The Dollar Looks Tired, and Worn Out…

May 10, 2023

* currencies & metals see small rallies overnight

* Now, What’s Chuck saying? You won’t want to miss this! 

Good Day… And a Wonderful Wednesday to you! Well, my beloved Cardinals made it 3 in a row last night, it wasn’t easy, as our pitcher tried to give the game away several times before finally being pulled… The Cardinals hit 3 home runs last night, all with the bases empty… They had men on base nearly every inning, but not when the home runs were hit! UGH!  Another Chamber of Commerce day here in my little river town, it was warm.. not hot, just warm, and just how I love it! We need a rainy day here in my region, as the ground is quite dry… I did my part, with a raind dance out in the back yard last night, of course when no one was looking! The Moody Blues greet me this morning, with their song, that we used to play in the band I was in: Never Comes The Day…  
I have to hope that never comes the day that we see folding money disappear… But, I’m afraid, that’s a done deal, unless someone unseats the current POTUS and deep sixes the stupid idea…  Ok, Chuck let’s not start today walking on the fine line of Politics… 
The dollar was up 2 index points in the BBDXY yesterday, nothing to write home about, but up, when I would think that by now most traders are on board with the thought that the Fed Heads rate hikes are nearly over…  But then, the currencies don’t trade on fundamentals any longer, it’s all about trader sentiment, and until that trader sentiment is truly on board to sell dollars… The dollar will hang around… 
Gold was up $13 yesterday, and has gone higher just about every day this month, sans the day the short paoer traders saw to it that Gold took a whacking… Central Bank buying of physical Gold is off the charts folks… And the report I read yesterday was that a majority of their buying was done in secret… You know why they are buying physcial Gold right? They see what’s going on in the world, and are scaredy cats…  And you know why they want some of their buying to be secret, right?  They don’t want to p-off the Fed, and the U.S. Gov’t, and their precious dollar.. But the cat is out of the bag, and now everyone that wants to know, knows that Central Bank buying is off the charts, and should tell you that you too should be following their example, for if they are this scared, you should darn well be too! 
Silver actually found a bid yesterday, and gained 4-cents… It’s been one rainy day after another rainy day for Silver in recent trading sessions… I saw an interview with an associate, Rick Rule, yesterday, and he talked about how Silver, right or wrong, is a speculative metal… That it’s so volatile, but when it rallies, it out performs Gold on a percentage basis… During the commodity bull market that ran from 2000 to 2014, just short of the average 17 years that historically commodity bull runs lasted, Silver outperformed Gold on a percentage basis  10 of those 14 years…  So, what I’m trying to say here is that you should look to buy Silver when it’s being sold daily, like recently, and then hold in your speculative portion of your investment portfolio… 
The price of Oil remained trading with a $73 handle yesterday, and the 10-year saw its yield rise to 3.50%… 

In the overnight markets last night…  The dollar was on the selling block, but there weren’t many takers, and the BBDXY lost about 1/2- index point overnight… Gold is up $5 to start the day, but Silver is down 4-cents… The dollar continues to hang on, but in my mind (Lord save us!) I see this as a prelude to a long term weak dollar trend… There’s just too many bad things mounting up against dollar strength…  Here’s one that I think is going to end up being a BID DEAL for the U.S. economy and the dollar’s future… “Some economists have noted that traditionally the quarterly Senior Loan Officer Survey is not a major report that is highly followed. However, many have been waiting for this report to gauge how badly the banking crisis has impacted the banking sector.

The sting of Monday’s report was diminished slightly as Federal Reserve Chair Jerome Powell quoted the report’s view of tightening credit markets in his press conference after the central bank raised interest rates by 25 basis points and shifted its monetary policy to a more neutral stance.
According to the survey, “Survey respondents reported, on balance, tighter standards and weaker demand for commercial and industrial (C&I) loans to large and middle-market firms as well as small firms over the first quarter. Meanwhile, banks reported tighter standards and weaker demand for all commercial real estate (CRE) loan categories.”

Looking ahead, the survey also shows that banking officials expect to see a challenging year ahead.”

Chuck again, I found that on… The writer also believes that this new development is going to be good for Gold, and I agree… 
There’s not alot going on today, so far… well, the Trump court decision came through yesterday, that’s been taking up a lot of news time lately… The talk of the $1 Trillion Platinum Coin is getting a lot of talk, but they are all barking at the wrong tree here… This won’t work, unless they can convince the masses of people that they have the Platinum to back up the coin… And they don’t, as I showed you yesterday… Just saying…
So, with not much going on, let’s head to the Big Finish and call it a day, eh? Short-n-Sweet! 
The U.S. Data Cupboard has been lacking any real data to start the week, and as far as I’m concerned it will remain lacking real economic data today… However the markets still get giddy about the stupid CPI, and so that’s what’s on the agenda today, the stupid CPI…  The report will be for April, and is expected to show a .1% gain in inflation month to month… The annualized CPI will be around 5.0%, and that’s a crock of….  There’s no way on earth that inflation is this country is only 5%!   I’ll be checing on John Williams’ calc of inflation at I’m sure his number is bang on! 
To recap… The dollar is still hanging on and is begining to look very tired, and worn out… That’s why Chuck came out with his view this morning that he believes the dollar is getting ready to enter into a long term weak trend… There! He said it! So, what will you do about that?   In 2001, when Chuck wrote the white paper titled: The Decline of the Dollar, he was laughed at, and ridiculed… And then in 2002, what happened? The dollar began a long term weak trend that lasted 10 years!  No white paper from me this time, as I’ve chronicled all the things brining the dollar to its knees in this fine piece of financial journalism… The Pfennig!   HA! As If! 
For What It’s Worth… This is another article about the U.S. Gold holdings, and what could be done to help the debt problem, but wont’t be the end-all for our debt problems that’s for sure! And it can be found here: “Weird Gold Trick” Could End Debt Ceiling Showdown – The Daily Reckoning

Or, here’s your snippet: “Right now, the Fed’s gold certificate values gold at $42.22 an ounce. That’s obviously not anywhere near the market price of gold, which, again, is about $2,042 an ounce.

Now, the Treasury could issue the Fed a new gold certificate valuing the 8,000 tons of Treasury gold at $2,042 an ounce. They could take today’s market price of $2,042, subtract the official $42.22 price and multiply the difference by 8,000 tons.
I’ve done the math, and that number exceeds $500 billion.
In other words, the Treasury could issue the Fed a gold certificate for the 8,000 tons in Fort Knox at $2,042 an ounce and tell the Fed, “Give us the difference over $42 an ounce.”
The Treasury would have over $500 billion out of thin air with no debt. It would not add to the debt because the Treasury already has the gold. It’s just taking an asset and marking it to market.
It’s not a fantasy. It was done twice. It was done in 1934 and it was done again in 1953 by the Eisenhower administration. It could be done again. It doesn’t require legislation.

Would the government consider the gold trick I just described? All I can say is don’t count on it.


You shouldn’t expect it to happen because no one in power wants to recognize the role of gold as a monetary asset. They don’t want anyone to even talk about gold, except as a “barbarous relic” that belongs in the dustbin of history.”
Chuck again… Yes, that’s the reason, just like the Gov’t is behind the price manipulators, keeping the public in the dark about the reason they should own Gold… The dollar’s intrinsic value is zero… 
Market Prices 5/10/2023: American Style: A$ .6751, kiwi .6327, C$ .7471, euro 1.0949, sterling 1.2667, Swiss $1.1217, European Style: rand 18.7562, krone 10.5571, SEK 10.2280, forint 338.99, zloty 4.1407, koruna 21.3707, RUB 76.11, yen 135.27, sing 1.3278, HKD 7.8311, INR 82.01, China 6.9243, peso 17.72, BRL 4.9877,  BBDXY 1,221.44, Dollar Index 101.74, Oil $72.87, 10-year 3.50%, Silver $25.59, Platinum $1,050.00, Palladium $1,425.00, Copper $3.83, and  Gold… $2,050.32
That’s it for today… Another sleepless night in my river town for yours truly… I guess I’m going to have to find a nerve specialist and find out more about neuropathy… I made it through the night without any problems from the new chemo, so that was good… But one night doesn’t make a pattern… just saying…  Paul McCartney takes us to the finish line today with his song: Every Night… (one of Paul’s solo best, in my opinion) I hope you have a Wonderful Wednesday today, and please Be Good To Yourslelf!

Chuck Butler