Good Economic News 12-04-09 mpg Job market shows big improvement - [only 11,000 jobs lost vs a projected 100,000-125,000] Special Note - Non-Deflation Alert - Really good news - A quote...."NEW YORK (CNNMoney.com) -- The long-suffering U.S. jobs market improved significantly in November, as employers trimmed the fewest jobs of any month since the start of the recession, and the unemployment rate posted the biggest one-month decline in more than three years." Editor's Special Note: The stock market of course did absolutely nothing on what should have been considered fantastically good news (by the way, this could be a sign that it's topping out, a phase which can last two to three months) while the bond market tanked on inflation expectations. On the other hand gold also plunged which is not what it should do according to "conventional wisdom", but as has been pointed out by authors posted on this website, gold has acted more like a standard commodity for many decades than as a "hedge against inflation" or as "a store of real or intrinsic value", and as such it can experience booms and busts just like any other commodity irrespective of inflation or deflation. Also it should be noted that the dollar went up today because of this good news and as a currency hedge, which is why many people bought gold recently, gold could very well do the opposite of what the dollar does. The fact the stock market did not go up and bonds tanked probably means people are anticipating the end of Fed easing. (As interest rates go up bond prices drop). However, the Fed has stated it will soon discontinue its enumerable support programs of roughly twenty four trillion dollars worth of paper production (despite what many people say they WILL NOT be able to "unwind" them) while it is also concealing several massive undeclared holes in its multiple balance sheets, which they may very soon be forced to disclose, (Ron Paul's bill). As such it's hardly likely they'll raise interest rates anytime soon. That being the case, this website editor still maintains there is a substantial twenty percent chance of another depression era deflationary down leg in the economy IF the Fed and the parasitic class do not succeed with their program of "paper production", (Whereas three months ago it was 30%). If however they’re able to succeed with their program there will simply be an eighty percent chance of a larger, more destructive variant, of the early seventies to early eighties stagflation. (Whereas three months ago it was 70%). Except for the US-NRE's own gigantic and growing credit/debt bubble, which has contributed substantially to the rise in the stock market, the commodities market appears to be the only financial arena that might develop into a long term bubble in the foreseeable future, and only because of all those other industrial economies out there who are busily purchasing as many commodities as they can. Other than that, there is absolutely ZERO CHANCE of the Fed building another bubble of any sort, anytime soon, and of course the Fed and the parasitic class have absolutely no intention of creating a stable currency or a well regulated industrial economy in this country ever again. It's simply not in their interest to do so. – mpg For more on this issue see....The Virtual Economy - 05-01-09 - mpg See also....Price Deflation, Black-Scholes & The Fed - 12-01-09 - mpg |