Gold and silver came roaring out of the long weekend as the US ISM Services number came in far under expectations, taking some of the wind out of the sails of the economic elite.
The pundits have been pushing the meme that US manufacturing, which is horribly weak, is an ‘old economy’ thing, and that the US ISM Services number would shine like the bright new era of economic growth that it is (not apparently).
So the markets thought it over, and decided that this additional bad news puts the Fed off of a September rate increase, and that they will continue to dilly dally around, jawboning all the passing strangers with tales of their hawishness.
As you might expect, the US dollar took a serious dive, which is somewhat justified by the ridiculous rally it had just the week before. The wash and rinse cycle is a forex wiseguy’s favorite.
So let’s see if the Fed can come in, without a shred of remaining credibility, and convince the world that indeed they are raising rates to cool off the overheating US economy that has surely reached and surpassed full employment.
This post was published at Jesses Crossroads Cafe on 06 SEPTEMBER 2016.