- currencies and metals rally on Friday after the awful jobs number
- Pushing our allies to join up with China…
Good Day and a Marvelous Monday to you… Well, no county defaulted over the weekend, so that’s good news… I have something very special for you in the FWIS section today, so read on! The Amboy Dukes greets me this morning with their classic rock song: Journy To the Center of the Mind…
I want to lead the Pfennig today with this quote from Lola… You know, Goldman Sachs, who has their thumb on the pulse of American investors… Here’s Lola… “If just 1% of privately owned Treasuries were shifted into gold, the US$ gold price could rise to $5,000/oz, according to a new report from Goldman Sachs. The chance of interest rate cuts, and the risk of the Fed losing independence, could also be drivers for the gold price in 2026, according to Goldman. Gold has nearly doubled in the last two years.” taken from Bill Bonner’s Private Research letter 9/4/205…
Well, Thursday started with the dollar rebounding and that phase for the dollar, continued throughout the day, even with the ADP Employment Reports showed a very weak labor demand, that would lead a sane person to believe a rate cut, or debasement of the currency, is coming soon… But, that didn’t stop the dollar bugs from exerting their muscles… Thursday saw the BBDXY close at 1,207, with the euro falling the most.
Gold and Siver got taken to the woodshed on Thursday, by the SPT’s… Do they really believe that they can stem this upward movement in these two? I guess they do, because on Thursday, they were howling at the door of Gold & Silver and took them down, Gold by $16, and Silver by 40-cents… Gold closed on Thursday at $3,546, and Silver closed at $40.70…
Friday, saw the Jobs Jamboree print on 22,000 jobs created in August! And… The new BLS chief jefe, added 90,000 jobs to the surveys out of thin air…. I told you he wouldn’t do anything that would make a difference in how corrupt and fraudulent these jobs numbers get printed… The dollar bugs immediately ran for cover, because the rout on the dollar was on, again… The BBDXY fell to 1,1999 immediately, and the rest of the day wasn’t pretty for the dollar. The euro recovered and took the lead once again on leading the rest of the currencies higher VS the dollar…
The Jobs Jamboree number was a real shock to the “Our Economy is strong and resilient” folks, and they had to deal with the dollar selling all day. The BBDXY did recover a bit at the end of the day, thanks to the PPTer’s I guess, but the BBDXY went into the weekend at 1,202…
And Gold and Silver were back on the rally horse, or the rally train once again after the Jobs Jamboree number had pointed to another notch in the rate cutter’s belt…. Gold ended the week up $40 to close the week at $3,587. Silver ended the week up 35-cents to close the week at $41.05…
The price of Oil is falling again and ended the week trading with a $61 handle… And the Jobs Jamboree really did a number on the 10-year Treasury’s yield… It dropped like a rock, and ended the week with a 4.07% yield…
In the overnight markets last night… the rout that started on Friday on the dollar continued overnight. The BBDXY starts our day at 1,200, down 2 index points… So, Thursday’s rally in the dollar is a small figure in our rear-view mirror… The rate cut, which now is a question of whether it will be 25 or 50 Basis Points, is in the cards, so the debasement of the dollar has begun…
Gold is over $3,600 this morning, up $30 to start our day/ week… I read where a write was questioning if this was the end of the Gold run, or just the beginning of a new run up… I have my opinion, which could end up being wrong, but you know how I love to give my opinion, so here goes…In my mind, this is the beginning of a new phase of run up for Gold… There are just too many things stacked up against the dollar right now, and investors are going to Gold because it makes abundant sense!
Silver is also on the rally tracks again this morning, trading once again over $41 at $4128, up 25-cents to start our day/ week… The price of Oil which seemed to be on the verge of a real collapse, on Friday, as it slid to trade with a $61 handle, all because of the rumor of a glut in petrol, has come back strong and starts our day/ week trading with a $63 handle…
And the 10-year Treasury is bucking the trend of global bonds, who are seeing their yields rise, Shoot Rudy, even the Japanese Gov’t Bond’s yield is rising! But rightly so, I guess, for the U.S. 10-year, since the rate cut is in the cards… The 10-year starts our day/ week trading with a 4.09% yield…
Well, it didn’t take that long considering, but China’s Shanghai Gold Exchange (SGE) is now allowing Gold to be taken in swaps with renminbi… Chinese people can take their renminbi down to the bank and exchange it for physical Gold! I told listeners and readers decades ago that China would eventually have enough Gold to back their currency, and then the end of the dollar reserve system would end… I had many a writer come back at me (not at me personally, but through their own letters stating that it wasn’t even in China’s plans) J.R. Was one of them that really tried to put me in my place… But that didn’t deter me on iota! And now look what China’s doing now… Don’t worry, I won’t give those writers a “I told you so”… or a neener, neener, neener…
Ooops, maybe I just did what I said I wouldn’t do? Oh, well, it’s time to move on… Well, last week’s data was sure not the stuff that a strong economy is built on, eh? I mean the Manufacturing Index remained below 50 and 48.7%, Factory Orders were negative once again, Auto Sales were lower than the previous month at 16.1 Million (I WISH I had bought one of those 16.1 Million), The ADP (The real jobs report) in my mind, was very weak, the Jobs Jamboree was only 22,000, and the Hourly Wages were up but only to 3.7% yoy… That’s not enough to cover the inflation rate (the real inflation rate) and so on… So, if we were really trading on fundamentals, like in the good old days) The dollar would have been sent to the woodshed many times and wouldn’t be still relevant…
And get this.. .It is being reported that tomorrow, the BLS and its new chief jefe, is going to announce that up to 1,000,000 jobs will be revised down, taken away, from all those fraudulent jobs reports this year… 1 Million jobs! Now… Do you finally believe me when I tell you that the BLS adds jobs out of thin air to make the jobs numbers look better than they really are? You may recall that last year over 800,000 jobs were taken away in a revision… So, in two years 1.8 Million jobs that never existed are being taken away… I shake my head in disgust that this news won’t send the dollar reeling, and looking for a parachute… Fundamentals… where have you gone?
Something that happened last week really got me thinking that this is all going the wrong way (Tariffs)… The Chinese hosted an Economic Summit and invited all their Asian friends, including Russia, and India… This is important folks, because Inda and China have been at each other’s throats for eons… Chinese Premiere Xi even had a picture of his warmly shaking hands with Indian PM Modi… This is quite significant folks, trust me on this… We’ve pushed away one of our longtime allies, who used to buy a boat load of Treasuries from us, but now…. They are backing away from the Treasury Auction Window… And buying Gold instead!
And this is when I point out that usage of the dollar as a reserve currency for Central Banks around the world as fallen to 57%… That’s not been seen since 1994 when the dollar was in the middle of a long-term weak trend… Are we headed there again? I for one think the dollar has already begun another long-term weak trend… I’m just saying…
Well, Ed Steer was really on his game in his Saturday letter (www.edsteergoldsilver.com) He has the latest on the short positions in futures that the U.S. Banks have… Here’s Ed…”[The September Bank Participation Report covers the four-week time period from August 5 to September 2 inclusive]
Chuck again… Ed points out that The U.S. Banks’ Short Position in Silver Implodes… So, the point I’m making here is that the short paper traders are still in business, and therefore the wolf remains at the door… So, don’t answer the door! Ignore these dastardly devils, and maybe, just maybe, they’ll go away… Just wishin’ and hopin’ and thinnkin’ and prayin’… (Dusty Springfield)
Well, we can check off yet another former Big Buyer of Treasuries at a time when we need them the most… For the National Debt in the U.S. For grins, I looked at the Debt Clock and it showed that since we hit $37 Trillion on 8/25/15, We, as a country have racked up another $327 Billion, well on our way to $38 Trillion, I’d say… And the real problem here is that a ton of Treasury Maturities will be coming due this year, and will have to rolled into higher interest / yield, bonds… That will put even more pressure on the country’s finances, folks… I’m just saying…
And what are we to make of the Tariffs at this point? The Treasury says that we collected over $31 Billion in Tariffs in August… But… the courts have said these tariffs are illegal without Congress approval, so… The question is this… If the tariffs are struck down, will we have to give the money taken back to the country that was charged? I bet you didn’t think about that one did you? I did, of course, logical Chuck always taking the right lane to drive in… I’m just saying…
The U.S. Data Cupboard last week was disastrous, and this week’s Cupboard won’t be much better, if things go the way I see them going… There’s not much in the Cupboard this week, but we will see the STIPID CPI for August on Thursday… Even with all their hedonic adjustments the folks that put together the STUPID CPI will most likely have to show that consumer inflation has risen to 2.9% yoy… And if you really wanted to know that the inflation rate should be showing, go to John Williams’ shadow stats site…
There you will find that John Williams calculates inflation the way it used to be calculated, a fixed basket of goods, and compare the prices each month, no hedonic adjustments added.. And you’ll find that the real inflation rate in the U.S. is 10% and the real unemployment rate is 27%… Now, doesn’t that sound more like what you’re feeling every time you go to get gas, groceries, tickets, giggles?
On a sidebar here… I was perusing the internet and came across this site that said that to see the Beatles in concert in 1960’s it would cost you a big $5.50… for a ticket to see the Beatles? HOLY COW! Tickets to see far lesser musical talents put on a concert are hundreds of dollars a seat! But that was before Nixon took us off the Gold standard, and the rout on our disposable income was on… I’m just saying…
To recap… The jobs Jamboree sent the dollar down the river on Friday, after having another brief rally on Thursday, the dollar ended the week with the BBDXY at 1,202, but was lower than 1,200 at one point in the day… India and China are buddying up, and that will be to the U.S.’s dismay, I’m sure… Chuck goes ballistic on the pending jobs revision that’s due tomorrow… And What do you think inflation really is?
For What it’s Worth… Which is a misnomer for this announcement… My good friend, and former Big Boss, Frank Trotter, and eventually I’ve found my way back to him, has an announcement that I know that a ton of you have been waiting for, so with no further ado… Here’s Frank Trotter:
“Man, it took a lot longer than I could ever have imagined, but the approval letter from the Federal Reserve finally arrived! We have cleared all the regulatory approvals necessary to purchase Stearns Bank of Upsala, N.A. and begin to launch Battle Bank. Here’s the plan for how it’s going to happen. We are finishing up the pre-opening capital raise and expect to close that at the end of September (Wake Me Up When September Ends, Green Day). If you want to be part of that community and you’re an accredited investor head over to https://www.battlebank.com/invest.
The tentative closing date for the acquisition is mid-October, we’ll continue to run the local bank, change the name to Battle Bank, N.A., and begin to test out systems. Next up we’ll ask some shareholders (hint hint) to open accounts and test with us. When we are satisfied that all is ready, we’ll begin to invite people from the Waitlist – word to the wise, if you want to be a client inside the first year the Waitlist is the place to be. So that’s the plan.
Onward and upward,”
Frank
Chuck Again… Isn’t that just the greatest news in these times of chaos for the markets? I know where my bank account will be heading soon…
Market Prices 9/8/2025: American Style: A$ .6589, kiwi .5936, C$ .7243, euro 1.1726, sterling 1.3532, Swiss $1.2573, European Style: rand 17.5734, krone 9.9889, SEK 9.3801, forint 335.60, zloty 3.6243, koruna 20.7754, RUB 82.07, yen 147.79, sing 1.2843, HKD 7.7937, INR 88.26, China 7.1298, peso 18.65, BRL 5.4072, BBDXY 1,200, Dollar Index 97.66, Oil $63.20, 10-year 4.09%, Silver $41.28, Platinum $1,396.00, Palladium $1,153.00, Copper $5.53, and Gold… $3,6017
That’s it for today… I had a absolutely fabulous Saturday, sitting outside at my son, Andrews’ house with his friends watching our beloved Mizzou Tigers kick ku’s Butt! I’ve been quite wordy lately, spouting off about this, that and the other things swimming around in my brain! See, what happens when I don’t have someplace to go or to be and sit around and think all day? Scary, I know… But at least you get it unfiltered by the Gov’t… For now, that is… Shoot, if I were a resident of the U.K. They could have me arrested, and put in jail for saying true things about the U.S. finances, and problems… Recently I read about a man who sent three texts, that weren’t favorable about some of the stupid legislature the U.K. Has made and he was arrested and placed in Jail when he stepped off the plane at Heathrow… OK, enough of that… Van Morrison takes us to the finish line today with his song: Into The Mystic… I hope you have a Marvelous Monday today, and please remember to Be Good To Yourself!
Chuck Butler