The high yielders in the South Pacific, Aussie and kiwi, have seen their lofty levels of just 10 days ago, gone with the wind… The ill wind that the dollar’s blowing, with all the wind given to the dollar by the Fed’s rate hike rhetoric… I would say to that rhetoric… Frankly, Big Ben, I don’t give a damn! (OK, don’t get all mad at me, that’s just a play on the line earlier about “gone with the wind”)

The Chinese renminbi keeps ticking higher VS the dollar though… Remember all those naysayers talking about China and how they were going to slow down? They said it in 2003, 2004, 2005, 2006, 2007 and again, that this “would be the year” that China slowed down… Well guess again boys! China is kicking tail and taking names later… And now it has the momentum that goes along with a currency who’s country is host of the Olympics…

Chris Gaffney and John Kaupisch on the desk here, along with Frank and I remember the euphoria for Spanish pesetas when the Olympics were in Spain in 1992!

But afterward… Things aren’t so rosy… Could there be an Olympics bubble for China that will burst afterward? That’s something we’ll have to wait-n-see… If I were take a guess, because I don’t know any more than anyone else, I would say yes… But that will be tough, because, if China’s GDP falls to 5% from 10% they would still be outperforming everyone else!

Another currency holding its own against the “ill wind aided dollar” is the Brazilian real… I keep talking about this currency as the one holding its own, sounding much like a broken record, or scratched CD for the younger crowd that don’t know what a record is! But really, the real has it going on folks…

The price of Gold has really been on the slippery slope down this week, after recovering nicely back above $900 last week… This all makes sense to me, given the Fed’s rhetoric about fighting inflation… If the Fed’s going to fight inflation, then commodities like Gold are needed less… But that, only plays well if you believe the Fed’s rhetoric… Otherwise, these certainly look like some cheap levels to buy Gold, eh? But, that’s only if you don’t believe the Fed’s rhetoric!

I can’t head to the Big Finish on such a sour note, so I’ll tell a “feel good” story!

I was going back through some old emails the other day looking for something, and came across some pictures from our 2005 trip to spring training that my good friend Rick, sent me… There was my fave right there… A picture of yours truly and my all-time fave baseball player… Ted Simmons… Why Ted Simmons isn’t in the Hall of Fame, is beyond me… But there he was, I sat down next to him, and Rick took the picture… Yours truly and Ted Simmons!

Currencies today 6/13/08: A$ .9355, kiwi .7460, C$ .9735, euro 1.5325, sterling 1.9450, Swiss .9510, ISK 79.50, rand 8.1350, krone 5.2525, SEK 6.1175, forint 161.40, zloty 2.2150, koruna 15.79, yen 108.25, baht 33.20, sing 1.38, HKD 7.8125, INR 42.92, China 6.9020, pesos 10.38, BRL 1.6340, dollar index 74.16, Oil $135.79, Silver $16.32, and Gold… $861.30

That’s it for today… Well… Yesterday was my 32nd Anniversary… My beautiful bride was surprised, as I’m sure it is a day that she would like to forget! HA! Just kidding… As I said above, we’re all headed to Busch Stadium tonight, I hope we don’t get rain delayed, as “sever storms” are supposed to roll through St. Louis again today… UGH! My little buddy, Alex threw a baseball through my beautiful brides car window last night… Glass everywhere… Obviously, his aim needs to get better! Another blow to my beloved Cardinals, as now we have two number one pitchers on the disabled list, and the best player in baseball, Albert Pujols on the list too. UGH!

Sunday is Father’s Day… This is a great day for me, as I always remember those Father’s Days when I was a kid, and my dad would have all his kids, and the kids in the neighborhood that called him dad, etc. all around him, looking quite satisfied… I’ll spend Sunday, much like those Father’s Days past, with all my kids around, and little “D”… So… I hope your Father’s Day is grand, and hug your dad if he’s still around! I hope today turns Fantastico, and you have a fabulous Friday and Wonderful Father’s Day weekend!

Chuck Butler
President
EverBank World Markets

Source: Questioning The Fed’s Rhetoric

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