Gold is getting whacked again: Dudley's comments throw a cat among the pigeons

• The Dollar weakens a bit.

• Gold & Silver get whacked again!

Good Day... And a Tub Thumpin' Thursday to one and all! Well, as in life, baseball seems to return to the mean... Yesterday, my beloved Cardinals got 6 hits, and 9 walks, and couldn't score a run... Much like their start of the season... Well, they come home to St. Louis for a game Friday night, let's hope they rediscover their bats!  I failed miserably at my test yesterday, so I can only hope that today is better! The Marshall Tucker Bank greets me this morning with their great song: 24 Hours At A Time... 

Well, the dollar's ascent to higher ground hit a roadblock yesterday, and it stalled out with the BBDXY trading all day around 1,256...  That's down from yesterday morning's start, but not enough of a downward move to call it a change... So, the dollar is still kicking tail and taking names later, with most of the currencies. 

Gold started the day up $4 but the short paper traders couldn't let Gold or Silver have a two day rally, so they stepped in with their arms full of short paper trades, and Gold ended up down -$19, and Silver ended up down 28-cents... Gold closed at $2,397.70, and Silver Closed at $28.91... This latest bear raid on Gold & Sliver has been quite damaging, but has it scared investors away from buying the metals in physical form? The answer is a hard NO! And if that's the case, then the memo should be sent to the short paper traders to give it up! 

Oil's downward plummet finally stopped yesterday, with the price of oil finishing the day with a $77 handle. And the 10-year's yield rose another inch to 4.26% yesterday... 

In the overnight markets last night... The dollar lost another index point in the BBDXY, thus marking two days of losses, albeit small ones... I read this morning that Bill Dudley, former Fed Head, is calling for a rate cut, and that the U.S. economy is in dire need of one... That probably has a lot to do with the weaker dollar this morning... 

Gold is getting whacked again this morning, the short paper traders are out in force... And the Dudley comments probably spurred them into action, because a rate cut should propel Gold higher, so they decided to nip that rally in the bud... Gold is down $20 this morning, and Silver is down more than $1 this is getting ugly folks... Time to back up the truck and load it up with metals that are cheap... I'm just saying... 

The price of Oil has slipped to a $76 handle this morning, and the 10-year's yield has dropped, thus stopping its recent upward move... Again Dudley's comments probably had a lot to do with this move... 

I found this brief snippet in Bill Bonner's letter yesterday that can be found : www.bonnerprivateresearch@substack.com   Here's Bill: "We are exploring US foreign policy. Not for its own sake... foreign policy is not our beat. But how will America’s confrontational, scaremongering attitudes affect our financial future? In preview, the age-old combination of war and debt are likely to be fatal to the empire... and to US asset values.  

The problems in themselves are easy to understand and solve. Javier Milei in Argentina turned a deep deficit into a surplus in a matter of months. In America, it should be easier. The ‘empire budget’ could be cut in half... or more... just by eliminating the ‘empire’ part. On the other hand, without substantial cuts to the military, there is little chance of preventing a financial catastrophe. Too bad, the firepower industry controls Congress!"

Chuck again... I put that in today's letter because it was revealed yesterday that 76% of total income tax receipts. Three quarters of every dollar you paid in income tax went to pay interest on the debt in June. I ask this question again... Got Gold?

There was news the past couple of days that India has announced that they were dropping the income tax, on Gold sales... India is one of the largest buyers of physical gold each year, so this could mean that they import even more Gold in the future... 

So, in the past few days, we've talked about how the new generation of youngsters are taking to owning physical Gold, and how India is dropping their income tax of Gold... You would think that these two items alone, not even taking into consideration that the World is a tinder box, just waiting for a spark, would be enough to scare off the short paper traders... But these guys are like a bad rash that won't go away... I'm just saying... 

And one more thing regarding Gold & Silver, yesterday's ending price was for Gold was $25 off its high on the day, when the short paper traders showed up at the COMEX with arms full of short paper trades... again, these dastardly dudes got under my skin...

The Japanese yen rallied VS the dollar overnight, and all eyes on the BOJ for next week's meeting that I talked about yesterday, and the Russian ruble is still on the rally tracks... I find it very interesting that the price of Oil is so much weaker, but the ruble keeps truckin' VS the dollar... And the Swiss franc is also on the rally tracks this morning, so that makes abundant sense to me, given the world is in a tinder box right now, waiting for a spark...

The U.S. Data Cupboard yesterday didn't have much for us to look at, but there was a New Homes Sales report for June that printed and it showed New Home Sales fell in June from May... No biggie here, yet, that is... Today's Cupboard has another revision of 2nd QTR GDP, the Weekly Initial Jobless Claims, and June's Durable Goods Orders... Tomorrow's Cupboard has the long and highly anticipated June PCE... I talked about this earlier this week, so I won't go through it again here... 

To recap... The dollar didn't budge much all day yesterday, some slippage had occurred, but nothing to write home about... Gold got whacked again, along with Silver, as the short paper traders wouldn't allow the two metals to own 2 day rallies... Oil's downward plummet came to a stop yesterday, but after several whole figures were lost in Oil's price... And in the overnight markets last night... The dollar slipped a bit more, but Gold & Silver are getting whacked this morning... UGH! 

Here's your snippet: "The failure of Western financial structures, including the currency system, is in its final stages. 

Sadly, no one takes any notice – YET!

Global debt has already tripled this century, with the dollar and most currencies having lost 98.5% of their purchasing power since 1971.

Experts say the US can never default as they have a printing press. Whatever lies the US and European governments come up with, a 98.5% fall in the value of a nation’s currency is an absolute default. All other explanations are just noise.

With global debt at around $350 trillion and global GDP $100 trillion, the Global Debt to GDP is 350%.

Over 100% Debt to GDP is unsustainable and cannot be financed over the longer term.

And 350% Debt to GDP is bankruptcy – Banca Rotta.

With financial markets distorted and leveraged to the hilt, global risk today is greater than ever.

There is an obvious path that small and big investors can take to minimise this risk.

The best solution is to create your own Gold Bank that will almost entirely eliminate financial risk and provide instant liquidity. In addition, compared to virtually all other asset classes, it will enhance your wealth substantially in the coming years.

US and Europe – terminal illness

We are not just talking about terminal illness for the US, European and probably Japanese, which are all fatally wounded by debt, deficits and decadence with no chance of recovering in the next few hundred years.

We are also talking about China and many emerging markets with debts, as well as demographic and structural problems, which, even though not incurable, will slow down their economies for many years. And yet, not to the same extent as in the West.

So, are the US and Europe now Banana Republics?

Banana Republic can be described as:

A highly stratified, politically unstable socioeconomic structure, with a small ruling class that controls access to wealth and resources.

That definition certainly fits the US and Europe, with a small elite of 1% owning 1/3 of the total wealth in the US. "

Chuck again... Quite a few years ago now, yours truly, and his big boss Frank Trotter were on stage together giving a presentation, and Frank mentioned that the U.S. was now a Banana Republic...  I always knew Frank was the smartest person in any room, but to hear him say that I was shocked... Only to find out he was a head of his time! 

Market Prices 7/25/2024: American Style: A$ .6563, kiwi .5903, C$ .7223, euro 1.0849, sterling 1.2884, Swiss $1.1388, European Style: rand 18.4227, krone 11.1131, SEK 10.8370, forint 362.18, zloty 3.9992, Koruna 23.4050, RUB 84.57, yen 152.46, sing 1.3423, HKD 7.8091, INR 83.70, China 7.2165, peso 18.53BRL 5.6546, BBDXY 1,255.77, Dollar Index 104.18, Oil $76.20, 10-year 4.22%, Silver $27.91, Platinum $936.00, Palladium $910.00, Copper $4.07, and Gold... $2,371.31.

That's it for today... And this week... It's been a tough row to hoe for me this week, I've been very lethargic during the day, and not ready to wake up in the morning... Hopefully, things will get better... The week with oldest son, Andrew his wife, Rachel, and Evie and Braden is coming to a close this weekend... It's been a blast for me to have them here... Yesterday, I taught little Evie how to play "go fish", and she beat me in her first game! I then tried to teach her to play "War", and she grew very short with her patience in that game... We're going to go to the Miami Hammerheads game tonight, with the Palm Beach Cardinals out of town, we're stuck going to a hammerheads game, but... It's baseball, and to me that's all that counts! Sugar Ray takes us to the finish line today with their song: Every Morning... I hope you have a Tub Thumpin' Thursday today, and please Be Good To Yourself!