It's FOMC day

• The Dollar bounces back a bit on Tuesday.

• What's up with China?

Good Day... And a Wonderful Wednesday to you! I was all alone last night, and forgot about eating dinner... About 8:30 last night my stomach was telling me that I hadn't eaten... But it was too late at night to eat then... But I had a couple of saltines and went to bed... I had to stop taking the chemo already... With this chemo I have to monitor my blood oxygen level... And it has already dropped below the min that my oncologist set... So... Once again, I'm chemo free... I don't know what she has planned for me, but this chemo just doesn't seem to get along with my body... Linda Ronstadt greets me this morning with her song: Blue Bayou... (This is one of her best recordings, I must say!)

Well... The waiting around for the FOMC to announce their rate decision, that will come later today, finally got to traders who couldn't stand the sitting around twiddling their thumbs... So, they decided to take some profits in Gold & Silver, and buy a dollar or two... 

The BBDXY gained 2 index points yesterday... And Gold lost $12 on the day to close at $2,570.90, and Silver lost 8-cents to close at $30.73... As I said yesterday, it appeared that traders didn't want to go too far out on a limb with the FOMC Meeting looming over the markets, and so the day went along with no big moves... Some profit taking in the metals, and some readjusting positions in dollars... 

Here's Ed Steer in his letter this morning regarding the metals: "It was yet another day where both gold and silver would have certainly closed up on the day, regardless of what the dollar index was doing, but the collusive commercial traders of whatever stripe were there to ensure that it didn't happen.

But, like on Monday, volumes in both were on the lighter side once again, so 'da boyz' had little trouble having their way with them for the second day running -" 

Chuck again... Yes, even in a day of light volume, the short paper traders were out and about... Geez, I wish these guys would go find a hole to climb in an remain there! 

The currencies are all still looking healthier, but they are very timid in moving away from their sick beds... Again, it's all about the FOMC later today... There's something going on in China these days that has Chuck scratching his bald head... You may recall me mentioning the other day that the renminbi had been allowed to gain VS the dollar recently... Well, yesterday the renminbi was allowed to gain more VS the dollar as it was moved to a 7.08 handle... Again, most of the reports I read tell me that China's economy is hurting... But that' can't be true if the Peoples Bank of China is allowing their currency to get stronger VS the dollar... There's something going on here, folks, that I'm not seeing right now, but you can be sure that I'm on it!

The price of Oil bumped higher and ended the day trading with a$71 handle, and the 10-year saw a little buying, and with that a lower yield of 3.64% to end the day. 

In the overnight markets last night... From the looks of things in the currencies, there was little movement overnight... I say that because the BBDXY is not available this morning... This happens every now and then, so we carry on despite our short comings....

The old Dollar Index is up a couple of basis points to start the day today, which will be dominated by the FOMC Meeting announcement this afternoon. Gold is up $5 to start the day today, and Silver is down 15-cents... Another day of strangeness in the metals...

You can expect the short paper traders to be standing by awaiting the FOMC this afternoon... Either way, they'll be in the markets with their arms full of short paper trades... If the Fed gives us a Jumbo Rate cut, the short paper traders will be in to keep Gold & Silver from running higher, and if the Fed gives us a 25 Basis Points rate cut, and says that they will be data dependent for future cuts, the short paper traders will assist those selling Gold.... So, either way, it looks like a day where Gold & Silver need to take cover, batten down the hatches, and wait for the Good Witch Glinda to tell them when it's safe to come out again... 

The price of Oil slipped back to trade with a $70 handle this morning, and the 10-year's yield rose to 3.68%... The traders in both these asset classes are not taking any chances out on a limb, with the FOMC hanging over them like the Sword of Damocles... 

Very Longtime readers know that I've been banging the drum about our country's national debt for many years now...  And each year, the deficit spending grows, and so does out national Debt... I remember a time back in the Bush II years, when the National Debt was reported to be $7.5 Trillion... And I thought it was too high then! 

The beat goes on...... The beat goes on... In August, the U.S. took in $307 Billion in taxes and fees... But spent $687 Billion, thus another deficit spending month of $380 Billion.... Now, stay with me here... If the U.S. deficit spent $380 Billion every month, the addition to our National Debt would be $ 3.696 Trillion...  So, I guess we need to be happy with little favors, that even though our addition to the National Debt will be more than $2 Trillion this year, it isn't $3.7 Trillion!

We, as a country, that is if we don't default before then, will be at $50 Trillion in the next decade... The costs of servicing the debt (interest payments) will take away spending on other things that the lawmakers like to spend money on... Whatchamcallis and thingamajings... Giving money away for first home buyers, and the rest of the stupid deficit spending they like to do... So, bye, bye, Miss American Pie... (Don McClean) to all that stuff... 

Unfortunately, I believe we'll have defaulted on our debt before we get to $50 Trillion... I'm just saying.... Got Gold? 

Speaking of Gold... I had a dear reader write to me and ask me to talk about "If the government is successful in forcing us into CBDC’s, then my gold will be by default, under their control when I need to sell some..

So other that barter, what good will it be? How is it protecting my saving in this scenario? "

Chuck again... Well, in the meantime, Gold is there to protect your wealth from a weaker dollar, and inflation... Both of which are coming... It will still protect you from inflation that will be rampant after going to CBDC's because lawmakers will see this as all green lights ahead to keep deficit spend... Gold will always be worth something to you, history shows us that to be true... 

Speaking of CBDCs... Good friend, Dennis Miller and I worked together on an article that he will be putting out next week, about digital currencies... Be sure to stay tuned, same bat channel, same bat time, next Thursday... 

In May of 2020, I first wrote about digital currencies and told you then that they would be coming to the U.S., and that it would then be time to call your representatives and tell them "no!"... apparently, this was not done, or the representative didn't listen to you, because digital currency is now onshore... This was a case of something being evident, but not imminent... Well, it's becoming imminent sooner than you would imagine.... The great John Lennon wrote a song titled Imagine... Imagine no possessions, wonder if you can...  

Those words to the song remind me of the book that I talked about last winter that I read by David Rogers titled: The Great Taking...  I won't spoil the book for you, but when you do read it, you'll see how I put two and two together here... Got Gold? 

The U.S. Data Cupboard yesterday, had the August Retail Sales, which were positive by .1%, but as a read reader pointed out to me: "when they are adjusted for inflation, they were neutral or DOWN. "  So, the BHI wasn't so wrong after all! That's good to know!  We also saw Industrial Production turn around July's -.9% print, and book a positive gain of .8% in August... More Election Year math? Probably... 

Today's Data Cupboard has the FOMC meeting, and that's it, except for some housing data... 

To recap... Traders got tired of sitting around twiddling their thumbs, and decided to buy some dollars, Not much, mind you, and take some profits in the metals... Chuck has some hair-raising numbers on our Nation's Debt in August... YIKES! And Chuck talks about CBGC's and other things on his mind this morning... 

For What It's Worth.... Ok, I had to pick out stuff that I wanted to highlight from this article by Russ & Pam Martens, that talked about fraud in cryptocurrency trading,

Here's your snippet: "Last Thursday, the Senate Banking Committee held a hearing on combating financial frauds against consumers. During the hearing, Senator Jon Tester of Montana held up his mobile phone and said: “Every day, every day, I either get an email or a phone call from somebody who’s trying to screw me out of my money.”

According to the FBI, it is highly likely that a large number of the people trying to screw both you and Senator Tester out of your money are crypto fraudsters. On September 9, the FBI released its 2023 report on crypto fraud, which made the following findings:

“In 2023, the Federal Bureau of Investigation (FBI) Internet Crime Complaint Center (IC3) received more than 69,000 complaints from the public regarding financial fraud involving the use of cryptocurrency, such as bitcoin, ether, or tether. Estimated losses with a nexus to cryptocurrency totaled more than $5.6 billion.”

“While the number of cryptocurrency-related complaints represents only about 10 percent of the total number of financial fraud complaints, the losses associated with these complaints account for almost 50 percent of the total losses.”

“The decentralized nature of cryptocurrency, the speed of irreversible transactions, and the ability to transfer value around the world make cryptocurrency an attractive vehicle for criminals, while creating challenges to recover stolen funds.” (Bold emphasis on the word “irreversible” was added by Wall Street On Parade.)"

Chuck again... OK, wasn't the main reason for taking away cash in favor of digital currency about how cash was so easily used by criminals?  But see what happened here? It's now attractive for criminals too, but it's just passed on by like a summer day... I shake my head in disgust here folks...  Because it was all a lie, to get you away from the real reason they wanted a digital currency, and that is: for control over your spending... I'm just saying.

Market Prices 9/18/2024: American Style: A$ .6775, kiwi .6222, C$ .7357, euro 1.1120, sterling 1.3211, Swiss $1.1844, European Style: rand 17.5829, krone 10.5824, SEK 10.1876, forint 354.48, zloty 3.8952, koruna 22.5374, RUB 91.84, yen 141.88, sing 1.2940, HKD 7.7933, INR 83.75, China 7.0835, peso 19.13, BRL 5.4864, Dollar Index 100.86, Oil $70.67, 10-year 3.68%, Silver $30.58, Platinum $978.00, Palladium $1,113.00, Copper $4.29, and Gold $2,575.00.

That's it for today... Man, I don't know what or how I did this, but I took a chunk out of my chin, shaving on Monday... Now it looks like I got into a fight with Mike Tyson, and he bit my chin! My beloved Cardinals didn't find their bat until late in the game yesterday, but not too late to pull out a win VS the Pirates... Cardinals fans have taken to not attending the games, which is weird, because even in the depths of the 70's, the stands were always pretty full... Fans are protesting the Gen Manager, and Field Manager... It will be interesting to see what happens there in the off-season... Sugar Ray takes us to the finish line today with their song: Every Morning... I hope you have a Wonderful Wednesday today, and please Be Good To Yourself!