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Friday, June 4, 2010

Gold Keeps Rising as Recession Continues

As mentioned in the past a Everything Gold, the job numbers posted by the government have been bogus for a long time, based on the fact they were just using the hiring of census workers to prop up the numbers, and in some cases it seems there may be fraud involved based on people being hired and rehired and counted as a new hire each time to inflate the new job hire numbers.

Consequently that farce is catching up with the Obama administration as new job numbers show that other than the inflated hiring of census workers, jobs haven't been being created, including the private sector, which hasn't been creating new jobs.

Tom Pawlicki, precious metals analyst at MF Global in Chicago, said this, "With the employment numbers coming short of expectations and the majority of jobs being census workers rather than private payrolls, I think it shows there's a chance the economy is not recovering as fast as previously believed."

I would add that it's doubtful there's ever been a recovery, just massaged numbers to make it look like it.

Pawlicki added that this could be a very positive factor for gold, especially if it results in a double-dip recession, or as I would add, the realization the recession never ended.

Gold rose on the bad economic news, closing the Friday session up $12.20, to end the week at $1,220.

At to this a completely new story in the sovereign debt crisis on Friday when Hungary said they're at risk of a credit crisis similar to Greece, and you see how gold is positioned for a long upward run.

Whether or not Hungary is in dire straits or not isn't the point, the point is the moment the European Union decided not to defend the euro, it was inevitable that a bunch of beggar nations would start lining up for their bailout; possibly with Hungary being one of many in line, or ready to get in line.

Even after this news some continue to adhere to the fantasy that we're in a recovery, albeit a slower one than expected. Their problem is they continue to trust the government numbers, even after realizing they're propping them up by hiring over 400,000 more temporary census workers.

Either way, those looking for safety and long-term financial health in gold, won't be disappointed, as the faux recovery is discovered and revealed to be just that, and when the downfall "resumes," we all know it's just a continuation of what's been going on since the great recession began, and not a double-dip anything.

Don't be fooled by the demagogues and optimists without foundation. Gold is going to continue to rise no matter what dubious data is thrown out there to attempt to stop it.

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