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How The Fed Spent $2 Trillion And In Exchange We Got 650,000 Temp, Leisure And Retail "Jobs"

Tyler Durden's picture




 

When we looked at the changing composition in the US work force one month ago, we discovered, to our dismay, that since the start of the Depression, the US labor pool has transformed substantially from a full-time time to an increasingly more part-time dominated one. Specifically we found that "America has lost 10.5 million full time jobs, offset by a 2.8 million increase in part time jobs" and that "the US not only lost 478k seasonally adjusted full time workers in November but has lost full time jobs for 6 months in a row, for a total of 1.6 million job losses!" In an attempt to further refine this number, we present some TrimTabs data which proves beyond a shadow of a doubt, that the Fed's QE (1, Lite, and 2) efforts, when expressed in labor force "pick up" has been an abysmal failure. To wit: "In 2010, the BLS reports that the economy added 1.12 million jobs.  Almost 60% of these jobs are in one of three relatively low-paying areas—temporary employment (308,000), leisure & hospitality (240,000), and retail trade (116,000)." In other words, of the 1.1 million private jobs gained in the last year, 650,000 or 60% are jobs that have absolutely no real wealth creation capacity, nor do they provide any real benefits. In fact, the retail jobs are becoming increasingly distressed, as more Americans shop online, leading to a job pickup... in Chinese warehousing and QC plants, and the irretrievable loss of even the lowest paying US jobs. Perhaps this is another question to add to the increasing list of lies to be justified by Ben Bernanke at earliest convenience. And the next time the teleprompter claims to have added millions in jobs, and that very inappropriately named Fed "Dove" Janet Yellen says the Fed's QE has been a tremendous job creation success, someone please ask them to break down the actual types of jobs "created."

From TrimTabs:

Almost 60% of Jobs Added in 2010 in Three Lower-Paying Areas: Temporary Help, Leisure & Hospitality, and Retail Trade.

Economists and market strategists spill lots of ink opining about the number of jobs the U.S. economy creates.  But we think the nature of the jobs is at least as important for the economy’s long-term health as the number of jobs.  On the former point, the latest Bureau of Labor Statistics (BLS) data is disappointing.

In 2010, the BLS reports that the economy added 1.12 million jobs.  Almost 60% of these jobs are in one of three relatively low-paying areas—temporary employment (308,000), leisure & hospitality (240,000), and retail trade (116,000).

These jobs are certainly better than no jobs.  But for the economy to grow sustainably—without the crutches of $1+ trillion per year in federal deficit spending, zero percent dictated interest rates, and tens of billions per month in central bank debt monetization—American companies need to start generating more higher-paying jobs at home.

 

 

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Wed, 01/12/2011 - 17:51 | 871278 ATG
ATG's picture

Government jobs=oxymoron

Wed, 01/12/2011 - 17:57 | 871301 Husk-Erzulie
Husk-Erzulie's picture

Government cheese...it's the last great American industry.  Henry Ford is weeping in his grave.

Wed, 01/12/2011 - 18:10 | 871356 LawsofPhysics
LawsofPhysics's picture

The goberment is the only entity shedding jobs (as they should), next up, your local municipality.  Be sure to put that septic tank in because your sewer line might not be so dependable anymore.

Wed, 01/12/2011 - 20:55 | 871734 velobabe
velobabe's picture

the Evil Empire EE, needs to fall. i think i am ready, R U?

Wed, 01/12/2011 - 21:18 | 871766 island
island's picture

Yes, Yes, Yes.

Wed, 01/12/2011 - 19:35 | 871579 SwingForce
SwingForce's picture

Henry Ford and Thomas Edison shared next-door winter residences in Naples, FL.

What I would give to sit in the tree above their happy hours.......

(Rockefeller thought he was screwed when Edison invented the electric bulb, no need for kerosene lamp fuel, but when Ford invented the gasoline engine, Rockefeller was saved....)

Wed, 01/12/2011 - 20:14 | 871657 Terminus C
Terminus C's picture

Ford didn't invent the gasoline engine.  He developed a production line that reduced the production time by about 90% per unit, thus massively saving on labor input.  This allowed the internal combustion driven vehicle to be affordable to the average worker.

Wed, 01/12/2011 - 21:17 | 871772 Drag Racer
Drag Racer's picture

Ford didn't invent the gasoline engine.

True, in fact his first vehicles ran on ethanol.

http://www.fuel-testers.com/ethanol_fuel_history.html

http://www.rense.com/general67/FORD.HTM

...engines were built back in 1870 that could run using either alcohol or gasoline...

http://suzieqq.wordpress.com/2008/07/23/rockefeller-ford-and-the-secret-...

http://www.georgewashington2.blogspot.com/2008/07/cut-fuel-costs-and-fig...

Rockefeller needed someplace to sell oil after electric goes mainstream

http://www.reformation.org/henry-ford.html

 

look into the ties between the Ford Foundation and Rockefeller Foundation or more frightening is look into what they 'actually' do.

http://www.pbs.org/wgbh/amex/rockefellers/timeline/index.html

Wed, 01/12/2011 - 22:18 | 871920 robobbob
robobbob's picture

great, now I have to wash my hands. how much $ did PBS get for that white wash?

Wed, 01/12/2011 - 18:35 | 871436 TruthInSunshine
TruthInSunshine's picture

This ends badly.

The federal reserve is recklessly taxing future growth, and subsidizing Wall Street and the banking sector, and getting inflation and more malinvestment and distortions in asset classes, with taxdollars yet to be received.

The total cost of this folly will be astronomical.

Wed, 01/12/2011 - 18:40 | 871450 Quixotic_Not
Quixotic_Not's picture

The "cost" will be the collapse of the country itself, once the illusion that "All is well" has faded into the "Greatest Depression"...

In a democracy, you get the government you deserve...

Wed, 01/12/2011 - 20:37 | 871701 nmewn
nmewn's picture

and you deserve to get it good and hard.

Wed, 01/12/2011 - 19:53 | 871611 rosiescenario
rosiescenario's picture

...would hat be in dollars or oz of silver????

Not that I am an economist, but I have said from the start that the # of jobs created soes not matter...it is the amount of income created that counts....for me it is so obvious: if you lose 10 jobs paying $200k per year and add 100 paying $15k, did the economy improve???? Or, to put it another way, the quality of the jobs created is as important as the quantity.

Wed, 01/12/2011 - 17:53 | 871285 cossack55
cossack55's picture

Government workers=oxymoron

Wed, 01/12/2011 - 17:59 | 871312 hambone
hambone's picture

Working Government = oxymoron

Wed, 01/12/2011 - 20:39 | 871705 Shell Game
Shell Game's picture

Working Morons = Government

Wed, 01/12/2011 - 17:54 | 871291 ReeferMac
ReeferMac's picture

Nothing to see here, move along....

Wed, 01/12/2011 - 18:58 | 871490 B9K9
B9K9's picture

I agree. Tyler keeps posting up irrelevant information that attempts to provide some kind of linkage between policy decisions and economic fundamentals. Bzzt! Wrong.

ZH is an incredible platform, but for it to remain relevant, it really needs to climb the perspective ladder. From a higher vantage point, one can clearly see that the entire name of the game is preservation of the current regime - one that is an admixture of state protected oligarchies representing many different fields. And the underlining mechanism behind this entire process is the magic of credit generated ponzi "money".

So, when you see a headline like "the Fed spent $2T", one must not be confused about its publicized intent, but rather, focus on its true purpose. In this case, the true purpose is to maintain the fascist state in all its present glory.

Now, once one understands the overriding mechanisms & motivations, it's easier than sh!t to arbitrage the system just like the insiders. For, after all, nothing is really opaque anymore, now is it? Nope, in reality, this game is utterly transparent.

Right now, we have bubbles in 4 major areas, incidentally all effects of focused gov't action: education, commodities, equities & debt. Whereas the latter three are a result of printing (QE), student loan growth is the one area where credit is still increasing.

How long can this continue? Who knows. But in the interim, there's a 1:1 correlation that would be wise to game in terms of preparation.

Wed, 01/12/2011 - 19:38 | 871586 DocLogo
DocLogo's picture

Please continue. which commodities do you feel are bubbles?

Wed, 01/12/2011 - 20:38 | 871703 B9K9
B9K9's picture

Everything denominated in the $USD is in a bubble.

Try this thought experiment: what if the debt ceiling was not increased, QE ended, and massive budget cuts were undertaken. What would happen? Answer: the dollar would soar and all commodities (including gold) priced in FRNs would crash.

But what is the likelihood of this occurring? Nil to never gonna happen. So what's the corollary? The $USD will continue to fall while all items priced in $USD will continue their upward trajectory.

The key is to not think about price, but policy. And no, don't worry about policy in terms of public impact, follow policy in terms of regime preservation. As long as the fascist empire still stands, the $USD will be used as a bludgeon to achieve its strategic imperative(s).

That's why, while Robot is correct, he appears to lack any intrinsic understanding of why this is so. So, to recap, stay long in the areas that are effected by dollar depreciation. Don't get out of your long positions until you can literally see the white of Ben's eyes get really big.

Then you will know the party is ending.

Wed, 01/12/2011 - 21:43 | 871821 DocLogo
DocLogo's picture

Here's my question: Since everything is denominated in $'s and if prices are rising across the board, how is it a bubble if everything rises together but stay the same relative to each other? Isn't that just inflation? Is that the same as being in a bubble? In other words, if everything rises in price at the same rate, how is it a bubble?

Thu, 01/13/2011 - 04:06 | 872417 StychoKiller
StychoKiller's picture

I like to think of it as watching the waters recede before the tsunami is spotted on the horizon...

Wed, 01/12/2011 - 19:59 | 871615 uno
uno's picture

for a timeline, I do not see anything dramatic happening with O in the House.  The media LOVES him and will attack anyone challenging him.  This is probably why he is in right now, especially now having Daley as the Chief of Staff to pacify TPTB.

The current solution is to give out benefits (food stamps, SSI disability, medicaid etc) while the looting continues.  Soon anyone not working will get free lottery tickets while Wall Street continues with record bonuses. 

The USD will drop dramatically over the next few years, outsourcing of most jobs requiring a college degree will increase.

The signs I would look for is huge protests outside the White House, just cannot see that happening with O in.

Wed, 01/12/2011 - 22:33 | 871945 robobbob
robobbob's picture

I disagree on your take of TD. I think the tone of TD and ZH makes clear where they stand. Many of the ZH articles serve to pull back the curtain on said oligarchal regimes. The problem is that the curtain is so large it can only happen one piece at a time. And the horrible thing behind is so perverse and grotesque that an unprepared mind cannot grasp it in its entirety without going mad.

The present article exposes a piece of the fraud being used to once again hide the truth. Twenty years ago, the PTB and their media lapdogs could hide their crimes. Today, there is the internet. A mistake they are working feverishly to correct.

Wed, 01/12/2011 - 17:55 | 871293 Jaw Knee Cash
Jaw Knee Cash's picture

I was shooting in the desert last weekend and came across a dead stag beetle. I picked it up and it was very light. I realized that its insides were completely eaten out; just the outer shell remained. Just like the economy of this country. It's dead and has been hollowed out by parasites.

Wed, 01/12/2011 - 17:57 | 871300 SheepDog-One
SheepDog-One's picture

Exactly!

Wed, 01/12/2011 - 17:59 | 871309 Racer
Racer's picture

A very good comparison to the parasitic banksters but it seems they have forgotten that if a parasite is host specific and consumes all its hosts then it will itself die a slow death

Wed, 01/12/2011 - 18:08 | 871346 Jaw Knee Cash
Jaw Knee Cash's picture

All of the hosts are not yet dead. We (productive citizens in the US) are all part of the human farm like in the Matrix. So long as we keep producing, the parasites will keep sucking.

Wed, 01/12/2011 - 18:23 | 871391 Dr. Porkchop
Dr. Porkchop's picture

How to starve the tapeworm without starving ourselves first? How to kill the parasitic squid kraken?

Wed, 01/12/2011 - 19:30 | 871565 Pegasus Muse
Pegasus Muse's picture

Live debt free.  Buy gold & silver. 

Wed, 01/12/2011 - 19:58 | 871608 Slow learner
Slow learner's picture

Their is some crap up here in MI called an Ash Bore Beatle...Fuck!...I just wanted to have sex with the girls I liked and swim around in lakes...I didn't sign up for this shit!!

Thu, 01/13/2011 - 00:59 | 872297 Jaw Knee Cash
Jaw Knee Cash's picture

you must be a slow learner.

Wed, 01/12/2011 - 17:56 | 871297 umop episdn
umop episdn's picture

http://research.stlouisfed.org/fred2/series/EMRATIO/

So this graph of the Civilian Employment-Population Ratio that shows a 25 year low...it's actually worse than it looks because of all the McJobs. (insert cynical comment here)

Wed, 01/12/2011 - 17:58 | 871307 EscapeKey
EscapeKey's picture

I read somewhere that 40% of all American jobs are minimum wage jobs.

Wed, 01/12/2011 - 18:06 | 871341 Rainman
Rainman's picture

I can't imagine how all those student loans will be paid off on McNugget wages.

Wed, 01/12/2011 - 18:09 | 871354 EscapeKey
EscapeKey's picture

Yup. Imagine being 25-year old, recently graduated, in debt up to your eyeballs, and working at McDonalds.

And now realize that you won't be able to afford to have kids until you're well past your 40'es.

Meanwhile, those losers you went to school with, who can't add 2 and 2, already have 4 kids each, provided for by the government.

Thu, 01/13/2011 - 02:05 | 872359 RafterManFMJ
RafterManFMJ's picture

I seem to see hundreds of people having kids they cannot afford. Golly, are you a square. Waiting till you can 'afford' kids is so 1950. Drop a litter, and let someone else pay-it's the American Way!

Wed, 01/12/2011 - 20:47 | 871630 spekulatn
spekulatn's picture

 Just follow 50 Cent on twitter. Your loan will be paid off in no time....... bitchez.  8)

http://www.dailymail.co.uk/tvshowbiz/article-1346498/50-Cent-makes-8m-pl...

Wed, 01/12/2011 - 22:42 | 871962 Cursive
Cursive's picture

LOL.  Pathetic, but no different than every "guest" on CNBC.

Wed, 01/12/2011 - 23:20 | 872050 Hephasteus
Hephasteus's picture

Oh shit. He's going to be martha stewarted.

Wed, 01/12/2011 - 17:56 | 871298 SheepDog-One
SheepDog-One's picture

They didnt include 'street performers' in the data this time? I wonder why. Well just reading about Romania taxing witches, the witches are very angry and swear to cast many spells against the gubment. Interesting.

Wed, 01/12/2011 - 18:00 | 871314 EscapeKey
EscapeKey's picture

That was on the Keiser Report.

http://www.youtube.com/watch?v=Y8JpkXuM_E4

 

Wed, 01/12/2011 - 18:16 | 871375 Wynn
Wynn's picture

I wonder if those street performers (the Ted Williams's) are claiming those tips on their taxes. Perhaps the IRS should send tax collectors to every homeless shelter, and make sure all that income is being reported.

/sarc

Wed, 01/12/2011 - 18:39 | 871451 Common_Cents22
Common_Cents22's picture

Ted Williams will have no taxes or income since he is going to treatment after the cops were called to his hotel room.  LOL.    There was a reason the guy was homeless.

 

 

Most insta-celebrities wait until after their 15 minutes is up before heading to rehab. Ted Williams is going before his clock had the chance to even start ticking.

The former homeless man-turned-overnight success story, who has been open about his battle with drug and alcohol addiction, is taking the first step toward putting his past behind him by agreeing to enter into treatment.

Read more: http://www.eonline.com/uberblog/b220219_well_was_quick_golden-voiced_ted.html#ixzz1AraxT6Co
Wed, 01/12/2011 - 19:52 | 871609 PalmiticGlycerin
PalmiticGlycerin's picture

Poor Ted thought he was re-entering reality... Then he realized the shape of the economy and culture.. and determined he was better off homeless and drinking.  Time to get another beer.

Wed, 01/12/2011 - 17:58 | 871304 Misean
Misean's picture

"...Fed "Dove" Janet Yellen says the Fed's QE has been a tremendous job creation success, someone please ask them to break down the actual types of jobs "created."

Well, there's butlering for Loyd "God's Work" Frankenstein, certainly The Morgue's Demon has additional gardening gigs at one of his mansions, Shill Gross has yatchs to maintain in Newport...and lest's not forget gold palted toilets and other luxury goods for the banksters and financiers and their "appropriately paid and bonuses or they'll go to other countries" minions.

Wed, 01/12/2011 - 18:01 | 871317 Former Sheeple
Former Sheeple's picture

But on the bright side, consumer spending is up...because shite costs more! I'm new to ZH, and have learned alot from TD and all the contributors. Thanks to all! Curious though, if thre is anyway to determine how much consumer spending is fueled by shear terror? Purchases of guns, silver/gold, food stores, generators etc...?

Consumer spending = Inverse confidence?

Wed, 01/12/2011 - 18:29 | 871415 bunkermeatheadp...
bunkermeatheadprogeny's picture

Hormel foods had a great 2010 from all the ZHers stocking up on Dinty Moore Stew:

http://www.marketwatch.com/investing/stock/HRL

Wed, 01/12/2011 - 18:33 | 871428 Former Sheeple
Former Sheeple's picture

Thx BunkerMH, Cabela's did as well, just makes me wonder...

Wed, 01/12/2011 - 18:01 | 871320 Djirk
Djirk's picture

full employment bitchez, meanwhile starvation and riots in Africa

Wed, 01/12/2011 - 18:02 | 871321 Rogerwilco
Rogerwilco's picture

$3M "invested" per job? That's about par for government activities in general. God help us if they ever lay off Joe Biden and this stimulus spending gets wasteful.

Wed, 01/12/2011 - 18:03 | 871327 mark mchugh
mark mchugh's picture

$3 million per job.....Thanks for saving us!

Wed, 01/12/2011 - 18:15 | 871370 Hephasteus
Hephasteus's picture

Talent agent fees BITCHES!!!!!

Quit paying your fucking movie stars stupid bills and acting as financial cia expectatin handler to them. Join the fed and get a bigger cut!!

Wed, 01/12/2011 - 18:45 | 871461 mark mchugh
mark mchugh's picture

Wait...the total number of jobs created was 1.12 million

That's only 1.7 million per job!  For a minute there, I was worried.

Wed, 01/12/2011 - 20:04 | 871633 Logans_Run
Logans_Run's picture

Yeah, I had to dump that into excel myself and make sure the numbers worked. $1.8 million per job created!

Wed, 01/12/2011 - 20:25 | 871672 Terminus C
Terminus C's picture

Well, that's alright then.  $3 million was just a little over the top.  $1.7-$1.8 is a reasonable investment though...

Wed, 01/12/2011 - 23:22 | 872059 Hephasteus
Hephasteus's picture

I see what ya did ther.

How much would you expect to pay for this crappy job. 3 million? 2.5 million? No that's too much get it for the low low price of 1.7 million! Hurry while supplies last.

Wed, 01/12/2011 - 18:05 | 871338 cartonero
cartonero's picture
The Fed Spent $2 Trillion And In Exchange We Got 650,000 Temp, Leisure And Retail "Jobs"

 

I got a free t shirt, too!

Wed, 01/12/2011 - 19:07 | 871512 mark mchugh
mark mchugh's picture

Where's my t shirt?

Wed, 01/12/2011 - 19:25 | 871554 andybev01
andybev01's picture

It's in the bag, next to your fries.

Wed, 01/12/2011 - 18:34 | 871343 Sudden Debt
Sudden Debt's picture

Rumor now has it that the Chinese are useing the EU PIIGS as a excuse to unload their dollar reserves and moves these into euros.

The risk is on but not as high as it is in the US.

The EU isn't printing euros like the US is printing dollars.

So EU finances might not be well, but they are buying themselves in knowing that no extra euro prints will harm their investments.

In their case, if you where the chinese and had to chose which one would you take?

Also, the EU is bigger then the US. This is also the EU keeps expanding, to become the most important market for the Chinese so they bring their money to use over here. China is one of the last remaining banks in the world and they only have so much to invest before they are tapped out so the fight for the cudos is on.

And the FED knows this, and has no other option then to print and buy and fill the holes just like they do now.

THERE IS NO OTHER OPTION.

And for the fraud...

If you know the world is burning, would you care about everybody else or would you take care of your own and sacrifice the rest for your own ass?

 

TIP: SHORT THE DOLLAR

Wed, 01/12/2011 - 20:13 | 871655 Slow learner
Slow learner's picture

The U.S. is looking to get its chops busted...no two ways about it

Thu, 01/13/2011 - 04:14 | 872423 StychoKiller
StychoKiller's picture

Nothing rumorish about what the Chinese are doing wrt Euro Bonds.

Wed, 01/12/2011 - 18:07 | 871344 tahoebumsmith
tahoebumsmith's picture

Just filled up at $3.68 per gallon! Anybody try to buy a good steak lately? How are they going to explain the coming food shortages? And fuel shortages? when everybody is either making minimum wage or living on EBD cards?

Wed, 01/12/2011 - 18:32 | 871425 RobD
RobD's picture

Hey tahoe, you North or South Lake. I used to live up in Truckee, boy do they know how to jack you on gas up there. In Reno now, only $3.20 or so a gal.

Thu, 01/13/2011 - 01:18 | 872320 tahoebumsmith
tahoebumsmith's picture

I'm South side ...actually southwest closer to Hangtown. This would be the place to bring the Bankers to trial...kinda like the old days you know.

Wed, 01/12/2011 - 18:08 | 871347 gcmays
gcmays's picture

As the author states, "A" job is better than no job at all. For all the $$$ spent and invested, we get a pyrrhic victory in return.

Wed, 01/12/2011 - 18:08 | 871350 owensdrillin
owensdrillin's picture

Until the American consumer starts demanding quality products, the manufacturing will stay offshore. We use US made down the hole hammers and bits in our work and they are high quality. We have tried using products from Asia but they are, for the most part, junk. They cost less but do not last to cover the lower cost.

All the steel casing now comes from China, Korea, or Indonesia whereas fifteen years ago it came from the US.  Most of the steel is not bad but there are a lot of bad batches where who knows what went in the pot.

I look all the time for products made in Canada or the US as I don't mind paying a bit more for quality and to also hopefully keep some jobs in North America. It is getting almost impossible to find clothing, tools, housewares etc. that are not made offshore.

We can't all just be money changers and have the rest of the population do each others laundry. Manufacturing MUST come back. Eventually it will with the devaluation of the dollar but that is a shitty way to do it as the lifestyle will not be what it was with the stronger dollar.

Wed, 01/12/2011 - 18:11 | 871361 Racer
Racer's picture

A vicious circle..

I can't afford to pay high prices because I don't have a lot of money because I have a part time job.. if I am lucky... my bills are soaring because of hyperinflation in things I need for existence and have no choice but to pay.. so I have to cut down on other things like pay as little as possible, I can't have principles any longer, I have no choice... I am a slave

Wed, 01/12/2011 - 18:36 | 871443 owensdrillin
owensdrillin's picture

Fair enough Racer but what is the real cost of these cheaper items when the debt is going up 4 billion a day in order to subsidize all the people who are not working due to outsourcing.

Lower the tax rates and give these corporations some incentives to bring the money and the jobs back.

If the government had any fucking backbone it would:

1. cut payroll taxes to zero for all new hires for all companies for the next five years.                                                                                            

2. lower the corporate tax rate to half of what it is and allow all offshore money to come back with no tax implications whatsoever.

3. mandate that 30% of all new vehicles run on natural gas and provide incentives to switch gas stations, manufacturing, and existing vehicles to run on this basically unlimited domestic fuel. The jobs from this project alone would fix the unemployment rate within two years.

4. get real about the use of nuclear power and forget about solar until the technology is there. If the money for fuel is constantly leaving, there will be no long term recovery.

5. jail half those cocksuckers in New York.

Wed, 01/12/2011 - 19:00 | 871499 impending doom
impending doom's picture

1. If payroll taxes are cut to zero then wages would go down by exactly that much.

2. Corporations who keep money offshore pay taxes?

3. These jobs would be filled by H1b visa holders who work for half pay.

4. Fuel is still valued in dollars, so no real value leaving there.

5. Only half?

Wed, 01/12/2011 - 19:33 | 871576 nufio
nufio's picture

wages have to come down in the so called high paying jobs for businesses in the US to be competitive. who in their right might would start a business employing americans at 10X the cost of a worker abroad.

especially in IT where its so easy to oursource. H1B visa numbers are going to come down a loooot when companies realize they dont even need to pay $ salaries when they can videoconference to an office in India/China and pay them 1/5th the salary at no significant overhead costs or loss in productivity.

To all the arguments that foreign workers are not as competent as American workers, I dont see any statistical difference in the company I am working in.

To top that companies in India/China  can tap the top 0.5th percentile for the same salary they pay in the US to tap the top 10th percentile.

I think globalization at least in the tech space is inevitable and there is no option but for the american tech worker to reduce their expectations on wages.

 

 

Wed, 01/12/2011 - 19:40 | 871592 impending doom
impending doom's picture

I would also add that often these days there isn't an equivalent American worker. In my field, US kids stopped getting the appropriate scientific B.S. M.S. and Doctoral degrees decades ago. They are unhirable at any price because they do not exist. Now, I would argue that this was deliberate because our universities used to crank them out like they do mass comm and psych majors...

Wed, 01/12/2011 - 20:05 | 871634 cosmictrainwreck
cosmictrainwreck's picture

just for fun: your field is........? and how many other such can you name?

Wed, 01/12/2011 - 20:43 | 871709 impending doom
impending doom's picture

Pharmaceutical R&D, and I'm afraid I don't understand the second question. How many other such what? Scientific fields? Believe me, the institution I work for is stridently opposed to hiring research personnel for whom English is a second language; in fact there is an informal competition among the C-level for the "most outspoken racist" award... They simply have no other choice. Your mileage may vary.

Wed, 01/12/2011 - 20:47 | 871714 impending doom
impending doom's picture

I forgot to add that my company is located on the campus of a top-tier state university where we hold job fairs each semester. We just don't have much use for mass comm/education/psych majors.

Wed, 01/12/2011 - 21:12 | 871758 cosmictrainwreck
cosmictrainwreck's picture

Sorry... yeah, I meant other fields. Made me think of petro engineers for example, as I've heard growing shortages there. Just curious. Maybe your situation cuts across just about all sci/tech disciplines (except IT, of course). Side note: Years ago, I figured we were in for some deep shit (someday) when I found out all those geniuses in software, etc. were designing f**ing video games. So this is what it's come to...?

Wed, 01/12/2011 - 21:51 | 871851 impending doom
impending doom's picture

Yeah, sadly some of the smartest 20-somethings I know work in the "interactive media" field. Even more depressing is the fact that more than one has been recruited into military logistical planning simulation because of the skillset overlap...

Thu, 01/13/2011 - 04:18 | 872426 StychoKiller
StychoKiller's picture

Video game skillz are paying off for Predator drone remote pilots -- it's all good! </sarc>

Wed, 01/12/2011 - 18:13 | 871363 Sudden Debt
Sudden Debt's picture

Most electronics have a build in chip that brings down efficiency at a certain age.

A LCD TV = +-8 to 10 years

Computers =  5 to 6 years

Cell phones = 2 to 3 years

...

economic growth models are a bitch he?

In 1980 there where 2,5 billion people

In 2011 there will be 7 billion people.

And still demand isn't growing enough to keep the model alive.

 

Wed, 01/12/2011 - 18:17 | 871378 LawsofPhysics
LawsofPhysics's picture

damn those finite resources for everything (building, transporting, using, eating etc.)

Wed, 01/12/2011 - 18:24 | 871392 Sudden Debt
Sudden Debt's picture

Imagine 2030 and imagine the population goes X3 again.

21 BILLION PEOPLE.

21.000.000.000

Imagine there would be a Mc Donalds Cheesburger day and everybody ate 1 burger.

Mc Donalds make 21 billion in 1 day.

And there would be needed a constant river of cola to wash it down.

So logistics are the future there to.

Oil consumption X3 at least in the next 30 years

Energy demand X3 at least in the next 30 years

 

Yeah... all will be fine :)

 

Peaks and tipping points are a bitch.

but let's all ignore it untill the year 2029.

Wed, 01/12/2011 - 18:32 | 871427 bunkermeatheadp...
bunkermeatheadprogeny's picture

Imagine all the people. John Lennon:

http://www.youtube.com/watch?v=DCX3ZNDZAwY

Wed, 01/12/2011 - 20:05 | 871631 Slow learner
Slow learner's picture

 

 

 

 

 

 

 

Thu, 01/13/2011 - 04:21 | 872430 StychoKiller
StychoKiller's picture

Hear ya!  The four horsemen are in the bunkhouse right now, loading up on pancakes, eggs and bacon.   Soon it'll be time to saddle up and ride!

Wed, 01/12/2011 - 19:04 | 871508 duo
duo's picture

it's leaking electrolytic capacitors that self destruct between 1-3 years (depending on the warranty).

Wed, 01/12/2011 - 18:08 | 871352 Racer
Racer's picture

Wikipedia should be updated in the file about 'Slavery in the US' to include Debt Slavery Final Chapter 2000 to 2010 phase to complete the entrapment of the population with further ongoing edition of the New Debt Slaves website. With roots of course in the early 1900s FED manifestation and the insidious spread of the tentacles

Wed, 01/12/2011 - 20:34 | 871692 Terminus C
Terminus C's picture

Add the page.

I bet it'd last less than 12 hours before it was removed.

Wed, 01/12/2011 - 20:35 | 871693 Terminus C
Terminus C's picture

I should look before I post...

http://en.wikipedia.org/wiki/Debt_bondage

 

Wed, 01/12/2011 - 18:10 | 871360 Milton Waddams
Milton Waddams's picture

Welcome to the future, where industrial automation replaces human labor. A global society where 99.99999999% of the wealth is owned by 0.00000000001% of its inhabitants Where pools of private capital are in possession of the mechanisms of production while protected by a large military apparatus and scores of sycophantic bureaucrats. Everyone else left with one of two choices: destitution or servitude.

Wed, 01/12/2011 - 18:15 | 871373 LawsofPhysics
LawsofPhysics's picture

Ah, now throw in the pandora's box of technology that become's self aware.

Wed, 01/12/2011 - 18:16 | 871376 anony
anony's picture

Thank you, Mr. Proteus.

Wed, 01/12/2011 - 20:07 | 871637 PalmiticGlycerin
PalmiticGlycerin's picture

I think tthis is what you're describing:

 

http://www.youtube.com/watch?v=ML1OZCHixR0

 

 

Wed, 01/12/2011 - 22:59 | 871989 robobbob
robobbob's picture

hey, what's with linking to that PC censored version that skips the whole part about what man does with his new found consciousness? or do the PTB don't want anyone getting any funny ideas?

 

Wed, 01/12/2011 - 23:03 | 872002 PalmiticGlycerin
Wed, 01/12/2011 - 20:37 | 871697 Terminus C
Terminus C's picture

You forgot death as an option.

Freedom fighters bitchez... (aka terrorists)

Wed, 01/12/2011 - 18:12 | 871367 anony
anony's picture

The U/E rate and U/E population not working will NEVER reverse their upward trends.  We have reached Peak employment some 5-10 years ago depending on which crock of poo you choose to disbelieve.

Now we will have many more millions of people who will not be able to find work each and every year. And our open borders may soon be abandoned by border guards and fences torn down when Mexicans can no longer find jobs here to send pesos back there.

The government continues to lie about inflation to avoid the addition to expenses that Cost of Living raises command. Social security payments haven't seen an increase in two years and the part deductible for medicare has increased both for Part D and the part of the Soc Sec payment. 

New ways of getting to the people what they need to survive will become increasingly necessary as the extension of Unemployment Comp has been extended to 4 years, eventually it will become permanent like the dole in the U.K.

 

 

Wed, 01/12/2011 - 18:13 | 871368 LawsofPhysics
LawsofPhysics's picture

Want jobs?   Buy American!  One has to wonder if you could and actually survive however.  Sounds like something ZH needs to look into.

Wed, 01/12/2011 - 18:24 | 871394 Cdad
Cdad's picture

QE2 cannot supplant a free market economy in creating jobs, opportunities for wealth, freedom, industriousness....or ANYTHING!  Any high school student [in a nation with a better education system that ours] could tell you this.

QE2 is now, and shall always be, a colossal failure.  It is only a matter of how expensive the effort is before it is abandoned.  It is only a question of how much damage is done by the unintended consequences that are falling all around us now before more reasonable thinkers prevail. It is left for us to question how long we want to struggle in the wake of its passing.

The notion that this Ivy League college professor is not aware that his QE2 efforts cannot succeed is idiotic.  What is especially troubling is that this apparently very naive[or very corrupt] professor is conducting his operations through the criminal syndicate known as Wall Street, the folk that are responsible for lighting the crap candle known as the financial crisis of 2008.  Brilliant.

I continue to believe that the only way to overcome all of the many layers of folk that have failed us...is to simply defund them by closing your wallet...until they are all starved of revenue...and go home.

Wed, 01/12/2011 - 20:10 | 871645 pvzh
pvzh's picture

is to simply defund them by closing your wallet...

which is not possible since they can print as much money as they need

Wed, 01/12/2011 - 20:30 | 871681 Cdad
Cdad's picture

Chairman Bernanke will not be allowed to print money indefinitely. In fact, I believe his reign will come to an end much sooner than most people suspect.  Additionally, the mass printing of money will meet the point of diminishing returns/dollar value.

If the people's confidence is not restored, there is nothing the Fed, the Federal government, or Wall Street can do to stop an eventual date with price discovery.

So my comment stands.  It is not intended to be an instant fix...but a cultural change that will slowly impact various criminal and/or incompetent elements within the US.  As well, I think it would be good for Average Joe to simply step back and evaluate the vacuous nature of the America culture in these modern times.

And with "Z Day" coming...you  know, it's time to get prepared, anyway.

Wed, 01/12/2011 - 21:36 | 871800 ToddGak
ToddGak's picture

If the Bernank stops printing money to buy debt, who will fund the US Government?

Wed, 01/12/2011 - 21:51 | 871850 pvzh
pvzh's picture

Nobody. Game is over.

Wed, 01/12/2011 - 21:12 | 871756 velobabe
velobabe's picture

april is coming U P^ don't pay taxes, federal or state. that's the campaign, default mortage don't pay april fraud due date†

imagine?

Wed, 01/12/2011 - 18:27 | 871403 Stevm30
Stevm30's picture

Then again - think of all the hard working bankers who now not only don't have to sell their third homes in the Virgin Islands, but are considering buying a vacation home in Aspen with their bonus checks.  That can't be bad for the economy can it?

Wed, 01/12/2011 - 18:34 | 871433 buzzsaw99
buzzsaw99's picture

Yellen like a felon.

Wed, 01/12/2011 - 19:28 | 871561 bugs_
bugs_'s picture

she be gellin'

Wed, 01/12/2011 - 18:43 | 871459 putbuyer
putbuyer's picture

Does that equal 40 Million 50k jobs if they just hired people to watch TV?

Wed, 01/12/2011 - 18:47 | 871463 RobotTrader
RobotTrader's picture

Just more ammo for these guys to lean on to justify shorting a strong tape.

- Rosie

- The Elliott Woofers in Gainesville, GA

- Paul Farrell, Michael Pento, and assorted naysayers on CNBC

- Nouriel Roubini, Nassim Taleb, and all the acedemics who rely on fundamentals only

- Karl "This Can't Go On" Denninger, Mish, and all the bear bloggers.

- Eric King and his guests forecasting "The Endgame" for the financial system

- Tom O'Brien, David White, Larry Pesavento at TFNN.com

- General Jim at jsmineset.com, now nowhere to be found after $1,650 was missed by $300.

-  Virtually 90% of the posters on the popular financial blogs, of which Zero Hedge remains at the top of the list.

And I left a bunch of guys out.

Wed, 01/12/2011 - 18:59 | 871495 Sophist Economicus
Sophist Economicus's picture

...Or, all the more reason to buy gold and silver and watch the REAL wealth spread between equities and PM gap even higher in 2011...

 

Wed, 01/12/2011 - 21:15 | 871765 realitybiter
realitybiter's picture

1650 gold is a bit closer than dow 36k jackwagon

Wed, 01/12/2011 - 18:47 | 871465 Jerry Maguire
Jerry Maguire's picture

I don't know what the solution to this is.  Maybe the Fed should buy shares of Facebook and drive the valuation to $1 trillion.  Now it's a measly $50 billion.

It's hard to imagine how learning each other's "relationship status" is going to save the economy, but at this point we may as well give it a shot.

http://strikelawyer.wordpress.com

Or maybe just buy gold and hold on.

Wed, 01/12/2011 - 18:57 | 871476 uno
uno's picture

getting disability benefits is the new growth industry, it's as difficult to get as qualifying for medical marijuana in California.   

here is what a web site (disabilitysecrets.com) says about it:

Let's address the two SSD-SSI issues separately and in detail: winning disability and winning disability faster.

 

It's gone from being a safety net to being used as a pension by too many people.

 

Wed, 01/12/2011 - 20:48 | 871718 Seasmoke
Seasmoke's picture

i think i am going to sign up for this pension plan, heard if you willing to put the time in, its very likely you will be accepted

Wed, 01/12/2011 - 18:54 | 871481 Sophist Economicus
Sophist Economicus's picture
How The Fed Spent $2 Trillion And In Exchange We Got 650,000 Temp, Leisure And Retail "Jobs...

 

You forgot to add Harry's booming business  selling Fur Lined Sinks...

Wed, 01/12/2011 - 18:55 | 871485 cunningtrader
cunningtrader's picture

Americans keep asking the same old question, how to fix ? Simple, TAKE BACK YOUR PRINTING PRESSES FROM THE PRIVATE FED CARTELS. It's in your constitution, only the sheeple elected have the right to assign and print. Your problem is, the bankers own your political and military leaders as well. Tyler can keep reporting  the bearish side (and his assumptions are correct btw), but it means naught, if "those damned machines" can't be turned off. Then make the painful adjustment, of only buying domestically made widgets for a decade or two, trust me, this will fuck china in the blink of an eye, they rely on and have priced in western consumer spending for ever, they have no domestic consumer spending power of any meaningful size, due to iPads being built for  proverbial bags of rice.

Wed, 01/12/2011 - 18:56 | 871488 Yen Cross
Yen Cross's picture

 I have a solution. Dedicated, hard work! hard=fun for me! Investing in non -tangibles (yes you heard from me)  Is completely retarded. Tim uhhh Timmy. Retrain and school. Unions are ok, within REASON! What in the heck are we saving all of our resources for? We know how to recycle! I think Ford on that 04-06 bank plan worked out well.

 

I saw that deal coming. I also see what is coming. Ill! I'm a independant leaning conservative Gen -x ER!

 

 

Wed, 01/12/2011 - 19:04 | 871492 bob_dabolina
bob_dabolina's picture

There is a massive correction coming that is imminent particularly affecting the small caps and the oil complex.

I don't care if you believe it or not but I closed all my commodity positions today and took huge exposure MOC in TZA, SDS, and DUG with the rest being split between dollars and francs.

Good luck trading!

Wed, 01/12/2011 - 19:09 | 871517 Yen Cross
Yen Cross's picture

chf vs usd or eur . Sell your swissys against usd and eur and buy kronas. sek/usd and sek/eur. You will thank me! G20 and comodity based. (oil). Short the base pairs.

Wed, 01/12/2011 - 19:30 | 871560 bob_dabolina
bob_dabolina's picture

against euro

Wed, 01/12/2011 - 19:15 | 871532 Miramanee
Miramanee's picture

I have been talking about this for a while:

 

http://www.youtube.com/watch?v=qi0X3wwuS-8

Wed, 01/12/2011 - 19:23 | 871547 TruthInSunshine
TruthInSunshine's picture

Dan,

Good, good stuff.

 

Wed, 01/12/2011 - 19:22 | 871546 HamyWanger
HamyWanger's picture

650,000 temporary jobs???

Our home decor business just hired 14 young persons in the Twin Cities. And these are permanent.

We're making record sales month after month, and I know some people in the business who observe the same results.

The consumer is spending, no matter what the doomers say.

Wed, 01/12/2011 - 19:23 | 871549 TruthInSunshine
TruthInSunshine's picture

You sell urinal cakes, 'Harry.'

 

Admit it.

Wed, 01/12/2011 - 19:27 | 871558 HamyWanger
HamyWanger's picture

No, we sell furniture, lamps, carpets, yoga mats, LuluLemon outfits, etc. And I can swear on my life that the dollars we make are flowing like a waterfall.

Wed, 01/12/2011 - 19:55 | 871616 Rainman
Rainman's picture

Mrs. Rainman just took delivery today on a sectional sofa deal that is as big as a Bayliner cabin cruiser....... $3.5k. I am convinced now that the women under my roof must go into a rehab spending lockdown of some sort. They just don't get it with their shopping addiction. They must submit to a higher power.

Wed, 01/12/2011 - 20:37 | 871696 buzzsaw99
buzzsaw99's picture

I saw that exact unit at Thomasville and almost bought it myself. Let me guess, L shaped, brown leather, so comfortable you could just die in it? I barely got out of the store without it. I envy you.

Wed, 01/12/2011 - 21:46 | 871832 ToddGak
ToddGak's picture

If it wasn't for the ladyfolk and their insatiable desire for whatever garbahge is popular at the moment, the economy would REALLY be in deep doodoo.

Wed, 01/12/2011 - 21:31 | 871795 lizzy36
lizzy36's picture

Harry what are you paying your 14 young people? benefits?

Lulu outfits, bullshit. Lulu only sells products through corporate stores.

Some cheap shit brand equivalent.....absolutely.

Wed, 01/12/2011 - 20:32 | 871685 Hulk
Hulk's picture

Don't eat the big white mint...

Wed, 01/12/2011 - 19:47 | 871601 asdasmos
asdasmos's picture

I think you are experiencing a 'green shoot' on a massive almost empty plain.

Wed, 01/12/2011 - 20:06 | 871632 Astute Investor
Astute Investor's picture

Our home decor business just hired 14 young persons in the Twin Cities. And these are permanent.

Can these "young persons" as you call them afford to buy the crap you sell given their pay?  A permanent job paying $8 / hour doesn't buy squat.  That's the real point of the whole article.

Wed, 01/12/2011 - 19:37 | 871584 SwingForce
SwingForce's picture

The Fed spent $2 TReeeeeelion and all I got was this lousy T-shirt HmmmM!

Wed, 01/12/2011 - 19:39 | 871589 miker
miker's picture

All of the above. 

Look, the US is sliding back to the real world, slowly but surely.  Our peak after WWII is over with.  Our parents have enjoyed the very best prosperity.  Easy employment, benefits and free, top notch health care in their long retirements. 

Don't compare your life to theirs.  You'll be angry and frustrated.  Compare your life to the 95% in the rest of the world that scratches a meager life, day-to-day....then you'll be thankful for living in this country.....in spite of our slow decline. 

Save everything you can.  Earn what you can but don't give up your life doing it.   Live simply.  That is where we're headed.

Wed, 01/12/2011 - 21:18 | 871773 Bastiat
Bastiat's picture

Exactcly miker.  Baby boomers left SOL by the "Great Generation" who put us on the road to bankrupcy, fiscal and spiritual, with the military/industrial complex, the "Great Society" and the Vietnam War.

Wed, 01/12/2011 - 19:41 | 871594 Yen Cross
Yen Cross's picture

  Good on ya Hamy! Zero Hedge T-Shirts don't rust Monkey(swingforce) Boy! ED

Wed, 01/12/2011 - 19:44 | 871595 Everybodys All ...
Everybodys All American's picture

Don't forget a good number of those "private" health care jobs are as a result of Obama care mandates. In other words more government jobs. Totally unsustainable. What a friggin mess.

Wed, 01/12/2011 - 20:19 | 871665 David99
David99's picture

FED is criminal

Abolish FED & Demolish Fraud Street today

Wed, 01/12/2011 - 20:27 | 871678 Jerry Maguire
Jerry Maguire's picture

I'm trying to talk with Ellen "Web of Debt" Brown.  Nice lady.  Clueless.

http://strikelawyer.wordpress.com/2011/01/12/talking-with-ellen-brown/

Follow the link if you're interested. 

Wed, 01/12/2011 - 20:27 | 871679 The Alarmist
The Alarmist's picture

And according to the Bankers (Barclays in particular), it is time we stop expecting them to apologise for the damage they have wrought.

Wed, 01/12/2011 - 20:28 | 871680 David99
David99's picture

Elite white-collar criminals must be heavily punished

Wed, 01/12/2011 - 20:31 | 871684 blindman
blindman's picture

the financial system is a scam, an illusion, a delusion and all bullshit political

servitude..   fiat baloney.  spirit, water, food, shelter in varying order

depending on your local environment or milue. 

somethings are transient and relatively plastic, some are less so.

what is important now is expression,  communication, intelligence

and intellect.  you can't eat it but ... some day, as a result, you will

eat.  and you can imagine how this is a communal thing as people

do tend to break bread.  etc..

notice the energy that is ubiquitous

Wed, 01/12/2011 - 21:04 | 871747 buzzsaw99
buzzsaw99's picture

Wrong title. The banksters like high unemployment. The fed spent $2T and wall street got $500B in bonuses and stock options. That's your title.

Wed, 01/12/2011 - 21:11 | 871755 red2893
Wed, 01/12/2011 - 21:12 | 871757 realitybiter
realitybiter's picture

heckuva job, benny

Wed, 01/12/2011 - 21:16 | 871770 Bear
Bear's picture

I gave up my full time job reading ZH for a part time night job cleaning toilets at Walmart ... A Life Fulfilled

Wed, 01/12/2011 - 21:19 | 871776 cranky-old-geezer
cranky-old-geezer's picture

"Creating jobs" is the standard cover story for blatant in-your-face looting the American people.

If you say it with a smile most Americans believe it.

Wed, 01/12/2011 - 21:25 | 871783 Yen Cross
Yen Cross's picture

  How's the weather down south Bear? Still working the h-4 candles? You taught me a thing or 3. That is, assuming you are the the forex guru Bear? Wallmart or old Smartfart?

Wed, 01/12/2011 - 23:35 | 872114 the grateful un...
the grateful unemployed's picture

the rich have more servants to serve them?

Do NOT follow this link or you will be banned from the site!