Has the Fed been hacked?

• Currencies and metals rally on Monday.

• But get sold in the overnight markets.

Good Day... And a Tom Terrific Tuesday to you... Well, my beloved Cardinals found a way to eke out another one-run win last night VS the Braves... Why is that the 9th inning doesn't ever seem to be difficult for the other team, but for my Cardinals it's like pulling teeth? Oh well, a win is a win... ELO greets me this morning with their song: Can't Get It Out Of My Head.

That describes me in a nutshell... I get something in my head, and I can't ever get it to leave! Like why the dollar continues to get bought, when all the dark clouds are forming ahead for the greenback... Nevertheless, dollar buying continues... The dollar was getting sold yesterday morning when the NY traders arrived at their desks, and then the dollar kept getting sold, but not my a huge amount and the BBDXY ended the day at 1,264.50, down a total of 4 index points since Friday.

The euro trades with a 1.07 handle again today, and the rest of the currencies are pretty much unchanged, except the Petrol Currencies, that include the ruble, real, loon, sterling, krone and peso, whom have gotten a boost from the price of Oil's rise again... Maybe, the price of Oil can retain its gains this time, and that some egghead figured out the summer driving season is upon us.

Gold gained $15 on the day, and Silver gained 16-cents... Gold closed at $2,335.40, and Silver closed at $29.61... You know it was just a week or so ago that Silver had crossed the $31 handle... But the short paper traders couldn't have that, now could they? 

Speaking of short paper traders... The good folks at GATA sent me this article that pretty much says exactly what I've been telling you all these years, about how the Gov't is behind the Gold price suppression. The Chinese know it like that, and here's the cable from China to the D.C. From Wikileaks... " cables came from the U.S. embassy in Beijing, were sent to the State Department in Washington, and included English translations of commentaries from Chinese government-controlled news organizations about U.S. gold price suppression policy.

"The U.S. and Europe have always suppressed the rising price of gold. They intend to wea ken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. 

"China's increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi."

Chuck again... I know that the main media won't touch this article, and there won't be any investigative journalists that take the ball and run with this... So, consider yourself privileged, that at least you knew one day that it would all be proven true, and that you dear reader read it here first... many years ago!  

In the overnight markets last night... well, the dollar selling stopped... I just don't get what these traders are doing these days, one day they sell dollars, the next day they buy them... Crazy... (Patsy Cline)... The BBDXY has gained 1 index point overnight. Before I said my prayers and went off to bed last night, the BBDXY was still getting sold, so something changed the sentiment of the overnight traders... The Price of Oil remained trading with an $81 handle, and that's helping the Petrol Currencies fight off this dollar buying to start our day today...

Gold is down $6 to start our day, and Silver is down 14-cents... Those are levels that can be quickly turned around easily, so buy early if you're looking to buy at cheaper prices, because you never know, what could happen today... All those Fed Heads speaking could slip up and mention a rate cut, and then it would be a turnaround Tuesday for sure in the metals...  

The 10-year is trading with a 4.23% handle this morning... Those bond boys just won't give up the ship will they? 

I read this morning that traders are taking off their bets on the Mexican peso, and the turnaround is something to write home about... In other words, there are a ton of trades betting on a rise in the peso that have been taken off the board... That doesn't spell any quick turnaround for the peso, folks... 

And the poor Japanese yen is seeing additional selling despite the jawboning by the Bank of Japan (BOJ)...  I read this morning that traders of yen are now eyeing 170... The yen hasn't even fallen to 160 as yet, but these boys and girls are already eyeing 170... The weakness of the yen, could be the reason why the dollar traders stopped selling dollars? 

You see, the BBDXY dollar index is made up of the U.S.'s largest trading partners, of which Japan is one those components of the index.

I'm full of you know what and vinegar today, so say with me here, because this has been something that I've talked about for years now, and that is derivatives... Warren Buffett called them "weapons of mass destruction"... So, here is Pam & Russ Martens at www.wallstreetonparade.com  "As the chart published with this report shows, as of December 31, 2023, Goldman Sachs Bank, JPMorgan Chase Bank, Citigroup's Citibank, and Bank of America held a staggering total of $168.26 trillion in derivatives out of a total of $192.46 trillion at all U.S. banks, savings associations and trust companies. 

That's four banks holding 87% of all derivatives at all 4,587 federally-insured institutions in the U.S. that existed as of December 31, 2023.

Now it would appear that some market-savvy bank examiner embedded in one of those megabanks has had an epiphany and decided to ask the question: "How is it possible that all four of these megabanks with trillions of dollars in derivatives happened to be on the correct sides of these trades during the fastest and steepest interest rate increases in 40 years?"

Multiple bank counterparties to these trades should be reporting massive loss es and yet all we hear are crickets. ..."

Chuck again... Tsk, tsk, tsk... But think about that for a minute... Who's holding the other side of these derivatives, and why haven't they been reporting huge losses? I mean just on the bets on interest rates, the holders would be at huge losses... And that's just the tip of the iceberg.

It's like the letter today is nothing but FWIW articles... Well, when they hand you lemons, what do you do? I make lemonade... Hard lemonade at that! 

There's just not that much out there regarding the markets that you haven't already read about here in the Pfennig.

The U.S. Data Cupboard has a surprise for me this morning, in that the Case/Shiller April Home Price report will print... I had missed that one yesterday in reporting the data prints this week... We'll also see the color of the latest Consumer Confidence I'll eat my hat if this report shows a gain... Ok, I won't eat my hat, that's just an old saying, from an old man! In addition to the prints today, there will be some Fed Heads speaking.

To recap... The dollar was getting sold when we started the day yesterday, and continued to get sold, albeit not by a wide margin, but sold nonetheless... Gold gained on the day, and Silver gained too... Wikileaks released a cable from China regarding their view on price suppression, check it out above if you scanned over it... It all plays out just like I first described it many years ago in the Pfennig... The letter today is more or less a day of FWIW articles... Chuck's busy making hard lemonade! 

Here's your snippet: "A Russian hacking organization appears to be in the process of blackmailing the Federal Reserve. 

On June 23, 2024, the criminal organization LockBit 3.0, a Russian ransomware cybercriminal group, publicly stated that it hacked the Federal Reserve and implied it would release over “33 terabytes of juicy banking information containing details of Americans’ banking secrets” unless a large ransom is paid.

More specifically, the cyber-terrorist organization says the Federal Reserve and the U.S. government have until tomorrow afternoon, June 25, at 4:27 p.m. EDT to comply with its undisclosed monetary demands.

A LockBit Tweet last night alludes to the hacking group’s displeasure about the Federal Reserve’s response to their demands:

“You better hire another negotiator within 48 hours, and fire this clinical idiot who values Amercans’ bank secrecy at $50,000.”

Chuck again... So far the Fed/ Cabal/ Cartel have not issued any information on this hacking attempt... This is not good folks... I'm just saying... I guess we'll find out later today if this was for real or not.

Market Prices 6/25/2024: American Style: A$ .6651, kiwi .6121, C% .7315, euro 1.0715, sterling 1.2687, Swiss $1.1185, European Style: rand 18.1667, krone 10.5779, SEK 10.4751, forint 369.85, zloty 4.0126, koruna 23.1719, RUB 87.47, yen 159.47, Sing 1.3555, HKD 7.8075, INR 83.43, China 7.2526, peso 18.06, BRL 5.3910, BBDXY 1,265.16, Dollar Index 105.59, Oil $81.11, 10-year 4.23%, Silver $29.47, Platinum $1,041.00, Palladium $961.00, Copper $4.41, and Gold... $2,329.88.

That's it for today... Well, 2 down, 2 to go... I didn't get any resolution on my health problem yesterday, and I'm not a happy camper about that! Maybe that's why I was so full of you know what and vinegar this morning! Today is my first nephew's birthday... Happy Birthday, Eddie... Eddie is a grown man with a family now... I don't pretend to know all my nieces and nephew's birthdays, but for some reason this one is etched on my mind (see I can't get it to leave! HA!) I guess I was never really close them and that's my fault... I was a working man, and I'll say no more! I know my kids birthdays, my wife's birthday, my grandkids birthdays, and my siblings... I say that's enough memory space taken up! OK, Chilliwack takes us to the finish line today with their great song: Fly By Night... I know my good friend, Rick will like that one! I hope you have a Tom Terrific Tuesday today, and that you will please Be Good To Yourself!