Payrolls came out this morning down another 95,000 jobs for September 2010, way worse than the expectations. U6 unemployment – people who are working part-time, have given up or are otherwise underemployed – is at 17.1%, the highest level since October 2009.
So you’d expect a sell-off in risk assets and commodities, right? Well, you’d be way wrong.
On the heels of that report, gold has reversed itself and turned higher, stocks have erased their losses in the pre-market and are now sitting flat. The Inflationistas will point to this utter failure of a jobs report as proof positive that QE 2 and the further debasement of the dollar is around the corner.
Look! In the corner of the room! They have shed their clothing in a pile as the music begins to play!
Keychains have been dropped into the fishbowl! Strobe lights flicker as the punch bowl is spiked, not with vodka but with absinthe!
Strains of singing, laughing and chanting can be heard, as can a rhythmic drum cadence calling all party people to the Devaluation Dance Floor!
The booze is flowing and our parents ain’t coming home ’til six in the morning!
The Debt Jubilee is afoot, the Roman Orgy of Stimulation beckons!
Risk assets, precious metals and commodities of all types rejoice! That which you are denominated in has found a trap door to ever-lower depths.