December 15, 2021
* Currencies & metals get sold on Tuesday…
* U.S. debt is Ok’d to increase another $2.5 Trillion…
Good Day… And a Wonderful Wednesday to you! I attended the Missouri Botanical Gardens, Gardens Glo last night with some family… it was amazing all the lights… But I was worn down by the time I had hiked all over the Botanical Gardens, my hip hurt, my knee hurt, and I was ready for bed! Which was a good thing, since on Monday night, I hardly slept a wink… I don’t know what was wrong, but I was wide awake, and couldn’t fall asleep… You may have noticed the much earlier timestamp on the Pfennig yesterday… If not, trust me, I sent it out very early! Beegie Adair is playing her version of the Christmas Waltz… I love this melody, and the words are brilliant…
Well, today’s the day, eh? The day that the FOMC meets to decide what lies they will tell the markets and U.S. citizenry… Wait, What? Do you mean to tell me that the Fed/ Cabal/ Cartel heads lie to us? Of course they do and if you don’t believe that they do, then I’ve got a bridge to sell you! Not to get too far off target today, but I’m still getting notes from the Fed Reserve St. Louis that they need someone like me to edit their publication… Now, don’t you just find that to be absolutely hilarious? Because I do, for sure!
I went through what the Fed/ Cabal/ Cartel chairman Jerome Powell, will say today, so if you don’t recall, simply go to www.dailypfennig.com and read yesterday’s Pfennig over! So, having done that already, that is, told you what he would be saying, it’s time to talk about the other Central Bank meetings this week… Not in all my years covering Central Banks do I recall seeing the major Central Banks of the World, all meet in the same week… In addition to the FOMC, the Bank of England will come first tomorrow, they will be followed by the European Central Bank (ECB), and then on Friday, the Bank of Japan will also meet… My spider sense is tingling, folks… I can’t put my finger on why it’s tingling, but, it could have something to do with the scenario I laid out for you over a year ago, about how we wake up one day, the financial system we all know and love has changed… This is the Perfect Storm, if you will, for that to happen, folks… think about that, and let that sink in…
Most likely nothing will come of this “meeting of the minds” NOT! This week… But one never knows, does one?
So, the markets yesterday, were ugly for the currencies and metals… The dollar continues to get bought hand over fist, kicking tail and taking names later.. Gold closed down $15.70 yesterday, and Silver closed down 38-cents… Silver was hanging on to the $22 handle by the skin of its teeth… The BBDXY rose to 1,188.09, from 1,183.20 yesterday morning… Even the recent run by the Chinese renminbi has been stopped. I don’t know what to make of this, folks… either these traders, investors, hedge fund managers, are the most dimwitted bunch in the history of mankind, or they are the smartest… Only time will tell how the cookie crumbles here folks… If I were a betting man, my money would be on the former of the two…
Gold closed yesterday down $15.70 to end the day at $1,772.20, and Silver was down $38-cents to end the day at $22.03… All I can say here folks, is to batten down the hatches, look for major dips to add to positions, or just stand pat with what you have, and wait out all this silliness, and dimwittery… I think I just made up a new word there: dimwittery… Spell check sure doesn’t like it!
In the overnight markets last night… There has been some minor slippage in the dollar, but Gold & Silver are starting the day in the red… I would have thought that everything would be on hold this morning, as traders await the FOMC Meeting results.. But apparently, that’s not going to happen. The BBDXY has slipped overnight to 1,187.61… Still a lofty figure for the dollar, that in my opinion is so overbought, it’s nuts! The euro is still oversold, and by association with the dollar, that means the dollar is overbought!
The price of Oil has slipped below the $70 handle, and doesn’t look as perky as it did a few days ago… The Treasury’s 10-year yield is holding steady at 1.45%, which means that there is enough bond buying to support the level, without the support the yield would rise… And it should be rising, given the inflation numbers, but… We all know that the Fed/ cabal/ Cartel’s tapering isn’t really “tapering”, now don’t we? well, if we don’t, we should find out more!
The U.S. Senate has voted to increase the country’s debt ceiling by $2.5 trillion, enough to fund operations through early 2023.
Passed by a 50-49 party line vote, the plan is to send it to President Biden’s desk for his signature. Sure, why not? Just keep adding on to our already unpayable debt… I shake my head in disgust at these dolts, who are so out of touch with what’s going on in the country and economics… they are totally clueless… Think about that for a minute… You have a Central Bank that has stated its intentions to taper, which means they aren’t going to buy bonds any longer, and you have lawmakers who decide to up the ante on the Debt issuance, which means even more Bonds will have to be sold to finance this ever expanding debt…
But, hey! You’ve got to get, while the gettin’s good, right? And right now, the country is so tied up with the fear factor of Covid, that they don’t have their eyes on the ball (debt) right now… Don’t ever let a good crisis go to waste, eh? Besides, by the time the mid-terms come around, inflation will be so strong that most of the bums will be voted out, for what voters will feel is the bums inability to control inflation… So, like I said, you’ve got to get, while the gettin’s good…
This news became available over the weekend, that an offer by President Xi to help the USA with the Midwest tornado damage had been made… I like the olive branch that Xi has offered to the U.S., but know that since we as a country have made CHINA out to be a villian that no acceptance of the olive branch will be made… And to me that’s a real shame… In the long run, folks, it isn’t behooving to us to keep China at an arm’s distance and portray them as villians… I’m just saying…
Circling back to the metals yesterday… the selling in the metals took place even as PPI, a key inflation gauge showed that US prices continued to climb in November as pandemic-era supply chain chaos and a labor shortage continues. Yes, PPI is often referred to as “pipeline inflation”, because these price increase eventually show up in Consumer Inflation… So, yesterday, PPI for November increased .0.8%, which annualized is a 9.6% rise, which just happens to be the highest level ever recorded by the data set, which began reporting wholesale inflation with the PPI in 2010…
I find this news to be very disturbing, folks… for 1. It means that consumer inflation is probably heading even higher in the coming months, and 2. With Gold & Silver getting sold, there had to be note playing by the boys in the band, and their price manipulation scheme… For, if you asked anyone on the street that had a college economics course, what they thought would be the outcome for the metals given the fact that PPI is soaring, they would tell you that Gold & Silver should be rallying on that news…
I rest my case, your honor, so plase do your duty and judge the price manipulators guilty as charged, and put them away for many years!
Ed Steer, of www.edsteergoldandsilver.com, had this to say in his letter this morning: “You don’t need me or anyone else to tell you what happened either at the COMEX open, or when the Producer Price Index number was released at 8:30 a.m. in New York yesterday morning. Just Google the word ‘egregious’ —
Precious metal prices should have been screaming higher on that news, but ‘da boyz’ were there to make sure that it was seen as a non-event in everyone’s eyes.
I didn’t think that the commercial traders of whatever stripe could be more brazen or in your face than they’ve been in the past…but I was wrong about that.” – Ed Steer
Well, it appears that the Eurozone is headed for the same inflation dilemma that the U.S. is experiencing, as the Russian gas pipeline, Nord Stream 2, was blocked for not meeting European law. And all that means is that gas prices in the Eurozone are going to skyrocket…
Over the last month, a series of setbacks for the new Russian pipeline have been seen. German energy regulators suspended Nord Stream 2’s certification process, and the US has also sanctioned companies affiliated with the pipeline’s construction. As once again the U.S. has stuck their nose in other people’s business… The U.S. has just about killed oil production in the U.S. and now they want to stop Europe from getting the gas they need ahead of the winter that could be cold… Why, oh why, does the sun keep on shining? Why does the sea rush the shore? Why do the birds go on singing? Why do the stars glow above? Don’t they know, it’s the end of the world, ’cause no one can get the gas they need?
Today’s Data Cupboard is a doozy! Not only will we have the outcome of the FOMC Meeting today, but also the Nov. print of Retail Sales, and a slew of 2nd and 3rd Tier economic prints. But the Big Kahuna today is the FOMC meeting and the press conference that will follow the meeting and be keyed by Jerome Powell… And this is where the lies begin, folks… Whether or not he decides to tell the truth or dare… will go a long way toward rebuilding or destroying his credibility…
To recap… Yesterday, Producer Prices soared in Nov, and reached 9.6% on an annualized basis, which means that higher Consumer prices are in the pipeline. And guess what Gold did? Well, it didn’t get bought, and being as brazen as one could be, the price manipulators came, saw and defeated Gold’s rise on higher inflation data… Today, the FOMC will conclude their meeting with a press conference afterward, in which time, Jerome Powell, will tell us that the Fed has decided to quicken their pace of tapering, which will allow them the room to hike rates earlier next year than expected… oh, boy! By the time the Fed/ Cabal/ Cartel gets around to addressing the soaring inflation, they’ll be so far behind the inflation 8 Ball… It’s a sad thing to wath folks… it really is…
Market prices 12/15/202: American Style: A$ .7144, kiwi .6749, C$ .7768, euro 1.1266, sterling 1.3259, Swiss $1.0814, European Style: rand 16.1552, krone 9.0891, SEK 9.1097, forint 327.67, zloty 4.1037, koruna 22.4315, RUB 73.59, yen 113.87, sing 1.3675, HKD 7.8013, INR 75.35, China 6.3641, peso 21.21, BRL 5.6738, BBDXY 1,187.61, Dollar Index 96.51, Oil $69.97, 10-year 1.45%, Silver $21.91, Platinum $920.00, Palladium $1,686.00, Copper 4.23, and Gold… $1,770.90
That’s it for today… Today is the birthday of my younger sister, Teri… She lives in Houston, which means I don’t see her very often.. So happy Birthday, sis, hope your day is grand! December 15th was traditionally the day my dad would bring home our Christmas Tree… And the Christmas celebraton at the Butler House would begin, and not end until New Years Day… Our Blues played well last night and beat the Dallas Stars 4-1… the Blues still have a ton of players out on Covid protocol But are playing well… With their top goalie out, the defense has really buckled down and protected the backup goalie… Well, it’s college Basketball, and NHL hockey that’s all that’s left until spring training… Oh, we will have the winter Olymipics, like we as Americans get most of those winter sports… I’m just saying… Leif Shires and his Cool Jazz Christmas band, take us to the finish line today with their version of the song: Silver Bells… this is the first true Christmas song I remember singing, as a child… I hope you have a Wonderful Wednesday, and please Be Good To Yourself!
Chuck Butler