Weak Job Growth + Housing Depression = QE 3


Extrait de: Weak Job Growth + Housing Depression = QE 3, Black Swan Insights, 6 Sept 2011

Stop denying it, just consider the facts--QE 3 is an inevitability. 

Look at these troubling statistics:

  • Case-Shiller Home Price Index finally confirms double-dip in housing 
  • ISM Manufacturing at lowest level since Sept 2009
  • ADP Payroll Report Comes in at 38K vs. expectations of 175K--Foreshadows weak Non-Farm Payroll tomorrow
  • US economy has to create 100,000 jobs per month to keep the unemployment rate steady
  • To meaningfully lower the unemployment rate requires 200,000 new jobs per month (CBO report)
  • Chicago PMI (for May) Collapses--Drops to 56.6 from 67.6--largest decline since Oct 2008 (worldwide financial collapse)
  • US 1st Quarter GDP came in at 1.8%, way below expectations of 3%
  • Greece, Ireland, Portugal, and Spain on verge of collapse--any debt restructuring will implode the German and French banking systems, ushering in Lehman 2.0.
  • China PMI (proxy for global growth) fell to 52.1--a 10 month low
  • Most importantly for the Fed--the stock market is not rising at the Fed's mandated 0.1-0.2% rate per day. According the Fed this must be a sign of deflation, which requires them to trash the dollar and print more money.

No wonder gold is up today when everything else is down significantly.