May 2013: The strong US April employment report rekindled optimism. However other indicators of US economic activity continue to paint a picture of weak, but positive growth. In this month’s letter, Bill Longbrake discusses trends in employment, income and consumption and prospects for GDP. Special topics include a discussion of asset price bubbles – they don’t exist yet, the coming debacle in France, and the risks Japan’s economic policies pose to Japan over the longer run and to the rest of the world over the shorter run.