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!)


  1. 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.

  2. Buon fine settimana a te !


  3. 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.

  4. LOL. Good call. I was trying to remember who had the 31-28 score when the Pack got that last FG