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Although there are still analysts hand wringing over what will surely be the Fed's decision to stand pat next week on the maintaining of QE3, it is becoming quite clear that the American economy is slowing a bit, although not dangerously. Of course, for many people, the recession that began in 2008 never stopped at all.

One by one, the unbelievers are coming around to the idea that the Fed is not going to taper come next week. 

The Department of Labor reported earlier that the number of individuals filing for initial jobless benefits declined by 12,000 to a seasonally adjusted 350,000. Analysts were anticipating U.S. jobless claims would fall by 22,000 to the 340,000 level last week.

Pessimism seems to have infected all markets today. No wonder... it's becoming clear to investors that the fiscal mess in Washington is actually messy and not just an annoying detour. 

Gold - down. Silver - down. Platinum and palladium - down. Base metals down.

Now that the euphoria, controlled as it was for the Democrats, is over and the Republicans still have a splitting headache from being hung over from their "lost weekend" that lasted for almost three weeks, the sober business of figuring out how to realistically cut budgets, deficits and debt is upon Washington once more.

The jobs report issued Tuesday stated that the number of federal workers now is as low as the number was in 1966. 

A new week has begun - fortunately or unfortunately - for the U.S. government. Gold was treading water today, while silver picked up a tidy rise of 1.3%. 

And never the twain shall meet...

         - Rudyard Kipling

 

Up, down, trying to get the feeling again...

         - Barry Manilow

 

Today gold acted the way gold is supposed to act. As the end of this ridiculous Washington drama comes closer, when there was a deal (boding certainty) gold fell and when the extremist wing of the House came forward yet again with some new, unacceptable tweaks, gold rose (uncertainty). 

The risk of a wrong decision is preferable to the terror of indecision.

         - "Moses" Maimonides, 12th century Jewish rabbi/philosopher  

 

Not to decide is to decide.

         - Harvey Cox, liberal 20th century theologian