I Am Thankful That I Bought a Bunch of Gold Last Year
I have in-laws arriving in town as I type, so I won’t be blogging much over the next few days. I just wanted to drop a note alerting my more Ivory Tower readers that gold smashed into new territory (again) today. Right now it’s $1,186.10 / oz.
Also let me link to this great EPJ deconstruction of the jobless numbers. As Free Advice readers are well aware, I have spent surely a ridiculous amount of time harping on the seasonal adjustments and other tricks that I think government officials (and the press) use to paint a false picture of falling prices. Wenzel shows that they may be doing something similar to paint a false picture of a recovering job market.
This is partly why I think there could be an absolute crash in the next few months, and that this stuff isn’t going to just sloooowly deteriorate. As obvious as it is to me that we are getting hyperdepression (stagflation squared), I think the average guy on Wall Street thinks, “Yeah they’re spending a lot, but things are turning around and we just have to rein in the deficits in a few years. And Bernanke will eventually have to suck out the liquidity once real estate rebounds. Fortunately with unemployment this high, we don’t have to worry about inflation anytime soon.”
Riiiiight.
