Jobs & Markets
The jobs number came in sharply
lower than expected showing that U.S. employers have not been hiring
over the last two months and wages as well fell in September. With this
turning point 2015.75, we should begin to see declining economic numbers
and a closing on the Dow below 15970 today will warn of a retest of the
August low.
The weak jobs number is now raising new doubts the economy is strong
enough for the Federal Reserve to raise interest rates by the end of
this year. We are starting to see that higher rates are linked in
thinking to stronger economic growth. When the economy declines, rate
expectations decline. This is the real view of interest rates and their
relation to the marketplace.If the August low of 15370 gives way, we appear to be headed to that slingshot move where we first move down and trap everyone bearish to provide the fuel to rise again initiated by short-covering.
2015.75 & Debt: Did 9/30 Mark the Beginning of the End?
Here at 2015.75, they are kicking the debt ceiling can down the road, assuming it can wait until December. However, Treasury Secretary Lew says the U.S. will run out of money by November. So it does not appear they will even make it to December. From here on out, this debt crisis will begin to get crazy as one domino falls after the other.
Gold & Money Supply
QUESTION: Sir; Will the Fed start to print money again if the economy turns down and does this not cause gold to rise?
Thank you for your insight in this confusing world of self-interest
SH
ANSWER: No.
The gold promoters constantly tout inflation, stating that the rise in
money supply must lead to higher gold prices. If you simply correlate
gold prices to the money supply, you will discover that this is total
propaganda. Just look at the last few years alone: gold peaked in 2011
and the money supply continued to rise. There is zero
truth to the propaganda and those who believe it will end up losing
everything. It should be criminal. If you are going to sell medicine,
you cannot claim something will grow hair when it will not or reverse
the aging process when it will not. You would go to prison for consumer
fraud, but this is not the case when it comes to precious metals. One
day, a lot of these people will end up in jail for consumer fraud.
There
is no correlation between gold and inflation any more than there is
with most commodities. We have the largest database in the world. If
such a relationship existed, we would be shouting it from the rooftop. The commodities business is highly cyclical; boom and bust is par
for the course. Yet, these promoters bury people alive by telling them
that there is no cycle and it is always up, up, and away.
If the Fed increases the money supply, it will NOT drive gold higher. Gold will rise when confidence in government declines. That is the issue.
There is a time to buy and there is always a time to sell. It’s Just Time.
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