Egads. Skyrocketing unemployment proves John Williams is spot on with his bleak outlook for the US economy. Leave it up to an increasingly desperate Cartel to respond to these awful numbers by selling a whack of paper Gold in the illiquid Globex after hours as if hoping noone will notice the huge gap this creates between commodities and PMs. We know full well these shenanigans will have little lasting effect in the face of persistent and record price inflation in commodities, as someone is bound to quickly capitalize on this artificial imbalance between these bullish sectors. The smart money knows full well QE will float all boats at the end of the day and furthermore there is every reason for Gold/Silver to outperform basic tangibles. So why bother hitting Gold unless the bankers need a window to cover a few more shorts before their book inevitably takes a good hit? What the Cartel fails to realize is by creating an artificial price disconnect with the backdrop of a crashing Dollar, they have provided Gold & Silver with the basis required to slingshot out of this multi-week consolidation area and move into new record territory.

ESL

http://www.johngaltfla.com/

By John Galt
January 13, 2011

Now that I have my internet back, it’s time to rock and roll. The report issued this morning was a major blow to the bulltards who continue to proclaim that America’s recovery is right on track:

The non-seasonally adjusted numbers are the most disconcerting because it means a ton of part time jobs are now over and the various retailers, construction companies, and others using part time labor are going to pause and see if there is any real recovery before even considering expanding their businesses and growing. Not to mention the major battle axe ready to fall on their collective heads as regulations for the Obamacare act and many other hidden gems from the last two years are just now being published which will cripple American competitiveness. Thus when you review the “Great Recession” unemployment claims chart below, just remember it is only going to get worse, not better.