Chinks In The Dollar’s Armor Are Exposed…

November 15, 2021

* Currencies turnaround on Friday… 

* More of the “this is not the inflation you’re looking for, move along, talk from U.S. power elite… 

Good Day… And a Marvelous Monday to you!  Well, Saturday I traveled to Columbia, Mo, with son Alex, to take in a game with my beloved Missouri Tigers, and the S. Carolina Gamecocks… The day was sunny, but colder than a ….   I had 5 layers on, and the Tigers won, so I was able to survive the cold! Thanks to Alex for the invite. We had a good day together…   This Wednesday, I’ll be going to the Sports on Tap event, with oldest son, Andrew…  Kathy is still gone, I’ve gone two weeks being alone, but the time has flown by…  And next week is Thanksgiving! Time flies when you’re having fun! HA! The Laurence Juber Group greets me this morning with their version of the song: The Holly and The Ivy…

Well, the dollar buying that I left you with last Thursday continued throughout Thursday, and the euro reached a very oversold level, but all the pundits thought that it didn’t matter that the dollar was on a roll… The BBDXY rose to 1,172.55 on Thursday, and was, well, very strong… But then on Friday, there were some chinks in the dollar’s armor exposed, when the U. of Michigan Confidence Index dropped from 71.7 to 66.8, and that got traders thinking that they had over-thought their reasons for buying dollars, and suddenly, the dollar was getting sold…

On Friday, the BBDXY went from the lofty 1,172.55 on Thursday to 1,169.64 at Friday’s close… The euro still shows very oversold, and it will take a lot more downward movement in the dollar for the euro to get out from under that oversold rock…  Longtime readers know that the euro is the offset currency to the dollar, so for the most part, when the euro is down, the rest of the currencies are down too…  Late last week , we had a recurrence of a strange play in the currencies that was going on before the latest dollar upward run… And that is the Russian ruble and Chinese renminbi were the only currencies showing gains VS the dollar…

But that didn’t last long, as there was a secretly done release of Oil by the U.S. from it’s strategic reserves, and that brought the price of Oil down, and since I’ve always considered the ruble as an “oil play”, the rug was pulled from under the ruble too… So, it’s only the Chinese renminbi picking up the flag of the rallying currencies VS the dollar… 

Gold & Silver didn’t mind that the dollar was soaring on Thursday, because they too were moving higher… Gold closed up $12 and Silver up 62-cents on Thursday, and then they followed that up with a muted gain for Gold of $3.30 and for Silver of 6-cents on Friday… Gold closed the week at $1,869.64, and Silver closed the week at $25.42…  A good week for these two metals, as they finally get moving upward to combat the rising inflation…

Friend, Dave Gonigam, editor of the 5 Minute Forecast, had this from James Rickards in his Friday edition of the 5… “Russia paused its decade-long gold acquisition spree 18 months ago. “Now Russia is back on the buy side,” Jim tells us. “It purchased 3.1 metric tonnes in July 2021 and another 3.1 metric tonnes in September 2021 (August was unchanged).”

And that, my friend, could be a very good reason why, Gold has gotten back on the rally tracks… I’ve always said that if we had enough physical buying of Gold the price manipulators would have to step away from the market… 

And one point that we made in the webinar last week is that Central Banks around the world have been buying physical Gold, not Bitcoin…  I’m just saying…

In the overnight markets last night… the dollar has drifted lower, but not by much, as the foreign traders were scratching their collective heads and wondering what the hell was going on… Last week they had received the memo that they were to buy dollars, and then suddenly on Friday, after they had headed to the pubs and saki joints, their brothers in the U.S. began to sell dollars, and they hadn’t received any updated memo… What to do? So, like I just said, they were scratching their collective heads, and wondering what to do… 

So, the dollar simply drifted lower overnight, the BBDXY which closed at 1,169.64 on Friday, is starting today down to 1,169.11… So, as you can see with your own eyes, that dollar has drifted lower overnight…  Gold & Silver are down in the early trading today, with Gold down $3.60, and Silver giving back 19-cents…  

C’mon boys, this is NOT the time to be playing games with Gold & Silver! Inflation is climbing the wall of the economy, and these two metals need to shine even more during this time! 

All of you dear readers that sent me a note telling me I did fine in the webinar, were being too kind to me, as I viewed it again, I stumbled around a lot… UGH! (but thank you anyway!)  Hopefully I’m asked back to do another one, maybe I’ll sound more polished the next time around…   And… for all of you who couldn’t allocate the time to watch the webinar that I appeared on last week, I have for you, a link to the YOUTUBE of the webinar…  And here you go! On the Move Webinar Q4 2021 Featuring Chuck Butler – YouTube

Ok… I’m besides myself this morning because of this article on Bloomberg.com…  Treasury Secretary, Janet Yellen, had the nerve to say, “ controlling the Covid-19 virus in the U.S. is the key to easing inflation.

“It’s important to realize that the cause of this inflation is the pandemic,”

Ok, no mention of all the new currency that has been put into circulation by the Treasury and Fed/ Cabal/ Cartel?  C’mon Janet, give me a break here…  Nothing, nada, nil, zip and big fat goose egg on any thought that the trillions of currency printed in the last couple of years has anything to do with inflation soaring?  I shake my head in total disgust, with her…

And in a follow up article on Bloomberg.com Neal Kashkari the President of the Minneapolis Fed/ Cabal/ Cartel  had this to say about inflation, “We need to take it very seriously, but my view is we also need to not overreact to some of these temporary factors even though the pain is real,”

C’mon Neal… I’ve got a quiver full of arrows to shoot at your statement… What makes you think that anyone is overacting to inflation? Certainly the Fed/ Cabal/ Cartel isn’t!  And wouldn’t it be better to hike rates now, stop printing new currency, and stop deficit spending, to squelch inflation, and then you could always cut them again later? 

So, all along, you, me, and everyone else in this country, except the Elite, are suffering with high prices in everything… I’ve long said that inflation is a “tax” that everyone has to pay, and there are no loopholes to dodge the inflation tax…  And all the while the powers in this country don’t give two hoots that you and I are suffering… They don’t, they really don’t… Take Mary Daly’s comments from the Pfennig last week, and add in Neal Kashkari’s and Janet Yellen’s and you get the picture, they just don’t care…  So, buckle up partner, this is going to be a very difficult ride…

Oh, and please stick around to the end today, for the FWIW is an article about how the rising inflation is all in the Gov’t’s plans… You won’t want to miss that one! 

Well… according to Danielle Di Martino Booth, who was on Grant William’s podcast that I listened to last night, (you have to be a subscriber to listen, so I don’t have the link) Jerome Powell, appears to be on the inside track to be named Fed Chairman for another term… I had read previously that the POTUS wasn’t a fan of Powell’s and recently called Ms. Brainard to the White House, which really caused some to think that she was going to be the POTUS’s choice to be the Chairman of the Fed/ Cabal/ Cartel… 

But according to Di Martino Booth, Ms. Brainard is not confirmable… And so we’ll be stuck with Powell for another term… Don’t get me wrong, I’m not a fan of Brainard either, as she has been on the inside circle of Fed/ Cabal/ Cartel heads for a long time and if anything has happened, the Fed / Cabal/ Cartel  has gained more control, which to me is a very bad thing…

Mexico’s central bank raised interest rates by a quarter point for its fourth consecutive meeting, sticking to a steady adjustment pace even as inflation accelerated faster than expected.

Policy makers, led by central bank Governor Alejandro Diaz de Leon, cast a split 4-1 vote to raise the key rate to 5% on Thursday. So, Mexico like Brazil have gone way out on a limb by hiking rates much higher than all other countries… I’ve always said that the Mexican peso needed a “risk premium interest rate”… One that  paid investors for their “risk” with the peso… Well, now Mexico has that “risk premium”… But… there’s a difference going on here, and that is their real interest rates is still  way below 5%… And so the peso remains a petrol currency only…

But.. kudos to Mexico’s Central Bank  Governor, he’s certainly not waiting for the U.S. to hike rates now is he? 

The U.S. Data Cupboard today, is basically empty, with only the Empire manufacturing index to print… no biggie… But tomorrow we will see Rocktober Retail Sales, which the BHI (Butler Household Index) indicates will be soft, and most likey will not meet expectations. We’ll also see the Rocktober prints of Industrial Production and Capacity Utilization… But that’s tomorrow, we’ll worry about tomorrow when that day comes.. Today, is all that’s promised to us…

To recap… Gold & Silver had a strong week last week, even with some price capping going on curtesy of the price manipulators… The dollar which was on a roll all week and appeared to be getting ready to take off to the moon, got a rude awakening on Friday when the U. of Michigan, confidence report dropped to a multi-decade low, and the dollar got sold to end the week. It appears that Jerome Powell will hold on to his Chairmanship of the Fed/ Cabal/ Cartel… And Mexico has hiked rates again bringing their central rate to 5%… But Chuck doesn’t believe it’s enough to provide a “risk premium” at this point. And in the overnight markets the dollar has just drifted lower, and Gold & Silver have given back a small piece of the gains last week. 

For What It’s Worth…  Well… longtime readers may recall me telling them over and over again, that the Gov’t wants to see inflation, for it’s the only way they can deal with the amount of debt that we have… And then longtime readers, Bob, sent me a link to an article about how  the Gov’t’s plans are all playing out, and it can be found here: National Economic Council Director Brian Deese Claims Inflation Working Perfectly – As Designed, a Collapsing U.S. Economy Demands More Congressional Spending – The Last Refuge (theconservativetreehouse.com)

Or, here’s your snippet:” JoeBama’s National Economic Council Director Brian Deese, the twenty-something central planner in charge of all White House economic policy, tells a curiously skeptical Jake Tapper that things are working swimmingly, exactly according to plan.

According to the Biden-Deese theory on sustainable economic policy, massive spending creates massive inflation; which creates an increased demand for government subsidy to afford basic products; which creates a growing dependency on the government; which creates a need for massive spending.  Wash-Rinse-Repeat.

This is exactly the expanding economic dependency model sold by socialists around the world for generations, which Barack Obama and his Biden administration promise they have now perfected in order to remove the pesky inequities always associated with unbridled capitalism.  Smile everyone, government cheese aplenty….”

Chuck again… Yes, either you live under a rock, or you are experiencing inflation that the Gov’t so desperately needs, but we as citizens don’t! No wonder the Gov’t doesn’t see this as real inflation, they’ve got to sell it to the sheeple that it’s only transitory, and won’t last…  

Market Price 11/15/2021: American Style: A$ .7365,  kiwi .7074,  C$ .7981, euro 1.1450, sterling 1.3430, Swiss $1.0871, European Style: rand 15.1977, krone 8.6617, SEK 8.7422,  forint 319.44,  zloty 4.0471,  koruna 22.0225, RUB 72.83, yen 113.86, sing 1.3567, HKD 7.7902, INR 74.35, China 6.3786, peso 20.52, BRL 5.4577,  BBDXY 1,169.11, Dollar Index 95.04,  Oil $79.64, 10-year 1.55%, Silver $25.22, Platinum $1.085.00, Palladium $2,182.00, Copper $4.49, and Gold… $1,862.60

That’s it for today… OK… I received a notice from my PCP that he needs to see me this week. So, this will be a short week for me as I will be reporting to the doctor bright and early Thursday morning…  OK… Congrats go out to the SLU Men’s and Women’s soccer teams as both won their conference’s (A10) tournament, and the SLU Men are undefeated so far this year!  Maybe they can return to the glory years when the great Harry Keough was the coach!   I have a special treat for lunch today… I’m going to receive a visit from longtime friend, and former boss, Frank trotter, who’s coming to the mountain to see the wise a….  on the hill! HAHAHAHAHAHA…   The David Ian Trio take us to the finish line today with their version of the Christmas classic: Silver Bells…  I hope you have a Marvelous Monday today, and please Be Good To Yourself!

Chuck Butler