September 27, 2022
* currencies & metals get sold again on Monday
* The BOE is following Japan down the road to ruins…
Good Day… And a Tom Terrific Tuesday to you! No Cardinals baseball on last night, so I tried to watch the Blue Jays/ Yankees game to see if Aaron Judge could hit #61… The game was 2-2 when I finally gave up on it, and Judge… I like the Blue Jays team, they are young, and play baseball right… Man, have the temps really cooled off the last couple of days here, and looking forward, they will remain that way for the next week! There’s been all kind of bad talk about Mizzou’s game last Saturday, but I doubt it will change their attitudes, for they get to play #1 Georgia this week! Woe, Woe is Mizzou… I don’t believe they will win 5 games this year… Yikes! Oh well, they are my team, win, lose or draw… I’m being greeted this morning by a great 70’s song, by a group called: Lobo. And their song: I’d Love You To Love Me with lyrics like this: “When I saw you standing there… I about fell off my chair”… Great stuff!
OK, yesterday, my fat fingers were flying across the keyboard, trying to put all the thoughts I had in my head for the last week down in the letter… It got quite wordy yesterday… I don’t believe I’ll subject you to that horror again this morning.. .So, grab a cup of coffee, tea, or whatever it is you drink in the morning, and let’s get going!
There was a brief time yesterday, when it appeared the dollar buying would stop for the day, and become selling. The BBDXY lost 4 points of the 8 points it had gained so far that day, and Gold was up $10! The pundits were writing about how the dollar buying was ending, and how Gold was back to getting bought, and then… it wasn’t… The price manipulators saw to that, and took Gold down by $18 yesterday, with Gold closing at $1,626.90… Silver also got sold by 46-cents to close the day at $18.47 If yesterday’s price action doesn’t shout from the rooftops that Gold & Silver were manipulated lower on the day, then there’s no hope for you… But I know that at least a large majority of my readers believe what I believe about the price manipulators, so there’s that!
The BBDXY closed yesterday at 1,352, up 5 index points on the day. I mentioned yesterday that the pound sterling had been dropping quickly, and that the trajectory of its drop indicated that it could soon be at parity to the dollar… It’s been ages, and ages, since the pound was this weak VS the dollar, and to make matters worse, the new PM is calling for tax cuts, but not spending cuts, as she also announced a huge currency printing deficit payout to spur the economy… When will they ever learn? When, will, They, Ever, learn? Inflation in the U.K. is soaring, and the new PM is going to add fuel to the inflation fire!
You could go back to the mid 90’s when Japan was hitting on all 8 cylinders, and then they weren’t, and the Bank of Japan tried to “stimulate the economy” and that didn’t work, then they tried to “stimulate the economy” again, and again, again, they cut interest rates to zero and then negative, and they bought bonds, causing currency printing to pay for the bonds, and where did all that get Japan? The country is still mired in the funk of a late 90’s… And the yen is getting sold like funnel cakes at a State Fair that’s what!
The price of Oil slipped another buck yesterday and ended the day trading with a $77 handle. And Bonds continue to see their yields rising, The 10-year Treasury’s yield gained again yesterday and ended the day trading with a 3.87% yield. The 2 year Treasury’s yield is 4.31%!!!! These bond yields have no where else to go but up, so keep your money in cash until they top out!
In the overnight markets last night… it was another case of the dollar getting sold overnight, but how long will that last into the U.S. session today? The BBDXY lost 5 index points overnight, but the currencies, not named rubles, are still on the selling blocks. Gold is up $14 in the early trading this morning, and Silver is up 49-cents, so we have that going for us, until… The evil wicked witch of the west comes flying in on her broom, and releases the flying monkeys, aka, the price manipulators…
The price of oil is range trading these days, and trades this morning with a $78 handle. Treasuries continue, like all bonds that is, to see their yields move higher… The U.S. Treasury bond curve is still inverted. It’s as if the curve is trying to tell us that “we’re in a recession, you idiots” But the currency traders aren’t paying attention!
I still can’t believe that no one has the intestinal fortitude to take the dollar to task for having a Central Bank that’s raising interest rates during a recession… This is something that’s not been done before, and Unknowns used to be a killer for a currency… I’m just saying…
I don’t know if you noticed yesterday or not, but the Chinese renminbi has moved higher to trade with a 7 handle… I had read something last week about how the Chinese were contemplating a devaluation of the renminbi… I don’t think this move higher was a result of any devaluation, but it is something to think about.. I personally don’t see the Chinese devaluing the renminbi, for they would lose a lot of respect that they’ve worked so diligently to gain through the years…
I read a piece yesterday that said this was “The end of fake money”… the writer went on to repeat what I told you all in May of 2021… That we would begin to see defaults, and the end of currency values, that would lead to Central Bank Digital Currencies, (CBDC’s) and a run to safety of Gold… it’s nice to see that someone else besides me has gone out on a limb, with this thought…
Speaking of CBDC’s in Dave Gonigam’s 5 Minute Forecast yesterday, he had this thought from Jim Rickards about how easy will it be to hack into these digital accounts here’s a snippet: ““If bad actors can already hack crypto platforms with ease, what’s to stop them from hacking a CBDC network with more entry points?” Jim asks rhetorically.
“What could this mean for you and your life savings? How can you protect your finances from being hacked by bad actors?
“The White House recently released a framework for developing digital assets, so this replacement of the U.S. dollar with a traceable digital currency will happen sooner rather than later.”
Chuck again… I see that train a coming it’s rolling around the bend, and I ain’t seen the sunshine since I don’t know when…. That train is bringing Biden Bucks, the CBDC’s to replace the dollar, folks, are you ready for this?
I was talking with good friend, Dennis Miller, yesterday and I mentioned to him that the Fed is probably going to hike another 75 Basis Points when they meet in Nov, and then 50 Basis Points in December, which would put their Fed Funds rate at 4.5%… I had a look at the Fed Heads’ dot chart, where they plot out where they think interest rates will be going forward, and what surprised me greatly was that the Fed Heads think that inflation will abate by the beginning of next year, and that they will begin to cut rates early in 2023… I told Dennis that they will be so wrong for doing so…
He asked me why I thought that, and I replied, “Because first of all even if we use the Gov’t’s trumped up CPI rate of 8.5%, we would still be 4% below the inflation rate! You’re not going to defeat inflation like that! And then second of all if you look at inflation trends throughout the years, all over the world, inflation averages 5 years! We’re only 1 year into this! That’s why, the Fed Heads will be so wrong for cutting rates early in 2023…
Today’s U.S. Data Cupboard has a few data prints for us to view today, starting with Durable Goods for August, and Capital Goods for August. Then the S&P Case/ Shiller S&P Home Price Index for July will print, and then finally the stupid Consumer Confidence, which right now, is expected to gain in August? Wait, What? Yes, the so-called experts are calling for Consumer Confidence to rise in August, from July… I’m well aware that this data set is really just a pulse of the stock market, and with that in mind, the stock market had an awful August, so why in the world would Consumer Confidence rise?
To recap… The dollar took a brief pause yesterday, that got a lot of people all excited, but that didn’t last long, and soon after the pause, the dollar got back to the business of kicking tail and taking names later… Gold saw the price manipulators come in after the shiny metal rose to up $10 on the day, and their selling caused Gold to close lower by $18 on the day! Silver lost 46-cents and Oil lost a buck, and bonds saw yields continue to rise… The BBDXY gained 5 index points on the day, and again, only the Russian ruble held ground VS the wrecking ball dollar.
For What It’s Worth… Well, here we go again with the games that Congress plays to pay bills when all the money has run out…
This article goes through the shenanigans that are played once again and can be found here: U.S. Congress to press ahead on stopgap government funding bill | Reuters
Or, here’s your snippet: “The U.S. Senate will take an initial vote on a stopgap spending measure on Tuesday to keep federal agencies running past the end of this week, while Congress continues to negotiate bills to fund the government through the next fiscal year.
President Joe Biden’s Democrats control both chambers of Congress and are expected to avoid an embarrassing partial government shutdown just six weeks before the Nov. 8 midterm elections, when control of Congress will be at stake.
The bill also includes more than$7 billion in funding to help Ukraine turn back Russia’s invasion, according to a summary released Tuesday morning.
In early September, Biden requested $11.7 billion in military and economic aid.
Congress has resorted to this kind of last-minute temporary spending bill in 43 out of the past 46 years due to its failure to approve full-year appropriations in time for the Oct. 1 start of a fiscal year, according to a government study.
A Tuesday evening Senate procedural vote is designed to speed action once Democrats and Republicans put the finishing touches on legislation.”
Chuck again… Same o, same o, for these knuckleheads, spending money that they don’t have or will even receive in taxes. And why do we as a country continue to send money to Ukraine? I’m a lost soul on that one folk… Like we can afford to send them money, when we have millions of homeless people here in the U.S…. I’m just saying
Market Prices 9/27/2022: American Style: A$ .6498, kiwi .5708, C$ .7311, euro .9645, sterling 1.0808, Swiss $1.0145, European Style: rand 17.8528, krone 10.6952, SEK 11.2367, forint 422.88, zloty 4.9376, koruna 25.5639, RUB 58.38, yen 144.36, sing 1.4350, HKD 7.8499, INR 81.57, China 71714, peso 20.29, BRL 5.3915, BBDXY 1,347.07, Dollar Index 113.60, Oil $78.01, 10-year 3.81%, Silver $18.75, Platinum $866.00, Palladium $2,068.00, Copper $3.38, and Gold… $1,640.20
That’s it for today… Big 2 game series begins tonight in Milwaukee, with the Brewers 6.5 games behind the Cardinals, whom they play… 8 games to play in the regular season… You know, at this point, with the season almost over, it’s difficult to remember that Spring Training was shortened, and the season got started late… It’s all forgotten now… I hope Aaron Judge hits home run #61 and 62 before the season ends, for you never know if he’ll be this close again… OK… things are really going well for me these days, I told Dennis Miller yesterday, that I’ve been feeling better than I should… fingers crossed, knock on wood, and all those other adages… Leon Bridges takes us to the finish line today with his song: The River… Don’t know that one? YOUTUBE it, I think you’ll like it! I hope you have a Tom Terrific Tuesday today, and please Be Good To Yourself!
Chuck Butler