Obama to propose $300 billion to jump-start jobs
CIGA Eric

QE(n) or infinite liquidity includes both monetary and fiscal injections.

Headline: Obama to propose $300 billion to jump-start jobs

WASHINGTON (AP) — The economy weak and the public seething, President Barack Obama is expected to propose $300 billion in tax cuts and federal spending Thursday night to get Americans working again. Republicans offered Tuesday to compromise with him on jobs — but also assailed his plans in advance of his prime-time speech.

In effect, Obama will be hitting cleanup on a shortened holiday week, with Republican White House contender Mitt Romney releasing his jobs proposals on Tuesday and front-running Texas Gov. Rick Perry hoping to join his presidential rivals Wednesday evening on a nationally televised debate stage for the first time.

Lawmakers began returning to the Capitol to tackle legislation on jobs and federal deficits in an unforgiving political season spiced by the 2012 presidential campaign.

Adding to the mix: A bipartisan congressional committee is slated to hold its first public meeting on Thursday as it embarks on a quest for deficit cuts of $1.2 trillion or more over a decade. If there is no agreement, automatic spending cuts will take effect, a prospect that lawmakers in both parties have said they would like to avoid.

Source: news.yahoo.com ^[1]

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Gold Leading The Gold Shares
CIGA Eric

Any investor pessimistic about the gold stocks is not listening to the message of the market. What’s that message? Gold leads and the gold stocks follow. The most recent yellow box (green lined) illustrates this leadership. When gold stocks follow in the coming weeks/months will anyone but the talking heads be surprised? Let’s hope not.

Gold and Gold Stocks Side by Side Comparison:
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Headline: Mining stocks – On the runway, ready for take-off

September 5, 2011 – Gold has been rising faster than the price of mining stocks. Here are some statistics to prove this point.

In the twelve months ending August 31st, gold has risen 46.5%, but the XAU Index of precious metal mining stocks climbed only 17.7%. By itself, that is a good rate of return for mining stocks, but not what one would expect given gold’s appreciation over this period.

The current year-to-date results are even more telling. Gold has risen 28.7% this year, compared to a -3.8% loss in the XAU Index.

In the last two months, gold has risen 21.7%, while the XAU Index climbed 8.4%. You might notice from these results that the XAU Index is finally starting to show some relative strength compared to its year-to-date results, which is one sign that things may be turning in favor of the mining stocks. Here is another.

The following chart simply measures the difference between the annual rate of change of gold and the XAU Index at each month end. So for example, using the 12-month results ending August 31st reported above, the last point plotted on this chart is 28.8%, which reflects gold’s outperformance over this period.

Source: fgmr.com ^[4]

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