Rocktober 31, 2023
* currencies rally on Monday
* The Mad King, James Grant, and more on this Tuesday!
Good Day… And a Happy Halloween Tom Terrific Tuesday to you! Boo! It’s going to be a very cold one tonight, sitting out giving out candy to trick-or-treaters… I sure hope they have learned some good jokes! Usually, the jokes these days are pretty lame, if there is a joke at all! Some Trick-or-treaters just show up and want a hand out… I usually sneer at them for their lack of participating in Halloween the right way! Almost all of the little kids in the neighborhood, that I knew, have grown up and out of the subdivision… So, it’s up to the new young ones to take over… C’Mon give me a good joke! Radiohead greets me this morning with a very appropriate named song for today: Creep…
Well, we started the week yesterday morning with the dollar getting sold, and it continued to get sold throughout the day, not harshly, but sold nonetheless. The BBDXY was down 3 index points on the day, and closed at 1,270. I think the dollar bugs are realizing that the Fed Heads aren’t going to hike rates this week, and have decided that there were two steps ahead of the Fed/ Cabal/ Cartel, marking up the dollar… So, now that have to pare back those upward marks… At least that’s how I see it playing out… Gold never found a bid yesterday, and ended the day down $10.10 to close at $1,996.50… Silver was up BIG at one point of the day, but ended up just 21-cents, after climbing as high as up 41-cents earlier in the day. Sliver closed at $23.40, so a good day for Silver, bad day for Gold… A mixed bag-o-metal prices!
I don’t know what is going on with the price of Oil… First last week, Oil got sold because the ground offensive was being delayed, then it got bought because the ground offensive began, and yesterday, Oil got sold again, with the ground offensive still going on… So, figure that one out, Batman! The price of Oil lost $2 yesterday and ended the day with an $82 handle…. And the 10-year’s yield didn’t budge from its earlier position of 4.89%…
In the overnight markets last night…. The dollar drifted here and there, but ended up this morning in the same clothes it wore at yesterday’s close (1,270). The euro has perked up and traded over 1.06 again… and that gain in the euro was reflected in the old Dollar Index which fell to 1.06.04 overnight. I think the markets are coming to grips with the thought that the Fed Heads will leave rates unchanged tomorrow, and that they should be reconciling that with selling the dollar… At least that’s what I see happening, and I’ve seen currency market moves since 1992… WOW! Are you really that old Chuck? Yes, the move to the currency, and foreign bond desk in 1992, was my second career… After years of running the bond operations, I made the leap to trading… And what a leap it lead to be!
Ok, enough reminiscing here… Gold is up $3 in the early trading this morning and knocking on the door of $2,000 once again. Silver is off a few cents here and there to start the day… But Gold looks like it wants to run some today, so if you’re looking to buy Gold this morning, may I suggest that you do it early in the day? Good… Ok, the price of Oil remains in the $82 handle this morning, and the yield on the 10-year has dropped to 4.81%… I really have to think that there’s some funny business going on in the 10-year bond… You know, not funny ha-ha, but funny like bond buying by some entity that has the deep pockets to move a bond market… And I can only think of one entity like that… The Fed/ Cabal/ Cartel… I’m just saying…
Ok, long timers know that I love reading James Grant whenever I get the opportunity to do so… And yesterday, he was quoted on zerohedge.com! So, let’s listen in to see what’s on James Grant’s mind these days… “Gold’s About to Have its Day: Jim Grant Warns No One’s Prepared For “Higher Yields For Much, Much, Much Longer” It raises the interesting possibility that we are embarked on a new bond bear market,» says Jim Grant, editor of the iconic investment bulletin «Grant’s Interest Rate Observer». «Bonds are unusual in the world of financial assets as their prices historically tend to trend in generation-length intervals; something we don’t see so much in stocks or commodities.” – James Grant…
Chuck again… you know, James Grant has never been one to hype something… And when he says that “Gold’s about to have its day”, he’s done the research, comparisons, rechecked them, and then says what he has to say…
This from the Mad King on Twitter yesterday: “To address the US deficit:
Consider implementing a policy where elected officials receive only 50% of their salaries upfront.
The remaining half would be disbursed once the deficit falls below 1%.
In the interim, these withheld funds could be used to purchase US Treasury securities to support deficit reduction efforts.
You’ll see how they become efficient”
Chuck again… Well, I subscribe to the Mad King, and he’s very astute with his comments, and opinions on things… look him up if you’re interested…
In a follow up from yesterday’s conversation about debt and Treasury issuance came this headline from Wolfstreet.com “Marketable US Treasury Debt to Explode by $2.85 Trillion in the 10 Months from End of Debt Ceiling to March 31, 2024
Including $1.56 trillion in Q4 2023 & Q1 2024 combined. Government has gone nuts.” – WolfStreet.com
Why yes Governor, I do believe the Gov’t has gone nuts!
This from G. Edward Griffin’s Need To Know News…. “Australian Banks and ATMs Close as It Is Set to Go Completely Cashless within 5 Years”
Chuck again, remember last week when I told you about how the Banks were closing branches, and I said to you that I may be being jaded here, but I thought it was more about how banks were getting ready for a digital currency, and you don’t need branches for that! Looks like Australia is one step ahead of the Fed Heads…
Boo! did I scare you? If you go out in the woods today…. you’re in for a sure surprise… Boo!
Just having a little fun writing the letter this morning… I was up late again last night watching the World Series Game 3… The Great Pete Rose, once said that the “odd games in series are the important games to win”… And that comment has stuck with me since the 70’s… And Game 1 and 3 so far has gone to the Rangers…
Getting back to the digital currency discussion… I told you all 3 years ago, what would happen to your civil liberties, if the Gov’t implemented a digital currency… But why just take it from me? Here’s someone with a lot more gray matter than I to explain: Catherine Austin Fitts said that unless we have a sovereign state government protecting sovereign individuals who are free to transact, including transacting privately, without invasive technology, we will have no sovereignty. It will be replaced with central control by the bankers. She said that this technology, combined with other systems, will turn your home, your car and community into a digital concentration camp. It will be the end of human freedom through the financial system.
Boy that sounds even harsher than what I told you originally! But maybe it needed to be said, because this will hit every one of us, folks… There’s no hiding from this, no living off the grid, if you will…
And this came to me from good friend, Dennis Miller, who got it from www.cato.org “Federal spending jumped from $4.45 trillion in 2019 to $6.21 trillion in 2023, according to the Congressional Budget Office. That is a 40 percent increase in four years”…
Sure there was plandemic spending, but beyond that the non-defensive spending, which includes interest on bonds, was up 43%, 2019-2023…. And you can only imagine what the number will be in this new increased rate environment… that I keep harping about…
I noticed something that I hadn’t seen before on the MarketWatch Economic Calendar yesterday, and it intrigued me, so… I did some research… The item was the Announces Marketable Borrowing Estimates Announces Marketable Borrowing Estimates… So I thought, this ought to be good… And here it is: During the January – March 2024 quarter, Treasury expects to borrow $816 billion in privately-held net marketable debt During the January – March 2024 quarter, Treasury expects to borrow $816 billion in privately-held net marketable debt.
If you use the new math, you’ll come to an annual borrowing estimate of $3.265 Trillion!!!!!!!! Tell me it ain’t so, Joe! That will be the straw that breaks the camel’s back, folks… so, you’ve got a year so to speak to get your investment portfolio diversified, and I mean invested in Gold & Silver!
The U.S. Data Cupboard today has the Employment Cost Index (ECI) for the 3rd QTR… I do believe we’ll see this remain at a bout a 1% gain, which means wages are NOT keeping up with inflation… And that’s a bad thing! We’ll also see the Case/Shiller Home Price Index for August, I see home prices continuing to fall… And finally, the stupid Consumer Confidence for this month will print… UGH!
To recap… The dollar got sold yesterday, but so did Gold, and Silver gained but not as much as it would have gained without some shenanigans played by the short paper traders… The price of Oil lost $2… And Chuck’s at a loss as to why that happened… you’ll have to go back and read why he’s so confused… Debt keeps on climbing… and so will the issuance of Treasuries… And digital currencies are on their way, are you ready for them?
Or, here’s your snippet: “Charlottesville’s Robert E. Lee statue was melted at a foundry following the conclusion of a number of lawsuits. The divisive Confederate monument, the focus of the “Unite the Right” rally in 2017, was secretly melted down and is slated to become a new piece of public art. The melting project was organized by the Charlottesville non-profit organization Jefferson School African American Heritage Center.
Alex Jones explained that General Robert E. Lee was a top general in the North, but wanted to leave the North. Initially, the Civil War was not about slavery, as the North and South had been fighting over tariffs until later when slavery became the focus of the war. In the past, when a war was won, both parties would reconcile, so military bases and ships were named after Confederate generals.
Jones revealed that the Jewish Anti-Defamation League (ADL) runs the Southern Poverty Law Center (SPLC) and the NAACP that aims to demonize the foundation of our country. The US has already acknowledged that slavery was wrong, and it was stopped. The British ended slavery, and, as the idea spread, white people ended slavery worldwide. The aim of the destruction of history is the destruction of culture. He said that the ADL’s curriculum is in schools teaching that white people are bad.
Jones said that there are declassified documents that show that the Rothschilds funded both sides of the American Civil War in an effort to break it up and British intelligence was also involved.
A statue of Teddy Roosevelt was taken down in New York last year. The statue of President George Washington is being considered for removal in New York. Back in 2021, the 7-foot Thomas Jefferson statue that sat inside City Hall for 187 years was removed due to the third US president’s history as a slave owner.
Many New Yorkers say it’s important to tell the whole story, without erasing, canceling or rewriting America’s history.”
Chuck again… remove our history, and what do we have left? I’m just saying…
Market Prices 10/31/2023: American Style: A$ .6366, kiwi .5849, C$ .7231, euro 1.0646, sterling 1.2184, Swiss $1.1070, European Style: rand 18.7406, krone 11.1322, SEK 11.1090, forint 358.50, zloty 4.0115, koruna 23.0325, RUB 92.07, yen 150.70, sing 1.3669, HKD 7.8237, INR 83.25, China 7.3155, peso 17.96, BRL 5.0436, BBDXY 1,270.70, Dollar Index 106.04, Oil $82.91, 10-year 4.81%, Silver $23.37, Platinum $942.00, Palladium $1,142.00, Copper $3.66, and Gold… $1,999.60
That’s it for today… Later this week, I’m planning on heading south for a couple of weeks to get away from the cold weather here, the dying trees, the gray skies, and everything else that I abhor about November! I’ll continue writing from the South, no worries, you can’t get rid of me that easily! HA! Boo! What kind of cereal does a ghost eat? …. Booberries Crunch! … I know, lame right? Well, at my age, I’m really proud of the fact that I remember anything these days… But I do work 5 crossword puzzles each morning to keep sharp… So, maybe they’re helping! I’m really enjoying my new TV downstairs… Well, knock on wood, but my jaw hasn’t bled since last Tuesday… My stomach/ digestive system is still performing Cirque Soleil… But… I’ll take that, as long as the bleeding doesn’t return! Last Friday, at my local watering hole, I got to meet Cody Schraeder, running back for Mizzou, and had my picture taken with him… What a nice young man! And on that note… Tommy James & The Shondells take us to the finish line today with one of my all time fave songs: Crystal Blue Persuasion…. Love that song! I hope you have a Tom Terrific Tuesday today, and Hallowing Halloween tonight! And please Be Good To Yourself!