Bureau of Labor Statistics
In the previous installments of this series, we discussed the hidden and often unspoken crisis brewing within the employment market, as well as in personal debt. The primary consequence being a collapse in overall consumer demand, something which we are at this very moment witnessing in the macro-picture of the fiscal situation around the world. Lack of real production and lack of sustainable employment options result in a lack of savings, an over-dependency on debt and welfare, the destruction of grass-roots entrepreneurship, a conflated and disingenuous representation of gross domestic product, and ultimately an economic system devoid of structural integrity — a hollow shell of a system, vulnerable to even the slightest shocks.
"Seasonally adjusted housing starts for February plunged by one of the largest amounts in the post-crisis period. The chart below shows a subset of the February non-farm payroll report, residential construction jobs. Seasonally adjusted these jobs increased by 17,200 in February, the most in two years (Feb 2013 was greater) and the second most in four years. So while economists are blaming the weather for the plunge in housing starts, residential construction jobs were fairly robust in February. This makes no sense."
In the first part of this article series, we discussed the true state of global demand, along with the unstable situation within numerous indicators from exports to retail. Swiftly falling global demand for raw materials as well as consumer goods is an undeniable reality. This is a distinct problem in terms of the U.S., which has been, up until recently, the primary consumption driver for much of the world. As we will show, U.S. demand is about to fall even further into the abyss as real unemployment and personal debt take their toll.
There is no mystery anywhere to be found in the fact that US retail sales don’t follow the jobs trend. Not if you look at what kind of jobs they are, let alone at all the other made up and manipulated numbers that are being thrown around about the US economy. The only mystery is why everyone persists in talking about a recovery. That recovery will never come, simply because all 90% of Americans do is pay for the other 10% to get richer. There are many other factors, but that all by itself makes a recovery a mathematical mirage.
There is a tremendous denial by analysts and economists currently of the deteriorating economic underpinnings.
With all deference to Dr. Richard Fisher, the surging dollar is not good for either the economy or ultimately a stronger labor market. This is particularly the case when the dollar is only stronger because the rest of the world is on the brink of recession and or deflation. The negative impact of a surging dollar in a weak economic environment will more than likely outweigh any positive inputs for the U.S. consumer. Time will tell, but the evidence is mounting that the we are likely closer to the end of the current economic cycle than the beginning.
Dear Federal Reserve, we have just solved the biggest riddle that your "smartest economist PhDs in the room" have been unable to figure out for the past year...
How can the government be telling us that we are nearly at “full employment” when so many people can’t find work? Could it be possible that the government numbers are misleading? It is our contention that the official “unemployment rate” has become so politicized and so manipulated that it is essentially meaningless at this point.
The consequence will not be eternal virtual prosperity, but rather a wrecked accounting system for the operations of civilized human life. We’ve stepped across the event horizon of that consequence, but we just don’t know it yet. Our bet is that we start feeling the effects sooner rather than later; and when it is finally felt, all the Kardashian videos in this universe and a trillion universes like it will not avail to distract us...
The divergence is not just between the US and Europe/Japan, but also China.
The US population grew from February 2008 to February 2015 by 16.8 million persons, or a 5.5% increase in total population, and on a net basis, not a single one of those 16.8 million persons got a FT (full time) job… while a net 2.7 million were lucky enough to get a (or multiple) PT (part time) job.
The growing dilemma we now face is private police officers outnumber public officers (more than two to one), as the corporate elite transforms the face of policing in America into a privatized affair that operates beyond the reach of the Fourth Amendment. What we’re finding ourselves faced with is a government of mercenaries, bought and paid for with our tax dollars, all the while claiming to be beyond the reach of the Constitution’s dictates. When all is said and done, privatization in the American police state amounts to little more than the corporate elite providing cover for government wrong-doing. Either way, the American citizen loses.
Who should you believe? Record stock market valuations and consensus spouting, highly paid economists who tell you all as is well...or oil, negative economic indicators, and your own eyes that this is just one more artificial boom desperately trying to run from the inevitable bust?
Beginning at the time of Disney World’s grand opening in 1971 when Magic Kingdom tickets cost only $3.50, Magic Kingdom ticket prices have increased at a compound annual growth rate of 8.04% – nearly double the U.S. CPI’s compound annual growth rate of 4.13%. The U.S. CPI no longer accounts for the cost of maintaining the same standard of living in America. The Magic Kingdom Price Inflation Rate provides a much more accurate view of real U.S. price inflation.
Most Americans just assume that the economic numbers that we are being given accurately reflect reality. That is why it is so refreshing to have men like Gallup CEO Jim Clifton step forward and tell the truth. Don’t be fooled by all the happy talk from the mainstream media and from politicians like Barack Obama. The truth is that the percentage of U.S. adults that do have “good jobs” is actually far lower than 44 percent.