Rocktober 15, 2020
* Gold & Silver rally on Wed. but are soft this morning
* Dollar bugs have confidence that could be short term?
Good day… And a Tub Thumpin’ Thursday to you! All’s well with my heart and the pacemaker, according to the device specialist and the heart doc. Yesterday… We talked baseball a bit, before getting down the brass tacks… I have to say that going to the hospital for the doctor visit, and parking far away from the door, the whole process just wore me out… I came home, had a bit to eat for lunch, and then fell asleep in my recliner, where I have to elevate my legs for 3 hours a day, and so I figure if I have to sit there for 3 hours, I might as well take a nap! I woke up in time to turn on the NLCS game 3, and watch the Dodgers go bananas on Braves pitching, it was 14-0 in the 3rd inning! It didn’t matter if Warren Spahn was pitching, the Dodgers were going to hit the ball with authority! WOW! I have a treat song for the older crowd this morning, it’s Nina Simone with her song: Feeling Good…. I know Michael Buble did a retake on this song, but I prefer the original… What a sexy sultry voice!
There just wasn’t much going on in the markets yesterday folks… so this ought to be short-n-sweet, but you never know what I might ho off on a tangent on, so let’s grab that cup of coffee, and begin the day!
Gold found a way to hold onto most of its early morning trading gain of $11, as the day went along… Of course there was some upward movement during the day that quickly had cold water thrown on it by the price manipulators… Gold closed at $1,902.20, up $9.50 on the day, and Silver had to fight to hold onto most of its early morning trading gains too. Silver closed at $24.36, up 36-cents on the day…
But in the overnight and early trading markets, Gold & Silver look pretty soft, and have given back some gains… Gold is down $5, and Silver is down 50-cents in the early trading. And overnight, the euro was sold to bring the single unit to the brink of falling below 1.17… I have to think that the failure to come up with another stimulus deal has given the dollar bugs a lot of confidence… But that’s to be short term right? Because another stimulus is coming… We just don’t know when…
I really don’t see this pattern of the price manipulators taking chunks out of Gold and Silver’s prices as we head to the end of the year… But… the other day, when I was talking to the Great Mogambo Guru, I realized that I had nothing to complain about with Gold & Silver… Gold has outperformed everything since 2000… And this past year it has put the stock market to shame…. So… It shouldn’t matter to me that Gold was above $2,000 a couple of times this year, only to see it settle in around $1,900… It’s still better than anything else!
You know, I recall back in the early 2000’s I was reading Bill Bonner’s letter one day, and he said that the trade of the decade was to sell stocks and buy Gold… I immediately made my first buy of Gold and began telling anyone that would listen to me that they should buy Gold… Well, his trade of decade turned out to be bang on! And while technically it ended in 2010… We could say that adding another decade still makes it bang on!
Well, the currencies didn’t see the light that Gold & Silver was shining on them yesterday, and the while the euro basically traded flat on the day, the Aussie dollar lost more ground, and the Russian ruble, which had recently gained back a big chunk of the value it lost recently, can’t stand prosperity, and lost major ground on the day.. Just because the price of Oil slid below $40? No, there’s more at play here folks…. And maybe the recent upward move was too far too fast… I’m just saying…
It was nice to see the U.S. Postal Service announce that they were going to reverse the recent changes they made that slowed down mail delivery, ahead of the glut of mail that will need to be delivered before the election… Good move…
OK, I was content to get this out the door short-n-sweet this morning, but then along came a spider and sat down beside me, and whispered in my ear that I needed to include these quotes from Fed Heads… So, I guess I will do just that, and you’ll see why I the spider wanted me to include them this morning, I’m sure…. Here we go!
Yesterday, San Fran Fed president Mary Daly made a stunning admission: just in case there was any confusion, the Fed knows that it has – and continues to blow – an asset bubble making “a few” who own stocks uber-rich, but the economy is now so reliant on the Fed liquidity fire hose that the moment the Fed threatened to pop this bubble, which some have estimated to be around $90 trillion in liquidity, would result in economic devastation and leave millions without a job.
“I am not willing to trade millions of jobs for people who need a ladder rung up in order to keep the stock market from going up for a few who have those holdings,” Daly said while answering questions following a speech on – what else – racial inequality at a virtual event Tuesday hosted by the University of California, Irvine.
Just one day after Daly admitted that the Fed is trapped, the Fed’s Vice Chair for Supervision Randal Quarles, made an even more shocking – or rather “shocking” admission, when he said that “the Treasury market is now so large that the U.S. central bank may have to continue to be involved to keep it functioning properly.”
Chuck again… I got those off an article on zerohedge.com that Ed Steer also highlighted this morning… So, the Cartel, I mean the Fed Heads know that they are manipulating the markets, and now are so brazen about it they talk about it in public? In the words of my good friend, the Great Mogambo Guru… “We’re Freakin’ Doomed!”
The U.S. Data Cupboard finally has something for us to view this morning, and right out of the starting blocks this morning we have the Weekly Initial Jobless Claims, which have already printed, and look bad… 898,000 claims were filed last week, that’s up by 53,000 from the previous week… This data set is heading the wrong way isn’t it? of course it is… I don’t like being right when the thing I’m right about is so wrong for the country’s economy, but… I do believe that this data set pretty much tells us that there was no V recovery, and we’re in the beginning stages of a down and dirty depression…
To recap… Gold & Silver found a way to hold on to most of their early gains yesterday, but are back on the selling blocks this morning… The currencies keep getting whipped by the dollar bugs, and Chuck thinks it all has to do with the confidence the dollar bugs have now that there is no stimulus deal… And then a spider whispered in Chuck’s ear and we found out that the cartel, I mean Fed Heads are now talking about how they manipulate the markets… UGH!
For What It’s Worth… Ok, you all know that I have no love for JPMorgan and Jamie Dimon their CEO, as he seems to be Teflon coated as the 5 felony counts against his firm have been filed… So, when I read the title of this article: “If You’re Baffled as to Why JPMorgan Chase’s Board Hasn’t Sacked Jamie Dimon as the Bank Racked Up 5 Felony Counts – Here’s Your Answer”… Now doesn’t that want you to read the article too? Ok, it’s on the Wallstreetonparade.com site, but here’s the actual link to the article: https://wallstreetonparade.com/2020/10/if-youre-baffled-as-to-why-jpmorgan-chases-board-hasnt-sacked-jamie-dimon-as-the-bank-racked-up-5-felony-counts-heres-your-answer/
Or, here’s your snippet: “For years we’ve been trying to figure out why JPMorgan’s Board of Directors hasn’t sacked its Chairman and CEO, Jamie Dimon, as the bank racked up two felony counts in 2014 for its failure to alert U.S. regulators to glaring red flags in the bank account it held for Bernie Madoff’s Ponzi scheme; one felony count in 2015 for rigging foreign exchange markets; and two more felony counts just last month for rigging the precious metals and U.S. Treasury market. (The bank admitted to all five counts.) In addition, the bank came under another criminal investigation in 2012 and 2013 when it lost $6 billion of its bank depositors’ money gambling in credit derivatives in London (the London Whale scandal).
Turns out Jamie Dimon has been taking very good care of the Directors on his Board and they have been taking very good care of Dimon – turning him into a billionaire, notwithstanding the worst criminal record of any major bank in the history of the United States.
The JPMorgan Chase Board of Directors has a stunning number of incestuous conflicts of interest, few of which have not been properly spelled out to shareholders. Others have never been mentioned to shareholders.”
Chuck again… The article goes on to describe the relationship between JPMorgan and the head of NBC Universal, which owns Comcast… it’s pretty hairy folks… And a long read to allocate enough time if you are curious about this whole incestuous set up…. I was curious and curiouser!
Market Prices 10/15/20: American Style: A$ .7067, kiwi .6588, C$ .7568, euro 1.1705, sterling 1.2918, Swiss $1.0940, European Style: rand 16.6876, krone 9.3750, SEK 8.8645, forint 311.47, zloty 3.8890, koruna 23.3520, RUB 77.25, yen 105.22, sing 1.3615, HKD 7.7487, INR 73.35, China 6.7300, peso 21.48, BRL 5.5650, Dollar Index 93.77, Oil $39.58, 10-year .69%, Silver $23.87, Platinum $846.00, Palladium $2,370.00, and Gold… $1,897.00
That’s it for today… Well, in the past week, I’ve had my oncologist tell me to continue what I’m doing, and my heart doctor the same, so I guess that’s what I’ll do! No seriously, I need to lose weight, but I’ve found that that’s near impossible these days, so… I’ll just grin and bear it, I guess… The Wound Center sent me a box of supplies to change the dressings on my legs, and the box was so heavy! I was hoping that they got mixed up and instead of Silver Alginate pad, they put Silver bars in the box! HA! Now that would BE a HUGE MIX UP, eh? The temps fell out of bed here, and it’s chilly outside once again… time to get the woolies out, as my friend in Perth Australia, Tina, used to say… Lynyrd Skynyrd takes us to the finish line today with their song: The Ballad of Curtis Lowe… I hope you have a Tub Thumpin’ Thursday and Fantastico Friday tomorrow, and I ask you very seriously, to Be Good To Yourself!