Today was a very significant day for precious metals, as the market simply rejected the monthly propaganda from the U.S. Bureau of Labor Statistics: its July “non-farm payrolls report”. However, I’ll discuss the developments for gold and silver later today in “This Week In Precious Metals”. For the moment I want to explain why the market rejected the lie which the U.S. propaganda machine attempted to pass off.
Regular readers will know that I have written frequently about the favorite Big Lie of the BLS, its utterly absurd/totally fraudulent “birth/death model”. This one lie fabricates more than 1 million imaginary jobs every year in the U.S. However, with people (like myself) drawing ever more attention to that one, blatant fraud; the BLS has needed to come up with new ways of lying-with-numbers. Thus it has increasingly turned to its second-favorite lie: “seasonal adjustments”.
This other Big Lie produces somewhere in excess of ½ million imaginary jobs each year (and possibly more than 1 million), including 300,000 – 400,000 imaginary jobs in the month of January alone. In other words, these two lies by themselves account for more than 100% of all U.S. “job gains” during the 3+ years of the supposed “U.S. economic recovery”. Thus (in the real world), the U.S. economy never stopped losing jobs.
With the U.S. propaganda machine desperate for a Big Lie this week (to dampen speculation that more Fed money-printing was imminent), the BLS turned to “seasonal adjustments” to fabricate the desired number.
Here is how they did it. It had previously been publicly announced that (supposedly) U.S. auto-makers were going to engage in massive lay-offs in July, in order to “retool” their plants. That retooling never took place – most likely because the auto-makers can see for themselves that there will be no one to buy their cars, as the U.S. economy crashes again.
Anticipating those supposed, massive lay-offs; the BLS made a huge (positive) “seasonal adjustment” for this month’s report. Thus all of the 160,000 “new jobs” reported for July (plus more?) were simply lay-offs that never happened. Worse (for the propaganda machine) all these fantasy-jobs should all be subtracted in next month’s report – to reverse this month’s phony “adjustment” – making next month’s number look even worse than it really is. Don’t hold your breath waiting for that to happen.
In the meantime, we appear to be heading toward the ultimate fate of all compulsive liars: people are simply ceasing to believe The Boy Who Cried Wolf…
“U.S. Payrolls Rise More Than Forecast; Unemployment 8.3%”
Payrolls in the U.S. climbed more than forecast in July as automakers and health-care providers boosted employment, even as the jobless rate unexpectedly increased to a five-month high…