“Markets” Are A Total Farce: Stocks Pushed Up – Gold Pushed Down By The Fed
SilverDoctors.com
May 27, 2016
While days like today may be painful to watch, the truth is that since the Fed began bashing gold with rate-hike drivel starting last Monday, the S&P 500 has not moved higher despite days like today which make it feel like the stock market is poised to hit an all-time high.
When the Fed pushes down the price of gold with paper during NY Comex floor-trading hours, take advantage of it by buying some physical gold or silver.
Submitted by PM Fund Manager Dave Kranzler:
I described the other day what a circus the inter-FOMC meeting periods have become. One by one Fed clowns appear to describe an economy at full employment and threaten us with another one-quarter of one percent Fed Funds rate hike. Since this process has started last Monday, the S&P 500 has been flat but gold has been taken down methodically about $80, or 6.7%. The mining stocks as represented by the HUI have been dropped 12% from their high last week.
Yesterday the circus took on a new dimension. SF Fed John Williams was once again out promoting rate hikes this year and even more rate hikes next year – LINK. St Louis Fed clown Bullard was out yesterday pontificating that low rates for too long could be risky –LINK. You don’t say, James? Is he referencing the nominal .25% Fed funds rate since lat e 2008? OR is he referencing the negative real interest rates since well before 2008? To which measure of interest rates are you are you referencing, James?
They both made some insane assertions about “full employment” in the economy. Does that mean that anyone who wants to be a bartender or barista can find gainful employment? But what about the 38% of the population that is no longer counted as part of the labor force? A large majority have given up looking for work because it’s easier and pays better to soak off the taxpayer via Social Security Disability, Welfare and Student Loans.
Everyone knows that the true unemployment rate is over 20%. This is based on applying the way the Government calculated unemployment in 1980. We still have the issue of data collection and “massaging.” The economy is far from healthy and the flow of economic reports from private sector sources, including regional Feds, continue to reflect an economy that is deteriorating down the level of economic activity in 2009.
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