Gold dropped another $100/oz today putting it under $1200 for the first time in years. Gold mining companies are severely cutting staff since they need $950/oz to break even. The right wing 'news' sites that used to be obsessed the soaring price of gold have replaced this part of their economic coverage with headlines about Paula Deen's book being number one on Amazon. Good to know they are covering the important things. China is rumored to still be producing massive quantities of gold, this is probably true, they do everything in big way.
The Brits have signed onto a massive currency swap deal with Communist China that will allow China to do a lot more trade directly in the Renminbi or The Peoples Currency without using the USD as an intermediate currency. The whole point of deregulating the big banks 15 years ago was because we could dominate world trade with the US dollar. The problem is that China actually has stuff to trade and we don't. Ten years ago the Yuan wasn't used outside China, another ten years of this nonsense and you'll be using Yuans at your local Walmart.
New unemployment claims are down for the week, and they are staying at a level consistent with some new jobs being created.
The May inflation numbers are out and while there was 1% inflation for all prices, for core inflation (this doesn't include food and fuel) these prices actually deflated by 1.1% and this a problem. This runs exactly counter to the Federal Reserve's goal of 2% inflation that they had hoped to create with trillions of dollars in new money injected into the economy via Quantitative Easing version 3.0 Investors are pulling out of US Treasury bond funds on the belief that the Fed will stop propping up bond prices.
US has suspended Bangladesh's tariff exemptions in response to their dismal worker safety record. This takes them back to the bad old days of 'protectionism', you know when we actually made things in the US. All of all those old tariffs are still on the books, the rates have just been taken down to a fraction of a percent. We could turn the tariff control knob from 'third world country' back up to 'protectionism' at anytime if we decided to have a manufacturing economy again.
The Republicans have no interest in doing anything for the economy of course, it's War Time after all. War on women, war on voting rights, war on the poor, and the corporations are all winning big in these wars. The Supreme Court has pretty much done away with your right to sue them no matter what they do to you. Class action suits are now just about impossible, an outright exemption from being sued has been granted for generic drug makers no matter how many people they kill and maim. This 'corporations are above the law' doctrine is only getting warmed up, America is very nearly gone. Twitter @BruceEnberg for the latest news on our decline into serfdom