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To: Sr K who wrote (122353)	10/3/2012 12:58:10 PM
From: RetiredNow	Respond to of 149317

What's interesting about this ISM reports is the following: * Good: this is the 3rd month of increases...that's the beginning of a good trend * Bad: prices paid jumped to 68...oh crap, that's inflation showing up...money printing does that to an economy * Bad: employment dropped to 51...this is bad in that it means overall national income is under pressure and that has GDP implications * Bad: the quality of jobs in the services sector have really trended downwards with employment gains coming mostly from restaurant chains and other low paying jobs, as well as temporary work...this again points to a persistent structural issue that will put downward pressure on national income and GDP So let's celebrate that this number is moving up, but understand the underlying trends are not so great. This is exactly what happens when we put lipstick on a pig. Money printing is only good at papering over structural problems. It can never help us address the fundamental issues that need to be tackled to achieve long term, sustainable economic growth. Employment Rise on Restaurants in U.S. Doing Quick Service: Jobs bloomberg.com