Lawsuit Stunner: Half of Futures Trades in Chicago Are Illegal Wash Trades

Duffy Terrence CMEPam Martens writes for Wall Street on Parade:  Pam begins:  Since March 30 of this year when bestselling author, Michael Lewis, appeared on 60 Minutes to explain the findings of his latest book, Flash Boys, as “stock market’s rigged,” America has been learningsome very uncomfortable truths about the tilted playing field against the public stock investor.

Throughout this time, no one has been more adamant than Terrence (Terry) Duffy, the Executive Chairman and President of the CME Group, which operates the largest futures exchange in the world in Chicago, that the charges made by Lewis about the stock market have nothing to do with his market. The futures markets are pristine, according to testimony Duffy gave before the U.S. Senate Agriculture Committee on May 13.

Image: Terrence Duffy of the CME Group Testifying Before the Senate on May 13, 2014

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Japan’s Bond-Hugging Banks are Pinning Abe Down

Abe ShinzoAndy Mukherjee writes for Reuters.  Japanese lenders’ outsized government bond holdings have Prime Minister Shinzo Abe in a chokehold. Unless banks shed the load now, they might try to dump the debt when the Bank of Japan stops printing money and causes bond prices to fall. A stampede could rattle the financial system and dent Abe’s anti-deflation campaign.

Deposit-taking institutions have trimmed their portfolio of Japanese government bonds (JGBs) by 9 percent over the past year, helped by the BOJ’s aggressive bond-buying programme. But they still carry 288 trillion yen ($2.8 trillion) of JGBs, equivalent to 60 percent of GDP.

There is a worrying amount of government debt still to come. The stock of JGBs would zoom to just over 925 trillion yen by 2017, from an estimated 860 trillion yen at the end of 2014, assuming 2.5 percent annual growth in the debt pile. If the Government Pension Investment Fund starts chasing riskier assets like equities to bolster returns, another 10-15 trillion yen of JGBs may need to find alternative buyers by 2017.

That brings the oversupply to 80 trillion yen. On past trends, other non-bank investors and foreigners can pick up 35 trillion yen of the slack, leaving 45 trillion yen of JGBs looking for a home. The BOJ can’t keep buying 50 trillion yen of JGBs a year, and may turn seller once inflation picks up.

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Andrew Schiff - The Strange Case of German Gold - An Interview with Peter Boehringer

Schiff ANDREW Peters BroAndrew Schiff, EuroPacific Capital, writes in their latest client newsletter:  A June 23 Bloomberg News story entitled "German Gold Stays in New York in Rebuff to Euro Doubters" made the seemingly straight-forward case that the German authorities had decided to reverse course on a plan announced in 2012 to bring home some 300 tonnes of German gold that had been on deposit at the New York Federal Reserve since the 1960s. According to the article, German representatives had gone to New York, saw their gold, were convinced that it was in good hands, and decided that the hassle of putting it on a plane and sending it back to Germany was simply unnecessary. The article quoted a spokesman for Chancellor Merkel who said "the Americans are taking good care of our gold" and even quoted Peter Boehringer, one of the leading private advocates of the repatriation movement, as saying their campaign to pressure German authorities "is on hold."

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Wednesday Night Sell Raid Attempt for Gold

Update 3:  Adds final EOD 15-min graph for gold and a follow up comment. 

Update 2:  Adds several new graphs and brief commentary at the end. 

Update 1:  Adds 5-min tick charts for a closer look at the sell raid.  Shows that bidders stepped up to take the offers. 

Right after the China PMI number was released late Wednesday night (here, Thursday morning in China and Hong Kong) we saw a sell raid on gold and silver that looked like this in the beginning. 

20140723 Kitco Gold a

(More... )

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IMF Sees US Growth at Weakest Since Recession

IMF logoABC News picked up this AP Story:  U.S. economic growth this year will likely be at the weakest pace since the Great Recession ended, the International Monetary Fund said, mostly because of a sharp, weather-related contraction in the first quarter.

But the global lending organization said Wednesday that it still expects growth resumed in the April-June quarter and will remain healthy in the second half of this year and next.

In its annual report on the U.S. economy, the IMF projects growth will be just 1.7 percent this year, down from a 2 percent estimate in June. That's below last year's 1.9 percent pace and would be the slowest annual rate since the recession ended in June 2009.

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Stockman - This Time Is Not Different: Why The Market Is Heading For A Fall

Stockman David

Former OMB director under Ronald Reagan and prolific contemporary economics observer/commentator,  David Stockman, writes for his own blog, David Stockman's Contra Corner.  He begins:   The 2008 Wall Street meltdown is long forgotten, having been washed away by a tsunami of central bank liquidity. Indeed, the S&P closed yesterday at 1,983—or up by nearly 200% from its March 2009 low. Yet four cardinal measures of Main Street economic health convey nothing like a 2X pick-up from the post-crisis bottom.

To wit, in June the count of breadwinner jobs was 68.5 million or 5% below were it stood as the crisis got underway. Likewise, business investment in real plant and equipment is still 5% below its late 2007 peak. So too with the real median family income at about $53k—its still down by 6%. And unlike past cycles where safety net programs like food stamps shed recipients as the recovery gained momentum, there are still nearly 47 million Americans in the program compared to 30 million in March 2009.

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COMEX Producer/Merchants in Gold, View from 30,000 Feet an Eye Opener

Traders exasperationHOUSTON – One of our longtime members, who, because of the firm he works for (as a senior officer), has to remain anonymous, checked in to make an observation about the large trader positioning and we thought it worthy of sharing with the entire readership. 

Our friend … let’s call him “Mike” … writes:  “Gene, what do you think about bringing back your “view-from-30,000-feet” section for the COT?  I used to cut and paste it to my monitors to keep me focused on your long term expectation.  That was one of the most valuable segments of the old Resource Investor Crew email service.  I still miss it. … If I had to guess it would be the lack of producer merchants net shorts giving the COT a long term long  bias. … How did I do?  Hope you are feeling better.  … (Mike) 

Not bad, “Mike,” not bad at all.  Let’s do take a view from 30,000 feet.   That’s where we focus on what is OUT OF KILTER or ABNORMAL and really nothing else in the large trader positioning on the theory that when things are out of kilter they will almost certainly return to form in a predictable, but not necessarily imminent fashion. 

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Increase in Spot Month Position Limits for Four (4) COMEX Copper Futures and Option Contracts

CME GROUP LOGO W TAGPending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will increase the spot month position limits for the COMEX Copper futures and its associated futures and option contracts from 200 to 400 contract units effective at the close of trading on August 28, 2014 for the September 2014 contract month.

The terms and conditions for the COMEX Copper futures contract and its associated futures and option contracts will be updated and inserted into the NYMEX Position Limit, Position Accountability and Reportable Level Table located in the Interpretations and Special Notices Section of Chapter 5 of the NYMEX Rulebook on August 28, 2014.

(Bold/underline indicates additions; strikethrough indicates deletions)

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Thursday, July 24, 2014

Ukrainian PM, Cabinet Resign

DONETSK, Ukraine (CNN) -The United States said Thursday it has proof that Russia is firing into Ukraine. ... Also Thursday, Ukrainian Prime Minister Arseniy Yatsenyuk and his Cabinet announced their resignation in what Ukrainian political experts said was an expected development. Yatsenyuk and his Cabinet will remain in place as an acting government until elections in October.

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Ukraine’s prime minister resigns as coalition falls apart

Ukraine’s prime minister resigns as coalition falls apart... (Reuters and AP Confirm). Ukrainian Prime Minister Arseniy Yatsenyuk said Thursday that in light of recent turmoil in parliament, he is resigning his post. He scolded politicians for failing to increase army financing. (Reuters) More...

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Missing Air Algerie plane from Burkina Faso has crashed: Algerian official

(Reuters) - An Air Algerie flight crashed on Thursday en route from Ouagadougou in Burkina Faso to Algiers with 110 passengers on board, an Algerian aviation official said. There were few clear indications of what might of happened to the aircraft, or whether there were casualties, but Burkino Faso Transport Minister Jean Bertin Ouedrago said it asked to change route at 0138 GMT (9.38 p.m. EDT) because of a storm in the area. I can confirm that

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Air Algerie 'loses contact with plane' flying from Burkina Faso

Air Algerie has lost contact with an aircraft travelling from Burkina Faso in west Africa with a total of 116 people on board. Aviation authorities said flight AH5017 vanished from radar about 50 minutes after take-off from Ouagadougou. Two French fighter jets based in Africa have now been deployed in an attempt to locate the missing plane, the French army spokesperson Gilles Jaron has confirmed. The last contact Algerian authorities had with the aircraft was at 01.55am

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Flight from Burkina Faso to Algeria disappears from radar

Air Algérie flight AH5017, thought to be carrying 110 passengers and six crew, disappears in early hours of Thursday morning

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Stalled recovery leaves Europe defenceless against economic shock from Russia

Stagnation is automatically causing debt ratios to spiral upwards yet again across a large part of the currency bloc Ambrose Evans-Pritchard, The Telegraph, writes: Europes economic recovery has stalled. The EMU policy elites took a fateful gamble that global growth alone would lift the eurozone off the reefs, without the need for serious monetary stimulus or a reflation package to ensure take-off velocity. Their strategy has failed. The Bundesbank says German growth may have slumped to zero

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ROMARCO ANNOUNCES FINAL EIS PUBLICATION

TORONTO, July 24, 2014 /CNW/ - ROMARCO MINERALS INC. (TSX: R) (the Company) is pleased to announce that the US Army Corps of Engineers (Corps) has informed the Company it will release its Final Environmental Impact Statement (the Final EIS) for the Haile Gold Mine project on its www.hailegoldmineeis.com website either today Thursday, July 24, 2014 or tomorrow Friday, July 25, 2014. The Final EIS is a major milestone in the Haile Gold Mine permitting process.

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Wednesday, July 23, 2014

Great Opportunities At These Gold Levels: iiTrader

Kitcosvivacious Daniela Cambone talks with technically minded trader Bill Baruch of iiTrader. The brief setup on the Kitco page reads: Kitco News speaks with iiTrader’s Bill Baruch following the release of Tuesday’s CPI numbers in the US. He says that although inflation data was somewhat less worrisome, it still offered a case for gold. “Now that inflation isn’t a worry, the Fed may not have its hand forced sooner than expected at raising rates,” he says. Baruch

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Gold Seen Drifting Toward $1,300/Oz Ahead Of Approaching Options Expiration

Allen Sykora reports for Kitco News: Comex August gold futures may gravitate toward the $1,300-an-ounce level into an options expiration at the start of next week, assuming no major news events emerge to suddenly send prices sharply in either direction, traders and analysts said. Expiration of August options for gold and silver are scheduled for Monday. (Emphasis ours.) A call option gives the holder the right to call, or buy, a specific futures contract at an agreed-upon

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IMF Says Fed May Have Scope for Zero Rate Past Mid-2015

IMF Says Fed May Have Scope for Zero Rate Past Mid-2015 Bloomberg http://www.bloomberg.com/news/2014-07-23/imf-says-fed-may-have-scope-to-keep-rates-low-past-mid-2015.html

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Escalating Ukraine crisis could blow gold sky high

Far from coming to an end the Ukraine crisis could be far from over and as the West and Russia are embroiled in accusation and counter-accusation over the downing of Malaysia Airlines Flight MH17, the potential for escalation is perhaps getting more serious by the day. It has brought a safe-haven focus back into the gold market which is probably likely to remain given Ukraine is not the only major flashpoint of worry with Syrian, Iraqi and

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METALS-London zinc hits 3-year high, aluminium a 16-month peak

LONDON, July 22 (Reuters) - Zinc hit a three-year high and aluminium touched a 16-month peak on Tuesday as investors sought more exposure to commodities with tightening supply-demand balances and were encouraged by falling inventories and firm equity markets. London Metal Exchange stocks of zinc fell by 400 tonnes to 656,275 tonnes, their lowest in 3-1/2 years, while aluminium stocks fell by 9,075 tonnes to 4.938 million tonnes, their lowest in nearly two years. MZN-STOCKS MAL-STOCKS

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Rubicon Minerals Announces Closing of C$12 Million Flow-Through Financing

Rubicon Minerals Corporation (TSX:RMX)(NYSE MKT:RBY) (Rubicon or the Company) is pleased to report that it has closed its previously announced bought deal financing of 7,060,000 flow-through common shares of the Company (the Flow-Through Shares) at a price of C$1.70 per Flow-Through Share for aggregate gross proceeds to the Company of C$12,002,000 (the Offering). The Offering was conducted by a syndicate of underwriters co-led by TD Securities Inc. and BMO Capital Markets, and included National Bank Financial Inc.

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ATAC Announces Positive PEA Results for the High-Grade Oxide Gold Tiger Deposit, Rackla Gold Project - Yukon

July 23, 2014 - Vancouver, BC - ATAC Resources Ltd. (TSX-V:ATC) is pleased to announce the completion of a positive Preliminary Economic Assessment (PEA) for the oxide portion of the Tiger Deposit located at the western end of the Companys 100% owned Rackla Gold Project, Yukon. The Tiger Deposit was discovered in 2007 and is distinct from the more recent larger scale Carlin-type discoveries located 100 km to the east, which remain the exploration focus of the

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Tuesday, July 22, 2014

Constantine Shares Surge on High-Grade Drill Results from Alaska

Update 1: Please see a new comment inserted into our longer term tracking graph below. Both charts updated to reflect the close on Wednesday, July 23. It looks like initial reaction by the market to just announced drill results from the Palmer project is favorable. (As we can see in the volume candle graph below. By the close of trading Tuesday Constantine had advanced by 35.7%.) The market loves high grade material and this is a good

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Pretivm Prices Offering of Common Shares

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 22, 2014) - Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) (Pretivm or the Company) announced that it has entered into an underwriting agreement today with a syndicate of underwriters, in connection with its previously announced marketed offering of common shares (the Offering).

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Have Central Banks been Breaking the Law?

Jeremy Warner writes for The Telegraph: Quantitative easing has had a reverse Robin Hood-type effect by robbing from the poor and giving to the rich...

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Constantine Reports Significant 150 meter Step-Out Drill Intersection at Palmer Project, Alaska---2.5% Copper and 4.1% Zinc over 22.1 Meters

VANCOUVER, BRITISH COLUMBIA, Jul 22, 2014 (Marketwired via COMTEX) -- Constantine Metal Resources Ltd. (TSX:CEM.V) (Constantine or the Company) is pleased to report results for the first two holes of a 10,000 meter drill program on its Palmer VMS Project, Alaska (Palmer or Project). The initial 2014 drilling has intersected a thick lens of high-grade massive sulphide 150 meters down dip of the lower edge of the South Wall Zone. Garfield MacVeigh, President and CEO states; This

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Global industry stalls as Europe's slowdown threatens recovery

Europes recovery runs out of steam as broker Macquarie warns that China alone cant support global industrial output- Global industrial output growth has stalled, a leading commodities broker has warned, in a chilling reminder of the vulnerability of the economic recovery. According to Macquarie’s survey of 52 leading industrial countries, the world’s factories, mines and utilities increased their year-on-year output by just 3.6pc in May, down from 3.8pc a month earlier.

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Gold - Is This Cold War 2.0? – Frank Holmes

Kitcos set up for this brief video update reads: Kitco News speaks with Frank Holmes to see how he sees gold set up for the coming week. “I think the sentiment is very different,”he says.

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Monday, July 21, 2014

New Gold Miner ETF Avoids Primary Investment in Barrick

Chris Powell writes for the Gold Anti-Trust Action Committee (GATA) and today informs us of a new ETF that excludes a very large, but terribly unpopular mining company. Powell begins: Looks like you can now buy a gold-mining stock exchange-traded fund without putting the biggest part of your money in Barrick Gold, the biggest gold hedger and enabler of gold price suppression, the company that 11 years ago, by virtue of its enormous hedging, claimed to be

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The dollar's 70-year dominance is coming to an end

Within a decade, greenbacks could be replaced as the worlds reserve currency. In early July 1944, delegates from 44 countries gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire. A three-week summit took place, at which a new system was agreed to regulate the international monetary and financial order after the Second World War. The US was already the world’s commercial powerhouse, having eclipsed the British Empire several decades earlier. America was also on course

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Sunday, July 20, 2014

A Few Issuers We Are Watching

A few of the issues we are following closely. // We have been watching this one for an opportunity to increase our stake and this week it finally moved down into what we consider our “wheelhouse.”

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GATA needs help, so please consider buying a T-shirt

Please consider this message from our friend,Chris Powell, of the Gold Anti-Trust Action Committee (GATA), who writes: Challenging all the money and power in the world, GATA long has operated more or less on a shoestring...

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Saturday, July 19, 2014

Nanex ~ 15-Jul-2014 ~ Perfect Pilfering

A detailed exposé on how the market is rigged from a data-centric approach- We received trade execution reports from an active trader who wanted to know why his large orders almost never completely filled, even when the amount of stock advertised exceeded the number of shares wanted. For example, if 25,000 shares were at the best offer, and he sent in a limit order at the best offer price for 20,000 shares, the trade would, more likely

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The Ongoing Rot in the Economy

Eric Sprott, Sprott Asset Manangement LP writes: While most have been conveniently blaming the tepid first quarter -2.9% GDP growth figure on the weather, we believe that it is just another symptom of a much deeper malaise. As we have argued many times before (see, for example, the March 2014 Markets at a Glance), the U.S. economy has been on life support,

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Memo To Yellen: Stocks At 3rd Highest Shiller PE Ever—Not At “Historical Norms”

Pater Tenebrarumwrites for Acting-Man.com: There Could be Some Bubble Risk Somewhere … Maybe …

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Russian Media Goes Far Out to Explain Malaysia Airlines Disaster

Photograph by Dominique Faget/AFP via Getty Images Carol Matlack writes for Bloomberg: A piece of wreckage from Malaysia Airlines flight MH17 is pictured on July 18 in Shaktarsk, the day after it crashed... Russians awoke on Friday to news reports that bumbling Ukrainian troops had shot down a Malaysia Airlines (MAS:MK) jet after mistaking it for President Vladimir Putin’s official plane. Another theory: The Ukrainians intentionally shot down the jet at close range as a “planned provocation.”

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Friday, July 18, 2014

David Stockman Interview On CNBC: Markets Teetering On Edge—-Beware Of Black Swan

Former OMB Director under Ronald Reagan, David Stockman, weighs in, and we mean weighs in heavy with the CNBC Futures Now crew.

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Russia: US sanctions revenge for Ukrainian failure, Moscow may retaliate

Peoples militia soldiers in the occupied village of Marinovka, near the town of Snezhnoye. (RIA Novosti / Andrey Stenin) Russia considers the latest package of sanctions against it issued by the US as revenge for the failure of Washington’s schemes in Ukraine and blackmail. Moscow reserves the right to retaliate.

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The Original
Vulture Speculator

Trading gold, silver and mining shares since 1980 with a focus on taking advantage of volatility extremes, Gene Arensberg analyses the markets through a basket of technical and fundamental indicators and shares his findings from time to time here at Got Gold Report. Mr. Arensberg has been quoted in the Wall Street Journal, Dow Jones MarketWatch, USA Today and dozens of other news organizations.

"I've been a huge fan of Gene and his amazing work for years..."

Brien Lundin, CEO, Jefferson Financial, Host of the annual New Orleans Investment Conference and Publisher of Gold Newsletter


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