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\\n\\t* Earlier today we released the most important Non-Farm Payroll report ever, at least according to the media
\\n\\t* A WSJ article stated that this report could "seal the deal" on rate hikes
\\n\\t* Interest rates have been at zero for 7 years as the Fed contemplated lift-off
\\n\\t* It all boiled down to one jobs report?
\\n\\t* If the Fed were going to raise interest rates in 2 weeks, how can it count on its accuracy or the fact that numbers will change next month?
\\n\\t* Let\'s get into the numbers:
\\n\\t* The number we got was 173,000 - well below the consensus forecast
\\n\\t* One of the weaker components was private payrolls, which only grew by 140,000 vs and expected 211,000
\\n\\t* The headline number is the unemployment drop to 5.1% - the lowest in the Obama presidency
\\n\\t* Once again, the devil is in the details
\\n\\t* The unemployment rate is falling because of the mass exodus from the labor force
\\n\\t* Another 261,000 Americans left the labor force this month
\\n\\t* The participation rate held steady at 62.6%
\\n\\t* The lowest rate since 1977
\\n\\t* I think it\'s heading lower
\\n\\t* The total number of persons not in the labor force rose to a new record: 94,031,000
\\n\\t* Also this month another 158,000 Americans find themselves involuntarily employed part-time
\\n\\t* That\'s what\'s responsible for the "improvement" in the labor numbers
\\n\\t* Janet Yellen specifically wanted to an increase in labor force participation and more full-time jobs before contemplating raising rates
\\n\\t* Those numbers have gone in the wrong direction
\\n\\t* Why is nobody pointing this out?
\\n\\t* This is the 9th month in a row that year-over-year factory orders have declined
\\n\\t* The only other time that has happened is during recession
\\n\\t* Every time we\'ve seen a sharp decline in the market accompanied by an increase in the volatility index, the Fed has responded with Quantitative Easing
\\n\\t* More and more people now do not believe the Fed will raise rates in September
\\n\\t* If the Fed raises interest rates and the market keeps falling and the economy rolls over, the Fed loses a lot of credibility
\\n\\t* This is affecting global markets
\\n\\t* The Dow is now in correction
\\n\\t* I pointed out in my last video blog that: a) the Fed has never raised interest rates from zero and b)normally the Fed raises interest rates into an accelerating economy
\\n\\t* This time the Fed is raising interest rates when the economy is weakening
\\n\\t* This time a rate hike will prick a much larger bubble
\\n\\t* Even if the Fed raised rates to a quarter of a percent, that is still cheap money
\\n\\t* The markets are forward-looking and they are not going to like what they see
\\n\\t* The dollar strengthened on anticipation that the Fed will raise rates
\\n\\t* America cannot afford higher interest rates on the debt we have now
\\n\\t* One of the things most people overlook is the huge stockpile of U.Ss treasuries that are held abroad
\\n\\t* Why do the emerging markets have so may dollars?
\\n\\t* In the aftermath of the 1997 Asian economic crisis, they bought dollars as a reserve to defend their currency if it started to fall
\\n\\t* That is happening
\\n\\t* So now, foreign governments are going to start drawing on their reserves, selling treasuries to shore up their currencies
\\n\\t* The vast majority of the accumulation happened after QE1, when we had a currency war
\\n\\t* The media has labeled this sell-off "Quantitative Tightening"
\\n\\t* China has already started to gradually sell treasuries
\\n\\t* The Fed has promised not to roll over maturing treasuries and to shrink the $4.5 trillion balance sheet to about a trillion
\\n\\t* That\'s $3.5 trillion of Quantitative Tightening
\\n\\t* Interest rates would have to rise dramatically to attract real buyers to U.S. treasuries
\\n\\t* No one can afford higher rates,\\n\\nOur Sponsors:\\n* Check out Rosetta Stone and use my code TODAY for a great deal: https://www.rosettastone.com/ \\n\\nPrivacy & Opt-Out: https://redcircle.com/privacy'