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  • Rumors have the ECB announcing limitless stimulus...

    In This Issue.

    * ECB to announce limitless stimulus...

    * Sweden cuts rates...

    * Canada's Carney pushes against the tide...

    * Gold tops $1,700...

    ...
  • New & Improved!

    In This Issue.

    * The President and Fed Chairman get ignored.

    * A perfect storm is brewing.

    * Gold sees a huge selloff while Chuck types.

    * Better data for Sweden.

    And, Now, Today's Pfennig For Your Thoughts!

    ...
  • Big Al Talks Deficit Financing...

    In This Issue..

    * Currencies hold gained ground VS dollar...
    * Swiss franc really shines!
    * Japan borrows a line from the U.S....
    * The Labor problem grows...

    Good day... And a Happy Friday to one and all! A Fantastico Friday, especially if you are a Los Angeles Lakers fan! Me? I've always been a fan of the Celtics, but since it's a long distance directory assistance relationship, it's not that big of a deal to me that they lost. When I was a kid, the Hawks were in St. Louis, and we won a championship, with Bob Pettit... OK, I was only 3... But my dad loved to talk about it!

    Well... We've had a day where the currencies gained VS the dollar, and then held their ground, for the most part... No profit taking, no debt crisis fears trading, just held their ground VS the dollar... Now, some would say... 'that's a sign that they've hit resistance and can't overtake it, which is not good for a rising asset'... But, me? Well, I would say, and will say... 'I find this to be refreshing. The last thing you want to see is an asset, which in this case is a currency like the euro, run up too much, too fast, for that WILL give the markets reason to sell. I prefer the slow gradual, stealth-like moves in currencies, so that they don't gain any attention, until the rally is well established.'

    ...
  • Stocks Still Retain Some Pull...

    In This Issue..

    * Profit taking supports the dollar...
    * India posts strong data...
    * Sweden's inflation is above target...
    * Bill Gross, and Puru Saxena on a Tuesday!

    Good day... And a Terrific Tuesday to you! We reached the freezing mark yesterday, YAHOO! The first time this year! OK... So, we've got that going for us, here in St. Louis! A HUGE story going around St. Louis, and the country for that matter, yesterday, regarding the admission by Mark McGwire of taking steroids... Has the town buzzing... What? They didn't already have that Idea before? Hmmm...

    Well, the euphoria around the risk assets of currencies and commodities got watered down as the day went on yesterday, and that continued throughout the overnight and morning sessions in Asia and Europe. The currencies and commodities haven't turned on a dime, they just stopped moving higher VS the dollar... Although, now that I've said that, the euro has dipped below 1.45......
  • ECB & BOE leave rates unchanged...

    In This Issue..

    * ECB & BOE leave rates unchanged...
    * Trichet makes a mistake in judgment...
    * Asian central banks defend the $..
    * Gold pauses...

    Good day...Had a horrible night here in St. Louis, as every one of our teams let victory slip away. As you all know, Chuck drove to Columbia to watch his MIZZOU Tigers take on one of their arch rivals in a rare Thursday night matchup. The game went well into the night, as it was delayed due to problems with the lights at the stadium, so Chuck probably didn't get home until early this morning. I'll have the con on the Pfennig today, but Chuck will be back in the saddle again on Monday.

    As predicted, both European central banks kept interest rates unchanged. The European Central Bank and the Bank of England kept their benchmark interest rates at record lows in an effort to keep stimulating their economies. Trichet signaled that the ECB has no plans to raise rates in the near future, stating that the current level is 'appropriate' for the current economic environment. 'The recovery is expected to be rather uneven,' Trichet said. 'It will be supported in the short term by temporary factors but will be hampered in the medium term by balance sheet issues at financial and non-financial institutions.'...
  • Time To Remove Stimulus?

    In This Issue..

    * Chinese stocks rise 5%!
    * Risk Assets follow!
    * OECD forecasts faster global growth...
    * Gold & Silver kicking sand again!

    Good day... And a Tub Thumpin' Thursday to you! Let's hope it remains a Tub Thumpin' Thursday later today, as I head downtown to watch my beloved Cardinals play a day game! For those of you who are baseball fans, you know what I mean when I carry on about how baseball should only be played during the day!

    OK... Before I get to the currencies, economies and the dolts in the world, I wanted to briefly talk about the SEC, who made an announcement yesterday that they had done an investigation of the Madoff audits, and did not find any fraud... Just mistakes... Really? Mistakes? That's what they call them? Even Bernie Madoff himself says that he was "astonished" that the SEC failed to shut him down after interviewing him in 2006!

    ...
  • A Lost Decade?

    In This Issue..

    * An Up and Down day for currencies...
    * Jobs Jamboree moves to Thursday today...
    * China to buy more Gold!
    * Sweden cuts rates!

    Good day... And a Thankful Thursday to you! I'm reminded that we all need to be thankful for the patriots that led this country to victory and thus our freedom. The freedom for me to write a letter like this, each day, that allows me to say what I want to say (well, with the governor of the legal beagles of course!). And since this weekend we will celebrate our Independence, I thought this to be a good time to have a Thankful Thursday!

    Patriots... You know, the ending story for those 56 Patriots that signed the Declaration of Independence is not a happy story... So, when we learn of their collective fates, we realize that freedom does not come free......
  • Currencies Continue to Rally...

    In This Issue..

    * An auction announcement...
    * Euro soars!
    * Gold back to $900...
    * Who's telling the truth?

    Good day... And a Happy Friday to you! A Fantastico Friday to boot! I leave for Bermuda very early tomorrow morning, so no late night shenanigans for me tonight! HA! I'm still trying to make sure I've beaten that pneumonia, and being a "good boy"!

    Well... Front and center this morning, we have a Big currency rally going on... Recall yesterday, I told you of the beginning of the rally... Well, it really got legs as the day went on, and once again, it was not sold off overnight, but added to! Here's what I believe, and you won't see this anywhere else, my friends, is moving these currencies so violently higher VS the dollar......
  • Hold on to your hat...

    * Fed opens the pocket book...
    * Creative measures...
    * Inflation/dollar debasement concern...
    * Currencies soar...

    Good day...And a Tub-Thumpin' Thursday to you. Well, yesterday was certainly one wild Wednesday for the record books. It started out like any other day we've had over the past week or so with the dollar down and many of the currencies up a bit, but nothing really out of the ordinary. Then it happened...the Fed adjourned and hit the markets with a big one.

    Many of the market participants weren't looking for an announcement or plans from the Fed to buy Treasuries today, but instead, were anticipating further discussions on how to proceed. It appears there has been disagreement on how to provide aggressive actions with interest rates already at rock bottom. The way they saw it, there were three options. One was to increase the TALF to buy frozen assets, another way was to expand purchases of mortgage backed securities and agency securities, or to begin buying long term Treasuries....
  • Currencies Rally On Bad U.S. Data...

    * Dollar rally is stopped! * FOMC meeting minutes... * Housing data you won't see on TV! * Sweden to sell Gold... ** Currencies Rally On Bad U.S. Data... Good day... And a Wonderful Wednesday to you! I'm back. I just couldn't answer the bell yesterday morning, as the night before was simply rough on your old Pfennig writer. I'm in my last week of treatment and it has been a tough row to hoe, and I feel bad that I was not able to stiffen the back and make it through the day. But, no biggie, I've got great people here to take care of things when I'm gone... When I finally dragged myself out of bed yesterday, I saw that the dollar was taking liberties with the euro and other currencies once again. It was another game of "your economy is worse than mine", as German Business Confidence took a ride on the slippery slope down. You should have seen the "bandwagon jumpers" falling all over themselves to write about how cool it was to own the dollar. I chuckled, no big laugh as that might upset my stomach! But, their claim to be cool, was quickly squashed like a bug, when the housing numbers printed, and then later in the day, with the latest FOMC meeting minutes... More on this in a minute.......