About a month ago, I wrote a bit of a rant entitled The Recovery is a Lie. Since writing that, the economy has grounded to a halt, the stock market had the worst May in years, the Dow Jones Industrial Average has dropped over 6%, people are flooding to cash, Europe has begun getting worse again, and China’s economy has begun slowing more than anyone expected.
And just week, we found out that unemployment — even the cherry-picking numbers the government gives us — just shot up again, because fewer jobs were created in May than needed just to keep up with a growing population. That’s very bad.
But this isn’t happening for free. No, that’s where the real problem lies. We’re paying for it — we’re paying dearly for it. So far, the government has tried to claim responsibility for jobs created, and even by their own numbers it amounts to something like $2,000,000 per job.
It’s insanity. It’s just a bad investment. Literally dumping cash from helicopters would have likely been more successful than what we’ve seen so far.
Remember, that’s money we have to pay for. And no, taking $2,000,000 from people to create one job doesn’t create more jobs overall — it costs jobs, because you’re taking money and just dishing it out in an inefficient manner. The government is slowing down real job creation.
If there had been no government spending, bailouts, new regulations, or whatever else the feds are trying to do to “save” the world economy, we would have already begun seeing real job creation. If it hadn’t been for the Fed trying to “save” the economy in the early 2000s, we would have never had the housing bubble, bust, and financial crisis either.
The entire fault of the broken system is in the government and the people in the corporations that manipulated the government to “Save” the economy. It’s simply unavoidable.
Over the next two or three months, if the economy continues to slow and jobs aren’t created fast enough to keep up with population growth, then we might see QE3, and precious metals will likely begin to dance. If not, then they will likely stay flat or even slide a little.
Either way, by now you probably know my precious metals strategy. I’m buying some more this month, next month, and the next. It’s the world’s most simple long-term financial security move. Nobody ever complained about having a chest full of gold, and in 10 years, I don’t believe I will either.
Join Over 8,000 Investors:
In less than 15 minutes a week, you'll learn everything you need to know about gold prices, the collapsing dollar, and the real inflation rate.
Thousands of investors have already signed up for the newsletter and are getting the info for free: