- the dollar continues to get bought
- ECB meets today…
Good Day… And a Tub Thumpin’ Thursday to one and all! Wel, what a difference a week makes, as I feel this week to be able to participate in any Tub Thumpin’ anyone might want to do today! Last week, a hard no on Tub Thum’in’, but a week later, I’m raring and willing to go! I had my biopsy on the tumor on my mandible yesterday, and I was telling a good friend of mine, that it went better than one could imagine… Now, I sit and wait for the genetic testing lab to come back with something… I’m really frustrated with the process of finding me a new chemo… , But .. It is what it is… Dodgers go up 2-1 in games in the NLCS… America greets me this morning with their great 70’s song: Lonely People…
The dollar didn’t move much yesterday, with the BBDXY gaining less than 1 index point on the day… The euro remained below 1.09, and the rest of the currencies remaining in their sick beds… Maybe the dolllar run its course for this period of time… Maybe…. Gold & Silver had great days yesterday with Gold gaining $12 on the day, and Silver gaining 20-cents… Gold closed the day at $2,675.10, and Silver closed at $31.86… I read an article written by Ronnie Stöferle, the guy that puts together the annual book on Gold, In Gold We Trust… And he went through 5 reasons why he believes Gold is nowhere near reaching a high and petering out…
Here’s Ronnie with his thought on Gold: “With a gold price of just over USD 2,600 at the end of September, the gold price has reached the year-end forecast of our Incrementum Gold Price Forecast Model for 2024,” he concluded. “Given the further deterioration in economic and (geo)political conditions, the model’s price target of just over USD 4,800 by the end of 2030 will be considered a conservative projection. Against this background, even gold, which became significantly more expensive last year, is still cheap.” – Ronnie Stöferle
Chuck again… Ronnie is so well thought of when it comes to people talking about Gold that he’s like the old E.F. Hutton commercials… When Ronnie speaks, people listen.. I found that article on kitco.com
And here’s Ed Steer’s take on the metals/ dollar trading yesterday: “Helped along by another one of those phony baloney dollar index ‘rallies’…the collusive commercial traders of whatever stripe made sure that silver’s big break-out attempt in early morning COMEX trading didn’t get far.
It traded as high as $32.38 in the December contract, but ‘da boyz’ made sure it closed below $32 bucks…which it did, at $31.97. Of course — and as is always the case, it would have closed at some rather spectacular 3-digit price if they hadn’t intervened.” – Ed Steer at www.edsteergoldsilver.com
The price of Oil bumped a dollar higher yesterday, and ended the day trading with a $71 handle… And the 10-year’s buying stopped for a moment, and left the bond with a 4.03% yield to end the day…
In the overnight markets last night….I know I sound like a broken record, but here goes… The dollar continued to get bought overnight, with the BBDXY gaining 1.50 index points… As far as Gold & Silver are concerned, I don’t mind sounding like a broken record, and so this morning in the early trading, Gold is up $6, while Silver is in search of a bid this morning, down 9-cents… I’d like to take a minute here and discuss what Ed Steer talked about above, regarding a “fake dollar index rally”…
Ed and I agree that the dollar keeps getting pulled out of the gutter by the PPT and their Exchange Stabilization Fund (ESF). So, when he says something like that, he detected funny business in the dollar index trading…
The price of Oil slid back below $71 overnight, and trades this morning with a $70 handle… I truly believe that there are no markets out there that have asset classes that are not manipulated… Oil is included in this discussion… You tell me that all the saber rattling going on in the Middle East doesn’t have Oil trading around $90? I’m just saying…
The 10-year’s yield bumps higher overnight to trade with a 4.04% this morning, to start our day.
I’m dead serious here folks, that every asset class is manipulated… I’m just saying….
Well, the European Central Bank (ECB ) is meeting while my fat fingers go to work this morning… The European Central Bank is likely to lower interest rates for the third time this year later today. The first back-to-back rate cut in 13 years would mark a shift in focus for the euro zone’s central bank from bringing down inflation to protecting economic growth. Really? oh, Nellie! That’s totally stupid in my opinion, and the euro deserves to be trashed because the ECB is now thought to be on bord to cut 5 times in the next year… But, here’s the thing to think about with the euro… It is the offset currency to the dollar, and if the dollar would be set free to trade without intervention, it would be getting sold, and the euro would be getting bought… I’m just saying…
And here in the U.S. there was a news story about how Raytheon defrauded the U.S. and got caught with its hands in the cookie jar… Here’s the skinny from the U.S. Justice Dept… “Raytheon Company (Raytheon) — a subsidiary of Arlington, Virginia-based defense contractor RTX (formerly known as Raytheon Technologies Corporation) — will pay over $950 million to resolve the Justice Department’s investigations into: (i) a major government fraud scheme involving defective pricing on certain government contracts and (ii) violations of the Foreign Corrupt Practices Act (FCPA) and the Arms Export Control Act (AECA) and its implementing regulations, the International Traffic in Arms Regulations (ITAR).”
Chuck again… Ok, here we go again with the “if Chuck was kind” stuff… If I were King, I would tell Raytheon, goodbye, no more business with you, and you are not allowed to sell your goods and intellectual property to anyone outside of the U.S. But that’s not what will happen… In a few years, mark my words here, a new claim will be made against Raytheon, and everyone will be scratching their collective heads, an say, “I thought we canned this company a few years ago?”…. I’m just saying…
And that Ole Debt is being talked about again, with the talker pointing out the U.S., I found this on Zerohedge.com this morning, so let’s listen in: “The International Monetary Fund (IMF) has issued a stark warning about the rising tide of public debt in countries across the globe, with the United States standing out due to its persistent fiscal deficits and mounting spending pressures.
The IMF’s latest Fiscal Monitor report, released on Oct. 15, projects that global public debt will exceed $100 trillion in 2024, equal to about 93 percent of global gross domestic product (GDP), and could approach 100 percent of GDP by the end of the decade. The United States, in particular, faces significant risks if fiscal policies are not adjusted urgently.
The report emphasizes that countries, including the United States, need to address debt risks with carefully crafted fiscal strategies.”
Chuck again… Well, for countries like the U.S. and Japan, the old Carol King song comes to mind… It’s too late baby now it’s too late…. Default on some or most of our debt is going to be our only choice going forward, the Debt is too large to inflate away, although the knuckleheads that run this country are going to give that the old College try, but to no avail… Default is coming to a theater near you…
The U.S. Data Cupboard finally has some real economic data for us to view today… First up is the Sept report on Retail Sales… I told you earlier in the week that the BHI indicates that Retail Sales will be OK… Not great but OK… Next up is the Usual Thursday fare of the Weekly Initial Jobless Claims, of which I believe we’ll begin to see this report grow with the number of Unemployed people… Next up is Industrial Production, and Capacity Utilization, which I don’t think will give anyone goose bumps… I’m just saying…
To recap… Chuck sounds like a broken record, as he repeats again and again, that the dollar got bought again yesterday and last night… Gold & Silver found their ways through the gauntlet of short paper trading yesterday to eke out a gain, and are up in the early trading this morning… The ECB meets this morning, and they will most likely cut rates again… And Raytheon got their hands caught in the cookie jar…
For What It’s Worth… I pulled this from Ed Steer’s letter this morning after he featured it… This is about how Oranges prices are soaring, so get ready for that, and you can find it here: Orange Juice Prices Near Record Highs Amid Fears Of Worst Florida Harvest In A Century | ZeroHedge
Or, here’s your snippet: “Frozen concentrated orange juice futures on the Intercontinental Exchange in New York are nearing new record highs. The squeeze in the physical markets may drastically worsen after a new citrus grove survey damage report across Florida following Hurricane Milton shows widespread damage.
Industry consultant Judy Ganes told Bloomberg that more than three million boxes of oranges may have been lost after Milton knocked fruit from branches and devastated citrus groves in the Sunshine State. She warned the next Florida harvest could be the worst since the late 1920s.
In recent years, Hurricanes Ian and Nicole, freezing conditions, and citrus greening disease have decimated citrus groves in the state. Milton has only exacerbated those problems. Some of the latest industry figures show that US orange production is set to reach its lowest level in more than a century.
O.J. futures have surged to $5/lb., a staggering 433% jump from the Covid lows of around $1/lb. Worsening supply woes could push prices even higher.”
Chuck again… This situation isn’t going to go anything nice to inflation pricing… I’m just saying… You know, I used to drink a ton of orange juice, but then I had problems with my blood sugar and ( had to stop drinking it… UGH!
Market Prices 10/17/2024: American Style: A$ .6697, kiwi .6070, C$ .7259, euro 1.0885, sterling 1.3017, Swiss $1.1583, European Style: rand 17.7205, krone 10.9313, SEK 10.5702, forint 364.80, zloty 3.9306, koruna 23.2470, RUB 94.17, yen 149.49, sing 1.3124, HKD 7.7740, INR 84.08, China 7.1214, peso 19.99, BRL 5.6044, BBDXY 1,252.82, Dollar Index 103.47, Oil $70.48, 10-year 4.04%, Silver $31.77, Platinum $1.008.00, Palladium $1,039.00, Copper $4.33, and Gold… $2,681.18
That’s it for today and this week… Kathy was supposed to on a plane heading for S. Florida on Wednesday, but she changed it to Saturday, so as to be here for my biopsy… How nice of her, eh? So, starting Saturday, I’ll be all by myself (Eric Carmen) here… No biggie as I do believe I’m past the difficult time and well on the road to recover… It was a double whammy with me this time, with first the blood loss of the bleeding ulcer, and then the water weight taking me over…I’m back to within 12lbs of where I was with my weight, before all this happened… YAHOO! My beloved Mizzou Tigers come home to play Auburn this Saturday… Go Tigers! Bob Marley and the Whalers take us to the finish line today, with their song: Three Little Birds…. I hope you have a Tub Thumpin’ Thursday today, and please, oh please, Be Good To Yourself!
Chuck Butler