- the dollar gets bought a little on Monday
- Bank of Japan leaves rates unchanged
Good Day… And a Tom Terrific Tuesday to you! No Cardinals Baseball last night for me, so I did some reading of articles, etc. Another day myself… no worries! I did talk to my daughter, Dawn, through a closed door yesterday, so there was that! Yesterday started out very cloudy, but turned into a nice sunny day for me to sit out and read… I’m all up-to-date with my Cormoran Strike books, and have now started a new series of stories featuring Jack Noble… Wild Cherry greets me this morning with their 1- hit wonder song: Play That Funky Music
Well, the selling of the dollar took a breather yesterday, and the BBDXY gained 2 index points to end the day at 1,202… The euro gained on the day though and went further up in the 1.15 handle… And Gold was down for the count with the short paper traders taking liberties, they were relentless and kept Gold down all day until the day finished with Gold losing $48 and closing at $3,383. UGH!
Silver remained stuck in the mud yesterday and ended up 1 penny on the day. Gold closed the day. Silver closed the day at $36.36… To me, this is kind of funny.. You see, last week after Silver made its surge in price, everyone came out of the woodwork talking about how Silver is going to soar from then… But to me it’s funny because that’s not how things work… You can’t count your eggs before they’re hatched, and you can’t count your Silver winnings before they are made…
There are just too many underlying issues with Silver because it has so many uses… And remember that there are 180 days of production in Silver to equal the short ounces that are out there, and in Gold there are 60 days of production needed to fill the short ounces… Don’t ask me how they get away with all that… Because I’ve told you a few times in the past… spoiler alert: The Gov’t is involved…
The price of Oil bumped higher yesterday to end the day trading with a $73 handle… And the 10-year Treasury not being burdened by the goings on in the Middle East, saw selling that took the bond’s yield to 4.44%
In The overnight markets last night… Sans short paper traders, Gold is up $12 this morning, and Silver is back to rallying with it up 79-cents… The dollar has been sold a little overnight and the BBDXY has slipped one index point to 1,201… I’m so convinced that the FOMC will not cut rates tomorrow, that I can see the dollar rebounding a bit, but I guess it all depends on how forceful the comment about future rate cuts is from the Fed Chairman, following the rate announcement.
The price of Oil remained trading with a $73 handle overnight, and the 10-year Treasury’s yield dropped back to 4.41%… if you’ve been reading this letter daily, you’ll know that I truly believe that the Fed/ Cabal / Cartel has been buying this and the 30-year Treasury bond to contain the yield and to make the Treasury market appear safe…
There was this on the dailyhodl.com regarding Treasury buying… “The move has triggered social media speculation that a stealth quantitative easing operation is now underway, with the Treasury mimicking the Federal Reserve’s money-printing tactics to stimulate the economy.
Skeptics argue that by repurchasing illiquid bonds with borrowed funds, the Treasury is subtly propping up the bond market to maintain confidence in an overextended system.
But Bianco Research’s Jim Bianco says claims that the Treasury’s moves are a form of quiet QE are way off the mark.
“Everyone is calling Treasury buybacks “stealth QE.” They misunderstand. This is the Treasury, not the Fed…
The Treasury cannot “print.” The Treasury borrows new more liquid “on-the-run” bonds and uses the proceeds to buyback old illiquid “off-the-run” bonds.
Buybacks do not “create money,” rather they improve the overall quality of the bond market.”
Chuck again.. Well, to me, yield control is yield control no matter how you paint that picture… the famous line is: You can put lipstick on a pig, but you’ve still got a pig.. I’m just saying…
Well, The Bank of Japan (BOJ) met last night for us, Tuesday for them, and they decided to keep rates unchanged at .50% I can see what the BOJ is concerned about and that is the rest of the world is slowing, and they don’t want to slow up the Japanese economy one iota… They also have to have in the back of their collective minds that the yen didn’t gain much and is right back to where it started, when they did hike rates, what do they have to do to light a fire under the yen?
Longtime readers know that I think that Japan is a basket case with their bad demographics, their debt, their inability to hike rates when they should have done so, and other problems… I wouldn’t touch that currency with your ten foot pole!
The Petrol Currencies have really enjoyed this run-up of the price of Oil… And for a country like Norway, who is so closely tied to the euro, (there are no real ties, just perceived ones) and their dependence on Oil revenues, this is a doubledeedoo, for them! And those are the items behind Norway’s krone finally going below 10… (remember, krone is a European type currency, so as the price goes down, it’s gaining VS the dollar)
The other Petrol Currencies like the Russian ruble, pound sterling, Brazilian real, Canadian loonie, and Mexican peso, and others, are all feeling better about their ability to gain investment these days…
And the Euro Wannabes are all firmly on the rally tracks now, folks… And to me that means the dollar has entered a new weak trend, no tiptoeing around it, or sneaking through the alley with Sally (Palmer) I know the PPT is always out there like the wolf at the door, but at this point, the rot on dollar’s vine has been exposed, and it will take a lot of TLC to heal it… That TLC includes cutting debt, balancing the budget, and get our of wars…. proxy wars are not, get out of them!
The U.S. Data Cupboard yesterday had the Empire State Mfg Index and it was awful with a print of negative -16! I was a day ahead of myself and the data prints yesterday, but today we will see May Retail Sales, (The BHI says it will be negative) and industrial Production & Capacity Utilization… Chuck said yesterday that IP will be negative, and he’s sticking to that!
For What It’s Worth… OK, usual daily readers of the Pfennig know that I admire Matthew Piepenburg of Swiss Gold. And his writings… Well, he’s back today with a great piece of Gold and the lies that have been told to us through the years, and it can be found here:GOLD: The Global Financial System’s Lie Detector?
Or, here’s your snippet: “Is gold calling out a broken global financial system?
One Big…Lie?
Earlier this year, I was asked to give my most “heretic” opinion about the global financial system.
This was an unusual yet bold question, and after a brief pause, I answered that the entire system was…, well:
“A lie.”
This may seem like a sensational response in an industry sometimes prone to the sensational; however, if we look at stubborn facts, the answer is truer than it is extreme.
When it comes to a financial system rotting from within, the Botox-like beauty of our ballooning S&P and centralized credit market hides an aging and decrepit disease.
That is, policy lies, like Botox, can’t hide reality forever, and the evidence of a fatally debt-sick system hiding financial truths behind forked tongues and euphemistic lingo is literally all around us.
A Long List of Truth-Stretching…
From the very era of my birth, the list of lies is almost comical.
Nixon:
In 1971, for example, when Nixon decoupled the dollar from gold [thereby allowing his own and future administrations the unfettered luxury (and sickness) of expanding (debasing) the money supply], he promised the measure would be “temporary” and that “our dollar would be worth just as much tomorrow as it is today.”
Both statements, of course, were open lies.
54 years later, the dollar remains un-chaperoned to gold, and when measured against a milligram of that same precious metal, the USD (and other major Fiat currencies) has lost 99% of its purchasing power.
Meanwhile, gold is rising faster against the USD and other world currencies as their purchasing power is diluted by desperate policies to inflate away their debt with debased currencies.
Lying to Our Founding Fathers:
It’s also worth noting that our fiat paper Dollar, un-backed by gold, is a direct contradiction to our Constitution, and in my mind, is itself just another, well…Lie.
Wilson’s Fed:
But long before the lies of 1971, let us not forget the lie of 1913, when Wilson signed an equally unconstitutional Federal Reserve into law, a so-called “independent” bank which is anything but independent (it’s effectively a fourth branch of government) and is neither “Federal” nor a “Reserve.”
Larry Summers:
Fast forward to the great financial crisis of 2008, which was effectively a mortgage—backed-security credit implosion driven by an unregulated derivatives market, and we see even more staggering dishonesty.
A decade before this levered credit implosion, Assistant Treasury Secretary Larry Summers was called to Congress to answer Brooksley Born’s concerns (as head of the CFTC) that these derivative instruments, if left unregulated, would destabilize markets.
Summers publicly embarrassed Born and then told the world that the bankers in charge of these OTC instruments of levered destruction were more than sophisticated enough to manage the risks.
Of course, by the 2008 market implosion, we all knew that assertion was a lie.”
Chuck again… Matthew then goes on to tell you about the lies of Bernanke and Yellen, but I ran out of time and space… So, you’ll have to click the link to read the rest of this great article!
Market Prices 6/17/2025: American Style: A$ .6541, kiwi .6079, C$ .7373, euro 1.1571. Sterling 1.3571, Swiss $1.2315, European Style; rand 17.8199, krone 9.8751, SEK 9.4086, forint 348.07, zloty 3.6952, koruna 21.43358, RUB 78.43, yen 144.58, sing 1.2808, HKD 7.8497, INR 86.24, China 7.1827, peso 18.93, BRL 5.4923, BBDXY 1,201, Dollar index 98.04, Oil $73.14, 10-year 4.41%, Silver $37.18, Platinum $1,275.00, Palladium $1,054.00, Copper $4.87, and Gold… $3.495
That’s it for today… WOW! Is all I can say about that Arkansas pitcher who pitched just the 3rd no-hitter in World Series history, and when he grazed a batter in the 9th inning with a pitch, he lost his perfect game! He was great! He had 19 strikeouts! Simply amazing! Gage Wood is his name… and a name that will be heard of in the future, I do think…. My beloved Cardinals get back in the box tonight with a game with the pale hose (White Sox) C’mon boys you’ve gotta get back in the winning column! The Cowsills take us to the finish line today with their song: The Rain, The Park and Other Things… I hope you have a Tom Terrific Tuesday today, and Please Be Good To Yourself!
Chuck Butler