Back From The Living Dead…

May 11, 2021

* currencies can’t hold their gains from Friday, on Monday.. 

* Gold & Silver with steady under the radar increases… 

Good Day… And a Tom Terrific Tuesday to you! Well, yesterday, I told you that rest and sleep were my best bets to healing, and so I basically slept all day… I didn’t wake up until 5:00 pm in the evening! My cold seems to be waning, for it’s been 8 days and I usually have a cold last 10-14 days… But this pulled muscle in my stomach is killing me with pain! I can’t even begin to describe how painful that is every time I move, walk, bend over, breathe! I’m trying Salonpas Pads on it now, and it does take away the sharp pains, a bit… Any help there is much appreciated! I want to thank all you dear readers who sent me notes yesterday, they did put a smile on my face, probably the first one in days! So, thank you very much!  Chicago greets me this morning with their song: Hard To Say I’m Sorry….  This song was recorded after the death of Terry Kath, and was their Peter Cetera sappy period… 

Well… have you ever slept all day? That had to be a first for me… I’ve said that I thought I was going to sleep all day, but that was a far cry from actually doing it like I did yesterday… So, Monday, May 10th, was a wasted day in my life… Hopefully, that’s over and done with! I do feel a bit stronger this morning, so I’ll attempt to get through a normal length Pfennig today…

So… Have you read all those spin doctors reports about how the BLS Jobs report was only 266,000 and not 1 Million?  These people must have put some real money on that jobs report, because they will not or can not accept the numbers for what they were…  I hate to be the one to burst their bubble, but the BLS added 298,000 jobs to the total, after receiving the surveys… And that means that the surveys said there were negative 32,000 jobs in April…  Why does it take me each month, to go through the BLS report and pull this stuff out? Where’s the financial journalism out there? Oh, well, the lies, just keep coming from the Cartel, Treasury, Wall Street, Gov’t, and whomever else is on the roster to tell lies!

The currencies couldn’t add to their Friday gains on Monday, but the moves weren’t exactly strong by the dollar bulls.. The Dollar Index started the day at 90.20 and ended the day at 90.23… Whoopee! The Dollar Bugs won the day! Ahem…  Well, they won the day only against the currencies, which are heavily weighted in euros, in the Index….  Currencies like the Aussie dollar (A$) and N.Z. dollar / kiwi, aren’t included in the index… And yesterday, these two kept chugging higher, with the A$ closing the day at 78.36-cents, and kiwi at 72.68-cents…

I could tell you that years ago I wrote a piece in the Pfennig about how the real Dollar Index should be changed to include the Chinese renminbi, Aussie dollar, and kiwi …  If it had been changed prior to the last weak dollar trend, the dollar would have had even greater losses and probably would have caused some major changes in the world… .But… it wasn’t… and so we go on another day, pretending that the Dollar Index is 90 something…

Gold & Silver found a way to gain on the day, this despite a slew of short paper trades showing up at the COMEX…  Gold gained $9.70 for the day to close at $1,841.90 , and Silver gained a whopping 8-cents to close at $27.62…  I read a report on where the writer said that Silver buyers are waning with Silver above $27…  Nowhere in the report was there any mention of how the Silver buyers aren’t waning, but instead, having to offset the short paper trades!  Poor financial journalism. Once again!  And for those of you keeping score at home, the short trades in Silver represent 160 days of production…  While that is down from the 185 number a few months ago, it’s still very large, and I thank Ed Steer for that information that he supplies in his Saturday letter each week! 

In the overnight markets, the currencies are fighting back to regain their lost gains yesterday, with the Dollar Index falling to 90.13 this morning. Gold is up $2.30 and Silver is up 20-cents as we start the day today. Good steady increases are what we need to see in Gold & Silver…  And with inflation rising faster than a speeding bullet, these two metals should be at the top of everyone’s list of inflation hedges….  I’m just saying… 

Speaking of inflation, I’ve got a real good article for you in the FWIW section this morning, from the folks at Switzerland Gold (Egon von Greyerz)  regarding inflation…  I’m just so sick of all the lies being told by the Gov’t regarding consumer inflation that it turns my stomach to read them… The CPI (consumer Price Index) lies, the Cartel Chairman lies, The Treasury Sect. lies,  and so I found it soothing to read this article, at least there is some real good financial journalism somewhere!

In the report, there’s a list of Commodities that are soaring…These are all year to date increases…  here’s the list: 

Gasoline          Up 47%

Crude oil          Up 31%

Heating Oil       Up 8%

Propane           Up 26%

Natural Gas      Up 15%

Lumber             Up 70%

Corn                Up 54%

Wheat              Up 41%

Sugar               Up 14%

Cotton              Up 12%

Lean Hogs        Up 56%

Beef                 Up 12%

So, there’s your teaser for the FWIW article today… 

This Thursday, readers of good friend, Dennis Miller’s will get a real two-episode treat… I did a lot of work on this attempt to describe what it will be like when the dollar is no longer the reserve currency of the world…  I even attempt to “Go Back To The Future”…  I’m no Michael J. Fox, but I think I did it pretty well…


The U.S. Data Cupboard yesterday was empty… no wonder the dollar bugs rallied, for there was nothing there to show the dollar as overvalued… Today’s Data Cupboard has just two pieces of data that aren’t really market moving… We have the Small Business Index, and Job Openings… There will also be a slew of Cartel Head speakers… so more lies to be distributed!

To Recap… The currencies couldn’t add to their gains on Friday, but the moves were muted for the dollar at best… Gold & Silver gained on the day, dispite another round of short paper trades being thrown at the COMEX… Chuck is fed up with all the lies being told about inflation… And he’s not in the mood to deal with more lies today, but will have to as a slew of Cartel speakers will be out and about to spread more lies today…

For What It’s Worth… Well, I teased you a bit above with this would be about, and it’s a very long article that you should read in it’s entirety as I only have so much room for the snippet… It’s Switzerland Gold’s Matthew Piepenburg on inflation and it can be found here: Keep It Simple: Gold vs. a Mad World – Matterhorn – GoldSwitzerland

Or, here’s your snippet: “Psychologists, poets and philosophers have written for centuries that many who have eyes refuse to see, and many who can think, refuse to think clearly–all for the simple reason that some truths, like the sun, are just too hard to look straight into.

Or as others have said more bluntly: “Truth is like poetry—everyone [fricking] hates it.”

When it comes to bloated markets, debt orgies and helicopter money, the rising fun of such “stimulus” is embraced, yet the template for its equally market-tanking, social-destroying and currency-debasing consequences are simply ignored.

The same is true when it comes to the “great inflation debate,” which is simply no longer a debate but a neon-screaming reality playing out in real time and growing more pernicious before eyes otherwise blinded by calming Fed-speak and bogus inflation scales.

Each passing day, the evidence of the inflationary cancer beneath the smiling surface of our still rising markets and “recovering/opening” economy increases, and thus, like it or not, the inflation topic just won’t and can’t be over-stated enough.

In short: Here I go again with the inflation thing…

Extreme US “stimulus,” vaccine rollouts, Europe’s eventual reopening, and rising commodity costs are accelerating the inflationary tailwinds which everyone from grocery store clerks and home builders to Warren Buffet can no longer deny or ignore.

As facts rather than theories confirm, commodity prices have surged from steel to copper, or corn to lumber while precious metals steadily rise against COMEX price fixers, CPI lies and other unsustainable boots to the neck of a coiled gold market positioned for big moves into late 2021 and beyond.

Commodities, of course, represent the cost of goods, and when they soar, retail prices generally aren’t far behind, as seen (and growing) daily in the rise of food, home construction, auto, and other everyday purchases—you know, things that matter.

In short, if every product needed to feed, house, clothe and move consumers is rising by high, double-digits, how can we trust a Fed or CPI scale that tells us consumer pricing is hanging at the “allowed” 2% range?”

Chuck again, like I said above, this is a long article but one that needs to be read in its entirety, so grab a cup of joe and click on the lick above, and get to reading!

Market Prices 5/11/2021: American Style: A$ .7847,  kiwi .7288,  C$ .8265, euro 1.2167, sterling 1.4137, Swiss $1.1088, European Style: rand 13.9679, krone 8.2410, SEK 8.3150,  forint 294.70,  zloty 3.7424,  koruna 21.0124, RUB 73.95, yen 108.88, sing 1.3261, HKD 7.7661, INR 73.33, China 6.4175, peso 19.87, BRL 5.2290,  Dollar Index 90.13,  Oil $64.54,  10-year 1.61%, Silver $27.56, Platinum $1,252.00, Palladium $3,037.00, Copper $4.85, and Gold… $1,839.30

That’s it for today…  Again, I apologize for yesterday’s inability on my part to answer the bell. And I truly appreciate all of you who sent along get well messages…  They do lift me up a bit, so thank you, thank you, thank you! (in my best Gomer Pyle voice)…  Youngest son Alex didn’t make it here to see his mom on Sunday, as he’s venturing the mountains of Utah, and Colorado this week with a few of his pals… I trust he called her… Don’t know because I’ve been in basement for two days now, only venturing upstairs to take a shower, shave, and brush my teeth!  OUCH! I just coughed and the pain in my stomach screamed, OUCH!  Of course had I remained a work out fiend, as I was as a youngster, and still have abs you could count on, this pulled muscle wouldn’t have happened…  So, there!  Me and my pals worked out in a basement with pulleys, and benches, and when we would run out of weights to lift, we would go steal a man hole cover, or two, drill a hole in the middle of it, and voila, we had more weights!  Ok, it was me, I admit I stole something in my life… But the street crew would replace it in a day or two! So, I rationalized my theft…   Bygones, are bygones, right?  I end the Pfennig today with my fave Ray Charles song from 1962… The song is: You Don’t Know Me….  “No, you don’t know the one who dreams of you each night And longs to kiss your lips And longs to hold you tight To you I’m just a friend That’s all I’ve ever been No, you don’t know me” Man I love that song! I hope you have a Tom Terrific Tuesday, and it sure looks as though I made up for yesterday’s short Pfennig… And please Be Good To Yourself!

Chuck Butler