UPDATE: The Liquidity Cavalry – 9/7/12
Dear All,
The liquidity drops were already underway when this morning's dismal labor market report was released. As usual, the phony headline numbers belie the reality.
The BLS reported that a mere 96,000 jobs were created last month, slightly less than the estimated 100,000 that are needed monthly just to keep pace with population growth. Yet the unemployment rate fell from 8.3% to 8.1%. How's that possible?
Once again the U.S. Labor Department is playing games with the Labor Participation Rate by alleging that an additional 368,000 out-of-work Americans became discouraged in the pursuit of employment last month, promptly dropping the Labor Participation Rate to a new 31 year low. Nice math, huh? 96,000 unemployed people get jobs, 368,000 unemployed people get discouraged and presto – the unemployment rate drops!
Last month's headline job creation number was also revised lower (surprise, surprise) from 163K to 141K and the percentage of workers with part-time job hit a post Depression high.
The Fed continues its QE(n) bluffing game but the coordinated global liquidity drop we have been anticipating is underway, led by the ECB's announcement yesterday that it will be vomiting currency for the forseeable future from sources yet to be determined and which it laughably claims it will ultimately “sterilize.” Gold and silver are in their next phases of ascent. Expect sharp pullbacks along the way and the usual games with the price but pay them no mind. Higher prices are inevitable. Both will make new nominal highs and subsequently, inflation adjusted ones. Your gold precious metal stocks, in spite of the superb returns the past several weeks are being given away.
My best,
Jeff
2012-09-07 17:32:23
Source: http://goldmap.typepad.com/goldmap/2012/09/update-the-liquidity-cavalry-9712.html
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