Cookin’ the Books

This week continues to confirm my past comments about the state of the economy.  The rosy U.S.  unemployment numbers came out this week: “204,000 jobs were added”.  However, John Williams of www.shadowstats.com comments:

“With Washington awash in scandals, political turmoil and sinking approval ratings, the political timing could not have been better for this morning’s (November 8th) stronger-than-expected jobs report from the Bureau of Labor Statistics (BLS).  An unusual shift of favorable seasonal-adjustment factors—into the August, September and October reporting period—boosted the latest jobs numbers.  The jobs growth borrowed from other periods will be buried in the next benchmark revision or will be re-shifted in the months ahead, with the details never to surface in official reporting.  Separately, the October payroll survey counted furloughed government employees as employed, as the BLS previously had indicated.”

Let’s face it, the Bureau of Labor Statistics “cooked the books” and it appears they really don’t care if guys like John Williams knows about it.  Watcha gonna do about it?

Why misrepresent the employment numbers?  The only reason you would do this is to try to convince the overall market that things are better than they really are.  You want to promote an illusion to keep people passive about the current state of the economy.  John has been keeping close eyes on the real unemployment numbers, currently at 23.5%.  What does this tell you?  Nothing that the Federal Reserve Bank is doing has positively impacted the average American.  To the contrary, their zero interest rate policy is taking money aware from the middle-class savers and putting it into the pockets of the bankers and top 1%.  They have successfully inflated the stock market.  How?  Where else can money managers go to earn any type of return on investment?  The Fed is forcing all investors to put money in a riskier environment.  The result is that the stock market is making new highs.  Once the chickens come home to roost, the market will possibly take an epic dive.  At that time, people will suffer major losses.  Bonds are in the same shape.  Once interest rates finally go back up, the bondholders will suffer huge losses.  If the other countries begin to trade among themselves without the use of U.S. Dollars but agree on another currency for settlement, the value of the U.S. Dollar will plummet and prices will skyrocket.  Inflation will increase dramatically.

Stock losses, bond losses, dollar losses, and high inflation.  That is a pretty bleak picture.  Where would one go to try to offset major losses in these areas?  Physical assets.  Gold, silver, oil, natural gas, farmland.  You can see why there is such attention paid to the price of gold by the Federal Reserve’s agent banks trying to manipulate the price of gold downward.  It is the one global indicator of the health of the U.S. Dollar.  When it goes up dramatically, it signals big losses in the value of the Dollar.  Holders of the Dollar are then alerted that it is time to dump their Dollar holdings and move to a safer medium of value.  The Chinese are well aware of this issue.  This is why they continue to aggressively acquire gold before the bottom falls out below the Dollar.

The following chart provides us perspective:

If the Chinese fully trusted the future of the U.S. Dollar, they would not be in such a hurry to increase the gold reserves.  Actions speak louder than words!

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