In early morning trading on Oct. 1, gold and silver both shot up to new 2011 highs on news out of Spain of a potential bailout, and additionally, through the desire for even greater Fed action by Chicago Fed president Charles Evans.
Gold and Silver and surging this morning as the Fed's Charles Evans talks on CNBC of the need for more accomodative policy by the Fed. His 'infiniter' easing seems to have sparked this move as he clarifies the seeming psychopathy of the Federal Reserve's actions. His message clearly is that the amount doesn't matter (nor the unintended consequences), the printing and flooding of money into an already stuffed banking system will continue until morale improves. - Zerohedge
To add more fuel to the fire, Europe came out with new unemployment numbers for the Eurozone, and the jobless have now reached record levels.
The eurozone unemployment figures came in at 11.4% in August. This data was compiled for the 17 nations in the single currency and equals the data of June & July after their figures were revised upwards.
This is the highest since they began recording the eurozone jobless claims in 1995. In a region with such diverse economies Germany remains at 5.5%, while debt beleaguered Spain is at 25.1%.
This clearly shows that the economic crisis in Europe is far from over and certainly cast doubts that the ECB bond purchase plan can resurrect the economy. The ECB is targeting the economy to contract again at -0.40% down from an earlier forecast of -0.10%.
Factory output has shrunk for 14 consecutive months and businesses must continue to trim the fat of their organizations during these recessionary times.
The report showed that 18.2 million people were jobless in September; this is an increase of 34,000 people versus the previous month. - Goldcore via Zerohedge
The Western economies are cracking, with recessionary numbers in durable good sales, and GDP numbers. Unfortunately, the FED's recent action of open ended QE is not doing much to stave off collapse in Europe, and inflation in the US is already showing signs of exploding with gas prices over $4 a gallon in many state regions.