Gold and What Moves it.

While I wouldn't rush into a crowded movie theater and scream FIRE after reading this morning's labor report, I wouldn't describe it as steady either. The headline should be modified to say hiring and unemployment 'steady', as long as steady implies underperformance (from the previous economic cycle (chart 1) and deterioration (chart 2 & 3); this headline would likely be too scary for a public yet to be confronted by the next round of horse manure called the debt ceiling debate.

Whether the public gets it or not, something is definitely wrong.  Long-time Insight readers recognize this something as the enormous and unstable debt burden of the Western economies and failing confidence that central planners can control it without social and political consequences.  It's also known as the Sovereign debt crisis to the global community. 

Can central planners control the debt crisis?  The steady rise in the price of gold despite periodic attempts to shoot the messenger of bad news since 2001 suggests that it's unlikely.  Those heavily ...