Well, now we know why they aggressively and blatantly tried to push gold as low as possible this week. Is this the best they got?
I am not going to discuss the actual details of what was reported in today’s NFP (non-farm payroll report). This serves no purpose other than to imbue the numbers that were reported with some sense of legitimacy. The numbers are a fairytale and I’m not in the business of engaging in a debate over the "finer points" of fantasy-derived fiction.
Having said that, and given that the August lie was revised lower by 21%…think about that for a moment: the stock market screamed higher on a number originally reported in September that they decided was incorrect by twenty-one percent…let that sink in for a moment…one has to wonder just how bad the truth is that lies beneath the carefully constructed fiction.
If you take a paint-scraper to the heavy latex paint applied on top of the facade, just how badly damaged is the underlying structure?
Again, without giving any acknowledgement to the validity of the number that was reported, the Government is telling that the percentage of the population that is "participating" in the labor force is at its lowest rate since 1977. That is a staggering statistic because in 1977 this country was largely still a one-income producing household. So how catastrophic is the real number?
Interestingly, after the "number" was reported, the S&P 500 futures embarked on a 40 point reversal from the 10 point gain that the Fed had managed to achieve overnight. A 40 point reversal that was not just a "flash crash" because it took several minutes to transpire. Conversely, gold had been pushed lower by Yellen’s gang and it embarked on a $33 dollar upward reversal.
The reason this is interesting is that if this "miss" by a major "economic" report had occurred 3 months ago, the S&P 500 would have spiked up 30-40 points on the "renewed" indication that the Fed would not raise interest rates at the next meeting. Conversely, gold would have been slaughtered because the only way to smear the lipstick of legitimacy on ZIRP is to make sure gold stays in a dungeon.
Something has changed in the complete character of the market and the Fed’s ability to manipulate it. We saw this a couple weeks ago when the stock market behaved scatologically – and gold shot higher – after the Fed deferred (predictably by me) on hiking Fed funds by even a tiny amount.
The Fed is losing control of a system that is rapidly collapsing from countless skeletons in the closet that have come to life. Too much debt in every nook and cranny of the U.S. system; hidden OTC derivatives bombs with lit fuses; impending emerging market sovereign bankruptcies; a real economy that is in a frenetic downward spiral; the most overvalued stock market in history (when you strip out all the accounting gimmicks piled into what is being reported by S&P 500 America).
Perhaps most frightening is a political system with the wheels coming off. A good friend and colleague of mine – and someone who was actively involved in politics at one time – commented, after Boehner announced that he was quitting the job he was elected and paid well to do, that he couldn’t recall ever seeing so many "insiders" voluntarily leaving the system (Congressmen, Bernanke, high profile hedge fund managers) as we’ve seen the past couple years.
And now guys like Carl Icahn are openly stating that the system is fake and will sooner or later crash. This is the guy who got rich off of exploiting and front-running waves of dumb money piling into the the markets (he was an original beneficiary of Drexel Burnham’s junk bond odyssey).
Something really devastating is coming at us in the system. The insiders see it but we can only see and interpret the smoke signals that are leaking out from the cracks in the Orwellian wall that has been built over the last 40 years which has prevented the herd from seeing the truth.
The best we can hope for now is that the insane neocons running the Department of Defense do not start pushing the wrong buttons as a means of deflecting our attention from a system that is economically, financially, politically and socially collapsing.
Dave Kranzler, Investment Research Dynamics
You lowlife slime. I have never lied to this board.
You are very fortunate not to be standing in front of me right now coward.
Put up or shut up.
Post proof of your assertions or shut up. You don't have the character to apologize.
jazzee, for you to refuse to accept the word of the Atlanta Fed itself, in this matter, should be a warning sign to all that you are a dangerous and unreliable source of information.
Jazzee asserted that the Atlanta Fed GDP Model is net of inflation due to its being referred to as being “real”
Here is his actual post:
"Another example of unusual ignorance. Google for "Real GDP" and read definition of it, e.g. in wikipedia. Most people learn it in school."
I sent an email to the Atlanta Fed’s official contact and promised, in the interest of transparency, to post his response as to whether the Now numbers were net of inflation.
Here is his response:
"The GDPNow model does not net out a nowcast of inflation for the GDP Deflator, although one could probably extend the model in that direction with some additional programming. The Cleveland Fed has nowcasts of total and core inflation for both the CPI and PCE Deflator:”
The truth is that the Atlanta Fed’s GDP Now does not net out inflation. This means that, despite their inclusion of the word “real”’ the 1.8% forecast, after inflation, US GDP is negative.
Is there any doubt that the economy is headed for the ditch?
What say you jazzee?
There is no mention of the rate of inflation used in the calculation. Since 1991, they have re-invented their formula to show numbers that suit them best. Let's see what they are using before assessing reasonableness.
As I said in a previous post, I will, in the interest of transparency, the numbers provided by the Fed.
Another useless, fact-void diatribe by the yappy little board puppy.
The fact remains that b.t. was totally wrong and doesn't have the stones to man up.
The Atlanta Fed website makes no mention of inflation being netted out of their GDP Now numbers. I have made an enquiry of the Atlanta Fed as to whether inflation is, indeed netted out and if so, what rate of inflation are they using.
I will report their response, in the interest of transparency. Anyone who wants to, can independently verify this for themselves, and I would suggest that they do so.
I'm glad that you have gone on record to say that you are happy with 1.8% GDP growth in Q3/15. Others may think that growth below the rate of inflation isn't particularly good, but thanks for being honest.
So, are you actually saying that 1.8% is good? There is no way that the US Govt. would let 0.8% stand, so anybody with a pulse could safely say that it would go up from there, but are you OK with 1.8%?