Powell Retires The Transitory Term…

December 2, 2021

* Currencies and Silver get sold on Wednesday… 

* Gold hangs onto some of its gains on Wednesday

Good Day… And a Tub Thumpin’ Thursday to one and all! I was so worked up yesterday about what had happened the day before that when I went to the doctor, my blood pressure was the highest it’s been in two years! No worries, it was taken again later, and it was back to normal… And the rest of the visit was normal too, no biggie… I’m glad of that folks, for sure! The nurses were all wishing me a great winter in Florida…  I said, thanks, but I still have to get through this month! I missed going to lunch with my buddy Duane yesterday, as I was at the doctor’s office forever it seemed…  Kathy was decorating the tree yesterday, so I decided to cook dinner… And it was quite yummy! I remember when the kids were young and we all participated in decorating the tree… But since they’ve grown up and out of the house, Kathy gets to decorate it the way she wants it decorated, and I stay away from the proceedings!   On Sirius XM they did a poll of listeners and came up with the TOP 25 greatest listener Christmas Songs, and right now I’m listening to Gene Autry singing Frosty The Snowman…

Well, the goings on in the markets on Tuesday was one for the ages… And we didn’t experience anything like that yesterday, even though the price manipulators in metals were still hanging around, and taking their pound of flesh from Silver…  The dollar basically drifted yesterday, until late in the day when it got moving  higher as the day went on as illustrated by the BBDXY which started the day at 1,181.79, and ended the day at 1,184.30…  The euro remained above 1.13, and the real movement was in the Petrol Currencies of Norway, Canada, Mexico who saw weakness that coincided with the price of Oil dropping daily it seems… 

The Russian ruble gained on the day, as did the Brazilian real…  I would think that their higher interest rates are what’s keeping them from dropping along with Oil…  But if Oil continues to drop, in price, the drop will weigh on these higher yielding currencies too…

Gold found a way to hang onto its early gains yesterday.. At one point in the day Gold was 1,793.20, but had to hang on for its life to show a gain of $6.90, and close the day at $1,782.70… Silver on the other hand has to be wondering what the price manipulators have against Silver! Silver lost 55-cents on the day and closed below $23 at $22.40…  Why on earth are these guys going after Silver like they do? Because they can… 

The price of Oil lost more ground yesterday and trades this morning with a $65 handle… And Bonds got bought again yesterday with the 10-year’s yield dropping to 1.42%…  I have a good comparison of bonds and Gold for you in a bit, but first…

In the overnight markets last night… the dollar got sold to the tune of a couple of figures off the BBDXY, which closed yesterday at 1,184.30, and trades this morning at 1,182.09… I wonder what traders have in mind for the dollar today… there are little grenades ready to be thrown at the dollar on all fronts, but so far the green/peachback has alluded them… So, we shall see… Gold is down $2.70 in the early trading, and in a site that I’ve not seen in a few days, Silver is actually up 15-cents this morning! 

There was news yesterday that the Irish Central Bank made their first purchase of Gold since 2009, when they bought 2 Tons of physical Gold for their reserves… Again I want to point out something that should be pushing Gold to the moon… Central Banks continue to buy physical Gold, and you know what they don’t buy don’t you? Bitcoin or any other cryptocurrency… It’s as if they know that there will be regulation in the future that bans cryptocurrencies, other than the ones that each nation issues… I’m just saying… 

I get so worked up when I hear people say that Bitcoin is a reserve currency…   Oh well, enough of that..

And another thing that should be pushing the price of Gold higher by the day, is a geopolitical problem… The Russian President issued a warning to NATO to not cross their red line in Ukraine… YIKES…  In the past, whenever there were sabers rattling causing geopolitical problems Gold would rise, along with the Swiss franc… 

Gold keeps trying to take off to higher levels, but each time it looks like its ready to take off, it gets whacked back down, by the price manipulators…

The Swiss franc still has negative rates, and that has been holding the franc back… But if the ECB ever gets off their duffs and hikes rates before inflation gets out of hand in the Eurozone, I would think that the Swiss National Bank would follow the ECB’s rate hike with one of their own… I would have to say that in my younger days I would have gone out on a limb and said that an investor should look to buy francs for future movements…   But since 2007, I don’t go out on limbs, don’t climb ladders, and don’t run for my life…  So, take that as you might…

Well, inflation seems to be on the Fed/ Cabal/ Cartel’s minds these days… Too bad they waited several months to acknowledge they were wrong…  Jerome Power said that he thought is was time to retire the term Transitory, and come up with something else to explain their position… 

Well, you know me and how I can be real smart a…  And so I’m going to put on the Smart A.. hat now, and say that Powell, wants to come up some other lie that they can concoct to confuse us, which they been doing for years.. .Remember Greenspeak?  Ahhh, now I see said the blindman as he spit into the wind, it’s all coming back to me now!

Speaking of Inflation, here in the Missouri, our natural gas provider, Spire, issued a warning yesterday that gas prices could be 25% higher this winter…  Well, I guess I’m happy about going to S. Florida for the winter, even more now!

I received this email from the good folks at GATA yesterday, and I’m going to give you the whole email… USAGold’s “News & Views” letter for December examines how the U.S. Treasury bond market is now almost entirely a creature of the Federal reserve, which has been monetizing most of the federal government debt undertaken in the last decade.

Gold, the letter suggests, quoting market analyst Charlie Morris, is a sort of bond itself, and a much more attractive one because:

— It is a zero-coupon because it pays no interest.

— It has a long duration because it lasts forever.

— It is inflation-linked, as historic purchasing power has demonstrated.

— It has zero credit risk, assuming it is held in physical form.

— It was issued by God.

Maybe that’s why governments and central banks feel so obliged to manipulate the gold price — to weaken its competition with government-issued bonds.

The USAGold “News & Views” letter for Dece mber is headlined “The Masters of the Universe and Gold” and it’s posted here:

https://www.usagold.com/nv1036decemberer2021/

The U.S. Data Cupboard yesterday had the ADP Employment Report for November, and while it was weaker than the previous month, it beat the expectations, so it was 6 of one and one half dozen of another…  And the ISM Manufacturing Index came in better than last month’s 60.8, bettering that number with a 61.1 print…

I told you that the powers that be wouldn’t have any of that stuff of a weaker ISM…  I mean, we have a shipping backup, a supply chain disruption, and the great resignation among us, and they expect us to believe that manufacturing plants are running at full steam?  Hey, I was born… Just wasn’t born yesterday!

Today’s Data Cupboard just has the Weekly Initial Jobless Claims… remember last week was a shortened Holiday week, so the number could be really skewed…

To recap… The dollar rallied late in the day yesterday, and so did Gold, but Silver got sold like funnel cakes at a State Fair…  Oil got sold downward again, and for some unknown reason, since David Rosenberg told us the short position close outs had been exhausted, yield should be rising, not falling…  Chuck has a comparison of bonds and Gold for you today…

For What It’s Worth… It was a slow news day for me yesterday, and I was forced to use this article that was Bloomberg.com that highlights Fed/ Cabal/ Cartel head, Mester, talking about her wishes are to taper faster, so a rate hike can be made sooner next year, and it can be found here: Fed’s Mester Open to Faster Taper to Win Space for Rate Hike – Bloomberg

Or, here’s your snippet: “Federal Reserve Bank of Cleveland President Loretta Mester said she is “very open” to scaling back the Fed’s asset purchases at a faster pace so it can raise interest rates a couple of times next year if needed.

“Making the taper faster is definitely buying insurance and optionality so that if inflation doesn’t move back down significantly next year we’re in a position to be able hike if we have to,” Mester said in an interview with Kathleen Hays on Bloomberg Television Wednesday. She said that recent data “have come in supportive of that case, so I’m very open to considering a faster pace of tapering.”

The U.S. central bank is currently set to phase out its asset-purchase program in mid-2022 under a plan announced at the start of November to slow buying by $15 billion a month. But the Fed could vote to accelerate the taper process to curb inflation, which has been accelerating in recent months and has become more persistent than forecasters, including those at the central bank, once expected.

“Right now, with the inflation data the way it is and with the job market as strong as it is, I do think that we have to be in a position that if we need to raise rates a couple of times next year we’re able to do that,” said Mester, who votes on policy next year.

Asked if she favors quickening the taper so it ends in March, Mester said that right now, she would support completing the wind-down in the first quarter or early in the second quarter “given what we know about the economy.”

Chuck again…  So, here’s Chuck’s take on this desire to taper faster… They don’t want to own bonds with low yields when they have to hike rates, for it would cause them to have to book paper losses…  And…. I’m still of the opinion that they will stop tapering long before they get to the end… The stock market is begging for some help once again, and don’t you see Jerome Powell riding in on his white steed to save the stock jockeys?    The Bears say we have Omicron, the Bulls say, we have Powell…  (I saw that on Twitter!)

Market Prices 12/2/2021: American Style: A$ .7100,  kiwi .6808, C$ .7802, euro 1.1342, sterling 1.3321, Swiss $1.0882, European Style: rand 15.8511, krone 9.0770, SEK 9.0548,  forint 319.39,  zloty 4.0527,  koruna 22.4081, RUB 74.00, yen 112.88, sing 1.3672, HKD 7.7931, INR 74.95, China 6.3659, peso 21.36, BRL 5.6345,  BBDXY 1,182.09, Dollar Index 95.86,  Oil $65.40, 10-year 1.42%, Silver $22.55, Platinum $952.00, Palladium $1,828.00, Copper $4.34, and Gold… $1,780.00

That’s it for today… And of course this week… Haven’t the last two weeks gone by in flash? I mean Suddenly the Christmas decorations are going up, and I’m trying to decide when I’ll be heading to Florida this year! I don’t have one gift bought, no wait, I do have some books for my boys, boy will they be excited about that! HA! I heard my new fave Christmas song: Winter Romance again last night, and I looked up the lyrics and sang along…  Another new fave is a song titled: Snowfall… Beegie Adair does that one too! The Big College Conference Championship Games are this weekend, and afterward, we’ll pretty much know who’s in, for the playoffs… Only 4 teams make the playoffs… There’s always a team or two that get’s left out, that thinks they deserve to be in the playoffs… It’s beginning to look a lot like Christmas…  At least around here it is! I’ve switched back to my Pandora Smooth Jazz Christmas station, and the Jack Jezzro Trio takes us to the finish line today with their version of the song: the Christmas Dance…   I hope you can have a Tub Thumpin’ Thursday to day, and please Be Good To Yourself!

Chuck Butler

 

 

 

What The Heck Happened?

December 1, 2021

* Currencies & metals’ rallies get reversed on Tuesday

* Powell throws a cat among the pigeons!

Good Day… And a Wonderful Wednesday to you!… And Welcome to December! It was another game last night where the Blues couldn’t be watched anywhere unless you have ESPN+, or HULU, and since I don’t like to pay for extra stations, I had to settle for listening to the game on the radio… Our Blues won the game 4-3 in a shootout, which I’ll say yet again, is the stupidest way to settle the outcome of a game… I read my latest book, and listened to the game… I was looking for someone to console me after the goings on in the markets yesterday… We’ll get to that in a moment, but first the The David Ian Trio greets me this morning with their version of : We Three Kings…

What the h… happened yesterday?  After hitting send yesterday, I watched Gold climb the ladder to a gain of more than $24 on the day… And then… the spring trap was sprung and Gold ended up down $9.70!    That’s a more than $33 turnaround! Now, don’t even begin to tell me that this wasn’t a case of price manipulation…  How can Gold be the cat’s meow one minute and the next minute be the cat’s litter box, without price manipulation…  Sure there could have been profit taking by short term traders but not to the tune of a $33 turnaround!  No sireee Bob! Can’t happen like that, no way, that dog is not gonna hunt!

And the dollar turned around too.. .at one point yesterday morning the BBDXY was down 8 points! But ended the day still down on the day, but not by much… So, the PPT was in throwing the ESF’s treasure chest of funds, around too… This was a day for the ages folks… the price manipulation of the metals and the dollar were beyond comprehension… I sat there last night, after turning the computer to see how high Gold got, only to be flabbergasted at what I was seeing, and said to myself, “I just don’t think I can take much more of this”…

But that would mean I quit writing, and you know me… I can’t do that! A few months ago I said that I wasn’t going to give the price manipulators any thought any longer… But that didn’t last, and here I am, rock you like a hurricane, no wait! Here I am trying to put the pieces back together after another engineered takedown…  So, don’t worry, I’m not going to quit writing… I’m not going to let these sons of beekeepers win!

For the record, Gold ended up down $9.70 on the day to close at $1,775.80, and Silver ended up down 3-cents on the day, to close at $22.95… The BBDXY which started the day at 1,182.54, ended the day, after being down over 8 points, at 1,182.66…  Oil fell further yesterday, as the fear of lockdowns, no traveling, etc. from the new Omicron variant, has really spooked Oil traders and investors… The price of Oil fell to $67.23…  Stocks fell 652 points in the Dow, and 245 points in the NASDAQ, while bonds finally saw some selling and lost ground on the day.

The thing that everyone was pointing to as the reason for the stock sell off was the flip flop that Fed/ Cabal/ Cartel Chairman Powell made with regards to his outlook for Inflation, and that he will have to move up the timeline for a rate hike…  I get it, he said he was moving up the timing of his rate hike, but he didn’t say to what date, or by how much…  I’m just questioning this as the big mover…

But everyone just needs to calm down here…  When Powell says he will move up the timing of a rate hike, it doesn’t mean that he’s going to turn into Paul Volcker!  Trust me on this one folks, The boys and girls at the Eccles Bldg, will hike rates 25 basis points, and then another 25 basis point, and that’s going to be about it, because…. Well, I’ve been through this many times in the past, and the increases in bond yields means more expensive bond servicing. And since the Fed/ Cabal/ Cartel has basically been THE Bond Market in the past few years, that bond servicing cost increase is all theirs!

And so, then the Gov’t see’s the Fed’s dilemma and decides to turn the printing presses back on, but all that does is fuel inflation higher…   Talk about a rock and hard place….  That’s where the Fed/ Cabal/ Cartel and the Gov’t is right now, folks…

And we’re not talking about rocket scientists calling the shots here folks… We’re talking about our elected officials…  I found this on Twitter yesterday, and it’s a quote from Spike Cohen who  had this to say, “ Government is a collection of some of the dumbest and most dishonest people among us, empowered to make decisions that they exempt themselves from, and pay for all of it by running up debts for the rest of us to pay off” Spike Cohen on Twitter…

On Thursday this week, Dennis Miller’s www.milleronthemoney.com letter will feature an interview with me!  We talk about how it’s going to take someone radical to change the course the country is on…  I say, “they could ask me, but it would be just like when my wife or kids ask me something, and then do the opposite”  I’ve told you this before so this is not a spoiler alert for his letter, but I would 1. Stop deficit spending not in 5 years, not in 3 years, but NOW!  2. Stop currency printing, NOW! No more stimulus, don’t they see what continual stimulus packages have done to the finances of Japan? 

So, if you’re not already a subscriber to Dennis’ letter, visit his website on Thursday, and see what I had to say in response to his questions… again, it’s www.milleronthemoney.com

In the overnight markets last night… The markets leaned toward selling the dollar, and the BBDXY is down to 1,181.79 this morning… Not a huge downward movement, but a downward movement nonetheless. Gold is up $13 in the early trading, and Silver has added a wooden nickel to its price to move back to $23 this morning.  But what difference does it make? The price manipulators will just take that $13 gain and make it disappear in the blink of an eye…  I’m really jaded this morning with regards to the suppression of Gold & Silver…   

In the Eurozone yesterday, they printed their November, Euro area core HICP inflation. And it rose  to 2.63% yoy, sharply above consensus expectations of 2.3% and up from last month’s 2.05% to a new all time high. Meanwhile, headline HICP inflation soared  to 4.88%Y/Y from 4.0%, also well above consensus expectations of a 4.50% print and also a new record high. 

And the timing of that report couldn’t have been better, for the European Central Bank (ECB) meets tomorrow… At the last ECB meeting, President, Christine Lagarde made it clear that the ECB was not going to be fooled by the transitory inflation… I wonder if the ECB has different thoughts now that the Fed/ Cabal/ Cartel has come around to seeing the inflation light?  

The U.S., Eurozone, U.K. and Japan are all in on this debt accumulation Ponzi scheme, and all know that it would be better to allow inflation to rise, but the problem with that is that the citizens of each nation, aren’t participating in this Ponzi scheme, and they are screaming at their representatives  to do something about it or they’ll get booted out at the next election… And so suddenly, Jerome Powell, sees the inflation for what it is, and it’s not Transitory!  I don’t think that Powell would have made this discovery if he hadn’t been getting pressure from the elected officials to do something about the inflation…  I’m just saying… 

The U.S. Data Cupboard yesterday, had the Sept. Case/ Shiller Home Price Index (HPI) and it rose 19.5% from a year ago in Sept… The Stupid Consumer Confidence showed a decline this month from 111.6 last month to 109.5% this month…  I would have thought this data would be much weaker, but we haven’t heard much about end date of the extension to the debt talks that is supposed to end !2/3…

Today’s Data Cupboard has the ADP Employment Report for Nov. , the ISM Manufacturing Index, and Rocktober’s Construction Spending, prints… Not really anything to write home about, unless that is the ISM shows a deep drop, but there’s no way the powers that be will allow that to happen, so we’ll just move along, for these are not the droids we’re looking for…

To Recap…  Chuck used to say this… Jerome Powell threw a cat among the pigeons!  He mentioned that he now sees inflation as a problem and will have to move the timing of a rate hike up… This is what the price manipulators needed to hear, because now they could go in with both barrels blazing and bring to an end the rallies that were going on in the metals and currencies… Chuck talks about all of that, and gives us a sneak preview of his interview that will appear in Dennis Miller’s www.milleronthemoney.com  letter tomorrow… 

For What It’s Worth… This article came to me by way of the good Folks at GATA, and it features someone that I’ve highlighted in the FWIW section previously, Matthew Piepenburg, of Gold Switzerland… Matthew is talking about The Fed’s latest blunder, and it can be found here: From Gold Manipulation to DC’s Latest Lies, Absolute Distortion Continues – Matterhorn – GoldSwitzerland

Or, here’s your snippet: “In a recent report from The Hill, we discover that the Biden advisory team is now accepting that inflation is not only a financial reality (rather than “transitory blip”), but far more importantly (to them), a political problem.

It will come as no surprise to many that politics and politicians are driven by re-election not candid honesty, and certainly not economic expertise or even a rudimentary grasp of financial (or even grade school) history.

Unfortunately for the self-preservation-driven dunces helming our financial Titanic, the math of inflation can no longer be masked with more words.

In short, and given rapidly falling poll numbers, the White House has to rev up its “inflation strategy.”

D.C.’s Comical Inflation Strategy

And if you are hoping it’s going to be an effective strategy, well…please: Don’t hold your breath.

In fact–and we promise that we are not making this up–the Biden administration’s answer to the inflation problem (which is driven and defined by too much money in the system) boils down to this: Spending and creating more money.

Really?

Yes. Really

The economic advisors actually maintain that the new Biden spending package will, “not add to inflationary pressures,” and effectively “pay for itself.”

As I like to say: That’s rich.

If anyone on the White House staff took economics in high school or read a single case-study on prior inflationary cycles, they would know better; but for now, the lords are hoping that the serfs won’t know any better either.

But folks, here’s a spoiler alert: Expanding spending with expanded money creation is the very essence of inflation.

Then again, and as we’ve warned for months, politicians say one thing and mean another.”

No shocker there.”

Chuck Again… Basically the same thing I’ve been telling you, but today you get to hear from someone other than me… And, someone that should be listened to!

Market Prices 12/1/2021: American Style: A$ .7151,  kiwi .6844,  C$ .7847, euro 1.1322, sterling 1.3325, Swiss $1.0856, European Style: rand 15.8189, krone 9.0293, SEK 9.0316,  forint 321.44,  zloty 4.0892,  koruna 22.4859, RUB 74.43, yen 113.33, sing 1.3626, HKD 7.7931, INR 74.86, China 6.3686, peso 21.27, BRL 5.6106,  BBDXY 1,181.79, Dollar Index 95.97,  Oil $69.10, 10-year 1.47%, Silver $23.00, Platinum $961.00, Palladium $1,852.00, Copper $4.37, and Gold… $1,789.20

That’s it for today… I go to see my oncologist later this morning, for the my last time for the next 3 months… Then later tonight I go for my booster… I’m not sure why I’m doing this, it just seemed like the right thing to do, given my weakened immune system…  I have 3 medical appointments this month still to come! They all want to see me before I leave for 3 months! Either that or they will all miss me while I’m gone… I’m betting it’s the former of the two… Today is the end of the Collective Bargaining Agreement in Baseball, which means that a lockout begins today, so that everyone can concentrate on getting a new deal done before Valentine’s Day… If they don’t, then Spring Training will be delayed, setting baseball behind the 8 ball…  I don’t think the fans on the fence for baseball will come back to the game if there’s a delayed start of the season…  I’m just saying… not that anyone from the players union or owners group reads the Pfennig!  They should, but that’s a different story… Fourplay takes us to the finish line today with their version of the song: Have Yourself A Merry Christmas…   I hope you have a Wonderful Wednesday, and please Be Good To Yourself!

Chuck Butler

 

The Dollar Gets Ambushed Overnight…

November 30, 2021

* Currencies & Metals get sold on Monday… 

* Is There a shortage of physical Silver? 

Good Day… And a Tom Terrific Tuesday to you! It appears that we’re in for a week of warmer than usual weather this week… I sat outside to read for about an hour yesterday, it was chilly, but the sun felt warm…  Tomorrow we turn the calendar to December… And with December comes, not only Christmas and New Year’s Eve, but also Chuck’s annual winter vacation! YAHOO! Not to worry, it’s not going to start until December 17th, and will end on December 27… I plan to write my usual Christmas Pfennig, so look for that while I’m on vacation… My wife asked me, how does one go on vacation when they are retired?  Ahhh, grasshopper, I said, I still work every day doing reading and research…  She thought she was being a smarty pants, but I stopped that! HAHAHAHA The Al Daniels Holiday Jazz Piano group greets me this morning with their version of the song: Have Yourself A Merry…

Well, when I left you yesterday, Gold & Silver were up slightly to start the day, but that didn’t take long to end, and the dollar had been bought throughout the night in the overnight markets, and that buying stopped in the U.S. session yesterday… The dollar didn’t get sold either… it did nothing all day, and just drifted on the open ocean… It was a real “nothing” day in the markets that I get giddy about… For the record, Gold closed down $7.30 to end the day at $1,785.50, and Silver closed the day down 21-cents to end the day at $22.98… 

That’s a pretty paltry number attached to Silver isn’t it? What the price manipulators have done to the metals, especially Silver, has been murderous… I don’t use that term lightly, but they pretty much have scared any investor in these metals into either 1. Not buying, or 2. Selling with fear of further drops… I would really like to line these guys and gals up and string them from their toes, and leave them in the cold! But… It’s the Christmas season, so I’m not supposed to have these kinds of thoughts…  But I can’t help myself! I guess some coal in my stocking is in my future, eh?

Stocks rebounded from that huge loss on Friday and Bonds continued to get bought… By whom, is anyone’s guess… Prior to tapering, you could have said that the Fed/ Cabal/ Cartel was behind the buying and you would have been correct most of the time. But supposedly they aren’t in the bond buying mood these days, so who’s buying these bonds at negative “real yield”?  The Treasury’s 10-year yield dropped from 1.54% yesterday morning to 1.50% at the end of the day…  So, what these people are saying is that interest rates in the next 10 years are not going to rise…  Are they crazy?  Disillusioned?   So, what will it be door 1, 2, or 3?   Johnny? Thank you for playing there’s nice parting gift for you at the door!

But wait! We have a Winner! The well respected economist, David Rosenberg, had this to say about the bond rally on Twitter: “Everyone is wondering why Treasuries are performing so great but bond rallies always happen after the net speculative short position gets as high as today – 243k contracts – the sharpest negative bet against the 10-yr T-note since Nov/19. The shorts have exhausted themselves.” – David Rosenberg on Twitter…

So, maybe it wasn’t a lot of bond buying for dummies going on, but short covering instead, which if that is what caused the rally, then yields should turn right around and head higher again soon… But I still contend that there is a lot of bond buying by dummies going on… 

In the overnight markets last night… Well, the dollar has gotten ambushed overnight… The BBDXY, which ended yesterday at 1,187.38, has dropped to 1,182.54 early this morning… The euro is well above the 1.13 handle once again, and Gold is up $10 in early trading… Silver is down another 10-cents this morning…  And there was more bond buying overnight,  with the 10-year’s yield falling to 1.44%…   And I just saw come across the screen that the stock index futures are down BIG… That doesn’t bode well for a stock market rally today… 

It seems that traders and investors are more scared of the Omicron variant than the CDC or WHO… 

In, friend, Dave Gonigam’s 5 Minute Forecast yesterday, he put down a thought on the Fed’s Minutes that were released last Wednesday, so here’s Dave: “The gist was a way-too-late acknowledgment that “Golly gee, inflation isn’t receding in the way we expected a few months ago.” Thus, we’re told some of the Fed pooh-bahs advocated a faster pace of “tapering” back on the Fed’s bond purchases — beyond the $15 billion a month taking place now”

Chuck again… Can you believe that there are still economists that are still saying that we are in deflation and not inflation?  And some that just won’t admit they were wrong about inflation… But admitting you were wrong now, is a lot like the guy who’s main objective was to drain the swamp, but finds himself up to his rear in alligators!

Last week I made a point of saying that I never believed the Gov’t’s explanation of the assassination of President Kennedy… And now I read the Oliver Stone, has made a new documentary about the whole thing…  Showtime, it airing it… I don’t get Showtime, as I’ve said before I don’t like paying extra for stations… Eventually it will be a YOUTUBE, and I’ll watch it then…

Well, there’s nothing to fear here folks, the medical people tell us that the new COVID Variant, Omicron, isn’t to be feared ala the Delta variant…  Now, they’ve got me worried… Because it was these same people that told us in March 2020, we would flatten the curve with the shut down in two weeks…  UGH!  OK… the markets seemed to be over their worry about the variant, but then they’ve been over it since the Fed/ Cabal/ Cartel started their stimulus, and the Gov’t began sending out stimmy checks…   But that was yesterday, today, it seems the variant is on the market’s collective minds… Hmmm..   C’MON pick a lane! 

Oh, and one more thing about Silver… The U.S. Mint announced that the minting of the Silver Eagles for 2021 was complete… To that, Ed Steer, had this to say in his letter today, “Well, dear reader, this is awfully early for them to be cutting off yearly production.  Normally it ends about ten days or so into December. But with physical silver in such short supply, I’m sure that the order came down from someone inside the U.S. Treasury to put a stop to it early…” – Ed Steer

And that, my friends is a great example of the price manipulation, and we can go back to high school economics… Shortages = price increases… But what has Silver done lately? It’s gotten sold… nearly every day… I know I’ve shared this with you before, but it’s so appropriate here… My dad taught me long ago, that there’s no such thing as a shortage, it’s merely something that’s in need of a price adjustment….  So… when’s the price adjustment upward coming for Silver?  Only the Shadow Knows…

The U.S. Data Cupboard is still pretty empty today, with just the Case/ Shiller Home Price Index (HPI), and the stupid Consumer Confidence report this month…  I expect that the HPI will continue to show increases…  Remember what I told you yesterday, that the brunt of the data prints will come at the end of the week, with a Jobs jamboree… which right now has a forecast of 581,000 jobs created in November… 

To recap… The dollar did little yesterday, as it didn’t get bought or sold, and ended the day up only because of the upward move in the overnight markets… Gold & Silver were sold once again, there’s just no safe days for the metals from the price manipulators…  Chuck goes bananas on bond buyers only to learn that the bond buying was short covering, per David Rosenberg… And the markets shrugged off the new COVID Variant, Omicron… Doesn’t that just make you a little nervous, considering how wrong the authorities have been with all of this? In the overnight markets the dollar got sold Big time, and stock index futures are down BIG this morning, so maybe, just maybe, someone is scared of the new variant! 

Before we head to the Big Finish today, longtime readers know how I feel about education in colleges today…. And it has filtered over to our evening news programs… The Battle as I see it going forward in the U.S. is going to be between those who learned how to think versus those who were taught and dutifully learned what to think, with the latter of the two combatants coming from today’s colleges, and probably High Schools now too…  My oldest son, Andrew, is a high school educator, and he tells me that in his school, they still require kids to think on their own…  My daughter, Dawn, is a kindergarten teacher, so she doesn’t have to deal with anything but the ABC’s and teaching kids to keep their hands to themselves!

I really do feel badly for these youngsters that have had someone else do their thinking for them… Sure, they thought that was a good deal, the less they had to worry about, but they didn’t what they didn’t know was that their ability to think for themselves, and call out things that are wrong, never came to them… So, now they watch the news, listen to their professors and act accordingly…  These, youngsters are tomorrow’s leaders, unfortunately!

For What It’s Worth…  Egon Von Greyerz, and Ronni Stoeferle, sit down to discuss Gold’s position in the future of finance… Of course I’ve explained over the years that Gold is a store of wealth, but it may be become even more than that considering all the rot on the world’s vine right now. Part 1 of this article can be found here: Part I: All Taboos Broken—von Greyerz & Ronni Stoeferle Discuss Gold’s Role in a Changing Financial System – Matterhorn – GoldSwitzerland

Or, here’s your snippet: “As two of the world’s leading authorities on precious metals, von Greyerz and Stoeferle offer invaluable insights on the key issues related to precious metal investing in the backdrop of central-bank-driven market forces.

Egon and Ronni discuss their individual journeys toward recognizing the timeless, paramount, yet oft ignored, role that gold plays in intelligent wealth preservation and risk hedging in a market landscape that is becoming increasingly centralized. As Ronni observes, real capitalism requires failure, or what the Austrian School of Economics would describe as “constructive destruction.” Today, however, central banks have “broken all taboos” to provide instant liquidity whenever the market begins to crack.

Such “support,” which will likely include direct equity purchases and yield-caps by central banks, can buy markets more time, but such measures only make the end result far more perilous. As Egon reminds, the recent “Fed taper” was essentially a “fake taper.” Whether that is understood by the markets, however, is another matter, and Ronni discusses the risks and optics of “tapering” into a weak economy.

As for rate discussions in the backdrop of rising inflation, each discuss the conundrum central banks have placed themselves. The bottom line: It’s too late. There is no way to have a “Volker-like” rate hike in a world saturated in debt. A re-set of the monetary system is thus historically inevitable. This transition phase makes gold ownership essential. Ronni Stoeferle strongly believes that gold will play a monetary role again.

As to currencies, Egon bluntly addresses the central bank failure in allowing global debt levels to surpass $300T. History confirms the currency debasement needed to “cover” that debt points to gold.

As monetary policies reach an exhaustion point, fiscal policies (i.e., deficit spending) are becoming the newest drug for hubris-infected political actors forever seeking to outlaw recessions. All these stimulus packages, of course, require money, most likely to be in the form of CBDC. This raises numerous civil and economic concerns, as central bank money increases central bank controls over individual spending.”

Chuck again… Yes, I know the snippet is very long today, but the article is even longer, and I wanted to get it in the letter as much as I could!   Check out the link above for more very intellectual and well thought out discussion between these two gentlemen…

Market Prices 11/30/2021: American Style: A$ .7133,  kiwi .6822, C$ .7825, euro 1.1355, sterling 1.3345, Swiss $1.0893, European Style: rand 16.0413, krone 9.0565, SEK 9.0605,  forint 323.17,  zloty 4.1172,  koruna 22.4921, RUB 74.74, yen 112.89, sing 1.3668, HKD 7.7971, INR 75.05, China 6.3845, peso 21.61, BRL 5.5837,  BBDXY 1,182.54, Dollar Index 95.76,  Oil $68.25, 10-year 1.44%, Silver $22.88, Platinum $952.00, Palladium $1,892.00, Copper $4.38, and Gold… $1,795.80

That’s it for today… Well, I guess having an undefeated season so far this year, doesn’t mean you get to play the tournament’s games at home! The St. Louis Univ. Billikens soccer team will have to travel next to Washington to play in the Semifinals…  UGH! Our Blues play the first of a home and away series with Tampa Bay tonight… They play 82 regular season games, and have 32 Teams, I really don’t get why they have to play back-to-back games…  Lots of birthdays in the month of December, I hope I can remember them all… There’s one I know I won’t forget, and that’s Kathy’s Birthday, which is the day after Christmas!  And then once Christmas is over, it’ll be time to head south for the winter… I’m ready to go now! And it’s not even as cold as it could be! Jack Jezzro and Friends take us to the finish line today with their bossa nova sounding version of the song: Toyland… I hope you have a Tom Terrific Tuesday, and please Be Good To Yourself!

Chuck Butler

 

The Dollar Buying Continues…

November 29, 2021

* Currencies & Gold rally on Friday in thin volume… 

* The Dollar Tree is now the $1.25 Tree… 

Good Day… And a Marvelous Monday to you! I trust you all had a very Blessed Thanksgiving? I did, and enjoyed seeing everyone once again… I was sad to hear that son Andrew, and his family, which includes my little Evie, would not be with us this year, at it was the year where they went to his wife’s (Rachel) mom’s for Thanksgiving… And that brought me back to old memories of the arguments Kathy and I used to get into about who’s house we would be going to on Thanksgiving…  But those all ended, thankfully, when I decided that we would host Thanksgiving at our house every year, and from then on… things have gone beautifully!  Silly things, that aren’t worth arguing about, eh? I made a typo error on Wednesday last week, I mentioned that I loved the song Winter Romance by Beegie Adair, but I typed Adams… UGH!  Well, she’s playing again this morning, her version of the song: Little Drummer Boy

Well, when I left you last week on Wednesday, the dollar was kicking tail and taking names later, and there appeared to be nothing to stop it.. .The BBDXY  on Wednesday closed at 1,190.43 up a lot from the beginning of the week… I had mentioned on Wednesday that the Datapalooza which took place on Wednesday could spell the end of the dollar buying…  Well, it took a day for that to happen, and on Wednesday it appeared that I was barking up the wrong tree… But after Thursday’s non-event market goings on, because of the U.S. Holiday, Friday came along, and PFFT, went the dollar buying.. So maybe Chuck was right, and it just took a days for it to come to fruition…  But probably not… Because there was something afoot in the markets on Friday… So, let’s go to the tape!

On Friday, with the markets pretty thin, as most senior traders were taking a 4 day holiday weekend, there came news that a new COVID Variant “Omicron” was spreading in S. Africa, and the markets went bananas… Stocks got sold like funnel cakes at a State Fair, Oil got sold down by $10, the biggest one-day drop since spring of 2020… The cryptocurrencies got sold,  and…. The dollar got sold…  The scare in the markets really pushed investors to run to bonds, which is just stranger than fiction to me, because who wants a bond that’s paying negative yield when you count inflation… But to each his own, right?  

Gold was bought on Friday, in some very thin volume, and ended the day up $3.40 to end the week at $1,792.80… Silver just can’t find a bid anywhere these days folks… the common man’s Gold ended the week at $23.19. 

The currencies, by virtue of the dollar selling found a rally deep inside the trading pits, with the euro finding its way back above 1.13… I don’t know if it’s time to come out, come out, wherever you are, like the good witch, Glinda, said to the munchkins, but this week will tell us if that is to be or not… But at least a tourniquet was wrapped around the bleeding currencies on Friday…  And there’s not much in the way of real economic data this week, until we get to Friday, so let’s see how the dollar fares…

In the overnight markets last night… Well, it appears to me that Friday’s trading was simply a case of light volume, and no real trading taking place, as the the dollar buying was reignited in the overnight markets last night.. The BBDXY rose to 1,1187, and the euro fell back below 1.13…  It will be interesting to see how the markets here in the U.S. feel about the Omnicron variant…  

The price of Oil rebounded a bit overnight, after taking on the selling that brought it down over $10 on Friday, Black Gold, Texas Tea, is up $3 and trades with a $71 handle this morning…  The selling of the S. African rand on Friday, due to the news of the new variant in their country,  and then again last night has been something to see… and not something good!  The Treasury’s 10-year yield has dropped to 1.54%, from last Wednesday’s 1.66%.. So, bonds were bought by the truckload, folks… 

Speaking of buying bonds… The Fed/ Cabal/ Cartel’s tapering does the exact opposite of buying bonds, and I’ve argued that I don’t see how the knuckleheads at the Eccles Building will be able to stay on the tapering course for too much longer…  And I’m not alone in that thought… I was scanning Twitter yesterday, and saw this quote from Stephanie Pomboy, of whom I really hold in high regard, for her knowledge of the markets and data… So, she was saying that she would wager a bet that the Fed will have to stop its tapering before they get to the end…    

There was also a point that she made about Retail Sales, which last week showed a rise of .9% in Rocktober… She said, that rise was brought on by higher prices, not increased sales…  Great Point! 

Ok… A couple of things that took place last week, while we stuffed ourselves with goodies… Dollar Tree, which has sold things for $1 for over 30 years, is raising their price to $1.25… Not that it’s the end of the world, just symbolic… But just shows to go ya, that inflation is hurting the common person, and not the elite… 

And this one really tore at me… I want to make this clear… I do NOT believe in tearing down statues to men that were an integral part of our history…  And so I was so distraught and angry when I read that in NYC they took down a statue of Thomas Jefferson…   Shame, Shame, Shame… 

And thanks to Tom Woods, who posted this in his letter on Friday, it’s a little history on Thomas Jefferson: “ Thomas Jefferson co-sponsored a 1769 bill to abolish slavery in Virginia, wrote the first draft of the law that banned slavery from the Midwest, called for and signed the law that abolished the international slave trade, wrote the most influential antislavery book in American history, drafted a bill (which failed by one vote in Congress) that would have banned slavery from most of today’s Deep South, and wrote the part of the Declaration of Independence that says “all men are created equal”

These people that think that they know all, and take down statues, make me sick… And that’s all I’ll say about that!

And finally… The St. Louis Post Dispatch ran an article on Thanksgiving showing the restaurant ads for Thanksgiving dinner in 1972….  You could get a full Turkey dinner with stuffing and all the trimmings and a piece of pumpkin pie, for…..  The whopping amount of $3.25…   We’ve come a long way from those days, now haven’t we? These days you probably wouldn’t be able to buy a slice of pumpkin pie for $3.25…  

I have some info on the new variant that spreading in S. Africa and how it affected the markets on Friday in the FWIW section today, compliments of Ed Steer… 

On Friday of this week we will hold the Jobs Jamboree for November… And I guess we have to count the seasonal workers for the Christmas shopping season in these numbers, but the thing I can’t get my arms around is the gigantic jobs creations each month, when on the other hand they are calling this the “Big Resignation”, with people quitting jobs left and right, and businesses having to close or shorten hours because they can’t find workers…

Like I said above, this week’s Data Cupboard is pretty empty most of the week…  Like today’s offering is just the Pending Home Sales report… Nothing to write home about for sure…

To recap… The dollar buying stopped on Friday, as a new COVID Variant spread throughout S. Africa, and spooked the markets with stocks getting sold, Oil getting sold, and the dollar getting sold… Investors bought bonds, for some reason unknown to the well educated, and Gold found some buyers in very light volume… Chuck goes out and puts some things down that are bothering him, and are you ready for a Jobs Jamboree?

For What It’s Worth… OK, I told you that I took this from Ed Steer’s letter, and it’s a blog posted by Doug Noland, of whom Ed thinks highly of, and so that means I do too!  This article about the Omnicron variant’s effect on the markets can be found here: Credit Bubble Bulletin : Weekly Commentary: Black Friday

Or, here’s your snippet: “I posted a link Thursday morning to a Bloomberg article, “New Coronavirus Variant a ‘Serious Concern’ in South Africa.” The seemingly small outbreak generated minimal media attention. Within 24 hours, however, global markets were in a tailspin, with Crisis Dynamics gaining critical momentum. The World Health Organization Friday in an emergency meeting designated the new B.1.1.529 – “Omicron” – a “variant of concern.”

Market reaction was swift and, in many cases, brutal. Pundits suggested panicked markets were overreacting. There is as yet no evidence of more severe symptoms from Omicron, and South Africa’s early recognition and communication offer the possibility of more successful global containment efforts. The U.K. and European Union moved quickly to restrict travel from South Africa, followed by Singapore, Japan, the U.S., Canada and others.

Once again, the wily Covid virus boasts ghostly timing. Omicron barges in with de-risking/deleveraging and global Crisis Dynamics attaining pivotal momentum. And with contagion rapidly enveloping the emerging markets (EM), disaster strikes for the vulnerable South African domino already in line for trouble.

The South African rand this week sank 3.4%, increasing 2021 losses to 9.8%. South African 10-year yields jumped 19 bps Friday (high since April 2020), boosting the week’s yield spike to 43 bps. South African CDS Friday surged 25 (43 for the week) to 252 bps – the high since March.

An index of EM CDS surged 19 Friday – the largest one-day rise since September 2020 – to 221 bps, the high back to October 2020. EM CDS surged 34 for the week, the biggest weekly gain since September 2020. Friday saw sovereign CDS surge 17.5 in Brazil to 268 bps (high since June 2020), 17.5 in Colombia to 218 bps (May 2020), and nine in Chile to 99 bps (May 2020). For the week, CDS jumped 26 bps in Brazil, 32 bps in Colombia, 27 bps in Mexico, and 11 bps in Indonesia.

The last thing Turkey needed was a stiff forearm shove toward a full-fledged financial and economic crisis. The Turkish lira sank another 2.8% Friday, pushing losses for the week to 8.9% – for the month to 22.1% and for 2021 to about 40%. Turkey’s 10-year (lira) yields spiked 80 bps this week, trading above 20% for the first time since May 2019. Turkey CDS surged 28 Friday (58 for the week) to a one-year high 504 bps. For a country with a population of 84 million – that saw living standards and expectations inflate right along with its Credit Bubble – the collapse is turning increasingly desperate.

Mexico is another key EM domino – with self-inflicted wounds placing it directly in the line of fire.”

Chuck again… Yes, I read this past weekend that Turkish citizens are dumping their currency and using U.S. dollars instead…  That to me is like jumping from the frying pan into the fire, but like I said above, to each his own…

Market Prices 11/29/2021: American Style: A$ .7147,  kiwi .6817, C$ .7852, euro 1.1289, sterling 1.3346, Swiss $1.0814, European Style: rand 16.1676, krone 9.0508, SEK 9.1148,  forint 326.56,  zloty 4.1605,  koruna 22.7419, RUB 75.40, yen 113.58, sing 1.3685, HKD 7.7993, INR 75.00, China 6.3920, peso 21.87, BRL 5.6083,  BBDXY 1,187.22, Dollar Index 96.20,  Oil $71.68, 10-year 1.54%, Silver $23.34, Platinum $977.00, Palladium $1,868.00, Copper $4.39, and Gold… $1,794.30

That’s it for today… Congratulations to the St. Louis University Billikens soccer team, who have advanced to the Quarterfinals of the college soccer tournament.. . They had to travel to Duke and play the Blue Devils, but they prevailed 4-3… And remain undefeated this year!  Saturday’s college football games were something for sure! Very exciting games, and a spanner was thrown into the works of the college playoff committee…  I attended a “Movember Party” on Saturday… It was a fundraiser for Prostrate Cancer… Thanks for the invite Duane and Dane!  Well, we turn the calendar over to a new month on Wednesday… My most disliked month will come to an end, thankfully!  We had another couple of days of warmer weather this past weekend, so my dislike of cold weather is getting a break… Rosemary Clooney takes us to the finish line today with her version of the song: Let It Snow… . and that reminds me of one of my fave movies of all time: White Christmas…  Ok, I hope you have a Marvelous Monday today, and please Be Good To Yourself!

Chuck Butler

 

The Reserve Bank Of New Zealand Hikes Rates!

November 24, 2021

* currencies & metals get sold again on Tuesday

* The Aden Sisters drop by the Pfennig today… 

Good Day… And a Wild, Wacky, Wonderful Wednesday to one and all! We’ve been in a very strange weather pattern lately, where for a couple of days it warms up so it’s not so chilly, and then it goes right back to being bone chilling chilly! Yesterday and today, are the designated warmer days this week, before we head back to the cold… Longtime readers know that I abhor cold weather, and it’s the main reason I spend my winters in S. Florida… Tomorrow is Thanksgiving, and I will give thanks once again for living in the U.S.A. We may have our problems here, but… People all over the world would love to live here, so apparently their problems are worse! Our Blues play the Detroit Red Wings tonight… Man, these games used to be barn burners…  But with the game the night before Thanksgiving, I’m sure the boys will be very gentlemanly tonight! HAHAHAHA! As if! Given all the rough play of a hockey game, have you  ever wondered what determines a “Roughing penalty”?  HA!  Chris Botti greets me this morning with his version of the song: The First Noel

So… tomorrow is Thanksgiving, and the official Christmas season will begin… I’ve been listening to Pandora’s Smooth Jazz Christmas station for 3 weeks now, so my Christmas season began then! And remember when I said that the talk of a shortage of Turkeys this year was Malarkey?  Why do people and media continue to hype things to scare people?  Oh well… Thanksgiving is a time when families and friends get together and count their blessings… Last year my family went around the table with each person saying what they were thankful for… When it was my turn, I said, “I’m thankful that the Good Lord has allowed me to live, so that I can be here with all of you”…

I’m really not into talking about the manipulated markets today, folks… so this is really going to be more about the things I’m thankful for, that are on my mind… But first, I will say that Gold got smacked around the head and shoulders again yesterday, and then I received a note from my publishers, the wonderful Aden sisters, Mary Anne and Pamela, and this is what they had to say about Gold’s recent downturn…

“The gold universe had a sharp fall this week, which was a big surprise. Why? Because it doesn’t make sense at all… All of the fundamentals are bullish for gold, silver and the shares, including the massive spending and debt inflation, greater demand and much more. The main reason given for gold’s decline was the reappointment of Jerome Powell as Fed head. But that’s ridiculous. Powell’s easy monetary policies have been very bullish for gold. We believe this is going to continue.

If so, then this decline will end up being an aberration. That’ll especially be true if gold holds near its current levels, which is a strong support level, and then heads higher. We’ll soon see what’s next, but the days ahead will be important for all of the metal sectors.” From the Aden Forecast…

The dollar continues to be on a rampage VS the currencies, and there’s no stopping it right now…  The BBDXY which began the week at 1,179.41, ended the day yesterday at 1,186.63… And the old Dollar Index, which hasn’t seen 100 in many years, continues its march toward 100…

The price of Oil shrugged off the news of 50 Million barrels of Oil being released from the Strategic Reserves, and gained about $2 on the day… I had a dear reader send me a note and tell me that in the whole scheme of things 50 Million barrels is a drop in the bucket and won’t change prices of gas…  So, like I said yesterday, this was a symbolic gesture by the POTUS, and nothing more…

In the overnight markets last night, the dollar continued to be bought, and we start today with the BBDXY at 1,188.35, so up some more… Gold and Silver are down again in the early trading today… My spider sense is tingling that today’s data in the U.S. could very well spell the end of the dollar buying, but I guess we’ll have to wait-n-see, eh? 

And the Reserve Bank of New Zealand / RBNZ, hiked rates again last night, marking their second rate hike in the last 3 months!  I once coined the phrase “Prudent Central Bank”, and the RBNZ was a part of that group, but in the last few years, with all Central Banks going to zero interest rates, buying bonds, and stimulating their respective economies, there were no more “Prudent Central Banks”… But The RBNZ appears to be re-applying for membership!  Way to go RBNZ! You Rock!

Please make sure that you tell at least one person tomorrow: Happy Thanksgiving…  No Happy Holidays, or any other bunk…  There’s no religion to this day, so go ahead and say: Happy Thanksgiving!

In our local newspaper yesterday, was this ditty… “A Missouri judge has stripped local health departments of their ability to issue orders designed to keep people safe during a pandemic.

In a case involving a St. Louis County restaurant owner, Cole County Circuit Judge Daniel Green said all health orders related to the spread of COVID-19 in the state should be lifted because they violate the state constitution’s separation of powers clause affecting the executive, legislative and judicial branches of government.”

I was always of that thought that they couldn’t tell businesses they had to close in this situation… Looks like I was correct, once again! HA

I just glanced at my wall board of pictures, and focused on one picture… It’s a picture of the World Markets Group that was once together at EverBank… In the picture Aaron Stevenson, Mike Harrell, Chris Gaffney, Ty Keough, Tim Smith, Antione Lawrence, Dane Moody, Christine Peplow,

Jen McClain, Mike Meyer, and Chuck Butler…  Now that was a great group of people to work with, and I am thankful that I got to know each and everyone of those folks, for they enhanced my life and made going to work each day a joy…

I’m thankful for my wife of 45 years.. That’s a long time folks, and while the last 15 have been very difficult for us, we’ve weathered the storms, and she has been a real trooper for me when I was in the depths of my cancer…

I’m thankful for my kids, Dawn, Andrew and Alex… and their partners, Jerry, Rachel, and Grace… Each of my children have carved out their careers in different ways, and all are successful. They love each other’s company, and we all get along great when together… I love spending time with each of them whenever I get the opportunity to do so.

I’m Thankful for my grandkids… The first grandkid, and the sweetest, Delaney Grace… Everett who turns 11 this week, and Braden who’s 10, are growing up to be fine young men, and then there’s little 2 year old Evie… It’s so much fun to have a little one around the house this time of year!

I’m thankful for my friends…  I’ve gone through quite a few friends through the years… But one constant friend, Mike Karvas, has been there since the 2nd grade… I worry about him, he worries about me, and still here we are! There are a plethora of names that are too many to mention each one, but I want them all to know that I’m a better person because of knowing them…

I’m thankful for my siblings… There were 7 of us to start, and only 4 remain… I miss my sisters, Brenda and Barbara, and brother David…  I trust they are in better places right now, while the remaining Butlers, Chuck, Terri, Joanie, and Mike continue to get through life, without them in our lives… I’m really thankful that I did get to spend meaningful years with them before their respective passing…

I’m thankful for you dear reader…  without you, what would I do? Talk to myself? I am so grateful that many of you dear readers have stuck with me from the beginning…  After reaching 20 years of writing the Pfennig in 2012, I signed baseball caps and sent them to the readers that had been with me those 20 years… I hope you still have those caps! They’ll be worth something someday… Well, probably not, but it was fun thinking that they would!

I’m thankful for the Aden Sisters, who were so kind, and gracious to pick me up when I was kicked to the curb, and offered to publish the Pfennig… They have been behind me all the way, and for that I’m Thankful!

And finally, like I said above: I’m thankful that the Good Lord has allowed me to live so that I can be here with all of you! 

And that brings me to the Datapalooza today… I warned you on Monday of this week that today would be a door busting day of data…  Personal Income and Spending, Core Inflation, Durable and Capital Goods Orders, and the Weekly Initial Jobless Claims, are the headliners, with other minor data prints also on the docket today…  I’m thinking that today, ends the dollar’s run to higher ground…

To recap… The dollar continues to kick tail and take names later while the anti-dollar assets get sold down the river… Gold got shellacked again yesterday losing the $1,800 handle once again, as it lost $14 on the day, and Silver dropped 53-cents on the day… Gold closed at $1,790.70 and Silver at $23.74…  The Aden Sisters take part in the Pfennig today with a quote from their excellent newsletter: The Aden Forecast.  And Chuck goes through a list of things that he’s thankful for on this day before Thanksgiving…

For What It’s Worth…  I’m straying from the normal FWIW Articles today, and going with some history/ Tradition that I love… You can find this whole article here: Thanksgiving 2021 – Tradition, Origins & Meaning – HISTORY

Or, here’s your snippet: “In September 1620, a small ship called the Mayflower left Plymouth, England, carrying 102 passengers—an assortment of religious separatists seeking a new home where they could freely practice their faith and other individuals lured by the promise of prosperity and land ownership in the “New World.” After a treacherous and uncomfortable crossing that lasted 66 days, they dropped anchor near the tip of Cape Cod, far north of their intended destination at the mouth of the Hudson River. One month later, the Mayflower crossed Massachusetts Bay, where the Pilgrims, as they are now commonly known, began the work of establishing a village at Plymouth.

Throughout that first brutal winter, most of the colonists remained on board the ship, where they suffered from exposure, scurvy and outbreaks of contagious disease. Only half of the Mayflower’s original passengers and crew lived to see their first New England spring. In March, the remaining settlers moved ashore, where they received an astonishing visit from a member of the Abenaki tribe who greeted them in English.

Several days later, he returned with another Native American, Squanto, a member of the Pawtuxet tribe who had been kidnapped by an English sea captain and sold into slavery before escaping to London and returning to his homeland on an exploratory expedition. Squanto taught the Pilgrims, weakened by malnutrition and illness, how to cultivate corn, extract sap from maple trees, catch fish in the rivers and avoid poisonous plants. He also helped the settlers forge an alliance with the Wampanoag, a local tribe, which would endure for more than 50 years and tragically remains one of the sole examples of harmony between European colonists and Native Americans.

In November 1621, after the Pilgrims’ first corn harvest proved successful, Governor William Bradford organized a celebratory feast and invited a group of the fledgling colony’s Native American allies, including the Wampanoag chief Massasoit. Now remembered as American’s “first Thanksgiving”—although the Pilgrims themselves may not have used the term at the time—the festival lasted for three days.”

Chuck again…  Norman Rockwell’s Thanksgiving painting is a favorite of mine, and illustrates what Thanksgiving means to so many Americans… I’m so glad I got this opportunity to share with you today what I’m thankful for…

Market Prices 11/24/2021: American Style: A$ .7205,  kiwi .6892, C$ .7874, euro 1.1214, sterling 1.3361, Swiss $1.0681, European Style: rand 15.8741, krone 8.9277, SEK 9.0837,  forint 328.79,  zloty 4.1733,  koruna 22.7242, RUB 74.77, yen 115.12, sing 1.3675, HKD 7.7968, INR 74.39, China 6.3883, peso 21.25, BRL 5.5886,  BBDXY 1,188.35, Dollar Index 96.74,  Oil $78.49, 10-year 1.66%, Silver $23.50, Platinum $983.00, Palladium $1,957.00, Copper $4.47, and Gold.. $1,786.20

That’s it for today, and this week…  So, will you be participating in the Black Friday sales? Our old EverBank office shared a parking lot with two major big box retailers, and there were times in the past when on Black Friday, parking was a madhouse… At least that’s what they would tell me, since I stopped working on the day after Thanksgiving many years ago! I guess most buying these days is done online.. I mean that’s where I go to buy things, but I have different circumstances… I love the food on Thanksgiving, but I especially love pumpkin pie with whipped cream!  And I love a turkey sandwich at the end of the night! I remember when the turkey we got on Thanksgiving would be the only turkey we would have all year! Now I eat turkey nearly every day!  So, onto Thanksgiving… Beegie Adams takes us to the finish line today with her version of the song: Winter Romance… I’ve got to say that this is one of my new fave Christmas songs… I hope you have a Wild, Wacky and Wonderful Wednesday today, and that you have a VERY Blessed THANKSGIVING tomorrow, and please Be Good To Yourself!

Chuck Butler

 

 

50 Million Barrels Of Oil Released From Strategic Reserve…

November 23, 2021

* Currencies & metals get sold with vigor on Monday

* $152 Million in fines levied to the Bullion Banks, and still… 

Good Day.. And a Tom Terrific Tuesday to you! Well, have you taken your frozen turkey out of the freezer and transferred it to the fridge to begin the thawing? What are you waiting for?  I kid, I have no idea when that all is supposed to take place or go in order… All I know is that at some point Thursday afternoon, I’ll get called to come carve the turkeys… And that’s my contribution…. That and drinking a bottle of wine with dinner! HA!  Our Blues got back on the winning side of the ledger last night with a win VS Vegas…  On Wednesday and Friday, the Blues play the Red Wings and Blackhawks respectively… Before the realignment these teams were major adversaries for the Blues… Major fights, crazy games, etc. But now they play each other twice a year if that… The Stephen Kummer Trio greets me this morning with their version of the song: A Few Of My Favorite Things…

And one of those favorite things would not include the boys in the band showing up at the COMEX with arms full of short Gold paper trades…  Hearing that $152 Million in fines had been levied against the boys in the band (price manipulators) most definitely IS one of my favorite things to hear about!  But unfortunately, yesterday was the former of the two scenarios above… A slow day to start, soon became a monster of all selling days… Gold was sold by $40.50 yesterday, and spent the day searching for a bid, but never found one… Gold closed the day at $1.805.50

Silver lost a boat load of value too, losing 40-cents on the day, and falling to $24.26 to close the day… The news from Peru didn’t help matter either, as it was learned that Peru had  moved to close two of its mines on environmental grounds, deepening a clash between the mining industry and the left-leaning government….  C’mon can’t we all just get along? 

The dollar which didn’t have any data prints to illustrate the dollar’s problems yesterday, was on a roll early and often throughout the day… The BBDXY which began the day at 1,179.41, closed the day at 1, 184.86…  So, last night when I saw the BBDXY upward movement I immediately went to the currency screen, and believe it or don’t, but I couldn’t find one currency that was weaker VS the dollar any worse than what they started the day!  In fact, last night, the currencies were trading in the same clothes as they had on to start the day.  But, then I went to a different source and found that the Bloomberg quotes hadn’t updated! UGH! I almost fell for that one! 

So, in reality, the BBDXY did tell the correct story, and the currencies were chopped up by the dollar…  I told you last week that I feared that a battening of the hatches was in order, and I sure was bang on with that thought! 

In the Overnight markets last night… there was more dollar buying, as the BBDXY this morning is 1,185.47… And the currencies certainly are reflecting this strength of the BBDXY…  The dollar is the cat’s meow right now, folks…  I don’t get it one iota, but… it is what it is, and there’s nothing I can do about it, so I’ll just move along in the letter now… 

OK, back to the price manipulation in the metals yesterday… Longtime readers know that I’ve said this on more than 10 occasions, and that is… If enough physical demand is made on the COMEX, then the short paper trades will stop… But not until then, no matter how many Millions the price manipulators are charged for rigging metals prices, will they stop…  But you don’t have to just take my word on that, for here’s GATA Chairman Bill Murphy : “Amid explosive inflation in most assets, gold and silver are down for the year, GATA Chairman Bill Murphy notes in an interview today with GoldSeek Radio’s Chris Waltzek. But, Murphy adds, eventually demand for real metal will overwhelm the derivatives being used to suppress metals prices.”

The radio interview, should you want to hear all of it, can be found here:

https://goldseek.com/article/goldseek-radio-nugget-bill-murphy-physical-demand-will-inevitably-overwhelm-paper-shorting

One of these days, Alice! To the Moon!  Well, that’ll be what I say when Gold finally frees itself of all the short paper trades…  

Alrighty then, onto to something else… Oh, this is a good one folks… better strap yourself in for this one… The President told reporters that the new deficit spending bill, will not cost anything… He said that folks, I kid you not!  And he also contends that the additional debt will not cause any rise in inflation…  And somehow the gov’t tends to think that this $2 Trillion, which will probably be $5 Trillion over time, is going to do something  for the economy that the previous $5 Trillion that has been shelled out to the economy since 2019, hasn’t done…

And oh brother are there being games and gimmicks being played on the wording of the bill… Here’s the Wall Street Journal’s explanation of one of the gimmicks…

“The current $10,000 limit on the state-and-local tax (SALT) deduction increases to $80,000 through 2030. In 2031 it would return to $10,000. Penn Wharton says this gimmick would lead to $65 billion in additional tax revenue through 2031 though it would cost about $300 billion through 2025.”

Makes it all clear right? Clear as mud! And that’s the point of the wording to confuse everyone so that we don’t know what it is they are spending our tax dollars on, for if economists can’t figure out, how in the hell is anyone down on main street going to figure it out?  In my best Gomer Pyle voice, Shame, Shame, Shame…

This news just printed, so it’s hot off the press!  The President ordered 50 million barrels of oil released from the strategic reserve to help bring down energy costs, in coordination with other major energy consuming nations, including China, India, and the United Kingdom.

This was a response to OPEC who didn’t budge an inch when asked to increase production…  And it was also a political move to gain back some of the President’s lost popularity… But, maybe, baby, I won’t have to pay $3.55 for gas the next time I fill up like I did last week! 

The price of Oil is holding steady Eddie with this news… And I’m surprised by that… I can’t imagine that will continue for long. 

The U.S. Data Cupboard is still, for the most part, empty today, with only the Markit ISM  for the first part of this  month… But don’t forget that I told you that tomorrow will be a datapalooza and the dollar’s time on the rally tracks just might be derailed…

To Recap… Gold & Silver got sold down the river yesterday, all in short Gold & Silver paper trades… No matter how many millions the price manipulators get levied against them for price rigging, they will continue to defy the law…  The $152 Million in fines that have been levied on them for price rigging is just a “cost of doing business”…  The BBDXY rallied strongly during the day yesterday, and closed at 1,184.86…  but Chuck reports that as of last night, the currencies didn’t not reflect the move in the BBDXY… So, something was Amiss there…   And he found it! What a sleuth he is!  The Data Cupboard is still empty today, but gets restocked tomorrow!

Before I head to the Big Finish today, I want to throw this out there for everyone to think about: Ok… You know, from the start of the plandemic through to now, the public were told things that turned out to be wrong, falsified, and misdirected. But they were told that they needed to “trust the science”…  Well, let me see here… Last week that FDA filed for a 55 year waiting period before the public will get to review the documents of the vaccinations… Yes, people, if they are still around then, in 2076, will get to read documents… Maybe, Covid will still be around in 55 years, so it will be relevant news… But, probably not, and the folks will only be saying, “I remember my parents telling me stories of this plandemic”…  

For What It’s Worth… Well… there are so many negative articles to chose from, but this one isn’t so bad, and came to me from longtime reader Bob, and it’s about the Alternative Economy, and it can be found here: The Emerging Alt-Economy: “Buy Nothing” – DollarCollapse.com

Or, here’s your snippet: “Most of us own too much unnecessary stuff and have borrowed waaayyy too much money to buy said stuff. Meanwhile, all that debt is boosting inflation, making things that actually matter harder to afford.

But free people have a way of self-organizing solutions to their problems, and one of the more inspiring examples is the ‘Buy Nothing Project,’  through which members give or lend unneeded things to their neighbors. Think Craigslist without the asking prices.

Around two million Americans have joined related groups on FaceBook and elsewhere in the past year, bringing total participation to nearly five million.

In the best tradition of market-based fixes, “Buy Nothing” looks like a win for all concerned. Givers get the satisfaction of meeting and helping their neighbors while freeing up space occupied by things they no longer use. They also get to bank favors should help be needed in the future. Receivers, of course, get needed items for free.”

Chuck again… I sat there and thought about the stuff that we had bought through the years that we really didn’t need… And then I thought, no wait! I wouldn’t allow buying of stuff we didn’t need, so I have nothing to give to my neighbor…  Hmmm…

Market Prices 11/23/2021: American Style: A$ .7221,  kiwi .6924, C$ .7860, euro 1.1255, sterling 1.3368, Swiss $1.0728, European Style: rand 15.8552, krone 8.9471, SEK 9.0044,  forint 327.40,  zloty 4.1837,  koruna 22.6121, RUB 75.08, yen 114.88, sing 1.3663, HKD 7.7933, INR 74.42, China 6.3876, peso 21.15, BRL 5.6251,  BBDXY 1,185.47, Dollar Index 96.50,  Oil $76.36, 10-year 1.65%, Silver $23.80, Platinum $998.00, Palladium $2,017.00, Copper $4.43, and Gold… $1,790.40

That’s it for today… I was treated to a lunch with my very good friend, Ellie Williams, yesterday… We hadn’t seen each other in 2 years!  I asked her, “do you ever age?” Well, 58 years ago, I was on the AV team at school, and I was assigned to retrieve the Black & White TV and bring it my room, for something… When I went to pick it up to roll it into the room, I saw Walter Cronkite on TV telling about how President Kennedy had been shot… I quickly rolled the tv in the room and blurted out loud, “The President has been shot”… And my teacher said, “Are you sure, Charles?” I plugged the TV in and said “see for yourself”… And we as a classroom sat and watched the TV coverage for next couple of hours… The news of the assassination made for a somber Thanksgiving at the Butler House that year…  I’ve always thought that the assassination of President Kennedy was a multi-person job… I visited the building where Lee Harvey Oswald the supposed shooter, shot from, and visited the Museum there and watched the films, and came away with the same thought… I’m just saying…   OK… I was Well, to put us in a better mood, Stan Whitmire takes us to the finish line today with his band’s version of the song: Some Child, Come See Him…   I hope you have a Ton Terrific Tuesday, and please… Be Good To Yourself!

 

Chuck Butler

What Do We Have Here? A Hawkish Fed Head?

November 22, 2021

* Currencies, metals and Oil all get sold on Friday…

* The Gov’t’s $2 Trillion Spendalooza gets through the House… 

 

Good Day… And a Marvelous Monday to you! How about my beloved Missouri Tigers football team? What a great win Saturday VS Florida!  Also on Saturday I got to see my darling granddaughter, Delaney Grace, perform in Annie, for the Gateway Center for Performing Arts… She’s really into acting, singing and dancing… I just love her to pieces!  And Kathy came home, finally… My kids always ask, “How are you doing without mom around”… And I reply, “it sure is quiet”… HA! Well, there’s a lot to talk about today, so, let’s get it going… The Stephen Kummer Trio greets me this morning with their version of: I’ll Be Home For Christmas…

Friday was an all-out ugly day in the markets that we like to follow… Currencies got sold, metals got sold, and Oil got sold… Bonds on the other hand were bought, but that just means that lower rates, on the bonds,  are going more negative… So, that’s ugly, there folks… There was no news to speak of besides the spendalooza being passed (more on that in a minute)… The euro fell below 1.13 for the first time July 2020…  But while we’re talking about currencies, the two rebel currencies that aren’t being bullied by the dollar in recent trading days, the Indian rupee, and Chinese renminbi, both rallied a bit on Friday… So, there you go!  

We did have a Fed/ Cabal/ Cartel member, Waller, speak and he threw a grenade from left field onto the markets…  First of all, Waller is a voting member of the Fed/ Cabal. Cartel, and he expressed a more hawkish tone than any Fed member has in the past few months. While acknowledging that the spiraling level of inflation is much less transitory than first believed and will remain much longer than assumed.

Federal Reserve Governor Waller addressed the current level of inflation and described it as a “big snowfall that will stay on the ground for a while, rather than a one-inch dusting.” His statements highlighted the intrinsic and mounting concern by Federal Reserve members that inflationary rates have gotten way out of hand and added, “When snow is expected to be on the ground for a week, you may want to act sooner and shovel the sidewalks and plow the streets.”

OK, so he is a voting member, but… so far he is the just one vote and there have been no other members speaking as hawkish has Waller did… But his comments did stir the pot that was the markets on Friday… 

Well… let’s see, the House passed their $2 Trillion spendalooza bill, which just means that the Gov’t is going to throw more fake money at the economy, which entails printing more currency to pay for the Treasuries that will be up for sale that no one wants, because the yields are so low.  Before this spendalooza bill was passed, the U.S. had printed more than $5 Trillion in new currency since 2019…  And then there are economists out there that still say this inflation isn’t going to last… Well, as long as the Gov’t keeps stoking the inflation fire, the embers will burn hot for a long time…

But did this memo of more deficit spending and currency printing get Gold going on the day? Hardly… Gold lost more than $13 on Friday, and Silver lost 21-cents…  Now, how could that have happened?  Well, let’s go through the motions on this… The markets saw the spendalooza bill and decided that this just what the economy needs…  Yeah Right, as if the previous $5 Trillion was working and just needed an additional jolt!   Think about that for a minute, folks.. .My dad used to tell me about businesses that threw good money at bad programs…  Well, in this case we, as a country are throwing bad/ fake money at bad programs…  That’s even worse!

No… the reason Gold & Silver got sold on Friday, was the boys in the band decided to take a pound of flesh from these two metals, and walk away at the close on Friday, to the local pub/ bar, and buy a round of drinks, for they had just made a killing in the markets!  Why did they decide to take a pound of flesh?  Because they can… And no regulatory agency is going to come after them for rigging the price lower…  Sure the Bullion banks have paid $55 Million in fines for rigging the price in London, but that was easy to find… The kind of price rigging that the boys in the band use is more difficult to pin down… Shoot ask Gary Gensler, the present SEC head, for he said that he personally investigated the Silver price rigging claims when he was head of the CFTC (Commodities regulator) and said that he saw nothing…     I doubt seriously that he saw nothing, folks… I do believe that he was told to say that… and for that, we’ll remember you the next time a good job comes along, and voila, he’s the head of the SEC!

I’m sure that the powers that be, didn’t think anyone would be on top of that whole scenario, but they didn’t account for little old country bumpkin me…. 

So, like I said, Gold lost $13.50, and closed the week at $1,846.00, and silver lost 24-cents to close at $24.66… Friday marked two days in a row that these two metals got sold… And again, it makes no sense to me, but it does give lower/ cheaper prices to those that are just letting the fact that inflation is rising enter their hard heads!

In the overnight markets last night… There has been little to no movement in the currencies, and  Gold is down $3, while Silver is up 14-cents. The price of Oil was sold further down the river, and Bonds are flat to down a bit this morning.  There’s nothing in the Data Cupboard to get the markets going today, so we’ll have to see what the Trader sentiment is registering, ahead of a long holiday weekend at the tail end of this week…  The BBDXY is 1,179.41 to start the day… 

I guess I should be happy that Gold gained more than $110 in the last 10 days… And I read where Institutional interest in Gold is picking up again, and that’s a good sign for Gold to move even higher… I’m just saying

So… the dollar just keeps gaining momentum… What’s up with that?  Just two weeks ago, it appeared that the dollar was ready for a long trip to the woodshed, but then…  Well, I don’t need to tell you that the dollar mysteriously rallied…  I think that traders and investors are still under the thinking that this rising inflation is going to bring about higher interest rates here in the U.S. to fight the rising inflation…  (see previous discussion about Fed/ Cabal/ Cartel  head Waller) And that higher interest rates would allow the dollar to be more sought after… I wish these traders and investors would read this letter because I’ve explained several times now that the U.S. can’t hike rates (well not to the tune to more than inflation!)  because of the debt servicing requirements. (paying bond interest)

In the 1970’s inflation rose to 13%… And then Fed Chairman Paul Volcker raised interest rates to 20% to slay the rising inflation… So, to take that to today’s mess of inflation that we have, which, just for today’s lesson we’ll use the Gov’t’s claim that inflation is 6.2%… If you would want to slay that rising inflation you would have to hike rates north of 10%… And that’s not going to happen, not on my watch!  

I had a question last week when speaking on the Webinar that was hosted by Rich Checkan at Asset Strategies. (ASI) that centered on the thought of the U.S. not being able to hike rates, because of bond servicing costs… And the attendee to the webinar said, “but doesn’t the Fed pay the interest earned on bonds they bought back to the Treasury?”    And the answer to that question is yes, but that doesn’t take into consideration that the Fed owns a little more than 1/3rd of the existing Treasuries, So that’s still 2/3rds of Trillions that needs to be serviced….

And you shouldn’t worry about the existing stock of Treasuries, it’s the new ones that will be issued on a “roll”  when the existing stock comes to maturity… The new bonds would carry the new “higher interest rate”, and that’s when the problems occur for the government…

OK.. onto other things…  I’ve not spent a lot of time talking about inflation this morning, I know I’ve been like a broken record lately with inflation, so in lieu of me talking about it, I thought it to best to have someone else talk about it… And in that case I have Ayn Rand talking about inflation… Take it away Ayn:  “inflation is not caused by the actions of private citizens, but by the government: by an artificial expansion of the money supply required to support deficit spending. No private embezzlers or bank robbers in history have ever plundered people’s savings on a scale comparable to the plunder perpetrated by the fiscal policies of statist governments.” – Ayn Rand

I would think that she nailed it Governor!  And like I said above, more than $5 Trillion of new currency has been printed since 2019, and that’s before the latest spendalooza by the Government!  Got Gold?

Speaking of Gold, I read this weekend that demand for physical Gold in China has soared once again and is the strongest it has been in 3 years!  

The U.S Data Cupboard doesn’t have much for us today and tomorrow, but on Wednesday, it will be the datapalooza! I guess the folks that put together these reports wanted to fill traders and investors with as much data as they could put on their collective plates,  to stretch their stomachs prior to sending them off to Thanksgiving!  We’ll have Personal Income and Spending, Durable and Capital Goods, GDP, Core Inflation, and Weekly Initial Jobless Claims… All in one day!

But like I said there’s really nothing to see the first two days of this week…  And that usually means the dollar gets to breathe easier… But Wednesday’s prints could sent it reeling into the 4 day holiday for some…  

To recap… it was an ugly day on Friday for the currencies, metals and Oil… The anti-dollar assets were all on sale throughout Friday, and ended the week on a sour note. Gold had gained more than $110 in the previous 10 days, and a day of profit taking was due… But that’s not what happened, instead it was a day for the boys in the band…  Inflation is a real problem for bonds, folks… They are selling with negative real yields… Who wants some of that?   Chuck spends a lot of time talking about Gold today, Ayn Rand gives us her thoughts on inflation, and Chuck points out that Wednesday’s Data Cupboard will be a datapalooza!

For What It’s Worth…  Well, since I mentioned the boys in the band above today, I might as well tell you that more bullion banks have been found guilty of price rigging of Gold… This article appeared in a note that the good folks at GATA sent me…  Which means you can’t see the article, unless you are a GATA member, so I have the whole article here, so don’t you worry! 

Here’s your snippet: “Barclays Bank PLC, Scotiabank, Societe Generale, and the London Gold Market Fixing Ltd. agreed to pay $50 million to end claims that they illegally fixed prices on the gold market, the putative class of gold traders told a New York federal court Friday.

The deal, if approved, would be the third and final settlement in the putative class action and would bring the total take for the plaintiffs to $152 million, according to the gold traders’ motion for preliminary approval.

The motion also seeks certification of a class of “many thousands” who traded gold or financial instruments with gold as their underlying asset between January 2004 through June 2013.

“Studies have found that the median full-case antitrust recovery is 19% of single damages,” the plaintiffs said. “Thus, co-lead counsel would have to establish at trial a recoverable single damages figure of $800 million before the combined recovery from the three proposed settlements fall behind the pace of a median antitrust recovery rate.”

“Considering the risks and costs of continued litigation, both the combined result of all three settlements and this third settlement agreement even when viewed in isolation provide excellent results for the settlement class.”

The March 2014 putative antitrust class action represents 18 consolidated suits claiming that several banks were involved in a wide-ranging conspiracy to fix prices on the gold market.

London Gold Market Fixing members held secret meetings to share information on the real-time price of gold to set a rate beneficial to them, including Barclays, HSBC, and Deutsche Bank, according to the suit.”

Chuck again…  Like Ed Steer had to say about this article:” But regardless of any lawsuits, successful or otherwise, the price rigging continues, dear reader.” 

Market Prices 11/22/2021: American Style: A$ .7223,  kiwi .7009, C$ .7915, euro 1.1283, sterling 1.3451, Swiss $1.0787, European Style: rand 15.6712, krone 8.9008, SEK 8.9347,  forint 324.26,  zloty 4.1475,  koruna 22.4950, RUB 73.37, yen 114.04, sing 1.3603, HKD 7.7896, INR 74.16, China 6.3862, peso 20.80, BRL 5.6122,  BBDXY 1,179.41, Dollar Index 96.11,  Oil $75.73, 10-year 1.57%, Silver $24.80, Platinum $1,042.00, Palladium $2,126.00, Copper $4.35, and Gold… $1,846.70

That’s it for today…  A Big Congrats to my former colleague, Chris Gaffney, who was quoted in the Wall Street Journal last week!  That brought back memories of when the WSJ writer came to St. Louis to interview me many years ago, and when the article showed up, I went to the newsstand and bought 10 copies! In typical response from my wife, she said, “what are we going to do with all these copies?”  I had a blast last Wednesday night at the Sports On Tap Event… And even got an opportunity to spend a few minutes with childhood friend, Jim Thomas, who is the beat writer for the Blues! And my doctor visit was a non-event… except that my A1C was 5.7!!!! The doctor said I could have some pie on Thanksgiving! HA!  My Billikens Basketball team won again Saturday night, but the Blues lost! UGH! I really lounged around the house yesterday, it was well after noon before I changed clothes and got moving!  This is Thanksgiving week!  I just get so upset with all those people that try to take away the traditions of this country… And that’s all I’m going to say about that! The Count Basie Orchestra takes us to the finish line today with their song: Good SWING Wenceslas…   I hope you have a Marvelous Monday today, and please Be Good To Yourself!

Chuck Butler

Dollar Buying Continues…

November 17, 2021

* Currencies & metals get sold on Tuesday… 

* China surpasses the U.S. as wealthiest nation… 

Good Day… And a Wonderful Wednesday to you! Our Blues played last night and lost their 4th game in a row. UGH!     And my St. Louis U. Billikens Basketball team played last night and they found out that they are not ready for prime time… UGH!   I had a long conversation yesterday, with good friend, Dennis Miller… He sounded much better than the last time I talked to him, but he’s still not out of the woods… He’s itching to do a letter, and drafted one, and sent it to me to look over… That’s the best medicine as far as I’m concerned… Get back on the saddle and ride until you can’t ride any longer! Stan Whitmire greets me this morning with his version of the song: Merry Christmas, Darling…

Well, I told you last week that you had better batten down the hatches until this recent dollar strength is over, and it didn’t appear to be near an end yesterday! The BBDXY rose from 1,173 in the morning to 1,178 to close the day… The euro is dropping through the 1.13 handle like a hot knife through butter… And every other currency not named the Indian rupee, or Chinese renminbi, is following the euro down and down, and down…

I read last night that traders are looking at the yield differential of the German 10-year Bund, VS the U.S. Treasury 10-year, and while the U.S. Treasury has the yield advantage, the writer said that the dollar would remain well bid… 

Well, I have to question that reasoning… For if it were true, then the 10-year’s yield would be dropping from all the buying, and it’s not dropping, instead its increasing, and last night when I checked it just to make sure I was saying the correct thing, the 10-year’s yield had increased to 1.63%…  There’s a reason investors and traders are buying dollars, but I don’t believe the yield differential is the main reason…  The main reason?  You got me, on that one, folks!

As I’ve mentioned recently, the only currencies that I see holding on for dear life are the Indian rupee and the Chinese renminbi…  With the price of Oil slipping and then rallying, rinsing and repeating, the Russian ruble can’t find any buyers until Oil stops slipping… 

Gold & Silver after experiencing 4 consecutive days of gains, have now given back gains 2 consecutive days… Gold lost $11.80 to close at $1,851.40, and Silver lost 24-cents to fall back below $25, to $24.90…  I really was beginning to think that Gold & Silver were on their respective ways to much higher ground…

Yesterday, the U.S. dollar got a big boost from the Rocktober prints of Retail Sales, Industrial Production and Capacity Utilization, which all three were improved reports from the previous month…  Like I said yesterday, last month’s prints were not so good, and didn’t exactly illustrate a strong economy, and I said that the powers that be, couldn’t have that, and that I was sure that this month’s reports would be cooked, massaged, and twisted and turned until they came out just right, as baby bear said!

So those reports had more to do with the dollar’s run yesterday than anything else… But… the one thing I would point out is that when these reports disappointed last month, the dollar barely budged lower, so apparently what’s good for the goose is not good for the gander…

In the overnight markets last night… The dollar buying stopped, for now, at least, but the dollar didn’t give back much. The BBDXY closed last night at 1,178.19, and this morning it is trading at 1,177.61… So, a little slippage, but not much…  Gold is up $11 in the early trading and Silver is up 27-cents, so these two have erased yesterday’s losses, but it is the early trading, and the price manipulators haven’t arrived at their desks yet… 

The price of Oil has slipped below $80 once again… Back and forth, back and forth, C’Mon oil traders pick a lane, any lane, and stay in it!  And Bonds continue to be on the selling blocks…  The Bond Boys, as they were once known, can’t get together to figure out what they need to do… I’m of the opinion that they need to get together and run yields higher to force the Fed/ Cabal/ Cartel, to step in and buy bonds again… 

This scenario would squash whatever credibility the Fed/ Cabal/ Cartel still has, for they had made such a Big deal out of their tapering, but if they had misjudged the markets, and had to come back to buy more bonds, well they could kiss their credibility with the markets good bye! 

Speaking of the Fed/ Cabal/ Cartel, they still don’t know who their leader will be for the next 4 years… Either it’ll be current chairman Jerome Powell, or Lael Brainard… And like I said previously, it doesn’t matter which one will be in the chair… They both will continue to not buck the system and print whatever currency they need to offset the deficit spending in Washington… 

I’m wondering what’s going on here… There was no email in my email box from Ed Steer this morning.. .Yesterday he said that his town was flooding and the town was under a mandatory evacuation order… Hope, you’re safe Ed… 

Yesterday, I spent the better part of the day reading a report from Switzerland… Many years ago at a conference I was introduced to Rob Vrijhof by friend, Michael Checkan, and through the years we would see each other at conferences, etc. and then when I retired Rob tracked me down, an one day he called me from Switzerland!  Rob was with the firm WHVP Ltd. But has now retired, and his daughter and son in-law run the investment firm. One of the things Rob did for me was get me signed up for their monthly newsletter: The Swiss View…

And this morning I’m going to share with you a small snippet of the report from WHVP Ltd.  They were talking about how investors have jumped back into stocks after the brief September selloff…

“However, we believe that changing the strategy due to frustration is the wrong move. We feel that the situation did not change for the better. Despite the markets rising, there are several new risks like the real estate market in China, the rise in inflation, and the rising tensions between China and the U.S., and Japan due to their provocations of Taiwan.”

I wish I had said it like that! But I couldn’t agree more… These are things that hanging over the U.S. markets like the Sword of Damocles, and they hanging by a thread…  And they didn’t even mention the soap opera-like goings on at the Fed/ cabal/ Cartel! Or the mid terms that are coming up with the debt ceiling question coming again…

The bizarre markets have gone even more bonkers folks… Last week, Elon Musk ran a Twitter poll on whether he should sell a large chunk of his Tesla stock, and when the poll suggested he sell, he did!  He left the decision on the stock that he owned in his own company, to Twitter followers?  Give me a Break!  Every day, there’s something else that illustrates how Bizarre the investment world is these days… 

I’ve said this before, that when things begin to get too Bizarre, I turn to publishing guru, and best selling author, Bill Bonner, to explain things… So here’s Bill on the recent Elon Musk Bizarre caper from his letter that can be found at www.rogueeconomics.com : “This is obviously a novel way of making decisions. And perhaps better.

If two heads are better than one… surely, the 3,519,252 poll respondents, including the 2,037,647 who answered “Yay,” raise the quality of the decision at least to a C+.

What is most amazing about the whole thing is that 3,519,252 people… all supposedly compos mentis… probably adult-ish… presumably with real lives… actually found the time to weigh in on a financial question that didn’t concern them.”

Thanks Bill…. 

The U.S. Data Cupboard for the rest of the week is weak at best… Besides the usual Thursday fare of weekly Initial Jobless Claims, the rest of the week has nothing but 2 & 3rd tier reports, and a full slate of Fed/ Cabal/ Cartel head speakers all around the country… Simple question, before Big Al Greenspan, did anyone ever know who the Fed heads were, much less who their chairman was?  But these days, they’re all out speaking all the time, getting their name, views, and thoughts out to the public…  Personally, I liked the way it used to be done… I’m just saying…

To recap… The dollar got bought like it was toilet paper during the plandemic…  the economic reports were strong for Rocktober, (Chuck told you they would be because the powers that be can’t have weak reports!)  Gold & Silver also got sold yesterday, for the second consecutive day… Bond yield differentials are being pointed to for the reason the dollar is so strong, but Chuck points out that if that were really the case, then U.S. Treasuries would be being bought, and that would bring the yield of the bond down… But the yield is going up… go figure!

For What It’s worth… This article came to me from longtime reader Bob… who said that if this is true, everyone needs to know about this….  Well, the Pfennig is a start, but not close to getting out to everyone! This is about China overtaking the U.S. in wealth… and it can be found here: China tops US as ‘wealthiest’ nation in the world, new McKinsey report claims | American Military News

Or, here’s your snippet: “China has overtaken the United States as the wealthiest nation in the world, according to a new report from the global management consulting firm McKinsey and Company released Monday. Researchers at McKinsey and Co. analyzed national wealth according to a nation’s net worth. 

The group’s analysis showed that China’s net worth soared from $7 trillion to $120 trillion between 2000 and 2020. The United States net worth, on the other hand, only doubled over the same period to $90 trillion.

“We have borrowed a page from the corporate world—namely, the balance sheet—to take stock of the underlying health and resilience of the global economy as it begins to rebound from the COVID-19 pandemic,” the report explained. “This view from the balance sheet complements more typical approaches based on GDP, capital investment levels, and other measures of economic flows that reflect changes in economic value.”

“Across ten countries that account for about 60 percent of global GDP—Australia, Canada, China, France, Germany, Japan, Mexico, Sweden, the United Kingdom, and the United States—the historic link between the growth of net worth and the growth of GDP no longer holds,” the report continued. 

Worldwide net worth increased from $160 trillion in 2000 to $510 trillion by 2020. Among the countries listed in the study, the average per capita net worth was $66,000, with “large variations” present across economies, and “even more so across households within an economy.” Per capita net worth ranged from $46,000 in Mexico to $351,000 in Australia. 

“We are now wealthier than we have ever been,” said Jan Mischke, a partner at the McKinsey Global Institute in Zurich, according to Bloomberg.

Researchers also found that in both the U.S. and China, over two-thirds of the wealth comes from the richest 10 percent of households, and their share of the wealth continues to rise.”

Chuck again… Ahhh, the old wealth inequality thing again, eh?  I find this very interesting that China has surpassed the U.S. as the wealthiest country on earth…  That means they have more wealth to spend on miltary… I’m just saying…

Market Prices 11/17/2021: American Style: A$ .7286,  kiwi .7006, C$ .7956, euro 1.1314, sterling 1.3444, Swiss $1.0741, European Style: rand 15.5020, krone 8.7432, SEK 8.8590, forint 322.55,  zloty 4.11.91,  koruna 22.2810, RUB 72.83, yen 114.81, sing 1.3577, HKD 7.7871, INR 74.16, China 6.3839, peso 20.72, BRL 5.4713,  BBDXY 1,177.61, Dollar Index 95.90,  Oil $79.79, 10-year 1.63%, Silver $25.17, Platinum $1,073.00, Palladium $2,248.00, Copper $4.37, and Gold… $1,862.10

That’s it for today, and this week… Next week will also be a short week, with Thursday being Thanksgiving… I’m going to the Sports On Tap event downtown tonight, with good friends, Rick and Kevin, and my son Andrew… But I can’t be out late, as I have to report to the doctor tomorrow morning bright and early!  When I was younger I could stay out very late, and still get up bright and early in the morning to go to work… But not any longer! UGH!  So, good friend, Dennis Miller interviewed me for his upcoming letter… I didn’t pull any punches and just said what was on my mind…   Beegie Adair takes us to the finish line today with her version of the song: What Are You Doing New Year’s Eve… I love the Harry Connick Jr. version of that song… And with that, I hope you have a Wonderful Wednesday to day, and please Be Good to Yourself!

Chuck Butler

More Dollar Buying Has The Euro Very Oversold!

November 16, 2021

* Currencies can’t find a bid on Monday… 

* Gold & Silver rally in the overnight trading… 

Good Day… And a Tom Terrific Tuesday to you! Well, remember when I said that the Blues had gotten off to a great start, but it was important not to get too excited early, as it was a long season? Well, Sunday night they lost their third straight game… UGH! Sometimes I hate it when I’m right! HAHAHAHAHA! Recently, someone asked me if I still played the guitar, and I told them that it had been 2 years since I last picked up my guitar… That got me thinking last week, and I went and got my guitar, tried to tune a string, and it broke! Now I had to go online and buy new strings… So much for that wild hair, of playing my guitar!  Lunch yesterday, with Frank Trotter, was a real treat for me… We sat and talked about “stuff” for two hours… And then he was gone, and probably not seen again until next spring! UGH!  Jack Jezzio greets me this morning with his version of: Jolly Old St. Nicholas…

OK… yesterday, I read that the $480 Billion stop gap spending that was signed into law by the POTUS a month ago, has already been blown through… And it was supposed to have lasted until the December 3, debt ceiling drop dead date… that means that the U.S. is using “extreme measures” to pay the bills right now…  That’s scary isn’t it?  You betcha it is! And who’s to say that on December 3, the debt ceiling gets raised?  I’ve always detested the phrase, “this time it’s different”, but I’m going to have to say that this time, because…  The mid-term elections are coming up, and the GOP doesn’t want anything to do with a $7 Trillion increase to the debt ceiling, and therefore they will be real head busters on this debt ceiling thing.. Which could mean that the U.S. would be heading to a default…  No hype, no extra words needed…  That’s just the facts, ma’am… 

And think about this for a moment… That picture of the debt right now, was taken before the signing of the new $1 Trillion infrastructure deficit spending bill… Where’s that money going to come from? When you’re up to your arse with alligators because you forgot to drain the swamp, it’s no time to call and request more flood water come your way…   But that’s just what the folks in D.C. just did…. Ooh, we see that we’re now using “extreme measures” to pay out bills, so here’s some more bills to deal with!

And with all those thoughts, we turn to the dollar, and it got bought again yesterday… Starting the day after the overnight session saw the dollar drift, the BDDXY was 1,169.11, but the downward drift, soon got turned around, and the BBDXY rose to close the day at 1,172.60…  Now what in all that’s going on would tempt you to want to buy dollars? We have a soap opera-like mess going on at the Fed/ Cabal/ Cartel, we have inflation soaring, with nothing in its way to slow it down, and now we’ve gone to “extreme measures” with our debt/ bill paying… And traders are line up to buy dollars? C’Mon give me break!

And again, taking all that stuff into mind, Gold didn’t come much off its $3.30 loss in the early trading yesterday, ending the day down $3.00 to close at $1,863.20, and Silver ended up losing 27-cents to close at $25.14…  But not to worry, folks… the stock market just hit another high… I say that in jest… in case you didn’t get my drift there…

The price of Oil bounced back higher yesterday, gaining $2 on the day, and Treasuries got sold, with the 10-year’s yield rising to 1.61%… Remember with bonds, as the yield goes higher, the bond price goes lower… If the Fed/ Cabal/ Cartel wasn’t buying $105 Billion of bonds each month, yields would be much higher… But then who else would buy the $105 Billion of bonds each month?  And that, my friends is the manipulation of yields in bonds by the Fed/ Cabal/ Cartel… And when no one else steps up to the plate to buy the excess bonds that are left on the table each month, the only thing the Treasury can do, is to increase the yields to attract buyers… And that brings about another can of worms that I could spend all day explaining… So I won’t… at least not today… how about that?

In the overnight markets last night… There’s been more selling of the currencies, with the euro dropping below the 1.14 handle, and the BBDXY rising to 1,173.26 overnight.  Gold & Silver don’t seem to be caught up in the dollar buying though, as Gold is up $10 in the early trading and Silver follows up with an 18-cent increase this morning.   You know there’s one more point I want to make about the rising inflation, and that is… Prices for everything are going higher, but… will they ever come back down?  I doubt that seriously… So, higher prices are here to stay in my humble country bumpkin opinion… 

Oh, and there is speculation that today is the day that the White House will name the new Fed Chairman… My money is on a renaming of Jerome Powell to the chairman’s position… Not that it makes much difference who is in the seat, for whomever it is, they will continue to lead us down the road to ruins… 

OK… do you know who Ben Garrison is? Well, if you don’t, you should… Ben Garrison and his wife Tina, draw cartoons about what’s going on in the U.S. and I signed up for them a long time ago, and can’t believe this is the first time I’ve ever mentioned one of his cartoons…  Yesterday, he drew a gas pump that was 5 x taller than the guy trying to reach it to pump gas…  then he drew a grocery shopping cart that 5 x taller than the guy trying to reach it, Then he drew a house that had a balloon attached to it soaring high, and all these things were “out of reach”, and then he drew the POTUS and said “out of touch”…  

I’m not being political here… just pointing out that we as a country have no idea how to put a lid on this soaring inflation, and that’s a real shame… There are plenty of very intelligent people in the world, why can’t one of them come forward and say… “This is how we fix this”?  

Of course they could ask me, and I would tell them to 1. Stop deficit spending 2. Stop currency printing, 3. At least jawbone rates higher to put fear in traders that you could hike rates… But, just like my family, they won’t listen to me… I’m some crazed guy that sits in his basement writing stuff that they don’t understand, So instead of asking for me to explain, they just say, “don’t pay any attention to him, and absolutely do NOT listen to him!  You know like the sign at the zoo says, “Don’t Feed The Bears”…

I get why the Great Mogambo Guru used to complain about his daughter and wife, now I get it Mogambo… I see said the blind man has he spit into the wind…. It’s all coming back to me now…

I got a big laugh last week when I saw a picture of all the private jets that were used to shuttle people to the Climate conference in Glasgow last week… I guess all those jets didn’t’ produce an CO2, eh?  Fly to a Climate conference in a jet, and then tell everyone how you are going to do everything in your power to bring about changes…  Well, you could start by not flying a jet around and just call in on Zoom to the conference! You dolts!

Well, do you want to know what I’m really concerned about now? No? Ok, then just skip ahead, for I’m going to get up on my soapbox now….  After inflation takes its pound of flesh from the middle class of this country, guess what’ll be next to appease them so that they don’t show up at the Eccles Building with fire torches and demand the Fed/ Cabal/ Cartel heads be brought to them… Well, it’ll be UBI… Universal Basic Income…  The Gov’t learned last year that by sending people stimmy checks that they could appease them for a period of time… So now, they would just send them UBI payments each month…   

There’s just one question to ask about that… Where does the money come from?  I’m just asking… and oh… Got Gold? 

Talk about a greased track to socialism…  I’m just saying

OK… The U.S. Data Cupboard today has the Rocktober Retail Sales…  I said yesterday that the BHI indicated that the actual report would not meet expectations… I forgot to check the front porch for all the packages that Kathy has sent there while she was gone! So, now I have to amend my forecast for Retail Sales… We’ll also see Industrial Production and Capacity Utilization today for Rocktober… You may recall that these two reports were negative for September, and so, we certainly can’t have that now can we? The massagers and cooks, will do what they have to to make these two more representable for public display….  

To recap… The dollar’s downward drift only lasted one day and night, before traders lined up to buy dollars once again yesterday… Chuck wants to know how that happened? But we carry on despite the dolts we have to deal with! Gold lost $3 and Silver lost 27-cents yesterday, in light volume compared to normal days… And the price of Oil rebounded by $2, while bonds got sold… So it was a mixed up crazy day of trading in asset classes, but Chuck says don’t worry, the stock market just hit another high…. Chuck is really on a roll this morning, so don’t stop him… They didn’t stop the Germans when they bombed Pearl Harbor did they? HAHAHAHA! (That’s an Animal House reference there folks, Chuck knows who really bombed Pearl Harbor!

For What It’s Worth… Well, this one really is worthy of FWIW status… And you’ll want to take the time to click on the link and read the whole article, for this is a real doozy folks… Pam and Russ Martens of Wallstreetonparade.com feature a whistleblower at our fave bank (NOT!) JPMorgan Chase, and it can be found here: Wall Street On Parade

Or, here’s your snippet: “On Thursday, a female attorney, Shaquala Williams, who had worked in compliance at JPMorgan Chase, came forward. Williams has filed a lawsuit in the U.S. District Court for the Southern District of New York with allegations that are so alarming that they should send the Justice Department, the bank’s outside auditing firm and the Audit Committee of the Board of Directors into a frenzy. (See the full text of William’s federal complaint here.)

According to the lawsuit, Williams has “approximately 12 years of experience in financial crimes compliance primarily for financial institutions.” She joined JPMorgan Chase in June 2018 and was working in its Global Anti-Corruption Compliance group. After reporting serious misconduct by the bank, she alleges that the bank retaliated against her by firing her in October 2019.

Williams makes numerous, stunning allegations that the bank was falsely reporting to the Justice Department that it was in compliance with the non-prosecution agreement it had reached in 2016 when, in fact, it was simply reporting what the Justice Department wanted to hear while gaming the terms of the agreement.

The Justice Department had charged in 2016 that JPMorgan’s Asia subsidiary had through “certain senior executives and employees of the Company conspired to engage in quid pro quo agreements with Chinese officials to obtain investment-banking business, planned and executed a program to provide specific personal benefits to senior Chinese officials in the position to award or influence the award of banking mandates, and repeatedly falsified or caused to be falsified internal compliance documents in place to prevent the specific conduct at issue….”

To put it bluntly, the bank was putting on its payroll the children of high Chinese government officials in order to further its business interests in China.”

Chuck again… It’s really imperative that if you want to know what JPM is up to these days to follow up on their previous convictions of various trading and compliance problems, then clock on the link above, I would think you would come away after reading the article , shaking your head in disgust, because I know I did!

Market Prices 11/16/2021: American Style: A$ .7340,  kiwi .7023, C$ .7977, euro 1.1363, sterling 1.3452, Swiss $ 1.0790, European Style: rand 15.2397, krone 8.6988, SEK 8.8266,  forint 320.43,  zloty 4.0897,  koruna 22.1689, RUB 72.51, yen 114.28, sing 1.3538, HKD 7.7886, INR 74.32, China 6.3808, peso 20.57, BRL 5.4361,  BBDXY 1,173.26, Dollar Index 95.51,  Oil $81.46, 10-year 1.61%, Silver $25.46, Platinum $1,107.00, Palladium $2,254.00, Copper $4.45, and Gold… $1,873.40

That’s it for today…  sorry if I ticked anyone off this morning… Just saying what was on my mind… And besides, where’s your thick skin? Well, my St. Louis U. Billikens travel to Memphis tonight to play the Memphis Tigers, in basketball,  a ranked team… So a real test for my young Billikens… My beloved Missouri Tigers play Florida, in football,  this coming Saturday… if they can win they’ll be bowl eligible, not exactly what they were thought they would be at this point, but… when you play in the SEC, a win is very difficult to come by… I thoroughly enjoyed being in the stadium last Saturday for the Tigers win… I don’t get to too many football games any longer… So that one was special!  In case you missed me telling you this… I’m listening to Pandora’s Smooth Jazz Christmas station, not Sirius XM, but Pandora… Once Christmas is over, I’ll switch back to my iPod… And with that,  Kenny G takes us to the finish line today with his version of the song: God Rest ye, Merry Gentlemen…  I hope you have a Tom Terrific Tuesday today… And please Be Good To Yourself! 

Chuck Butler

 

 

Chinks In The Dollar’s Armor Are Exposed…

November 15, 2021

* Currencies turnaround on Friday… 

* More of the “this is not the inflation you’re looking for, move along, talk from U.S. power elite… 

Good Day… And a Marvelous Monday to you!  Well, Saturday I traveled to Columbia, Mo, with son Alex, to take in a game with my beloved Missouri Tigers, and the S. Carolina Gamecocks… The day was sunny, but colder than a ….   I had 5 layers on, and the Tigers won, so I was able to survive the cold! Thanks to Alex for the invite. We had a good day together…   This Wednesday, I’ll be going to the Sports on Tap event, with oldest son, Andrew…  Kathy is still gone, I’ve gone two weeks being alone, but the time has flown by…  And next week is Thanksgiving! Time flies when you’re having fun! HA! The Laurence Juber Group greets me this morning with their version of the song: The Holly and The Ivy…

Well, the dollar buying that I left you with last Thursday continued throughout Thursday, and the euro reached a very oversold level, but all the pundits thought that it didn’t matter that the dollar was on a roll… The BBDXY rose to 1,172.55 on Thursday, and was, well, very strong… But then on Friday, there were some chinks in the dollar’s armor exposed, when the U. of Michigan Confidence Index dropped from 71.7 to 66.8, and that got traders thinking that they had over-thought their reasons for buying dollars, and suddenly, the dollar was getting sold…

On Friday, the BBDXY went from the lofty 1,172.55 on Thursday to 1,169.64 at Friday’s close… The euro still shows very oversold, and it will take a lot more downward movement in the dollar for the euro to get out from under that oversold rock…  Longtime readers know that the euro is the offset currency to the dollar, so for the most part, when the euro is down, the rest of the currencies are down too…  Late last week , we had a recurrence of a strange play in the currencies that was going on before the latest dollar upward run… And that is the Russian ruble and Chinese renminbi were the only currencies showing gains VS the dollar…

But that didn’t last long, as there was a secretly done release of Oil by the U.S. from it’s strategic reserves, and that brought the price of Oil down, and since I’ve always considered the ruble as an “oil play”, the rug was pulled from under the ruble too… So, it’s only the Chinese renminbi picking up the flag of the rallying currencies VS the dollar… 

Gold & Silver didn’t mind that the dollar was soaring on Thursday, because they too were moving higher… Gold closed up $12 and Silver up 62-cents on Thursday, and then they followed that up with a muted gain for Gold of $3.30 and for Silver of 6-cents on Friday… Gold closed the week at $1,869.64, and Silver closed the week at $25.42…  A good week for these two metals, as they finally get moving upward to combat the rising inflation…

Friend, Dave Gonigam, editor of the 5 Minute Forecast, had this from James Rickards in his Friday edition of the 5… “Russia paused its decade-long gold acquisition spree 18 months ago. “Now Russia is back on the buy side,” Jim tells us. “It purchased 3.1 metric tonnes in July 2021 and another 3.1 metric tonnes in September 2021 (August was unchanged).”

And that, my friend, could be a very good reason why, Gold has gotten back on the rally tracks… I’ve always said that if we had enough physical buying of Gold the price manipulators would have to step away from the market… 

And one point that we made in the webinar last week is that Central Banks around the world have been buying physical Gold, not Bitcoin…  I’m just saying…

In the overnight markets last night… the dollar has drifted lower, but not by much, as the foreign traders were scratching their collective heads and wondering what the hell was going on… Last week they had received the memo that they were to buy dollars, and then suddenly on Friday, after they had headed to the pubs and saki joints, their brothers in the U.S. began to sell dollars, and they hadn’t received any updated memo… What to do? So, like I just said, they were scratching their collective heads, and wondering what to do… 

So, the dollar simply drifted lower overnight, the BBDXY which closed at 1,169.64 on Friday, is starting today down to 1,169.11… So, as you can see with your own eyes, that dollar has drifted lower overnight…  Gold & Silver are down in the early trading today, with Gold down $3.60, and Silver giving back 19-cents…  

C’mon boys, this is NOT the time to be playing games with Gold & Silver! Inflation is climbing the wall of the economy, and these two metals need to shine even more during this time! 

All of you dear readers that sent me a note telling me I did fine in the webinar, were being too kind to me, as I viewed it again, I stumbled around a lot… UGH! (but thank you anyway!)  Hopefully I’m asked back to do another one, maybe I’ll sound more polished the next time around…   And… for all of you who couldn’t allocate the time to watch the webinar that I appeared on last week, I have for you, a link to the YOUTUBE of the webinar…  And here you go! On the Move Webinar Q4 2021 Featuring Chuck Butler – YouTube

Ok… I’m besides myself this morning because of this article on Bloomberg.com…  Treasury Secretary, Janet Yellen, had the nerve to say, “ controlling the Covid-19 virus in the U.S. is the key to easing inflation.

“It’s important to realize that the cause of this inflation is the pandemic,”

Ok, no mention of all the new currency that has been put into circulation by the Treasury and Fed/ Cabal/ Cartel?  C’mon Janet, give me a break here…  Nothing, nada, nil, zip and big fat goose egg on any thought that the trillions of currency printed in the last couple of years has anything to do with inflation soaring?  I shake my head in total disgust, with her…

And in a follow up article on Bloomberg.com Neal Kashkari the President of the Minneapolis Fed/ Cabal/ Cartel  had this to say about inflation, “We need to take it very seriously, but my view is we also need to not overreact to some of these temporary factors even though the pain is real,”

C’mon Neal… I’ve got a quiver full of arrows to shoot at your statement… What makes you think that anyone is overacting to inflation? Certainly the Fed/ Cabal/ Cartel isn’t!  And wouldn’t it be better to hike rates now, stop printing new currency, and stop deficit spending, to squelch inflation, and then you could always cut them again later? 

So, all along, you, me, and everyone else in this country, except the Elite, are suffering with high prices in everything… I’ve long said that inflation is a “tax” that everyone has to pay, and there are no loopholes to dodge the inflation tax…  And all the while the powers in this country don’t give two hoots that you and I are suffering… They don’t, they really don’t… Take Mary Daly’s comments from the Pfennig last week, and add in Neal Kashkari’s and Janet Yellen’s and you get the picture, they just don’t care…  So, buckle up partner, this is going to be a very difficult ride…

Oh, and please stick around to the end today, for the FWIW is an article about how the rising inflation is all in the Gov’t’s plans… You won’t want to miss that one! 

Well… according to Danielle Di Martino Booth, who was on Grant William’s podcast that I listened to last night, (you have to be a subscriber to listen, so I don’t have the link) Jerome Powell, appears to be on the inside track to be named Fed Chairman for another term… I had read previously that the POTUS wasn’t a fan of Powell’s and recently called Ms. Brainard to the White House, which really caused some to think that she was going to be the POTUS’s choice to be the Chairman of the Fed/ Cabal/ Cartel… 

But according to Di Martino Booth, Ms. Brainard is not confirmable… And so we’ll be stuck with Powell for another term… Don’t get me wrong, I’m not a fan of Brainard either, as she has been on the inside circle of Fed/ Cabal/ Cartel heads for a long time and if anything has happened, the Fed / Cabal/ Cartel  has gained more control, which to me is a very bad thing…

Mexico’s central bank raised interest rates by a quarter point for its fourth consecutive meeting, sticking to a steady adjustment pace even as inflation accelerated faster than expected.

Policy makers, led by central bank Governor Alejandro Diaz de Leon, cast a split 4-1 vote to raise the key rate to 5% on Thursday. So, Mexico like Brazil have gone way out on a limb by hiking rates much higher than all other countries… I’ve always said that the Mexican peso needed a “risk premium interest rate”… One that  paid investors for their “risk” with the peso… Well, now Mexico has that “risk premium”… But… there’s a difference going on here, and that is their real interest rates is still  way below 5%… And so the peso remains a petrol currency only…

But.. kudos to Mexico’s Central Bank  Governor, he’s certainly not waiting for the U.S. to hike rates now is he? 

The U.S. Data Cupboard today, is basically empty, with only the Empire manufacturing index to print… no biggie… But tomorrow we will see Rocktober Retail Sales, which the BHI (Butler Household Index) indicates will be soft, and most likey will not meet expectations. We’ll also see the Rocktober prints of Industrial Production and Capacity Utilization… But that’s tomorrow, we’ll worry about tomorrow when that day comes.. Today, is all that’s promised to us…

To recap… Gold & Silver had a strong week last week, even with some price capping going on curtesy of the price manipulators… The dollar which was on a roll all week and appeared to be getting ready to take off to the moon, got a rude awakening on Friday when the U. of Michigan, confidence report dropped to a multi-decade low, and the dollar got sold to end the week. It appears that Jerome Powell will hold on to his Chairmanship of the Fed/ Cabal/ Cartel… And Mexico has hiked rates again bringing their central rate to 5%… But Chuck doesn’t believe it’s enough to provide a “risk premium” at this point. And in the overnight markets the dollar has just drifted lower, and Gold & Silver have given back a small piece of the gains last week. 

For What It’s Worth…  Well… longtime readers may recall me telling them over and over again, that the Gov’t wants to see inflation, for it’s the only way they can deal with the amount of debt that we have… And then longtime readers, Bob, sent me a link to an article about how  the Gov’t’s plans are all playing out, and it can be found here: National Economic Council Director Brian Deese Claims Inflation Working Perfectly – As Designed, a Collapsing U.S. Economy Demands More Congressional Spending – The Last Refuge (theconservativetreehouse.com)

Or, here’s your snippet:” JoeBama’s National Economic Council Director Brian Deese, the twenty-something central planner in charge of all White House economic policy, tells a curiously skeptical Jake Tapper that things are working swimmingly, exactly according to plan.

According to the Biden-Deese theory on sustainable economic policy, massive spending creates massive inflation; which creates an increased demand for government subsidy to afford basic products; which creates a growing dependency on the government; which creates a need for massive spending.  Wash-Rinse-Repeat.

This is exactly the expanding economic dependency model sold by socialists around the world for generations, which Barack Obama and his Biden administration promise they have now perfected in order to remove the pesky inequities always associated with unbridled capitalism.  Smile everyone, government cheese aplenty….”

Chuck again… Yes, either you live under a rock, or you are experiencing inflation that the Gov’t so desperately needs, but we as citizens don’t! No wonder the Gov’t doesn’t see this as real inflation, they’ve got to sell it to the sheeple that it’s only transitory, and won’t last…  

Market Price 11/15/2021: American Style: A$ .7365,  kiwi .7074,  C$ .7981, euro 1.1450, sterling 1.3430, Swiss $1.0871, European Style: rand 15.1977, krone 8.6617, SEK 8.7422,  forint 319.44,  zloty 4.0471,  koruna 22.0225, RUB 72.83, yen 113.86, sing 1.3567, HKD 7.7902, INR 74.35, China 6.3786, peso 20.52, BRL 5.4577,  BBDXY 1,169.11, Dollar Index 95.04,  Oil $79.64, 10-year 1.55%, Silver $25.22, Platinum $1.085.00, Palladium $2,182.00, Copper $4.49, and Gold… $1,862.60

That’s it for today… OK… I received a notice from my PCP that he needs to see me this week. So, this will be a short week for me as I will be reporting to the doctor bright and early Thursday morning…  OK… Congrats go out to the SLU Men’s and Women’s soccer teams as both won their conference’s (A10) tournament, and the SLU Men are undefeated so far this year!  Maybe they can return to the glory years when the great Harry Keough was the coach!   I have a special treat for lunch today… I’m going to receive a visit from longtime friend, and former boss, Frank trotter, who’s coming to the mountain to see the wise a….  on the hill! HAHAHAHAHAHA…   The David Ian Trio take us to the finish line today with their version of the Christmas classic: Silver Bells…  I hope you have a Marvelous Monday today, and please Be Good To Yourself!

Chuck Butler