The employment data is in: No new jobs. Zip. Zilch. Nada. Now that is going to be tough to spin. But spin they must, as stocks tumble and gold leaps up. Posted by James Randolph on September 02, 2011
There’s reason enough to seek safe haven in the gold market.
September 02, 2011 – The employment data is in: No new jobs. Zip. Zilch. Nada. Now that is going to be tough to spin. But spin they must, as stocks tumble and gold leaps up.
The Fed claims that half of its mandate is to create jobs, although the logic behind that eludes me. Their money games so far have had the exact opposite effect. This whole jobs thing is becoming and enormous pain where our politicians sit – and I don’t mean on their hands. Since Congress has proven itself to be completely impotent, even more pressure will be heaped on the Fed to pull some rabbit out of the hat.
So get ready for some new cockamamie variation on the Fed’s tired old theme. It shouldn’t take very long at all to recognize the tune. But spin they will. Even today the Wall Street Journal attributes slumping stocks to “worries that the economy is headed into recession.”
That’s just the sort of language that keeps the illusion alive. “Recession is coming! Call in the cavalry and head it off at the pass!” But we are not headed for recession. We are not in recession. We are not headed for a depression. We are not in a depression. We are in what the Daily Reckoning has for a very long time called the Great Correction.
You can’t fix a correction, you have to fix the underlying system. And that system is way past the time when plain old Band Aids are of any use. The longer the government insists on fighting the correction, the bloodier the battle will get. As things stand right now, it’s going to get very ugly.
America has lost all faith in our leadership, and that makes for a very volatile and dangerous situation. As individuals we tend to be rather meek, so as long as most of us are OK with the way things are the government can maintain control. Today, however, discontent is sweeping over the nation like an Arizona dust storm. As people are drawn together by common grievance, individuality will give way to mob rule.
It won’t take much of a spark to set it off. And it could happen at any moment. But is it inevitable? Let’s just say that the possibility is very real. That should be reason enough to seek safe haven in the gold market.
Senior Staff Writer – Certified Gold Exchange