Posted at 10:40 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Ag/Au, When The Dollar Drops, Watch Out Above!
July 24, 2019
Great and Wonderful Early Wednesday Morning Folks,

Gold continues upward with that “in your face look” proving the trade gained $5.20 of value with the price at $1,426.70, after starting off lower at $1,416.70 with the high nearby at $1,427.40. Silver is following along (for now) with the trade at $16.57 up 9.4 cents close to the high at $16.595 with the low at $16.35. The US Dollar is still holding onto its value with the price at 97.335, down 8.3 points with the high at 97.57 and the low close by at 97.28. All this was done around 4:30 am pst, before the Comex open, and the London close. All done earlier than normal because I want to watch the entire Mueller hearing.

In the Emerging Markets Currency watch we see gains in both metals across the entire board. Venezuela’s Bolivar now has Gold priced at 14,249.17, regaining more than yesterday’s loss with Silver now at 165.493, adding an additional 1.249 Bolivar to its price. In Argentina, Gold has a value of 60,371.82 proving a gain of 413.75 Pesos with Silver jumping 8.771 A-Pesos with its price at 706.133. Over in the land of Turkey, Gold is priced under the Lira at 8,169.01 giving the Nobel metal a 70.18 T-Lira jump in value with Silver now pegged at 94.8409 Lira proving a gain of 1.3068 in value.

July Silver’s delivery demands are now showing 156 fully paid for requests for physical and with a Volume of 8 up on the board so far this morning with a trading range to report between $16.31 and $16.30. This proves a drop in OI of 243 obligations either delivered here or transferred over to the City of London (or?). Yesterday, I had forgotten to give the price gain in July Silver after I wrote about the $16.29 and $16.295 trading range for Monday’s trade. The closing price for the delivered product was $16.34 on Monday’s close. No trades are registered at this price but that is what they closed it at. Yesterday’s closing price for July Silver was $16.405 although there were no registered (prices or) trades in the delivered month but we did see a Volume of 72 (still trying to figure that one out). All the Open Interest in Silver is now at 234,975 Papered Obligations giving us a proven gain of 1,783 more contracts added to the mix in order to keep Silver in place. With all these pieces of paper being added to the fray, one has to wonder how much higher Silver would be if the US Dollar wasn’t so strong?

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Posted at 10:33 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

The fed keeps telling us all is great.

With this morning’s headlines….

Do you feel secure?

CIGA Wolfgang Rech

New Home Sales Miss As Mortgage Rate Collapse Fails To Bring Buyers Back

New Home Sales were 646k SAAR in June – missing expectations of 658k – May new-home sales were revised down to 604,000 from 626,000; March and April purchases were also revised lower.

  • JUL 24, 2019 10:07 AM

US Manufacturing PMI Slumps To 10-Year Low

“Manufacturers are shedding workers at the fastest rate since 2009and service sector job creation is now down to its lowest since April 2017”

  • JUL 24, 2019 9:52 AM

Trade War Chaos: Trump’s Tariffs Crash American RV Industry 

“This is the worse I’ve seen it,”  …RV shipments had fallen sharply just before the last three U.S. recessions…

  • JUL 24, 2019 9:21 AM

“Cracks Are Showing”: CAT Shares Slump On Lower Earnings Guidance, Retail Sales Miss

It’s the latest sign that the blowback from the trade war might be worse than expected….

  • JUL 24, 2019 8:00 AM

Boeing Q2 Revenue Plunges, Missing By $5BN, Resulting In Shocking $1BN Cash Burn

Just like Deutsche Bank, Boeing decided that Q2 will be its kitchen sink quarter. Will it be enough?

  • JUL 24, 2019 7:58 AM

Global Stocks Slump As German Manufacturing Craters, Tech Spooked By DOJ Probe

German manufacturing slumps deeper into a recession even as global stocks continue to trade just shy of all time highs.

  • JUL 24, 2019 7:32 AM

Deutsche Bank Tumbles As Trading Revenues Plummet

“These results do little to allay market concerns on the ability to deliver on those targets”

  • JUL 24, 2019 6:57 AM

Posted at 10:30 AM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com 

Economist John Williams says be careful what you wish for when it comes to Federal Reserve interest rate cuts. Williams explains, “Unless you can get a good healthy consumer, you are not going to get a good healthy economy. It’s that simple. I think the Fed recognizes that, but they want to get rates higher because that will help the banking system. It will help make lending a little easier and start to return the system to normal. The problem with them backtracking now is the Fed may not ever be able to go back and do what they did before. We may be entering a period of perpetual quantitative easing (money printing). That changes the ballgame, and I am not sure where that’s going to go. It’s not as happy as it would have been if we had gone through a transition where bad parts of the banking system failed and you rebuilt and had a strong buildup from there with the economy and everything else. . . . Perpetual quantitative easing (money printing) is frightening, and it’s a new world. No one has ever seen anything quite like this.”

Williams says all his data is showing the economy is already faltering. Williams point out, “If you believe the GDP numbers, the economy has expanded 25% since the Great Recession, but there is no other number that shows that. . . . I have been contending that we are heading into a new recession. What I am looking at in recovery is that the economy has never really recovered. . . . . The Fed raised rates too much in too fast of a period of time. Had they stretched that over a couple of more years instead of trying to get things back to normal in two years, that might have worked better. What they did was effectively crashed the economy.”

Is there going to be a rate cut? What does Williams think the Fed is seeing right now? Williams says, “I think the Fed is seeing the economy is turning down sharply and that they are in bad trouble with the economy. The way (Jay) Powell talked, and he is the Fed Chairman, indicated that.” So, yes, Williams thinks the Fed will cut rates soon.

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Posted at 9:59 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

I find this absolutely hilarious.

“Gold prices slipped to a near one-week low on Tuesday as the dollar strengthened following a deal on extending debt limit in the United States.”

A stronger Dollar because government proposes we get even deeper into debt.

It’s a Bizzaro world.

The real problem is not about extending the debt limit.

It’s about where will we get the money as the world flees from our debt?

Print baby, print!

CIGA Wolfgang Rech

PRECIOUS-Gold Dips As Dollar Strengthens On U.S. Debt Deal
July 23, 2019

* ECB to meet on Thursday, Fed on July 30-31

* Spot gold may fall to $1,401-$1,409/oz range – technicals (Adds comments, updates prices)

By Karthika Suresh Namboothiri

July 23 (Reuters) – Gold prices slipped to a near one-week low on Tuesday as the dollar strengthened following a deal on extending debt limit in the United States.

President Donald Trump and U.S. congressional leaders agreed on Monday on a two-year extension of the debt limit and federal spending caps to avert a government default this year but adding to budget deficits in the world’s largest economy.

Spot gold fell 0.4% to $1,418.39 per ounce as of 1013 GMT. Prices had dropped to $1,413.80 earlier in the session, last touched on July 17.

U.S. gold futures dropped 0.6% to $1,419.

“We’re seeing a slightly stronger dollar and also news on the political front in the U.S. … created a bit of an opportunity for profit taking,” said Capital Economics analyst Ross Strachan, adding prices could soften in the near term.

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JB,

Is this because they do not have the cash to “set aside”?

Bill

Global Regulators Extend New Derivatives Rule To September 2021
July 23, 2019

LONDON (Reuters) – Global regulators have delayed by a year to September 2021 the final phase of new rules that require market participants to set aside cash or margin to cover their derivatives transactions.

Derivatives played a core role in the global financial crisis a decade ago and new rules were agreed to require all market participants to back their trades with cash in case they turn sour.

The Basel Committee of global banking regulators, and its counterpart for securities markets, IOSCO, said in a joint statement on Tuesday that progress has been made in rolling out the new margin rules for derivatives that do not pass through a clearing house.

The final so-called “Phase 5” of the rollout was due in September 2020, but many market participants said they would not be ready.

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Posted at 9:55 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Silver, And The Boris Win!
July 23, 2019

  Great and Wonderful Tuesday Morning Folks,   

      Gold starts off lower with the price at $1,424.10, down $2.80 after being pushed down to $1,414.60 just after the reopening in the night session with the high close by at $1,426.30. Silver is leading again with its trade at $16.445, up 3.4 cents after being knocked down to $16.205 in the night session, with the trade close to the high of $16.485. The US Dollar is also trading higher with the current value pegged at 97.18, up 24 points after reaching 97.265 with the low at 96.985, all this was done sometime before 5 am pst, The Boris win, the Comex open, and the London close.     

      Our emerging markets currency overview shows Gold losing in all 3 watched currencies with Silver gaining ground. Venezuela’s currency now has Gold trading at 14,223.20 Bolivar, losing 24.97 in value with Silver proving a gain of .349 with its price at 164.244 Bolivar, all this happened even when the lights went out. Gold in Argentina is now priced at 60,385.26 proving a drop in value of 49.67 Pesos with Silver showing a 2.015 Peso gain with the price at 697.362. Over in Turkey, the Lira has Gold pegged at 8,098.83, losing 24.74 Lira with Silver’s price at 93.5341, proving a gain of .364 in T-Lira value.   

      July Silver Deliveries is the issue and boy what a day yesterday proved to be when it comes to unanswerable or questionable data. Yesterday we witnessed a gain in demands proving 77 more requests for physicals were added totaling 399 fully paid for demands (5,000 ounces each). There are no purchases as of yet in the July Contracts this morning giving us no trading range to talk about yet. However, yesterday’s activities and the numbers, is where it got really confusing; Monday’s Volume totals at the close for July Silver was 161. But the trading range for the whole day in July Silver was a whopping ½ penny. That’s right! All those Volumes traded between $16.295 and $16.290. How’s that for wild eyed commodity trading you’ve all been warned about? Silver’s Overall Open Interest gained 2,029 more Overnighters giving us a total of 233,192 Obligations to keep Silver from doing more than it already has. In time this control will be blown out, which is why we watch so closely.   

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Posted at 8:38 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Silver’s Resolute Longs Still Staying in Place
July 22, 2019

Great and Wonderful Monday Morning Folks,   

      I trust you had a great weekend and still wondering what Monday’s trades would look like and today we know with Gold trading flat to lower with its current price at $1,426.60 down a dime inside a very tight trading range between $1,430.80 and $1,423. Silver is leading the charge with its trade at $16.41, up 21.5 cents and close to the high at $16.455 with the low at $16.195. The US Dollar is following the Silver rise (love stating that) with its trade at 96.93, up 11.3 points and it too is right beside its high at 96.95 with the low down at 96.785. All of this was done sometime between the Sunday night start up, before 5 am pst, the Comex open, and the London close.   

      We start the week in the emerging markets with Gold trading lower in 2 of the 3 watched currencies and Silver gaining in all of them. Gold in Venezuela, lost 120.85 Bolivar over the weekend with its price at 14,248.17 with Silver now at 163.895 proving a gain of .649 in Bolivar value. In Argentina, Gold is priced at 60,434.93 taking back 519.35 A-Pesos with Silver trading at 695.343 adding an additional 2.814 in A-Peso value. In Turkey, Gold is now priced under the Lira at 8,123.57 showing a gain of .60 with Silver now at 93.1701 giving the money of the people a .8757 T-Lira gain.    

      Comex Silvers delivery requests gained on Friday with the demands for physical now at 322 requests and with a Volume of 2 up on the board so far this morning. In addition, we have another one of those “No Trading Ranges” going on so far for this 2 Volume post. This proves a gain of 46 more demands as we wait to see how this Resolute Buyer(s) plays against the shorts. Silver’s Overall Open Interest proved a drop in count with 231,163 Overnighters still in the trade giving us a drop in count of 3,057 Obligations as the prices continue to rise because Silver’s Resolute Longs are still staying in place. The point of contention is in the Open Interest with these buyers keeping the word Resolute up front and center. I’m wondering if the shorts will make the attempt to run the numbers up to 250,000+ in order to see how the buyers will react. At the same time, the shorts have to be thinking their funeral may be at hand if they do try and fail. This brings up the thought of why all those July, September, and December Call options, were bought and held since Trump and the Brexit got voted in.   

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Bill Holter’s Commentary

We believe Egon is correct.

Greyerz Just Issued A Dire Forecast As We Approach Panic in Global Markets
July 21, 2019

As the world edges closer to the next crisis, today the man who has become legendary for his predictions on QE and historic moves in currencies just issued a dire forecast as we approach panic in global markets.

Dire Forecast

July 21 (King World News) – Egon von Greyerz:  “It is not difficult to understand Cassandra’s enormous frustration. She was given the gift of accurately predicting important events and her curse was that no one would believe her. Some of us are certain that we can now see the biggest bubbles in economic history coming to an end with totally devastating effects for the world. But like Cassandra, we are also cursed since more than 99.9% of the world’s population would not believe our predictions.

The problem is that this time it will not only involve the biggest wealth destruction in history, but also lead to major problems in society with mass unemployment, no social security, no pensions, breakdown in law and order, social unrest, civil war and geopolitical conflict.

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Posted at 12:46 PM (CST) by & filed under In The News.

J. Johnson’s – Precious Metals Stand Strong in the Flames of Fiat!
July 19, 2019
Great and Wonderful Friday Morning Folks,

You can’t keep a good currency down, and when the fiats are on fire, Gold stands strong within the flames, with the trade at $1,438.70, up $10.60 from the Comex close with the high so far at $1,454.40 with the low close to where we are now at $1,436.20. Silver is up as well with the trade at $16.345, up 14.7 cents after reaching up to $16.50 and just like Gold, trading close to the low at $16.27. Over in the Algo Pits of the Currencies, the US Dollar is trading at 96.68, up 23.1 points and very close to the high at 96.705 with the low at 96.415. All of this was done while we slept, before 5 am pst, the Comex open, and the London close.

The emerging markets currency’s, under insanity print, now has the Venezuelan Bolivar pricing Gold at 14,369.02 adding 15.98 in Bolivar value with Silver at 163.246 putting an additional 2.247 Bolivar into the price. Argentina’s Peso print has Gold pegged at 60,954.28 adding 489.67 in A-Peso value with Silver at 692.529 adding 7.414 A-Pesos. The Turkish Lira has the first money of the world at 8,122.97, it too adding 11.77 in T-Lira value with Silver adding 0.3928 T-Lira with its price at 92.2944.

Comex Silver’s Delivery system has been our primary focus with July’s demands for physical now at 276 requests, proving Comex finally gave out some metal to those waiting buyers with a drop in count of 128 and with a Volume of 2 up on the board so far this morning with a trading range of $16.275 and $16.235 with the last trade being the low of the day so far. The most astounding thing to see is the continual addition of short trades being added to the mix as the controllers of paper boldly go back into overdrive. That is until yesterday as 1,703 obligations left the field of play after this (not so painful for us) rally these shorts had to deal with this week. This bring our Open Interest totals to 234,220 Overnighters still in trade. So far this week, roughly a $1.10 was added to the price with the shorts losing from the very beginning to now, as the starting of the weeks Open Interest showed the 217,753 trades in play , proving the shorts lost a total of $1,197,641,500 before the additional 14,764 shorts were added.

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