The U.S. Non-Farm Payroll report was released by the U.S. Bureau of Lies Labor and Sophistry Statistics on Friday morning. The report was an unmitigated disaster with the U.S. economy adding just 115,000 jobs on expectations of 170-180k. But, through the miracle of accounting that would make a Vietnamese loan shark proud, the unemployment rate dropped to 8.1% even though more than 800,000 full time jobs were lost last month, more than 500,000 people fell out of the labor force and the heuristically massaged and seasonally adjusted birth/death model came in at a record number of more than 200,000.
And CNBC said the report was mildly bullish because net jobs were created. Remember this is logic promulgated by people who think that slowing the rate of growth in government spending is a cut.
Gold was initially beaten with a Scottish ugly-stick of the red-haired stepchild variety trading as low at $1628 per ounce. The problem for the Fed though, was the bond market really doesn’t believe the Central Bankers’ claims that more money printing isn’t necessary and the physical market sat back like Carlton Fisk just catching the tons of gold being thrown away like it was made of tungsten or something.
Gold closed up for the day but down for the week at $1642.85 per ounce. And is still bounded by the major moving averages that I’ve highlighted in the past: 55,144,288 EMA on a daily chart.
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