Recession? What Recession

While stocks and gold were up a smidgen this week, it was a pretty tough week for all manner of commodities. Administration propaganda deemed the jobs number that was put out today very strong, but as David Stockman points out, that is just more postmodernism insanity, which simply tells us not to believe our lying eyes. You can’t know if you are a man or a woman so how the heck are you going to know if we are in a recession or not? Hey, if President Biden says it’s not a recession, then by golly, it’s not a recession, right? Just think happy thoughts and all the bad stuff will go away.

Lying and spinning might enable the Democrats to get rid of what’s left of our republic and turn America into a fascist dictatorship. I think that is what they’re aiming for even if they don’t recognize it themselves. Getting rid of an independent supreme court, which is what the Democrats want to do, will seal the deal, making America into a mobocracy rather than a democratic republic. So, Biden can put any name he wants on a contracting economy but it won’t stop the sharp decline in living standards of the American people. And if we Americans are so willing to simply accept what Biden says without questioning it, then we pretty much deserve what comes our way.

This week our IDW fell from 188.88 to 186.43, or 1.3%, which is a pretty good whack for one week. Oil was down 9.39%, Copper fell 1.1%, Silver lost 2.3%, and the Rogers Raw Materials Fund lost 3.7%. Walmart lost 4.1%, Autos lost 3.25%, Housing stocks fell 2.1%, and Real Estate Investment Trusts gave up 1.5%. And while the S&P 500 advanced 0.36%, the long bond, (TLT) lost 0.82%. So, it was a pretty miserable week. But hey! Don’t believe your lying eyes because, according to Biden, the labor market is extremely strong. 

Or is it? As David Stockman points out, to call this an extremely strong job market is a sad joke. As he explained, “The July nonfarm payroll (NFP) print this morning was 152,536,000, which, with the aid of a magnifying glass, we can compare to the pre-Covid figure of 152,504,000 posted in February 2020. So that microscopic gain of 32,000 computes to just 1,067 net new jobs per month over the period, or a 0.001% monthly gain. And that’s in a context in which the official labor force numbers 164 million and the actual working age population is in the 220 million range. 

So under a false pretense, the Fed is going to keep raising rates in a recession and at a time when our debt/GDP of 120% dooms America to bankruptcy. With inflation far higher than any possible rate increases, to what extent will even these modest rate hikes reduce inflation? A Biden economist said on Fox today that he thought it could reduce the CPI rate by ½%!

The future is very uncertain. Serious shortages of all manner of essential products starting with energy and extending to food shortages appear to be the design of the World Economic Forum. Ultimately, we have no choice but to depend on our Creator for existence beyond these four dimensions of time and space. But while in our current existence, you can be very sure that man’s inhumanity to man will continue because it has since the Garden of Eden. And you can also be nearly 100% sure that central bankers will seek to “solve” shortages by printing money, which will only serve to cause the price of real money—gold—to rise to unfathomable heights. 

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.