The Gold Cartel is HUFFING and PUFFING, and the Commitment of Traders Report reveals as such…
SILVER
*The large specs increased longs by 5,047 contracts and increased shorts by 1,351 717.
*The commercials decreased longs by 259 contracts and increased shorts by 4,869.
*The small specs increased longs by 1,564 contracts and increased shorts by 132.
GOLD
*The large specs increased longs by 13,016 contracts and increased shorts by 4,130.
*The commercials increased longs by 2,724 contracts and increased shorts by 13,459.
*The small specs decreased longs by 1,150 contracts and decreased shorts by 2,999.
end
The failed overnight loan that was stopped in London, turned out to be Yellowstone and it was stopped at only 3 billion dollars. It seems cash is diasappearing down a sinkhole:
Jim Willie on that failed bank trade…
thanks, to you and your friend Greg
the failed inter-bank trade that started in US, went to Hong Kong, then Singapore,
and got hung up in London has been identified
it was Yellowstone and it was $3 billion
I had guessed $10 to $30 billion
if any further details, pass them on
jim
end.
Yesterday, the Dow fell badly, down by 62 points. The 10 year treasury rose to 3.14% and the long bond settled at 122.2 down 1/3 point.
The Federal Debt continues to climb, rising a further 8 billion yesterday to 11.270 trillion dollars.
The White house expects that the Debt Ceiling will have to be raised from 12.1 trillion in the first few weeks of July.
In economic news, the consumer price index remained flat in April:
U.S. consumer prices unchanged in April
WASHINGTON, May 15 (Reuters) - U.S. consumer prices were unchanged in April as expected, but recorded their largest 12-month drop since 1955, government data showed on Friday, as sluggish consumer demand limited companies' pricing power.
The Labor Department said its closely watched Consumer Price Index was flat after falling 0.1 percent in March. Compared to the same period last year, consumer prices fell 0.7 percent, the biggest 12-month decline since June 1955. In March, the year-over-year CPI rate fell 0.4 percent.
Core prices, which exclude food and energy items, rose a faster 0.3 percent versus a 0.2 percent increase in March. That compared to analysts' prediction for a 0.1 percent increase. Core prices rose 1.9 percent year over year after a 1.8 percent rise in March.
Energy prices fell 2.4 percent after dropping 3.0 percent the previous month. The food index fell 0.2 percent in April, the largest drop since May 2002 and the third straight monthly decline.
end.
Yesterday there were three important economic news reports. The first saw the empire report or NY manufacturing report show a decline of 4.55 vs a consensus of negative 12. The april reading was negative 14.65. So there is definite manufacturing activity in NY.
The TIC report showed an inflow of 23 billion from a loss of 91 fillion in Feb. They need about 60 billion dollars of fresh money to finance deficits in trade and service sector. Money is also needed to cash all the bonds that China is bailing out of.
Industrial production continues to contract down .5%. On a usa global picture production is still waning: Here are the stories:
08:30 May Empire Manufacturing (4.55) vs. consensus (12)
Apr reading was (14.65).
* * * * *
09:01 Mar Total net TIC flows $23.2B vs. revised ($91.1B) in Feb
Net long-term TIC flows $55.8B vs. consensus $32.5B. The Feb total figure was revised from ($97.0B).
* * * * *
09:15 Apr Industrial Production (0.5%) vs. consensus (0.6%); Capacity Utilization 69.1% vs. consensus 68.8%
Mar Industrial Production revised to (1.7%) from (1.5%); Capacity Utilization revised to 69.4% fro 69.3%.
U.S. industrial production falls 0.5 pct in April
WASHINGTON, May 15 (Reuters) - U.S. industrial production fell 0.5 percent in April, dropping for the sixth consecutive month but at a more modest pace than in recent months, Federal Reserve data showed on Friday.
Economists polled by Reuters had expected a drop of 0.6 percent in April, compared with a 1.7 percent slide in March, which was initially reported as a 1.5 percent fall.
The figures provided more evidence that the pace of recession may be easing after back-to-back quarters of sharp contractions in gross domestic product.
The capacity utilization rate for total industry, a measure of slack in the economy, fell to 69.1 percent in April, the lowest level on records dating back to 1967.
Production in manufacturing declined 0.3 percent in April, and was 16 percent below its recent peak in December 2007, which was when the current recession began.
end.
Capital One Finance is the next bank to undergo trickery in its reporting:
Capital One Net Credit Card Charge-Off's fall?
The Orwellian fraud and lies get worse
More murkey and potentially fraudulent accounting games were released this morning by Capital One, as COF jubilantly announced that its rate of writing off bad credit card and auto loans decreased slightly in April. HOWEVER, upon closer examination, its revealed in the Company's dubious 8-K filing with the SEC that the Company decided to increase the window of time between when a loan goes bad and when they decide to completely write it off. A close reading of the 8-K also reveals that Capital One does not define this expanded window other than to say they used to charge-off bad loans within 2-3 days, and now they using a 30-60 day window.
All this is to say that Capital One is using accounting gimmicks to try and make their reported results look better this quarter. In fact, based on delinquency/charge-off trends reported by all banks in the 1st quarter of 2009, if anything, the amount of credit card and auto loans which ceased payments in April most likely INCREASED.
IF you look at COF's 1st quarter 10-Q, we find that it's net charge-off increased in Q1 2009 increased by 43% from 5.8% in '08 to 8.4% in '09 and 30+ day delinquencies increased over 20% for the same period. Their auto loan charge-offs/delinquencies also increased, and the charge-off/delinquencies for their mortgage segment (they acquired Chevy Chase bank, a big sub-prime lender) seriously accelerated in '09 vs. '08.
Looks like the stock market caught on the game being played, as COF's stock jumped over 10% at the open and now looks like it may go red on the day (10:16 a.m. NY time). Inquiring minds want to know, when will our Government - the Presidency and Congress - put a stop to this fraud?…
end.
I encourage everyone to take 5 minutes and watch the following video. This man is the best retail analyst around and I have quoted him on many occasions. Here is the passage and video:
this video needs to be watched
Howard Davidowitz, one of the most respected retailing analysts around, is one of the few truth-tellers who gets mainstream media time:
"If the consumer isn't petrified he is a damn fool. We've got an $8 trillion negative wealth effect from housing, our country will still have the same debt as our GDP, Obama's borrowing his brains out....and debt NEVER leaves"http://finance.yahoo.com/tech-ticker/article/248398/%22The-Worst-
Is-Yet-to-Come%22-If-You%27re-Not-Petrified-You%27re-Not
-Paying-Attention?tickers=^DJI,^GSPC,DDR,XLF,GM,RWR?sec=topStories&pos=9&asset=&ccode
***
end.
I was getting worried about California's huge growing deficit. However my fears are receding quite a bit with this announcement as to how they care tackling this huge problem:
California To Hold State Wide Bake Sale To Close Budget Gap
- May 14, 2009 at 2:18 PMPost a comment
Governor Arnold Schwarzenegger, along with the California State Assembly, today announced a state wide Bake Sale, in an effort to close the state’s worsening budget deficit.
The Bake Sale, to be conducted during the week of June 1, will run for 5 days throughout the entire state, the nation’s most populous…
-END-
General Motors and Chrysler have announced huge reductions in dealerships throughout the usa.
Both are eliminating over 2000 dealerships and that is going to have huge collateral damage, from coffee shops, real estate, an increase in unemployment, and suppliers to these dealerships.
From Bill Holter:
Bill H:
The next downleg
To all; GM and Chrysler are eliminating over 2,000 dealerships between them, this will be a huge blow to the economy at large. Think of the ramifications, this will lead to several hundred thousand more unemployed and then the ripples will start to move outward. This also represents quite a substantial amount of commercial real estate square footage that will become empty. The loss of jobs, franchises, suppliers, etc. all the way down to the local coffee shops is a definite body blow to any recovery or so called "green shoots".
This is absolutely a deflationary event, the Fed and Treasury will now need to create even more Dollars. Can anyone see where this is going? The more things deflate, the more the Fed and Treasury will need to inflate to counter this. This inflation, once into the system cannot be withdrawn. What they are doing now will result in hyperinflation, tomorrow, next week, next month, whatever, it makes no difference when, as long as you know where we are going. We are moving very rapidly to a completely different financial environment that will include totally different perceptions and thoughts regarding all financial assets. Psychology will change.
The equity market is rolling over from a loss of momentum, I believe we are primed again for a waterfall event very soon. If you thought the March lows exhibited panic, just watch what happens on this next downleg! You cannot trade here, you can't try to be fancy, you must have maximum exposure to anything precious metals related. We should witness a complete disconnect between Gold related assets and virtually everything else in this coming downleg. I am looking for "the day" where the equity market gets pummeled and everything precious metal moves hard to the upside. The bell will have rung! Have a nice weekend, Bill H.
end.
This is an article from Patrick Heller about the IMF gold. He basically is saying what I have been telling you that the IMF does not have any gold in its vaults.
Patrick stated that the IMF houses the gold in 4 country depositories. He named the USA as one and England another. He did not know the other 2. It is France and India. Here is his article on this subject:
Press on the blue for the entire article:
Patrick A. Heller: Is U.S. buying back its own gold?
Submitted by cpowell on 12:38PM ET Friday, May 15, 2009. Section: Daily Dispatches
3:37p ET Thursday, May 14, 2009
Dear Friend of GATA and Gold:
Writing at Numismaster, Patrick A. Heller adds to skepticism that the International Monetary Fund has any of the gold it is always threatening to sell, noting GATA's unsatisfactory exchange with the agency in pusuit of details about its supposed gold hoard. Heller's essay is headlined "Is U.S. Buying Back Its Own Gold?" and you can find it at Numismaster here:
http://www.numismaster.com/ta/numis/Article.jsp?
ad=article&ArticleId=6691
end.
I am going to print off the silver and gold comex deliveries. I do not believe in their accuracy so I will not comment on it. However this is what the comex reports:
COMEX Warehouse Stocks May 15, 2009
SILVER
ZERO ozs withdrawn from the dealer’s inventory
265,915 ozs (net) deposited in the customer inventory
Total dealer inventory 63.2 Mozs
Total customer inventory 55.9 Mozs
Combined Total 119.1 MOZ
GOLD
10,000 ozs deposited in the dealers (registered) category
34,299 ozs deposited in the customer (eligible) category
Total dealer inventory 2.47 Mozs
Total customer inventory 6.03 Mozs
Combined Total 8.5 MOZ
The major movement was again in silver but this was deposited in the customer inventory, it does not add to what the dealers have available to deliver which still stands at a paltry 63.2 Mozs. ,p> Meanwhile a very sizeable 101 delivery notices for gold were issued on the May contract bringing the cumulative delivery notices to 1333 or 133,300 ozs. In silver there were a very substantial 782 notices issued bringing the total to 3,682 or 18.4 Mozs. The silver delivery notices are now extremely significant at 29% of the dealer inventory. No such quantity of silver has either moved from the warehouse or changed from dealer to customer inventory. Just like previous months where I have been reporting on this, there is something seriously wrong with this picture. We have had a decade now of “accounting errors” that have been the dominant feature of a rotting Wall St. Perhaps the COMEX is one of a few organizations that have squeaky clean accounting….but then why doesn’t their warehouse inventory movements match the delivery notices? And why can’t a COMEX representative explain it?
Cheers
Adrian
end.
Gold has now pierced its 6 week moving average and will be poised to break about 935.00.
The resistance level for silver is around 14.00
To our Canadian friends, I wish you a very happy Victoria Day long weekend. To out American friends, get back to work.
speak to you on Monday.
Harvey.
