Richmond Fed Shows 3rd Monthly Decline As Wages Crash Most In 4 Years

A collapse in new orders and the order backlog combined with a plunge in wages, average workweek, and number of employees has left the Richmond Fed contracting for the 3rd month in a row. The last three times this happened, The US was either in recession or The Fed unleashed QE3.

So Recession... or moar QE?

The entire survey was ugly but wages saw the biggest crash since May 2011...

Time to hike rates?!

Charts: Bloomberg

Comments

[tmosley]

Well, now I can see why the US needed a massive distraction.

[Money Counterfeiter]

QEIV $1.2 trillion.

[Cautiously Pess...]

Go ahead Janet ... raise them rates. 

[yogibear]

There's a 100% chance now the Fed does a larger QE4.

Each successive QE must be larger to simulate. 

[Consuelo]

'simulate' indeed...

[MFL8240]

And the good news of the Obama recovery lie continues!

[moratar]

Funny how everything is up to FED while Putin is so irrelevant.

[buzzsaw99]

there will be MOAR

there was always going to be MOAR (for the 1%)

[Francis Marx]

yea...yea...bring in the all the illegals, that will promote wage growth

[A Nanny Moose]

Illegals are the least of our worries. At least those of Latin Amerikan origin.

[Consuelo]

So what happened with the star chamber meeting yesterday...?

[FreeShitter]

You saw some it today in turkey.

[Quinvarius]

Yellen has talked the US into a recession within a recession inside a depression.  Running around for over a year threatening to stomp out the economy worked wonders.  The Fed should never be allowed to speak publicly to anyone about rates.  

[lehmen_sisters]

On a side note, does anyone know how to get SNAP and some kind of unemployment or monthly check if you are white and decide to quit working?

[lasvegaspersona]

Move to England and become a futbol bum...pretty sure if you are a hooligan you qualify.

[lehmen_sisters]

Eh, would rather stay in 'Murica....not sure why...

[Bemused Observer]

I could get disability if I wanted to fight for it.

Sure, it would help at the moment. But I see it as a way of increasing dependence on a government on a collision-course with reality. What happens when shit hits the wall, and the checks stop, or become so devalued they aren't worth anything?

Forget the 'assistance'. Unless you are absolutely DESPERATE, you are better-off without such help. Focus your efforts on keeping what you have out of government hands...work off-the-books, buy second-hand, accumulate some hard assets like PM's. Hunker down and keep a low profile while this shit spins out of control.

But don't EVER willingly put yourself in a position where you can't eat until the magic check arrives. Because one day it won't, and they will gladly let you starve.

[Bemused Observer]

Wages DO need to come down. But so do prices. If both moved downward, there wouldn't be a big problem, as they'd pretty much keep pace until they found their proper levels.

But TPTB won't allow their investment assets to lose value, so the prices are propped-up. The mindless response is to agitate for a higher minimum wage. Which makes low wage earners happy, but does NOTHING for their actual purchasing power.

The whole economy needs to downsize, and do so aggressively. Everywhere you look, you see signs that it is TRYING. But the parasites that have made out like bandits are preventing it from happening, for now.

But not forever.

[J J Pettigrew]

This is econ 101...

Allow more and more cheap labor into the market (illegal immigration)

Export your manufacturing with regulatory and tax burdens ...

and viola!!

Cheap labor, no manufacturing, giant trade imbalances

[CoastalCowboy]

Anyone got game enough to play the futures market on pink slime going for $20 to $30 a pound?

[honestann]

Yup, time to hike... QE4ever... into the stratosphere.

-----

However, now that everyone (even status-quo apologists) admit the central banks have utterly SCREWED every honest, ethical, benevolent producer and saver in order to ENRICH the most nefarious banksters and monster corporations... expect QE4ever to be different.

Hell, they might even call it QE4folks or QE4people or QE4mainstreet to emphasize the difference from all past bankster-enriching atrocities.

I'm not sure what bogus approach they'll take, but it could be something like "no 2015 federal taxes due on first $100K or $250K of income" or "greatly increased standard deduction" or "tax rebate" or "forgive some portion of car/student/mortgage debt" or something else along these lines.

The only way the federal reserve raises interest rates is if they've chosen the current time to crash the world economy and have informed all their buddies and co-conspirators who now have huge leveraged bets to profit from a crash of the markets and/or economies.