FOMC Minutes show most Fed Heads fear inflation

• FOMC Minutes show most Fed Heads fear inflation.
• Gold & Silver recover from Tuesday's SPT event.

Good Day... And a Tub Thumpin' Thursday to one and all! Well, my eye doctor said I have a good strong eye now, so I have that going for me! He did tell me again that he is worried about me not wearing plain glasses to protect my good eye... I'll think about it... I[m getting used to wearing them only when I read, which is a lot any way! My beloved Cardinals took 2 of 3 from the Marlins and now move north to Tampa Bay... Yesterday, was my darling daughter, Dawn's Birthday... I still remember the night and early morning when she was born... She had a full head of black hair, that by age one had changed to blonde... Happy Birthday, Boo! One of my fave Uriah Heep's songs greets me this morning... Stealin'.

Well, another day closer to the Jackson Hole shindig, didn't change much from the day before when the markets failed to move much... The FOMC meeting Minutes printed from their last meeting, and they reflected the opinion of the FOMXC Committee members that inflation is still a problem and that it's most likely to get worse, and that the Ma and Pa's are going to feel the brunt of the hurt from inflation.

Does that sound like a Committee that's ready to cut rates? Not to me... But then the Committee members are feeling tons of pressure from the POTUS to cut rates... Wait! Isn't the Fed/ Cabal/ Cartel supposed to be independent? Don't tell Janet Yellen that, because late in Trump's first campaign, she hike rates for no apparent reason, other than to get the new president off on bad foot... I'm just saying.

OK, well, because some of the traders out there still have some gray matter, and come around to my way of thinking every now and then, they took the FOMC's notes and said, " no rate cut, yet"... And that helped the dollar bugs and the BBDXY gained 1 index point on the day to end the day at 1,206... Now, I'm saying that there will be no rate cut next month, what I am saying the idea of a rate cut is more questionable now.

Gold recovered from the engineered takedown the SPT's gave it on Tuesday, when it was down $17, and came back strong by gaining $32 yesterday to close at $3,346. Silver had a tough time on Tuesday too, losing 65-cents, but gained most of it back yesterday, gaining 53-cents to close at $37.85.

The price of Oil ended the day with a $63 handle... And the 10-year Treasury Bond saw some buying (from whom? I can only guess who!) and the yield ended the day at 4.30%. 

In the overnight markets last night... The Minutes causing dollar buying carried over to the overnight markets last night, and the BBDXY is up 2 index points this morning at 1,208... OK, this is when, in the past, the Fed Heads would "surprise" the markets, and then sit back at the Eccles Bldg. And laugh HAHAHAHAHA! So, this could be the trap the Fed Heads are setting... That everyone gives up the ghost on a rate cut next month, but the Fed Heads surprise the markets with one! 

I wouldn't put it past them to do that... I doubt they will though... I'm just saying.

Gold is seeing some selling this morning is down $7 to start the day, while Silver is up 4-cents... I would be nice to see a more than one day and done rally for the metals, now wouldn't it? The price of Oil remained trading with a $63 handle overnight, and the 10-year's yield didn't move and starts today at 4.30%.

Well, the Reserve Bank of New Zealand (RBNZ) cut rates yesterday, to 3.0%... Their statement centered around how while inflation is still in the 2-3% range, their models have inflation lowering toward 2%, So, they went ahead and cut rates now... I think they will rue the day that jumped the gun... I'm just saying... And the markets are thinking correctly as they sold kiwi after the RBNZ debased the currency.

And remember when I said that the Bank of England (BOE) would rue the day that they jumped the gun and cut rates too soon, that inflation would come back to bite them in the rear? Well check this out; "inflation rose to 3.8% in the year to July, the highest since January 2024, the latest figures from the Office for National Statistics (ONS) show." Just show to go you, that these Central Banks would be far better off if they just read the Pfennig and listened to me! HA! 

Circling back to the U.S. and good and longtime reader of mine, sent me this note: " In 2014 $264 billion worth of 10-year notes issued in 2014 will become due and payable this year.

In 2017, they issued $368.8 billion worth of 7-year notes. And those 7-year notes issued in 2017 are due and payable this year. 

Chuck Again. now add that to the new debt that will be issued this year, and we've probably get to a number that's bone chilling!

"And at a much higher rate than what they issued at that's for sure! It's time for the U.S. Gov't/ Treasury, revaluate Gold, eh? IF the U.S. really does hold over 8,000 Tons of physical Gold, do you think that revaluing it would make a dent in our debt? Only if the revalue price is something out of this world! In, fact if they revalued Gold to $5,000 oz... That would only pay for one's years debt servicing! Insane, right? 

Remember when I told you that 1 Trillion years ago, puts us Before Christ was born? And now we have $37 Trillion in debt... Think about that and tell me how we get out of this mess? Default? Well, we would have go all-in on the default and start all over again, and hopefully there's still someone in the world that would take our new debt... 

You may also recall me telling you that James Rickards told us about the $150 Trillion Birthright, right? This is what the minerals are worth that are still in the ground on Federal Land... There's a whole story on the Birthright thing, I suggest you Google it and find out more, but I'm here to tell you that IF all goes well, we won't begin to see these gains for years... And also let me tell you that none of that $150 Trillion will make it your mailbox in the form of a check.

OK, fair and balanced ... I told you one way we default and one way we dig ourselves out of this debt mess.... Go ahead and hang your hat on one, and then make your investment decisions on whichever you take.... but for me... Got Gold?

The U.S. Data Cupboard has the Leading Indicators for July today... This data set has been negative for so long now that the Dead Seas wasn't even sick yet, when it started! And then Tomorrow is the BIG DAY! Fed/ Cabal/ Cartel chairman Jerome Powell will give is keynote presentation at the Jackson Hole Shindig.. It will interesting if he gives any indication that he read the FOMC minutes, or what his direction will lead to.

To recap... The FOMC Meeting Minutes really threw a spanner in the works yesterday, and caused the dollar bugs to buy dollars, and the Bond Boys to buy bonds... Chuck has some interesting things to think about in today's Pfennig, something for you to chew on all weekend! 

Here's your snippet: " The US economy has been hit by a fresh wave of bankruptcy filings, which has surged to their highest level since 2020 Covid-19 pandemic, when similar situations were seen across the country. A report in Business Insider mentioned that several popular brands of 1990s and 2000s brands were among the companies that have filed for bankruptcy, continuing a trend that lays open the status of the United States’ economy.

Data from S&P 500 Global showed that this summer, the number of filing for US corporate bankruptcy surpassed the level of 2020, the Business Insider report mentioned. A total of 71 public and private companies filed for bankruptcy last month, which is 8 more than June when 63 companies had filed for bankruptcy.

Which companies have filed for bankruptcy?

According to the report, the companies include some beloved brands like Forever 21 and Joann. Many other famous retailers are forced to shut their stores to reduce physical footprint amid loss. While the US stock market has been standing tall to any economic upheaval with 3% economic growth in the second quarter, some experts said July is rather stressful, the report mentioned.

Focus on 30 export markets to intensify amid impending slump in shipments to US

“Companies are contending with elevated interest rates as uncertainty from US tariff policy pressures costs and supply chain resilience,” S&P 500 Global said, Insider quoted.

Companies like Canned goods producer Del Monte Foods filed for Chapter 11 bankruptcy, as they witnessed reduced demand and high inventory costs. Their leadership reportedly also cited a heavy debt burden. Last month, a Business Insider report had claimed that Del Monte had combined debts of between $1 billion and $10 billion."

Chuck again... And they blame it on high interest rates, while I don't argue that the aren't helping, IF you consider 4.25% a high interest rate! Not a word about how these companies borrowed BIG TIME at low interest rates, and now have to roll over the loans to higher interest rates... Nah, that would be telling the truth, and not lies... I'm just saying.

Market Prices 8/21/2025: American Style: A$ .6524, kiwi .5823, C$ .7239, euro 1.1629, sterling 1.3461, Swiss $1.2403, European Style: rand 17.6110, krone 10.1760, SEK 9.5912, forint 340.08, zloty 3.6528, koruna 21.0705, RUB 80.57, yen 147.81, sing 1.2872, HKD 7.8130, INR 87.26, China 7.1784, peso 18.75, BRL 5.4290, BBDXY 1,208, Dollar Index 98.36, Oil $63.18, 10-year 4.30%, Silver $37.89, Platinum $1,337.00, Palladium $1,123.00, Copper $4.50, and Gold... 3,339.

That's it for today... There will be no Pfennig on Monday next week, as I have a doctor's appt many miles from here. He is my lungs doctor, just a follow up to make sure I continued my recovery... And next week we close out August... I'm not going to attempt to have my traditional Butler Family Labor Day BBQ, this year... I'm just not ready for that yet... The College Football Season begins this weekend. YAHOO! I cooked me a thick steak on the Brownstone last night, and then couldn't eat it, my stomach revolted on me! UGH! Steak and eggs this morning? Now that sounds good, C'Mon stomach play along with me here! The Beach Boys takes us to the finish line today with their mega hit song: Gold Only Knows... One of the best Beach Boys songs in their list of hit songs... I hope you have a Tub Thumpin' Thursday today, and Please Be Good To Yourself!