In the currency market, the dollar was slightly higher against the euro. Late Wednesday, the euro was trading at $1.27 vs. $1.271 on Tuesday.

Sterling took a much bigger hit, falling from $1.4916 to $1.4768, as the currencies are pressured by expectations for those big rate cuts by the European Central Bank and Bank of England today.

In the day’s hard numbers, bleak data continued piling up.

Non-manufacturing activity in the US contracted in November at the fastest pace on record, according to a survey of companies released by the Institute for Supply Management. The ISM index sank to 37.3% from 44.4% in October. That’s the lowest level since the survey began in 1997.

Also announced was that the US private sector shed 250,000 jobs in November, according to the ADP national employment index. That was the biggest job loss in seven years.

The ADP report precedes Friday’s government labor market figures for November,

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The labor situation has become so dire that you can now hire an American Blue Chip CEO for a dollar – and a ride to work.

I’ve already reported in these pages as to how many of the top officers of the few remaining grand old Wall Street houses are forgoing bonuses this year. Now we hear that GM’s Rick Wagoner and Ford’s Alan Mulally have cut themselves back to a mere dollar each for 2009.

They are not the only folks willing to do a lot more for a tad less. One of the peculiar byproducts of these uncertain times is a sudden 1.3% increase in U.S. worker productivity.

It’s a Recession (At Least) After All

Last month (officially the 11th in our newly christened recession) saw another 250,000 jobs eliminated, making it the worst November since 2001. With unemployment hovering somewhere between 6.5%

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U.S. worker efficiency climbed in the third quarter, but the increase was largely due to cutbacks on labor that could spur unemployment.

Productivity, the measure that gauges employee output per hour, rose at a 1.3% annual rate in the third quarter, the Labor Department reported yesterday (Wednesday). However, this is largely because companies braced for a recession by reducing employee hours at the fastest pace in six years and keeping a lid on wages.

The number of hours worked fell at a rate of 3.1% and labor costs, a gauge of inflationary pressures climbed at a 2.8% annual rate - less than the initial estimate of 3.6%.  Labor costs were up just 1.4% from one year ago, an indication that the soft labor market is making it hard for workers to secure higher wages.

ADP Employer Services said separately yesterday that approximately 250,000 private-sector jobs were eliminated in November, the largest amount in

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U.S. worker efficiency climbed in the third quarter, but the increase was largely due to cutbacks on labor that could spur unemployment. Productivity, the measure that gauges employee output per hour, rose at a 1.3% annual rate in the third quarter, the Labor Department reported yesterday (Wednesday). However, this is largely because companies braced for a recession by reducing employee hours at the fastest pace in six years and keeping a lid on wages. The number of hours worked fell at a rate of 3.1% and labor costs, a gauge of inflationary pressures climbed at a 2.8% annual rate - less than the initial estimate of 3.6%.  Labor costs were up just 1.4% from one year ago, an indication that the soft labor market is making it hard for workers to secure higher wages. ADP Employer Services said separately yesterday that approximately 250,000 ...

In the currency market, the dollar moved sharply higher against the euro for the second straight day. Late Monday, the euro was trading at $1.261 vs. $1.2874 on Friday.

“There is no question that the meltdown in the equity market single-handedly triggered the sell-off in the currency market today,” said Kathy Lien, director of currency research at GFT. “The flight to safety has led to repatriation back into U.S. dollars even though there is still more trouble ahead for the U.S. economy.”

The gloomy news came in bunches yesterday. The Institute for Supply Management reported that its manufacturing index fell to 36.2% in November from 38.9% in October, its lowest reading since May 1982 and worse than economists’ expectations for a drop to 37%. Readings under 50% indicate most firms reported worsening conditions.

China’s manufacturing activity in November, as compiled by brokerage CLSA Asia-Pacific Markets, marked the sharpest drop in the

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The road to hyperinflation is paved with good intentions.

Zimbabwe, here we come.

Bernanke Says Fed May Buy Treasuries to Aid Economy Bloomberg

By Scott Lanman and Vivien Lou Chen

Dec. 1 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke said he has “obviously limited” room to lower interest rates further and may use less conventional policies, such as buying Treasury securities, to revive the economy.

The U.S. economy “will probably remain weak for a time,” even if the credit crisis eases, Bernanke said today in a speech in Austin, Texas. While the Fed can’t push interest rates below zero, “the second arrow in the Federal Reserve’s quiver — the provision of liquidity — remains effective,” he said.

Bernanke’s comments pushed Treasury yields to record lows. Bernanke has created more than $2 trillion of emergency lending programs in the past year, using the Fed’s balance sheet and money-creation authority to cushion

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Gloomy economic picture fuels risk aversion… Financials, energy, retailers among top drags… Dow off 4.3 pct, S&P 500 off 5 pct, Nasdaq off 5.3 pct

U.S. stocks tumbled on Monday as signs of further deterioration in the economy around the world punctured last week’s market enthusiasm, with financial services companies and retailers among Wall Street’s biggest drags.

Major industrial companies also contributed to losses on signs global demand is faltering, leading investors to pare back risk in favor of safe-haven government debt.

With the holiday shopping season under way, investors feared that retailers may turn in their bleakest sales in many years. The S&P retail index declined 4.4 percent.

Department store Macy’s Inc tumbled 9.6 percent.

Consumers made repeat trips to stores and spent more on bargains this weekend, but analysts said the rush is unlikely to translate into a much-needed boost in profit.

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Pack a lunch and blow the froth off a cool one…as I’ve got three days of gold and silver market activities to talk about…and lots of fascinating reading as well.

Wednesday, November 26th

This was the last day for all parties to get their gold and silver contracts switched to the 2009 year…or they would have to stand for delivery on Friday. With the U.S. in holiday mode almost from the beginning of trading, the tiny rally at the Comex open was stepped on and never recovered. But it hardly mattered…as volume was virtually non-existent. Silver was the same. Call the day a big zero. However, the shares reacted otherwise. Even though gold was down ten bucks at the close of the equity markets, the HUI still managed a surprising 6% increase…the second day in a row that gold has been flat or down…and the HUI up. Hmmm!

Open interest on Tuesday showed

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China unveiled yesterday (Sunday) what it described as a “massive” economic stimulus package – a planned capital infusion of $586 billion that it plans to use to reverse its slowing growth, to loosen credit and to offset slowing global growth by stoking domestic demand.

Xinhua, China’s state-run news agency, said yesterday that the stimulus package represents “a shift long advocated by analysts of the Chinese economy and by some within the government. It comes amid indications that economic growth, exports and various industries are slowing.”

The decision was announced yesterday by the State Council after Premier Wen Jiabao presided over an executive meeting Wednesday. China reported in late October that its economy grew at a less-than-expected rate of 9% in the third quarter – the fifth straight quarter than growth has slowed, MarketWatch.com reported.

“As the global outlook deteriorates, we expect Chinese macro policy to turn increasingly aggressive,” Merrill Lynch

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China unveiled yesterday (Sunday) what it described as a “massive” economic stimulus package – a planned capital infusion of $586 billion that it plans to use to reverse its slowing growth, to loosen credit and to offset slowing global growth by stoking domestic demand. Xinhua, China’s state-run news agency, said yesterday that the stimulus package represents “a shift long advocated by analysts of the Chinese economy and by some within the government. It comes amid indications that economic growth, exports and various industries are slowing.” The decision was announced yesterday by the State Council after Premier Wen Jiabao presided over an executive meeting Wednesday. China reported in late October that its economy grew at a less-than-expected rate of 9% in the third quarter – the fifth straight quarter than growth has slowed, MarketWatch.com reported. "As the global outlook deteriorates, we expect Chinese ...