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My gosh!  Russell finally came around.  Earlier this week he wrote, “Advice — Gold — hold all you reasonably can — in physical gold. Keep as much cash as you may need for paying your bills.”  This has been MY position since 2007!  Prior to this recommendation, he had advised that you should have half of your money in physical gold and the other half in cash.  This is a major change of heart on his part.  Since he knows that the Fed MUST continue to inflate (“inflate or die” is the way he puts it) and since he is convinced that the stock market is too risky to participate in now (according to his interpretation of DOW Theory), his new position on how much gold you should have makes perfect sense.  Get “all you reasonably can.”  Congratulations, Richard!  You got it right this time.

Here is Jim Sinclair’s guide to actions and reactions of the price of gold:

According to Sinclair’s “Angel,” the key support/resistance level isn’t $1,775, it’s $1,764.  At the time of this writing (3:00 a.m. on Friday), gold is $1,770.30 and heading back toward the Cartel’s arbitrary line in the sand at $1,775.  Let’s see if gold can finish the week above $1,775 again.  I will be very happy to see $1,800 in the rearview mirror.  That will silence most of the bears, but Larry Edelson will still remain a holdout.  His “it’s safe to come back in the water” number is $1,808 and he says $1,838 is even better, and it has to be an end of the week or end of the month close.  We shouldn’t have much longer to wait!

There are several very good articles out on the recent “U.S. Job Numbers Report,” but the one that best gets right to the point was written by Michael Lombardi.  Here are some of the key points that he brings to your attention:

The Truth Behind Today’s U.S. Job Numbers Report – ProfitConfidential.com

Friday, October 5th, 2012
By Michael Lombardi, MBA

Here’s the real story: 12.1 million Americans who are ready, willing and able to work do not have jobs in the U.S. economy.

So what’s changed since August for the unemployment picture?

The unemployment rate for the people who are considered long-time unemployed did not change. They make up more than 40% of the unemployed in the U.S. economy. These workers have been unemployed for 27 weeks or more.

Looking at the new unemployment rate, we see that the number of part-time employed people in the U.S economy increased in September to 8.6 million, compare to 8.0 million in August. They are not working part-time by choice; they simply can’t find full-time jobs. In addition, there are another 1.7 million people who have not looked for jobs for last four weeks.

Now the real kicker…

The underemployment rate, which includes people who have given up looking for work and people who have part-time jobs who want full-time jobs, remains unchanged from August. It currently stands at 14.7%, which is slightly higher than it was in May of this year.

The real unemployment rate in the overall U.S. economy has not changed. In fact, it is now more vulnerable than before. What I want to see is the underemployment rate going down. This number is very troublesome and should not be overlooked, as it currently indicates that the real employment situation has not improved despite trillions of dollars in newly borrowed and newly printed money.

Continue reading at ProfitConfidential.com

This is exactly the way the current administration operates in their desperation to snare another four years for Obama, not that a Republican administration would act any different.  As we head into the back stretch, all the stops are being pulled to create the illusion that the economy is on the mend, the dollar is still a stable currency, and inflation is nowhere to be found.  Sitting on the price of gold is no accident here.  It is so obvious that Jim Sinclair recently commented that one of the political parties is working overtime to keep gold below $1,775 (of course he was referring to the party in power, the Democrats).

I hope you had a chance to read Gerald Celente’s comments on the merit of both candidates in yesterday’s daily.  Celente is not known for being bashful or politically correct.  Whereas I prefer to state that “It doesn’t make a difference who wins; neither of them will fix the problems.” Celente says that both of the candidates are unqualified to run the country and the next four years will be a disaster no matter who wins.  He suggests the best thing to do is NOT to vote – to demonstrate your displeasure with the choices that we are offered.

My view is the party that takes the White House will be held responsible for the disaster that will unfold in the next four years.  They will be so discredited that the loser in this election will absolutely be the winner in 2016 and forward.  Perhaps losing would be better than winning now.

Backwoods Jack invited Susan and me over for his famous ribs dinner last night.   (Really, he makes the BEST barbecued ribs I have ever eaten.)  After dinner we all settled down to watch the Ryan/Biden debate on TV.  I keep telling him, “Jack, it doesn’t make any difference who wins this thing.”

He replied, “As I have predicted, Romney will win the election and during the ‘lame duck session’ the ‘Gang of Eight’ will propose a 4 trillion dollar debt-reduction plan that will pass Congress and avoid the fiscal cliff scenario.  The egg on Celente`s face will scramble.” 

I’ve got to hand it to Backwoods; he never wavers and is forever the optimist.  Sure, we disagree on most things, but we are still close friends and rarely think about killing each other.  We had a wonderful evening and as usual, the ribs were to die for.  I had very little interest in watching the debate, but as it turned out, I actually enjoyed it.

On the way home, a police officer pulled me over and walked up to my car and said, “Sir – have you been drinking?”

I replied, “Well yes, I had a couple of drinks over at Backwoods Jack’s house.  We were watching the Biden/Ryan debate.”

He said, “Sir, please get out of the car.  You’re under arrest.”

“What for?” I asked.  “I only had two drinks and that was over two hours ago.”

“Oh no,” he replied.  “Not for drinking.  I’m arresting you for hanging out with Backwoods Jack.” Just before he put the cuffs on me he asked, “Who won the debate?”

I replied, “Paul Ryan won by a landslide.  Biden was o.k. with the facts (I think) but the way he acted was embarrassing.  He constantly interrupted Ryan and giggled like a teenager whenever Ryan was trying to make a point.”

The policeman must have been a Republican because he smiled and said, “Sir, I’m going to let you go this time, but drive carefully, and stay away from Backwoods Jack!”  It’s a small world and I figured that he probably reads my daily and knows all about Backwoods.

I hate to be political, but my opinion, for whatever it’s worth, is that as much harm as Obama did to his chances of being re-elected, after his poor showing against Romney, last night Biden was an even bigger disaster for the Democrats.  The way he smiled and giggled and butted in was incredibly disrespectful – and rather juvenile-like behavior.  It reminded me of the way some of the fools on the Judge Judy Show behave – and she just loves to point out how ridiculous they are acting, and that they are doing it in front of millions of people on national TV.  I tell you, Biden was not at all “Presidential!”  This debate could actually give Romney a chance to win the election, and up until the debates I thought Obama had it in the bag.  I look forward to reading what the press has to say about the debate.

All four of us were of the same mind – it was no contest.  Ryan presented himself professionally and refused to stoop to Biden’s level.  He was very well prepared and cool and calm.

But this is all primetime showmanship and the reality is that neither party will be able to alter the outcome.  As Celente pointed out, the next four years will be a disaster, no matter who wins!

We leave for our home in Florida on Monday.  It’s 25 degrees warmer there now than it is here in Minneapolis.  Susan and I are ready to re-adjust our lifestyle for the next six months.  Andy and Betsy and the grandchildren are upset with us for leaving them for so long.  They really do get mad at us.  It’s wonderful to be missed and loved, but what the heck, I’m talking about spending the winter in Miami Beach.  Granted, we will have to give up the snow and cold for the warm weather and the ocean but we are tough and willing to make the sacrifice!

I may miss next Tuesday’s daily – I don’t know if I will have time to knock it out since we don’t arrive at our place until dinner time on Monday.  We’ll see – I’ll do my best.