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.
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.
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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