by harveyorgan · in Uncategorized · Leave a comment·Editi

GOLD PRICE CLOSED: DOWN $2.25 TO $1972.75

SILVER PRICE CLOSED: DOWN $0.22   AT $23.48

Access prices: closes 4: 15 PM

Gold ACCESS CLOSE 1971.75

Silver ACCESS CLOSE: 23.62

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Bitcoin morning price:, $27,340  UP 467  Dollars

Bitcoin: afternoon price: $27,206  UP 601 dollars

Platinum price closing  $1054.85 DOWN $17.50

Palladium price;     $1452.85 DOWN $37.20

“Our system is so stinkin’ corrupt that we owe Sodom and Gomorrah an apology.” … Trader Dan Norcini in 2009

GO GATA!

END

Due to the huge rise in the dollar, we must look at gold and silver in currencies other than the dollar to understand where we are heading

I will now provide gold in Canadian dollars, British pounds and Euros/4: 15 PM ACCESS

CANADIAN GOLD: $2,666.75 UP 3.50 CDN dollars per oz (ALL TIME HIGH 2,775.35)

BRITISH GOLD: 1590.52UP 6.25 pounds per oz//(ALL TIME HIGH//CLOSING///1630.29)

EURO GOLD: 1833.30 UP 11.26 euros per oz //(ALL TIME HIGH/CLOSING//1861.21)//

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EXCHANGE: COMEX

EXCHANGE: COMEX
CONTRACT: MAY 2023 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,974.800000000 USD
INTENT DATE: 05/22/2023 DELIVERY DATE: 05/24/2023
FIRM ORG FIRM NAME ISSUED STOPPED

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118 C MACQUARIE FUT 2
365 H MAREX CAPITAL M 2
661 C JP MORGAN 1
737 C ADVANTAGE 2
800 C MAREX SPEC 3
880 H CITIGROUP 4

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TOTAL: 7 7
MONTH TO DATE: 6,039

JPMorgan stopped 1/7 contracts

FOR MAY:

GOLD: NUMBER OF NOTICES FILED FOR MAY/2023. CONTRACT:  7 NOTICES FOR 700 OZ  or  0.02177 TONNES

total notices so far: 6039 contracts for 603,900 oz (18.784 tonnes)

FOR  MAY:

SILVER NOTICES: 24 NOTICE(S) FILED FOR 120,000 OZ/

total number of notices filed so far this month :  2529 for 12,645,000 oz

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END

GLD

WITH GOLD UP DOWN $2.25..

INVESTORS SWITCHING TO SPROTT PHYSICAL  (PHYS) INSTEAD OF THE FRAUDULENT GLD//WOW!!

/NO CHANGES IN GOLD INVENTORY AT THE GLD:///

INVENTORY RESTS AT 942.74 TONNES 

Silver//

WITH NO SILVER AROUND AND SILVER DOWN 22 CENTS AT THE SLV// 

HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.801 MILLION OZ INTO THE SLV.: /; : INVESTORS ARE SWITCHING SLV TO SPROTT’S PSLV.

CLOSING INVENTORY: 471.330 MILLION OZ

Let us have a look at the data for today

SILVER//OUTLINE

SILVER COMEX OI FELL BY A TINY SIZED 38 CONTRACTS TO 137,678 AND FURTHER FROM THE  RECORD HIGH OI OF 244,710, SET FEB 25/2020 AND THIS TINY SIZED LOSS IN COMEX OI WAS ACCOMPLISHED WITH OUR   $0.19 FALL  IN SILVER PRICING AT THE COMEX ON MONDAY. TAS ISSUANCE WAS A GOOD SIZED 470 CONTRACTS. THESE WILL BE USED FOR MANIPULATION NEXT MONTH.  CRAIG HEMKE HAS POINTED OUT THAT THE CROOKS USE THE MID MONTH FOR MANIPULATION AS THEY SELL THEIR BUY SIDE OF THE CALENDAR SPREAD FIRST AND THEN KEEP THE SELL SIDE TO LIQUIDATE AT A LATER DATE.  THUS WE HAVE TWO VEHICLES THE CROOKS USE FOR MANIPULATION AND BOTH ARE SPREADERS:  1) AT MONTH’S END/SPREADERS COMEX AND 2/ TAS SPREADERS, MID MONTH. TOTAL TAS ISSUED ON MONDAY: A GOOD 470 CONTRACTS. DESPITE MANY COMPLAINTS THAT THE CROOKS HAVE VIOLATED POSITION LIMITS DUE TO THE FACT THAT THEY VALUE 0 TO A POSITION LIMIT IF A CALENDAR SPREAD OCCURS. IT NATURALLY FELL ON DEAF EARS WITH OUR REGULATORS (OCC) WHEN THEY RECEIVED THE COMPLAINT IN SIMILAR FASHION TO ALL OF THOSE DEMOCRATIC CRIMES COMMITTED WITH NO ATTENTION GIVEN BY ATTORNEY GENERALS.

WE HAVE THIS YEAR SET ANOTHER RECORD LOW AT 117,395 CONTRACTS ///MARCH 29.2023. OUR BANKERS WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL BY $0.19). BUT WERE  UNSUCCESSFUL IN KNOCKING ANY SPEC LONGS AS WE HAD A TINY GAIN ON OUR TWO EXCHANGES OF  62 CONTRACTS   WE HAD 0 CRIMINAL NOTICES FILED IN THE CATEGORY OF  EXCHANGE FOR RISK TRANSFER FOR 0 MILLION OZ// (  THE TOTAL ISSUED IN THIS CATEGORY SO FAR THIS MONTH TOTAL 4.250 MILLION OZ.).  WE HAVE NOW RETURNED TO OUR USUAL AND CUSTOMARY SCENARIO: BANKERS SHORT AND SPECS LONG WITH MANIPULATION NOW MID MONTH DUE TO (TAS) MANIPULATION, AND FINAL WEEK IN THE DELIVERY CYCLE DUE TO COMEX SPREADERS MANIPULATION.

WE  MUST HAVE HAD: 

A SMALL  ISSUANCE OF EXCHANGE FOR PHYSICALS( 100 CONTRACTS) iiii) AN  INITIAL SILVER STANDING FOR COMEX SILVER MEASURING AT  13.105 MILLION OZ(FIRST DAY NOTICE) FOLLOWED BY TODAY’S QUEUE JUMP  OF 110,000 OZ (QUEUE JUMP RAISES THE AMOUNT OF SILVER STANDING)+0 EXCHANGE FOR RISK// TOTAL 4.25 MILLION OZ OF EXCHANGE FOR RISK FOR THE MONTH(RAISES THE AMOUNT OF SILVER STANDING):THUS TOTAL OF 17.670 MILLION OZ OF STANDING FOR DELIVERY  V)   TINY SIZED COMEX OI GAIN/ SMALL SIZED EFP ISSUANCE/VI)  GOOD NUMBER OF SHORT T.A.S. CONTRACT INITIATION//SOME T.A.S LIQUIDATION MANIPULATING THE PRICE SOUTHBOUND.

 I AM NOW RECORDING THE DIFFERENTIAL IN OI FROM PRELIMINARY TO FINAL  -removed  29  CONTRACTS

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

TOTAL CONTRACTS for 17 days, total 10,625 contracts:   OR 53.125 MILLION OZ . (625 CONTRACTS PER DAY)

TOTAL EFP’S FOR THE MONTH SO FAR:  53.125 MILLION OZ 

LAST 23 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

YEAR 2022:

 JAN 2022-DEC 2022

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: 65.025 MILLION OZ 

SEPT. 74.025 MILLION OZ///FINAL

OCT.  29.017 MILLION OZ FINAL

NOV: 134.290 MILLION OZ//FINAL

DEC, 61.395 MILLION OZ FINAL

TOTALS YR 2022: 1135.767 MILLION OZ (1.1356 BILLION OZ)

JAN 2023///   53.070 MILLION OZ //FINAL

FEB: 2023:       100.105 MILLION OZ/FINAL//MUCH STRONGER ISSUANCE VS THE LATTER TWO MONTHS.

MARCH 2023:  112.58 MILLION OZ//FINAL//STRONG ISSUANCE 

APRIL  118.035 MILLION OZ(SLIGHTLY GREATER THAN THAN LAST MONTH)

MAY 53.1250 MILLION OZ/INITIAL (MUCH SMALLER THIS MONTH)  

RESULT: WE HAD A TINY SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 38  CONTRACTS  DESPITE OUR FAIR SIZED  $0.19 LOSS IN SILVER PRICING AT THE COMEX//MONDAY.,.  THE CME NOTIFIED US THAT WE HAD A SMALL  SIZED EFP ISSUANCE  CONTRACTS: 100  ISSUED FOR JULY AND 0 CONTRACTS ISSUED FOR ALL OTHER MONTHS) WHICH  EXITED OUT OF THE SILVER COMEX  TO LONDON  AS FORWARDS./ WE HAVE A GOOD INITIAL SILVER OZ STANDING FOR MAY OF  13.105 MILLION  OZ//FIRST DAY NOTICE FOLLOWED BY TODAY’S QUEUE JUMP    OF 110,000 OZ (INCREASES THE AMOUNT OF SILVER STANDING) +//  + 0.0 MILLION NEW EXCHANGE FOR RISK  TODAY (INCREASES THE AMOUNT OF SILVER STANDING) //TOTAL EXCHANGE FOR RISK MONTH= 4.25 MILLION//NEW TOTALS 13.310 MILLION OZ + 4.25 MILLION = 17.670 MILLION OZ//  .. WE HAVE A TINY SIZED GAIN OF 68 OI CONTRACTS ON THE TWO EXCHANGES. THE TOTAL OF TAS INITIATED CONTRACTS TODAY: A GOOD  470!!//SOME FRONT END OF THE TAS CONTRACT LIQUIDATED.

WE HAD 24  NOTICE(S) FILED TODAY FOR  120,000  OZ

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

GOLD//OUTLINE

IN GOLD, THE COMEX OPEN INTEREST FELL  BY A STRONG SIZED 6,192  CONTRACTS  TO 480,505 AND FURTHER FROM  THE RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE DIFFERENTIAL FROM PRELIMINARY OI TO FINAL OI IN GOLD TODAY: REMOVED -115 CONTRACTS

WE HAD A STRONG SIZED DECREASE  IN COMEX OI ( 6,192 CONTRACTS) DESPITE OUR   $4.70 LOSS IN PRICE. WE ALSO HAD A STRONG INITIAL STANDING IN GOLD TONNAGE FOR MAY. AT 3.5085 TONNES ON FIRST DAY NOTICE // PLUS  300  OZ QUEUE JUMP :(QUEUE JUMPING = EXERCISING LONDON BASED EFP’S, ATTACHED TO COMEX CONTRACTS ) (EFP is the transfer of   COMEX contracts immediately to London for potential gold deliveries originating from London)/+ /A SMALLER ISSUANCE OF 713 T.A.S. CONTRACTS/SOME FRONT END OF TAS LIQUIDATION////YET ALL OF..THIS HAPPENED WITH OUR  $4.70 LOSS IN PRICE  WITH RESPECT TO MONDAY’S TRADING.WE HAD A FAIR SIZED LOSS  OF 2787  OI CONTRACTS (8.668 PAPER TONNES) ON OUR TWO EXCHANGES.

E.F.P. ISSUANCE

THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A GOOD SIZED 3405 CONTRACTS:

The NEW COMEX OI FOR THE GOLD COMPLEX RESTS AT 480,505

IN ESSENCE WE HAVE A FAIR SIZED DECREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2787 CONTRACTS  WITH 6,192 CONTRACTS DECREASED AT THE COMEX//TAS CONTRACTS INITIATED (ISSUED): 713 CONTRACTS) AND 3405 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS ON THE TWO EXCHANGES OF 2787 CONTRACTS OR 8.668 TONNES.

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES

WE HAD A GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (3405 CONTRACTS) ACCOMPANYING THE GOOD SIZED LOSS IN COMEX OI (6,192) //TOTAL LOSS FOR OUR THE TWO EXCHANGES: 2787 CONTRACTS. WE HAVE ( 1) NOW RETURNED TO OUR NORMAL FORMAT OF BANKERS GOING SHORT AND SPECULATORS GOING LONG  ,2.) GOOD INITIAL STANDING AT THE GOLD COMEX FOR MAY AT 3.5085 TONNES FOLLOWED BY TODAY’S  QUEUE JUMP   OF 300 OZ // NEW STANDING: 19.101 TONNES   // ///3) MINOR LONG LIQUIDATION//4)  FAIR SIZED COMEX OPEN INTEREST LOSS/ 5) GOOD ISSUANCE OF EXCHANGE FOR PHYSICAL PAPER///6: T.A.S.  ISSUANCE: 713 CONTRACTS 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2023 INCLUDING TODAY

MAY

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

TOTAL EFP CONTRACTS ISSUED:  53,919 CONTRACTS OR 5,391,900 OZ OR 167.710 TONNES IN 17 TRADING DAY(S) AND THUS AVERAGING: 3171 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE  SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 17 TRADING DAY(S) IN  TONNES  167.710 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2022, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES

THUS EFP TRANSFERS REPRESENTS  167.710/3550 x 100% TONNES  4.73% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2021 TO 2023 

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// 

TOTALS: 2,578.08 TONNES/2021

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: 180.81 TONNES FINAL

SEPT. 193.16 TONNES FINAL

OCT:  177.57  TONNES FINAL ( MUCH SMALLER THAN LAST MONTH)

NOV.  223.98 TONNES//FINAL ( MUCH LARGER THAN PREVIOUS MONTHS//comex running out of physical)

DEC:  185.59 tonnes // FINAL

TOTAL: 2,847,25 TONNES/2022

JAN 2023:    228.49 TONNES FINAL//HUGE AMOUNT OF EFP’S ISSUED THIS MONTH!!

FEB: 151.61 TONNES/FINAL 

MARCH: 280.09 TONNES/INITIAL (ANOTHER STRONG MONTH FOR EFP ISSUANCE)

APRIL: 197.42 TONNES ( MUCH SMALLER THAN LAST MONTH)

MAY: 157.119 TONNES (HEADING FOR ANOTHER SMALLER MONTH)

SPREADING OPERATIONS

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

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

HERE IS A BRIEF SYNOPSIS OF HOW THE CROOKS FLEECE UNSUSPECTING LONGS IN THE SPREADING ENDEAVOUR ;MODUS OPERANDI OF THE CORRUPT BANKERS AS TO HOW THEY HANDLE THEIR SPREAD OPEN INTERESTS:HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE  NON ACTIVE DELIVERY MONTH OF MAY HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF JUNE., FOR BOTH GOLD:

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 (JUNE), 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. 

The crooks also use the spread in the TAS  account  (trade at settlement).  They buy the spot TAS (e.g. June) and sell the future TAS two months out (e.g. August). Then they unload the front month (i.e. unload the buy side first so the price of gold/silver falls. This occurs in the middle  of the  front delivery month cycle. They unload the sell side of the equation, two months down the road.  The crooks violate position limits as the OCC refuse to hear our complaints.

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

1.Today, we had the open interest at the comex, in SILVER FELL BY A TINY SIZED 38  CONTRACTS OI TO  137,678 AND CLOSER TO OUR COMEX HIGH 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.  HOWEVER WE HAVE SET A NEW RECORD LOW OF 117,395 CONTRACTS MARCH 27/2022 

EFP ISSUANCE 100  CONTRACTS 

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

JULY  100  and ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE:  100  CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI LOSS OF 38 CONTRACTS AND ADD TO THE 100 OI TRANSFERRED TO LONDON THROUGH EFP’S,

WE OBTAIN A SMALL SIZED LOSS OF OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES OF 62 CONTRACTS 

THUS IN OUNCES, THE LOSS  ON THE TWO EXCHANGES  TOTAL .310 MILLION OZ 

OCCURRED WITH OUR $0.19 LOSS IN PRICE …..

END

OUTLINE FOR TODAY’S COMMENTARY

1a/COMEX GOLD AND SILVER REPORT

(report Harvey)

b, ) Gold/silver trading overnight Europe,//GOLD COMMENTARIES

(Peter Schiff)

c) Commentaries from: Egon von Greyerz///Matthew Piepenburg via GoldSwitzerland.com, Pam and Russ Martens

ii a) Chris Powell of GATA provides to us very important physical commentaries

b. Other gold/silver commentaries

c. Commodity commentaries//

d)/CRYPTOCURRENCIES/BITCOIN ETC

 2.ASIAN AFFAIRS//

 

TUESDAY MORNING//MONDAY  NIGHT

SHANGHAI CLOSED DOWN 50.23 PTS OR 1.52%   //Hang Seng CLOSED DOWN 246.92 POINTS OR 1.25%      /The Nikkei closed DOWN 246.92 OR 1.25%  //Australia’s all ordinaries CLOSED DOWN 0.04 %   /Chinese yuan (ONSHORE) closed DOWN 7.0547 /OFFSHORE CHINESE YUAN DOWN  TO 7.0661 /Oil DOWN TO 72.82 dollars per barrel for WTI and BRENT AT 76.88 / Stocks in Europe OPENED ALL MOSTLY RED// ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN  TRADING WEAKER AGAINST US DOLLAR/OFFSHORE WEAKER

a)NORTH KOREA/SOUTH KOREA

outline

b) REPORT ON JAPAN/

OUTLINE

3  CHINA

OUTLINE

4/EUROPEAN AFFAIRS

OUTLINE

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

OUTLINE

6.Global Issues//COVID ISSUES/VACCINE ISSUES

OUTLINE

7. OIL ISSUES

OUTLINE

8 EMERGING MARKET ISSUES

9. USA

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

GOLD

 LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A STRONG SIZED 6192 CONTRACTS DOWN TO 480,505 WITH OUR LOSS IN PRICE OF $4.70 ON MONDAY,

EXCHANGE FOR PHYSICAL ISSUANCE

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

THAT IS 3405  EFP CONTRACTS WERE ISSUED: :  JUNE 3405 & ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 3405 CONTRACTS 

ON A NET BASIS IN OPEN INTEREST WE LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A FAIR SIZED TOTAL OF 2787  CONTRACTS IN THAT 3405 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE HAD A STRONG SIZED LOSS OF 6,192 COMEX  CONTRACTS..AND  THIS FAIR SIZED LOSS ON OUR TWO EXCHANGES HAPPENED WITH OUR  LOSS IN PRICE OF $4.70. AS PER OUR NEWBIE TRADE AT SETTLEMENT (TAS) MANIPULATION OPERATION (WHICH CRAIG HEMKE HAS POINTED OUT HAPPENS DURING MID MONTH IN THE DELIVERY CYCLE),THE CME REPORTS THAT THE TOTAL T.A.S. ISSUANCE THIS MORNING WAS A TOUCH SMALLER AT 713 CONTRACTS.  DURING THIS WEEK THEY SOLD THE LONG SIDE OF THE SPREAD WHICH  OF COURSE CONTINUES TO MANIPULATE THE PRICE OF GOLD SOUTHBOUND. (THEY KEEP THE SHORT SIDE OF THE CALENDAR SPREAD WHICH WILL BE LIQUIDATED TWO MONTHS HENCE).  FOR EXAMPLE WITH TONIGHT’S READING OF TAS 100% OF ISSUANCE OF T.A.S. WAS JUNE AND AUGUST.

// WE HAVE A STRONG AMOUNT OF GOLD TONNAGE STANDING:    MAY  (19.101) ( NON ACTIVE MONTH)

TONNES),

 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  YEAR  2021 (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.  38.1158 TONNES

OCT:  77.390 TONNES/ FINAL

NOV 27.110 TONNES/FINAL 

Dec. 64.541 tonnes

(TOTAL  YEAR 656.076 TONNES)

2003:

JAN/2023:    20.559 tonnes

FEB 2023: 47.744 tonnes

MAR:  19.0637 TONNES

APRIL: 75.676  tonnes

MAY: 19.101 TONNES

THE SPECS/HFT WERE SUCCESSFUL IN LOWERING GOLD’S PRICE( IT FELL $4.70) //// BUT WERE UNSUCCESSFUL IN KNOCKING SOME  SPECULATOR LONGS AS WE HAD OUR FAIR  SIZED LOSS OF 2787 CONTRACTS ON OUR TWO EXCHANGES. WE HAD CONSIDERABLE TAS LIQUIDATION.

 WE HAVE LOST A TOTAL OI OF 8.311 PAPER TONNES OF TOTAL OI FROM OUR TWO EXCHANGES, ACCOMPANYING OUR INITIAL  GOLD TONNAGE STANDING FOR MAY. (3.5085 TONNES) FOLLOWED BY TODAY’S  QUEUE JUMP  OF 300 oz (0.00933 TONNES)//NEW STANDING 19.101 TONNES  ALL OF THIS WAS ACCOMPLISHED WITH  OUR LOSS IN PRICE  TO THE TUNE OF $4.70

WE HAD +REMOVED  115     CONTRACTS  TO THE  COMEX TRADES TO OPEN INTEREST AFTER TRADING ENDED LAST NIGHT

NET LOSS ON THE TWO EXCHANGES 2787  CONTRACTS OR 278700  OZ OR 8.668 TONNES.

Estimated gold comex today 258,945// fair

final gold volumes/yesterday   217,770//  FAIR

//MAY 23/ MAY  2023 CONTRACT

Gold	Ounces
Withdrawals from Dealers Inventory in oz	nil
Withdrawals from Customer Inventory in oz	99.297 OZ Delaware         .
Deposit to the Dealer Inventory in oz	NIL
Deposits to the Customer Inventory, in oz	32,151.000 oz Brinks 1000 kilobars
No of oz served (contracts) today	7  notice(s) 700 OZ 0.02177 TONNES
No of oz to be served (notices)	102  contracts    10200 oz 0.3172 TONNES
Total monthly oz gold served (contracts) so far this month	6039 notices 603,900  OZ 18.787 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month	NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month	x

i)Dealer deposits: 0

total dealer deposit: nil   oz

No dealer withdrawals

Customer deposits:  1

i) Into Brinks:   32,151.000 oz

1000 kilobars

total deposits:  32,151.000 oz

 customer withdrawals: 1

i) Out of Delaware:  99.297 oz

total withdrawals: 99.297 oz   oz  

Adjustments;  0

CALCULATIONS FOR THE AMOUNT OF GOLD STANDING FOR MAY.

For the front month of MAY we have an oi of 109  contracts having LOST 98 contracts.  We had 101 contracts filed

on MONDAY, so we GAINED A SMALL  3 contracts or an additional 300 oz (0.00933 tonnes) will  stand for gold in this non active delivery month of May 

June LOST A HUGE 15,245  contracts DOWN to 162,227 contracts. 

July added 254 contracts to stand at 2501 contracts.

AUGUST GAINED 8805 contracts UP to 260,801 contracts  

We had 7 contracts filed for today representing  700 oz  

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 7   contract(s) of which 0   notices were stopped (received) by  j.P. Morgan dealer and 1  notice(s) was (were) stopped   received by J.P.Morgan//customer account   and 0 notice(s) received (stopped) by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the MAY /2023. contract month, 

we take the total number of notices filed so far for the month (6,039 x 100 oz ), to which we add the difference between the open interest for the front month of  MAY (109  CONTRACTS)  minus the number of notices served upon today  7 x 100 oz per contract equals 614,1200 OZ  OR 19.101 TONNES the number of TONNES standing in this NON-   active month of May. 

thus the INITIAL standings for gold for the MAY contract month:  No of notices filed so far (6,039 x 100 oz) x  109 OI for the front month minus the number of notices served upon today (1)x 100 oz} which equals 614,100 oz standing OR 19.101 TONNES 

TOTAL COMEX GOLD STANDING: 19.0917 TONNES WHICH IS HUGE FOR A NON ACTIVE DELIVERY MONTH.  

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

COMEX GOLD INVENTORIES/CLASSIFICATION

NEW PLEDGED GOLD:

241,794.285 oz NOW PLEDGED /HSBC  5.94 TONNES

204,937.290 PLEDGED  MANFRA 3.08 TONNES

83,657.582 PLEDGED JPMorgan no 1  1.690 tonnes

265,999.054, oz  JPM No 2 

1,152,376.639 oz pledged  Brinks/

Manfra:  33,758.550 oz

Delaware: 193.721 oz

International Delaware::  11,188.542 o

total pledged gold:  1,696,563.034  OZ   52.77 tonnes

TOTAL OF ALL GOLD ELIGIBLE AND REGISTERED:  22,612,690.934  OZ  

TOTAL REGISTERED GOLD:  12,356,429.711   (384.336  tonnes)..

TOTAL OF ALL ELIGIBLE GOLD: 10,256,429.711  O Z  

REGISTERED GOLD THAT CAN BE SERVED UPON: 10,659,866 OZ (REG GOLD- PLEDGED GOLD) 331.565 tonnes//

END

SILVER/COMEX

MAY 23//2023// THE MAY 2023 SILVER CONTRACT

Silver	Ounces
Withdrawals from Dealers Inventory	NIL oz
Withdrawals from Customer Inventory	2,495,709.077 oz CNT Loomis Manfra JPMorgan Delaware .
Deposits to the Dealer Inventory	nil oz
Deposits to the Customer Inventory	600,360.300 oz JPMorgan
No of oz served today (contracts)	24  CONTRACT(S)    (120,000  OZ)
No of oz to be served (notices)	155 contracts  (775,000 oz)
Total monthly oz silver served (contracts)	2529 Contracts  (12,645,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month	NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month

i)  0 dealer deposit

total dealer deposits:  0

total: nil oz

i) We had 0 dealer withdrawal

total dealer withdrawals:  oz

We have 1 deposits into the customer account

i) Into JPMorgan:  600,360,300 oz

Total deposits: 600,360.300    oz 

JPMorgan has a total silver weight: 141.687  million oz/272.502 million =52.20% of comex .//dropping fast

  Comex withdrawals 5

i) Out of  CNT 1,023,188.590

ii) Out of Delaware  75,506.768 oz

iii) Out of Loomis:  93,806.610 oz

iv) Out of JPMorgan: 1,091,937.920 oz

v) Out of Manfra 311,269.189 oz 

Total withdrawal:  408,195.128    oz

adjustments:  2//dealer to customer 

i) Out of JPMorgan:  35,278.100 oz

ii) Manfra: 245,007.114 oz

TOTAL REGISTERED SILVER: 30.598 MILLION OZ (declining rapidly).TOTAL REG + ELIGIBLE. 272.502 million oz

CALCULATION OF SILVER OZ STANDING FOR MAY

silver open interest data:

FRONT MONTH OF MAY /2023 OI: 175   CONTRACTS HAVING LOST 41  CONTRACT(S). WE HAD 63 CONTRACTS FILED ON MONDAY, SO WE GAINED 22 CONTRACTS OR AN ADDITIONAL 110,000 OZ WILL  STAND FOR DELIVERY ON THIS SIDE OF THE POND 

JUNE HAD A 6 CONTRACT LOSS TO 1133

JULY HAD A 247 CONTRACT LOSS TO 112,144 CONTRACTS

TOTAL NUMBER OF NOTICES FILED FOR TODAY: 24 for 120,000  oz

Comex volumes// est. volume today  58,102  fair

Comex volume: confirmed yesterday: 40,874  poor

To calculate the number of silver ounces that will stand for delivery in MAY. we take the total number of notices filed for the month so far at 2529 x  5,000 oz = 12,525,000 oz 

to which we add the difference between the open interest for the front month of MAY(179) and the number of notices served upon today 24 x (5000 oz) equals the number of ounces standing.

Thus the  standings for silver for the MAY/2023 contract month:  2529 (notices served so far) x 5000 oz + OI for the front month of May (179) – number of notices served upon today (24 )x 500 oz of silver standing for the MAY contract month equates to 13.4200 million oz  + THE CRIMINAL 0 MILLION OZ EXCHANGE FOR RISK TODAY//NEW TOTAL EXCHANGE FOR RISK: 4.250//NEW TOTAL 17.670 MILLION 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

MAY 23/WITH GOLD $2.25 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 942.74 TONNES

MAY 22/WITH GOLD DOWN $4.70 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 5.83 TONES OF GOLD INTO THE GLD DESPITE THE L0SS IN PRICE//INVENTORY RESTS AT 942.74 TONNES

MAY 19/WITH GOLD UP $22.20 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 936.96 TONNES

MAY 18/WITH GOLD DOWN $23.80 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.02 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 936.96 TONNES

MAY 17/WITH GOLD DOWN $8.25 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF .87 TONNES OF GOLD INTO THE GLD///INVENTORY RESTS AT 934.94 TONNES

MAY 16/WITH GOLD DOWN 28.05 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.57 TONNES OF GOLD FROM THE GLD///INVENTORY RESTS AT 934,07 

MAY 15/WITH GOLD UP $2.85 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 937.64 TONNES

MAY 12/WITH GOLD DOWN $.40 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.89 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 937.84 TONNES

MAY 11/WITH GOLD DOWN $15.15 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 934.95 TONNES

MAY 10/WITH GOLD DOWN $5.00 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.70 TONNES OF GOLD FROM THE GLD////INVENTORY RESTS AT 934.95 TONNES

MAY 9/WITH GOLD UP $9.70 TODAY:  HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A MONSTER DEPOSIT OF 5.88 TONNES OF GOLD INTO THE GLD///INVENTORY RESTS AT 937.64 TONNES

MAY 8/WITH GOLD UP $8.70 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.73 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 931.77 TONNES

MAY 5/WITH GOLD DOWN $30.30 TODAY:HUGE CHANGES IN GOLD INVENTORY AT THE GLD: AS DEPOSIT OF 1.74 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 930.04 TONNES

MAY 4/WITH GOLD UP $19.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 928.30 TONNES

MAY 3/WITH GOLD UP $13.90 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.47 TONNES INTO THE GLD////INVENTORY RESTS AT 928.30 TONNES

MAY 2/WITH GOLD UP $32.70 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.45 TONNES FORM THE GLD/////INVENTORY RESTS AT 924.83 TONNES

MAY 1/WITH GOLD DOWN $8.85 TODAY:NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 926.28 TONNES

APRIL 28/WITH GOLD UP $1.45 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.76 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 926.28 TONNES

APRIL 27/WITH GOLD UP $4.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 930.04 TONNES/

APRIL 26/WITH GOLD DOWN $8.45 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.61 TONNES FROM THE GLD.//INVENTORY RESTS AT 930.04 TONNES

APRIL 25/WITH GOLD UP $4.90 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF .86 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 927.43 TONNES

APRIL 24/WITH GOLD UP $9.45 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 926.57 TONNES

APRIL 21/WITH GOLD DOWN $27.80 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 926.57 TONNES

APRIL 20/WITH GOLD UP $12.70: HUGE CHANGES TODAY IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF .87 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 926.57 TONNES

APRIL 19//WITH GOLD DOWN $12.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 925.70 TONNES

APRIL 18/WITH GOLD UP $12.15 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.03 TONNES OF GOLD FROM THE GLD////INVENTORY RESTS AT 925.70 TONNES/

APRIL 17/WITH GOLD DOWN $7.15 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.89 TONNES OF GOLD FROM THE GLD////INVENTORY RESTS AT 927.72 TONNES

APRIL 14/WITH GOLD DOWN $38.90 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.47 TONNES OF GOLD FROM THE GLD///INVENTORY RESTS AT 930.61 TONNES

APRIL 13/WITH GOLD UP$31.70 TODAY; HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.17 TONNES OF GOLD INTO THE GLD///INVENTORY RESTS AT 934.08 TONNES

APRIL 11/WITH GOLD UP $14.30 TODAY; NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 903.91 TONNES

GLD INVENTORY: 942.74 TONNES

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

MAY 23/WITH SILVER DOWN 22 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.801 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 471.330 MILLION OZ//

MAY 22/WITH SILVER DOWN 19 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 468.529 MILLION  OZ//

MAY 19/WITH SILVER UP 38 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 468.529 MILLION OZ

MAY 18/WITH SILVER DOWN 23 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 919,000 OZ FROM THE SLV////INVENTORY RESTS AT 468.529 MILLION OZ/

MAY 17/WITH SILVER DOWN 2 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 469.448 MILLION OZ//

MAY 16/WITH SILVER DOWN 34 CENTS TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF .643 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 469.448 MILLION OZ.

MAY 15/WITH SILVER UP 13 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 470.091 MILLION OZ/

MAY 12/WITH SILVER DOWN $.26 TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE SLV A DEPOSIT OF 3,123 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 470.091 MILLION OZ./

MAY 11/WITH SILVER DOWN $1.18 TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 466.968 MILLION OZ

MAY 10/WITH SILVER DOWN 23 CENTS TODAY; HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.286 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 466.968 MILLION OZ//

MAY 9/WITH SILVER UP 7 CENTS TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A TINY DEPOSIT OF .08 MILLION OZ OF SILVER INTO THE SLV////INVENTORY RESTS AT 465.682 MILLION OZ//

MAY 8/WITH SILVER DOWN 7 CENTS: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.194 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 465.602 MILLION OZ//

MAY 5/WITH SILVER DOWN 31 CENTS TODAY; SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 368,000 OZ OF SILVER FROM THE SLV////INVENTORY RESTS AT 466.876 MILLION OZ//

MAY 4/WITH SILVER UP 53 CENTS TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A SMALL DEPOSIT OF .174 MILLION OZ INTO SLV.//INVENTORY RESTS AT 467.174 MILLION OZ//

MAY 3/WITH SILVER UP 11 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.194 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 467.070 MILLION OZ//

MAY 2/WITH SILVER UP 37 CENTS TODAY;NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 468.264 MILLION OZ//

MAY 1/WITH SILVER DOWN ONE CENT TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 918,000 OZ FROM THE SLV////INVENTORY RESTS AT 468.264 MILLION OZ

APRIL 28/WITH SILVER UP 1 CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 469.482 MILLION OZ//

APRIL 27/WITH SILVER UP 16 CENTS TODAY:HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.103 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 469.182 MILLION OZ//

APRIL 26/WITH SILVER UP 10 CENTS TODAY; HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.102 MILLION OZ FORM THE SLV////INVENTORY RESTS AT 470.285 MILLION OZ

APRIL 25/WITH SILVER DOWN 34 CENTS TODAY: THIS IS UNBELIEVABLE!!! HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 7.304 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 471.387  MILLION OZ.

APRIL 24/WITH SILVER UP 22 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 464.083 MILLION OZ/

APRIL 21/WITH SILVER DOWN 29 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 919,000 OZ FROM THE GLD////INVENTORY RESTS AT 464.083 MILLION OZ//

APRIL 20/WITH SILVER UP 2 CENTS TODAY; HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.021 MILLION OZ OF SILVER FROM THE SLV////INVENTORY RESTS AT 465.002 MILLION OZ/

APRIL 19/WITH SILVER UP 11 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 467.023 MILLION OZ//

APRIL 18/WITH SILVER UP 18 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.757 MILLION OZ OF SILVER FROM THE SLV////INVENTORY RESTS AT 467.023 MILLION OZ

APRIL 17/WITH SILVER DOWN 33 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.194 MILLION OZ OF SILVER FROM THE SLV///INVENTORY RESTS AT 469.780 MILLION OZ//

APRIL 14/WITH SILVER DOWN 48 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 470.974 MILLION OZ/

APRIL 13/WITH SILVER UP HUGELY BY 48 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.389 MILLION OZ OF SILVER INTO THE SLV////INVENTORY RESTS AT 470.974 MILLION OZ

APRIL 11/WITH SILVER UP 27 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 468.585 MILLION OZ

CLOSING INVENTORY 471.330 MILLION OZ//

PHYSICAL GOLD/SILVER STORIES

1:Peter Schiff

A good one from Peter Schiff today

(Peter Schiff)

Peter Schiff: The Fed Is Losing The Inflation Fight

TUESDAY, MAY 23, 2023 – 07:20 AM

Via SchiffGold.com,

We saw a big selloff in the gold market last week and the price dropped below $2,000 an ounce. The catalyst for that selloff was tough talk from several Federal Reserve officials and an increasing expectation that the central bank will raise rates again in June. As Peter Schiff explained in his podcast, everybody thinks the Fed is going to win the inflation fight because it is going to be even tougher. In reality, they are talking tougher because they are losing the fight.

On Thursday, Dallas Fed President Lorie Logan said she’s concerned that “much too high” inflation is not cooling fast enough to allow the Fed to pause its interest-rate hike campaign in June.

The data in coming weeks could yet show that it is appropriate to skip a meeting. As of today, though, we aren’t there yet.”

While the stock market shrugged off the tougher Fed talk, the dollar strengthened, gold fell and the short end of the bond market also sold off.

If the FOMC does raise rates next month, it will push the Fed funds rate to between 5.25 to 5.5%. As Peter pointed out, this would drive rates above the peak of the last cycle back in June 2006.

We will be above the interest rate level that precipitated the 2008 financial crisis and Great Recession. Except the difference is today that we have so much more debt than we did back then. Everybody has a lot more debt — the government, corporations, individuals. So, that level of interest will do far more damage today than it did in 2007. And we know how much damage it did then because we had the financial crisis of 2008. So, the financial crisis that has already begun in 2023 is going to be much worse than the one that we had in 2008.”

Household debt is now above $17 trillion for the first time ever. Even more concerning is the fact that credit card debt was flat in Q1. Credit card balances typically fall in the first quarter.

Americans are using their credit cards as a lifeline. That’s how they’re dealing with higher prices. They’re charging stuff.”

In March alone, revolving credit, which included credit card debt, was up 17.3% on an annual basis. Meanwhile, interest rates on credit card debt have spiked to over 20%. Peter said this indicates that the Fed really isn’t making any progress on inflation.

The consumer keeps spending. Where are they getting the money? They’re borrowing it. Credit continues to expand. That’s part of the inflationary dynamic. Inflation is an expansion of the money supply, which includes credit. So, consumers are not cutting back on their spending because of higher prices. They’re not even cutting back on their spending because of higher interest rates. They just keep on spending. So, prices are going to keep on rising, and this next quarter-point rate hike isn’t going to be any more effective than the previous rate hikes, which means they’re going to have to do it again.”

But Peter said no matter how much they hike, it’s not going to matter. That’s what the markets fail to understand. Everybody is thinking that since the central bank is going to fight even harder to fight inflation, it’s a good sign and the Fed is on course to slay the inflation dragon.

No. The Fed is losing its fight with inflation. That’s why it’s going to try harder. But it’s going to be ineffective. If they couldn’t beat inflation with 5%, they’re not going to beat it with 5.25%.”

It’s not just household debt that’s a problem. The federal government has a debt problem of its own. Federal revenues have collapsed even as the Biden administration keeps right on spending. And why are tax receipts going down? Because the economy is weakening.

The Leading Economic Indicators were down for the 13th straight month. The last time we had a losing streak this started in 2007 and lasted 20 months.

I think we’re going to break that record. And the most ironic part about it is the biggest positive indicator in the LEI, and without this, it would have been lower, is the stock market because the stock market is going up. But I’ve said this before. The stock market going up is not a sign of a strong economy. It’s actually the reverse. The reason the stock market is going up is because investors expect a recession, and they expect the Fed to cut rates at some point due to that recession.”

But Peter emphasized that inflation will still be a problem. In fact, it will get even more out of hand as the Fed starts easing to try to prop up the collapsing economy.

In this podcast, Peter also talked about the debt ceiling and his defamation lawsuit.

https://www.zerohedge.com/markets/peter-schiff-fed-losing-inflation-fight

end

2 Commentaries from: Egon von Greyerz///Matthew Piepenburg via GoldSwitzerland.com, Pam and Russ Martens//JAMES RICKARDS//JOHN RUBINO

EGON VON GREYERZ..

Gold’s Key Indicator

Egon von Greyerz
May 23, 2023

Egon von Greyerz interviews with Kitco at Deutsche Goldmesse, Frankfurt, Germany.

After the recent bank collapses and string of interest rate hikes, Egon von Greyerz shows his deep concerns for the U.S. monetary system.

“It’s not that gold is getting incredibly strong [by itself], it’s that everything else is getting weaker, and that in particular means your currency, whether it’s the world reserve currency, British pound sterling etc.”

In March, SVB Financial Group, the parent company of Silicon Valley Bank (SVB), filed for bankruptcy. Signature Bank, a New York-based regional bank also went under, the third-biggest bank failure in U.S. history. Greyerz argued the moves portend a larger move. “We have reached the end of this monetary era,” said Greyerz. “It doesn’t happen overnight and it’s taken longer than I expected, nevertheless it’s happening and..it’s starting to accelerate.”

Investors have been fleeing the banking sector. Year-to-date the SPDR S&P Bank ETF is down 22%. Gold has benefitted, trading above $2,000 an ounce for much of 2023. The fear trade has also benefited the gold miners, which are up 10% year to date. Coverage of Deutsche Goldmesse 2023 sponsored by Defiance Silver.

0:20 – What do the recent bank failures indicate?
2:00 – End of the monetary era.
3:55 – Dedollarization
6:05 – Why focus on currencies to determine the direction of gold?
7:48 – The problem with service-based economies.

https://lemetropolecafe.com/dospassos.cfm?pid=18440

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

WALL STREET ON PARADE The Fed Has a New Scandal on Its Hands: Colluding with Central Banks to Rig Libor; Evidence Is Being Tweeted Out

https://wallstreetonparade.com/2023/05/the-fed-has-a-new- scandal-on-its-hands-colluding-with-central-banks-to-rig- libor-evidence-is-being-tweeted-out/

END

4. OTHER GOLD/SILVER RELATED COMMENTARIES/…

Vince Lanci: Blackrock Takes Large Silver Position In PSLV – YouTube

A MUST VIEW:

BLACKROCK PURCHASES A HUGE PERCENTAGE OF SPROTT PSLV

2.5% of total issued stock

However in order to obtain the stock, they needed to borrow silver from the SLV

And now the PSLV and Sprott CEF are close to a premium which is exactly what Eric Sprott wants.

At a premium he will go out and buy more silver so as to not dilute shareholders

END

5.IMPORTANT COMMENTARIES ON COMMODITIES: OLIVE OIL

Drought especially in Spain, is plaguing the production of olive oil . Spain produces over 40% of the world’s production

(zerohedge0

Olive Oil Prices Soar As Top Producer Plagued With Drought

TUESDAY, MAY 23, 2023 – 02:45 AM

Spain’s severe drought and parched soils have sent olive oil prices to levels not seen in more than a decade. The surge in olive oil prices, along with fresh produce, is exacerbating already high food prices as the Northern Hemisphere summer starts in less than a month.  

Data from Bloomberg shows that Spanish extra-virgin olive oil prices have jumped 200% since 2020 to 5,870 euros per metric ton — the highest level since 2010. Most of the price surge was recorded in the last year. 

“Output in the country could more than halve this season due to the arid conditions, according to a Spanish farming industry group,” Bloomberg said. Spain accounts for 40% of the world’s supply, indicating prices across Europe and other regions are being pushed higher. 

Europe’s Monitoring Agricultural Resources recently said Spain is under severe weather stress, with barely any rainfall since January. The drought is damaging crops and threatens to drive food prices even higher across Europe. 

Research firm Gro Intelligence penned a note last week that warned the country is in “extreme” drought across top croplands — the highest recorded reading in at least two decades — while soil moisture levels are the lowest since at least 2010. 

Drought conditions in Spain have been exacerbated by above-average temperatures that could be due to an emerging El Nino weather pattern. We warned this might create disruptions in the agricultural industry.

El Nino comes as global food prices remain at decade highs. 

These price levels are dangerous because high inflation can spark social unrest in countries. 

END

end

5 B GLOBAL COMMODITIES ISSUES/FOOD IN GENERAL

6.CRYPTOCURRENCY COMMENTARIES/

We have been highlighting this to you before. Africa’s first test run for a CBDC has failed

(Armstrong)

Africa’s First Test Run For A CBDC has Failed

TUESDAY, MAY 23, 2023 – 03:30 AM

Authored by Martin Armstrong via ArmstrongEconomics.com,

The transition to CBDC in Nigeria did not go as planned. The elites always seek out African nations to use as their test subjects. Nigeria attempted to slowly roll out the program dubbed eNaira built on the Hyperleger Fabric blockchain. The Central Bank of Nigeria (CBN) is solely responsible for running the nodes of this digital currency. Beginning stress tests stated this currency could execute 2,000 transactions per section.  In October 2021, the government began offering incentives to citizens who chose to CBN.

A year later, the country was still hesitant to make the switch so the central bank began implementing forceful measures. In October 2022, the CBN decided to cancel and resign the currency in a “move aimed at restoring the control of the Central Bank of Nigeria (CBN) over currency in circulation.” 

They stated that the original paper notes would only be legal tender until January 31, 2023, leaving the people with no alternative but to convert their cash. Nigerians were no stranger to the concept of currency cancellation as it is something the government has routinely done.

The CBN openly announced that the end goal was to target a 100% cashless society replaced with eNaira. Fewer than 0.5% of Nigerians adopted the eNaira and protests erupted across the nation.

By December 2, 2022, the Central Bank of Nigeria issued a letter to all banking institutes implementing a strict ban on physical cash.

The central bank set a cash withdrawal limit of ₦100,000 ($225) per week for individuals and ₦500,000 ($1,123) for businesses. Citizens wishing to take out larger sums were subject to a processing fee between 5% and 10%. ATMs were limited to ₦20,000 ($45) per day, and only ₦200 ($0.45) notes or lower denominations were available in the machines.

Bloomberg reported that 90% of the country previously used cash for transactions. They did not want to convert to CBDC but were provided with no alternative. Demonetizing the currency reduced available cash from 3.2 trillion nairas to 1 trillion nairas. This led to the central bank creating over 10 billion eNairas. The people are continually protesting these measures as their society which was largely dependent on cash interactions has been destabilized.

This is how it all begins.

They are using Nigeria and other countries as test subjects before rolling out these programs in the West. It is hard for Americans to fathom currency cancelation, as it has never occurred here.

Yet, the Federal Reserve has made it clear that they are looking into this option. Per usual, they market it as a “convenience” for the people.

In truth, it is a way to ensure money stays on the grid under the thumb of government. They will not allow one cent to go untaxed, and as the program expands, they can remove individuals and organizations from participating in society entirely.

END

 1.YOUR EARLY CURRENCY VALUES/GOLD AND SILVER PRICING/ASIAN AND EUROPEAN BOURSE MOVEMENTS/AND INTEREST RATE SETTINGS// TUESDAY MORNING.7:30 AM

ONSHORE YUAN:   CLOSED DOWN AT 7.0547

OFFSHORE YUAN: 7.0661

SHANGHAI CLOSED DOWN 50.23 PTS OR  1.52% 

HANG SENG CLOSED DOWN  246.93  PTS OR  1.25%

2. Nikkei closed DOWN 129.06 PTS OR 1.12%

3. Europe stocks   SO FAR: ALL MOSTLY RED

USA dollar INDEX DOWN  TO  103.39 EURO FALLS TO 1.0779 DOWN 31 BASIS PTS

3b Japan 10 YR bond yield: RISES TO. +.409 Japan buying 100% of bond issuance)/Japanese YEN vs USA cross now at 138.51 /JAPANESE YEN FALLING AS WELL AS LONG TERM 10  YR. YIELDS RISING //EVENTUALLY THIS WILL BREAK 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 DOWN  CHINESE YUAN:  DOWN//  OFF- SHORE: DOWN

3f Japan is to buy INFINITE  TRILLION YEN’S worth of BONDS. Japan’s GDP equals 5 trillion USA

Japan to buy 100% of all new Japanese debt and NOW they will have OVER 50% of all Japanese debt. 

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

3h European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund UP TO +2.4885***/Italian 10 Yr bond yield RISES to 4.338*** /SPAIN 10 YR BOND YIELD RISES TO 3.537…** DANGEROUS//

3i Greek 10 year bond yield RISES TO 3.3865

3j Gold at $1960.10 silver at: 23.14 1 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00

3k USA vs Russian rouble;// Russian rouble UP 0  AND  3 /100        roubles/dollar; ROUBLE AT 80.23//

3m oil into the 72 dollar handle for WTI and 76  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 CONTINUES NIRP. THIS MORNING RAISES AMOUNT OF BONDS THAT THEY WILL PURCHASE UP TO .5% ON THE 10 YR BOND///YEN TRADES TO 138.51  10 YEAR YIELD AFTER BREAKING .54%, RISES TO .409% STILL ON CENTRAL BANK (JAPAN) INTERVENTION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the FRANC. It is not working: USA/SF this 0.9014 as the Swiss Franc is still rising against most currencies. Euro vs SF 0.8701 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc. 

USA 10 YR BOND YIELD: 3.748  UP 3 BASIS PTS…

USA 30 YR BOND YIELD: 3.987 UP 3  BASIS PTS/

USA 2 YR BOND YIELD:  4.378 UP 6 BASIS PTS

USA DOLLAR VS TURKISH LIRA: 19.85…(TURKEY SET TO BLOW UP FINANCIALLY)

GREAT BRITAIN/10 YEAR YIELD: UP 2 BASIS PTS AT 4.170 UP 10 BASIS PTS

end

2.  Overnight:  Newsquawk and Zero hedge:

 2. a)FIRST, ZEROHEDGE (PRE USA OPENING// MORNING

Futures Slide As Debt Ceiling Talks Enter 11th Hour, European PMIs Crumble

TUESDAY, MAY 23, 2023 – 08:09 AM

US equity futures are lower, as treasuries also dropped across the curve, with the two-year yield rising for an eighth day, after the latest round of talks between Joe Biden and Kevin McCarthy Monday ended without a deal, while Eurozone manufacturing activity shrank at the fastest pace since the pandemic shuttered factories three years ago, threatening to sap momentum from an economy driven by services. The dollar rose as did bitcoin, gold fell again while oil reversed earlier losses and jumped to session highs after Saudi Arabia’s energy minister told oil speculators to “watch out” just over a week before the OPEC+ alliance is due to meet. 

At 7:45am ET, US equity futures dropped 0.2% to session lows, dropping back under  4,200, whlie the Nasdaq was shocking in the red perhaps finally realizing where the 10Y yield is. Lowe’s slipped 1.5% in pre-market trading after cutting its sales outlook. In Europe, a rout in luxury-goods makers including Hermes International and LVMH dragged the Stoxx 600 lower after Deutsche Bank AG analysts warned the sector is crowded and valuations are lofty. Tokyo’s Topix index fell for the first time in eight days, with semiconductor-related stocks turning lower on news that Japan’s tighter export controls will take effect July 23.

In premarket trading, one of the last major retailers left to report Lowe’s slumped after it cut its comparable sales forecast for the full year. Here are the other notable premarket movers:

• Yelp shares jump 11% in premarket trading after TCS Capital Management said it believes “several buyers” would pay a premium for the company as the activist investor confirmed it had written to the board urging the exploration of a sale. 
• Zoom fluctuated in US premarket trading. The video communications platform boosted its revenue guidance for the full year and management outlined plans to incorporate artificial intelligence into its products.
• PacWest shares surged in premarket trading Tuesday, set to extend Monday’s gains. The surge was fueled by the bank’s sale of a $2.6 billion portfolio of 74 real estate construction loans to Kennedy Wilson for about $2.4 billion.
• Microvast plunged as much as 24%, following the US Energy Department’s cancellation of a planned $200 million grant to the lithium-ion battery maker amid criticism over ties to China.
• Chimerix shares jump 5% in premarket after Baird Equity Research initiates coverage on the biopharmaceutical company with an outperform recommendation. The broker said Chimerix has a lead agent for the treatment of H3 K27M-mutant glioma that is potentially first in class.
• Tegna shares rose 2.3% in extended trading after the company announced share a share buyback plan and said its merger with Standard General was terminated.

The neverending debt drama continued overnight after Joe Biden and House Speaker Kevin McCarthy called their discussions on Monday productive, but an agreement remains elusive. That left traders on tenterhooks with only a few days left before June 1, when Treasury Secretary Janet Yellen said her department may run out of cash. Any deal would have to be approved by Congress before then.

“I think a default is very unlikely as I don’t think either Democrats and Republicans want it, but we could get close to it and the deadline,” Fabiana Fedeli, chief investment officer for equities and multi-asset at M&G Plc, said on Bloomberg TV. “The closer we get to the deadline the more nervous clients will get. You could have a move towards safer havens, perhaps the long end of yield curve” she warned.

Today’s macro focus will be May PMIs at 9.45am, where consensus estimates the Mfg PMI to print to dip to 50.0 from 50.2 while the Services PMI is also expected to drop to 52.5 from 53.6 prior.

European stocks slumped as a rout in luxury-goods makers including Hermes International and LVMH dragged local markets lower after Deutsche Bank AG analysts warned the sector is crowded and valuations are lofty. The Stoxx 600 was down 053% with consumer products, retailers and industrials the worst-performing sectors. Among individual stock movers, Vivendi SE tumbled after billionaire Vincent Bollore sold shares of the media conglomerate, a sign that he’s isn’t planning a buyout. Swiss asset manager Julius Baer Group Ltd. sank after disappointing results. Here are the most notable European movers:

• European paper and pulp manufacturers gain after their Brazilian peer Suzano raised June pulp prices in Asia by $30 per ton, according to a Bloomberg report
• Qiagen rise as much as 3.3% after Morgan Stanley upgraded the diagnostics and laboratory technology firm to overweight from equal-weight, saying the firm’s outlook is being undervalued
• Cranswick shares rise as much as 5.9%, making it the top performer in the FTSE 250 Index on Tuesday, after the meat supplier reported sales and profit for the full year that beat estimates
• SSP Group shares rise as much as 5.2% after the food-service company reported first-half revenue that beat estimates. Analysts highlighted new business wins and SSP’s trading momentum
• Banca Profilo shares jump as much as 9.1% after Twenty First Capital Sas reaches an agreement with Banca Profilo’s controlling shareholder Arepo BP SpA to buy a 29% stake in the bank
• Crayon gains as much as 16% after the Norwegian IT firm reported 1Q results, including gross profit growth of 31%. DNB says gross profit, Ebitda and operating free cash flow all beat estimates
• BW LPG shares gain as much as 10%, hitting a record high, after the Norwegian LPG carrier firm’s 1Q results beat expectations, with DNB calling the report solid and a proposed dividend “hefty”
• Julius Baer shares decline as much as 8.5%, the most in a year, after it reported assets under management of CHF429 billion as of the end of April, which analysts said was below expectations
• Vivendi falls in Paris trading after billionaire Vincent Bollore sold shares in the media conglomerate, damping optimism among speculators that he would launch a buyout offer
• RS Group shares decline as much as 5.6%, hitting the lowest since June 2022, after the outlook from the industrial and electronic products distributor pointed to a slowdown in its broader markets

Earlier in the session, Asian stocks were mized as participants digested the latest from the debt limit negotiations with the meeting between US President Biden and House Speaker McCarthy said to be productive but still lacked any major breakthrough.

• China’s CSI 300 Index falls 1.4% to close at its lowest since Jan. 4, with losses steepening in afternoon trading led by telecoms and financials. Benchmark about 1% away from wiping out 2023 gains; Shanghai Composite drops 1.5%. Hang Seng Index down as much as 1.6%, Hang Seng Tech Tech -1.5%. Mainland stocks was pressured after Chinese press reports noted expectations for the PBoC’s benchmark lending rates to remain unchanged for some time and after the US denied it was planning to lift sanctions on China’s defence minister.
• Tokyo’s Topix index fell for the first time in eight days, with semiconductor-related stocks turning lower on news that Japan’s tighter export controls will take effect July 23. Toyota Motor Corp. tumbled in the final minute of trading. Japan’s Nikkei 225 initially climbed to its highest level since August 1990 and was on course to match its longest win streak in around four years, before eventually deteriorating in afternoon trade.
• ASX 200 was kept afloat but with the upside capped by weakness in the consumer sectors and after Australia’s Flash Manufacturing PMI remained in a contraction.
• Key stock gauges in India rose for the third successive day amid continued buying by overseas investors and gains in the Adani pack. The NSE Nifty 50 Index advanced 0.2% to 18,348 in Mumbai, while the S&P BSE Sensex closed higher by 18.1 points at 61,981.79. Adani Group stocks clocked third straight day of gains following the observations made by a Supreme Court-appointed panel in relation to stock price manipulation. Adani Ports recovered all of its post-Hindenburg Report losses during the day. of consumer-facing firms and lenders were also contributors to the rally in Nifty 50 and the Sensex indexes, and helped them outperform most Asian peers. The MSCI Asia-Pacific Index closed 0.6% lower.   Adani Enterprises contributed the most to the Nifty 50’s gain, surging 13.2%. Out of 50 shares in the Nifty index, 28 rose, while 22 fell.

In FX, the dollar index rose 0.2%, hovering near its two-month high, after talks between Joe Biden and Kevin McCarthy Monday ended without a deal, though they called their discussions productive and vowed to keep negotiating. The Japanese yen is the best performer among the G-10’s, rising 0.2% versus the greenback. The Norwegian krone is the weakest. GBP/USD fell as much as 0.5% to 1.2373, its lowest since April 21 after disappointing PMI prints; EUR/GBP trades 0.1% higher at 0.8703.

In rates, treasuries added to Monday’s losses with front-end underperforming led by two-year Treasury yields rising another 5bps to 4.36% and flattening the curve even as stock futures also dropped as European names stumbled after euro-zone manufacturing activity shrank at the fastest pace since the pandemic. Treasury yields cheaper by up to 7bp across front-end of the curve with 2s10s, 5s30s spreads flatter by ~4bp on the day; 10- year yields around 3.745%, cheaper by ~ 3bp with gilts following suit, lagging by 1bp and 5.5bp in the sector. European bonds are also in the red and Gilts also fell, underperforming their European counterparts, as UK services PMI data showed cost pressures in the services sector increased at the fastest pace in three months. The Treasury auction cycle begins 2-year note sale, and Fed Chair Powell reportedly will make an unscheduled appearance.   $42b 2-year note auction at 1pm New York time begins cycle that also includes 5- and 7-year sales Wednesday and Thursday. WI 2-year yield at 4.335% is ~37bp cheaper than last month’s, which tailed by 0.3bp.

In commodities, crude futures rose with Brent trading near $76.70 of session highs after Saudi Arabia’s energy minister threatened bearish oil speculators. Spot gold falls 0.6% to $1,960.

Bitcoin is bid and has convincingly surmounted the USD 27k handle to a USD 27.47k peak as we await a busy US agenda where the debt ceiling, Powell and PMIs are all potential macro movers.

To the day ahead now, and the main highlight will be the flash PMIs from Europe and the US. Other US data releases include new home sales for April, and the Richmond Fed’s manufacturing index for May. From central banks, we’ll hear from ECB Vice President de Guindos, the ECB’s Muller, Villeroy and Nagel, the Fed’s Logan and the BoE’s Haskel.

Market Snapshot

• S&P 500 futures little changed at 4,202.75
• MXAP down 0.4% to 162.32
• MXAPJ down 0.4% to 514.15
• Nikkei down 0.4% to 30,957.77
• Topix down 0.7% to 2,161.49
• Hang Seng Index down 1.3% to 19,431.25
• Shanghai Composite down 1.5% to 3,246.24
• Sensex up 0.4% to 62,180.82
• Australia S&P/ASX 200 little changed at 7,259.89
• Kospi up 0.4% to 2,567.55
• STOXX Europe 600 down 0.3% to 467.52
• German 10Y yield little changed at 2.46%
• Euro down 0.1% to $1.0799
• Brent Futures down 0.2% to $75.87/bbl
• Gold spot down 0.6% to $1,960.23
• U.S. Dollar Index up 0.16% to 103.37

Top Overnight News

• Saudi Arabia’s top energy official issued another warning to oil short-sellers, just over a week before the OPEC+ alliance is due to meet. “I keep advising them that they will be ouching — they did ouch in April,” Saudi Energy Minister Prince Abdulaziz bin Salman said at the Qatar Economic Forum in Doha on Tuesday. “I would just tell them: Watch out!” BBG
• Japan’s flash PMIs improve in May, with manufacturing rising to 50.8 (up from 49.5 in April) and services jumping to 56.3 (up from 55.4 in April). S&P
• Taiwan’s industrial production sinks by far more than anticipated in April, coming in -22.8% (vs. the Street -13% and down from -16% in March) (Bloomberg); shipping container production slumps dramatically amid a steep pullback in the global transport industry as consumers globally cut back on discretionary goods purchases. FT
• The US said it has no plans to lift sanctions on Chinese Defense Minister Li Shangfu, appearing to backtrack on comments made a day earlier by President Joe Biden while he attended the Group of Seven summit in Japan. BBG
• Europe’s flash PMIs for May are mixed, with a steep drop in manufacturing (44.6, down from 45.8 in April and below the Street’s 46 consensus) while services hold in better (55.9, down from 56.2 in April but ahead of the Street’s 55.5 forecast). S&P
• Biden/McCarthy meeting is called “productive” and “better than any other”, but a deal still hasn’t been reached, while the “X-date” fast approaches (Yellen reiterated the June 1 ceiling breach date). Politico
• Private equity groups are increasingly selling shares in portfolio companies at a discount to the price at which they went public, in a sign they do not expect stock market valuations to regain their previous highs soon. Private equity-backed follow-ons in the US are up 180 per cent year on year, but almost two-thirds of the deals were priced below the companies’ IPO. FT
• Deere will sell $36 billion of medium-term notes through John Deere Financial. It filed to sell notes ranking as senior or subordinated due nine months or more from the date of issue. BBG
• Activist investor TCS Capital Management has built a stake in Yelp and is calling on the service-recommendation site to explore strategic alternatives including a sale, people familiar with the matter said. WSJ
• HF VIPS: Mega-cap tech remains at the top of Goldman’s list of popular hedge fund long positions. MSFT, AMZN, META, and GOOGL remain the top four stocks in the VIP list this quarter, with the Info Tech and Comm Services sectors accounting for nearly half of the list. The VIP list contains the 50 stocks that appear most often among the top 10 holdings of fundamental hedge funds. The basket has outperformed the S&P 500 in 58% of quarters since 2001 with an average quarterly excess return of 37 bp. 13 new constituents: AER, AVGO, DDOG, FCNCA, GDDY, IAC, ISEE, JPM, LLY, NEWR, SPOT, TTWO, WMT. Read Ben Snider and team’s HF trend monitor HERE.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were indecisive as participants digested the latest from the debt limit negotiations with the meeting between US President Biden and House Speaker McCarthy said to be productive but still lacked any major breakthrough. ASX 200 was kept afloat but with the upside capped by weakness in the consumer sectors and after Australia’s  Flash Manufacturing PMI remained in a contraction. Nikkei 225 initially climbed to its highest level since August 1990 and was on course to match its longest win streak in around four years, before eventually deteriorating in afternoon trade. Hang Seng and Shanghai Comp. were subdued following Hong Kong’s failure to sustain the early tech-led momentum from China’s approval of 86 domestic online games in May, while the mainland was pressured after Chinese press reports noted expectations for the PBoC’s benchmark lending rates to remain unchanged for some time and after the US denied it was planning to lift sanctions on China’s defence minister.

Top Asian News

• Chinese press reports stated that the PBoC’s Loan Prime Rates are expected to remain unchanged for some time and noted the LPR faces little downside due to the economic recovery and banks’ tight NIM.
• Russian PM Mishustin said on his visit to China that Russia-China ties will positively impact both countries and 2023 trade turnover between the countries could reach USD 200bln, according to TASS and RIA.

European bourses are pressured, Euro Stoxx 50 -0.5%, with the exception of the FTSE 100 +0.1% which is deriving some support from regional banking names on post-PMI hawkish BoE implications. Back to Europe, bourses came under pressure from the region’s PMIs as it has hawkish ECB implications and with the Manufacturing sector still under marked pressure. Sectors are somewhat mixed with Real Estate bolstered while Luxury names are tarnished after a cautious note from Deutsche Bank. Stateside, futures are essentially flat with the ES pivoting 4200 as we await more substantive debt ceiling updates and remarks from Fed’s Powell. Lowe’s Companies Inc (LOW) Q1 2023 (USD): adj. EPS 3.67 (exp. 3.44), Revenue 22.35bln (exp. 21.6bln); SSS -4.3% (exp. -3.2%); updates outlook
EU is seeking to reimpose a EUR 14.3bln tax demand on Apple (AAPL), via FT; Competition Commissioner Vestager is looking to overturn the EU’s 2020 legal defeat over a tax bill to Ireland.

Top European News

• UK Chancellor Hunt will meet with food manufacturers today to ask for help from the industry to ease the pressure on households and steps up pressure on supermarkets to rein in soaring prices, according to FT.
• Hungary is accelerating discussions with Brussels to release nearly a third of its EU funding after a long stand-off, but officials warned funds will likely remain frozen because of differences over reform efforts, according to FT.

FX

• DXY underpinned after productive US debt ceiling discussions as the index meanders around a Fib at 103.330.
• Yen regains poise with some traction from upbeat Japanese PMIs and USD/JPY running into supply ahead of 139.00.
• Aussie underperforms either side of 0.6650 as iron ore slides and the Yuan depreciates below 7.0000.
• Kiwi loses traction on the eve of RBNZ irrespective of hawkish shift in pricing, with NZD/USD at the lower end of 0.6302-0.6254 bounds.
• Euro keeps tabs on 1.0800 as strength in EZ services counters manufacturing deficiencies, but Pound waning on 1.2400 handle as UK PMIs miss consensus across the board.
• PBoC set USD/CNY mid-point at 7.0326 vs exp. 7.0327 (prev. 7.0157)

Fixed Income

• Debt futures plumb new cycle lows as bearish momentum continues to build.
• Bunds down to 133.69, Gilts 97.22 and T-note 113-09 ahead of US prelim PMIs, new home sales and Fed’s Logan all ahead of USD 42bln 2 year supply.
• Mixed EU PMIs largely shrugged aside along with UK and German auctions awaiting more talks on the US debt ceiling.

Commodities

• Crude benchmarks are in close proximity to the unchanged mark after Monday’s circa. USD 0.40/bbl firmer settlement with the complex focused on Energy Officials at the Qatar Economic Forum.
• Currently, WTI and Brent are incrementally softer and around the mid-point of USD 71.71-72.62/bbl and USD 75.65-76.53/bbl parameters.
• Saudi Energy Minister says I keep telling speculators they will be “ouching” and they did hurt in April, I would tell them to watch out.
• Russian Deputy PM Novak says growth of Russian energy shipments to China at 40% in 2023, via Interfax.
• Spot gold slips as the USD remains underpinned though the yellow metal remains above Friday’s USD 1954/oz trough; base metals similarly dented on the USD and with continued attention on China’s recent sub-par metrics.

Debt Ceiling News

• US President Biden said that he is optimistic they will make some progress on the debt ceiling and that they need a bipartisan agreement and sell it to constituencies, while he added that they need to cut spending and should look at tax loopholes and that the wealthy pay their fair share, according to Reuters. US President Biden later commented that he concluded a productive meeting with House Speaker McCarthy about the need to prevent a default and reiterated once again that default is off the table, while they will continue to discuss the path forward.
• US House Speaker McCarthy said after the meeting with President Biden that he felt they had a productive discussion but don’t have an agreement yet and that staff will continue discussions with negotiators instructed to come back together and find common ground. McCarthy also noted the tone of the conversation was better than any previous time and believes they can get a deal done. Furthermore, he is confident that President Biden wants a deal, while they both agreed that they want to reach an agreement and will talk daily until they get this done.
• White House debt limit negotiators returned to Capitol Hill to resume talks but later declined to comment after the talks concluded for the night, according to Bloomberg.
• US Treasury Secretary Yellen reiterated that debt-limit measures could still run out as soon as June 1st and that it is highly likely cash will run out by early June, according to a statement from the Treasury Department.
• “Sources close to McCarthy said the House could pass a short-term boost if there was a deal and the Treasury Department needed a very brief patch to avoid default, But barring that, don’t expect it to happen”, according to Punchbowl.

Geopolitics

• Twitter source noted a drone attack was said to have targeted the departments of the Ministry of Internal Affairs and FSB in Russia’s Belgorod, while air raid alerts sounded in central and western Ukraine due to Shahed drone activity.
• Russia’s Belgorod regional Governor said a counter-terrorism operation continues and a return to homes in the region’s Gaivoron district is not possible yet, according to Reuters.
• Hungarian PM Orban says the nation will continue to block EU Ukraine aid and the 11th sanctions package; says Ukraine must stop backlisting OTP Bank.

US event calendar

• 08:30: May Philadelphia Fed Non-Manufactu, prior -22.8
• 09:45: May S&P Global US Manufacturing PM, est. 50.0, prior 50.2
• 09:45: May S&P Global US Services PMI, est. 52.5, prior 53.6
• 09:45: May S&P Global US Composite PMI, est. 53.0, prior 53.4
• 10:00: May Richmond Fed Index, est. -8, prior -10
• 10:00: April New Home Sales MoM, est. -2.6%, prior 9.6%
• 10:00: April New Home Sales, est. 665,000, prior 683,000

Central Bank Speakers

• 09:00: Fed’s Logan

DB’s Jim Reid concludes the overnight wrap

Since it’s AI week, it’s probably worth mentioning that there was a very brief selloff in markets yesterday after unconfirmed reports circulated on Twitter about an explosion near the US Pentagon. For all of a few minutes after the US open, that saw the S&P 500 shed around a quarter of a per cent, whilst yields on 10yr Treasuries moved about 4bps lower as well, even though nothing had been officially confirmed. The tweet was deleted shortly after and the Pentagon confirmed that no explosion had taken place, meaning that markets snapped back those moves in short order. But given the suggestions that the initial photo might have been AI-generated, it just shows the potential pitfalls for markets if fake news driven by AI can cause concrete movements in asset prices. That could be a growing issue over the months and years ahead, particularly if the technology is able to provide increasingly convincing images and that’s before we get to deep fakes. Indeed who knows if it’s really us typing this.

Actually typing is a bit more difficult than normal this morning as I burnt my hand yesterday. File this under first world problems but a power cut/surge blew our boiling water tap yesterday. As we don’t have a kettle I had to make a coffee by putting a pan in the oven (normal for our type of oven when cooking). I took it out carefully with the oven glove and then went over to get my cup. In the 10 seconds I was away I forgot the pan was piping hot and picked it up to pour and scolded my hand.

That’s how you maybe prove this isn’t AI as no robot would be so stupid. Anyway, whilst AI might be the long-term focus right now, in the short term the main issue for investors continues to be the debt ceiling, as the clock ticks towards a potential deadline in early June. Last night’s meeting between Biden and McCarthy seemed to be constructive with Speaker McCarthy saying, “The tone tonight was better than any other time we have had discussions” and President Biden adding “that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement.” This meeting came shortly after Treasury Secretary Yellen’s announcement that it was now “highly likely” that the Treasury would run out of cash in early June with a default possible as soon as June 1. Prior to that meeting President Biden and Speaker McCarthy told reporters that a deal needed to get done in the next few days to avoid hitting the debt ceiling, with the latter saying “decisions have to start being made.”

With the issue still not resolved at yesterday’s close, markets grew increasingly alarmed about the potential implications of a default, and yields on short-term T-bills continued to rise. For instance, the 1-month T-bill yield surged by +13.2bps yesterday to 5.46%, which was just under the highs reached early last week. This morning we’ve reversed yesterday’s losses on the overnight headlines from Biden and McCarthy

As investors were focusing on the debt ceiling, US Treasuries came under further pressure from a collection of hawkish Fed speakers yesterday. That started with St Louis Fed President Bullard (non-voter), one of the most hawkish FOMC members, who said that “I think we’re going to have to grind higher with the policy rate”, and that his thinking was for “two more moves this year”. Earlier in the day, Minneapolis Fed President Kashkari (voter) had also sounded open to another hike in June, saying that “I think right now it’s a close call, either way, versus raising another time in June or skipping.” Later on however, San Francisco Fed President Daly (non-voter) didn’t give an obvious signal, saying that there was still a lot of time to collect information ahead of the June meeting.

With Fed speakers sounding more hawkish, investors continued to dial up their expectations for the fed funds rate over the months ahead. For instance, the chances of a June hike moved back up to 22.5%. And the rate priced in for the December meeting was up +6.1bps to a post-SVB high of 4.696% (just above the midpoint of its intra-day range of 3.40% to 5.56% this year), which speaks to the increasing scepticism that the Fed will be able to cut rates this calendar year. In turn, that meant yields on 10yr Treasuries rose for a 7th consecutive session, rising +4.2bps to 3.715%. That’s the longest string of increases in over a year, having been at just 3.38% before this current run began a week and a half ago.

Equities were more resilient than bonds yesterday though also seemed to be waiting for the resolution of the Biden-McCarthy talks last night. The S&P 500 closed largely unchanged (+0.02%) but tech stocks again outperformed as the NASDAQ (+0.50%) hit another post-August high, which takes its YTD gains to +21.54%. Back in Europe, equities were broadly flat as well, with the STOXX 600 up +0.01%. However, there was a massive outperformance in Greece, where the Athens Stock Exchange General Index surged +6.09% after Sunday’s election. That was the index’s best daily performance since 9 November 2020, back when Pfizer announced that their vaccine had an effectiveness of over 90%, and global risk assets soared as investors saw a path out of the pandemic. Similarly, the Greek 10yr government bond yield came down -14.2bps, which contrasted with the rest of Europe where yields on 10yr bunds (+3.1bps), OATs (+2.8bps) and BTPs (+4.2bps) all moved higher.

In Asia the Nikkei (+0.64%) is leading gains, pushing towards a fresh 33-year high aided by a weaker yen and stronger PMI data (more below) while the KOSPI (+0.62%) is also trading in the green. Elsewhere, Chinese stocks are losing ground with the Shanghai Composite (-0.58%), the CSI (-0.53%), and the Hang Seng (-0.34%) all edging lower. Outside of Asia, US stock futures are reflecting a more positive tone on the debt ceiling talks with the S&P 500 (+0.21%) and NASDAQ 100 (+0.28%) trading up as we type.

Coming back to Japan, the manufacturing sector witnessed an expansion for the first time in 7 months as the PMI came in at 50.8 in May, up from a reading of 49.5 in April, as output and new orders rose for the first time in 13 months. At the same time, service-sector activity expanded at the strongest pace on record in May, advancing to 56.3, from 55.4 in April, indicating that the post-COVID recovery is showing signs of continuing momentum.

Elsewhere, Australia’s manufacturing sector continued to contract in May, with the PMI remaining unchanged at 48.0, marking the joint-lowest reading since May 2020. The survey also showed that the services PMI fell from 53.7 in April to 51.8 in May with the composite index edging lower from 53.0 in April to 51.2 in May.

Finally, there were some fresh developments in the 2024 US presidential race yesterday, as Senator Tim Scott announced his candidacy on the Republican side. But so far at least, polls continue to suggest that former President Trump is the overwhelming frontrunner for the nomination ahead, with the RealClearPolitics average currently placing Trump at 56%, and Florida Governor Ron DeSantis in second place on 19%. Speaking of DeSantis, several media outlets including CNN and CBS have reported sources saying that he’ll will formally announce a run tomorrow, so the field of candidates is beginning to emerge now.

To the day ahead now, and the main highlight will be the flash PMIs from Europe and the US. Other US data releases include new home sales for April, and the Richmond Fed’s manufacturing index for May. From central banks, we’ll hear from ECB Vice President de Guindos, the ECB’s Muller, Villeroy and Nagel, the Fed’s Logan and the BoE’s Haskel.

2 b) NOW NEWSQUAWK (EUROPE/REPORT)/ASIA REPORT

Equities & Fixed slip on PMIs; Data, Powell & Debt Ceiling updates due – Newsquawk US Market Open

TUESDAY, MAY 23, 2023 – 06:14 AM

• European bourses are pressured on continuing Manufacturing PMI softness alongside hawkish pricing implications
• Stateside, futures are essentially flat as we await further substantive debt ceiling updates and remarks from Fed’s Powell
• Biden said he is optimistic on making debt ceiling progress; McCarthy described the meeting as a productive discussion
• DXY is underpinned and benefitting further from EUR & GBP weakness post-PMIs while the JPY bucks the trend
• Crude is attentive to key officials while metals are dented by the USD; Saudi Energy Minister said “I keep telling speculators they will be ouching” and they did in April
• Fixed benchmarks are pressured on the hawkish PMI implications for the BoE & ECB; USTs directionally in-fitting
• Looking ahead, highlights include US PMIs (Flash), US Home-Sales. Speeches from Fed’s Logan, ECB’s Nagel, Villeroy & Enria. Supply from the US.

More Newsquawk in 3 steps:

1. Subscribe to the free premarket movers reports

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EUROPEAN TRADE

EQUITIES

• European bourses are pressured, Euro Stoxx 50 -0.5%, with the exception of the FTSE 100 +0.1% which is deriving some support from regional banking names on post-PMI hawkish BoE implications.
• Back to Europe, bourses came under pressure from the region’s PMIs as it has hawkish ECB implications and with the Manufacturing sector still under marked pressure.
• Sectors are somewhat mixed with Real Estate bolstered while Luxury names are tarnished after a cautious note from Deutsche Bank.
• Stateside, futures are essentially flat with the ES pivoting 4200 as we await more substantive debt ceiling updates and remarks from Fed’s Powell.
• Lowe’s Companies Inc (LOW) Q1 2023 (USD): adj. EPS 3.67 (exp. 3.44), Revenue 22.35bln (exp. 21.6bln); SSS -4.3% (exp. -3.2%); updates outlook
• EU is seeking to reimpose a EUR 14.3bln tax demand on Apple (AAPL), via FT; Competition Commissioner Vestager is looking to overturn the EU’s 2020 legal defeat over a tax bill to Ireland.
• Click here and here for a recap of the main European updates.
• Click here for more detail.

FX

• DXY underpinned after productive US debt ceiling discussions as the index meanders around a Fib at 103.330.
• Yen regains poise with some traction from upbeat Japanese PMIs and USD/JPY running into supply ahead of 139.00.
• Aussie underperforms either side of 0.6650 as iron ore slides and the Yuan depreciates below 7.0000.
• Kiwi loses traction on the eve of RBNZ irrespective of hawkish shift in pricing, with NZD/USD at the lower end of 0.6302-0.6254 bounds.
• Euro keeps tabs on 1.0800 as strength in EZ services counters manufacturing deficiencies, but Pound waning on 1.2400 handle as UK PMIs miss consensus across the board.
• PBoC set USD/CNY mid-point at 7.0326 vs exp. 7.0327 (prev. 7.0157)
• Click here for more detail.
• Click here for the notable FX expiries for today’s NY cut.

FIXED INCOME

• Debt futures plumb new cycle lows as bearish momentum continues to build.
• Bunds down to 133.69, Gilts 97.22 and T-note 113-09 ahead of US prelim PMIs, new home sales and Fed’s Logan all ahead of USD 42bln 2 year supply.
• Mixed EU PMIs largely shrugged aside along with UK and German auctions awaiting more talks on the US debt ceiling.
• Click here for more detail.

COMMODITIES

• Crude benchmarks are in close proximity to the unchanged mark after Monday’s circa. USD 0.40/bbl firmer settlement with the complex focused on Energy Officials at the Qatar Economic Forum.
• Currently, WTI and Brent are incrementally softer and around the mid-point of USD 71.71-72.62/bbl and USD 75.65-76.53/bbl parameters.
• Saudi Energy Minister says I keep telling speculators they will be “ouching” and they did hurt in April, I would tell them to watch out.
• Russian Deputy PM Novak says growth of Russian energy shipments to China at 40% in 2023, via Interfax.
• Spot gold slips as the USD remains underpinned though the yellow metal remains above Friday’s USD 1954/oz trough; base metals similarly dented on the USD and with continued attention on China’s recent sub-par metrics.
• Click here for more detail.

NOTABLE HEADLINES

• UK Chancellor Hunt will meet with food manufacturers today to ask for help from the industry to ease the pressure on households and steps up pressure on supermarkets to rein in soaring prices, according to FT.
• Hungary is accelerating discussions with Brussels to release nearly a third of its EU funding after a long stand-off, but officials warned funds will likely remain frozen because of differences over reform efforts, according to FT.

DATA RECAP

• UK PSNB Ex Banks GBP (Apr) 25.560B GB vs. Exp. 19.75B GB (Prev. 21.53B GB, Rev. 20.843B GB); PSNB, GBP (Apr) 24.739B GB (Prev. 20.709B GB, Rev. 20.022B GB)
• UK Flash Composite PMI (May) 53.9 vs. Exp. 54.6 (Prev. 54.9); Services PMI (May) 55.1 vs. Exp. 55.5 (Prev. 55.9); Manufacturing PMI (May) 46.9 vs. Exp. 48.0 (Prev. 47.8). “growth spurt is driving renewed inflationary pressures…these survey results are nothing but hawkish in suggesting the Bank of England has more work to do to quash stubbornly high inflationary pressures in the services economy.”
• French HCOB Composite Flash PMI (May) 51.4 vs. Exp. 52.0 (Prev. 52.4); Manufacturing Flash PMI (May) 46.1 vs. Exp. 46.0 (Prev. 45.6); Services Flash PMI (May) 52.8 vs. Exp. 54.0 (Prev. 54.6)
• German HCOB Composite Flash PMI (May) 54.3 vs. Exp. 53.5 (Prev. 54.2); Manufacturing Flash PMI (May) 42.9 vs. Exp. 45.0 (Prev. 44.5); Services Flash PMI (May) 57.8 vs. Exp. 55.3 (Prev. 56.0)
• EU HCOB Composite Flash PMI (May) 53.3 vs. Exp. 53.5 (Prev. 54.1); Manufacturing Flash PMI (May) 44.6 vs. Exp. 46.0 (Prev. 45.8); Services Flash PMI (May) 55.9 vs. Exp. 55.6 (Prev. 56.2). “The ECB “will have a headache with the PM price data. This is because selling prices in the services sector actually rose more than in the previous month.”

NOTABLE US HEADLINES

• Fed’s Kashkari (voter) said rates may have to rise from here and that he doesn’t want to say that they are done hiking rates, while he noted that they may not raise rates as aggressively or quickly. Kashkari added he is confident the US can get back to a pre-pandemic economy and said they have a solid job market and are on track to reduce inflation.
• US President Biden said that he is optimistic they will make some progress on the debt ceiling and that they need a bipartisan agreement and sell it to constituencies, while he added that they need to cut spending and should look at tax loopholes and that the wealthy pay their fair share, according to Reuters. US President Biden later commented that he concluded a productive meeting with House Speaker McCarthy about the need to prevent a default and reiterated once again that default is off the table, while they will continue to discuss the path forward.
• US House Speaker McCarthy said after the meeting with President Biden that he felt they had a productive discussion but don’t have an agreement yet and that staff will continue discussions with negotiators instructed to come back together and find common ground. McCarthy also noted the tone of the conversation was better than any previous time and believes they can get a deal done. Furthermore, he is confident that President Biden wants a deal, while they both agreed that they want to reach an agreement and will talk daily until they get this done.
• White House debt limit negotiators returned to Capitol Hill to resume talks but later declined to comment after the talks concluded for the night, according to Bloomberg.
• White House and GOP had reportedly agreed to cut excess COVID funding as talks progress, according to sources cited by Fox Business News prior to the Biden-McCarthy meeting.
• US Treasury Secretary Yellen reiterated that debt-limit measures could still run out as soon as June 1st and that it is highly likely cash will run out by early June, according to a statement from the Treasury Department.
• “Sources close to McCarthy said the House could pass a short-term boost if there was a deal and the Treasury Department needed a very brief patch to avoid default, But barring that, don’t expect it to happen”, according to Punchbowl.
• US National Security Advisor Sullivan has reportedly asked and suggested that President Biden and Chinese President Xi speak on the phone in June and for in-person talks to occur in September, via SGH Macro. Before this, on May 25th/26th, China’s Commerce Minister Wentao is to hold talks with US Commerce Secretary Raimondo and USTR Tai; reportedly, the Chinese side does not have particularly high hopes for this meeting. US and Chinese Defence Ministers are expected to speak on June 2nd-4th. Click here for details & context.
• China’s new ambassador to the US is set to arrive in Washington to take up his position today, according to WSJ
• Click here for the US Early Morning Note.

GEOPOLITICS

• Twitter source noted a drone attack was said to have targeted the departments of the Ministry of Internal Affairs and FSB in Russia’s Belgorod, while air raid alerts sounded in central and western Ukraine due to Shahed drone activity.
• Russia’s Belgorod regional Governor said a counter-terrorism operation continues and a return to homes in the region’s Gaivoron district is not possible yet, according to Reuters.
• Hungarian PM Orban says the nation will continue to block EU Ukraine aid and the 11th sanctions package; says Ukraine must stop backlisting OTP Bank.

CRYPTO

• Bitcoin is bid and has convincingly surmounted the USD 27k handle to a USD 27.47k peak as we await a busy US agenda where the debt ceiling, Powell and PMIs are all potential macro movers.

APAC TRADE

• APAC stocks were indecisive as participants digested the latest from the debt limit negotiations with the meeting between US President Biden and House Speaker McCarthy said to be productive but still lacked any major breakthrough.
• ASX 200 was kept afloat but with the upside capped by weakness in the consumer sectors and after Australia’s Flash Manufacturing PMI remained in a contraction.
• Nikkei 225 initially climbed to its highest level since August 1990 and was on course to match its longest win streak in around four years, before eventually deteriorating in afternoon trade.
• Hang Seng and Shanghai Comp. were subdued following Hong Kong’s failure to sustain the early tech-led momentum from China’s approval of 86 domestic online games in May, while the mainland was pressured after Chinese press reports noted expectations for the PBoC’s benchmark lending rates to remain unchanged for some time and after the US denied it was planning to lift sanctions on China’s defence minister.

NOTABLE ASIA-PAC HEADLINES

• Chinese press reports stated that the PBoC’s Loan Prime Rates are expected to remain unchanged for some time and noted the LPR faces little downside due to the economic recovery and banks’ tight NIM.
• Russian PM Mishustin said on his visit to China that Russia-China ties will positively impact both countries and 2023 trade turnover between the countries could reach USD 200bln, according to TASS and RIA.

DATA RECAP

• Japanese Manufacturing PMI Flash SA (May) 50.8 (Prev. 49.5); Services PMI Flash SA (May) 56.3 (Prev. 55.4)
• Australian Manufacturing PMI (May P) 48.0 (Prev. 48.0); Services PMI (May P) 51.8 (Prev. 53.7)

2 c. ASIAN AFFAIRS

ASIAN AND AUSTRALIAN CLOSINGS//EUROPE OPENING TRADING:

TUESDAY MORNING/MONDAY NIGHT

SHANGHAI CLOSED DOWN 50.23 PTS OR 1.52%   //Hang Seng CLOSED DOWN 246.92 POINTS OR 1.25%      /The Nikkei closed DOWN 246.92 OR 1.25%  //Australia’s all ordinaries CLOSED DOWN 0.04 %   /Chinese yuan (ONSHORE) closed DOWN 7.0547 /OFFSHORE CHINESE YUAN DOWN  TO 7.0661 /Oil DOWN TO 72.82 dollars per barrel for WTI and BRENT AT 76.88 / Stocks in Europe OPENED ALL MOSTLY RED// ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN  TRADING WEAKER AGAINST US DOLLAR/OFFSHORE WEAKER

2 d./NORTH KOREA/ SOUTH KOREA/

///NORTH KOREA/SOUTH KOREA/

2e) JAPAN

JAPAN

END

3 CHINA /

CHINA//

END

CHINA/USA

4.EUROPEAN AFFAIRS//UK /SCANDAVIAN AFFAIRS

EU

The Euro and pound tumble after huge downfalls in PMI’s.  The manufacturing sector is the weakest since COVID lockdowns

(zerohedge)

Euro, Cable Tumble After Ugly PMIs; Manufacturing Weakest Since COVID Lockdowns

TUESDAY, MAY 23, 2023 – 07:48 AM

The Euro area composite flash PMI dropped 0.8 to 53.3, below consensus expectations. The decrease in the composite index was broad-based across sectors but skewed heavily towards manufacturing, where the output index fell deeper into contractionary territory – at its weakest since the COVID lockdowns.

Both Manufacturing and Services fell in the preliminary May data…

Source: Bloomberg

For context, the Manufacturing is a shitshow…

We note that the outperformance of services relative to manufacturing was the widest observed since January 2009 and the new orders divergence is even greater:

The report adds to mounting evidence that the manufacturing woes of Germany, Europe’s biggest economy, are an increasing drag on the wider region.

The composition of the May report showed a broad-based moderation across new orders, employment, new export orders, and backlogs.

Firms’ future output expectations also edged down further

• The French composite flash PMI decreased by 1.0pt to 51.4, below consensus expectations. The composite decline was driven by a slowing in the services index, although it remains in expansionary territory, while the manufacturing output index improved to 45.1.
• Germany: The German composite flash PMI increased by 0.1pt to 54.3, above consensus expectations. The improvement in the composite index was driven by a further improvement in services activity, while manufacturing output fell back into contractionary territory following three months of slightly above-50 levels.
• Periphery: The periphery composite PMI decreased by 1.7pt to 53.6. The composite decline was broad-based across sectors but skewed towards manufacturing, where the output index declined further to remain in contractionary territory (at 45.7), while services index remains in expansionary territory (at 56.5).

Additionally, the UK composite flash PMI decreased by 0.9pt to 53.9, also below consensus expectations. The decline was broad-based across sectors but also skewed more towards manufacturing.

The persistence in domestic price pressures appears even more pronounced in the UK, where input prices faced by services firms also edged up, with the press release noting strong wage growth as the primary driver of this phenomenon.

Goldman notes  two main takeaways from today’s data.

• First, aggregate growth momentum remains resilient across Europe but this is being driven entirely by strength in services, while activity in the manufacturing sector continues to deteriorate.
• Second, price pressures are also becoming increasingly divergent across sectors; while input prices have continued to moderate across both services and manufacturing in the Euro area, prices charged by firms edged up in the services sector. The persistence in domestic price pressures appears even more pronounced in the UK where input prices faced by services firms also edged up, with the press release noting strong wage growth as the primary driver of this phenomenon.

The market’s reaction was swift with EUR and GBP both sold…

“GDP is likely to have grown in the second quarter thanks to the healthy state of the services sector,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said in a statement.

“However, the manufacturing sector is a powerful drag on the momentum of the economy as a whole. German companies from this sector are particularly hard on the brakes.”

Interestingly, for now there has been very little reaction in ECB rate-hike expectations with a June hike still priced at around 25%.

END

ENGLAND

My goodness: what is this world coming to: 

Apartheid at a London theatre as they urge white people not to attend a racially charged play

(zerohedge)

“This Is Basically Apartheid!” London Theater Slammed For Urging White People Not To Attend ‘Racially-Charged’ Play

TUESDAY, MAY 23, 2023 – 02:00 AM

Authored by Thomas Bropoke via Remix News,

A London theater has received widespread criticism for promoting one showing of a play which the venue urges White people not to attend.

The Theatre Royal Stratford East has organized a “Black Out” night on July 5 for the production of “Tambo & Bones,” a play described as a “racially charged metatheatrical satire.”

The play runs for a month during June and July, but on this date alone White people have been informed they are not welcome to attend.

While insisting on its website that “no one is excluded from attending,” the venue adds that “this performance has been arranged for Black audience members specifically” and states that the production should be enjoyed “free from the White gaze.”

Director Matthew Xia justified the discriminatory move by claiming Black people need “private and safe spaces” away from White people in order to “experience productions that explore complex, nuanced race-related issues.”

In its FAQs, the venue states the production is for a “Black-identifying” audience, before comprising a list of who it considers to be Black enough to attend.

“We define ‘Black’ as of Black African, Caribbean, Afro-Latinx and African-American heritage, including those of mixed-Black heritage who identify as such.”

The move has sparked outrage with critics warning it sets a dangerous precedent and is overtly discriminatory.

“Britain is becoming like pre-civil-rights America: segregation and division on the grounds of race. Welcome to progressivism,” tweeted trade unionist and broadcaster Paul Embrery.

Leader of Britain’s Reclaim party, Laurence Fox, remarked: “I’m so excited to see this production. If it means I have to go in blackface so that everyone feels safe. That’s a price I’m willing to pay.”

The Don’t Divide Us campaign commented that while it doesn’t consider the move to be a dangerous precedent, it did believe it to be “a very stupid and philistine one.”

“Everyone has a unique response to a work of art. We don’t need segregated audiences for that. And psychological exploration is best done in private therapy, not public theater,” it added.

Teacher and education reformer Katharine Birbalsingh CBE tweeted tongue-in-cheek: “Because the trauma from ‘the white gaze’ is too much for us black people. That’s how weak we are. We can’t take white people paying for a ticket to see our production because their evil eyes are set upon us.”

Britain’s first Black police and crime commissioner, Festus Akinbusoye, also condemned the move.

“Society is richer and stronger when an understanding of each other’s cultures and stories are shared and heard. However, I believe the Black Out concept runs contrary to this education and enrichment ethos,” he said.

This isn’t the first time a “Black Out” night has caused controversy.

In February, the National Arts Center in Canada was subject to accusations of segregation and discrimination for doing the same thing with a production of “Is God Is.”

The phenomenon of Black-only events appears to be seeping into Western society, with a yoga workshop at Canada’s University of Guelph making headlines in November last year for prohibiting the admission of all races other than Black.

END

GERMANY/USA/RUSSIA/NORDSTREAM 1 AND 2

unlikely//I will go with Seymour Hersh who has very credible intelligence on the matter

(zerohedge)

German Investigators Find Nord Stream Evidence Points To Ukraine

TUESDAY, MAY 23, 2023 – 10:45 AM

Seven months after explosions severed three of Russia’s four Nord Stream gas pipelines in the Baltic Sea, German investigators are now pursuing leads that point to Ukraine as the responsible country. At the same time, a multinational consortium of European investigative journalists has also found leads pointing to Kiev. 

A long-running Western propaganda campaign — abetted by media that’s credulous at best and complicit at worst — would have us believe Russia blew up pipelines that took the country 15 years of construction — and painstaking diplomacy to overcome U.S. interference — to bring to reality.In the wake of the September 2022 destruction of Nord Stream pipelines, natural gas rises to the surface of the Baltic Sea (via Daily Mail)

According to The Times of London, Germany’s Federal Office of Criminal Investigation (BKA) has investigated Russian naval movements that have been declared “suspicious,” but found nothing that suggests Moscow is responsible for the attack.

Rather, BKA investigators are now focusing on a yacht that sailed from the German port of Rostock weeks before the explosions. That 15-meter yacht — the Andromeda — was hired from a Polish company, and docked at a tiny Danish island near the blast site. Most strikingly, investigators found traces of “military-grade and underwater-deployable” explosives on the vessel. The Andromeda was found to have traces of “military-grade and underwater-deployable” explosives (via Daily Mail)

Given the complexity of the operation, the BKA believes a government must have backed the undertaking, and has found evidence pointing to Ukraine, via a shell company — a travel agency — formed by two Ukrainians in Warsaw. According to the team of journalists, the purported travel agency is one of more than 100 entities listed at a single address. In 2022, the travel agency, which had a Ukrainian woman named as president, received about $3 million for no documented reason. 

According to the BKA’s working theory, five men and one woman with forged Romanian and Bulgarian passports entered Germany before using the yacht as a base for expert divers who planted the charges more than 200 feet below the sea. Germans have identified two other people — Ukrainians — who were aboard the vessel. Journalists say one of them is a Ukraine infantry veteran.  

It’s an intriguingly detailed scenario — and quite different from Seymour Hersh’s own blockbuster account. Citing unnamed national security sources, the legendary investigative journalist reported in February that the United States blew up the pipeline, in a plan crafted by the CIA with the cooperation of Norway and executed by US Navy divers deploying from a Norwegian mine-hunting vessel.   

Meanwhile, Hersh has just reported that Ukraine’s neighbor’s are quietly pressuring President Zelensky to find a way to bring the 15-month-old war to an end — with some apparently willing to compensate him personally for doing so

END

end

5 RUSSIA//UKRAINE AND MIDDLE EASTERN AFFAIRS

UKRAINE//RUSSIA//USA

As proof of the capture of Bakhmut, the Wagner fighters offer a tour of a huge Donbass salt mine

(zerohedge)

Inside Europe’s largest salt mine: Wagner Group fighters offer a tour of the huge Donbass facility captured from Ukrainian forces — RT Russia & Former Soviet Union

Robert Hryniak	9:25 AM (7 minutes ago)
to

Pretty incredible
https://www.rt.com/russia/576625-donbass-salt-mines-wagner-pmc/

end

ISRAEL

This is ominous especially with a weak USA President.

(zerohedge)

Hezbollah Hosts War Drills For Media Amid High Tensions With Israel

MONDAY, MAY 22, 2023 – 08:40 PM

In a rare display of its military potential, the Lebanese fighters of Hezbollah on Sunday staged a series of war drills in front of an audience of invited journalists. The show of force comes as tensions between Israel on the one side, and Hezbollah as well as Palestinians in Israel, the West Bank and Gaza on the other. 

Senior Hezbollah official Hashem Safieddine said the display “confirm[s] our complete readiness to confront any aggression” by Israel. 

The event came before “Liberation Day” — when Lebanese commemorate the May 25, 2000 withdrawal of the Israeli military from southern Lebanon — and after Thursday’s annual “Flag March” in Israel, a Zionist event that’s heavy on racist and genocidal chants directed at Palestinians, such as “Death to Arabs” and “may your village burn.”  

Hosted at a training site in southern Lebanon, the various displays included the destruction of a simulated Israeli border wall, explosions consuming Israeli flags on hillsides and fighters firing from the backs of motorcycles. This photo appears to show a Hezbollah team with Russian Kornet anti-tank guided missiles (ATGMs)

Safieddine hinted about Hezbollah having a precision-guided missiles, but the group did not display them. According to this video, however, Hezbollah showed off surface-to-air missiles with Iranian sights: 

Rockets are a major cornerstone of Hezbollah’s arsenal, with some estimating the militia has stockpiled more than 130,000 of them. It’s one reason why Hezbollah is often called the world’s most-armed non-state military force — and why the Iran-aligned militia is a meaningful check on Israel’s military ambitions. 

April saw the one of the largest exchanges of fire between Hezbollah and Israel in recent years. That violence accompanied a broader Palestinian backlash against Israel, sparked by a police raid on Jerusalem’s Al Aqsa Mosque the included the brutal beating of Muslim worshippers. 

END

ISRAEL/WEST BANK/USA

Israel continues to go into settlements in the West Bank much to the anger of Palestinians. However these settlements offer a buffer

in case of attack from Lebanon’s Hezbollah and Syria.

(zerohedge)

Biden Admin Issues Rare Rebuke Of Israel Over West Bank Settlement

TUESDAY, MAY 23, 2023 – 04:15 AM

Via The Cradle,

The US criticized Israel’s recent decision to allow Jewish settlers to establish a settlement around the West Bank Hamesh outpost area, despite Washington previously urging Tel Aviv not to legitimatize the outpost.

Last week, the chief of the Israeli military’s Central Command, Yehuda Fuchs, signed a decree allowing Israelis to enter the Homesh area, which would essentially pave the way for constructing another settlement in the occupied West Bank. Under international law, Israel’s settlement expansion into the Palestinian territories is deemed illegal.

The US State Department has consistently demanded that Israel refrain from making escalatory moves against the Palestinians, which in this case, would assure further confrontations between the Israeli military and Palestinian resistance.Photo Credit: Issam Rimawi/ApaImages

State Department Spokesperson, Matthew Miller, remarked that the US is apprehensive over Israel’s decision to legitimize the outpost in the northern occupied West Bank, as its construction would be considered illegal. 

We are deeply troubled by the Israeli government’s order that allows its citizens to establish a permanent presence in the Homesh outpost in the northern West Bank, which according to Israeli law was illegally built on private Palestinian land. This order is inconsistent with both former Prime Minister Sharon’s written commitment to the Bush Administration in 2004 and the current Israeli government’s commitments to the Biden Administration. Advancing Israeli settlements in the West Bank is an obstacle to the achievement of a two-state solution.

We are also concerned by today’s provocative visit to the Temple Mount/Haram al Sharif in Jerusalem and the accompanying inflammatory rhetoric. This holy space should not be used for political purposes, and we call on all parties to respect its sanctity… — US State Dept

According to a Hebrew media report last month, the Israeli Knesset has passed its third reading of a bill that would lift the ban on settlers returning to four settlements in the occupied West Bank, including Homesh, Sa-Nur, Ganim, and Kadim.

These previous settlements were evacuated under the ‘disengagement’ law in 2005, which saw the withdrawal of Israeli troops from the Gaza Strip and the evacuation of several settlements in Gaza and the northern occupied West Bank. Israeli lawmakers proposed this new legislation to reestablish the four settlements in December last year.

In January, Israel’s High Court gave Benjamin Netanyahu’s government 90 days to explain its reasons for not dismantling the Homesh settlement in accordance with the Disengagement Law. The government had already been planning to repeal segments of the law as part of a plan to legalize the settlements, including the Homesh outpost. 

Israeli news outlet Haaretz suggested in April that the judicial overhaul policy was the Israeli far-right’s response and “revenge” to the 2005 Disengagement Law.

end

6.Global Issues//COVID ISSUES/VACCINE  ISSUES/

GLOBAL ISSUES

this is really a good one from Pepe Esobar!

(PepeEscobar)

Escobar: Adventures In NATOstan – Sparks Flying In Ibiza, Locked Down Bilderberg In Lisbon

MONDAY, MAY 22, 2023 – 11:40 PM

Authored by Pepe Escobar,

Let’s start with a graphic depiction of where the Global North and the Global South really stand.

1. Xian, former imperial capital, and key hub of the Ancient Silk Roads: Xi Jinping hosts the China-Central Asia summit, attended by all Heartland “stans” (Kazakhstan, Uzbekistan, Kyrgzystan, Tajikistan, Turkmenistan).

The final statement stresses economic cooperation and “a resolute stand” against Hegemon-concocted color revolutions. That expands what the Shanghai Cooperation Organization (SCO) and the Belt and Road Initiative (BRI) are already implementing. In practice, the summit seals that the Russia-China strategic partnership will be protecting the Heartland.

2. Kazan: the Russia-Islamic World forum unites not only religious leaders but top businessmen of no less than 85 nations.

Multipolar Russia proceeded in parallel to the Arab League Summit in Jeddah, which welcomed back Syria to the “Arab family”. Arab nations unanimously pledged to end “foreign interference” for good.

3. Hiroshima: the ever-shrinking G7, actually G9 (adding two unelected EU bureaucrats).

Imposes a single agenda of more sanctions on Russia; more weapons to black void Ukraine; and more lecturing of China.

4. Lisbon: the annual Bilderberg meeting – a NATO/Atlanticist fest – takes place in a not so secret hotel completely locked down. Top item in the agenda; war – hybrid and otherwise – on the “RICs” in BRICS (Russia, India, China).

I could have been in Xian, or most likely Kazan. Instead, honoring a previous commitment, I was in Ibiza, and then scraped the idea of flying to Lisbon as a waste of time. Allow me to share with you the reason why: call it a little tale from the Baleares, breaking the trademark pledge that what happens in swinging, sweaty deep house Ibiza stays in Ibiza.

I was a guest at a top business gathering – mostly Spanish but also featuring Portuguese, Germans, Brits and Scandinavians: ultra high-level executives – in real estate, asset management, investment banking. Our panel was titled “Global Geopolitical Shifts and Their Consequences”. Before the panel, participants were invited to vote on what worried them most when it comes to the future of their business. Number one was inflation and interest rates. Number two was geopolitics. That prefigured a very lively debate ahead.

When a EU hagiographer goes berserk

Little did I – and the audience – know that would turn into a wild ride. The first presentation came from the director of a “Center for European Politics” in Copenhagen. She bills herself as a political science professor, and is an adviser to EU Chief Gardener Borrell.

Well, I adopted a Cheshire cat stance after the tsunami of clichés spewed out about “European values” and evil Russkies, as well as her being “frightened” by the future of Europe. At least immediate relief was provided by the impeccably diplomatic Lanxin Xiang, an adorable character, always with a cheerful smile on his face, and one of the very few leading experts on China who actually knows what he’s talking about, in fluent English.

Lanxin Xiang, among other accomplishments, is Emeritus Professor of the Graduate Institute of International and Development Studies in Geneva; director of the Institute of Security Policy at the China National Institute for SCO International Exchange; and executive director of the Washington Foundation for European Studies. This is a column I wrote about him and his work, published in October 2020.

Professor Xiang offered a masterly exposition on the American obsession to fabricate a “Taiwan problem” and how Europe, already squeezed by the U.S. proxy war against Russia, must be very careful when it comes to lecturing China.

When it was my turn, I went for the kill, dismissing all those EU press release platitudes as absolute nonsense, and stressing how Europe is already being eaten alive by the proverbial “American interests”. As briefly as possible I explained the whole geopolitical background of the war in Ukraine.

Well, this was all delivered to top business people who consume The Economist, Financial Times and Bloomberg as their prime sources of information. Their reaction would speak volumes.

Predictably, the EU-paid bureaucrat completely freaked out, and shrieking with outrage, went full pre-ordained script, from threatening to abandon the stage to accusing me of being “paid by the Kremlin”. I asked her, point blank, to “contradict me, with facts”. No facts were provided. Just fear and bewilderment, mixed with intimations of cancel culture.

To his great merit the vastly experienced moderator, Struan Robertson from Bank of America Merrill Lynch, kept things civil, giving more time for Lanxin Xiang to explain the Chinese mindset and opening the floor for a sequence of very good questions.

In the end, the audience loved it. Many came to personally thank me for information they will never have access to in El Pais, Le Monde or The Economist. A minority in the room was simply stunned – but our debate at least must have left them musing over a lot of preconceived notions.

It’s the total merit of the key organizers, Jose Maria Pons and head of the program Cristina Garcia-Peri, to host such a debate in fabulous Ibiza, in Spain, prime NATOstan territory. In the current situation, this would be absolutely impossible in France or Germany, not to mention Scandinavia or those demented Baltics.

There’s no way to counter-act the fabricated narratives parroted by EU-paid hacks and bureaucrats except for ridiculing them – in their faces. They become livid and barely manage to stutter when their lies are exposed. For instance, one of the questions from the floor, by a top of the line German businessman, enumerated a litany of dark facts about Ukrainian “democracy” that are absolutely verbotten by EUrocracy.

The G-Less Than Zero freaks out

What happened in Ibiza dovetails with what happened in U.S.-nuclear bombed Hiroshima – Hegemons don’t do apologies – and in that locked down Lisbon hotel.

With the G7 “leadership” mired in a sticky swamp of intellectual shallowness, predictably the only agenda in colonized Japan was more sanctions on Russia – imposed over third countries and on companies in the energy and military-industrial sectors; more weapons to the Ukrainian black void; and a ridiculous counter-productive new obsession of piling up on China “containment” for alleged “economic coercion.”

In the photo ops, by the way, it’s not a shrinking G7 that shows up: but a warmongering G9, artificially augmented by that pathetic couple of unelected EUrocrats, Charles Michel and Pustula von der Lugen.

As far as the real Global Majority – or Global South – is concerned, this looks more like a G-Less Than Zero. The more the senseless, illegal Sanctions Wars are “expanded”, the more the absolute majority of the Global South moves away from the collective West, diplomatically, geopolitically and geoeconomically.

And that’s why the top Bilderberg agenda at the hijacked Lisbon hotel was to revamp NATO/Atlanticist coordination in a war – hybrid and otherwise – against the driving force in BRICS; the RICs (Russia, India, China).

There were other items on the menu – from AI to the acute banking crisis, from “energy transition” to “fiscal challenges”, not to mention proverbial “U.S. leadership”.

But when you get in the same room people like NATO’s Stoltenberg; director of U.S. intel Avril Haines; senior director for Strategic Planning at the National Security Council Thomas Wright; Goldman Sachs president John Waldron; Chief Gardener Borrell (whose minion was in Ibiza); vice chair of Brookfield Asset Management, Mark Carney (one of their executives also in Ibiza); Supreme Allied Commander Europe, Christopher Cavoli; and Canadian Deputy Prime Minister Chrystia Freeland, among other Atlanticist shills, the plot is self-evident:

It’s war on the multipolar world. At least we can dance it away in Ibiza.

end

Vaccine issues/COVID 19 issues

DR PANDA:

Another Vaccine Failure?

Monkeypox Cluster in Chicago – 9 out of 13 cases FULLY VACCINATED

DR PANDAMAY 22

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Another failed vaccine?

A cluster of monkeypox (mpox) cases has been identified in Chicago — 69% of the individuals were ‘fully vaccinated.’

On May 11, 2023, the World Health Organization (WHO) declared that the monkeypox outbreak was no longer a global health emergency. However, just days later, the Centers for Disease Control and Prevention (CDC) issued a health alert warning that the outbreak was not over.

The WHO’s decision to downgrade the monkeypox outbreak was based on several factors, including the fact the number of new cases has been declining in recent weeks. However, the CDC’s health alert warning highlighted the fact that the outbreak is still ongoing and that there is still a risk of transmission.

Today, the CDC is investigating a cluster of monkeypox cases in the Chicago area. From April 17 to May 5, 2023, a total of 12 confirmed and one probable case of monkeypox were reported to the Chicago Department of Public Health (CDPH). All cases were among symptomatic men. None of the patients have been hospitalized.

Most Cases In Fully Vaccinated Men

Nine (69%) of the 13 cases were among men who were considered “fully vaccinated” — they have received two doses of the Jynneos vaccine, which is approved for the prevention of monkeypox and smallpox.

Upgrade to paid

The Studies

According to studies, cited by the CDC, the Jynneos vaccine has been estimated to be 85.9% effective against mpox. At one dose, the vaccine was found to be 75.2% effective.

However, a real-world study also conducted by the CDC and published in the New England Journal of Medicine found that the Jynneos vaccine was only 66.0% after two doses and 35.8% effective after a single dose at preventing monkeypox.

Dr. Christopher Braden, mpox response incident manager at the CDC says: “It will help individuals prevent the acquisition of mpox and it will help individuals avoid severe disease or even death.”

Despite questions about the efficacy of the vaccine, the CDC still recommends two doses.

Real-world results are drastically lower. Sound Familiar?

Summary

The Jynneos vaccine has not been widely used before last summer’s outbreak of mpox. Although it appeared highly effective based on study data and real world assessments, its actual efficacy is in question. Similar to the COVID vaccine’s inability to completely halt transmission, this vaccine also falls short in preventing the spread of the disease. According to the CDC, the monkeypox vaccine has been deemed effective in preventing monkeypox, but this cluster in Chicago proves otherwise.

The CDC is forecasting a potential “resurgence” of monkeypox ahead of summer ‘gatherings.’ It is my guess you will see a resurgence mainly in those ‘fully vaccinated’.

This seems to be another case of vaccinate now, ask questions later.

Funny how vaccines these days don’t actually prevent the thing they are supposed to prevent.

DR PAUL ALEXANDER

Dr. William Makis (my friend & TWC colleague) shares same sentiments on the surge in myocarditis in infants now; it’s the vaccine, stupid, it’s the vaccine!! ‘Two UK babies dead from myocarditis:

total of 16 babies developed “severe myocarditis” in Wales & England, 8 ended up in intensive care. Can COVID-19 mRNA vaccinated mothers injure their babies? YES!’; see my prior substack & his (Makis)

DR. PAUL ALEXANDERMAY 22

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Dr. Paul Alexander’s substack:

I reshare this substack I wrote & the question is simple: can a woman who is pregnant & takes the COVID mRNA technology based gene injection DURING pregnancy or AFTER birth harm the infant? Yes!

DR. PAUL ALEXANDER·MAY 21

mRNA from mother’s vaccine can harm the infant in utero as well as soon after birth and this cannot be taken off the table to help explain this surge in infant myocarditis (in new borns). This has to be investigated urgently for the child is at risk for the full range of pathology seen in adults and teens etc. paralysis, pericarditis, stroke, brain blee…

Read full story

Dr. William Makis’s strong scholarship stack:

COVID Intel – by Dr.William Makis

Two UK babies dead from myocarditis: total of 16 babies developed “severe myocarditis” in Wales & England, 8 ended up in intensive care. Can COVID-19 mRNA vaccinated mothers injure their babies? YES!

SOURCES: May 20, 2023 – WHO Warns Of ‘Unusual’ Surge in Severe Myocarditis in Babies – 15 UK newborns diagnosed with myocarditis May 17, 2023 – Daily Mail (UK): One baby dies and eight are left in intensive care after being struck down in ‘unusual’ cluster of usually-harmless infection…

Read more

a day ago · 63 likes · 9 comments · Dr. William Makis MD

SOURCES:

May 20, 2023 – WHO Warns Of ‘Unusual’ Surge in Severe Myocarditis in Babies – 15 UK newborns diagnosed with myocarditis

May 17, 2023 – Daily Mail (UK): One baby dies and eight are left in intensive care after being struck down in ‘unusual’ cluster of usually-harmless infection

Major NEWS out of UK:

This is a major international story. On Tuesday, May 16, 2023, the WHO issued an alert that there had been 15 newborns in the UK, 10 in Wales and 5 in England who were struck down with severe myocarditis (inflammation of the heart) from June 2022 to March 2023. (click here)

The cases occurred from June 2022 with a peak in November 2022 involving babies under 28 days old.

Out of the affected babies, one has died. Eight were treated in intensive care, where they were intubated, put on a ventilator and received circulatory support.

“Health chiefs were spooked by the ‘unusual’ spike in cases over such a short space of time, prompting a thorough investigation.”

According to Zerohedge: “in the same hospital (covering the South Wales region) over the previous six years, “only one other similar case has been identified.”

Official explanation:

The UKHSA said it was “investigating the situation in England”.

PCR testing of nine of the children confirmed they had coxsackie B3 or B4 — types of enterovirus.

Dr. Christopher Williams, consultant epidemiologist for Public Health Wales, said: ‘Enterovirus is a common infection of childhood, causing a range of infections.

It only affects the heart on very rare occasions. This cluster is unusual due to the number of cases reported in a relatively short time frame.

“Investigations are now ongoing in collaboration with the pediatric team in the children’s hospital of Wales to understand the reasons why and to investigate any further cases that may be reported in the coming weeks and months.”

Another baby died of myocarditis, not part of the 15 UK newborns:

Another baby who is not included with the 15 newborns affected, also died of myocarditis. Joann Edwards from Mountain Ash in South Wales gave birth to Elijah on Feb.25, 2022 but within a few days of being at home, he became lethargic, developed jaundice and was taken to the hospital when he was a week old because he stopped feeding.

The baby was diagnosed with sepsis, myocarditis and died within days of hospitalization (click here)

Mrs. Edwards said her family has been ignored and was ‘gobsmacked’ after hearing about other cases as they were ‘led to believe that we were a one-off’.

Cwm Taf Morgannwg Health Board is now probing Elijah’s death.

What is going on?…

16 UK infants with myocarditis, 2 died, 8 in Intensive Care.

This is an extremely important story.

I don’t buy the official explanation. It’s very suspect. Of these 16 cases, 9 were allegedly diagnosed by PCR tests and all tested positive for enterovirus.

The problem is, we know that PCR tests were notorious for producing over 95% false positive results during the COVID-19 pandemic which were used to drive fear.

In reality, anyone can over-cycle these PCR tests to produce false positives for any virus, and you have the perfect cover-up.

And if the World Health Organization is involved, the probability of fraud and cover-up approaches 100%.

COVID-19 mRNA vaccinated mothers…

My first question is: were the 16 mothers COVID-19 mRNA vaccinated?

Given how aggressively COVID-19 mRNA vaccines were pushed on pregnant women, it is highly probable that they were. For the sake of argument, let’s assume they were.

My second question is: Can the mother’s COVID-19 vaccination cause myocarditis injury in her newborn infant and if so, how?

The short answer is: YES.

Do the Lipid-nano particles (LNPs) (fatty transport vehicle) that encase the Malone, Kariko, Weissman et al. mRNA technology that is the basis for the COVID gene vaccine (Moderna & Pfizer) cross the

placenta & is found in breast milk? Does it go systemically all over the body and NOT stay in the injection site? Yes, Yes to all, and these mRNA technology inventors knew it & stayed silent! CRIMINAL

DR. PAUL ALEXANDERMAY 22

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SOURCE:

https://www.sciencedirect.com/science/article/abs/pii/S0143400415300679?utm_source=substack&utm_medium=email

“Fluorescent polystyrene particles with diameters of up to 500 nm were taken up by the placenta and were able to cross the placental barrier. The fluorescent polystyrene particles were observed in various organs of fetuses after 4 h of administration to pregnant mice. The nanoparticle uptake by placental tissue was significantly increased in nanoparticles with a diameter of 40 nm. No linear association was evident between nanoparticle size and uptake. Nanoparticles with diameters of 20 nm (200 μg/ml) and 40 nm (500 μg/ml) could induce trophoblast cell apoptosis with increased cleaved caspase 3 and reduced cell proliferation.

Our findings suggest that nanoparticles can cross the placenta and be taken up by fetal organs. Certain concentrations of carboxylate-modified polystyrene nanoparticles may be cytotoxic to trophoblasts, which could alter placental function.’

SOURCE:

https://www.sciencedirect.com/science/article/abs/pii/S027869152100836X

END

VACCINE IMPACT

44% of Americans Now Using Biometrics Instead of Passwords to Log In to Their Accounts – We are Closer to a One World Financial SystemMay 22, 2023 6:39 pmA new report published by the FIDO Alliance states that 44 percent of Americans are now logging in to their online accounts with biometrics, rather than a password, and more than half of Americans today, 58 percent, state that they are interested in replacing their passwords with biometric passkeys. The FIDO Alliance report clearly states who is pushing the adoption of biometric passkeys at the beginning of their report: “It’s been a year since Apple, Google and Microsoft announced their commitment to passkeys with plans to expand support  for a common passwordless sign-in standard created by the FIDO Alliance and the World Wide Web Consortium.” The FIDO Alliance leadership and members are comprised of the biggest names in Big Tech and the financial sector, including Amazon.com, Microsoft, Google, Apple, Meta, Intel, Yahoo, American Express, Mastercard, Visa, Paypal, CVSHealth, U.S. Bank, PNC Bank, Wells Fargo, and many others. The most widespread biometric ID system currently being rolled out in many locations across the U.S. today is probably Amazon’s palm scanning system called “Amazon One.” A report published by Gizmodo today states that Amazon’s palm scanning technology has now been updated to record your age, so you can purchase alcohol now without an ID by just letting them scan your hand. As I reported yesterday, the latest fad in the field of biometrics is Sam Altman’s Worldcoin system and their “Orb” to scan people’s eyes to create a unique “World ID”. The system to produce a new one-world financial system is already in place, and it could happen now a lot quicker than most people realize.Read More…

Sophia Media, LLC

END

SLAY NEWS

EVOL NEWS

LATEST NEWS:

Despite ‘Philosophical’ Disagreements on Debt Ceiling, Republicans and Biden Can Find ‘Common Ground’: McCarthyRead more…FBI Again Promises to Stop Unjustly Searching NSA Data on AmericansRead more…Morgan Wallen’s ‘One Thing at a Time’ Tops U.S. Album Chart for 10th Week in a RowRead more…WATCH: Club pro Michael Block dunks hole-in-one for all-time PGA Championship moment with fairytale endingRead more…Brooks Koepka wins 2023 PGA Championship, becomes first LIV golfer to…Read more…Trump Legal Team Responds to Former Member’s Claims of Infighting: ‘Categorically False’Read more…Anheuser-Busch Vows to Purge White Male EmployeesRead more…Famous Rapper Ice Cube Urges Black Americans To Ditch Democratic Party: “Something needs to change”Read more..

VACCINE IMPACT

---

MICHAEL EVERY

MICHAEL EVERY/RABOBANK//

end

7//OIL ISSUES//NATURAL GAS ISSUES/USA AND GLOBE

8. EMERGING MARKETS//AUSTRALIA NEW ZEALAND ISSUES

INDIA

Now you know why the citizens of India is one of the world’s largest hoarder of gold and silver

An inside look at what is going on inside India

(Bhandari/Lew Rockwell.com)

India: Another Demonetization?

MONDAY, MAY 22, 2023 – 10:40 PM

Authored by Jayant Bhandari via LewRockwell.com,

In late 2016, the Indian Prime Minister, Narendra Modi, came on TV at 8 pm to announce that most currency bills would no longer be legal tender after midnight. An individual was allowed to convert only about $30 per visit to the bank. This led to massive crowds (not lineups, because Indians don’t follow the lineup system) at the banks, suffering, chaos, and deaths—there were no exceptions for the sick, older people, and pregnant women.

Eventually, more than 100% of the demonetized cash returned to the banks, although I know no one who didn’t forget to convert some of his misplaced currency bills. What happened? Demonetization ended up laundering massive amounts of counterfeit currency. But thinking through the consequences of their utopian—rather puerile—policies isn’t within the competencies of the Indian bureaucrats. Worse, to patch up, they kept issuing contradictory policies that even school students should not make. This led to a constant cycle of paranoia, rumors, and confusion.

The declared objective of the exercise was to destroy black money. Of course, it did nothing of the sort. Soon more cash was in people’s hands than ever before, and kept on rising, a clear sign of a higher distrust among the people and the rising corruption.

Over the years, corruption in India has become increasingly shameless and blatant. I have never encountered a public servant who does not ask for a bribe. Who among them wants corruption to end?

So, what was the real purpose behind the demonetization of 2016?

As India gets closer to election time, cash disappears from the market, prices of expensive properties fall, and shares of certain companies get sold off. This happens because these vehicles act as a reservoir for black money and, when encashed, are used for hiring goons and bribing voters: giving out free cash, alcohol, etc. All this is done openly.

Cash sits in the vaults of political parties, ready to be given away for votes. Property transactions entail the exchange of as much as 80% in cash, which sucks up black money and regenerates it when needed at a low transaction cost—the stamp duty is based on the declared price of the properties. Stocks of certain companies rise and fall as black money is laundered for payments that must be officially reported. What are supposed to be investment vehicles often lead to a loss, seen as nothing but the cost of storing black money.

In 2016, one could conclude that the ruling BJP government, insiders to the demonetization policy, had converted their cash into what was to stay legal tender and harmed the value of the black money in the hands of the opposition.

Recently provincial elections were held in the state of Karnataka, where the BJP, which also controls the federal government, ruled. It lost the elections. That wasn’t because the hate-filled fanaticism against minorities they had ignited failed to get traction but because some votes of one opposition party, JDS, moved to another, winning party, Congress. Congress had promised to offer more freebies: regular cash payments for doing nothing and more free grains.

Hate didn’t lose, and freebies won.

As we approach the next federal elections, due within a year, physical cash has disappeared from the market, now sitting in the coffers of political parties.

Stocks of some companies dealing with money laundering and political purposes have fallen. However, this could be because of the fear of short-selling ignited by the US short-seller Hindenburg.

On 19th May 2023, India announced another demonetization, on this occasion of INR 2,000 bills. As usual, their notice is confusing and contradictory. On the one hand, it says that the INR 2,000 bill stays legal tender, but on the other, they give a deadline of 30th September 2023 to bring them to the bank. Indian federal government bureaucrats fail the rationality test school students are supposed to pass. Or, perhaps, this policy gives leeway to the ruling party, BJP, to use their INR 2,000 bills, while other parties would find themselves entrapped.

Corruption and tyranny continue to increase, and the economy continues to falter in India, quite in contrast to the bullish statements being made in the Western media. And a sane Indian voter has a choice between Tweedledee and Tweedledum. Most Indians, even when they are rich and middle class, don’t care about the larger interests of society. They act out of envy and to gain personal advantages. The chaotic, stressful mess of India is what they get and deserve.

The following are screenshots of the Reserve Bank of India press release.

It is also linked here.

END

YOUR EARLY CURRENCY/GOLD AND SILVER PRICING/ASIAN CLOSING MARKETS AND EUROPEAN BOURSE OPENING AND CLOSING/ INTEREST RATE SETTINGS TUESDAY MORNING 7;30AM//OPENING AND CLOSINGS 

EURO VS USA DOLLAR:1.0779 DOWN 0.0031

USA/ YEN 138.51  DOWN 0.156  NOW TARGETS INTEREST RATE AT .50% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…//YEN  STILL FALLS//

GBP/USA 1.2387  DOWN    0.0046

USA/CAN DOLLAR:  1.3530 UP .0027 (CDN DOLLAR DOWN 27 BASIS PTS)

 Last night Shanghai COMPOSITE CLOSED DOWN 50.23 PTS OR 1.52% 

 Hang Seng CLOSED DOWN 246.92 PTS OR 1.25%

AUSTRALIA CLOSED DOWN .04%  // EUROPEAN BOURSE: MOSTLY RED 

Trading from Europe and ASIA

I) EUROPEAN BOURSES  MOSTLY RED 

2/ CHINESE BOURSES / :Hang SENG CLOSED DOWN 246.92 PTS OR 1.25   %

/SHANGHAI CLOSED DOWN 50.23 PTS OR 1.52%

AUSTRALIA BOURSE CLOSED DOWN 0.04% 

(Nikkei (Japan) CLOSED DOWN 129.06 PTS OR 0.42% 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1959.05

silver:$23.16

USA dollar index early TUESDAY morning: 103.39 UP 32 BASIS POINTS FROM MONDAY’s close.

TUESDAY  MORNING NUMBERS ENDS

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And now your closing TUESDAY NUMBERS 11: 30 AM

Portuguese 10 year bond yield: 3.223%  UP 1 /10  in basis point(s) yield

JAPANESE BOND YIELD: +0.409 % UP 2  AND 7//100   BASIS POINTS /JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 3.512 UP 1  in basis points yield 

ITALIAN 10 YR BOND YIELD 4.216 DOWN 10  points in basis points yield ./ THE ECB IS QE’ ING ITALIAN BONDS (BUYING ITALIAN BONDS/SELLING GERMAN BUNDS)

GERMAN 10 YR BOND YIELD: 2.461  UP 1  BASIS PTS 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY  

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

Euro/USA 1.0773 DOWN  0.0037 or  37  basis points 

USA/Japan: 138,66 DOWN 010  OR YEN UP 1 basis points/

Great Britain/USA 1.2420 DOWN .0014 OR 14   BASIS POINTS //

Canadian dollar DOWN  .0002 OR 2 BASIS pts  to 1.3505

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The USA/Yuan,  CNY: closed    ON SHORE  (CLOSED DOWN.(7.0500)

THE USA/YUAN OFFSHORE:    (YUAN CLOSED (DOWN)…. 7.0626

TURKISH LIRA:  19.86 EXTREMELY DANGEROUS LEVEL/DEATH WISH/HYPERINFLATION TO BEGIN.//ON DEATH WATCH

the 10 yr Japanese bond yield  at +0.409…VERY DANGEROUS

Your closing 10 yr US bond yield UP 1 in basis points from MONDAY at  3.729% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic

 USA 30 yr bond yield   3.979 UP 2  IN BASIS POINTS

USA 2 YR BOND YIELD: 4.378% UP 7  in basis points.

 USA dollar index, 103.39 UP 31  in basis points   ON THE DAY/12.00 PM

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

London: CLOSED DOWN 8.04 points or   0.10%

German Dax :  CLOSED DOWN 71.13 PTS OR 0.44%

Paris CAC CLOSED DOWN 99.45 PTS OR 1.33%

Spain IBEX DOWN 38.00 PTS OR  0.41%

Italian MIB: CLOSED DOWN 135.23 PTS OR 0.50%

WTI Oil price 73.26     12: EST

Brent Oil:  77.00     12:00 EST

USA /RUSSIAN ///   AT:  80.22/ ROUBLE  DOWN 0 AND   7//100       RUBLES/DOLLAR

GERMAN 10 YR BOND YIELD; +2.461 UP 1 BASIS PTS

UK 10 YR YIELD: 4.1980 UP 13 BASIS PTS

CLOSING NUMBERS: 4 PM

Euro vs USA: 1.0771 DOWN 0.0040   OR 40 BASIS POINTS

British Pound: 1.2411 DOWN   .0023 or  23 basis pts 

BRITISH 10 YR GILT BOND YIELD:  4.0865% UP 2 BASIS PTS

USA dollar vs Japanese Yen: 138.56 DOWN 0.106 //YEN DOWN 11 BASIS PTS//

USA dollar vs Canadian dollar: 1.3504  UP .0007 CDN dollar, DOWN 7  basis pts)

West Texas intermediate oil: 73.05

Brent OIL:  76.91

USA 10 yr bond yield DOWN 1 BASIS pts to 3.703% 

USA 30 yr bond yield DOWN 1  BASIS PTS to 3.958% 

USA 2 YR BOND:  UP 4  PTS AT 4.346%  

USA dollar index: 103.44 UP 36 BASIS POINTS  

USA DOLLAR VS TURKISH LIRA: 19.86 (GETTING QUITE CLOSE TO BLOWING UP)

USA DOLLAR VS RUSSIA//// ROUBLE:  80.13  UP 0   AND  2/100 roubles

DOW JONES INDUSTRIAL AVERAGE: DOWN 231.07 PTS OR 0.69% 

NASDAQ 100 DOWN 177.21 PTS OR 1.28%

VOLATILITY INDEX: 18.44 UP 1.23 PTS (2.80)%

GLD: $183.43 UP 0.22 OR 0.12%

SLV/ $21.67 UP  0.16 OR 0.24%

end

USA AFFAIRS

1 a) USA TRADING TODAY IN GRAPH FORM

Debt-Ceiling Doubts Finally Weigh On Stocks; Bonds & Gold Bid

TUESDAY, MAY 23, 2023 – 04:00 PM

Mixed macro data (housing good-‘ish’, regional Fed surveys bad, Manufacturing PMI ugly) was dominated today by some FedSpeak (just Kashkari doing Kashkari things) but more so by debt-ceiling doubts actually surfacing in stocks.

Ted Cruz appeared to spook stocks early after warning on CNBC that “20-30 year old Marxists” are running the show behind the scenes at The White House, questioning Biden’s cognitive wellness and warning that the odds of an actual default are higher than the market believes, because the ‘behind the scenes’ staffers believe media will back them in blaming Republicans.

https://player.cnbc.com/p/gZWlPC/cnbc_global?playertype=synd&byGuid=7000300336

Around 1230ET, stocks and bond yields suddenly puked (no immediate news catalyst was evident)

Around 1330ET, headlines hit that the debt-ceiling negotiators meeting had ended and stocks lunged lower again.

Around 1430ET, Bloomberg issued a story about Republicans questioning Yellen’s X-Date ‘math’ which swept stocks to new lows for the day.

By the close, Nasdaq was the day’s biggest loser with Small Caps outperforming (but also red on the day). Today was the worst day in a month for Nasdaq

The S&P 500 broke back below 4200…

Another day, another short-squeeze attempt, but this time it failed…

Source: Bloomberg

0-DTE traders suffered on the day as an effort to reverse losses early on failed…

Source: SpotGamma

Notably, while financial conditions have been tightening in the last few weeks, Nasdaq has blindly ignored it…

Source: Bloomberg

VIX closed higher on the day but has a long way to go to catch up to the skew…

Source: Bloomberg

US Treasuries were mixed today with the long-end outperforming (2Y +3bps, 30Y -2bps) despite a strong 2Y auction…

Source: Bloomberg

30Y yields topped 4.00% for the first time since March, but then rallied back lower in yield to end 2bps lower on the day…

Source: Bloomberg

T-Bills maturing in mid-June topped 6.00% yields today…

Source: Bloomberg

The dollar continued to drift higher along with September rate-hike odds…

Source: Bloomberg

Bitcoin ended higher on the day after surging in the European session before fading in the US session – but still held above $27,000…

Source: Bloomberg

Oil prices rallied on the day – thanks to Saudi threats to crude shorts to “watch out”. WTI slipped late on held $73 ahead of tonight’s API data…

Gold managed gains on the day as it was well bid during the US day session after overnight selling…

Finally, in another bad sign for those bullish on US equities, the relative return offered by Treasuries continues to rise, making stocks look pricey…

Source: Bloomberg

As Bloomberg notes, even with a deal on the debt-ceiling, equities will struggle to move meaningfully to the upside until valuations look attractive relative to bonds.

b) THIS MORNING TRADING // debt ceiling reports

this morning:

GOP, White House Remain ‘Far Apart’ On Debt Deal, Treasury Asks Agencies About Delayed Payments

TUESDAY, MAY 23, 2023 – 09:39 AM

The White House and GOP negotiators plan to meet again Tuesday to continue negotiations on a months-long impasse over raising the nation’s $31.4 trillion debt ceiling before a default occurs.

Republicans say the White House isn’t negotiating in good faith, with House Financial Services Chair Patrick McHenry (R-NC) saying on Tuesday that he’s not sensing urgency from the White House – which waited months to arrive at the bargaining table at the 11th hour.

Rep. Garret Graves (R-LA), who authored the House GOP’s opening bid on permitting reform, says that Republicans and the White House are still ‘far apart’ on a deal – with the Biden administration offering to freeze federal spending at current levels, while McCarthy wants to go back to 2022 levels, a difference of roughly $130 billion.

After a Monday night meeting between President Biden and House Speaker Kevin McCarthy (R-CA) – their third meeting, failed to produce meaningful progress, White House aides headed back to Capitol Hill for further talks throughout the night.

House Appropriations Committee Chairwoman Kay Granger, a Republican, also suspended work on pending funding bills this week “to give the Speaker maximum flexibility as talks continue,” she said in a statement.

The lack of clear progress continued to weigh on Wall Street with U.S. stock indexes set to open lower Tuesday morning and global markets on edge. –Reuters

According to Punchbowl News, McCarthy says he told Biden that there would be no agreement to a ‘clean’ debt limit deal which wouldn’t include spending cuts, and that he won’t agree to raise taxes. The government needs to ‘spend less money,’ he said, telling Republican lawmakers that ‘we are nowhere near a debt ceiling deal yet.‘

Meanwhile, the Treasury Department has asked federal agencies if they can delay payments, the Washington Post reports, citing two people familiar with the matter, as the Biden administration looks for ways to limp things along until a deal is struck – or June 15 quarterly tax payments roll in, buying Congress a bit more time to negotiate before the so-called “X-date” when reserves run dry.

According to the report, Treasury officials have asked whether there’s any flexibility for payments due before early June – though Treasury has not asked any agencies to postpone payments beyond that.

The planning has become increasingly urgent in recent days. Last week, senior Treasury staff sent a memo to federal agencies instructing them to take additional steps to keep the Treasury Department closely apprised of their spending. In the memo — which was obtained by The Washington Post and has not been previously reported — David A. Lebryk, fiscal assistant secretary for Treasury, ordered agency officials to notify Treasury at least two days in advance all “deposits and disbursements” of between $50 million and $500 million. Payments above $500 million require five days notice, the memo said. -WaPo

“Please stress to your staff the importance of these updates during this time and to ensure that your agency’s reports are accurate,” reads the memo. “Your reporting offices should be reconciling reported amounts to actual payment activity to ensure the reliability of these reports during the critical period.”

Now keep this in mind — if and when the two sides get an agreement, negotiators still have to turn that framework into legislative text, obtain a budget “score” from the Congressional Budget Office and then allow members 72 hours to read the bill. Administration officials privately take umbrage with the idea that McCarthy needs to abide by the 72-hour rule, but the speaker doesn’t believe he has any wiggle room on that.

The best case scenario at this point is that the House will vote on a bill over Memorial Day weekend. But that vote could easily slip into next week — if a deal is reached.

And then the Senate still has to act. That would take a week or so under normal circumstances, although McCarthy said he’s been assured by Senate Majority Leader Chuck Schumer that senators may move faster in this case. -Punchbowl News

On Monday night, the House Appropriations Committee canceled planned markups of four FY2024 Republican-drafted spending bills, the panel announced at midnight Monday.

END

Mid Afternoon

Stocks Tumble After Reports Republicans Question Yellen’s X-Date Math

TUESDAY, MAY 23, 2023 – 02:33 PM

US equity markets appear to finally be facing the reality that the T-Bill market has been preaching – this is far from over.

Early this morning, before the open, Ted Cruz appeared to spook stocks after warning on CNBC that “20-30 year old Marxists” are running the show behind the scenes at The White House, questioning Biden’s cognitive wellness and warning that the odds of an actual default are higher than the market believes, because the ‘behind the scenes’ staffers believe media will back them in blaming Republicans.

https://player.cnbc.com/p/gZWlPC/cnbc_global?playertype=synd&byGuid=7000300336

Markets limped lower but then a Bloomberg report that House Republicans aren’t buying Treasury Secretary Janet Yellen’s warning that the US government will run out of money as soon as June 1, or her dire predictions of default, undercutting the urgency to raise the debt limit, took markets lower again…

“We’d like to see more transparency on how they came to that date,” House Majority Leader Steve Scalise told reporters after a closed meeting on Tuesday.

“It looks like they’re hedging now and opening the door to move that date back.”

The equity market’s reaction was a push to the lows of the day…

And that is happening as the T-Bill curve’s “kink” reaches a record high…

With mid-June Bills pricing above 6.00%!

As we have noted in detail, Goldman analysts believe June 7-8 as a key danger zone, and Morgan Stanley says June 8 is its base case for X-date, when the Treasury runs out of sufficient cash.

Representative Chip Roy of Texas called the default warnings a “manufactured crisis” to force Republicans to step back from some demands.

“The fact is, we’re going to have cash in June,” Roy told reporters Tuesday.

“The fact is, we’re not going to default on our debt. That’s just completely false. We’ve got the money to do it.”

Politicians gonna politic… and to anyone that believes we get a deal without the market crashing and forcing them to the table, we wish you luck.

end

A Debt Ceiling Deal Is Near-Term Risk For Stocks

TUESDAY, MAY 23, 2023 – 08:20 AM

Authored by Simon White, Bloomberg macro strategist,

Far from being a risk-on stimulus, a debt-ceiling resolution will expose stocks to a correction as the resulting increase in Treasury issuance sucks liquidity from the system.

With all the banal inevitability of rain on your day off, debt-ceiling negotiations are threatening to go to the wire. For now, expectations are still for some sort of agreement to be reached, with equity investors adding this to their quiver of reasons to be bullish.

No agreement would be negative for stocks, but even a detente is likely to lead to risk-off moves in markets. A debt-ceiling extension would allow the Treasury to ramp issuance back up, leading to a drop in central-bank reserves and bank deposits, absorbing liquidity and sparking a notable short-term correction in equity markets.

Net issuance in both T-bills and bonds has dwindled to almost zero as the debt limit approaches. The Treasury has been drawing down its account at the Federal Reserve (the TGA) to fund spending it would normally pay for through borrowing. Overall liquidity has thus remained supported while the politicians sow confusion and disruption.

But new issuance is like a liquidity hoover, sucking up Fed reserves and, as the chart below shows, leaving stocks prone to downside.

The key question is, will reserves fall as the Treasury issues more debt? The risks are firmly tilted in this direction. To see why, we need to consider who is likely to buy new Treasury debt and how this affects bank deposits and reserves.

The most detrimental effect is if households or corporates purchase the debt. That’s because bank deposits are used to make the purchase. Now, if the Treasury spent all of the proceeds, they would end up as deposits elsewhere, i.e. deposits overall would be unchanged.

However, the Treasury projects it will refill the TGA to $550 billion by the end of June (currently at $57 billion), which means that many deposits, and reserves, will disappear.

On the other hand, if a bank buys the Treasury debt, reserves will likely fall, but bank deposits should remain unchanged. That’s because no deposit-holder is involved in the purchase, while most of the reserves are likely to be absorbed by the TGA as the Treasury refills it.

When a money-market fund buys a T-bill, it depends on whether it’s investing new money or not. If the money comes from a bank (escaping still significantly lower deposit rates versus MMF yields), then deposits and reserves will fall if the Treasury refills the TGA with the proceeds. But if the MMF takes reserves from the RRP facility, then deposits and reserves will remain unchanged.

Unfortunately, banks or MMFs will be unlikely to shoulder much of the new-issuance burden.

Lenders are already too long of duration (as recent bank failures have highlighted). And as the chart below shows, banks typically reduce their duration risk in response to higher rates. Even after some recent divestment, there is likely a lot more to come.

MMFs are unlikely to be much help either. For a start, they only buy T-bills, not longer-dated notes and bonds. Secondly, the rate offered on the RRP facility continues to be more attractive than 3-month bills. MMFs are therefore unlikely to want to switch into them from the RRP.

That may change in due course, however, if bill issuance pushes yields higher than the RRP facility. Furthermore, a peak in rates will eventually mean the 3-month rate will drop below the overnight rate, making the RRP less attractive. But for the time being, MMFs are likely to maintain their preference for the RRP.

Will foreigners come to the rescue? Total overseas UST holdings remain below last year’s peak. EM global reserve managers are trying to diversify their holdings so they are less concentrated in dollars, while large DM holders of Treasuries, such as energy importers like Japan and Switzerland, have been selling reserves in the order of hundreds of billions of dollars.

We are thus left with households and corporates who will most likely absorb the majority of the new issuance. As the chart below shows, this means bank deposits are likely to continue falling, and with them, reserves.

Households have already been doing the heavy lifting, the sector adding $750 billion to their UST holdings over the last half of 2022 (the latest period we have data for), much more than any other sector.

That trend is poised to continue as the Treasury increases issuance (projected to be over $2 trillion for FY2023) and the Fed proceeds with QT, thus wicking away liquidity.

Equities – even if the medium and longer-term picture is improving and underweight investors are chasing the market – are therefore not home and dry yet, and are liable to face some – potentially sharp – short-term downside once the political theatrics are over.

end

Will June Tax Payments Bump Debt Debate Into July?

MONDAY, MAY 22, 2023 – 04:29 PM

Update (1658ET): Stefel’s Chief Washington Policy Strategist, Brian Gardner, suggests that if today’s meeting between McCarthy and Biden fails to produce a pathway to an agreement, market volatility could increase on fears over missing the X-date.

If President Biden and Speaker McCarthy can close the gap between them, then negotiators can work on the details during the week.  It is unlikely that Congress would be able to pass a long-term debt ceiling bill by the end of the week, but if an agreement is in place by Friday, then Congress could pass a short-term suspension of the debt ceiling. This would create the time to write the legislation and provide Members of Congress several days to review the bill (which Republicans would insist on) before voting on it. 

That said, chances of a deal are uncertain given the current lack of urgency among ‘significant blocks of lawmakers on both sides of the aisle.’ If no framework emerges by the end of the week, Gardner thinks it will come down to public pressure to dictate how long the standoff lasts.

If the X-date is breached, Treasury will prioritize the payment of principal and interest on US Treasurys, so the chance of them defaulting is virtually nil. That said, it’s possible that Social Security payments, or military paychecks could be delayed – which would of course increase political pressure, and thus, the chances of a deal – yet which could also carry the risk of a downgrade in the credit rating of US government debt.

Interestingly, Gardner also thinks that if the standoff is able to make it until June 15 – when quarterly tax payments are due – it might allow the debate to continue into July.

Goldman (which Pro subscribers can find in the usual place) gets a little more specific, writing on Saturday that “A deadline of June 8 or 9 would affect a narrower range of payments. After June 2, there is no Social Security payment again until June 14, and the next coupon payment is due June 15, when the Treasury is likely to be taking in a large amount of tax revenue due to the quarterly tax deadline.”

And for a ‘fun’ lookback at how we got here (don’t hyperbolic charts usually end well?);

More recently:

*  *  *

END

II) USA DATA/

Services strong but Manufacturing tumbles back into contraction. Due to inflation, the service sector is raising prices

(zeorhedge)

US Services PMI Soars To 13-Mo Highs, Manufacturing Tumbles Back Into Contraction

TUESDAY, MAY 23, 2023 – 09:52 AM

After an ugly wave of manufacturing PMIs across the euro-zone (and UK), preliminary US PMIs for May were expected to decline (tracking the recent serial disappointment in macro data). The flash prints were dramatically different (like in Europe) with Manufacturing plunging to 48.5 (contraction) down from 50.2 (that was the first time back above 50 since Oct). Services, however, surged to 55.1, the highest print since April of last year…

Source: Bloomberg

Put together, the headline S&P Global Flash US PMI Composite Output Index registered 54.5 in May, up from 53.4 in April, to signal a solid and faster expansion in private sector business activity.

Commenting on the US flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:

“The US economic expansion gathered further momentum in May, but an increasing dichotomy is evident. While service sector companies are enjoying a surge in post-pandemic demand, especially for travel and leisure, manufacturers are struggling with over-filled warehouses and a dearth of new orders as spending is diverted from goods to services.

“The inflation picture is also changing. Whereas manufacturing prices spiked higher during the pandemic due to strong demand and deteriorating supply, it is now the service sector’s turn to be hiking prices amid resurgent demand and an inability to cope with order inflows due to a lack of capacity.

“Jobs growth has accelerated as service providers companies seek to meet demand, but this tightening labour market amid strong demand will be a concern as a fuel of further inflationary pressures.”

Stagflation?

END

New home sales unexpectedly surged in April but that was before a rise in mortgage rates.  Builders slashed prices in order to sell their inventory

(zerohedge)

New Home Sales Unexpectedly Surged In April As Builders Slashed Prices

TUESDAY, MAY 23, 2023 – 10:12 AM

After existing home sales declined in April (and mortgage rates rebounded notably), expectations are for the incentive-driven surge in new home sales to slow (from +9.6% MoM in March to -2.6% MoM in April), but instead new home sales surge 4.1% MoM (thanks in large part to a notable downward revision from +9.6% to +4.0% MoM in March)

Source: Bloomberg

That jump pushed new home sales up 11.8% year-over-year with sales at their highest SAAR since April 2022…

Source: Bloomberg

Finally, don’t hold your breath for this rebound to last as mortgage rate have pushed back above 7.00% this week…

Source: Bloomberg

Supply continues to contract (some might say ‘normalize’). There were 433,000 new homes for sale as of the end of last month, the lowest since April. That represents 7.6 months of supply at the current sales rate…

Source: Bloomberg

As CNBC noted “it’s all about incentives.” as prices were slashed: Median new home price fell 8.2% y/y to $420,800; average selling price at $501,000

Will this please Powell?

-END-

all regional fed surveys signal slump. Inflationary prices are killing their industry 

(zerohedge)

Regional Fed Surveys Signal Slump, Buck PMI Bounce

TUESDAY, MAY 23, 2023 – 10:18 AM

The Philly Fed’s Services index was in contractionary territory for the 9th month of the last 10 in May (-16.0), but very slightly higher from April’s two-year lows.

Source: Bloomberg

More problematically, the survey showed increases in prices for inputs and the firms’ own goods and services.

The prices paid index increased 5 points to 40.3 in May. Almost 45 percent of the firms reported increases in input prices, while 4 percent reported decreases; 39 percent reported stable prices. Regarding prices for the firms’ own goods and services, the prices received index edged up 1 point to 21.6 this month.

But it gets worse, in this month’s special questions, firms were asked to forecast the changes in prices of their own products and for U.S. consumers over the next four quarters. Regarding their own prices, the firms’ median forecast was for an increase of 4.0 percent, up from 3.5 percent when the question was last asked in February.

The Richmond Fed’s Manufacturing survey was even worse, tumbling to -15 from, -10 (far worse than the -8 small rebound expected)

Source: Bloomberg

Two of its three component indexes—shipments and new orders—declined. The shipments index dropped from -7 in April to -13 in May, while the new orders index fell from -20 to -29. The employment index, however, rose slightly from 0 in April to 5 in May.

So despite the headline PMIs, at the regional level, business sentiment remains anything but robust.

END

III) USA ECONOMIC STORIES

For sure: QT will bury the banks

(zerohedge)

Jamie Dimon Warns QT Will Lead To More Bank Failures

MONDAY, MAY 22, 2023 – 11:20 PM

At the start of May we explained that it’s not just the Fed’s rate hikes that are behind the nascent regional bank crisis (because with Fed Funds rate at 5.25% and both T-Bills and money market funds offering similar yields, there is no way small banks can compete with these returns, prompting a bank jog (which periodically turns to a sprint) and deposit flight from both checking and saving accounts).

We said that the Fed’s ongoing QT is a just as pernicious threat to the viability of small/regional banks because with every dollar drained from the system as part of the Fed’s quantitative tightening, a matching deposit dollar is also destroyed, to wit:

Under an ample reserves framework, virtually all deposits are created by the Fed.

That’s why banks were forced to load up on low-yielding securities during 2000-2001 and are now getting crushed as yields soar and fixed income/loan prices plunge.

It also means that under QT as Fed reserves shrink, deposits must follow: as such deposits are either forced to shift into Bills/TSYs or are destroyed (bank failures).

Thus, the bank crisis is an inevitable side effect of Fed tightening.

Now, by now everyone knows that when it comes to banks failing (and capitalizing on it) few are as experienced as JP Morgan, aka JP Mega…

… aka JP More-gain, which now has more than 13% of the nation’s deposits and 21% of all credit card spending: in other words, there has never been a bank that is more systematically important than JPMore-gain… and with every small bank failure, Jamie Dimon’s goliath is only getting bigger. Which is why we found it curious that none other than Jamie Dimon confirmed what we said three weeks ago during JPM’s Investor Day on Monday.

This is what the billionaire CEO said:

We haven’t been through Quantitative Tightening. So we really don’t know what’s going to happen to deposits at all [ZH; actually we do: deposits will shrink dollar for dollar alongside reserves]. And that’s why I’ve been quite concerned about that. I’m probably more concerned about quantitative tightening with anybody in this room.

We’ve never had QT before. It just started, okay? And you see huge distortions in the marketplace already. We’ve never had the Fed in the market like this with that RRP program that Jeremy mentioned ever. They have $2.3 trillion basically lent out to money funds. And I don’t know the full effect of that. And obviously, that’s a direct deduction from deposits are rolling out it made sense to do.

So I think people should build into their mindset that they may have to move deposit beta more than they think and manage that. So I mean, if I was any bank or any company, I’d be saying, can you handle higher interest rates and surprise in deposits, etc?

And this is how JPM itself shows the impact of the shrinking Fed balance sheet and TGA/RRP liquidity drains soak up commercial bank deposits.

By the way, “deposit beta”, as Jamie calls it, for those unfamilliar is a polite way of saying bank run, which is a less polite way of saying bank failure. As for Dimon’s rhetorical last question, the answer is a resounding no, or so JPM’s shareholders would like because for the second time in a month, JPM hiked its Net Interest Margin forecast, this time courtesy of the bank’s FDIC/taxpayer-funded gift in the form of First Republic Bank.

According to a slide in the bank’s Investor Day presentation, JPMorgan will gain an even bigger benefit from rising interest rates because of its “purchase” of First Republic Bank. We put purchase in quotes because in reality it was a gift by the FDIC, which gave JPM all the good parts of the collapsed California bank, while taxpayers were left holding the nuclear waste.

The biggest US bank raised its guidance for net interest income this year to $84 billion up from a previous forecast of $81 billion, according to an Investor Day presentation. The reason: the failure of First Republic which directly boosted JPM’s top line by billions!

In other words, as other banks fail, JPM prospers: here is a history of JPM’s Net Interest Income courtesy of Bloomberg. It will only keep rising…

… as more banks fail.

It is no surprise then that it is Jamie’s sincerest wish for rates to keep rising…

… after all that’s the surest way for John Pierpont’s bank – which still pays 0.01% interest on most of its deposits – to once again become bigger than the US and to finally fulfill the reason behind creation of the Federal Reserves.

end

USA COVID//

END

SWAMP STORIES

the USA is one big banana republic.

Hunter Biden IRS Whistleblower Alleges Retaliation After He Made Protected Disclosures

TUESDAY, MAY 23, 2023 – 02:05 PM

An IRS whistleblower who says he was sidelined from handling the Hunter Biden investigation has filed a formal complaint with the Office of Special Counsel accusing the agency of retaliating against him for making protected disclosures.

In one instance, the whistleblower – a Supervisory Special Agent (SSA), says he was passed over for a promotion despite being the “clearly most qualified” candidate, and that he was recently removed from the Hunter Biden case in an act of retaliation.

The whistleblower’s name remains undisclosed. He is represented by Mark Lytle, a former DOJ lawyer, and Tristan Leavitt, a former congressional investigator who serves as president of Empower Oversight.

The pair disclosed to Congress last week that their client and his entire team had been removed by the Department of Justice from the investigation in what they described as a retaliatory act. Just the News, in late April, reported that the whistleblower had alleged that federal prosecutors had engaged in “preferential treatment and politics” to prevent the younger Biden from facing tax charges. -Just the News

As Just the News reports, the allegations contradict sworn testimony from Attorney General Merrick Garland, who said that Delaware US Attorney David Weiss had full authority to pursue the Hunter Biden case without political interference.

On April 27, IRS Commissioner Daniel Werfel told the House Committee on Ways and Means that the whistleblower would face no retaliation.

“I can say without any hesitation there will be no retaliation for anyone making an allegation or a call to a whistleblower hotline.”

Yet, according to the whistleblower’s attorneys, “This action was inconsistent with your testimony to the House Committee on Ways and Means that there would be “no retaliation” against whistleblowers at the IRS,” reads a letter to Werfel. “It was our understanding that although the IRS executed the reprisal, it did so on behalf of DOJ officials who had the motive to retaliate because it was the propriety of their own actions that had been called into question by the protected disclosures.”

They then, however, asserted that they had learned of an IRS decision to pursue exactly such a retaliation against the agents shortly after Werfel made such testimony, which they attributed to a protected disclosure made directly to Werfel.

The pair pointed to an email from one of the client’s subordinates, whom the agency removed from the case as well, in which the case agent informs the commissioner of his repeatedly attempts to make his superiors aware of problems affecting the investigation and contends that in removing him and the team, the agency had sided with the DOJ, whom they had alleged was behaving improperly. -Just the News

More from the letter (which can be read in its entirety below), which notifies Werfel that as IRS commissioner, he has a responsibility to protect whistleblowers from retaliation.

In response to making his good faith expression of reasonable concerns—concerns shared by our client—the case agent had a right to expect that his email would be taken seriously, considered, and addressed professionally without retribution, as the law requires.

Instead, the IRS responded with accusations of criminal conduct and warnings to other agents in an apparent attempt to intimidate into silence anyone who might raise similar concerns. Specifically, the Assistant Special Agent in Charge emailed the case agent suggesting, without any basis, that he might have illegally disclosed 6(e) grand jury material in his email to you. While such a claim is utterly baseless and without support in the law or facts of this matter, the language of the response suggests the case agent may have been referred for investigation, an even more intimidating form of reprisal likely to chill anyone from expressing dissent. Furthermore, the Acting Special Agent in Charge issued a contemporaneous email to supervisors—including our client—admonishing employees to obey “the chain of command,” writing: “There should be no instances where case related activity discussions leave this field office without seeking approval from your direct report.”

The attorneys also wrote to key congressional leaders to inform them of the OSC complaint.

According to The Federalist, in response to the whistleblower’s email to IRS leadership, he received a terse reply from an Assistant Special Agent in the IRS Criminal Investigation division stating “You have been told several times that you need to follow your chain of command” and that “your email yesterday may have included potential grand jury (aka 6e material) in the subject line and the contents of the email.”

END

Shades of Holland….

John Kerry Declares War on US Farmers: Gov’t Farm Confiscations ‘Not Off The Table’ – The People’s Voice

Robert Hryniak
to

These folks are many pickles short of the barrel.

John Kerry Declares War on US Farmers: Gov’t Farm Confiscations ‘Not Off The Table’

Devin Nunes: Obama Knew… Obama Was Directly Involved – He Got All the Intelligence Agencies Involved in Trump-Russia Hoax But Knew It was a Lie Back in August 2016 (VIDEO) | The Gateway Pundit | by Jim Hoft

Robert Hryniak	1
to

Everyone knows and no one does anything.

Devin Nunes: Obama Knew… Obama Was Directly Involved – He Got All the Intelligence Agencies Involved in Trump-Russia Hoax But Knew It was a Lie Back in August 2016 (VIDEO)

end

THE KING REPORT

The King Report May 23, 2023 – Issue 6996

Independent View of the News

Fed’s Bullard Sees Two More Interest-Rate Hikes Needed in 2023 to Cool Prices     St. Louis Fed chief favors ‘sooner rather than later’ on hikes     It’s a ‘great time’ to fight inflation amid low unemployment “I think we’re going to have to grind higher with the policy rate in order to put enough downward pressure on inflation and to return inflation to target in a timely manner,” he said Monday during a moderated discussion at an event in Fort Lauderdale, Florida… https://www.bloomberg.com/news/articles/2023-05-22/fed-s-bullard-sees-two-more-hikes-needed-in-2023-to-cool-prices   WSJ’s @NickTimiraos: St. Louis Fed President James Bullard: The projection that rates would rise to just above 5% this year “was based on the idea inflation would come down pretty rapidly” and GDP growth would be around zero. “But those things haven’t materialized so far.”   Fed’s Kashkari says a June pause on rates wouldn’t indicate an end to hiking cycle “Right now it’s a close call either way, versus raising another time in June or skipping,” the central bank official said on CNBC’s “Squawk Box.” “Some of my colleagues have talked about skipping. Important to me is not signaling that we’re done. If we did, if we were to skip in June, that does not mean we’re done with our tightening cycle. It means to me we’re getting more information.”… https://www.msn.com/en-us/money/markets/feds-kashkari-says-a-june-pause-on-rates-wouldnt-indicate-an-end-to-hiking-cycle/ar-AA1bwlD5   Speaking on CNBC, Kashkari also said services inflation remained entrenched and that “it may be that we have to go north of 6%” to get it back to the Fed’s 2% target… https://www.reuters.com/markets/us/feds-kashkari-close-call-june-rate-hike-or-pause-cnbc-2023-05-22/   For over a year, ‘the market’, in all its widely heralded and glorified omniscience, has projected far fewer rate hikes and lower levels of interest rates than high Fed officials projected.  Mr. Market was abjectly wrong; but it continues to disregard Fed officials’ warnings.  A forty-year Grand Super Cycle Bull Market for bonds will inculcate extreme hubris in Mr. Market and Street pundits.   Yellen: Invoking the 14th Amendment “would be a constitutional crisis”   “All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills…” – “Origination Clause”, Article I, Section 7, Clause 1 of the U.S. Constitution   Section 8 of US Constitution: The Congress shall have power to lay and collect Taxes, Duties, Imposts and Excises, to pay the debts and provide for the common defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; to borrow money on the credit of the United States… To coin money, regulate the value thereof, and of foreign coin… https://www.senate.gov/civics/constitution_item/constitution.htm   Federal Reserve Board issues Economic Well-Being of U.S. Households in 2022 report Overall, the report shows that higher prices have negatively affected most households and overall financial well-being declined over the prior year, though workers continued to benefit from a strong labor market… https://www.federalreserve.gov/newsevents/pressreleases/other20230522a.htm   Home buyers will now be able to put down as little as 1% on their home, Rocket Mortgage says Rocket Mortgage is offering a new program that allows low- to moderate-income home buyers to put down as little as 1% on their dream home… as well as avoid paying mortgage insurance … (Not a parody or article from 2006!) Unlike low or no down payment plans that flourished and resulted in the subprime loan crisis — where lenders made loans to people who were eventually unable to repay them — requiring borrowers to meet specific and stringent credit standards will prevent the same scenario from repeating again, Walters stressed… (low-income home buyers will meet ‘stringent credit standards?) https://www.marketwatch.com/story/home-buyers-will-now-be-able-to-put-down-as-little-as-1-on-their-home-rocket-mortgage-says-ce46cb93   Stocks Briefly Spooked by Unconfirmed Report of Explosion Near Pentagon While completely unconfirmed, a number of media outlets are showing the images (and some are deleting it already)… Many reactions are that this is fake. so, the most important question is – who started it? https://www.zerohedge.com/markets/stocks-briefly-spooked-unconfirmed-report-explosion-near-pentagon   ESMs opened -18.25 on Sunday night but rallied robustly until 20:06 ET.  They then traded sideways with a slight upward bias until they jumped higher after the 8 ET US bond market opening.   After a modest retreat, ESMs soared on and after the NYSE opening due to conditioned buying and over-the-moon bullishness.  Have we mentioned that there is still way too much liquidity in the system?   ESMs and stocks hit daily highs at 9:38 ET.  Bullard then dropped the hammer on the buyers.  ESMs tumbled to 4191.00 (from 4221.75) at 10:09 ET.  After a robust rebound, ESMs and stocks chopped sideways until a rally appeared near 14:35 ET.  The rally was lame and short lived; however, a modest spike higher occurred when Speaker McCarthy said debt talks are on the right path.   The spike, at 14:39 ET, was modest and quickly reversed into a decline that intensified when the final hour appeared.  A bottom appeared at 15:51 ET.  A modest rally into the close developed.   Positive aspects of previous session Fangs rallied sharply again on AI grandiosity – the latest tech fad to suck in patsies The DJTA was relatively strong all session   Negative aspects of previous session Bonds declined Gasoline soared as much as 3% on buying for the commencement of ‘Drive Season’ this weekend             Ambiguous aspects of previous session How long can equities ignore negative fundamentals?   First Hour/Last Hour Action [S&P 500 Index]: 1st Hour from NYSE open: Up; Last Hour: Down   Pivot Point for S&P 500 Index [above/below indicates daily trend to traders]: 4193.85 Previous session High/Low: 4209.22; 4179.68   Testimony of Robert Lighthizer Before the House Select Committee on Strategic Competition between the United States and the Chinese Communist Party May 17, 2023The United States Needs to Strategically Decouple from China…The Chinese Economic System is Designed to Exploit Foreign Commerce to Advance China’sGeopolitical Power…China’s Growing Geopolitical Power Harms American Economic and National Security    “Since 2001, we have directly transferred more than $6 trillion to China through our annual trade deficits…During the Cold War with the Soviet Union, it would have been inconceivable for the U.S. to allow such a massive wealth transfer to happen.  Had we done so, we may very well have lost to them.     Our bilateral trade deficit with China has financed China’s move up the global value chain and enabled its increasing dominance of the world’s high-tech economy. In parallel, the American industrial base has been left in disrepair as thousands of firms have collapsed under relentless competition from directly and indirectly subsidized Chinese imports. This makes our economy critically underprepared for wartime mobilization and unable to provide for the needs of the American people. Meanwhile, the Chinese military – powered by growing Chinese high tech economic industries – is threatening key American partners in the Indo-Pacific, seeking to dislodge American influence in one of the key economic regions of the globe… https://docs.house.gov/meetings/ZS/ZS00/20230517/115974/HHRG-118-ZS00-Wstate-LighthizerR-20230517.pdf   Robert Lighthizer was US Trade Representative from 2017 to 2021.   @CNBC: CNBC’s Steve Liesman hosts 2023 National Economics Challenge quiz showdown     @TonyNashNerd: Liesman has degrees in English and Journalism.    Biden and McCarthy met at 17:30 ET on Monday.   Fox’s @ChadPergram: McCarthy at WH on debt ceiling: We do have disagreements…both agree that we need to change the trajectory, that our debt is too large…at the end we can find common ground, make our economy stronger, take care of this debt     Biden on debt ceiling: We’re going to still have some disagreements but I think we may be able to get where we have to go. We both know we have a significant responsibility… Debt default is off the table.   McCarthy after his meeting with Biden: “The tone tonight was better than any other time we have had discussions.  We had a productive discussion.  We don’t have an agreement yet.”   Today – Traders are extremely bullish and want to break out major indices to the upside.  There is abundant liquidity in the system to fuel speculation, despite the Cassandra Calls of numerous experts who see doom because M2, after soaring a record 25.9% y/y in February 2021 (was +6.8% in Feb 2020), is now -4.1% y/y.  Since 1950, the previous record M2 y/y advance was 13.5% in March 1976.  This seeded the greatest inflation in the US since 14.7% y/y CPI in 1947 (per Minneapolis Fed). https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator/consumer-price-index-1800-   More importantly, M2 is down only 4% from its $21.703 trillion peak in July 2022!  M2 soared 40.5% from Feb 2020 to its July 2022 peak.  A stock soars 40.5%, then drops 4%.  Is this Armageddon?   If recession is imminent, why are stocks soaring?  If the Fed is going to pause and even pivot in a quarter or two, why have bonds steadily declined since their peak on April 6, 2023?   Traders want to affect a Turnaround Tuesday to the upside, debt talks willing.  The key indicator for stock market direction over the past several weeks has been the action in Fangs.  This is the way to bet until the trend terminates.  ESMs are +12.50 at 20:05 ET on debt-deal optimism and exceedingly bullish sentiment.   Hedge Funds Rush to Buy Stocks with S&P 500 On Brink of Breakout – BBG   Expected econ data: May S&P Global US Mfg PMI 50, Services PMI 52.5, Composite 53 (How does 50 and 52.5, even with different weightings, add up to 53?); April New Home Sales 663k; May Richmond Fed Manufacturing Index -8; Dallas Fed Pres Lorie Logan 9 ET; Biden & McCarthy will meet.   S&P 500 Index 50-day MA: 4080; 100-day MA: 4040; 150-day MA: 3990; 200-day MA: 3976 DJIA 50-day MA: 33,220; 100-day MA: 33,350; 150-day MA: 33,240; 200-day MA: 32,774 (Green is positive slope; Red is negative slope)   S&P 500 Index – Trender trading model and MACD for key time frames Monthly: Trender and MACD are negative – a close above 4514.50 triggers a buy signal Weekly: Trender and MACD are positive – a close below 3945.24 triggers a sell signal Daily: Trender and MACD are positive – a close below 41.0034 triggers a sell signal Hourly: Trender is positive; MACD is negative – a close below 4174.00 triggers a sell signal   Hillary Clinton says Biden’s age is a legitimate issue: ‘People have every right to consider it’ https://www.foxnews.com/politics/hillary-clinton-says-bidens-age-is-legitimate-issue-people-have-every-right-consider-it   @paulsperry_: HPSCI sources tell me that former Chairman Nunes sent Special Counsel John Durham more than a dozen criminal referrals — including for alleged perjury by witnesses including former FBI official Andrew McCabe — yet Durham sought grand jury indictments on none of them.   Biden to end familial DNA testing at border, key deterrent to fraud entry with children Reports indicate as many as one in three illegal immigrant adults suspected of bringing children who weren’t their own, turned out not to be related to them. (Why encourage child trafficking?) https://justthenews.com/government/security/exclusive-biden-end-familial-dna-testing-border-key-deterrent-fraud-entry   Seymour Hersh: The Ukraine Refugee Question – Ukraine’s neighbors push for Zelensky to pursue peace as millions of displaced people flow into Europe. (Biden at odds with European leaders)     The men in charge of today’s war—in Moscow, Kiev, and Washington—have shown no interest even in temporary ceasefire talks that could serve as a prelude to something permanent. The talk now is only about the possibilities of a late spring or summer offensive by either party.     Poland, Hungary, Lithuania, Estonia, Czechoslovakia, and Latvia… This group is led by Poland, whose leadership no longer fears the Russian army because its performance in Ukraine has left the glow of its success at Stalingrad during the Second World War in tatters. It has been quietly urging Zelensky to find a way to end the war—even by resigning himself, if necessary—and to allow the process of rebuilding his nation to get under way. Zelensky is not budging, according to intercepts and other data known inside the Central Intelligence Agency, but he is beginning to lose the private support of his neighbors… The European leaders have made it clear that “Zelensky can keep what he’s got”—a villa in Italy and interests in offshore bank accounts—“if he works up a peace deal even if he’s got to be paid off, if it’s the only way to get a deal.”… There is no support in the Biden Administration for any settlement that involves Zelensky’s departure…     “Ukraine is running out of money and it is known that the next four or months are critical. And Eastern Europeans are talking about a deal.”…      “Zelensky is telling us that if you want to win the war you’ve got to give me more money and more stuff. He tells us, ‘I’ve got to pay off the generals.’ He’s telling us”—if he is forced out of office—“he’s going to the highest bidder. He’d rather go to Italy than stay and possibly get killed by his own people.” https://scheerpost.com/2023/05/19/seymour-hersh-the-ukraine-refugee-question/   Medical school professor says parents must implement gender ideology for babies: ‘It… starts at birth’ – “Sometimes [a child’s gender identity] matches the chromosomes or the genitals that they were born with, but sometimes it doesn’t…There’s also a term non-binary, which means you’re someone who doesn’t necessarily identify with the categories of woman or man. “… (Not a sick parody!) https://www.foxnews.com/media/medical-school-professor-says-parents-must-implement-gender-ideology-for-babies-starts-birth   Leaked Policy Exposes Fox News Stances on Woke Ideology Fox News employees are allowed to use bathrooms that align with their gender identity, rather than their biological sex, and permitted to dress in alignment with their preferred gender. They must also be addressed by their preferred name and pronouns in the workplace… “Fox News Tonight” program were told not to bash Mulvaney. That directive came from high-level executives, the source said… https://www.dailysignal.com/2023/05/22/exclusive-leaked-policy-exposes-fox-news-stances-on-woke-ideology/   Fetterman wearing ‘hoodies and gym shorts’ in Senate shows ‘robust recovery,’ AP report claims The story also praised Fetterman for “turning heads” and “redefining fashion in the stuffy Senate.”… https://www.foxnews.com/media/fetterman-wearing-hoodies-gym-shorts-senate-shows-robust-recovery-ap-report-claims   Dumbed-down America is not a serious nation anymore.    Elise Stefanik, Republicans Push Back on Biden’s War on Chocolate Milk “This approach would reduce exposure to added sugars and would promote the more nutrient-dense choice of unflavored milk for young children when their tastes are being formed. The proposed regulatory text for this alternative would allow flavored milk only for high schools (grades 9-12).”… (Yet The Big Guy prides himself on being an ice cream cone glutton!) https://www.breitbart.com/politics/2023/05/20/elise-stefanik-republicans-push-back-on-bidens-war-on-chocolate-milk/   50 U.S. senators have been issued satellite phones for emergency communication — CBS

GREG HUNTER 

I will see you on WEDNESDAY