- the dollar rallies on Tuesday
- Blowing smoke…
Good Day… And a Wonderful Wednesday to you! Well, my beloved Cardinals listened to me yesterday (NOT!) and made quick work of the Pale hose last night… I have today left on my being by myself… And there will be no Pfennig tomorrow, as it’s an infusion day… I had forgotten that I was due for an infusion, until I received an email from the hospital reminding me of the appt. This won’t be an extra-long Pfennig this morning, as I’m very tired, and not feeling up to writing this morning… The band Marmalade greets me this morning with their great 60’s song: Reflections Of My Life…
The dollar rebounded yesterday, with the BBDXY gaining 7 index points… I read online that it was a correction, but in my view, it was the PPT intervening again, keeping the dollar from all the selling lately… The PPT had to do something, because the data yesterday was just plain awful, which should have led those that are still hoping for a rate cut, to point to the data and say a rate cut is still on the table… I’ll discuss the awful economic data later this morning, but for now, just keep in mind that there had to be some other worldly entity to buy dollars in the face of that awful data yesterday…
Gold started the day yesterday up $12, but soon ran into the short paper traders and had to fight to keep any gain on the day, which was $8… Gold finished the day at $3,391;;; It was Silver’s day to shine, much like it was on a day last week! Silver gained 76-cents yesterday and went over the $17 figure… it was important that Silver maintained the $17 figure throughout the day, and it did just that! The pundits came out of the woodwork again yesterday, calling for Silver to reach $40 this year and $50 next year… Well, if that’s to be… so be it… There will be many tears shed on this journey, but also many smiles.. So, be patient…. And buy during the dips…
Gold’s momentum has slowed down, and I’m wondering if it has run up against a wall that says enough is enough? I tell myself that I can wonder all I want to, but Gold still has some ways to go before saying enough is enough… I’m just saying… And I think China will be the country to say enough is enough… They continue, as a country, to add tons of physical Gold to their reserves, replacing dollars… I have something for you on that in the FWIW section this morning, so stay tuned…
The price of Oil jumped $2 yesterday and finished the day with a $75 handle, after the POTUS fanned the flames of deeper tensions in the Middle East… Trump posted a demand for Iran’s “UNCONDITIONAL SURRENDER” in a social media post and warned of a possible strike against the country’s leader, that led the markets to believe that he was hinting at the U.S. joining in the fight… UGH!
When will the markets learn that when the POTUS says something like that, he’s only blowing smoke? At least I hope that’s what he was doing… For we can’t afford to have the price of Oil going back to $100, or spread our forces even more than they are spread now… Someone in his security detail should buy him a book on the fall of the Roman Empire… I’m just saying…
In the overnight markets last night… the dollar ran into a roadblock last night and the buying stopped…. Hmmm… The PPT doesn’t work at night…. I’m just saying… The BBDXY starts today down 2 index points at 1,207… Gold is seeing some selling and is down $5 to start our day today, while Silver is down 7-cents… Those are easily reversed, so buyer get to it!
The price of Oil remained trading with a $75 handle overnight, and the 10-year saw some buyers and the yield dropped to 4.38%…
Well, today is the FOMC Meeting Day, are you ready for the pack of lies that will be told to us today? Lies like the economy is moving along just fine… We’ll see later that this just isn’t true in the Data Cupboard section. But… if the FOMC decided to throw caution into the wind, and cut rates to surprise the markets, it would really upset the applecart, and Gold would have its new reason to be bought…
Speaking of lies… that was a good FWIW article yesterday, eh? All the lies that have been told to us by the Gov’t and we just accept them and go on… But this latest statement by Treasury Sec. Bessent will be held up to be criticized in the future, if things go the way I think they will… Bessent recently said, that “The United States of American will never default”… Hey! Mr. Treasury Sec. Didn’t your mother teach you to never say never? Mine did!
Longtime reader, Bob, sent me this that feeds right into a discussion about defaults… “Washington burned through $12 trillion in the Middle East since 2003. Result? 7,000 dead Americans. 50,000 wounded, open borders and 100,000 Americans dying yearly from Fentanyl poisoning.”
Today, the United States is $37 Trillion in debt… and it won’t be long before we get to $40 Trillion in debt… The DEBT CLOCK tells us that in 4 short years, our current Debt will be $46 Trillion… And when you add in the Unfunded Liabilities we’re well over $100 Trillion… The numbers begin to make you numb to them, because they are so large, you can’t even think straight about them, but just remember this… Too much debt is a bad thing if you can’t pay it back… I’m just saying….
I recall a day in 2004 when the Big Boss, Frank Trotter, dropped me note that highlighted the fact that the U.S. Deficit for that year was $700 Billion… I gasped and said this is unsustainable, and he reminded me that the U.S. can print dollars, and then walked away… Our deficit last year was $1.8 Trillion… What the heck happened between 2004 and 2024? Well, I’ve chronicled all the debt increases here in the Pfennig, so I won’t bore you with a recap…
The U.S. Data Cupboard yesterday had the May Retail Sales, and I said that the BHI indicated that this print would be negative… Well, it was negative all right… Retail Sales for May were -.9%… That marks two consecutive months of negative Retail Sales, folks… That’s just not what the doctor ordered for GDP… The Data Cupboard also had the May Industrial Production & Capacity Utilization, which I also said would be negative in the IP… And it was just that! May Industrial Production was negative -.2%, thus reflecting a real problem in the factories… And finally Capacity Utilization, which is one of the few forward looking data prints, fell from 77.7% to 77.4%, and that too is not a good print for the U.S. economy looking forward….
All that awful data yesterday, and the dollar rallied? It had to be the PPT, seriously folks for who would buy dollars at that rate if the face of that data day?
To recap… The dollar rebounded yesterday and the some pundits thought it was a “correction”, but Chuck says that the rebound had the PPT’s prints all over it… it was Silver’s day yesterday, and Chuck thinks about how Gold’s momentum has slowed… And then Chuck talks about our debt… UGH!
For What It’s Worth… This article is about how China continues to amass large quantities of physical Gold and why they are doing so… and it was on Zerohedge.com
Or, here’s your snippet: “While most eyes have been on tariffs and Treasury market turmoil, China has quietly executed one of the most aggressive gold accumulation strategies in the world.
And they’re not just doing it for insurance. There’s a bigger shift underway.
A Strategic Reserve Overhaul
The People’s Bank of China (PBoC) has now increased its gold reserves for 18 consecutive months—adding more than 300 metric tons since late 2022. Official holdings now top 2,200 tons, the highest ever. But some analysts believe the real figure could be far larger.
Behind this buying spree is a clear motivation: reduce exposure to U.S. dollar assets.
Private Investors Are Joining In
It’s not just the central bank. In April 2025, Chinese investors funneled over 70 metric tons into gold ETFs—more than doubling any previous monthly record.
Why? A slowing economy and ongoing trade uncertainty have driven domestic demand for hard assets. Gold is increasingly viewed as the best way to hedge against these shocks.
A Bid to Elevate the Yuan
By backing the yuan with growing gold reserves, China aims to enhance its currency’s global credibility. That’s a direct challenge to the U.S. dollar’s dominance in trade and reserves.
This isn’t a short-term move. It’s part of a long-term effort to reshape the global monetary order—and gold is the foundation.
China isn’t speculating. Neither are the dozens of other central banks that have added 1,000+ metric tons of gold annually in recent years.
When nations begin treating gold as a strategic asset again, retail investors should take note. These moves aren’t about profit—they’re about survival, trust, and sovereignty. If central banks are using gold to diversify away from U.S. risk, individuals might want to ask: should I be doing the same?”
Chuck again… yes, I’ve always maintained that China’s goal was to have the most physical Gold when the fit hits the shan, Then he who has the Gold makes the rules, and that’s what China is after… They also want to back their currency with a portion of Gold and that would be a death knell for the dollar…
Market Price 6/18/2025: American Style: A$ 6499, kiwi .6026, C$ .7330, euro 1.1504, sterling 1.3330, Swiss $1.2345, European Style: rand 18.0803, krone 9.9525, SEK 9.5960, forint 350.83, zloty 3.7154, koruna 21.5675, RUB 78.70, yen 144.93, sing 1.2849, HKD 7.8499, INR 86.49, China 7.1883, peso 18.96, BRL 5.5038, BBDXY 1,207, Dollar Index 98.63, Oil $75.34, 10-year 4.38%, Silver $37.08, Platinum $1,308.00, Palladium $1,073, Copper $4.89, and Gold… $3,386
That’s if for today, and this week… sorry about tomorrow, but as I’ve explained before, I always take the first appt in the infusion room of the day, so that I’m not subjected to delays… Next week will be shortened too, as I will be having cataract surgery on the 26th… We’re supposed to be getting some more strong storms today, so that rules out me sitting outside to read. UGH! We had our first day above 90 degrees yesterday, that was very late for that event… And this coming weekend Is supposed to be very hot! So, we have that going for us! HA! Del Shannon takes us to the finish line this morning with his great 60’s song: Runaway… I hope you have a Wonderful Wednesday today, and Please Be Good To Yourself!
Chuck Butler