There's an interesting video on India Times featuring Russian senior adviser to President Putin, Anton Kobyakov, suggesting that the U.S. is planning to eliminate its $37 trillion in government debt through sleight-of-hand via stablecoins such as Tether and Ripple. There are dozens of stablecoins, and more to come, including those issued by financial intermediary companies like Binance and PayPal.
While it's not clear exactly how the diminution of U.S. government debt would be accomplished, the idea is primarily to have stablecoins buy up most, if not all, of the U.S. debt issuance, then devalue the stablecoins. In essence, the stablecoins would default on the debt, leaving (mostly) American crypto-lovers the ultimate bag-holders, though the rest of the world is not necessarily out of the loop either.
This kind of scheme - the stuff of counterfeiters like those at the Federal Reserve - might actually work for the government, but the stablecoin holders would be left with nothing and no recourse.
The immediate query concerns where these stablecoins get their "money" to buy U.S. bills, notes, and bonds in the first place. The most probable answer would be the Federal Reserve itself, which is notable for conjuring such "money" out of thin air.
How it would work is actually a tricky wicket. The U.S. Treasury issues bonds to finance the government. They do it all the time, though these days, there aren't many takers for four percent 10-year notes, etc., so, stablecoins to the rescue. The Fed funds the stablecoins with enough money (that the Fed just creates out of thin air) to bid on the bonds at auction. Eventually, as the scheme unfolds, the stablecoins will be the only bidders, so they'll get the debt at easy-peasy rates, like one or two percent.
The yield doesn't really matter, since they are buying with essentially worthless paper and paying out in "stable-currency", if there even is such a thing. Americans and foreigners will be encouraged to convert their cash or bank balances into stablecoins, which will be accepted everywhere, given enough time to ramp up.
The government gets cash; the stablecoins collect interest. All well and good. The principal, however, is never to be returned. It stays as stablecoin, circulating around the global economy. In due time, the debt is paid, the stablecoins (principal) continuing to buy goods, services, drugs, guns, whatever. You have some, your neighbor has some, everybody has stablecoins.
However, because economics is a dismal science, prices for anything and everything continue to rise because the basis of the dollar - the stablecoin - is being "debased." Most people won't notice that the U.S. dollar has turned into toilet paper because it's the "new digital currency" which the media promotes as easy to use, simple, wonderful. Meanwhile the U.S. debt gets paid off, maybe (this is the tricky part), if congress decides to stop overspending on ghastly projects with which to line their own pockets.
Like everything else, there's a catch. Congress will never stop spending beyond their means. The standard of living for average Americans will decline, gradually. Most will hardly notice they're eating cat food instead of prime rib.
It's a wicked con and the president, who wants to make America "the crypto capital of the world" is 100% behind it. Fun for all. Kinda.
Meanwhile, back at the company store, COMEX gold futures peaked Monday at $3,685. Silver topped out at $42.34. WTI crude settled out around $61.79.
At the Close, Monday, September 8, 2025:
Dow: 45,514.95, +114.09 (+0.25%)
NASDAQ: 21,798.70, +98.31 (+0.45%)
S&P 500: 6,495.15, +13.65 (+0.21%)
NYSE Composite: 21,173.64, +37.59 (+0.18%)
Stock markets around the world took a back seat in terms of importance this week to the events which unfolded on the last day of August and the first of September.
While the U.S. was taking a three-day holiday, the leaders of the Global South were meeting in Tianjin, China, at the annual summit of the Shanghai Cooperation Organization (SCO). Highlighting the conference was the emergence of understanding and movement towards an end to the bickering over mountainous borders between China and India, and the embracing of the leaders of the three leading BRICS countries - Russia, China, and India - as Putin, Xi, and Modi made clear to the world that they were united in opposition to the sanctioning and brow-beating of the United States.
This development was downplayed by Western media, though the significance of the event was hardly overlooked by the most astute and sensible political and economic commentators. While the United States and Europe continued to feign ignorance to the security conditions outlined repeatedly by Russia in what will soon be post-war Ukraine and threaten further sanctions against countries trading with the Great Bear, the Global South was moving forward, with or without the West.
In the aftermath of the SCO, stocks in the U.S. and Europe wobbled ahead, though the action was hardly robust or even realistic. Especially in U.S. markets, stocks tumbled over the four-day trading week, only to be boosted by the usual combination of insider trading, corporate buybacks, the New York Fed's trading desk and some rumblings and grumblings from the PPT and ESF (Exchange Stabilization Fund). Like it of not, the largest shareholders were forced to buy into stocks to keep the averages - and the appearance of prosperity - from breaking down.
By Friday, when the BLS announced that August job creation numbered a mere 22,000 and June was revised to the first negative number in five years, -13,000, the dire straits of the U.S. labor market, and by inference, the greater economy, were beginning to become clear. After an initial quick selloff, stocks stabilized and traded in a narrow range the remainder of the session. By the close of trading on Friday, the losses had been somewhat mitigated by the usual rigging mechanisms, but the deeper implications were evident.
Underpinning the narrow gains of the week were a dual track of upcoming events, with the September FOMC meeting on September 16-17 and the end of the fiscal year on September 30 providing a backdrop full of anticipation and apprehension. With weakness in the labor market evident, the betting that the Fed would cut 50 basis points was on the rise while the possibility of a government shutdown at month's end agitated an already-uneasy market.
Understanding that September is traditionally a poor month for investors and October historically the time for dramatic stock implosions, trading became muted, selective, distracted, and, particularly in the tech space, overcrowded. Market indications are leaning toward seeking safety in fixed income, and, significantly, precious metals.
Titanic dislocations are taking place beneath the superficial facade of financial news and advisories. Ignoring the fractures taking place in global trade comes with enormous risk.
Stocks
U.S. stocks continued catching down to the rest of the world over the course of the week. Stocks maintained a positive lean, though a topping out sequence may be developing. For the time being, a wait-and-see attitude prevails, though the narrative is wearing increasingly thin.
Recent earnings reports, which have been reduced to a trickle as the third quarter proceeds, have been a mixed bag of EPS beats, revenue near-misses, and forward guidance focused on tariff implications, though those have been tempered by the ongoing courtroom drama. That condition should find some resolution in the near future, though even if the Supreme Court finds agreement with the US Court of Appeals for the Federal Circuit, which ruled Trump's tariffs to be illegal at worst or beyond presidential authority at least, the president has other options to keep most of the tariffs in place.
On the agenda for the week ahead are some impactful economic calendar events and releases. Tuesday's NFIB Business Optimism Index will off er reading on general business sentiment, though Wednesday's August PPI and Thursday's CPI readings will dominate the data. Wednesday's weekly EIA figures will affect trading in crude and may have an impact on gas prices short term. The recent trend has seen inventories building with limited drawdowns.
Overall, the CPI and PPI readings will impress upon inflation expectations and influence the Fed's thinking on the federal funds target rate. Trading is likely to be choppy and slanted to the downside as there are few, if any, positive overtones.
Treasury Yield Curve Rates
Date
1 Mo
1.5 mo
2 Mo
3 Mo
4 Mo
6 Mo
1 Yr
08/01/2025
4.49
4.46
4.44
4.35
4.30
4.16
3.87
08/08/2025
4.48
4.43
4.39
4.32
4.27
4.15
3.93
08/15/2025
4.48
4.42
4.35
4.30
4.22
4.12
3.93
08/22/2025
4.47
4.38
4.36
4.27
4.21
4.08
3.87
08/29/2025
4.41
4.34
4.30
4.23
4.17
4.01
3.83
09/05/2025
4.29
4.24
4.24
4.07
4.05
3.85
3.65
Date
2 Yr
3 Yr
5 Yr
7 Yr
10 Yr
20 Yr
30 Yr
08/01/2025
3.69
3.67
3.77
3.97
4.23
4.79
4.81
08/08/2025
3.76
3.70
3.84
4.03
4.27
4.84
4.85
08/15/2025
3.75
3.73
3.85
4.07
4.33
4.91
4.92
08/22/2025
3.68
3.64
3.76
3.98
4.26
4.84
4.88
08/29/2025
3.59
3.58
3.68
3.92
4.23
4.86
4.92
09/05/2025
3.51
3.48
3.59
3.80
4.10
4.72
4.78
The yield curve remained partially inverted with the nexus (low point) at 2-and-3-year maturities. The general tendency at the long end was anticipatory of a Fed rate cut on September 17, the current betting favoring 25 basis points with 50 not entirely out of the equation.
Yield on the 10-year note was played down 13 basis points, with the 30-year bond dropping 14. The flight to treasuries was hardly reflected in stocks, which remained buoyant, though increasingly under pressure. Strength in the bond markets may be fleeting and/or fanciful. Treasuries and corporates are no more insulated from the ongoing global fracture than stocks or any other risk asset. Gold and silver stand out as safe havens, and should continue to strengthen as such short, medium, and longer term.
Notably, the Fed's influence continues to wane in the face of continued rhetorical attacks by the president and Treasury Secretary Bessent. Indeed, Chairman Powell, whose term expires in May, could be the last truly independent Fed chairman and possibly the last of any significant importance. In some circles, the administration's assault on the Fed and its various members, regional presidents, and governors is viewed as constructive institutional destruction with the implication of dissolving the central bank altogether the ultimate goal.
Though "ending the Fed" may be a fashionable sentiment, the overall ramifications of a shift from central bank currency creation to putting such power in the rightful hands of congress and the U.S. Treasury is rife with disruptive issues. Along with that, the current lean towards stablecoins and CBDCs becomes an even more frightening possibility, rendering U.S. currency as little more than imaginative counterfeiting with no backing or intrinsic value.
It is the continuance of 112 years of central bank fractional reserve money debasement that is central to any discussion of money and currency going forward. From an economic and security standpoint, these are not just interesting times, but ones fraught with danger and potential upheaval that extends beyond economies and into the social structure.
The economic rules that have guided the United States for more than a century are coming undone. One can only try to prepare for indefinite outcomes. Nothing is neither sacred nor unthinkable under these conditions.
WTI crude oil closed out the week at $61.27, a far cry from the previous Friday New York close of $64.01. The fundamental nature of global supply and demand do not support price increases anywhere in the world. A return to the $50s is not only likely, but practically becoming a tradable probability.
Crude has hovered between correction and bear market since the January 15 peak of $78.71. Because oil is not subject to tariffs and most people, after basic necessities like rent, mortgage payments, and food, cannot afford excessive fuel purchases (demand destruction), a supply glut continues to build. With summer driving nearly at an end, and with it, a switch to winter fuels, prices should continue to fall in both WTI and Brent markets. There is simply too much oil meeting the needs of the declining West. A magnitude shift in flows to the East could cause serious price dislocation, i.e., much lower prices and looming, if not already underway, recessions in Europe and the United States.
Gas prices have leveled off over the past month and remain near the low end, but the national average of $3.19 on Sunday, as Gasbuddy.com reports, is something of a canard. Oil prices are undeniably down, but it is taking an inordinate amount of time for price to find a true level at the pump. The energy giants are squeezing every last nickel out of consumers, though it hardly amounts to much at all. It would not be surprising to see gas prices nationally drop below $3.00 by year's end and into the winter months of 2026. As a gauge for the general economy and precursor to recessions, nothing beats gas prices as an indicator. Lower prices imply not just slack demand, but margin compression for the likes of ExxonMobil, Chevron, et. al..
State-by-state numbers show California remaining at the top, up another few cents, at $4.61 per gallon. The lowest prices remain in the Southeast, with Mississippi the cheapest, at $2.69, with Oklahoma close behind at $3.70. Oregon joined the state of Washington ($4.42) and California in the $4+ club, hitting $4.03 this week.
The Northeast and Midwest, out to Michigan and Illinois, are all $3.00-plus. An ark from Kentucky, Missouri, Kansas, Iowa, through to the Dakotas are all sub-$3, interrupted by Nebraska ($3.02). Minnesota and Michigan are both at $3.15. In between them, Wisconsin is $2.97.
Sub-$3.00 gas can be found in just 17 states, down three from last week, exclusively concentrated in the South and Midwest, most marginally higher. The entire Southeast, with the exception of Florida ($3.08) is under $3.00 a gallon. New Mexico abruptly popped to $3.02 with Arizona and Nevada straining at $3.53 and $3.83, respectively.
Bitcoin
This week: $111,129.79
Last week: $108,241.07
2 weeks ago: $114,536.60
6 months ago: $87.701.04
One year ago: $54,382.00
Five years ago: $10,446.00
Bitcoin continues to tread water between $107,000 and $112,000, continuing to bounce around in this support range. The fallacies associated with bitcoin and crypto in general are monumental. Eventually, this entire fallacy will be exposed as nothing better than three-card-monty with additional bells and whistles for the truly ignorant humans having put faith into it. Once Wall Street became enthralled by the lure of digital currency, the promise of peer-to-peer, trustless, anonymous financial transactions went out the door and it's never coming back.
Gold and silver prices were up for the third straight week. Gold continued to reach new all-time highs against the rapidly-debasing U.S. dollar. Silver cracked the $40 mark a week earlier and was trading above $42 on occasion in the most recent week.
Efforts at the COMEX and LBMA to keep precious metal prices contained have become less effective as the emergence of BRICS, the SCO and allied countries in Asia, Middle East, Africa, and even South America are reshaping the global paradigm into a bi-polar construct, rejecting the hegemonic tendencies of the United States, Europe, and the UK.
At some point, there will be either an East-West split or a concession by the West that the derivative-based pricing of precious metals is at an end. In consideration of the West's reluctance to yield to economic forces beyond their control, a split would seem to be the most likely outcome, upon which the Western bloc will become isolated from most of the rest of the world.
The prospect of gold-backed currencies continues to be a back-burner issue, though the pace at which geo-political developments are taking place suggests a global change before 2030, possibly within two to three years. Gold and silver have been regarded as money for centuries. It is only within the last 75-150 years that gold and silver have been relegated to second-class status. Silver began to be demonetized in the United States and Europe in 1873. The United States finally took silver coins out of circulation in 1965.
In August of 1971, then-president Richard M. Nixon "temporarily suspended" U.S. dollar redemption in gold. This temporary condition has now lasted 54 years and is seemingly nearing an end. Once gold and silver are recognized again as true, honest MONEY, the shockwaves will be felt worldwide. Anybody who doesn't understand just how rapidly the fiat monetary system is becoming extinct will be on the losing side of economic reality.
More and more mainstream brokerages and financial advisors are recommending allocations into gold. Though they are late to the party, there is still the possibility that gold and silver's rallies are only just beginning. In China, Russia, India, Turkey and many other countries, gold and silver are already regarded as true measures of wealth and have been, in most cases, for many long years. Americans, Europeans and other Western countries do not share the rich histories of gold and silver monetary reality. Thus, they are learning their lessons the hard way, through fiat currency debasement and an eventual shock to the economic systems they have maintained in the industrial epoch.
Activity by central banks - buying gold at a record pace - is soon to be joined by gold and silver mania of the public, already being expressed on physical platforms such as eBay, where prices have accelerated powerfully to the upside over the past month and particularly this past week.
Here are the most recent prices for common one ounce gold and silver items sold on eBay (numismatics excluded, free shipping):
Item/Price
Low
High
Average
Median
1 oz silver coin:
44.95
59.00
49.09
48.77
1 oz silver bar:
44.96
59.95
48.97
47.70
1 oz gold coin:
3,707.00
3,883.07
3,786.37
3,781.27
1 oz gold bar:
3,698.00
3,819.41
3,751.14
3,751.22
The Single Ounce Silver Market Price Benchmark (SOSMPB) rocketed to a new record high since Money Daily began recording in 2021, of $48.63, a gain of $1.75 from the August 31 price of $46.88 per troy ounce.
WEEKEND WRAP
A new world order is commencing and it's not going to be one which favors the Western hegemonies of the United States and Europe, whose economies are deeply indebted and whose financial constructs are obviously failing. That much was made clear by the SCO conference this past week, embracing principles of cooperation and respect in international affairs. The heavy-handed, carrot-and-stick regime of the U.S., Europe, and UK-aligned nations is being tested by a more rational, reasonable system that favors understanding and fairness as opposed to oppression, fear, and war.
At the Close, Friday, September 5, 2025:
Dow: 45,400.86, -220.43 (-0.48%)
NASDAQ: 21,700.39, -7.30 (-0.03%)
S&P 500: 6,481.50, -20.58 (-0.32%)
NYSE Composite: 21,136.04, -21.89 (-0.10%)
Disclaimer: Information disseminated on this site should not be construed as investment advice. Downtown Magazine Inc., Money Daily and it's owners, affiliates and/or employees are not investment advisors and do not offer specific investment advice. All investments have risk. You should consult a professional investment advisor or stock broker or use your individual judgement when making investment decisions. By viewing this site, you hold harmless Downtown Magazine Inc., Money Daily, its owners, affiliates and employees against any and all liability. Copyright 2025, Downtown Magazine Inc., all rights reserved.
Stocks made outsized gains on Thursday, possibly on the realization that if the Supreme Court rules in favor of the trade court that said Trump lacked the proper authority to impose sweeping tariffs on most countries in the world, the result could trigger a ruling that the U.S. must rebate all the tariffs collected, some $128 billion or more.
That would likely be net positive for not just the companies that paid the tariffs, such as large retailers like Walmart, Target and others, but could also result in lower prices for many imported goods. A ruling is expected by October 14, though chances are good that the nation's top court could rule well before that date. For now, the tariffs remain in place and the situation is fluid.
With the week drawing to a close, stocks could go either way on Friday, depending on how traders interpret the August Non-farm Payroll data, released by the BLS at 8:30 am ET.
Through Thursday, the Dow is ahead by just 76 points, the NASDAQ is up 252, and the S&P, which set another record close Thursday, is up 53 points.
The news from the BLS was sobering, if not a sad approximation of the current employment condition of the United States, showing a mere 22,000 jobs created in August, well below trend and expectations. June was revised from 27,000 to -13,000, marking the first negative print since 2020, at the height of the pandemic. The unemployment rate remained steady at 4.3%, near historic lows.
Futures responded in a positive manner to the news. The twisted Wall Street logic posits that if the economy is weak, the Fed will likely raise rates at their next FOMC meeting in less than two weeks (Sept. 16-17), which would be good for stocks since companies would have lower carrying costs (interest) on borrowings for share repurchases (buybacks).
So, let's be straight about this. If people don't have jobs, the top 10% of American adults who own the majority of stocks in the U.S. will profit, exceedingly well. The top 1%, who don't need jobs, or more money, will do even better.
OK, got it. Super!
At the same time, on the BLS release, gold and silver leapt higher. The calculus for precious metals is a little bit more understandable than the Wall Street stock market take. If interest rates are lower, more people will be looking for alternatives to fixed income vehicles like treasuries or corporate bonds. Gold and silver, which have absolutely zero counter-party risk (unless you are in the habit of inviting known thieves into your home or anywhere near where you store your metals) and are time-tested stores of value over the short and long term.
The added bonus for precious metals is that they have been appreciating in value against all manner of fiat currencies, especially the Japanese yen, where the price of gold has tripled in the past three years. As it is, gold has essentially more than doubled in the U.S. and silver has doubled in less time, hitting a low below $20 in March, 2023. as of 9:00 am ET, both metals are up sharply. Gold hit a high of $3,643, silver, $41.92, both on the COMEX continuous contract.
An economy with no job growth is just dandy all around... well, except for working-class people, but, uh, who needs them? We have AI.
Trump will fire the new head of BLS (not sure who it really is, they keep changing so fast) in 3...2...1...
At the Close, Thursday, September 4, 2025:
Dow: 45,621.29, +350.06 (+0.77%)
NASDAQ: 21,707.69, +209.97 (+0.98%)
S&P 500: 6,502.08, +53.82 (+0.83%)
NYSE Composite: 21,157.93, +149.82 (+0.71%)
As Western economies slide further into irrelevance due to belligerent government policies that ignore historical precedents and cannot fathom the emerging economies of Asia and beyond, expect stocks manipulation to become even more extreme than usual.
The effort to maintain a positive narrative includes stock prices that seldom decline, led by tech wunderkinds such as Alphabet (Google), Amazon, Nvidia, Apple and the rest of the "Magnificent Seven", and stocks selected by Wall Street brokerages and "whales" which control more then 80% of all trading through black pools, Zero-days-to-expiry (0DTEs) options, and other market-distorting vehicles.
Wednesday's trading was a perfect case in point. Just before 2:00 pm ET, the Dow Industrials were down more than 300 points, but, in the final two hours of trading, "buy the dip" investors - which are, in reality, market makers and mega-banks - saw fit to boost share prices of the 30 blue chips to a close down just 24 points, the final 200 points made up in the last half hour. The NYSE Composite saw a similar late-day rise, while the S&P 500 made almost all of its 32-point gain in the last half hour of the session. The NASDAQ, home to the tech darlings, was positive all day, but stitched on nearly an additional 100 points in the final 30 minutes.
There's very little about "the markets" - any market - that is real. Consider gold and silver's moves on Wednesday to be just another prime example of the lengths at which traders on the COMEX and CME will go to suppress the emergence of real money. Silver, squeezing the shorts, had rocketed to a new high of $42.19 on the COMEX continuous contract early in the day, but, overnight, magically, shed nearly a dollar, dropping as low as $41.29.
Gold reached a record high on Wednesday, topping out above $3,637, though it slipped back as low as $3,584, a 50-dollar-plus decline to satisfy the mendacious desires of the fiat money cabal.
Similar chart oddities have become commonplace. Individual stocks gain 10 to 20 percent in a day on a routine basis these days, defying logic and fundamental analysis in favor of quick profit turns by insiders and slick traders.
On top of the obvious end-of-day tape-painting, which has become a staple of U.S. stock markets, government data, from sources such as the BLS and Commerce Department, are wildly flawed, massaged by various qualifiers to produce data that is more palatable to the elites and fed like pablum to the masses. The American public is led to believe that stocks are golden, companies are robust money-printing machines and that their passive investments in retirement accounts can only go one way. Up.
As for the crypto fad, it's simply a trade, having no real value, based on theories and the belief that bitcoin, ethereum and the thousands of other alt-coins actually can be money. They can't, they won't, and the entire universe of hodlers and diamond-handed speculators will eventually be wiped out.
Meanwhile, back in the real world, the ADP Employment Report, which is not a government agency, released Thursday morning, showed an August gain of 54,000 jobs in the private sector, well below sustainability in the labor market and well below expectations. Wall Street will likely shrug it off as inconsequential, focusing on pricey stocks in the bubble economy.
It's a cruel world. Wall Street and government mouthpieces would have you believe that the U.S. is winning the war in Ukraine, Gaza is not genocide, the BRICS are out to get us, tariffs won't cause price inflation, and the streets of American big cities are paved in gold... well, paper gold, anyway.
The reality is, of course, nothing of the sort. It's all a dreamscape.
At the Close, Wednesday, September 3, 2025:
Dow: 45,271.23, -24.58 (-0.05%)
NASDAQ: 21,497.73, +218.10 (+1.02%)
S&P 500: 6,448.26, +32.72 (+0.51%)
NYSE Composite: 21,008.11, -36.76 (-0.17%)
Ediotr’s Note: Just as today’s missive was about to be published, an internet outage prevented that event. Luckily, it lasted a little over an hour before being restored. Sorry for the delay.
Take a good, long look at the photo above. It portrays the leaders of India and China, the two most populous nations on planet Earth, meeting to shake hands in a spirit of cooperation at the SCO (Shanghai Cooperation Organization) this past weekend in Tianjin, China.
It is the future.
Nowhere to be seen are any signs of American influence. Russia, though not present, stands in concert with these great nations. Russia supplies both countries with natural resources, particularly oil, as in energy. Energy to fuel industries, commerce, progress.
Because of its belligerent attitude, the United States will never be a part of the unity of purpose that emerges from the East, nor will Europe. The West sanctions and threatens. The East trades and cooperates. Therein lay the difference in culture that will translate into finance and prosperity. The United States is a failed empire with a failing currency, operated by elected leaders who have been busy raiding what's left of the loot. They'll get most of it, but it won't be satisfactory. The American people will get crumbs, crime, and crack-laced fentanyl, if they're lucky because the future belongs to Asia and the Global South.
Western leaders do not understand cooperation. They only understand brow-beating, fakery, theft, and skullduggery, and that's why they - and the populations of the USA and EU and the UK - are losing.
Americans, those that are smart enough and have the means, will escape the coming collapse, already well underway. The rest will be either cannon fodder or swept up in raids or terror or financial ruin. The only way Americans could have escaped such a fate was to have jettisoned the "leadership" many years ago, but, because Americans are lazy, stupid, and gullible, it never happened, and this is what they now have: a failing government, $37 trillion in debt, an economy running on AI fumes and broken promises, propagandized to the max, supposing that everything is just fine, as long as President Trump can deport the illegals and slap tariffs on everything that comes onto the shores.
Trump, the ultimate poseur, has been a massive disappointment and is likely to remain so. He hasn't fixed anything on the international stage, where work needs to be done. He's considered a buffoon by the likes of Putin, Xi, Modi, and Brazil's Lula. He can't get it done. He's too busy self-promoting and diving headlong into crypto.
An online poster said something to the effect that "when America loses reserve currency status, it's over." Well, that's already happened. Gold is now the reserve currency of the world and there's no going back. The almighty greenback, backed by nothing other than the full faith and credit of the United States (or the Federal Reserve, take your pick) is waning. Gold, and silver, are rising.
As congress returns from a month-long holiday, it has become apparent that a continuing resolution will be needed to avoid a US government shutdown on October 1st, as there is no way congress can realistically pass 12 spending bills by then as there are just 14 legislative days left before the new fiscal year (2026) begins. Maybe these elected representatives might have better spent their time crafting appropriate legislation and preparing an actual budget - something they haven't done for at least 30 years - than vacationing at their gated, beach-front mansions.
Treasury yields advanced on Wednesday, with the benchmark 30-year debt approaching five percent. Yields on UK 30-year bonds increased to 5.75%, already the highest since 1998, while Japan’s 20-year notes climbed to the highest in 25 years. The yield to maturity on Bloomberg’s global gauge of government bonds maturing in a decade or longer climbed to the highest level since July 2009. The bond market is signaling that demand for Western economies' debt is waning. BRICS, and countries aligned with them, no longer believe that Western nations are creditworthy.
Tuesday's trading was revealing, extending the drawdown in stocks from Friday. The three-day weekend had little effect on sentiment. The bear market has resumed. September is traditionally one of the worst months to own stocks.
With the opening bell less than half an hour away, stock futures are mixed but sliding lower. Dow futures are down 110; NASDAQ futures are up 150 in typical dead cat bounce style; S&P futures are ahead by 21 points.
Two companies that reported earnings before the bell are notable.
Macy's (M) beat earnings estimates, returning 41 cents adjusted vs. 18 cents expected. The company issued improved guidance sending shares 15% higher in pre-market trading. Rather amusing for a stock that's been traing in the low teens and is down 20% year-to-date.
On the flip side was Dollar Tree (DLTR), which posted adjusted per-share earnings of 77 cents, well above analyst expectations for 42 cents. Forward guidance was not encouraging, however, sending shares in the pre-market down about seven percent. Dollar Tree has been a stellar performer
Anybody still unconvinced that markets are rigged should take the time to watch Jeremy Szafron's Kitco News interview with Bert Dohmen:
At the Close, Tuesday, September 2, 2025:
Dow: 45,295.81, -249.07 (-0.55%)
NASDAQ: 21,279.63, -175.92 (-0.82%)
S&P 500: 6,415.54, -44.72 (-0.69%)
NYSE Composite: 21,044.87, -106.59 (-0.50%)
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