal of silver from the Customer inventory this month

And now for the wild silver comex results


i)  0 dealer deposit

total dealer deposits:  nil    oz

i) We had 0 dealer withdrawal

total dealer withdrawals:  oz

We have  0  deposits into the customer account

total deposit:  nil   oz

JPMorgan has a total silver weight: 170.385 million oz/329.211 million =51.74% of comex 

 Comex withdrawals:2

i) Out of CNT:  568,507.760 oz

ii) Out of Brinks: 3861.900 oz

total: 572,369.660    oz

 adjustments:  1//dealer to customer//JPMorgan

238,958.530 oz

the silver comex is in stress!

TOTAL REGISTERED SILVER: 51.786 MILLION OZ

TOTAL REG + ELIG. 329.211 MILLION OZ

CALCULATION OF SILVER OZ STANDING FOR AUGUST

silver open interest data:

FRONT MONTH OF SEPT OI: 5876 CONTRACTS HAVING LOST 1626 CONTRACTS. 

THUS BY DEFINITION, THE INITIAL AMOUNT OF SILVER STANDING IN THIS ACTIVE MONTH OF SEPT. IS AS FOLLOWS:

5876 NOTICES  X 5000 OZ PER NOTICE =

29,380,000 OZ  (THIS IS A HUGE INITIAL STANDING FOR SILVER/SEPTEMBER)

OCTOBER GAINED 71 CONTRACTS TO STAND AT 716

 CONTRACTS.

 .

TOTAL NUMBER OF NOTICES FILED FOR TODAY: 5244 for  26,220,000 oz

Comex volumes:38,731// est. volume today//    poor

Comex volume: confirmed yesterday: 96,524 contracts ( good)

To calculate the number of silver ounces that will stand for delivery in SEPT we take the total number of notices filed for the month so far at  5244 x 5,000 oz = 26,220,000 oz 

to which we add the difference between the open interest for the front month of SEPT(5876) and the number of notices served upon today 5244  x (5000 oz) equals the number of ounces standing.

Thus the  standings for silver for the AUGUST./2022 contract month: 5,244 (notices served so far) x 5000 oz + OI for front month of SEPT (5876)  – number of notices served upon today (5244) x 5000 oz of silver standing for the SEPT contract month equates 29,380,000 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

AUGUST 31.WITH GOLD DOWN $10.20:BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 7.24 TONNES FROM THE GLD////INVENTORY RESTS AT 973.37 TONNES

AUGUST 30.WITH GOLD DOWN $12.00:BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.03 TONNES FROM THE GLD////INVENTORY RESTS AT 980.61 TONNES

AUGUST 29/WITH GOLD DOWN $.50 TODAY: BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.74 TONNES FORM THE GLD/////INVENTORY RESTS AT 982.64 TONNES

AUGUST 26/WITH GOLD DOWN $26.60; NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 984.38 TONNES

AUGUST 25/WITH GOLD UP $9.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 984.38 TONNES

AUGUST 24/WITH GOLD UP $.50 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.28 TONNES FROM THE GLD//INVENTORY RESTS AT 984.38 TONNES

AUGUST 23/WITH GOLD UP $12.25 TODAY; BIG CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.83 TONNES INTO THE GLD///INVENTORY RESTS AT: 987.66

AUGUST 22/WITH GOLD DOWN $14.00: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 985.83 TONNES

AUGUST 19/WITH GOLD DOWN $8.00 : NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 985.83 TONNES

AUGUST 18/WITH GOLD DOWN $5.25: GIGANTIC CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 6.78 TONNES FROM THE GLD////INVENTORY RESTS AT 985.83 TONNES

AUGUST 17/WITH GOLD DOWN $12.00: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.74 TONNES FROM THE GLD///INVENTORY RESTS AT 992.20 TONNES

AUGUST 16/WITH GOLD DOWN $7.85: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.03 TONNES FROM THE GLD////INVENTORY RESTS AT 993.94 TONNES

AUGUST 15/WITH GOLD DOWN $16.45: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.45 TONNES FROM THE GLD////INVENTORY RESTS AT 995.97 TONNES

AUGUST 12/WITH GOLD UP $7.65: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 995.97 TONNES

AUGUST 11/WITH GOLD DOWN $5.95: HUGE CHANGES IN GOLD INVENTORY AT THE GLD:A WITHDRAWAL OF 1.74 TONNES FROM THE GLD////INVENTORY RESTS AT 997.42 TONNES

AUGUST 10//WITH GOLD UP $2.45: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 996.16 TONNES

AUGUST 9/WITH GOLD UP $6.70: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 996.16 TONNES.

AUGUST 8/WITH GOLD UP $13.55: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.16 TONNES FORM THE GLD//INVENTORY RESTS AT 999.16 TONNES

AUGUST 5/WITH GOLD DOWN $14.25: SMALL CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .33 TONNES FROM THE GLD////INVENTORY RESTS AT 1000.32 TONNES

AUGUST 4 WITH GOLD UP $29.00 : BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.32 TONNES FROM THE GLD///INVENTORY REST AT 1000.65 TONNES

AUGUST 2/WITH GOLD UP $3.70; HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.90 TONNES FROM THE GLD//INVENTORY RESTS AT 1002.97 TONNES//

AUGUST 1/WITH GOLD UP $5.75: SMALL CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF .58 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1005.87 TONNES

JULY 29//WITH GOLD UP $12.50; NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1005.29 TONNES

JULY 28/WITH GOLD UP $31.25; NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1005.29 TONNES

JULY 27.//WITH GOLD UP $1.80: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1005.29 TONNES

JULY 26/WITH GOLD DOWN $1.60: NO CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .58 TONNES FROM THE GLD////INVENTORY RESTS AT 1005.29 TONNES

JULY 25/WITH GOLD DOWN $7.85: NO CHANGES IN GOLD INVENTORY AT THE GLD: ////INVENTORY RESTS AT 1005.87 TONNES

JULY 22/WITH GOLD UP $17.45: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1005.87 TONNES

JULY 21/WITH GOLD UP $11.40: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 7.101 TONNES FROM THE GLD////INVENTORY RESTS AT 1005.87 TONNES

JULY 20/WITH GOLD DOWN $8.80: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY REST AT 1009.06 TONNES

JULY 19/WITH GOLD DOWN $.35 :BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 5.22 TONNES FROM THE GLD//INVENTORY RESTS AT 1009.06 TONNES

GLD INVENTORY: 973.37 TONNES

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

AUGUST 31/WITH SILVER DOWN 36 CENTS TODAY: BIG CHANGES:A WITHDRAWAL OF 3.087 MILLION OZ FROM THE SLV. //INVENTORY RETS AT 465.573 MILLION OZ//

AUGUST 30/WITH SILVER DOWN 34 CENTS TODAY: BIG CHANGES:A WITHDRAWAL OF 1.478 MILLION OZ FROM THE SLV. //INVENTORY RETS AT 470.135 MILLION OZ//

AUGUST 29/WITH SILVER DOWN 7 CENTS TODAY: BIG CHANGES IN SILVER INVENTORY A THE SLV: A WITHDRAWAL OF 2.765 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 470.135 MILLION OZ//

AUGUST 26/WITH SILVER DOWN 39 CENTS : NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 472.900 MILLION OZ//

AUGUST 25/WITH SILVER UP 21 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.160 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 472.900 MILLION OZ//

AUGUST 24/WITH SILVER DOWN 12 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 4.424 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 475.066 MILLION OZ/

AUGUST 23/WITH SILVER UP 16 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 4.194 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 479.490 MILLION OZ//

AUGUST 22/WITH SILVER DOWN 17 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV/ INVENTORY RESTS AT 483.684 MILLION OZ

AUGUST 19/WITH SILVER DOWN 38 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.798 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 483.684 MILLION OZ.

AUGUST 18/WITH SILVER DOWN 27 CENTS TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 369,000 OZ INTO THE SLV////INVENTORY RESTS AT 485.482 MILLION OZ//

AUGUST 17/WITH SILVER DOWN 32 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.106 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 485.113 MILLION OZ//

AUGUST 16/WITH SILVER DOWN 22 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 486.219 MILLION OZ/

AUGUST 15/WITH SILVER DOWN 38 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.152 MILLION OZ INTO THE SLV/ INVENTORY RESTS AT 486.219 MILLION OZ//

AUGUST 12/WITH SILVER UP 34 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 485.067 MILLION OZ//

AUGUST 11/WITH SILVER DOWN 46 CENTS TODAY:SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 920, 000 OZ FORM THE SLV.//INVENTORY RESTS AT 485.067 MILLION OZ//

AUGUST 10/WITH SILVER UP 26 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 485.159 MILLION OZ//

AUGUST 9/WITH SILVER DOWN 25 CENTS TODAY: TWO CHANGES IN SILVER INVENTORY AT THE SLV: FIRST: A DEPOSIT OF 461,000 OZ INTO THE SLV AND THEN A WITHDRAWAL OF 1.014 MILLION OZ..//INVENTORY RESTS AT 485.159 MILLION OZ//

AUGUST 8/WITH SILVER UP 83 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 485.712 MILLION OZ//

AUGUST 5/WITH SILVER DOWN 28 CENTS:BIG CHANGES IN SILVER INVENTORY AT THE SLV:A WITHDRAWAL OF 922,000 OZ FROM THE SLV//INVENTORY RESTS AT 485.712 MILLION OZ//

AUGUST 4  WITH SILVER UP 21 CENTS TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 527,000 OZ FROM THE SLV////INVENTORY RESTS AT 486.634 MILLION OZ

AUGUST 2/WITH SILVER DOWN 21 CENTS TODAY; HUGE CHANGES IN SILVER INVENTORY AT THE SLV:A DEPOSIT OF 3.504 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 487.161 MILLION OZ//

AUGUST 1/WITH SILVER UP 17 CENTS TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE GLD: NO CHANGES IN SILVER INVENTORY AT THE SLV////INVENTORY RESTS AT 483.657 MILLION OZ//

JULY 29/WITH SILVER UP 30 CENTS TODAY: A SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 461,000 OZ FROM THE SLV..//INVENTORY RESTS AT 483.657 MILLION OZ/

JULY 28/WITH SILVER UP $1.24 TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 484.118 MILLION OZ/

JULY 27/.WITH SILVER UP 4 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL 11.479 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 484.118MILLION OZ//

JULY 26/WITH SILVER UP 16 CENTS: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.504 MILLION OZ FROM THE SLV//: //INVENTORY RESTS AT 495.597 MILLION OZ//

JULY 25/WITH SILVER DOWN 24 CENTS: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.383 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 499.101 MILLION OZ//

JULY 22/WITH SILVER DOWN 10 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 500.484 MILLION OZ//

JULY 21/WITH SILVER UP 5 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 3.19 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 500.484MILLION OZ/

JULY 20/WITH SILVER DOWN 2 CENTS TODAY: BIG CHANGES IN SILVER INVENTORY AT THE SLV:A WITHDRAWAL OF 8.253 MILLION OZ FORM THE SLV/INVENTORY RESTS AT 507.585 MILLION OZ//

JULY 19/WITH SILVER DOWN 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 515.838 MILLION OZ//

CLOSING INVENTORY 465.573 MILLION OZ//

PHYSICAL GOLD/SILVER STORIES

1.PETER SCHIFF

end

2. Lawrie Williams//Pam and Russ Martens/Jim Rickards/Mathew Piepenburg/Von Greyerz

end

GOLD/SILVER

END

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

 A super read..

Dan Oliver/Myrmikan

This is where we are heading:  The Fed’s rate increases according to Dan Oliver is meant to prevent commodity money

(Dan Oliver)

Myrmikan’s Dan Oliver: Fed’s rate increases may aim to prevent commodity money

Submitted by admin on Tue, 2022-08-30 14:46Section: Daily Dispatches

2:47p ET Tuesday, August 30, 2022

Dear Friend of GATA and Gold:

In his latest market analysis, Dan Oliver, founder and manager of Myrmikan Capital in New York, suspects that the Federal Reserve’s policy of raising interest rates is aimed at protecting the U.S. dollar by aborting the transition of the world monetary system to a commodity basis.

Oliver writes: “The United States will not willingly abandon the global reserve status of its currency, which maintains its global hegemony. It did not when Saddam Hussein proposed selling oil in terms other than the dollar, nor when Muammar Gaddafi proposed setting up a gold-backed pan-African currency

“American neocons publicly call for [Russian President Vladimir] Putin to share a similar fate, but the methods used against Iraq and Libya are too risky against a nuclear-armed Russia — the reason for aiding a proxy war to try to destabilize Russia without direct conflict.

“Another way to undermine the development of a competing, commodity-backed, BRICs currency is by targeting commodity prices. It is perhaps this political prerogative that is driving Fed policy, more than general management of the business cycle and inflation.”

Oliver’s analysis is headlined “The New Bancor” and it’s posted in PDF format at Myrmikan’s internet site here:

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

end

4. OTHER GOLD/SILVER COMMENTARIES

A very big story!

special thanks to John Adams for his work on this issue

(Financial Review Australia)

and a special thanks to John for providing the article to us:

Financial crimes regulator probes Perth Mint

The financial crimes regulator has launched an investigation into Perth Mint, Australia’s biggest gold and silver refiner, over what it has described as compliance concerns, and ordered the appointment of an external auditor under the Anti-Money Laundering and Counter-Terrorism Financing Act.

The AUSTRAC investigation into Gold Corporation, which trades as Perth Mint and is owned by the West Australian government, comes after a series of reports in The Australian Financial Review into a tainted gold scandal

AUSTRAC has tasked the external auditor with assessing Perth Mint’s compliance with the anti-money laundering and counter-terrorism financing (AML/CTF) laws and related matters.

AUSTRAC said it had identified compliance concerns following a period of engagement with Perth Mint, which is chaired by former Rio Tinto boss Sam Walsh.

The external auditor must report to AUSTRAC within 180 days of being appointed and will examine Gold Corporation’s compliance under the AML/CTF Act, the requirement to have an ongoing customer due diligence program, and suspicious matter reporting obligations.

In June 2020, the Financial Review reported the mint was buying up to $200 million of “conflict gold” annually from a convicted killer in Papua New Guinea, a breach of its global accreditation and internal policies. The series of reports raised other concerns about the mint’s actions.

AUSTRAC chief executive Nicole Rose said AML/CTF compliance requirements were in place to protect businesses, the financial system, and the Australian community from criminal threats.

“AUSTRAC does not hesitate to take action where a business that we regulate is failing to satisfy their responsibility to protect themselves and Australia’s financial system from criminal activity,” Ms Rose said.

“We will continue to work closely with Gold Corporation (Perth Mint) to address compliance concerns.”

AUSTRAC said the audit results would “assist Gold Corporation to comply with anti-money laundering obligations, and inform AUSTRAC whether any further regulatory action is required”.

Perth Mint chief executive Jason Waters said it was constantly identifying areas of improvement, including addressing historic practices that were no longer fit-for-purpose and updating the way it engaged with customers.

We support the regulator’s decision for the Perth Mint to appoint an external auditor as part of efforts to ensure that our AML/CTF program is robust and appropriate,” he said.

“We are confident our strong and focused program already underway at the Perth Mint will address concerns identified by AUSTRAC.”

Mr Waters, the former boss of the WA government-owned power provider Synergy, took the reins at the mint this year after the departure of Richard Hayes.

-END-

.

end

5.OTHER COMMODITIES:

COMMODITIES IN GENERAL/COAL

END

6.CRYPTOCURRENCIES

7. GOLD/ TRADING

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

ONSHORE YUAN: CLOSED UP 6.8969

OFFSHORE YUAN: 6.8956

HANG SENG CLOSED UP 5.36 PTS OR  0.03%

2. Nikkei closed DOWN 104.05 OR  0.37%

3. Europe stocks   CLOSED ALL RED 

USA dollar INDEX  DOWN TO  108.88/Euro FALLS TO 0.9998

3b Japan 10 YR bond yield: FALLS TO. +.221/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 138.71/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 ABOVE the important 120 barrier this morning

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

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. EIGHTY percent of Japanese budget financed with debt.

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

3h European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund UP TO +1.490%/Italian 10 Yr bond yield RISES to 3.78% /SPAIN 10 YR BOND YIELD RISES TO 2.68%…

3i Greek 10 year bond yield RISES TO 4.07//

3j Gold at $1711.05 silver at: 18.03  7 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3k USA vs Russian rouble;// Russian rouble UP 0  AND 19/100        roubles/dollar; ROUBLE AT 60.12//

3m oil into the 88 dollar handle for WTI and  95 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 138.71DESTROYING 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 9789– as the Swiss Franc is still rising against most currencies. Euro vs SF 0.98005well 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: 3.132  UP 2  BASIS PTS

USA 30 YR BOND YIELD: 3.250 UP 3 BASIS PTS

USA DOLLAR VS TURKISH LIRA: 18,17

Overnight:  Newsquawk and Zero hedge:

 FIRST, ZEROHEDGE

Futures Head For Another Monthly Drop, As Oil Slumps, Yields And Dollar Rise

WEDNESDAY, AUG 31, 2022 – 07:44 AM

After three days of steep declines, S&P futures traded between modest gains and losses as global markets headed for the third consecutive weekly decline and another monthly drop on concerns that aggressive central bank tightening will push the global economy into a hard recession. At 7:15am ET, futures were up 0.2% and Nasdaq futures rose 0.7%, after trading both higher and lower earlier in the session. The dollar rose, Treasury yields jumped after another record CPI print in Europe, while the bizarre oil slump extended.

In premarket trading, Bed Bath& Beyond plunged after the home-goods retailer filed a form to sell an unspecified number of shares.
HP also fell 6.8% after the company reported quarterly sales that missed estimates and cut its annual profit forecast as demand for personal computers and printers slowed. Analysts noted that the PC maker will need a couple of quarters to correct its inventory. Here are other notable premarket movers:

  • Robinhood (HOOD US) falls 2.3% as Barclays cut its rating to underweight from equal weight
  • ChargePoint (CHPT US) shares rose as much as 2.1% in US premarket trading, after the electric vehicle charging network operator’s second-quarter revenue came in ahead of estimates, with analysts positive on the company’s gross margin performance amid supply-chain woes
  • HP Enterprise (HPE US) narrowed its full-year adjusted earnings per share forecast and reported in-line revenue for the third quarter. Analysts were bracing for the worst, after Dell’s disappointing outlook last week. Shares fall 1% in premarket trading
  • PayPal shares rise 2.9% in premarket trading after Bank of America upgraded its rating on the payments stock to buy from neutral previously
  • Morgan Stanley resumes coverage of Welltower (WELL US) at overweight and a $90 PT with the broker bullish on a recovery for the US senior housing market

“What’s clear is that predicting this market is not clean cut,” Angeline Newman, a managing director at UBS Global Wealth Management, said on Bloomberg Television. “We are living in a world where conflicting economic signals are making the path of monetary policy very difficult to determine.”

Market bets on a shallower trajectory for Federal Reserve tightening are receding, raising the prospect of more losses for stocks and bonds in an already difficult year. Investors are scouring incoming data for clues on the policy path, with August US jobs figures on Friday the next key report.

European shares reversed earlier gains to trade at the lowest level in more than six weeks, after Euro-area inflation accelerated to another all-time high, strengthening the case for the European Central Bank to consider a jumbo interest-rate hike when it meets next week. ECB Governing Council member Joachim Nagel urged a “strong” reaction, hinting at a 75bps hike just as Europe braces for an energy disaster with winter coming. Paradoxically this pushed the EUR to session lows.

In Europe, the Stoxx 50 fell 0.7%, with the FTSE 100 lagging, dropping 1%. Energy and autos slump while utilities is the worst-performing sub-index in the European gauge on Wednesday, extending their selloff to a fourth session as investors fret over Russian gas supplies at the start of a three-day halt of the key Nord Stream pipeline. Slump is lead by Drax (-4.3%), National Grid (-4%), Italy’s Terna (-2.3%), Germany’s Uniper (-4%) and Fortum (-3%). Some renewables also take a hit, including Orsted (-2.4%) and Verbund (-1.4%). Citi says utilities had to put up more than EUR100b of additional collateral versus 2020 levels because of record levels of future power and gas prices. Here are the biggest European movers:

  • ASML rises as much as 3.4%. It is among the “most attractive names” in the current uncertain macro environment, UBS says in a note upgrading the semiconductor-equipment company to buy from neutral.
  • Stadler Rail shares climb as much as 6% after reporting mixed results, with 1H sales beating estimates and a strong order intake, offset by more cautious comments on margins and a negative currency impact, according to analysts.
  • CFE shares surge as much as 23% after the Belgian construction and development company’s 1H results, with Degroof raising its estimates.
  • Ackermans & van Haaren rises as much as 7.5% after KBC upgrades its rating on the industrial holding company to buy from hold following first-half results, which the broker describes as “resilient” in tough times.
  • Lundbergforetagen shares rise as much as 5.5%, the most since May, after DNB reiterated its buy recommendation for the Swedish real estate investment firm, while trimming its PT to SEK485 from SEK530.
  • Utilities are among the worst-performing sub-index in the European gauge on Wednesday, extending their selloff to a fourth session as investors fret over Russian gas supplies at the start of a three-day halt of the key Nord Stream pipeline.
  • European energy stocks underperform for a second day after oil erased initial gains on Wednesday to head for a third monthly decline as rate hikes by major central banks and China’s Covid Zero strategy increase the likelihood of a global economic slowdown.
  • Brunello Cucinelli shares fall as much as 7.2% after the Italian luxury fashion company reported 1H results; Deutsche Bank says the update is “largely as expected” with guidance appearing “relatively conservative.”

Europe’s weakness was sparked by the ongoing rout in oil, which headed for a third monthly drop – the longest losing run in more than two years – hampered by the likelihood of slower global growth, yet which as Goldman says is now the best asset to own having priced in a recession more than any other asset class. European natural gas advanced after a two-day slump, with traders weighing risks to Russian supplies against the continent’s drastic efforts to curb the energy crisis.

Earlier in the session, Asian equities climbed in a mixed day that saw tech shares advance but Japan’s bourses retreat as traders digested China’s weak economic data while technology stocks rebounded. BYD Co. plunged in Hong Kong after Warren Buffett’s Berkshire Hathaway Inc. trimmed its stake in the electric vehicle maker. The MSCI Asia Pacific Index erased an earlier loss to trade up as much as 0.6%. Chinese benchmarks underperformed the region after factory activity contracted on power shortages spurred by a historic drought. Stocks were also weak in Hong Kong as Warren Buffett’s sale of shares in BYD Co. fueled general risk-off sentiment, countered by advances in the city’s tech shares. Traders also weighed US job and consumer confidence numbers, which were seen backing the Federal Reserve’s rate-hike plans.

“The dented risk sentiment from tighter-for-longer central bank policies is likely to weigh on sentiment in the region,” Jun Rong Yeap, a market strategist at IG Asia Pte, wrote in a note. He added that further headwinds including Covid lockdowns may weigh on Chinese equities. Taiwanese stocks rose, even amid a potential escalation of cross-strait tensions, while South Korean shares also advanced on gains in tech names. Indian and Malaysian markets were closed for holidays.

Investors are also contending with mounting friction between Beijing and Taipei after Taiwanese soldiers fired shots to ward off civilian drones and evaluating the latest Chinese data, which indicated factory activity shrank for a second month. Power shortages, a property sector crisis and Covid outbreaks all took a toll.

In Japan, stock dropped amid concerns over the potential for Federal Reserve tightening and data that showed weak factory activity in China.  The Topix fell 0.3% to 1,963.16 as of the market close Tokyo time, while the Nikkei 225 declined 0.4% to 28,091.53. Sony Group Corp. contributed the most to the Topix’s decline, decreasing 1.7%. Out of 2,169 stocks in the index, 683 rose and 1,381 fell, while 105 were unchanged. “US stocks, which plummeted on the Jackson Hole meeting last week, have fallen further and Japan stocks are matching that,” said Kiyoshi Ishigane, a chief fund manager at Mitsubishi UFJ Kokusai Asset Management.

In Australia, the S&P/ASX 200 index fell 0.2% to close at at 6,986.80, weighed by losses in mining and energy shares.  Asia-Pacific energy-related stocks fell as oil headed for its third straight monthly decline, the longest losing run in more than two years, on prospects for slower global growth. In New Zealand, the S&P/NZX 50 index fell 0.4% to 11,601.10

In FX, the Bloomberg dollar spot index rose again, up 0.2%, as it reversed a loss as the greenback rebounded, with most Group-of-10 peers swinging to a loss in the European session. AUD and JPY are the strongest performers in G-10 FX, NOK and CHF underperform. The euro fell to a session low of $0.9974 as euro-area inflation accelerated to another all-time high of 9.1% from a year ago, exceeding the 9% median estimate in a Bloomberg survey. Norway’s krone plunged by 1% against the euro and even more versus the dollar after news that the nation’s central bank will ramp up its purchases of foreign currency to 3.5 billion kroner ($350 million) a day in September from 1.5 billion in August as it deposits energy revenue into the $1.2 trillion sovereign wealth fund. The pound neared the lowest since March 2020 against the greenback that was touched yesterday, yet options suggest a short-squeeze could be due. The Australian and New Zealand dollars held up well amid month-end demand after earlier gains in US stock futures following China PMI data. The yen was steady. Board member Junko Nakagawa said that the Bank of Japan’s forward guidance for interest rates isn’t necessarily directly linked with its Covid funding program.

In rates, Treasuries are off session lows as US trading gets under way Wednesday, selloff paced by gilts with UK yields higher by 9bp-13bp. US 2Y barely exceeded Tuesday’s multiyear high. US yields are higher by 3bp-5bp, 2- year rose as much as 5.3bp to 3.275%, Treasury 10-year yield adds 4bps to around 3.14%.  Curve spreads are little changed, inverted 5s30s around -5.7bp, near lowest level since mid June; month-end index rebalancing at 4pm New York time will extend the duration of Bloomberg Treasury index by an estimated 0.12 year. European bonds slide across the curve, led by gilts, after hotter-than-expected euro-area inflation data. Gilts 10-year yield is up 11 bps to 2.82%, while German 10-year yield rises 3.6bps to 1.55%. Peripheral spreads widen to Germany with 10y BTP/Bund adding 2.2bps to 233.4bps.

Bitcoin has managed to reclaim USD 20k after slipping to a USD 19.7k low, overall the crypto remains in fairly tight sub-1k parameters.

In commodities, crude futures extend declines. WTI drifts 2.6% lower to trade near $89, while Brent falls 3% to the $96 level. Base metals are mixed; LME tin falls 2.5% while LME nickel gains 1.4%. Spot gold falls roughly $10 to trade near $1,714/oz. Spot silver loses 1.5% near $18.

Looking to the day ahead now, data releases include the flash CPI reading for the Euro Area in August, as well as the country readings for France and Italy. On top of that, there’s the ADP’s new report of private payrolls for August and the MNI Chicago PMI for August. Finally, central bank speakers include the Fed’s Mester and Bostic.

Market Snapshot

  • S&P 500 futures little changed at 3,986.25
  • STOXX Europe 600 down 0.6% to 417.39
  • MXAP up 0.2% to 158.39
  • MXAPJ up 0.3% to 519.46
  • Nikkei down 0.4% to 28,091.53
  • Topix down 0.3% to 1,963.16
  • Hang Seng Index little changed at 19,954.39
  • Shanghai Composite down 0.8% to 3,202.14
  • Sensex up 2.7% to 59,537.07
  • Australia S&P/ASX 200 down 0.2% to 6,986.76
  • Kospi up 0.9% to 2,472.05
  • German 10Y yield little changed at 1.54%
  • Euro down 0.1% to $1.0003
  • Gold spot down 0.5% to $1,715.78
  • U.S. Dollar Index up 0.14% to 108.92

Top Overnight News from Bloomberg

  • Forget about a soft landing. Federal Reserve Chair Jerome Powell is now aiming for something much more painful for the economy to put an end to elevated inflation. The trouble is, even that may not be enough. It’s known to economists by the paradoxical name of a “growth recession.”
  • France said the nation’s natural gas storage will be full in about two weeks, enabling the country to ride out the coming winter even as Russia turns the screw on deliveries of the fuel
  • UK statisticians decided that a £400 ($466) government grant to help households with energy won’t lower headline inflation numbers, a move that will protect the returns of some bond holders but increase payments made by both the Treasury and consumers
  • Sweden’s Riksbank hopes to be able to avoid a recession as it is prepared to do what is necessary to bring soaring inflation back to the central bank’s 2% target, deputy governor Anna Breman said
  • The People’s Bank of China set stronger-than-expected yuan fixings for six sessions to Wednesday and people familiar with the matter said at least two local banks pushed back against the weakness when submitting data for the reference rate. Traders still expect it to weaken past the psychological 7 per dollar level, even if the moves slowed the decline
  • China’s retail activity flatlined in August with e-commerce demand especially weak, according to satellite data, suggesting that consumer caution due to the ongoing Covid Zero policy and elevated unemployment remain major drags on the world’s second-largest economy
  • Russia’s seaborne crude shipments to Asia have fallen by more than 500,000 barrels a day in the past three months, with flows to the region hitting their lowest levels since late March

A more detailed look at global markets courtesy of Newsquawk

Asia-Pacific stocks were mostly negative following the losses across global counterparts owing to recent hawkish central bank rhetoric and with geopolitical concerns stoked after Taiwan fired warning shots at a Chinese drone. ASX 200 was subdued by weakness in commodity-related stocks with the energy sector the worst hit after the recent slump in oil prices, while a surprise contraction in Construction Work added to the headwinds and feeds into next week’s GDP release. Nikkei 225 declined but held above 28k after encouraging Industrial Production and Retail Sales. Hang Seng and Shanghai Comp were pressured amid a heavy slate of earnings releases and with US regulators said to have selected a number of US-listed Chinese companies for audit inspections including Alibaba, while participants also reacted to the Chinese PMI data in which the headline Manufacturing PMI topped estimates but remained in contraction territory.

Top Asian News

  • Japanese PM Kishida said he has fully recovered from COVID-19 and returned to normal duty. Kishida added that they will begin administering Omicron variant targeted vaccines earlier than planned, while he announced to increase the daily upper limit of entrants to Japan to 50k on September 7th and will look into further loosening of border controls.
  • South Korean vice-Finance Minister says they received “positive signs” during talks with FTSE Russell, FX environment has not emerged as a hurdle in discussions. Possibility is high for S. Korea’s inclusion to the FTSE’s WGBI watch-list in September
  • Chinese NBS Manufacturing PMI (Aug) 49.4 vs. Exp. 49.2 (Prev. 49.0); Non-Manufacturing PMI (Aug) 52.6 vs Exp. 52.2 (Prev. 53.8) Chinese Composite PMI (Aug) 51.7 (Prev. 52.5)
  • Japanese Industrial Production Prelim. (Jul P) 1.0% vs. Exp. -0.5% (Prev. 9.2%); Retail Sales YY (Jul) 2.4% vs. Exp. 1.9% (Prev. 1.5%)
  • Australian Construction Work Done (Q2) -3.8% vs. Exp. 0.9% (Prev. -0.9%)

Initial upside in Europe faded as broader price action took another hawkish turn amid inflation data, Euro Stoxx 50 -1.0%. Stateside, futures are mixed around the unchanged mark, ES -0.2%, though are similarly well off best levels with data and Fed speak due.

Top European News

  • UK’s ONS rules that energy bill rebate does not directly affect inflation statistics directly; “concluded that payments under the scheme should be classified as a current transfer paid by central government to the households sector.” i.e. the payment is being treated as a fiscal transfer as opposed to a price adjustment.
  • UK government could reportedly fast-track nuclear power projects to help ease the energy crisis, according to The Telegraph.
  • UK government is considering caps on rent to protect social housing tenants as part of a wider effort to ease the soaring costs of living, according to FT.
  • Former UK Chancellor Sunak warned that Foreign Secretary Truss’s campaign promises could increase inflation and borrowing costs, according to FT.
  • German Economy Minister Habeck said they would reject the idea of ‘capping’ energy prices; Finance Minister Lindner says the hurdle to an excess profit tax is high (re. energy); Chancellor Scholz says the early steps on energy means we will get through the winter period, will take measures to ensure energy prices “do not go through the roof”.

FX

  • A session of gains for the DXY with upside spurred by haven bids, as the broader market sentiment deteriorated shortly after the European cash open.
  • EUR/USD sits as one of the laggards with minimal immediate reaction seen in wake of hotter-than-expected August flash CPI for the EZ, although the upside for the pair may be capped by Nord Stream 1 jitters.
  • The antipodeans are mixed as AUD leads the gains as the outperforming G10 peer on the back of better-than-expected Chinese official PMI metrics; Petro-currencies are softer as the slide in crude oil resumes.
  • The JPY remains somewhat resilient in the face of the USD strength, likely amid the risk aversion across the market.

Fixed Income

  • Core benchmarks experienced a fairly contained start to the session, though this proved to be shortlived and pronounced action occurred on inflation release.
  • Bunds remain sub-147.50, though off worst, as initial French-CPI induced upside was reversed following hot Italian and subsequent EZ-wide Flash August HICP; market pricing for 75bp remains just above 50%.
  • Gilts are the standout laggard as on the ONS treats the Energy Support as a fiscal transfer, thus Ofgem Energy adj. will be fully reflecting in CPI; Gilts sub-130 ticks in wake.
  • USTs are directionally downbeat but comparably contained in terms of magnitudes, ADP and Fed’s Bostic/Mester due.

Commodities

  • WTI and Brent futures resumed selling off in tandem with the broader risk-mood.
  • Dutch TTF futures are on a firmer footing today following yesterday’s near-10% slump.
  • Spot gold is pressured by the firmer Dollar and approaches USD 1,700/oz to the downside.
  • 3M LME copper has been extending on gains with a boost from the above-forecast Chinese PMI metrics, but the contract remains under USD 8,000/t.
  • OPEC+ JTC upgrades 2022 oil market surplus forecast by 100k BPD to 900k BPD, according to a report via Reuters; sees market surplus rising to 1.4mln BPD in November from 0.6mln BPD in October.
  • OPEC+ JTC report says rising energy costs “may lead to a more significant reduction in consumptions towards year-end”, via Reuters.
  • US Private Inventory Data (bbls): Crude +0.6mln (exp. -1.5mln), Cushing -0.6mln, Gasoline -3.4mln (exp. -1.2mln), Distillates -1.7mln (exp. -1.0mln).
  • Oman crude OSP calculated at USD 97.00bbl for October vs. USD 103.21bbl in September, according to DME data.

Central Banks

  • BoJ’s Nakagawa says the central bank decided to maintain easy policy bias in July, and hopes to discuss at the September meeting whether it should continue doing so based on data. Must remain vigilant to downward economic pressure from pandemic.
  • BoJ is to conduct fixed-rate purchase operations for the cheapest-to-deliver 357th JGB notes for an extended period of time as of September 1st.
  • ECB’s Rehn says the economic outlook has darkened, normalisation of monetary policy progressing consistently. Rates will increase in September, will be necessary to hike further at future gatherings.
  • Riksbank’s Bremen says it is of the utmost importance to defend the inflation target as anchor for price setting and wage formation; adds inflation is too high. Inflation outcomes have been higher than expected recently, inflation risks are on the upside. Does not rule out a 50bps or 75bps hike at the 20th September meeting.
  • Norges Bank Currency Purchases (Sep) NOK 3.5bln (prev. NOK 1.5bln)

US Event Calendar

  • 07:00: Aug. MBA Mortgage Applications -3.7%, prior -1.2%
  • 08:15: ADP resumes publication of jobs report with new methodology
  • 08:15: Aug. ADP Employment Change, est. 300,000
  • 09:45: Aug. MNI Chicago PMI, est. 52.1, prior 52.1

Central Banks

  • 08:00: Fed’s Mester Discusses Economic Outlook
  • 18:00: Dallas Fed Holds Event to Introduce New President Lorie Logan
  • 18:30: Fed’s Bostic speaks on role of fintech in financial inclusion

DB’s Henry Allen concludes the overnight wrap

Was back in the office yesterday after a two-week break but needed an extra day recovery before I started the EMR again as Monday was the twin’s 5th birthday. To say they were excited would be an understatement. More is to come as they have their birthday party and 30-40 kids coming round our house on Sunday. After another dry spell Sunday brings rain again apparently! We’re used to this adversity as the first day of our Cornwall holiday saw a dramatic storm and the first rain for 2-3 months. A few days of typically chilly, breezy, and slightly wet UK beach weather followed. In my second week off back home I played 5 rounds of golf so that was the proper holiday. My handicap is now the lowest it’s ever been so there’s life in the multiple operated on old dog yet! Back to the real world now though and not only has the world got darker since I’ve been off but so have work hours. I always take these two weeks off every year and it always marks a depressing reality that winter is coming. Before I go away it’s just about light when I get up. However, by the time I get back from holiday it’s firmly dark waking up for the EMR. It’ll be a good 7-8 months before I see light again on the early EMR shift.

The dark mirrors the mood in markets which has seen a rapid deterioration since Jackson Hole, with the S&P 500 shedding a further -1.10% yesterday to move back beneath the 4000 mark. The index is now -7.85% below its mid-August intra-day highs and -5.08% since last Thursday’s pre Jackson Hole close. We’re still +8.71% above the June lows though. Ironically, strong US data releases prompted the latest sell-off, as they showed that consumer confidence was more resilient and the labour market was tighter than expected. But in today’s high-inflation environment, good economic news is enabling the Fed to be even more aggressive on rate hikes, and the market developments yesterday were very much in keeping with that theme. We actually reached an important milestone yesterday too, as the futures-implied Fed funds rate for December ticked up +3.0bps to 3.73%, which surpasses the previous high of 3.72% seen back in June after the bumper CPI report for May came in. So for 2022 at least, markets are pricing in their most aggressive pace of hikes to date which makes a lot more sense than where we were a few weeks ago.

In terms of the specifics of those data releases, an important one was the JOLTS data, which showed that job openings unexpectedly rose to 11.239m in July (vs. 10.375m expected). That marked a break in the trend of 3 consecutive declines, and shows that the Fed still have significant work to do if they want to bring labour demand and labour supply back into balance. Another indicator we’ve been tracking is the number of job openings per unemployed worker. That also bounced back up to 1.98 in July, which is just shy of its record high of 1.99 in March. So even with 225bps of Fed hikes by the July meeting, that measure of labour market tightness has barely budged. Then we got the Conference Board’s consumer confidence data for August, which came in at a 3-month high of 103.2 (vs. 98.0 expected), with rises for both the expectations and the present situation indicators.

This positive news on the economy gave investors growing confidence that the Fed are set to keep hiking into 2023, and sent yields on 2yr Treasuries up +1.8bps to 3.44%. That’s their highest closing level since the GFC, and on an intraday basis they even hit 3.49% at one point. Longer-dated yields also increased, albeit to a lesser extent, with those on 10yr Treasuries flat. FOMC Vice Chair and New York Fed President Williams emphasised the point, saying that rates will need to stay in restrictive territory “for some time”, so the days of pricing rate cuts early next year are over for now. The fed funds futures curve currently has policy rates peaking around 3.90% in the second quarter of next year, with the first full -25bp cut from those highs not until November of next year, as of last night’s close.

The trend towards increasing hawkishness was echoed at the ECB as well yesterday, where the prospect of a 75bps move next week is being increasingly discussed by officials. In the last 24 hours alone, we heard from Estonia’s Muller, who said that “75 basis points should be among the options for September given that the inflation outlook has not improved”. Furthermore, Slovenia’s Vasle said that he favoured a hike “that could exceed 50 basis points”. Germany’s Nagel echoed the ECB chatter from last week, that they should not delay rate hikes just for fear of recession, instead arguing the call for earlier rate hikes to prevent later pain. Further, Pierre Wunsch of Belgium argued the current bout of inflation had structural roots, which called for a quick move to restrictive policy. While neither Nagel nor Wunsch explicitly endorsed a 75bp hike, their comments don’t push back on it.

So overall it’s clear that officials are contemplating a larger hike, and overnight index swaps continue to price a 75bps move as more likely than 50bps for the September decision, closing yesterday pricing +65.8bps worth of hiking for next week’s meeting. It’s set to be a big one!

We should get some additional clues on how fast the ECB might hike with the release of the flash CPI data for the Euro Area this morning. But there weren’t any big surprises in either direction from the country readings ahead of that yesterday. In Germany, the EU-harmonised reading rose to a fresh high of +8.8%, but that was as expected, and it was a similar story in Spain where the harmonised reading fell back to +10.3% as expected.

A complicating factor for the ECB relative to the Fed is the stagflationary impulse coming from the ongoing energy shock, where prices have soared to new records in the last week. However, the last 24 hours brought some further declines that built on Monday’s moves lower, with natural gas futures coming down -7.21% to €253 per megawatt-hour. German power prices for next year came down by an even bigger -21.05%, on top of the -22.84% decline on Monday, although even that -39.09% total decline hasn’t erased the previous week’s gains. One other thing to keep an eye out for from today will be the start of maintenance on the Nord Stream pipeline, which is set to last for 3 days if you take the statement at face value. But as with the shutdown in July, there are concerns that gas flows won’t resume again afterwards, so that’s definitely one to watch.

Oil futures took a big slide, with brent futures down -4.79% and WTI down -5.54%. The proximate cause appeared to be unsubstantiated rumours that the US and Iran had reached a deal to reinstate the nuclear deal. However, a US State Department spokesperson later denied the rumours, and we’ve already heard from OPEC+ that any supply increase from Iran would be offset by supply cuts among the cartel. So if oil prices stay around these levels, perhaps the market is pricing in more global demand slowdown than unmitigated supply expansion.

For sovereign bond yields, the more hawkish noises from the ECB outweighed the effect of falling energy prices yesterday, with the 2yr German yield up +6.1bps. Similarly to the US, the increases in yields were concentrated at the more policy-sensitive front end of the curve, with longer-dated yields seeing smaller moves, including those on 10yr bunds (+0.8bps), OATs (+0.7bps) and BTPs (+1.7bps).

On the equity side, the risk-off tone took the major indices lower on both sides of the Atlantic, with the S&P 500 (-1.10%) experiencing a 3rd consecutive decline. The more cyclical sectors led the moves lower, and the more interest-sensitive megacap tech stocks continued to struggle, with the FANG+ index down a further -2.04%. In Europe, the STOXX 600 was down -0.67% yesterday, although that decline was somewhat exaggerated by the fact that London equities were returning after Monday’s declines. Indeed, the DAX actually ended the day up +0.53%, although that was the exception as the CAC 40 (-0.19%) and the FTSE MIB (-0.08%) both posted modest declines.

The more negative mood of the last few days has continued into today’s Asian session, with the Nikkei (-0.40%), Hang Seng (-0.39%) and the Shanghai composite (-1.18%) all losing ground this morning despite earlier better-than-expected economic data from China and Japan. Starting with the former, both manufacturing (49.4 vs 49.2 expected) and non-manufacturing PMI (52.6 vs 52.3 expected) were ahead of estimates but the manufacturing gauge stayed in contraction territory. In Japan, we got strong beats for industrial production (+1.0% vs -0.5% expected, MoM) and retail sales (+0.8% vs +0.3% expected, MoM). US Treasury yields are up across the curve, with the 2y yield (+2.1bps) gains ahead of 10y ones (+0.9bps).

To the day ahead now, and data releases include the flash CPI reading for the Euro Area in August, as well as the country readings for France and Italy. On top of that, there’s German unemployment for August, Canada’s GDP for Q2, and in the US there’s the ADP’s report of private payrolls for August and the MNI Chicago PMI for August. Finally, central bank speakers include the Fed’s Mester and Bostic.

AND NOW NEWSQUAWK

Initial upside fades as hawkish debt action resumed post-EZ CPI/UK ONS – Newsquawk US Market Open

Newsquawk Logo

WEDNESDAY, AUG 31, 2022 – 06:40 AM

  • Initial upside faded as broader price action took another hawkish turn amid inflation data, Euro Stoxx 50 -1.0%
  • Stateside, futures are mixed around the unchanged mark, ES -0.1%, though are similarly well off best levels with data and Fed speak due.
  • DXY bid but shy of YTD peak, EUR lags despite HICP with peers generally under modest pressure ex-AUD
  • Core benchmarks experienced a fairly contained start to the session, though this proved to be shortlived and pronounced action occurred on inflation releases; Gilts lag post-ONS
  • WTI and Brent futures resumed selling off in tandem with the broader risk-mood, Dutch TTF bid after Tuesday’s pressure
  • OPEC+ JTC upgrades 2022 oil market surplus forecast by 100k BPD to 900k BPD, via Reuters citing a report
  • Looking ahead, highlights include Canadian GDP, US ADP & Chicago PMI, Speeches from Fed’s Mester & Bostic.

As of 11:15BST/06:15ET

For the full report and more content like this check out Newsquawk.

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LOOKING AHEAD

  • Canadian GDP, US ADP & Chicago PMI, Speeches from Fed’s Mester & Bostic.
  • Click here for the Week Ahead preview.

GEOPOLITICS

RUSSIA-UKRAINE

  • IAEA convoy has set off from Kyiv towards the Zaporizhzhia nuclear power plant, according to a witness cited by Reuters; subsequent updates indicate the mission should arrive on Thursday.
  • Kremlin spokesperson says there are “signals” about a resumption of New Start Treaty discussions with the US but there has not been any significant progress.
  • Nord Stream 1 physical flows at 119.9k kWh/H (prev. 115k kWh/H) between 00:00-10:00BST. Note, flows have been at 0 throughout the morning, given the commencement of three days of maintenance.
  • Russia remains committed to its gas supply commitments but cannot meet them due to sanctions, according to Ifax citing a Kremlin spokesperson.
  • German Network Regulator (on Nord Stream 1 maintenance) tells Reuters that the body cannot “technically understand” the new maintenance by Russia.

CHINA -TAIWAN

  • Taiwan’s Defence Ministry said China’s military continues high-intensity patrols near Taiwan, while it added that Taiwan will exercise the right to self-defence and counter-attack if PLA forces enter air and sea territory within 12 nautical miles of Taiwan or if any Chinese drones pose a threat to security and do not leave after warnings, according to Reuters.

EUROPEAN TRADE

CENTRAL BANKS

  • BoJ’s Nakagawa says the central bank decided to maintain easy policy bias in July, and hopes to discuss at the September meeting whether it should continue doing so based on data. Must remain vigilant to downward economic pressure from pandemic.
  • BoJ is to conduct fixed-rate purchase operations for the cheapest-to-deliver 357th JGB notes for an extended period of time as of September 1st.
  • ECB’s Rehn says the economic outlook has darkened, normalisation of monetary policy progressing consistently. Rates will increase in September, will be necessary to hike further at future gatherings.
  • Riksbank’s Bremen says it is of the utmost importance to defend the inflation target as anchor for price setting and wage formation; adds inflation is too high. Inflation outcomes have been higher than expected recently, inflation risks are on the upside. Does not rule out a 50bps or 75bps hike at the 20th September meeting.
  • Norges Bank Currency Purchases (Sep) NOK 3.5bln (prev. NOK 1.5bln)

EQUITIES

  • Initial upside faded as broader price action took another hawkish turn amid inflation data, Euro Stoxx 50 -1.0%.
  • Stateside, futures are mixed around the unchanged mark, ES -0.2%, though are similarly well off best levels with data and Fed speak due.
  • Click here for more detail.

FX

  • A session of gains for the DXY with upside spurred by haven bids, as the broader market sentiment deteriorated shortly after the European cash open.
  • EUR/USD sits as one of the laggards with minimal immediate reaction seen in wake of hotter-than-expected August flash CPI for the EZ, although the upside for the pair may be capped by Nord Stream 1 jitters.
  • The antipodeans are mixed as AUD leads the gains as the outperforming G10 peer on the back of better-than-expected Chinese official PMI metrics; Petro-currencies are softer as the slide in crude oil resumes.
  • The JPY remains somewhat resilient in the face of the USD strength, likely amid the risk aversion across the market.
  • Click herefor more detail.

Notable FX Expiries, NY Cut:

  • Click here for more detail.

FIXED INCOME

  • Core benchmarks experienced a fairly contained start to the session, though this proved to be shortlived and pronounced action occurred on inflation release.
  • Bunds remain sub-147.50, though off worst, as initial French-CPI induced upside was reversed following hot Italian and subsequent EZ-wide Flash August HICP; market pricing for 75bp remains just above 50%.
  • Gilts are the standout laggard as on the ONS treats the Energy Support as a fiscal transfer, thus Ofgem Energy adj. will be fully reflecting in CPI; Gilts sub-130 ticks in wake.
  • USTs are directionally downbeat but comparably contained in terms of magnitudes, ADP and Fed’s Bostic/Mester due.
  • Click here for more detail.

COMMODITIES

  • WTI and Brent futures resumed selling off in tandem with the broader risk-mood.
  • Dutch TTF futures are on a firmer footing today following yesterday’s near-10% slump.
  • Spot gold is pressured by the firmer Dollar and approaches USD 1,700/oz to the downside.
  • 3M LME copper has been extending on gains with a boost from the above-forecast Chinese PMI metrics, but the contract remains under USD 8,000/t.
  • OPEC+ JTC upgrades 2022 oil market surplus forecast by 100k BPD to 900k BPD, according to a report via Reuters; sees market surplus rising to 1.4mln BPD in November from 0.6mln BPD in October.
  • OPEC+ JTC report says rising energy costs “may lead to a more significant reduction in consumptions towards year-end”, via Reuters.
  • US Private Inventory Data (bbls): Crude +0.6mln (exp. -1.5mln), Cushing -0.6mln, Gasoline -3.4mln (exp. -1.2mln), Distillates -1.7mln (exp. -1.0mln).
  • Oman crude OSP calculated at USD 97.00bbl for October vs. USD 103.21bbl in September, according to DME data.
  • Click here for more detail.

NOTABLE HEADLINES

  • UK’s ONS rules that energy bill rebate does not directly affect inflation statistics directly; “concluded that payments under the scheme should be classified as a current transfer paid by central government to the households sector.” i.e. the payment is being treated as a fiscal transfer as opposed to a price adjustment.
  • UK government could reportedly fast-track nuclear power projects to help ease the energy crisis, according to The Telegraph.
  • UK government is considering caps on rent to protect social housing tenants as part of a wider effort to ease the soaring costs of living, according to FT.
  • Former UK Chancellor Sunak warned that Foreign Secretary Truss’s campaign promises could increase inflation and borrowing costs, according to FT.
  • German Economy Minister Habeck said they would reject the idea of ‘capping’ energy prices; Finance Minister Lindner says the hurdle to an excess profit tax is high (re. energy); Chancellor Scholz says the early steps on energy means we will get through the winter period, will take measures to ensure energy prices “do not go through the roof”.

NOTABLE DATA

  • EU HICP Flash YY (Aug) 9.1% vs. Exp. 9.0% (Prev. 8.9%); X F&E Flash YY (Aug) 5.5% vs. Exp. 5.1% (Prev. 5.1%)
  • X F,E,A&T Flash YY (Aug) 4.3% vs. Exp. 4.1% (Prev. 4.0%)
  • French CPI (EU Norm) Prelim YY (Aug) 6.5% vs. Exp. 6.7% (Prev. 6.8%); Italian CPI (EU Norm) Prelim YY (Aug) 9.0% vs. Exp. 8.3% (Prev. 8.4%)

NOTABLE US HEADLINES

  • White House Press Secretary said the White House expects jobs numbers to cool a bit.
  • US President Biden approved the Mississippi emergency declaration amid the water crisis and ordered federal assistance to supplement state response efforts, according to the White House.
  • California ISO said excessive heat beginning on Wednesday will stress the energy grid and consumer conservation is likely needed in the weekend to avert power outages, according to Reuters.
  • Click here for the US Early Morning Note.

CRYPTO

  • Bitcoin has managed to reclaim USD 20k after slipping to a USD 19.7k low, overall the crypto remains in fairly tight sub-1k parameters.

APAC TRADE

  • APAC stocks were mostly negative following the losses across global counterparts owing to recent hawkish central bank rhetoric and with geopolitical concerns stoked after Taiwan fired warning shots at a Chinese drone.
  • ASX 200 was subdued by weakness in commodity-related stocks with the energy sector the worst hit after the recent slump in oil prices, while a surprise contraction in Construction Work added to the headwinds and feeds into next week’s GDP release.
  • Nikkei 225 declined but held above 28k after encouraging Industrial Production and Retail Sales.
  • Hang Seng and Shanghai Comp were pressured amid a heavy slate of earnings releases and with US regulators said to have selected a number of US-listed Chinese companies for audit inspections including Alibaba, while participants also reacted to the Chinese PMI data in which the headline Manufacturing PMI topped estimates but remained in contraction territory.

NOTABLE APAC HEADLINES

  • Japanese PM Kishida said he has fully recovered from COVID-19 and returned to normal duty. Kishida added that they will begin administering Omicron variant targeted vaccines earlier than planned, while he announced to increase the daily upper limit of entrants to Japan to 50k on September 7th and will look into further loosening of border controls.
  • South Korean vice-Finance Minister says they received “positive signs” during talks with FTSE Russell, FX environment has not emerged as a hurdle in discussions. Possibility is high for S. Korea’s inclusion to the FTSE’s WGBI watch-list in September.

DATA RECAP

  • Chinese NBS Manufacturing PMI (Aug) 49.4 vs. Exp. 49.2 (Prev. 49.0); Non-Manufacturing PMI (Aug) 52.6 vs Exp. 52.2 (Prev. 53.8)
  • Chinese Composite PMI (Aug) 51.7 (Prev. 52.5)
  • Japanese Industrial Production Prelim. (Jul P) 1.0% vs. Exp. -0.5% (Prev. 9.2%); Retail Sales YY (Jul) 2.4% vs. Exp. 1.9% (Prev. 1.5%)

i)WEDNESDAY MORNING// TUESDAY  NIGHT

SHANGHAI CLOSED DOWN 25.08 PTS OR 0.78%   //Hang Sang CLOSED UP 5.36 OR 0.03%    /The Nikkei closed DOWN 104.05 OR % 0.31.          //Australia’s all ordinaires CLOSED DOWN 0.06%   /Chinese yuan (ONSHORE) closed UP AT 6.8960//OFFSHORE CHINESE YUAN UP 6.8956//    /Oil DOWN TO 88.92  dollars per barrel for WTI and BRENT AT 95.24/    / Stocks in Europe OPENED  ALL RED.        ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN  TRADING STRONGER AGAINST US DOLLAR/OFFSHORE STRONGER 

3 a./NORTH KOREA/ SOUTH KOREA/

///NORTH KOREA/SOUTH KOREA/

3B JAPAN

end

3c CHINA

CHINA/USA

This is interesting:  China is threatening to destroy Elon Musk’s starlink, an extraordinary threat for a state to make against private foreign enterprise.

China is becoming increasingly warlike

(Bergman/Gatestone)

China Threatens To Destroy Elon Musk’s Starlink

TUESDAY, AUG 30, 2022 – 08:05 PM

Authored by Judith Bergman via The Gatestone Institute,

Chinese military researchers recently called for the destruction of Elon Musk’s Starlink satellites, an extraordinary threat for a state to make against a private foreign enterprise.

In December 2021, China filed a complaint with the United Nations, claiming that two of Musk’s Starlink satellites had nearly collided with the Tianhe module of its Tiangong Space Station — in April and October of 2021– and that Chinese astronauts had been forced to maneuver the module of the station to avoid the collision. Starlink is part of Elon Musk’s SpaceX and the satellites are part of a plan to make internet coverage from the satellites available worldwide, with the goal of launching nearly 12,000 Starlink satellites into low Earth orbit.

Space is becoming crowded and risks of collision — whether with satellites or space debris — are not new. Tellingly, China was among the first to help create much of that debris: In January 2007, China tested its first successful anti-satellite missile (ASAT), destroying one of its own inactive weather satellites and creating one of the world’s largest space debris incidents. That space debris is still floating around in space, causing collision risks every day.

The United States rejected China’s claims that the Starlink satellites had endangered China’s space station. The US stated that if there had been a “significant probability of collision” with China’s space station, the U.S. would have given notice to China ahead of time. “Because the activities did not meet the threshold of established emergency collision criteria, emergency notifications were not warranted in either case.”

China is now taking things a step further: Chinese military researchers are threatening that Musk’s Starlink satellites must be destroyed. The problem, however, does not appear so much to be the fear of collision, but rather that China believes that Starlink could be used for military purposes and thereby threaten what China calls its national security.

Five senior scientists in China’s defense industry, led by Ren Yuanzhen, a researcher with the Beijing Institute of Tracking and Telecommunications — which is under the People Liberation Army’s (PLA’s) Strategic Support Force – recently wrote that “a combination of soft and hard kill methods should be adopted to make some Starlink satellites lose their functions and destroy the constellation’s operating system.”

Soft kill methods target software and operating systems of the satellites, whereas hard kill methods physically destroy the satellites, such as using an ASAT weapon.

According to the scientists, China should “vigorously develop countermeasures” against Starlink, as such capabilities are necessary for China “to maintain and obtain space advantages in the fierce space game.”

Unsurprisingly, China has eagerly copied Elon Musk’s SpaceX to achieve its own space ambitions: China’s Long March 2C rocket, for instance, which China launched in the summer of 2019, had parts that were “virtually identical” to those that are used to steer the SpaceX Falcon 9 rocket.

China is not the only state actor to show an interest in interfering with Musk’s Starlink satellites.

Russia too has sought to jam Starlink’s internet service in Ukraine and failed. “Starlink has resisted Russian cyberwar jamming & hacking attempts so far, but they’re ramping up their efforts,” Musk tweeted in May.

Starlink is a problem for Russia because Musk’s satellites have enabled Ukraine to stay connected to the internet – and the rest of the world – amid Russian President Vladimir Putin’s attempts to cut the country off.

Musk began to send Starlink terminals to Ukraine in late February at the request of Ukrainian government officials, as a backup for when Russia would predictably try to cut off internet access. According to one US general, the use of Starlink in Ukraine ruined Putin’s attempts to isolate the country.

“The strategic impact is, it totally destroyed Putin’s information campaign,” said Brig. Gen. Steve Butow, director of the space portfolio at the Defense Innovation Unit.

“He never, to this day, has been able to silence Zelenskyy.”

“We’ve got more than 11,000 Starlink stations and they help us in our everyday fight on all the fronts,” Mykhailo Fedorov, Ukraine’s vice prime minister, told Politico.

“We’re ready, even if there is no light, no fixed internet, through generators using Starlink, to renew any connection in Ukraine.”

China’s threats against Musk’s Starlink is more proof that the country is not ready to let anyone stand in the way of its “fierce space game”, as China put it. General David Thompson, the U.S. Space Force’s first vice chief of space operations, possibly trying to downplay the Chinese’s Communist Party’s threat to the West, described it as merely a “shadow war.”

In this “space war“, China – and Russia to a slightly lesser degree — is conducting attacks against U.S. satellites with lasers, radio frequency jammers, and cyber-attacks every day. While the attacks are “reversible” for now, which means that the damage to the attacked satellites is not permanent, they demonstrate China’s malign intentions.

“The threats are really growing and expanding every single day. And it’s really an evolution of activity that’s been happening for a long time,” Thompson said in November 2021.

“We’re really at a point now where there’s a whole host of ways that our space systems can be threatened.”

In addition to its “fierce space game”, China is forging ahead with a number of projects that will significantly accelerate the country’s space capabilities.

China has reportedly sped up its program to launch a solar power plant in space. The purpose of the plant is to transmit electricity to earth by converting solar energy to microwaves or lasers and directing the energy to Earth, according to the South China Morning Post. The first launch of the project is scheduled for 2028 and will be the world’s first such project in space. It is probable that China got the idea from the US; NASA reportedly proposed a similar plan more than two decades ago but never went on to develop it.

China recently launched its third crewed mission to the Tiangong Space Station’s Tianhe module, where three astronauts will work on completing the space station before returning to Earth in December. China only launched the first module of the Tiangong Space Station in April 2021, but expects to have the space station fully crewed and operational by the end of the year, when the space station will have an additional two science lab modules and a robotic cargo ship. The space station will also help China to deploy and operate its new space telescope, Xuntian, meant “to rival NASA’s aging Hubble Space Telescope, with a field of view 300 times larger and a similar resolution. It will make observations in ultraviolet and visible light, running investigations related to dark matter and dark energy, cosmology, galactic evolution, and the detection of nearby objects.” Xuntian is scheduled to launch in 2024.

China’s explicit goal is to become the world’s leading space power by 2045. It is important to keep in mind that China’s space program – even what might look like harmless, civil aspects of space exploration – is heavily militarized. The organization in charge of China’s manned space program, for instance, is the China Manned Space Engineering Office, which is under China’s Central Military Commission Equipment Development Department. Similarly, the People’s Liberation Army runs China’s space launch sites, control centers and many of China’s satellites.

end

We are continuing to see more war-like stances from China.  Now the China backed Solomon islands (located close to Indonesia) suspends

all USA naval visits

Teng/EpochTmes

China-Backed Solomon Islands Suspends All US Naval Visits

TUESDAY, AUG 30, 2022 – 08:45 PM

Authored by Daniel Teng via The Epoch Times,

The Solomon Islands has informed U.S. authorities that all naval visits have been suspended until further notice following an earlier incident on Aug. 23 when a U.S. Coast Guard vessel, the Oliver Henry, was denied permission for a scheduled port call.

The incident comes amid mounting concerns about Beijing’s influence in the region and Solomons Prime Minister Manasseh Sogavare’s moves to deepen ties with the Chinese regime while solidifying his hold on power.

According to the U.S. Embassy in Canberra:

“On Aug. 29, the United States received formal notification from the Government of the Solomon Islands regarding a moratorium on all naval visits, pending updates in protocol procedures.”

“We will continue to closely monitor the situation,” a spokesperson told The Epoch Times.

The freeze on naval visits comes after the Oliver Henry wrapped up its part in Operation Island Chief to monitor and prevent illegal fishing activity in the region—an ongoing issue with Chinese fishing fleets. Operation Island Chief was conducted in conjunction with members of the Pacific Islands Forum Fisheries Agency (FFA), including Australia, New Zealand, and Fiji.

Oliver Henry was supposed to stop in Honiara, Solomon Islands, on Aug. 23 for refuelling and re-provisioning but received no response from Solomons authorities. Subsequently, the crew were diverted to Port Moresby, Papua New Guinea.

“It is disappointing that the USCGC Oliver Henry was not provided diplomatic clearance in support of its operation with the FFA,” the U.S. Embassy said in response.

Solomons PM Solidifying Power

The Solomons opposition leader Matthew Wale was critical of the Sogavare government’s decision.

“‘Friends to all, enemies to none’ is clearly a joke, the prime minister, Manasseh Sogavare, clearly treats the U.S. and its allies as hostile nations. All our friends must be treated equally,” he said in comments obtained by RNZ.

The radio silence from Solomons authorities follows a series of incidents suggesting the government of Prime Minister Manasseh Sogavare is not only deepening ties with Beijing but also steadily eroding the country’s democratic institutions to strengthen his position.

The Sogavare government signed off on a major deal with Chinese telecommunications firm Huawei on Aug. 18 to build 161 mobile towers in the country with a 448.9 million yuan (US$66.15 million) loan from the state-owned Export-Import Bank of China.

On Aug. 8, the prime minister’s team submitted a Bill to Parliament to delay national elections, which some experts have suggested could be a way for the prime minister to avoid a potential election defeat.

These actions come after Sogavare locked in a security pact with Beijing to allow the Chinese Communist Party to station weapons, troops, and naval ships in the country. This would give Beijing a military presence close to Australia, New Zealand, and the U.S. territory of Guam.

Read more here…

end

CHINA/ECONOMY

China’s $29 billion equivalent property bailout plans far short

(Xie/Bloomberg)

China’s $29 Billion Property Bailout Plan Falls Short

TUESDAY, AUG 30, 2022 – 10:45 PM

By Ye Xie, Bloomberg markets live analyst and reporter.

China is reportedly setting up a national bailout fund to finance stalled real-estate projects. The move, if confirmed, will reduce some systemic risk in the sector. Unfortunately, it’s neither a cure-all designed to save troubled developers, nor a game changer to turn around the market.

We have a date! Beijing set Oct. 16 as the start of the Communist Party’s twice-a-decade leadership congress, where President Xi Jinping is widely expected to retain his power for an unprecedented third term. Optimists might take the news as a positive, hoping that Beijing will improve its economic and Covid policies once the uncertainties about leadership are removed. The CSI 300 did rise in the three months following the two previous leadership changes at the party congresses — in 2002 and 2012.

One area in desperate need of improvement is the housing market. Despite various supportive measures from Beijing, including lowering mortgage rates, the sector shows few signs of a meaningful recovery. New home sales in 30 cities fell about 22% from a year earlier in the month through Aug. 27, only slightly better than the 33% contraction in July, according to Nomura.

The government is doing more. Caixin magazine reported Monday that Beijing has set up a 200 billion yuan ($29 billion) fund  — financed by two policy banks – to help stalled property projects. It’s in-line with earlier reports from other media outlets, including Bloomberg, but contains more details.

  • Local governments will borrow these special-purpose loans and complete the unfinished projects, according to Caixin. The loans will carry low interest rates of 2.8% in the first two years, but rates will jump to 6.4% if they cannot be repaid within three years. In other words, it’s not a blank check.
  • Crucially, regulators have made it clear that the fund will only be used to finish stalled projects. It will not be used to stimulate the housing market or rescue developers.
  • Leaving aside the question of whether it’s enough money, the plan won’t hand cash to the developers. It’s unlikely to completely break the vicious feedback loop between delayed projects, mortgage boycotts and slumping home sales.

As long as home sales are depressed, more credit problems are likely. Goldman Sachs’s analyst Kenneth Ho expects the default ratio of high-yield dollar bonds by Chinese developers to rise this year to 45%, from the current 30%.

This may not topple China’s credit system as offshore bonds only account for 4% of the total debt of Chinese developers, according to Ho. By the same token, it shows why Beijing can afford to stand tough against developers.

The reported rescue plan makes it clear that President Xi is only willing to save the little guys on Main Street, not greedy and reckless tycoons.

end

4/EUROPEAN AFFAIRS//UK AFFAIRS

EUROPE/GAZPROM

Russia officially cuts off flows completely to Germany and the rest of Europe for 4 days because of maintenance.  Will they go beyond Sept 3?

If they do resume flows it will go back to the 20% of capacity level.

(Kennedy/OilPrice.com)

Russia Officially Halts Natural Gas Flows Via Nord Stream 1

WEDNESDAY, AUG 31, 2022 – 08:10 AM

Authored by Charles Kennedy via OilPrice.com,

Russian Gazprom has officially halted gas supplies to Europe via the Nord Stream 1 pipeline, cutting off flows completely to Germany for a period of maintenance that began at 01:00 GMT Wednesday and is scheduled to end at 01:00 GMT on Saturday.

Fears are mounting across the European Union that Russia will delay flows beyond September 3rd as the Kremlin continues to use natural gas as a weapon against Western sanctions – an allegation Moscow has repeatedly denied.

Gazprom has said the cutoff would be temporary, as planned, noting that the pipeline would restart after three days “provided that no malfunctions are identified”, as reported by the New York Times.

Once flows are restored in three days, according to Gazprom, it will be 20% of the pipeline’s capacity – the same level of capacity since flows were restored following July’s maintenance.

This is the second time in as many months that Gazprom has halted supplies on the Nord Stream 1 pipeline. In July, flows were halted for maintenance for a period of 10 days, but capacity was limited, with Gazprom claiming paperwork delays for a turbine held up by sanctions in Canada, and Europe claiming Moscow was using this move in a game of leverage.

Europe has been scrambling to fill its gas storage ahead of the winter months and is now on track to achieve its goals two months ahead of schedule.

Inventory data from Gas Infrastructure Europe on Sunday showed that the European Union had filled its winter reserves to 79.94%, while it is targeting 80% by the first of November, according to Business Insider.

The European Union is closer to potentially intervening in the bloc’s electricity market as energy prices soar ahead of what would be a difficult winter for EU consumers and businesses.

Earlier this week, European Commission President Ursula von der Leyen said the bloc was working out an emergency plan for intervening in energy markets, saying that soaring electricity prices were “exposing, for different reasons, the limitations of our current electricity market design”.

“We need a new market model for electricity that really functions and brings us back into balance,” the EC president said.  

UK/EUROPE

Shocked Europeans post their astronomical energy bills as winter approaches

(zerohedge)

“How In The Name Of God”: Shocked Europeans Post Astronomical Energy Bills As ‘Terrifying Winter’ Approaches

WEDNESDAY, AUG 31, 2022 – 06:55 AM

Over the past week, shocked Europeans – mostly in the UK and Ireland – have been posting viral photos of shockingly high energy bills amid the ongoing (and worsening) energy crisis.

Several of the posts were from small business owners who getting absolutely crushed right now, and won’t be able to remain operational much longer.

One such owner is Geraldine Dolan, who owns the Poppyfields cafe in Athlone, Ireland – and was charged nearly €10,000 (US$10,021) for just over two months of energy usage.

As the Irish Times reports, “The cost of electricity to the Poppyfields cafe for 73 days from early June until the end of August came in at €9,024.70 an increase of 250 per cent in just 12 months. There doesn’t include the €812.22 in VAT, which brought her total bill to €9,836.92.”

How in the name of God is this possible,” tweeted Dolan.

UK pensioners are also facing a “terrifying” winter, as elderly Britons are about to get hit with an 80% rise in energy bills in October.

Elderly Britons are set to welcome a boost of around £1,000 to their state pension payments next year thanks to the return of the triple lock, however the cost of living crisis will still leave them significantly poorer.

However, the price cap for energy bills will rise by 80 per cent to £3,549 in October, and it is predicted to rise over £6,600 next year according to Cornwall Insight.

Higher energy bills often hurt pensioners significantly more than the rest of the population because they spend a greater amount of their income on heating their home. -Daily Mail

According to Caroline Abrahams, charity director of Age UK, “‘It’s a truly frightening prospect and one that most could not have prepared for, and never expected to face at this point in their lives,” adding “I think a lot of older people will be utterly bewildered that it has come to this and will also feel badly let down, and I can’t say I blame them.”

But that’s just the tip of the iceberg. Twitter researcher ‘Crab Man’ (@crabcrawler1), who compiles deep dives on a wide variety of topics (and is absolutely worth a follow), has put together a lengthy thread of similar cases – and put it in the context of the current European energy backdrop. The situation is dire, to say the least.

UK pensioners are also facing a “terrifying” winter, as elderly Britons are about to get hit with an 80% rise in energy bills in October.

Elderly Britons are set to welcome a boost of around £1,000 to their state pension payments next year thanks to the return of the triple lock, however the cost of living crisis will still leave them significantly poorer.

However, the price cap for energy bills will rise by 80 per cent to £3,549 in October, and it is predicted to rise over £6,600 next year according to Cornwall Insight.

Higher energy bills often hurt pensioners significantly more than the rest of the population because they spend a greater amount of their income on heating their home. -Daily Mail

According to Caroline Abrahams, charity director of Age UK, “‘It’s a truly frightening prospect and one that most could not have prepared for, and never expected to face at this point in their lives,” adding “I think a lot of older people will be utterly bewildered that it has come to this and will also feel badly let down, and I can’t say I blame them.”

But that’s just the tip of the iceberg. Twitter researcher ‘Crab Man’ (@crabcrawler1), who compiles deep dives on a wide variety of topics (and is absolutely worth a follow), has put together a lengthy thread of similar cases – and put it in the context of the current European energy backdrop. The situation is dire, to say the least.image.png

END

GERMANY

Now with huge increases in energy costs, the German Green part minister calls for a tax on meat

(Watson/SummitNews)

German Green Party Minister Calls For Tax On Meat

WEDNESDAY, AUG 31, 2022 – 03:30 AM

Authored by Paul Joseph Watson via Summit News,

Even as the people of Germany struggle with a serious cost of living crisis, they are being told by a Green Party minister that there should be a new tax on meat.

Yes, really.

With Germans already facing soaring food inflation and energy bills as a result of gas shortages caused by the war in Ukraine, the last thing they need is another tax to pay.

But that doesn’t seemingly concern Federal Minister of Food and Agriculture Cem Özdemir (Greens), who complained that people were eating the wrong food.

“We should eat less meat overall and make sure it comes from animals that are kept in a species-appropriate manner,” said Özdemir, adding that the country should be “adapting meat consumption to planetary boundaries and for the sake of our health.”

“It is healthier, good for the climate, and helps the global food situation because areas get freed up that we previously needed for cultivating animal feed,” the minister asserted.

Özdemir said that too much cheap meat was being produced, vowing to address this apparent problem with a new tax on meat products.

The agenda to levy a new tax on meat in the name of alleviating climate change has long been a desire of globalist technocrats.

Back in March, Bloomberg News received a massive backlash for offering ‘tips’ to Americans who might struggle with the rising cost of living which included letting their pets die and eating lentils instead of meat.

As we reported earlier this year, a group of environmental economists in Germany demanded that huge taxes be imposed on meat products to fight climate change, with calls for beef to be 56 per cent more expensive.

As we previously highlighted, the World Economic Forum published two articles on its website which explored how people could be conditioned to get used to the idea of eating weeds, bugs and drinking sewage water in order to reduce CO2 emissions.

Despite insisting that everyone else reduce their living standards and ration their meat eating to save the planet, during last year’s Cop 26 summit, attendees enjoyed a menu full of animal-based dishes that were at least double the carbon footprint of the average UK meal.

Another Green Party official recently caused controversy by suggesting Germans use washcloths instead of taking showers, as well as buying expensive eco-heating systems that are unaffordable for the average person.

END

HOLLAND

With the huge increase in energy costs, Netherlands administration Capital, the Hague, is the first city to seek a temporary exemption from EU sanctions against Russia

(zerohedge)

Netherlands’ Admin Capital Is First City To Seek “Temporary Exemption” From EU Sanctions Against Russia

WEDNESDAY, AUG 31, 2022 – 04:15 AM

Remember when Europe showed Putin who’s boss when it demonstrated virtue-shattering solidarity with Ukraine by committing economic suicide and imposing sanctions on most Russian energy exports?

Well, a little over six months later, Europe is facing a historic economic and social catastrophe thanks to energy hyperinflation which has been unleashed just as the ECB is set to hike rates into a frigid winter recession. Worse, not only have western sanctions have been an unmitigated disaster, the pain has been compounded by the fact that Russia is enjoying a new Golden Age for its oil exports (as the WSJ describes in “Russia Confounds the West by Recapturing Its Oil Riches“).

So having realized just how meaningless and futile the sanctions were, Europe’s “virtue-shattering solidarity” is starting to shatter, and one by one, participants in the unbreakable alliance are quietly hoping to sail away from the European Titanic before it loses all power.

Take the Dutch city of The Hague – the country’s administrative and royal capital – which last Thursday said it would ask for a “temporary” exemption of EU sanctions against Russia, as it struggles to find a replacement for its contract with Russian gas supplier Gazprom in time, according to Reuters.

The Hague, which lost its existing access to Russian gas after the Ukraine invasion, has to find a new supplier of gas to replace its existing agreement with Gazprom. The city said it held an EU-wide tender in June and July, but failed to attract any bids from potential suppliers. Spoiler alert: it will find suppliers… it will just have to pay a lot more, something which apparently nobody in Europe realized back in February when everyone threw themselves off the sanctions cliff.

Individual talks with suppliers were certain to lead to an agreement, alderman Saskia Bruines wrote in a letter to the city council, but not before the Oct. 10 deadline.

“We will ask for an exemption for our current arrangement until Jan. 1 2023 to guarantee the safety of supply and to facilitate negotiations,” she said, adding that she was confident the delay would be granted, as The Hague had fulfilled the condition of holding a timely tender without a positive result.

However, she added that any new contract set to enter into effect on Jan. 1 would be significantly costlier than the city’s current arrangement with Gazprom. In other words, despite going back to square one, the Dutch metropolis will now have to spend order of magnitude more.

The Hague is one of many Dutch municipalities that have an energy contract with Gazprom, but is the first to indicate it will ask for an exemption to the sanctions. If granted what it seeks, expect every single other European municipality to follow suit.

end

SWITZERLAND

Smart people: they get it! Swiss politicians petition for the country to keep its nuclear power

(zerohedge)

Swiss Politicians Petition For Country To Keep Nuclear Power

WEDNESDAY, AUG 31, 2022 – 02:45 AM

Switzerland is the latest country to get on board the “nuclear power before country-wide blackouts” trend, following in the recent footsteps of countries like Germany. In fact, a group of Swiss politicians has launched a petition with the intent of revising the country’s energy policy to keep nuclear as part of the mix, as a way to guarantee having enough power going forward. 

The country had planned to close its 5 nuclear reactors after a decision was made post-Fukushima in 2017. it has already shut down one reactor. 

Now, politicians are trying to gather the 100,000 signatures necessary for a referendum to change the country’s constitution and prevent nuclear from being shut out. Outcomes can take years to be put into effect after signatures are gathered, Reuters wrote this week

The politician group, called “Stop Blackouts” said this week: “Until recently, Switzerland had safe and virtually CO₂-free electricity production: the environmentally and climate-friendly combination of hydro and nuclear power is to be abandoned for no reason at all.”

President of the committee Vanessa Meury said: “We cannot do without nuclear power plants.” 

Like Germany, Switzerland is also dealing with potential energy shortages as a result of the Russian war in Ukraine. It has already mulled the idea of four hour regional blackouts in the case of shortages. 

As we noted days ago in a piece by Felicity Bradstock at OilPrice.com, an unjustified fear of nuclear energy is preventing the industry from moving forward.

It pointed out that despite a lack of public understanding of nuclear technology, meaning that it can sometimes be confused with nuclear weapons, there was a general optimism around nuclear energy when it first emerged several decades ago. It seems that the current negative public perception of nuclear power stems mainly from the nuclear disasters that were seen around the world in real-time. 

Although relatively few died during these incidents compared to deaths worldwide from other energy operations, the incidents were widely televised and the fear of the unknown spread rapidly. 

The piece also postulated that perhaps the only way to improve public perception of nuclear energy is through re-education that highlights the relative safety of the technology compared to other energy operations.

In addition, as the public and international organizations put pressure on state governments to go green, better marketing of nuclear energy could help shift the public perception, as people begin to see the carbon-free energy source as necessary for a green future. However, for now, governments are feeling the mounting pressure to ‘get it right’, with the potential for any mishap to add to the long-term demonization of nuclear power. 

END

ECB

THE RACE IS ONE TO DESTROY EACH OTHER’S ECONOMY

(ZEROHEDGE)

Goldman, BofA Now Expect 75bps ECB Rate Hike After European Inflation Comes Record Hot

WEDNESDAY, AUG 31, 2022 – 09:45 AM

The confusion amid the “world’s smartest people”, where they hope to trigger a global, economy-crushing depression in order to somehow prompt Putin to send more gas to Europe, got worse today when Europe reported another hotter than expected record inflation print, which sent short-end yields sharply higher.

To wit, in the flash inflation release for August, Euro area core HICP inflation rose 25bp to 4.28%yoy, and headline HICP inflation rose 21bp to 9.08%yoy, both above expectations.

Key Numbers:

  • Euro area Core HICP (August, Flash): 4.28% vs. GS 4.14%, consensus 4.0%, last 4.03%, all %yoy
  • Euro area Headline HICP (August, Flash): 9.08% vs. GS 8.82%, consensus 9.0%, last 8.87%, all %yoy

Some more details:

  1. Core HICP inflation, excluding energy, food, alcohol and tobacco, rose 25bp to 4.28%yoy.
  2. The breakdown by main expenditure categories showed services inflation rose one-tenth of a percentage point to 3.8%, and non-energy industrial goods inflation rose 0.5pp to 5.0%. Of the non-core components, energy inflation fell 1.3pp to 38.3%, while food, alcohol and tobacco inflation rose 0.8pp to 10.6%.
  3. Following today’s releases, we mechanically update our Euro area inflation forecast, and now expect Euro area core inflation to peak at 4.6%yoy in September and October, and look for headline inflation close to 10% in Q4.
  4. Eurostat will publish the final HICP release with the full component breakdown on Friday, September 16. We will then also update our Euro Area Inflation Monitor.

In response to the numbers, Goldman wrote that it now expects Euro area core inflation to peak at 4.6%yoy in September and October, and looks for headline inflation close to 10% in Q4.

More importantly, moments after the data printed, both Bank of America and Goldman (and soon, most other banks) changed their forecast for what the ECB will do next, and both now expect Lagarde to hike rates by 75bps in September. Here is Goldman’s Sven Jari Stehn:

  • BOTTOM LINEGiven today’s stronger-than-expected inflation data—together with hawkish commentary and upside risks to near-term growth—we now expect the Governing Council to hike by 75bp at the September meeting, and upgrade our forecast for the terminal rate to 1.75% in February 2023.

Some more points from Goldman:

1. We now expect the Governing Council to hike by 75bp at the September meeting. First, today’s inflation data surprised further to the upside, with headline HICP climbing to 9.1%yoy and, importantly, core HICP rising to 4.3%yoy, in another strong sequential monthly print. We expect inflation pressures to rise further in coming months as the 9-Euro ticket in Germany ends and high energy prices feed through into retail prices, with a peak in core inflation at 4.6% in September and headline inflation close to 10% in Q4.

2. Second, the incoming activity indicators have, so far, held up somewhat better than expected, and we see upside risk to our forecast for a slight contraction in Q3. Given ongoing tensions in European gas markets, we remain comfortable with our forecast for a Euro area recession but look for a mild downturn.

3. Third, recent ECB commentary has been hawkish. Following Executive Board member Schnabel’s speech at Jackson Hole—where she argued that the ECB needs to “act forcefully” to “bring inflation back to target quickly”—a number of speakers have said that another half-point rise is the minimum and that 75bp should be considered at the next meeting (Exhibit 2). While not a done deal—as some Governing Council members have advocated a steady pace of hikes—we therefore think a 75bp hike at the September meeting is more likely than another half-point step.

4. Looking beyond next week, we now look for 50bp in October (vs 25bp before), followed by two more 25bp hikes for a terminal rate of 1.75% (vs 1.5% before), taking policy more clearly into restrictive territory (Exhibit 3). While a sharper recession or a return of sovereign stress could lead to an earlier end to the hiking cycle, we see risks skewed towards a higher terminal rate in the event of more persistent inflationary pressures and stronger second-round effects.

END

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS//

IRAQ/USA

6. GLOBAL ISSUES AND COVID COMMENTARIES/

end

Paul Alexander..

No person, especially children, are better protected than if they are unvaccinated in highly vaccinated nations! Keeping them unvaccinated during high infectious pressure TRAINED their INNATE immunity

A child today, Covid UNVACCINATED, a healthy normal child, a child who lived through the last 2.5 years of MADNESS, protected by you, NO Covid vax, has an innate immune system that is the PRIZE!

Dr. Paul AlexanderAug 30

They were bought time that allowed their innate antibodies to be trained and to educate their innate immune system, allowed the proper training of their natural killer (NK) cells. Allowed the training so that the child’s immune system can recognize ‘self’ from ‘non-self’ components.

end

Bloomberg MSN (Muller’s) article shows you just how inept, out of step, and clueless CDC is on the interplay between COVID virus and the host immune system; it’s the vaccine, stupid! Not the virus.

I will just point to the issues for you to consider in reading this toilet tripe drivel garbage and why the writers of this crap should understand what they are writing about:

Dr. Paul AlexanderAug 31

It’s the vaccine, stupid, not the virus that is causing the infectious variants and Fauci and Bourla et al. know this. They are not that stupid, they are doing this IMO.

SOURCE: Omicron’s Mutations Impaired Vaccine Effectiveness, CDC Says

Su

This paragraph: “Almost 40% of people hospitalized in the US with the Covid subvariant that circulated this spring were vaccinated and boosted, highlighting how new strains have mutated to more readily escape the immunity offered by current shots.”

The writer does not understand because the vaccine developers and Fauci et al. have hidden from them that it is the vaccine itself, this sub-optimal vaccine that is driving the mutations due to selection pressure on the spike, viral immune escape, original antigenic sin (antigen imprinting or fixation). Everyone in this vaccine game know exactly what they are doing here, this pandemic will never end BECAUSE of the fraud vaccine, it appears to me to be designed this way, so that this pandemic can continue for 100 years, with infectious variant after infectious variant.

This next paragraph: “The new report’s findings also indicate that along with vaccination, other pharmaceutical and non-pharmaceutical measures should be used by those at highest risk of getting Covid. That includes easy access to therapeutics such as Pfizer’s antiviral drug Paxlovid and Gilead Sciences’ remdesivir, as well as AstraZeneca’s Evusheld for immunocompromised people. Scientists also note that wearing a mask can help guard the wearer from getting sick.”  

The writer has above named 2 drugs Paxlovid and Remdesivir, where the former fails and is very problematic with side effects and causing rebound COVID, and the latter, is a failed Ebola drug that is liver and kidney toxic and has killed many Americans when it was made standard of care by Fauci et al. The writer has named 2 drugs that are harmful and do not work. The masks as per science, are complete garbage and junk and were always ineffective with COVID and toxic and harmful, have never worked. Where mask mandates were implemented, there were subsequent increases in infection and death. All of the non-pharmaceutical policies failed e.g. lockdowns, school closures etc., every one of them and no one can point to any COVID policy that was effective. All caused great harm and deaths.

Thus this Bloomberg article is junk, pure tripe waste of your time.

end

Vaccine Impact/

/VACCINE INJURY

Young doctors in Canada are dying at a rate 23X normal after the second booster

Inbox

Milan Sabioncello4:46 AM (4 hours ago)
to me

Young doctors in Canada are dying at a rate 23X normal after the second booster

https://stevekirsch.substack.com/p/doctors-in-canada-are-dying-at-a

MICHAEL EVERY//RABOBANK

Michael Every on the major topics of the day

The Punt For Red October

WEDNESDAY, AUG 31, 2022 – 09:10 AM

By Michael Every of Rabobank

The Punt For Red October

It was another red day in markets yesterday despite a positive start, as the post-Jackson Hole hangover continues to bite.

Stocks were lower, with the S&P -1.1%, carrying over into red Hong Kong and Nikkei futures this morning. Bonds were lower too: US 2-year Treasury yields were +3bp at 3.45% having tested up to 3.50%, and 10-years +1bp to 3.11% having been at 3.15%; German 2-year Bunds were +8bp to 1.14% and 10-years +3bp to 1.51%; and UK Gilts were little changed despite large swings, closing before former Chancellor and would-be PM Sunak warned that markets may lose faith in the UK economy. (GBP is the more likely channel than Gilts, one would think.)

In FX, CNY could not keep a foothold even despite another in a series of stronger-than-expected PBOC fixes. That a weakening currency cannot be ‘fixed’ even alongside a vast trade surplus that should be pushing it higher speaks to the upwards structural pressures on the US dollar, and the downwards ones on China and CNY.

Oil slumped around 5% after it became clear Iraq is not turning into the next Libya, and its oil output was not hit by recent unrest. (Although Iran, linked to the Iraq unrest, is playing hard to get with the nuclear deal again – presumably because of regional whispers that regardless of what Tehran does, President Biden has decided to sign the deal anyway, “because oil markets.”) Other commodities were also mostly lower on the day.

The broad-based sell-off was helped by German inflation rising 8.8% y-o-y and strong US data in the form of consumer confidence (103.2 vs. 98 consensus, with expectations 75.1, up from 65.6) and JOLTS job openings (11.2m vs. 10.4m consensus, or around two jobs going for everyone officially looking for work).

The last thing markets wanted to see was good economic news that would tip the Fed further towards another 75bps hike in September, let alone encourage its ‘higher for longer’ stance. If we get a US payrolls number that matches the consumer and JOLTS data on Friday, it will certainly back the punt for red October as well as red September.

Of course, it is not just the Fed’s bailout function that markets may lose faith in, nor just the UK economy. Indeed, combining the two, Stefan Koopman and myself just underlined the limited policy options available to *all* central banks as reflected in the possible external review of the Bank of England (BOE) presumed UK PM Truss may soon launch.

Bank of England Dreaming’ asks, “what is central bank inflation targeting good for? given it only seems to work in a limited set of geopolitical and macroeconomic circumstances, which have now structurally changed. As such, we argue there are no policy framework tweaks that can help with the current backdrop. (And where I just heard a UK publican say beer needed to be £15 a pint to cover costs, but doesn’t dare raise prices; and a fish-and-chip shop owner say cod and chips is already £11 and will soon go up: given the minimum wage of £9.5 an hour, that’s potentially over 2.5 hours work, pre-tax, for traditional UK fare!)    

A further conclusion is that the only possible central bank policy answers are: 1) to assume geopolitics doesn’t exist, and so inflation goes back to 2% again – “because economics”; or 2) to look backwards to look forwards.

The BOE was specifically established to lend to the government for war against France, which in a zero-sum mercantilist world was seen as the route to greater flows of resources, and to macroeconomic stability. With regret, doesn’t that backdrop sound at least partly applicable to today’s geopolitical world, rather than forlornly saying “2%”? Indeed, back in 1694 the BOE was an early example of industrial policy in that England needed to build ships, requiring nails, etc., and to feed and arm its soldiers and sailors, all to help the flow of resources in its direction – and the policy *worked brilliantly*. As the same trick has for many others over history.

Of course, to aim for such ambitious and controversial policy and to fail, as so often seen during Covid, would likely accelerate the UK along the path to higher macroeconomic instability, greater socio-political alienation and polarisation, and more violent financial market volatility. The same is true for many other economies too: it’s a very high risk/very high reward strategy, and a very red October, and many more to come, could easily be seen. Then again, things are unravelling all over at the moment.

On which note, former Soviet President Mikhail Gorbachev just passed away at 91. A reviled figure in Russia for presiding over the collapse of the USSR, with all associated socio-economic and psycho-cultural woes, he will be held in fond memory in the West for having seen the peaceful end of the Cold War. Looking at current Western-Russian relations –as gas flows to France were cut again yesterday, and potential EU visa bans on Russians are floated– it’s hard to recall the heady days of the late 1980s, when US heavy metal bands strutted like rock gods in Moscow’s Luzhniki stadium to fist pumps and headbanging from Soviet soldiers.

Talking of heady early days –and mercantilism, industrial policy, and soldiers– Tuesday also saw Beijing announce the CCP’s key 20th Party Congress will take place on 16 October. The official announcement was replete with the official language heard back in the USSR in the late 1980s: “The congress will hold high the great banner of socialism with Chinese characteristics, uphold Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, the Theory of Three Represents and the Scientific Outlook on Development, and thoroughly implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.” Of course, the aforementioned terms are largely incomprehensible to 99% of Wall Street analysts covering Chinese assets. Yet how this news was portrayed in Chinese media led to immediate to-and-fro Kremlinology over what it implied for policy. Here is another hat to throw into that crowded ring.

The official text stated: “All Party members and people from all ethnic groups across the country will be mobilized to continue advancing the Five-Sphere Integrated Plan and the Four-Pronged Comprehensive Strategy in a coordinated manner, pushing forward common prosperity for all, advancing the great new project of Party building, and promoting the building of a community with a shared future for humanity.”

  1. Common prosperity needs no introduction, even to Wall Street, and in 2022 is no longer taken to mean what it did when used in the reform period of 1978 (allowing some regions and groups to get rich first, then sharing their wealth). Markets now see it as closer to its first coinage in 1953, when it contrasted socialism with capitalism – “A road of a few getting rich, while the vast majority are poor and destitute.”
  2. The community of a shared future for humanity is seen as linked to China’s more muscular foreign policy, which is challenging established western norms/hegemony. That, as the Solomon Islands will no longer allow Five Eyes nations’ navies to make port calls, and Australia and New Zealand begin negotiations over an economic and security deal with nearby Papua New Guinea.

In short, will we get a ‘pro-markets shift’, or a continuation of a more volatile policy trend? (As the annual US-China Business Council survey released yesterday, while still showing slightly more optimists than pessimists, also saw 83% of companies less optimistic than 3 years ago, and around a fifth having moved some operations out of China.)

Make up your mind, and then either do or don’t have the punt for Red October.

end

7. OIL//OIL ISSUES//NATURAL GAS//ELECTRICITY ISSUES/USA//GLOBE

Japanese firm Toyko Gas the largest gas supplier in Japan has signed a long term LNG agreement with the new Russian operator the huge Sakhalin 2 project despite risking sanctions on it

(Paraskova/OilPrice.com)

Japanese Firm Signs New LNG Deal With Russia’s Sakhalin-2

TUESDAY, AUG 30, 2022 – 10:05 PM

By Tsvetana Paraskova of Oilprice.com

Tokyo Gas, the largest city gas supplier in Japan, has signed a long-term LNG agreement with the new Russian operator of the Sakhalin-2 project to keep supply volumes from the project, a spokesperson for the Japanese company told Reuters on Tuesday in a second such deal between a firm from Japan and the new operator. 

Last week, the largest power generation firm in Japan, JERA, told Reuters it had signed a long-term LNG deal to maintain its supply from the Sakhalin-2 project.   

Western majors hastened to announce they are abandoning joint projects in Russia after Vladimir Putin invaded Ukraine at the end of February. Some international companies have managed to exit their participation, such as Norway’s Equinor, which said at the end of May that “The exit from all Joint Ventures has been completed in accordance with Norwegian and EU sanctions legislation related to Russia.”

A decree from Putin stipulated in early July that a newly set up state Russian company take over the rights and obligations of Sakhalin Energy Investment Co., the joint venture running the Sakhalin-2 oil and gas project. Shell and Japan’s Mitsui and Mitsubishi were minority shareholders in Sakhalin Energy Investment Co. Shell already said a few months ago it would leave the project and has since then been looking for buyers for its stake in Sakhalin-2. 

Shell has already completed the sale of its retail and lubricants businesses in Russia to Lukoil, but hasn’t exited the Sakhalin-2 LNG project yet.

In early August, the Russian government gave Sakhalin-2 minority foreign investors – Shell, and Japan’s Mitsui & Co and Mitsubishi – one month to claim their stakes in a new entity that will replace the existing project. Shell has confirmed it is looking at ways to exit the project. The Japanese companies are expected to keep their stakes, Japan’s Industry Minister Koichi Hagiuda has said, as carried by Reuters.  

END

8 EMERGING MARKET& AUSTRALIA ISSUES & OTHER EMERGING NATIONS

end

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

Euro/USA 0.9998 DOWN  0.0025 /EUROPE BOURSES // ALL RED 

USA/ YEN 138.71   DOWN  0.049 /NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.1624 DOWN   0.0035

 Last night Shanghai COMPOSITE CLOSED DOWN 25.08 POINTS OR 0.78%

 Hang Sang CLOSED UP 5.36 PTS OR 0.03% 

AUSTRALIA CLOSED DOWN  0.06%    // EUROPEAN BOURSE: ALL RED 

Trading from Europe and ASIA

I) EUROPEAN BOURSES  ALL RED 

2/ CHINESE BOURSES / :Hang SANG CLOSED UP 5.36 PTS OR  0.03% 

/SHANGHAI CLOSED DOWN 25.08 PTS  OR 0.78% 

Australia BOURSE CLOSED DOWN 2.07% 

(Nikkei (Japan) CLOSED DOWN 104.05 OR 0.37%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1715.60

silver:$18.06

USA dollar index early WEDNESDAY morning: 108.88 UP 12  CENT(S) from TUESDAY’s close.

 WEDNESDAY  MORNING NUMBERS ENDS

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And now your closing WEDNESDAY NUMBERS 1: 00 PM

Portuguese 10 year bond yield: 2.59% UP 22  in basis point(s) yield

JAPANESE BOND YIELD: +0.239% UP 2    AND 5/10   BASIS POINTS /JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 2.69%// UP 11  in basis points yield 

ITALIAN 10 YR BOND YIELD 3.79  UP 11   points in basis points yield ./ THE ECB IS QE ITALIAN BONDS

GERMAN 10 YR BOND YIELD: RISES TO +1.5005% 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY  

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

Euro/USA0.9992 UP  .0033   or 33 basis points

USA/Japan: 138.62 UP 1.124 OR YEN DOWN 112 basis points/

Great Britain/USA 1.1706 DOWN.0020 OR 20 BASIS POINTS

Canadian dollar DOWN .0004 OR 4 BASIS pts  to 1.3011

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The USA/Yuan,  CNY: closed    ON SHORE  (CLOSED ..DOWN 6.9088 

THE USA/YUAN OFFSHORE:    (YUAN CLOSED (DOWN)…. 6.9172

TURKISH LIRA:  18.18  EXTREMELY DANGEROUS LEVEL/DEATH WISH/HYPERINFLATION TO BEGIN.

the 10 yr Japanese bond yield  at +0.214

Your closing 10 yr US bond yield UP 8  IN basis points from TUESDAY at  3.112% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic

 USA 30 yr bond yield   3.256 UP 5  in basis points 

Your closing USA dollar index, 108.74 DOWN 1 PTS   ON THE DAY/1.00 PM/

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

London: CLOSED DOWN 53.43 PTS OR  0.70%

German Dax :  CLOSED DOWN 83.23 POINTS OR 0.66%

Paris CAC CLOSED  DOWN 51.05 PTS OR 0.81% 

Spain IBEX CLOSED DOWN 76.30 OR  0.95%

Italian MIB: CLOSED DOWN 65.99 PTS OR  0.28%

WTI Oil price 95.94  12: EST

Brent Oil:  103.94 12:00 EST

USA /RUSSIAN ///   RUBLE FALLS TO:  60.28  DOWN 0  AND 22/100       RUBLES/DOLLAR

GERMAN 10 YR BOND YIELD; +1.5005

CLOSING NUMBERS: 4 PM

Euro vs USA: 0.9995 UP .0035     OR  35 BASIS POINTS

British Pound: 1.1704 DOWN  .0022 or  22 basis pts

USA dollar vs Japanese Yen: 138.77 UP 1.285//YEN DOWN 129 BASIS PTS

USA dollar vs Canadian dollar: 1.3005 DOWN 0.0010  (CDN dollar, UP 10 basis pts)

West Texas intermediate oil: 96.91

Brent OIL:  104.91

USA 10 yr bond yield: 3.114 UP 8 points

USA 30 yr bond yield: 3.253  UP 5  pts

USA DOLLAR VS TURKISH LIRA: 18.18

USA DOLLAR VS RUSSIA//// ROUBLE:  60.39  UP 0 AND    11 ROUBLES 

DOW JONES INDUSTRIAL AVERAGE: DOWN 184.41 PTS OR 0.57 % 

NASDAQ 100 DOWN 120.84 PTS OR 0.96%

VOLATILITY INDEX: 25.91 UP 0.35 PTS (1.37)%

GLD: $161.86 up $0.08 OR 0.05%

SLV/ $17.63 DOWN 7 CENTS OR 0.40%

end)

USA trading day in Graph Form

I) / LATE MORNING//  TRADING

ii) USA DATA//

A very disappointing private ADP jobs report

(zerohedge)

Disappointing ADP Jobs Report Suggests Labor Market At “Inflection Point”

WEDNESDAY, AUG 31, 2022 – 08:20 AM

Having abandoned its model in May – after months of optically systemically underpredicting the BLS payrolls print…

Source: Bloomberg

…ADP is ready to unveil its fresh new Employment Index 2.0 today “to provide a more robust, high-frequency view of the labor market and trajectory of economic growth.”

The revamped report, developed with the Stanford Digital Economy Lab, will include figures on both jobs and payADP said in a statement. It will feature the monthly change in private employment as well as weekly payrolls data for the preceding month. Median annual pay growth by industry, company size, region, gender and age will also now be available each month.

“As the labor market evolves, methods for measuring employment dynamics also need to evolve,” Nela Richardson, ADP chief economist, said in the statement.

“Combining job and pay data in one report, coupled with high-frequency releases, will give us a clearer picture of the labor market.”

Instead of its previous model-based approach, the figure will now be constructed from ADP payroll data and weighted with an expansive, quarterly BLS dataset to make it more nationally representative.

So, what does the new data show?

Analysts forecast ADP would report a 300k rise in employment in August (exactly in line with the BLS payrolls estimate due to be released on Friday) but instead it printed a drastically disappointing +132k jobs added.

Source: Bloomberg

According to ADP data, US Private Employment levels are back at pre-pandemic highs…

Source: ADP

Goods-producing firms added just 23k jobs in August while Services added 110k, despite serveral Services sectors seeing job losses…

If it wasn’t for Truck drivers, waiters, and bartenders we could be facing a negative print.

“Our data suggests a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy’s conflicting signals,” said Nela Richardson, chief economist, ADP.

“We could be at an inflection point, from super-charged job gains to something more normal.”

The MidWest saw net job losses in August…

Perhaps most critically, wages are still soaring (especially for job-changers)…

Time to revise that model again?

END

iii)USA economic commentaries

This will test the power grids

(zerohedge)

Heat Dome Bakes California As “A Lot Of Records Could Be Tied Or Broken”

TUESDAY, AUG 30, 2022 – 05:05 PM

A severe heatwave across California and the Pacific Northwest will test power grids this week and early next week. 

Temperatures are forecasted to soar above 100 degrees Fahrenheit east of San Diego and Los Angeles, with areas near Palm Springs and Palm Desert exceeding 113 starting Tuesday, according to the National Weather Service (NWS). By Thursday, Sacramento could reach 105. 

The heat dome will spread into Washington, Oregon, and even Montana, Brian Hurley, a senior branch forecaster at the US Weather prediction center, said, quoted by Bloomberg. He outlined:

 “A lot of records are forecast to either be tied or broken,” Hurley said. 

The blast of hot air will peak average California temperatures of around 85-90 degrees Fahrenheit on Sept. 5 and revert to a 30-year trend line of the low 70s by mid-month.

Average high temperatures in California could be near the triple-digit territory. 

Californian residents will lower their thermostats to seek relief with air conditioners, boosting electricity demand. 

Bloomberg noted demand on the state grid could reach 44.8 gigawatts on Sept. 4 and then stay elevated until the heat dissipates. Peak loads are expected early next week. 

On a seasonal basis, California power prices are above a 10-year trend line due to the burst of hot weather. 

California’s grid operator has postponed power-plant maintenance from Aug. 31 to Sept. 6 to ensure adequate power supplies. 

end

Chicago/Magnificent Mile

What use to be prime real estate is now turning into a “murderous mile”

(Real Clear Politics)

Progressive Policies Turning Chicago’s Magnificent Mile Into Murderous Mile

RealClearPolitics.com,

One of Illinois’ major advantages is Chicago, which – until recently – was one of the most vibrant cities in the world. People from across the globe have made their way to Chicago to do business, tour our famous museums, theaters, and restaurants, take in sporting events, and to build their lives. Chicago is a beautiful city that used to be full of opportunity.

Tragically, this vibrant, once-thriving community is being destroyed by the policies of leftist ideologues ruling the city and state: JB Pritzker, Lori Lightfoot, and Kim Foxx.

Consider this: There were four times as many crimes reported in the few blocks around Water Tower Place, one of the more exclusive areas of the city, over the last year than were reported in the once-notorious Cabrini-Green.

I recently visited the scene of one of Chicago’s many crimes in downtown Chicago. It was a chilling experience, and these statistics should shock us to our core. But they seem to have numbed many, as each Monday morning we just read the weekend’s body count in the Chicago Tribune right along with the sports scores.

Violent Crime (Assault, Battery, Homicide, Criminal Sexual Assault) Data (04/10/2022 – 08/19/2022), City of Chicago

The greatest shopping district in the Midwest – the Magnificent Mile – has seen some truly horrific crimes. Just days ago, a man was murdered in the late afternoon right outside high-end shops. His throat was slashed. And he died literally in the middle of Michigan Avenue.

What happens to Chicago if Michigan Avenue becomes known as the Murderous Mile?

The explosion in crime drives away businesses. Who wants to set up a store in a city where the mayor handcuffs police and a county that allows criminals to steal up to $1000 in merchandise before it is considered a felony? The rising crime also repels shoppers – that trip to Neiman Marcus is a lot less glamorous when there is no guarantee you won’t be a crime victim in the parking garage.

As vacancies rise and streets empty, property values fall. According to Redfin, the average sale price of a home in Magnificent Mile was $365K last month, down 50.6% since last year. As home values in the heart of Chicago’s Magnificent Mile fell by 50%, homes in Miami are up 21% over the last 12 months.

This is nothing short of a catastrophe. The ongoing destruction of Chicago is a direct consequence of the radical prosecutorial policies pursued by Kim Foxx. Far from doing anything about it, crime will actually go up after Jan. 1 as Pritzker’s anti-police, pro-criminal SAFE-T Act goes into effect and even more criminals held in Cook County jails are released onto the streets. Chicago politicians, just in the past five years, have made the people of Cook County and the surrounding counties of Will and DuPage (which have also seen rising crime, as it bleeds over the borders of Cook) less safe.

Michigan Avenue can be Magnificent again, but only if the extreme pro-criminal, anti-police ideologues ruining Illinois are turned out of office. Illinoisans shouldn’t have to move to Miami to be safe and happy. All they need to do is stop voting for the people who are coming up with these insane policies.

The attorney general is the chief legal officer of the state, but Kwame Raoul is also Kim Foxx’s silent partner in non-prosecution. Foxx has the obligation under the law to prosecute criminals on behalf of the people.

But she and Raoul have been very cavalier about other people’s lives. Her refusal to do her duty is nothing short of criminal. When a public officer fails to perform a mandatory duty in Illinois, that’s official misconduct – and that’s a felony in Illinois.

I can be a supportive partner to a prosecutor who fights crime on behalf of the people, but I will not stand by silently if Kim Foxx refuses to do her job putting criminals behind bars. No public official should be permitted to destroy a city and the opportunities and property values of the people who reside there. Fiddling as Chicago burns is not an option I find acceptable.

Some called me a bulldog for my refusal to stand by as Gov. Pritzker exceeded his constitutional authority with his illegal mandates. Others called me a watchdog as I highlighted for the people the corruption that goes right into the governor’s office in the Thornley case.

I don’t care what you call me. As a private practice attorney, I stood up for parents, first responders, and state workers against a governor and mayor who were abusing their power over them. I will do the same as attorney general. Illinoisans need a check on the powerful in this state now more than ever. I have been a fighter for you. My loyalty has always been and will always be to you – the people, not the powerful.

Let’s take back Chicago in November. With your vote, we can make the Magnificent Mile truly magnificent again.

end

Used car market falls as prices now plunge to one year lows

(zerohedge)

Used-Car Market Cools As Prices Plunge To One Year Low

TUESDAY, AUG 30, 2022 – 07:45 PM

In April, while wholesale used-vehicle values were at record highs, we asked, “Are Used Car Prices About To Peak For Real This Time?” We pointed out one month later, “Used Car Prices Are Crashing At A Near Record Pace.”

The latest Manheim Used Vehicle Value Index that tracks what dealers pay for used cars at auction is at a one-year low of 211.6. 

The index declined 3.6% from July in the first 15 days of August but is still up 8.8% from August 2021. The monthly slump was the most significant drop since April 2020.

Cox Automotive analysts said sliding wholesale used-vehicle values should continue through August. SUVs and pickups saw the most declines in value at auctions while minivans fell less — likely a function of thin supply, according to analysts. They said compact cars saw auction prices stable, noting it was likely due to more demand because elevated fuel costs have pushed consumers to more efficient vehicles. 

A metric called “days of inventory” – how long it would take dealers to sell out of cars at the current sales rate if they couldn’t acquire new stock – was eight days higher than a year ago as the nationwide supply of used vehicles (as of Aug. 15) was improving. 

Cox analysts noted consumers’ views of buying conditions for vehicles declined in August due to elevated prices and soaring rising interest rates. They said the only prior time consumers felt this pessimistic about purchasing a car was when auto loan interest rates were sky high in the early 1980s. 

Looking at Bankrate data, rising auto loans for used vehicles may have been enough to crimp demand as used car price growth on a yearly basis has cooled since rates began surging in the first quarter. 

Perhaps with supply rising and affordability woes mounting, we may have correctly called the peak in used car prices between April-May timeframe. What comes next with a uber-hawkish Federal Reserve is possibly the implosion of the car bubble that could leave millions of Americans who bought the pandemic peak underwater. 

Just wait until these youngsters with +$1,000 monthly payments panic sell their vehicles as the economy craters. 

It’s anyone’s guess where the used car floor price is as supply returns and Fed crushes demand with rising interest rates. 

end

Mississippi

The state of Mississippi declares a state of emergency as broken pump leaves its capital, Jackson, without drinking water.

(zerohedge)

Mississippi Declares State Of Emergency As Broken-Pump Leaves Capital Without Drinking Water

TUESDAY, AUG 30, 2022 – 08:25 PM

Mississippi Gov. Tate Reeves declared a state of emergency for Jackson, the state’s capital, as an ongoing water crisis threatens the “critical needs” of more than 180,000 city residents. Severe flooding knocked out pumps at the capital’s main water treatment center, sparking a massive shortage of clean water. 

Jackson Mayor Chokwe Antar Lumumba and Gov. Reeves activated the National Gaurd Monday evening to assist in distributing clean water to the city’s residents. 

“The is a very different situation from a boil water notice — which is also a serious situation which the residents of Jackson have become tragically numb to,” the governor said in a prepared statement.

The crux of the problem resides in Jackson’s failed water treatment facility with low water pressure and inadequate treatment to clean the water. Pumps at the water treatment facility were damaged in recent floods. 

“Until it is fixed, it means we do not have reliable running water at scale. It means the city cannot produce enough water to reliably flush toilets, fight fire and meet other critical needs,” the governor continued. 

The mayor warned residents: 

Do not drink the water. In too many cases, it is raw water from the reservoir being pushed through the pipes,” Reeves told Jackson residents Monday. “Be smart, protect yourself, protect your family.”

Gov. Reeves said emergency maintenance is underway at the water treatment facility as there is no timetable on when the water shortage will be resolved. 

end

The crooked JPMorgan is at it again.

(JPMorgan’s Europe division/zerohedge)

JPMorgan’s Frankfurt Offices Raided As Part Of Cum-Ex Tax Fraud Probe

WEDNESDAY, AUG 31, 2022 – 08:50 AM

German lawmakers have called it the “greatest tax heist” in history: the loophole in the tax law of Germany, Denmark, and the UK to pocket hundreds of millions of euros, if not billions, via a trading strategy known as “Cum-Ex” – or “With-Without.”

In the past, we have noted Deutsche Bank, Morgan Stanley, Barclays Plc, and Bank of America Corp.’s Merrill Lynch’s Frankfurt offices were raided as part of a money laundering probe. 

This week, JPMorgan Chase & Co.’s Frankfurt office was raided as part of a widening Cum-Ex scandal centered on cross-border tax fraud. 

“A spokesman for Cologne prosecutors on Wednesday said searches at an unidentified bank started on Tuesday and included the homes of four suspects and an auditing firm that isn’t a target in the probe. More than 50 officers are involved, including specialists, to unearth evidence buried in emails,” Bloomberg reported Wednesday morning. 

JPMorgan confirmed to Reuters that their “Frankfurt offices were visited this week” by “German authorities on their ongoing investigation” in the share-trading scheme that cost taxpayers billions of euros.

Cum-Ex reportedly diverted “at least 10 billion euros” in government revenue by exploiting German tax laws that allowed multiple investors to claim refunds of a tax on dividends that were paid only once, Bloomberg reported.

For those who aren’t familiar with Cum-Ex, here’s a quick rundown showing how it works, courtesy of the Conversation:

Party One, typically an asset manager who owns valuable company shares, “lends” its stock to Party Two, a bank. Under the agreement, the title and ownership of the stock is temporarily transferred to the borrower in return for a fee. Such practices are not only legal but a common part of “short selling,” the practice featured in the 2015 film The Big Short. Essentially, it is where an investor borrows a stock (for a fee), sells it, then buys it back later at a lower price to return it to the original – on the expectation the stock’s value will fall and a profit made.

Party Two then sells the shares with-dividend to Party Three fractionally before the Record Date. However, the shares are delivered without-dividend just after.

Timing, speed and complexity are key. Like a magic trick, the shares “disappear” fractionally before the Record Date and “reappear” with a new owner just after. The aim is to obscure exactly who – Party One, Two or Three – owns the stock on the Record Date. As a result, two parties can simultaneously claim ownership of the one stock.

Up until 2011, a loophole in the German tax code allowed both Party One (the owner of the original stock who had received the dividend and paid tax on it) and Party Three (the holder of the stock just after the Record Date) to claim a tax reimbursement. All colluding parties would then split the gains.

The practice was abolished in 2012, but prosecutors in Cologne are probing about 1,500 people and increasing pressure on international banks. 

A good history lesson from Simon Black

(Simon Black)

Is The US About To Go Full Louis XVI?

WEDNESDAY, AUG 31, 2022 – 07:20 AM

Authored by Simon Black via SovereignMan.com,

On September 3, 1783, after nearly a year of excruciating back-and-forth negotiations, all sides had finally gathered together in Paris to sign a historic peace agreement.

It was a pretty important peace deal. Because the Treaty of Paris, as it is now known, is what formally ended the American Revolution, and when Great Britain legally recognized the United States as an independent nation.

The treaty was signed in Paris because France had been a major supporter of the US war effort. And just as soon as the ink was dry, French King Louis XVI ordered his finance minister to prepare an accounting of exactly how much money France had spent on US independence.

The result was nothing short of astonishing—more than 1 billion livres.

To put that number in context, the French Treasury’s entire annual revenue only amounted to around 200 million livres.

So they had basically sunk FIVE YEARS worth of their tax revenue fighting someone else’s war.

Granted, Britain was still one of France’s main rivals. And the French did not care for British King George III.

But the American War was simply too costly, and France had already been on very shaky financial footing well before this point.

Louis XIV had nearly bankrupted the country a century before. His successor, Louis XV, had to drastically slash expenses and could barely hang on financially.

Then, in 1774, just prior to the American Revolution, Louis XVI became king at a time that France was rapidly deteriorating.

You’d think that with so much economic turmoil at home that he would have focused on his own national interests… and, in lieu of money, weapons, and ships, he would have instead sent the royal thoughts and prayers to America.

But no.

Lucky for the United States, Louis XVI courageously fought the American Revolution down to the very last French taxpayer.

Only after the war did Louis finally take stock of the situation and realize the truth: America was in a much better position. Britain was bruised but still powerful. Yet his own France was nearly bankrupt and desperately in need of cash. Not exactly a win/win.

Louis XVI was King, but his powers were limited; he was beholden to the legislature, called the Estates-General, and he couldn’t simply decree new taxes without their consent.

The King did, however, control the tax collectors. And Louis made sure they had every authority to coerce, harass, and intimidate money out of French citizens.

French tax collectors had the authority to walk right into people’s homes unannounced, conduct surprise inspections to look for hidden wealth, and walk away with whatever money or property they felt would satisfy the peasant’s tax bill.

This is actually a pretty common theme throughout history: governments that are on the ropes routinely resort to plundering the savings of their citizens.

Several ancient Roman emperors, in fact, from Diocletian to Valentinian III, famously sent ruthless tax collectors to harass their citizens and steal their wealth. Several ancient Chinese dynasties did the same thing. So did the declining Ottoman Empire.

Significantly ramping up tax collection efforts is typically a hallmark of an economy and empire in decline.

So we can’t be too surprised that, in its latest legislative bonanza, the US government is setting aside $80 billion for IRS tax collection efforts.

They’re calling the bill, of course, the Inflation Reduction Act. This is pure comedy—the legislation will do no such thing. Why would inflation, which in part was caused by excessive government spending, magically dissipate because of more government spending? It’s ludicrous.

But inflation aside, front and center in the legislation is $80 billion in funding for the IRS, primarily to step up its tax collection and enforcement efforts.

To put that number in context, the annual budget for the IRS is about $12 billion. So, even though the $80 billion will be leaked out over a period of several years, it constitutes a major increase in the IRS budget.

The entire idea is based on a bizarre notion known as the ‘tax gap’. This is the difference between the amount of tax the government collects, versus the amount the government thinks they should collect.

In other words, the tax gap represents how much they believe people are cheating. And the estimates vary wildly, from $100 billion per year to a whopping $1 trillion per year.

Frankly these numbers have always seemed to me like they were completely made up. No one has explained how they actually come up with such estimates. They just barf up some number and pretend that it’s true.

Obviously there are a whole lot of hardcore tax cheats out there, stealing and defrauding the system. But that’s not why the IRS is receiving an $80 billion boost.

This money will go to hire a small army of tax inspectors who will fan out across the nation on a giant fishing expedition that will ensnare countless middle class Americans and small businesses.

Certainly they’ll catch a few cheats along the way. And they may even find a few bucks to close that mythical ‘tax gap’.

But at what cost?

One of the biggest problems with the US economy right now is that it’s so much more difficult to produce goods and services.

Over the past few years, the people in charge have put up endless road blocks and obstacles for small business.

They vanquished the labor market and made it all but impossible to find workers. They destroyed the supply chain. They engineered historically high inflation. They came up with a myriad of costly new environmental and public health rules.

On top of that they constantly create new rules and regulations, many of which step far beyond the government’s authority.

(Last year, for example, the CDC Director decided in her sole discretion that she controlled the entire $10+ trillion US housing market.)

23% of full-time workers today require a government license to do what they do, according to the US Department of Labor. Even being a hairdresser is full of red tape and costly bureaucracy.

This new threat of widespread tax audits is going to be yet another obstruction to Americans’ productivity…. at a time when the economy desperately needs maximum focus.

Inflation is raging because there is a serious, global imbalance between the supply and demand of goods and services.

Specifically, demand is too strong because they doled out trillions of dollars in free money. And supply is weak because nearly every single government policy makes it harder for people to produce (which is yet another hallmark of empires in decline).

Now, on top of everything else, there is a very high likelihood of being harassed by the tax authorities.

Audits are incredibly unpleasant, costly, and time-consuming. Even if all of your accounts are in order and you’ve done nothing wrong, a tax audit monopolizes a tremendous amount of time and money.

It’s debilitating. Say goodbye to actually running your business, growing sales, or spending time with your family on nights and weekends… and say hello to preparing for your tax audit.

Your time will now be spent digging up receipts, finding old contracts, and trying to recall specific details of trivial decisions you made years ago.

Plus you’ll most likely have to pay outside experts to assist with the process, like CPAs and attorneys. And naturally the government does not reimburse you for such expenses. But at least you’ll get to deduct them… from your taxes.

In the end, after endless financial scrutiny, the government may conclude that you owe them a few bucks because of some undocumented deduction from several years ago. So you write them a check for some trivial sum… after having spent countless hours and effort taken away from your productivity.

The cost/benefit just doesn’t compute. And that’s why healthy, prosperous nations don’t engage in such absurd activities. They don’t need to.

Taxes ultimately represent the government’s ‘slice’ of an economic pie. So when a country is prosperous and an economy is strong, the government’s slice continues to grow because the overall economic pie is constantly getting bigger.

But nations in decline don’t see it this way. For them, the pie is shrinking. So they think the only way to increase their slice is to go after other people’s crumbs.

History shows this is absolutely the wrong move. Raising tax rates, inventing new taxes, and recruiting armies of tax collectors only makes the pie shrink even more.

Their efforts, instead, should be focused on making the pie bigger. But they don’t think that way.

Bear in mind this is all brought to you by the same people who are shoveling your tax dollars out the door to Ukraine $50 billion at a time. It’s very ‘Louis XVI’ of them.

All of these trends—the cannibalistic surge in tax authorities, the anti-productive regulations, the economic scarcity mentality—are all hallmarks of an empire in decline.

The situation is NOT terminal. It is NOT irreversible. But it is reason enough to have a Plan B.

USA SUPPLY ISSUES//FOOD SHORTAGES

This is happening far too often

(zerohedge)

Another US Food Processing Plant Catches Fire, Add This To Growing List

TUESDAY, AUG 30, 2022 – 05:45 PM

Another food processing plant went up in flames last weekend. Add this poultry business in California to the growing list of US food plants that have been knocked offline in the past year due to “accidental fires.”

Los Angeles-based KTLA reported QC Poultry processing plant in Montebello, California, located just east of East Los Angeles and southwest of San Gabriel Valley, caught fire around 1600 local time Sunday. Firefighters responded to the large industrial plant as heavy smoke billowed from the roof. 

“As members [firefighters] began to deploy, the fire was upgraded to a third alarm commercial fire. Firefighters initially took a defensive stance and held the fire from spreading to any other nearby structures,” Montebello Fire Department said. The fire was declared “knocked down” by 2000 local time. 

KTLA said there was no damage to other building structures nearby. The fire’s cause is unknown… 

While the fire seems insignificant, it’s part of a much larger issue of a spate of mysterious fires taking out America’s food supply chain one by one over the last year. 

We tallied a list in June of a couple dozen or more food processing plants that have caught fire (find the list here). 

Some on Twitter questioned if America’s food industry is being sabotaged… 

… nothing to see here (story count of “food plant fire” in all media outlets). 

Remember, who wants the world to “eat bugs“: 

end

end

SWAMP STORIES

Pennsylvania Abruptly Changes Voter Registration Form, Combines With Mail-In Ballot Application

TUESDAY, AUG 30, 2022 – 07:25 PM

Authored by Beth Brelje via The Epoch Times (emphasis ours),

In the middle of the election cycle, the Pennsylvania Department of State has suddenly changed its voter registration application form to include a mail-in ballot application.

The applications used to be on separate forms, but this seemingly small clerical change is creating logistical headaches for county election directors and causing voter confusion.

Registering to vote and seeking a mail-in ballot are two different actions requiring different responses in the county election offices.

“We use the voter registration application for one thing, we use a mail-in ballot application for something different,” Christa Miller, Lancaster County’s election director, told The Epoch Times. “One has to be done before the other. Obviously, you have to be a voter in order to get a detailed ballot, so that has to be processed first. And then your mail-in ballot application can be processed. We also file them all completely different.”

All voter registration applications are filed together, and mail-in ballot applications are filed separately. That is because, as per state law, county election offices must mail an application each year to everyone who asked to be on the permanent mail-in ballot list.

In February, we have to send them an application for that calendar year,” Miller said. Then the voter must send it back, confirming they want to participate in mail-in voting for the year. The office files the mail-in applications alphabetically.

Procedure Changed in Middle of Election Cycle

Between the May primary and the November general election, the county elections office fields a lot of calls from voters who want to verify they checked the mail-in ballot box or to check the address where the ballot will be sent.

Instead of going though something like 400,000 voter registration forms, it’s easier to go through 30,000 specific mail-in ballot forms.

The Department of State combined the documents and implemented the new form on Aug. 19, which was 13 weeks after the primary and just 11 weeks before the general election.

Now the county is processing the first half of the form—getting a person registered to vote—and then making a copy of the form to process the mail-in ballot portion and file that copy separately.

Voters have questions about the new form, too, Miller said. They are not sure if they are registering to vote or registering for mail-in voting, so it has taken some education.

As election officials, we asked [the state] to wait until December. This is going to take voter education and explaining how the new form works,” Miller said. “There’s a big election coming up in November. I think everybody in Pennsylvania knows that. And all we wanted to do was wait until December to let us keep our offices going the way that they’re going. Not having to teach our staff new ways of doing things, and voters new ways of doing things. You know, keep things the same at least through November.”

Jonathan Marks, deputy secretary at the Pennsylvania Department of State, told The Philadelphia Inquirer the goal of the change is to simplify the process, so voters don’t have to fill out two forms.

Read more here…

END

THE KING REPORT


 

Greg Hunter..INTERVIEWING EGON VON GREYERZ

A MUST VIEW….

Era of Fake Money is Gone – Egon von Greyerz

By Greg Hunter On August 31, 2022 In Market Analysis16 Comments

By Greg Hunter’s USAWatchdog.com

Financial and precious metals expert Egon von Greyerz (EvG) stores gold for clients at the biggest private gold vault in the world buried deep in the Swiss Alps.  EvG is a former Swiss banker and financial expert that says massive money printing and huge amounts of unpayable debt will lead to a monster financial meltdown soon.  EvG says, “I did forecast that . . . the stock market is going to fall at this particular point.  The 1,000-point drop on the DOW last Friday came right on cue.  Fundamentally, the markets should have crashed a long time ago. . . . It appears clear to me we are going to see a 30% or so fall in the markets in the next one to two months.  That’s the first fall, but that’s just the beginning. . . . Markets will fall, in real terms, by 90% to 95% in the coming years.  That’s not going to happen overnight, but if it does happen overnight, then all bets are off and there will be a total disaster.  The world is going to shut down. . . . Then there will be some extra money printing and people will be optimistic for a while.  There is no money anymore because the money that is printed will make zero difference.  There will be nothing that will drive the world forward.  All the decisions on top of the with energy, climate change, sanctions, etcetera, will mean it all will crash a lot faster. . . . The world is going to see a collapse that it has never seen before in history, and there is absolutely no remedy for that.  They are not going to be able to do anything.  Everybody who is not in power is going to promise something that they can’t deliver.  When they get into power, they will be thrown out because they couldn’t deliver.  So, the era of Shangri-la and money printing and saving the world by fake money—that era is totally gone.”

EvG goes on to say, “I am not a prophet of doom and gloom, but it may sound like it.  I am just someone who just looks at risk.  This is why I got into gold 20 years ago.  Gold was the best solution to a risk situation in the financial world. . . . We almost had a collapse in 2008, and it was patched up temporarily.  This time they won’t succeed . . . . We have a situation nobody can solve. . . . Initially, there will be money printing, but adding new debt to pay old debt is not a great solution to the problem.  I don’t think there will be any orderly reset at all . . . . At some point, there will be an implosion of the system.  There has to be. . . . You have to remember when the debt collapses, all the assets that were supported by this debt will collapse.  You will have an implosion of values, I expect 90% plus.  Stocks crashed in 1929 to 1932 by 90%.  The risk back then and the magnitude of the problems then were nothing compared to what we have today.  Remember, today it’s global, and it’s every single country in the world. . . . It’s everywhere, and no one can escape what’s coming.”

In closing, EvG says, “Gold never goes up in price.  Gold maintains stable purchasing power, and that’s why it is such a wonderful commodity and asset.”

EvG likes silver, too, but he says be careful because it will be more volatile than gold.

There is much more in the 37-minute interview.

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Egon von Greyerz of Matterhorn Asset Management, which can be found on GoldSwitzerland.com.

(To Donate to USAWatchdog.com Click Here)

After the Interview:

There is free information, analysis and original articles written by EvG and others on GoldSwitzerland.com.

To get a copy of EvG’s new book “Gold Matters,” click here.

end

See you TOMORROW

Harvey

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