- the dollar is a runaway bus!
- Inflation on the rise?
Good Day… And a Tub Thumpin’ Thursday to one and all! Every time I turn on our Blues so afar this season, I watch the blow a lead, and lose the game… So, maybe I should keep away from their telecasts! My new GI doc was a hoot! She said she had read my entire health record, and I said, No way! And she repeated my whole history with cancer…. I said, OK, you win! She was so kind to me, as if I were porcelain, She kept wanting to help me up and down…. You know, there’s one thing that I’ve learned through my time with cancer and other maladies, is that it’s OK to allow people to help you, if that’s what they think will help…. Lori Meeham greets me this morning with her versions of the song: We Three Kings…
Well, the STUPID CPI was up on a year-on-=year basis, and that was the first uptick for the data set since March of this year…. YOY The STUPID CPI was 2.6% up from 2.4% in Sept. And that news sent the dollar bugs running around the kitchen floor, here, there, everywhere, and at the end of the day the BBDXY had gained 4 index points…. There’s just no stopping this runaway Bus, the dollar that is…. You see, traders took this rise in annual inflation to another level, and said, “this means it will make it tricky for the FOMC to keep cutting rates”, and off went the dollar to higher ground…
Gold, which was up in the early morning, then turned and the short paper traders came out to play again, and when all the dust settled on the day, Gold had lost $27 on the day… Silver, which was up 22-cents in the early trading, then saw the same selling as Gold did and settled at the end of day losing 66-cents… Gold closed at $2,573.30, and Silver closed at $30.39….
I’m telling you now, so maybe you’ll listen to me later, but everyone just needs to calm down…. Do not panic sell here! If anything use all this selling to buy at cheaper levels…. With inflation on the rise again, this will get Gold going again… Will you look to buy at these cheaper levels, or will you procrastinate and buy once Gold is back to $2,700 and beyond?
The price of Oil remained in the $68 handle yesterday, and the 10-year’s yield said, “OK Fed Heads try and stop me today from rising”… And it rose to 4.48%
I think the Fed Heads are realizing that they are losing the bond market… And the bond vigilantes are back!
In the overnight markets last night: I know I’m beginning to sound like a broken record, but here it is… The dollar got bought in the overnight markets to the tune of 4 index points in the BBDXY, which sits this morning at 1.288…. Gold is down in the early trading -$16, while Silver is down – .13-cents… There’s nothing I can here, other than to remain calm and do not sell in panic mode… You’re going to need your metals protection from the inflation that’s coming…. I”m just saying…
The price of Oil bumped higher to a $69 handle overnight, no rhyme or reason, just GOP…. Adn the 10-year remained offered with a yield of 4.48%…. The Bond boys get it… Inflation is going higher, as too will interest rates have to…. That is unless the Fed Heads have given it to the lawmakers who would love to see inflation riise, to help with the debt….
I really don’t believe that the increase in annual inflation last month is going to stop there…. It may take a month or two to get going again, but as long as Trump 2.0 does what he said he was going to do, and that is place huge tariffs on exports to the U.S. then I see inflation increasing again… Money Supply is off the charts, and it won’t be long before we begin to see it in rising prices…. Remember, what I’ve told you over and over again, that this dance is gonna be a drag, no wait! I’ve told you over and over again that Money Supply equals inflation, period!
Well, hold on to your hat… Here’s what Kitco.com had to say about Gold & Silver pricing right now.:” Gold and silver have struggled in the wake of Donald Trump’s re-election, and with concerns such as the threat of World War III decreasing, one analyst said the bullish case for precious metals is on the back burner until the current market euphoria subsides.”
Chuck again… Remember when I told you that Bloomberg.com and Kitco.com were two naysayers to price manipulation of the metals…. And here the writer from Kitco.com failed to mention that the short paper trading of the two metals has exasperated the price drop…. They went on to say in the article that Gold could fall to $2,500, before turning around….. Like I said, “hold onto your hat”
And speaking of Gold…. The other day I briefly mentioned that the Euro Wanna Bes were making plans to go back to a Gold Standard…. But left it there… Here’s the skinny: Countries outside the eurozone but inside the European Union, i.e., those that one day might join the eurozone—like Poland, Hungary, and the Czech Republic, are positioning for a new gold standard.
To prepare for a monetary system based on gold, they are buying gold to equalize their reserves to the eurozone average. This balancing of gold reserves in Europe is a key topic
And now, additional evidence of these plans has come out, this time from Konrad Raczkowski, former Minister of Finance of Poland.
Raczkowski recently argued official gold reserves in Europe must be evenly distributed relative to GDP, which “in the near future … will be the new gold standard.
Chuck again… You go! Euro Wanna Bes! Show the rest of the world how it’s done and can be a viable system!
The U.S. Data Cupboard today has the usual Thursday fare of the Weekly Initial Jobless Claims, which last week showed an increase, and I expect this week’s print to do the same…. We also will see the color of the Rocktober PPI… Wholesale inflation…. You may recall me writing a month or so ago about how the PPI was giving us signs that consumer inflation was also rising…. I think yesterday’s STUPID CPI proved that point!
To recap…. The dollar buying goes on, and on, an on…. Yesterday the STUPID CPI saw an increase in the annual rate, and that gave traders the idea that the Fed Heads might find cutting rates a little tricky going forward, and therefore they bought dollars like funnel cakes at a State Fair! Gold & Silver saw their early morning games wiped out and then some, and Chuck tells us all to remain calm, and to not panic sell….
For What It’s Worth…. Well, dummy me, I sent myself this link last week when I saw it, for the FWIW article, but then forgot to pull it the next day, and then forgot about it altogether util yesterday when I was going through unopened emails… This is the great jim Rogers talking about what he sees coming for the world economies, and it can be found here; ‘Things are going to go bad soon’: Jim Rogers issues dire warning as global markets hit record highs — here’s what he likes for protection
Or, here’s your snippet; “The relentless rally in stocks seems unstoppable, with the S&P 500 soaring 21% this year alone and a staggering 87% over the past five years. While these gains have propelled many portfolios into the green, veteran investor Jim Rogers said he is deeply concerned.
“Nearly every stock market in the world has had an all-time high, or near an all-time high,” he told Wealthion in a recent interview, warning that when everyone is making profits, “somebody better look out the window and get worried.”
Earlier this year, reports showed that 14 of the world’s 20 largest stock markets hit record highs. According to Rogers, “just about everybody in the world has joined in now.”
Rogers’ caution is rooted in experience, as he said he understands what follows market euphoria. “I’ve been around long enough, or have read enough to know that when everybody is making a lot of money and piling in, it usually means things are going to go bad soon,” he admitted.
I know from history that the world is going to have problems again … and when the world has problems… it’s nice to have some gold in the closet, or under the bed, have some silver in the closet,” he said. “Because no matter what, many people will turn to gold and silver in times of turmoil.”
Chuck again… I’ve met Jim Rogers on a couple of occasions in the past, and he has always been a straight shooter, no fluff, no B.S., just the facts, and history on the subject… And what Jim is talking about above is what I learned to be “A Minsky Moment”….
Market Prices 11/14/2024: A$ .6463, kiwi .5961, C$ .7131, euro 1.0561, sterling 1.2696, Swiss $1.1227, European Style: rand 18.3450, krone 11.1791, SEK 11.0368, forint 387.18, zloty 4.1220, koruna 24.0514, RUB 99.44, yen 156.09, sing 1.3464, HKD 7.7822, INR 84.41, China 7.2441, peso 20.66, BRL 5.7898, BBDXY 1,288.21, Dollar Index 106.80, Oil $69.02, 10-year 4.48%, Silver $30.24, Platinum $934.00, Palladium $927.00, Copper $4.05, and Gold… $2,559.20
That’s it for today…A nice weekend weather-wise is in store for us here in my little river town, and then next week turn much colder…. UGH! You know me, I absolutely abhor Cold weather…. But then it is November… The month of gray cloudy days, with bitter chill, and everything looking dead…. Just a friendly neighborhood Spider Man reminder that there will be no Pfennig on Tuesday next week…. I don’t even remember writing everyday Mon-Friday with only holidays stopping me from writing…. That would have been sometime around June 10, 2007…. Oh, and my 3 vacations a year, but back then I had Chris, Mike and Frank to write for me when I was away…. All of us had different styles of writing, and the dear readers would let me know that I was missed…. Well, My beloved Mizzou Tigers play the Gamecocks of S. C. on Saturday afternoon…. And I’ m very concerned about this one… C’mon Tigers, let’s go! Tuck Andress takes us to the finish line today with his version of the song: It Came Upon A Midnight Clear….. I hope you have a Tub Thumpin’ Thursday today, and please, oh please with sugar on top, Be Good To Yourself!
Chuck Butler