Jan 6 2010- The worst is yet to come. Bill Gross of Pacific Investment Management Co. said that when the government withdraws stimulus measures, asset markets in the US and UK will suffer. To date the Fed has flooded the economy with $8.2 trillion to reduce borrowing costs and stimulate growth. US public debt has increase to 58% and is now at $7.175 trillion, nearly double what it was when the economy was in a free fall a year ago. The inevitable increase in treasury rates will attract investors, but damage the economy even further. The fist stimulus has not worked, so the Harvard elite are calling for additional stimulus. The question we need to ask is what or who is being stimulated? While market indicators continue to create a false hope of a recovery, the manufacturing sector that has been on its deathbed for the past 40 years seems to be about to take its last breath of fresh air while China pollutes the environment and produces all the products that were produced in the US after the crash in 1929. Both the new orders and new export orders components of the ISM survey tumbled from November to December. Worse, ADP indicated that job losses in manufacturing continue to fall. 43,000 more lost their jobs in December. Also within the ADP report were signs of significant layoffs in the future.