- Gold And Silver are soaring!
- Is France the new Canary In A Coal Mine?
Good Day… and a Wonderful Wednesday to you! And Welcome to September, a fews days late…. Well, I finally felt a bit better to get outside and do some cooking this past holiday weekend. Monday, I put my world-famous Turkey Roast Breast, wrapped in bacon, and let the Big Green Egg do the rest! It was YUMMY! Yesterday was a day to break out the Brownstone and grill some brats… And again, they were YUMMY! I even celebrated and had a nice cold one while cooking.. I hadn’t had a nice cold one in over two weeks! And again, that was YUMMY! Stevie Guitar Miller and his band greet me this morning with their song: Living In The USA
Well, my visit to the hospital didn’t take too long to go through the blood tests results and what not… So, that was a good thing… For I really wanted to see where Gold was going after a strong gain on Monday, Sept 1… This from the Good Folks at Gata regarding Monday: Gold hit a more than four-month high today to trade around $23 shy of all-time highs, buoyed by U.S. Federal Reserve rate cut bets and a softer dollar, while silver breached $40 per ounce for the first time since 2011.
Spot gold was up 0.9% at $3,477.56 per ounce by 9:37 a.m. ET, its highest since April 22 when it touched a record-high of $3,500.05. U.S. gold futures for December delivery gained 0.9% to $3,547.70.”
Chuck Again… Well, the next stop for Gold is $3,00, and for Silver, The next stop… $50… and then to infinity and beyond! (Buzz Lightyear)
There weren’t the number of dollar traders around on Monday, but the dollar did lose one index point in the BBDXY to 1,200… Yesterday, when the markets came back from the long weekend, and at one point of the day on Monday, the BBDXY was 1,198… Sinking away… on Monday…
The price of Oil climbed higher in the $64 handle on Monday… See what the commodities can do when left to their own devices?
In yesterday’s trading, the dollar bounced back, (for what reason?) The BBDXY gained 6 index points to 1,207… The euro had climbed over the 1.17 level on Monday, but gave it back on Tuesday with the dollar rally… Gold, however, rallied once again and yesterday it gained $ 66… To close at $3,543. While the wolves were at Silver’s door yesterday, and SPT’s took Silver downward, but… But showing who’s stronger now, buyers or sellers, Silver ended up at $40.93, so we’re still on the way to Infinity and Beyond…
Bloomberg.com had this online this morning regarding the Dollar rally yesterday: “The dollar strengthened the most in a month as investors reached for safe havens amid a broad pullback in global stock and bond markets.”
Ahem… beg my pardon here, but Bloomberg.com still thinks the dollar is a “safe haven:? Well, bust my buttons! You learn different things about people and companies in times like this, don’t you? I did here, for sure!
The price of Oil has gotten a bee in its bonnet lately, and yesterday the price of Oil traded over the $65 handle… It ended the day trading with a $65 handle… And the 10-year saw its yield pulled higher by the activity in the 30-year, which is nearing 5% yield once again… The 10-year’s yield closed yesterday at 4.28% yield…
In case you’re a new reader, or missed class the 100 times I’ve discussed this before… I use the 10-year Treasury as my point on Bonds, because the 10-year is used to price mortgages, and other types of loans, so it’s very important!
In the overnight markets last night… the dollar buying that took place yesterday, stopped overnight, and BBDXY lost 1 index point overnight… I can hear the foreign traders talking among themselves, “Did you see that our brothers in trading over across the pond are saying that the dollar is a “safe haven, we don’t and we’ll show them! (of course that was me not the foreign traders, but can’t you see them laughing right out of their chairs? )
The euro is getting dragged down from the recent speech by the French Prime Minister, Bayou, that France is toast, and the rest of Europe needs to stand together to make this thought, but instead, the Eurozone members are trying to be different from each other… YIKES… has France become the new “Canary in a Coal Mine”? I took that from the great Mathew Piepenburg’s letter… so, kudos to him!
The yield on the 10-year slipped back to a $64 handle overnight, apparently someone in Oil Industry told the world yesterday, that there will soon be a GLUT of oil supply… Sticks and stones may break my bones, but your words will never hurt me… Well, not with the price of Oil…
And the 10-year also saw slippage in its yield and starts today with a 4.27% yield…
Last week, I thought it was that I told you that Fed/ Cabal/ Cartel’s independence was getting drained from them… And then I can across this from investinglive.com that they took from an interview that VP JD Vance did with U.S.A Today… here goes: “Vice President Vance in an interview on Thursday, on dismantling Fed independence: “I don’t think we allow bureaucrats to make decisions about monetary policy and interest rates without any input from the people that were elected to serve the American people…POTUS is much better able to make these determinations.”
If you were in any doubt this clears it up. It might take some time, but Trump seems to get his way eventually.”
Oh-no! For the longest time I said that interest rates should be set by the Bond Boys of which POTUS is not one of those… Sec of the Treasury, S. Bessent was a bond boy in his days, and he should be pushing back on the White House taking over interest rate setting… But then maybe he fears for his job if he pushes back?
That’s not earth-shattering news to me that the Fed has lost its Credibility and independence, but it is earth-shattering news to me that The W.H. Wants to take it over….. Heaven Help Us! SERENITY NOW!
You know that the chance of runaway inflation that I spoke of in Sunday’s Pfennig? It could get to us much faster… Got Gold?
The other thing that caught my eye these last couple of days is that Student Loans are very deeply deficient in their repayments… I know that Student loans aren’t the same apple as the Housing debacle we had 18 years ago… But one thing leads to another, and soon it will filter over the Housing… That’s just how I see it happening, so take that with as many grains of salt that you wish… Remember 2007? Lehman Bros folded, while The Gov’t saved Bear Stearns… The Lehman Bros folding was the straw that broke the camel’s back, and soon Insurance Cos, Casino Banks, Auto Co’s i.e. G.M., and everything you could point at was failing… it only takes one snowflake to start an avalanche, folks… again.. Got Gold?
Good friend, Dennis Miller, sent me this after reading my Sunday Pfennig: “Afterthought….. If the electorate listened to the people, the 2008 bailout NEVER would have happened. I think it failed the first vote, passed by one vote the second time, and polls showed overwhelmingly the public was against bailing out the banks….
Yes those dastardly bail outs of the Casino Banks… We should have as a country let those that had to fail and take bail outs, to fail… then we could have cleaned up a lot of the debt mess and started clean.. The Austrian Economists have always taught that a boom cycle needs to be followed by a cleaning out of all excesses to start over again with a clean slate.. And then the growing can begin in earnest, not with Bill Bonner calls “Phony Money”
So, where does that leave us this morning? The dollar is getting taken downward, the Fed/Cabal/ Cartel is getting ready to cut rates, which should make the dollar even weaker, And inflation is in the dark alley just waiting to jump out a scare the Bejeebers out of us! Get this, spell check doesn’t like my word: Bejeebers… Who cares?
And the stock market shrugs it all off, and the sheeple just keep buying, because their investment advisor or whomever counsels them on stocks, keep telling the sheeple that “everything will turn out peachy”….. You know like when Big Ben Bernanke told us that the housing wasn’t a problem back in 2007? I wonder how many people went ahead and bought a house in this time, only to find out that they owed more on the house after it had lost all that value? That’s why it’s better to listen to some country bumpkin like me that sees things in logic, than some professional who has a dog to hunt in the stocks, houses, cars what have you he’s selling?
Oh! And there’s one more thing that’s troubling me these days, and it’s what’s going on in Emerging Markets debt… You see, that most Emerging Markets debt was denominated in dollars… But now China has gone to these Emerging Markets and told them they would refinance the loans in renminbi… China has told them all about how the U.S. froze Russian asset, etc. and it could happen to them even easier… So, you can guess what’s going on here, right? The Emerging Market Countries are swapping their dollar denominated loans to renminbi denominated loans…. That means they’ll be even less use for dollars going forward…
I’ll have something more on this tomorrow, it goes back to my writing days (on the side) for the Sovereign Society… That was more than 15 years ago! So, stay tuned, same bat time, same bat channel…
The U.S Data Cupboard this week will be a busy week for data prints… It all starts today with Factory Orders, Job Openings, and the Fed Beige Book, which used to mean something to the markets but these days, no one pay attention to it any longer… Tomorrow, we’ll see the ADP Employment Report for August… And the latest print on the Trade Deficit, which should be HUGE because Co’s. Have been stockpiling inventory ahead of the Tariffs… And then on Friday, it’ll be a Jobs Jamboree Friday, with the BLS printing their fantasy number on Jobs created in August… Remember, the new head of BLS has taken over and this will be his first print of Jobs numbers… Wanna bet that there were changes to the fantasy jobs the BLS adds to the surveys?
To recap… The dollar is getting sold, (although it’s rallying today) interest rates are coming down, The long end of the bond market is going to visit 5% soon, and the debt just continues to grow… Gold and silver seeing these things are attracted many new and old buyers , and are heading higher… and the SPT’s are shocked to see this happening before their eyes… But remember, the wolf is always at the door?
For What It’s Worth… Well, this is from Yahoo Finance, and it talks about how the Manufacturing sector is in deep dookie… and it can be found here:
Or, here’s your snippet: “The US manufacturing sector continued its sluggish year in August.
Data out Tuesday from the Institute for Supply Management showed the ISM’s manufacturing PMI came in at 48.7 last month, an increase from the reading of 48 seen in July but below estimates for a reading of 48.9, according to Bloomberg data. Readings of less than 50 on the index indicate a contraction in activity in the sector.
This marked the sixth straight month of contraction in the US manufacturing sector, according to the ISM’s reading.
The new orders index within the ISM’s report, however, rose to 51.4, indicating expansion, and marked a strong uptick from the 47.1 seen in July. The production index fell to 47.8 in August from 51.4 in July.
“In August, U.S. manufacturing activity contracted at a slightly slower rate, with new orders growth the biggest factor in the 0.7-percentage point gain of the Manufacturing PMI,” said Susan Spence, chair of the ISM’s survey committee. “However, since production contracted at a rate nearly equal to the expansion in new orders, the Manufacturing PMI increase was nominal.”
Respondents to the ISM’s survey widely cited tariffs as putting pressure on their planning, sales, and costs.
One contact in the electrical equipment industry told the ISM they’ve raised prices by 24% so far, but these increases will only offset tariffs, meaning their margins won’t actually improve as a result.
“In two rounds of layoffs, we have let go of about 15 percent of our U.S. workforce,” this contact said. “These are high-paying and high-skilled roles: engineers, marketing, design teams, finance, IT and operations. The administration wants manufacturing jobs in the U.S., but we are losing higher-skilled and higher-paying roles. With no stability in trade and economics, capital expenditures spending and hiring are frozen. It’s survival.”
This report also showed, however, that tariffs continue to act as a headwind for manufacturing. S&P Global Market Intelligence’s chief business economist Chris Williamson said in the report that factory inventories rose on concerns over coming price hikes and potential supply constraints.”
Chuck again… tariffs… see what they can do for us? Yeah, maybe our revenues from tariffs might make a difference, but I doubt it given all of the legal entanglements coming from them… I guess, we’ll have to wait-n-see?
Market Prices 9/3/2025: American Style: A$.6538, kiwi .5867, C$ .7246, euro 1.1643, sterling 1.3414, Swiss $1.2430, European Style: rand 17.6326, krone 10.0398, SEK 9.6406, forint 337.49, zloty 3.6487, koruna 20.9733, RUB 81.42, yen 148.63, sing 1.2886, HKD 7.8013, INR 88.06, China 7.1454, peso 18.69, BRL 5.4482, BBDXY 1,206, Dollar Index 98.26, Oil $64.24, 10-year 4.27%, Silver $40.91, Platinum $1,412.00, Palladium $1,165.00, Copper $4.63, and Gold… $3,543
That’s it for today… I know, I know the last two Pfennigs have been more of a “let’s see what Chuck as to say” and not your usual discussion about economies, markets and dolts… On Sirius XM the Classic Vinyl station had the Top 500 classic rock songs looping over and over again so if you missed a portion of the countdown, you could pay catch up… Lots of the song played are on my phone… The Top 2 songs were Hotel California #2, and Stairway To Heaven at #1… In case you wanted to know… I actually got out and drove my car a couple of times over the weekend. I love to drive… Ever since I turned 16, and found that driving gave me freedom… I still take long drives to nowhere just to feel like I’m escaping and getting away! Steely Dan takes us to the finish line today with their song: Don’t Take Me Alive.. I hope you have a Wonderful Wednesday today and will Be Good To Yourself! I know I missed Pfennig Tradition last Thursday when I signed off and didn’t end it with: An I’ll see you in Sept”… oh well, I do my best…