Wake Up Media, the BLS Has Been Fudging Its Numbers for YEARS

Phoenix Capital Research's picture


Pop Quiz…


How does the US economy add 800K+ jobs during a month in which employment taxes and consumer spending FALL?


Answer: magic! Or actually the BLS lied... again.


It’s truly staggering to see this brazen a lie out in the public. Even by the BLS’s standards (which has been massaging the hell out of its jobs data for years) this latest monthly employment number was a stretch.


Of course, no one bothers explaining just how fraudulent the data was, because that would mean questioning the credibility of the BLS. Instead the whole issue becomes one of politics in which the talking head idiots spar about nothing of import, in yet another attempt to distract the masses from the fact that the Government openly lies about inflation, employment, GDP data and just about everything else.


Pop Quiz #2: How many media talking heads even read a BLS announcement before forming an opinion of it?


Answer: Reading requires actual thought. It’s better to just spout an opinion without facts. That way you’re never wrong because… you’re just stating your opinion!


At some point one would think that participants in a Democracy would call the Government to account for the fact that the powers that be repeatedly urinate in our faces and tell us it’s raining… but one would of course be greatly overestimating just how little people actually care about anything that matters.


For those of us who actually enjoy thinking… let’s extend this inquiry. In the last year, we’ve seen the Obama administration ask Russia to delay its missile shield proposal until after the November election. We’ve also seen it ask Europe to hold things together until after the election. Heck it’s even asked the military to delay firing people until after the election.


Just what is being promised in exchange for this?  We’ve already seen QE 3 announced which is a clear quid pro quo for the EU’s help in maintaining things until after November. What else is coming down the pike? What other promises and back-scratches will we be giving the Russians and the EU?


I don’t have an answer for this. But I know it’s not anything any of us will actually have voted for. Just like TARP and ObamaCare, which the majority of Americans didn’t want, whatever is dished out to others to help keep things calm until after November won’t be anything we have any say in.


And rest assured, we’ll all be worse off for it.


At Phoenix Capital Research, we have a host of FREE Special Reports devoted to helping readers prepare for various economic eventualities including what happens when the world wakes up and realizes that the entire "recovery" was in fact one epic lie. These reports are all 100% FREE and can be downloaded at www.gainspainscapital.com


Best Regards,


Phoenix Capital Research






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Clowns on Acid's picture

ok...so we know they are fudging figures... we know that they are buying MBS and UST's...are they buying the ES as well?

Meesohaawnee's picture

when will fleecman ever discover what a compele tool he is. Steve everyone knows you get a paycheck from the fed. get off the air already. "Rick why do you think we got to those numbers?" you fucking paid off idiot. what did you really think he was gonna say what Rick knows it was on national tv and have men with ear pieces and black helicopters come by?

OC Money Man's picture


All great magicians employ misdirection to create miraculous illusions, leaving their audiences stunned and confused.  President “Houdini’s” miraculous creation of 873,000 jobs in the month of September magically drove down the national unemployment rate from 8.1% to 7.8%, just as absentee voting begins.  The trick left Republicans and economists equally befuddled, since the last time a similar monthly jobs increase appeared was June of 1983 when the economy was growing at an astronomical 9.3% annual rate.  But looking behind Barack the Great’s smoke and mirrors reveals that the President’s highly controversial July suspension of the “workfare” requirements that welfare recipients must actually do real work to be counted as employed seems to have dramatically reduced the U.S. Labor Department’s unemployment rate.    

The Bureau of Labor Statistics publishes two monthly surveys that measure employment levels and trends: the Current Population Survey (CPS), also known as the “household survey”, and the Current Employment Statistics (CES) survey, also known as the “payroll survey”.   With most economists estimating the current U.S. economic growth at an anemic 1.5%, it seemed ludicrous that the Obama Administration could report a monthly gain of 873,000 jobs in the household survey, just short of the all-time record 900,000 jobs gain in June of 1983, when under President Ronald Reagan the economy was growing 6 times faster at 9.3%.  In fact, the same household survey report showed a recessionary slide of 195,000 jobs in July and another 119,000 decline in August.  Adding to the suspicions regarding the credibility of the household survey, the more reliable “payroll survey” that tracks the rate of jobs growth through IRS withholding data was unchanged from last month.

After the report, the internet “blew-up” with conspiracy theories that the employment numbers must have been consciously manipulated by the U.S. Labor Department to help the President’s reelection odds.  Even the highly-respected former CEO of General Electric, Jack Welch, tweeted: “Unbelievable jobs numbers..these Chicago guys will do anything..can’t debate so change the numbers.”

Like all spell-binding illusions, the real set-up for this phenomenally great employment report was engineered back on July 12, 2012, when the Obama Administration announced an Executive Order that eliminated President Bill Clinton’s highly-praised workfare reform that required welfare beneficiaries to get real job in order to continue to receive payments.  According to former Clinton Advisor Dick Morris, in 1996 Senate Republican Majority Leader Trent Lott stated: “I don’t want anyone going to a truck drivers’ school that advertises on a matchbook cover and avoiding work.”  The Republicans included 42 U.S.C. § 615(a)(2)(B) in the Temporary Assistance for Needy Families (TANF) reform legislation to make sure every states’ welfare recipients were required to work in a real job and also inserted section 607 to prevent future secretaries of Health & Human Services (HHS) from waiving the real workfare requirement.

With 1.4 million of the two million families receiving TANF payments not actually in real jobs, Obama took heat for changing the work rules.  The Heritage Foundation warned:

in the past, state bureaucrats have attempted to define activities such as hula  dancing, attending Weight Watchers, and bed rest as ‘work.’ These dodges were blocked by the federal work standards. Now that the Obama administration has abolished those standards, we can expect ‘work’ in the TANF [welfare] program to mean anything but work.

Presidential candidate Mitt Romney, a former governor, howledthe linkage of work and welfare is essential to prevent welfare from becoming a way of life.” Republican Congressional leaders screamed the waiver was a “blatant violation of the law” by allowing states to substitute “vocational educational training or job search/readiness programs” to “count as well” in meeting the work requirements.  

But as the heat dissipated and the campaign news cycle moved on, President Houdini was positioned to triumph.  No one knows just how many of the up to 1.4 million TANF welfare recipients have now been re-designated by the state welfare agencies as “employed”, but isn’t it just magical how 873,000 people started working last month.  Is Barack Obama really the new Ronald Reagan?

Brother Sebastian's picture

Why should the media wake up when to do so would effectively cut off their advertising revenue?

Bob's picture

Free market reality.


It's the advertisers who pay the bills . . . which makes the viewers parasites.  Of course they tailor the content to their desires, just like any product.  How is this not the obvious consequence of free market theology applied to the media? 

Just a rhetorical question, realizing the acolytes can explain anything as a heinously clever corruption of the utopian ideal that would somehow otherwise prevail. 

Lost Wages's picture

TV "journalists" don't form opinions. They read teleprompters. You could put up there, "I have a yellow baby with AIDS," and they would read it. If they want to go anywhere in life, they need to mimic whatever the CFR tells them to mimic.

atoast2toast's picture



Friday’s Jobs Report: More Lies From “our” Big Brother

By Paul Craig Roberts



madcows's picture

Doesn't the headline indicate this would be an article about the jobs data?

Please add Phoenix Capital Research to the list of spammers.

ptoemmes's picture

Answer: Reading requires actual thought. It’s better to just spout an opinion without facts. That way you’re never wrong because… you’re just stating your opinion!


Meesohaawnee's picture

wake up media? come on..why? they are on the freakin payroll. Traditional media revenue is gone with the dinosaur. They are forced to be the ad departments IMHO. Ponzis need a salesperson. Guess what?

XtraBullish's picture

So Graham, when do I cover the shorts you recommended in 2009 with the S&P at 666 and Dow at 7,500? 

Shelby Moore III's picture

Did Graham Summers really advise entering short positions at that 666 price on S&P and did he not ever cover those shorts since then? I don't think you are serious?

You post on everyone of his articles at ZH saying the same thing basically, which is that he has been short more often than not, and your opinion is he has always been wrong. But is that factual?

The facts I think is he was short and booked profits as everything crashed in 2011 and again in 2012. But he was hugely mistaken recently about gold, food, and QE3/EU OMT. He covered those wrong positions recently with about -20% losses across the board.

He has since gone long gold, food, and only very cautiously reentered just a very few short positions, since he admits he can't see the exact timing of the coming implosion.

I am wondering what your perspective is? Do you really believe that QE makes markets go up? Then after $trillions in QE globally, why is the S&P still below the level it was before 2008? Why is the Chinese and some PIIGS stock markets at roughly 30% of their peak price before 2008?

I agree with being long gold and necessities like food, because QE is a debasement. But the evidence is that despite QE, the global economy is deflating.

P.S. I agree that Graham is sometimes lacking sufficient research on the facts, or at least doesn't share the facts with us. So I do doubt the quality of his opinions.

AT's picture

GS is an idiot. I was a subscriber and his newsletters are just recycled newspaper articles with little analysis except whatever marketing "investment theme" he is running at the moment.

Shelby Moore III's picture

I am a subscriber and I agree he recycles his subscriber advisories (without the stock tips) and publishes them publicly after a few days or a week or so. He is definitely promoting subscriptions. And afaics he lied about not accepting any more subscriptions to his Private Wealth Advisory, in order to motive people to hurry up and subscribe.

And I agree that some of his analysis is shallow. Yet sometimes he does pass along analysis that I wasn't finding, at least not before I started reading ZeroHedge. I can't quite say he is an idiot, but I can agree he lacks sophistication.

I don't mind calling him on his shameless and continuous promotion here, but isn't that the point of getting to the top banner of ZH? You have to pay to be there I assume? ZH has to make a profit.

And I don't mind calling him on his dearth of facts.

But I do take issue with saying that he was still short since S&P at 666. That isn't factual.

And I also strongly disagree with those that say QE is going to take stocks up forever, and that think hyperinflation is coming. The evidence is clearly the opposite. It is impossible to get hyperinflation of the reserve currency. Hyperinflation is always a stampede away to a safer currency. How can we stampede when there is no other safe fiat? Rather there will be a coming bubble in gold, along side a collapsing consumer, and chaos in every direction.

It is not realistic to get a stampede from dollar to gold. That would be a Dark Ages. A bubble yes, with maybe 5 - 20% of worlds capital moving into gold before it tops. But no way to get all the people using gold as their daily currency. Forgetaboutit.

Supernova Born's picture

The intellectually unbearable lightness of bullshit.

fijisailor's picture

So does this mean that Bernanke will now call off infinite QE3?

Middle_Finger_Market's picture

Money is like coupons: worth 'x' amount but it always says on the back actual worth 0.00'x' as in commodity worth. 

Middle_Finger_Market's picture

The only time CB will stop printing money now is when either: choas rules the land due to hyperinflation and complete deterioration of living standards, fiat money becomes as worth as much of that which it is printed on = 0.

Widowmaker's picture

The perpetual wealth destroyer only stops for death.  Even then it will run until out of ink or paper or both.  The only certainty is destruction.

NuYawkFrankie's picture

Re BLS has been fudging Employment-Numbers for years... 



...and Washington has been fudge-packing  the public even longer.


Tommy Gunner's picture

What I can't understand is why any administration would be attempting to delay the collapse until after an election.

Because doing so will only put the blame on them if they get re-elected and the collapse occurs.

Who wants to go down as the man who was on watch when the world collapsed?

Vendetta's picture

P.S.  They don't care as long as they are elected

Shelby Moore III's picture

TPTB via their mass media will blame Europe's implosion and domestic political gridlock (lack of fiscal cliff compromise) for the coming economic collapse after the election.

What TPTB don't want is for the coming collapse to be a topic of discussion during the election debates, etc.. That might illuminate the elephant in the living room of middle-class America, and cause them to panic and become aware. Imagine if Romney and Obama were debating during an economic implosion and did not address the implosion and causes for it. Instead they can debate about impossibilities and pie-in-sky projections of growth.

The ECB OMT and Fed's QE-Infinity3 will do nothing to stop the implosion of the economy. None of that money is going to reach the consumer-- it never did. The notion that QE can bring back consumer demand is nonsense. The QE does not end up at the consumer, but rather with the rich. The only thing that reached the consumer were the "cash for clunkers", "first time home buyer rebate", and the massive ramp up in forever unemployment benefits, food stamps, and medicare. The governments would have to accelerate deficit spending massively to keep up with the debasement being given to the rich by the central banks. But instead the governments are trying to reduce deficits, so this is causing the consumer to die and we see the PMIs imploding globally.

Now we have the fiscal cliff, Obamacare (rationing and eugenics), ECB austerity, and China checkmated on further fixed investment.

The speculative bubble is the massive $trillions debt bubble that has pumped up global demand, and it is popping now. Europe is requiring deficit reductions in all the weak countries, raising taxes in France, causing radically rising rates of unemployment and cratering levels on the PMIs. This is going to accelerate with the ECB printing plan, because countries have to increase austerity in order to get a bailout.


The politically insoluble fiscal cliff looms for the USA on Jan. 3, which is contracting the economy now, due to future planning of corporations. Not to mention the rationing and extra costs of Obamacare coming into force.

We are heading into some serious stagflation, and it becomes evident that the central bank actions are not reflationary for the consumer, then the markets are going to implode at the same time inflation is going to skyrocket as this will give the central banks the political excuse to increase debasement.


Got gold and silver yet?

Note, I expect a (at most -10%) correction in gold and silver just before or after the election, possibly coincident with a significant (-20%) stock market decline (at least risk off), so I would delay gold and silver purchases. But I am not giving investment advice, just sharing my opinion.

Shelby Moore III's picture

The last presidential debate is Oct. 22:


So perhaps we might not see a crash before then. Although a financial assets crash could come before that, because this event wouldn't be instantly reflected in the public's consciousness of their personal situation.

(see the chart on the right-side of the page at the above link, which shows the progression of the popularity of Romney vs. Obama since early 2011)

The S&P500 crash due to S&P downgrade of USA, came in at the start of August 2011, and notice how Romney gained more popularity than Obama by about Sept and Oct.. Also note how at that time in 2011, for Romney to gain, Obama had to decline; whereas, we see them both gaining recently, which means undecided voters are becoming decided voters. People will increasingly tuneout to researching the issues of the election, and focus more on promoting their choice (from thinking to cheerleading mode).

Element's picture

Few days ago I had a US citizen tell me in a private discussion that if Obama was not re-elected there would be real harm and social chaos in the US, and we could even see it turn into serious protesting and riots.

I said; "You mean like Occupy Wall Street under Obama's first term?"

He didn't even answer.  Apparently I didn't 'get' his point.

Shelby Moore III's picture

Obama represents a security blanket to some 40 - 45% of the population the depends on the government for welfare. He also represents hope for class-based warfare (redistribution from rich back to the underpriviledged). It doesn't matter that this isn't true, only that a significant % of the population is under this magic spell delusion.

So yes, an Obama loss might trigger something like the LA or London riots but on a national-scale.

The responsible people that want a smaller government are not as radicalized as those who are fighting what they believe to be a class war. Although the Tea Party is more visible now, they are not irresponsible enough to burn down things. The real pent up anger is lurking amongst the Obama supporters. Don't you remember that YouTube of the lady who said, "and thank God, now I won't have to pay my rent any more".

These people are very dangerous and TPTB is positioning them to unload their anger on the rest of us, right about the time they kill the financial system and unload massive hurt and chaos in every direction.

Don't be fooled by the recent calm. It is the eye of a massive hurricane, that has been gaining strength since 2008.

andrewp111's picture

Maybe the political campaigns hired 800K low-wage part-time workers to register voters, drive them to the polls, put up signs, etc....  Sort of like the blip we had from Census hiring in 2010.

Middle_Finger_Market's picture

The only time the masses matter (anywhere) is during election time. After the elections who gives a fuck. After the elections the truth will become so fucking crystal clear and thats when the action starts bitchez. Grab your drums we're going to war.

“Rebellion to tyranny is obedience to God.”-ThomasJefferson's picture

The Dep't of Labor and its BLS was supposed to release the non farm payroll report on the first Friday of each month at 08:30 precisely.  Credentialed journalists were allowed this important info and were not supposed to release info early.  This report obviously meant a great deal to a great many people regarding economic wagering.  

Turns out these fucktards at BLS let in non credentialed hedge fund employed hacks, gave them the answers to the tests, the keys to the bank vaults, month after month, year after year, and did nothing about it.


The USA is as corrupt and putrid as any socialist, third world, banana republic, island nation as anyone can conceive.

Those in charge who were derelict in their duty must be held accountable.  These scumbag enablers, and all those proven to have taken advantage must be hunted down and terminated in an orderly manner. Beheadings in public would be most desirable.

hawk nation's picture

Media whores will say anything for a paycheck. Much of america has lost their moral barometer[wont go further discussing the lack of spirituality in our society] and the result is the decline of our society

cjbosk's picture

Totally agree that the report was nothing short of unicorns however....where's the evidence that the numbers were factually "cooked". I think they're inconvenient, but at the end of the day, I have yet to see evidence that these are acutally baked numbers.

Just saying.

Shelby Moore III's picture


I was surprised that ZeroHedge did not publicize this fact below. Please someone get this information to ZeroHedge editors.

Evidence is that BLS no longer gives us the actual survey data:


John Williams from ShadowStats.com explains that the BLS no longer releases the actual survey data, and instead is now using a black-box formula for month-to-month recalibration of seasonal adjustments (monthly recalibration of seasonal unadjustments causing numbers to jump all over the place), so the data is totally arbitrary and can be anything. We have no way to analyze the data, because we are not getting the original data.

So now can see the Fed has tied QE3 to unemployment, but now unemployment is now meaningless and a black-box (no transparency on actual survey data). :rolleyes:


Element's picture

That's ok, William Black pointed out in 2009 that the major banks don't even know what their NET liabilities and Debt levels are at any given moment.  Black said that if any bank does not know their own NET balance-sheet position at any given moment, and does not honestly report it, then this is a flashing red light that such a bank should be shutdown immediately.

Apparently this doesn't apply to zombies though.

Buyer beware.

Widowmaker's picture

Obviously, Black fails to understand the fantasy in "mark to fantasy."  Is it fantasy if "someone" believes it -- just one?   How about the millions (47%) paid to believe it?

It's all fiat/fraud, even the Bernanke bux in Black's pocket.  

Might as well let those stupid enough to support fraud by using those bux to put their own pictures on the bills.

Black is just another of countless affirmations that "money" is dead because confidence is loooong gone.


"We saved the banks but lost America"   Traitor-Tim Geithner, US Secretary of Treason


No Tim, rest assured you have done neither.

sun tzu's picture

Other than the fact that employment taxes fell during a month where the number of jobs increased by 800k?

That's like saying you had a 10% raise while your paychecks are getting smaller

uncle_vito's picture

One of the reported numbers is clearly wrong, but the BLS did not bother to not report it.  They figure that a wrong number or flyer will get corrected at the next employment report.   They should decide not to report clear flyers or numbers way outside of what would be expected.

Curt W's picture

New Questions on the Household survey.

1.  Did you sell more than one item on E-Bay or Craiglist last month?

2.  Did you have a garage/yard sale last month?

If you answered yes to either, you had a part-time job in Retail.

Part-time for financial reasons.

Vendetta's picture

Don't forget the question about grilling a hamburger, if you did you worked in manufacturing.

Shelby Moore III's picture

Correct. Not reporting the survey questions and actual data from the survey, means they can get any result they wish and even claim they were not lying.

The difference between a lie and a manipulation of the truth is the color of the lie?

Zero Govt's picture

a manipulation of the truth is a lie, colour pallet not required

DeFeralCat's picture

I think a rogue phone algo called the same replacement referree 800K times.

hannah's picture

i feel invincible when i wear my magic underwear...

Element's picture

Gods get skidmarks too.

nmewn's picture

PFM...Pure Fucking Magic.

Buck Johnson's picture

They might as well say magic, because they are making up everything.

nmewn's picture

Unicorns farts, hopey changey emotions, with the little curly mercury filled lightbulbs to light our way Forward with the promise of eighteenth century windmills right around the corner to trim our whiskers my friend.

One of the biggest cons ever pulled over on the government educated plebes around us is happening right before our eyes...and we've got a front row seat to it all, its a wonderful time to be an American ;-)

Zero Govt's picture

yes fab time to be a Yank

shuttered out of having a foreign bank account as the IRS thinks you're a terrorist or tax dodger, a nice way to shutter global trade of US small biz and siphon it all into the Big Retailers-Corpse monopolist matrix

so left only to navel gaze as the US Govt and its sponsors cook the books "All Is Well" as it wrecks everything left standing of the US economy after the 2008 debt debacle

anyone not seeking a foreign passport is a sitting duck at a turkey shoot ..quack, quack