- currencies drift on Tuesday, while Gold sees short selling…
- What has Jay Powell said now?
Good Day… And a Wonderful Wednesday to you! Another late game last night… I know that to live on the West Coast, these games start at normal time, but here in the Midwest, where the Cardinals fans want to see their team play, they come on at late times for us that have to get up early the next day… UGH! My beloved Cardinals come back to the Midwest after the next game in S.F. And finish with playing the Cubs… I made an egregious error yesterday when I said that my Mizzou Tigers will play Boston College this Saturday… That was wrong… They will play UMass… UGH! I hate it when I make errors! Aliota, Haynes, Jeremiah greet me this morning with their classic rock song: Lakeshore Drive…
Well, the dollar didn’t move much yesterday and ended the day with the BBDXY at 1,195… Same level it’s been since last Friday… But the euro traded above the 1.18 handle yesterday, as this waiting for the dollar to make its next downward move became too long of a wait for the dollar/ euro traders… I made too much of deal out of Gold & Silver trading on their own devices, void of SPT’s, that I must have woke the SPTs up as they went after Gold, as it neared $3,800… Gold was sold yesterday after Gold had rallied by $38… And they brought Gold’s price down to $3,765, which happened to be a gain from the previous close of $3,748…
Silver saw the SPT’s also, and its gain on the day was watered down… Silver closed the day at $44.10, down 2-cents on the day… The wolf is always at the door, and even when they leave Gold & Silver to trade on their own devices for 2 trading days, they came back with a boat load of short paper trades, just remind us all that they are always there…
The price of Oil moved higher in the $63 handle yesterday… And the 10-year Treasury saw some additional Fed Head manipulation and it’s yield back off to 4.11%.. This is a big tug-o-war between the bond boys and the Fed Heads… In the end, I would think the bond boys would win, but that’s just me thinking back to my days as a bond trader…
In the overnight markets last night… Well, the dollar rallied overnight, the BBDXY starts today at 1,200… That’s up 5 index points overnight, and that’s a BIG gain for the dollar, which I’m sure rallied on the news from Fed/ Cabal/ Cartel Chairman, Jay Powell, who told the markets yesterday that the FOMC will have to be very careful about further rate cuts… That indicated to the markets that this latest rate cut just might be a one and done… And that has the dollar bugs crawling out of the wall boards and dancing on the kitchen tile…
The euro fell back below the 1.18 figure, and the currencies that looked so healthy yesterday, and heading back to their respective sick beds…
Gold is up $5 to start our day today, and Silver is flat as a pancake (Head East)… The SPTs really did a number on these two metals yesterday, so I’m sure it with trepidation that Gold Bugs dip their toes back into the waters that are infested with the dirty dog, SPTs…
The price of Oil has bumped higher to a $64 handle this morning, and the 10-year Treasury starts the day at 4.13% yield…
Yesterday, I took it out on the Fed/ Cabal/ Cartel and their lack of credibility… Here’s another thing that came to mind later in the day…. Powell said the Fed expects to cut two more times this year, but added the Fed is continuing to sell off some of the bonds it owns on its balance sheet. Quantitative Easing (QE) is when the Fed buys bonds, essentially putting more money into the system. Quantitative Tightening (QT) is when the Fed sells bonds, which technically puts upward pressure on interest rates and withdraws money from the system. So, which one is the Fed Heads doing right now? We’ve seen them in buying bonds to keep the yields from rising… But they say they are selling bonds… What a conundrum…
And regarding our debt… I’ve talked about the Unfunded Liabilities in the past, but now is a good time to revisit them… I’ve seen the total of Unfunded Liabilities (UL’s) range from $70 Trillion to $200 Trillion… It all depends on what items you want to add to the calc. I personally prefer to take the higher number, because, well, because that’s probably nearer to the truth than the lower number… Social Security and Medicare are the 200lb Gorillas in the room, and the payroll taxes to fund these two have not been near sufficient to fully fund them… And remember when I used to tell you that 10,000 baby boomers will retire every day for the next 10 years? Well, that’s still happening… And they want their Social Security payments that they made through the years of working…
What’s the country going to do? not pay them.? that would be political suicide… And we all know that politicians need to feel loved, and re-elected! For how will they amass their large sums of money back home doing nothing?
Here’s the real problem for the U.S. going forward… To fund these programs, the programs will have to be either changed, or… They could take the easy way out, and print money to fund them… I shudder thinking about the amount of dollars that would have to be printed to fully fund these programs… Spoiler alert… Social Security is short $22 Trillion, right now, and Medicare is short $50 Trillion, right now… YIKES!
In Grant Williams latest letter: Things That Make You Go Hmmm… he says that all this money printing and rising debt is pushing the U.S. toward a “doom loop”… Uh-Oh… Grant also reminds us that “the bond market can be forgiving until it isn’t… And if the revolt does come, it won’t be because of politics or geopolitics. It will be because of math. Cold, hard, relentless math.”
The math doesn’t work now, but everyone doesn’t realize it… yet… The Empire is collapsing…
And to that end, this from YAHOO Finance: “Federal Reserve Chair Jerome Powell said there is “no risk-free path” for the central bank’s next policy move as inflation remains elevated and the job market weakens.
It’s “a challenging situation,” Powell said during a speech in Rhode Island on Tuesday, reiterating that the Fed must balance its dual goals of maximum employment and price stability.”
Chuck again… yes, it IS A Challenging Situation, Jay… But that’s what they have you there to do, tackle them… But in my opinion, you just whiffed at the running back through the hole and he’s on his way to the end zone…
So, we as a country are in a “doom loop”, we don’t have the math to grow anything but more debt, and the Central Bank is in a challenging position… Would you buy stock in this company? I ask that, because I’ve always said that a currency is the “stock of the country issuing it”… I wouldn’t touch that stock with your ten-foot pole! And neither should you, but I can’t stop you from buying dollars, all I can do is issue warnings and hope you get the message…
I know, I know, I’m beginning to sound like the new Mr. Gloom and Doom… I really wish I didn’t have to be the bearer of bad news… I would rather be the happy-go-lucky guy that doesn’t seem to have a care in the world… I would get invited to parties, and be the life of the event… But that’s not to be… I am saddled with being the new Mr. Gloom and Doom… Oh well, I think I portray the role very nicely…
So, let me tell you a story… about currency trends… I told you yesterday in that video that I shared from 13 years ago, that I truly believe in currency trends… A weak dollar trend, is followed by a strong dollar trend, and so on, and each trend starts with a fundamental reason, and doesn’t end until that fundamental reason is reversed or well on the way to reversal… The strong dollar trend has been in place since 2013 or 14… depending on when you want to actually say the dollar has reversed the trend… So, for 11 years the strong dollar trend has ruled the roost… And for 11 years, I’ve switched from writing about currencies every single day to writing more about Gold & Silver and currencies on the side…
But the strong dollar trend is reversing now… Mark your calendars, for Summer 2025, as when the weak dollar trend began… So, get set in the saddle because this is going to be wild ride… The U.S. Gov’t has no option but to allow the dollar to weaken significantly, to allow inflation into the economy and inflate the debts lower… Want proof that the strong dollar trend is abating? On June 5th, the BBDXY traded at 1,211… The BBDXY closed yesterday at 1,195… That’s a BIG move folks… and yes, it took it all summer to get lower, but as I told you the other day, the currency trends will take longer to play out with all the shenanigans that the currency traders are now playing…
So, are you ready? Have you diversified your investment portfolio to include currencies and metals? You do realize don’t you, that by doing that you reduce the overall risk of your investment portfolio? That’s a fact, Jack! If you don’t believe me, look up Harry Markowitz… and check out his modern portfolio theory… I’m just saying…
The U.S. Data Cupboard yesterday didn’t have any real economic data for us, and neither does today… So the Data Cupboard is a BIG Zero. Tomorrow’s Data Cupboard will be HUGE, with the Weekly Initial Jobless Claims, the 3rd revision of 2nd QTR GDP, Industriial Production, and the first look at the Trade Deficit for Aug…
And this is where I remind you that there will be no Pfennig tomorrow, as I will be going to see my oncologiist, bright and early Thursday morning… You have been warned… or better yet, you have been give a day away from me!
To Recap… The dollar drifted again yesterday, and ended the day with the BBDXY at 1,195… Same closing level as Friday, and Monday… Chuck reminds us that that the dollar’s downfall will be slow to move… But the underlying weak trend for the dollar is in place now, are you diversified? And Chuck proclaims himself to be the new Mr. Gloom and Doom…
For What It’s Worth… The good folks at GATA sent me this and in it the article explains that China is aware of the price manipulation of the U.S in Gold, and it can and the article is on the GATA site, so unless you are a subscriber to GATA, you can’t read it all… But not to worry, I have it for you here:
Or, here’s your snippet: “As early as 2010, U.S. embassy cables released by WikiLeaks revealed that Chinese state-controlled media outlets had been reporting on gold market rigging by the U.S. for years.
Central bank intelligence: The Bank of Russia, which has coordinated with China on financial matters, has also long been aware of Western gold price suppression policies. This awareness was revealed in a speech by a Bank of Russia deputy chairman who mentioned the work of the Gold Anti-Trust Action Committee (GATA), an organization dedicated to exposing market manipulation.
Suspicious market patterns: Observers have noted that gold market anomalies, such as significant short-selling of paper gold contracts on Western exchanges, do not align with supply-and-demand fundamentals. This suggests that prices are being suppressed.
China’s strategic response
Rather than confronting this manipulation directly, China has been implementing a long-term strategy involving several key moves:
Aggressive gold accumulation: The People’s Bank of China (PBoC) has been a leading buyer of gold for years, rapidly increasing its reserves. Since 2022, a significant portion of these purchases have been unreported in official International Monetary Fund (IMF) statistics.
De-dollarization: China is actively reducing its reliance on the U.S. dollar, particularly since the freezing of Russian foreign reserves in 2022. It is shedding U.S. Treasury holdings and encouraging its trading partners to settle transactions in local currencies, with gold often used as an implicit monetary anchor.”
Chuck again… Well, bust my buttons, I was not aware that China was onto our Manipulation of Gold… See? You learn something new ever day!
Market Prices 9/24/2025; American Style: A$ .6602, kiwi .5834, C% .7207. Euro 1.1748, sterling 1.3458, Swiss $1.2583, European Style: rand 17.3149, krone 9.9439, SEK 9.3872, forint 333.17, zloty 3.6309, koruna 20.6838, RUB 83.73, yen 148.49, sing 1.2874, HKD 7.7773, INR 88.69, China 7.1274, peso 18.40, BRL 5.2823, BBDXY 1,200, Dollar Index 97.75, OIl $64.12, 10-year 4.13%, Silver $44.07, Platinum $1,470.00, Palladium $1,236.00, Copper $4.60, and Gold… $3,770
That’s if for today and this week… Like I said yesterday, I’m somewhat concerned about my reaction to the chemo infusion I’ll receive tomorrow… If I have another adverse reaction to it, then the game is over for me… Because this is the last Chance Saloon… I guess I’ll have to suck it up, and deal with it if it hits me like it did two months ago… But that’ll mean I don’t write every day… Because last time, I was so sick that I couldn’t get out of my chair! I lost major weight, and was below 200lbs for the first time since I was in High School! So, no more of that! Not that I didn’t mind losing weight, but losing it that fast wasn’t healthy… Ok… enough of my whining and crying… The Killers takes us to the finish line this morning with their song: Somebody Told Me… I Hope you have a Wonderful Wednesday today, and Please Be Good To Yourself!
Chuck Butler