The Golden Truth: Does This Look Like an Economic Recovery?

Tuesday, January 26, 2010

Does This Look Like an Economic Recovery?

Verizon to Cut 13,000 Jobs as Businesses Reduce Lines

Wonder where the Bureau of Labor Statistics will bury that little nugget in Feb's jobless report. Here's the full article: LINK

There is just no way the Fed is going to raise interest rates or pull back liquidity anytime soon, unless it wants to create an economic freefall. Everything else is just noise. I am still on record with a forecast that the Fed will, in some form, announce an extension of its "Quantitative Easing" program before June. This trading bounce in the dollar is temporary and I expect to see the dollar hit new lows sometime this year. The rest is political rhetoric.

Wait, there's more: Home Depot to Cut 1,000 Workers LINK

8 comments:

AnonymousTuesday, 26 January, 2010
I have two engineers (sons), mechanical and civil graduating in May. No jobs, no recruiters on campus, no government hiring in either City, State or Federal levels, nothing out there. Oh, well. They will just keep trying. It can't stay this bad forever, can it?
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Dave in DenverTuesday, 26 January, 2010
Wow. I hope they find something. A friend of mine just told me that he has a neighbor who is an engineer (don't remember which flavor) who is mowing people's lawns.

Obama spent a million dollars per job to save 65,000 auto jobs, but people with skills that might offer a competitive edge in our economy are being left out of the largesse.
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AnonymousTuesday, 26 January, 2010
What?! There are still people left to fire! When will the blood letting stop?
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Dave in DenverTuesday, 26 January, 2010
LOL. When the dollar is low enough relative to every other currency such that we can produce industrial and manufactured goods that are price competitively superior to the Asia's.

Until then, it's watch the printing press roll on.
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Harvey GeeTuesday, 26 January, 2010
I'd have to ask, what American company hasn't already moved their manufacturing to Asia yet? If the dollar ever plummets that much, it'll be wide spread chaos here. It'll be like Zimbabwe on a lesser scale.

Unfortunately, touting Buy American is a day late and billions of dollar short... only because people will be less likely to pay higher price for necessities just to get by day to day.
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EconomicDisconnectTuesday, 26 January, 2010
Dave,
you should well know unemplyment is wonderful for inflation, no income, no rising prices. Maybe the FED's grand strategy after all?
Sarcasm off.
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BillTuesday, 26 January, 2010
Don't let Verizon laying of 13k convince you of anything but poor management.

Personal experience: I spent over 12 hours earlier this year trying to get them to ADD a business line to my office. Yes, I wanted to PAY them and BUY stuff.

After 15 automated menus on each call, 3 lost orders, 2 tech no-shows and a partridge in a pear tree, I said "f" this.

Skype is my new best friend. Verizon is one of the most poorly run companies that I'm surprised they haven't been given an official government name. Absolutely awful.

If you are ever faced with the horrible choice of sacrificing your first born or dealing with Verizon, by all means sacrifice your kid. The pain is way less than the alternative.
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Dave in DenverTuesday, 26 January, 2010
LOL. I dumped Verizon as well last year. I have friends who tell me that Majic Jack for home service works great, but I'm not sure it's good for office purposes.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.