Job growth stumbles: what does this mean for food storage?
Today the May job growth numbers came out, and the news was not good. Employers only added 69,000 jobs to their payrolls last month. Considering America must add 125,000 jobs every month just to keep up with population growth, this trend is not comforting. Naturally, the unemployment rate ticked up to 8.2%.
The thought is the Fed may have to step in to stabilize an economy that is looking more and more fragile. When the Fed did this in 2010 it sparked a mass rush into safe goods, which are gold, guns, and food storage. In fact, the food storage industry had record interest (and profits) in November 2010 when Ben Bernanke released his quantitative easing plan.
Although it’s still a bit early, I think it’s becoming clear that the Federal Reserve will have to announce some more steps to increase the money supply. And that means there will be another run on safe goods. The questions is when will inflation finally catch up to the record spending.
Also, don’t be surprised to start seeing an increase in prices for food storage. As with any product, when demand increases, prices are sure to follow.
Here is a copy of the Reuters Report about today’s job numbers:
(Reuters) Job growth braked sharply in May and the unemployment rate rose for the first time in 11 months, putting pressure on the Federal Reserve to ease monetary policy further to shore up the sputtering recovery.
Employers added a paltry 69,000 jobs to their payrolls last month, the least since May of last year, the Labor Department said on Friday. In addition, 49,000 fewer jobs were created in the prior two months than had been thought and the jobless rate rose to 8.2 percent from 8.1 percent in April.
The report is troubling news for President Barack Obama, whose prospects of winning re-election in November could hinge largely on the health of the economy.
Republican challenger Mitt Romney wasted no time in jumping on the data to criticize Obama’s economic policies.
“Today’s weak jobs report is devastating news for American workers and American families,” he said in a statement, calling the report “a harsh indictment of the president’s handling of the economy.”
Stocks, already on the ropes due to a steady diet of troubling news out of Europe, slid sharply at the open with the Standard & Poor’s 500 index down 1.6 percent in the first half hour of trade.
Investors rushed into the safety of government bonds pushing the yield on the benchmark 10-year Treasury note to a record low below 1.5 percent. The dollar fell against the euro.
The White House expressed disappointment in the data.