It’s enough to make a little girl cry. Really…
The story goes that she broke down when her mother was listening to campaign news on National Public Radio (NPR).
We can relate…
As you might expect with the election drawing near everything — everything — is viewed with pathological myopia through the prism of politics. One look at that fat guy running around New Jersey after Sandy wiped out the state’s coastline is all you need for confirmation.
With that prism in mind, we present this morning’s October jobs report from the Bureau of Labor Statistics.
It says employers added 171,000 jobs last month — more than the “expert consensus” was counting on. It also says the U-3 unemployment rate moved up a bit to 7.9%. Chalk up the discrepancy to growth in the labor force; the employment-to-population ratio grew to 58.8%. No telling whether that’s the start of a trend, though.
Unlike last month, we see no Twittersphere chatter this morning about the numbers being manipulated to steer the election.
But the chronic manipulations that have plagued the numbers for decades persist: The real-world unemployment rate as calculated by John Williams at Shadow Government Statistics ticked up to 22.9% — just shy of the 23.0% record set in September 2011.
“It would be very unfortunate if Romney wins,” opines our friend, the inimitable Doug Casey — with his own take on that which stirred the pot in The 5 a few weeks ago.
“That’s because Romney would be associated with free-market economics,” Casey laments, “as Republicans almost always are. A real pity. The social and economic disaster that’s looming over the next four years would incorrectly be blamed on capitalism. From a long-term point of view — if you care about posterity — it’s actually better if Obama wins. Then socialist-style ideas might get more of the blame for the train wreck.
“On the other hand, the continuing global economic crisis (and much worse to come) would be a great excuse for Obama to open the floodgates on all kinds of really, really stupid ideas.”
Bottom line: “There are no political solutions. The economic problems are bigger than any politician. There’s no way out. I pity the poor fool who wins this election.”
Conclusion: “You’ve got to continue accumulating gold and silver to protect yourself from financial chaos, and you’ve got to diversify yourself internationally to protect yourself from government chaos.”
Speaking of gold, it began slipping in overnight trade… and the slippage accelerated after the jobs numbers came out.
At last check, the spot price was $1,695. Silver’s losing ground too, at $31.78.
The election outcome will have no impact on the price of gold, suggests Mark O’Byrne at GoldCore.
For one thing, “The U.S. fiscal cliff involving steep government spending cuts and tax hikes looms in January and is likely to support gold at [current] levels and lead to higher gold prices in the coming weeks.” That’s baked into the cake no matter who’s elected.
Nor does Mr. O’Byrne buy into the notion — mooted in the Financial Times this week — that gold would stumble in the event Romney is elected and he appoints a “hawkish” Federal Reserve chairman.
“Gold will not suffer when there is a change and a move away from ultra, ultra loose monetary policies,” O’Byrne says. “As was seen in 1980, gold’s secular bull market is likely to end if the Federal Reserve again achieves positive real interest rates.”
We’ll pause here to note that a 10-year Treasury note yields 1.7% this morning while even the bogus inflation measure pumped out by the Bureau of Labor Statistics is 2.0%. Thus a negative real rate of -0.3%.
O’Byrne draws one more lesson from 1980: “Gold will only fall toward the end of the interest rate tightening cycle — this could take many years. “
Addison Wiggin is the executive publisher of Agora Financial, LLC, a fiercely independent economic forecasting and financial research firm. He's the creator and editorial director of Agora Financial's daily 5 Min. Forecast and editorial director of The Daily Reckoning. Wiggin is the founder of Agora Entertainment, executive producer and co-writer of I.O.U.S.A., which was nominated for the Grand Jury Prize at the 2008 Sundance Film Festival, the 2009 Critics Choice Award for Best Documentary Feature, and was also shortlisted for a 2009 Academy Award. He is the author of the companion book of the film I.O.U.S.A.and his second edition of The Demise of the Dollar, and Why it's Even Better for Your Investments was just fully revised and updated. Wiggin is a three-time New York Times best-selling author whose work has been recognized by The New York Times Magazine, The Economist, Worth, The New York Times, The Washington Post as well as major network news programs. He also co-authored international bestsellers Financial Reckoning Day and Empire of Debt with Bill Bonner.
Doug (and most of the end of the world web sites) jump to way too many conclusions.
Let’s just say the financial apocalypse comes under Obama, do you think we will still have the right to vote afterwards?
I have seen plenty of Obama to know he is no good and has to go.
I will gladly try Romney for four years
Pingback: Love Letters For Her
Panopticon goggles? Severe market panic in 2018? Gold confiscation by 2020? Jim Rickards' shocking thought-piece in the spirit of A Brave New World or 1984. Click to see how markets, economics, your money, gold, privacy, wealth building and more look a decade from now in the year 2024...
I believe we are in the midst of one of the greatest profit opportunities you’re ever going to see in your lifetime. Stop listening to what the government is telling you. Turn off CNN. Forget what you see on the news. And for God’s sake, forget about the market crashing. Right now, we are in the early innings of the greatest profit opportunities of the 21st century. A biotech boom that’s about to hit epic proportions thanks to Ebola. If I’m right, we are going to see Ebola in New York, Los Angeles, San Francisco and Miami. And when this happens, every single stock that has anything to do with Ebola is going to soar. Let me explain to you how I believe this huge Ebola bubble is going to unfold.
Right now we’re seeing a surge of strength in the U.S. dollar, as the bottom falls out of our competitors’ currencies, and Jim Grant has the best analysis of what it means for investors. For one, it means the Federal Reserve can’t keep interest rates low forever. And mainstream investors may be very surprised when the Fed gives in…
Another one of Wall Street’s broken forecasts has plopped a new trade in your lap. If you’re listening to the lunatics on the financial news, you’re hearing that there’s no hope for the markets. Just get rid of your stocks and pound sand. Better safe than sorry—none of these talking heads want to get bullish on anything right now because they’re afraid to look like an idiot if the market keeps dropping. For them, selling stocks now is your only chance to make it to the end of the year without pawning the family cat to buy Christmas presents. Can the market survive? Greg Guenthner explains…
Breakthrough technologies can hold the most undiscovered money-making potential. What we’ve accomplished in a quarter century with cancer research could make you serious money and save countless lives. Ray Blanco has more on this ground breaking story...
On Oct. 6, 2014, Jim Rickards was interviewed by Bloomberg TV for his thoughts on gold, currency manipulation and the overall strength of the global economy. Watch the entire interview for yourself, right here...