Instructions on: How to end the Fed

• Currencies & metals see early selling and then nothing else on Monday.

• China will retaliate... mark my words.

Good Day... And a Tom Terrific Tuesday to you! Well, it snowed again yesterday, another inch, not much, but still... I was attempting to get my care detailed but had to cancel.... Alex and Grace will drive my car to Little Rock this week, Kathy and Chuck will fly... Time sure does fly, eh? I can't believe Alex's wedding date is almost upon us! Beegie Adair greets me this morning with her version of the song: Winter Romance.... ( you should hear Dean Martin sing that one!)

Well, I told you yesterday that the dollar selling had ended in the overnight markets the previous night, and that the BBDXY had gained back 6 index points that it had lost late last week.... Well, that was it for the dollar buying yesterday, as the BBDXY remained at 1,281.... Gold started the day down $6, and then proceeded to give up another$5 to make it's loss on the day $11, to close at $2,639.00. Silver lost 11-cents on the day to close at $30.58.... 

It was just a day where, traders returned and realized that this Friday is a Jobs Jamboree Friday, and that they are looking for a weak jobs creation report, which would leave the markets wondering what the hell is going on in the economy, and traders do not like unknowns.... So, they sold metals.... Strange way of thinking about things, but they are fickle Traders, right? 

On a sidebar, years ago, and I mean many years ago, I was sitting in an audience listening to this woman speak and talking about how traders were fickle and not very nice people.... Then it was my turn to speak, and I said that I was a trader, and I thought I would be very good company at your dinner table!  The crowd roared with laughter, and I was on my way to a great speech... That was in Arizona and the conference was hosted by friend, Michael Checkan of ASI.... That was the first time I had ever spoke by myself, without having Frank on stage with me.... So, thank you Michael for that opportunity, many years ago! 

Whew! That was a long sidebar, eh?  Ok... The price of Oil dipped below $68 to $67.98 yesterday, and the 10-year's yield dropped more to 4.19%.... One of the things I was going to list out for you yesterday was that I read last week that the Fed/Cabal/Cartel was buying the yield curve to keep rates in check.... See? I had told you that I thought it appeared that the Fed/Cabal/Cartel was buying bonds again.... It's tru... It's tru... I did see a putty tat! 

Boy spell check was having a problem with that last statement, from Tweety Bird.... 

In the overnight markets last night....The dollar buyers backed off and sold instead, with the BBDXY starting the day today, down 2 index points... 2 index points don't make a mole hill, but they do signal that the night before it was dollar intervention that caused the 5-index points gain.... I'm just saying.... Well, Gold is off on a good foot this morning in the early trading, Gold is up $14 and Silver is up 42-cents... Ed Steer tells me that yesterday's losses in Gold & Silver were exacerbated by the short paper traders.... UGH!  

The price of Oil has slid to $68.00 this morning, and the yield on the 10-year Treasury has dropped again and trades this morning with a 4.18% yield.... 

I also read last week that Money Supply, even though the Gov't tries to conceal it from the public, is soaring again.... Uh-oh! Money Supply increases when the economy is slowing, to kick start it again... But Money Supply is inflation.... So, get ready for price increases coming your way soon... I'm just saying....

There was also an article about "how to end The Fed".... It was long, it simply said that Congress needed to repeal the Federal Reserve Act, which was shoved down Congress's throats in 1913 by Woodrow Wilson....  If you're keeping score at home, Wilson was also responsible for the IRS, and the fact that state senators are now elected positions instead of appointed positions by the Gov.  When you were appointed the Gov. Could simply call you back and replace you if you didn't represent the State and its business....  Now, we're stuck with the pension-grabbing, medical insurance-grabbing, drains on the economy for years! 

But that's it, it could take about 15 minutes, and the Fed would be unwound.... Who would be responsible for setting interest rates? The Bond markets..... Who would be responsible for monitoring employment? Oh, let's see, how about ADP.... With the President on th hook for low employment....  See? It would be so easy to do, and budget-wise, think of all the economists that the Fed employs, now looking for jobs in the real world? 

France seems to be having a problem that has given some life to the dollar... The French could dissolve the Gov't. And all sorts of things that they are talking about.... It's interesting to see the French so active with this.... 

But the euro isn't getting any love with all the problems in France....  And with dollar strength already weighing on the euro, the single unit iis having a difficult time keeping its head above water... 

And there was this on zerohedge.com : "Elon Musk, new co-head of the Department of Government Efficiency declared this week that the new outfit will seek to audit the IRS."  

Chuck again.... Yes!, Yes!, Yes! Do it! Don't just talk about doing it, get 'er done! 

And finally.... This was reported by the good folks at GATA.... " U.S. President-elect Donald Trump today demanded that BRICS member countries commit to not creating a new currency or supporting another currency that would replace the United States dollar or face 100% tariffs."

So... If you don't use the dollar.... You'll receive 100% tariffs on your exports to the U.S..... Now, it that's not something that needs to be looked at seriously, I don't know what is.... because if you are going to place 100% tariffs on most countries in the world, they will simply not export to your country, causing problems in both countries, but most of all the U.S. Can you say.... Smoot/ Hawley tariffs? I knew you could....  

The U.S. Data Cupboard yesterday had the ISM (manufacturing index) for Rocktober, and it printed below the line in the sand at 50 once again, just as I said it would do.... Today's Data Cupboard has the latest Job Openings, not a market-moving piece of data... Other than that, there will be 4 different Fed Head speakers out talking today... 

To recap... The dollar buying that started the previous night, didn't see any follow-through in the U.S. session yesterday, so the 6 index points it was up yesterday morning, was it for the day... Gold was down $11 on the day, and Silver down 11 cents....  Chuck goes through the rest of the items he wanted to include yesterday but had to wait until today.... Can you say Smoot/ Hawley tariffs?  I knew you could! 

For What It's Worth.... Well the well was dry again this morning with regards to FWIW-worthy articles, but I did find this on Bloomberg.com, that talks about what I was talking about above, regarding how the countries that export to the U.S. that are in line for large tariffs, like China, will come up with workarounds.

Here's your snippet: "China ratcheted up trade tensions with the US with a ban on several materials with high-tech and military applications, in a tit-for-tat move after President Joe Biden’s government escalated technology curbs on Beijing.

Gallium, germanium, antimony and superhard materials are no longer allowed to be shipped to America, the Ministry of Commerce said in a statement Tuesday. Beijing will also place tighter controls on sales of graphite, it added.

The targeted metals are used in everything from semiconductors to satellites and night-vision goggles. However, Chinese sales to the US had already plunged in the wake of earlier export curbs announced last year.

The move came after the White House on Monday slapped fresh curbs on the sale of high-bandwidth memory chips made by US and foreign companies to China. The Biden administration’s goal is to slow China’s development of advanced semiconductors and artificial intelligence systems that may help its military.

China is the top global supplier of dozens of critical minerals, and concerns about its dominance have been growing in Washington since the country placed initial controls on exports on gallium and germanium last year. That move sent prices spiking and upended trade flows as US manufacturers sought alternative supplies, while miners raced to tap new deposits and politicians sought to replenish national strategic reserves."

Chuck again.... yeah, it's going to be a bumpy ride this global trade... Ronald Reagan is turning in his grave... But the U.S. people wanted a new sheriff in town, and they got one... 

Market Prices 12/2/2024: American Style: A$.6490, kiwi .5892, C$ .7124, euro 1.0524, sterling 1.2667, Swiss $1.1317, European Style: rand 18.0926, krone 11.0452, SEK 10.9901, forint 394.24, zloty 4.0841, koruna 23.9633, RUB 105.97, yen 148.95, sing 1.3438, HKD 7.7833, INR 84.69, China 7.2837, peso 20.36, BRL 6.0758, BBDXY 1,279, Dollar Index 106.17, Oil $68.00, 10-year 4.18%, Silver $31.00, Platinum $960.00, Palladium $992.00, Copper $4.24, and Gold.... $2,653.44.

That's it for today.... Man it's Cold outside.... It won't be that cold where I'm going on Thursday.... Thank goodness! But there will be a chill in the air.... I got my Christmas CD's out yesterday, and will begin playing them today, starting with Beegie Adair's album, Winter Romance.... She's a wonderful piano player, and I could listen to this CD all day! The Pandora's Smooth Jazz Christmas station has changed a bit, and I no longer want to listen to it a lot.... So, CD's it is! A late-night game last night I couldn't stay up for the end of the MNF game.... Our Billikens basketball team won last night... It was their 3rd win in a row.... They have an exciting team, if everyone can remain healthy! Beegie Adair takes us to the finish line as she plays her version of the song: Snowfall.....  ( I first heard this song sung by Elvis and Juliet Prowse)... In GI Blues!  I hope you have a Tom Terrific Tuesday today, and please remember to Be Good To Yourself!