The U.S. economy is giving every indication of lapsing into depression. I’ve commented in the past about the propaganda being issued constantly in the United States as it relates to the phony jobs numbers but they now appear to be getting more absurd with each release.
However, another perhaps more pressing problem is the tenuous state of the U.S. dollar, which is seriously over-owned globally. At any sign of emerging weakness, they trot out some Fed official to talk about an imminent rate increase and then aggressively manipulate the currency and precious metals markets to give credence to the statement.
Earlier this week when the U.S. dollar was giving ground noticeably, it was New York Fed President, Dudley, yet another Goldman Sachs alumni, who acted as the hit man, talking about a September rate hike and backing it up with all sorts of misleading information. The ploy worked as the dollar rebounded and gold was hammered to the tune of roughly $20 by the usual suspects.