Job Growth Slows

From Thomson Reuters – Re-Blogged From  Newsmax 

U.S. job growth slowed more than expected in August after two straight months of hefty gains, but the pace of increase should be more than sufficient for the Federal Reserve to announce a plan to start trimming the massive bond portfolio it built to support the economy.

Persistently sluggish wage growth could, however, make the U.S. central bank cautious about raising interest rates gain this year.

The Labor Department said on Friday nonfarm payrolls increased by 156,000 last month. The economy created 399,000 jobs in June and July.

“We see nothing here that prevents the Fed from initiating its balance-sheet reduction plan at the September meeting,” said John Ryding, chief economist at RDQ Economics in New York.  Continue reading

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The Fed Just Admitted It No Longer Has A Clue What’s Going On

By Graham Summers – Re-Blogged From http://www.Gold-Eagle.com

The Fed July FOMC minutes that were released last week were nothing short of extraordinary. However, to fully appreciate just what the Fed admitted, we first need a little background.

From November 2016 until June 2017, the Fed was pushing a hawkish agenda. The running mantra at this time was that the Fed would raise rates 3-4 times in 2017. As the year progressed, the Fed also began talking about shrinking its balance sheet.

The Fed’s justification for these moves was that inflation was rising and the economy was strong enough to tolerate these moves. As a result the Fed hiked rates twice, first in March and then again in June 2017.

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Continue To Beware The Job Numbers (Is it The Bureau Of Labor Statistics Or Bureau of Lying Statistics?)

By David Haggith – Re-Blogged From http://www.Silver-Phoenix500.com

Jobs and Inflation: Gradually and Then Suddenly

By Ben Hunt – Re-Blogged From Wolf Street

If you’ve been reading my notes immediately before and after the June Fed meeting (“Tell My Horse” and “Post-Fed Follow-up”), you know that I think we now have a sea change in what the Fed is focused on and what their default course of action is going to be. Rather than looking for reasons to ease up on monetary policy and be more accommodative, the Fed and the ECB (and even the BOJ in their own weird way) are now looking for reasons to tighten up on monetary policy and be more restrictive. As Jamie Dimon said the other day, the tide that’s been coming in for eight years is now starting to go out. Caveat emptor.

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Applebee’s Franchise Owner Forced To Cut 1,000 Jobs After New York’s Minimum Wage Hike

By Andrew Kerr – Re-Blogged From Western Journalism

The CEO of Apple-Metro Inc., a company that operates about 40 Applebee’s restaurants in the New York metropolitan area, said he’s been forced to cut at at least 1,000 servers in the past year as a result of New York’s recent minimum wage hike.

“We have 1,000 less servers this time this year than we did this time last year,” Zane Tankel told Fox Business’ Stuart Varney on Monday.

That amounts a two-thirds reduction of his total workforce, Tankel said. Continue reading

Minimum Wage Hurts More Than it Helps

By Jeremy Frankel – Re-Blogged From iPatriot

There has been much discussion and debate over whether to raise the minimum wage, and this debate is still going strong.

The positions range from minimum wage advocates who are part of the #FightFor15 movement, claiming that everyone should make enough money to live on; to opponents of a minimum wage, who believe that minimum wages are counterproductive to both employees and businesses, in the sense that anyone whose work isn’t worth the minimum wage wouldn’t be hired, or that the business cannot afford the minimum wage and therefore, no one has a wage at all, since the business cannot operate.

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The Forgotten Depression of 1920–1921

By Brian Maher – Re-Blogged From The Daily Reckoning

The year is 1921…

America is less than three years removed from triumph on the Western Front. It’s the dawn of the Roaring Twenties… and the Jazz Age.

Warren Gamaliel Harding is America’s czar.

And the nation is sunk in depression…

U.S. industrial production plunged 31% between 1920 and 1921. Stock prices plummeted 46%… and corporate profits a crushing 92%.

Unemployment ran as high as 19%. Storefronts everywhere gaped empty.

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