US Payrolls Rise 4.8 MILLION In June, Dow Jumps 1% (Taylor Rule Rises To -7.07% On Improving Unemployment Rate To 11.1%)

The markets were waiting for some goods news during the Covid-19 pandemic (although I am certain that Dr. Fauci (nee Strangelove) will produce some dire forecast about new swine viruses to rattle confidence). The good news is … Non Farm payrolls jumped +4.8 million in June.

And the number of working Americans rose for the second straight month and the unemployment rate dropped to 11.1% in June.

As a result of the decrease in the unemployment rate, the Taylor Rule (Rudebusch variation) now calls for a Fed Funds rate of -7.07%.

Dr. Fauci speaking today.

Cry Havoc! US M2 Velocity Sinks To Lowest Level In History As Of Q1 (Whither Q2?)

“Cry ‘Havoc!,’ and let slip the dogs of war low M2 velocity.”

In Q1, US M2 Money Velocity hit an all-time low as M2 Money Supply surged. That is, the ratio of GDP to Money Supply is indicating a stall.

Screen Shot 2020-05-12 at 5.58.41 PM

Of course, US 2Q GDP is expected to crash with the shutdown.


And the equity markets plunged 2% when the actual “Dog of War” Fauci cast negativism on reopening the economy.


The dogs of low money velocity are upon us!


Shutdown! Dallas Fed Manufacturing Outlook Crashes To -73.7% (Help Me, Fauci!)

The government shutdown of the US economy is having devastating effects. For example, the Dallas Fed Manufacturing Outlook Level Of General Business Activity » (SA, % Balance/Diffusion Index) has crashed to its lowest level since before The Great Recession.


Not surprisingly, Case-Shiller home prices in the Dallas TX area are pretty steady and seemingly immune to Dallas area unemployment rates. So far.


Help us Fauci! End the economic lockdown.