UPDATED ALERT: New Recession Breaks into the Open, with an
Annual Decline in Freight Activity Not Seen Since the Great Recession,
May 2019 Zero Net Payroll Growth and Quarterly Contractions in Key Series

As the Downturn Intensifies, So Too Should U.S. Dollar Selling and
Flight to Gold, With the Stock Market Vulnerable to Massive Selling

Fed Chair Powell Hinted at Possible Later Easing, but Current Conditions Justify
Greater Accommodation Now; New Quantitative Easing Is Possible by September

With FOMC Easing Hinted, U.S. Stocks Rose to New Highs; but a Greater Dollar
Plunge and a Greater Gold Price Surge Each More Than Offset the Stock Gains

Excessive FOMC Tightening and Rate Hikes Triggered the New Downturn

When the Fed Shifted to Its Restrictive Monetary Stance,
Much of the U.S. Economy Still Had Not Recovered from Its Collapse into 2009;
That Exacerbated Already Heavily Negative Consumer Financial Conditions

Tightening Has Continued, With the May 2019 Monetary Base at a Six-Year Low,
Down 3.2% (-3.2%) From December 2018

Full Economic Recovery Requires More than Interest Rate Cuts and FOMC Easing

Also Needed Are Meaningful Tax Cuts for Main Street U.S.A., and
Stimulative Government Spending, Despite the Ongoing Budget-Deficit Disaster

In Response to Such Deficit-Busting Stimulus, Global Markets Likely
Would Savage the Dollar, Unless the U.S. Government First Could Put in Place a
Credible Plan for Balancing Its Finances Once Economic Conditions Had Stabilized

Government Action Is Unlikely, Though, Shy of Response to a Financial Crisis or Panic