Saturday, August 17, 2019

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U.S. Public Debt Surges By $175 Billion In One Day

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by Steve St. Angelo, SRSrocco:

After the U.S. Government passed the new budget and debt increase, with the President’s signature and blessing, happy days are here again.  Or are they?  As long as the U.S. Government can add debt, then the Global Financial and Economic Ponzi Scheme can continue a bit longer.  However, the days of adding one Dollar of debt to increase the GDP by two-three Dollars are gone forever.  Now, we are adding three-four Dollars of debt to create an additional Dollar in GDP.  This monetary hocus-pocus isn’t sustainable.

Well, it didn’t take long for the U.S. Government to increase the total debt once the debt ceiling limit was lifted.  As we can see in the table below from the treasurydirect.gov site, the U.S. public debt increased by a whopping $175 billion in just one day:

I gather it’s true that Americans like to do everything… BIG.  In the highlighted yellow part of the table, it shows that the total U.S. public debt outstanding increased from $20.49 trillion on Feb 8th to $20.69 trillion on Feb 9th.  Again, that was a cool $175 billion increase in one day.  Not bad.  If the U.S. Government took that $175 billion and purchased the average median home price of roughly $250,000, they could have purchased nearly three-quarter of a million homes.  Yes, in just one day.  The actual figure would be 700,000 homes.

Regardless, we are now off to the races when it comes to adding GOBS of DEBT to continue a Ponzi Scheme that would make Bernie Madoff jealous.

There is so much that I want to write about and put into videos, but there is only so much time in the day.  I saw Andy Hoffman’s newest video where he let his followers know that he sold the rest of his Gold and was totally out of precious metals and fully invested in Bitcoin and Cryptos.  Good for Andy.  Unfortunately for Andy, like many who rely on SUPERFICIAL ANALYSIS forgets there is this thing called “ENERGY” that makes everything work.  Without energy, the entire SYSTEM comes crashing down.  And the most fragile part of the system is HIGH-TECH and especially Bitcoin that consumes a disgusting amount of energy to provide no real productive use.  More on that later.

However, if you haven’t watched my newest video on the Huge Market Correction Update & Silver Price Trend, I suggest that you do:

The idea that precious metals are a Barbarous Relic and are no longer useful because High-Tech Cryptos will be the new currency, totally disregards the dire energy predicament we are facing.  Andy Hoffman got out of gold and silver and into Cryptos because he, like many, are guilty of SUPERFICIAL THINKING & ANALYSIS.  I don’t mean to be harsh here, but when Andy mentions in his video that when the OLD FARTS who believe in precious metals finally die off, then the younger folks will have totally forgotten about gold and silver, get’s my creative juices flowing.

If you do not incorporate the ENERGY DYNAMIC into your analysis or forecasts, you will be totally unprepared for what is coming.

Read More @ SRSrocco.com

Record Short Bets against 10-Year Treasury Promise Turmoil

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by Wolf Richter, Wolf Street:

A very crowded trade goes begging for a contrarian reaction.

The 10-year Treasury yield closed on Monday at 2.86% the highest since January 16, 2014, after briefly kissing 2.89% during the day. At the moment, it is holding at 2.85%. Bond prices fall when yields rise – and being short the 10-year Treasury, and thus betting on a rising yield, has become a very crowded and profitable trade for hedge funds and other speculators.

Short bets in 10-year Treasury futures rose to 939,351 contracts, the most ever, according to Commodity Futures Trading Commission data through February 6, cited by Bloomberg yesterday.

This record came even after the market turmoil on February 5, when the Dow plunged 4.6% and when, briefly, Treasuries soared, with the 10-year yield dropping 13 basis points, which would have made shorts very nervous. But apparently, they hung on, as their record short positions through February 6 shows, when the 10-year yield rose again and closed at 2.79%.

The next step is 3%. The last time the 10-year yield was 3% was in early January 2014, and then only for a few days at the end of a brief spike. In May 2013, it got close, but no cigar (2.98%). And before then, it was at 3% in July 2011.

That 3% is a key level for another reason. At around 3%, the 10-year becomes very alluring for long-term holders, given today’s dividend yields and other yields, and it will bring out more buyers.

The emergence of these additional buyers may coincide with short-sellers trying to take profits, which may conspire to pump up the price and push down the yield. And this, fired up by speculators trying to get out of a short position, would turn into a sharp snap-back rally for the 10-year Treasury, and a sharp drop in yields. This could take off even before the 10-year yield hits 3%, and it could catch some speculators by surprise.

Tomorrow, those speculators will get to deal with the Consumer Price Index. If it comes in “benign,” it could trigger a buying spree of Treasuries with longer maturities and push down their yields. If it comes in on the upside, yields could jump on their way to 3%. For highly leveraged shorts, this will be a white-knuckle moment.

The chart above shows how smooth the one-way bet against the 10-year Treasury has been since September last year. The market, just when it gets this crowded on one side of the boat, is setting up for a downward jag in that smooth spike. With speculators suddenly switching sides, we could see some wild gyrations over the next few weeks.

But on March 21, the FOMC will likely announce the next rate hike and might give clues on what lies ahead. The yield curve has been steepening gently from its dreadfully flat slope late last year, and this is a trend I expect to continue; so in this scenario, over time, the 10-year yield would rise faster than yields of shorter maturities.

Read More @ WolfStreet.com

Declassified: Comey Had Secret Russia Meeting With Obama Amid “Unmaskings”

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from ZeroHedge:

An odd email sent moments after the inauguration by former National Security Advisor Susan Rice, apparently to herself, describes a January 5, 2017 meeting between members of the U.S. intelligence community and President Obama, while Rice and the Obama were knee deep in “unmasking” the Trump team. 

We also know from recently released text messages between anti-Trump FBI agents Peter Strzok and Lisa Page that “potus wants to know everything we’re doing.”

In her email, Rice very deliberately notes that President Obama “stressed his continued commitment to ensuring that every aspect of this issue is handled by the Intelligence and law enforcement communities “by the book“. and that Obama “stressed that he is not asking about, initiating or instructing anything from a law enforcement perspective.”

Rice’s “CYA” email to herself is so bizarre in light of the fact that we now know the Trump-Russia investigation was anything but “by the book,” that Senate Judiciary Chairman Chuck Grassley (R-IA) fired off a letter asking her just what in tarnation she knows. 

It strikes us as odd that, among your activities in the final moments on the final day of the Obama administration, you would feel the need to send yourself such an unusual email purporting to document a conversation involving President Obama and his interactions with the FBI regarding the Trump/Russia investigation,” the two senators told Rice.

Comey

In addition to Deputy Attorney General Sally Yates, VP Joe Biden, Obama and Rice, the fifth participant in the Jan 5, 2017 meeting was none other than former FBI Director James Brien Comey Jr., also known as “Boyscoutish” Jim. 

What’s notable about Comey’s attendance in the meeting is that it appears he misled Congress about his contact with President Obama. 

Previously, Comey contended he only met with the Obama twice, once in 2015 and another “to say goodbye in late 2016,” according the former FBI director’s June 8, 2017, testimony before the Senate Select Committee on Intelligence.

I spoke alone with President Obama twice in person (and never on the phone) – once in 2015 to discuss law enforcement policy issues and a second time, briefly, for him to say goodbye in late 2016,” Comey’s opening statement read. –Daily Caller

Comey’s prepared statement to congress deliberately omits the January 5 meeting, and qualifies his meetings with Obama as “alone.” In other words, since the Jan 5 meeting wasn’t “alone,” Comey didn’t include it – thus, it appears he deliberately mislead Congress about his communications with President Obama.

So while the former FBI Director painted a picture of minimal communication between the FBI, DOJ, and the Obama Administration in his briefing to Congress – we now know that they were in virtual lockstep over their efforts to surveil Donald Trump as a candidate, an incoming President, and a sitting President

Obama

We also learned in the last week that President Obama was far more “hands on” the FBI investigation than he previously admitted – as revealed in a batch of text messages between anti-Trump FBI agents Peter Strzok and Lisa Page, in which Page tells Strzok “potus wants to know everything we’re doing.” 

Read More @ ZeroHedge.com

Silver, Gold and the Dow

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by Gary Christianson, Miles Franklin:

The gold to silver ratio hit 80 to 1 last week.  That is unusual – the 3rd highest in over 20 years.  It tells us:

  • Silver prices are too low compared to gold. Silver falls harder than gold, and rises more rapidly in the late stages of a rally.
  • Both gold and silver prices are too low. This is confirmed by the amount of global debt, the crazy heights of the stock market, low commodity prices, monetary nonsense, and political uncertainties.
  • Both silver and gold bottomed in December 2015 and have risen modestly since then. Cryptocurrencies (such as Bitcoin) and the stock markets, DOW, NASDAQ and S&P 500, have zoomed higher. This will change. Bitcoin has already crashed.
  • The next major move in silver and gold prices will be upward – probably for several years – unless you are convinced this time is different, the Federal Reserve and our Congress have created a permanently high plateau for stocks, and the Easter Bunny is bringing wonderful gifts to all Americans.

WHY?

The gold to silver ratio reached its peak of 102 in early 1991. At that time the U.S. government sold silver from its stockpile, central banks sold gold, and neither silver nor gold had recovered from their blow-off highs in 1980.

The ratio reached 84 in 2008 after the crash, 81 in 2016, and 80.0 last week. Examine this graph of the gold-to-silver ratio for the past 32 years.

The high gold to silver ratio peaks were buy points for both metals.

Another perspective is seen in the inverse of the ratio – the silver to gold ratio.

This graph shows that the silver-to-gold ratio has fallen to the long-term trend line near 1.25 (silver prices multiplied by 100).

CORRELATION OF THE SILVER TO GOLD RATIO AND SILVER PRICES:

Silver prices are volatile and unpredictable. They are “managed,” along with gold and most other markets, by High-Frequency-Traders and central banks. In the short term, the machines are in control.  In the longer term, cost of production, scarcity, ongoing currency devaluations, excessive debt, monetary nonsense, investor fears and other factors are more important.

Consider this graph of the (100 times) silver to gold ratio and weekly silver prices. Even on this “noisy” weekly graph the statistical correlation of the ratio and silver prices exceeds 0.50.  The ratio indicates bottoms and tops in silver prices. The high and low spikes in the ratio match price spikes.

WHAT ABOUT ALL COMMODITIES?

The commodity index (Thomas/Reuters Index) divided by the S&P 500 Index shows the relative strength between real commodities and paper stocks. Both stocks and commodities rise in price as the government and Federal Reserve devalue the dollar. But stocks have risen more rapidly for the past 15 years as newly created dollars surged into stocks and largely ignored commodities.

Read More @ MilesFranklin.com

Timo Marshall: How To Make Alcohol

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from Chris Martensen:

Rumors Grow that the U.S. Fed is Propping Up the Stock Market

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by Pam Martens and Russ Martens, Wall St On Parade:

It’s not every day that three well-credentialed men are willing to put their names and reputations behind the allegation that the U.S. Federal Reserve is rigging the stock market. But that’s exactly what happened yesterday. Paul Craig Roberts, a former Associate Editor of the Wall Street Journal and Assistant Secretary of the U.S. Treasury under President Ronald Reagan joined with Economist Michael Hudson and Wall Street veteran Dave Kranzler to write that “it appears that in May 2010, August 2015, January/February 2016, and currently in February 2018 the Fed is rigging the stock market by purchasing S&P equity index futures in order to arrest stock market declines.”

This is not the first time the Fed has come under such suspicion. In 2013 Time Magazine’s Dan Kadlec wrote the following about the unprecedented number of central banks that were moving into stock purchases:

“The U.S. Federal Reserve does not appear to have joined in the stock-buying trend. The Fed is not permitted to make direct stock purchases. But there is nothing to prevent it from funding a Special Purpose Vehicle that buys a broad basket of stocks through indexes or Exchange Traded Funds. In the past year, Wall Streeters have speculated the Fed would buy stocks as part of its quantitative-easing programs to stimulate the economy.”

More suspicions were raised on May 23 of last year when long-tenured New York Post financial writer, John Crudele, suggested that the heavy purchases of stocks by the Swiss central bank could be “as an agent of US financial authorities who fear that a big decline in stock prices would be against America’s national interest?”

According to the latest official annual report of the Swiss central bank, it held $140 billion in stocks as of December 31, 2016, a 30 percent increase over 2015. We also reported on August 25 of last year that the Swiss central bank had a very large appetite for big U.S. tech stocks. We wrote:

“Since June 30 of last year, Switzerland’s central bank, the Swiss National Bank, has increased its stock holdings of five U.S. social media/tech stocks from $5.3 billion to $9.38 billion, an increase of 77 percent in 12 months. The stocks are Apple, Alphabet (parent to Google), Microsoft, Amazon and Facebook. The stock information comes from a 13F filing the Swiss National Bank made this month with the U.S. Securities and Exchange Commission (SEC), a quarterly form required of institutional investment managers who manage $100 million or more.”

Apple and Microsoft are two of the component stocks of the Dow Jones Industrial Average, a popular index used to gauge market strength. Apple, Alphabet, Microsoft, Amazon and Facebook are all components of the Nasdaq 100 index, another closely watched indicator of stock market strength.

But why single out the Swiss central bank? According to a research report released last week by BNY Mellon in collaboration with the University of Cambridge’s Judge Business School, 39 percent of central banks surveyed are now investing in stocks and 72 percent reported use of derivatives as part of their investment management activities.” It is likely that interest rate swaps are the more common derivatives being used by central banks. However, S&P 500 futures contracts are also derivatives and would be the most efficient means of propping up stock prices and/or leveraging a directional bet in stocks.

Another central bank closely aligned with the U.S. that is loading up on stocks is the Bank of Israel. Stanley Fischer, who recently served as Vice Chairman of the U.S. Federal Reserve under Janet Yellen, was governor of Israel’s central bank from 2005 to 2013. He holds dual citizenship.

In February 2016, Haaretz reported that the Israel central bank had increased its stock purchases to 10 percent of reserves or about $9 billion. That was up from 8 percent in 2014 and 3 percent when the central bank first began purchasing stocks in 2012. The largest representation in its global stock portfolio was U.S. stocks.

Read More @ WallStOnParade.com

GOLD UP $13.40 TO $1328.00/SILVER DOWN 3 CENTS TO $16.57

by Harvey Organ, Harvey Organ Blog:

THE YEN RISES DRAMATICALLY AND THAT SENT GOLD/SILVER HIGHER AS IT UNWINDS YEN CARRY TRADERS/VIX REMAINS RELATIVELY HIGH AT 25.00/THE USA 10 YR BOND YIELD STILL VERY HIGH OF 2.835%/JANUARY SEES A HUGE INCREASE IN GOLD DERIVATIVES UP TO 580 TONNES/MORE SWAMP STORIES FOR YOU TONIGHT

GOLD: $1328.00 UP $3.40

Silver: $16.57 DOWN 3 cents

Closing access prices:

Gold $1329.50

silver: $16.57

SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)

SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1324.85 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1323.60

PREMIUM FIRST FIX: $1.25

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SECOND SHANGHAI GOLD FIX: $1334.47

NY GOLD PRICE AT THE EXACT SAME TIME: $13235.40

Premium of Shanghai 2nd fix/NY:$9.07

 

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LONDON FIRST GOLD FIX: 5:30 am est $1329.40

NY PRICING AT THE EXACT SAME TIME: $1329.90

LONDON SECOND GOLD FIX 10 AM: $1325.35

NY PRICING AT THE EXACT SAME TIME. $1326.00

For comex gold:

FEBRUARY/

NUMBER OF NOTICES FILED TODAY FOR FEBRUARY CONTRACT: 0 NOTICE(S) FOR NIL OZ.

TOTAL NOTICES SO FAR:1783 FOR 178300 OZ (5.458 TONNES),

For silver:

FEBRUARY

89 NOTICE(S) FILED TODAY FOR

445,000 OZ/

Total number of notices filed so far this month: 215 for 1,075,000 oz

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Bitcoin: BID $8508/OFFER $8576: DOWN $351(morning)

Bitcoin: BID/ $8602/offer $8671: DOWN $255  (CLOSING/5 PM)

 

end

 

There are 4 tools used by the manipulators to raise stock prices while stocking down gold and silver:

 

  1. increasing the value of the USA dollar index
  2.  shorting yen  (buying usa/yen) which is your carry trade ie. buy stocks, short yen gold
  3.  hammer vix (the volatility index) which states that everything is OK. ie. short volatility and gold buy stocks
  4.  contain the 10 yr USA treasury yield below 2.80%

we are beginning to see fractures in all of them.  today it was the yen that rose and that drove gold/silver higher.

Let us have a look at the data for today\

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In silver, the total open interest FELL BY A TINY SIZED 453 contracts from 195,964  FALLING TO 195,511  DESPITE  YESTERDAY’S SOLID 40 CENT GAIN IN SILVER PRICING.  WE  HAD MINIMAL COMEX LIQUIDATION. HOWEVER, WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  1862 EFP’S FOR MARCH AND AND 0 EFP’S FOR MAY AND ZERO FOR ALL  OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 1864 CONTRACTS.  WITH THE TRANSFER OF 1862 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S. THE 1862 CONTRACTS TRANSLATES INTO 9.32 MILLION OZ.  WITH THE HUGE DROP IN OPEN INTEREST AT THE COMEX. WE SHOULD EXPECT BIGGER GAINS IN EFP TRANSFERS IN THE NEXT FEW DAYS WITH THE LARGE LOSS AT THE COMEX AS LONGS GAVE UP SEEKING METAL AT THIS EXCHANGE.

ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF FEBRUARY:

32,254 CONTRACTS (FOR 10 TRADING DAYS TOTAL 32,254 CONTRACTS OR 161.270 MILLION OZ: AVERAGE PER DAY: 3225 CONTRACTS OR 16.125 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  161.3 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 23.0% OF ANNUAL GLOBAL PRODUCTION

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:  409.6 MILLION OZ.

ACCUMULATION FOR JAN 2018: 236.879 MILLION OZ

RESULT: A TINY SIZED GAIN IN OI SILVER COMEX DESPITE THE SOLID  40 CENT GAIN IN SILVER PRICE.  WE HOWEVER HAD A GOOD SIZED EFP ISSUANCE OF 1862 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER . FROM THE CME DATA 1862 EFP’S  FOR  MONTHS MARCH AND MAY WERE ISSUED FOR MONDAY  FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS.   WE GAINED  1883 OICONTRACTS i.e. 1862 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 21  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE CONSIDERABLE RISE IN PRICE OF SILVER OF  40 CENTS AND A CLOSING PRICE OF $16.60 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A FAIR AMOUNT OF SILVER STANDING AT THE COMEX.

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.980 BILLION TO BE EXACT or 140% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT FEBRUARY MONTH/ THEY FILED: 89 NOTICE(S) FOR 445,000 OZ OF SILVER

In gold, the open interest  FELL BY A TINY 590 CONTRACTS DOWN TO 510.150 DESPITE THE GOOD SIZED RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($12.00).HOWEVER, IN ANOTHER DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED FOR MONDAY AND IT TOTALED A FAIR SIZED  3381 CONTRACTS OF WHICH  APRIL SAW THE ISSUANCE OF 3381 CONTRACTS AND  JUNE SAW THE ISSUANCE OF 0 CONTRACTS AND THEN ALL OTHER MONTHS ZERO.    The new OI for the gold complex rests at 510,150. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE INCREASE IN GOLD COMEX OI  TOGETHER WITH  THE TOTAL AMOUNT OF GOLD OUNCES STANDING FOR FEBRUARY COMEX. EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER (BIG RISE IN BOTH GOFO AND SIFO) AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE TODAY DESPITE YESTERDAY’S TRADING IN GOLD,  WE HAVE A GAIN OF 2791  CONTRACTS: 590 OI CONTRACTS DECREASED AT THE COMEXAND A FAIR SIZED  3381 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.(2791 oi gain in CONTRACTS EQUATES TO 8.68 TONNES)

FRIDAY, WE HAD 6968 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF FEBRUARY STARTING WITH FIRST DAY NOTICE: 102,277 CONTRACTS OR 10,227,700  OZ OR 318.10 TONNES (10 TRADING DAYS AND THUS AVERAGING: 10,227 EFP CONTRACTS PER TRADING DAY OR 1,022,700 OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 9 TRADING DAYS: IN  TONNES: 318.10 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2200 TONNES

THUS EFP TRANSFERS REPRESENTS 318.10/2200 x 100% TONNES =  14.5% OF GLOBAL ANNUAL PRODUCTION SO FAR IN FEBRUARY ALONE.

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  951.63 TONNES

ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018: 653.22  TONNES

Result: A  TINY SIZED DECREASE IN OI AT THE COMEX DESPITE THE STRONG SIZED GAIN IN PRICE IN GOLD TRADING YESTERDAY ($12.00). IT IS WITHOUT A DOUBT THAT MANY OF THE DEPARTED COMEX LONGS  RECEIVED THEIR PRIVATE EFP CONTRACT  FOR EITHER  APRIL OR JUNE. HOWEVER, WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 3381 AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE ALSO OBSERVED A HUGE DELIVERY MONTH FOR THE MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 3381 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 2791 contracts ON THE TWO EXCHANGES:

3381 CONTRACTS MOVE TO LONDON AND  590 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 8.68 TONNES).

we had: 0 notice(s) filed upon for NIL oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD

WITH GOLD UP $3.40 TODAY, THE CROOKS DECIDED NOT THE RAID THE COOKIE JAR/INVENTORY REMAINS CONSTANT/

Inventory rests tonight: 820.71 tonnes.

SLV/ 

NO CHANGES IN SILVER INVENTORY AT THE SLV/ AGAIN WITH TODAY’S HUGE RISE IN SILVER PRICE:   NO CHANGE IN INVENTORY

/INVENTORY RESTS AT 314.045 MILLION OZ/

can someone please explain why GLD behaves differently to SLV????

end

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

1. Today, we had the open interest in silver FELL BY A TINY 453  contracts from 195,964 UP TO 195,511 (AND now A LITTLE FURTHER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE  THE STRONG SIZED  RISE  IN PRICE OF SILVER  (40 CENTS WITH RESPECT TO  YESTERDAY’S TRADING).   OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER GOOD 1862 PRIVATE EFP’S FOR MARCH AND 0 EFP CONTRACTS OR MAY  (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM) AND 0 EFP’S FOR ALL OTHER MONTHS .  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD SOME COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE  OI LOSS AT THE COMEX OF  453 CONTRACTS TO THE 1862 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A GAIN OF  1409  OPEN INTEREST CONTRACTS .  WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ ON THE TWO EXCHANGES:  7.04 MILLION OZ!!!

RESULT: A TINY SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE CONSIDERABLE SIZED RISE OF 40 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING ). BUT WE ALSO HAD ANOTHER GOOD 1862 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD  SIZED AMOUNT OF SILVER OUNCES STANDING FOR FEBRUARY, DEMAND FOR PHYSICAL SILVER INTENSIFIES AS WE WITNESS MAJOR BANK SHORT COVERING ACCOMPANIED BY INCREASES IN GOFO AND SIFO RATES INDICATING SCARCITY.

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)Late MONDAY night/TUESDAY morning: Shanghai closed UP 30.83 points or 0.93% /Hang Sang CLOSED UP 379.90 or 1.29% / The Nikkei closed DOWN 137.94 POINTS OR .65%/Australia’s all ordinaires CLOSED UP 0.63%/Chinese yuan (ONSHORE) closed DOWN at 6.3448/Oil DOWN to 59.08 dollars per barrel for WTI and 62.49 for Brent. Stocks in Europe OPENED DEEPLY IN THE RED EXCEPT LONDON .   ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.3448. OFFSHORE YUAN CLOSED UP AGAINST  THE ONSHORE YUAN AT 6.3395//ONSHORE YUAN A LOT WEAKER AGAINST THE DOLLAR/OFF SHORE A LOT STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  MUCH WEAKER AGAINST ALL MAJOR CURRENCIES INCLUDING ON SHORE CHINA YUAN.  CHINA IS  HAPPY TODAY STRONGER MARKETS IN CHINA 

Read More @ HarveyOrganBlog.com

FBI-gate: The Outlines of the Story Are Coming into Focus

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by Thomas Lifson, American Thinker:

Thanks to the work of smart and hardworking (non-mainstream) journalists, we can peek just a bit over the horizon and see where the story of the weaponization of the FBI via a senior-level cabal is going from here.  I use the word “story” deliberately, because that is the way public opinion forms itself on major political affairs.  The progressives in the media and politics  have long understood this.  The cast of the story is now set, and some dramatic plot points have been identified.  The ending hasn’t been written yet, of course, but the villains are identifying themselves or being exposed, and some of the heroes are emerging.  We are on the cusp of a drama much bigger than Watergate breaking open, and its story elements are compelling.

In the calm before the storm breaks, the mainstream media and the Democrat attack squad from the House Intel committee [i] are in the midst of utterly discrediting themselves.  Once the story breaks into the open, indictments will be handed down, and the witnesses, hostile and cooperating, will be heard in hearings and in court.  They have worked together to cover up and distract from the story, but the truth will out, and now it is becoming clear how that will happen.

The fake controversy over the ten-page Schiff memo is keeping the morale of the #resistance crowd up, but Schiff himself will go down in history as the guy who kicked sand in the eyes of the investigators.  All that media effort in pushing the phony narrative of Russia collusion will make them into dupes and laughingstocks, once the solid evidence is brought to light that a conspiracy to push that phony narrative was run with key members of the Clinton machine working hand in glove with the cabal.

Sharyl Attkisson has done us a great favor in identifying the dramatis personae who formed the FBI “secret society” that protected Hillary and spied on Trump.  She has organized a chart depicting the senior-level personnel changes at the Justice Department during the campaign, the Russia probe, and the Clinton email probe, highlighting in yellow the individuals James Comey appointed.

In the space of a year, as the presidential campaigns got rolling in the fall of 2015, James Comey moved his team into top positions in the intelligence and counterintelligence apparatus of the FBI.  That’s where the surveillance capacity exists.  Thanks to the efforts of Chairman Devin Nunes of the House Intel Committee and Senators Grassley and Graham, we have the basic story already outlined and have received the first installment of the plot: the issuance of the FISA warrants on the basis of a fiction pushed by the Clinton campaign.

Disclosure of some of the lovebird texts of Peter Strzok and Lisa Page already has provided plenty of drama – romance, secrets, hatred, and a break-up text calling off the affair – and there are more texts to come.  Strzok’s firing from the Mueller special counsel’s team was the first manifestation of the cabal being busted, and last week’s flurry of senior-level FBI officials departing is another sign that insiders know that the jig is up.  

Meanwhile, our own Clarice Feldman presents evidence that the guilty plea of General Michael Flynn, the pre-eminent scalp hanging from Special Counsel Robert Mueller’s belt, may be thrown out of court when he appears for sentencing by Judge Emmet Sullivan, following the mysterious recusal of Judge Rudolph Contreras and the equally or even more mysterious request by Mueller to delay sentencing.  Something’s up, and it is big.

The forthcoming Department of Justice inspector general’s report, believed to be slated for next month, is a wild card.  With a staff of 250, I.G. Michael Horowitz should have uncovered much, and Horowitz has a sterling reputation.  But then again, so did James Comey at one point.  Lots of people putatively on our side have vouched for Horowitz, but we don’t know the scope of the report, nor do we know what evidence of corruption will be presented.

However, a game-changer is about to drop.  Last Saturday, we got the first indirect, inferential evidence of a major revelation on its way: there is an informant from among the cast of characters Sharyl Attkisson highlighted in yellow, a canary singing to save himself.  

This mystery figure is the man who, a number of observers noticed, has never been mentioned as the information has dripped out of the FBI.  His name is Bill Priestap, and he was brought in by James Comey as assistant director of the FBI, Counterintelligence Division, in December 2015.

Preistap’s identity as the DOJ’s informant was inadvertently and indirectly confirmed Saturday night by Chris Stewart, a member of the Nunes committee, under informed and targeted questioning by Judge Jeanine Pirro, a former prosecutor and skilled courtroom interrogator.  

Watch below as she blindsides Stewart with Priestap’s name, he deflects the question, and then she circles back in, softening him up by saying, “I don’t like that I haven’t heard of him.”  Then she went in for the kill, laying out the way Comey “threw him under the bus” (more on that later from Sundance) and then says, “The fact that we haven’t heard from Priestap tells me that he’s cooperating with someone or…what?”

Poor Stewart, an honest man, then gives away the game by responding, “Well, look, I’m gonna be careful because I’m not sure what we can say on this, and believe me, I don’t want to be the headline when Chris Stewart reveals a bunch of sensitive or classified information[.]”  Okay, he didn’t say, Yes, Priestap’s a cooperating witness, but it’s clear to me that such an inference is justified.

Read More @ AmericanThinker.com

House Intelligence Panel Issues Seven Subpoenas as Russia Probe Ramps Up

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by Byron Tau and Shane Harris, Wall St Journal:

WASHINGTON—The House Intelligence Committee issued seven subpoenas on Wednesday, in a sign that its investigation into alleged Russian meddling in the 2016 election is advancing in scope and intensity, according to people familiar with the matter.

The Republican-led committee issued four subpoenas related to the Russia investigation, targeting President Donald Trump’s former national security adviser Mike Flynn, Mr. Trump’s personal attorney, Michael Cohen, and their businesses. The committee is also investigating possible ties between Trump associates and Russia.

The other three subpoenas were issued to the National Security Agency, the FBI and the Central Intelligence Agency for information about a procedure known as “unmasking.” The subpoenas are related to questions about how and why the names of the president’s associates were unredacted and distributed within classified reports by Obama administration officials during the transition between administrations.

Wednesday’s requests were the first subpoenas issued by the House committee in the Russia probe so far and showcase the continuing divide within the committee over the direction of the probe. Democrats are seeking an aggressive investigation into Mr. Trump and his associates, and Republicans are pushing for a probe into the unmasking.

Mr. Trump tweeted early Thursday: “The big story is the ‘unmasking and surveillance’ of people that took place during the Obama Administration.”

The Senate Intelligence Committee also is examining suspected Russian involvement in last year’s campaign. That panel is expected to hear testimony as early as next week from former FBI Director James Comey, who was overseeing the agency’s Russia investigation until Mr. Trump fired him on May 9. Russia has denied interfering with the election and Mr. Trump has denied that his associates colluded with the Russian government.

Mr. Comey is expected to testify Mr. Trump asked him to back off the investigation of Mr. Flynn, according to a person familiar with the matter. The panel’s request for Mr. Comey’s testimony was sparked by his abrupt dismissal by Mr. Trump and allegations that Mr. Trump may have been trying to interfere in the continuing investigation. The president has denied the allegations. Mr. Flynn was forced to resign in February after misleading senior White House officials about his conversations in December with the Russian ambassador.

The probe by the Federal Bureau of Investigation is now headed by former agency director Robert Mueller, who was tapped by the Justice Department to serve as a special counsel.

The House investigation suffered a setback when its Republican chairman Devin Nunes was forced to step aside in April after an ethics complaint was filed over his handling of classified materials. Mr. Nunes remains the chairman of the committee but recused himself from the Russia inquiry.

Mr. Nunes signed all seven subpoenas despite his recusal, according to people familiar with the matter. A GOP congressional aide said that the unmasking investigation was now considered separate from the Russia probe, allowing Mr. Nunes to act on his own authority even while recused.

Democrats on the committee criticized the move, saying they didn’t consent to the unmasking subpoenas. “This action would have been taken without the minority’s agreement. Any prior requests for information would have been undertaken without the minority’s knowledge,” said a senior Democratic committee aide.

Democrats are seeking an aggressive probe of Mr. Trump and his associates, including questions about whether they had any contact with Russian agents.

Republicans on the committee are pushing for an investigation of how the names of Trump campaign officials became exposed in classified intelligence reports based off intelligence community intercepts, as well as questions about how classified information about Mr. Trump’s associates was given to the media.

 

Mr. Nunes first raised the issue of unmasking in March based on information he received from the White House.

Typically, information about Americans intercepted in foreign surveillance is redacted, even in classified reports distributed within the government, unless a compelling need exists to reveal or “unmask” them. Unmasking requests aren’t uncommon by top intelligence community officials but Republicans want to know whether any of the unmaskings of Trump campaign officials during the transition were politically motivated.

The most recent subpoenas to the intelligence agencies seek information on any requests made by former national security adviser Susan Rice, former CIA Director John Brennan and former United Nations Ambassador Samantha Power for names to be unmasked in classified material. The three didn’t personally receive subpoenas, the people familiar with the matter said.

Mr. Brennan, Ms. Rice and Ms. Power didn’t respond to requests for comment. Ms. Rice in April told CNN she never did anything “untoward” with intelligence collected on American citizens, including Trump aides working on the transition.

Ms. Power hasn’t previously been reported as a potential witness in the probe so her inclusion in the subpoenas may mean Republicans are broadening their areas of investigation.

Unmasking is typically restricted to high-level officials to safeguard the privacy of Americans caught up in U.S. government spy operations directed at foreign targets. Typically, only top officials within the intelligence agencies and the administration have the ability to ask for unmasking, which is approved by the agency that controls the information.

Read More @ WSJ.com

China Rolls Out J-20 Stealth Fighter, Navy Calls “Serious Threat” To US Assets

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from ZeroHedge:

As tensions mount over the South China Sea shipping corridor which handles $5 trillion in annual trade, China has finally rolled out its Chengdu J-20 stealth fighter jet which some have compared to the United States’ F-22 Raptor.  

The new jet is rumored to have already been deployed to the South China Sea along with several of China’s Su-35s, to take part in a joint combat patrol over the region, according to the Chinese Ministry of Defense whose release did not mention the J-20.

The fourth-generation medium and long-range fighter jet made it’s maiden flight in 2011 and was first shown to the public at a November, 2016 air show in Zhuhai, Guangdong Province. 

A spokesman for the People’s Liberation Army (PLO), Shen Jinke, said that the J-20 would “help the air force better shoulder the sacred mission of safeguarding national sovereignty, security and territorial integrity,” adding that the air force was in the middle of a modernization program in order to fight enemies on all fronts.

Read More @ ZeroHedge.com