Courtesy of Lee Adler of the Wall Street Examiner
A few Fedheads are wondering publicly about how QE affects the economy. It is patently obvious that QE has virtually no effect on the economy, and even crushes the middle class through wage suppression, while enriching the 1%. Meanwhile Bernanke goes out on his ego schtick, proclaiming his wonderfulness.
Gag me.
We got another data point today that illustrates just how insidious QE has been. With a so-so November, US Factory Orders still stink.
US Factory Odors – Click to enlarge
The headline seasonally adjusted fictitious number for nominal factory orders rose 1.8% from October to November, a little better than the consensus guesstimate of a gain of 1.7%. The actual change in real orders, adjusted for inflation, and not seasonally manipulated, was a drop of 3.6%. That is so so for a November. The average drop for the prior 10 Novembers was 3.9%.
The year to year gain was 2.8%. They’re all the way back to 2006 levels. Wow. A trillion in Fed money printing was associated with a 2.8% gain in factory orders. That’s quite a manufacturing renaissance. Shall we note that manufacturing growth is slower than GDP growth? Meanwhile, stocks rose 27.5% over that time. Somebody got richer, but it wasn’t factory workers.
Did you notice that Boeing was able to hold a gun to the head of its skilled machinists, successfully forcing them to take a pension cut? The labor movement is dead in America. Corporations are feudal lords, doling out crumbs to the peasants. The middle class sinks further down the economic scale. This trend does not end well.
Way to go Ben. Nice work. And for you Fedheads wondering how QE affects the economy, look no further.
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Copyright © 2013 The Wall Street Examiner. All Rights Reserved.
Get regular updates on the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, in the Fed Report in the Professional Edition, Money Liquidity, and Real Estate Package. Click this link to try WSE's Professional Edition risk free for 30 days!
Copyright © 2012 The Wall Street Examiner. All Rights Reserved. The above may be reposted with attribution and a prominent link to the Wall Street Examiner.
