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The way conflicting reports about the economy are flooding in might have people wondering about their investments in gold coins.

January 06, 2011 – The way conflicting reports about the economy are flooding in might have people wondering about their investments in gold coins. But has anything really changed?

Take unemployment, for example. Even if jobs are created as a result of the stimulus policy, that has nothing to do with the real issue. The prolonged recession has created untold numbers of chronically unemployed workers that will be considered unemployable in anything but a booming economy, and by the time that happens for most it will be too late. No amount of stimulus can fix the problem, which is know as structural unemployment.

The government may not be fixing the problem, but they can make it disappear in a fog of statistics. Workers who run out of benefits fall off the radar. Those who have simply given up in frustration or have taken multiple menial jobs just to get by are a whisker away from the poverty cycle and they are already swelling the ranks of the homeless. The problem is growing rapidly while skewing the numbers to make it appear things are getting better.

To the government statistical gimmicks are old hat. In the 1980s Greenspan and Company started rigging the CPI to obscure the true rate of inflation. The government continues wringing ever lower numbers out of the data, fudging them with “hedonic” adjustments on the premise that improvements to quality effectively reduces price. While in isolated cases of consumer products, such as televisions and PCs, that may be arguable, but it is absurd as it is broadly applied today. And when the money supply becomes overly obese? Just stop calculating the M3 supply, removing such things as long-term CDs and institutional money market mutual funds.

Ultimately gimmicks can’t change real economic conditions, however, and gold coins will continue proving to be a sound investment.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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