Posted at 9:41 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

The Bank of Japan, the Swiss National bank, the ECB, and now the Fed…what could possibly go wrong?

Gundlach: Fed’s Corporate Bond Buying Program Is Illegal; Fed Says Program Isn’t Operational

April 28, 2020
“The Fed has, effectively, become a hedge fund in drag as a central bank.”

Occupy Wall Street Protesters Outside the New York Federal Reserve, September 17, 2012. The chant was: “Banks got bailed out, we got sold out.”

When the Fed published its weekly H.4.1 data last Thursday, there was no mention of its two, highly controversial, corporate bond buying programs: the Primary Market Corporate Credit Facility (PMCCF) and the Secondary Market Corporate Credit Facility (SMCCF). We sent an email to the New York Fed to find out if the two programs are operational and if they will be consolidated on the Fed’s balance sheet. A spokesman for the New York Fed replied that “the PMCCF and SMCCF are not yet operational. And, as we note on the websites for each, additional information will be published before the facilities are launched.”

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Bill Holter’s Commentary

“Scotia was for years the world’s biggest lender to the physical precious metals industry, with a history stretching to the founding in 1684 of London gold dealer Mocatta Bullion, which it bought in 1997”.

Yes, the world’s biggest LENDER…thanks so much and good riddance!

Scotiabank To Close Its Metals Business – Sources
April 28, 2020

LONDON (Reuters) – Bank of Nova Scotia (Scotiabank) (BNS.TO) told staff on Tuesday it would close its metals business, drawing the curtain on one of the most venerable names in precious metals trading, two sources familiar with the matter told Reuters.

Scotia was for years the world’s biggest lender to the physical precious metals industry, with a history stretching to the founding in 1684 of London gold dealer Mocatta Bullion, which it bought in 1997.

Once a global player with more than 100 staff in offices from New York and London to India and Hong Kong, the bank sharply downsized the business in 2018 after a strategic review and an unsuccessful attempt to find a buyer.

But it remains one of the five banks that settle gold trades and one of 12 market makers that provide liquidity in the London market. It is also a participant in daily auctions that set a globally used gold benchmark price.

“Scotia had a global call with all its metals staff and said it was shutting down its metals business,” said one of the sources.

“The plan is to unwind the metals business,” said another.

A spokeswoman for Scotiabank declined to comment.

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Posted at 9:37 AM (CST) by & filed under General Editorial.

Great and Wonderful Tuesday Morning Folks,

     It almost always impossible to see a positive price on the last delivery day of the month. Ok, it’s rare to see, and today we have one of those occasional moments that will hopefully carry us thru the day with June Gold up $3 at $1,726.80 after touching the high at $1,728.00 with the low at $1,706.00. Silver is up as well with the July contract at $15.370 up 2.9 cents with a high at $15.455 and the low at $15.085. The US Dollar, after recovering above par during Monday’s trade, is back below it again with the price at 99.525, down 57.2 points and close to the low at 99.485 with the high mark at 100.295. Of course, all this happened already before 5 am pst, the Comex open, the London close, and after a Chinese brokerage firm was reportedly forced to retract what may have been an honest unemployment outlook for its country. Maybe they forgot to wait for the approved story, like we get here.

     The pullbacks in the emerging markets seem to have less and less of an impact lately with Venezuela’s price for Gold now at 17,246.42 Bolivar, saving the buyer 75.90 with Silver’s price reduced by 1.298 with today’s value pegged at 153.508 Bolivar. Argentina’s currency now has Gold valued at 114,776.76 Peso’s, showing a reduction of 319.35 overnight with Silver at 1,021.61, offering the buyer a 7.17 A-Peso savings from yesterday price. The Turkish Lira also gained in value taking away 33.40 Lira’s with Gold price now at 12,081.25 with Silver doing the same, losing only 0.713 T-Lira’s with the price at 107.548.

       Today is the last day for April Deliveries with Silver’s demand count still at 6 and after no additional purchases were made during yesterday’s trade, but the CME did change the closing price down to $15.201, a price drop of 5 cents. So far this morning, we see a 2-lot swap and with 2 prices at $15.010 and $14.995, can you guess which price is the last? Also, of note is the May Contract count, which will start to matter this Friday after Thursday’s closing numbers tells us the number of contracts standing for delivery. May Silver’s Open Interest now stands at 22,299 which translates to 111,495,000 ounces which is way too much for the CME to deal with. Something must have spooked the shorts; I say this because we actually had a reduction of 3,337 short contracts in the Overall Open Interest with today’s starting count at 140,556 Overnighters. Normally we would see a reduction going into the next months deliveries. This seems to be a bit early, and something to look forward too since the OI has dropped considerably since the March Options came off the board.

      Today’s numbers for the last day of April Gold deliveries shows a 79 count reduction leaving 124 fully paid for contracts waiting for receipts, so they can start the delivery process with yesterday’s Volume reaching 169 inside a trading range between $1,731.90 and $1,712.10 with the very last trade of the day done at $1,716.90 (a 2-lot buy) and of course that “non-manipulated close” way down at $1,711.90. So far this morning, the Volume inside the delivery month is at 6 with a one price trading range at $1,716.60 (high/low/last), a gain of $4.70 and right close to yesterday’s last trade. May Gold Deliveries are usually unimportant yet, we do have a demand count at 7,733 which brings a possible order for 773,300 ounces of the real. Friday will give us the starting count as we wade thru the rest of the week. Gold’s Overall Open Interest is doing the exact opposite of Silver’s showing a gain of 3,156 more shorts being added with the total now at 502,584 Overnighters.

      This CCP19 virus has done so much damage to the entire global economic system it’s hard to imagine that things will turn upward right away like the president is suggesting. Yes, we are Americans and we have always fought thru the many hardships of the past and we will again. We have the drive to push forward, a creative mind, the freedom of speech, the right to bear arms, and a never quit attitude! The events that have already occurred, will make Silver and Gold, the most run after assets as the markets filter thru the rest of the 2.2 trillion, then the next multiples of trillions after that. Why do I say this? Because the only answer every single central banker has, and over the centuries, is more money NOW and more control NOW! They even have the help of the governing bodies who just so happen to be educated to believe the same things, and nothing else. Which is being met with, no tax revenues, no Velocity of Money increase, and a much lower employment, and the obvious bankruptcies (of all shapes and sizes) in the very near future.

       So, keep the faith, hold the real in your hands, and have a smile on your face and a prayer for all. Regardless of everything else, we are all on this planet together, and together we will survive, if we divide, we fall. As always …

Stay Strong!

J. Johnson

Posted at 9:36 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Yes, a Constitutional Republic…IF you can keep it!

A Constitution—Up For Grabs (Political Economics)_001

A Constitution—Up For Grabs (Political Economics)_002

Bill Holter’s Commentary

“Force majeure” will be a very widely known term by the time 2020 is over…

Oklahoma Asks Trump To Declare Coronavirus An ‘Act Of God’ To Help Oil Producers
April 26, 2020

April 26 (Reuters) – Oklahoma’s governor has called on U.S. President Donald Trump to declare the coronavirus pandemic an “act of God,” a step to help oil-producing states contend with a crude glut that caused futures prices to close below $0 last week for the first time.

“Over-production of oil continues to threaten the economy,” Governor J. Kevin Stitt said in a letter to Trump that Stitt posted on Twitter late on Saturday.

Declaring a “force majeure” or “act of God” would allow oil companies to halt operations without risking that land leases will be canceled for stopping production, Stitt said.

Oklahoma’s energy regulator said on Wednesday that producers could close money-losing wells without losing their leases, the first victory for struggling U.S. oil companies seeking relief from states after the market crash.

U.S. production reached a record-high of near 13 million barrels per day late last year, but the pandemic has cut global consumption by 20% to 30%, or up to 30 million bpd. (Reporting by Alwyn Scott; Editing by Daniel Wallis)

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Posted at 9:25 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

I was making this point during our talk, on Saturday.

Dave

Capitalism on Life Support…Time for a Cure
April 24, 2020

The Covid-19 pandemic is unleashing obscene bailouts of Western industries and companies, as well as lifelines for billionaire business magnates.

It is grotesque that millions of workers are being laid off by corporations which are in turn receiving taxpayer funds. Many of these corporations have stashed trillions of dollars away in tax havens and have contributed zero to the public treasury. Yet they are being bailed out due to shutdowns in the economy over the Covid-19 crisis.

Why aren’t the banks and corporations being forced by governments to pay for their workers on sick leave or in lockdown? It’s because the governments are bought and paid-for servants of the top one per cent. Some political leaders are the embodiment of the one per cent, like Donald Trump and senior members of the U.S. Congress.

The biggest orgy of funny money is seen in the U.S. where the Trump administration and Congress have approved the printing of trillions of dollars to prop up corporations and banks. Meanwhile crumbs are being thrown at millions of workers and their families.

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Jim/Bill,

With the way the world is printing money what do people think the next couple of years will bring?

Dave

Since Inception, The Euro Has Devalued 85% Against Gold

April 27, 2020

Technically, the euro was launched on January 1, 1999, although euro notes and coins started circulating in January of 2002.

2020-04-26_11-17-54

The first gold price recorded in 1999 was €7,879 euros per Kg – or €7.88 euros per gram (we’ll use euros per gram as the gold price in the remainder of this article). By now, the gold price has crossed €51 euros per gram. A new all-time high.

2020-04-26_11-18-33

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CIGA Werner checks in with a very interesting inflation adjusted chart.

Bill

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Werner with historical hyperinflation numbers. With all the current central bank printing, the past looks to be prologue and a new category “the world” may enter this list of shame!

Bill

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Jim/Bill,

Food for thought.

Dave

‘The Food Supply Chain Is Breaking.’ Tyson Foods Warns Of Meat Shortage As Plants Close Due To COVID-19
April 26, 2020

Tyson Foods, one of the U.S.’s biggest meat processors, didn’t mince words in a full page New York Times spread that ran Sunday, in which they warned, “the food supply chain is breaking.”

“As pork, beef and chicken plants are being forced to close, even for short periods of time, millions of pounds of meat will disappear from the supply chain,” John Tyson, Chairman of the Board of Tyson Foods, wrote in a letter published as an advertisement. “As a result, there will be limited supply of our products available in grocery stores until we are able to reopen our facilities that are currently closed.”

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Posted at 9:11 AM (CST) by & filed under General Editorial.

Great and Wonderful Monday Morning Folks,

      Gold is recovering from a British hangover but only after a high of $1,745.80 was reached with the London low at $1,728.80 with the “now” price at $1,734.40, down $1.20. Silver is still trading in the positive, even after hitting the side of my screen to see if the price was stuck, with the trade at $15.50, up 5.5 cents after reaching a high of $15.635 with the London low at $15.410. The US Dollar broke below par with the trade at 99.970, down 46.4 points, recovering from a low at 99.84 with the high start at 100.370. Of course all this happened already, before 5 am pst, the Comex open, the London lows, and after 21+ years of absolute proof that the EuroCurrency has retained only 15% of what it was worth when it was conceived against the price of Gold. I’m quite certain the Euro-leaders are patting themselves on the back for this too.

      In Venezuela, Gold’s price now sits at 17,322.32, showing a 233.7 Bolivar pullback with Silver’s price reduced by 1.249 with its current value at 154.806 Bolivar. Argentina’s Peso now has Gold valued at 115,096.11 Pesos, offering those that delayed their buying a 1,411.80 discount from Friday’s quote with Silver at 1,028.78 Peso’s, a reduction of only 6.64. Turkey’s Lira price for Gold is trading at 12,114.65 showing a 138.56 T-Lira pullback with Silver losing 0.657 Lira with the price set at 108.261.

      April Silver Delivery Demands now sit at 6 fully paid for contracts waiting for receipts and with No Volume up on the board so far this morning. This proves 15 out of 21 demands for physical, were finally fulfilled on Friday even after the Comex Lords of Math posted a Volume of 10 on Friday but gave no price for that 10-lot trade. We are forced to believe this is an exit/entry spread trade because that is what the CME-people tell us it is. As a reminder, we have spoken at length to these people, including real former licensed pit brokers. They all tell us the prices of spread trades are not necessary to post because they only profit off the differences, with my query, “how can anyone have a profit or loss if there is no price to post?” How can I do that in my account?  We always get nothing but crickets from the CME Lords of Common Core. Silver’s Overall Open Interest gained another 805 more short contracts in order to control the price with the count now at 143,893 Overnighters. What a coincidence it is to see the Open Interest always gain on the day the Sellers of Calls need a lower price in order to not pay. Especially since today is that day the sellers of these derivatives, settle out by buying back their sold May Call Options. The day this turns, will be a day to remember.

      April Gold’s Delivery Demands now sit at 203 fully paid for contracts waiting for receipts and with a Volume of 66 up on the board with a trading range between $1,731.90 and $1,720.00 with the last single lot sell order, so far today, at the low. Friday’s final trading range for the delivery month was between $1,744.00 and $1,714.40 with the last registered trade at $1,723.50 yet that famous “adjusted close” was done at the low, as usual, and with a total Volume count at 221. Gold’s Overall Open Interest also gained more shorts in order to keep things under control with the count now at 499,428 Overnighters showing a gain of 472 more shorts, as we wait for tomorrows count to “not show” any manipulations on the Precious Metals Options Expiration Day. Maybe more concerning is the spread between the COMEX spot price and the next few month’s trades, which should be looked at and with suspicion, with April’s discounted price being $1,720.00 with May’s price at $1,724.30, with June’s price way up at $1,735.80 showing a huge spread of $15.80, between the 2 big delivery months. We are now being led to believe that these past 2 months of staying in place, with a large portion of the mining industry being shuttered because of the airborne CCP19, is giving everyone a better deal as the supplies are being dried up. Only in an Algo trading world can this occur, because it goes against all common sense!

     Not only are the precious metals numbers way off kilter, so is the rest of the central banking system, as their print promoters tell everyone they need more cash as the BOJ Launches another round of Unlimited QE, as we see more supertankers off our California coast and as our nations real estate market has had nothing to show with everyone staying in place. Tom Barrack, whose Colony Capital owns $50 billion in a real estate portfolio, used the word “chaos”, but we think the better term would be “Funny you Ask, there’s No Bid”.

     Tomorrow is the last day to buy into the April Delivery system for both Silver and Gold. I’ve always thought that when Mr. Resolute wanted to make a real hard statement, it would be on the last day of delivery of any given month. Yeah, I’m waiting for it, and I would wager the shorts in $40k suites are phinkstering about it too. Alas, Mr. Resolute(s) may want to survive this too, so I guess it depends on your level of continence or is it confidence? Let’s find out what the future holds, so in the meantime, hold on tight to the real. Lose no sleep over being away from the markets while the world rushes into bankruptcy. Keep that smile on your face and a positive attitude in your head no matter what, and as always…

Stay Strong!

Jeremiah Johnson

Posted at 9:43 AM (CST) by & filed under USAWatchdog.com.

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

Financial writer and professional trader Rick Ackerman says the economy is tanking, and there is no way to avoid an economic depression. Ackerman explains, “It’s going to be an interesting depression because we have all the infrastructure of affluence. We have achieved a pinnacle of affluence, and the metaphor I use is riding to the soup kitchen on an $8,000 trail bike. . . . I hope we find things that make life worth going on without all the stuff. So, we are going to be in a period of living without all the good stuff, and that is going to be the norm. There is also a really hopeful side to economic distress, but we are most surely headed into a period of severe distress . . . and a period of living without. We will find we are not living without things that are intrinsic to human nature that are good. . . .We going to have to find ways to get along because we are headed into hard times.”

A few years ago, Ackerman predicted that the trend for interest rates was down. The 10 year Treasury is now near a record low. Does Ackerman see rates going even lower? Ackerman says, “Yes, I see lower rates. I think we will have lower rates until, at some point in the future, people will start sniffing out a hyperinflation. You know I have been a deflationist for a lot of years. I think we will have to cross the valley of deflation, but somewhere there is a hyperinflation. It won’t take high interest rates to do it because we will be dealing with a real burden of debt that is going to be crushing no matter where interest rates are even if they are fixed at 2%.” Ackerman sees the 10-year Treasury hitting “.25%.”

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Posted at 9:38 AM (CST) by & filed under Jim's Mailbox.

CIGA Werner checks in with some history for us.
Bill

“The greatest currency of all time. The solidus coin under Constantine The Great weighed about 4.5 grams and lasted just over 700 years with no devaluation.”
 
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