The Golden Truth: Pre-Weekend Comments...

Friday, February 4, 2011

Pre-Weekend Comments...

Another lazy Friday today. The post-NFP excitement in the markets dissipated pretty quickly and now it's back to business as usual for the usual smoke-blowers. I don't have much to add to the commentary put out by my friend and colleague "Jesse" on the employment report. You've likely already read his wisdom and insight but, if not, the link is HERE

I will dress that up with a few facts that can be found if you bother to read the actual BLS report, which is HERE. Briefly: the labor force participation rate dropped to a 26 yr. low. This is the pool of humans that the Govt determines to either be working or not working but actively looking for a job. The reason the unemployment rate dropped to 9% is because the Govt cut 504,000 people out of their labor force calculation. It's an absolute farce because what it tells us is that there's really no hope for many of these people to ever find work in this country. On a not seasonally adjusted basis, the more comprehensive U-6 report showed an unemployment rate of 17.3%. That's a lot closer to the truth but still low according the work done by John Williams on the matter. I guess the most remarkable aspect of today's huge miss vs. expectations is the fact that the number diverged so much from the much-cheered ADP employment report released earlier this week. Both ADP and the BLS use a very similar method of calculating (note: massaging) the data and calculating their cesspoolified number.

Remember, it's the BLS - leave the "L" out for the truth about what it really is and what the people who work there are full of...

Please read this comment published last night on inflation and gold by James Turk linked HERE. I've said this before and I'll say it now: In 10 years of doing exclusively the precious metals sector and analyzing the truth about our system, I respect James Turk's writing and analysis as much as anyone's out there.

Finally, here's the Friday tune from Charles "Mad Dog" Sheffield, a little-known musician from the Louisiana creole blues movement which proliferated when this country really was great:

Avete un divertimento fine settimana ognuno! (Have a fun weekend everyone!)

5 comments:

EconomicDisconnectFriday, 04 February, 2011
Gold and silver at nice pivot points here. I was dreaming of a lower entry but you were right, I was too low. May be looking next week to enter positions.

I usually favor defense in a Superbowl, but these Packers have that look of destiny. Packers 31, Steelers 28.
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AnonymousFriday, 04 February, 2011
Buon fine settimana a te !

Marco
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Dave in DenverFriday, 04 February, 2011
GYC, the daily charts on gold/silver look explosive, technically. The weekly have corrected to a level on the RSI where they've launched from over the last year or so.

That score looks like a good call but I hope we see a defensive struggle.
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EconomicDisconnectSunday, 06 February, 2011
31-25, almost my score projection!
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Dave in DenverSunday, 06 February, 2011
LOL. Good call. I was trying to remember who had the 31-28 score when the Pack got that last FG
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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.