JUNE 27//TODAY IS OPTIONS EXPIRY DAY FOR THE COMEX PRECIOUS METALS//GOLD CLOSED DOWN $9.15 TO $1914.30 BUT SILVER CLOSED UP 7 CENTS TO $22.87//PLATINUM CLOSED UP 50 CENTS TO $929.45 WHEREAS PALLADIUM WAS HIT HARD FOR A LOST OF $17.30 TO $1298.15//IMPORTANT READS TODAY: MIKE MAHARREY//2 COMMENTARIES//THE BIG SHOCKER OF THE DAY IS THAT GERMAN AUTHORITIES THINK THAT THE BUNDESBANK MAY NEED A BAILOUT//SWEDEN ABANDONS THE STUPID ENERGY RENEWALS AND GOING FOR NUCLEAR ENERGY//MORE UPDATES ON THE PRIGOZHIN AFFAIR//COVID UPDATES/DR PAUL ALEXANDER/DR PANDA/SLAY NEWS/EWOL NEWS//SWAMP STORIES FOR YOU TONIGHT//
323 H HSBC 2 363 H WELLS FARGO SEC 2 435 H SCOTIA CAPITAL 5 661 C JP MORGAN 5 737 C ADVANTAGE 4 905 C ADM 10
TOTAL: 14 14 MONTH TO DATE: 20,115
JPMorgan stopped 5/14 contracts
FOR JUNE:
GOLD: NUMBER OF NOTICES FILED FOR JUNE/2023. CONTRACT: 14 NOTICES FOR 1400 OZ or 0.0435 TONNES
total notices so far: 20,115 contracts for 2,011,500 oz (62.566 tonnes)
FOR JUNE:
SILVER NOTICES: 429 NOTICE(S) FILED FOR 2,145,000 OZ/
total number of notices filed so far this month : 852 for 4,260,000 oz
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END
GLD
WITH GOLD DOWN $9.15
INVESTORS SWITCHING TO SPROTT PHYSICAL (PHYS) INSTEAD OF THE FRAUDULENT GLD//
/HUGE CHANGES IN GOLD INVENTORY AT THE GLD:////A WITHDRAWAL OF 1.45 TONNES OF GOLD FROM THE GLD.
INVENTORY RESTS AT 925.65 TONNES
Silver//
WITH NO SILVER AROUND AND SILVER UP 7 CENTS AT THE SLV// HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 734,000 OZ INTO THE SLV//
INVESTORS ARE SWITCHING SLV TO SPROTT’S PSLV.
CLOSING INVENTORY: 470.527 MILLION OZ
Let us have a look at the data for today
SILVER//OUTLINE
SILVER COMEX OI FELL BY A UBER ATMOSPHERIC SIZED 7492 CONTRACTS TO 134,156 AND FURTHER FROM THE RECORD HIGH OI OF 244,710, SET FEB 25/2020 AND THIS HUGE SIZED LOSS IN COMEX OI WAS ACCOMPLISHED DESPITE OUR $0.44 GAIN IN SILVER PRICING AT THE COMEX ON MONDAY. TAS ISSUANCE WAS A STRONG SIZED 861 CONTRACTS. THESE WILL BE USED FOR MANIPULATION LATER THIS 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 NIGHT: 861 CONTRACTS. DESPITE MANY COMPLAINTS THAT THE CROOKS HAVE VIOLATED POSITION LIMITS DUE TO THE FACT THAT THE TAS ISSUED HAVE A VALUE OF ZERO (AS TO POSITION LIMITS FOR OUR CROOKED BANKERS). THE PROBLEM OF COURSE IS THAT THE CROOKS DO NOT LIQUIDATE THE TAS TOGETHER BUT SELL THE BUY SIDE FIRST AND THEN LIQUIDATE THE SELL SIDE TWO MONTHS HENCE. IT IS OBVIOUS MANIPULATION TO THE HIGHEST DEGREE BUT IT NATURALLY FELL ON DEAF EARS WITH OUR REGULATORS (OCC) WHEN THEY RECEIVED OUR COMPLAINTS. IT THUS LOOKS LIKE THE FED (GOV’T) IS BEHIND ALL OF THESE TRADES.
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 ROSE BY $0.44). AND WERE SUCCESSFUL IN KNOCKING SOME SPEC LONGS AS WE HAD A HUGE LOSS ON OUR TWO EXCHANGES OF 7090CONTRACTS. 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 13.370MILLION OZ.). WE HAVE NOW RETURNED TO OUR USUAL AND CUSTOMARY SCENARIO: BANKERS SHORT AND SPECS LONG WITH MANIPULATION NOW MID MONTH AND BEYOND, DUE TO (TAS) MANIPULATION. TODAY WE WITNESSED HUGE SPREADER LIQUIDATION ON THE COMEX
WE MUST HAVE HAD:
A FAIR ISSUANCE OF EXCHANGE FOR PHYSICALS( 402 CONTRACTS) iiii) AN INITIAL SILVER STANDING FOR COMEX SILVER MEASURING AT 3.935 MILLION OZ(FIRST DAY NOTICE) FOLLOWED BY TODAY’S 0 OZ QUEUE JUMP + 0 MILLION OZ EXCHANGE FOR RISK(ISSUED TODAY: TOTAL ISSUED SO FAR: 13.370 MILLION OZ)// TOTAL STANDING FOR THE MONTH 4.270 MILLION OZ + 13.370 MILLION EXCHANGE FOR RISK = 17,640 MILLION OZ// ) // HUGE SIZED COMEX OI LOSS/ FAIR SIZED EFP ISSUANCE/VI) STRONG NUMBER OF T.A.S. CONTRACT ISSUANCE (861CONTRACTS)//HUGE COMEX SPREADER LIQUIDATION//
I AM NOW RECORDING THE DIFFERENTIAL IN OI FROM PRELIMINARY TO FINAL –400 CONTRACTS
HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS JUNE. ACCUMULATION FOR EFP’S SILVER/JPMORGAN’S HOUSE OF BRIBES/STARTING FROM FIRST DAY/MONTH OF JUNE:
TOTAL CONTRACTS for 17 days, total 20,230 contracts: OR 101.150 MILLION OZ (1190 CONTRACTS PER DAY)
TOTAL EFP’S FOR THE MONTH SO FAR: 101.150 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: 207.140 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: 112.58MILLION OZ//FINAL//STRONG ISSUANCE
APRIL 118.035 MILLION OZ(SLIGHTLY GREATER THAN THAN LAST MONTH)
MAY 66.120 MILLION OZ/INITIAL (MUCH SMALLER THIS MONTH)
JUNE: 101.150 MILLION OZ//MUCH LARGER THAN LAST MONTH
RESULT: WE HAD A HUMONGOUS SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 7492 CONTRACTS DESPITE OUR GAIN IN PRICE OF $0.44 IN SILVER PRICING AT THE COMEX//MONDAY.,. THE CME NOTIFIED US THAT WE HAD A FAIR EFP ISSUANCE CONTRACTS: 402 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 JUNE OF 3.935 MILLION OZ FOLLOWED BY TODAY’S 0 OZ QUEUE JUMP+ 0 MILLION EXCHANGE FOR RISK TODAY + 13.37 MILLION EXCHANGE FOR RISK(PRIOR)//NEW TOTAL STANDING: 17.640 MILLION OZ////// .. WE HAVE A HUGE SIZED LOSS OF7090 OI CONTRACTS ON THE TWO EXCHANGES. THE TOTAL OF TAS INITIATED CONTRACTS TODAY: A STRONG 861//SOME FRONT END OF THE TAS CONTRACTS WERE LIQUIDATED DURING THE MONDAY COMEX SESSION BUT THE REAL LIQUIDATION TODAY WAS THAT OF COMEX SPREADERS . THE NEW TAS ISSUANCE TODAY (861) WILL BE PUT INTO “THE BANK” TO BE COLLUSIVELY USED AT A LATER DATE.
WE HAD 429 NOTICE(S) FILED TODAY FOR 2,145,000 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 SMALL SIZED 503 CONTRACTS TO 437,216 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 –1727 CONTRACTS
WE HAD A SMALL SIZED DECREASE IN COMEX OI ( 503 CONTRACTS) DESPITE OUR $4.65 GAIN IN PRICE. WE ALSO HAD A STRONG INITIAL STANDING IN GOLD TONNAGE FOR JUNE. AT 70.79 TONNES ON FIRST DAY NOTICE FOLLOWED BY TODAY’S 0.02799 TONNE E.F.P JUMP TO LONDON: NEW TOTAL 64.307 TONNES STANDING SO FAR // + /A SMALL ISSUANCE OF 531 T.A.S. CONTRACTS ////YET ALL OF..THIS HAPPENED WITH A $4.65 GAIN IN PRICEWITH RESPECT TO MONDAY’S TRADING.WE HAD A SMALL SIZED GAIN OF 452 OI CONTRACTS (1.405 PAPER TONNES) ON OUR TWO EXCHANGES.
E.F.P. ISSUANCE
THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A SMALL SIZED 955 CONTRACTS:
The NEW COMEX OI FOR THE GOLD COMPLEX RESTS AT 437,216
IN ESSENCE WE HAVE A SMALL SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 452 CONTRACTS WITH 503 CONTRACTS DECREASED AT THE COMEX//TAS CONTRACTS INITIATED (ISSUED): A SMALL 531 CONTRACTS) AND 955 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS TOTAL OI GAIN ON THE TWO EXCHANGES OF 452CONTRACTS OR 1.405 TONNES.
CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES
WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS (955 CONTRACTS) ACCOMPANYING THE SMALL SIZED LOSS IN COMEX OI (503) //TOTAL GAIN FOR OUR THE TWO EXCHANGES: 452 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 JUNE AT 70.79 TONNES FOLLOWED BY TODAY’S 900 OZ E.F.P. JUMP TO LONDON //// NEW STANDING FALLS TO 64.307 TONNES// /3) ZERO LONG LIQUIDATION//4) SMALL SIZED COMEX OPEN INTEREST LOSS/ 5) SMALL ISSUANCE OF EXCHANGE FOR PHYSICAL PAPER///6: SMALL T.A.S. ISSUANCE: 531 CONTRACTS
HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2023 INCLUDING TODAY
JUNE
ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JUNE :
TOTAL EFP CONTRACTS ISSUED: 41,047 CONTRACTS OR 4,104,700 OZ OR 127.67 TONNES IN 17 TRADING DAY(S) AND THUS AVERAGING: 2414 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 127.67 TONNES
TOTAL ANNUAL GOLD PRODUCTION, 2022, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES
THUS EFP TRANSFERS REPRESENTS 127.67/3550 x 100% TONNES 3.57% OF GLOBAL ANNUAL PRODUCTION
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
MAY: 236.67 TONNES (A VERY STRONG ISSUANCE FOR THIS MONTH)
JUNE: 127.67 TONNES
SPREADING OPERATIONS
(/NOW SWITCHING TO GOLD) FOR NEWCOMERS, HERE ARE THE DETAILS
SPREADING LIQUIDATION HAS NOW COMMENCED AS WE HEAD TOWARDS THE NEW ACTIVE FRONT MONTH OF JUNE. WE ARE NOW INTO THE SPREADING OPERATION OF 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 AN ATMOSPHERIC SIZED 7492 CONTRACTS OI TO 134,156AND FURTHER FROM 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 402 CONTRACTS
OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:
JULY 402and ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 402 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 7492 CONTRACTS AND ADD TO THE 402OI TRANSFERRED TO LONDON THROUGH EFP’S,
WE OBTAIN A GIGANTIC SIZED LOSS OF OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES OF 7190 CONTRACTS
THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES TOTAL 35.450 MILLION OZ
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 UP 38.42 PTS OR 1.48% //Hang Seng CLOSED UP 354.00 PTS OR 1.88% /The Nikkei closed DOWN 160.48 OR 0.49% //Australia’s all ordinaries CLOSED UP 53 % /Chinese yuan (ONSHORE) closed UP 7.2164 /OFFSHORE CHINESE YUAN UP TO 7.2188 /Oil DOWN TO 68.18 dollars per barrel for WTI and BRENT DOWN AT 72.32 / Stocks in Europe OPENED ALL MIXED// ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST US DOLLAR/OFFSHORE STRONGER
1. COMEX DATA//AMOUNTS STANDING//VOLUME OF TRADING/INVENTORY MOVEMENTS
GOLD
LET US BEGIN:
THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A SMALL SIZED 503 CONTRACTS UP TO 437,216 WITH OUR GAIN IN PRICE OF $4.65 ON MONDAY,
EXCHANGE FOR PHYSICAL ISSUANCE
WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF JUNE… THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS.,
THAT IS 955 EFP CONTRACTS WERE ISSUED: : AUGUST 955 & ZERO FOR ALL OTHER MONTHS:
TOTAL EFP ISSUANCE: 955 CONTRACTS
ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A SMALL SIZED TOTAL OF 452 CONTRACTS IN THAT 955LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE HAD A SMALL SIZED LOSS OF 503 COMEX CONTRACTS..AND THIS SMALL SIZED GAIN ON OUR TWO EXCHANGES HAPPENED WITH OUR GAIN IN PRICE OF $4.65//MONDAY COMEX. 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 FOR MONDAY NIGHT WAS A SMALL 531 CONTRACTS. THROUGHOUT LAST WEEK, THE BANKERS SOLD OFF 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)//THE HUGE NUMBER OF T.A.S. CONTRACTS INITIATED OVER THE PAST SEVERAL WEEKS SPELLS TROUBLE FOR THE GOLD/SILVER MARKET AS RAIDS WILL SURELY BE UPON US.
// WE HAVE A STRONG AMOUNT OF GOLD TONNAGE STANDING: JUNE (64.307) ( 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. 64.000 tonnes
(TOTAL YEAR 656.076 TONNES)
2023:
JAN/2023: 20.559 tonnes
FEB 2023: 47.744 tonnes
MAR: 19.0637 TONNES
APRIL: 75.676 tonnes
MAY: 19.094 TONNES + 1.244 tonnes of exchange for risk = 20.338
JUNE: 64.307 TONNES
THE SPECS/HFT WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE( IT ROSE $5.15) //// AND WERE UNSUCCESSFUL IN KNOCKING ANY SPECULATOR LONGS AS WE HAD OUR SMALL GAIN OF 452 CONTRACTS ON OUR TWO EXCHANGES. WE HAD MINOR TAS LIQUIDATION THROUGHOUT THE MONDAY COMEX SESSION . THE TAS ISSUED MONDAY NIGHT, WILL BE “PUT INTO THE BANK” TO BE USED AT A LATER DATE AT THE COLLUSIVE CHOOSING OF OUR BANKERS.
WE HAVE GAINED A TOTAL OI OF 1.405PAPER TONNES OF TOTAL OI FROM OUR TWO EXCHANGES, ACCOMPANYING OUR INITIAL GOLD TONNAGE STANDING FOR JUNE. (70.709 TONNES) FOLLOWED BY TODAY’S 900 OZ E.F.P. JUMP TO LONDON..NEW STANDING FALLS TO 64.307 TONNES // ALL OF THIS WAS ACCOMPLISHED WITH OUR GAIN IN PRICE TO THE TUNE OF $4.65
WE HAD –REMOVED A WHOPPING 1727 CONTRACTS TO THE COMEX TRADES TO OPEN INTEREST AFTER TRADING ENDED LAST NIGHT
NET GAIN ON THE TWO EXCHANGES 452 CONTRACTS OR 45200 OZ OR 1.405 TONNES.
Total monthly oz gold served (contracts) so far this month
20,115 notices 2,011,500 OZ 62.566 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
No dealer withdrawals
Customer deposits: 0
total dealer deposits: nil oz
we had 0 customer deposit:
total deposits: nil oz
Withdrawals: 1
i) out of Brinks: 32.151 oz
total 32.151 oz
Adjustments; 0
CALCULATIONS FOR THE AMOUNT OF GOLD STANDING FOR JUNE.
For the front month of JUNE we have an oi of 574 contracts having LOST 37 contracts. We had 28 contracts served on Monday so we LOST 9 contracts or an additional 900 oz will NOT stand for gold at the comex as these guys were EFP’d to London
The next front month after June is the non active delivery month of July. Here, July LOST 173 contracts to stand at 2065 contracts.
AUGUST LOST 2961 contracts DOWN to 352,829 contracts
We had 14 contracts filed for today representing 1400 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 14 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 5 notice(s) was (were) stopped received by J.P.Morgan//customer account and 0 notice(s) received (stopped) by the squid (Goldman Sachs)
To calculate the INITIAL total number of gold ounces standing for the JUNE /2023. contract month,
we take the total number of notices filed so far for the month (20,115 x 100 oz ), to which we add the difference between the open interest for the front month of JUNE (574 CONTRACT) minus the number of notices served upon today 14 x 100 oz per contract equals 2,067,500 OZ OR 64.307 TONNES the number of TONNES standing in this active month of June.
thus the INITIAL standings for gold for the JUNEcontract month: No of notices filed so far (20,115) x 100 oz + (574) {OI for the front month} minus the number of notices served upon today (14) x 100 oz) which equals 2,067,500 oz standing OR 64.307 TONNES
TOTAL COMEX GOLD STANDING: 64.307 TONNES WHICH IS HUGE FOR AN ACTIVE DELIVERY MONTH.
To calculate the number of silver ounces that will stand for delivery in JUNE. we take the total number of notices filed for the month so far at 852 x 5,000 oz = 4,260,000 oz
to which we add the difference between the open interest for the front month of JUNE(431) and the number of notices served upon today 429 x (5000 oz) equals the number of ounces standing.
Thus the standings for silver for the JUNE/2023 contract month: 852 (notices served so far) x 5000 oz + OI for the front month of JUNE (431) – number of notices served upon today (429 )x 500 oz of silver standing for the JUNE contract month equates to 4.270 million oz + 2.935 EXCHANGE FOR RISK TODAY + 10.435MILLION OZ EXCHANGE FOR RISK (PRIOR)//NEW TOTAL: 17.640 MILLION OZ STANDING
the record level of silver open interest is 234,787 contracts set on April 21./2017 with the price on that day at $18.42. The previous record was 224,540 contracts with the price at that time of $20.44
END
GLD AND SLV INVENTORY LEVELS
JUNE 27/WITH GOLD DOWN $9.15 TODAY HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.45 TONNES OF GOLD FROM THE GLD./INVENTORY RESTS AT 925.65 TONNES
JUNE 26/WITH GOLD UP $4.65 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.6 TONNES OF GOLD FROM THE GLD/////INVENTORY RESTS AT 927.10 TONNES
JUNE 23/WITH GOLD UP $5.15 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: WITHDRAWALS OF 4.33 TONNES OF GOLD OVER THE PAST TWO DAYS. /INVENTORY RESTS AT 929.70 TONNES
JUNE 21/WITH GOLD DOWN $2.45 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY REST AT 934.03 TONES
JUNE 20/WITH GOLD DOWN $22.40 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 934.03 TONNES
JUNE 16/WITH GOLD UP $0.70 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.33 TONNES OF GOLD INTO THE GLD///INVENTORY RESTS AT 934.03 TONNES
JUNE 15/WITH GOLD UP $2.80 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.74 TONNES OF GOLD FROM THE GLD//INVENTORY RESTS AT 929.70 TONNES
JUNE 14/WITH GOLD UP $10.30 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 931.44 TONNES
JUNE 13/WITH GOLD DOWN $10.30 TODAY:HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.01 TONNES FORM THE GLD///INVENTORY RESTS AT 931.44
JUNE 12/WITH GOLD DOWN $7.10 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 934.65 TONNES
JUNE 9/WITH GOLD DOWN $1.00: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 934.65 TONNES
JUNE 8/WITH GOLD UP $20.45 TODAY; HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.46 TONNES FROM THE GLD///INVENTORY RESTS AT 934.65 TONNES
JUNE 7 WITH GOLD DOWN $22.15 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.45 TONNES OF GOLD FROM THE GLD////INVENTORY RESTS AT 938.11 TONNES
JUNE 6/WITH GOLD UP $6.90 TODAY; HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.45 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 939.56 TONNES
JUNE 5/WITH GOLD UP $5.00 TODAY : NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 938.11 TONNES
JUNE 2/WITH GOLD DOWN $24.40 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.45 TONNES FROM THE GLD///INVENTORY RESTS AT 938.11 TONNES
JUNE 1/WITH GOLD UP $14.10 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 939.56 TONNES
MAY 31/WITH GOLD UP $5.70 TODAY: HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.73 TONNES OF GOLD FROM THE GLD///INVENTORY RESTS AT 939.56 TONNES
MAY 30/WITH GOLD UP $14.55 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 941.29 TONNES
MAY 26/WITH GOLD UP $.90 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY REST AT 941.29 TONNES
MAY 25/WITH GOLD DOWN $19.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 941.29 TONNES
MAY 24/WITH GOLD DOWN $9.50 TODAY:HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.45 TONNES OF GOLD FROM THE GLD////INVENTORY RESTS AT 941.29 TONNES
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
GLD INVENTORY: 925.65 TONNES
Now the SLV Inventory/( vehicle is a fraud as there is no physical metal behind them
JUNE 27/WILVER SILVER UP 7 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 734,000 OZ INTO THE SLV////INVENTORY RESTS AT 470.527 MILLION OZ
JUNE 26/WITH SILVER UP 44 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY REST AT 469.793 MILLION OZ.
JUNE 23/WITH SILVER DOWN 9 CENTS TODAY HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A NET DEPOSIT OF 6.61 MILLION OZ INTO THE SLV OVER THESE PAST TWO DAYS//INVENTORY RESTS AT 469.793 MILLION OZ//
JUNE 21/WITH SILVER DOWN $.40 TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 5.784 MILLION OZ OF SILVER INTO THE SLV////INVENTORY RESTS AT 463.183 MILLION OZ//
JUNE 20/WITH SILVER DOWN 89 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 463.183 MILLION OZ//
JUNE 16/WITH SILVER UP 23 CENTS TODAY :SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 459,000 OZ FROM THE SLV///INVENTORY RESTS AT 463.183 MILLION OZ
JUNE 15/WITH SILVER DOWN 17 CENTS TODAY; HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.377 MILLION OZ OF SILVER FROM THE SLV////INVENTORY RESTS AT 463.642 MILLION OZ//
JUNE 14/WITH SILVER UP 29 CENTS TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 735,000 OZ FROM THE SLV///INVENTORY RESTS AT 465.019 MILLION OZ//
JUNE 13/WITH SILVER DOWN 25 CENTS TODAY; HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.515 MILLION OZ OF SILVER FROM THE SLV///INVENTORY RESTS AT 465.754 MILLION OZ//
JUNE 12/WITH SILVER DOWN 26 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 467.269 MILLION OZ//
JUNE 9/WITH SILVER UP 7 CENTS TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF SILVER TO THE TUNE OF 550,000 OZ//INVENTORY RESTS AT 467.269 MILLION OZ
JUNE 8/WITH SILVER UP $0.63 TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 467.819 MILLION OZ/
JUNE 7/WITH SILVER DOWN 17 CENTS TODAY:HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.01 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 467.819 MILLION OZ/
JUNE 6/WITH SILVER UP 7 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 466.809 MILLION OZ//
JUNE 5/WITH SILVER DOWN $.13 TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 266,000 OZ FROM THE SLV////INVENTORY RESTS AT 466.809 MILLION OZ/
JUNE 2/WITH SILVER DOWN 23 CENTS TODAY: SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 918,000 OZ FROM THE SLV./INVENTORY RESTS AT 467.015 MILLION OZ/
JUNE 1/WITH SILVER UP 49 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 467.933 MILLION OZ
MAY 31/WITH SILVER UP 37 CENTS TODAY:SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 367,000 OZ FROM THE SLV////INVENTORY RESTS AT 467.933 MILLION OZ//
MAY 30/WITH SILVER DOWN 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 468.300 MILLION OZ//
MAY 26/WITH SILVER UP $0.44 TODAY: HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 3.306 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 468.300 MILLION OZ//
MAY 25.WITH SILVER DOWN $0.32 TODAY; SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 276,000 OZ INTO THE SLV////INVENTORY RESTS AT 471.606 MILLION OZ//
MAY 24/WITH SILVER DOWN $.35 TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 471.330 MILLION OZ//
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//
CLOSING INVENTORY 470.527 MILLION OZ//
PHYSICAL GOLD/SILVER COMMENTARIES
1:Peter Schiff/Mike Maharrey
What Would The Founding Fathers Say About Our National Debt?
As we approach America’s birthday on July 4, it might be a good time to consider what the founding fathers would have thought about this massive indebtedness.
James Madison might have summed it up best when he called a national debt “a national curse.”
I go on the principle that a Public Debt is a Public curse and in a Rep. Govt. a greater than in any other.”
The antifederalist writer Brutus made a similar point, writing.
I can scarcely contemplate a greater calamity that could befall this country, than to be loaded with a debt exceeding their ability ever to discharge.”
Thomas Jefferson said he considered “public debt as the greatest of the dangers to be feared,” and he warned that in order to preserve the people’s independence, “we must not let our rulers load us with perpetual debt.”
He also talked about the urgency of paying off debts, saying it would help preserve peace.
It is incumbent on every generation to pay its own debts as it goes. A principle which, if acted on, would save one half the wars of the world”
Jefferson went on to explain just what would happen if we failed to heed his warning.
If we run into such debts as that we must be taxed in our meat and in our drink, in our necessaries & our comforts, in our labors & our amusements, for our callings and our creeds, as the people of England are, our people, like them, must come to labor 16 hours in the 24 give the earnings of 15 of these to the government for their debts and daily expences; and the 16th being insufficient to afford us bread, we must live, as they now do, on oatmeal & potatoes.”
Benjamin Franklin warned that running into debt gives “to another Power over your Liberty.”
Madison shared Franklin’s view, naming debt among a trio of tools that people with power use to establish tyranny.
Armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few.” [Emphasis added]
In his Farewell Address, George Washington urged the country to use debt sparingly and pay it off as quickly as possible.
As a very important source of strength and security, cherish public credit. One method of preserving it is to use it as sparingly as possible, avoiding occasions of expense by cultivating peace, but remembering also that timely disbursements to prepare for danger frequently prevent much greater disbursements to repel it.”
He made a similar point in his Fifth Annual Message to Congress.
No pecuniary consideration is more urgent than the regular redemption and discharge of the public debt. On none can delay be more injurious or an economy of time more valuable.”
Jefferson gave us a blueprint for how to handle the debt.
I am for a government rigorously frugal and simple, applying all the possible savings of the public revenue to the discharge of the national debt and not for a multiplication of officers & salaries merely to make partizans, & for increasing, by every device, the public debt, on the principle of it’s being a public blessing.” [Emphasis added]
For many in the founding generation, loading future generations with debt was morally unacceptable and something that should be rejected. Washington referred to it as “ungenerously throwing upon posterity the burden which we ourselves ought to bear.”
Jefferson agreed, writing to John Taylor that “the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”
A $32 trillion national debt is just another example of how far America has drifted from its founding principles.
There has been a steady migration of gold from West to East over the last three decades.
When the World Gold Council published its first Gold Demand Trends report 30 years ago, Asian demand made up 45% of the world’s total. Today, the Asian share of global gold demand is approaching 60%.
China and India have driven this migration of gold East. The World Gold Council describes the two countries as “super consumers” of gold. Thirty years ago, China and India accounted for about 20% of annual consumer gold demand. Today, the two countries make up nearly 50% of gold demand.
The Indian gold revolution started in the early to mid-1990s when government policy changes freed up the market. In 1992, gold demand in India accounted for 340 tons. In 2022, that had more than doubled to 742 tons.
India now ranks as the second-largest gold-consuming country in the world behind China.
Gold is not just a luxury in India. Even poor people buy gold in the Asian nation. According to an ICE 360 survey in 2018, one in every two households in India purchased gold within the last five years. Overall, 87% of households in the country own some amount of the yellow metal. Even households at the lowest income levels in India own some gold. According to the survey, more than 75% of families in the bottom 10% had managed to buy gold.
Indians traditionally buy and hold gold. Collectively, Indian households own an estimated 25,000 tons of gold and that number may be higher given the large black market in the country. The yellow metal is interwoven into the country’s marriage ceremonies and cultural rites. Indians also value gold as a store of wealth, especially in poor rural regions. Two-thirds of India’s gold demand comes from these areas, where most people live outside the official tax system.
We’ve seen a similar trajectory in China. The country also has played a significant cultural role in China, but through the last half of the 1900s, Chinese individuals were banned from buying gold. The government eased restrictions in the 1990s, and in 2002, the Shanghai Gold Exchange. Within two years, the market was completely liberalized.
China’s annual gold consumption rose fivefold from just over 375 tons in the early 1990s to a record high of 1,347 tons in 2013. Since then, China has ranked as the world’s largest gold-consuming country.
Economic growth has helped spur demand for gold in the East. As the World Gold Council explained, “This surge in demand was not just an expression of exuberance by Chinese investors free to buy gold. It was also driven by explosive economic growth, rapid urbanization and the desire for a simple alternative to the limited range of investments available domestically. The industry, acknowledging this desire for gold investment products, responded with innovation and speed.”
In other words, rising affluence is intersecting with the East’s traditional affinity for gold.
Turkey, Thailand and Saudi Arabia have also reported increased imports of gold in recent years.
We also see the eastward shift of gold in central bank gold buying. The biggest buyers in recent years have all been in the East. Countries steadily increasing gold reserves include China, India, Turkey, and Singapore.
We saw the migration of gold from West to East on a micro level in late 2022. Many Western investors – particularly at the institutional level – were dumping bullion. Meanwhile, Asian buyers took advantage of lower prices to snap up less expensive jewelry, coins, and bars.
According to a fall 2022 Bloomberg report, “large volumes of metal are being drawn out of vaults in financial centers like New York and heading east to meet demand in Shanghai’s gold market or Istanbul’s Grand Bazaar.”
New York and London vaults reported an exodus of more than 527 tons of gold between April and October 2022, according to data from the CME Group and the London Bullion Market Association. At the same time, gold imports into China hit a four-year high in August 2022.
In the East, many people use gold as their primary form of savings and wealth preservation. An article published by Seeking Alpha summarizes this dynamic.
For millions of people in Asia gold still is the ‘basic form of saving.’ In contrast to the West, where financialization started decades ago, and gold has slowly been removed from people their day-to-day lives. Until a financial crisis emerges, that is. In the West, people own little or no physical gold when they feel financially confident. People in the East have retained a long-term view concerning gold. Their ancestors saved in gold, and so have they been taught. With the knowledge that ultimately, gold doesn’t lose its purchasing power.”
Trying to get gold when a crisis rears its ugly head is a little like trying to get insurance when your house is on fire.
Western investors spurn gold to their own detriment.
Between March 10 and May 1 of this year, three of the largest bank failures in U.S. history occurred.
On March 10 the Federal Deposit Insurance Corporation (FDIC) seized Silicon Valley Bank after $42 billion in deposits had exited the bank the day prior with another $100 billion queued up to leave the next day – meaning it was possible for a federally-insured bank to lose 85 percent of its deposits in the span of 48 hours in the digital age. (For a closer look at what was going on at Silicon Valley Bank, see our report: Silicon Valley Bank Was a Wall Street IPO Pipeline in Drag as a Federally-Insured Bank; FHLB of San Francisco Was Quietly Bailing It Out.)
Two more bank failures followed in short order: Signature Bank on March 12 and First Republic Bank on May 1. Both banks were experiencing bank runs as a result of a loss of confidence by their customers.
First Republic Bank, Silicon Valley Bank, and Signature Bank were the second, third and fourth largest bank failures in U.S. history, respectively. (The largest failure was Washington Mutual during the financial crisis of 2008.)
The Fed’s answer to this crisis of confidence was to allow JPMorgan Chase, officially the riskiest U.S. bank with a string of felonies, to buy the failed First Republic Bank. At the time, First Republic was the 14th largest bank in the U.S. and JPMorgan Chase was the number 1 largest bank with $3.3 trillion in consolidated assets. (Is there any logic, whatsoever, in allowing the riskiest bank in the United States to get even larger? The only possible explanation is regulatory capture.)
So here we are today. The banking crisis has pretty much disappeared from the headlines but the smoldering remnants of the crisis are very much still with us.
The Federal Reserve has released a listing of the largest banks in the United States by assets as of March 31, 2023. We decided to check to see how much the 15 largest banks by assets have lost in market value in the past year and a half – from their closing price on December 31, 2021 to their closing price yesterday, June 26, 2023.
Per the chart above, among the 15 largest banks, the following five banks have performed the worst in terms of share price declines since December 31, 2021: Truist Bank (ticker TFC), Citizens Bank (CFG), U.S. Bank (USB), PNC Bank (PNC), and Bank of America (ticker BAC).
Bank of America is the second largest bank in the United States with $2.5 trillion in consolidated assets and 3,804 domestic bank branches. It has lost 37 percent of its market value (market capitalization) in a year and a half.
But by far, the worst performer in the above group is Truist Bank – a name that grew out of the merger of SunTrust and BB&T banks in 2019. Truist Bank has lost 49 percent of its market value in a year and a half.
As of March 31, Truist was the sixth largest bank in the United States with consolidated assets of $565 billion and a whopping 2,006 branches. According to its regulatory filing of March 31, it held a total of $416.9 billion in deposits, of which $176 billion were uninsured deposits, or 42 percent.
Uninsured deposits, those exceeding the FDIC’s $250,000 insurance cap per depositor/per bank, were one of the key problems in the run on the banks earlier this year.
As we reported in January, in the past decade and a half, the Fed has rarely seen a bank merger it couldn’t wrap its arms around. (See In 16 Years, the Fed Has Approved 4,506 Bank Mergers and Denied One.) But there was one regulator’s voice that did speak out boldly regarding the SunTrust and BB&T merger in 2019.
At the time, Martin Gruenberg was a member of the Board of Directors of the FDIC. (Today, he is the Chairman of the FDIC.) This is a portion of his stated concerns on the merger that created today’s Truist:
“Based on September 30, 2019 Call Report data, BB&T and SunTrust together hold approximately $150 billion in deposits in excess of the deposit insurance limit. The combined institution is expected to hold approximately $331 billion in deposits, indicating that about 45 percent of the deposits would be uninsured. In addition, the combined institution is expected to have over 14 million deposit accounts based on recent Call Report data from the individual institutions.
“Total assets of the combined institution are expected to be about $450 billion. The individual institutions each report some long-term unsecured debt, which if combined would amount to approximately 3.6 percent of total assets at the time of the merger.
“In the event of failure of the merged institution, the universe of potential acquirers would be quite limited for an institution of this size. It is likely that only a Global Systemically Important Bank, or GSIB, would have the capacity to make such an acquisition. Even then, based on the experiences in the financial crisis, interest in, and support for, such acquisitions may be limited among the GSIBs. Absent a viable purchase and assumption bid, the FDIC would likely have to establish a bridge bank to manage an orderly failure of the institution.
“The large branch network, substantial IT systems, and millions of account holders would make the management of a bridge bank a significant operational challenge. The volume of accounts, combined with the estimates of uninsured deposits, would also pose a challenge to an orderly resolution with a rapid deposit insurance determination over the course of a weekend.”
There was also this from Gruenberg:
“Given the limited availability of potential acquirers if the merged institution were to fail, the heavy reliance on uninsured depositors, and the lack of an unsecured debt requirement, the failure could well pose a ‘risk to the stability of the United States banking or financial systems.’ ”
Despite these grave warnings, the merger went through.
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 UP TO 7.2164
OFFSHORE YUAN: DOWN TO 7.2188
SHANGHAI CLOSED UP 38.82 PTS OR 1.23%
HANG SENG CLOSED UP 354.00 PTS OR 1.88%
2. Nikkei closed DOWN 160.48 PTS OR 0.49%
3. Europe stocks SO FAR: ALL MIXED
USA dollar INDEX DOWN TO 102.19 EURO RISES TO 1.0947 UP 37 BASIS PTS
3b Japan 10 YR bond yield: RISES TO. +.371 Japan buying 100% of bond issuance)/Japanese YEN vs USA cross now at 143.62/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 UP /JAPANESE Yen UP CHINESE ON SHORE 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 DOWN for WTI and DOWN FOR Brent this morning
3h European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund DOWN TO +2.297***/Italian 10 Yr bond yield RISES to 3.935*** /SPAIN 10 YR BOND YIELD RISES TO 3.272…** DANGEROUS//
3i Greek 10 year bond yield FALLS TO 3.498
3j Gold at $1924.50 silver at: 22.87 1 am est) SILVER NEXT RESISTANCE LEVEL AT $30.00
3k USA vs Russian rouble;// Russian rouble UP 0 AND 1 /100 roubles/dollar; ROUBLE AT 85.09//
3m oil into the 68 dollar handle for WTI and 72 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 143.62// 10 YEAR YIELD AFTER BREAKING .54%, RISES TO .371% 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 0.8943 as the Swiss Franc is still rising against most currencies. Euro vs SF 0.9789 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: 3.721 UP 1 BASIS PTS…
USA 30 YR BOND YIELD: 3.810 UP 1 BASIS PTS/
USA 2 YR BOND YIELD: 4.679 UP 0 BASIS PTS
USA DOLLAR VS TURKISH LIRA: 26.04…(TURKEY SET TO BLOW UP FINANCIALLY)
GREAT BRITAIN/10 YEAR YIELD: UP 2 BASIS PTS AT 4.3515 UP 5 BASIS PTS
end
2. Overnight: Newsquawk and Zero hedge:
Futures Rally Fizzles After Lagarde Dashes Hopes Of End To ECB Rate Hikes
TUESDAY, JUN 27, 2023 – 08:22 AM
After starting off strong, US equity futures have again faded a modest attempt to rally, and are back to unchanged as they revert to the declining trendline from the 2023 high hit on June 16 but followed by the worst week since March amid rising recession fears. At 7:45am ET, S&P futures were just barely in the green. Nasdaq 100 futures added 0.4%, as traders positioned for a rebound after the tech benchmark sank 1.4% on Monday.
In Europe, the Stoxx 600 Index also ceded its opening gains after ECB President Christine Lagarde dashed hopes of an imminent end to the interest-rate hiking cycle in her opening remarks to the ECB retreat in Sintra; global equity markets are attempting to shake off recent weakness amid renewed expectations for China stimulus which helped push HK/Mainland stocks higher after Premier Li reiterated the 5% GDP target remains on track. This optimism is pushing base metals higher ex-copper; the moves are aided by a slightly weaker USD while 10-year Treasury bond yields rose; crude dropped more than 1% and copper followed. Today, we have a 5Y bond auction which JPM says should be well digest given yield levels. IMF’s Gopinath says central banks may need to tolerate higher inflation to avoid financial crises, indicating once again that the Fed will inevitably have to raise its inflation target. Today’s macro data focus includes Durable/Cap Goods, Home Price data, regional Fed mfg indicators, and Consumer Confidence.
In premarket trading, Tesla shares rebounded by 1.7% after the electric-vehicle maker slid over 6% Monday following a downgrade from Goldman Sachs on a difficult pricing environment; Advanced Micro Devices and Meta Platforms advanced. Here are some other notable premarket movers:
Lordstown Motors more than halved after the electric-vehicle maker, once hailed by former US President Donald Trump for saving automaking jobs, filed for bankruptcy.
Snowflake shares rise as much as 4.4% in US premarket trading, set to reverse the previous session’s losses, after the software company announced an AI-related partnership with Nvidia.
US-listed Chinese stocks rise in premarket trading, set to bounce back from recent declines as Beijing regulators firm up control over Chinese markets. Alibaba (BABA US) rises 1.8%, Baidu (BIDU US) +1.7%.
American Equity shares surged 9.5% in postmarket trading after Bloomberg News reported that Canadian investment giant Brookfield has made a cash and stock offer that’s set to be recommended by the insurer’s board.
Applied Digital Corp. fell 4.5% postmarket after the datacenter designer and operator posted preliminary fiscal 4Q revenue that fell shy of estimates.
Markets are coming to terms with the view that the Federal Reserve won’t cut interest rates this year and other central banks will continue raising rates to quell inflation. Morgan Stanley economists said in research note on Tuesday that they see the Fed hiking by 25 basis points next month. On the positive side, there’s also growing speculation among investors that any recession may be shallow and less damaging to earnings than expected.
“Growth has held up well thus far,” said Mark Dowding, chief investment officer at BlueBay Asset Management. “With central banks nearing the end of their rate hiking cycles, this has fed hopes of a relatively soft landing in economic terms, without a more severe recession.”
Earlier in the session, Asian stocks were mostly positive as the risk tone improved following a weak US session, encouraged by a fresh round of China stimulus hopes.
Hang Seng and Shanghai Comp were firmer with Hong Kong led by gains in tech and property after the PBoC’s continued liquidity efforts, while Premier Li pledged to roll out effective policy measures during his speech at the WEF in Tianjin and it was also reported that US Treasury Secretary Yellen is planning a trip to China in July.
ASX 200 gained as strength in financials and cyclicals picked up the slack from the losses in tech and telecoms.
Nikkei 225 was pressured in a continued pullback from the 33,000 level amid increasing speculation that the recent currency weakness could force the BoJ’s hand regarding YCC.
In Europe, the Stoxx 600 Index dipped 0.1%, marking a seventh day of declines and the longest losing streak since February 2018. Among individual stock movers, Amsterdam-listed Prosus NV jumped 6% after winning regulatory approval to remove its cross-holding structure with Naspers Ltd. Volkswagen AG dragged autos stocks down following a report that it’s planning to cut back production of one of its electric SUV models due to weak sales.
Lenders were the best performing sector in Europe as ECB officials reiterated their view that interest rates hikes will continue. ECB President Christine Lagarde said the central bank probably won’t be able to declare the end of its historic cycle of interest- rate increases anytime soon and reiterated plan for another hike at the next meeting in July. Lagarde speech kicked off annual ECB retreat in Sintra, Portugal. The Stoxx 600 Banks Index was 0.5% higher as of 11:20am in London vs a 0.2% decline in the Stoxx 600 Index. Santander +2.8%, CaixaBank +2.5%, Banco BPM, +1.5%, Commerzbank +1.5%. Here are some other notable European movers:
Wise rises as much as 21% after after the money-transfer firm boosted its 2024 outlook. It is the strongest stock on the Stoxx 600 on Tuesday, with the shares turning positive year-to- date.
Prosus gains as much as 10% in Amsterdam after the tech investor and its parent Naspers said they received South African approval to remove their cross-holding structure.
Telecom Plus rises as much as 13% after the multi-utilities firm’s full-year results, with Peel Hunt describing the update as “reassuring and encouraging,” saying FY23 has been “stellar.”
SES-imagotag climbs as much as 21%, on course for a second session of recovery, as the French company seeks to reassure investors after Friday’s critical short-seller report.
Carnival rises as much as 7.3% in London, recovering part of the previous day’s slump, after Morgan Stanley raised its price target. The stock fell 12% on Monday after disappointing 2Q results.
JD Sports drops as much as 6.4% to the lowest in more than five months after the sportswear retailer gave a trading update. Peel Hunt says the US market slowed more than expected in 2Q.
Fresenius Medical Care drops as much as 5.1% after a proposal for US medicare payments for dialysis payments disappointed analysts. Separately-listed parent company Fresenius SE falls as much as 2%.
Volkswagen drops as much as 3% after newspaper Nordwest-Zeitung reported that the carmaker will cut back production of the electric ID.4 compact SUV and ID.7 at its factory in Emden, Germany.
Xior falls as much as 7.4% after shareholder ESHF offered shares worth €25.5 million in the student-housing operator at an around 8% discount to their last close. JPMorgan priced the deal.
Persimmon falls as much as 2% as Barclays (equalweight) says consensus earnings estimates for the UK’s largest listed homebuilder no longer look as conservative as previously thought.
In FX, the euro is sitting atop the intraday G10 rankings, rising 0.2% versus the greenback following Lagarde’s hawkish comments. The Bloomberg Dollar Spot Index is down 0.1%. AUD/USD leads gains rising as much as 0.7%. USD/JPY falls 0.2% as investors mull future yen intervention potential.
In rates, Treasuries are lower with the US 10-year yield adding 1bps to 3.73%. The long-end of the curve underperforms, pushing 5s30s spread toward steepest levels of the day into early US session. Bigger losses hit gilts, where front-end and belly yields are cheaper by more than 3bp on the day. US session has busy economic data slate and a 5-year note auction, following strong reception for Monday’s 2-year sale. Treasury yields are cheaper by ~1.5bp across long-end of the curve with 5s30s spread steeper by 0.5bp on the day; 10-year yields around 3.73% with gilts trading 2.5bp cheaper vs Treasuries in the sector. 2-year treasury yields rise two basis points to 4.67% after yesterday’s auction narrowly missed being the most expensive since 2007. Longer-dated treasuries remain little changed; focus turns to the five-year note auction later Tuesday. US auction cycle continues with $43 billion 5- year notes at 1pm, and concludes with $35 billion 7-year notes Wednesday; Monday’s 2-year note auction stopped 0.8bp through the WI yield in a strong reception.
In commodities, crude futures decline with WTI falling 0.6% to trade near $68.95. Spot gold is little changed around $1,925. Bitcoin rises 0.7%.
To the day ahead now, and US data releases include the Conference Board’s consumer confidence for June, the preliminary reading of durable goods orders for May, new home sales for May, the Richmond Fed’s manufacturing index for June, and the FHFA’s house price index for April. Elsewhere, we’ll get the Canadian CPI reading for May, and Italian consumer confidence for June. Otherwise from central banks, we’ll hear from ECB President Lagarde, as well as the BoE’s Dhingra and Tenreyro.
Market Snapshot
S&P 500 futures up 0.2% to 4,379.25
MXAP up 0.4% to 163.13
MXAPJ up 0.7% to 515.99
Nikkei down 0.5% to 32,538.33
Topix down 0.3% to 2,253.81
Hang Seng Index up 1.9% to 19,148.13
Shanghai Composite up 1.2% to 3,189.44
Sensex up 0.4% to 63,213.14
Australia S&P/ASX 200 up 0.6% to 7,118.21
Kospi little changed at 2,581.39
STOXX Europe 600 little changed at 452.59
German 10Y yield little changed at 2.32%
Euro up 0.3% to $1.0940
Brent Futures up 0.7% to $74.69/bbl
Gold spot up 0.1% to $1,925.27
U.S. Dollar Index down 0.14% to 102.54
Top Overnight News
China’s Premier said the country would take steps to boost the economy while Q2 GDP will be higher than Q1, with the country on track to achieve its full-year growth target of around 5%. RTRS
China cracks down on market commentators it feels are speaking too negatively about the country’s financial prospects. FT
US Treasury Secretary Janet Yellen plans to visit Beijing in early July for the first high-level economic talks with her new Chinese counterpart, people familiar with the scheduling said. BBG
ECB’s Lagarde warns that inflation remains too high and persistent, which will require further policy tightening in response (another hike is coming in July, and “it is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached”), although she acknowledges that price pressures are starting to ease. ECB
UK food price inflation cools to +14.6% in June (vs. +15.4% in May and +15.7% in April) while overall shop price inflation also eased. London Times
IMF warns countries may need to tolerate a period of inflation above their 2% targets in order to avoid a financial crisis. FT
Western powers are considering contingencies in case Putin’s grip on power is compromised to such a degree that the country’s nuclear weapons are compromised. FT
Russia closed a criminal probe into Yevgeny Prigozhin and his Wagner group for mutiny, and preparations have begun to transfer heavy weaponry to Russian army units, Interfax reported. Prigozhin’s jet reportedly landed in Belarus, though it’s not clear if he was on board. BBG
Lordstown filed for bankruptcy and sued Foxconn after the EV startup’s $170 million investment deal with the Taiwanese firm unraveled. It listed as much as $500 million of assets and liabilities, and accused Foxconn of fraud and breach of contract. BBG
One of the questions we hear most frequently from clients is ‘where are we in the cycle’? Of course, no two cycles are the same given that their drivers, and the structural factors that influence them, can vary significantly between one cycle and another. That said, we find that most cycles go through four phases, starting with ‘Despair’ (a bear market) and followed by ‘Hope’ – the strongest and shortest phase, where markets and valuations rise in anticipation of a future profit growth recovery. Next, there is usually a ‘Growth’ phase, where profits recover and grow but valuations fall back and returns moderate. The final phase, which we describe as ‘Optimism’, is generally associated with increasing valuations even as interest rates rise. GIR
A more detailed look at global markets courtesy of Newsquawk
Asia-Pac stocks were mostly positive as the risk tone improved following the predominantly negative handover from the US where the major indices were subdued heading into quarter-end and the Nasdaq underperformed amid weakness in tech and communications. ASX 200 gained as strength in financials and cyclicals picked up the slack from the losses in tech and telecoms. Nikkei 225 was pressured in a continued pullback from the 33,000 level amid increasing speculation that the recent currency weakness could force the BoJ’s hand regarding YCC. Hang Seng and Shanghai Comp were firmer with Hong Kong led by gains in tech and property after the PBoC’s continued liquidity efforts, while Premier Li pledged to roll out effective policy measures during his speech at the WEF in Tianjin and it was also reported that US Treasury Secretary Yellen is planning a trip to China in July
Top Asian News
PBoC set USD/CNY mid-point at 7.2098 vs exp. 7.2194 (prev. 7.2056)
China state banks were spotted selling dollars in offshore currency markets to prop up the yuan, according to sources cited by Reuters.
Chinese Premier Li said the pandemic will be over and both visible and invisible barriers will disappear, while he added that countries should strengthen dialogue and communications to avoid misunderstanding with no country able to resolve all problems and unity is the right answer. Premier Li also commented that China will continue to provide a strong driving force for the global economy and roll out more effective policy measures to expand domestic demand and opening up. Furthermore, Li stated that Q2 economic growth will be higher than Q1 growth and China is expected to achieve its growth target of around 5% for 2023, according to Reuters.
Chinese Premier Li said we will support the development of foreign companies in China; will not abuse security checks on foreign firms, according to Reuters.
Chinese Premier Li said China will improve government procurement policies on medicines, according to Reuters.
US Treasury Secretary Yellen reportedly plans a China trip in July to speak with her Chinese counterpart while the US prepares investment curbs, according to Bloomberg.
New Zealand Finance Minister Robertson said the RBNZ Monetary Policy Committee Remit and Charter were renewed with only minor changes to the monetary policy framework, while he added that the MPC is now required to ‘achieve and maintain’ rather than ‘keep’ inflation between 1%-3% and the MPC should communicate key considerations of its decisions with regard to financial risks.
European bourses have been edging lower throughout the morning despite the enthusiasm seen ahead of the cash open, with the ECB Sintra Forum underway. US equity futures are seeing modest gains with the NQ attempting to recoup some of its tech-driven losses on Monday. Equity sectors in Europe are mixed with Banks top of the leaderboard whilst Autos and Parts lag.
Top European News
FX
DXY is on a softer footing intraday with the range on either side of 102.50, whilst prelim rebalancing models tilt Dollar-negative.
EUR now stands as the modest outperformer amid more hawkish-leaning ECB commentary.
CNH is firmer amid a stronger-than-expected PBoC Yuan fixing overnight alongside reports that Chinese state banks were said to be selling USD/CNH.
Antipodeans initially outperformed amid Chinese optimism before waning alongside risk sentiment.
Credit Agricole on month-end rebalancing: flows are likely to be mild USD selling across the board with the strongest sell signal in the case of the USD vs the SEK.
Citi’s prelim Month-end FX rebalancing: expectations Dollar negative. The model suggests FX rebalancing needs are tilted toward USD selling. Hedge and asset FX rebalancing needs are coinciding Negative US equity rebalancing flow estimated to dominate equity rebalancing.
Fixed Income
Debt futures have extended their pull-back from yesterday’s best levels to deeper lows.
Bunds initially experienced some impetus from a lower German Q3 refunding remit before ECB President Lagarde stressed that the war against inflation is still not over.
Gilts were unfazed by a solid DMO linker sale.
BTPs remain below par as they weigh up decent demand for short-dated Italian issuance.
T-note also nudged up to the top end of its intraday parameter at one point before trimming gains, with the contract contained to a tight range.
Commodities
WTI and Brent contracts have given up the mild gains seen in early European hours alongside a deterioration in risk sentiment.
Spot gold as been constrained to a tight range amidst a light European data calendar but a busy speakers slate.
Base metals relinquished most of their mild APAC gains which emanated from the aforementioned economic commentary from Chinese Premier Li, with prices recently hit amid a turn in the risk sentiment.
Central Banks
ECB’s Lagarde said “We have made significant progress but – faced with a more persistent inflation process – we cannot waver, and we cannot declare victory yet”. “Inflation in the euro area is too high and is set to remain so for too long”. “We have not yet seen the full impact of the cumulative rate hikes we have decided on since last July.” “Barring a material change to the outlook, we will continue to increase rates in July.” “…it is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached”, according to the ECB.
ECB’s Kazaks said market bets on rate cuts in early 2024 are wrong; sees rate hikes past July, “but when and by how much will be data dependent”, according to Reuters. ECB’s Kazaks said further rate hikes are necessary to tame inflation, and the risk of doing too little is bigger than the risk of doing too much, via CNBC. He added he cannot say at the moment how high rates will go and markets are making a mistake in predicting rate cuts.
ECB’s Simkus said we shouldn’t rule out the option of a September hike, according to Bloomberg
BoE’s Dhingra said the external shock has not totally worn off; Wages are responding to inflation with a lag; Medium-term economic forecasts are not good at picking up turning points, according to Reuters.
Morgan Stanley now expects Fed to deliver a 25bps rate hike in July, taking the terminal rate to 5.375% (prev. 5.1%), according to Reuters.
Geopolitics
Russia’s Kremlin said it sees no grounds right now to launch peace talks with Ukraine over Russia’s “special military operation”, according to Reuters.
Belarusian President said all orders were given to the army to remain on full combat readiness; our country has the necessary capabilities to the Western threat, according to Sky News Arabia.
Belarusian border guards monitor daily provocations on the borders with NATO countries, according to Belarusian President cited by Al Jazeera. Lukashenko added that if Russia falls, we will all fall, according to Al Arabiya.
Taiwanese Deputy Chief of Staff says we will destroy China’s ships and planes that are approaching 22 km from the island, according to Al Arabiya.
d
Economic Data
08:30: May Durable Goods Orders, est. -0.8%, prior 1.1%
Durables -Less Transportation, est. 0%, prior -0.3%
May Cap Goods Ship Nondef Ex Air, est. 0.2%, prior 0.5%
May Cap Goods Orders Nondef Ex Air, est. 0%, prior 1.3%
09:00: April S&P CS Composite-20 YoY, est. -2.60%, prior -1.15%
April S&P/CS 20 City MoM SA, est. 0.35%, prior 0.45%
10:00: June Conf. Board Consumer Confidenc, est. 103.9, prior 102.3
June Conf. Board Expectations, prior 71.5
June Conf. Board Present Situation, prior 148.6
10:00: June Richmond Fed Index, est. -12, prior -15
10:00: May New Home Sales MoM, est. -1.2%, prior 4.1%
May New Home Sales, est. 675,000, prior 683,000
10:30: June Dallas Fed Services Activity, prior -17.3
DB’s Jim Reid concludes the overnight wrap
If you’re reading this in the UK, and large parts of Europe, this might be the first day in a few weeks that you’re not waking up feeling like you’ve slept in a sauna. Never has a drop in temperature and a touch of wind been so well received. On Sunday evening we had a rare 5 minutes of rain and I took my glasses off and sat outside in it and soaked in every drop.
Talking of the seasons, this morning we’re launching our summer survey aimed at market participants (link here). The survey will be open until Thursday and all responses are anonymous. In this edition, we’re interested in your thoughts on when the next US recession will occur, and how severe that might be. We’re also curious if you think central banks are making a policy error, and if so whether they’re being too dovish or hawkish. Finally, we have several questions on ChatGPT and the impact of AI on markets and economies. So do you think this is a short-lived fad or a game-changer for human productivity. All responses very much appreciated.
Of course, the biggest international news right now has come from Russia, but when it came to global markets over the last 24 hours, there weren’t many implications outside of a few specific assets. For example, European natural gas prices initially saw a strong uptick at the open of more than +13%, but more than reversed this gain by the end of the session to close -3.0% lower. Oil prices similarly posted initial gains, and after an up-and-down day, ended closing slightly higher, with Brent crude up +0.5% from its levels on Friday. Prices of wheat (for which Russia is a big exporter) had been on course to close at a 4-month high, but ended up closing -1.24% lower.
To be honest, one of the few areas where the impact was clearly obvious was for Russian assets themselves. The country’s equity indices, which these days are largely separated from international markets, underperformed but even they recovered from their initial losses, with the MOEX Russia index shedding -1.92% at its intraday low, before partially recovering to close -1.36% lower. The Russian ruble also lost a bit of ground, but had likewise recovered by the end of the session and was only -0.04% weaker against the US Dollar (in the offshore market). Conversely, investors became a lot more optimistic about Ukraine’s economic prospects yesterday. It’s worth noting that these are pretty illiquid markets, but the country’s GDP-linked dollar bond due in 2041 hit its highest level since Russia’s invasion began.
The aftermath of the dramatic weekend events in Russia continued to draw headlines. We heard from both President Putin and Wagner group’s Prigozhin for the first time since Saturday night’s apparent compromise, but there was little new in these comments. Putin decried the “mutiny” but said that Wagner group fighters “who did not shed blood” could “sign a contract with the Defence Ministry or move to Belarus”, while Wagner’s Prigozhin denied that Wagner’s “march for justice” was ever aimed at regime change. So plenty of head scratching as to the motivation for the actions and the wider implications. Our EM strategists yesterday published a note outlining their initial takeaways on the weekend’s developments here.
Away from Russia, markets generally had a risk-off tone yesterday as fears continued to rise about a potential recession. In fact, the classic leading indicator, namely the 2s10s yield curve inverted a further -1.2bps to -102.7bps, which is just shy of the -108.7bps level right before SVB collapsed. Indeed, if that level is breached over the coming days, then the curve would be more inverted than at any time since 1981, back when Paul Volcker was Fed Chair and holding rates at very restrictive levels. This flattening was evident across the curve, and the 1s30s curve (-1.4bps) is now at its most inverted since available data begins in 2002, having now reached -148.9bps.
Those fears about a recession were given support by several factors. One was the latest Ifo business climate indicator from Germany, which fell to 88.5 in June (vs. 90.7 expected). That’s the second consecutive decline in that indicator, and now leaves it at its lowest level since November last year. In addition, the expectations component fell to 83.6 from 88.3 in May, which is the largest one-month decline in 11 months, and further adds to the picture that last month’s decline wasn’t just a blip. This backdrop meant that sovereign bonds put in a strong performance in Europe with 10yr bunds (-4.4bps), OATs (-3.9bps) and BTPs (-2.9bps) rallying, although a partial sell-off later in the day saw yields on 10yr Treasuries down by a more modest -1.4bps to 3.721%.
Given the general risk-off tone, equities struggled to gain traction, and the S&P 500 (-0.45%) and the STOXX 600 (-0.10%) both posted declines. Tech stocks also continued to slip, with the NASDAQ (-1.16%) and the FANG+ index (-2.98%) both falling to a 2-week low and with the latter seeing its sharpest daily fall since February. The FANG+ decline came as all 10 stocks were lower with Tesla down -6.0% and Nvidia down -3.7%. On the other hand, small-cap stocks were one of the outperformers, and the Russell 2000 (+0.09%) eked out a gain after a run of 5 consecutive declines. With the pullback in equities the VIX index rose 0.8pts to over 14.0 once again, but at that same time EURUSD vol was still subdued as the currency pair traded in just a 32pips range yesterday. That is the tightest range of the year, with the last day of such little volatility coming back in November 2021.
Asian equity markets are mixed this morning. As I check my screens, the Hang Seng (+1.53%) is sharply higher, rebounding from a five-day losing streak while mainland Chinese stocks are also in the green with the Shanghai Composite (+0.93%) and the CSI (+0.52%) moving higher. Otherwise, the Nikkei (-0.77%) is extending its losses for a third consecutive session with the KOSPI (-0.36%) also lower at the moment. Outside of Asia, US stock futures are shrugging off overnight weakness with those on the S&P 500 (+0.23%) and NASDAQ 100 (+0.19%) trading modestly higher.
Early this morning China’s Premier Li Qiang stated that the nation is still on course to reach its growth target of around 5% for 2023, set by the administration earlier this year while highlighting that Q2 growth is expected to be faster than it was in the first quarter.
In FX, the People’s Bank of China (PBOC) stepped up its efforts to slow the slide in the yuan after the central bank set the daily fixing stronger than market expectations for the second day in a row. The move is the PBOC’s biggest upward deviation that the central bank has made since May when the current selloff began. As we go to press, the onshore yuan (+0.35%) is trading at 7.215 versus the dollar.
To the day ahead now, and US data releases include the Conference Board’s consumer confidence for June, the preliminary reading of durable goods orders for May, new home sales for May, the Richmond Fed’s manufacturing index for June, and the FHFA’s house price index for April. Elsewhere, we’ll get the Canadian CPI reading for May, and Italian consumer confidence for June. Otherwise from central banks, we’ll hear from ECB President Lagarde, as well as the BoE’s Dhingra and Tenreyro.
end
2 b) NOW NEWSQUAWK (EUROPE/REPORT)/ASIA REPORT
European bourses choppy and EUR boosted amid hawkish vibes at ECB Sintra – Newsquawk US Market Open
TUESDAY, JUN 27, 2023 – 05:45 AM
European bourses have been edging lower throughout the morning despite the enthusiasm seen ahead of the cash open, with the ECB Sintra Forum underway.
DXY is on a softer footing intraday with the range on either side of 102.50, whilst prelim rebalancing models tilt Dollar-negative.
Debt futures have extended their pull-back from yesterday’s best levels to deeper lows.
WTI and Brent futures have given up the mild gains seen in early European hours alongside a deterioration in risk sentiment.
Overnight, Chinese state banks were spotted selling dollars in offshore currency markets to prop up the yuan, according to sources cited by Reuters.
Looking ahead, highlights include US Durable Goods, Consumer Confidence, New Home Sales-Units, Canadian CPI, and supply from US.
DXY is on a softer footing intraday with the range on either side of 102.50, whilst prelim rebalancing models tilt Dollar-negative.
EUR now stands as the modest outperformer amid more hawkish-leaning ECB commentary.
CNH is firmer amid a stronger-than-expected PBoC Yuan fixing overnight alongside reports that Chinese state banks were said to be selling USD/CNH.
Antipodeans initially outperformed amid Chinese optimism before waning alongside risk sentiment.
Credit Agricole on month-end rebalancing: flows are likely to be mild USD selling across the board with the strongest sell signal in the case of the USD vs the SEK.
Citi’s prelim Month-end FX rebalancing: expectations Dollar negative. The model suggests FX rebalancing needs are tilted toward USD selling. Hedge and asset FX rebalancing needs are coinciding Negative US equity rebalancing flow estimated to dominate equity rebalancing.
Debt futures have extended their pull-back from yesterday’s best levels to deeper lows.
Bunds initially experienced some impetus from a lower German Q3 refunding remit before ECB President Lagarde stressed that the war against inflation is still not over.
Gilts were unfazed by a solid DMO linker sale.
BTPs remain below par as they weigh up decent demand for short-dated Italian issuance.
T-note also nudged up to the top end of its intraday parameter at one point before trimming gains, with the contract contained to a tight range.
WTI and Brent contracts have given up the mild gains seen in early European hours alongside a deterioration in risk sentiment.
Spot gold as been constrained to a tight range amidst a light European data calendar but a busy speakers slate.
Base metals relinquished most of their mild APAC gains which emanated from the aforementioned economic commentary from Chinese Premier Li, with prices recently hit amid a turn in the risk sentiment.
ECB’s Lagarde said “We have made significant progress but – faced with a more persistent inflation process – we cannot waver, and we cannot declare victory yet”. “Inflation in the euro area is too high and is set to remain so for too long”. “We have not yet seen the full impact of the cumulative rate hikes we have decided on since last July.” “Barring a material change to the outlook, we will continue to increase rates in July.” “…it is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached”, according to the ECB.
ECB’s Kazaks said market bets on rate cuts in early 2024 are wrong; sees rate hikes past July, “but when and by how much will be data dependent”, according to Reuters. ECB’s Kazaks said further rate hikes are necessary to tame inflation, and the risk of doing too little is bigger than the risk of doing too much, via CNBC. He added he cannot say at the moment how high rates will go and markets are making a mistake in predicting rate cuts.
ECB’s Simkus said we shouldn’t rule out the option of a September hike, according to Bloomberg
BoE’s Dhingra said the external shock has not totally worn off; Wages are responding to inflation with a lag; Medium-term economic forecasts are not good at picking up turning points, according to Reuters.
Morgan Stanley now expects Fed to deliver a 25bps rate hike in July, taking the terminal rate to 5.375% (prev. 5.1%), according to Reuters.
NOTABLE EUROPEAN HEADLINES
German borrowing is to fall by EUR 14bln in Q3, according to Reuters.
EUROPEAN DATA RECAP
UK BRC Retail Shop Price Index YY (Jun) 8.4% (Prev. 9.0%)
CRYPTO
Bitcoin ekes mild intraday gains but remains under USD 30.5k in what has been a relatively contained session thus far.
GEOPOLITICS
RUSSIA/UKRAINE
Russia’s Kremlin said it sees no grounds right now to launch peace talks with Ukraine over Russia’s “special military operation”, according to Reuters.
Belarusian President said all orders were given to the army to remain on full combat readiness; our country has the necessary capabilities to the Western threat, according to Sky News Arabia.
Belarusian border guards monitor daily provocations on the borders with NATO countries, according to Belarusian President cited by Al Jazeera. Lukashenko added that if Russia falls, we will all fall, according to Al Arabiya.
OTHER
Taiwanese Deputy Chief of Staff says we will destroy China’s ships and planes that are approaching 22 km from the island, according to Al Arabiya.
GLOBAL NEWS
Ukrainian army attacked Russian troops with chemical weapons in Donetsk, according to Tass cited by Al Arabiya
Ukrainian President Zelensky said they are making advances in all sectors and it was a happy day, according to Reuters.
Russian Defence Ministry said it was conducting tactical flight exercises over the Baltic Sea.
US Secretary of State Blinken spoke with Kosovan PM Kurti to urge an immediate de-escalation in the north of Kosovo, while he spoke with Serbian President Vucic and urged Serbia to immediately take steps to implement commitments under the normalisation agreement.
APAC TRADE
APAC stocks were mostly positive as the risk tone improved following the predominantly negative handover from the US where the major indices were subdued heading into quarter-end and the Nasdaq underperformed amid weakness in tech and communications.
ASX 200 gained as strength in financials and cyclicals picked up the slack from the losses in tech and telecoms.
Nikkei 225 was pressured in a continued pullback from the 33,000 level amid increasing speculation that the recent currency weakness could force the BoJ’s hand regarding YCC.
Hang Seng and Shanghai Comp were firmer with Hong Kong led by gains in tech and property after the PBoC’s continued liquidity efforts, while Premier Li pledged to roll out effective policy measures during his speech at the WEF in Tianjin and it was also reported that US Treasury Secretary Yellen is planning a trip to China in July.
NOTABLE ASIA-PAC HEADLINES
PBoC set USD/CNY mid-point at 7.2098 vs exp. 7.2194 (prev. 7.2056)
China state banks were spotted selling dollars in offshore currency markets to prop up the yuan, according to sources cited by Reuters.
Chinese Premier Li said the pandemic will be over and both visible and invisible barriers will disappear, while he added that countries should strengthen dialogue and communications to avoid misunderstanding with no country able to resolve all problems and unity is the right answer. Premier Li also commented that China will continue to provide a strong driving force for the global economy and roll out more effective policy measures to expand domestic demand and opening up. Furthermore, Li stated that Q2 economic growth will be higher than Q1 growth and China is expected to achieve its growth target of around 5% for 2023, according to Reuters.
Chinese Premier Li said we will support the development of foreign companies in China; will not abuse security checks on foreign firms, according to Reuters.
Chinese Premier Li said China will improve government procurement policies on medicines, according to Reuters.
US Treasury Secretary Yellen reportedly plans a China trip in July to speak with her Chinese counterpart while the US prepares investment curbs, according to Bloomberg.
New Zealand Finance Minister Robertson said the RBNZ Monetary Policy Committee Remit and Charter were renewed with only minor changes to the monetary policy framework, while he added that the MPC is now required to ‘achieve and maintain’ rather than ‘keep’ inflation between 1%-3% and the MPC should communicate key considerations of its decisions with regard to financial risks.
2 c. ASIAN AFFAIRS
ASIAN AND AUSTRALIAN CLOSINGS//EUROPE OPENING TRADING:
TUESDAY MORNING/MONDAY NIGHT
SHANGHAI CLOSED UP 38.42 PTS OR 1.48% //Hang Seng CLOSED UP 354.00 PTS OR 1.88% /The Nikkei closed DOWN 160.48 OR 0.49% //Australia’s all ordinaries CLOSED UP 53 % /Chinese yuan (ONSHORE) closed UP 7.2164 /OFFSHORE CHINESE YUAN UP TO 7.2188 /Oil DOWN TO 68.18 dollars per barrel for WTI and BRENT DOWN AT 72.32 / Stocks in Europe OPENED ALL MIXED// ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST US DOLLAR/OFFSHORE STRONGER
2 d./NORTH KOREA/ SOUTH KOREA/
///NORTH KOREA/SOUTH KOREA/
2e) JAPAN
JAPAN
END
3 CHINA /
CHINA/TAIWAN
Not good: Chinese warplanes come very close to Taiwan’s24 mile perimeter
(DeCamp)
Watch: Chinese Warplanes Come Close To Taiwan’s 24-Mile Zone
The Taiwanese Defense Ministry said thateight Chinese People’s Liberation Army (PLA) warplanes came close to Taiwan’s contiguous zone, which extends 24 nautical miles off the island’s coast.
Since then-House Speaker Nancy Pelosi (D-CA) visited Taiwan in August, PLA warplanes have regularly crossed the median line, an informal barrier that separates the two sides of the Taiwan Strait that the PLA used to avoid. But there have been no reports of Chinese aircraft entering Taiwan’s contiguous zone.Getty Images
The Taiwanese Defense Ministry wrote on Twitter that Taiwan’s “Armed Forces detected 19 PLA aircraft (including J-10, J-16, etc.), eight of which crossed the median line of the Taiwan Strait and approached the 24-nautical-mile line.”
China has kept up the military pressure on Taiwan as the US has continued to increase support for Taipei, including the deployment of about 200 US troops to the island, the largest-known US military presence in Taiwan since 1979.
Taiwanese Defense Minister Chiu Kuo-cheng said earlier this year that China will use Taiwan’s growing military and diplomatic ties as an excuse to fly closer to the island. Chiu expected the PLA to enter the contiguous zone if House Speaker Kevin McCarthy (R-CA) visited Taiwan.
McCarthy ended up hosting Taiwanese President Tsai Ing-wen in California in April instead of traveling to Taiwan. The meeting provoked major Chinese military exercises around Taiwan, but they were not as extensive as the drills launched by the PLA in response to the Pelosi visit.
Chiu said that if PLA warplanes enter the contiguous zone, Taipei would “restrain ourselves from launching the first strike to avoid giving China an excuse to attack Taiwan.”
But if Chinese aircraft enter Taiwan’s airspace, which extends 12 nautical miles from its coast, Chiu said Taiwanese forces would respond.
“We would be forced to respond should Chinese military vessels and aircraft come near or enter the nation’s airspace and territorial waters, even if they are in disputed areas,” he said.
end
4.EUROPEAN AFFAIRS//UK /SCANDAVIAN AFFAIRS
GERMANY/BUNDESBANK/EUROPE
Huge story: The Bundesbank has suffered considerable losses from its bond buying program. The losses will no doubt exceed its 21 billion of equity and other buffers and thus according to its audit office, it may need a bailout
(zerohedge)
German Central Bank May Need Bailout After ECB Bond Scheme Losses: Audit Office
TUESDAY, JUN 27, 2023 – 05:45 AM
Less than a year after the UK had to plug an £11 billion (US$13.9 billion) hole to cover projected losses in the Bank of England’s bond-buying program, Germany’s federal audit office has warned that the Bundesbank may need a bailout to cover losses incurred from the European Centeral Bank’s bond-buying scheme, potentially compromising the ECB’s plans to conduct similar operations in the future, FTreports.
“The possible Bundesbank losses are substantial and could necessitate a recapitalisation of the [bank] with budgetary funds,” reads a report by the audit office, the Bundesrechnungshof, which the Financial Times has seen.
Purchasing vast amounts of bonds to lower borrowing costs, known as quantitative easing, has long been controversial in Germany. The Bundesbank argued against it in 2015, when the eurozone’s central bank launched its bond buying, but it was outvoted at the ECB. The audit office’s criticisms are likely to make a repeat of the policy more difficult, especially as some economists blame QE for stoking the recent wave of inflation.
The Bundesbank announced in March that it had suffered a €1bn hit from its bond holdings, as it grappled with the impact of higher interest rates. It also warned that future losses would wipe out its remaining financial buffers, though it denied it would need a government rescue. -FT
The report blames the ECB’s public sector purchase program, launched in 2015, for the turmoil after the bank purchased €2.7tn of sovereign bonds from eurozone countries. The Bundesbank also bought a devilish €666bn of German government debt under the program, which was buying bonds up until last year.
The magnitude of the purchases in conjunction with the ECB’s sub-zero interest rates caused the price of bonds to float higher, which resulted in several yielding negative rates. As such, the Bundesbank is now under pressure due to the growing gap between it’s bond income and the interest it pays to commercial banks on their deposit.
In March, the Bundesbank said that future losses would “probably” exceed its remaining €19.2bn of provisions and €2.5bn of capital, but that it’s also got €170bn of gold and foreign exchange reserves, and could carry forward losses against future profits, as the Financial Times writes, nothing that the bank instituted similar measures in the 1970s.
According to a spokesperson for the German central bank, its balance sheet is “sound even in the event of a loss carry-forward” due to its “considerable amount of net equity.”
That said, FT notes that Germany’s public finances will still be affected, as the bank has ceased dividend payments to the government, depriving Berlin of a massive income stream that has amounted to €22bn over the past decade. According to the bank, dividends will remain paused for “an extended period of time.”
The German finance ministry has hit back against the audit’s findings, claiming in a “different assessment” that it’s “highly unlikely” that losses from Bundesbank’s monetary policy operations would “put a strain on the federal budget.”
In 2020, Germany’s constitutional court shocked European capitals by ruling that the German authorities and the EU’s top judges had failed to properly scrutinise the PSPP, in a move that threw the policy into doubt.
The spat was resolved when the ECB produced a “proportionality assessment” backed by the German government and the Bundesbank to justify its bond buying, as the judges in Karlsruhe had requested.
The report by the Bundesrechnungshof, Germany’s highest government audit authority, looked into whether the German government — and particularly the finance ministry — was fulfilling the obligations imposed on it by the constitutional court’s May 2020 ruling, including “continually monitoring” the actions of the ECB. -FT
The audit office, meanwhile, pointed to the risks they say the operations posed to Germany’s public finances – and accused the finance ministry of failing to adequately consider what effect Bundesbank losses may have on the country’s budget.
“If the functioning of the Bundesbank is endangered by an inadequate or even negative net equity, the Federal Republic of Germany can be obliged to inject capital,” reads the report, which calls on the finance ministry to employ “scenario analysis” to “regularly assess risks to the federal budget arising from the Bundesbank’s activities and inform the German Bundestag about them, in an appropriate manner.”
“Depending on the extent and probability, the risks arising from monetary policy could, in the worst case, endanger the budgetary autonomy of the German Bundestag,” reads the audit report.
END
UK
END
SWEDEN
Sweden has just about had it with the EU’s plan of 100% renewable energy goal. They now want mor reliable nuclear power
(zerohedge)
Sweden Scraps 100% Renewable Energy Goal For More Reliable Nuclear Power
There’s a surge of common sense in Sweden that’s horribly lacking in the US. Congrats to Sweden for voting in favor of nuclear energy and scrapping a 100% renewable goal.
Sweden’s parliament on Tuesday adopted a new energy target, giving the right-wing government the green light to push forward with plans to build new nuclear plants in a country that voted 40 years ago to phase out atomic power.
Changing the target to “100% fossil-free” electricity, from “100% renewable” is key to the government’s plan to meet an expected doubling of electricity demand to around 300 TwH by 2040 and reach net zero emissions by 2045.
The coalition plans to cut the bio-fuel mix in petrol and diesel, leading to bigger CO2 emissions, a move that could mean Sweden missing 2030 emissions goals.
Proposals by Sweden to allow countries to prolong subsidies for standby coal power plants have also been met concern in the EU, while Stockholm also wanted Brussels to water-down a landmark law to restore deteriorating natural habitats.
Those are all common sense measures. Here is a set of Tweets on the subject.
Trump Takes Aim at EVs
The Ever Growing Trillions of Dollars Per Year Demands to Fight Climate Change
An expert group under the auspice of the UN estimates that investments have to reach the order of $1 trillion per year until 2030 to respond to the climate and biodiversity crisis.
Oxfam estimated that $3.9 trillion per year will be needed over the same time period to fight poverty, inequality and climate change.
The World bank estimated that it takes $4 trillion per year to build the infrastructure for this.
The cost of this “easy to make” vision is $1 trillion per year for the biodiversity crisis, plus $3.9 trillion per year to fight poverty and inequality, plus $4 trillion per year for the infrastructure. That’s a mere $8.9 million per per year until 2030, a 7-year cost of $62.3 trillion.
In response, a friend just pinged me with this comment: “This is colossally, stupid public policy. The government should not get involved in determining what is the best approach to electric vehicles. It should set standards and let the free enterprise system work it out.”
Unfortunately, it appears Biden pledged 0.7 percent of US wealth for global inequities.
Fortunately, the money isn’t flowing. But it would have if Democrats held the House, Senate, and White House.
The German political establishment is reacting with extreme alarm and making various threats about the democratic results in favor of the AfD…
Alternative for Deutschland (AfD) candidate Robert Sesselmann won the second round of elections in Sonneberg, Thuringia, on Sunday, becoming the first politician from the party to hold a district leadership post. The win is being touted as a historic victory for the party at a time when it is seeing record support from the population and routinely polling between 19 and 20 percent in nationwide surveys.
Sesselmann defeated the incumbent CDU candidate Jürgen Köpper by a convincing margin.
Preliminary election results show Sesselmann with 52.8 percent of the vote and Köpper with 47.2 percent, reports Germany’s Focus magazine.
Although he did not achieve an absolute majority in the first round, Sesselmann won 47 percent of the votes, making him the strong favorite to win in the second round.
The win also comes despite a cross-party coalition of Greens, Free Democrats (FDP), the Left party, and the Social Democrats (SPD) endorsing the CDU candidate and urging their voters to back him against the AfD. The German press also made the election a national issue, warning of a “threat against democracy” should the AfD win.
In his campaign, the AfD candidate promised voters that he would tackle high inflation and the growing problem of immigration. The rural and conservative population of Germany is increasingly dissatisfied with the current leadership, which could lead to a national rise of the AfD.
The AfD celebrated the win on Twitter, writing: “Sonneberg experienced its blue miracle: Robert Sesselmann is the first AfD district administrator in Germany. Congratulations and thanks to all supporters and voters – they all made history today!”
German newspaper Junge Freiheit describes the victory as a “political earthquake,” but the German political establishment is reacting with concern and threats.
Green party leader Ricarda Lang called the result of the district election “disturbing.”
She stated: “Now at the latest is the time when – despite all the disputes on the matter – all democratic forces must defend democracy together.”
Schleswig-Holstein SPD member of the Bundestag Ralf Stegner claimed the election had similarities with the Third Reich, writing, “Ninety years after the seizure of power and the beginning of the Nazi dictatorship, the district of Sonneberg in southern Thuringia elected a right-wing extremist as district administrator.”
As Remix News recently reported, AfD soared to an unprecedented 20 percent in a recent INSA poll, likely driven by a broad range of factors such as Germany’s significant inflation and economic crisis, as well as the migration crisis. The INSA poll shows that 34 percent of voters describe themselves as “angry citizens,” and among AfD supporters, 70 percent describe themselves this way.
END
5 RUSSIA//UKRAINE AND MIDDLE EASTERN AFFAIRS
RUSSIA
Biden Stresses US “Not Involved” In Wagner Uprising; Furious Putin Says West ‘Wanted Russians To Kill Each Other’
MONDAY, JUN 26, 2023 – 04:48 PM
Update(1648ET): Within hours ahead of Putin’s big speech Monday evening (local time), the Kremlin touted there would be several “major” announcements, but there was really nothing earth-shattering. In fact much of the fairly short address to the nation on the Wagner rebellion was a reiteration of prior Kremlin statements, and it didn’t exactly appear ‘tough’.
While Putin stressed that “traitors will face justice” and that “we defeated a colossal threat” – he at the same time seemed to offer a bit of an olive branch. “At the same time we knew and know that the vast majority of the fighters and commanders of the Wagner group are also patriots of Russia, devoted to their people and the state,” Putin said. He said Wagner fighters could sign contracts with the Russian army. “Today you have the opportunity to continue serving Russia by entering into a contract with the Ministry of Defense or other law enforcement agencies, or to return to your family and friends. Anyone who wants to can go to Belarus,” he said of the mutineers. “ The promise I made will be fulfilled. I repeat, the choice is yours, but I am sure it will be the choice of Russian soldiers who have realized their tragic mistake.”
And yet at this moment the FSB and Russian Prosecutor’s Office have made statements implying the criminal case for treason is still open against Prigozhin, who is presumably now in Belarus. And more from the Putin speech:
Mr Putin claimed mutiny was “resolutely rejected by society”, and that he directly ordered that “steps were taken to avoid a lot of bloodshed”, as he praised Russian pilots apparently shot down by Wagner mercenaries for having “saved Russia from tragic devastating consequences”.
“I thank all our military personnel, law enforcement officers, special services who stood in the way of the rebels, remained faithful to their duty, oath and their people,” the Russian president said.
Putin looked very serious and angry during the short speech:
Just prior to Putin’s speech, President Biden issued a statement in a presser saying that the US and its allies had “nothing to do” with the rebellion.
“They agreed with me that we had to make sure we gave Putin no excuse — let me emphasize, we gave Putin no excuse — to blame this on the West, to blame this on NATO,” Biden said. “We made clear that we were not involved. We had nothing to do with it. This was part of a struggle within the Russian system.” National Security Council spokesman John Kirby told reporters Monday that the message was delivered to the Russians through various diplomatic channels.
“We also made clear to all our allies and partners that the United States was not involved and would not get involved in these events, and that we view them as internal Russian matters,” Kirby said at the White House press briefing. “We delivered that same message to the Russians themselves through appropriate diplomatic channels.”
While Moscow has yet to attempt a direct linkage between Wagner’s actions and Western intelligence, FM Lavrov did issue this stinging rebuke on Monday, which is at least an insinuation:
The US enthusiastically supports regime change whenever it can benefit from the process, Russian Foreign Minister Sergey Lavrov has told RT. If a protest movement targets a government more pliant to American interests, Washington will inevitably reject it, the diplomat added.
There have been numerous attempts at regime change around the world in recent years and they were “met with a different response on the part of the US, depending on who was in power and who was trying to carry out the coup,” Lavrov said in an interview on Monday.
“Where the West is happy with the current government, in such situations no protest can be legitimate. But where the government doesn’t reflect the interests of the hegemon and is pursuing the national interests, in those cases we see various unlawful forces are being stimulated [to attack the authorities],” the diplomat added.
Putin in his speech said something similar, specifically suggesting Ukraine and Russia’s enemies “wanted” this:
It was precisely this outcome – fratricide – that Russia’s enemies wanted: both the neo-Nazis in Kyiv, and their Western patrons, and all sorts of national traitors.
They wanted Russian soldiers to kill each other, so that military personnel and civilians would die, so that in the end Russia would lose, and our society would split, choke in bloody civil strife. They rubbed their hands, dreaming of taking revenge for their failures at the front and during the so-called counteroffensive, but they miscalculated.
Currently, Ukraine has claimed some degree of gains, but still has largely failed to exploit the Wagner situation and Russian internal discord when it comes to any serious frontline advance.
* * *
Will Wagner mercenary firm continue to exist or not? Does more punishment or possible future imprisonment await Prigozhin, or will he merely lead his private army from a posh hotel in Minsk? Will Wagner remain active as a significant fighting force on the Ukraine battlefield? These are some of the big questions that remain unclear after the shocking weekend turmoil set in motion by Prigozhin. But what is clear is that he’s still defending his actions as necessary, while hitting out once again at the Russian Defense Ministry and top leadership.
The Wagner founder and chief has on Monday issued his first full explanation of his actions which began Friday, setting off Russia’s first major internal crisis of the Ukraine war, which was met with denunciations of ‘treason’ and ‘armed mutiny’ by President Putin as well as the top military commanders.
Geopolitical analyst Dmitri Alperovitch has offered a hasty translation and paraphrase of the about 11-minute audio message posted to Wagner’s Telegram channel. Alperovitch concludes of the new message, “Prigozhin remains defiant and proud of his action. Certainly not acting like a man who had been defeated.” And there is “no word about his current whereabouts.”
First, some key takeaways via Bloomberg:
March toward Moscow showed serious security problems in the country, he said in a recording released on Telegram that didn’t specify from where he was speaking
Prigozhin said he launched march because he wanted to preserve Wagner as a military group and not come under the command of the Defense Ministry
Belarusian President Alexander Lukashenko helped find a negotiated solution to the weekend’s events, he confirms
The translation and quick paraphrase of Prigozhin’s new audio message explaining his rebellion can be viewed below [emphasis ZH]…
* * *
Prigozhin confirms that the mutiny was all about Shoigu’s June 10th order to dissolve PMCs like Wagner. Again says that there was a missile attack on the camp on Friday and that 30 Wagner personnel were killed.
Claims his objective of the march was not to show aggression (ed: strange way of showing it). The columns had marched for 780 km. He says no one was killed… on the ground (and the pilot losses are not his fault – they provoked him).
Says Wagner column suffered 2 KIAs (but says they were not their personnel but MoD personnel that had joined them), as well as several wounded.
Prigozhin: ‘The goal of the march was not to let PMC Wagner be dissolved and to bring accountability to military leadership for the mistakes made in the war’.
Prigozhin: We stopped when we realized there would be a battle and lots of losses near Moscow. We determined that the demonstration up to that point was sufficient.
Prigozhin: Our decision to turn around was based on 2 factors:
1. We didn’t want to spill Russian blood (ed: you did)
2. We went on a protest demonstration, not to overturn power in the Kremlin.
Prigozhin: Lukashenko offered a solution to preserve Wagner (ed: as I said, this is all about his business interests with Wagner).
Prigozhin: In 24 hours Wagner covered the same distance that the Russian forces could have covered on February 24, 2022 to Kyiv and Uzgorod (one of the western most towns in Ukraine) – if they had been as prepared as Wagner, the war could have been over in a day.
Prigozhin: Russian citizens were greeting us with Russian and Wagner flags. They were ecstatic to see us and continue to write to us even now. Some are disappointed that we stopped because they saw in our march support for the fight against government bureaucracy.
Prigozhin remains defiant and proud of his action. Certainly not acting like a man who had been defeated. No word about his current whereabouts.
END
Robert H to us:
RUSSIA/PEPE ESCOBAR
When the lightning of History strikes, better cut to the chase in our first draft – Global South
Robert Hryniak
4:12 PM (8 minutes ago)
to
In the West management is defined by a top down attitude. In Russia management in all affairs is from the top and from the bottom .., you cannot mange a factory without understanding labor and how things come together. That is why in American military the most important person is the sergeant. Without this link nothing works. And yes, Putin will be leaving as it is all planned and his successor is not who the West expects. Russia plans for the future not the present nor the past.
Russia Intercepts UK Fighters & Recon Aircraft ‘Approaching State Border’
TUESDAY, JUN 27, 2023 – 04:15 AM
At a moment of heightened tensions and confusion related the weekend events involving the short-lived Wagner uprising against Moscow, Russian and Western fighter planes were involved in an encounter over the Black Sea, which was resolved without serious incident.
A pair of Russian Su-27 fighter jets intercepted two Typhoon fighter jets of Britain’s Royal Air Force, as well as a UK reconnaissance aircraft, over the Black Sea on Monday, according to a Russian defense ministry (MoD) statement.Getty Images, Illustrative
“Russian airspace control over the Black Sea waters detected three aerial targets approaching the state border of Russia,” the MoD said according to TASS.
“To identify the targets and prevent a violation of the state border, a pair of Su-27 fighters from the air defenses forces [were scrambled],” the ministry said as cited by state news agency TASS,” the statement detailed.
“As Russian fighters approached, the foreign military aircraft made a U-turn from the state border of Russia. The Russian planes returned to their base airfield and violation of the state border was not allowed.”
While these types of intercepts are not uncommon, there’s been an uptick of late over the Black and Baltic Seas amid what’s clearly become a full-blown proxy war pitting Moscow against NATO countries centered in Ukraine.
Things have been particularly tense ever since an American MQ-9 Reaper drone crashed into the Black Sea in March. This happened after Su-27 fighters harassed and clipped it, and at one point one of the Russian fighters dropped fuel on the drone mid-flight.
In May, Russia said it scrambled a Su-27 fighter jet “prevent violations of the state border” by a pair of US strategic bombers which were flying over the Black Sea. The Russian military was quick to release video of this newest incident on Monday, which shows Russian fighters escorting the Royal Air Force planes.
END
RUSSIA/UKRAINE//USA
ROBERT H TO US:
JDBYD on Twitter: “Dear lord!… this is a disgrace on so many levels… “I sold a lot of State secrets…” Biden’s internal monologs have gone external? https://t.co/envZLMP4qo” / Twitter
From his lips comes admission of treason .. How low has America fallen? A great country of people with repulsive leadership corrupt to the core. Watch events unfold now quickly as evidence exists of what really happened in Russia and who was involved…. Belarus has gone to full combat alert, perhaps in response to NATO declaring a combat status over the skies of Baltic states …. And Russia appears to be in process of evacuating personnel from DC. If China does the same it will be game on …. Relationships between Russia/ China and the US have reached a new low. And there is a reason senior executives with their families are leaving Taiwan.
Suicidal Attacks, Horrendous Losses And Insubordination Plague Kiev Regime ForcesSouth Front
A total shit show where soldiers kill each other or lie wounded on a conflict line waiting to die. Talk is death toll for this month exceeds 18,000. And NATO thinks it will do better? Crazy business.
Around 330 active or former members of the Canadian Armed Forces (CAF) who say they were harmed by COVID-19 vaccine mandates have filed a class-action lawsuit against high-ranking members of the Canadian military, asking for some $500 million in damages.
“The actions of the CAF and CDS [Chief of the Defence Staff] has resulted in injury to the Plaintiffs, who have consistently worked to prevent this abuse of power from occurring and to protect the members and their families who are experiencing coercion, discrimination, and threat of loss of career and benefits in all instances.”
The lawsuit was filed against Chief of the Defence Staff General Wayne Eyre, Vice Chief of the Defence Staff Lieutenant-General Frances Allen, Minister of National Defence Anita Anand, former deputy minister of national defence Jody Thomas, and others.
In the fall of 2021, the CAF imposed a COVID-19 vaccine mandate, with non-compliance subsequently leading to the loss of hundreds of members. They left through either voluntary release or expulsion under code 5(f), “unsuitable for further service,” a dishonourable discharge reserved for soldiers with “personal weaknesses” or other issues deemed to impose an excessive burden on the CAF.
The CAF lightened the vaccine mandate in October 2022 by removing COVID-19 vaccination as a condition of service, but it kept in place a mandatory primary series of injections for numerous operational roles.
Orders
The lawsuit claims that the CAF abused its power by ignoring express legislative limits on its actions, allowing the physical and/or psychological torture of unvaccinated members under the command of CAF-commissioned officers, ignoring established law on the right to privacy and the right to choose medical treatment, and ignoring established law on informed consent and regarding religious and spiritual belief.
Other alleged abuses listed include deliberately failing to ensure officers were fully and correctly briefed on all legal and policy issues related to vaccine mandates and deliberately misusing the grievance system to indefinitely delay or stop relief sought by the members.
The lawsuit states that the CAF focused on “political agendas and taking direction from political leaders that is detrimental to operational readiness and effectiveness” when it implemented the COVID-19 vaccine mandates. It said the CAF gave the plaintiffs no way to meet the mandate by writing the directives in a way that blocked any possible means of complying with them.
The statement of the claim adds the allegation that the CDS used administrative measures to punish those who refused or could not comply, instead of following the legal process under the National Defence Act that would allow members to have their cases heard in independent hearings.
In addition, it said the CDS had full control over the grievance process, which meant members were denied fundamental justice.
Further, the lawsuit said Eyre stated he received orders from the government of Canada (GC) to enforce the vaccine mandate, which the statement of claim argues is unlawful.
The lawsuit says members faced severe consequences, including loss of career and loss of employment opportunities outside the CAF, along with loss of income, retirement pension, benefits, travel, and even basic participation in work or public life as a result of non-compliance with the vaccine mandates.
Moreover, the lawsuit says coercive actions were allegedly taken by commanding officers to force compliance. Examples given in the lawsuit include “forcing members to spend unnecessary extended periods of time outside in extreme winter conditions with no shelter or protection as well as forcibly confining members to small, cramped spaces with no respite for meals or personal hygiene needs.”
Daniel Le Bouthillier, head of media relations for the Department of National Defence, said that as a matter of process, “we do not comment on potential legal actions of this nature.”
28-year-old professional Dominican basketball player Oscar Cabrera Adames died last week after a heart attack while he was undergoing a cardiac stress test.
In 2021 Cabrera Adames collapsed during a 2021 Spanish Amateur Basketball League game. He fainted during the game and was later transported to a hospital on a stretcher where doctors were concerned about myocarditis.
END
DR DAVID MARTIN
special thanks to Neil for sending this for us;
Dr David Martin presentation to European union parliament – must watch
doctor on using this cheap, available, safe formulation from The Wellness Company (Foster Coulson); be sure to factor in allergies, if you are a bleeder (this is a blood thinner) or have intolerances
If this data and evidence was accumulating rapidly, why did Fauci, Walensky, Francis Collins, Jha, HHS, CDC, FDA, NIH officials, PHAC, Health Canada (Njoo, Tam), SAGE etc. continue to mandate shots?
troubling; a role of the mRNA technology based gene injection by Pfizer and Moderna that is known to subvert and damage the immune system? how about that? since this vaccine, all health is now screwed
injection? Did the mRNA technology invented by Weissman, Kariko, Malone et al. have anything to do with it? Why did this happen to Judy? Same fate as Shane Warne? Damar Hamlin? Jamie FOXX??
‘A former Miss Bikini Ireland has died ‘unexpectedly’ aged 32, prompting an outpouring of tributes.
Judy Fitzgerald from Co Limerick also known for her appearance on First Dates Ireland last year, after she featured on the programme last March.
She passed away on Saturday according to a death notice, which said she will be ‘sadly missed by her heartbroken parents Liam and Imelda, sister Lucy, brother William, brother-in-law Pedro’.’
The British Heart Foundation (BHF) has released a shocking new report revealing a staggering increase of over 500 heart disease-related deaths per week in England.READ MORE
his business partners and Joe Biden when he’s Vice President of the United States?” Schweizer said. “It’s not the government phone. It’s not Joe Biden’s personal phone.” Why then? What was secretive?
GOP Rep: Joe Biden Has Officially Lawyered Up Following Latest Revelations into His Family’s International Pay-to-Play Scandal
Read more.. .Greg Gutfeld Responds to Ice Cube Calling Out Hypocritical Elites, Invites Him on His Show for a Bigger Audience
Read more… Graham, Blumenthal Call For War With Russia If Nuclear Plant Is Attacked After Zelensky ‘Warns’ Of Just That Read more.. .Democrat Rhode Island State Senator Arrested for Keying SUV with “Biden Sucks” Bumper Sticker (VIDEO)
Read more… Military-grade AI may now be used to spy on American civilians
Read more… Rep. Marjorie Taylor Greene Says Hunter Biden Wrote Off Human Sex Trafficking as a Business Expense
Read more… ANALYSIS: Biden, Trump Scandals ‘Freeze’ Politics as Voters Worry Over Democracy’s Future
Read more… Texas cops charged with murder after shooting woman in ‘mental health…
Artificial Intelligence is the New “Danger” the Government Wants to “Protect” You Against
June 26, 2023 3:57 pm
The new “threat” to humanity that the U.S. Government is currently rushing forward to protect us all from, is the alleged threat from “Artificial Intelligence” (AI). The “threat” of AI is generally published through the corporate media as a two-fold threat that requires government regulation: 1. AI could develop superior intelligence and destroy the human race, and 2. AI is going to replace millions of people in the work force. Both premises are false, and by diverting the public’s attention to these 2 alleged “threats,” they are mostly ignoring (or downplaying) the REAL danger of AI, which is a level of control and censorship that this world has never seen before. The primary strength of the new AI programs is the incredible speed at which data can be retrieved and packaged into a controlled narrative, and therefore the race is now on to determine who controls all this data. Who gets to control all this data and control the narratives based on the data, will be decided by government policy all in the name of “protecting the public” from the “dangers” of AI taking away people’s jobs and wiping out humanity. Last week, Senate Majority Leader Chuck Schumer unveiled his SAFE Innovation Framework for Artificial Intelligence (AI) which gives us a good idea as to where they want to go with “regulating” AI. And just who will develop these government regulations to “protect the American people and all of humanity from AI’s novel risks”? Starting in the fall, Sen. Schumer said he will begin inviting “the best of the best” – top AI developers, community leaders, executives, scientists, advocates, workers, and national security experts – to convene in one room to do “years of work in just months.” So the threat is so large and so imminent, that the people who created this risk, the AI developers themselves, will be the ones who develop the solutions, and what would normally take “years” will only take “months.” Hmm…, where have we heard this before? Ah, yes, “Operation Warp Speed” which produced the “solution” to the COVID-19 “virus” that threatened humanity with a new “vaccine” that would normally take “years” to develop but was developed in only “months.” This is the “Great Reset.”
From Merck To Microsoft: These Are The Companies That BlackRock ‘Controls’ The Most Of
June 26, 2023 4:04 pm
A week after an employee of the world’s largest asset management company, BlackRock, described how the company attempts to stay out of the media spotlight while buying politicians and profiting off of war (according to undercover footage obtained by the O’Keefe Media Group), we thought it worth a look at just what companies does the 34-year-old company have the most control of. As a reminder, in footage secretly recorded by undercover journalists in New York, a BlackRock recruiter named Serge Varlay explains how the investment company is able to “run the world.” “They [BlackRock] don’t want to be in the news. They don’t want people to talk about them. They don’t want to be anywhere on the radar,” Varlay said.
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:1.0946 UP 0.0037
USA/ YEN 143.62 UP 0.156 NOW TARGETS INTEREST RATE AT .50% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…//YEN STILL FALLS//
GBP/USA 1.2723 UP 0.0013
USA/CAN DOLLAR: 1.3167 UP .0015 (CDN DOLLAR DOWN 15 BASIS PTS)
Last night Shanghai COMPOSITE CLOSED UP 38.42 PTS OR 1.23%
Hang Seng CLOSED UP 354.00 PTS OR 1.88%
AUSTRALIA CLOSED UP .53% // EUROPEAN BOURSE: ALL MIXED
Trading from Europe and ASIA
I) EUROPEAN BOURSES ALL MIXED
2/ CHINESE BOURSES / :Hang SENG CLOSED UP 354.00 PTS OR 1.88%
/SHANGHAI CLOSED UP 38.42 PTS OR 1.23%
AUSTRALIA BOURSE CLOSED UP 0.53%
(Nikkei (Japan) CLOSED DOWN 160.48 PTS OR 0.49%
INDIA’S SENSEX IN THE GREEN
Gold very early morning trading: 1921.80
silver:$22.86
USA dollar index early TUESDAY morning: 102.19 DOWN 13 BASIS POINTS FROM MONDAY’s close.
The USA/Yuan, CNY: closed ON SHORE (CLOSED UP …7.2202
THE USA/YUAN OFFSHORE: (YUAN CLOSED (UP)…. (7.2183)
TURKISH LIRA: 26.05 EXTREMELY DANGEROUS LEVEL/DEATH WATCH/HYPERINFLATION TO BEGIN.//ON DEATH WATCH
the 10 yr Japanese bond yield at +0.371…VERY DANGEROUS
Your closing 10 yr US bond yield UP 6 in basis points from MONDAY at 3.776% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic
USA 30 yr bond yield 3.854 UP 5 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 UP 12.03 points or 0.16%
German Dax : CLOSED UP 41,48 PTS OR 0.21%
Paris CAC CLOSED UP 34.40 PTS OR 0.47%
Spain IBEX UP 121.40 PTS OR 1.31%
Italian MIB: CLOSED UP 160.15 PTS OR 0.59%
WTI Oil price 68.72 12: EST
Brent Oil: 73.50 12:00 EST
USA /RUSSIAN /// AT: 85.06 ROUBLE DOWN 0 AND 2//100 RUBLES/DOLLAR
GERMAN 10 YR BOND YIELD; +2.3045 DOWN 5 BASIS PTS
UK 10 YR YIELD: 4.3400 UP 2 BASIS PTS
CLOSING NUMBERS: 4 PM
Euro vs USA: 1.0960 UP 0.0051 OR 51 BASIS POINTS
British Pound: 1.2752 UP .0042 or 42 basis pts
BRITISH 10 YR GILT BOND YIELD: 4.414% UP 10 BASIS PTS//
USA dollar vs Japanese Yen: 144.06 UP 0.595 //YEN DOWN 60 BASIS PTS//
USA dollar vs Canadian dollar: 1.3183 UP .0031 CDN dollar, UP 31 basis pts)
West Texas intermediate oil: 67.55
Brent OIL: 72.12
USA 10 yr bond yield UP 5 BASIS pts to 3.769%
USA 30 yr bond yield UP 3 BASIS PTS to 3.8443%
USA 2 YR BOND: UP 11 PTS AT 4.775%
USA dollar index: 102.48 UP 9 BASIS POINTS
USA DOLLAR VS TURKISH LIRA: 26.02 (GETTING QUITE CLOSE TO BLOWING UP/
USA DOLLAR VS RUSSIA//// ROUBLE: 85.06 UP 0 AND 3/100 roubles
DOW JONES INDUSTRIAL AVERAGE: UP 211.76 PTS OR 0.63%
NASDAQ 100 UP 256.89 PTS OR 1,75%
VOLATILITY INDEX: 13.64 DOWN 0.61 PTS (4.28)%
GLD: $177.69 UP 0.82 OR 0.46%
SLV/ $20.98 UP .08 OR 0.38%
end
USA AFFAIRS
TODAY’S TRADING IN GRAPH FORM
Stocks Soar As Strong Data Batters Bonds & Bullion, Sparks Hawkish Shift In Rate-Hike Odds
BY TYLER DURDEN
TUESDAY, JUN 27, 2023 – 04:00 PM
Strong housing data today is bad news for The Fed – and the market’s ‘pause-hopers’ – as it threatens to re-ignite the Owners Equivalent Rent segment of CPI (which has rolled over and is helping with the recent trend of disinflation).
For context, the housing macro data is seeing the biggest serial upside surprises since 2003…
Source: Bloomberg
Consumer confidence also spiked, according to The Conference Board, and Durable Goods orders also surged in May. All-in-all, hot, damned hot, as overall macro surprise data is soaring…
Source: Bloomberg
And that all sent hawkish shivers through the STIRs market – with a 25bp hike in July now trading at 75% odds (and that terminal rate – around 5.35% – holding through year-end)…
Source: Bloomberg
But long-duration stocks didn’t care. In fact from the moment the cash market opened, we were off to the races as the algos lifted everything (with Small Caps and Nasdaq leading the charge). The Dow lagged, weighed down by WBA’s weakness. Some late-day selling, profit-taking wiped a little lipstick off the pig…
Options-traders (all expiration and 0-DTE) panic-bought calls all day…
Which ignited a huge short-squeeze. ‘Most shorted’ stocks surged over 4% from their lows…
Source: Bloomberg
VIX was lower again on the day and with stocks higher, the outlier correlation of VIX and S&P has begun to fade from 30 year highs…
Source: Bloomberg
From around 1130ET, the market barely saw any negative TICKs…
Source: Bloomberg
Before we leave equity-land, we note that while many have noted the concentration of equity market performance, we point out that the ‘median’ stock’s performance is dramatically decoupled from the S&P 500 cap-weighted indices. We note that the last time these two indices decoupled to this scale was Q4 2021 (marking the peak in the S&P 500)…
Source: Bloomberg
Treasury yields were all higher on the day with the belly underperforming (3Y +8bps, 30Y +2bps). Yields are all higher on the week now…
Source: Bloomberg
The yield curve (3s30s) flattened (inverted deeper) almost back to pre-SVB lows…
Source: Bloomberg
Bonds (even Bills) continue to offer an alternative (6mo bill yields at their widest vs the S&P’s earnings yield since Jan 2001)…
Source: Bloomberg
The dollar was lower on the day – despite the hawkish shift in rates – dumped during the early Asian market (Yuan strength) and then going nowhere…
Source: Bloomberg
Bitcoin surged overnight up to $31,000 but fell back – still closing higher though…
Source: Bloomberg
Oil prices tumbled ahead of tonight’s API data, with WTI unable to hold $70, falling back to the recent range lows…
Gold continues to make lower highs and lower lows, back to 3-month lows…
Finally, to sum everything up…strong data (hawkish ‘good is bad’ signal), rate-hike odds up (hawkish response), stocks up (implied dovish signal, easing financial conditions), bond yields up (hawkish response to less recession risk, Fed reaction function), dollar down (implied dovish response to a hawkish shift?), commodities down (implied demand fears from hawkish response).
Longer-term things have ‘decoupled;…
Source: Bloomberg
Confused yet? Are macro data surprises at “as good as it gets” levels?
b) THIS AFTERNOON TRADING/
end
END
i c Morning/
end
II) USA DATA/
Despite high mortgage costs home prices surged in April
US Home Prices Surged In April; All 20 Cities See Gains As Rates Dipped
TUESDAY, JUN 27, 2023 – 09:07 AM
Having bounced (unexpectedly) in March (the most recent data), Case-Shiller’s home price index was expected to continue bouncing in April (+0.4% MoM exp) and it did bigly – rising 0.91% MoM – the biggest MoM jump since May 2022…
Source: Bloomberg
Home prices peaked in June 2022, declined until January 2023, and then began to recover. The National Composite rose by 1.3% in April (repeating March’s performance), and now stands only 2.4% below its June 2022 peak. Our 10- and 20-City Composites both gained 1.7% in April.
“The U.S. housing market continued to strengthen in April 2023,” says Craig J. Lazzara, Managing Director at S&P DJI.
“The ongoing recovery in home prices is broadly based. Before seasonal adjustments, prices rose in all 20 cities in April (as they had also done in March). Seasonally adjusted data showed rising prices in 19 cities in April (versus 14 in March).
Notably the bounce in the highly-lagged Case-Shiller home price data occurred as mortgage rates eased lower. They are now back near recent cycle highs – above 7.00%…
Source: Bloomberg
Lazarra adds:
“If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument. Whether we see further support for that view in coming months will depend on the how well the market navigates the challenges posed by current mortgage rates and the continuing possibility of economic weakness.”
Finally, as a reminder, the man behind the home price index – Yale economist Bob Shiller – told CNBC’s “Closing Bell: Overtime” last month that “home prices are very, very high by historical standards.”
“I would extrapolate the downturn somewhat – it’s going to continue,” he added.
“Maybe if you have a good chance to delay your purchase, it might be a good time to do it.”
“It might get a little cheaper after another six months.”
This is certainly not the ‘normalization’ that The Fed is looking for from its aggressive tightening.
END
US Durable Goods Orders Unexpectedly Soar In May
TUESDAY, JUN 27, 2023 – 08:36 AM
Amid an ugly slew of manufacturing survey data – from national PMI/ISM to regional Feds – it should be no surprise that analysts expected US Durable Goods Orders to drop 0.9% MoM in May.
However, as is the way nowadays, durable goods orders preliminary print jumped a strong 1.7% MoM, with April upwardly revised to +1.2% MoM…
END
Consumer confidence jumps to 17-month high as inflation slows. Americans more optimistic on economy
June 27, 2023 at 10:10 a.m. ET
MarketWatchConsumer confidence index rises to 109.7 in June from 102.5
The numbers: A survey of consumer confidence jumped to a 17-month high of 109.7 in June, reflecting a slowdown in inflation and more confidence about the future of the economy.
The closely followed index increased 7.2 points from a revised 102.5 in May, the Conference Board said Tuesday. The May reading was the lowest in six months.
Consumer confidence tends to signal whether the economy is getting better or worse. The index is still well below the levels associated with a healthy economy, however.
Economists polled by The Wall Street Journal had forecast the index to register 104.
Big picture: Consumers have been telling pollsters for the past year that they are unhappy about the economy. Yet they are still spending like the economy is in good shape.
What explains the divide?
Inflation is running high and Americans are paying more for everything. Yet wages are also rising, unemployment is low and people are secure in their jobs. That’s given them the confidence to spend — and to keep the economy out of recession.
III) USA ECONOMIC STORIES
WALGREEN//
A strong indicator showing problems in the uSA economy: “A very cautious consumer”
Walgreens Boots Alliance Inc. shares plunged more than 8% in pre-market trading Tuesday in New York after the company slashed its full-year earnings guidance and missed Wall Street expectations for its fiscal third quarter due to “a more cautious and value-driven consumer.”
The drugstore chain and healthcare services company revised its earnings guidance lower to a range of $4.00 to 4.05 per share for the full year, down from its previous estimate of $4.65. Adjusted earnings were $1 per share, missing analysts’ average estimate of $1.06. However, revenue in the quarter was $35.4 billion, beating analysts’ expectations of $34.2 billion.
Year Forecast
Sees adjusted EPS $4.00 to $4.05, saw $4.45 to $4.65, estimate $4.44 (Bloomberg Consensus)
Third Quarter Results
Adjusted EPS $1.00, estimate $1.06
Sales $35.42 billion, estimate $34.21 billion
US sales $27.87 billion, estimate $26.78 billion
International sales $5.6 billion, estimate $5.42 billion
Adjusted gross margin 18.8%, estimate 20.4%
“Our revised guidance takes an appropriately cautious forward view in light of consumer spending uncertainty while still demonstrating clear drivers of a return to operating growth next fiscal year,” Chief Executive Rosalind Brewer said. She continued:
“We are raising our cost savings program target to $4.1 billion and taking immediate actions to optimize profitability for our US.”
Shares of Walgreens plunged 9%. If losses hold in the pre-market, the stock will hit the lowest level since 2010 in the cash session.
The earnings miss is the first time Walgreens has missed Wallstreet analysts’ expectations since July 2020.
Brewer said, “Significantly lower demand for Covid-related services, a more cautious and value-driven consumer, and a recently weaker respiratory season created margin pressures in the quarter.”
Evercore ISI analyst Elizabeth Anderson called the company’s third quarter “tough.” She said, “The more significant trouble appeared starting with gross profit, which fell 150 bps yoy, driven by a similar step down in US Retail Pharmacy (less COVID contribution).”
And perhaps this is yet another sign Goldman’s Rich Privorosky is correct, “something is not quite adding up on the consumer” and asked, “Have we just run out of excess savings and are we returning to replenishing savings?”
In a note to clients earlier this month, Privorosky pointed to three excerpts from recent corporate transcripts (from Target, Walmart, and Costco) revealing consumers buckling under financial stress. So add Walgreens to the ever-expanding list.
It’s not like any of this is a surprise. After two years of persistent negative real wage growth, soaring credit card debt, depleted personal savings, and the highest interest rates in a generation, consumers are running on fumes.
END
Blackrock CEO drops ESG saying he was ashamed to be part of this stupid game.
(zerohedge)
BlackRock CEO Drops “ESG” Term After Blowback
MONDAY, JUN 26, 2023 – 10:00 PM
On Sunday, BlackRock CEO Larry Fink revealed at the Aspen Ideas Festival that he had abandoned the term “ESG” (environment, social, and governance) because it has been highly politicized and even “weaponized,” and he is “ashamed” to be part of the debate, according to Axios.
Fink acknowledged at the event that Florida Gov. Ron DeSantis’ decision to yank $2 billion in assets hurt his firm. Gov. DeSantis pulled state assets managed by the world’s largest money manager in late 2022 over “woke” capitalism policies.
Lawmakers from red states have called out BlackRock for its toxic woke capitalism push in corporate America. Besides Florida, states like Louisiana, South Carolina, Utah, Arkansas, West Virginia, Missouri, and Texas have withdrawn funds from the asset manager.
Last month, seventeen Republican state attorneys filed a motion with the Federal Energy Regulatory Commission to dispute whether BlackRock could purchase more than $10 million voting stakes in utility companies.
“These elitists are trying to impose restrictions on energy companies and utilities that would never win approval at the ballot box.
“Their schemes could raise utility bills for regular Americans, including elderly Hoosiers on fixed incomes, and they could diminish the value of their investment accounts,” Indiana Attorney General Todd Rokita said in a statement last month.
Fink, 70, said he was “ashamed of being part of this conversation,” adding:
“When I write these [investment] letters, it was never meant to be a political statement. … They were written to identify longterm issues to our longterm investors.”
Of course, that’s nonsense. Fink has been at the center of pushing ‘climate change’ policies and has even said his company would “force behaviors” on corporate America.
And then there’s this…
Axios said at the event:
When pressed on the statement later in the conversation, Fink backtracked.
“I never said I was ashamed,” he said, incorrectly. “I’m not ashamed. I do believe in conscientious capitalism.”
“I’m not going to use the word ESG because it’s been misused by the far left and the far right,” he added.
Fink isn’t ashamed of ESG… He’s furious the scheme to ram woke capitalism down corporations through voting proxies has hit a serious snag and generated serious blowback from lawmakers and average Americans.
Here are some of BlackRock’s top holdings.
The billionaire will always champion ESG.
It will just be rebranded under another name.
END
LORDSTOWN MOTORS
Lordstown motors files for bankruptcy as they have no product to sell
(zerohedge0
Lordstown Motors Files For Bankruptcy, Shares Crash
TUESDAY, JUN 27, 2023 – 11:50 AM
After filing for bankruptcy protection, electric truck startup Lordstown Motors Corp. shares crashed Tuesday morning in premarket trading in New York. At the same time, Lordstown sued iPhone maker Foxconn Technology Group for fraud and breach of contract.
Lordstown’s move to seek Chapter 11 protection from creditors comes after a dispute with Foxconn over a deal to produce trucks at an assembly plant in Ohio. Lordstown sold its Ohio factory, a former GM plant, to Foxconn in November 2021.
The bankruptcy filing and Foxconn legal mess come after short-sellers circled the company like vultures, alleging it had no sellable product and a Securities and Exchange Commission inquiry about inflated vehicle pre-orders.
Even though the Lordstown story has ended, Foxconn still owns the Ohio factory plant that used to produce the Chevy Cruze sedan in 2019 and employed roughly 1,400 people. Foxconn has ambitions to provide EV manufacturing services in the US. And it wants 5% of the global EV market by 2025.
Lordstown shares in premarket trading crashed as much as 67% after closing Monday at $2.77. The company rode the SPAC boom, trading over $400 per share in early 2021. And the lesson for retail traders during the Covid mania: What goes up must come down.
Lordstown listed as much as $500 million of both assets and liabilities in the bankruptcy filing. It said it doesn’t have any debt.
In November, Foxconn agreed to invest $170 million in Lordstown and take two board seats. The capital infusion would’ve given the struggling EV startup much-needed capital (and more time).
Lordstown sued Foxconn this morning for fraud and breach of contract, claiming the manufacturer’s actions “had the intended effect of destroying the business of an American startup.”
Foxconn said it would like to “reach a solution that could satisfy all stakeholders, without resorting to baseless legal actions, but so far the two parties have yet to reach a consensus.”
“Regarding [Lordstown Motors Corp] litigation announcement today and the false comments and malicious attacks made by LMC in its external statements against Foxconn, the Company reserves the right to pursue legal actions and also suspends subsequent good faith negotiations.”
Anheuser-Busch has fired two marketing executives who were placed on leave after destroying the Bud Light brand with an advertising campaign featuring transgender influencer Dylan Mulvaney.
According to the Daily Caller, Group VP for Marketing Daniel Blake, and Bud Light Marketing VP Alissa Heinerscheid are “gone, gone” after initially being placed on leave, per an anonymous source.
“To my understanding if we publicly announced the word ‘fire’ it opens up the potential for them to sue us. Thats why we said leave of absence,” said the source in a text message to the Caller. “The wholesalers would have had an absolute HAY DAY with leadership if they didn’t remove her.” (Or maybe a field day?)
“To be fair- Daniel Blake was actually awesome. I think he was just caught in cross fire. But also he did hire her… so thats a fault,” the source continued.
“Wholesalers were told they are both gone for good by leadership during in person conversations. They already shifted all their direct reports to new people and the head of marketing,” they said.
Earlier in June, Bud Light parent company Anheuser-Busch opened an email the Caller sent asking for specifics about Blake and Heinerscheid but did not reply. The Caller specifically asked whether the two were still on leave, whether they were on paid leave or unpaid leave and whether they would be returning to work if they hadn’t yet. The company was given multiple days to respond to the deadline.
Bud Light has faced heavy criticism and lost its spot as America’s top-selling beer in early June due to a boycott that began after transgender influencer Dylan Mulvaney showed off a personalized beer can featuring the influencer’s face. -Daily Caller
One Anheuser-Busch distributor told The Wall Street Journal earlier this month, “Our year is screwed” because of slumping sales and since they don’t carry Modelo, which has taken the top spot.
For the week ending June 3, Bud Light sales were still down 24%, while Modelo Especial was up 12%. The latest numbers follow Memorial Day weekend images shared on social media showing desperate retailers marking 18-packs of Bud Light all the way down to just $2.99.
Betting on a new ad campaign to stop the bleeding is a gamble. Dave Williams, vice president of consumer insights and analytics at Bump Williams, told USA Today this week that Bud Light faces further declines and Modelo will continue to take market share nationwide.
Bud Light has an uphill battle to regain its customer base after abandoning them for a clownish trans-TikTok star. The damage seems irreversible as many beer drinkers have realized the light beer is ‘piss water masquerading as beer.’
USA// COVID
end
SWAMP STORIES
This will destroy pizza restaurants in New York. How foolish can one get?
“This Is Utter BS”: New York City Considering New Rules To Ban Emissions From Coal And Wood Fired Pizza Ovens
MONDAY, JUN 26, 2023 – 04:40 PM
Climate warriors in New York, who banned gas stoves and furnaces from most new buildings across the state, are now coming after pizza ovens.
The New York Post reports new rules were drafted by the New York City Department of Environmental Protection (DEP) that could order nearly 1,700 pizzerias across five boroughs to reduce carbon emissions by 75%. One city official said about 100 pizzerias could be impacted.
“All New Yorkers deserve to breathe healthy air and wood and coal-fired stoves are among the largest contributors of harmful pollutants in neighborhoods with poor air quality,” DEP spokesman Ted Timbers wrote in a statement Sunday. He continued:
“This common-sense rule, developed with restaurant and environmental justice groups, requires a professional review of whether installing emission controls is feasible.”
The rule could require pizzerias with coal-and-wood-fired ovens built before 2016 to purchase emission-control scrubbers that cost tens of thousands of dollars to stay compliant.
“Oh yeah, it’s a big expense!” Paul Giannone, the owner of Paulie Gee’s in Greenpoint, told NYPost.
Giannone said, “It’s not just the expense of having it installed, it’s the maintenance. I got to pay somebody to do it, to go up there every couple of weeks and hose it down and you know do the maintenance.”
He added the air filter is “expensive, and it’s a huge hassle.”
Another restaurateur said, who requested anonymity, said negotiations are underway with DEP officials on whether some pizzerias might be able to be grandfathered or exempt from the mandate.
He was very clear that politicians better stop messing with their crust:
“This is an unfunded mandate and it’s going to cost us a fortune not to mention ruining the taste of the pizza totally destroying the product.”
He continued:
“If you f—k around with the temperature in the oven you change the taste. That pipe, that chimney, it’s that size to create the perfect updraft, keeps the temp perfect, it’s an art as much as a science. You take away the char, the thing that makes the pizza taste great, you kill it.”
32-year-old Brooklyn Heights resident, and pizza lover, Saavi Sharma added:
“I’m all for responsible environmental practice but tell Al Gore to take one less private jet or something. Give me a break! I’ve been bragging about this pizza to my family for like five years. Don’t mess with this!”
Even Elon Musk, the ‘green’ savior singlehandedly responsible for ushering in electric vehicles, took to Twitter to voice his displeasure at the proposed rules.
“This is utter bs. It won’t make a difference to climate change,” he tweeted.
Climate warriors aren’t just angering everyday people by banning gas stoves, but now they have pissed off NYC’s Little Italy. Their agenda to decarbonize the economy is hurting ordinary people while those who tout the environment on world stages fly in private jets and sail in superyachts.
end
Georgetown hires Fauci as a “distinguished criminal” of infectious diseases
(zerohedge)
Georgetown Hires Anthony Fauci As “Distinguished Professor” Of Infectious Diseases
The highly controversial infectious disease expert who many argued made disastrous mistakes regarding his recommended COVID-19 pandemic responses has been hired as a distinguished professor at Georgetown University.
“Starting July 1, Fauci will serve as a Distinguished University Professor in the School of Medicine’s Department of Medicine in the Division of Infectious Diseases, an academic division that provides clinical care, conducts research and trains future physicians in infectious diseases,” the institution announced Monday.
“He will also hold an additional appointment in the university’s McCourt School of Public Policy.”
The 82-year-old Fauci, who has advised “seven presidents on crises from AIDS to Ebola to the coronavirus … stepped down after 38 years as director of the National Institute of Allergy and Infectious Disease in December,” the Washington Postreported.
Fauci has come under increasing scrutiny from lawmakers and the public at large over not only his handling of the COVID pandemic strategy but also his past work and research funding decisions, including his NIH role in approving controversial “gain of function” coronavirus research.
Fauci also came under fire because an NIH division he oversaw funded various studies that exposed dogs to devocalization and euthanatized them to test various vaccines, Poynter reported.
As for his handling of the pandemic, Steven Mosher, author of “The Politically Incorrect Guide to Pandemics,” argued in a June 2022 op-ed for the New York Post that under Fauci’s influence, the country committed “every epidemiological sin in the book,” including instituting harmful school closures, requiring pointless contact tracing, failing to protect the most vulnerable, and ignoring and dismissing natural immunity.
Mosher called Fauci the man who is “almost single handedly responsible for the failed COVID policies of the past two-plus years.”
END
THE KING REPORT
The King Report June 27, 2023
Independent View of the News
Bank of Japan member called for early revision of YCC at June meeting – to improve market function and mitigate its “high cost,” the member was quoted as saying…http://reut.rs/3JuAqzP
Japan’s top currency diplomat escalates warning against weak yen Japan will not rule out any options available to respond appropriately to excessive currency moves, its top currency diplomat Masato Kanda said on Monday, stepping up warnings against recent yen weakening that was “rapid and one-sided.”… http://reut.rs/3Jxz1Z9
S&P Global downgraded its China 2023 GDP forecast to 5.2% from 5.5%.
China Economy Gloom Worsens With Weak Consumer Spending Data Domestic travel spending during the recent holiday for the dragon-boat festival was lower than pre-pandemic levels, according to official data released this weekend. Home sales figures are below the level in previous years, while estimates for June car sales showed a drop from a year ago… https://news.yahoo.com/china-economic-gloom-worsens-weak-033733050.html
Dragon Boat Festival spending hit 37.3B yuan ($5.2B), about 5.1% below 2019 spending. 106 million trips were made, 12.8% higher than in 2019 according to China’s Ministry of Culture and Tourism.
The CSI 300 Index sank as much as 1.6% and closed -1.41%. The Shanghai Composite declined 1.48%; the Shenzhen Composite dropped 1.81%. Part of the Chinese equity carnage was due to pent up selling after the mainland markets were close for the 3-day Dragon Boat Festival holiday (June 22 to June 24).
The yuan sank as much as 0.9% to a 7-month low of 7.238/dollar.
China’s Looming Balance Sheet Recession: The Hidden Threat to Economic Growth Japan fell into this same problem back in the early-1990s. And so did the West after 2008. And monetary easing proved pretty useless for growth (only created asset bubbles)…. a balance sheet recession refers to an economic situation in which the main problem affecting an economy is the excessive debt burden of households, businesses, or both… during a balance sheet recession, the primary concern of households and businesses is to repair their damaged balance sheets by paying down debt rather than spending or investing. And this results in reduced consumption, decreased business investment, and a lack of overall demand in the economy. As a consequence, economic growth becomes sluggish or negative, and unemployment may rise… https://t.co/GdQZzwCzJP
@EmmaCFA1: China has… via direct currency devaluation and forced borrowing to fund unproductive infrastructure investment projects for well over a decade. This has slowly eroded China’s growth potential… Here’s how China’s government destroyed its prospects for long-term prosperity, “For Dummies” Edition:The government embarked on an aggressive urbanization campaign, moving farmers into the cities and forcing massive investment in infrastructure development, with zero regard to the demand levels needed to make such investments (and borrowing) productive. Now the country sits on lots upon lots of empty, unfinished buildings… With young adults in cities now, finding work is problematic due to crushing debts and their destruction of demand, as default cycles trigger slowing growth, and as growth slows the default problem becomes even more pronounced… Defaults permeate the business climate, nobody trusts the banks or the currency, and many lose hope. Simultaneously (and not coincidentally), Births per female collapses, bigly. This is the natural consequence when governments attempt to “accelerate urbanization” via shady interventionist initiatives, ones that ultimately do not serve the people… they were better off living on and managing the farm… Youth unemployment rates are above 20% in China; grown males live in their parents garage… no way to create a family unit in Chinese culture. Young men who aren’t gainfully employed are effectively removed from the dating pool, whether they like it or not (female parents play an integral role)… debt and horrendous employment prospects make children much less attractive, even risky. 𝗔𝘀𝗯𝗿𝘂𝘁𝗮𝗹𝗮𝘀𝗶𝘁𝘀𝗼𝘂𝗻𝗱𝘀, 𝗲𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝗵𝗮𝗻𝗱𝗹𝗲𝘀𝘁𝗵𝗲𝗿𝗲𝘀𝘁. When all is said and done: 𝗗𝗲𝗺𝗼𝗴𝗿𝗮𝗽𝗵𝗶𝗰𝘀 + 𝗗𝗲𝗯𝘁 = 𝗗𝗲𝘀𝘁𝗶𝗻𝘆
Drop in German business morale points to longer recession Business climate index fell to 88.5 in June from 91.5 in May Expectations were much more pessimistic, with the related Ifo index falling to 83.6 from May’s 88.3. Companies also assessed their current situation more poorly, with that index falling to 93.7 from 94.8. https://www.reuters.com/markets/europe/german-business-sentiment-falls-further-june-2023-06-26/
Pfizer tumbled over 5% after it halted the development of lotiglipron, a weight loss drug, because trials data showed elevated levels of transaminases, which play a key role in liver functions.
Tesla sank as much as 5% on Goldman’s downgrade to neutral from buy due to a difficult pricing environment for new vehicles. Nvidia declined as much as 4.85%. The NY Fang+ Index sank.
Land transport stocks soared because Susquehanna raised its price target on Old Dominion Freight Line to 320 from 310. Yes, Virginia, numerous traders are still so bullish that they buy on de minis good news.
ESUs rallied during early Asian trading on the usual Sunday night buying. They peaked at 23:15 ET and then declined until 3:37 ET. ESUs and stocks then vacillated in a wide range until the range narrowed from 5:45 ET until the early US rally began at 7:42 ET. The rally ended quickly; ESUs traded sideways until they exploded higher when the NYSE opened.
ESUs jumped to 4399.50, +25.00 from the low, by 9:45 ET. ESUs then oscillated wildly in tight range until they made a new high of 4403.00 at 10:06 ET. Once again, ESUs vacillated wildly. However, they broke lower after the first hour of NYSE trading ended.
A 5-wave ESU decline hit a daily low of 4374.25 at 12:10 ET. The Noon Balloon was short lived; ESUs and stocks hit new lows at 12:44 ET. The early afternoon rally was modest and ended at 13:40 ET. The ensuing moderate ESU decline ended at 14:25 ET. After a 12-handle rally, ESU traded in a 5-handle range from 14:39 ET until they began to tumble at 15:40 ET. ESUs and stocks sank into the close.
For the past several weeks, US stocks have exhibited weakness from Monday through Thursday but rallied on Thursday and Friday. This pattern could be usurped by end of Q2 rebalancing. While the usual suspects try to manipulate stuff higher on Thursday and Friday, they are likely to encounter institutional selling. The robust equity rally in Q2 coupled with bond weakness will force money managers to rebalance their portfolios by selling equities and buying stocks.
Positive aspects of previous session The DJTA rallied sharply on soaring land transportation stocks The usual morning US rally appeared
Negative aspects of previous session Fangs got hammered, which drove Nasdaq and the Naz 100 sharply lower ESUs and US stocks peaked on the usual morning buying from conditioned traders
Ambiguous aspects of previous session How profound will Q2 rebalancing affect the markets this week?
First Hour/Last Hour Action [S&P 500 Index]: 1st Hour from NYSE Open: Up; Last Hour: Up
Pivot Point for S&P 500 Index [above/below indicates daily trend to traders]: 4339.65 Previous session High/Low: 4362.06; 4328.08
FT: West explores nuclear risks from unstable Putin regime (Security of RU nukes is a big concern) Officials have discussed possible negative outcomes from Wagner insurrection destabilising Kremlin https://www.ft.com/content/35b0291b-5d02-4869-851b-a1de4080c5f6
@sentdefender: Yevgeny Prigozhin has spoken for the first time since his attempted “coup” … stating, “Despite the fact that we did not show any Aggression, a Missile Attack was launched on us. 30 fighters were killed and others were injured. This served as a trigger for our immediate advance… We regret that we had to strike at aircraft, but they attacked us with bombs… Our March showed serious security problems across our country but it was never our goal to overthrow the current regime and legally-elected government.”… he has no remorse for… the rebellion. He also stated that the Wagner PMC Group was supposed to Cease Operations on July 1st of 2023 but that Belarusian President Lukashenko suggested that they could continue operations on the “Legal Jurisdiction” of Belarus. Preparations are reportedly underway for the construction of a major operations base for the Wagner near the Town of Osipovichi in the Mogilev Region of Eastern Belarus…
WSJ’s @yarotrof: Monday midday recap. Wagner is still there, still armed. Shoigu releases an old video of inspecting troops. Despite the Kremlin’s amnesty promise, the criminal investigation of Prigozhin on armed mutiny charges continues, Tass says. Prigozhin’s whereabouts are unknown. Wagner by the way has not been disarmed, and remains as of now just as formidable a force that it was on Friday.
@sambendett: Putin addressed Russians this evening: “The enemies wanted our society to split… The armed rebellion would have been suppressed in any case. The organizers understood this… The organizers of the rebellion, having betrayed the country, betrayed those who were with them. They aligned their motives with the Nazis in Kyiv… wanted Russian soldiers to kill each other… and for Russia to lose the war.” Spoke to the courage of RU pilots who died suppressing Wagner. Thanked Belarussian Dictator Lukashenko for negotiating peace. “I thank those soldiers and commanders of the Wagner group who did not go to the fratricidal war. You will be able to conclude a contract with the RU Ministry of Defense, return to your loved ones or go to Belarus. This promise will be fulfilled.” Putin’s speech did not mention Prigozhin by name, just talked about the “traitors who wanted to shed Russian blood in internal strife.” It was underwhelming for most on Telegram who wanted clarity over what actually transpired over the weekend. He did say that the promise he made to the Wagnerites – clemency for their actions – would be fulfilled: “…and those who can – can leave for Belarus. You have a choice which I hope will be a choice of those who recognized their tragic mistake.” SOMETHING IS HAPPENING in Russia. Putin’s address to the nation tonight was cryptic & there are signs that something, yet secret, is transpiring. Kremlin Spokesman, Peskov, had said that Putin’s speech “will change the fate of Russia.” However, it looked pre-recorded & as if it cut-off before it was finished… What is the second, “urgent,” part of the speech that we have not yet seen??
The FT’s @maxseddon: Russian pro-war Telegram channels were hyping this up like Putin was going to fire Shoigu or annex Belarus. The main news was Putin said Wagner’s fighters should either sign up with MOD, go home, or go to Belarus. Looks like the standoff is not exactly resolved just yet… I’m not sure why Putin bothered to put this out, except for the fact Prigozhin made a big statement today that dominated headlines. Amazing how Prigozhin is setting the agenda. Over Putin’s entire rule I can only recall Navalny doing that, or Chechen rebels if you go way back.
@R__Politik: Here are a few observations at the end of today:Yevgeny Prigozhin made his first statement since the mutiny: He does not appear downtrodden at all, continues to make political statements, and is now appealing more confidently to public support.The Kremlin has yet to find a way to deal with him – this is not the end.Authorities are divided on what to do about Wagner. Some, like Kartapolov or Starovoit, have defended Wagner, while others, like Sobolev (and the Defense Ministry), insist on its disarmament. This division is a result of Putin’s lack of a coherent position, which he will need to formulate.Social networks are filled with sparkling humour – people are treating the entire situation as a circus and collectively ridicule Putin, Shoigu, Prigozhin, and anyone else they can think of.Although Prigozhin has retreated, he is now a figure of a completely different scale. Putin will need to address this, weighing all the risks of a possible negative reaction from Prigozhin’s sympathizers among the nation at large.The elites may have exhaled a sigh of relief, but they remain in a state of silent shock. Many are grappling with how fragile the entire ‘construction’ has proven to be. Asking themselves the question, how was it possible to get out of such mutiny unpunished, many come to realize that much more is now allowed than might have seemed. Tatiana Stanovaya @Stanovaya: Below is a brief description of Prigozhin’s mutiny and the factors that contributed to its outcome:https://twitter.com/Stanovaya/status/1672991911538196482
WSJ’s Yaroslav Trofimov & Thomas Grove: Putin continued to believe that time was on Russia’s side. Western democracies helping Ukraine would eventually tire… while his regime, secured by increasingly draconian laws that eliminated the liberal opposition at home, would endure and eventually win. The Wagner uprising, however, made it obvious that Russia is far less stable than Putin believed. “The hopes… that a long war is beneficial for Russia…are a dangerous illusion,” said Ruslan Pukhov, director of Moscow-based Center for Analysis of Strategies and Technologies, a military-affairs think tank. “Prolongation of the war carries huge domestic political risks for the Russian Federation.” Putin himself compared Russia’s current predicament to 1917, when troops tired of the bloodshed of World War I mutinied and overthrew Czar Nicholas II… https://www.wsj.com/articles/putins-war-on-ukraine-backfires-leading-to-wagner-uprising-at-home-6530de71
If the WSJ’s Yaroslav Trofimov and Thomas Grove’s article is correct, Putin must greatly escalate the war in Ukraine or commence back-door negotiations, probably via China, to end the war to save him.
Ukraine President @ZelenskyyUa (6/22): Intelligence has received information that Russia is considering a scenario of a terrorist attack on the Zaporizhzhia nuclear power plant. A terrorist attack with radiation leakage… I have repeatedly had to remind that radiation has no state borders…
@LucasFoxNews: Five years ago, the U.S. military got into a scrap with the Wagner Group in Syria. After U.S. troops were attacked, Defense Secretary Mattis (DJT) ordered airstrikes killing hundreds of mercenaries. Asked about the incident Mattis later told a reporter, “They never bothered us again.”
Today – Traders will try to affect a Turnaround Tuesday to the upside. Monday’s action was largely traders buying at the usual times of the day (patterns) only to be thwarted by what appears to be organic sellers. As noted above, this dynamic is likely to dominant action this week.
Bulls need a rally; technical damage is occurring on equity indices. The DJIA’s 50-day and 100-day moving averages have turned down. MACD for the S&P 500 Index has turned negative on a daily basis.
ESUs are +7.50 and USUs are +2/32 at 20:15 ET.
Expected economic data: May Durable Goods -0.9% m/m, Ex-Trans 0.0%, Nondef Ex-Air 0.2%, Shipments 0.25: April FHFA House Price Index 0.5% m/m; S&P CoreLogic 20-city house prices 0.35% m/m, -2.6% y/y; May New Home Sales 675k; June Conference Board Consumer Confidence 104; June Richmond Fed Mfg. Index -12
S&P 500 Index 50-day MA: 4206; 100-day MA: 4120; 150-day MA: 4062; 200-day MA: 3995 DJIA 50-day MA: 33,613; 100-day MA: 33,360; 150-day MA: 33,454; 200-day MA: 32,870 (Green is positive slope; Red is negative slope)
Babylon Bee: DOJ Finds No Evidence of Bribery in Photo of Biden Holding Sign Reading ‘Will Trade Political Favors 4 Cash’
@TheFirstonTV: On June 18th, Joe Biden said he’s building a railroad from the Pacific Ocean to the Indian Ocean. On June 22nd, Biden said he’s building a railroad from the Atlantic Ocean to Africa. No one has asked him or the @PressSec about his Magic Choo Choo Train.
@bennyjohnson: House Speaker Kevin McCarthy says he’ll start impeachment of Attorney General Merrick Garland by July 6 over bombshell IRS whistleblower testimony that he interfered in criminal investigation into Hunter Biden.https://twitter.com/bennyjohnson/status/1673328331884843010
@townhallcom: BIDEN: “I was watching in the other room, but I didn’t realize, you know, I didn’t bring along all the cable I, ya know, namdy expools! You’re incredible! Thank you!” https://twitter.com/townhallcom/status/1673365734733361152
Is Barack Obama Ready To Reassert Himself? Former President Barack Obama has hosted a handful of informal, but lengthy private meetings with groups of next-generation House Democrats this spring… The former president is no doubt aware that convening multiple, extended interactions with House Democrats… could irritate the White House and inflame his off and on rivalry with Biden… (stoke) view that Obama is… secretly running the Biden White House or plotting his former vice president’s ouster… https://www.politico.com/news/magazine/2023/06/22/obama-next-gen-democratic-leaders-00103041
“Blatant Political Corruption”: The Rot in America’s Democracy Explained in Under 1000 Words The more we learn about the 2020 election, the more undeniable it becomes that Biden owes his “victory” to blatant political corruption. To wit: 1…18… https://t.co/KawASOrHTH
@WSJ: The unfolding 2024 campaign is shaping up as one in which each party accuses the other of criminality, with the cumulative effect being the steady erosion of public trust in the U.S. political system.
‘The 2024 elections are going to be a mess’ because of A.I. and misinformation: Former Google CEO Eric Schmidt (Mind-addling chutzpah from Schmidt!)https://t.co/VXyxcDcF2w
A Google billionaire’s fingerprints are all over Biden’s science office More than a dozen officials in the 140-person White House office have been associates of Schmidt’s… Schmidt’s relationship with powerful Democrats dates from the 1990s. As CTO of Sun MicroSystems, he helped develop Bill Clinton’s first White House website at WhiteHouse.gov in 1994. When Schmidt was CEO of Google, he hit the campaign trail for Obama in October of 2008 but explained he was “doing this personally” since “Google is officially neutral.” During the Obama administration, while Schmidt served as Google CEO and later executive chair, company representatives attended White House meetings more than once a week, on average, from 2009 to 2015, according to an analysis by The Intercept and the Campaign for Accountability. During Obama’s 2012 election reelection campaign, while he was still Google’s executive chairman,Schmidt helped recruit talent and advise on technology and was among senior staffers and volunteers in the campaign’s “boiler room” on election night. He went all-in for Hillary Clinton in 2016. In April 2014, a year before Clinton announced her candidacy, he sent her senior aide Cheryl Mills a long memo entitled “Notes for a 2016 Democratic Campaign.” At her election night party in 2016, he was photographed wearing a “staff” badge.. https://www.politico.com/news/2022/03/28/google-billionaire-joe-biden-science-office-00020712
NYT:As Legal Fees Mount, Trump Steers Donations into PAC That Has Covered Them A previously unnoticed change in Donald Trump’s online fund-raising appeals allows him to divert a sizable chunk of his 2024 contributions to a group that has spent millions to cover his legal fees. Trump has quietly begun diverting more of the money he is raising away from his 2024 presidential campaign and into a political action committee that he has used to pay his personal legal fees… https://www.nytimes.com/2023/06/25/us/politics/trump-donations-legal-fees.html
@DeSantisWarRoom: Trump: We will “carry out the largest domestic deportation operation in American history.” Trump ran on this same promise in 2016, but ended up deporting fewer illegals than Barack Obama. “The Trump administration deported only around one-third as many illegal immigrants from the interior than the Obama administration during its first four fiscal years.” Source:https://www.migrationpolicy.org/article/trump-deportations-unfinished-mission
The Most Important Meeting in the History of the World That Never Happened There was a brief moment in spring 2020, just a few days into “15 Days to Slow the Spread,” when we had a chance to change our trajectory…. In the third week of March a secret emergency meeting was scheduled to take place between President Donald Trump, the COVID Task Force, and eight of the most eminently qualified public health experts in the world. This elite group of scientists was slated to present the highest-level decision-makers in our government with an alternative POV to lock down… On March 17, 2020 Ioannidis published a groundbreaking STAT article “A fiasco in the making? As the coronavirus pandemic takes hold, we are making decisions without reliable data.” He asked aloud what many of us were wondering privately: would this fiat public health response be a “once-in-a-century evidence fiasco?”…Ioannidis’ rational and well-reasoned POV in STAT ran squarely against the official narrative, and garnered immediate pushback from “the establishment… On amazingly short notice, Ioannidis had managed to assemble a literal COVID dream team. These scientists were the real deal: actual bonafide “experts” in a landscape of cosplayers and clout chasers… So what the heck happened between March 24 and March 28? How did thishistoric meeting go from “on” to “Oh, never mind?” What on earth could’ve nuked it? Or… who?… (He doesn’t know.) https://brownstone.org/articles/most-important-meeting-in-history-of-world-that-never-happened/
@ricwe123: So this French TV host asks John Kerry if there isn’t a double standards between the US’s position on Putin for his “war of aggression” and the fact they don’t think those standards apply to Bush for Iraq. John Kerry, embarrassed, replies Iraq wasn’t a war of aggression. https://twitter.com/ricwe123/status/1673211219921055744 @ggreenwald: This is hilarious: John Kerry is on a tour flamboyantly depicting Russia as a rouge state for invading a sovereign country, only for French journalist @DariusRochebin to remind him the US has invaded multiple countries, and Kerry himself voted to authorize the Iraq War. The complete lack of self-awareness on the part of the US establishment sometimes shocks me…
When will America put out the three-alarm fire in its public schools? The latest round of test scores from the National Assessment of Educational Progress… shows achievement in reading and math among 13-year-olds tested last year has fallen off a cliff. The math scores were the worst in more than 30 years; in reading, more than a half-century… The biggest villain for children of the pandemic, the president of the American Federation of Teachers, Randi Weingarten, continues to fail upward… She pushed to keep schools shut for the entire 2020-21 year, well after everyone knew they weren’t COVID spreaders. Lately, she’s attempted to rewrite her role during that time, and the media has tried to help her… Despite all this, Homeland Security Secretary Alejandro Mayorkas just appointed Weingarten to theHomeland Security Academic Partnership Council. Kids be damned; there are political allies to reward!… https://nypost.com/2023/06/23/when-will-america-put-out-the-three-alarm-fire-in-its-public-schools/
@TPostMillennial: PRIDE SEATTLE: Adults encourage children to throw “bricks” at pictures of Republicans. Pictures feature Trump, Gov. Ron DeSantis, Sen. Ted Cruz, and others. Video by: @KatieDaviscourt https://twitter.com/TPostMillennial/status/1673431443144597505
Babylon Bee: Pedophile Jailed for Flashing Kids at Playground Kicking Himself for Not Doing It at Pride Parade Instead – “…and their parents would have cheered me on!”…https://buff.ly/3Xo7oaN
@TheBabylonBee: Modern-Day Good Samaritan Sees Injured Man on Side of Road, Angrily Tweets about Republicans
GREG HUNTER
Just a little personal note that today we are celebrating our 52nd wedding anniversary.
Daliah is behind me all the time, as she refuses to allow me to quit writing this blog.
harveyorganblog.com 
Wonderful what you are doing! Many thanks.
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