Gold and econ: Here we go again.

Europe.

Do you recall reports a month ago that Europe's economic troubles were solved and that the EU was on the mend? The reports were not true. That talk was heard after reports that the EU's GDP was up 0.3% in QII. Probably another lie. The July figure was DOWN 1.5%. There was a significant drop in Germany, but Italy and France as well.

How about the recovery of the automobile industry of Europe? The recovery did not happen. The actual figures show that car manufacturing dropped 6.6% this year.

Greece! Remember? Unemployment in Greece is 27.9% and in the group below 25 years it is 58%.

The US.

We have a similar situation in the US. An anemic rise in the GDP of 1.7% was made into a 2.5% because of the drop in imports (due to less oil needed because of the increased oil production due to new technologies). Here, too, we get a report of a robust automotive industry. No doubt, that report will be revised.

Then we have a drop in initial unemployment applications. We know how this was achieved: two States did not report!

Talk of the FED phasing out bond buying is just that: talk. The US economy would be boosted if ObamaCare was defunded, but a lot of Republicans have no stomach for a fight.

GOLD.

That takes us back to gold. Central planners are pulling out all stops trying to reduce gold price once again. And it all goes to China How far can they drop gold prices this time? Hard to tell.  Gold is in backwardation again and  GLD is telling their customers that they can't have their gold. JP Morgan is "forecasting" once again that gold will go below $1,000/oz. So, they expect gold mines to operate at a loss or shut down. These are dangerous folks.