The Dollar’s Global Use Falls To 59.2%

Rocktober 5, 2021

* Currencies & metals see small rallies on Monday… 

* The overnight markets buy dollars….  

Good Day… And a Tom Terrific Tuesday to you! Another beautiful day here in S. Florida, and the ocean returned to its normal colors yesterday, very beautiful! Things have gone very nicely this time around, down here… You may recall that my summer vacation down here, was interrupted by a health problem… But nothing like that this time around, and my time here has been very relaxing… Just what I needed! I’ll be back here for the winter months later this year, and until then I’ll have to hope that the weather back north, doesn’t turn super cold too soon! Had dinner last night at one of my fave places down here: The Brass Ring B&G…  I’m greeted this morning by a very appropriate song… It’s a song by the Blue Jays ( a spinoff of the Moody Blues) titled: When You Wake Up… 

Ok, no long dissertation on tapering to start the day today, thank goodness I hear you saying!  The currencies  traded basically flat yesterday, with little movement upward against the dollar… But at least they didn’t lose ground, eh?  And Gold & Silver performed an amazing trick by reversing their early morning losses and turning them into gains! Gold’s reversal was $22 to leave it with a gain of $8.90 to close the day at $1,770.90, and Silver also reversed its early morning loss and gain 15-cents on the day to close at $22.78… 

A very nice reversal for Gold & Silver yesterday, and allowed them show gains for the last 3 consecutive trading days…  And as I said the currencies gained on the day, but the gains were minimal, with the BBDXY going from 1,161.01 in the morning to close the day at 1,159.38…  I think the initial effects of Congress kicking the can down the road, has now played out… And it will be up to the Congress or Fed/ Cabal/Cartel to give the currency traders any ideas on the next direction for the currencies and the dollar.

I would think that the reversal in Gold was fueled by the news from Reuters yesterday, “– India’s gold imports in September soared 658% from last year’s lower base as a correction in local prices to the lowest level in nearly six months prompted jewellers to step up purchases for the upcoming festive season, a government source said.”

That’s real physical Gold folks, not paper trades, not ETF’s.. real physical Gold!  Gold is putting up a fight against the paper traders, and while physical demand is good for physical Gold, the paper trades can amount to so much, that it’s difficult for physical demand to out weigh the paper trades’ effects on the price of Gold… But like I’ve always told you, dear reader…  if all Gold trades were done in physical form, it would defeat the price manipulators and their short paper trades…

In the overnight markets last night… There has been some dollar buying and the currencies and metals are both on the selling blocks as we start today. The Euro has fallen back below 1.16, and most currencies have taken on some water this morning… Gold is down $14.60 in the early trading, while Silver is down 19-cents…  No reason for any of this dollar buying, just a sentiment of the overnight traders. 

I do want to point out that the price of Oil has jumped higher once again and this morning it is trading with a $78 handle.. Who would have thought that with all the talk of a new Green Deal that the tried and true oil dirty fuel source, Oil, would be rallying like this?  But it is, and so that means there are a couple of currencies that are not getting sold this morning, and they are led by the Russian ruble, and followed by the Norwegian krone, and Brazilian real…   

Speaking of petrol currencies, one of the honorary members of the club is the British pound sterling… And the pound has really been on a run in recent weeks… And it appears that even when it gets caught up in the dollar buying, it recovers faster than any other currency, and that’s quite impressive to me. The U.K. is up to its eyeballs in debt, folks, but as we’ve seen with the dollar, traders are looking the other way at this point… but how much longer will they look away?  Ah, grasshopper, that’s the $64 question, isn’t it? 

Ok, following up on something I wrote about a couple of weeks ago, and that is the Fed/ Cabal/Cartel members buying stocks on insider information about monetary policy…  This from “the Fed said late Monday that its internal watchdog will review whether actions by “certain senior officials was in compliance with both the relevant ethics rules and the law.” 

“We welcome this review and will accept and take appropriate actions based on its findings,” the Fed said in a statement. 

The announcement came the same day Senator Elizabeth Warren called on the Securities and Exchange Commission to investigate whether the transactions violated insider trading rules. “

Chuck again… Oh sure, when the Big Dogs are threatened to be released on you, you change your stance and announce an internal investigation… I’m going on record here and say that the internal Investigation will admit to only minor transgressions and  the Fed/ Cabal/ Cartel members will walk away unscathed…  I’m just saying… 

This whole revelation has me madder than a wet hen… But all I can do is make sure you, dear reader, is informed on what these guys are doing, and cause them to lose what credibility they have left… 

I was reading Doug Casey’s International Man letter last night, and came across something he was talking about that makes abundant sense… He was talking about why mistakes that were made by governments centuries ago, are still being made today, so let’s pick up his thoughts on why this is, right here: “The reason, in two simple words, is “human nature.” Human nature remains the same throughout time. Two thousand years ago, governments were typically made up of egotistical, self-centred dictatorial types, who were far more concerned with their own power than in the general welfare of their people. Today, politics remains a magnet for such people. They therefore will revert to type when faced with the very same problems.”

Thanks Doug…  Hmmm… So that’s why, the dollar will go the way of the denarius, folks… I’m just saying… 

Ok, well browsing through the internet I found this article that talks about how the Dollar’s percent of holdings around the world continues to drop…  here’s the skinny: ‘The global share of US-dollar-denominated exchange reserves – these are financial assets such as US Treasury securities, US corporate bonds, US mortgage-backed securities, etc., held by foreign central banks – declined to 59.2% in the second quarter, according to the IMF’s Composition of Official Foreign Exchange Reserves (COFER) data released today.”

Chuck again… The entire article can be read at : US Dollar Status as Dominant “Global Reserve Currency” amid Reckless QE & Government Deficits | Wolf Street

I’ll point out that in 2014, the dollar’s holdings were at 66%…  So last month’s percentage of 59.2%, shows a gradual decline in holdings of the dollar…  I think this is the way the Gov’t would like to see the dollar gradually lose favor and thus lose value to invite inflation into the economy… OOPs, did I say that out loud? HA!

And this from regarding St. Louis Fed/ Cabal Cartel, President James Bullard talking about inflation, “Inflation measured by the Fed’s preferred index rose 3.6% in August excluding volatile food and energy prices. Bullard predicted that on that core basis, 2022 inflation would be 2.8%, well above the Fed’s 2% target.”

I was taught as a young man that if I didn’t have anything nice to say, to not say anything…  But c’mon, man… 2.8% inflation in 2022? I would like to know what tea leaves Bullard’s been reading, because, first of all inflation is really about 13%, as opposed to the 3.6% the Fed/ Cabal/ Cartel uses as their guideline.. .And with inflation rising just about every month this year, I can’t see it falling out of bed next year… So, Mr. Bullard, I say…. You’re so wrong, so just sit there in your wrongness and be wrong!

There’s nothing in the Data Cupboard that would move the markets today, folks… ISM Services would be the closest thing to a print that would move the market that there is on the docket today…  Yesterday’s Data Cupboard had the August Factory Orders and they increased 1.2%…  I’m not so sure about that print, folks… But them I’m suspicious of EVERY Gov’t data print these days… so take that with how ever many grains of salt you wish…

To recap… The currencies gained just a tad in yesterday’s trading while Gold & Silver performed amazing tricks to reverse their early morning losses into nice gains on the days, thus marking 3 consecutive days of gains for the metals. No tapering dissertation by Chuck today, but he does spend some time on deficit spending once again… But in the overnight markets the currencies & metals are getting sold… 

For What It’s Worth….  A former colleague of mine when I wrote for the Sovereign Society, Sean Hyman, who is also a fantastic technician in the markets, sent me this link about a guy that has filed a suit against JP Morgan… And I bet you can guess what for! The article can be found here: Florida miner’s lawsuit accuses JPMorgan of manipulating silver prices | Reuters

Or, here’s your snippet: LONDON, Oct 1 (Reuters) – A Florida-based silver miner has filed a damages claim against JPMorgan, accusing the bank of manipulating the silver market to push prices so low the company’s mine had to close.

The complaint, filed on Tuesday in the U.S. District Court for the Southern District of Florida, said Hidalgo Mining Corp raised $10.35 million from investors to finance a silver mine in Mexico that began production around 2012 and stopped in 2014.

Silver prices averaged around $31 an ounce in 2012 and $19 an ounce in 2014.

JPMorgan declined to comment.

Hidalgo’s claim, seen by Reuters, uses as evidence information from an investigation by U.S. regulators which found that JPMorgan staff between 2008 and 2016 sent fake buy and sell orders into metals and Treasuries markets to move prices in their favor.

Traders say this technique, known as spoofing, is a short term trading tactic rather than a means of long-term price suppression.

JPMorgan last year agreed to pay more than $920 million to settle the investigation.

The bank also paid $15.7 million last week to settle a class action lawsuit brought by investors who said the manipulation had caused them losses. read more “

Chuck again…  Yes, yes, spoofing is bad, but for once I would like to have the gov’t file a suit against for price manipulation using short paper trades… But that won’t happen because… As I’ve told you before the Gov’t is behind the curtain when it comes to price manipulation!

Market Prices 10/5/2021: American Style: A$ 7268,  kiwi .6963, C$ .7935, euro 1.1592, sterling 1.3622, Swiss $1.0734, European Style: rand 15.0080, krone 8.5629, SEK 8.7409, forint 308.39,  zloty 3.9756,  koruna 21.8424, RUB 72.66, yen 111.23, sing 1.3577, HKD 7.7845, INR 74.47, China 6.4452, peso 20.55, BRL 5.3995, BBDXY 1,161.77, Dollar Index 93.94,  Oil $78.04, 10-year 1.50%, Silver $22.59, Platinum $962.00, Palladium $1,990.00, Copper $4.16, and Gold… $1,755.30

That’s it for today… No baseball last night… no hockey… the only thing sports-wise I would watch was Monday Night Football, and like I’ve said before, the NFL turned me off a couple of years ago, and I still don’t pay much attention to their games… Last year, I began to read books by Stuart Woods, and his Stone Barrington series… Last week I went to buy a couple more and found out that there are 61  books in this series!  WOW!  I’ve read about a dozen of them, but I doubt I’ll ever get through 61 of them, nor will my wallet be happy about me buying 50 or more of this series! I’ve already pre-ordered two of my fave books to read: Harry Bosch, and Jack Reacher… they’ll come out in November… Things will be pretty interesting as the month goes on folks, so be ready to pounce on buying opportunities… The Spinners take us to the finish line today with their song: Making My Way Back To You…  With a burning love inside…  I hope you have a Tom Terrific Tuesday today, and please Be Good To Yourself!

Chuck Butler