- Currencies all look heathier!
- Norway makes a HUGE announcement…
Good Day… And a Wonderful Wednesday to you! Well, I’m back and so are you! I hope your Labor Day Holiday was grand… And I didn’t even BBQ! and Alex and Grace were here with my new grandson, so it was grand for me! My good friend, Duane, cooked up some pork Cluckers and they were yummy! I have a change for the Pfennig that will begin today… The We Five greet me this morning with their song: You Were On My Mind…
As you are aware, I was taken in to write the Pfennig for Battle Bank last year… And with that save by them, I asked for ads to be placed in the Pfennig each day… So, they finally said yes, and wrote a couple for me to rotate… And so… here’s today’s ad…
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OK, with that out of the way, The dollar is in trouble folks… I think everyone. Except Bessent, POTUS, and a few others with blinders on, are finally seeing that Bessent sent the dollar to the woodshed with his last two announcements. Of which I’ve previously written about, but in case you missed class that day… First was the 10 billion worth of euros sold to intervene and help the Japanese. (But after further review, I reported that it wasn’t to help the Japanese, it was to help the U.S. from seeing the Bank of Japan from selling their Treasuries horde, to protect the yen themselves… )
The other item as when Bessent announced that QE was back (Ok, he didn’t really say QE was back, but that’s what it was, and he said that the Fed Heads would “double down” buying 10&30 year Treasuries) This was done to keep yields on the these bonds keep going higher…
Of course, I’ve been telling you all about the Fed Heads’ “yield control” operations, now they admit they’ve been doing it, AND, they will double down on the buying…
So, now we have these two announcements to point to as to why the dollar is diving… Because other countries that hold Treasuries, and dollars heard these announcements and decided that they were going to reduce their risk to these assets, because… The risk is becoming just too large1
The BBDXY ended trading on Friday last week at 1,190, and looking like it’s ready to go lower… And it has, overnight the markets took it down to start the day at 1,186…
The Jobs Jamboree for August printed last Friday, and the BLS cooked the books to show a gain of 162,000 jobs… Well, looking under he hood, we see that 74,000 jobs from thin air were created by the BLS and added to the surveys… AND… think about this for a moment, what month do Teachers go back to work? August, did anyone think that over 40,000 Teachers came back on the payrolls?
So, in my mind, only 40 something jobs were actually added in August… 162-74-40… go ahead and prove to me that 162,000 REAL JOBS were added in August! Because I’ll point out the hundreds of thousands of jobs taken away when the BLS finally gets around to revising the reports…
So, all the talk about the strong Labor Report and how this would lead to a rate hike this month… is built on a house of cards… And those cards are about to come crumbling down…
Gold/ Silver couldn’t get past the SPTs on Thursday and Friday last week, and the two ended the week on a down note… Ed Steer tells us that on Friday, Gold was up over $60 only to see the SPTs Take it down to end the week down to $4,429… And Silver couldn’t do anything better, as it ended the week at $66.34, which was $1.44 off its intraday high…
Yesterday, while I was having my head examined, and got word that my Mohs surgery will be this Friday, the dollar lost more ground… and one of the reasons I believe this is that yields on Treasuries keep rising, the dollar is fading… The yields on Treasuries rising aren’t a “growth reason”, it’s a “risk” problem right now, and the dollar is in the middle of it…
Gold/ Silver did not get a chance to get out of the gates on the right foot yesterday, as the SPTs took their usual pound of flesh from the two… Gold lost $ 74.00, to end the day at $4, 357, Silver lost $ 66-cents to end the day at $65.88….So, all in all, the dollar is in trouble, and only a rate hike will save it from falling off a cliff… The risk of owning just dollar denominated investments is just too high for me right now, and you should be thinking of that too!
The price of Oil rose to a $94 handle… And I want you to think about Oil for a minute… This is the global price stated, but it’s before it goes to the refinery to changed to gas, diesel, jet fuel etc. And that would be the price that you pay at the pump, after the gas Co.’s markup… No wonder gas is over $4 right now… And the 10-year Treasury, stopped the chipping off of its yield that was going on last week and headed higher to end the day yesterday with a 4.79% yield…
In my mind, we should have been hiking rates months ago, instead of cutting them…. So, maybe, just maybe, because you never know (Andujar) The rate hike will be shrugged off by the markets because the Fed Heads are behind the inflation 8 ball… I’m just saying…
Be sure, you noticed that I said “maybe”… I don’t want 100’s of emails telling me I was wrong when IF the dollar responds favorably to the rate hike… That is IF the Fed Heads do actually hike rates…
Well, this morning I have to get ready to go see my oncologist, she wants to make sure that I’m not dehydrated any longer, and sick… of which I am not! SICK IN THE HEAD, BUT NOT PHYSICALLY SICK! The appt is in the middle of the morning, so I had time, as long as I woke up at “dark thirty” and wrote to you before leaving…
Circling the wagons on a potential Rate hike this month… I read yesterday that Jim Rickards is calling for no rate hike until 12/9… By then, the dollar should be well intrenched in its weak trend, and to stop it will take a Hurculean effort by Kevin Warsh and the Fed Heads…
Of course, Warsh could look to settle down the bond yields, but implenting Quantitative Easing again… But, as Dave Gonigam of 5 Bullets tells me, Warsh was on board the Fed / Cabal /Cartel when the 1st round of QE went off, but then his stomach turned on the next two phases of QE and re resigned his post at the Fed/ Cabal/ Cartel… and John Mauldin once told me in Vancouver years ago that he sat in on a meeting of Congressmen who said that those words, Quantitative Easing, will never be spoken again… But, we all know that they just changed the phrase to now call it “yield control”… What? They think we’re stupid and won’t figure it out, I think!
My friend, Rich Chekan of ASI, wrote an article a couple of days ago, that I found something that I think will interest you quite a bit… “To Every Thing There Is a Season…
… and a time to every purpose under the Heaven.” (Ecclesiastes 3:1-8)
The time from fall through winter, for gold, is the time for higher prices.
Of course, there are no guarantees that this will be the case this year, but that is historically the pattern.
Jewelers are buying to make the trinkets consumers buy for wedding season, the traditional holiday season, and for new year’s celebrations.
Investors are back from vacation and once again paying attention to their investments… to include gold.
As a result, the high price for gold for any given year is typically hit between September and February. By typically, I mean 80% of the time”
So, even if Secretary Bessent did not shock gold and silver prices higher over the past month, they were bound to start their ascent anyway. He just got them moving a little sooner than usual”
Chuck Again… yes, the time for Gold is upon us… Think back to last winter, Gold rose nearly every day, without interruptions from the SPTs to go above $5,589… So, what are you waiting for? Oh, I know, you’re waiting for the next leg down in Gold aren’t you? Well, in my humble opinion, one that doesn’t wear gold hued glasses, the next leg down isn’t coming… So, buck up buddy, and look to get some Gold or Silver before the price gets away from you again… My humble opinion, can always be wrong… I’m just saying… But, in my history, it has usually led me right… So, there’s that!
In the currencies, the euro closed last Friday at 1.1614, and its up even more this morning, but don’t peek ahead at the currency roundup… And in the FWIW Section this morning, you’ll see why I’m commenting on the Norwegian krone… The krone is inching ever so nearer to an 8 figure, and it will get there as long as the price of Oil remains high, and the euro continues its march higher…
Oil is raging higher this morning,as it trades at $94.34, and the 10-year’s yield got marked higher to 4.80% to start our day… So… there you go!
The U.S. Data Cupboard only has Consumer Credit (read debt) for us the next two days, so the dollar is on its own, with a little help from its friends (Beatles) You know, yield control, and false rhetoric… The Consumer Credit rose from 14.2 Billion to 18.1 Billion in July… Yikes! What are these people thinking of? Buying on credit, when credit markets are looking petty iffy right now? Of course! School’s back so student loans were up… I close my eyes, and think, “Dear Lord, please help us to figure this all out before it come crashing down all around us”… The bulk of the spike upward was caused by a whopping credit card useage, as the consumers added $2.8 Billion to their credit cards, pushing credit card debt to $1.357 Trillion! I shake my head and wonder what was so darn important that they had to buy…..????
To recap… this is the time, the place, and the setting where Gold /Silver take off, well, maybe after the rate hike if there is one… The dollar is in trouble, and U.S. Treasury Sec. Bessent has caused the new damage to the green/peachback… and to think, he’s supposed to be the “Big Protector” of the dollar… Remember when Robert Rubin was Treasury Sec. And he would daily preach that The U.S. dollar was strong? Well, if you don’t recall him, that’s OK, that’s what I’m here for! But it was during the Clinton administration, and we, as a county, except those in Arkansas, have forgotten about him…
For What It’s Worth… Well, this is HUGE news and bad for the dollar and Treasuries… it’s an article that explains what the Norwegian Wealth Fund has announced and it can be found here: World’s biggest sovereign wealth fund plans to cut Treasury holdings
Or, here’s your snippet: “Norway’s sovereign wealth fund has proposed cutting the allocation of government bonds in its $2.3 trillion investment portfolio, chiefly affecting its holdings of U.S. Treasurys, as it seeks to diversify its risk exposure and boost returns.
The heads of Norges Bank Investment Management wrote in a letter to the country’s Finance Ministry, made public Friday, that it recommended reducing the government subindex of its bond holdings from 70% to 50% — a level it said would provide sufficient liquidity during market turbulence while allowing it to seek greater returns elsewhere.
The proposed reallocation would gradually cut NBIM’s Treasury holdings from 34.1% to 21.9%, reduce its euro area holdings from 16.8% to 14.1%, and increase its share of Japanese government bonds to 7.4% from 4.6%.
NBIM also wants to begin weighting its government bond holdings by market value instead of gross domestic product because of the high debt loads of almost all developed economies.”
Chuck Again… Hey, these are very intelligent folks at the Norwegian Wealth Fund… and to think they made this decision willy-nilly, you’d be dead wrong… The risk they hold right now, is in Treasuries and dollars, and I commend them for addressing these risks….
Market Prices 9/9/2026: American Style: A$.7221, kiwi .5845, C$ .7257, euro 1.1633. Sterling 1.3546, Swiss $1.2351, European Style: rand 16.0429. Krone 9.2143, SEK 9.5844, forint 312.92, zloty 3.7104, koruna 20.5291, RUB 85.53, yen 153.29, sing 1.2645, HKD 7.8421, INR 95.49, China 6.7038, peso 16,89. BRL 5.0861, BBDXY 1,186. Dollar Index 99.05, Oil $94.34, 10-year 4.80%, Silver $66.68, Platinum $1,858.00, Palladium $1,376.00, Copper $6.76, and Gold… $4,399
That’s it for today… What a first week in college football, there were games on Friday, Saturday, Sunday and Monday night! Have you seen the NFL commercial that’s a take-off of the Camel saying Mike, Mike, Mike what day I it? I cracked up laughing, because we used to say that to Mike Meyer when he arrived for work on Wednesdays…. This coming Friday night, my beloved Mizzou Tigers travel to Lawrence KS to play the Jayhawks of KU… This is a HUGE rivalry game that goes back to the war between Kansas and Missouri… So, I’ll be nervous all day on Friday… Tommy James & The Shondells take us to the finish line this morning with their great song: Crystal Blue Persuasion… I hope you have a Wonderful Wednesday today, and Please Be Good To Yourself!
Chuck Butler