U.S. Jobs Growth A Horrible Miss, Worst In Five Years by Nathan McDonald, Sprott Money
All the FED’s horses and all the FED’s men couldn’t put this fiat bubble back together again!
Unfortunate as it is, it has become a common theme for me to write about the slow death of the Western economy. Sadly, the truth cannot and should not be ignored; rather, it should be acknowledged so that we can hopefully divert this disaster or at least prepare for its coming.
Recently the FED has been up to its old tricks once again, jawboning and pandering to Wall Street as they state all is well in the economy and that things are improving. What malarkey!
Once again, this has been proven to be false, as evidenced in the most recent jobs report, which was a monumental miss.
Reporting the worst job data numbers since September 2010, the BLS indicated that a pathetic 38,000 jobs were added in May. This figure was a horrible miss from the already revised 123,000 jobs that were expected to be added, and even worse that the initial 160,000 jobs that were expected at first.
But wait! Good news! Unemployment tumbled from 7,920K to 7,436K! Unless you live in the real world and can be bothered to look at the facts, rather than the bogus reality that officials spoon-feed the masses.
Indeed, this number only dropped due to the slimy way the number is calculated, where people are no longer “counted” after being unemployed for so long, causing them to simply fall off the “radar”. Obviously, these people are still people and still unemployed, no matter how long they haven’t been able to get a job.
This news has completely shocked the markets, given the fact that it was such a massive miss. It has sent stocks crashing and gold rocketing higher. At least some in the investing class is smart enough to know that gold is a safe place to move your assets in a time such as this.
Not only has this news sent markets lower, but it was also swept away the disillusion that the FED might be raising interest rates later this month or next month, as they have been flirting with recently. The odds of this occurring have officially dropped sharply.
In the past, this type of news has been able to be “spun” or “weaved” positively, but this time it is simply too bad. This time the markets cannot ignore the facts and the results are being carried over into the real world.
Perhaps people will start to wake up and take the proper steps needed to get this market back on track, or at least move more seriously into precious metals as they prepare for the worst.
However, I wouldn’t hold my breath.