In The News Today

Posted at 10:25 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Please watch Doc Dave Janda, General Michael Flynn knows where all the bodies are buried…I don’t believe this gets swept under the rug!

J. Johnson’s Latest – FOMC Starts Today Putting To Sleep The Precious Metals
September 17, 2019

Great and Wonderful Tuesday Morning Folks,   

      It’s the start of the FOMC 2 day gala, with the precious metals being are allowed to trade, but not higher with Gold at $1,508.40, down $3.10 after dipping down to $1,500.90 before recovering with the high close by at $1,509.20. Silver is following along with its trade at $17.92, down 10.6 cents (after testing support response) with the bottom at $17.82 and a high to beat at $17.98 before we head towards yesterday’s Comex closing price at $18.025. The Currency rollover is mostly complete (with the Canadian Dollar rolling out today) placing the December US Dollar value at 98.150, down 2.5 points and close to the low at 98.12 with the high at 98.290. All of this flat activity happened before 5 am pst, the Comex open, and the London close.   

      Our Emerging Markets Currency watch is showing Silver strengthening while Gold is still correcting. In Venezuela, the Bolivar is now pricing Gold at 15,065.15 losing another 32.99 in Bolivar value with Silver at 178.976 virtually unchanged from yesterday’s price. In Argentina, Gold is valued at 84,886.23 Peso’s, dropping 147.21 with Silvers trade at 1,008.34 showing a gain of 3.93 Peso’s. In Turkey, Gold is priced at 8,628.83 showing a loss of 16.21 Lira with Silver at 102.494 showing a 0.015 T-Lira gain.    

      September’s Silver Delivery demands now stands at 315 fully paid for contracts waiting for receipts proving a 74 count drop that were either delivered here or in London and with no trading range or Volume to report so far. Silver’s Overall Open Interest remains elevated but shows a good reduction on a strong rally day offering up the suggestion that shorts took out some of their upside risk potential. The Overall Open Interest now stands at 214,290 Overnighters proving a reduction of 2,762 from yesterday’s early morning count.


Bill Holter’s Commentary

RICO? Criminal enterprise? Now how is the Fed going to carry out their activities in the gold market? A safe bet no one else will accept the “honor” of being their beard if it comes with jail time…Please notice the absence of Blythe Masters? Will she be a DOJ star witness? As I wrote yesterday, yes “times are changing”!

DOJ Accuses JPMorgan’s Precious Metals Trading Desk Of Being A Criminal Enterprise
September 17, 2019

Who would have thought that JPMorgan’s precious metals trading desk is the functional equivalent of the mafia, and that its one-time leader, Blythe Masters, was the mafia’s don? 

Well, almost everyone who didn’t mind being designated a conspiracy theorist for years. And now comes vindication, because this has just been confirmed by the DOJ, which accused the PM trading desks at JPMorgan of being deeply involved in what prosecutors described as a “massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants.”

In an indictment unsealed on Monday morning, the DoJ charged Michael Nowak, a JPMorgan veteran and former head of its precious metals trading desk and Gregg Smith, another trader on JPM’s metals desk, in the probe. (Blythe Masters was somehow omitted).

“Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period — that it is precisely the kind of conduct that the RICO statute is meant to punish,” Assistant Attorney General Brian Benczkowski told reporters.


Bill Holter’s Commentary

As we’ve told you for several years…it will be a credit event!

“Nobody Knows What’s Going On”: Repo Market Freezes As Overnight Rate Hits All Time High Of 10%
September 17, 2019

Back in the summer of 2013, China’s banking system was on the verge of collapse when its overnight repo rates briefly soared to the mid-20% range, prompting the central bank to take emergency intervention to avoid a funding freeze.

As of this morning, the US is halfway there.

After we reported yesterday that “something snapped” as chaos hit the report market, and the overnight repo rate exploded as high as 7% for a variety of reasons including:

  • elevated UST supply,
  • bloated dealer balance sheets and year-end regulatory constraints
  • a banking system near reserve scarcity,
  • investors selling bonds back to dealers, and
  • banks and money-market funds to make their quarterly tax payment


Bill Holter’s Commentary

…so they are saying the manipulation of precious metals has been going on since before 2008?  Isn’t this what us tin foil hat whackos have said all along?  And didn’t the CFTC do an investigation where they found “nothing actionable”?  If DOJ truly wants to cook some crooked goose, maybe they should pull the “time and sales” reports on the days where 10 or 20 tons of gold hit the markets in 30 second time frames …ONLY THEN will we know who was behind the blatant naked short selling that suppressed prices.  “Spoofing” is for pikers and unknowing pawns will do prison time while those who authorized the naked sales of as much as 10% of global production in 5 minutes (MANY TIMES) will walk away scott free.  The problem of course is if you go after those at the top …they will likely squeal on those in government who “suggested” the strategy in the first place!

JP Morgan Blames Bear Stearns For ‘Criminal Enterprise’ At Precious Metals Trading Desk
September 17, 2019

Now that prosecutors have blamed what they have described as a criminal organization operating inside JP Morgan, it appears the largest bank in the US by assets is resorting to an old strategy for sloughing off accusations of corporate fraud: Blaming it all on an acquisition.

According to Bloomberg, two traders who joined JPM’s precious metals trading desk after the takeover of Bear Stearns helped introduce the illegal manipulation strategy known as ‘spoofing’ to their peers on the desk, including the bank’s now-former head of the bank’s precious metals trading desk, Michael Nowak, who was one of three employees charged with participating in an organized fraud yesterday. Though prosecutors allege that some of the desk’s employees were already engaged in ‘deceptive practices’.