One Disconnected Fed: Low Gas Prices Are BAD For the Economy!

From the Fed's meeting minutes just released today:

"persistently low energy prices... could damp the overall expansion of economic activity for a period, especially if the slowing took place after most of the positive effects of lower energy prices on growth in household spending had occurred."

Need I say more?

Crude oil didn't move much, but the news that this might "dampen" the economy cause stocks to decline moderately, and treasuries screamed higher as interest rates collapsed! This sounds like an excuse for the Fed to continue to suppress interest rates! If the economy is really doing so well, then why do they see low interest rates as necessary in perpetuity? A sound economy wouldn't need life support!

Macro Data Continues Downward Trend

Even as stocks remain near record highs, the following Economic headlines are out this morning:

• US Industrial Production Misses (Again) As Manufacturing & Construction Growth Disappoint
• Housing Starts, Permits, Miss Expectations On Drop In Single-Family Housing
• US Producer Prices Tumble Most Since 2009 (And It Wasn't All Energy-Related)

But the White House, Wall St bankers, and their complicit Propaganda Press want us to believe that "all is well". They LIE! The Macroeconomic data so far for 2015 is the WORST since 2009!

Stocks are modestly lower this morning -- Dow down just 34 points as I type this! Stocks hit new highs the last couple of days! Wall St is so drunk on Fed easy money that they've become delusional! 

Today's Headlines for 2/12/2015

 Earnings and sales are collapsing

Meanwhile, stocks are once again approaching all-time record highs:

"...unless you are a fund manager who is paid to be in the markets no matter what, here’s an interesting course of action to consider right now: do nothing!" Erico Matias Tavares

Troubling Headlines

The Lay-Offs Begin

US Macro Data Weakens, Even As Stocks Rally!

THE TRUTH! While the Prevaricator President and Fed Chair Janet Yellen tell us that the US economy is strengthening, the economic macro data tells us the opposite is true. This shows the weakening macroeconomic data (shown in red), overlaid with the S&P 500 stock index (green).
Meanwhile, the percentage of American adults with jobs is at 38-year LOWS!

Wall St Rejoices at Higher Crude, Gas Prices!

The Dow is up over 350 points in two days, due to the rise of crude oil prices above $51/barrel, up more than $7/barrel since last Thursday. In their short-sighted way, they view high gas prices to consumers as good because it helps to keep high-paying jobs alive in the energy sector. But did they miss the impact on the rest of the economy?

Price of Crude Oil Explodes Above $50

The price of crude oil has exploded higher in the past two trading sessions, and Wall St is viewing this as good news!

Stocks Drop, Then Rally Following Bad News

 So naturally, with a QE-addicted market now, stocks RISE following such news.

But perhaps investors didn't hear also the news that corporate earnings are also collapsing. But who cares? After all, we have printed prosperity now!

Stocks Plunge Sharply

There was a rally, but in the end, stocks closely sharply lower -- Dow down 291 points.

Stocks Leap on ECB Plan to Monetize More Debt

Stocks rise 275 points based on nothing but the announcement of central bankers to print even MORE money to monetize European government debt!
This is the new entitlement for the super rich on Wall St. Free money for Wall St!

After all, if you can create money out of thin air to monetize debt and create asset bubbles ad infinitum, then why not? Who cares if all those bubbles eventually crash?

Who needs an economy? Who needs jobs? Who even needs reality? We have PRINTED prosperity now!

 

What Are the Bond/Debt/Credit Markets Telling Us?

This chart shows the US 10-year treasury futures for the past 15 months. The steady rise is one that depicts worry -- lots of it! Savvy investors buy bonds as a place of refuge when they're worried. The huge spike at the far right suggests that big money investors are gravely concerned about the safety of their money. That's why they buy what they view as a "safe bet" investment.

The message here? Be afraid! Be very, very afraid!

Stocks Crash Following Jobs Report

Stocks Sink!

So Which Economy Is It?

It's the Obamalaise Economy! Perpetual malaise! Even while the Propaganda Press tells us it's all great!

More news you WON'T hear in the Propaganda Press!

This morning, the US Bureau of Labor Statistics told us that job growth last month was the most in almost 3 years. Not so fast! Look at the jobs created! Low-wage, temporary, retail! Ie., SUBSISTENCE jobs, not breadwinner jobs!
We should always remember that payrolls are one of the MOST lagging of indicators. Often payrolls rise at the start of a recession. Payrolls typically only crash months after a recession begins.

"But, but, but payrolls data was awesome!! /He was saying that in satire./ US Factory Orders tumbled 0.7% in October (missing 0.0% expectations) for the 3rd month in a row (for the first time since June 2012). Rather notably, the only other time we had 3 straight months of factory orders declines was in the recession..." Tyler Durden @ Zero Hedge.

Gold Soars As US Government Prints Money

from Sputnik Int'l:
“We have seen a lot of the physical gold go from the West to the East and I’m sure that the central banks do not have anywhere near the gold they should have,” Egon von Greyerz said, explaining that China has been one of the largest buyers of gold recently, and asked for a physical delivery.
“It will be significantly high, definitely,” he said commenting on the price of gold in the future. “And the wise countries in the world, which is Russia, China, India – they understand this and they accumulate gold and buy more. Russia is continuously buying more, they understand what is happening.”

Gold has soared $67/oz today off it's lows! Wow! 

Wheat Soars

from Reuters:

"...wheat hovered near three-months highs, supported by concerns over
potential supply disruptions from Russia."

from Agrimoney:

"Wheat futures soared to $6 a bushel for the first time since June, boosted by concerns of a squeeze on Russian exports, and stealing
thunder from a Rabobank recommendation of the grain as a bullish bet." 

Tumbling Treasuries

This will NOT help the weak housing market!

Wall St Sees Cheap Labor

...and Obama sees 5 million new marxists -- er, I mean Democrats! The pink line is yesterday's close!

Is This a Bubble?

The last two stock market crashes since the year 2000 were bubbles. Yet today, we're told that this isn't a bubble. Despite that during both previous stock market rallies, the US economy was much stronger than it is today, we're being told that this is no bubble today! Those who tell us this are part of the cheerleader group, which itself is a sign of a bubble!