There is a dichotomy occurring today. Gold is at record highs. Stocks are jumping. And bonds -- well, today's Treasury auction was oversubscribed. If this does not have you scratching your head, it should. Because on the surface it does not much sense. So let’s break today's events down. Gold traded as high as $1.045 per ounce, a new record. Speculators put new money into the metal after two events weakened the U.S. dollar further. First, Australia unexpectedly raised interest rates by 25 basis points. The Reserve Bank of Australia opined, "It is now prudent to begin gradually lessening the stimulus provided by monetary policy." Second, a rumor spread about secret talks between Russia, China, Japan, France and Gulf States to replace the dollar as the chief currency for oil. These talks were flatly denied, but the rumor is still having an impact. Stocks ...

A Wild and Wacky Wednesday…FOMC leave stimulus and QE in place…Will G-20 try to throw cold water on commodities? GATA receives a letter from the Fed…And Now… Today’s Pfennig

Good day… And a Thunderin’ Thursday to you! It’s Thundering and raining here, so I felt that naming today a “Thunderin’ Thursday” was bang on! We had a wild and wacky Wednesday yesterday, with the Fed Heads playing the part of the court jester… And… I want to know, right here, right now, why the media isn’t blasting Fed Head Honcho Big Ben Bernanke! I’ll tell you why they should be, in a minute…

OK… As I said, we had a wild and wacky Wednesday yesterday, as

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The yen and dollar rose on Tuesday as fears of further U.S. bank failures overshadowed unexpectedly strong U.S. manufacturing data, boosting the two currencies’ safe-haven appeal.

Major U.S. stock indexes <.DJI> <.SPX> <.IXIC> were down nearly 2 percent in afternoon U.S. trading as investors fretted that chatter from hedge funds on a bank failure could prove accurate.

The decline came despite upbeat economic news from the United States and euro zone as well as a stabilization in Chinese shares after a rout on Monday.

The hedge fund talk “is a huge driver” of currency markets, said Dan Cook, senior market analyst at IG Markets Inc in Chicago. “When you have data like we had but the Dow drops, people are running for that safe haven.”

In midafternoon trading in New York the dollar index <.DXY>, which tracks a basket of six major currencies, was up 0.8 percent at 78.786, rebounding from a session low

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German unemployment falls!  RBA disappoints the markets…  China to buy Canadian company…  ISM to print positive? And Now… Today’s Pfennig! Good day… And a Terrific Tuesday to you! And Welcome to September! Well… Here’s a thought to get our engines started this morning… Bill Bonner of the Daily Reckoning ( www.dailyreckoning.com )had this to add to my ranting about our National Debt going to over $20 Trillion in the next 10 years, due to deficit spending…

“The Obama administration, for example, expects to run $9 trillion in deficits over the next 10 years – and that number is based on a recovery! Imagine what will happen if the economy doesn’t recover?”

Now, that’s a nice comforting thought to start our day right? NOT! WAKE UP! Morning has broken, and the coffee is on… If you are still of the thought that this is all going to end up seashells and

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A strong currency move Monday… RBA leaves rates unchanged…And moves bias to neutral…Central Bank warnings have no teeth! And Now… Today’s Pfennig!

Good day… And a Terrific Tuesday to you! First day back yesterday was a killer for yours truly… Went home, and went to sleep… But, I’m back today, and feeling good. I did something to my left knee on vacation that left me hobbling, and leaning on my cane more than I usually do.

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Good day… And a Marvelous Monday to you! Hereeeeeee’s Baaaaaacccckkkkk… Oh no! Just when you thought it was safe to open the Daily Pfennig and not get lectured on deficit spending… He’s back! Oh well, It’s been over two weeks, first to Vancouver, then on vacation.

We’ve got a lot of catching up to do, eh? Mike and Chris did a Fantastico job of taking the conn on the Pfennig in my absence… So thanks to them… But it’s back to me, and besides a couple of days in San Francisco later this month, I’m all yours! (I bet that just makes you smile like a Cheshire Cat… NOT!)

OK… Rather than beat around the bush this morning, Chris left me this note from Friday’s price action, so let’s go to the Friday round up and then onto today! Here’s Chris!

The currency markets were fairly calm Friday morning, but at around 9:00

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More range trading…  SNB doesn’t target the franc…  Norges Bank cuts rate but looks forward…  Buy your gold and Snickers! And Now… Today’s Pfennig!

Good day… And a Tub Thumpin’ Thursday to you! It was 95 here yesterday, and forecast to be even warmer, or should I say hotter, today! WOW! Like overnight, it turned to summer, after the coldest, most wet, spring I can ever recall… I know, I’ll get 100 emails reminding me that summer doesn’t officially start until next week… I’m just talking about the summer-like weather!

The currencies remained in that range I talked about yesterday, with a slight bias to sell dollars, but not much of one. Crude Oil prices moved higher on the day and overnight, which doesn’t play well with a dollar rally, and therefore, has pushed the dollar down a bit… But again, we’re talking minor moves. It’s as if someone (traders) are waiting for something BIG to

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Yesterday was an absolute “10” on the crazy meter, and yet “We the People” just continue to sit and take whatever the government and media tell us is “best for us in these uncommon times.” I’ve got some interesting words on this later in the letter… It’s time for me to get on my soapbox once again, so… At least I’ve prepared you! But first… Some currency news!

Well… Yesterday, I left you with the thought that the currencies were selling off, after the Asian central banks all made statements regarding their support of the dollar as the world’s reserve currency… Here are some further thoughts on that.

Roll up to the mystery tour… The Magical Mystery Tour is waiting to take you away…

Yes… It’s U.S. Treasury Secretary Geithner’s Magical Mystery Tour (which should be re-named the Magical Currency Tour)! OK… Remember yesterday I told you the Asian countries of S. Korea,

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Euro goes back and forth over 1.42…Geithner make another promise to China…RBA leaves rates unchanged…The Mogambo on a Tuesday! And Now… Today’s Pfennig!

Good day… And a Terrific Tuesday to you! Well… The currencies, led by the euro, ran into a dollar road block yesterday, not once, not twice, but three times… The first two times the euro traded over the 1.42 figure, it fell back, but recovered to again try to remain over 1.42… It was a classic case of profit taking at a line of resistance… But the third time, was no charm for the euro, and thus it ended the day and night sessions below 1.42… But hey! Has this run from 1.2578 on March 1st, been something or what?

I see where UBS believes this is it for the euro… Sort of like the thought that a star burns the brightest right before it burns out…

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Euro trades past 1.42…  Geithner make a promise to China…  Central Bank meetings this week…  Canada’s Fin Min, speaks… And Now… Today’s Pfennig!

Well, on Friday I left you with the story of a currency rally for the ages… And it didn’t let up there! Although the rest of the day on Friday the bias was to sell dollars, the real chunk of the dollar wasn’t taken until last night in Asia… Here’s the deal folks, and this won’t be the first time you’ve heard this from me either!

Fundamentals! The fundamentals are coming home to roost, and the rot

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