Thursday , January 27 2022
Home / Daily Pfennig /Powell To Retire The Transitory Term…

Powell To Retire The Transitory Term…

Summary:
A Pfennig For Your Thoughts December 2, 2021 * Currencies and Silver get sold on Wednesday…  * Gold hangs onto some of its gains on Wednesday Good Day… And a Tub Thumpin’ Thursday to one and all! I was so worked up yesterday about what had happened the day before that when I went to the doctor, my blood pressure was the highest it’s been in two years! No worries, it was taken again later, and it was back to normal… And the rest of the visit was normal too, no biggie… I’m glad of that folks, for sure! The nurses were all wishing me a great winter in Florida… I said, thanks, but I still have to get through this month! I missed going to lunch with my buddy Duane yesterday, as I was at the doctor’s office forever it seemed… Kathy was decorating the tree yesterday, so I decided to cook

Topics:
Daily Pfennig considers the following as important: , , , ,

This could be interesting, too:

Mises Institute writes Austria’s Blueprint for Covid Despotism

Mises Institute writes Murphy vs Weisenthal on Currency Debasement

Mises Institute writes The Fascist Threat

Mises Institute writes The Unseen Consequences of the Interstate Highway System

A Pfennig For Your Thoughts
December 2, 2021
* Currencies and Silver get sold on Wednesday… 
* Gold hangs onto some of its gains on Wednesday
Good Day… And a Tub Thumpin’ Thursday to one and all! I was so worked up yesterday about what had happened the day before that when I went to the doctor, my blood pressure was the highest it’s been in two years! No worries, it was taken again later, and it was back to normal… And the rest of the visit was normal too, no biggie… I’m glad of that folks, for sure! The nurses were all wishing me a great winter in Florida… I said, thanks, but I still have to get through this month! I missed going to lunch with my buddy Duane yesterday, as I was at the doctor’s office forever it seemed… Kathy was decorating the tree yesterday, so I decided to cook dinner… And it was quite yummy! I remember when the kids were young and we all participated in decorating the tree… But since they’ve grown up and out of the house, Kathy gets to decorate it the way she wants it decorated, and I stay away from the proceedings!  On Sirius XM they did a poll of listeners and came up with the TOP 25 greatest listener Christmas Songs, and right now I’m listening to Gene Autry singing Frosty The Snowman…
Well, the goings on in the markets on Tuesday was one for the ages… And we didn’t experience anything like that yesterday, even though the price manipulators in metals were still hanging around, and taking their pound of flesh from Silver… The dollar basically drifted yesterday, until late in the day when it got moving higher as the day went on as illustrated by the BBDXY which started the day at 1,181.79, and ended the day at 1,184.30… The euro remained above 1.13, and the real movement was in the Petrol Currencies of Norway, Canada, Mexico who saw weakness that coincided with the price of Oil dropping daily it seems… 
The Russian ruble gained on the day, as did the Brazilian real… I would think that their higher interest rates are what’s keeping them from dropping along with Oil… But if Oil continues to drop, in price, the drop will weigh on these higher yielding currencies too…
Gold found a way to hang onto its early gains yesterday.. At one point in the day Gold was 1,793.20, but had to hang on for its life to show a gain of $6.90, and close the day at $1,782.70… Silver on the other hand has to be wondering what the price manipulators have against Silver! Silver lost 55-cents on the day and closed below $23 at $22.40… Why on earth are these guys going after Silver like they do? Because they can… 
The price of Oil lost more ground yesterday and trades this morning with a $65 handle… And Bonds got bought again yesterday with the 10-year’s yield dropping to 1.42%… I have a good comparison of bonds and Gold for you in a bit, but first…
In the overnight markets last night… the dollar got sold to the tune of a couple of figures off the BBDXY, which closed yesterday at 1,184.30, and trades this morning at 1,182.09… I wonder what traders have in mind for the dollar today… there are little grenades ready to be thrown at the dollar on all fronts, but so far the green/peachback has alluded them… So, we shall see… Gold is down $2.70 in the early trading, and in a site that I’ve not seen in a few days, Silver is actually up 15-cents this morning! 
There was news yesterday that the Irish Central Bank made their first purchase of Gold since 2009, when they bought 2 Tons of physical Gold for their reserves… Again I want to point out something that should be pushing Gold to the moon… Central Banks continue to buy physical Gold, and you know what they don’t buy don’t you? Bitcoin or any other cryptocurrency… It’s as if they know that there will be regulation in the future that bans cryptocurrencies, other than the ones that each nation issues… I’m just saying… 
I get so worked up when I hear people say that Bitcoin is a reserve currency…  Oh well, enough of that..
And another thing that should be pushing the price of Gold higher by the day, is a geopolitical problem… The Russian President issued a warning to NATO to not cross their red line in Ukraine… YIKES… In the past, whenever there were sabers rattling causing geopolitical problems Gold would rise, along with the Swiss franc… 
Gold keeps trying to take off to higher levels, but each time it looks like its ready to take off, it gets whacked back down, by the price manipulators…
The Swiss franc still has negative rates, and that has been holding the franc back… But if the ECB ever gets off their duffs and hikes rates before inflation gets out of hand in the Eurozone, I would think that the Swiss National Bank would follow the ECB’s rate hike with one of their own… I would have to say that in my younger days I would have gone out on a limb and said that an investor should look to buy francs for future movements…  But since 2007, I don’t go out on limbs, don’t climb ladders, and don’t run for my life… So, take that as you might…
Well, inflation seems to be on the Fed/ Cabal/ Cartel’s minds these days… Too bad they waited several months to acknowledge they were wrong… Jerome Power said that he thought is was time to retire the term Transitory, and come up with something else to explain their position… 
Well, you know me and how I can be real smart a… And so I’m going to put on the Smart A.. hat now, and say that Powell, wants to come up some other lie that they can concoct to confuse us, which they been doing for years.. .Remember Greenspeak? Ahhh, now I see said the blindman as he spit into the wind, it’s all coming back to me now!
Speaking of Inflation, here in the Missouri, our natural gas provider, Spire, issued a warning yesterday that gas prices could be 25% higher this winter… Well, I guess I’m happy about going to S. Florida for the winter, even more now!
I received this email from the good folks at GATA yesterday, and I’m going to give you the whole email… USAGold’s “News & Views” letter for December examines how the U.S. Treasury bond market is now almost entirely a creature of the Federal reserve, which has been monetizing most of the federal government debt undertaken in the last decade.
Gold, the letter suggests, quoting market analyst Charlie Morris, is a sort of bond itself, and a much more attractive one because:
— It is a zero-coupon because it pays no interest.
— It has a long duration because it lasts forever.
— It is inflation-linked, as historic purchasing power has demonstrated.
— It has zero credit risk, assuming it is held in physical form.
— It was issued by God.
Maybe that’s why governments and central banks feel so obliged to manipulate the gold price — to weaken its competition with government-issued bonds.
The USAGold “News & Views” letter for Dece mber is headlined “The Masters of the Universe and Gold” and it’s posted here:
The U.S. Data Cupboard yesterday had the ADP Employment Report for November, and while it was weaker than the previous month, it beat the expectations, so it was 6 of one and one half dozen of another… And the ISM Manufacturing Index came in better than last month’s 60.8, bettering that number with a 61.1 print…
I told you that the powers that be wouldn’t have any of that stuff of a weaker ISM… I mean, we have a shipping backup, a supply chain disruption, and the great resignation among us, and they expect us to believe that manufacturing plants are running at full steam? Hey, I was born… Just wasn’t born yesterday!
Today’s Data Cupboard just has the Weekly Initial Jobless Claims… remember last week was a shortened Holiday week, so the number could be really skewed…
To recap… The dollar rallied late in the day yesterday, and so did Gold, but Silver got sold like funnel cakes at a State Fair… Oil got sold downward again, and for some unknown reason, since David Rosenberg told us the short position close outs had been exhausted, yield should be rising, not falling… Chuck has a comparison of bonds and Gold for you today…
Or, here’s your snippet: “Federal Reserve Bank of Cleveland President Loretta Mester said she is “very open” to scaling back the Fed’s asset purchases at a faster pace so it can raise interest rates a couple of times next year if needed.
“Making the taper faster is definitely buying insurance and optionality so that if inflation doesn’t move back down significantly next year we’re in a position to be able hike if we have to,” Mester said in an interview with Kathleen Hays on Bloomberg Television Wednesday. She said that recent data “have come in supportive of that case, so I’m very open to considering a faster pace of tapering.”
The U.S. central bank is currently set to phase out its asset-purchase program in mid-2022 under a plan announced at the start of November to slow buying by $15 billion a month. But the Fed could vote to accelerate the taper process to curb inflation, which has been accelerating in recent months and has become more persistent than forecasters, including those at the central bank, once expected.
“Right now, with the inflation data the way it is and with the job market as strong as it is, I do think that we have to be in a position that if we need to raise rates a couple of times next year we’re able to do that,” said Mester, who votes on policy next year.
Asked if she favors quickening the taper so it ends in March, Mester said that right now, she would support completing the wind-down in the first quarter or early in the second quarter “given what we know about the economy.”
Chuck again… So, here’s Chuck’s take on this desire to taper faster… They don’t want to own bonds with low yields when they have to hike rates, for it would cause them to have to book paper losses… And…. I’m still of the opinion that they will stop tapering long before they get to the end… The stock market is begging for some help once again, and don’t you see Jerome Powell riding in on his white steed to save the stock jockeys?   The Bears say we have Omicron, the Bulls say, we have Powell… (I saw that on Twitter!)
Market Prices 12/2/2021: American Style: A$ .7100, kiwi .6808, C$ .7802, euro 1.1342, sterling 1.3321, Swiss $1.0882, European Style: rand 15.8511, krone 9.0770, SEK 9.0548, forint 319.39, zloty 4.0527, koruna 22.4081, RUB 74.00, yen 112.88, sing 1.3672, HKD 7.7931, INR 74.95, China 6.3659, peso 21.36, BRL 5.6345, BBDXY 1,182.09, Dollar Index 95.86, Oil $65.40, 10-year 1.42%, Silver $22.55, Platinum $952.00, Palladium $1,828.00, Copper $4.34, and Gold… $1,780.00
That’s it for today… And of course this week… Haven’t the last two weeks gone by in flash? I mean Suddenly the Christmas decorations are going up, and I’m trying to decide when I’ll be heading to Florida this year! I don’t have one gift bought, no wait, I do have some books for my boys, boy will they be excited about that! HA! I heard my new fave Christmas song: Winter Romance again last night, and I looked up the lyrics and sang along… Another new fave is a song titled: Snowfall… Beegie Adair does that one too! The Big College Conference Championship Games are this weekend, and afterward, we’ll pretty much know who’s in, for the playoffs… Only 4 teams make the playoffs… There’s always a team or two that get’s left out, that thinks they deserve to be in the playoffs… It’s beginning to look a lot like Christmas… At least around here it is! I’ve switched back to my Pandora Smooth Jazz Christmas station, and the Jack Jezzro Trio takes us to the finish line today with their version of the song: the Christmas Dance…  I hope you can have a Tub Thumpin’ Thursday to day, and please Be Good To Yourself!
Chuck Butler
Creator & Editor of:
A Pfennig For Your Thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *