The US economy remains in recession. And once the truth breaks out, the stock market will slip into crash mode. The stock market is up on Fed manipulations, and the economy is up on lies and propaganda. It’s a poisonous combination - Richard Russell, King World News LINKI encourage everyone to read that brief interview with Richard Russell.
As I discussed yesterday, we know the Government is lying through its teeth to us about the Ukraine situation. It's amazing how quickly CNN and Fox News seem to have misplaced the Victoria Nuland phone tape discussing the $5 billion the U.S. has "invested" to foment the unrest over there. You know, the one in which she says "F_CK the EU." Both CNN and Fox are disseminating nothing but the lies being promoted by Obama/Kerry etc without researching or reporting on the actual facts. Kind of ironic that CNN backs the Obama regime's backing of the neo-Nazis who have taken control of western Ukraine (I'm not surprised that Fox News supports this).
The Government also lies about the employment situation in this country. We saw the most recent example today with the Bureau of Labor Statistics monthly employment report claiming that the economy generated 175,000 jobs in February. I don't want to go through a detailed analysis of the data as reported and the obvious statistical manipulation implemented on that data. The real issue is the legitimacy of the data itself. This requires thinking about the data as presented in the context of every other business data report that was released during February, especially the reports from the private sector.
As one example, the BLS claims that the construction industry added a total of 55,000 jobs in January and February. Yet, we know from homebuilder reports that housing starts have been tanking. And what about the "bad weather" narrative. If housing starts declined over the period and bad weather prevented this, how on earth is it possible that profit-seeking businesses hired workers? Does anyone really think that a homebuilder executive, who is trying to keep his stock price elevated so he can unload as many shares as possible (see the recent S-4 SEC stock transaction filings - homebuilder execs dumped shares in February), would spend money hiring workers who don't have to work?
That's just one line item example. There are several. The point here is that if you look at the numbers being reported - regardless of how they are manipulated to paint a positive picture - in the context of everything else that has been reported about the economy, there's no possible way that the economy generated job growth in February. In fact, the ill-reputed "birth/death" model, which everyone understands is used as "plug" number the Government uses to pad the employment data, explains 125,000 of the 175,000 jobs reported. The birth/death model has been dissected and shown to be a complete fraud ad nauseum.
The smart money must understand this, because the S&P 500 futures gapped up nearly 10 points when the number hit the tape. It's currently trading down 3 points, 13 points lower than the initial buying orgy. The real damage was inflicted by the banks who manipulate the gold and silver market. Instantaneously as the report hit the newswires, gold was demolished for a total of $25 before recovering some of the manipulated damage. Right at the time the report was released, nearly 8,000 gold contracts were unloaded on the Comex.. To put this into context, in the 14 hours and 20 minutes of Comex gold futures trading that occurred from 6 p.m. the previous evening until the 8:30 a.m. Comex open today, the total volume was roughly 45 contracts per minute. You decide if the 8,000 contracts dumped at 8:30 a.m. was legitimate selling or motivated Fed/Govt manipulation
The most frightening part about all of this the fact that the Government finds it acceptable to lie to us about everything. The U.S. Government has become as corrupted and self-serving as was the old U.S.S.R Government that many of us grew up fearing. The lack of fear about what has happened in our own backyard is truly stunning.