The U.S. economy added only 18,000 jobs in June, much weaker than expected. Jobless rate up to 9.2%. I suspect that if you care about this sort of thing, you already know about this and about the impending attack on the bulls as measured by the decline in stock futures.
We all know that these numbers are ginned to be better than they look. This is only 18,000 total jobs added AFTER 131,000 jobs were conjured up from the kookery of the BLS "birth death" ratio. More importantly the labor force participation rate fell to a fresh 25 year low, meaning today’s headline numbers actually look better than they are since 200,000+ fewer people were counted in the survey.
The economic malaise continues and no where in this newsletter has it been suggested that recovery in the economy will occur any time in the near future. That will be a big day for me, when I can say better times are really here. So it’s with wonder why the economists, the experts, forecast a medium number for jobs growth at close to 150,000 when the number reported by your government totaled 18,000. At this point, my cats are smarter. It’s time for these Fed establishment economists to take a hike.
Perhaps one of the challengers to king Obama should try this on for size: "Recession is when your neighbor loses his job. Depression is when you lose your job. Recovery is when Barack Obama loses his."
Actually, I don’t believe that completely. Obama has made things worse by focusing on the wrong things during the recession over the past few years. However, 40 years of fiat economic policy can’t be arrested in just a few years, if Obama were inclined to do such a thing, which he has resisted, perhaps there would be some hope. But he happens to be the hapless character in the oval office as the wheels are finally falling off after decades of deficit spending. As I’ve stated, we’re at a cirrhosis of the liver moment in time. 40 years of binge spending with fake money has caught up with society. Uncle Sam’s liver has gone from pate to hardened and dead tissue with no cure or transplant donor waiting in the wings.
The other morning CBS White House reporter Mark Knoll tweeted that "you can’t have debt reduction without the elimination of the deficit". Wow, the MS is starting to get it, though the government would actually have to have actual surpluses to cut the debt while also addressing the monster of compounded interest (debt service). Anyone thinking budget surpluses any time soon? It’s too early to laugh so hard!
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