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January 11, 2010 / Hal (GT)

Some “In the News Today” items.

Karl Denniger has a great post over at The Market Ticker titled Fed’s Bullard Admits To Bubble Blowing…:

… and what’s worse, makes clear they won’t stop – and why.

Indeed, what James Bullard has done with this speech is both destroy the claims of Bernanke that low interest rates didn’t cause the bubble (remember, Mr. Bullard is a Fed President) but at the same time he pulls down the curtain on exactly why The Fed ignores bubbles!

In my previous post I noted the jobless numbers. You need to get a look at this graph comparing goods producing jobs versus government payroll.

goods-producing jobs vs. government payroll

That sends a shiver down my spine. You can read more about it on Jim Sinclair’s MineSet.

Here’s more one jobs numbers:

TrimTabs: Here’s How A Flawed Holiday Seasonal Adjustment Made The Jobs Data Look Way Better Than The Reality

We believe the BLS is underestimating current job losses due to flawed seasonal adjustments and a mysterious “birth/death” adjustment. In our opinion, the BLS is doing the public a huge disservice because while its results point to recovering economy, TrimTabs’ results point to a dangerously weak economy.

Great post with some revealing charts:

Gold is Cheap Relative to Other Commodities

Finally, from BullTwitts Gold’s Stellar Performance Set to Continue in 2010:

Historically, commodity bull markets have lasted between 15 and 25 years, so if this market was to last only 15 years, that means there is still another 6 years to go. Of course it is almost impossible to accurately predict the duration of these major moves and the ultimate high in prices but, looking at the fundamentals that began this move in gold, they all look extremely positive. Thus, the probability that we will see gold to continue to move upwards is a lot greater than the chances of it plummeting back down to US$800.

Right now the free ExactPrice widget is showing gold at $1,154.20 an ounce. Silver is at $18.74. Platinum at $1,590.30.


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