STAFF NEWS & ANALYSIS
Phony US Employment Numbers Combined With Toxic Fed Strategies Boost Gold and Silver
By Daily Bell Staff - September 02, 2016

US created 151,000 jobs in August vs. 180,000 jobs expected … August traditionally has been a difficult month for jobs numbers, and 2016 proved no exception, likely putting the Federal Reserve on hold for a rate hike anytime soon. – CNBC

What a mess. The latest jobs report shows lowered growth. That doesn’t matter of course. The government will revise the numbers upward.

And the Federal Reserve will do its part, ultimately, by continuing to print money at a rapid clip, even if it does manage to raise rates a quarter point. Surely that’s won’t happen before the presidential elections, will it?

And ultimately, none of it matters.

Fed monetary debasement cannot create a profitable economy. And lying about the economy doesn’t make it any healthier.

What can you do at this critical juncture? Prepare yourself as best you can for significant upcoming economic challenges. And maybe a war or two besides.

Certainly you don’t want to trust government numbers. And don’t be fooled by Fed pronouncements. The Fed has been trying to goose the economy for eight years without much success.

The numbers are always phony, whether they come from the government or the Fed. Price inflation, for instance, supposedly pushed upwards toward the magic 2% mark. But real price inflation is a good deal higher than that.

When it comes to almost any kind of number fedgov figures can be disputed. This makes Federal Reserve decisions themselves suspect.

Really what we have here is a big show. It is some sort of performance designed to justify the control of a multi-trillion dollar money supply by a handful of individuals.

The Fed along with other central banks has ruined the larger economy over time.

And they don’t have any idea what to do next. Nor should they, as the real purpose of central banking is degrade economies until people are willing to go along with any solution, up to and including increased centralization and globalization.

And so central banks will continue to do what they do best: Create monetary chaos.

Around the world, central banks are buying bonds directly out of the market,  and even stocks these days. Just today, Reuters reported that the ECB may soon start buying equities in order to continue its economic stimulus program.

Here:

The European Central Bank could run out of eligible bonds for its 1.7 trillion euro bond-buying scheme, meaning alternative options are on the table should it decide to loosen policy further to lift growth and inflation across the bloc.

Analysts say these could include large-scale share buying, a policy that the BOJ has already adopted after it started purchasing equity exchange traded funds (ETFs) for its own quantitative easing scheme six years ago.”

Neither stock market averages, nor bond prices in many regions of the world reflect true demand.  Central banks, in the last throes of damage control, are buying everything in sight.

As for economic numbers, well … they are never very accurate, as we just pointed out.

The damage that has been done comes from the monopoly existence of government and central banking.

Government pronouncements on economic numbers are monopoly-like because professional investors base their strategies off them, whether valid or not.

Central banks use government numbers to make their own monetary decisions, which are enforced by government penalties up to and including jail.

Try to set up an alternative money – especially one with a gold component – and see how far you get.

The reason these monopoly systems exist at all is because of judicial decisions that have cultivated the growth of vast multinationals.

These multinationals work in concert with governments to legitimize government forecasts and data. Even worse, however, as they are part of the system, they don’t challenge central bank economic pronouncements.

This might be tolerable if central bank actions were based on credible economic theory. But central banking is based on the idea that monetization can create industrial health. We have a century now of obvious results that refute this nonsensical theory.

Give a man money and there is no guarantee that he will go out and invest it. Certainly, he may not try to start a business with it. He may simply choose to the save the money or use it to purchase items considerably out of the mainstream.

In any event, there is no real evidence – outside of academic claims – that central bank monetary stimulation contributes to long-term industrial stability or health. What it does is create sharp booms and then disastrous busts. Over time, those busts extend for longer and longer intervals until there is little difference between the serial results and a deep recession or quasi-depression.

That’s what has occurred since 2008 and it not getting any better because the fundamental theory behind central banking is flawed. Monopoly manipulation of interest rates does not cause a country’s economy to grow in a “normal” way. The stimulation sets up conditions that contribute, ultimately, to ongoing financial disaster.

In concert with central bank manipulation, central banks and those who support them have conspired to manipulate the prices of gold and silver. Recently as a result of lawsuits, this manipulation may have slowed – providing part of the lift in gold and silver prices this year from a dollar standpoint.

Lately, however, the dollar has risen against gold and silver but we would argue the entire system is perilously close to a breaking point. Real money, certainly in the modern era, is gold and silver. And those who don’t understand the full manipulation of both the monetary and industrial economy as well as the government propaganda that surrounds it will sooner or later find that their ignorance is costly indeed.

Over and over, monetary debasement leads to economic catastrophe. This is the history of the world. There is a reason that gold and silver were involved in urban commerce 7,000 years ago and continue to hold their value today.

ETFs and gold and silver stocks reflect the fundamental value of gold and silver as well. But when buying paper products, which can be extraordinarily lucrative in an overly stimulated market environment, one needs to ensure the solvency of the underlying facility. It does not good to obtain a profit in an ETF or gold stock if the liquidity doesn’t exist to compensate you.

That having been said, we see very obviously that yet another stage in central banking debasement is drawing to a close. Economies around the world and in the US are not recovering, no matter what US employment figures purportedly show, and no matter how they are adjusted upward.

Conclusion:  Meanwhile, no matter the manipulations or negative media reports, gold and silver are creeping upwards again against the dollar and other paper currencies. This is surely a trend that will  continue given that Western economies are in the “end game” in so many ways. Please pay attention to what’s going on. It isn’t healthy for those who repose their trust in modern fiat without understanding money’s larger history.

If you are interested in mining stocks, you might want to look into our current sponsor Golden Arrow and its Chinchillas silver mine. You can see an interview with the founder of Golden Arrow here. And here is contact information for Chinchillas:

Shawn: 1-800-901-0058 or 778-686-0135.

Stock Symbols

Canada: GRG

US: GARWF

Frankfurt: GAC

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GOLDEN ARROW RESOURCES has recently become a sponsor of The Daily Bell under a new marketing program. The company welcomes your interest and support. Over time, we will be presenting further coverage of Golden Arrow and its promising developments. Please consult DB’s disclaimer before making investment decisions. This is not an endorsement.

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  • apberusdisvet

    The dominoes in the PM market may be starting to tip. A few years back, ABN ambro, a Dutch bank had a failure to deliver physical gold to a client; quickly papered over with cash, although the lawsuit is ongoing. Now comes a subsidiary of Deutsche Bank that has failed to deliver. This is huge!!

  • Samarami

    Lew Rockwell posted a “dire” piece this morning entitled “The Ultimate Ponzi Scheme”: https://goldswitzerland.com/as-the-world-economy-is-burning-central-bankers-are-clueless/ , which linked to one of their earlier (2011) essays: https://goldswitzerland.com/deus-ex-machina-egonvongreyerz/ .

    Question: Can this bubble continue to be bounced along through the November US general election? How large (or how long) can a bubble gee and haw until it finally bursts???

    A fun time to be alive. Sam

    • Fred Bastiat

      It’s hard to watch, it’s like watching a terminal patient struggling on life support. I just happened to comment on the Student Loan Bubble and wondering the results when it meets the Faux Currency Bubble.

  • esqualido

    It is a fundamental misunderstanding to assume that this private corporation, which also runs the largest trading desk always puts national interests above its own. The very concept that it should be allowed to set interest rates, which should be market-driven, is an invitation to immense corruption: the opportunity to front run investments based on interest changes; providing funds virtually interest-free to the very banks(and their subsidiary hedge funds) which own it, and, as a twofer, denying savers any return whatsoever.
    Only in an era of MSM monopoly does the Fed get away with being regarded as The Good Fairy (if now and then misguided.) The very term “central bank” was regarded with suspicion until the Nixon administration, which,when faced with the burgeoning debt from LBJ’s “Great Society” spending plus Vietnam War, was precipitously forced, by French demands to exchange its dollars for gold as provided by Breton-Woods, to abandon the gold standard. To hell in a handbasket ever since- the national debt in the 70’s being a matter of billions, not trillions.

    • Wrusssr

      The financial Wizards of Oz, who’ve been stockpiling “gold-that-isn’t-money” since the end of WWII, including America’s, are the ones who slammed the gold window shut when De Gaulle began exchanging planeloads of federal reserve notes for the real stuff (lest other nations catch onto to the international banking cabal’s fiat scam). Nixon just did what he was told to do by his London handlers in The City.

      https://youtu.be/PGhl7ysL_1U

      As an aside, a planeload of gold was the price paid for Nixon to be the first president to visit China last century.

  • georgesilver

    Gold $US:- 05 August $1363. 02 September $1325
    Gold £UK:- 06July £1057. 02 September £996
    When is a ‘boost’ to Gold not a boost?
    As a close follower of Gold it needs (in £UK) to exceed 06 July 2016 before any rise can be fairly called a boost or even get excited about although, to be fair, it looks as though the ‘bottom’ may be in.

    • The point of the article is that the supposed reasons for a drop in the gold price against the dollar has nothing to do with reality. The numbers are fake and so are the reasons. In the long-term, there is only gold and silver.

      • georgesilver

        “In the long-term, there is only gold and silver.” I, for one as a Gold and Silver “bug”, hope you are right but the reality is that although Gold backing may well be part of a new setup the system will still operate at the street level with some form of paper and credit card digital system which will eventually become corrupt. My limited hope is that during the ‘reset’ Gold and Silver will jump and I can take advantage of what is to follow.

  • Larry

    I really wish you would STOP repeating the FED use of the now obviously false label on their massive printing of currency as a “stimulus” package. We all know by now, that the FED is only facilitating the fleecing of the public via the big banks / multi-national corporations buying up all real assets and enslaving all humanity under their whims. They own the politicians. We have also become their property to do with what they want.

  • Larry

    You wrote: “Monopoly manipulation of interest rates does not cause a country’s economy to grow in a “normal” way.”
    We now know, by observation, that massive money printing was meant to move all ownership of real assets into the hands of a very small group of elitists. The term “stimulus” was used to fool an ignorant and apathetic public into accepting their being ground down into servitude under the elite illegitimate owners of capital and resources.
    I use the adjective “Illegitimate” because bribing and deals made in secret from the public is NOT legitimate.

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