The Overnight Markets See The Dollar Bugs Return!

September 25, 2019

* RBNZ leaves rates unchanged… 

* Russian ruble isn’t intimidated by the dollar bugs… 

 

Good Day… And a Wonderful Wednesday to you… Still a bit under the weather yesterday, and ended up sleeping most of the day… I really don’t like wasting days like that, but when the body needs to sleep. You have to let it sleep! I have no answer as to why, suddenly, I’m having trouble dealing with my chemo… But, it’ll have to change soon, or else, it’ll become another search for a new chemo… I had a reader send me a note the other day, and say, that he was unaware that I had cancer… I put that down to being a new reader, and I thank him for his concern… But I’ve been dealing with my Stage 4 metastatic cancer for over 12 years now… I’m proud of myself for conducting myself in a strong willed, manner, to beat back this dreadful disease, but as I grow older, I do believe all the years of taking one form of chemo after another has mad me age faster than I want to… Oh, well, it is what it is, no time to sit and wonder… right? Elton John greets me this morning with a song from his early career, when I thought his music was great… Mona Lisas and Mad Hatters…

Well, it was another non-eventful day for the currencies yesterday, as try as they might to fight back VS the dollar, they just couldn’t get out of the mud they’re stuck in. Gold was back on the rally tracks following Friday’s big gain with a $9.90 gain on Monday. The Dow to Gold ratio that I told you about a couple of weeks ago, is still at more than 17 ounces of Gold to buy the Dow… That means there’s still time to buy before the explosive phase in price that is, begins to work for Gold & Silver… I’m stepping out on a limb here, no worries, a big fat one to support me, and say that when we look back on the Gold & Silver rally, we’ll see that Silver outperformed Gold on a percentage basis…

In the overnight markets, the currencies have lost  a little ground to the dollar, but the Russian ruble remains steady at the wheel, and is not intimidated by the dollar bugs…  You’ve gotta like that in a currency! 

I keep reading about Silver mines shutting down, and the supply for Silver waning, and I keep thinking that one morning I’ll wake up and turn on the laptop, and go to the metals pricing screen, and see that Silver has gapped up to $25… And from there, it continues to soar… Because doesn’t a lack of supply equal a higher price? Don’t tell me that even this adage that has been around since the dawn of time, doesn’t matter any longer! No! I won’t hear about that! Crazy traders that no longer use fundamentals to value assets… What on earth are they smoking?

Whoa, there Partner! You had better slow down here… You were THAT CLOSE to saying something you shouldn’t! I certainly don’t want strangers showing up at my door, asking me to get the car with them and go for a ride!

OK… Well the Reserve Bank of New Zealand (RBNZ ) left their OCR (official cash rate) at 1% yesterday, and in doing so they commented about how Employment is around its maximum sustainable level, and inflation remains within their target range but below the 2 percent mid-point.
Global trade and other political tensions remain elevated and continue to subdue the global growth outlook, dampening demand for New Zealand’s goods and services.

Well… I’m still mad at the RBNZ for their switcheroo on their monetary policy last year, but as time goes on doesn’t all wounds heal? I have one that won’t heal, if that tells you anything! 

Well, it looks as though we’re going to go through the 90’s once again… Remember back then Slick Willy Clinton was our president, and Congress tried to impeach him… but they didn’t have the votes, and now President Trump is going to face an impeachment vote… I doubt that the votes are there to impeach him, but if they are, it would throw the U.S. into political calamity, and currency markets don’t like Political Calamity, just check the most recent bout of this in the U.K. when the people voted for BREXIT, and the PM resigned, and so on… I’m just saying…

OK I’m no political writer, but, this thing seems to be screaming to me that it won’t be good for the dollar… And so I mentioned it…  Other than that, I tap out on political talk… 

The U.S. Data Cupboard today is completely emptied out… Not even a 3rd tier piece of data to offer us today. But yesterday the Markit PMI’s (manufacturing Index) report finally printed, and showed that in August the index rose to 51, from 50.3 in July… I really expected this to show that it dipped below the line in the sand figure of 50, but I guess not… Consumer Confidence also printed and showed a drop from 134.1 to 125.4…  This is for September, so it’s current…   

I’m not one to get all lathered up or sad about what the stupid Consumer Confidence report shows each month, due to the fact that it’s really a check on the pulse of the stock market…  The people they check with to see if they are confident or not, are so hung up on the stock market that if they’ve experienced stock losses, they report that they aren’t confident… 

To recap…  It was a non-eventful day in the currencies, but Gold added nearly $10 to its figure, that’s becoming quite shapely! HA  Chuck goes all high-0 Silver on us this morning. The RBNZ left rates the unchanged, which surprised no one, for they are only 1%…  In the overnight markets the currencies have lost a little ground, but the Russian ruble stands strong against the dollar bulls… 

For What it’s Worth… You know me folks, I’m not going to let these problems for JPMorgan be swept under a rug… The U.S. Regulators called their metals desk “A Criminal Enterprise”… And yet the major media outlets don’t report on this? Tell me why? Oh, I know why, and that’s what this FWIS article is all about today, and it can be found here: https://www.rt.com/business/469340-jp-morgan-spoofing-keiser/

Or, here’s your snippet: “The U.S. authorities were aware that three JP Morgan traders were manipulating precious metals markets from the start and intentionally “looked the other way,” Max Keiser believes.

“Eric Holder, who was attorney general under [former US President Barack] Obama when this first came to light, said that market manipulation and fraud were important for the American economy and that he, as the attorney general, could not prosecute,” the host of RT’s Keiser Report says, calling the JP Morgan fraudsters and the likes “too big to jail.”

“And that too-big-to-jail was part of the legal landscape for America, and bankers were getting a green light to commit massive fraud.”

The fact that precious metals traders at JP Morgan made millions through fraudulent trades, operating a criminal conspiracy to manipulate prices called ‘spoofing’, has been an open secret for years, with Max himself describing the scheme back in 2011.

However, not until this week did the Justice Department charge the traders with fraud, as well as “conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity” – a charge normally reserved for members of an organized crime ring. Max Keiser says the near decade of neglect towards this major case has actually been somewhat of an official agenda for the authorities.

“That was the message from the Justice Department – commit all the fraud you need as long as you support the U.S. dollar.”

“If you need to manipulate the markets and break laws, then we’re going to look the other way because the Justice Department believes that defrauding the markets is sacrosanct with the American way.” Keiser believes the U.S. authorities have always “equated Americanism and capitalism with fraud.”

Chuck again… I know, I know it’s a long FWIW snippet today, but I really wanted to print even more of it! But I think I got the message across… and that is, the message that I wrote about all those years ago, regarding how the price manipulation works, is all coming to roost… I wonder what all those people that doubted me are thinking now? 

Currencies today 9/25/19 American Style: A$ .6763, kiwi .6298, C$ .7532, euro 1.0981, sterling 1.2381, Swiss $1.0131, European Style: rand 15.0258, krone 9.0419, SEK 9.7274, forint 304.94, zloty 3.9991, koruna 23.5513, RUB 63.79, yen 107.44, sing 1.3778, HKD 7.8361, INR 70.89, China 7.1118, peso 19.58, BRL 4.1640, Dollar Index 98.76, Oil $56.21, 10-year 1.65%, Silver $18.49, Platinum $951.42, Palladium $1,662.50, and Gold… $1,526.83

That’s it for today… Still not a good night and morning for yours truly, but I do feel that I’m turning the corner today… I do go see my regular doctor today about my leg… Something’s got to change, this is ridiculous!  What a heartbreaking loss last night for my beloved Cardinals! Their pitcher nearly had a no-hitter, but when that didn’t happen, the game ended up going 19 innings! A marathon game, and then they have to turn around and play a day game today… That’ll be shown on YOUTUBE!  UGH!  I guess I had better get used to this kind of stuff, as streaming games on other outlets seems to be the method of delivery that’s trending upward… Three Dog Night takes us to the finish line today with their song: Mama Told Me Not To Come…   A song that explains what parties were like in the 70’s… I hope you have a Wonderful Wednesday, and please Be Good To Yourself!

Chuck Butler