About this episode
* Once again, a week of worse than expected economic data punctuated by another better than expected non-farm payroll report from the government * ADP private sector payroll report was slightly below estimates * 5,000 manufacturing jobs lost - 3rd consecutive monthly decline * Unemployment rate dropped * Labor participation rate up to 62.9 - .2% above lowest point * Large sector of labor force still comprised of older workers * Teens, twenties and thirties are at all-time lows * Older Americans want part-time jobs, so increase of part-time jobs contribute to increase in all jobs * Given the strong government jobs number, the media is discounting all the weak data, including GDP, productivity, consumer spending and industrial production * The jobs we're creating do not reflect economic strength * The weekly unemployment numbers are hovering at 42-year lows * Does anyone believe that this is the strongest economy in 42 years? * The hiring numbers are suspect to begin with because of the government's assumptions * The Trade Deficit dropped not because our exports surged, but because out imports plunged * Our economy is too weak to support a greater number of imports * A closer look at the data behind the government jobs number actually supports the rest of the weak economic data * Personal Income and Spending on the month missed estimates * May Manufacturing PMI dropped slightly * April Factory Orders fell by more than expected * Year over year, orders are down 6.4% * 6th consecutive month that factory orders have been down year over year * This has only happened in America during a recession * Mortgage applications fell sharply on the week - 7.6% decline, led by a 12% decline in re-fi's * May Services PMI fell to 56.2 - lowest level since January * ISM Non-Manufacturing Index dropped to 55.7 - the lowest level of the year * The revision to Q1 Productivity - 3.1% decline * We also had a decline in 2014 Q4 * Corporate profits plunged 5.9% in Q1 * Unit Labor Costs surged by 6.7% - this does not represent wages * All this data predicts future layoffs * The Fed knows this, so they are reluctant to raise rates * The Bloomberg Weekly Consumer Comfort Index fell to 42.5 the 8th consecutive decline - the first time in its 30 - year history * The Dow continued to decline on the jobs report * NASDAQ still hanging in * Margin debt is at a record high * The dollar was stronger on the week * The euro finished positive * By next year European inflation will force the Bundesbank to retreat from QE * Gold was down on the week, as euro strength signals QE less likely in Europe * Expectations of rising interest rates have been suppressing gold, but when reality rears its ugly head, the sellers will be gone and the buyers will be out in full force Our Sponsors: * Check out FRE and use my code LISTEN20 for a great deal: https://frepouch.com * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy