The 2nd Largest Bank Failure Is In The Books!

May 1, 2023

* currencies & metals rally a bit on Friday

* Are you ready for a Global Agenda? 

Good Day… And a Marvelous Monday… And welcome to May! It’s May Day! Time to celebrate May Day with flower crowns, maypole dancing, and by making flower baskets to share with loved ones. Well, the weekend brought me bad news… Ok, it all started with my stroke in January, it was finally determined last week that it caused by one of the chemo drugs I take. So, I stopped taking it, leaving just one chemo drug, that apparently isn’t doing the job, as the tumor in my jaw is beginning to pop out again… So… I have to deal with this now… I go for a scan tomorrow, to see how much growth there is, and then on Wednesday, I go back to the oncologist, who is franticly searching for a new chemo drug for me to take… I’ll find out then, what it might be.. So, no Pfennig on Wednesday this week… And I thought my beloved Cardinals had problems! They all take a back seat to health… I’m just saying…  King Crimson greets me this morning with their classic rock song: In The Court of the Crimson King… 
Well, I guess you’ve heard the news by now that First Republic Bank had to be sold… The Feds waited until the bitter end to deal with FRB… I’m just saying that there was more to do if they would have just reacted at the first sign of a problem with the bank… had this to say about the deal to take over the bank.. “And so JPM, which is already the largest US bank is about to get even bigger, by scooping up all the good FRC assets while leaving US taxpayer holdings on to the toxic ones.”
Isn’t that the way it always is? We the taxpayers get stuck with the bill…  So, it was announced overnight that JPMorgan will take over most of the deposits and assets from FRB… The devil in the details has not been worked out yet…  Oh, and FRB was the second largest Bank failure in the U.S. This is getting serious folks… You can’t be sure if your bank is solid or not… I’m just saying… 
So… the dollar on Friday didn’t really move … Gold didn’t really move, nor did Silver, and so we went into the weekend with the BBDXY at 1,225.46, Gold at $1,991.60, and Silver at $25.15… Both were up on Friday, but the amount they were up wasn’t anything to write home about, so we’ll just say they were flat, like the dollar was on Friday, and move on… The price of Oil rose by $2 on Friday, in what was its biggest upward one day move in a month of Sundays. I’m telling you this now so you can hear me later, but one day, not too far off in the future, the whole world will realize that Solar and and wind mills aren’t going to power the world’s needs for energy, and the whole green thing will be scrapped for further review, and the switch back to Oil, diesel, nuclear, coal will come back stronger than ever!   At least that’s how I see this shaping up…  Shoot Rudy, in the U K. the Gov’t there has already scrapped their lofty ideas about leaving Oil and Coal, and have opened the Coal mines back up… And what have I aways told you about when things happen in the U.K.? They come to our shores in about 6 months… 
In the overnight markets last night…  Well, there was some dollar buying, not much, but some… The BBDXY has gained 2 index points overnight, but the euro is still above 1.10, so there’s that… The worst performer overnight was the Japanese yen, which is trading this morning with a 136 handle, after being in the 134 range all last week… This is where I bashfully say, “I told you so”, about the yen…  Gold is down $3 in the early trading this morning, nothing that can’t be reversed easily… Silver is up 7-cents to start the day… 
The price of Oil slipped a buck overnight and trades this morning with a $75 handle… And there was more selling of the 10-year as its yield has risen to 3.48% this morning. 
Well, did you hear the story about how the Fed/ Cabal/ Cartel Chairman Jerome Powell, got punked by Russians? Oh, this is so good, that I had to read it from different sources to make sure it was true… I mean the people that run this country don’t have “false callers id on their phones?  Well, if they don’t now, they will have pretty soon, don’t you think?   So.. Apparently Powell thought he was talking with the Ukraine President, and told him that the Fed Heads are prepared to hike 25 Basis Points 2 more times… May and June… I would have loved it if the pranksters had asked him his opinion about Congress and the POTUS…  But a prank call by Russians, had Powell believing that he was talking to somebody important, that needed to know what direction interest rates were going… Pretty stupid if you ask me, but then… oh never mind… 
So, with that bit of news going around the markets on Friday, the dollar stopped in its tracks as it was rallying prior to the prank call being made public… You see, the markets, supposedly like to “look forward” and trade accordingly, and if they know that the Fed  Heads are only going to hike 2 more small rate hikes, and then pause, then they see this as the end of the dollar strength because of rate hikes… It’ll be all up the PPT and their Exchange Stabilization Fund (ESF) to prop up the dollar going forward… What happens if their treasure chest of funds runs out? Will they go hat in hand to congress and request more?  I doubt it… I’m just saying
In other news did you hear about the new digital coin that that will act as a global currency that will interact with all other currencies was introduced by the IMF? This new digital currency called the “unicorn” was not created by the IMF, they just introduced it… And if you ask me, this is really scary, folks, and shoud send shudders donw everyone’s respective spine, for this is the gateway, the pathway, the greased tracks to the Global Agenda… Oh My! What else are these power hungry elites going to spoil the world we have now, next? 
I have to tell you that I’m glad I’m old, and not going to be around in the next 20 years, which would mean I would have to only put up with the new Global Agenda a few years, and if I keep my head down and not criticize it in public, I might get through this without a heart attack! 
I told you all about the cartoon I cut out an posted on our refrigerator a few years ago, right? Well, here goes, the cartoon shows a mom, and two young kids sitting around a fire pit, with some kind of meat on the spit, in a cave… The mom say’s “Ok, your dad warned us about this, but we didn’t listen”… 
The FOMBC meets this week on Wednesday, and will announce their rate decision… The Bank of England is next on 5/11, and the European Central Bank doesn’t meet again until 5/24… Expect all three to hike rates… 
What that will go the Gold’s price rally is anybody’s guess, you see Gold got sold most of last year, when it looked like the tracks were greased for many more rate hikes… But recently, (this year so far), Gold hasn’t been bothered with the FOMC rate hikes… That doesn’t mean the short paper traders won’t throw out road blocks from time to time, but the price of Gold is what it is… And I don’t get all too concerned if it’s on a hard rally, or a hard engineered takedown, for I know it will never be zero, and I own it as a store of wealth,  and a hedge against dollar weakness…   I saw this quick quote from Egon Von Greyerz of Gold  and thought it fit well here…  Here’s Egon: “Most investors are totally ignorant of the purpose of gold or its historical significance.

After all, Gold is the only money that has survived in history but virtually nobody is aware of this vital information.
That’s why only 0.5% of global financial assets are invested in gold.  Still most people put their trust in paper money.”
And then there was this that just like the news that the Saudis agreed to sell oil in other currencies than the dollar, was swept under the rug by the media, and it was only folks like me that told you this WAS HUGE! This news was also swept under the rug… But the good folks at GATA sent me this note: “China’s push for greater use of its currency in bilateral trade settlements has made further inroads in South America, with Argentina set to follow Brazil and start to pay for Chinese imports in yuan rather than U.S. dollars.

Economy Minister Sergio Massa confirmed on Wednesday that Argentina, following a meeting with Chinese ambassador Zou Xiaoli and companies from various sectors, had “activated the swap with China”.
Argentina will, Massa added, pay for US$1.04 billion of Chinese imports in April in yuan instead of U.S. dollars and then US$790 million per month from May.
“These types of measures give our reserves greater strength and are key to improving the prospects for net reserves, giving us greater freedom and capacity to intervene in the face of those who speculate and over-speculate with the economic situation,” he added on his official Twitter account.”
Chuck again… currency swap agreements that remove the dollar from the term of trade, have been going on for years, and were first reported by me, in the Sov. Society’s Currency Capitalist newsletter, at least 10 years ago! But then they were with little countries… But I warned then that it would begin to get serious when the Chinese and Saudis worked out a currency swap agreement… And since then we’ve had Brazil, and Argentina sign up with the Chinese… Uh-oh! 
The U.S. Data Cupboard on Friday had the Fed’s PCE (personal Consumption Expenditures) And I’ll let tell you how it came out: “After U.S. and German GDP gravely disappointed and inflation measures on both sides of the pond remain far more elevated that hoped for, this morning’s print of The Fed’s favorite inflation indicator will likely drive today’s early action among the algos.

Core PCE was expected to be flat at +4.6% YoY (and it was, but Feb was revised up to +4.7%) but the headline PCE printed hotter than expected at +4.2% YoY (although well down from the +5.1% prior)..”
Chuck again… yes, and Personal Income was up .3% in March, but… Personal Spending was flat 0%… And normally when the economy is going good and no one is worried about the future, Spending would be equal to Income, and the world would be good… For years, it was a case of Spending always being greater than Income, and that’s not a good thing for the future of the economy, and it turned out to be bang on! 
This week’s Data Cupboard is chock-full-o-data, starting with the ISM Manufacturing Index for March… This index’s number has been below 50 for a few months now, and if it slips toward 45, then it’s a good barometer of a recession going on… 
To recap… Friday’s price action in currencies and metals was nothing to write home about, the BBDXY ended the week at the same level as it was Thursday morning… Gold & Silver ended the week in the positive column, and the price of Oil jumped higher by $2 on Friday! And the 10-year’s yield ended the week at 3.45%… Which I’ll say that my hunch that a big entity (the Fed/ Cabal/ Cartel?) made a huge purchase that drove the yield down to 3.40% last week, after spending the previous week at 3.60%… Jerome Powell got punked… China signs a currency swap agreement with Agrentina, following up on their agreement with Brazil… And First Republic was put in receivership on Friday, and waiting for the best bids from the Big Casino Banks… 
That’s it for Today… I’m all about Gold today, folks… And so this came to me from the good folks at GATA, but I do have a link for the article that’s about the return of hard currency… And it can be found here: BullionStar Blogs with Ronan Manly, Torgny Persson & JP Koning
Or, here’s your snippet: “As the US Federal Government and Federal Reserve head ever more into the abyss of destroying the value of the US dollar, continually breaching debt ceilings, creating asset bubbles, and intervening in and manipulating financial markets, there is an accelerating counter force emerging in the US that is the antithesis of this Federal Government and Federal Reserve madness.

That is the Sound Money movement in the US. Generally speaking, a sound money is a money that is able to maintain a stable purchasing power over time and does not significantly fluctuate due to inflation or deflation. Sound Money is most often associated with a tangible asset, such as gold, which has a low supply increase (or tight monetary controls) to ensure its stability. To , a sound money can “protect against arbitrary actions by sovereigns to depreciate the currency.”
“Sound money is money that is not prone to sudden appreciation or depreciation in purchasing power over the long term, aided by self-correcting mechanisms inherent in a free-market system.”

The movement for Sound Money in the United States is most powerful and effective on the State level, and its a movement which is grounded in grass roots activism and in the tireless advocacy and promotional work of groups”

Chuck again… When the financial system blows up from all this debt, we’ll return to a system based on Gold or maybe even Silver… And then we’ll start all over again… This is what happens on regular historic intervals, folks… So, get ready for it… You know the old saying, “he who has the Gold, makes the rules”… 
Market Prices 5/1/2023:  American Style: A$ .6636, kiwi .6175, C$ .7362, euro 1.1011, sterling 1.2524, Swiss $1,1195, European Style: rand 18.3593, krone 10.7191, SEK 10.2929, forint 338.15, zloty 4.1766, koruna 21.4090, RUB 80.05, yen 136.84, sing 1.3351, HKD 7.8499, INR 81.83, China 6.9181, peso 17.95, BRL 4.9876, BBDXY 1,228.91, Dollar Index 101.81, Oil $75.08, 10-year 3.48%, Silver $25.32, Platinum $1,082.00, Palladium $1,502.00, Copper $3.87, and Gold.. $1,988.91
That’s it for today… So no Pfennig on Wednesday, I go tomorrow to get the scan and then on Wednesday I have to be at the hospital early to see my oncologist to see what the scans tell her, and to discuss a new chemo…  Then I’ll be back Thursday morning, God Willing and Creek don’t rise! The Creek is referring to the Creek Indians, no the creek that runs behind your house! A lot of you probably don’t recall the days when the tumor in my mouth was so bad, that I was sick all the time… Let’s hope it doesn’t go there again! I’m not worried folks… I know my oncologist will take care of me… My beloved Cardinals come limping home from going 2-8 on the road trip… That’s horrible! And our STL City SC soccer team lost on home turf Saturday night, on a very bad hand ball call in the box… UGH!  Ok, you won’t believe this but the Carpenters take us to the finish line today with their song: Superstar  ( I just love the way Karen Carpenter sang that song)… I hope you have a Marvelous Monday today, and please be diligent about Being Good To Yourself! 
Chuck Butler