In this week’s SD Weekly Metals & Markets The Doc & Eric Dubin discuss:
- Bernanke’s congressional testimony- Bernanke admits he doesn’t understand gold, and that the economy would tank if the Fed actually withdrew QE
- GOFO negative 10 days and counting- indication of gold shortage of historic proportions
- 90% silver out of stock at nearly all US wholesalers, shortages again occurring in Eagles, Maples, and even generic rounds and bars
- Cartel defending $1,300 gold and $20 silver with everything they have because they know a gigantic level of short covering will ensue at prices just above those levels
SD Weekly Metals & Markets With The Doc & Eric Dubin is below:
“MOPE” As Far As The Eye Can See
By Eric Dubin
Would someone – anyone – like to step-up and point to a federal government economic data series that isn’t massaged into total bullshit? On second thought, just private-message me and let’s keep the secret to ourselves. No doubt, as soon as we start publicizing it, the know it alls at the Treasury Department or the Bureau of Labor Statistics will set-up a committee to “improve” the data.
Just consider this “headline level” analysis out of the US Labor Department today, July 18th. It was reported that initial jobless claims, a proxy for layoffs, fell by 24,000 to a “seasonally adjusted” 334,000 in the week ending July 13th. Yes! Break out the champaign, right? Well, while the media pays attention to that headline, the same report also noted that the number of people that continue to receive unemployment benefits for a week or longer grew by 91,000 to 3,114,000 in the week ending July 6th. Yes, there’s a one week lag, but so what? “Initial jobless claims” in simple English means new claims. We’re supposed to celebrate when there are nearly a third of a million new people filing for unemployment claims in the week ending July 13th and total recipients continue to be on the rise? These are government numbers – massaged and manipulated – and yet even with these stats, the bureaucrats can’t even make the MOPE float.
Hedge fund manager Dave Kranzler, the proprietor of the excellent blog, “The Golden Truth” served-up analysis Wednesday that’s worth your time. I agree with much of his take, and rising interest rates must have Uncle Ben tied up in knots. I spotted the trend early and reported it to you early May and later that month on SD Weekly Metals & Markets. We’re now beginning to see the significance of rising rates because that dynamic has much to do with the Fed’s constant flip-flops about stimulus. He’s terrified that organic demand for Treasury bond issuance is nowhere near adequate at current interest rates, yet he simultaneously faces the fact that a $4+ trillion dollar Fed balance sheet will eventually demand higher rates as well. As I wrote earlier this month, the Fed is F*cked and there really isn’t much they can do to extricate themselves. I guess that means we’re stuck with another few months of absurd flip-flopping about stimulus.
For a Fed that championed the idea of transparency — just like Obama’s now laughable campaign promise to be the most transparent presidency in history – their performance runs in the exact opposite direction. Just because their lips are constantly moving doesn’t mean they are speaking the truth. In the long-run, central banks require “confidence” to be taken seriously by financial markets. Bernanke may have scored a near perfect 1590 on his SAT, but he’s either a total idiot when it comes understanding what it takes to instill true, long-lasting confidence — or just a con man. Take your pick. The results are pretty much the same.
Tune in to the audio segment for the Doc and my take on where we are with precious metals market trading. The cartel is defending $1,300 gold and $20 silver with all its might because they know a gigantic level of short covering will ensue at prices just above those levels.
PS: You might also wish to check out “BLS number is BS” penned by New York Post reporter John Crudele. It’s a great read.
Everyone knows that staying updated with precious metals news is a chore in itself, which is why SilverDoctors has created our very own browser add-in toolbar to help you stay better informed. The toolbar supports the three major browsers: Firefox, Chrome and Internet Explorer, and when installed, will add built in functionality to your browser directly below the address bar showing you trending RSS links, provide you the ability to search the SilverDoctors site and give you a link directly to our home page. Click the free install button to install the SD Toolbar =>