Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1177.30 up $4.10 (comex closing time)
Silver $15.95 unchanged (comex closing time)
In the access market 5:15 pm
Gold $1176.30
Silver: $15.97
Gold/Silver trading: see kitco charts on the right side of the commentary
Following is a brief outline on gold and silver comex figures for today:
At the gold comex today, we had a poor delivery day, registering 0 notices serviced for nil oz. Silver comex filed with 0 notices for nil oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 245.82 tonnes for a loss of 57 tonnes over that period.
In silver, the open interest rose by 2351 contracts even though Monday’s silver price was down by 3 cents. The total silver OI continues to remain extremely high with today’s reading at 186,356 contracts now at multi-year highs despite a record low price. This dichotomy has been happening now for quite a while and defies logic. There is no doubt that the silver situation is scaring our bankers to no end.
In silver we had 0 notices served upon for nil oz.
In gold, the total comex gold OI rests tonight at 407,893 for a loss of contracts despite the fact that gold was up $5.40 on Monday. We had 0 notices filed for nil oz.
Late last night, we had no change in gold inventory at the GLD. Thus the inventory rests tonight at 708.70 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold.
In silver, /we had a huge addition of 3.393 million oz in silver inventory at the SLV/Inventory rests at 323.001 million oz
We have a few important stories to bring to your attention today…
1. Today, we had the open interest in silver rise by contracts despite the fact that silver was down in price by 3 cents on Monday. The OI for gold fell by 512 contracts down to 407 contracts despite the fact that the price of gold was up by $5.40 on Monday.
(report Harvey)
2,TF Metals (Craig Hemke) talks about the latest banking participation report
(Turd Ferguson TF Metals report)
3. Today, 2 important commentaries on Greece
zero hedge, Bloomberg)
4. Dave Kranzler of IRD believes that the huge rise in global interest rates has already caused credit derivatives (interest rate swaps) to blow up.
(Dave Kranzler iRD)
5. The rise in bond yields is now causing huge problems with the junk bond market as many flee the ETF’s
(courtesy Bloomberg)
6.Russia’s Gazprom is now settling in yuan for gas purchases to China instead of dollars.
(zero hedge)
7. The two co CEO’s of Deutsche bank were canned leaving one to believe they have some serious derivative problems. Today, prosecutors from the city of Wiesbaden raided the central offices of Deutsche bank in Frankfurt.
(/zero hedge)
8. Saudi Minister warns that the Saudis may have to obtain nuclear weapons if they are not satisfied with the Iran nuclear deal
(zero hedge)
9. Precious metals trading overnight from Asia/Europe
(Goldcore)
10. Trading from Asia and Europe overnight
(zero hedge)
11. Trading of equities/ New York
(zero hedge)
12. HSBC lays off 50,000 workers globally as the economy contracts
(zero hedge)
13. 3 commentaries on the USA housing problems
(Dave Kranzler, IRD,zero hedge)
we have these plus other stories to bring your way tonight. But first……..
let us now head over to the comex and assess trading over there today.
Here are today’s comex results:
The total gold comex open interest fell by 512 contracts from 408,405 up to 407,893 despite the fact that gold was up $5.40 yesterday (at the comex close). We are now in the big active delivery contract month of June. Here the OI fell by 23 contracts down to 1074. We had 1 notice served upon yesterday. Thus we lost 22 contracts or an additional 2200 oz will not stand for delivery. No doubt, again, we had a huge number of cash settlements and the farce continues. The next contract month is July and here the OI rose by 266 contracts up to 8. The next big delivery month after June will be August and here the OI fell slightly by 2 contracts to 269,770. No doubt that the cash settled June contracts, having been bought out for fiat, rolled into August. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 61,209. The confirmed volume on Monday (which includes the volume during regular business hours + access market sales the previous day) was poor at 113,882 contracts. Today we had 0 notices filed for nil oz.
And now for the wild silver comex results. Silver OI rose by 2351 contracts from 184,005 up to 186,356 despite the fact that the price of silver was down in price by 3 cents, with respect to Monday’s trading. The front non active delivery month of June saw it’s OI fall by 6 contract to 35 . We had 6 contracts delivered upon yesterday. Thus we neither gained nor lost any ounces of silver standing in this non active June contract month. The estimated volume today was poor at 25,82 contracts (just comex sales during regular business hours. The confirmed volume on Monday (regular plus access market) came in at 56,956 contracts which is very good in volume. We had 0 notices filed for nil oz today.
June initial standing
June 9.2015
Gold
Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
nil
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
18,212.757 oz (Delaware,Scotia) includes 500 kilobars
No of oz served (contracts) today
0 contracts (nil oz)
No of oz to be served (notices)
1074 contracts (107,400 oz)
Total monthly oz gold served (contracts) so far this month
2599 contracts(259,900 oz)
Total accumulative withdrawals of gold from the Dealers inventory this month
nil
Total accumulative withdrawal of gold from the Customer inventory this month
81,065.2 oz
Today, we had 0 dealer transaction
total Dealer withdrawals: nil oz
we had 0 dealer deposit
total dealer deposit: nil oz
we had 0 customer withdrawals
total customer withdrawal: nil oz
We had 2 customer deposits:
i) Into Delaware: 2137.757 oz
ii) Into Scotia: 16,075.000 oz
Total customer deposit: 18,212.757 oz
We had 0 adjustments:
Today, 0 notices was issued from JPMorgan dealer account and 10 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices were stopped (received) by JPMorgan customer account
To calculate the total number of gold ounces standing for the May contract month, we take the total number of notices filed so far for the month (2599) x 100 oz or 259,900 oz , to which we add the difference between the open interest for the front month of June ( 107) and the number of notices served upon today (0) x 100 oz equals the number of ounces standing.
Thus the initial standings for gold for the June contract month:
No of notices served so far (2599) x 100 oz or ounces + {OI for the front month (1077) – the number of notices served upon today (0) x 100 oz which equals 367,300 oz standing so far in this month of June (11.42 tonnes of gold). Thus we have 11.42 tonnes of gold standing and only 17.07 tonnes of registered or for sale gold is available:
Total dealer inventory 548,748.592 or 17.06 tonnes
Total gold inventory (dealer and customer) = 7,903,214.415 (245.82 tonnes)
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 245.82 tonnes for a loss of 57 tonnes over that period.
end
And now for silver
June silver initial standings
June 9 2015:
Silver
Ounces
Withdrawals from Dealers Inventory
nil
Withdrawals from Customer Inventory
777,491.910 oz (CNT,Brinks)
Deposits to the Dealer Inventory
nil
Deposits to the Customer Inventory
1,013,127.78 oz (CNT,JPM,Scotia)
No of oz served (contracts)
0 contracts (nil oz)
No of oz to be served (notices)
35 contracts(175,000 oz)
Total monthly oz silver served (contracts)
214 contracts (1,070,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
526,732.4 oz
Total accumulative withdrawal of silver from the Customer inventory this month
2,446,709.9 oz
Today, we had 0 deposits into the dealer account:
total dealer deposit: nil oz
we had 0 dealer withdrawals:
total dealer withdrawal: nil oz
We had 2 customer deposits:
i) Into Delaware: 4003.38 oz
ii) Into JPMorgan: 606,844.100 oz
total customer deposit: 610,847.48 oz
We had 2 customer withdrawal:
i) Out of Scotia: 122,372.63 oz
ii) Out of CNT: 634,138.98 oz
total withdrawals from customer; 756,511.610 oz
we had 0 adjustment
Total dealer inventory: 57.845 million oz
Total of all silver inventory (dealer and customer) 178.729 million oz
The total number of notices filed today is represented by 0 contracts for nil oz. 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 (214) x 5,000 oz = 1,070,000 oz to which we add the difference between the open interest for the front month of June (35) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing.
Thus the initial standings for silver for the June contract month:
214 (notices served so far) + { OI for front month of June (35) -number of notices served upon today (0} x 5000 oz ,= 10,875,000 oz of silver standing for the June contract month.
we neither gained nor lost any silver ounces in this non active delivery month of June.
for those wishing to see the rest of data today see:
http://www.harveyorgan.wordpress.com orhttp://www.harveyorganblog.com
end
The two ETF’s that I follow are the GLD and SLV. You must be very careful in trading these vehicles as these funds do not have any beneficial gold or silver behind them. They probably have only paper claims and when the dust settles, on a collapse, there will be countless class action lawsuits trying to recover your lost investment.
There is now evidence that the GLD and SLV are paper settling on the comex.
***I do not think that the GLD will head to zero as we still have some GLD shareholders who think that gold is the right vehicle to be in even though they do not understand the difference between paper gold and physical gold. I can visualize demand coming to the buyers side:
i) demand from paper gold shareholders
ii) demand from the bankers who then redeem for gold to send this gold onto China
vs no sellers of GLD paper.
And now the Gold inventory at the GLD:
June 9/ no change in gold inventory at the GLD/Inventory rests at 708.70 tonnes
June 8/ a big withdrawal of 1.19 tonnes of gold from the GLD/Inventory rests at 708.70 tonnes
June 5/no change in gold inventory at the GLD/Inventory rests at 709.89 tonnes
June 4/ no change in gold inventory at the GLD/Inventory rests at 709.89 tonnes
June 3/late last night: a huge withdrawal of 4.18 tonnes. Tonight’s inventory rests at 709.89
June 2/no change in gold inventory at the GLD/Inventory rests at 714.07 tonnes
June 1/ we had a huge withdrawal of 1.79 tonnes of gold from the GLD/Inventory rests tonight at 714.07 tonnes
May 29/ no changes in gold inventory at the GLD/Inventory rests at 715.86 tonnes
June 9 GLD : 708.70 tonnes.
end
And now for silver (SLV)
June 9/ a monster of an addition to the tune of 3.393 million oz/inventory rests at 323.001 million oz.
June 8/no change in inventory/SLV inventory rests at 319.608 milion oz.
June 5 a huge addition of 1.433 million oz of silver added to the SLV/Inventory at 319.608 million oz
June 4/no change in silver inventory/rests tonight at 318.175 million oz
June 3/ we had a small withdrawal of 138,000 oz of silver inventory/Inventory rests at 318.175 million oz
June 2/ we had a huge addition of 1.243 million oz of silver inventory at the SLV./Inventory rests at 318.313 million oz
June 1/no change in inventory at the SLV/Inventory rests at 317.07 million oz
May 29/no changes in inventory at the SLV/Inventory rests at 317.07 million oz
June 9/2015:a huge addition of 3.393 million oz of silver/ inventory at the SLV now rests at 323.001 million oz/ lately silver has been rising at the SLV with a constant price of silver!!
end
And now for our premiums to NAV for the funds I follow:
Sprott and Central Fund of Canada.
(both of these funds have 100% physical metal behind them and unencumbered and I can vouch for that)
1. Central Fund of Canada: traded at Negative 8.1% percent to NAV in usa funds and Negative 7.7% to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 61.4%
Percentage of fund in silver:38.2%
cash .4%
( June 9/2015)
2. Sprott silver fund (PSLV): Premium to NAV falls to +.28%!!!!! NAV (June 9/2015)
3. Sprott gold fund (PHYS): premium to NAV falls to – .24% to NAV(June 9/2015
Note: Sprott silver trust back into positive territory at +.28%.
Sprott physical gold trust is back into negative territory at -.24%
Central fund of Canada’s is still in jail.
Last week Sprott formally launches its offer for Central Trust gold and Silver Bullion trust:
SII.CN Sprott formally launches previously announced offers to Central GoldTrust (GTU.UT.CN) and Silver Bullion Trust (SBT.UT.CN) unitholders (C$2.64)
Sprott Asset Management has formally commenced its offers to acquire all of the outstanding units of Central GoldTrust and Silver Bullion Trust, respectively, on a NAV to NAV exchange basis.
Note company announced its intent to make the offer on 23-Apr-15 Based on the NAV per unit of Sprott Physical Gold Trust $9.98 and Central GoldTrust $44.36 on 22-May, a unitholder would receive 4.45 Sprott Physical Gold Trust units for each Central GoldTrust unit tendered in the Offer.
Based on the NAV per unit of Sprott Physical Silver Trust $6.66 and Silver Bullion Trust $10.00 on 22-May, a unitholder would receive 1.50 Sprott Physical Silver Trust units for each Silver Bullion Trust unit tendered in the Offer.
* * * * *
end
Early morning trading from Asia and Europe last night:
Gold and silver trading from Europe overnight/and important physical
stories
(courtesy Mark O’Byrne/Goldcore)
U.S. State Finances – Lack “Truth and Integrity” – Volcker Warns
By Stephen FloodJune 9, 20150 Comments
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– U.S. state budgets rely on “faulty practices” – Volcker
– Shoddy budget practices push costs to future generations
– Faulty budget practices lead to poor policy making
– “Problems hidden by lack of truth and integrity” – Volcker
– No common definition of balanced budget allows for gimmicks
The highly regarded former chairman of the Federal Reserve, Paul Volcker, has severely criticized the State Governments in the U.S. over “faulty practices” used to devise budgets which mask the true financial position of those states.
Mr. Volcker, who as Fed chair reined in escalating inflation and stabilised the economy during Ronald Reagan’s tenure, announced in 2013 his intention to form the Volcker Alliance to focus on reforming democracy in the U.S.
It was in a report from the Volcker Alliance that the criticisms were published.
“The palpable erosion of trust in our democratic institutions of government demands a response,” he was quoted as saying.
Mounting fiscal problems in Obama’s Illinois, Detroit’s bankruptcy and the financial troubles coming to a head in Puerto Rico demonstrate the importance of developing better financial policies according to the report.
The dire state of finances in many states has intensified in recent years due to drastic cuts in federal funding following the recession. As a result state budgets are recklessly pushing the costs of current expenditure onto future generations.
“The continued fiscal stress is tempting states to continue, and even intensify, budgeting and accounting practices that obscure their true financial position, shift current costs on to future generations, and push off the need to make hard choices on spending priorities and revenue practices,” the report states.
States are on a constant emergency footing where their budgets are concerned as they try to fund current expenditure with transient sources of revenue. As a result policy making is haphazard and short-sighted.
“The never-ending sense of crisis leads to stop-and-go funding of vital programmes and stifles the need for serious discussions about policy,” according to the report.
As a consequence infrastructure is crumbling, public schools and state lack funding, “rainy day” funds are being depleted, and public workers rely on pension plans that may evaporate.
Volcker believes that there is a lack of honesty in budgeting. “There are problems hidden by a lack of truth and integrity”, he said. The absence of an agreed definition of “balanced budget” allowed States to engage in gimmicks that gave the appearance that spending had not exceeded revenue.
“Techniques include shifting the timing of receipts and expenditures across years, borrowing long-term to pay for current bills, using non-recurring revenues to cover recurring costs and delaying funding of pension and healthcare retirement benefits,” reported the FT.
The report paid particular attention to three states selected at random. They were Virginia, California and New Jersey. Volcker believes that Virginia’s methodology is good, using impartial outside economists. It was still heavily reliant on federal funding however.
The current governor of California has acknowledged the “wall of debt” that was hidden behind budgetary gimmicks and has reduced the debt significantly since 2010.
New Jersey, however, is a case study in bad budgetary practices. The New York Times reports,
“In contrast to California, New Jersey is still producing structural imbalances, according to the report. It has been struggling from year to year by, among other things, taking money out of special dedicated funds and spending it on unrelated activities.”
“For instance, the state has raided hundreds of millions of dollars in toll revenue from the New Jersey Turnpike Authority and used the money to pay for the day-to-day operations of New Jersey Transit. The toll money was supposed to pay for highway construction and maintenance, not mass transit.”
The NY Times adds
“One factor that appeared to make such raids possible is that New Jersey’s official budgeting process is centralized in the governor’s office, giving the executive branch almost sole control over revenue forecasts and spending decisions.”
Mr. Volcker hopes that by identifying various problem areas in state budgets, a common approach may be developed across the U.S. which would help nurse the ailing states back to good health. If improvements are not made an unpleasant day of reckoning may be approaching.
“It’s like termites eating at a structure,” said Mr. Volcker, “The building hasn’t fallen down yet. But if you get enough termites, the building’s going to get pretty rickety.”
How true. Indeed, the problem with the U.S. finances is not just at a state level but also at a national level where there is a similar “lack of truth and integrity.”
The national fiscal position of the U.S. is dire – with a National Debt or Federal Debt of $18.2 trillion and a real national debt and “unfunded liabilities” alone of over $100 trillion.
See Global Debt Now $200 Trillion! & Goldman Sachs Warns “Too Much Debt” Threatens World Economy
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,181.00, EUR 1,046.75 and GBP 772.40 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,173.40, EUR 1,053.32 and GBP 769.85 per ounce.
Gold climbed $3.10 or 0.26% percent yesterday to $1,174.00 an ounce. Silver slipped $0.08 or 0.5 percent to $16.02 an ounce.
Gold in Singapore for immediate delivery inched up 0.4 percent to $1,177.60 an ounce near the end of the day, while gold in Switzerland saw a rise to touch $1,182 an ounce.
Gold is higher today on what appears to be a safe haven bid after equities in Asia and Europe sold off today.
Concerns about the slowing U.S. and Chinese economy and their impact on the global economy are causing jitters.
Gold may also be seeing more safe haven bids from the uncertainty of the ongoing Greece crisis. German Chancellor Angela Merkel warned yesterday that Greece’s time was running out to negotiate a reform-for-aid deal to stay in the eurozone.
Oil prices are 1.2% higher today and that is likely supporting gold. Higher seasonal demand in developed markets and geopolitical risk in the Middle East is offsetting the impact of the global supply overhang.
Shanghai Gold Exchange premiums were almost $2.50 an ounce over the global benchmark, up slightly from $1.50-$2 last week, suggesting Chinese demand remains robust.
In late morning trading gold is up 0.70 percent at $1,182.55 an ounce. Silver is up 1.3 percent at $16.22 an ounce, while platinum is up 1.05 percent at $1,113.20 an ounce.
end
Craig Hemke discusses the criminal actions of the uSA banks as we get our monthly Banking Participation Report
(courtesy Turd Ferguson/Craig Hemke/TFMetals Report)
Another Criminal Bank Participation Report
By Turd Ferguson | Monday, June 8, 2015 at 11:44 am
I like that title. Why call this the BPR when you can, instead, be more accurate and call it the CBPR…The Criminal Bank Participation Report.
Before we begin, the usual background:
The CFTC’s Bank Participation Report is issued monthly from a survey taken at the Comex close on the first Tuesday of every month. The report summarizes thecombined positions of the four largest U.S. banks (primarily JPM, MorganStanley, Citi, Goldman but occasionally others) and the twenty largest non-U.S. banks (Scotia, HSBC, DeutscheBank, UBS, Barclays and others).
These reports might be utter nonsense and complete falsifications, designed to mislead you and get you leaning the wrong way. Just last year, JPMorgan was fined by the CFTC for “repeatedly submitting inaccurate reports relating to the required reporting of positions”. See here:http://www.cftc.gov/PressRoom/PressReleases/pr6968-14
I will leave it up to you, dear reader, to assign or withhold legitimacy to/from the data. My job is simply to report to you on what the data shows…and, once again, it’s sickening.
As we’ve often reported, most recently with these three posts…
http://www.tfmetalsreport.com/blog/6520/how-they-did-it
http://www.tfmetalsreport.com/blog/6601/banks-run
http://www.tfmetalsreport.com/blog/6759/bank-participation-report-update
…the Bullion Bank fingerprints are now so obvious that it seems they hardly care if anyone notices anymore. The Banks apply heavy, naked shorts to any rally and they then use the price weakness that inevitably follows their capping to cover their tracks. And what has happened over the past four weeks? Just more of the same. Another “wash cycle” and full price suppression move by The Bullion Banks. Why are they so desperate to cap at these levels? Please go back and review the first link above entitled “How They Did It” for your explanation. For today, let’s just concentrate on this latest travesty and blatant price suppression/manipulation.
Recall, first, the price action over the past month. In case you’ve forgotten, below is a visual aid:
As you can see, for the CBPR period, price was almost completely unchanged. However, during the month, price actually spiked by nearly $40 or 3.5% to a high of $1232.80 on May 18. After being effectively capped near the 200-day moving average and $1225, it has been nearly straight down since.
We know from the Commitment of Traders Report, published by the criminally-complicit CFTC on May 22, that the “Gold Commercials” were active in capping that $40 rally. The report, linked here (http://news.goldseek.com/COT/1432323507.php) shows these “commercials” added a record 50,754 naked short contracts in just one week (between May 12 and May 19) in their effort to cap and contain price below $1225. That’s the paper equivalent of over 5MM ounces of gold or about 158 metric tonnes…more than the total holdings of Thailand and about 5% of total annual global mine supply.
Until last Friday, we didn’t know how much of this criminal manipulation could be laid at the feet of The Banks trading desks and how much could be assigned instead to their hedge funds and offshore shell accounts. Well, here you go. Back on May 5, and again with price at $1194, here’s how the CBPR looked:
5/5/15 GROSS LONG GROSS SHORT TOTAL NET
U.S. Banks 6,966 29,851 -22,885
non-U.S. Banks 29,748 63,682 -33,934
TOTAL -56,819
And now, one month later, with price having round-tripped $40 and closing back at $1194, here’s your current CBPR:
6/2/15 GROSS LONG GROSS SHORT TOTAL NET
U.S. Banks 8,246 45,090 -36,844
non-U.S. Banks 30,194 78,300 -48,106
TOTAL-84,950
So, there you have it. While price was rallying, The Bullion Banks were desperately issuing and selling naked paper gold contracts in their attempts to cap and contain price. Even after undoubtedly using the price weakness on the way back down to cover some of these ill begotten contracts, The Banks still show an increase in their NET SHORT position of over 28,000 contracts…ALL WHILE PRICE RALLIED, WAS CAPPED, AND THEn CLOSED UNCHANGED.
WHAT FURTHER PROOF DO YOU NEED TO SEE THE BANKS’ NEFARIOUS INTENT?
Of course, the standard Cartel Shills and Apologists will argue that these altruistic Banks are just performing a public service. They’re “making an orderly market” and simply “providing needed services” for miners wishing to “hedge and forward sell future production”.
Eh bien, excusez-moi pour mon mauvais français. Ce sont des conneries complète.
At $1200, which miners suddenly decided to sell forward 160 metric tonnes of future production at $1200/ounce? And don’t give me this garbage about “making a market”. No other “markets” in the world operate this way…where extra paper supply is created from thin air whenever paper demand materializes.
But that’s what we have to deal with as long as paper gold and silver trading is allowed to set “price”. The Criminal Bullion Banks, aided by the criminally-complicit CFTC and supported by the central banks and BIS, will continue to actively and severely manage, manipulate and suppress precious metal prices until the simply no longer can. When and how this moment arrives remains a mystery. Perhaps a renewed financial crisis. Maybe the Chinese announce a new gold-backed trading system. Maybe someday, the leveraged and rehypothecated London system simply collapses.
I don’t know what it will take to finally crush and destroy this current, fraudulent system. I just know that the day is coming…and not a moment too soon.
TF
end
(courtesy John Embry/Kingworldnews/Eric King)
Embry on gold’s threat to bonds
At King World News, Sprott Asset Management’s John Embry says central banks and their bullion bank agents are ruthlessly suppressing monetary metals prices to support the bond market, which needs enormous help as interest rates are essentially zero. Embry’s comments are excerpted at the KWN blog here:
http://kingworldnews.com/the-devastating-final-climax-on-the-road-to-col…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
(courtesy Jessie’s Amercaine Cafe)
The global monetary phenomenon that almost no one is seriously discussing
Submitted by cpowell on Mon, 2015-06-08 20:52. Section: Daily Dispatches
4:51p ET Monday, June 8, 2015
Dear Friend of GATA and Gold:
In “The Global Monetary Phenomenon That Almost No One Is Seriously Discussing,” Jesse’s Café Americain” today examines the conversion of central banks from net sellers to net buyers as part of a “currency war” that is a little bigger than the one reported in the mainstream financial news media. That “currency war,” Jesse writes, is not merely competitive devaluation but rather a challenge to the U.S. dollar as the world reserve currency. Jesse’s analysis is posted here:
http://jessescrossroadscafe.blogspot.com/2015/06/the-global-monetary-phe…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
James Turk discusses how derivatives will bring down the financial system:
(James Turk/Kingworldnews/Eric King)
Derivatives crash threatens financial system, Turk tells KWN
Submitted by cpowell on Mon, 2015-06-08 23:33. Section: Daily Dispatches
7:32p ET Monday, July 8, 2015
Dear Friend of GATA and Gold:
Losses from the looming insolvency of Greece are being socialized, placed on the backs of taxpayers, GoldMoney founder and GATA consultant James Turk tells King World News tonight, adding that as interest-rate derivatives start losing value, crushing the banks that hold them, another world financial crisis nears. An excerpt from the interview is posted at the KWN blog here:
http://kingworldnews.com/the-coming-financial-shockwave-and-one-of-the-m…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
And now overnight trading in stocks and currency in Europe and Asia
1 Chinese yuan vs USA dollar/yuan weakens to 6.2051/Shanghai bourse red and Hang Sang: red
2 Nikkei closed down by 360.89 points or 1.76%
3. Europe stocks all in the red/USA dollar index up to 95.31/Euro falls to 1.12.56
3b Japan 10 year bond yield: falls to .46% !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 124.03/very ominous to see the Japanese bond yield rise so fast!!
3c Nikkei still just above 20,000
3d USA/Yen rate now well above the 124 barrier this morning
3e WTI 59.14 and Brent: 64.06
3f Gold up/Yen up
3gJapan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa.
Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.
3h Oil up for WTI and up for Brent this morning
3i European bond buying continues to push yields lower on all fronts in the EMU. German 10 yr bund rises to 87 basis points. German bunds in negative yields from 3 years out.
Except Greece which sees its 2 year rate rise to 25.16%/Greek stocks up 1.78%/ still expect continual bank runs on Greek banks /Greek default inevitable/
3j Greek 10 year bond yield rises to: 11.48%
3k Gold at 1181.00 dollars/silver $16.12
3l USA vs Russian rouble; (Russian rouble up 1/4 in roubles/dollar in value) 55.88,
3m oil into the 59 dollar handle for WTI and 64 handle for Brent/Saudi Arabia increases production to drive out competition.
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/China may be forced to do QE!!
30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9276 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0457 well above the floor set by the Swiss Finance Minister.
3p Britain’s serious fraud squad investigating the Bank of England/
3r the 3 year German bund remains in negative territory with the 10 year moving further to negativity at +.87/
3s Six weeks ago, the ECB increased the ELA to Greece by another large 2.0 billion euros.Four weeks ago, they raised it another 1.1 billion and then two weeks ago they raised it another tiny 200 million euros to a maximum of 80.2 billion euros. Last week, the limit was not raised. Yesterday, the ECB raised the ELA by 1/2 billion euros to 80.7 billion euros.The ELA is used to replace depositors fleeing the Greek banking system. The bank runs are increasing exponentially. The ECB is contemplating cutting off the ELA which would be a death sentence to Greece and they are as well considering a 50% haircut to all Greek sovereign collateral which will totally wipe out the entire Gr. banking and financial sector.
3t Greece paid the 700 million plus payment to the IMF last Wednesday but with IMF reserve funds. The funds are deferred to June 30.
3 u. If the ECB cuts off Greece’s ELA they would have very little money left to function. So far, they have decided not to cut the ELA
4. USA 10 year treasury bond at 2.37% early this morning. Thirty year rate just above 3% at 3.11% / yield curve flatten/foreshadowing recession.
5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.
(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)
European Stocks Suffer Longest Losing Stretch In 2015; US Futures Down
After a quiet Asian session, where not even the latest Chinese CPI miss was enough to push the SHCOMP to new multi-year highs, all eyes were on Europe where a few hours ago the European Commission announced it had received not one but two new proposals from Greece according to EU Commissioner for Economic Affairs Pierre Moscovici, with the Greek government adding that it considers proposals submitted last week as remain basis for political negotiations. According to Bloomberg, the freshly submitted documents contains alternative proposals to close differences with creditors on fiscal gap with; proposals to create a debt viable sustainability plan for country. What they do not contain is an agreement to engage in pension cuts as the Troika demands so this is most likely another dead end path.
“Diverse proposals are being circulated including new suggestions which were received earlier this morning,” spokesman Margaritis Schinas said, noting that Economics Commissioner Pierre Moscovici had met Greek delegates in Brussels on Monday. “The three institutions are currently assessing these suggestions with diligence and care,” Schinas added.
However, barely had Europe received the Greek addenda when it nein’ed all over them, with BBG citing an international official directly involved in talks saying that the “Greek government’s revised proposal to unlock bailout funds is vague rehash of earlier plans, not considered credible.”
Also overnight, as reported previously, the headquarters of Deutsche Bank was raided earlier this morning and while no details were initially available, Reuters said that investigators were “looking for evidence related to client transactions” with a DB spokesperson saying the raid was in relation to “security deals made by clients.” It was initially unclear what deals and what clients, but the raid may explain the sudden departure of DB’s co-CEOs over the weekend.
In any case, the excitement from all the events did not stay well with European stocks or risk, and as of this moment the EuroStoxx 600 is down again, on pace for its first 6 day losing streak in 2015, down about 5%.
A closer look at Asian equities shows a drop following a negative Wall Street close, which saw the DJIA shed its YTD gains and S&P 500 close below its 100 DMA for the first time in a month. Chinese bourses led the slump weighed on by soft Chinese inflation data, helping cap recent gains across the Shanghai Comp (-0.4 %) and Hang Seng (-1.2%); Y/Y 1.2% vs. Exp. 1.3% (Prev. 1.5%). The ASX (0.5%) and Nikkei 225 (-0.7%) remain in the red, the latter weighed on by a strong JPY.
European equities are broadly weaker following on from the negative closes seen in Asia and the US in what has been a subdued session so far. The technology sector is the notable laggard in Europe in the wake of a downbeat note from JP Morgan coupled with the selloff seen in the NASDAQ yesterday. From a stocks specific perspective, HSBC (-0.8%) stole the headlines after announcing that they were to embark on EUR 5bln cost cutting measure and will slash over 25K jobs globally. However, shares in HSBC shares trade downside was limited as their cost cutting measures may cost the bank GBP 4.5bln. The DAX index has continued to slide following an earlier technical break below 11,000, with concerns over Greece weighing on the index.
Bunds have remained unnerved and trade flat following the recent developments in Greece after the EU Commission confirmed that they have received an updated version of the troubled nation’s reforms. Thereafter, an international official later stated that Greece’s revised proposal was not sufficient and is merely a vague rehash of the previous proposal.
In FX markets, GBP continues to trade weaker against the EUR with cross-buying in EUR/GBP supporting the EUR despite continued concerns over Greece. Meanwhile, the USD-index (+0.02%) has remained flat with a lack of fundamental catalysts dictating price action. AUD was unable to hold on to some of its earlier gains after AU business confidence surged to a 9-month high and slipped into negative territory. This was amid soft Chinese inflation data which saw consumer prices rise at their slowest pace in 5-months.
Tomorrows DoE crude inventories are expected to post its sixth consecutive drawdown which is supporting WTI and Brent crude as they inch higher, while precious metals markets also remain firmer following the global selloff in equities. Separately, iron ore continued its recent rally following the decline seen in port inventories and as Chinese steel mills undergo seasonal maintenance.
In summary: European shares fall for sixth day with the tech and financial services sectors underperforming and real estate, media outperforming. HSBC to Cut as Many as 50,000 Jobs in Gulliver Assault on Costs. Greece Said to Submit Revised Budget Plan in Bid for Funding. China Said to Weigh Margin Finance Rule Change Amid Stock Boom. The German and Spanish markets are the worst-performing larger bourses, the U.K. the best. The euro is weaker against the dollar. Japanese 10yr bond yields fall; Greek yields increase. Commodities gain, with corn , wheat underperforming and Brent crude outperforming. U.S. wholesale inventories, small business optimism, JOLT job openings due later.
Market Wrap
S&P 500 futures down 0.4% to 2070.5
Stoxx 600 down 1.2% to 380.7
US 10Yr yield down 2bps to 2.37%
German 10Yr yield up 1bps to 0.89%
MSCI Asia Pacific down 0.8% to 146.2
Gold spot up 0.6% to $1180.7/oz
All 19 Stoxx 600 sectors drop; real estate, media outperform, tech, financial services underperform
Asian stocks fall with the Kospi outperforming and the Nikkei underperforming; MSCI Asia Pacific down 0.8% to 146.2
Nikkei 225 down 1.8%, Hang Seng down 1.2%, Kospi down 0.1%, Shanghai Composite down 0.4%, ASX down 0.5%, Sensex down 0.2%
Bradesco Said to Be Most Likely Buyer of HSBC’s Brazil Unit
Newmont to Buy AngloGold Mine in Colorado for $820m
Elliott Seeks Injunction to Stop Merger Plans by Samsung’s Lees
Euro down 0.11% to $1.1279
Dollar Index down 0.03% to 95.27
Italian 10Yr yield down 2bps to 2.24%
Spanish 10Yr yield down 2bps to 2.23%
French 10Yr yield little changed at 1.21%
S&P GSCI Index up 0.9% to 436.1
Brent Futures up 1.4% to $63.6/bbl, WTI Futures up 1.2% to $58.8/bbl
LME 3m Copper up 0.6% to $5983.5/MT
LME 3m Nickel up 0.9% to $13565/MT
Wheat futures down 0.1% to 527.5 USd/bu
Bulletin headline summary from Bloomberg and RanSquawk
European equities (Eurostoxx50 -0.7%) are broadly weaker following on from the negative closes seen in Asia and the US in a session shy of market moving fundamental news.
The stalemate between Greek and its creditors continues after reports that the EU are unsatisfied with Greece’s latest reform submission.
Looking ahead, today provides a rather light economic calendar with US Wholesale Inventories, API Crude Inventories and possible comments from ECB’s Makuch (Neutral) and ECB’s Lautenschlaeger (Hawk)
Treasuries gain for second day as global equities plunge; auctions begin today with $24b 3Y notes, WI yield 1.095%, highest since March, vs. 1.00% in May; drew 0.865% in April.
The Greek government submitted a three-page budget proposal to its creditors in Brussels in a bid to unlock bailout funds, two international officials with direct knowledge of the discussions said
China’s consumer prices rose at a slower pace in May and factory-gate deflation extended a record stretch of declines, underscoring tepid demand at home and abroad
China’s securities regulator is considering a change to its margin finance rules in a move that could quell volatility should the country’s world-beating stock-market rally falter
China stock exchanges have created $6.5t of value in just 12 months, surpassing the headiest days of the U.S. Internet bubble
Euro-area GDP rose 0.4% in in 1Q, the three months through March after expanding a revised 0.4 percent in the previous three months, confirming May 13 estimate
David Cameron said comments he’d made suggesting U.K. government ministers would have to support continued EU membership were “misinterpreted,” after protests from lawmakers in his Conservative Party
HSBC Holdings Plc will eliminate as many as 50,000 jobs through 2017 by shrinking its global reach as CEO Stuart Gulliver seeks to cut annual costs by about $5b to restore profit growth
Deutsche Bank AG said its offices in Frankfurt were searched on Tuesday as part of an investigation into securities transactions by clients; bank employees are not accused of wrongdoing, a spokesman said
Sovereign 10Y bond yields mostly lower. Asian and European stocks slide, U.S. equity-index futures fall. Crude oil, copper and unchanged, gold higher
DB’s Jim Reid concludes the overnight event summary
Headlines continue to fly around with regards to Greece and it was amusing to read in the Economist that the crisis has now gone on longer than 10% of marriages. Although to be honest that sounds too low. It’ll be interesting to see where that number is by