with the volatility of the dow over the past few weeks, the u.s. is in a bit of a quandry.  the fed will seek to raise interest rates in september potentially which could cause more stock market volatility.  the dow isn’t poised for another recession quite yet, but eknme thinks there may be a case for a drop to 15,000.  with the shanghai composite index dropping 11 percent and chinese manufacturing taming a bear, the chinese influence on global economies could be profound.   one thing at a time…

first, the u.s. unemployment rate has dropped from 5.3 to 5.1 percent.  those numbers do look steadily optimistic, don’t they?  but bear in mind that a few companies in the news over the past week or so intend on laying off more workers.  and with that, the rate will increase once again.  with construction coming to a close within the next few months as we get into the winter months, those construction workers will be laid off as well.  there should be a temporary spike of temporary workers as the holidays approach from october to january, but after that, the u.s. will fall back into old routine coming into 2016. so, don’t count your chickens before they hatch.

we’ve been ranting about the chinese stock market for the past few weeks now.  unlike greece, china’s economic downturn has worldwide impact.  when massive chinese layoffs come, it’s going to hit the u.s. and other economies hard.  brace yourself.  no amount of president obama’s speeches or monies can salvage china once the fall begins.

now onto our morning coffee…