The Institute for Supply Management’s factory index (“ISM”) was at 49.8 last month, which is close to the three year low of 49.7 just reached in June. A number below fifty means that there is contraction in the economy, and economists surveyed by Bloomberg were expecting a 50.2 number as the median estimate. The European debt crisis, rampant unemployment and declines in purchases are seen as the sources for the slowdown, and as companies cut costs and spending, factories may further temper production.
“There’s just an overall softening” in manufacturing, Brad Holcomb, chairman of the ISM survey, said on a conference call with reporters. “What we’re seeing now is a reflection of the overall state of the economy. It’s the new orders that is really something to watch at this point,” Holcomb said. “I would be very concerned about production staying positive.”
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Yet for some reason, the market is higher, with people saying that bad news is good, because it means the Federal Reserve will intervene and begin printing money, making the stock market go way higher than it is now and create a temporary feeling of relief, until the debt crashes on our heads even harder a little further down the road.
I’m really not sure the Fed has the capability of printing more money – sure, it can print what it wants, no one can stop that, but if the market starts facing the reality that the Federal Reserve and Rothschild banking/US, Inc. is broke and China doesn’t want to pay for the debt anymore, then things will fall apart fast – we’re talking a great crash day and a collapse a few days later.
Observe what China is doing with it’s money now. Before, it bought US debt, and was the primary buyer, which allowed us to pay for the wars and stay afloat for a decade or so. Now, China refuses to buy US debt, and is buying gold and silver whenever it can. China is literally hoarding resources. This is something you do when you expect things like paper money to collapse in value. India and Russia also are buying up gold and silver to protect their economies.
What’s literally unfolding in front of us in the US is a collapse literally happening step by step, and so the clock ticks and ticks. Eventually, this criminal cabal will have its time and finally lose its whole house of cards.