A Brief Correction For The Dollar….

September 8, 2022

* Currencies & metals gain VS the dollar on Wednesday

* Waiting on the ECB and Bank of Canada today… 

Good Day… And a Tub Thumpin’ Thursday to one and all! WOW! What a comeback by my beloved Cardinals last night, in the bottom of the 9th inning, they scored 5 runs to win 6-5, and now enjoy a 9.5 lead in the division over the Brewers. I’m heading downtown today for the day game where pitcher Adam Wainwright and catcher Yadier Molina will tie the record for the most games started by a battery of pitcher and catcher! This will be number 325..  That’s a record, that I doubt will ever be broken, for baseball is a different game these days… Neil Young greets me this morning with his song: Southern Man…   This is the song that brought about the Lynyrd Skynyrd song: Sweet Home Alabama… 

Well, all that cold wind blowing from the hill that the dollar is the king of, stopped blowing yesterday, as we saw the dollar get sold, for once in a blue moon. The BBDXY lost 5 index points in yesterday’s trading, and most of the currencies recovered some lost ground on the day. the euro climbed back to 1.0 and the yen was pulled back from the cliff…  I have to think this was nothing more than a brief correction to the dollar, as it has become very overbought. 

Gold & Silver finally found a bid yesterday, with Gold rising $15.70, and Silver rising 44-cents… Gold ended the day yesterday, at $1,718.90, and Silver at $18.55… It has been over a week since Gold & Silver were allowed to gain VS the dollar… Of course, the other way to look at this is that Gold & Silver didn’t rise VS the dollar, but the dollar lost VS Gold & Silver…  It’s 6 of one and a half dozen of the other to me… 

That’s a phrase that my dad used all the time, and one that I hadn’t pulled out from up my sleeve for a long time! 

OPEC’s announced production cuts for Oil, hasn’t done anything to stop the slide in the price of Oil. A brief bump upward in the price of Oil was expected after the announcement, but none has come as of yet… The price of Oil slid to an $87 handle yesterday… I guess it’s time to go get gas for my car! 

And just when I thought that bond traders had finally gotten their collective heads screwed on right, bonds got bought yesterday and the 10-year Treasury’s yield dropped to 3.24%, from the 3.32% it held yesterday morning. What, did the Fed/ Cabal/ Cartel step in to buy a large chunk of bonds yesterday? Well, somebody did… I’m just saying… 

In The overnight markets last night, the dollar selling didn’t continue, but then there wasn’t much dollar buying either. The BBDXY gained 1 index point overnight, so in reality the dollar was flat overnight, with the selling abated.  I’m at wits end over all this dollar buying folks…  Don’t these buyers know that the U.S. Empire is crumbling and I expect it to come crashing down in the next decade, and probably way before that!   So, I guess the mental geniuses are thinking, why not buy now while the getting’s good?   

Alrighty then…  well, did you hear this one? The Atlanta Fed’s GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2022 is 1.4 percent on September 7, down from 2.6 percent on September 1.?

I would say that’s quite a reduction in just 7 days… By the time the actual GDP for the 3rd QTR gets printed in Oct, I would think it will be negative again, and that would mark 3 consecutive quarters with negative GDP… Would the gov’t THEN say it was a recession?  I doubt it… Because at that time it will be mid-terms election season…  

Yesterday, Fed Head Brainard talked and told everyone to hold on to your hats, because this is going to be a difficult road to hoe!  No, actually, she said this: ““We are in this for as long as it takes to get inflation down,” the central bank official said, just two weeks before the Fed’s next policy meeting. “So far, we have expeditiously raised the policy rate to the peak of the previous cycle, and the policy rate will need to rise further.” 

See how I’m so good at deciphering what the Fed Heads are really saying? I got a lot of practice during the Greenspan years, deciphering his Greenspeak! 

Well, the European Central Bank (ECB) is meeting and discussing whether they will hike rates 50 or 75 Basis Points this morning… They might have a decision by the time I hit send this morning, so if that happens, I’ll be sure to add it at the end.  I told you yesterday that the Bank of Canada will also meet later today, and they are expected to deliver a 75 Basis Points rate hike… 

Japan has to feel like that shows up at the dance wearing overalls, when everyone else is dressed to the nines… For Japan is the only major or even mid major that hasn’t hike rates… No wonder they keep seeing their currency edge closer to the cliff.  Now I hear that the President of the Bank of Japan is trying once more to jawbone the currency higher by saying there are plans to have a currency intervention…   

You would have to have a gun at my temple to make me buy Japanese yen, and I would think the major countries of the world, think the say way! 

I had some time the other day, and decided I would sit down and watch the Bill Bonner video where he makes his “Final Prediction”…  As usual, Bill does a great job of explaining his ideas, and gets to a point that he says the U.S. will encounter ” A Dark Winter”…  I won’t give away his final prediction, so, if you want to know what it is, just Google: Bill Bonner 4th and final prediction… Make sure you put away the sharp objects first though…  I’m just saying!

The U.S. Data Cupboard has the July print of Consumer Credit (read debt) for us this morning… You may recall that in the June report Consumer Credit exploded higher to $40 Billion…  Hopefully, that won’t see a gain…  We will also get to hear what Fed Head Jerome Powell has to say, two weeks before the Fed Heads next FOMC Meeting. 

To recap… The dollar buying stopped for a rest yesterday, before it takes off again. Gold & Silver finally saw a bid yesterday, and the currencies, for the most part, all gained on the day. In the overnight markets the dollar was basically flat, so no more selling of the dollar occurred…  The ECB meets this morning, no decision yet… 

For What It’s Worth….  Ok, a couple of weeks ago I told you about the 4th Turning, right? Well, this article brings us to date where we are in the 4th turning, don’t touch that dial! You can find it here: You’ve Entered the”Say Nothing” Phase of the Fourth Turning – DollarCollapse.com

Or, here’s your snippet: “It has become clear to me, since the installation of dementia patient Biden as the illegitimate figurehead president by his globalist Deep State handlers, their agenda is to tear down our modern civilization and replace it with a totalitarian techno-gulag where you will be electronically monitored, disarmed, own nothing, be judged by social credit score, live in fear, and be happy – or else.

I’ve been pondering in which direction this Fourth Turning will flow, while observing the words and actions of our pedophile president and the other World Economic Forum puppets like Trudeau, Macron, and a myriad of other EU lackeys. I intellectually understand all Fourth Turnings reach their climax after immense bloodshed, climactic battles which could have gone either way, and in some cases saw citizens slaughtering fellow citizens. But I have tried to avoid thinking about the reality of what is likely to happen over the next five to ten years, as this Crisis turns from rhetoric and debate to violence and death. Keyboard warriors will yield to real warriors.

After reading Patrick Radden Keefe’s – Say Nothing – a fascinating tale of the brutal violence which lasted for three decades from the 1960’s through the 1990’s in Northern Ireland, I’ve come to the realization of what civil war might look like here in America. In reality, the conflict in Ireland between the Catholics and Protestants dated back centuries.

I know the degradation of the intellectual, moral, and critical thinking skills of the American populace due to decades in government indoctrination centers known as public schools along with relentless propaganda and misinformation spewed from our boob tubes and now “smart” phones has reached critical mass, with little hope for a reversal until a full-out societal collapse. Well, that is where we are headed, because that is the course set in motion by those we trusted to lead this country. What ails this country, and the world is too much debt, too much corruption, too much materialism, too many lies, too much propaganda, too much delusion, too much stupidity, too much evil, and absolutely no solutions put forth which are capable of saving us from the course we chose decades ago.

We are hurtling towards an abyss and there is no way of voting ourselves out of it. The uniparty agrees on 90% of the issues and pass trillions in spending bills while jointly supporting never ending wars and unaccountable central bankers who print fiat to infinity. Political parties have failed the people and rooting for our team is still used to keep us divided and unaware of how badly we have been screwed over by these politician puppets doing the bidding of the globalist billionaire cabal who really run the show.”

Chuck again…  Well, the article is long, and it goes into a lot of the political stuff that I don’t care to talk about, so I think you should probably be good with just the snippet today… 

Market Prices 9/8/2022: American Style: A$ .6724,  kiwi .6033,  C$ .7612, euro 1.0003, sterling 1.1497, Swiss $1.0266, European Style: rand 17.4025, krone 10.0318, SEK 10.6969,  forint 397.40,  zloty 4.7287, koruna 24.5594, RUB 60.83, yen 143.86, sing 1.4064, HKD 7.8498, INR 79.71, China 6.9581, peso 20.01, BRL 5.2512,  BBDXY 1,307.67,  Dollar Index 109.67, Oil $81.49, Copper $3.51, and Gold… $1,721.45

That’s it for today… Still no word from the ECB… so I carry on…  Maybe if I hadn’t gotten up so early to write this morning, I wouldn’t be waiting on the ECB, eh? Don’t know why I woke up so early, just couldn’t get back to sleep and decided, what the heck, just go write!  Well, I get to go to the day game today, and I’m so happy, and excited! I’ll sit in the bleachers just like I used to when my dad would take me to games at the old Sportsmans Park!  I have a picture of that stadium in my bar area, and I whenever I see it, I stop and look at the spot where we always sat in the bleachers! The Beach Boys take us to the finish line today with their big hit song: Wouldn’t It Be Nice… I hope you have a Tub Thumpin’ Thursday today and will remember to Be Good To Yourself! 

Chuck Butler