Today’s non-farm payroll “good news” is bound to be used to coerce investors away from buying gold coins and into buying risky equities.

April 01, 2011 – Today’s non-farm payroll “good news” is bound to be used to coerce investors away from buying gold coins and into buying risky equities. Granted, for a couple hundred thousand people that is great news, but it’s not so hot for the 13.5 million who can’t find a job. And it is totally insignificant compared to the big picture.

The Fed’s money printing spree has come back to bite them. For a short time we got a boost from exports, but at the expense of global trade. The percentage of trade relative to global GDP has experienced the sharpest decline since the 1930s, says Richard Barley in the Wall Street Journal. And we all know what was going on back then.

The wave of protectionism was entirely predictable. Yet the Fed continued printing money. Now “faced with a slow recovery and stubbornly high unemployment, politicians in advanced economies may find it harder to achieve international cooperation in the face of domestic pressures,” Barley says. Falling exports are all but certain to lead to politically expedient but economically destructive trade controls. And why would the Fed even consider QE3?

The rest of the world isn’t about to let our economy recover at their expense. Protectionist trade measures and capital controls are being implemented at an alarming rate. And new global fiscal guidelines will pull back liquidity, further limiting trade.

And the trade slowdown is but one of piece of the big picture puzzle.

Ireland’s in trouble again and Portugal is badly on the skids. The turmoil is growing daily in the Middle East and North Africa. China is bailing out of US sovereign debt and stockpiling gold. Japan is scrambling to stay afloat while rebuilding and trying to ward off a nuclear nightmare. The list of uncertainties seems endless and it keeps on growing longer.

So let’s give a round of applause for the 216,000 new jobs and then get back to the real world. There’s a lot of serious business to tend to, and it begins with investing in gold coins..

Kevin Johnson

Senior Staff Writer – GoldCoin.net