The Golden Truth: ISM Manufacturing Report Deceptively Not Very Strong

Wednesday, September 1, 2010

ISM Manufacturing Report Deceptively Not Very Strong

Although it came in higher than expected, the August Purchasing Managers Index report was not as strong as the headlines would have you believe. The components of the index which had the greatest positive effect on the overall index level (and their indicated trend) were: Prices +4% (increasing faster), Imports 4% (growing faster), and Customer Inventories +4.5% (low but slowing). Here is the source of this information: LINK

As I suspected, pricing pressure is building in the system, inventory build is slowing down and imports are increasing, which is not really value-added in terms of putting U.S. workers to work or creating much-needed growth in our domestic capital base.

Once again the Truth is to be found somewhere other than where the media spotlight is shining...

4 comments:

AnonymousWednesday, 01 September, 2010
How about that 255 point ramp in the market right after the chief prevaricator's computer generated feel good mindcontrol massage? PPT big on the case. And that high volume special ramp job on high volume HFT the previous day to bring the month's closing to just under 5%? And JPMs dump on gold today on the LBMA Am fix? "Once again the Truth is to be found somewhere other than where the media spotlight is shining..." Right here at the Golden Truth among others.
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Dave in DenverWednesday, 01 September, 2010
Just skimmed thru the car sales report. It was UGLY. Adjusted for the population growth, the worst August since WW2.

Stock mkt reflecting expectations of a big QE program coming.
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Jhon smithTuesday, 28 September, 2010
This is really a good... thanks for sharing...
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BhimashankarTuesday, 28 September, 2010
you are really doing well. appreciate your efforts.
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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.