Fewer Hires Means Fewer Fires – Ep. 83

* S&P responds to bad news with new high; DJ just barely off record high

* Dollar continues to fall

* The currency traders still have not accepted the significance of bad news

* Lower dollar will be the trend

* Friday got a trifecta of bad economic news

* Thursday Weekly Jobless Claims number declined to 264,000 - lowest weekly jobless claims in 42 years

* Why are there so few job losses? Because so few people are getting hired

* Government numbers come from the Birth/Death Model, which assumes a certain number of businesses created each month

* What if these businesses are not actually created?

* This would explain lower number of unemployment claims

* There's no way we can say that the economy is the best it has been in 42 years

* Empire State Manufacturing Index, which was weak last month, expected to be +5, came in at 3.09; below estimate for the 4th month in a row

* Both Business Expectations and Hiring declined from April to May

* Industrial Production Capacity Utilization was expected to be flat; down again .3%

* This is not the 5th consecutive monthly decline in Industrial Production; longest losing streak since 2009

* Consumer Sentiment Number 95.9 in April - expected to hold steady - came in at 88.6; biggest drop since December 2012, and biggest miss ever

* If the job market is so strong, why is confidence plunging?

* The percentage of employees who fear losing their jobs is at highest level since March of 2009

* The bubble is rapidly deflating

* Unofficially, I think we have been in recession for the entire "recovery"

* The government is not accurately measuring inflation in the GDP deflator

* The Fed has not forecast a single recession

* Recessions always happen contrary to forecasts

* If we are in a recession there can not be a rate hike

* At some point they are going to have to acknowledge that the numbers are not accurate

* The unemployment rate is going to have to tick up at soe point this year

* At some point after the end of the quarter it will become obvious that there is no rate hike coming

* The only question is, What is the Fed going to do?

* The Fed has not managed to shrink the balance sheet, and further QE will take the deficit to a whole new level

* This will put massive downward pressure on the dollar

* Oil prices will spike

* Cheap gas prices did not create a bounce in Q1

* Consumer Confidence will plunge

* Reality is finally going to set in on the failure of the Fed monetary policy


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