• Gold, Silver & euros bounce back on Tuesday.

  • Pound sterling defies logic... but is the opposite the new norm?

Good Day... And a Wonderful Wednesday to you! I experienced my first day down here this winter without sunshine yesterday, as it was cloudy all day... Back home I hear it was a sunny, warmer than usual, day... So good for them! Yesterday, I didn't spend enough time on Congratulating the University of Alabama and their college football Championship... What an offense they displayed every game all year long! Ohio St. didn't have an answer for Denvonta Smith... The Heisman Trophy Winner, and rightfully so! And since Alabama is in the SEC, (like Missouri) I root for them when they aren't playing Mizzou! The late great, Leon Russell greets me this morning with his song: This Masquerade... We're lost, in this masquerade...

Like the Good Witch, Glenda, who waved her wand, and told the Munchkins that it was all right now, that they could come out, Gold Traders waved their wands and told investors that the sellers were all gone now, and it was all right to get back in... Gold wasn't able to hold all of its early $16 gain yesterday, but did manage to gain $11.60, to close at $1,856.00, and Silver added $ .70-cents to close at $25.67... The euro also heard the all clear horn blaring and was able to add back 1 of the 2-cents it had lost Friday and Monday... The intervention to buy dollars and sell euros, as I described yesterday had come to an end, for now, that is... There's no telling if Treasury Sec. Mnuchin will get around to spending all of his Slush Fund, or not, before he leaves office next week, and former Cartel, I mean Fed Chair, Janet Yellen takes over...

Speaking of Yellen... The Good folks at Wallstreetonparade.com , wrote last week about Yellen, so lets step back in time and see what they had to say about Ms. "there will not be another fiscal crisis".... Here's Pam & Russ Martens: "Yellen needs to immediately come clean with the American people as to just what happened in 2018 after she left the Fed. As Treasury Secretary, Yellen would not only have control over the slush fund called the Exchange Stabilization Fund, which the New York Fed can use to trade in gold, stocks and currencies, but Yellen will also Chair the Financial Stability Oversight Council (F-SOC), which makes decisions on threats posed to the U.S. financial system by those very same banks that have provided millions to enrich Yellen."

But she won't, because no one is going to make her do that... And isn't that just shameful? Take in over $7 Million dollars in speaking fees to the casino banks that you're now going to be the head person on the oversight group... If I were still a young man with a wild temper, I would be cussing up a storm right now... But being more mature, in a way, I'm still going to go yell at the walls, once my wife wakes up! See how understanding I am? HA!

In the overnight markets, Gold has held steady, and is down just one Washington this morning, and Silver is down 25-cents, to start the day... And Ed Steer tells us this morning that, "The U.S. Mint is Out of 2021 Gold Coins Already" The euro ran into some more selling in the overnight markets, as the Asian and European traders didn't get the message that it was all clear now... HA!

One currency that I haven't talked about in a while is the pound sterling/ cable... Cable has really been on the rally tracks for a couple of weeks now. Each day when I list the currency prices, I say to myself, I need to mention this currency, and then forget to do that... But not today! I must have my thinking cap on! Who would've thunk that? That Chuck would have his thinking cap on? Well... any way, the pound is proving that it doesn't need a strong economy, and higher interest rates to rally... I find this to be very strange, in that the Bank of England (BOE) has their fingers on the negative rates trigger, and the markets don't seem to care... And can you blame them? With more than $18 Trillion in negative yielding bonds in the market, and Central Banks at either zero or negative with their base rates, it has become the "norm"... And that my friends, is a real shame... I'm just saying...

OK.. Just one more day until we will see just how many Trillions Joe Biden is going to add to our debt levels, and how much currency is going to need to be printed, and how many more Treasuries will the Cartel, I mean the Fed have to buy? Here's the thing that scares the bejeebers out of me... Once the size of the stimulus package is announced, one would think that Gold would take off to the moon... And while it should do that, the price manipulators know that too, and will do everything in their power to keep that from happening... And then the naysayers of Gold will say, "Look, the U.S. is turning on the printing presses and Gold can't rally".... Of course I hope I'm wrong on that, and the price manipulators stay away...

Speaking of price manipulators... OK, he's not or was not a price manipulator, but he was an enabler, so he's just as bad... Who am I talking about? Seems that the new president is going to name Gary Gensler as chair of the U.S. Securities and Exchange Commission,,, Here's what the GATA folks said about that, "Former CFTC exec who couldn't spot gold and silver market rigging to head SEC,," I find this news preposterous! Totally preposterous! The Reuters article that GATA highlighted, said that Gensler was known as a hard nosed regulator that would stand up to the Big Banks... Really? I mean Really? All the years he was at the CFTC (the commodities regulator) and never found one thread of evidence that price manipulation was going on, is going to be the head of the SEC? I'm getting some exercise this morning, as I shake my head in disbelief!

We've got Yellen overseeing the banks, and Gensler overseeing the brokerage houses... Neither one of them could find their rear-ends with both hands! I'm just saying...

The price of Oil keeps rising into new handles to trade in lately... The price of Oil this morning is trading with a $53 handle... For the first day in about 10, the yield on the 10-year Treasury didn't rise yesterday, and instead lost a few BIPs... Maybe the bond boys had gone too far, too fast with their daily increases of yield... Or, maybe they read the Pfennig, and saw where I said that Biden's stimulus was going to add to Treasury Bonds that the cartel, I mean the Fed will need to buy, and they backed off for now... The 10-year's yield is still negative when you take the current yield and subtract inflation. And that's something to think about...

Another thing to think about was an article I read yesterday that talked about how for the first ever, Russia owns more physical Gold than U.S. dollars... And the scales are really tilting toward more gold ownership and less dollar holdings... You may be thinking that this is just Russia, and they can't move the markets... And you would be right... But... Russia could get China to go along with them, and India, and even Japan, in owning less dollars.... And that list of participants in the dollarization would begin to grow, and grow...

The U.S. Data Cupboard finally has something for us today, after suffering through two days of little to no data, and Cartel, I mean Fed speakers by the boat load out speaking that included: Geroge, Mester, Brainard, Bostic, and Rosengren... All speaking on the economy, which they all think will rebound later this year...

I got a kick out of a comment by Cartel, I mean Fed Chairman, Powell, who said that "there was no economic impact from the Fed pumping Billions of dollars into Wall Street." He said that folks with a straight face, and no sign of giggling, or snickering... but inside he must have been doing both! Jerome Powell is a smart man, and smart enough to know that you don't pile Billions of dollars into Wall Street without causing impact! He knows that! But he's selling us a can of goods that's expired... And not one Congressperson, or man on the street, will call him on that statement. I call B.S.! Just look at the stock market's bubble... And while we're speaking of things the Cartel, I mean the Fed had caused... The housing Bubble goes along with the stock market bubble that's been blown even larger by ZIRP, and currency printing... Need I say more?

OK, back to the Data Cupboard! Today we'll see the color of the December Core Inflation, and the stupid CPI... (consumer inflation) Both will likely show inflation falling in December... In addition to those two prints will be more Cartel speakers: Harker, Brainard, and Clarida will be out telling lies about the economy...

To recap... Come out, come out, it's all clear now... Ding dong the witch is dead, the mean old witch the wicked witch. She's gone where the goblins go , she's gone, she's gone, she's gone... That's how Gold and the euro had to feel on Tuesday, and the intervention went away, and traders were able to mark up the two assets like they had been doing before the wicked witch (intervention & manipulation) appeared last Thursday... Wall Street On Parade has a problem with Janet Yellen, and Chuck has a problem with Gary Gensler... And it's all explained in the letter, above...

For What It’s Worth… OK, talk about losing your mind over something... This article talks about people that have forgotten their passwords, and are locked out of their Bitcoin accounts... And it's not just one or two that have done that! 

Here's your snippet: "People have lost roughly $140 billion in Bitcoin because they forgot their passwords or got locked out of accounts, and would-be millionaires are struggling to access their wallets.

People are watching Bitcoin prices rise as some struggle to recover millions of the cryptocurrency, according to The New York Times. Those who lost access to their Bitcoin are given 10 guesses before the content of their digital wallet is seized up and encrypted for good. Around 20% of the existing 18.5 million Bitcoin are in stranded wallets, worth roughly $140 billion."

Chuck again... Now that's a short snippet today! But it gets to the gist of the story, which is amazing to me that people wouldn't have written down their passwords, and then put that away in a safe place. But given they've been given 10 chances to unlock their account, they probably wouldn't remember where their safe place was... I'm not making fun of these people, I'm just saying that they're SOL on their Bitcoin...

Market prices 1/13/21: American Style: A$ .7738, kiwi .7181, C$ .7854, euro 1.2164, sterling 1.3669, Swiss $ 1.1251, European Style: rand 15.2907, krone 8.4886, SEK 8.3274, forint 296.11, zloty 3.7218, koruna 21.5095, RUB 74.05, yen 103.95, sing 1.3259, HKD 7.7538, INR 73.16, China 6.4646, peso 19.82, BRL 5.4395, Dollar Index 90.27, Oil $53.43, 10-year 1.12%, Silver $25.52, Platinum $1,074.00, Palladium $2,473.00, Copper $3.63, and Gold... $1,855.00

That's it for today... I was surprised the other day when I talked about Ohio St. that I didn't get some responses telling me how great their team was. I guess I have no readers that are OSU fans... (now I've goaded them into responding! HA!) 70,000 users of Twitter have had their accounts banned... Parlar had its cloud management taken away... And free speech is getting a very bad rap... What's going on in this country? Did you know that Thomas Jefferson fought the sedition Act, saying that it took away a person's free speech? I knew that reading that book on Thomas Jefferson would help me with something one day! When will they come for me? I'm going to shut down my Twitter account because of these actions taken by Twitter... Don't worry The good folks at FXStreet will still post my Pfennig on Twitter... But may be not after today, eh? The Doobie Brothers take us to the finish line today with their song from the Captain and Me Album: Dark Eyed Cajun' Woman... I hope you have a Wonderful Wednesday, and please Be Good To Yourself!

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