Turkey For Me, Turkey For You.
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In This Issue.

* Germany reaches accord without raising taxes .

* Currencies & metals bounce back.

* Negative Deposit rates in the U.S. ? .

* And, let's give thanks .

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

Turkey For Me, Turkey For You.

Good Day! And a Wonderful Wednesday to you! It's the day before Thanksgiving and. As the day before Thanksgiving Pfennig tradition says we start the day with some Adam Sandler. Turkey for me, Turkey for you, Let's eat turkey in my big brown shoe. Love to eat Turkey, at the table, I once saw a movie, with Betty Grable..

And before I get into all this stuff I have to talk about this morning, today is my grandson Everett's birthday! He's 3 today! And wasn't in a very good mood with me last night, but that's OK, he's 3 now, and maybe he'll leave that terrible two's stuff behind him now! Happy Birthday, Buddy!

OK. I've got a ton of stuff to talk about today, so let's talk first about the currencies yesterday and today. Yesterday, was more of the same old stuff, with tight range trading, except in the A$ and kiwi, which can't seem to find any love these days. As the day went on, the euro inched higher and higher, and by the end of my work day the single unit was 1.3570. Gold couldn't find terra firma once again, and if it weren't for the euro and the Chinese renminbi, you would have to say the bias was to buy dollars going into what could be a 4 day weekend for many.

But this morning, the euro is riding high, and pushing the envelope to

1.36 on news that German lawmakers reached a coalition accord on wages and spending increases without raising taxes! WOW! How'd they do that? Well, they used their noggins that's how! But anyway, the attraction to the euro is greater this morning with this accord. But the real winner this morning is the British pound sterling or "pound". Or as old currency guys like me call it, Cable. And Cable is pushing the envelope to 1.63 this morning, but I don't see this lasting, the recent history with Cable is that it runs higher, and then is knocked (Jen will you say that out loud?) down. So be careful getting euphoric here.

Gold is up $9 this morning too, so all-in-all not a shabby morning for the currencies and metals. The moves today could become volatile as the U.S.

gets ready for their Thanksgiving celebration.

I was perusing the zerohedge.com site yesterday, and can across something that I found to be very interesting. The site was talking about in the recently released FOMC meeting minutes there was a discussion of something other than Tapering. The discussion was how the Fed would consider lowering the interest on excess reserves to zero. So, just to keep all the bookkeeping straight, the Fed has been paying banks interest for their excess reserves. This has been one of the main reasons that the velocity of money hasn't taken off, so that money supply could catch up with the monetary base. Banks prefer to earn paltry interest rates than loan out money at higher rates, because of principal risk. So, the Fed, in all their genius, thinks that by telling the banks that they are considering cutting the interest rate they receive on their excess reserves to zero, that it would scare the banks to withdraw the money and put it into the markets, pronto!

But, did that scare the banks? Heck no! The banks instead, warned the Fed that should it lower the interest rate on Excess Reserves, that they would

be forced to start charging depositors. Did you get that? Banks would

begin to charge you for having your money in the bank! Now, The fed

again in all their genius, have taken this as a worthy challenge, and have backed off their "consideration" of cutting the interest rate. Oh, by the way, where does the Fed get the money to pay this interest rate? But that's for another time. The thing here is that things could get pretty ugly between the Fed and banks going forward folks. and if banks decide to charge for deposits, then we would be in the same boat as Europe.

You know, a few months ago, I said I was raising the white flag on metals manipulation, I had given up fighting city hall on this, for whatever I was doing to my poor blood pressure getting all jacked up because there was more proof of price manipulation, but regulators weren't doing anything about it, was not good for me. So, I gave it the old Roberto

Duran, "No Mas". Of course that didn't mean I was going to stop doing

the research and reading about price manipulation, it just meant that I wasn't going to let bring me down, it's only castles burning, just find someone who's turning and you will come around. - Neil Young.

Well, I can tell you that after all this time, I've come to the point where I'll begin to talk about it again, but not let it get me riled up.

I saw a quote the other day by Dan Norcini, that I want to share with you.

"Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries.

"Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts."

Yes, Stand and Deliver or Go Home! Stand and deliver on the short

contracts you own price manipulators, and you know who you are! But

there was some good news on this front. Jim Sinclair, has been named the Executive Chairman of Singapore Precious Metals Exchange (SGPMX) And the establishment of an Independent Advisory Board established to ensure long term growth strategy, and protect interests of customers.

Knowing what I know about Jim Sinclair, and how he feels about the price manipulators, I have to believe that it won't be long before he drives the price manipulators out of Singapore. Physical metals is his bailiwick.

Let's listen in to Jim Sinclair, " I personally predict that emancipated physical Gold price from future gold price will go up from $3,200 to

$3,500 an ounce by 2016"

Sure the Singapore metals exchange is small potatoes compared to the markets around the world, but, it's a start! And you can't have a fire without a start, and you can't have a winner in a race without a start, and on and on.

My good friend, and former colleague at the Sovereign Society, who also happens to be a technical / charts analysts guru, Sean Hyman, read the Pfennig yesterday and sent me a note regarding my talking about the price of turkeys falling. Sean said, "While turkey may be cheaper, evidently chicken is soaring to all time highs." And then sent me a link to a story on how the price of Chicken is soaring! So, we've got that going for us!

NOT! Thanks Sean!

Ok. my good friend, Dennis Miller, sends me a report done by a CPA called "by the numbers" each week. This week's report had an entry that really caught my eye. let me throw this out there, and see what you think of this. 86% of the 53.7 million tax returns filed in 2011 that did NOT pay any federal income tax reported less than $30,000 of adjusted gross income

(source: Internal Revenue Service).

And everyone wonders why the economy can't get going good? Look at that again, and let me add what Tim Smith, our metals guru, did. That means only 14% of the population pays the bills! I'm not going to dwell on this too much, but we're all a part of the 14%, and I would personally like to see that number grow larger!

The data coming out of the U.S. data cupboard has been paltry, but yesterday, we did see that the U.S. Consumer Confidence fell from 72 to 70. Now, I know that this data is so heavily influenced by the stock market, but that doesn't play in the sand box together very well here. The stock market is soaring, due to the Bernanke Asset Bubble, but Consumer Confidence is falling. Hmmm.

U.S. Durable Goods orders for October will print this morning, and I expect them to be negative, which isn't going to sit well with the Taper Capers campers. We'll also see the Leading Index data for October. I think we'll be disappointed with this data too. So, nothing to get all lathered up about going into Turkey Day!

Before I head to the Big Finish. I have a funny for you from Jay Leno that ties into Thanksgiving. Here's Jay. "PETA says that today's turkeys are being bred to have such large breasts, they're dying of heart attacks. I don't want to be insensitive, but that's still better than getting your head chopped off."

That's it for today. And this week for me! I know that I went through the things I'm thankful for in the special Sunday Pfennig, if you missed that you can find it in the archives at www.dailypfennig.com But I thought I would have a do over. First of all I thank God for his blessings, to me, my family, friends, and country. I'm thankful for the life I have with my beautiful bride, children and grandchildren. I'm thankful to all the people that have touched my life living and dead. My grandparents, for being tough with me, my parents for the freedom they gave me, my coaches who always saw something in me that I didn't know I had, my mentors, Roy, David, Ed, and Frank, you have all taught me things that I've needed in my career, my siblings for their love, and there's no greater love than I have for Kathy, my beautiful bride of 37 years. I know the list of things I'm thankful for, like my job, and home, etc. could go on forever but I

got most of what I wanted to say in. I'll leave you with something that

I said last year, that I found in the local newspaper, and thought this is something I should say every year when asked what are the haves and have-nots of a Thanksgiving Table, the answer would be: The have-nots:

resentment and anger. The haves: The people you love.

And I'll leave you with a snippet of a song that will stick in your head all day now from Arlo Guthrie. You can get anything you want, at Alice's restaurant, Walk right in it's around the back, just a half a mile from the railroad track. When Dawn and Andrew were young and we had to travel every year for Thanksgiving we would listen to this song in the car.

Have a great day! And a Blessed Thanksgiving, I'll talk to you again next week!

Chuck Butler
EverBank World Markets

Posted 11-27-2013 12:02 PM by Chuck Butler
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