My Dear Friends,

According to master statistician, John Williams, of Shadow Statistics, a must have service (www.shawdowstatistics.com):

"Depression-Warped Seasonal Factors Improved Reporting of July Employment and Unemployment, Purchasing Managers Manufacturing."

My take is that throwing dollars at car sales and in time who knows what will modify the downside, but only temporarily. When the “Cash for Clunkers” starving auto dealers are willing to bend the rules a tad and bailed out government influenced lenders (GMAC for all make autos) give you the gift of a car, you keep it until you default on the payments and have to park it under a tarp so the repo man can’t find it. Why wouldn’t you buy a new car?

The rub is that these types of giveaways sap potential demand only result in a harder fall off in demand when the presents from the philanthropic Administration end. In time they must.

The comparisons being pointed at in France and Germany of government cash sponsored car giveaways did not face the depth of fiscal and monetary problems currently being experienced and pending today and therefore are totally irrelevant.

The dollar is toast and will not survive the last quarter of 2009.

The dollar celebration today of 9.4% unemployment versus 9.5% unemployment is based on a skewed statistic and is therefore pure SPIN as a tool of MOPE. As such, it lacks legs in terms of the dollar.

Respectfully,
Jim