May Payrolls… Ruh Roh, +75K

You can get the full BLS report by clicking the graphic…

Here is the monthly breakdown. As usual for the Good Ship Lollypop’s consumerist economy (hey wait a minute, wasn’t the trade war supposed to help the miner, the manufacturer and the other down trodden areas?) sails on relative to the productive economy. Professional and Business services, Education and Health services, Leisure and Hospitality services.

So a question I have is how will a services economy hold up in a global trade war with more productive economies? As I’ve been noting in NFTRH, I for one am not able to quantify the trade war’s effects, but incoming information will do that work for us over time.

But the above does represent a nice picture of economic deceleration and now that we eliminated the inflationist gold bugs from the investor base with the recent tanking of inflation expectations it is absolutely no wonder that gold has been rallying. There’s this, after all.

And not only is the Fed entering a rate cut cycle (due to said tanking of inflation expectations and bond yields), it is also dusting off the Bernanke playbook.

Fed uses Chicago conference to signal it will use quantitative easing aggressively to fight next recession

The full inflationary power of the Fed is on full display now because a disinflationary environment has taken hold and that is the thing they inflate against. Jobs @ 75k only bolsters the case.

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