Inflation Reflected In Bonds But Not Copper? What Gives?

Rocktober 21, 2021

* Currencies & metals rally VS the dollar on Wednesday

* A$ and Kiwi are firmly on the rally tracks… 

Good Day… And a Tub Thumpin’ Thursday to you! Just when the Red Sox thought they were going to be one game away from the World Series, the Astros came storming back, first on Tuesday night, and then followed that rally with another one last night and now it’s the Astros that are only one game/ win away from the World Series! Baseball is a strange game at times…  I finally got to sit outside to read yesterday, the sun was warm, the sky was blue, and there were no workers in my backyard! My visit to the heart doc, when well… He liked that I had lost more weight than when he last saw me 6-months ago, and said that my heart function continues to get stronger… I still go in and out of AFib a lot, but he’s not worried, and if he’s not worried then I’m not worried!  The Blue Jays (spin off of the Moody Blues) greet me this morning with one of my all-time fave songs: I Dreamed Last Night…  Not familiar with that one? YOUTube it and you’ll become a fan quickly!

Well, we began yesterday with the dollar up a tiny bit from the day before, and Gold up $15… And then the Fed’s Beige Book printed… Recall I told you that at one time, this data print could move the markets, but not so much now… Well, yesterday’s version of a regional pulse of the economy yielded no real signs of anything… “moderate growth”, “inflation running higher” “they may have to hike rates earlier than thought”…    And again there was talk of tapering, but since we’ve been through all the reasons I don’t believe they can begin to Taper, I won’t pay any heed to what the Fed/ Cabal/ Cartel heads are saying about tapering.. .

But somewhere along the way, the dollar began to get sold again… And the BBDXY fell from 1,156.73 in the morning to 1,153.99 to end the day. The euro climbed higher, and the Aussie dollar (A$) continue to beat all other currencies in performance against the green/ peachback… Kiwi is also on the same rally tracks as the A$, and it’s nice to see these two moving higher once again… During the last weak dollar trend, 2002-2011, these two both gained over 100%… I know, that seems impossible, but it was a fact, Jack!

Gold, though, wasn’t able to hold its early morning gains, and ended up gaining $13.10 to close at $1,783.20, while Silver gained 64-cents, thus outperforming Gold, to end the day at $24.37

In the overnight markets last night… the foreign markets decided to buy dollars once again, and brought the dollar out of its free fall… The BBDXY trades at 1,154.50 this morning up from yesterday’s close of 1,153.94.. the move higher isn’t one to tell the folks back home about, but it did, as I say stop the dollar’s free fall, for now…  Gold is down $3 in the early trading this morning, and Silver is down 16-cents.. So, not exactly big losses, and ones that could very easily be reversed, which I’m thinking is in the cards today… 

The price of Oil has slipped back below $82, but I think this is just trading ups and downs, and Oil to me, is on a flyer to $100 but then, will the price manipulators allow that to happen? Only the Shadow Knows! Speaking of price manipulation, look at the price of Copper… earlier this week, Copper had reached $4.78, and then it was as if the rising inflation was wiped out, because Copper fell to $4.59… We all know that inflation hasn’t been wiped out, so that only leaves price manipulation…  

Bond got sold once again yesterday, with the yield on the U.S. Treasury 10-year rising to 1.67%, from the previous day’s 1.63%…  So, bond yields are reflecting inflation, but copper isn’t? Give me a break! The markets have become a price manipulation playground… When and what will cause them to all go away?  That IS the $64 question… 

I won’t quibble with the price manipulators this morning for yesterday’s beat down of Gold, I sometimes think I sound like a broken record talking about the price manipulators…  But just because I’m not going to talk about them this morning, doesn’t mean that the GATA Chairman Bill Murphy, can’t say something about them… Let’s listen in…   “Throughout US history, those are most of the basic reasons investors bought gold, silver, and their shares to protect their net worth against severe devaluations and dollar debasement.

What a winner gold, silver and the shares appeared to be as we started out the year.

They, us, me could not have been more wrong in that assessment.

The Gold Cartel immediately went into action with their call to Houston to mitigate their problem and suppress the gold/silver prices. Throughout our history gold has been viewed as the barometer of US financial market health. As former Fed Governor, Paul Volcker, once said about gold, “Up is bad, down is good.” That barometer had to be immediately made dysfunctional and the gold price suppressed. Since silver has historically been viewed as a similar barometer, it needed to be treated in the same manner.

And boy did the cabal go into action, with a tactic no one in history has ever seen before and that has been to bomb the gold/silver prices in straight down fashion on just about a daily basis … generally between two hours before, to two hours after, the opening of trading on the Comex.

As reported in my LeMetropoleCafe commentary, the bums have done so every day this year, except for approximately 20 of them and that includes EVERY DAY of the first 19 days in September, with one of them being just silver on downside.”

Chuck again.. I could let him go on and on about what the price manipulators have done this year to Gold & Silver even in the face of historical reasons for theses metals to move higher!  I thank the good folks at GATA for sending me this email…

OK, onto other things…  Longtime friend, and publishing guru, Bill Bonner started his letter yesterday, that can be found at  by asking this question: “Why is the U.S. struggling to make progress?

It is slipping in almost all global rankings. Its growth rate is barely half what it was in the last century.

And its government is more corrupt, degenerate, and incompetent than at any time in history.

What gives?

The answers fall into two major categories. Either it is the fault of God or of God’s creature, man.”

I just love the way Bill puts things out there that make your mind begin to think!

And then there was this…. The global debt has jumped to a new high of $226 trillion, said the International Monetary Fund (IMF) on October 13, 2021. As reason of this leap in global debt, the IMF has cited the Covid-19 and policies put in place to respond to it.

And I say… that was just last year’s expenditures, what have they to say for themselves regarding the debt buildup for the last 20 years?  Just like young kids today, it’s always someone else’s fault, they could never be to blame… Shame, Shame, Shame in my best Gomer Pyle voice!

The U.S. Data Cupboard today has the usual Thursday fare of Weekly Initial Jobless Claims… and then something to make note of: The Leading Indicators for Sept… I would think that given the news that the GDP Now site had about GDP falling in the 3rd QTR. That this index will also show weakness, and that won’t be good for the dollar… There are also a trio of Fed/ Cabal/ Cartel heads on the speaking circuit today… I always have to wonder if they will be singing from the same song sheet…

To recap… The dollar got sold yesterday, and all the currencies found their way onto the rally tracks… Gold couldn’t hold its early gains but still gained $13 on the day… Chuck allows Bill Murphy to vent about the price manipulators, and Chuck has two of his fave writers adding to the Pfennig today, Bill Bonner and Doug Casey!  Talk about some heavy hitters!

For What It’s Worth…  Ok, I mentioned this FWIW article yesterday… This is an old friend, one that I once sat outside around a fire in San Diego, with libation and cigars, to discuss the world… Doug Casey, has been around the world and written so much about investments, housing, economics, governments, etc. I receive his newsletter every day, and I could use it for the FWIW article every day, but… I choose to only use it occasionally.. And this is one of those times… The title of his article is: When  A Train Wreck Is No Accident…  And you can find the article at

Or, here’s your snippet: “Never in history have the economic and political structures been so manipulated by those who are responsible for their safekeeping; never has so much been at stake, in so many countries, and facing collapse, all at the same time.

The great majority of people in the First World recognise that the world is passing through an economic crisis. However, most are under the impression that there are some pretty smart fellows running the show and all they need to do is tweak the system a bit more and we’ll return to happy days.

Not so. The “smart fellows” who are in charge of fixing the problem are in fact the very same people who created it.

Understandably, this a hard concept for most people to even consider, let alone accept, as the very idea that those in charge of the system might consciously collapse it seems preposterous. So, we might wish to back up a bit here and present a very brief history of the system itself, in order to understand that the eventual collapse of the economic system was baked in the cake from the very beginning.

And so, the Fed set about its hundred-year programme of continuous inflation. Although there have been periods of lower inflation (and even deflation), the programme stayed more or less on course, and now, its hundred-year life has all but ended: the dollar has been devalued almost 100%.

And so, we find ourselves at the day of reckoning. The economic crisis we are now facing (not only in the US; it will be felt, to a greater or lesser extent, worldwide) is not a mere anomaly that we need to “push past”. It’s a systemic crisis. It’s been created by design and the system must collapse.

Of course, the central banks are in the process of protecting their interests, to make sure that, whilst this will be a major economic calamity, they themselves will continue to profit. The damage will be borne by the general public.”

Chuck again… This is a long article and I request that you take the time to read it all the way through, and then you’ll understand his title to the article… 

Market Prices 10/21/2021: American Style: A$ .7495,  kiwi .7183, C$ .8108, euro 1.1642, sterling 1.3815, Swiss $1.0891, European Style: rand 14.5041, krone 8.3326, SEK 8.6034,  forint 311.36,  zloty 3.9507,  koruna 22.0080, RUB 70.88, yen 114.08, sing 1.3460, HKD 7.7757, INR 74.80, China 6.3910, peso 20.25, BRL 5.5744,  BBDXY 1,154.50, Dollar Index 93.64,  Oil $82.68, 10-year 1.67%, Silver $24.20, Platinum $1,046.00, Palladium $2,114.00, Copper $4.59, and Gold… $1,780.20

That’s it for today… The Dodgers / Braves game ended too late for me last night, as well as our Blues hockey game in Vegas!  UGH! Checking the scores this morning, I see that our Blues have started the season 3-0… And the Braves finally won in L.A!   It was a true Chamber of Commerce day here yesterday, and I would really like to see this continue through the weekend, but rain came down last night, and the rest of the week looks iffy… UGH!  My beloved Missouri Tigers football team got great news yesterday, as the number 1 wide receiver recruit in the country, committed to Mizzou!  When I worked on the trade desk, and Mizzou would get good recruiting news I would play the Mizzou fight song loudly so everyone in the office could hear it! I don’t think there’s anyone on the desk now that has ties to Mizzou, so another tradition has died… Fight, tigers fight for Ole Mizzou!  My Tigers won’t lose this weekend as they play “bye”…   The Easybeats take us to the finish line today with their 60’s song: Friday On My Mind…    A good upbeat song to get us on our way today!  I hope you have a Tub Thumpin’ Thursday today, and please Be Good To Yourself!

Chuck Butler