Will The Dollar Buying Ever End?

A Pfennig For Your Thoughts
 
September 29, 2021
 
* currencies & metals get sold on Wednesday… 
* Today is a BIG DAY, with a vote in Congress & the fiscal year end… 
 
Good Day… And a Tub Thumpin’ Thursday to one and all! It’s the end of the week for me, and the end of the month, and the end of the fiscal year for the U.S. There are many things going on that could occur tomorrow, folks… But I doubt that will happen.. I’m talking about a default for the U.S. And I doubt that this is the time that this will happen, but… There’s always a chance… My beloved Cardinals’ 17 game win streak came to and end last night… Oh well… who’d thunk that this team that had a difficult time hitting its way out of a wet paper bag, would put together a 17-game win streak? I sure didn’t! But the fans are still behind the team, and we’ll keep going until the Ferris Wheel stops.. The Little River Band greets me this morning with their song: Happy Anniversary…
 
Well, another day brought on another day of dollar buying folks… While all the chaos that could occur in the next couple of weeks hangs over the markets like the Sword of Damocles.. Dollar traders and investors are playing no attention to it, and just keep buying dollars… The currencies continue to take one shot to the gut after another… And Gold & Silver keep getting sold down the river… Bitcoin finally found a bid yesterday, after seeing days of selling take its price to a level that could have brought it below $40,000… Bonds didn’t move much on Wednesday, and the price of Oil didn’t move much either.. So we can’t blame all the dollar buying on Bond Or Bitcoin purchases….
 
Gold lost $7.70 on the day to close at $1,727.10, and Silver lost 92-cents to close at $21.62… I told you yesterday, that we are in a batten down the hatches time, and I hope you have heeded my call, and are not paying attention to all this dollar buying.. All this selling is really frustrating for me, folks, as I know it is for you too, but we have to maintain our hedges against the collapse of the dollar, and carry on my wayward son… 
 
In the overnight markets last night… Not much of anything went on… the currencies are basically trading in yesterday’s clothes, as is Gold & Silver, with both of them flat as a pancake (Head East!) The BBDXY, which closed yesterday at a whopping 1,167.88, is trading this morning just a shade lower at 1,167.60… In Congress today, with the fiscal year ending, they will try once more to agree on a spending bill that would allow the Gov’t to continue to operate… As I’ve said before this is usually a rubber stamp but this time seems to have hang ups, lawmakers with a conscience, who’d a thunk that could happen? 
 
I was taken aback last night, while I sat out on our balcony, watching the stars dance around, when I read an email that talked about how the current President is proposing that the military give start giving out dishonorable discharges to military personel that refuse to be vaccinated… Wait! What? That’s preposterous! These people have put their lives on the line for our country, and we’re going to give them dishonorable discharges? I draw the line there folks… I will not sit idle, and watch this farce to go on…
 
OK, I know that has nothing to do with markets, economies, but it does have to do with DOLTS! And I will always be here to point out the DOLTS, folks… You can count on that!
 
On a different front… Back home in Missouri, there were tons of protestors out in force to object the current evictions going on… These folks can’t believe that owners of homes can evict them for not paying their rent.. . The gall of these owners! HA! I really can’t get my arms around the idea that folks, can’t believe that they’re being evicted for not paying their rent. I will point out again that there are 10.9 Million job openings in the U.S. and there are 8.4 Million people unemployed… Need I say more?
 
Did you hear about the French mansion that was being renovated, and they found Gold coins in the walls? Here’s the skinny from the good folks at GATA: “Hundreds of rare gold coins dug out of the walls of a remote French mansion fetched more than one million euros ($1.2 million) at auction on today.
 
Stonemasons discovered 239 pieces of gold, minted before the French Revolution, when they began renovating the property near Quimper in the western Brittany region, auctioneers Ivoire/Deloys said.”
 
Ok, so I can see French mansion holders all taking sledgehammers to their walls to see if there are Gold coins in them… I find that thought to be funny, I don’t know about you, but I find it to be amusing… 
 
Remember when I told you about the guys that were calling for stock market collapses on “X” day? I said that they were like the boy who cried wolf, and that eventually the stock market would collapse and they could crow exuberantly that “they called it”… Well, the stock market hasn’t really collapsed, but it did hit a 6-week low yesterday… So, maybe these guys will be “half right”, as the rot on the stock market’s vine gets exposed over time, and not all in one day… 
 
And that brings me to the Cartel, what will they do to protect the stock market? They could slowly walk away from any talk of Tapering… And they could repeat their comments that interest rates won’t rise until 2022, late… But maybe that’s all run its course, and the stock jockeys won’t see this as helping… I can see that happening, just like my taking of chemo, about every 1.5 years, it begins to not be effective, and I have to switch to a different chemo… Oh, shoot, that 1.5 years is now! Uh-oh! 
 
Today’s U.S. Data Cupboard has the usual Thursday fare of Initial Jobless Claims, which the last two weeks have surprised to the upside… I would think that to continue, but like I said not like the increases we saw in March of 2020, just increases that keep adding up… The final revision to 2nd QTR GDP will print today… What a crock of data! Gov’t spending dominates this data print, just keep that in mind…
 
There will be 4 Cartel members out speaking on the economic outlook today, hopefully they will all be singing from the same song sheet, which rarely happens when they go out to speak… Confusion is their normal cup-o-tea, so we’ll have to see what today’s brings us here… 
 
Tomorrow’s Data Cupboard will have Personal Income and Spending for August, and the Core Inflation data for August… But the whole world will be watching to see what happens today with the vote in congress, and how the U.S. reacts tomorrow… Big Day today, folks, and even Bigger day tomorrow… 
 
For What It’s Worth… This is crazy folks… I found this on Ed Steer’s letter last night, and when I went to click on the link, CNBC said it no longer existed… So, I don’t have a link for you to click on and read the article in its entirety this morning…  All I have is the snippet, which talks about Cartel chairman Powell and his visit to Capital Hill…
 
And here’s your snippet: “ Federal Reserve Chairman Jerome Powell, in remarks to be delivered Tuesday, cautioned Washington legislators that the causes of the recent rise in inflation may last longer than anticipated.
 
In a speech that he will deliver to the Senate Banking Committee, the central bank chair said economic growth has “continued to strengthen” but has been met with upward price pressures caused by supply chain bottlenecks and other factors.
 
“Inflation is elevated and will likely remain so in coming months before moderating,” Powell said. “As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors. These effects have been larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal.”
 
The remarks are part of mandated testimony Powell must give to Congress regarding the Fed’s economic response to the Covid-19 pandemic. He will speak Thursday to the House Financial Services Committee.”
 
Chuck again… yes, isn’t it nice to see the Cartel come around to our way of thinking that inflation is NOT transitory? I do find this interesting that again he takes no credit for fueling the inflation with all their currency printing and near zero interest rates…   What a Twit, dolt, and any other name you can think of that describes someone that’s either not so bright, or lies between his teeth!
 
Apparently, Cartel Chairman, Powell, is on the hot seat as his term comes up for renewal… There are some influential lawmakers that don’t feel that Powell is up to the grade that they need to guide the economy to higher ground… I don’t know how Powell can sit there and listen to the bunk from the lawmakers, without standing and pointing his finger at them and saying, “If you people would stop with your deficit spending, it would make my job easier”… And then he could pretty much know that his job is toast… I’m just saying… 
 
To recap… The dollar buying continued throughout yesterday, but overnight the dollar buying has taken a pause for the cause… Bonds and Bitcoin didn’t get bought yesterday, so we can’t blame buying them for the weakness in the currencies and metals… Chuck thinks the vote in congress today will be a BIG ONE, with the fiscal year ending today in the U.S. they need something to continue tomorrow…  Could be chaotic tomorrow, folks… 
 
Market Prices 9/30/.2021: American Style: A$ .7195, kiwi .6865, C$ .7850, euro 1.1581, sterling 1.3442, Swiss $1.0688, European Style: rand 15.1690, krone 8.8025, SEK 8.7845, forint 311.42, zloty 4.005, koruna 22.0340, RUB 72.78, yen 111.99, sing 1.3608, HKD 7.7883, INR 74.22, China 6.4663, peso 20.52, BRL 5.4239, BBDXY 1,167.60, Dollar Index 94.44, Oil $74.23, 10-year 1.52%, Silver $21.63, Platinum $962.00, Palladium $1,974.00, Copper $4.12, and Gold… $1,726,80
 
That’s it for today… Well, first we had a very scrumptious dinner last night, and then sat out on our balcony that overlooks the ocean, and talked.. Good friends Pete and Karen were our guests on the balcony, and we swapped stories, and memories, until it was late… I had my Bose wireless speaker on the balcony playing Sirius XM’s station, The Bridge… that’s one that I listen to all the time! So, today is the final day of the U.S.’s fiscal year… What will happen tomorrow? When we turn the page to Rocktober?
 
I laughed the other day when reading Dave Gonigam’s 5 Minute Forecast, when he called the $3.5 Trillion deficit spending bill, “the spendalooza”… I don’t think there’s a better way to describe it! Well, when I talk to you next it will be Rocktober! And what an interesting month it should be… My beloved Cardinals play a day game at Busch today, but I won’t be in town to attend, UGH! Then they finish the regular season with 3 games with the Cubs… Gotta keep winning! I hope you have a Tub Thumpin’ Thursday today, and please Be Good To Yourself!
 
Chuck Butler
Creator & Editor of:
A Pfennig For Your Thoughts