Posted at 10:21 AM (CST) by & filed under General Editorial, In The News.

Bill Holter’s Commentary

Yes, free and unfettered markets…!

BOJ To Start Lending ETF Shares To Prevent Market Freeze
October 29, 2019

While most central banks are contemplating how to gently break it to the public that since they are out of ammo with interest rates at all time low, and $15 trillion in global sovereign debt is now yielding negative – a financial abortion which suggests the value of money is negative – the only hope markets have to avoid collapse is for central banks to start buying stocks in the open market, the BOJ has no such problems: after all the Japanese central bank (alongside its Swiss peer) has for years been quite open that it purchases stocks and ETFs directly. Unfortunately, in its efforts to stabilize the market, the BOJ has been purchasing a little too many ETFs and it now owns far too much.

Last May, speaking to Japanese parliamentarians, BOJ Governor Haruhiko Kuroda noted that the central bank now owns nealry 80% of the country’s stock of ETFs, the result of a program begun in 2010 and ramped up in 2013.

 

 

 

 

 

 

 

 

 

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J. Johnson’s Latest – This Is Silver’s Time Of Intrigue!
October 30, 2019

Great and Wonderful Wednesday Morning Folks,   

      Gold is trading higher under the US Dollar with the December contract at $1,495.20, up $4.50 with the high close by at $1,496.20 and a low at $1,489.10. Silver is higher as well with the December contract at $17.90, up 6.9 cents with the high at $17.92 and a low at $17.75. The US Dollar, which has had 100’s of billions of newly added print created in order to keep up with the bills it can’t pay, is now trading at 97.445, down 2.4 points with the high at 97.51 and a low at 97.36. All of this slow activity happened before 5am pst, the Comex open, the London close, and the very strong possibility of another 1/4% interest rate cut here in the USA.    

      We have nothing but positive trading in the emerging markets this morning with the Venezuelan Bolivar now giving Gold a price of 14,933.31 offering those that hold a 68.91 Bolivar jump in price with Silver trading at 178.776 giving the holders a 20.97 pop in Bolivar value. In Argentina, the Peso has Gold priced at 88,812.80 giving the holder a 377.07 A-Peso increase with Silver at 1,062.96 showing an additional 11.83 in A-Peso value. The Turkish Lira now has Gold priced at 8,557.73, it too showing an increase of 24.169 T-Lira with Silver at 102.455 offering a 1.014 uptick in T-Lira value.    

      Yesterday was the last trading day for the October Silver deliveries with the last count at 60. Today is simply a time out for Silver deliveries with tomorrow being the First Notice Day for the cereal month of November. A Cereal Month is a nice way to say “hardly any purchase” month. The November Open interest in Silver is now at 293 contracts and with a Volume of 1 up on the board with the price of $17.79 as a purchase and sell. FND is when all holders of long positions must have 100% of the margin in order to play the game. The sellers are supposed to have receipts for physical, with the spread traders owning all the background noise inside the hidden data of Comex (aka the moves without a price). 293 Contracts makes the delivery total 1,465,000 ounces of Silver (5,000 ounces per contract) possibly standing for delivery.   

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Posted at 4:52 PM (CST) by & filed under In The News.

J. Johnson’s Latest – Will Silver’s Resolute Buyer Step In Again?
October 29, 2019


Great and Wonderful Tuesday Morning Folks,    

      Gold is continuing it’s forced price adjustment, even though the US Dollar’s digital printing can’t be hidden anymore with December’s price at $1,488.30, down $7.60 and right beside the usual London low at $1,486.50 with the high at $1,497.10. Silver has no choice but to follow along with its trade at $17.69, down 18.6 cents with the low at $17.675 and the high at $17.875. The over printed US Dollar is still the reason why our precious metals have yet to produce any new highs (for now) with its value pegged at 97.60, up 7.6 points after reaching up to 97.70 with the low close by at 97.51. All this was done before 5 am pst, the start of the FOMC 2-day meeting, the Comex open, and the London close.    

      Apparently, all international banker eyes are on the FOMC meetings (and subsequent ¼% rate cut) with Gold, under the Venezuelan Bolivar, now trading at 14,864.40 proving a loss of 179.77 Bolivars with Silver at 176.679 Bolivar down 3.446 in the overnight. In Argentina, Gold is now trading at 88,435.73 Pesos losing 1,818.01 with Silver at 1,051.13 taking out 29.55 in A-Peso value. The Turkish Lira’s value for Gold now stands at 8,533.56 Lira’s showing a loss of 101.35 with Silver now at 101.441 Lira’s showing a reduction of 1.945 in value.    

      Yesterday Silver’s trade was a disappointment price wise, but the amazing point was the Volume in trade that happened before the Comex close. We reported the Open Interest in the October Silver Delivery system to be at 20 and with a Volume of 5 up on the board with no prices. After our report, we got a trading range between $17.89 and $17.77 and with a Volume of 60 posted up on the board. This is three times the amount of Open Interest and before the Options expired. As of right now, the standing demanding Open Interest in the October Silver Delivery system is at 61, and with no Volume posted so far. Today at 10:25 am pst, the October Silver Delivery process will close then we start Novembers. As a side note, I do not recall this type of activity happening within a cereal month’s trading period. Will our Resolute Buyer step in again today? Stay Tooned!    

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Bill Holter’s Commentary

This is just more packing for the powder keg. Can you imagine what any meeting like this will look like after the markets collapse?  So you think the country is unrecognizable now…?

Where Hate Has A Home: Oak Park, Illinois – Videos
October 27, 2019

Despite national embarrassment from an initial incident earlier this month, many Oak Parkers are doubling down. They seem intent on making their town a national showcase for the manic intolerance of diversity of opinion into which identity politics have devolved.

It started at an early October Village Board meeting debating a statement on inclusion, particularly the term “system of oppression,” which some members thought might be interpreted as an unfair smear of the town’s police department.

That’s when Trustee Susan Buchanan let loose, telling the white males on the board to “shut up,” and much more. If you haven’t seen the video, watch it. Keep in mind that one of the targets of Buchanan’s comments was the mayor, Anan Abu-Taleb. He’s a Palestinian immigrant born in the Gaza Strip as the second oldest of 13 children and came to the Chicago area at the age of 18 to attend college. Among her comments:

You shouldn’t have an opinion on that. That is the point. Why do you have an opinion on equity? You’ve never experienced oppression so shut up…. Just stop… You are not oppressed…. Enough… You stop it! You are a white male. Your skin is light enough. Stop it.”

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Posted at 9:51 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Our Silver Options Watch is One of a Kind!
October 28, 2019

Great and Wonderful Monday Morning Folks,    

      Gold is higher in the early morning with the trade at $1,506.30, up $1.00 after reaching up to $1,510.80 before the controlling mechanism was called in with the low right at the price, $1,504.70. Silver is leading, for now, with its trade at $18.035, up 10.4 cents after reaching up to $18.145 with the low at $18.005. The Dollar is down 8.4 points after a few weeks of massive print with its trade at 97.515, inside a 22-point trading range between 97.665 and 97.445. All of this, of course happened while we slept, before 5 am pst, the Comex open, and the London close.    

      The Venezuela Bolivar is now pricing Gold at 15,044.17, losing 46.94 in Bolivar value with Silver now at 180.125 Bolivar, showing it too lost 1.148 in value. In Argentina, where they elected a new president, the Peso now has Gold priced at 90,253.74 Peso’s, proving a gain of 319.11 with Silver at 1,080.68, proving a slight gain of 0.37 in A-Peso value. The Turkish Lira now has Gold priced at 8,634.91 losing 75.81 in T-Lira value with Silver now gauged at 103.386 proving a loss of 1.244 in T-Lira value.     

      October Silver Deliveries ends tomorrow with the total count waiting for receipts standing at 20 and with a Volume of 5 up on the board with no trading range to offer so far this morning. I do see an offer out there to sell 3 contracts at $17.99 as the buyer waits. The proof that there is no manipulation (cough), is all in the Open Interest with the total count now at 223,220 Overnighters, proving an additional 4,690 more short contracts had to be added in order to keep Silver from exploding any higher than it did on Friday with that Friday high to beat, at $18.35. We wonder if it has anything to do with the November Options in Silver that is due to expire today at the Comex Close? As a reminder of the situation we’ve been watching over the past 3 years, the Option Board has not seen so much Open Interest as in the last ½ of this year’s tallies. Even going out to 2024, there is no accumulation in Silver options like we’re in right now, why?    

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Posted at 9:49 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

Boiling cauldron of Fiat spreading everywhere.

JB

We Now Have Mass Public Unrest In France, Spain, Algeria, Iraq, Lebanon, Egypt, Hong Kong, Venezuela, Chile, Ecuador And Bolivia
October 28, 2019

Submitted by Michael Every of Rabobank

Ages and Ages of Rage

Monday morning and we here we go again for another “dramatic week”. There are going to be monthly PMIs to look at in particular: will we see any further deterioration, or will growth start to pick up as an early Christmas present? And there are of course rate meetings for the Fed, and the BOJ, and the BOC: the former will cut, with the real issue being if they will signal more soon or not given they are already deep in Repo Madness; and will the giant BOJ wake up from slumber like a giant Kaiju and start throwing markets into turmoil again? 

Plus there is the Brexit circus. Will the EU grant the UK an extension until end-January 2020, or a more flexible date, or will France veto that and insist on a very short extension? Almost certainly they will insist that the newly reopened Withdrawal Agreement is this time firmly shut – so if the British Parliament then decides to merrily reopen it from its end and unilaterally start ramming amendments into it, it will not be doing so with EU approval. As such, and just as pertinently, will PM BoJo get his December election or not? The greater likelihood is not, as Labour appears to be desperate for an election – just not now – although the Lib Dems may be prepared to allow one given they see this as a way to prevent any further movement towards Brexit in the short term. (Though what do they think the election campaign will be about? The price of cheese?) Note that the latest opinion poll for the Observer has the Tories on 40% (+3 on the week), Labour unchanged on 24%, and the Lib Dems on 15% (-1), with the Brexit Party on 10% (-2).

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Posted at 1:20 PM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

A listener, Kevin, has sent this in for us with hopes that we can talk about this next Saturday.

Dave

Wag The Dog – The New COMEX And SGE Gold Contracts
October 25, 2019

Last week, in a move which went largely unnoticed, the US and Chinese gold markets moved one step closer to lockstep, when the CME group, home of the gold derivatives market and the world’s largest physical gold exchange, simultaneously and jointly launched a series of gold futures products in what they pitched as cross-market cooperation.

On the US side, CME has launched two cash-settled ‘Shanghai Gold futures‘, based on the SGE’s daily Shanghai Gold Benchmark Price, one denominated in US dollars and the other denominated in offshore Chinese renminbi (CNH). Both of these contracts are listed on the COMEX. On the Chinese side, the SGE has launched a T + N (margin) 100 gram contract denominated in renmimbi (RMB) that’s based on the CME’s COMEX Gold Futures Asia Spot Price. The SGE calls this the NYAuTN contract.

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Jim/Bill,

Who could have seen this coming?

Dave

Meet WeWork’s Epic Cash Black Hole: 36% Of Shanghai Locations Are Vacant
October 26, 2019

The whole WeWork scheme is unraveling in realtime, and a new Financial Times (FT) report shows the epicenter of the implosion is in China.

The Chinese subsidiary of WeWork, valued at $5 billion in 2018, could be headed to zero in the quarters ahead. Why?

Well, sources have told FT that WeWork locations in China have been severely underperforming, to the extent that occupancy levels are absolutely disturbing.

    “WeWork locations in Shanghai, where it has installed 43,600 desks, had a vacancy rate of 35.7% in October. In Shenzhen, where the company has 8,000 desks, 65.3% were vacant, while 22.1% of the group’s 8,900 desks in Hong Kong sat unfilled. The company was also expanding in central China, with multiple offices in Xi’an. There, it suffered a vacancy rate of 78.5%.”

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Jim/Bill,

As Mr Griffin pointed out, the military is a gift that keeps on giving.

Before joining the Department of Defense, Esper was vice president of government relations at Raytheon, a major U.S. defense contractor

Dave

As Secret Pentagon Spending Rises, Defense Firms Cash In
October 23, 2019

. . .

The boost in secret contracts has also shown up in big defense contractors’ recent annual reports. For example, Raytheon’s 2018 annual report touted “record classified bookings of nearly $7 billion” — up 46 percent in just a year and representing 19 percent of the company’s total revenues.

“These increases were largely driven by the need of our domestic customers to address advanced peer threats as outlined in both the National Defense Strategy and the Missile Defense Review,” the company said at the time. Raytheon remains well-aligned to both of these documents, which emphasize capabilities such as high-energy lasers, high-power microwaves, space, hypersonics and counter-hypersonics, next-generation sensors and cybersecurity.”

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Posted at 1:08 PM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Economist and money manager Michael Pento says the recent Federal Reserve about face in policy with cutting rates and new QE (money printing) means only one thing. Pento explains, “So, the Fed changed their mind, panicked, the Fed panicked. They not only stopped raising rates, they now cut rates twice, and they are going to cut rates again at the end of this month. They are also fully back in a massive QE. They have a $130 billion revolving repo facility shoving $130 billion every night, rolling it over, trying to re-liquefy the banking system and back into QE–$60 billion per month. At the peak, it was $85 billion. So, they are almost back to the peak of QE (during the Great Recession). They did not scale in, the Fed went to $60 billion right away.”

Why the sudden burst of money printing when we are being told the economy is fine? Pento says the Fed is panicking to stop a “depression.” That’s right, a depression. Pento contends, “I am on record saying given the extent of the asset bubbles that we have today . . . household debt is at a record high. Corporate debt is at a record high, up 60%. The national debt was $9 trillion prior to the Great Recession and is now $23 trillion. Total non-financial debt is now $53 trillion, and it was $33 trillion prior to the Great Recession. . . . Given all these imbalances and deformations, the Fed knows we are not going to have some mild recession. If they don’t re-liquefy the money markets, the same thing that happened back in 2008 would happen today, only the stock market was only a 100% of GDP and today it is 150% or one and a half times the economy. So, the plunge in the stock market would be huge and from a much higher level. Back in the Great Recession, unemployment claims spiked. We had millions of people laid off, and the same thing would happen today only it would be much worse.”

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Posted at 10:32 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

As Mr Griffin said, the military industrial complex just keeps on spending no matter what party is in office.

Dave

Pentagon Gives $10-Bn Deal To Microsoft After Funny Business
October 26, 2019

. . .

“At the president’s urging, Congress increased the military’s already-bloated budget, and Trump has sped up the process for approving arms deals,” reported Rolling Stone. The magazine quoted Raytheon CEO Thomas Kennedy’s assessment last year that “It’s the best time that we’ve ever seen for the defense industry.”

So why was Esper – determined, as he had shown, not to give up the Raytheon trough while he’s in government service – suddenly so sensitive on Wednesday about the appearance of a lesser conflict that others might have to squint to see.

After all, the company Esper’s son Luke works for is IBM, which was beaten out early in the JEDI competition along with Oracle.

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Posted at 9:27 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Nothing Says Calm Like The Overall Open Interest In Silver
October 25, 2019

Great and Wonderful Friday Morning Folks,   

      Gold is trading higher with the December contract at $1,511.00 up $6.30 and close to the high at $1,512.70 with the low at $1,503.40. Silver is the early morning leader with its Christmas price at $18.15, up 34.6 cents after reaching $18.185 with the low at $17.80. Just to show everyone how everything is “just fine” out there on the side of the printers, the US Dollar is trading higher as well with its value pegged at 97.445, up 4 points with the high close by at 97.49 with the low at 97.34. All of this occurred while we slept, before 5 am pst, the London close, and before Comex takes the prices sharply higher.   

      Our emerging markets currency watch sure turned the corner today with Venezuela’s Bolivar pricing Gold at 15,091.11 giving those that hold a 176.78 Bolivar jump in value with Silver’s price increase showing a 6.092 Bolivar gain with the price at 181.273 Bolivar. In Argentina, the Peso’s price for Gold is at 89,934.63 proving a 1,966.81 A-Peso gain with Silver now at 1,080.31 giving those that hold a 47.10 A-Peso gain (do the math here with a 5,000-ounce contract). In Turkey, Gold is now trading at 8,710.72, proving a gain of 83.65 in T-Lira value with Silver at 104.630 T-Lira proving a gain of 3.257 in T-Lira value.    

      What a delivery day yesterday was, even with no trading range or price given, the October Silver Deliveries demand count dropped 85 contracts proving receipts were given out, with no idea if they were sent to London or where delivered here. So far this morning there is still no trading range and no sellers taking the higher bids that are offered. My guess is these sellers are waiting for much cheaper prices before they dump their holdings. Nothing says calm like the Overall Open Interest in Silver as the total count increased another 3,447 contracts proving yesterday’s little rally would have been far more substantial had the centrals been restricted like they should be with the total OI count now at 218,580 Overnighters.    

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