Since 2008, employment gains have been declining, and just this year they have started to stabilize, effectively pushing the unemployment down with the solid employment gains. Gains in employment were the highest this last November than they have been in the last three years. Online ads for jobs increased, indicating employment gains. Surveys came back stating that many jobs were available and were much easier to obtain. The indicators were encouraging in the anticipation of the reports.
The numbers came back and for the
most part, they looked good, then they looked a little closer. For eleven months straight the payroll
increases have been up above 200k, those numbers have not been that strong
since 1994. The Economy has generated
the strongest number in new jobs since 1994, and showed 50k more than the forecasters
predicted. The economy looks to be positioned
for strong growth in 2015. In fact, the
numbers were so good they almost deemed America fully employed by FED
standards.
Despite all the optimism in
employment, weak wages took the spotlight and the softness in earnings that
fell drastically. There really is no
obvious fundamental factor that can explain the numbers that were
reported. They listed excuses and blamed
a “seasonal fluke” in the retail trade sector.
This time they couldn’t directly blame the weather. Job quality was not good as well, creating disputes
as to what exactly these numbers could mean.
Updated adjustments will of course be released further, most likely
while some catastrophic event is taking place to distract us, from the outright
manipulation of the numbers, as they always do.
These statistics and reports are just a reason
to issue or delay the rise of the FEDs interest rates, or a justification of QE
printing to monetize debt. These numbers
and reports can be perceived many different ways. They have the ability to manipulate what
information is presented and how the surveys are handled. The numbers just do
not add up.
We have roughly 47 million people who get food
stamps and inflation with food prices continue.
Many people still live paycheck to paycheck, less than three percent of
Americans make over 75k. Jobless claims
rose to 299k. Jobs in the energy sector
had the highest number of job cuts since 2012. With a population, around 316
million and 94 million are not in the labor pool how can we be close to fully employed. America is still in massive debt
and the FED has many people waiting to see if they will raise their interest
rates. The verbal easing Yellen keeps
spewing has become intolerable. One
person will say they are raising rates is what will happen then the other will
say no that we will wait. The reality is
that if they do raise the rates the trillions in bonds, trade derivatives would
create a mass of bank runs and the same banks that control the FED wall St.
banks would implode. It would also crush
equity markets the many corporations that took massive loans to cover there
debt and had to buyback shares. The impact
would be devastating for the main players, most of all the FED would become
unable to control the economic conditions.
The FEDs policy is really designed to take wealth from the largest
population and has systematically been wiping out the middle class. They do not really care about the numbers of
employment or income they want to keep the current financial system just the
way it is. The FED will protect it’s
self and the banks, they know that foreign cash will shrink the long-term rates
and they can always print to cover their own debts if need be.
