re: April jobs number 175k, well below 240k estimates. Markets rally

quote:

---

We are gonna find out especially if the unemployment continues to increase

---

Sort of. In our current environment, rising unemployment is a requirement before rates can be cut. Unemployment has to go up so that consumers have less money to spend. Fewer consumers with fewer Dollars to spend means fewer Dollars moving around the economy AND more products sitting on shelves because they are no longer being bought (ie: supply goes up while demand goes down meaning prices go down).

This is the true ground the Fed has been fighting all the debt creation to get to and it's the pain people talk about when talking about getting through this back into a low-inflation and high-growth economy. So Unemployment rising isn't the end that signals that it's time to cut rates, it's just the beginning.