Gold closed this week at a new ALL-TIME "weekly" high of $1228.10. So much for the suppression of the Gold price... Gold did not break higher, yet, but held it's own quite well into the end of this week. Silver was the stout Precious Metal this week...very nice.
Two note worthy pieces of information came to light late this week that have the potential for MAJOR negative ramifications for the US Dollar: Strength in Chinese exports, and the rising inflation on the Chinese mainland. Both should bring pressure from outside the country and from within the country to allow the Chinese currency to rise. Should China chose this path to deal with their rising internal inflation in particular, the US Dollar is in for a world of hurt. Because the number way for China to raise the value of the Yuan is to dump Dollars.
China's May Exports Rise 48.5%, Property Prices Jump BusinessWeek
China Inflation Rises to a 19-Month High New York Times
China Policy Outlook Murky After Mixed Bag of Data ABC News
I came across a video documentary earlier this week by Alex Jones completely by accident. I began watching it and was completely absorbed by it. Myself and others often refer to "The Man Behind The Curtain" when we are commenting on economic and geopolitical events. This video left my wondering, "Maybe there really is someone behind that curtain..."
The Council on Foreign Relations, The Trilateral Commission, The Bilderberg Group. We often here these names mentioned in passing, but who are they and what do they do? This video documentary sheds some light, some bright light, on these groups and the people affiliated with them that are ensconced in our federal government. It is alarming to say the least.
Now I am not one to pass along propaganda. or endorse fear mongering or conspiracy theories. But if you want to watch something that might make you stop and think, or wonder about "what is really going on", I suggest you make yourself a big pot of coffee one morning this weekend and give a little bit of your time to this "story". The title of the documentary, The Obama Deception, is a bit misleading as the story focuses mainly on what goes on behind the scenes of World Government than it does specifically on Mr. Obama. Had John McCain won the White House it might well be called The McCain Deception. If you like the piece, please pass it along to someone else who you think might like it as well...
The Obama Deception
http://www.youtube.com/watch?v=eAaQNACwaLw&NR=1&feature=fvwp
Friday, June 11, 2010
Wednesday, June 9, 2010
Bumbling Ben Guarantees Market Collapse
NEW YORK (AP) -- Oil prices rose to near $75 a barrel Wednesday, after Fed Chairman Ben Bernanke said European debt problems should not have a major impact on the U.S. economy.
NEW YORK (AP) -- The Dow Jones industrials climbed back above 10,000 Wednesday after Federal Reserve Chairman Ben Bernanke said debt problems in Europe might only amount to a "modest" drag on the U.S. economy if the financial markets can halt their slide.
I find it incredulous that people still listen when this silver tongued "wizard" opens his mouth. Have investors and traders not learned there lesson yet. Bumbling Ben Bernanke is full of sh*t. The man has diarrhea of the mouth folks. When Bumbling Ben make assurances, it is time to pack it in, and head for the hills. Has this "academic failure" ever been right about anything?
Take these now infamous Bumbling Ben quotes for instance:
March 28, 2007: “The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.”
May 17, 2007: “We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”
Feb. 28, 2008, on the potential for bank failures: “Among the largest banks, the capital ratios remain good and I don’t expect any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system.”
June 9, 2008: “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”
July 16, 2008: Fannie Mae and Freddie Mac are “adequately capitalized” and “in no danger of failing.”
A blind man would have a better chance of finding a penny in the street than Ben Bernanke would have of ever being right about anything. Bumbling Ben today told the entire "listening" World that the debt problems in Europe WILL have a major impact on the US Economy. If Ben felt the need to tell the Congress that Europe's debt crisis will not affect the US Economy, you can damn well bet that it will in a calamitous way.
The highlight of Bumbling Ben's testimony today in front of the House Budget Committee was his comment that the economy is getting better, but that jobs and housing are likely to remain weak. How can the economy, which is 70% driven by consumer spending and a strong housing market, be getting better if jobs and housing are "likely to remain weak"? I was laughing so hard at that comment I think I pulled a rib cage muscle.
I straightened up in time to here this choice quote fall from the wizard's diarrhea stained lips:
"We will take the actions necessary to ensure stability and continued economic recovery."
Are those helicopters I hear overhead? What has the Fed done to date to "ensure stability and ...economic recovery"? They have pumped over $2 TRILLION into the banking system!
In the words of Randy Bachman, "You ain't seen nothin' yet." What we have seen the Fed do, behind closed doors I might add...without consent of the Congress, the White House, OR the American taxpayers...is print money at an alarming rate and distribute it to their friends, and withhold it from their enemies. The quantitative easing to date, if you will, has only just begun. They're not finished by a long shot.
Ah, the necessary actions of a central bank in the midst of a debt crisis. Print money!
Gold, the TRUTHSAYER, is onto Bumbling Ben's Monopoly game. Now reaching new all-time nominal highs in all the major currencies, Gold has set it's sights on exposing the US Federal Reserve, and their Federal Reserve Notes we call money, as the frauds that they truly are.
After breaking out at 1227 Monday, Gold quickly scampered 2% higher to 1251. 2% is as far as the Gold Cartel will allow Gold to move higher without an effort to take the wind from it's sales. And right on cue, Gold was taken back down from it's recent all-time high today. But, technically, that was a good thing. Gold came down and retested Monday's breakout. This is the kind of action we want to see. We saw it in April and May of this year when gold ran to it's interim peak at 1249, and we are seeing it again here as Gold looks to mover towards the 1300 level and it's next interim peak.
The CRIMEX goons might be able to "slow" Gold ascent, but they are unable to stop it...
In the charts posted here I have attempted to show Gold's potential should Monday's breakout be for real. Gold has now successfully closed above 1227 three days in a row. The CRIMEX goons clearly have their backs against the wall as June delivery demands now account for 75% of their warehouse stocks available for delivery. With this CRIMEX Gold shortage now common knowledge in the Gold pits, it would seem the goons should find it difficult to scare investors and traders out of their long Gold positions here. Some supply might be coaxed from profit takers at higher prices, but it is going to take quite a load of naked sales to meet knew demand if prices continue to rise. This would only further weaken the goons position, and force a very frightening short squeeze of the goons.
On these charts I have attempted to draw three different views of Monday's breakout above 1227, and the projection towards the potential move higher for each. In an odd coincidence, all three projections arrive at the same number of 1287. Should Gold reach 1287, I suspect this is where the goons will begin to put a wall up in front of it. Momentum in a run higher will most likely take Gold to and just through 1300 however. Round numbers almost always encourage a pause, and/or profit taking in a rising market. [The first trip to 1250 in mid-May for example.]
Seasonality charts suggest Gold Tops in late June, and corrects into early July before building a base to assault new highs in the Fall. The volatility in today' currency markets, sovereign debt crisis' lined up like dominoes, and a darkening geopolitical landscape may make seasonality a moot point this year. Only time will tell.
For those still interested in trading Gold, a very good opportunity to profit on the short side may be just up ahead...however tread carefully as the environment Gold has moved into now has the potential to be very explosive to the upside.
As for Silver... Alas the tiny Silver market. Still under the heavy hand of the CRIMEX goons. These criminals are in deep-deep doo-doo. Their desperation is blatantly obvious now. Their actions going forward from here have the potential to destroy the CRIMEX Silver futures market for eternity. Trying to project a market that is so overwhelmingly rigged is foolish. However, recent support in the Gold/Silver Ratio[GSR] has been at 62. Should Gold run to 1287, a move to 62 in the GSR projects a Silver price of 20.75.
Knowing all too well that as soon as I begin to post charts projecting Gold's potential to move higher, the bottom all too often drops out of the market. Therefore we must take a moment to look at levels of support here should the goons maintain "control" of the price: 1224 / 1217 / 1196. Gold's 50 day moving average is now at 1186. Gold's 200 day moving average is now at 1114.
"Government spending - including government jobs - do not really make us richer. They make us poorer. If you could make people better off by hiring them to count each other, why not count them twice? Or three times?"
-Bill Bonner, The Daily Reckoning
The Bad News - Bad News on Jobs
by Brett Arends
The news on jobs isn't as bad as it seemed on Friday.
It's worse.
We already know that when you strip out the short-term Census jobs, May's jobs growth was a pitiful 41,000. But what people haven't realized is that the leading indicators for June are even worse. TrimTabs Investment Research Inc. tracks the real-time jobs picture by monitoring income tax deposits at the Treasury. And these have suddenly started falling. Based on the latest data, the firm predicts the economy will actually lose up to 200,000 jobs, net, in June. "The big news is that we have a job loss of about 200,000 coming in June," says Trim Tabs' Madeline Schnapp, "and the market isn't ready for it."
http://finance.yahoo.com/banking-budgeting/article/109739/the-bad-news-bad-news-on-jobs?mod=bb-budgeting&sec=topStories&pos=5&asset=&ccode
There Is No Money
By: Gary North
The voters believe that there is no connection to the liability side of citizenship. They believe fervently in the asset side of citizenship. They do not believe that the bills will ever come due for them. They believe fervently that they are entitled to every dime already promised, plus whatever more they can get Congress to enact.
They vote for their beliefs. They vote only for politicians who insist that the liability side of citizenship can be deferred or transferred to others. They vote only for politicians who promise that the asset side of citizenship will increase. Every politician knows this.
Liabilities and assets must match on every balance sheet. The government's balance sheet is the reverse of the citizenry's. Every asset possessed by a citizen is a liability to the government. Every liability must be matched by an asset. What is this asset? Future government income. Where will this come from? From taxes, from borrowing, and from borrowing from the central bank (inflation).
Citizens believe only in the asset side of their balance sheets. The assets – promised future income – must not be offset by liabilities: future taxes, including the inflation tax. The politicians encourage this belief. They vote ever-increasing assets based on future government income, but they refuse to tell voters about the size of these liabilities. They pretend that an off-budget liability is not really a liability. After all, this is what the government's own ledgers show.
The liabilities of the voters – the trust funds full of IOU's from the government on behalf of the citizenry – are counted as assets of the Social Security and Medicare systems. When anyone raises a question regarding the future source of the future funding of these assets – the general fund – he is dismissed as a crackpot, a Tea Party voter.
For voters, the trust funds' IOU's are all assets, not liabilities. For politicians, the same is true. The trust funds' IOUs from the government are assets politically, because the vast majority of voters believe that the trust funds' assets are not legal claims on their future income. The assets are future claims on someone else's future income, not theirs. "Don't tax you. Don't tax me. Tax the guy behind the tree."
http://news.goldseek.com/LewRockwell/1275834120.php
Banking System Collapse: Wake Up America Your Banks Are Dying
U.S. banks are being shut down by federal regulators at a staggering pace this year, and yet most Americans seem completely oblivious to it. In fact, federal officials have already shut down 81 U.S. banks this year, which is about double the number that were shut down at this time last year. So why aren't more people upset about this? Well, part of the reason is because the FDIC is doing it very, very quietly. The bank closings for each week are announced every Friday, which means that they pass through the news cycle over the weekend almost unnoticed. For example, banks in Nebraska, Mississippi and Illinois with total deposits of almost $2.3 billion were shut down by federal regulators on Friday. So did you hear about it before now? If not, why not? Shouldn't the fact that we are experiencing a banking system collapse be headline news? But most Americans are more than happy to remain blissfully ignorant of what is going on. In fact, most Americans seem far more interested in what is happening on American Idol or Dancing With The Stars. But when the American Dream starts dying for tens of millions of Americans as the economy collapses perhaps more people will start to care.
So just how bad is the banking system crisis?
http://endoftheamericandream.com/archives/banking-system-collapse-wake-up-america-your-banks-are-dying
What happened to the 'Death of the dollar'?
A video interview of F. William Engdahl
http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=5167
NEW YORK (AP) -- The Dow Jones industrials climbed back above 10,000 Wednesday after Federal Reserve Chairman Ben Bernanke said debt problems in Europe might only amount to a "modest" drag on the U.S. economy if the financial markets can halt their slide.
I find it incredulous that people still listen when this silver tongued "wizard" opens his mouth. Have investors and traders not learned there lesson yet. Bumbling Ben Bernanke is full of sh*t. The man has diarrhea of the mouth folks. When Bumbling Ben make assurances, it is time to pack it in, and head for the hills. Has this "academic failure" ever been right about anything?
Take these now infamous Bumbling Ben quotes for instance:
March 28, 2007: “The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.”
May 17, 2007: “We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”
Feb. 28, 2008, on the potential for bank failures: “Among the largest banks, the capital ratios remain good and I don’t expect any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system.”
June 9, 2008: “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”
July 16, 2008: Fannie Mae and Freddie Mac are “adequately capitalized” and “in no danger of failing.”
A blind man would have a better chance of finding a penny in the street than Ben Bernanke would have of ever being right about anything. Bumbling Ben today told the entire "listening" World that the debt problems in Europe WILL have a major impact on the US Economy. If Ben felt the need to tell the Congress that Europe's debt crisis will not affect the US Economy, you can damn well bet that it will in a calamitous way.
The highlight of Bumbling Ben's testimony today in front of the House Budget Committee was his comment that the economy is getting better, but that jobs and housing are likely to remain weak. How can the economy, which is 70% driven by consumer spending and a strong housing market, be getting better if jobs and housing are "likely to remain weak"? I was laughing so hard at that comment I think I pulled a rib cage muscle.
I straightened up in time to here this choice quote fall from the wizard's diarrhea stained lips:
"We will take the actions necessary to ensure stability and continued economic recovery."
Are those helicopters I hear overhead? What has the Fed done to date to "ensure stability and ...economic recovery"? They have pumped over $2 TRILLION into the banking system!
In the words of Randy Bachman, "You ain't seen nothin' yet." What we have seen the Fed do, behind closed doors I might add...without consent of the Congress, the White House, OR the American taxpayers...is print money at an alarming rate and distribute it to their friends, and withhold it from their enemies. The quantitative easing to date, if you will, has only just begun. They're not finished by a long shot.
Ah, the necessary actions of a central bank in the midst of a debt crisis. Print money!
Gold, the TRUTHSAYER, is onto Bumbling Ben's Monopoly game. Now reaching new all-time nominal highs in all the major currencies, Gold has set it's sights on exposing the US Federal Reserve, and their Federal Reserve Notes we call money, as the frauds that they truly are.
After breaking out at 1227 Monday, Gold quickly scampered 2% higher to 1251. 2% is as far as the Gold Cartel will allow Gold to move higher without an effort to take the wind from it's sales. And right on cue, Gold was taken back down from it's recent all-time high today. But, technically, that was a good thing. Gold came down and retested Monday's breakout. This is the kind of action we want to see. We saw it in April and May of this year when gold ran to it's interim peak at 1249, and we are seeing it again here as Gold looks to mover towards the 1300 level and it's next interim peak.
The CRIMEX goons might be able to "slow" Gold ascent, but they are unable to stop it...
In the charts posted here I have attempted to show Gold's potential should Monday's breakout be for real. Gold has now successfully closed above 1227 three days in a row. The CRIMEX goons clearly have their backs against the wall as June delivery demands now account for 75% of their warehouse stocks available for delivery. With this CRIMEX Gold shortage now common knowledge in the Gold pits, it would seem the goons should find it difficult to scare investors and traders out of their long Gold positions here. Some supply might be coaxed from profit takers at higher prices, but it is going to take quite a load of naked sales to meet knew demand if prices continue to rise. This would only further weaken the goons position, and force a very frightening short squeeze of the goons.
On these charts I have attempted to draw three different views of Monday's breakout above 1227, and the projection towards the potential move higher for each. In an odd coincidence, all three projections arrive at the same number of 1287. Should Gold reach 1287, I suspect this is where the goons will begin to put a wall up in front of it. Momentum in a run higher will most likely take Gold to and just through 1300 however. Round numbers almost always encourage a pause, and/or profit taking in a rising market. [The first trip to 1250 in mid-May for example.]
Seasonality charts suggest Gold Tops in late June, and corrects into early July before building a base to assault new highs in the Fall. The volatility in today' currency markets, sovereign debt crisis' lined up like dominoes, and a darkening geopolitical landscape may make seasonality a moot point this year. Only time will tell.
For those still interested in trading Gold, a very good opportunity to profit on the short side may be just up ahead...however tread carefully as the environment Gold has moved into now has the potential to be very explosive to the upside.
As for Silver... Alas the tiny Silver market. Still under the heavy hand of the CRIMEX goons. These criminals are in deep-deep doo-doo. Their desperation is blatantly obvious now. Their actions going forward from here have the potential to destroy the CRIMEX Silver futures market for eternity. Trying to project a market that is so overwhelmingly rigged is foolish. However, recent support in the Gold/Silver Ratio[GSR] has been at 62. Should Gold run to 1287, a move to 62 in the GSR projects a Silver price of 20.75.
Knowing all too well that as soon as I begin to post charts projecting Gold's potential to move higher, the bottom all too often drops out of the market. Therefore we must take a moment to look at levels of support here should the goons maintain "control" of the price: 1224 / 1217 / 1196. Gold's 50 day moving average is now at 1186. Gold's 200 day moving average is now at 1114.
"Government spending - including government jobs - do not really make us richer. They make us poorer. If you could make people better off by hiring them to count each other, why not count them twice? Or three times?"
-Bill Bonner, The Daily Reckoning
The Bad News - Bad News on Jobs
by Brett Arends
The news on jobs isn't as bad as it seemed on Friday.
It's worse.
We already know that when you strip out the short-term Census jobs, May's jobs growth was a pitiful 41,000. But what people haven't realized is that the leading indicators for June are even worse. TrimTabs Investment Research Inc. tracks the real-time jobs picture by monitoring income tax deposits at the Treasury. And these have suddenly started falling. Based on the latest data, the firm predicts the economy will actually lose up to 200,000 jobs, net, in June. "The big news is that we have a job loss of about 200,000 coming in June," says Trim Tabs' Madeline Schnapp, "and the market isn't ready for it."
http://finance.yahoo.com/banking-budgeting/article/109739/the-bad-news-bad-news-on-jobs?mod=bb-budgeting&sec=topStories&pos=5&asset=&ccode
There Is No Money
By: Gary North
The voters believe that there is no connection to the liability side of citizenship. They believe fervently in the asset side of citizenship. They do not believe that the bills will ever come due for them. They believe fervently that they are entitled to every dime already promised, plus whatever more they can get Congress to enact.
They vote for their beliefs. They vote only for politicians who insist that the liability side of citizenship can be deferred or transferred to others. They vote only for politicians who promise that the asset side of citizenship will increase. Every politician knows this.
Liabilities and assets must match on every balance sheet. The government's balance sheet is the reverse of the citizenry's. Every asset possessed by a citizen is a liability to the government. Every liability must be matched by an asset. What is this asset? Future government income. Where will this come from? From taxes, from borrowing, and from borrowing from the central bank (inflation).
Citizens believe only in the asset side of their balance sheets. The assets – promised future income – must not be offset by liabilities: future taxes, including the inflation tax. The politicians encourage this belief. They vote ever-increasing assets based on future government income, but they refuse to tell voters about the size of these liabilities. They pretend that an off-budget liability is not really a liability. After all, this is what the government's own ledgers show.
The liabilities of the voters – the trust funds full of IOU's from the government on behalf of the citizenry – are counted as assets of the Social Security and Medicare systems. When anyone raises a question regarding the future source of the future funding of these assets – the general fund – he is dismissed as a crackpot, a Tea Party voter.
For voters, the trust funds' IOU's are all assets, not liabilities. For politicians, the same is true. The trust funds' IOUs from the government are assets politically, because the vast majority of voters believe that the trust funds' assets are not legal claims on their future income. The assets are future claims on someone else's future income, not theirs. "Don't tax you. Don't tax me. Tax the guy behind the tree."
http://news.goldseek.com/LewRockwell/1275834120.php
Banking System Collapse: Wake Up America Your Banks Are Dying
U.S. banks are being shut down by federal regulators at a staggering pace this year, and yet most Americans seem completely oblivious to it. In fact, federal officials have already shut down 81 U.S. banks this year, which is about double the number that were shut down at this time last year. So why aren't more people upset about this? Well, part of the reason is because the FDIC is doing it very, very quietly. The bank closings for each week are announced every Friday, which means that they pass through the news cycle over the weekend almost unnoticed. For example, banks in Nebraska, Mississippi and Illinois with total deposits of almost $2.3 billion were shut down by federal regulators on Friday. So did you hear about it before now? If not, why not? Shouldn't the fact that we are experiencing a banking system collapse be headline news? But most Americans are more than happy to remain blissfully ignorant of what is going on. In fact, most Americans seem far more interested in what is happening on American Idol or Dancing With The Stars. But when the American Dream starts dying for tens of millions of Americans as the economy collapses perhaps more people will start to care.
So just how bad is the banking system crisis?
http://endoftheamericandream.com/archives/banking-system-collapse-wake-up-america-your-banks-are-dying
What happened to the 'Death of the dollar'?
A video interview of F. William Engdahl
http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=5167
Monday, June 7, 2010
Jobs Out Of Thin Air Go Up In Smoke
After becoming extremely agitated by the CRIMEX goons late last week, I chose to go cold turkey this weekend with respect to the economy and the Precious Metals markets after seeing the TRUTH about the phony jobs creation in the US revealed for the whole world to see Friday morning. How refreshing.
Friday's non-farm payrolls report was without a doubt the fattest lipstick painted pig that ever waddled across the World financial forum. If it wasn't so sad and alarming, it would have been highly amusing. Well, put in the context of our self anointed messianic President's expectations, Friday's jobs numbers were hysterical.
On Wednesday of last week in a highly touted speech on the economy in Pittsburgh , The Great One said he believed that the upcoming May employment report would show strong growth in U.S. payrolls.
"We expect to see strong jobs growth in Friday's report," Obama said in a speech at Carnegie Mellon University. "This economy is getting stronger by the day."
Since he is the Grand Poohba of the Washington bureaucracy that conjures up government statistics, it was a good bet that the top Waterbuffalo's expectations would be met by those who lie for him.
For an individual who claims to have studied and emulated President Abraham Lincoln we might have expected a bit more understated cheerleading from the head cheerleader. But then, he was trying hard to distract from his failed response to the catastrophe bubbling a mile below the Gulf of Mexico.
"If you once forfeit the confidence of your fellow citizens, you can never regain their respect and esteem. It is true that you may fool all of the people some of the time; you can even fool some of the people all of the time; but you can't fool all of the people all of the time."
-Abraham Lincoln
Friday morning came, and along with it the May Non-farm Payrolls Report. As the Man Of Change finished his morning coffee, he tuned in to his favorite morning worship programming found on CNBC. Our Grand Poohba was met by the ashen-faced Financial Glee Club starring back at him in dismay over the equities markets unexpected negative reaction to the wonderful payroll numbers.
Economy adds 431K jobs but few in private sector- AP
Job creation by private companies grew at the slowest pace of the year in May, even while the hiring of temporary census workers drove overall payrolls up 431,000. The unemployment rate dipped to 9.7 percent as many people gave up searching for work.
"WTF?" the Man Of Change said under his breath as his coffee cup slipped to the floor.
"These numbers are just what the economists and statisticians ordered!" the Man Of Change says through clenched teeth, his voice beginning to rise in anger.
"Jobs! The people want jobs, I give them 400,000 jobs. And this is the response I get?" the Man Of Change cries out as he turns towards the East, and falls to his knees.
What The Man Of Change failed to grasp is that these were not jobs, they were just numbers. Numbers tossed together in a "spinning" bowl with the expectations that they would come out of the oven as a big cake everyone would love to eat. Unfortunately, somebody opened the oven door before the cake was done baking...and it fell flat.
In an effort to distract the public's attention from his failed response to the oil spill in the gulf, the Man Of Change chose to slather lipstick on a ballooning pig and successfully shot himself in the other foot. The Man Of Change is quickly losing all credibility [as if he ever really had any]. One by one, week by week, Americans are waking up to "The Big Mistake" they made in the Fall of 2008. With the mid-term election now just five months away this spells big trouble for incumbent politicians in both parties come the first Tuesday in November. The Cheerleading will only get louder from here. The "spin" will soon become a vortex of lies aimed at confusing the masses, and obfuscating the TRUTH: Your Country Is Broke.
Dave Kranzler at The Golden Truth summed up Friday's non-farm payrolls report eloquently, and succinctly. I could not have said it better myself:
WHOOPS! I Thought Obama Said To Expect A Strong Employment Report
Based on today's true picture of the economy and employment, what we can expect is a massive new stimulus Bill to make its way through Congress, to be followed by an even more massive Quantitative Easing (aka printing press/helicopter drop operation) to be announced by the Fed. Obviously this will be hugely bullish for gold and silver and is probably why gold is currently up the day despite the bloodbath in the stock market.
Let's look at the facts and figures. The headline number reported that U.S. payrolls rose by 431,000 in May. BUT, 411,000 of that number was from the temporary employment of Census workers. I know someone who took a Census job and his work is finished and he can't find a private sector job to save his life.
The Government is reporting that the private sector added 41,000 jobs. Hmmm...By now everyone probably at least has heard about the nefarious Birth/Death model of jobs creation used by the BLS. This fraudulent metric is used to calculate the number jobs they THINK has been created by new businesses formed during the month less businesses that closed during the month. Interesting theory to say the least. The Birth/Death model for the month of May estimates that 215,000 net new jobs were created by new business start-ups. Anyone know of anyone who has started a new business and hired people? I don't.
Here's a sampling of the business sectors which the Govt purports to have created the most jobs based on new business formation: 78k in Leisure and Hospitality (medical marijuana shops and liquor stores?), 27k in Business and Professional Services (prostitutes maybe?), and 41k in Construction (???). Go figure. For accounting purposes, it's not accurate just to subtract the 215k birth/death jobs from the headline number to figure out the real jobs picture. But what we can say with 100% certainty is that, given the fantasy number of 215k birth/death jobs, the private sector absolutely did not create 41k payroll jobs. In fact, we can generalize that if you subtract the 411k census jobs from 431k total jobs, the private sector payroll actually declined, probably by about 100k (I will assume some new jobs actually were created by existing and new businesses). Here's a link to the Birth/Death data: Govt Fantasy.
The unemployment rate is another matter altogether. The Govt claims that the jobless rate fell to 9.7% from 9.9% the month before. BUT, the overall labor force declined by 322k. What that number represents is people who want jobs but have given up looking. If you go by the Govt "U6" report, which shows the number of people who are working part-time but want to work full-time or who stopped looking but want to work, the unemployment rate is more like 17%. If you use the method of unemployment calculation used when Clinton was President - a number that John Williams of shadowstats.com calculates, the jobless rate is more like 22%.
Two days ago Obama gave a speech at Carnegie Mellon in which he proudly proclaimed that we should expect a strong jobs report today: HUH? I didn't know Obama had any economics classes in college or grad school. But does anyone consider today's jobs report to be strong? We better HOPE and pray that Obama can CHANGE course and become the leader and reformer that he marketed himself to be during his campaign. If he's no better as a President than he is as an economist, we're screwed.
http://truthingold.blogspot.com/2010/06/whoops-i-thought-obama-said-to-expect.html
Thank you Dave. I urge everyone to read Dave's posts daily. This man has 20/20 vision.
"This shows that there's not much in the economy able to generate ongoing jobs growth, and that raises the question of the sustainability of the recovery," said Joseph Battipaglia, market strategist at Stifel Nicolaus in Yardley, Pennsylvania.
Obama’s Optimism Puzzles Investors on Jobs Forecast
June 4 (Bloomberg) -- President Barack Obama’s upbeat comments on the U.S. job market earlier this week left investors and analysts puzzled after a government report today showed payroll growth was weaker than forecast.
“People definitely felt suckered into thinking this was going to be a good number,” said Kevin Shacknofsky, who manages $2.2 billion for Alpine Mutual Funds in Purchase, New York. “The expectations for the jobs data were driven up and the market rallied earlier in the week when the president hinted the job number would be great.”
http://www.businessweek.com/news/2010-06-04/obama-s-optimism-puzzles-investors-on-jobs-forecast-update1-.html
Obama made his jobs "prediction" on Wednesday of last week. What slipped under the radar of the Financial Glee Club too busy touting the Man Of Change's economic forecast was a speech that Bumbling Ben gave the following day in Michigan that might have shed some much needed light on the TRUTH about the jobs market.
Bernanke says job scarcity a concern
"I raise this issue here because healthy small businesses, including start-ups as well as going concerns, are crucial to creating jobs and improving employment security," he told a meeting at the Chicago Fed's Detroit branch organized to discuss the financing needs of Michigan's small businesses.
Bernanke noted that loans to small businesses dropped from nearly $700 billion in the second quarter of 2008 to about $660 billion in the first quarter of 2010. He conceded it was hard to tell exactly why.
"An important but difficult-to-answer question is how much of this reduction has been driven by weaker demand for loans from small businesses and how much by restricted credit availability," Bernanke said.
He said the Fed was still examining causes for the reduced flow of credit to businesses and it was "vital" it stay focused on discovering why it was happening and correcting the situation.
http://www.reuters.com/article/idUSTRE6523SN20100603
The Fed Chairman's astute observation here blows huge holes in the labor Departments "Birth/Death" jobs model. The government claims there were 215,000 new jobs created in May by "new business start ups". How does a recently unemployed worker create a new business without money and a line of credit from a bank?
I know I am beating this dead horse into a bloody pulp here, but the cheerleading has got to stop! The reality here in America is that nearly 20% of the work force is unemployed. All the lipstick and vanilla frosting in the world is not going to change that fact. Headlines do not create growth. Pretending that jobs are being created will ultimately be hugely counterproductive. As I noted earlier, Americans are slowly waking up to the TRUTH about their country, it's broke. The TRUTH about their country's leadership, it has none. Change IS coming to America. But it won't be pretty, and it won't be scripted on a teleprompter.
Economy Stalling as Easy Money Effect Wears Off!
by Mike Larson
The evidence is coming fast and furious — and it all points in the same direction! Washington’s “bought and paid for” economic recovery is stalling out as the easy money effect wears off.
Just consider what we’ve learned in the past several days …
• Building permits for single and multifamily homes tanked 11.5 percent in April. That left permits at a seasonally adjusted annual rate of 606,000, the lowest since last October.
Builders pull permits before they begin projects. So this leading indicator of construction activity is pointing to a renewed slump in the coming months.
• Initial jobless claims stopped declining in February. After hitting 439,000; they’ve begun a gradual upward climb again.
• Almost 4.7 million Americans are now stuck on the jobless rolls, with little prospect of finding gainful employment. That’s roughly two million above average.
• Durable goods orders outside of the volatile transportation sector fell 1 percent in April. A key indicator of business investment in the report slumped 2.4 percent.
• First-quarter Gross Domestic Product growth fell to 3 percent from 5.6 percent at the end of 2009.
• Personal spending growth? Same story. It dropped from 0.6 percent in March to nil in April.
• To top it all off, a benchmark gauge of manufacturing activity lost steam in May, while purchase mortgage applications just fell to the lowest level in more than 13 years.
http://www.moneyandmarkets.com/economy-stalling-as-easy-money-effect-wears-off-39292
Treasury Prices Soar, Post Weekly Gains As Stocks, Euro Plunge
Wall Street Journal
NEW YORK (Dow Jones)--Prices of Treasury securities rose sharply Friday and posted a weekly gain as growing worries about the global economic outlook fueled demand for safe assets.
http://online.wsj.com/article/BT-CO-20100604-711490.html?mod=WSJ_latestheadlines
Ah, the now age old flight to safety of US Treasuries. The question begs to be asked every time I see a headline touting the "safety" of US Treasuries: How can US TREASURIES be safe, when the US Government has to borrow the money to pay you back?
Bonds: Avoid the next great bubble
Over the past decade, holding bonds was considerably safer than holding stocks. After the tech bubble burst in 2000 and equities lost almost half their value over the next three years, corporate bonds surged nearly 50%. And when the global financial crisis erupted two years ago, U.S. Treasury bonds were just about the only investment to retain value. The flight to safety in recent weeks, driven by concerns over Europe's mounting budget problems, has moved investors back into treasuries for the time being yet again.
On top of that, few investors know what it's like to live through a true bear market in bonds. Fueled by falling interest rates (long-term rates were as high as 15% in the early '80s), the current bull market has lasted for 30 years.
The resulting sense of safety -- the belief that bonds don't go bad -- is contributing to this feeding frenzy in fixed-income funds and ETFs. And all that money flowing in has made bonds very expensive.
It's true that bonds are less volatile than stocks. But in fact they lose money just as often as equities do. "I don't think the public understands they can lose money in bond funds," says James Swanson, chief investment strategist at MFS, an asset-management firm in Boston.
http://money.cnn.com/2010/06/04/pf/bond_bubble.moneymag/
Yeah, and they didn't think housing prices ever go down either. The bond market bubble is the mother of all financial disasters just waiting to happen. It's not a matter of if the bond bubble bursts, but when.
Holy Cow! 5 Reasons Why You Need to Buy Gold Now!
by Sean Brodrick
Europe is having a “Holy Cow!” moment right now. That’s the kind of moment when the basic assumptions that form the “solid” cornerstones of your life suddenly crumble like soft clay.
Europe’s assumption: That the euro would last forever. WRONG! Many people wonder if the euro will exist in a few years. Heck, the euro as we know it might not last past next month!
And that’s just one of five forces that are poised to send gold hurtling higher … to $1,350 … $1,450, $2,300 and beyond. And this could happen a lot faster than most people can believe possible.
Force #1 — Britain Tells Greece: “Abandon the Euro”
Force #2 — Central Bank Buying Is Poised to Start in Earnest
Force #3 — Smart Money Is Loading Up on Gold with Both Hands
Force #4 — Supply Is Stretched to the Breaking Point
Force #5 — The U.S. Financial Crisis Is Just Starting
http://www.uncommonwisdomdaily.com/holy-cow-5-reasons-why-you-need-to-buy-gold-now-9516?FIELD9=1
50 Statistics About The U.S. Economy That Are Almost Too Crazy To Believe
Most Americans know that the U.S. economy is in bad shape, but what most Americans don't know is how truly desperate the financial situation of the United States really is. The truth is that what we are experiencing is not simply a "downturn" or a "recession". What we are witnessing is the beginning of the end for the greatest economic machine that the world has ever seen. Our greed and our debt are literally eating our economy alive. Total government, corporate and personal debt has now reached 360 percent of GDP, which is far higher than it ever reached during the Great Depression era. We have nearly totally dismantled our once colossal manufacturing base, we have shipped millions upon millions of middle class jobs overseas, we have lived far beyond our means for decades and we have created the biggest debt bubble in the history of the world. A great day of financial reckoning is fast approaching, and the vast majority of Americans are totally oblivious.
But the truth is that you cannot defy the financial laws of the universe forever. What goes up must come down. The borrower is the servant of the lender. Cutting corners always catches up with you in the end.
Sometimes it takes cold, hard numbers for many of us to fully realize the situation that we are facing.
So, the following are 50 very revealing statistics about the U.S. economy that are almost too crazy to believe....
http://endoftheamericandream.com/archives/50-statistics-about-the-u-s-economy-that-are-almost-too-crazy-to-believe
After holding firm overnight in Asia, Gold began to get pressured lower as the markets in London opened for the week. With London and new York the epicenters of the West's financial destruction, it is little wonder that the TRUTH would come under further price suppression as the wheels of their Ponzi Financial System begin to fly off at every turn. Near-term support in Gold now rests at 1210, with firmer support around 1197.
Silver is getting it's usual illegal suppression in times like these. Adding to the CRIMEX goons activity is the white metals industrial commodity ties. Though valid, these ties to Silver's industrial base are far overstated when one considers the supply issues in Silver at this time. With the entire Silver supply at the CRIMEX locked down by March and now May delivery demands, it is difficult to understand Silver's weakness based on "falling demand" for it in manufacturing. There is little or NO Silver available to meet ANY demand at this time, and the price "should" be soaring on this shortage story alone. Alas however, as the CFTC sits idely by, the CRIMEX goons continue to sell Silver they do not own into the market in the hopes of getting scared investors to dump their Silver to help meet delivery demands. This is rediculous. The goons would have far better luck getting sales from Silver investors taking profits as prices rise than they will by supressing the price...Lower prices will only INCREASE demand, and further exacerbate their supply issues on the CRIMEX.
Silver is clinging to key support here, with major support now resting near 16.50. Considering CRIMEX supply issues, and record setting sales in May of Silver Eagles at the US Mint, one would have to look at today's prices as a gift from the government. Add to your physical supply of Silver while there is still supply to draw from.
Never look a gift horse in the mouth.
Friday's non-farm payrolls report was without a doubt the fattest lipstick painted pig that ever waddled across the World financial forum. If it wasn't so sad and alarming, it would have been highly amusing. Well, put in the context of our self anointed messianic President's expectations, Friday's jobs numbers were hysterical.
On Wednesday of last week in a highly touted speech on the economy in Pittsburgh , The Great One said he believed that the upcoming May employment report would show strong growth in U.S. payrolls.
"We expect to see strong jobs growth in Friday's report," Obama said in a speech at Carnegie Mellon University. "This economy is getting stronger by the day."
Since he is the Grand Poohba of the Washington bureaucracy that conjures up government statistics, it was a good bet that the top Waterbuffalo's expectations would be met by those who lie for him.
For an individual who claims to have studied and emulated President Abraham Lincoln we might have expected a bit more understated cheerleading from the head cheerleader. But then, he was trying hard to distract from his failed response to the catastrophe bubbling a mile below the Gulf of Mexico.
"If you once forfeit the confidence of your fellow citizens, you can never regain their respect and esteem. It is true that you may fool all of the people some of the time; you can even fool some of the people all of the time; but you can't fool all of the people all of the time."
-Abraham Lincoln
Friday morning came, and along with it the May Non-farm Payrolls Report. As the Man Of Change finished his morning coffee, he tuned in to his favorite morning worship programming found on CNBC. Our Grand Poohba was met by the ashen-faced Financial Glee Club starring back at him in dismay over the equities markets unexpected negative reaction to the wonderful payroll numbers.
Economy adds 431K jobs but few in private sector- AP
Job creation by private companies grew at the slowest pace of the year in May, even while the hiring of temporary census workers drove overall payrolls up 431,000. The unemployment rate dipped to 9.7 percent as many people gave up searching for work.
"WTF?" the Man Of Change said under his breath as his coffee cup slipped to the floor.
"These numbers are just what the economists and statisticians ordered!" the Man Of Change says through clenched teeth, his voice beginning to rise in anger.
"Jobs! The people want jobs, I give them 400,000 jobs. And this is the response I get?" the Man Of Change cries out as he turns towards the East, and falls to his knees.
What The Man Of Change failed to grasp is that these were not jobs, they were just numbers. Numbers tossed together in a "spinning" bowl with the expectations that they would come out of the oven as a big cake everyone would love to eat. Unfortunately, somebody opened the oven door before the cake was done baking...and it fell flat.
In an effort to distract the public's attention from his failed response to the oil spill in the gulf, the Man Of Change chose to slather lipstick on a ballooning pig and successfully shot himself in the other foot. The Man Of Change is quickly losing all credibility [as if he ever really had any]. One by one, week by week, Americans are waking up to "The Big Mistake" they made in the Fall of 2008. With the mid-term election now just five months away this spells big trouble for incumbent politicians in both parties come the first Tuesday in November. The Cheerleading will only get louder from here. The "spin" will soon become a vortex of lies aimed at confusing the masses, and obfuscating the TRUTH: Your Country Is Broke.
Dave Kranzler at The Golden Truth summed up Friday's non-farm payrolls report eloquently, and succinctly. I could not have said it better myself:
WHOOPS! I Thought Obama Said To Expect A Strong Employment Report
Based on today's true picture of the economy and employment, what we can expect is a massive new stimulus Bill to make its way through Congress, to be followed by an even more massive Quantitative Easing (aka printing press/helicopter drop operation) to be announced by the Fed. Obviously this will be hugely bullish for gold and silver and is probably why gold is currently up the day despite the bloodbath in the stock market.
Let's look at the facts and figures. The headline number reported that U.S. payrolls rose by 431,000 in May. BUT, 411,000 of that number was from the temporary employment of Census workers. I know someone who took a Census job and his work is finished and he can't find a private sector job to save his life.
The Government is reporting that the private sector added 41,000 jobs. Hmmm...By now everyone probably at least has heard about the nefarious Birth/Death model of jobs creation used by the BLS. This fraudulent metric is used to calculate the number jobs they THINK has been created by new businesses formed during the month less businesses that closed during the month. Interesting theory to say the least. The Birth/Death model for the month of May estimates that 215,000 net new jobs were created by new business start-ups. Anyone know of anyone who has started a new business and hired people? I don't.
Here's a sampling of the business sectors which the Govt purports to have created the most jobs based on new business formation: 78k in Leisure and Hospitality (medical marijuana shops and liquor stores?), 27k in Business and Professional Services (prostitutes maybe?), and 41k in Construction (???). Go figure. For accounting purposes, it's not accurate just to subtract the 215k birth/death jobs from the headline number to figure out the real jobs picture. But what we can say with 100% certainty is that, given the fantasy number of 215k birth/death jobs, the private sector absolutely did not create 41k payroll jobs. In fact, we can generalize that if you subtract the 411k census jobs from 431k total jobs, the private sector payroll actually declined, probably by about 100k (I will assume some new jobs actually were created by existing and new businesses). Here's a link to the Birth/Death data: Govt Fantasy.
The unemployment rate is another matter altogether. The Govt claims that the jobless rate fell to 9.7% from 9.9% the month before. BUT, the overall labor force declined by 322k. What that number represents is people who want jobs but have given up looking. If you go by the Govt "U6" report, which shows the number of people who are working part-time but want to work full-time or who stopped looking but want to work, the unemployment rate is more like 17%. If you use the method of unemployment calculation used when Clinton was President - a number that John Williams of shadowstats.com calculates, the jobless rate is more like 22%.
Two days ago Obama gave a speech at Carnegie Mellon in which he proudly proclaimed that we should expect a strong jobs report today: HUH? I didn't know Obama had any economics classes in college or grad school. But does anyone consider today's jobs report to be strong? We better HOPE and pray that Obama can CHANGE course and become the leader and reformer that he marketed himself to be during his campaign. If he's no better as a President than he is as an economist, we're screwed.
http://truthingold.blogspot.com/2010/06/whoops-i-thought-obama-said-to-expect.html
Thank you Dave. I urge everyone to read Dave's posts daily. This man has 20/20 vision.
"This shows that there's not much in the economy able to generate ongoing jobs growth, and that raises the question of the sustainability of the recovery," said Joseph Battipaglia, market strategist at Stifel Nicolaus in Yardley, Pennsylvania.
Obama’s Optimism Puzzles Investors on Jobs Forecast
June 4 (Bloomberg) -- President Barack Obama’s upbeat comments on the U.S. job market earlier this week left investors and analysts puzzled after a government report today showed payroll growth was weaker than forecast.
“People definitely felt suckered into thinking this was going to be a good number,” said Kevin Shacknofsky, who manages $2.2 billion for Alpine Mutual Funds in Purchase, New York. “The expectations for the jobs data were driven up and the market rallied earlier in the week when the president hinted the job number would be great.”
http://www.businessweek.com/news/2010-06-04/obama-s-optimism-puzzles-investors-on-jobs-forecast-update1-.html
Obama made his jobs "prediction" on Wednesday of last week. What slipped under the radar of the Financial Glee Club too busy touting the Man Of Change's economic forecast was a speech that Bumbling Ben gave the following day in Michigan that might have shed some much needed light on the TRUTH about the jobs market.
Bernanke says job scarcity a concern
"I raise this issue here because healthy small businesses, including start-ups as well as going concerns, are crucial to creating jobs and improving employment security," he told a meeting at the Chicago Fed's Detroit branch organized to discuss the financing needs of Michigan's small businesses.
Bernanke noted that loans to small businesses dropped from nearly $700 billion in the second quarter of 2008 to about $660 billion in the first quarter of 2010. He conceded it was hard to tell exactly why.
"An important but difficult-to-answer question is how much of this reduction has been driven by weaker demand for loans from small businesses and how much by restricted credit availability," Bernanke said.
He said the Fed was still examining causes for the reduced flow of credit to businesses and it was "vital" it stay focused on discovering why it was happening and correcting the situation.
http://www.reuters.com/article/idUSTRE6523SN20100603
The Fed Chairman's astute observation here blows huge holes in the labor Departments "Birth/Death" jobs model. The government claims there were 215,000 new jobs created in May by "new business start ups". How does a recently unemployed worker create a new business without money and a line of credit from a bank?
I know I am beating this dead horse into a bloody pulp here, but the cheerleading has got to stop! The reality here in America is that nearly 20% of the work force is unemployed. All the lipstick and vanilla frosting in the world is not going to change that fact. Headlines do not create growth. Pretending that jobs are being created will ultimately be hugely counterproductive. As I noted earlier, Americans are slowly waking up to the TRUTH about their country, it's broke. The TRUTH about their country's leadership, it has none. Change IS coming to America. But it won't be pretty, and it won't be scripted on a teleprompter.
Economy Stalling as Easy Money Effect Wears Off!
by Mike Larson
The evidence is coming fast and furious — and it all points in the same direction! Washington’s “bought and paid for” economic recovery is stalling out as the easy money effect wears off.
Just consider what we’ve learned in the past several days …
• Building permits for single and multifamily homes tanked 11.5 percent in April. That left permits at a seasonally adjusted annual rate of 606,000, the lowest since last October.
Builders pull permits before they begin projects. So this leading indicator of construction activity is pointing to a renewed slump in the coming months.
• Initial jobless claims stopped declining in February. After hitting 439,000; they’ve begun a gradual upward climb again.
• Almost 4.7 million Americans are now stuck on the jobless rolls, with little prospect of finding gainful employment. That’s roughly two million above average.
• Durable goods orders outside of the volatile transportation sector fell 1 percent in April. A key indicator of business investment in the report slumped 2.4 percent.
• First-quarter Gross Domestic Product growth fell to 3 percent from 5.6 percent at the end of 2009.
• Personal spending growth? Same story. It dropped from 0.6 percent in March to nil in April.
• To top it all off, a benchmark gauge of manufacturing activity lost steam in May, while purchase mortgage applications just fell to the lowest level in more than 13 years.
http://www.moneyandmarkets.com/economy-stalling-as-easy-money-effect-wears-off-39292
Treasury Prices Soar, Post Weekly Gains As Stocks, Euro Plunge
Wall Street Journal
NEW YORK (Dow Jones)--Prices of Treasury securities rose sharply Friday and posted a weekly gain as growing worries about the global economic outlook fueled demand for safe assets.
http://online.wsj.com/article/BT-CO-20100604-711490.html?mod=WSJ_latestheadlines
Ah, the now age old flight to safety of US Treasuries. The question begs to be asked every time I see a headline touting the "safety" of US Treasuries: How can US TREASURIES be safe, when the US Government has to borrow the money to pay you back?
Bonds: Avoid the next great bubble
Over the past decade, holding bonds was considerably safer than holding stocks. After the tech bubble burst in 2000 and equities lost almost half their value over the next three years, corporate bonds surged nearly 50%. And when the global financial crisis erupted two years ago, U.S. Treasury bonds were just about the only investment to retain value. The flight to safety in recent weeks, driven by concerns over Europe's mounting budget problems, has moved investors back into treasuries for the time being yet again.
On top of that, few investors know what it's like to live through a true bear market in bonds. Fueled by falling interest rates (long-term rates were as high as 15% in the early '80s), the current bull market has lasted for 30 years.
The resulting sense of safety -- the belief that bonds don't go bad -- is contributing to this feeding frenzy in fixed-income funds and ETFs. And all that money flowing in has made bonds very expensive.
It's true that bonds are less volatile than stocks. But in fact they lose money just as often as equities do. "I don't think the public understands they can lose money in bond funds," says James Swanson, chief investment strategist at MFS, an asset-management firm in Boston.
http://money.cnn.com/2010/06/04/pf/bond_bubble.moneymag/
Yeah, and they didn't think housing prices ever go down either. The bond market bubble is the mother of all financial disasters just waiting to happen. It's not a matter of if the bond bubble bursts, but when.
Holy Cow! 5 Reasons Why You Need to Buy Gold Now!
by Sean Brodrick
Europe is having a “Holy Cow!” moment right now. That’s the kind of moment when the basic assumptions that form the “solid” cornerstones of your life suddenly crumble like soft clay.
Europe’s assumption: That the euro would last forever. WRONG! Many people wonder if the euro will exist in a few years. Heck, the euro as we know it might not last past next month!
And that’s just one of five forces that are poised to send gold hurtling higher … to $1,350 … $1,450, $2,300 and beyond. And this could happen a lot faster than most people can believe possible.
Force #1 — Britain Tells Greece: “Abandon the Euro”
Force #2 — Central Bank Buying Is Poised to Start in Earnest
Force #3 — Smart Money Is Loading Up on Gold with Both Hands
Force #4 — Supply Is Stretched to the Breaking Point
Force #5 — The U.S. Financial Crisis Is Just Starting
http://www.uncommonwisdomdaily.com/holy-cow-5-reasons-why-you-need-to-buy-gold-now-9516?FIELD9=1
50 Statistics About The U.S. Economy That Are Almost Too Crazy To Believe
Most Americans know that the U.S. economy is in bad shape, but what most Americans don't know is how truly desperate the financial situation of the United States really is. The truth is that what we are experiencing is not simply a "downturn" or a "recession". What we are witnessing is the beginning of the end for the greatest economic machine that the world has ever seen. Our greed and our debt are literally eating our economy alive. Total government, corporate and personal debt has now reached 360 percent of GDP, which is far higher than it ever reached during the Great Depression era. We have nearly totally dismantled our once colossal manufacturing base, we have shipped millions upon millions of middle class jobs overseas, we have lived far beyond our means for decades and we have created the biggest debt bubble in the history of the world. A great day of financial reckoning is fast approaching, and the vast majority of Americans are totally oblivious.
But the truth is that you cannot defy the financial laws of the universe forever. What goes up must come down. The borrower is the servant of the lender. Cutting corners always catches up with you in the end.
Sometimes it takes cold, hard numbers for many of us to fully realize the situation that we are facing.
So, the following are 50 very revealing statistics about the U.S. economy that are almost too crazy to believe....
http://endoftheamericandream.com/archives/50-statistics-about-the-u-s-economy-that-are-almost-too-crazy-to-believe
After holding firm overnight in Asia, Gold began to get pressured lower as the markets in London opened for the week. With London and new York the epicenters of the West's financial destruction, it is little wonder that the TRUTH would come under further price suppression as the wheels of their Ponzi Financial System begin to fly off at every turn. Near-term support in Gold now rests at 1210, with firmer support around 1197.
Silver is getting it's usual illegal suppression in times like these. Adding to the CRIMEX goons activity is the white metals industrial commodity ties. Though valid, these ties to Silver's industrial base are far overstated when one considers the supply issues in Silver at this time. With the entire Silver supply at the CRIMEX locked down by March and now May delivery demands, it is difficult to understand Silver's weakness based on "falling demand" for it in manufacturing. There is little or NO Silver available to meet ANY demand at this time, and the price "should" be soaring on this shortage story alone. Alas however, as the CFTC sits idely by, the CRIMEX goons continue to sell Silver they do not own into the market in the hopes of getting scared investors to dump their Silver to help meet delivery demands. This is rediculous. The goons would have far better luck getting sales from Silver investors taking profits as prices rise than they will by supressing the price...Lower prices will only INCREASE demand, and further exacerbate their supply issues on the CRIMEX.
Silver is clinging to key support here, with major support now resting near 16.50. Considering CRIMEX supply issues, and record setting sales in May of Silver Eagles at the US Mint, one would have to look at today's prices as a gift from the government. Add to your physical supply of Silver while there is still supply to draw from.
Never look a gift horse in the mouth.
Thursday, June 3, 2010
Be Right, And Sit Tight
I'd like to think I speak for everyone reading today...
Gold and Silver were savaged by the CRIMEX criminals today ahead of tomorrows jobs report in one of the most obvious "thefts in broad daylight" ever witnessed.
There was not a single fundamental reason for today's BS, and probably even less of a technical reason. Oooo, the Dollar was up on Euro weakness again. Or, Ooooo the Dollar was up on "signs of a recovery in the jobs market".
Let me make one comment on the jobs market. There is not a single piece of government contrived economic data that is released monthly that is more blatantly manipulated, misleading and purely false than the Non-farm Payrolls report.
We as a nation have been lead to believe that there is "new jobs growth" occurring right before our eyes for the past three months. To that I can only say, "BULLSHIT!"
Over half the jobs "gained" reported every month are conjured up out of thin air, like money is created at the Fed, by the BLS birth/death model. These pathetic TEMPORARY census jobs are allowed to be used to skew the report to the upside, even though these jobs will have ZERO benefit to an economic recovery...should there ever be one. To prove my point, please consider this story in the New York Post last week:
Two more Census workers blow the whistle
By John Crudele
You know the old saying: "Everyone loves a charade." Well, it seems that the Census Bureau may be playing games.
Last week, one of the millions of workers hired by Census 2010 to parade around the country counting Americans blew the whistle on some statistical tricks.
The worker, Naomi Cohn, told The Post that she was hired and fired a number of times by Census. Each time she was hired back, it seems, Census was able to report the creation of a new job to the Labor Department.
Below, I have a couple more readers who worked for Census 2010 and have tales to tell.
But first, this much we know.
Each month Census gives Labor a figure on the number of workers it has hired. That figure goes into the closely followed monthly employment report Labor provides. For the past two months the hiring by Census has made up a good portion of the new jobs.
Labor doesn't check the Census hiring figure or whether the jobs are actually new or recycled. It considers a new job to have been created if someone is hired to work at least one hour a month.
One hour! A month! So, if a worker is terminated after only one hour and another is hired in her place, then a second new job can apparently be reported to Labor . (I've been unable to get Census to explain this to me.)
http://www.nypost.com/p/news/business/two_more_census_workers_blow_the_OqY80N3DBTvL17VmxKKR0O#ixzz0p9HJKACf
You gotta love government accounting...
Be that as it may, this "air pocket" in the Precious Metals is absolutely absurd. I have made the case in my last two posts that the CRIMEX goons and their pals at the bullion banks are in a world of hurt when it comes to meeting contracted demand for Gold and Silver. In Silver alone, every once of bullion they have in the CRIMEX warehouse to cover delivery demands is now spoken for. Yet these goons, as the CFTC turns a blind eye, continue to write contracts for which there is absolutely NO bullion to back them up.
46 MILLION ounces from March and May are now standing, and WAITING, for delivery. The CRIMEX warehouse ONLY has 52 MILLION ounces in their vaults. There are over 120,000 contracts in open interest in Silver as of today. At 5000 ounce each, this would be over 6 MILLION ounces of Silver. 46 + 6 = 52 MILLION ounces of Silver are now spoken for. How can these CRIMEX goons even be allowed to continue to make a market in Silver? SILVER SHOULD BE HALFWAY TO $100 under these supply/demand numbers. Instead the price drops?
We know the Gold story. 77% of the CRIMEX warehouse holdings have been demanded for delivery this month. How can these criminals continue to be allowed to sell more Gold they do not own? PEOPLE! This is the crime of the century! Justice? The American government knows no justice when it will unveil the TRUTH about their complete bankruptcy of not only our country's wealth, but of its morals as well.
Be right, and sit tight. If you are sitting on cash, look to buy this gift from these fools. The past 10 years are proof that the efforts of these criminals and the bullion banks to suppress the price of Gold has been, and will continue to be, a complete FAILURE.
Why Gold and Silver?
May 24, 2010 — http://www.goldsilverdvd.com
Gold and silver are being suppressed by a cabal of banks in order to uphold the charade of a strong US dollar. This manipulation is unsustainable and is coming to an end. Prepare for a scramble to own physical gold & silver as the wheels come off this gross deception. The free market always wins.
http://www.youtube.com/watch?v=sBk5rX8tZfw&feature=player_embedded
Gold and Silver were savaged by the CRIMEX criminals today ahead of tomorrows jobs report in one of the most obvious "thefts in broad daylight" ever witnessed.
There was not a single fundamental reason for today's BS, and probably even less of a technical reason. Oooo, the Dollar was up on Euro weakness again. Or, Ooooo the Dollar was up on "signs of a recovery in the jobs market".
Let me make one comment on the jobs market. There is not a single piece of government contrived economic data that is released monthly that is more blatantly manipulated, misleading and purely false than the Non-farm Payrolls report.
We as a nation have been lead to believe that there is "new jobs growth" occurring right before our eyes for the past three months. To that I can only say, "BULLSHIT!"
Over half the jobs "gained" reported every month are conjured up out of thin air, like money is created at the Fed, by the BLS birth/death model. These pathetic TEMPORARY census jobs are allowed to be used to skew the report to the upside, even though these jobs will have ZERO benefit to an economic recovery...should there ever be one. To prove my point, please consider this story in the New York Post last week:
Two more Census workers blow the whistle
By John Crudele
You know the old saying: "Everyone loves a charade." Well, it seems that the Census Bureau may be playing games.
Last week, one of the millions of workers hired by Census 2010 to parade around the country counting Americans blew the whistle on some statistical tricks.
The worker, Naomi Cohn, told The Post that she was hired and fired a number of times by Census. Each time she was hired back, it seems, Census was able to report the creation of a new job to the Labor Department.
Below, I have a couple more readers who worked for Census 2010 and have tales to tell.
But first, this much we know.
Each month Census gives Labor a figure on the number of workers it has hired. That figure goes into the closely followed monthly employment report Labor provides. For the past two months the hiring by Census has made up a good portion of the new jobs.
Labor doesn't check the Census hiring figure or whether the jobs are actually new or recycled. It considers a new job to have been created if someone is hired to work at least one hour a month.
One hour! A month! So, if a worker is terminated after only one hour and another is hired in her place, then a second new job can apparently be reported to Labor . (I've been unable to get Census to explain this to me.)
http://www.nypost.com/p/news/business/two_more_census_workers_blow_the_OqY80N3DBTvL17VmxKKR0O#ixzz0p9HJKACf
You gotta love government accounting...
Be that as it may, this "air pocket" in the Precious Metals is absolutely absurd. I have made the case in my last two posts that the CRIMEX goons and their pals at the bullion banks are in a world of hurt when it comes to meeting contracted demand for Gold and Silver. In Silver alone, every once of bullion they have in the CRIMEX warehouse to cover delivery demands is now spoken for. Yet these goons, as the CFTC turns a blind eye, continue to write contracts for which there is absolutely NO bullion to back them up.
46 MILLION ounces from March and May are now standing, and WAITING, for delivery. The CRIMEX warehouse ONLY has 52 MILLION ounces in their vaults. There are over 120,000 contracts in open interest in Silver as of today. At 5000 ounce each, this would be over 6 MILLION ounces of Silver. 46 + 6 = 52 MILLION ounces of Silver are now spoken for. How can these CRIMEX goons even be allowed to continue to make a market in Silver? SILVER SHOULD BE HALFWAY TO $100 under these supply/demand numbers. Instead the price drops?
We know the Gold story. 77% of the CRIMEX warehouse holdings have been demanded for delivery this month. How can these criminals continue to be allowed to sell more Gold they do not own? PEOPLE! This is the crime of the century! Justice? The American government knows no justice when it will unveil the TRUTH about their complete bankruptcy of not only our country's wealth, but of its morals as well.
Be right, and sit tight. If you are sitting on cash, look to buy this gift from these fools. The past 10 years are proof that the efforts of these criminals and the bullion banks to suppress the price of Gold has been, and will continue to be, a complete FAILURE.
Why Gold and Silver?
May 24, 2010 — http://www.goldsilverdvd.com
Gold and silver are being suppressed by a cabal of banks in order to uphold the charade of a strong US dollar. This manipulation is unsustainable and is coming to an end. Prepare for a scramble to own physical gold & silver as the wheels come off this gross deception. The free market always wins.
http://www.youtube.com/watch?v=sBk5rX8tZfw&feature=player_embedded
Wednesday, June 2, 2010
CRIMEX SUPPLY UPDATE
Harvey Organ's - The Daily Gold released updated June Gold delivery numbers today. The Gold warehouses at the CRIMEX may be in far worse shape than suggested in my post yesterday:
There were 665 delivery notices issued in the JUN gold contract. The JUN gold delivery notice total for the month is 18,230 notices or 1,8230,000 ozs. (The Comex report on Friday apparently was not a typo there is truly a massive amount of OI standing for delivery!). Deutsche Bank issued none and stopped 46, JPM issued 66 and stopped 297, Barclays issued 408 and stopped none, while BNS issued 0 and stopped 17.
Now Ladies and Gentlemen, I can put the puzzle together for you.
On Friday, the OI announced at the conclusion of trading was 1.3 million oz of gold standing. The only thing left out was options exercised. These extremely smart players receive a futures contract and then they make a decision as to stand or roll to a future contract. Generally if you exercise an option you stand for delivery.
Also, you will recall that gold OI dropped by a massive 24,000 contracts. Most commentators thought it was massive liquidation. I did not buy this as demand for gold is going through the roof
so why would intelligent traders cash in the newfound gains in gold. I thought that maybe the longs were offered a premium and roll to the next big month of August.
However the volume was just not there.
I had a lot of trouble figuring out the data.
Now I know what happened:
the big drop in OI in June was due to the massive standing of longs for physical gold:
1. the Friday OI of 13,000 contracts or 1.3 million
2. the exercise of options by gold holders. They were not fooled by the lowering of the gold price by the cartel banks...and then the subsequent loss of 24000 OI gold contracts due to the fact that these guys stood for and received their delivery slips. Only the almighty will know if these delivery slips have real gold in them or they are just a piece of paper with no gold behind them.
Thus so far, 18,230 contracts of gold have been served upon. If this is not a typo then this is a massive amount and my bet is that this will surely bust the comex.
This is not all the story:
there are 6497 contracts still remaining to be served or 650,000 oz of gold:
The open interest in JUN gold is 6,497 contracts or 0.65 Mozs.
Thus total amt of gold standing for June is 650,000 oz (left to be served) + 1.823 million oz (already served) + 204,000 oz from options exercised in May = 2,677,000 oz of gold.
Adrian Douglas comments on the deliveries with respect to gold:
The open interest in JUN gold is 6,497 contracts or 0.65 Mozs. With the delivery notices issued the total gold standing for delivery could be 2.5 Mozs. BINGO! This is 77% of the dealer inventory of gold! We have never seen anything like this before. This is stunning. I don’t see how the dealers are going to handle this demand. They will be left with almost nothing. This could be the breaking point for the Comex. Watch this space.
Cheers
Adrian
There were 665 delivery notices issued in the JUN gold contract. The JUN gold delivery notice total for the month is 18,230 notices or 1,8230,000 ozs. (The Comex report on Friday apparently was not a typo there is truly a massive amount of OI standing for delivery!). Deutsche Bank issued none and stopped 46, JPM issued 66 and stopped 297, Barclays issued 408 and stopped none, while BNS issued 0 and stopped 17.
Now Ladies and Gentlemen, I can put the puzzle together for you.
On Friday, the OI announced at the conclusion of trading was 1.3 million oz of gold standing. The only thing left out was options exercised. These extremely smart players receive a futures contract and then they make a decision as to stand or roll to a future contract. Generally if you exercise an option you stand for delivery.
Also, you will recall that gold OI dropped by a massive 24,000 contracts. Most commentators thought it was massive liquidation. I did not buy this as demand for gold is going through the roof
so why would intelligent traders cash in the newfound gains in gold. I thought that maybe the longs were offered a premium and roll to the next big month of August.
However the volume was just not there.
I had a lot of trouble figuring out the data.
Now I know what happened:
the big drop in OI in June was due to the massive standing of longs for physical gold:
1. the Friday OI of 13,000 contracts or 1.3 million
2. the exercise of options by gold holders. They were not fooled by the lowering of the gold price by the cartel banks...and then the subsequent loss of 24000 OI gold contracts due to the fact that these guys stood for and received their delivery slips. Only the almighty will know if these delivery slips have real gold in them or they are just a piece of paper with no gold behind them.
Thus so far, 18,230 contracts of gold have been served upon. If this is not a typo then this is a massive amount and my bet is that this will surely bust the comex.
This is not all the story:
there are 6497 contracts still remaining to be served or 650,000 oz of gold:
The open interest in JUN gold is 6,497 contracts or 0.65 Mozs.
Thus total amt of gold standing for June is 650,000 oz (left to be served) + 1.823 million oz (already served) + 204,000 oz from options exercised in May = 2,677,000 oz of gold.
Adrian Douglas comments on the deliveries with respect to gold:
The open interest in JUN gold is 6,497 contracts or 0.65 Mozs. With the delivery notices issued the total gold standing for delivery could be 2.5 Mozs. BINGO! This is 77% of the dealer inventory of gold! We have never seen anything like this before. This is stunning. I don’t see how the dealers are going to handle this demand. They will be left with almost nothing. This could be the breaking point for the Comex. Watch this space.
Cheers
Adrian
This is about as serious as it gets now for the bullion banks. The potential for a MAJOR short squeeze in Gold may be looming. With the potential now to wipe out 3/4 of the CRIMEX Gold, it will be impossible for the CRIMEX goons to keep up the charade they call a Gold market. It's bad enough that they have been allowed by government regulators to continually sell Gold they do not own under the pretext that less than 1% of the contract holders stand for delivery. With virtually no Gold in the CRIMEX warehouses, even the appearance of a legitimate market in Gold will be impossible. Let the countdown begin!
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