U.S. non farm productivity fell 1.9 percent in Q1 on the heels of a 2.1 drop in Q4 of 2014. The new report shows the first consecutive quarterly drop going back to 1993. Manufacturing productivity saw a 1.1 percent drop in Q1 as businesses stand on the sidelines waiting for positive economic news before investing.
The ADP employment report confirms that the U.S. economy remains in an era of stagflation as ADP employment falls to 15 month lows and the manufacturing sector alone lost 10,000 jobs in April after losing 3000 in March. If the U.S. economy has been growing since 2008 as Washington would have us to believe, then Greek citizens should have nothing to worry about seeing their own unemployment rate at 25 percent.
If Athens wants to assure it’s citizens that everything is under control, they are headed in the wrong direction today. Greece has announced it’s considering a surcharge on all cash withdrawals and financial transactions. Ministers are hopeful the plan will raise as much as 180 million euro that it plans to use in making payments to EU creditors.
As a result, Greece may find itself in full scale riots as citizens have removed more than 28 billion euro from banks over the past several months fearing the worst. Cash revenue held in Greek financial institutions is currently at a 10 year low.
A senior finance minister is quoted as saying, “the surcharge is “just one” of a grab bag of measures we are considering if things get tough. Obviously the official can’t be referring to Greek debt as it really can’t get any worse. Greece is already in the position of being insolvent. Unfortunately or fortunately for Greek citizens, the government is notifying them ahead of time that full confiscation of their banking assets is now on the front burner.
Greek officials have blamed Germany and EU creditors for their dreadful economic position and now it appears the blame game may shift to Greek citizens themselves. Maybe something in the near future along the line of, “if you really loved your country and government we wouldn’t have to steal, oops, we mean ask for your help. You would offer you funds freely.” After all isn’t it the civic duty of a citizenry to offer itself as the ultimate sacrifice upon the alter of government bureaucracy?
Greece whether we admit it or not is a precursor to every nation around the world including the U.S. that thinks it can exist on perpetual debt. U.S. debt is over 18 trillion dollars and like Greece we have been mismanaged to the point of bankruptcy. Can Washington pay its monthly debt without borrowing more money to do so? The answer is no.
These business principles remain the same regardless of name and entity. The lender doesn’t care if you are Walmart, McDonalds or Washington. One’s ability to borrow money is based solely on his or her ability to repay that debt.
China on the other hand continues moving in the position of becoming the worlds leading gold trading hub. China is conducting trials to launch a yuan backed gold pricing benchmark in hopes of dethroning the embattled “old” gold fix as the century old institution is wrought with fraudulent activity and lawsuits.
China’s Shanghai Gold Exchange opened last year and is the fastest growing gold trading hub in the world. The exchange has been luring investors away from COMEX where precious metals prices have been manipulated and suppressed heavily since April 2011.
China is the worlds largest producer and buyer of gold and it feels its market weight should entitle it to be a price setter for gold bullion. It’s only a matter of time before China dethrones the dollar and current gold fixers.
Gold Goliath is not your typical gold dealer.