Saturday, June 6, 2020

Here’s What Happened in the Service Sector in Q1

by Wolf Richter, Wolf Street:

Finance & Insurance, Which Dominates the US Economy, Has Blistering Q1. Huge Services Sector Not Yet Hit by Slowdown in Goods.

Revenues in private-sector services in the US rose 5.6% in the first quarter of 2019, compared to a year ago, to $3.94 trillion, according to the Commerce Department’s Advance Quarterly Selected Services Report released this morning. Services dominate the US economy: These “selected services” amount to the equivalent of about 74% of GDP. And all major categories booked solid to hot growth in the quarter.

A U.S. Economic Slowdown Has Been Confirmed, And We Are Being Warned That “More Damage” Is Ahead

by Michael Snyder, The Economic Collapse Blog:

We just witnessed the worst month for U.S. manufacturers in more than 10 years, and nobody seems optimistic that things are going to get much better any time soon.  In fact, one expert is warning that “more damage” is coming if the trade war is not resolved, and unfortunately it does not appear that a resolution will be possible for the foreseeable future.  As I have been detailing for months, the entire global economy has been steadily slowing down, but some shocking new numbers that we just got indicate that our economic problems are really starting to accelerate.  So hold on to your hats, because it looks like things are about to get really crazy.  According to CNBC, September was the worst month for U.S. factories in more than a decade

6 Of The Last 8 U.S. Recessions Were Preceded By Oil Price Spikes – Damage To Saudi Oil Industry Could Take “Months” To Repair

by Michael Snyder, The Economic Collapse Blog:

When the price of oil rises dramatically, that tends to be really bad for the U.S. economy.  Because we are so spread out and goods are transported over such vast distances, our economy is particularly vulnerable to oil price shocks, and that is one reason why the events that we just witnessed in the Middle East are so alarming.  According to an article that was published by the Federal Reserve Bank of San Francisco in 2007, five of the last seven U.S. recessions that had occurred up to that time “were preceded by considerable increases in oil prices”.  Since that article was published in 2007, the recession that began in 2008 hadn’t happened yet, and of course that recession was immediately preceded by the largest oil price spike in history.

THE FEDERAL RESERVE JUST ADMITTED TO FUELING THE ASSET BUBBLE!

by Mac Slavo, SHTF Plan:

The central bank is finally admitting what most of us have known for some time now.  The Fed is fueling the asset bubble and pumping a lot of money into a “booming” economy.  As Bloomberg’s Richard Breslow details in today’s note, the worst kept secret in the financial world is now not only accepted orthodoxy but finally being discussed openly by, at least some, authorities.

The Last Gasp, by Robert Gore

by Robert Gore, Straight Line Logic:

No one is more dangerous than the suicidal.

When you can’t love, you hate. When you can’t build, you destroy. When you’re ignored, you scream. When you can’t tell the truth, you lie. When you can’t reason, you panic. When no one will follow you out of admiration or respect, you compel. When you can’t live, you kill.

This is it, the last gasp of the psychopaths who express their contempt and hatred for humanity by trying to rule it. Compulsion, not voluntary and natural cooperation. Power, pull, and politics, not incentives, competition, honest production, and value-for-value trade. From each according to his virtue to each according to his depravity.

Watch The Virus Checks Become Permanent Income

by John Rubino, Dollar Collapse:

Two things about the coronavirus relief checks the government will soon start sending out: First, it looks like they’ll take a while to arrive:

Show Me The Relief Money – No Promises On When Coronavirus Checks Are Coming

About 90% of households — approximately 165 million — will benefit from direct payments, according to the Tax Policy Center.

Without the Outliers, Inflation Is Running Hot. Fed Has Started Mentioning these Measures in the Minutes

by Wolf Richter, Wolf Street:

Cleveland Fed’s Underlying Inflation Measure Hits 3.0%, Hottest in the Data.

“Soft inflation?” The inflation measure by the Cleveland Fed — the “Median CPI,” which is based on Consumer Price Index data but removes the outliers in the data to reveal underlying inflation trends — jumped 3.0% for September, the highest in the data series going back to the Financial Crisis, when this measure was launched.

By comparison, “core CPI,” which removes food and energy prices, hit 2.4% in August and September, the highest since September 2008: