from The Daily Bell:
Fed Worries Are Crushing Gold and Silver Stocks … Gold slumped today, finishing at its lowest level in a month after investors grew worried that the Fed would signal that interest rates would rise when it meets this week. – Motley Fool
Strange that the US central bank can preach increased prosperity at a time when some 90-100 million potential workers in the US don’t seek formal, mainstream employment.
On top of this, as Ron Paul wrote recently (here), the numbers that do issue from fedgov regarding employment are untrue.
The most recent employment numbers featured an increased amount of service jobs. But even that wasn’t really true as the numbers were “adjusted” upward by fedgov itself.
In this case the word “adjusted” means that the numbers were simply arbitrarily enlarged.
Because this number is so “good,” the Federal Reserve is now contemplating a rate increase, presumably one of .25%
In fact nothing has changed. The quasi-depression that afflicts the US and the world remains. The impatience of central bankers also remains.
It is a matter of control. The Fed needs higher rates in order to move them back down. Going negative in the US is probably a difficult proposition, one that would arouse considerable media controversy, which the Fed probably doesn’t want at this time.
So it really doesn’t matter what the “real” numbers are. The Fed needs to move rates up in order to move them back down.
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