After last week's hammering of gold and silver due to the "awesome" jobs report, this week saw precious metals and miners bounced off their lows to resume their upward momentum, driven in particular by a poor productivity report and an inventories to sales ratio that remains high.
US Nonfarm Productivity came in at -0.5% vs +0.5% expected, off by a wide margin of -1%. This followed a previous month's productivity of -0.6% in June.
The Inventories to Sales ratio remain high which in previous periods have been a recessionary period.
Source: Zerohedge
The US could possibly be in a recession despite the continual denial by the Fed and government and that everything was "awesome".
The auto inventories is cresting upwards as car sales continue to slow down. Even Ford is warning that Q3 results may disappoint.
Source:; Zerohedge
As I mentioned last week, consumer spending is being threatened by low paying jobs. Most of the spending so far is driven by subprime auto loans and consumer credit. Amount of consumer credit and auto loans outstanding is more than a trillion dollars each. And this is a dangerous sign.
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