The week gets off to a slow start as Chinese non manufacturing industries expanded at a slower pace for a second month in a row. As a result the Asian stock index carried the negative sentiment into European and North American trade.

On Friday the unemployment rate in the USA rose to 8.2%, climbing one tenth of a percent. This news was particularly disappointing as only 60,000 new jobs were created a far cry from the 150,000 expected. Unfortunately the stock market reacted negatively closing down 275 points. Yet there was renewed optimism that The Federal Reserve could re-introduce Quantitative Easing III by injecting more liquidity into the markets. This means that the Federal Reserve will print more money which will have an effect of devaluing the USD$. The price of Gold skyrocketed over $50USD/oz on the rumor.

England enjoys a Banking Holiday and tomorrow celebrates the Queens Diamond Jubilee, Sixty Years at the Throne. Wonder how much this will cost?

The ECB meets on Thursday June 6th to possibly lower interest rates further. The Euro zone has fires burning everywhere as the Greek Elections take place June17th. Results could fuel the Anti-Austerity approach throughout Europe. If the Greeks are thrown out of the Euro and are forced to re-introduce the Drachma, The Greeks could see their net worth slashed by over 50%. A fire sale on real estate? More worrisome is the bail out of Spanish Banks, who will fund these without creating larger problems.

George Soros warns of Euro demise if Germany doesn’t come to the rescue.