- the dollar gets sold every day last week!
- Silver is the leader of the Pack!
Good Day.. And a Marvelous Monday to you! I hope your Thanksgiving was grand… Mine was, although I suffered from a bad stomach all day… And Friday too! UGH! I’m having the same reaction to my infusion that I did in August… That’s not good, folks… They may have to take me off the chemo drug I’m getting infused In me once a month… And then I’m left with nothing, nada, nil, zlich, zero to fight cancer that’s in me… So, let’s hope my digestive system heads quickly, so we don’t go down that rabbit hole… It’s time for Pandora’s Smooth Jazz Christmas station, and today Boney James is playing his sax to: Sleigh Ride
Well, on Wednesday last week, the dollar traded in the same clothes as it wore on Tuesday and the BBDXY remained at 1,223. I guess all the senior traders set out to head home wherever that may be, early, and the junior traders were scared little girls to make a call on the dollar.
On Thursday, our Thanksgiving Day, the foreign markets sold the dollar and it ended the day at 1,219 down 4 index points in the BBDXY.
There was some action, mostly SPTs on Thursday in Gold & Silver… Gold ended the day down $7 and Silver down 4-cents…
The junior traders that were in charge of the trading on Friday, still wouldn’t make a call, on anything, but the foreign markets did, and the dollar got sold some more, this time down 2 index points in the BBDXY.
And with no SPTs to show for, the metals traded on their own devices Friday and hit the ball out of the park! Gold gained $62 and Silver gained a whopping $3.09… Gold finished the week at $4220 and Silver at $56.35… See what I mean when I say if the metals were left to their own devices and not under the pressure of the SPTs?
The BBDXY ended the week at 1217, which was down from 1223 to start the week, and down from 1226 the Friday before… When you debase the currency, this is what you get, and nowadays you get it before the actual rate cut, because of futures trading, which by the way stock futures ran into a roadblock power outage on Friday… Too bad all futures had a power outage here after! I can only wish…
The good folks at FXStreet.com that post my Pfennig each day, wrote this morning that the dollar index fell every day last week, for the first time since April… and starts this week with a heavy bias to fall further, ahead of the next FOMC meeting next week.
Chuck again… so, the euro has climbed back over the 1.16 handle to start our day/ week and appears ready to take on any dollar weakness in the coming days. The Chinese renminbi was allowed to trade with a 7.07 handle… And the rest of the currencies including the two leaders last week, the Chinese renminbi and Russian ruble are following the Big Dog euro down the street to chase the dollar…
The price of Oil ended the week trading with a $58 handle, and the 10-year Treasury, after briefly falling to a 3.99% yield, ended the week with a 4.01% yield.
In the overnight markets last night… the dollar continued to get sold, with the BBDXY showing another 2-index point loss to 1,215… And Silver continues its charge through Richmond… Silver is up 97-cents this morning, and has gone above the .57-cents handle… Gold is also charging ahead and has added $33 to start our day and week, Gold is at $4,253… The metals bugs have come back to their desks after the Thanksgiving week holiday… And they say, that Political, Fiscal, and Financial Risks are enough for them to take the metals to new heights… And I didn’t even mention geopolitical problems…
Silver seems to be the leader of the pack, that is until the SPTs come back and take a pound of flesh from Silver’s gains last week. I know, I know that it’s not good to think about bad things happening before they do, but then that’s how I think, so let’s just hope that the same thing doesn’t happen to the leader of the pack that happened to the leader of the pack in the song by the Shangri-Las….
The interest rate futures are pricing in an 80% chance of a FOMC rate hike next week, so there will be no surprises, next week… The POTUS announced that he has already picked out his replacement for Fed/ Cabal/ Cartel chairman, Jerome Powell… And this new guy will be leading the call for lower rates, but the same members of the FOMC will remain and that will be a sticking point for the FNG… (As my good friend Ty Keough, used to call anyone new on the trading desk) Recall that 3 members of the FOMC voting group questioned the need for further rate cuts after the last rate cut? Well, we’ll see convicted they are about their positions next week…
The price of Oil bumped higher to trade with a $59 handle in the past 24 hours, and the yield of the 10-year Treasury bond has bumped higher to start the day/ week with a 4.04% yield… The bond boys seem to have said to themselves last week… “what are we doing? We should wait-n-see if the FOMC does indeed cut rates before we price it in”…
Did you hear that the BLS will NOT issue a jobs report for Rocktober? Why not? I hear you asking… I really don’t know why, maybe they’re just to lazy to cook and massage the numbers, or, there was no one to take the surveys, and now to go back to add them all up would be very laborious… Gov’t workers, what do you expect, A-One work habits, when the worst that can happen is that you get promoted?
Here I go carping and complaining about the Gov’t again… When they are as much to blame for the mess we as a country are in right now, as the Fed/Cabal/Cartel…
Here’s Bill Bonner on Money Supply, which in my definition is inflation, but I digress, here’s Bill: “the money supply (M2) in the US just hit a new record high, at $22 trillion. That’s up from just $650 billion in 1971, when the Funny Money Era began. In that year, GDP was around $1.2 trillion; it’s now $28 trillion. In other words, the money supply has grown about half-again-as-much as the supply of goods and services.
And public and private debt — the dark side of credit — has gone up even more…from 125% of GDP in 1971, it is now around 260% of GDP. In other words, for every dollar’s worth of GDP in 1971 (before the Funny Money Era began) there was $1.25 of debt. Today, there is $2.60. That’s an additional 135% of GDP — or $38 trillion worth of spending that is untraceable to any increase in output. Naturally prices have gone up to absorb the additional liquidity.”
Chuck again… Bill was giving his “Thanks” for funny money… Bill always hits the nail on the head! And to think that I complain about the Gov’t too much!
The U.S. Data Cupboard this week doesn’t have as much data as last week, and the real meat gets printed on Friday, but between then and now, we’ll see the ISM for Sept, which will be old and stale, and who will care? Not the markets, that’s for sure… On Wednesday, we’ll see the ADP Employment Report for Nov. And THAT WILL BE LOOKED AT BY THE MARKETS, for any assurances that the Fed Heads will cut rates next week on 12/11…
To recap… It was a whirlwind week for the metals last week, as the SPTs were gone by Tuesday and the metals were left to their own devices… It was not a banner week for the dollar, and appears to have returned to its underlying weak trend… Money Supply issuance just hit a record level, and Private Debt is soaring!
For What It’s Worth… not too wordy today on the FWIW article… The main thing is going to the link and viewing the chart that appears and then read along about since the implementation of the Fed/ Cabal/ Cartel the dollar’s purchasing power has gone to hell in a hand basket… You can find the chart here: Charted: The Declining Purchasing Power of the U.S. Dollar
Or, here’s your snippet: “The purchasing power of the U.S. dollar has fallen over time due to inflation and the ever-growing money supply.
The U.S. abandoned the gold standard in 1971, ending dollar convertibility to gold.
Western powers developed the Bretton Woods Agreement after WWII, which saw all national currencies valued in relation to the U.S. dollar
The U.S. dollar has steadily lost value over the past century. According to Federal Reserve data, the purchasing power of one dollar today is equal to just a few cents in 1913 (the year the Fed was created).
In this graphic, we track the decline in the purchasing power of the U.S. dollar since the early 1900s, illustrating how inflation has eroded its value.
Data & Discussion
The data for this visualization comes from Federal Reserve Economic Data (FRED). It measures the “Purchasing Power of the Consumer Dollar” across all U.S. city averages, indexed to consumer prices.
The higher the index, the more purchasing power the dollar has. As the index declines, goods and services become relatively more expensive.
Inflationary Eras and Economic Shocks
Major inflationary periods can be identified by looking at the steepest drops in the chart. For example, World War I and World War II strained government finances, leading to massive increases in public spending and money creation, which pushed prices sharply higher.
Similarly, the oil shocks of the 1970s caused energy costs to spike throughout the world, feeding into broad-based inflation. In each case, rising prices significantly eroded the purchasing power of the U.S. dollar.”
Chuck again, and again go to the link above to see the chart. It’ll blow your mind that our currency has lost so much purchasing power… And it’s not MY fault, or your fault either; it’s the Gov’t. Treasury, and Fed Cabal that’s to blame!
Market Prices 12/1/2025: American Style: A$ .6556, kiwi .5739, C$ .7160, euro 1.1637, sterling 1.3252, Swiss $1.2468, European Style: rand 17.0801, krone 10.1143, SEK 9.4193, forint 326.98, zloty 3.6341, koruna 20.7623, RUB 77.79, yen 154.95, sing 1.2943, HKD 7.7888, INR 89.55, China 7.0716, peso 18.27, 10-year 4.04%, Silver $57.32, Platinum $ 1,695.00, Palladium $ 1,457.00, Copper $5.30, and Gold… $4,253.00
That’s it for today… Well, November is over thank goodness, and now onto December, which if it wasn’t the onset of really cold weather I would appreciate it even more… So, Welcome to December… I haven’t thought of a thing to buy Kathy for Christmas yet… I hope I come up with something soon… My days of getting her something that she really loved are over, if she wants something, she buys it, leaving me out of ideas… Any help would be appreciated! Lisa, Lynn, Dawn, Rachel, Grace? My beloved Mizzou Tigers won their last regular season game on Saturday against Rival Arkansas; that leave us with an 8-4 record, which used to be a highlight, but not any more with the new Mizzou Tigers! … The Stephan Kummer Trio plays: It’s The Most Wonderful Time Of The Year as our finish line song today… I hope you have a Marvelous Monday today, and Please Be Good To Yourself!
Chuck Butler