Buy Silver With Both Hands On This Manipulated Sell-Off
The monthly non-farm payroll news has turn a rascal of epic proportions. The Government is claiming that 215k new jobs were combined in March. In a products producing difficulty it claims that 37k jobs were combined in construction. But there’s a problem with this – it doesn’t relate with construction spending and housing starts:
Anyone who follows a housing marketplace knows that for a final year that new housing starts – notwithstanding a celebrated strategy embedded in a Government’s stating methodologies – have been mostly driven by multi-family dwellings (big unit buildings). But a graph on a right shows that multi-family home “starts” have been disappearing as well.
In other words, a Government would have us trust that 37k jobs in construction were combined in Mar notwithstanding a fact that construction spending is in a downturn. It’s laughable. Keep in mind that a Census Bureau collects a information for a use report, construction spending and housing starts. It’s no warn that even a possess information is inconsistent.
The same thought relates to all of a areas in that a Government is stating there to be new jobs combined solely maybe healthcare. Healthcare has indeed been a one area of expansion in a economy given Obamacare has triggered a large boost in Government-backed medical spending that is being financed by additional Treasury distribution and a large send of resources from a center category to a disadvantaged category and to all of a private companies compared with medical (big pharma, hospitals incorporated, insurance, etc).
I incited adult a volume – regrettably – on Fox Business this morning after a jobs news given we wanted to get some entertainment from listening to a supposed “experts” explain since a economy was presumably producing an unimaginable series of jobs. Interestingly, Maria “Money Honey” Bartiromo was incompetent to costume a demeanour of sum dishonesty on her face in response to a use report. Some bone-head by a name of Steve Moore attempted to clear a information by claiming that a large rebate in a cost of gasoline has combined aloft disposable income for consumers to spend in discretionary areas – he privately cited restaurants – that has equivalent a jobs detriment in appetite and mining.
Unfortunately Steve, where are we removing your views? The contribution do not support your thesis. For instance, retailers have been laying off thousands and shutting down stores enmasse given a finish of December. As we can see from a graph to a left, a grill industry, like a sell industry, is shedding jobs palm over fist.
Steve, we would advise that subsequent time we pour your rubbish on a open forum, we improved do some fact-checking in box there’s some viewers who know a facts.
Then there’s financial services, that a Government claims combined 15k jobs. Tell that to a several thousand who were dismissed final month from large Wall Street firms. Not certain where a Census Bureau found a 15k new jobs. I think that a information collectors incited over some rocks and done adult a numbers.
And afterwards there’s a biggest problem. The Government produces several opposite versions of a use conditions in one report. There’s a Household Survey and a Establishment Survey. Then there’s a U-3 news and a U-6 report, any of that shows almost opposite stagnation rates. U-3 shows 5% stagnation and U-6 shows 9.8% unemployment. Which one is it? John Williams of Shadowstats.com has tracked a use reports for many years. His work shows that a loyal stagnation rate is good north of 20%. This is certified in a context of a large series of people who are no longer deliberate to be partial of a labor force.
Most of those tighten 100 million not in a labor force are a ones who “fell off” stagnation word and stopped looking for work. Many are now on gratification of some type. Since 2001, a series of people who “qualify” for Social Security Disability Insurance has some-more than doubled to nearly 9 million. They are deliberate not partial of a labor force and there’s law firms who have built their use around removing people qualified. Then there’s a tyro loan factor. If we can’t find a job, request to an online university and get a tyro loan. Since Obama took bureau a volume of tyro loans superb scarcely doubled from $700 billion to $1.3 trillion. Once we get approve for that loan, a Government does not have to count we as being unemployed.
The marketplace response to a use news is only as absurd as a news itself. The batch and a changed metals were slammed initially. If bonds and metals were strike given a use news implies that a Fed will lift rates this year, afterwards since has a SP 500 and Dow rallied to go immature on a day and bullion and china are still down $16 and 53 cents respectively?
Corporate revenues are display no expansion and GAAP net income has declined 4 buliding in a row. I’ve got news for a Government, when companies are not producing income expansion and their net income declines, they get absolved of workers, not sinecure them.
Gold has been strike for as most as $23 now and china for 66 cents (over 3%). Currently china is down about 51 cents to $14.94. The bullion banks have been carrying a lot of difficulty removing china to concur with their manipulative efforts. On many days when bullion is being hit, china will trade aloft on a day. I suggested during a commencement of a year that shopping china now would infer to be a trade of a decade. I say that call and now is adult over 8% YTD. I would advise that all sell-offs in china should be bought. You can precedence your trade in china with mining stocks.
Courtesy: Investment Research Dynamics
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