US recovery weakest on recordJan 25, 2013·The GoldMoney News Desk
New data out from the St Louis Federal Reserve confirms that the current post-Q2 2009 “recovery” in the US economy is the weakest on record.
ZeroHedge has all the details and more charts. Interestingly, while gains in real GDP remain sluggish, US equities have been outperforming relative to past recovery cycles. Which tends to confirm that government policies have been helpful for the wealthy and extremely unsatisfactory for the rest of the population.
Across the Atlantic, figures released by the United Kingdom’s Office of National Statistics have confirmed that GDP contracted in the final quarter of last year by 0.3% – more than consensus estimates expected. So we’re on course for an unprecedented triple-dip recession and a loss of the country’s triple-A credit rating, along with a significant collapse in the pound’s value relative to gold.
In other European news, Greek and Spanish youth unemployment rates continue to shoot higher: at above 55% for both countries and more than double the eurozone average, with some analysts concerned that the bottom has not been reached yet. Eurozone stock markets have rallied since last summer – as has the euro – but the hard work required to remedy the continent’s structural economic flaws is only just starting.
Precious metals had a tough day yesterday, with gold again succumbing to selling pressure after looking like it was going to break though resistance at $1,700. Silver and platinum followed gold lower, but palladium continues to show strength – and looks like it wants to breakout to new 12-month highs above $725/oz. For those interested in learning more about platinum and palladium, Sprott Asset Management have just released a new infographic on the subject.