What The Heck Happened?

December 1, 2021

* Currencies & metals’ rallies get reversed on Tuesday

* Powell throws a cat among the pigeons!

Good Day… And a Wonderful Wednesday to you!… And Welcome to December! It was another game last night where the Blues couldn’t be watched anywhere unless you have ESPN+, or HULU, and since I don’t like to pay for extra stations, I had to settle for listening to the game on the radio… Our Blues won the game 4-3 in a shootout, which I’ll say yet again, is the stupidest way to settle the outcome of a game… I read my latest book, and listened to the game… I was looking for someone to console me after the goings on in the markets yesterday… We’ll get to that in a moment, but first the The David Ian Trio greets me this morning with their version of : We Three Kings…

What the h… happened yesterday?  After hitting send yesterday, I watched Gold climb the ladder to a gain of more than $24 on the day… And then… the spring trap was sprung and Gold ended up down $9.70!    That’s a more than $33 turnaround! Now, don’t even begin to tell me that this wasn’t a case of price manipulation…  How can Gold be the cat’s meow one minute and the next minute be the cat’s litter box, without price manipulation…  Sure there could have been profit taking by short term traders but not to the tune of a $33 turnaround!  No sireee Bob! Can’t happen like that, no way, that dog is not gonna hunt!

And the dollar turned around too.. .at one point yesterday morning the BBDXY was down 8 points! But ended the day still down on the day, but not by much… So, the PPT was in throwing the ESF’s treasure chest of funds, around too… This was a day for the ages folks… the price manipulation of the metals and the dollar were beyond comprehension… I sat there last night, after turning the computer to see how high Gold got, only to be flabbergasted at what I was seeing, and said to myself, “I just don’t think I can take much more of this”…

But that would mean I quit writing, and you know me… I can’t do that! A few months ago I said that I wasn’t going to give the price manipulators any thought any longer… But that didn’t last, and here I am, rock you like a hurricane, no wait! Here I am trying to put the pieces back together after another engineered takedown…  So, don’t worry, I’m not going to quit writing… I’m not going to let these sons of beekeepers win!

For the record, Gold ended up down $9.70 on the day to close at $1,775.80, and Silver ended up down 3-cents on the day, to close at $22.95… The BBDXY which started the day at 1,182.54, ended the day, after being down over 8 points, at 1,182.66…  Oil fell further yesterday, as the fear of lockdowns, no traveling, etc. from the new Omicron variant, has really spooked Oil traders and investors… The price of Oil fell to $67.23…  Stocks fell 652 points in the Dow, and 245 points in the NASDAQ, while bonds finally saw some selling and lost ground on the day.

The thing that everyone was pointing to as the reason for the stock sell off was the flip flop that Fed/ Cabal/ Cartel Chairman Powell made with regards to his outlook for Inflation, and that he will have to move up the timeline for a rate hike…  I get it, he said he was moving up the timing of his rate hike, but he didn’t say to what date, or by how much…  I’m just questioning this as the big mover…

But everyone just needs to calm down here…  When Powell says he will move up the timing of a rate hike, it doesn’t mean that he’s going to turn into Paul Volcker!  Trust me on this one folks, The boys and girls at the Eccles Bldg, will hike rates 25 basis points, and then another 25 basis point, and that’s going to be about it, because…. Well, I’ve been through this many times in the past, and the increases in bond yields means more expensive bond servicing. And since the Fed/ Cabal/ Cartel has basically been THE Bond Market in the past few years, that bond servicing cost increase is all theirs!

And so, then the Gov’t see’s the Fed’s dilemma and decides to turn the printing presses back on, but all that does is fuel inflation higher…   Talk about a rock and hard place….  That’s where the Fed/ Cabal/ Cartel and the Gov’t is right now, folks…

And we’re not talking about rocket scientists calling the shots here folks… We’re talking about our elected officials…  I found this on Twitter yesterday, and it’s a quote from Spike Cohen who  had this to say, “ Government is a collection of some of the dumbest and most dishonest people among us, empowered to make decisions that they exempt themselves from, and pay for all of it by running up debts for the rest of us to pay off” Spike Cohen on Twitter…

On Thursday this week, Dennis Miller’s www.milleronthemoney.com letter will feature an interview with me!  We talk about how it’s going to take someone radical to change the course the country is on…  I say, “they could ask me, but it would be just like when my wife or kids ask me something, and then do the opposite”  I’ve told you this before so this is not a spoiler alert for his letter, but I would 1. Stop deficit spending not in 5 years, not in 3 years, but NOW!  2. Stop currency printing, NOW! No more stimulus, don’t they see what continual stimulus packages have done to the finances of Japan? 

So, if you’re not already a subscriber to Dennis’ letter, visit his website on Thursday, and see what I had to say in response to his questions… again, it’s www.milleronthemoney.com

In the overnight markets last night… The markets leaned toward selling the dollar, and the BBDXY is down to 1,181.79 this morning… Not a huge downward movement, but a downward movement nonetheless. Gold is up $13 in the early trading, and Silver has added a wooden nickel to its price to move back to $23 this morning.  But what difference does it make? The price manipulators will just take that $13 gain and make it disappear in the blink of an eye…  I’m really jaded this morning with regards to the suppression of Gold & Silver…   

In the Eurozone yesterday, they printed their November, Euro area core HICP inflation. And it rose  to 2.63% yoy, sharply above consensus expectations of 2.3% and up from last month’s 2.05% to a new all time high. Meanwhile, headline HICP inflation soared  to 4.88%Y/Y from 4.0%, also well above consensus expectations of a 4.50% print and also a new record high. 

And the timing of that report couldn’t have been better, for the European Central Bank (ECB) meets tomorrow… At the last ECB meeting, President, Christine Lagarde made it clear that the ECB was not going to be fooled by the transitory inflation… I wonder if the ECB has different thoughts now that the Fed/ Cabal/ Cartel has come around to seeing the inflation light?  

The U.S., Eurozone, U.K. and Japan are all in on this debt accumulation Ponzi scheme, and all know that it would be better to allow inflation to rise, but the problem with that is that the citizens of each nation, aren’t participating in this Ponzi scheme, and they are screaming at their representatives  to do something about it or they’ll get booted out at the next election… And so suddenly, Jerome Powell, sees the inflation for what it is, and it’s not Transitory!  I don’t think that Powell would have made this discovery if he hadn’t been getting pressure from the elected officials to do something about the inflation…  I’m just saying… 

The U.S. Data Cupboard yesterday, had the Sept. Case/ Shiller Home Price Index (HPI) and it rose 19.5% from a year ago in Sept… The Stupid Consumer Confidence showed a decline this month from 111.6 last month to 109.5% this month…  I would have thought this data would be much weaker, but we haven’t heard much about end date of the extension to the debt talks that is supposed to end !2/3…

Today’s Data Cupboard has the ADP Employment Report for Nov. , the ISM Manufacturing Index, and Rocktober’s Construction Spending, prints… Not really anything to write home about, unless that is the ISM shows a deep drop, but there’s no way the powers that be will allow that to happen, so we’ll just move along, for these are not the droids we’re looking for…

To Recap…  Chuck used to say this… Jerome Powell threw a cat among the pigeons!  He mentioned that he now sees inflation as a problem and will have to move the timing of a rate hike up… This is what the price manipulators needed to hear, because now they could go in with both barrels blazing and bring to an end the rallies that were going on in the metals and currencies… Chuck talks about all of that, and gives us a sneak preview of his interview that will appear in Dennis Miller’s www.milleronthemoney.com  letter tomorrow… 

For What It’s Worth… This article came to me by way of the good Folks at GATA, and it features someone that I’ve highlighted in the FWIW section previously, Matthew Piepenburg, of Gold Switzerland… Matthew is talking about The Fed’s latest blunder, and it can be found here: From Gold Manipulation to DC’s Latest Lies, Absolute Distortion Continues – Matterhorn – GoldSwitzerland

Or, here’s your snippet: “In a recent report from The Hill, we discover that the Biden advisory team is now accepting that inflation is not only a financial reality (rather than “transitory blip”), but far more importantly (to them), a political problem.

It will come as no surprise to many that politics and politicians are driven by re-election not candid honesty, and certainly not economic expertise or even a rudimentary grasp of financial (or even grade school) history.

Unfortunately for the self-preservation-driven dunces helming our financial Titanic, the math of inflation can no longer be masked with more words.

In short, and given rapidly falling poll numbers, the White House has to rev up its “inflation strategy.”

D.C.’s Comical Inflation Strategy

And if you are hoping it’s going to be an effective strategy, well…please: Don’t hold your breath.

In fact–and we promise that we are not making this up–the Biden administration’s answer to the inflation problem (which is driven and defined by too much money in the system) boils down to this: Spending and creating more money.


Yes. Really

The economic advisors actually maintain that the new Biden spending package will, “not add to inflationary pressures,” and effectively “pay for itself.”

As I like to say: That’s rich.

If anyone on the White House staff took economics in high school or read a single case-study on prior inflationary cycles, they would know better; but for now, the lords are hoping that the serfs won’t know any better either.

But folks, here’s a spoiler alert: Expanding spending with expanded money creation is the very essence of inflation.

Then again, and as we’ve warned for months, politicians say one thing and mean another.”

No shocker there.”

Chuck Again… Basically the same thing I’ve been telling you, but today you get to hear from someone other than me… And, someone that should be listened to!

Market Prices 12/1/2021: American Style: A$ .7151,  kiwi .6844,  C$ .7847, euro 1.1322, sterling 1.3325, Swiss $1.0856, European Style: rand 15.8189, krone 9.0293, SEK 9.0316,  forint 321.44,  zloty 4.0892,  koruna 22.4859, RUB 74.43, yen 113.33, sing 1.3626, HKD 7.7931, INR 74.86, China 6.3686, peso 21.27, BRL 5.6106,  BBDXY 1,181.79, Dollar Index 95.97,  Oil $69.10, 10-year 1.47%, Silver $23.00, Platinum $961.00, Palladium $1,852.00, Copper $4.37, and Gold… $1,789.20

That’s it for today… I go to see my oncologist later this morning, for the my last time for the next 3 months… Then later tonight I go for my booster… I’m not sure why I’m doing this, it just seemed like the right thing to do, given my weakened immune system…  I have 3 medical appointments this month still to come! They all want to see me before I leave for 3 months! Either that or they will all miss me while I’m gone… I’m betting it’s the former of the two… Today is the end of the Collective Bargaining Agreement in Baseball, which means that a lockout begins today, so that everyone can concentrate on getting a new deal done before Valentine’s Day… If they don’t, then Spring Training will be delayed, setting baseball behind the 8 ball…  I don’t think the fans on the fence for baseball will come back to the game if there’s a delayed start of the season…  I’m just saying… not that anyone from the players union or owners group reads the Pfennig!  They should, but that’s a different story… Fourplay takes us to the finish line today with their version of the song: Have Yourself A Merry Christmas…   I hope you have a Wonderful Wednesday, and please Be Good To Yourself!

Chuck Butler