Houston, Markets, Mnuchin, Powell & Trump – After Today’s Jobs Report WE HAVE A PROBLEM!

Gold & silver SMASHED into and after the release of the report, but the cartel has a much bigger problem on its hands than just smashin’ the metals…

The 8:20 a.m. EST smash on volume was in effect today:

Typical.

Also this morning before the release of the December Jobs Report, well, this:

First it was the Fed, then is was a “glitch”, but now the stock market decline is because the Democrats won the house?

Wow.

That’s like having your cake, eating it too, indulging in another slice, and then eating that one.

Amazing.

The Employment Situation Report, also known as the Nonfarm Payrolls Report, or the Jobs Report, was just released for December, 2018.

Prior to the release of the report, here is what the expectations looked like from Econoday:

Here are the actual numbers as reported by the BLS:

Number of jobs created in the month of December, 2018: 312,000

Unemployment rate rose to: 3.9%

Average hourly earnings (year over year) rise: 3.2%

Labor force participation rate: 63.1%

The minute the “news” of the jobs report “hit the tape”, well, sell of course:

Because when your the government (Exchange Stabilization Fund, etc), the central bank (Fed), and/or agents of both, collectively known as “the cartel”, sell is what you do into the release.

Here’s Bloomberg’s take on the print (bold added for emphasis):

U.S. employers added the most workers in 10 months as wage gains accelerated and labor-force participation jumped, reflecting a robust job market that nevertheless faces mounting risks in 2019.

Nonfarm payrolls increased by 312,000 in December, easily topping all forecasts, after an upwardly revised 176,000 gain the prior month, a Labor Department report showed Friday. Average hourly earnings rose 3.2 percent from a year earlier, more than projected and matching the fastest pace since 2009. Meanwhile, the jobless rate rose from a five-decade low to 3.9 percent, reflecting more people actively seeking work.
*****

The labor strength spanned most industries, including the biggest gain in construction since February, and the most manufacturing jobs added in a year. Private service providers boosted payrolls by 227,000, the most in more than a year, amid gains in education and health services, leisure and hospitality, and retail.

In other words, standby for the Friday Wrap to likely include a Tweet with “Jobs Jobs Jobs!”, because this December Jobs Report is absolutely smack-dabbin’ spectacular!

If you believe the government numbers.

There must be a reason for wanting a most super-duper of super-duper jobs report, and unless you’re on the inside with direct knowledge, it is all speculation. Speculate if I may, I would say a print like this is aimed at slashing market hopes of a “rate hike pause” or even a “rate cut” so the “controlled demolition” of the markets and the economy can continue at a sustained rate of fire. The markets haven’t figured this out yet, but they will.

Ahh, the hubris of the cartel.

It has worked in gold & silver for decades.

It will work until it suddenly won’t.

The knee-jerk reaction sent gold lower and silver basically unchanged:

Remember, knee-jerk reactions take time to play out, and the knee-jerk reaction is not always the direction of the actual, eventual move.
Some additional coverage of the jobs report, courtesy of ZH:

Putting the number in context, this was the biggest beat since June 2016… which may not be such a good thing as the last 2 big beats both saw a big plunge the next month.

It wasn’t just the scorching payrolls number, but also the average hourly earnings print, which jumped by 3.2%, higher than both the November 3.1% and the 3.0% consensus; in fact it was the highest number since April 2009!

In addition to the “Jobs Jobs Jobs!” Tweet, I will be looking for the, “because of me, Americans are earning more and more every paycheck, and it’s a beautiful thing” Tweet.

Nearly an hour after the report and we see continuation of the knee-jerk:

Are gold & silver really down for the count today?

We’ll see.

What is the take-away from the December Jobs Report?

For the mainstream sheeple, the takeaway is “Houston we have a problem!”.

Why?

The Fed (theoretically) has two mandates – stable prices and full employment.

With a “robust job market” (take that as you will), the Fed has no choice but to continue to appear “hawkish” on the economy. This means the Fed, when it comes to the labor market, must hold the position that the economy is booming as evidenced by all of this job growth. Plus, this wage growth is working towards accomplishing the Fed’s stupid “symmetrical 2.0% inflation target”, so again, the Fed has no choice but to talk up the economy as the best thing since sliced bread.

The same goes for President Trump.

In fact, the President is going to absolutely love this jobs report openly.

Privately, I’m not so sure, because we know he has been vocal in wanting the Fed hold on the rate hikes.

But the economy is booming, right?

And a booming economy is supposed to have interest rate hikes, right?

Ah, nevermind.

So this jobs report means the Fed rate hikes are back on the table, if they were ever even off of it.

We know the economy can’t handle higher interest rates, so that is why “Houston has a problem”.

The economy is really not booming, and those who think otherwise are in for a rude awakening.

Speaking of an awakening, let’s see what Q has to say today about how great things are under President Trump:

 

Oops.

We can’t.

Q is still on free paid-vacation.

OK then, what are the other takeaways from this jobs report?

For the cartel this jobs report means a continuance of the controlled demolition of the markets and the economy (which the cartel thinks it can actually pull-off).

For the Fed this jobs report means a pat on the back.

For the President this jobs report means the greatest, most-bestest economy ever.

For gold & silver investors this jobs report means any pressure the cartel brings is a dip-buying opportunity.

Gold and silver prices are already dirt cheap.

And now they’re having a flash sale.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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