The broken record keeps playing the same song – FXStreet

Good day... And a Wonderful Wednesday to you... I watched my beloved Cardinals last night win their game against their foes across the state. I kept switching back and forth to the Blues game that they also won in Boston... So a good night for St. Louis sports teams and fans... I had to chase the squirrels out of my gas barbeque pit again yesterday, they had built another nest in the pit, and there were 3 baby squirrels in there that I had to chase out, don't worry squirrel lovers, the mama came back and got her babies and were off to build another nest... Little Feat greets me this morning with their rock classic song: Dixie Chicken...

Well, the dollar got sold for a brief time yesterday, after the consumer inflation data printed, and showed even in the watered-down, stupid CPI, prices increased to 8.5%, the highest level for CPI since 1981, and back then the number was on its way down, not on its way up, like now. But, that selling of the dollar didn't last too long and by the end of the day the dollar was getting bought again, and the BBDXY dollar index a 1 1/4 points gain...

Gold continues its march to higher ground albeit in small amounts, but gains nonetheless. I find this dollar strength to be stranger than fiction, but I also view Gold's rise while the dollar is so strong to be curious, indeed... Gold gained $12.10 yesterday to close the day at $1,967.20, and Silver turned around its early loss of 10-cents, to show again on the day of 25-cents, which put Silver's closing price @ $25.43.... Bonds rallied yesterday ( was the Fed/Cabal/Cartel buying again?).... And Oil also rallied to move back above $100.....

In the overnight markets last night... The broken record keeps playing the same song, as the dollar continues to get bought, along with Gold & Silver... Gold is up $13, and Silver is up 41-cents this morning... My spider-sense is tingling and I'm going to go out on a limb here and say that Gold & Silver have turned the corner, and are on their respective ways to much higher ground. I also have the thought that Oil is moving higher too...

Yesterday, the gov't's watered down, stupid CPI showed that inflation for March rose at the fastest clip since 1981, with the difference between then and now being that inflation is now on its way up! The CPI was 8.5% for March year on year... And that report got the fires roaring under Gold, and Oil...

Well, the gov't's inflation numbers did not disappoint, were still looking for additional price increases because if you recall, PPI ( wholesale inflation), to work its way through to consumer inflation.... It's really gotten out of hand, all this inflation... But have no fear, folks, Mighty Mouse is going to save us with two, back-to-back rate hike beginning this month.... Yeah, that should do the trick....NOT!

I think the thing about hiking rates 50 Basis Points at a time, that's being shrugged off is the effect that the rate hike will have on the already, stumbling, bumbling, fumbling economy.... Recall the Jerome Powell promised us the he could fight inflation and deliver a soft landing for the economy... I'm from Missouri, so he's going to have to show me, how that's done, because I'm not buying what he's selling... The boys and girls at the Eccles Building are so far behind the inflation 8-ball.

The Reserve Bank of New Zealand (RBNZ), being a proactive bank, hiked their Official Cash Rate (OCR), yesterday, another 25 Basis Points to bring their OCR to 1.50%...

And in the U.K. their consumer inflation report for March was just about as bad as it was here. U.K. inflation rose to 7%, March year on year, and is the fastest rate of inflation since 1992... And after I tell you this little ditty, I bet you'll say to yourself or maybe out loud,, "That's what we should have done in 2008 and now!"

Swiss judges sentenced a banker to three and three-quarters years in prison as it found him guilty of fraud and other counts, in a trial that has gripped the nation. He was a former Swiss 'banker of the year'

Man can you imagine, what the world would be like if the U.S. gov't, lawmakers, etc. had started down the list of corrupt bankers back in 2008, and started throwing them in jail? And then continuing their jobs through to today, I'm thinking of all the fraud that Wells Fargo has been charged with, and JPMorgan's list of bad things, among others... The world would be a better place, the financial system would be better/ stronger, and future bankers would think twice before going down that road... I'm just saying...

OK... so remember last spring when I went down the road of talking about defaults and digital currencies, etc? To jog your memory, I talked about how with all the debt in the world, that eventually we would see a country default, and then another and another, and didn't leave out the U.S. defaulting... Well, here are a year later, and not one country but two are on the edge of defaulting... Russia has 30 days to come up with the hard assets to pay their bond holders, and Sri Lanka is taking steps to avoid default, but I doubt they'll get it worked out...

This is not to be taken as something that can be shrugged off folks... I can't put enough emphasis on this, because this is just the beginning... Too much debt in the world is going to come home to roost, this summer, making this summer to be known in the future as the summer of debt default...

On a sidebar, this June we will celebrate the 55th anniversary of the Summer of Love... Where were you in 1967? Maybe you participated in the Summer of Love? I know I've lost quite a few of you, for you were too young, or not even born yet... But this was real, folks...

OK... Well, I've already gone over the stupid CPI report that printed yesterday... Today's Data Cupboard is basically empty, and in need of restocking! And restocking it will get, as tomorrow's Data Cupboard will have Retail Sales for March along with other prints. The BHI (Butler Household Index) indicates that March Retail Sales will be better than February's that were nearly flat...

I'm talking about tomorrow's Data Cupboard, because.... I won't be writing tomorrow. You probably don't want to know why, but I'll tell you any way. Remember those spots on my bald head that I told you had gone, after I applied the magic lotion the doctor gave me? Well, they're back and worse than before, so the doctor said, get your self in here and let me look at them. And so that's where I'll be tomorrow bright and early in the morning... So now, you know!

To recap... The broken record keeps playing the same song, that goes like this: the dollar, Gold & Silver continue to get bought... It's a catchy tune but I don't think you could dance to it! New Zealand hike their OCR, and in the U.K. their inflation is soaring too... Faster than any time since 1992... So the Bank of England is far behind the inflation 8-ball, just like their brothers in the U.S.

Here's your snippet: "The tiny island nation of Sri Lanka in the Indian Ocean released a statement Tuesday that said it would default on its foreign debt, including bonds and government-to-government borrowings, amid its worst economic crisis in over seven decades.

Sri Lanka's finance ministry said it "has had an unblemished record of external debt service since independence in 1948."

A confluence of factors has drained the South Asian island nation's foreign exchange reserves by more than 70% since the virus pandemic began, including the collapse in tourism and poorly timed tax cuts.

"Recent events, however, including the effects of the Covid-19 pandemic and the fallout from the hostilities in Ukraine, have eroded Sri Lanka's fiscal position that continued normal servicing of external public debt obligations has become impossible," the statement said.

Last month, the Washington-based International Monetary Fund (IMF) warned Sri Lanka's debt is unsustainable:

"Although the government has taken extraordinary steps in an effort to remain current on all of its external indebtedness, it is now clear that this is no longer a tenable policy," IMF said.

The socio-economic crisis unfolding on the island nation of 22 million people has already sparked mass unrest. It suffers from widespread food shortages, out-of-control inflation, and rolling blackouts."

Chuck again... Yes, this is just the beginning folks, buckle yourself in snuggly, and keep your arms and legs inside the car at all times...

Market Prices 4/13/2022: American Style: A$ .7412, kiwi .6772, C$ .7901, euro 1.0828, sterling 1.3006, Swiss 1.0695, European Style: rand 14.5050, krone 8.8383, SEK 9.5418, forint 348.73, zloty 4.2861, koruna 22.5605, RUB 82.59, yen 125.89, sing 1.3752, HKD 7.8392, INR 75.97, China 6.3680, peso 19.76, BRL 4.6761, BBDXY 1,210.64, Dollar Index 100.39, Oil $102.27, 10-year 2.72%, Silver $25.76, Platinum $980.00, Palladium $2,459.00, Copper $4.66, and Gold... $1,977.30

That's it for today... I'm late, I'm late for a very important date... I'm having so many issues with my laptop, that it takes me about 2 hours longer each day to get this letter out than normal... I know, buck up and buy and new one, right? Ahh, grasshopper it's not that easy... All the Cardinals' runs last night came by the home run... Now I have nothing against home runs, but I prefer old time baseball, with hit and runs, bunts, sacrifices, etc. That brand of baseball produces more action, and less sitting around waiting for a 3-run homer... I'm just saying... ELO (Electric Light Orchestra) takes us to the finish line today with a live version of their song: Can't Get You Out of My Head.... I hope you have a Wonderful Wednesday today, and please remember to Be Good To Yourself!

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The broken record keeps playing the same song - FXStreet