Hey Bartender! March Jobs Added 236k, Avg Wage Growth Falls To 4.2% (Too Bad Inflation Is 6%), Low Paying Leisure & Hospitality Leading Jobs Added At 72k

Hey Bartender!

Joe Biden loves to brag about “his” great economic successes, particulary in jobs added. But the jobs added in March were not in higher-paying factory jobs, but Biden’s building from the bottom-up approach is mostly low-paying leisure and hospitality jobs.

And here is the rub on wages. Average hourly earnings growth fell to 4.2% YoY, too bad inflation is 6% and expected to rise with the summer.

236k jobs added in March, down from a revised 326k jobs added in February. The unemployment rate fell to 3.5% and labor force participation rose slightly to 62.6%.

Construction jobs added were down -9k. Retail jobs were down -14.6k jobs. But leisure and hospitality jobs added were +72k.

Bear in mind that many of the jobs added were simply jobs added back after the catestrophic Covid government shutdowns.

The good news? Labor force participation is slowly recovering from the damage caused by the government shutdown of the economy.

The result? The 2-year Treasury yield is up 14.3 basis points.

Here is Lloyd from the film “The Shining.” A big fan of Biden’s bartender economic recovery.

The Death Of King Dollar: How Biden, The Fed And Congress Are Killing The US Dollar (Down -11% After 9/27/22)

Biden, The Federal Reserve and insane Federal spending are killing King Dollar. Countries that used to use the US Dollar as reserve currency are dumping the dollar like a month old burrito.

What countries are dumping the dollar?

A lengthy list of countries are moving away from using the US dollar, which has long been the reserve currency of the world. The following countries are in the process of reducing their dependency on the dollar.

Russia
China
Iran
Brazil
Argentina
Saudi Arabia
UAE
India

The result?

Biden has vacationed 40% of the days he has been President. In his defense, he has probably needed that time to hunt down the classified documents has left strewn around his his home, vacation home, the Penn-Biden Center and Chinatown in DC.

Challenger Job Cuts UP 319% YoY, Highest Ever In Non-Recession OR Are We Actually In A Recession? (Techology And Financial Sectors Lead Job Losses)

The Challenger, Gray and Christmas job cuts report is out for March and it revealed a year-over-year (YoY) increase in US job cuts of 319%. That is the largest increase in job cuts for a non-recession month. In other words, this feels like a recession.

Where were the job cuts in March? Technology got blasted followed by financial.

As The Fed hikes rates, US GDP has declined in growth to 1.469%, despite trillions of dollars of Federal spending by Biden and Congress. What has all the money gone??

Can we get someone to get Treasury Secretary Janet Yellen to lose HER job? Silly me, of course not!

Slowing? ADP Jobs Added In March Cools To 145k As Fed Withdraws Punch Bowl (Fed Rate Reversal On Radar)

We are truly addicted to gov! Or at least cheap money from The Federal Reserve.

March’s ADP job report shows the US economy only added 145k jobs as The Fed removes its punch bowl. For the moment.

Its simply irresistable for the government to turn back on the printing press.

And then we have domestic banks reporting stronger demand for C&I Loans and real estate loan (for construction and development purposes) slumping to financial crisis lows.

The US economy is slowing.

Addicted To Gov? US Job Openings Slow As Fed Withdraws Monetary Punch Bowl (But Fed Will Start Cutting Rates Again Shortly)

Talk about an economy that seems dependent on Federal government money printing. The US economy seems hopelessly addicted to gov money printing.

Today, US job openings fell in February to 9,931k. While that is still a large number, look at the chart of job openings and M2 Money printing. There is a one year lag between maximum printing and job openings. But M2 Money growth has collapsed.

Doctor, doctor (Yellen), no pill from The Fed is going to cure the problem of reliance on money printing.

The Fed has printed like a deranged predator since 2008, yet housing inventory for sale keeps plunging.

Money printing is simply irresistable to The Fed. Hence, The Fed will start cutting rates … again.

Recesion Alert? ISM Manufacturing New Orders Sinks To 44.3 In March (Lower Than During Trump) As Count Powellula Sucks Blood From Economy

Not only did the ISM Manfacturimng Report on New Business Order fall to 44.3, but price PAID also fell as The Fed hikes rates (yellow line) and slowing M2 Money growth (green line).

Office REITs are really hurting as Count Powellula sucks the blood (liquidity) from the market.

Count Powellula. “I vant to suck the blood from your economy.”

Faith? Foreign Central Banks Bailing On US Treasuries (Japan And China Among Others Are Fleeing The US Titanic)

Apparently, foreign Central Banks have lost faith in Biden and The Federal Reserve. Foreign Central Banks are selling US Treasuries.

Other than The Fed, Japan and China are the two largest holders of US Treasuries. And they are bailing.

Wake Biden up before all the Central Banks go-go.

Shock OPEC+ Oil Production Cut Puts $100 a Barrel on Horizon, Crude Rises To >$80 On Oil Cartel Snub (Strategic Petroleum Reserve DOWN -42% Under Biden, Diesel Prices UP 64%)

While Resident Biden is on good terms with the Mexican drug and sex trafficing cartels that control our southern border, the oil cartel just stuck their fingers in Biden’s eyes by cutting oil productions. Riyadh, Saudi Arabia was irritated last week that the Biden administration publicly ruled out new crude purchases to replenish SPR

Cartel removes more than 1 million barrels a day from market
Analysts say the decline in oil inventories will accelerate

Today, crude oil futures are up 6.62% to over $80 per barrel.

Sunday’s surprise OPEC+ production cuts have redefined the outlook for crude prices, bringing $100 a barrel back into the frame.

Prior to the announcement, the cartel’s own numbers suggested the group would need to pump more oil, not less, in the second half. With the International Energy Agency expecting a demand surge later this year, there’s now renewed risk of a fresh inflationary impetus for the global economy.

Under Biden’s Reign of Error, diesel prices are up 64% while the Strategic Petroleum Reserves (SPR) have been drained by -42%.

St. Benedict, help protect us from Biden and The Federal Reserve.

Sparkless! M2 Money Growth Crashes To -3.13% YoY As Fed Slams On Monetary Brakes To Fight TLFTL (Too Low For Too Long) Policies And Insane Federal Spending Spree (Fed Funds Effective Rate UP >5,000% YoY)

I love how the Supernatural character Dick Roman, a Levianthan, referred to Joe Biden as replaceable and having no spark. BUT Biden, Pelosi and Schumer did go on a historic spending spree helping to create massive inflation (so Biden and the gang did spark inflation).

To show you how Yellen/Powell’s Too Low For Too Long (TLFTL) monetary polices coupled with Biden/Pelosi/Schumer’s (add McConnell to this foul-smelling witches’ brew), Powell and The Gang (aka, The Fed) slammed on the monetary brakes. On a year-over-year basis, M2 Money growth has crashed tl -3.13%. The shocking number is The Fed Fund Effective Rate which rose over 5,000% YoY.

Actually, the US has been on a money printing spree since 1995, but it was Covid spending and monetary expansion in 2020 that crushed M2 Money Velocity (GDP/M2).

Here is Supernatural’s Leviathan monster Dick Roman handing an award to sparkless President Joe Biden. But Biden did spark massive inflation that crushed the US middle class and low wage workers.

Hail Zorp! The Fed Waited Too Long (Again) To Fight Inflation, Now Banks and Consumers Are Getting Hammered (Mortgage-backed Securities Got Clobbered Once Fed Started Raising Rates)

Former Fed Chair (and current Treasury Secretary) Janet Yellen protected President Obama by raising The Fed’s target rate only once while Obama was in office. Then raised rates 8 times after Donald Trump was elected in November 2016. Well, Fed Chair Jerome Powell was following Yellen’s TLFTL (Too Low For Too Long) playbook by delaying raising rates once inflation hit 2% in March 2021. Then Powell started raising rates like crazy, unlike Yellen and her zero interest rate policies (ZIRP or ZORP for zero OUTRAGEOUS rate policy).

One of the safe assets that Federal regulators encouraged banks to hold was agency mortgage-backed securities. The orange circle denotes when headline inflation YoY hit 2% (March 2021). Powell and the gang waited over a year (remember, they said inflation was “transitory”). But another Democrat, Biden, was now President and Powell (like Yellen) didn’t want to rock the boat. So, Powell and the gang waited until headline inflation hit 7% before they took action. Like Yellen, Powell waited too long .

The result? Agency mortgage-backed securities (MBS) got clobbered (white line) as MBS duration (purple line) rose dramatically. Duration is the weighted-average life of MBS and is a measure of risk.

Any surprise that unrealized losses have been piling up at US banks? Not really, only some regional banks weren’t paying attention and got crushed.

And US bank deposits are crashing despite Biden’s and Yellen’s saying the “all is well!”

Yellen and Powell praising ZORP (Zero OUTRAGEOUS rate policies).