Bad things keep stacking up against the Dollar

• Currencies and metals rally on Monday.
• Will we see 1,000,000 jobs taken away today?

Good Day... And a Tom Terrific Tuesday to you! My beloved Cardinals played in Seattle last night, so it came on too late for me to watch the entire game... I did wake up in the middle of the night to see that they had lost 4-2. When I turned it off they were ahead 2-0... UGH! Went out to dinner last night with our friends, Duane and Toni.. Fun times as always... This will be a quite long Pfennig today, because I've got a section that I took from the 5 Bullets letter, that I think is important for our country right now, and going forward... Spoiler Alert: the fertility rate, in the U.S. has fallen to historic lows according to the CDC... Elvis Presley greets me this morning with his ballad song: Are You Lonesome Tonight.

Well, the dollar was getting sold in the overnight markets Sunday night, and that selling carried through to the U.S. market yesterday... The BBDXY lost 4 Index points from Friday's Close, and Gold continued to take advantage of the weaker dollar...  There are a couple of the currencies that are really rising with the weaker dollar too, and they include: the euro, sterling, Swiss francs, Norwegian Krone, Chinese renminbi, and others to a lesser degree.

Gold gained $49 yesterday, and ended the day at $3,636... Silver also gained yesterday, and this time it was up 31-cents, to end the day at $41.36... Abd here's a note that the good folks at GATA sent me regarding Silver... They took it from Bloomberg.com:

" Surging lease rates for silver are once again upending the precious metals market, with traders fearing that possible US tariffs could squeeze already tight supplies in London as price dislocations re-emerge between key trading hubs."

You know, I get caught in this trap quite a bit often, in that I say that Gold gained... But in the end, it's the dollar losing value that is helping Gold to reach new highs... I'm just saying.

The price of Oil saw slippage yesterday after the Saudi's said they would ramp up production again this Autumn... The price of Oil slid to end the day trading with a $62 handle... And the 10-year continues to see its yield drop like a rock, as the yield ended the day with a 4.04% yield... And now.... The markets are thinking that a 50 Basis Point rate cut is coming instead of a 25 Basis Points cut.

In the overnight markets last night... The dollar got sold some more, with the BBDXY starting this morning at 1,197...  The currencies all look healthier than they've been in some time, and in my humble opinion, that will continue to take shape, as the dollar goes deeper into the new weak trend... The dollar is in deep dookie folks... I'm just saying.

Gold continues to shine, and is up $17 to start our day today, and Silver is flat to down 3-cents to start today... I have more on Silver later, so stay tuned... I really think that Gold is on a new upward phase, that will take it to new heights... Got Gold?  

The price of Oil remained trading with a $62 handle overnight, and the 10-year finally saw some sellers. The Bond Boys have really pushed the envelope of bond price appreciation ( yield loss), and maybe they said, "Hey! We're going too fast here, let's slow down"... The yield on the 10-year Treasury Bond starts today at 4.07%.

It was last week that I told you that Washington last month categorized Silver as critical to US national security... And I told you that it would end up being a very good thing for the Silver price...  This could very well be the beginning of the end for the SPT's, for if their borrowing costs keep going higher, it will put a damper on their profits.

A week ago, or so, I told you that France's PM made a very revealing speech about his country's finances or lack of them as it would be... And yesterday, he got canned! The country's lawmakers voted him out the door.. See what happens when you tell people the truth, but they refuse to hear it? Or refuse to accept the truth and still believe that their country is blessed and everything will turn out peaches and Cream.

OK... this is where I go off the rails a bit, but in the end you'll see what I'm getting after with this piece by David Gonigam in his 5 Bullets newsletter yesterday... So, take it away, Dave!

"A few days ago, The Washington Post got its hands on a five-page draft summary of a policy paper that Heritage has in the works. It blames the baby bust on “free love, pornography, careerism, the Pill, abortion, same-sex relations and no-fault divorce,” while calling for a “Manhattan Project to restore the nuclear family.”

Among the solutions it’s recommending to the Trump administration.

New government-seeded savings accounts for married people.

Redirecting child-care funding away from programs like Head Start and toward individual families.

An executive order requiring all proposed government policies and rules to “measure their positive or negative impacts on marriage and family.”

If this all sounds like government getting up in people’s business… well, it is.

One of the Post’s anonymous sources described an internal debate going into the document’s preparation. “That paper is not a compromise between the limited government folks and the big government folks. It is an outright steamrolling of the limited government folks.”

Heritage is glossing over the real problem — one your editor addressed head-on last year when JD Vance made news with his remarks about “childless cat ladies.”

The real problem is highlighted by a new and depressing Wall Street Journal-NORC survey.

Only 25% of Americans believe they have “a good chance of improving their standard of living” — an all-time low in data going back to 1987.

Nearly 70% believe hard work does not translate to getting ahead — a low in 15 years of survey data.

And most revealing… Over 75% doubt that children today will live a better life than their parents.

If you don’t believe your kids will live a better life than you… well, that’s a powerful disincentive to have kids in the first place, right?

That problem doesn’t get solved by new government-funded savings accounts.

It gets solved only when a middle-class lifestyle becomes affordable once again, and on a single income.

That means, among other things, an end to the health care cartel and the higher-education racket."

Chuck again... This article is much longer folks, but you get the gist... Couples just aren't having kids at the same rate as previously, and this will eventually come back to haunt the U.S.'s finances... Their Ponzi Scheme called Social Security, and other things.

Chuck again... In case you do go to the link, read the article, you might want to know how I took it... I loved it! And I agree 100%, and I especially loved this statement: “Artificial” is the antithesis of genuine, and any intelligence that is artificial is inherently the very opposite of intelligence." I rest my case... 

The U.S. Data Cupboard yesterday showed us that Consumer Credit (read debt) had exploded in July to $16 Billion, I say exploded because in June the number was $9.6 Billion... So, once again, I think that credit cards, lines of credit, refinancings, and other kinds of loans to create debt is going in the wrong direction, and illustrates the U.S. Consumer as tapped out of cash... 

Today is the day that we're supposed to be seeing the BLS make a downward revision, taking away 1,000,000 jobs that they created out of thin air, but no longer can validate... Like I said yesterday, 1.8 Million jobs have been taken off the board by the BLS, in the last two years, that is if the 1,000,000 jobs are really taken away... 

Again, I think the euro will be being pulled in two different directions going forward from the fallout from France, and the fact that the euro is still the offset currency to the dollar... Rather, I said last week, you might want to look at the Swiss franc, or even the Norwegian krone... Sterling is OK... but when the dollar really does a deep dive into the weak dollar trend its beginning now, you'll be able to pick out a currency that you like, and watch it gain... At least that's what happened in the last weak dollar trend... 

But, if you're full of risk... Then I'll tell you that traders are betting that the euro will rise to 1.20... The next stop for the euro is 1.18, where a ton of stop loss orders lie, and that could really propel the euro higher...  Just a fair and balanced opinion of the euro , what else would you expect from me?

To Recap... Consumers are spending like there's no tomorrow... The dollar is getting taken to the woodshed... Gold & Silver are the shining lights of investments... Chuck carries on about fertility rates, and finally... is the BLS going to announce a downward revision to job creation for this year of 1,000,000 jobs today?  

Here's your snippet: " Worries over inflation, deteriorating U.S. fiscal health, Federal Reserve independence, and geopolitical instability are raising questions about the stability of long-term Treasuries, traditionally the world's safest asset. In response, many central banks are turning back to that "barbarous relic", gold.

The fortunes of gold and government bonds have diverged sharply this year, a split highlighted this week as the price of bullion struck a new high and many long-dated bond yields hit levels not seen in years or, in some cases, ever.

U.S. Treasuries haven't sold off nearly as sharply as European or Japanese bonds, largely because U.S. debt still enjoys solid underlying demand from central banks and other official institutions managing foreign exchange reserves.

But Treasuries have essentially been "treading water" in global reserve portfolios in recent years, while central banks' gold holdings have mushroomed, thanks to accelerating demand and soaring prices.

Gold has recently surpassed the euro to become the second-largest global reserve asset after the U.S. dollar and, for the first time since 1996, gold represents a bigger share of central banks' reserves than Treasuries.

Central banks now hold 36,000 tons of gold, according to a European Central Bank study, having hoovered up huge volumes since the post-pandemic inflation spike and Russia's invasion of Ukraine in 2022. They have increased their holdings by more than 1,000 metric tons in each of the last three years, a record pace and double the average annual purchases in the preceding decade.

With the price of gold currently above $3,500 an ounce - up a whopping 35% so far this year - central banks' gold holdings are now worth around $4.5 trillion. That's significantly more than their $3.5 trillion stash of Treasuries.

Moreover, Treasuries' share of total reserves has been shrinking in recent years. It is now only 23%, by some measures, down from previous peaks of more than 30% in the 2010s, and below gold's current 27% share."

Chuck Again... let me ask this one more time.... Got Gold?

Market Prices 9/9/ 2025: American Style: A$.6611, kiwi .5951, C$ .7347, euro 1.1748, sterling 1.3569, Swiss $1.2599, European Style: rand 17.4712, krone 9.9618, SEK 9.3673, forint 334.83, zloty 3.6223, koruna 20.7148, RUB 83.78, yen 146.60, sing 1.2809, HKD 7.7887, INR 88.11, China 7.1212, peso 18.62, BRL 5.4195, BBDXY 1,197, Dollar Index 97.41, Oil $62.78, 10-year 4.07%, Silver $41.33, Platinum $1,405.00, Palladium $1,162.00, Copper $4.55, and Gold... $3,653.

That's it for today... Another absolutely beautiful day here in my little river town... I sat outside for 2 hours reading... The doctors have me on steroids right now, tapering down at this point, so in taking them, I no longer need an afternoon nap! I do have problems falling asleep at night though... But too much longer and I'll be off them. At least, I'm eating again... Two weeks ago, I wasn't eating much, and my weight had fallen dramatically, to a level I hadn't seen since I was 18 in High School! The doctor told me to STOP losing weight! Not that I was thin in any stretch of the imagination, just that losing it so quickly wasn't healthy... Did I ever tell you that I wrestled in H.S.? I wrestled the 185 weight class, but only weighed 172... It was difficult to wrestle someone at 17-18 years old that had more than 10 lbs of muscle on you! I did win a few matches... I was never in better physical shape than when I wrestled! Sugar Ray takes us to the finish line today with their song: Every Morning... I hope you have a Tom Terrific Tuesday today, and please Be Good To Yourself!