Thoughts from the Frontline

The Ride of the Keynesian Cowboys

By John Mauldin

October 8, 2010

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Teachers Don’t Count?
The Rise of the Temporary Worker
The Ride of the Keynesian Cowboys
Let Us Count the Unintended Consequences
Barefoot Ranch, New York, and the Rangers

To ease or not to ease? That is the question we will take up this week. And if we do get another round of quantitative easing (QE2), will it make any difference? As I asked last week, what if they threw an inflation party and no one came? We will take as our launching pad today's unemployment numbers, which serve to demonstrate just why the Fed may in fact be ready for some monetary shock and awe.

Teachers Don't Count?

As the jobs report came out a number of headlines trumpeted the "strong" private-sector job growth of 64,000 jobs, trying to soften the overall loss of 95,000 jobs. If you exclude the loss of census workers, the job losses were "only" 18,000. However, for the first time since December of last year, we lost jobs in a month. That is not the right direction.

"Moreover, when you adjust for the slide in…

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