September 29, 2021
* Currencies, metals, bonds, bitcoin all get sold on Tuesday
* Fitch improves Russia’s economic outlook!
Good Day… And a Wonderful Wednesday to you! Well, my beloved Cardinals won their 17th consecutive game last night… And clinched a spot in the playoffs, albeit a one-game winner moves on playoff game… But, they’re in… and if you get in, there’s always a chance, and right now, my beloved Cardinals are playing the best baseball I’ve seen in all my years… I was up very late last night, as I’m on the East Coast, and that means the game didn’t end until around 11 pm, and then silly me, I stayed up to watch the celebration… So… Im draggin’ the line a bit this morning! Edwin Starr greets me this morning with his song: Twenty Five Miles… “Twenty five miles from home girl, my feet are hurting mighty bad”…
Well, what can I say this morning that will provide solace for non-dollar investors? Don’t worry, about a thing, ‘cause every little thing is going to be alright… But I do believe that with the rising Treasury yields, that it could very well be a batten down the hatches time… Shoot Rudy, the stock market is even being sold to buy Treasuries these days… In actuality, Treasury yields are still negative when you calculate them with inflation… But look at it this way… In Japan, they have no inflation, and their yields are negative, so at least U.S. treasury yields are better than that!
So, yesterday, we saw the dollar get bought like funnel cakes at a State Fair, and anything that was considered anti-dollar got sold… Currencies, metals, bitcoin, and Oil… To follow up on something I talked about on Monday… Bitcoin is really feeling the heat, from the announcement by China that they were banning cryptocurrencies… The BBDXY rose 4 whole points to close the day at 1,159.93… Oil fell by almost $2’s… and Gold lost $15.90 on the day to close at $1,734.80, and Silver lost 17-cents to close the day at $22.54… From my view in the cheap seats, I would say that the boys in the band are still very active in pushing Gold lower… Hmmmm
It’s all about higher rates, and the markets are flying with blinders on… They’re refusing to see the chaos that could incur in Congress, with the $1.5 Trillion deficit spending bill now in peril… But then, when all this dollar buying begins to get reversed it’ll be just as ugly for dollar holders… I read yesterday that the final vote on the bill will has a deadline of Rocktober 18th… But… they’ll be lots of hemming and hawing about the bill from here on out.
In the overnight markets last night… The dollar buying just keeps going on and on… The BBDXY has risen to 1,162 in the overnight trading… Speaking of the BBDXY it’s about time for it to be recalculated, or recalibrated based on the trade numbers from the different countries, so we might see a move here that doesn’t correlate to dollar buying or selling…
Gold is in positive territory this morning, which is surprising given the rot on the vine in the other metals, Silver, Platinum and Palladium… Shoot Rudy, Palladium has fallen below $2,000! I guess all those catalytic converters are now safe, eh? Gold is up $7 in the early trading today, and Silver is down 20-cents… What on earth is in the minds of the price manipulators these days regarding Silver? They just keep pushing it down. Is there a price they are working toward?
The price manipulators have gotten to brazen with their engineered takedowns, that if they keep going like this, we will eventually see them announce their moves ahead of time… “Tomorrow we’re going to take Gold down by 5%,” or something like that… I kid, and attempt to bring some levity to these takedowns, but I do believe I fail miserably…
Ok.. onto other things… The RT.com reported the other day that, “International ratings agency Fitch has improved its forecast for Russia’s economic growth this year to 4.3% from the previously expected 3.7%, said Douglas Winslow, Director at Fitch Ratings.”
I keep telling everyone that the Russians won’t be brought down by the economic sanctions placed on them by the U.S. and Eurozone. And that the ruble is one of the few currencies in the world where you can still get some interest on a deposit. And that ivestors need to get over their USSR fear… The USSR is gone, and this is the new Russia.. So get over it and think seriously about buying some rubles!
Wanna know what two stocks Congress owns that will make your head spin? How about Pfizer, and Johnson and Johnson… No wonder the Gov’t keeps the fear factor going! I shake my head in disgust…
Do you want to hear something that’s what I consider to be funny? I received a note from LinkedIn that the Fed Reserve St. Louis is looking for an editor for their financial review… Now that’s funny! Those folks at the St.Louis Cartel would take one look at my resume and run for the hills! HAHAHAHAHA! I’ve got to make sure that my friend, the great Mogambo Guru hears about this… He’ll laugh until his stomach hurts!
The folks that bought EverBank, did the same thing… The CEO of the new bank was a former Cartel Head, and I do believe he read a few of my letters for due diligence, and decided that they wanted no part of me… And I was told I needed to retire… So, see I’ve experience the wrath of the Cartel previously…
OK… back to things that are worth reading about… Now hear this! A Cartel member doesn’t think the Cartel has done enough to spur higher inflation… I got this from Bloomberg.com and here’s the skinny from Cartel head Evans… “The U.S. central bank needs to keep monetary policy easy to raise the public’s inflation expectations even after the current bout of inflationary pressures from supply-chain disruptions fades, Federal Reserve Bank of Chicago President Charles Evans said.
“I do not think the supply-side-induced transitory surge in inflation we are seeing today will be enough to do the trick,” Evans said Monday in remarks prepared for a speech at the annual National Association for Business Economics conference in Arlington, Virginia. “I expect that we will need a period of sustained, monetary-policy-induced overshooting of 2% inflation to boost long-run inflation expectations enough to deliver on our mandated goals.”
Chuck again… OK, notice how he immediately throws the supply side disruptions for the inflation we have now… Notice he doesn’t mention andthing about the currency printing that the Cartel has been involved with… he must be young, because he did what all millennials do… find someone to blame the problem on, because it can never be their own problem!
And speaking of inflation / rising prices… in my hometown of St. Louis, Mo, they announced yesterday that the fee for parking meters is going up 50-cents and hour, which will bring the total per hour to $2… I know in some places that’s not much, but for us here in the Middle of the country, where we’re the last place you see rising prices, we’re seeing them…
And keeping in line with our successful programs (NOT!) of The War of Drugs, The War on Poverty, the War in Vietnam, the War in Afghanistan, the war on Covid, and any other wars our leaders threw trillions of dollars on , now the Gov’t is talking about fixing the food problem… What did President Reagan say were the scariest words to hear? “Hi, I’m from the government, and I’m here to help”… Heaven please help us!
The Housing data that I told you would show even higher home prices, the Case/ Shiller Home Price Index for July reported that home prices increased 19%… Ok, Mr. Evans, he of throwing supply-side disruptions under the bus, Who’s to blame for this new Housing Bubble we have going on? Could it be the Cartel who have kept interest rates near zero for so long? You had better believe it could be!
And the stupid Consumer Confidence fell this month from 115.2 to 109.3… That’s a HUGE downward movement in this data folks… But I would add that even though the index fell this month, it should have probably fallen more, given the chaos that’s about to be unleased on the country…
To recap… Everything under the Sun that wasn’t dollars, got sold yesterday… The currencies got whacked, the metals got whacked, Oil got wracked and so did Bitcoin… It was an ugly day for the anti-dollar investments… And from what I read the dollar buying was all about the higher yields in Treasuries… Chuck points out that these higher yields in Treasuries are still negative when accounting for inflation… And in the overnight markets the dollar buying continued… It’s a run-away train right now, folks, so get off the tracks!
For What It’s Worth… Well, it was bound to happen… Eventually people would wake up and realize that if it weren’t for the Cartel’s near zero interest rates, and all the stimmy checks, that the stock market they think represents the economy, was being manipulated… That’s what this article is about, and it can be found here: Is Stock Market Rigged? Insider Trading by Executives Is Pervasive, Critics Say – Bloomberg
Or, here’s your snippet: “Most Americans Today Believe the Stock Market Is Rigged, and They’re Right’ New research shows insider trading is everywhere. So far, no one seems to care.
In the U.S., an insider is defined as a senior executive, board member, or any shareholder who owns 10% or more of a company. There are about 82,000 of them, and every time they trade they’re required by law to file a disclosure, known as a Form 4, within two days. These filings can be viewed on the U.S. Securities and Exchange Commission’s website, but scores are added each day, and most don’t offer much insight. “You have to know where to look,” says TipRanks Chief Executive Officer Uri Gruenbaum. Directors typically receive a proportion of their compensation in stock options, giving them the right to buy shares at a set price before a certain date, so if an executive is simply exercising an expiring option, it probably doesn’t reveal a great deal about how he views the company’s prospects. Selling may not tell you much either, because there are all sorts of reasons an insider might want to cash out—to buy a boat, for instance. It’s when insiders use their own funds to buy stock on the open market that it’s most worth paying attention.
t’s not just those at the top of the rankings who constantly beat the market. Purchases made by U.S. executives outperformed the S&P 500 over the ensuing 12 months by an average of five percentage points between 2015 and 2020, according to a TipRanks analysis. The gap might seem scandalous to those with only a passing acquaintance with U.S. insider trading rules, which make it illegal for insiders to trade using material—or financially significant—nonpublic information. And yet on Wall Street it’s long been an open secret that insiders trade on what they know.”
Chuck again… And well, no one seems to care about this type of manipulation… I mean, look at the Cartel members that resigned because they were trading stocks based on inside knowledge of how the Cartel would implement monetary policy, will they be prosecuted? Hell no…
Market Prices 9/29/2021: American Style: A$ .7228, kiwi .6930, C$ .7878, euro 1.1643, sterling 1.3477, Swiss $1.0757, European Style: rand 15.0852, krone 8.7233, SEK 8.7573, forint 308.98, zloty 3.9786, koruna 21.8801, RUB 72.67, yen 111.42, sing 1.3535, HKD 7.7842, INR 74.21, China 6.4573, peso 20.54, BRL 5.4077, BBDXY 1,162.80, Dollar Index 93.88, Oil $74.87, 10-year 1.51%, Silver $22.34, Platinum $976.00, Palladium $1,980.00, Copper $4.17, and Gold… $1,742.70
That’s it for today… What a beautiful sunrise this morning, just like most days down here, except when the clouds block it out… it comes out of the ocean like an orange ball and the whole horizon is orange/ red… Simply beautiful… How about those Cardinals? 17 games in a row they’ve won, with 5 more to play… Shoot I suggest they go to the Wild Card playoff game with a 22 game winning streak! The Moody Blues takes us to the finish line today with their song: The Voice… And not the silly voice competition on TV… I hope you have a Wonderful Wednesday, and please Be Good To Yourself!
Chuck Butler