US equities running into a wall?, page-76

Labor costs in the US rise the most in 5.5 years! Absolute nightmare for the Fed. There has been talking about the US moving close to full employment as the unemployed percentage drops. However participation is at 30 year lows. I.e there are a lot of people who don't need or want to work. To attract these sort of workers back to the work force, & one would also expect them to experienced & generally highly skilled, they will require even higher wages. Cost of labor is one of the biggest drivers of inflation.

So perhaps deflation in Europe & inflation in the US, win, win for gold.