The Bank of Canada cuts rates again

Good Day... And a Tub Thumpin' Thursday to one and all... Well, my test results came back yesterday, and I was immediately put on antibiotics to combat my latest setback...And I still didn't get a good night's sleep last night, but I know, I know, patience is a virtue... And I sure have a lot more of that than when I was a young man.... My beloved Cardinals got shut out yesterday by the pond scum (Mets) That's a playful phrase that originated in the 80's... The Outfield greet us today with their 80's song: Your Love... 

The dollar started the day yesterday, on a down note, with the BBDXY down 2 index points, but as the day wore on, the BBDXY gained back 1 of those lost points to end the day at 1,266... No real data was printed, and nothing earthshattering happened... 

Gold fought through the gauntlet that the paper traders had set up for it and found a way to rally $19 on the day to close at $2,935. Silver had the same set up waiting for it, but it fought its way to gain 29-cents, and close at $33.29..

The STUPID CPI for Feb. Printed yesterday, and didn't show any increase in their inflation calc. I don't believe an item of their calculation, and neither should you! I do believe that John William at shadowstats.com has CPI (consumer inflation) around 8%... Well, that may be, but around here in S. Forida, I would say that inflation is more around 10%... 

And I found this on MarketWatch.com: "The slower pace of U.S. inflation in February is in line with the moderation seen over the past couple of years, yet it remains above the Federal Reserve’s target, as many areas of the consumer-price index have been sticky, according to BlackRock’s Rick Rieder.

The gain in the rate of inflation “has come down greatly from its pandemic-era, supply chain disruption highs, but still there are many areas of the consumption basket that have held at stickier levels,” said Rieder, BlackRock’s chief investment officer of global fixed income and head of the firm’s global allocation investment team, in emailed comments on Wednesday’s CPI report."

I told you in my abbreviated Pfennig on Tuesday that U.S. Money Supply is growing quickly, and that's a bad omen for consumer inflation... It's nice to see someone else use the term "sticky" when talking about inflation! 

The price of Oil remained trading with a $66 handle yesterday, and the 10-year Treasury remained trading with a 4.30% yield.

In the overnight markets last night.... The dollar gained back the 2 index points again, with the BBDXY at 1,268 to start our day today. A fire has been lit under Gold's price, as it is on the rally tracks this morning, gaining $19 to start the day. Silver is also on the rally tracks gaining 29-cents to start the day... The price of Oil bumped higher by a buck overnight and trades this morning with a $67 handle... And the 10-year Treasury's yield gained a bit more overnight and starts our day with a 4.33% yield... 

Well, Congress has come up with a "Continuing Resolution"... In other words, another Deficit Spending Bill to avoid the shutdown of Govt. That will happen if nothing was done... These dramas continue to come up every 6 months or so... I call it Kabuki Theater (lots of dancing and good times). The new "CR" will add an additional $2 Trillion in debt each year, and that's on top of where we are already, which is probably running over $2 Tillion for this year already... We need a hero... I'm holding out for a hero until the end of the night... (Bonnie Taylor) yes, we need for our POTUS to say, "no mas" on additional deficit spending, and stomp his foot down and say the "deficit spending stops here and now!"

The Bank of Canada cut rates another 25 Basis points yesterday, and they are foolishly thinking that they have defeated inflation... This comes after Trump backed off some of his 25% tariffs... Well, if and when he gets around to implementing all his proposed tariffs, then the Bank of Canada will rue the day they decided to cut rates... 

The euro saw some profit taking yesterday, and dropped back below the 1.09 handle, but still, this has been quite the impressive run for the euro... I read where traders are hesitant to move the euro higher in the face of a potential Trade War between the U.S. and Europe, after the POTUS implemented huge tariffs on all sorts of things that Europe exports to us... This tariff talk is really becoming a problem for not only trading of goods, but also the U.S. Treasury... 

How's that work Chuck? Well, grasshopper, I'll tell you, but first we'll hear the words of the great investment guru, Ray Dalio who said, "Bridgewater founder Ray Dalio on Wednesday warned that a significant supply-demand problem regarding U.S. debt could have a profoundly disruptive impact on the global economy.

It is the latest in a series of stark warnings about America’s mounting debt from the U.S. hedge fund billionaire, with the country’s national debt currently standing at more than $36.2 trillion.

“The first thing is the debt issue, we have a very severe supply-demand problem,” Dalio told CNBC’s Sara Eisen at CONVERGE LIVE in Singapore. ”[The U.S. has] to sell a quantity of debt that the world is not going to want to buy.”

He said this was imminent and of “paramount importance.”

Chuck again... I trust and admire Ray Dalio's thoughts, folks... It will become interesting if the U.S. can't find buyers for all their debt... Can you say QE?

The U.S. Data Cupboard doesn't have much for us today... The Weekly Initial Jobless Claims, and the PPI (wholesale inflation) I've been seeing the PPI prints rising in the last few reports, which is not a good thing for Consumer Inflation... And tomorrow's Data Cupboard will have the Consumer Sentiment, which is nothing more than the pulse of the stock market, and with the stock jockeys running for cover these days, I would suspect this print to be much lower...

To recap... Wednesday was a real yawner for me... The dollar wallowed around in the mud, God & Silver had to fight to get through the short paper gauntlet, The Bank of Canada cut rates again... Chuck wonders what the heck they are thinking? And a Continuing Resolution for keeping the Gov't running until Sept, was passed by Congress, and as usual Chuck takes his shots at the lawmakers who can't seem to not deficit spend!

Here's your snippet: "INTRO.

The paper gold system is breaking. The fuse was lit long ago -- now we’re at the keg.

2,000 tons of gold imported into the US. Who has that kind of pull? Not a hedge fund. Not a foreign buyer.

If it were anyone but the U.S. government, they’d have a knock at their door.

Silence = Sanctioned.

THE CRACKS IN THE SYSTEM.

Physical gold demand is off the charts -- LBMA stress, BOE delays, and COMEX deliveries. Metals are moving in the shadows.

Paper gold is the illusion. Too many claims, and not enough metal. The unwind has begun.

This isn’t just about gold, it’s about confidence. Once confidence collapses, the rush for real assets begins (Crack-up Boom).

Containment Mode: Authorities attempt to control gold prices through paper manipulation, coordinated central bank interventions, and liquidity injections. Short-term stability is prioritized, but underlying risks keep growing. If trust in financial markets holds, they buy time. If it falters, the next phase begins.

Paper Market Breakdown: Physical gold supply dries up, forcing bullion banks to scramble for metal at higher prices or settle contracts in cash. Spot prices decouple from futures as gold market credibility erodes. Does trust contagion spread beyond gold? A breakdown could shake confidence in broader financial markets.

The Endgame: A transition is coming -- whether by force or by design. The question isn’t if, but how fast it unfolds and who dictates the terms."

Chuck again... Now that's all pretty scary to me, but good scary... 

Market Prices 3/13/2025: American Style: A$.6287, kiwi .5697, C$ .6947, euro 1.0845, sterlig 1.2932, Swiss $1.1337. European Style: rand 18.4027, krone 10.7963, SEK 10.2073, forint 369.55, zloty 3.8735, koruna 23.1415, RUB 86.75, yen 147.88, sing 1.3359, HKD 7.7716, INR 87.00, China 7.2472, peso 20.16, BRL 5.8130, BBDXY 1,268.02 Dollar Index 103.82, Oil $67.25, 10-year 4.33%, Silver $33.29, Platinum $975.00, Palladium $943.00, Copper $4.87, and Gold... $2,947.19.

That's it for today and this week... I started the week with a short one, and ended the week with a long one... I hope to back to what is normal for me by Monday... My darling daughter and family will be arriving down here on Saturday, and then when they leave next Friday, my son, Alex and his bride, Grace will come down to celebrate my 70th Birthday... There I said it so now everyone knows... I may be 70 in human years, but I feel 85 in cancer filled years... And what better way for me to celebrate my birthday than at the ballpark! My appetite is beginning to come back so that's a good thing for the weight was dropping off me like flies... Harold Melvin and the Blue Notes take us to the finish line today with their song: If You Don't Know Me By Now.... I love this version of the song much better than the was redid in the 80's... I hope you have a Tub Thumpin' Thursday today, and please Be Good To Yourself!