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People Not In Labor Force Soar To Record 91.8 Million; Participation Rate Plunges To 1978 Levels

Tyler Durden's picture




 

Curious why despite the huge miss in payrolls the unemployment rate tumbled from 7.0% to 6.7%? The reason is because in December the civilian labor force did what it usually does in the New Normal: it dropped from 155.3 million to 154.9 million, which means the labor participation rate just dropped to a fresh 35 year low, hitting levels not seen since 1978, at 62.8% down from 63.0%.

And the piece de resistance: Americans not in the labor force exploded higher by 535,000 to a new all time high 91.8 million.

The jobless, laborless recovery continues to steam on.

 

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Fri, 01/10/2014 - 09:52 | 4319053 RaymondKHessel
RaymondKHessel's picture

<-- BULLISH FOR BONDS AND STOCKS

<-- BULLISH FOR STOCKS AND BONDS

Fri, 01/10/2014 - 09:53 | 4319057 Shizzmoney
Shizzmoney's picture

DOW 99999999999999999999

Fri, 01/10/2014 - 11:56 | 4319527 Snoopy the Economist
Snoopy the Economist's picture

How about Dow 9 x 10^9999999999

Fri, 01/10/2014 - 09:53 | 4319058 disabledvet
disabledvet's picture

"With Taper rolling in RIGHT ON TIME." Yes We Can foodstamp the nation!

Fri, 01/10/2014 - 09:55 | 4319075 d edwards
d edwards's picture

Isn't this just sickening? Disgusting? And the liars and propagandists never mention this, do they?

Fri, 01/10/2014 - 09:59 | 4319093 negative rates
negative rates's picture

Gettin ready to qualify er ya?

Fri, 01/10/2014 - 09:53 | 4319061 benbushiii
benbushiii's picture

Maybe QE doesn't work?

This is crazy, they have been pumping and manipulating the system for 4 years, and the economy sucks.  More QE has been spent on:

1.      Stock buybacks—earnings look better—no new jobs

a.      Senior execs make lots of money on options

2.      Companies buy technology—no new jobs

3.      People cannot earn a decent return on savings – no new jobs

a.      People earn less whether by job income or savings income – no spending, no more jobs

4.      The actual cost of needed goods has gone higher – no new jobs

Fri, 01/10/2014 - 09:57 | 4319081 disabledvet
disabledvet's picture

Oh they're pumping and dumping all right. "It took Rome 500 years to Fall...New York Five Minutes."

Fri, 01/10/2014 - 10:01 | 4319102 LawsofPhysics
LawsofPhysics's picture

"Maybe QE doesn't work?" -

Ya think?  There is a really simple explaination for all this.

Simply put, you can "create" all the credit/debit/money you want out of thin air, unfortunately, in the real world you need calories (energy) available for consumption.  If those calories are not avialable to burn, you won't get shit done or be able to create anything of real value.  7+ billion, all competing for a better standard of living (and growing), meanwhile the calories available for consumption are what they are.  Pretty clear to most of us which direction your standard of living is heading...

Fri, 01/10/2014 - 10:54 | 4319299 czardas
czardas's picture

This energy problem has been finessed many times in the past with rising efficiency.  We know that energy is available (sun, seas, wind, electricity in the air, magnetic field, movement, etc) if it could be harnessed more efficiently and effectively.  I've debated this before with the Peak Oil crowd (a view I agree with by the way) and discovered that many are hostile to improvement.  Some seem frightened we may find a way out of our mess without reverting to the "old" ways.  I am convinced those competing billions will - through efficiency, miniaturization, technologies in the pipe line - have access to all the energy they need.  

Fri, 01/10/2014 - 11:03 | 4319330 LawsofPhysics
LawsofPhysics's picture

Not shit sherlock, the problem isn't a lack of energy, it is a lack of energy available for human consumption.  You do realize that all that sunlight does in fact provide the energy required to do many, many other essential chemical reactions in the biosphere.  Yes, there is tremendous energy out there in the universe, unfortunately, the biosphere is currently limited to earth.

 

Fri, 01/10/2014 - 11:26 | 4319407 czardas
czardas's picture

what exactly do you mean by human consumption - food, heatm energy available through technolgical means or what?   I am not sure why, if humans can produced more energy, it cannot be used for human consumption which is a function of an organism's efficiency.

Fri, 01/10/2014 - 11:55 | 4319525 El Vaquero
El Vaquero's picture

Oil has given us unprecedented mobility.  Those liquid distillates we get from oil are mighty convenient.  They can run tractors to plant enormous fields.  They can run my car so that I can be at any store, house or business of my choosing in town in under an hour.  They can propel aircraft that could have me in London before day's end.  They can also run the vehicles that take coal from the mines to the power plants.  Hell, if you're going way out in the boonies, you can strap a couple of jerry cans onto the back of a jeep and carry extra liquid distillates. 

 

While there are potential alternatives, none of them are nearly as convenient.  You want to run your car off of natural gas?  Cool.  But you'll either have a giant, very bulky tank, or you'll have less range, and no jerry cans.  Plus you have to compress natural gas, which takes energy.  Build power plants of whatever type and run trains off of electricity.  Fine, but that's not the same degree of mobility as being able to hop in a car and go wherever I want anytime I choose, and our current economy and infrastructure is built around that kind of freedom of mobility.  We could synthesize liquid fuel for aircraft, but that is highly inefficient, and requires a lot of energy from another source. 

 

No, we have not been working on alternatives, even if they be less convenient to anywhere near the degree needed, and we haven't been putting the infrastructure in place to widely use those alternatives. 

Fri, 01/10/2014 - 11:17 | 4319371 TuPhat
TuPhat's picture

@czardas,  You forgot nuclear.  It can be done cleanly, efficiently and safely.  You also don't seem to realise that Sun, seas, wind and "electricity in the air" (lightning?) are all different forms from the same source.  You can only get so much from sunlight and since it also grows our food I don't want it all used up for other things.

Fri, 01/10/2014 - 11:20 | 4319385 Quinvarius
Quinvarius's picture

It has been conclusively proven human beings are not able to safely do nuclear.

Fri, 01/10/2014 - 11:29 | 4319418 czardas
czardas's picture

Guess we should also ban matches, knives, cars, planes and guns since "it has been conclusively proven human beings are not able to safely"  burn, cut, drive, fly or shoot

Fri, 01/10/2014 - 11:58 | 4319534 Buckaroo Banzai
Buckaroo Banzai's picture

We need to do Thorium nuclear.

Fri, 01/10/2014 - 13:12 | 4319906 SAT 800
SAT 800's picture

Obviously. But we don't have rational national leaders; we have buffoons talking about global warming to get their new tax in place. We're so far from having a functional patriotic government it hurts my head to think about it. Nothing rational or productive is going to get done, you can depend on that.

Sat, 01/11/2014 - 10:59 | 4322549 piliage
piliage's picture

Bang on. 100% correct.

As of 2012, it was off the table in the US ARPA-E funding. The Chinese however, are all over it.

Maximum output right now is 100mg otherwise you create too much heat and get meltdown risk, but otherwise, yes, a great potential technology that the US is going to piss away to the Chinese.

Fri, 01/10/2014 - 12:37 | 4319713 El Vaquero
El Vaquero's picture

Actually, we could.  Start by shutting down all of the nuclear plants that are in earth quake zones and other zones where there are likely to be natural disasters that would cause structural damage.  I'm sure I don't need to tell you why having a nuclear plant on the San Andreas fault is a bad idea, or why putting Fukashima where it is was a bad idea.  Then, for the next step, assume the worst possible meltdown is going to occur, and build a containment shell that will contain the ensuing hydrogen explosions, or put it far enough underground to contain a very bad day.  After that, don't put the plants right on any bodies of water, especially not ones capable of transporting uncontained waste to other places. 

 

And as Buckaroo Banzai stated, we should be looking into thorium.  While you do need a fissile material to start a thorium reactor, you do not need to enrich Th-232.  It is also theoretically possible to use thorium reactors to burn up a lot of the existing waste that is just sitting there.  I'd like to see tests that confirm that, but a lot of this stuff is fairly well understood. 

 

If you want to see something interesting, look up the oklo reactor.

Fri, 01/10/2014 - 12:42 | 4319736 PrintemDano
PrintemDano's picture

Deaths as a direct result of nuclear energy, other than Chernobyl, which was a Communist run disaster, not a normal civilian nuke plant, is very close to zero.  You are quite WRONG.  But keep spewing your ignorance.  I find it entertaining.

Fri, 01/10/2014 - 21:57 | 4321608 Lost Word
Lost Word's picture

How many uranium miners have died from their jobs?

How many people will die from Fukushima?

Much more than "very close to zero".

Sat, 01/11/2014 - 11:05 | 4322556 piliage
piliage's picture

How many die each year internationally in coal mining, oil drilling, and gas exploration? Thousands. Nary a peep is heard about this.

There is real risk, and perceived risk. Nuclear, statistically, is much safer than other forms of energy exploration.

Fri, 01/10/2014 - 10:14 | 4319157 GolfHatesMe
GolfHatesMe's picture

Obviously the Fed is not doing Enough QE  

Fri, 01/10/2014 - 10:22 | 4319170 trader1
trader1's picture

QE has worked to repair certain corporate balance sheets and increase general equity prices,

not to create new jobs.

QE may have prevented a worse situation than no QE, but that's debatable.

Fri, 01/10/2014 - 11:31 | 4319428 CPL
CPL's picture

4 years?  It started the first day someone was in debt to the system.

Fri, 01/10/2014 - 13:36 | 4320032 MeBizarro
MeBizarro's picture

It did initially work and had a very pronounced effect.  Anyone who tells you different is selling an idealogical agenda.  The issue is that it has gotten less and less effective over time due to several reasons and that never worked quite as robustly as some advertised it to be in terms of job creation. 

Fri, 01/10/2014 - 09:54 | 4319064 RiverDrifter
RiverDrifter's picture

At least there was growth seen in the F.S.A. - so we got that goin' for us, which is nice.

Fri, 01/10/2014 - 09:55 | 4319065 Dr. Engali
Dr. Engali's picture

Unemployment benefits run out citizen? Well you are now an un-person. Have a nice day.

Fri, 01/10/2014 - 09:59 | 4319089 disabledvet
disabledvet's picture

Bah. There are twenty more Detroits where that came from. It's all good.

Fri, 01/10/2014 - 14:13 | 4320240 Future Jim
Future Jim's picture
 
Should America Save Detroit?

A lifetime of education from America’s media elite, such as MSNBC, CNBC, NPR, PBS, the NYT, the Washington Post, CBS, NBC, ABC, and CNN, have given me the foundation and principles that empower me to think for myself and thereby figure out why we can’t let Detroit go bankrupt.

Detroit is too big to fail.

Republicans are turning Detroit into a plantation.

Don't blame the victims of greedy capitalists.

“To attack Detroit is to attack black.”

Only racists would oppose a bail out.

We are all in this together.

It takes a village (a government).

We have to move forward.

Somebody has to be in charge.

There is a Constitutional mandate to promote the general welfare.

Government rightly has the power to implement any good idea.

When we're all on the same page, everyone benefits.

Everyone has a right to good healthcare.

Everyone has a right to a living wage.

Everyone has a right to good nutrition.

Just think of it as reparations for slavery.

Do it for the children.

Do it for Trayvon.

What if it were Obama's kids?

What if it were your kids?

If it helps just one child, no cost is too great.

In a free-market, who would save a dying child?

It would be bad if George Bush did it, but we can trust Obama.

Obama is The One.

Obama! Give us our orders!

Only racists distrust Obama.

Don’t let Republicans make a liar out of Obama.

The alternative is chaos.

The alternative is anarchy.

What would Jesus do?

After all, Jesus would be a Democrat.

Detroit has done everything right. It has been ruled by Democrats and unions for 51 years, and ruled by black mayors for 49 years. It even has the 3rd highest income tax of any city in America. Therefore, the problems of Detroit must be part of a vast right wing conspiracy. As an example, consider how the internet has allowed the spread of right wing hate speech from people like this guy. He says stuff like:

No man has a right to the fruits of another mans labor.

Government dependency is the new plantation.

When we’re all free to pursue our own interests, everyone benefits.

In a free-market, children wouldn’t be dying.

It takes a village – but not a government.

Nobody has to be in charge.

The legitimate purpose of government, is to minimize government.

Sooner or later, socialists run out of other people’s money.

Individualism made America great.

The world is the result of our individual choices.

America is the least racist country in the world.

The myth of Obama is busted.

Progressivism = Liberalism + Fascism

Progressivism violates the Soul of Humanity.

You can instantly become the person you want to be.

Freedom is the Promise of Reality.

Now can you see the problem? These are the ideas on which America was founded, and we all know that America was founded on slavery. Such right wing hate speech is what scared all of the white people into leaving Detroit. It is like something out of Atlas Shrugged, in which the most productive people in America left the system and formed their own society. Therefore, the solution must come from the federal government because, while it is easy to leave a city, it would be much harder for people to leave the country, and Obama’s DHS would stop them if they tried – and rightly so.

What about when it is no longer Obama’s DHS? I know it is hard to imagine how America could elect anyone who is not a Democrat ever again – but that is why we need global governance, so that wealthy individuals cannot escape their debt to their country and to the world.

As you can see, a lifetime of education from America’s media elite have given me the foundation and principles that empower me to think for myself.

Fri, 01/10/2014 - 19:57 | 4321315 Oldwood
Oldwood's picture

You gave me a headache. I understand sarchasm but it made me a little ill.

Fri, 01/10/2014 - 20:56 | 4321467 Future Jim
Future Jim's picture

Yes, progressives are quite nauseating with their cognitive dissonance, smugness, and fascism.

Sat, 01/11/2014 - 08:47 | 4322403 GetZeeGold
GetZeeGold's picture

 

 

You hit that side with Pelosi, Reid and Obama......and we'll hit the other side with Christie, McCain and Boehner.

 

The poor bastards won't know what hit them.

Tue, 01/14/2014 - 09:11 | 4330239 fedupwhiteguy
fedupwhiteguy's picture

very good post! thanks. speaking on Detroit, i really like the stories about whole blocks being razed and turned back into productive farms.

Fri, 01/10/2014 - 10:23 | 4319193 Agent P
Agent P's picture

Not to worry, being an un-person qualifies as a disability, so you just hop onto a different government transfer program.  Now what do you say you and me roll down to the Walmarts in our scooter carts and SNAP up some Cheetohs and shit.

The work ethic that built America is dead.  We need a serious dose of some bad tasting medicine to get things going in the right direction again. 

Fri, 01/10/2014 - 10:37 | 4319233 dobermangang
dobermangang's picture

Not really an un-person, but a political pawn.  A talking point for the complicit main stream media to say how great things are going in the economy because the unemployment rate is falling.  Stalin would be proud of our media.

Fri, 01/10/2014 - 12:44 | 4319753 LawsofPhysics
LawsofPhysics's picture

"Well you are now soylent green" - fixed.

Fri, 01/10/2014 - 09:55 | 4319070 Son of Loki
Son of Loki's picture

This has to be uber-bullish.

Fri, 01/10/2014 - 09:55 | 4319073 NOZZLE
NOZZLE's picture

My cousin makes 25 cents shoveling old peoples sidewalks,  you can too, goto shoveloldgeezersidewalk.com and learn of the amazing opportunities in the newObama economy. 

Fri, 01/10/2014 - 10:10 | 4319136 IdeasRbulletproof
IdeasRbulletproof's picture

I just typed that in and there was only a picture of Paul Krugman laughing. Am I in the place?

Fri, 01/10/2014 - 10:22 | 4319187 Clever Name
Clever Name's picture

Pauper! My cousins neighbors sister in law makes $400k from home!

Fri, 01/10/2014 - 12:05 | 4319571 Meat Hammer
Meat Hammer's picture

.gov employees can work from home now??

Fri, 01/10/2014 - 13:01 | 4319846 NevadaMirage
NevadaMirage's picture

Yes they can, and more are being actively encouraged to do so through legislation.

 

http://www.telework.gov/Telework_Enhancement_Act/Guidance/index.aspx

Fri, 01/10/2014 - 14:48 | 4320404 Black Warrior W...
Black Warrior Waterdog's picture

This should do wonders for their productivity.

Fri, 01/10/2014 - 13:27 | 4319985 FredFlintstone
FredFlintstone's picture

Escort service??

Fri, 01/10/2014 - 10:38 | 4319235 TeamDepends
TeamDepends's picture

Thank you global warming for this exciting opportunity.

Fri, 01/10/2014 - 09:56 | 4319077 LawsofPhysics
LawsofPhysics's picture

We will rally, simply because it's Friday, if nothing else.  You clowns still arguing about a "market" on Wall Street?

LMFAO!

Fri, 01/10/2014 - 10:13 | 4319153 BeetleBailey
BeetleBailey's picture

Clowns resent that you used them as a reference....they have the Circus market cornered....THVM

Fri, 01/10/2014 - 09:56 | 4319079 Shaten
Shaten's picture

any chance to get this chart but starting in 1945?

Fri, 01/10/2014 - 18:24 | 4321075 Withdrawn Sanction
Withdrawn Sanction's picture

Here ya go.

http://research.stlouisfed.org/fred2/series/CIVPART?cid=32443

Not quite 1945, but it tells an interesting story just the same.  A story when 2 paychecks were not necessary, and so the LF participation rate was far lower.  Now with so many hands dipping into the pockets of the poor working stiffs, 2 paychecks are barely enough AND the jobs are going in the crapper.  Aint life grand?

Fri, 01/10/2014 - 09:58 | 4319087 corporatewhore
corporatewhore's picture

Who cares? I'm too busy listening to rjkelly and lady gaga.

Alternatively I can hear refrains from Happy Days are Here Again, the sky above is clear again, so we'll sing a song of cheer again

Fri, 01/10/2014 - 09:58 | 4319088 B2u
B2u's picture

Where can I get free health care?

Fri, 01/10/2014 - 10:07 | 4319127 GetZeeGold
GetZeeGold's picture

 

 

Same place as 10 years ago......the emergency room.

Fri, 01/10/2014 - 11:15 | 4319366 Temporalist
Temporalist's picture

Back in the day hospitals were charitable organizations and they refused care to those who were wealthy enough to afford to pay a doctor.  Of course there was no shortage of cheap asshole who tried to get free care instead of paying.

Fri, 01/10/2014 - 13:41 | 4320063 MeBizarro
MeBizarro's picture

Not true unelss they are a religiously-affliated/owned hospital and the second part is utter BS.  Tons of US hospitals closed during the Great Depression and there were large portions of the country especially in rural areas that didn't have a hospital located within 50 miles.  It was why Congress passed Hill-Burton in '46 along with to better deal with some of the returning WW2 veterans and to serve their needs locally better. 

Fri, 01/10/2014 - 18:20 | 4321072 Temporalist
Temporalist's picture

I suppose you think that hospitals started in the US in the last century instead of the couple of thousand years prior to that.

 

Fri, 01/10/2014 - 18:25 | 4321077 MeBizarro
MeBizarro's picture

Hospitals a few thousand years ago?  There isn't a word in Latin, Greek, or Chinese that represents hospital.  It is from a later Latin word that basically meant 'guesthouse' and had little to nothing in common with a modern hospital except patients/people who didn't normally live there woudl temporarily reside there. 

Fri, 01/10/2014 - 20:44 | 4321432 Temporalist
Temporalist's picture

You are right, it wasn't Greek or Latin or Chinese...it was Persian.

Bimaristan https://en.wikipedia.org/wiki/Bimaristan

 

Fri, 01/10/2014 - 10:09 | 4319135 jekyll island
jekyll island's picture

B2U, 

It's probably better to not get sick at all.  

Fri, 01/10/2014 - 19:40 | 4321257 Five8Charlie
Five8Charlie's picture

I'll drink to that.

Fri, 01/10/2014 - 10:10 | 4319137 mayhem_korner
mayhem_korner's picture

 

 

Try any of your local "We Buy Gold" outlets.  I bet you can get sum there.

Fri, 01/10/2014 - 13:15 | 4319920 SAT 800
SAT 800's picture

In Canada, Mexico, France, Germany, Sweden, almost any civilized country.

Fri, 01/10/2014 - 09:59 | 4319095 Jason T
Jason T's picture

we must work for our own account.  unlimited employment available working for own account.  

 

Fri, 01/10/2014 - 10:00 | 4319097 thismarketisrigged
thismarketisrigged's picture

o dont worry, these numbers r not real according to most of the fuckers on cnbc.

 

of course its only real and it only matters when they announce 215,000 jobs added, than it all counts.

 

futures should be getting hammered, instead they just creep back up to pre announcement, bc of course this is very bullish and all bad news is priced in and the economy is going at full throttle.

 

fucking comical and so predictable.

Fri, 01/10/2014 - 10:07 | 4319122 lunaticfringe
lunaticfringe's picture

Bad news cannot be accepted as bad. It is good. Pressure will be applied to the new FED puppet...to forego the grand taper. This of course will be seen as good news and markets may rally another 500. Maybe twitter stock will hit 75.

Fri, 01/10/2014 - 10:41 | 4319254 TeamDepends
TeamDepends's picture

Printing some "DOW 18000" hats as we ride the wave.

Fri, 01/10/2014 - 10:01 | 4319103 Rehab Willie
Rehab Willie's picture

At some point depopulation will be the only solution.

Fri, 01/10/2014 - 10:16 | 4319165 semperfi
semperfi's picture

don't think they aren't working on that - fukushima ?

Fri, 01/10/2014 - 13:16 | 4319924 SAT 800
SAT 800's picture

It's already a required part of stabilizing the world; it's just a question of how it'll come about.

Fri, 01/10/2014 - 10:03 | 4319106 the not so migh...
the not so mighty maximiza's picture

hey , count zero , you will have zero unemployment (heyyy, doing the fonz pose)

Fri, 01/10/2014 - 10:03 | 4319107 lunaticfringe
lunaticfringe's picture

I can almost hear that lapdog Liesman putting lipstick on this pig...except well...I vowed never to turn that shit channel on again.

Fri, 01/10/2014 - 10:07 | 4319129 BeetleBailey
BeetleBailey's picture

mute it...get an old Tee Vee and set it up to shoot darts at the cnbc douchebags....pundits....assholes....good data stream...but the mute button my brother....(c:

Fri, 01/10/2014 - 10:04 | 4319116 EuropeanBankster
EuropeanBankster's picture

Cramer just gave a comment on CNBC: "These numbers are actually good for stocks" ... what a moron!

Fri, 01/10/2014 - 11:52 | 4319510 teolawki
teolawki's picture

Ah yes. The Bear Stearns expert.

Fri, 01/10/2014 - 13:09 | 4319889 jomama
jomama's picture

just seeing that idiot's face makes me want to punch babies.

Fri, 01/10/2014 - 10:05 | 4319119 fockewulf190
fockewulf190's picture

Just bought more phyzz.  Only sane thing to do when your dealing with this epic shitstorm.

Fri, 01/10/2014 - 10:05 | 4319120 1stepcloser
1stepcloser's picture

Yellen just had a QE gasm... Job number rubbed the QE spot just right

Fri, 01/10/2014 - 10:14 | 4319156 semperfi
semperfi's picture

thanks for making me just throw up my sausage mcmuffin !

Fri, 01/10/2014 - 11:18 | 4319373 Temporalist
Temporalist's picture

I'm pretty sure the sausage mcfrauden is what made you throw up the sausage mcfluffin.

Sat, 01/11/2014 - 01:10 | 4322072 CultiVader
CultiVader's picture

Or was it a QEeef?

Fri, 01/10/2014 - 10:06 | 4319121 Dubaibanker
Dubaibanker's picture

Wake me up when we reach the 'Summer of '69'! ;)

Fri, 01/10/2014 - 10:41 | 4319252 IridiumRebel
IridiumRebel's picture

if we are still here as a species by 2069 I will be surprised.

Fri, 01/10/2014 - 10:09 | 4319124 Kina
Kina's picture

Aaand the jobs that people do have....well part timers the new normal..... compare paid hours worked by the population now to total paid hours worked in 2007 .. inflation adjusted.

 

Unemployment rate much much worse than just a horrible participation rate suggests.

Fri, 01/10/2014 - 10:06 | 4319126 mayhem_korner
mayhem_korner's picture

 

 

Apparently, in Ivy League math classes (from whence all-knowing Fed and BLS leaders hail), they teach you that the key to fudging ratios is to tinker with the denominator.  Who would have known!  It smacks of this:

http://dilbert.com/strips/comic/1998-12-12/

Fri, 01/10/2014 - 10:07 | 4319131 ak_khanna
ak_khanna's picture

Let me get this straight, more the people stop looking for jobs, the lower is the unemployment rate.

So all we have to do is wait till no one is looking for a job because no jobs are available, then according to the current method of calculation we will have full employment. The fact that participation labor rate will go through the floor will have no consequences whatsoever on the economy.

Politicians are best at barking crap. Economic calculations and interpretations are not exactly their strong points.

The true extent of slowdown in the world economy can be judged by the data points which are not subjected to adjustments by the government. Eg. Change in Electricity and Fuel consumption, Ratio of working population to the total population of a country, Miles driven, Baltic Dry Index, Change in commercial Rental Rates etc

www.marketoracle.co.uk/Article40231.html

Fri, 01/10/2014 - 12:28 | 4319668 Oldwood
Oldwood's picture

Bad is good. What is it you don't understand? less people employed and not looking for jobs is good, right? That has nothing to do with a bankrupt society. Wealth and prosperity do not come from work or productivity. Wealth is a state of mond and is relative. My shitty job just became better because you now have a lesser one. People are now free to pursue their life dreams of artistry or writing a book and not worrying about income, food or healthcare. Our Safety Net will now provide. Bad is good and losing your job is the best thing that ever happened.

Fri, 01/10/2014 - 10:08 | 4319132 Rising Sun
Rising Sun's picture

Of the 91.8M off radar, it would be interesting to know which firearms they possess and how must ammo stock they have.

 

 

Fri, 01/10/2014 - 10:38 | 4319241 IridiumRebel
IridiumRebel's picture
People are preparing for something. The latest Economist/YouGov poll shows that 39 percent of American households own guns, which represents a five percent increase over the number of gun owning households in 2012.

Throughout 2013, gun control proponents frequently dismissed the importance of empirical data on gun sales by claiming gun companies were simply selling multiple weapons to the same purchasers. But by showing that "nearly 4 in 10 American households have guns," the Economist/YouGov poll demonstrates that there was actually a broadening of the base of gun ownership last year.

According to the Washington Examiner, this increase in gun owning households marks a reversal of "the four-decade drop in household ownership" which began in the 1970s.

The poll found that 30 percent of gun owning households were Democrats, and 49 percent were Republicans.

http://www.breitbart.com/Big-Government/2014/01/09/Poll-Household-Gun-Ow...

Fri, 01/10/2014 - 12:14 | 4319619 Josey Montana
Josey Montana's picture

What if we treated firearms ownership like owning a job?

If more people foreswear guns, then the gunless rate goes down, right?

Seriously, people stopped hunting in the 1970s.  Junior got a job in hte city and had no need of a rifle.  Now junior has kids of his own and sees the Hordes advancing, so he goes out and get himself something in .40S&W to keep under the pillow.

Hunting rifles v defensive weapons.  Speaks volumes about the perceived threat assessment of the U.S.  And yes -- I bet Junior will get himself something nice in .308 for deer season, too, since he's down to 29hr/wk at the only factory left in town and need to feed those kids.

Fri, 01/10/2014 - 12:09 | 4319594 Josey Montana
Josey Montana's picture

Yes, it would be.

 

Grrrr...

Fri, 01/10/2014 - 10:10 | 4319140 ifishivote
ifishivote's picture

The GOP should hold a press conference. If they were smart they would tell America that there is no need to extend unemployment benefits. Simply state that with the unemployment rate continuing to fall there is no need to extend. After all, people must be finding jobs to have the number plunge the way it has. This would force Obama and the media to explain to the public that the only reason for the decline in the rate is because of the Participation rate.

 

I'm one of the newly unemployed. I got my first check last Wednesdays.

 

Fri, 01/10/2014 - 10:38 | 4319242 Blano
Blano's picture

Welcome to the club, I'm 4 months ahead of you.

Fri, 01/10/2014 - 11:21 | 4319392 F.A. Hayek
F.A. Hayek's picture

Hang in there. There are jobs if you attack the search and are relentless in the pursuit. Don't fall into the long term unemployment trappings.

Fuck you Obama!

Fri, 01/10/2014 - 10:11 | 4319144 trillion_dollar...
trillion_dollar_deficit's picture

-2.9 million y/y

Fri, 01/10/2014 - 10:12 | 4319145 Jack of All Trades
Jack of All Trades's picture

The Bernank is leaving at just the right time . . .

Fri, 01/10/2014 - 10:39 | 4319243 J J Pettigrew
J J Pettigrew's picture

Yep...he had an "exit" strategy all right....

moonwalk right out the back door...

Fri, 01/10/2014 - 12:07 | 4319578 Snoopy the Economist
Snoopy the Economist's picture

After announcing the taper of course. Now he can say "It wasn't my fault - I started to decrease QE before I left"

 

it's getting hard to count the number of POSs out there

Fri, 01/10/2014 - 10:12 | 4319148 Caviar Emptor
Caviar Emptor's picture

They dun gave up an gone fishin'!

How can this not be a sign of impending utopia?
A nation of pure consumption without actual production!

Answer to our problems: we'll flip burgers for each other and do each other's laundry

Fri, 01/10/2014 - 10:23 | 4319160 papaswamp
papaswamp's picture

Be interesting to see if Yellen pulls out the big gun and goes for huge injection Japanese or Zimbabwe style? Next month another 1 million should be added to NILF since EUC is expiring for a huge number. Watch for participation rate to degrade massively.....the NSA number was even worse.

Fri, 01/10/2014 - 11:02 | 4319326 Winston Churchill
Winston Churchill's picture

Talking of Zimbabwe.

Needed $12k cash for something today.Was trying to pull $5600 from two different accounts

at two different PNC branches.Even that ammount got the 3rd degree.

Plus now they have lowered the drive thru' window limit to $1500 in cash.

At the rate this shit is progressing 2014 is going to be very  interesting.

I'm going to be buying a lot of PM's today .Fuck the price.

Fri, 01/10/2014 - 12:44 | 4319748 Hongcha
Hongcha's picture

No third degree Sir Winston.  The clerk may think you owe him an answer but you do not.  And no one cares.  Tell him whatever you want.

Many (white American men, the last group to respect the old system) might ponder:

"Oh dear, if I don't respond to the bank clerk's demand for an explanation, might he mark my account and addend the e-mail he sends to the Mothership/NSA".

This is living in fear.  This beyond all doubt I refuse to do the rest of my days.  Nonstarter, lads.

Fri, 01/10/2014 - 12:54 | 4319804 Winston Churchill
Winston Churchill's picture

I lied of course, told her I was buying a kilo of crank.

Then I told her how I had cashed a cheque for 197k pounds thirty years ago with less questions.

Shut the bitch up.

My point was however ,exactly how are you guys still in the market ever going to get

fiat out of this closing loop system ?

 

Fri, 01/10/2014 - 20:06 | 4321345 Oldwood
Oldwood's picture

They are in the market because they believe they can beat it. They just know they can beat it, even though everyone knows its rigged. You bring up an excellent point but people in the financial markets see themselves much more of a player and a "winner" and don't saddle themselves with concerns about something as technical as actually getting your money out of the system. It is protected, it is being bailed by our government through the back door. They know this as it goes up at ever bad press release. But they don't know how to get it out. The whole economy could go into the dumper and they would be technically richer that Warren, but like trying to get your money out of the country, the costs may proved punitive.

Fri, 01/10/2014 - 10:18 | 4319172 semperfi
semperfi's picture

more people are catching on to:  work is for suckers

Fri, 01/10/2014 - 10:20 | 4319178 Carl Popper
Carl Popper's picture

This is typical after a credit hangover, a secular change that will last at least a generation.

People have realized they can live cheap and not work so much there is so much high quality second hand merchandise from demand pulled forward. Staple foods are plain, but cheap and healthy.

When pay and benefits so low and working conditions so stressful people are withdrawing and turning their attention and free time to other things, life's true priorities.

Mr Yellen cannot stop Kondratiev winters. It is a deep psychological change in the people, a revulsion and rejection of excess work and excess spending. Jump off that hamster wheel folks.

Fri, 01/10/2014 - 10:26 | 4319208 Caveman93
Caveman93's picture

Decided to "become" a stay at home father with my first child on it's way. Much more profitable and fullfilling to raise a child that can deal with this botched up world she'll have to survive in. I can promise you this, one day she'll understand the difference between money and currency. 

Fri, 01/10/2014 - 11:12 | 4319357 toady
toady's picture

I know this will sound retarded, but I 'decided' the same. In reality the decision was made for me by financial matters.

When I was made irrelevant by technology I tried a couple new things, cab driver, roofer, but I never made enough money to cover the daycare costs. If I did six 12 hour days in the cab I'd come close / break even on day care for three boys, but that just plain sucks.

Better to be Mr. Mom. We can even save some money on groceries with the garden & home cooking.

Sat, 01/11/2014 - 01:18 | 4322088 CultiVader
CultiVader's picture

Good on both of you men...Our kids need their fathers available to them, not out busting their asses to break even and feed the machine. I will be teaching mine to farm.

Fri, 01/10/2014 - 13:20 | 4319948 FredFlintstone
FredFlintstone's picture

You seem fairly enlightened and forward thinking for a caveman. I should know, bro.

Fri, 01/10/2014 - 22:05 | 4321629 Caveman93
Caveman93's picture

Please and thank you! Do we have an IM on this Zero Hedge Thingy? ;)

Fri, 01/10/2014 - 10:35 | 4319220 overmedicatedun...
overmedicatedundersexed's picture

carl wrote:

"It is a deep psychological change in the people, a revulsion and rejection of excess work and excess spending. Jump off that hamster wheel folks."

perhaps, it is the blood sucking regulatory and high taxes , that has people just giving up on risk taking..some may feel any wealth earned will be bled away to gov and friends of gov. this crop of pols and bureaucrats have the power to destroy anyone and give it all to friends ala kelo vs new london.

Fri, 01/10/2014 - 20:08 | 4321355 Oldwood
Oldwood's picture

I'm just old and tired.

Fri, 01/10/2014 - 11:23 | 4319262 dobermangang
dobermangang's picture

Yup.  Go galt.  Plant a garden.  Plus, there's lots of free interesting, classical books to read on your tablets.

Fri, 01/10/2014 - 11:44 | 4319460 RaceToTheBottom
RaceToTheBottom's picture

Carl, I believe you are correct.  I do most of my shopping at Goodwill and I am supposedly successful. 

It took generations for people to get over the great depression mentality.  This is probably going to result in a healthier view of the world, but now it is tough.

If there is any justice in the world, people will take it out on WS.

Fri, 01/10/2014 - 13:54 | 4320129 MeBizarro
MeBizarro's picture

It is largely due to demographics and people in their late 50s/early 60s simply exiting the formal economy from the data available last year through Q3.  The basic labor participation rate doesn't necesary provide you with any real insight.  It is just a number and the demographics of who is leaving that are gathered in other places is a lot more important.  Ditto the changes in employment by industry and full-time vs part-time employment.

Labor participation rate and unemployment number don't tell you much about the underlying trends of the economy. 

Sat, 01/11/2014 - 04:14 | 4322255 TheMerryPrankster
TheMerryPrankster's picture

but we have more than enough illegal immigration to counter balance retirement. most folks slipping through the porous border are young.

no one flees to el notre to retire, even gringos move south to retire.

what you seeing maybe influenced by demographics but its more a product of failed economic theories of Alan Greenspan and his circle jerk of brain dead intellectuals and pick pocket bankers. Fiat money backed by atomic weapons turns out to not be a viable economic model after all.

More fiat sir?

Fri, 01/10/2014 - 10:20 | 4319180 kw2012
kw2012's picture

I have it figured out. Previous months were not as rosy as the actual numbers. Now with year end and a perfect excuse (Polar Vortex) all the bad news and maybe some future losses were dumped in to December, clearing up 2014 for rosier mid-term election numbers.

Fri, 01/10/2014 - 10:49 | 4319196 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

And the punchline if they don't extended unemployment benefits they will call QE a success when the unemployment drops by more than a few percentage points more by all those people being shifted out of the labor participation rate. Farcical shit show indeed. The lie must be maintained at all costs.

Fri, 01/10/2014 - 10:26 | 4319202 Musashi Miyamoto
Musashi Miyamoto's picture

37.8% have Gone Galt

Fri, 01/10/2014 - 10:27 | 4319212 Caveman93
Caveman93's picture

New ICD9 code: 137.80 Patient has history of Galtness. 

Fri, 01/10/2014 - 11:09 | 4319275 Musashi Miyamoto
Musashi Miyamoto's picture

I'm thinking along the lines of a 301.7 subset. I'm sure they'll reach a consensus in the DSM-6 SRC

Fri, 01/10/2014 - 22:06 | 4321630 Caveman93
Caveman93's picture

Ahh a pro...very bueno my friend!

Fri, 01/10/2014 - 10:25 | 4319204 wisehiney
wisehiney's picture

How many tens of thousands of sears/kmart/jcpenney/teenretailers will be gone next month? Retail surplus means less production. Auto inventory levels do not bode well for production. Bullish!

Fri, 01/10/2014 - 10:36 | 4319224 IridiumRebel
IridiumRebel's picture

Wise, wife and I went into Sears last week to hit the after Christmas super deals on Lands End stuff and pick up some jeans. We were the only folks in the store. They had like 8 associates on the floor. I imagine half of them will get the axe. I was doing auto-underwriting and biz has fallen precipitously. I am switching to education. Things are picking up. 

Fri, 01/10/2014 - 10:30 | 4319217 WongaWig
WongaWig's picture

Unemployement is falling, the Fed has saved us! Is there a secondary market to get rid of these food stamps?

Fri, 01/10/2014 - 10:30 | 4319218 IridiumRebel
IridiumRebel's picture

I just sold my weak shit on the open. I'll take the gains and walk. This is the real one this year I think. When they start to see multi-year or multi-decade lows I would say its time to cut and run. GTLA.

Fri, 01/10/2014 - 11:27 | 4319413 Winston Churchill
Winston Churchill's picture

+100

I agree wholeheartedly.I've only been playing FX not stocks since 2007(got out just in time.

Now I'm out of FX as well.This shit show is coming to a head this year IMO as well.

I'd rather sell too soon. Going 50% PMs. 50% bank of Serta.

Fri, 01/10/2014 - 11:43 | 4319474 IridiumRebel
IridiumRebel's picture

He who panics first panics best.

Fri, 01/10/2014 - 10:36 | 4319228 highwaytoserfdom
highwaytoserfdom's picture

long domestic drone, gun, bullet proof vest, police badge companies, usury crony capital , short freedom of speech , free markets, transparency, small business capital, savings. 

Got go POMO going to force another crony (aka Blackstone like) to take another 41,000 Fannie and Freddie houses...  Janet said QE works.. Danger  Will Robinson..   This TBTF TBTJ ponzi can is just a kicking down the road.... 

http://www.cftc.gov/MarketReports/SwapsReports/L2EqGrossExp

Fri, 01/10/2014 - 10:37 | 4319230 Sufiy
Sufiy's picture

Taper anuone?


Adam Hamilton: Silver Short Squeeze

  Adam Hamilton presents his outlook on the recent situation in Silver market. Gold and Silver have very strong start in 2014 recovering from the testing of Double Bottom in 2013 on the new money allocated to the sector. If next week this dynamic will continue we can have the very explosive situation as it happen in summer 2013 with Silver skyrocketing towards 25 mark. Junior miners should participate in this fireworks again like it happen with McEwen Mining and TNR Gold before, which we are following here. The chart above from KWN demonstrates that Silver is now extremely oversold.

 

http://sufiy.blogspot.co.uk/2014/01/adam-hamilton-silver-short-squeeze-s...

Fri, 01/10/2014 - 13:26 | 4319975 SAT 800
SAT 800's picture

I agree Silver is oversold. my only qualification is thirty years experience trading silver. I'm frequently wrong.

Fri, 01/10/2014 - 10:39 | 4319238 starman
starman's picture

And so far 2014 will be the year of the mass layoffs !
From Sears to KMart, Macys , Ross, GM, Ford , Chevy are cutting cost by 20% plus between 14-16!

By the end of this year I see The DOW at 10,000!

Fri, 01/10/2014 - 18:06 | 4321045 markar
markar's picture

You forgot JCP which may be laying off 100%

Sat, 01/11/2014 - 09:34 | 4322455 lakecity55
lakecity55's picture

......and U6 is at 89%.

Fri, 01/10/2014 - 10:38 | 4319239 J J Pettigrew
J J Pettigrew's picture

The Administration buys unemployment with over gracious and unmonitored "programs".
The Fed attempts to reduce unemployment with money pumping.
Federal Left hand and Federal right hand working in opposite directions....what a surprise!!
Spilling money and ruining the currency all at once.....a perfect exhibit of the idiocy of central planning.

Fri, 01/10/2014 - 10:42 | 4319261 vegas
vegas's picture

This must be great news for President Goebbels; because as we all know, people who are on unemployment moola actually create jobs. So, according to Libtard logic, if everyone was unemployed getting gubermint checks, the unemployment rate would be 0 and the economy would be roaring! Thank God Amerika has the-smartest-guys-in-the-room at the helm. WTF.

 

http://vegasxau.blogspot.com

Fri, 01/10/2014 - 10:49 | 4319278 yogibear
yogibear's picture

More overseas outsourcing, politically correct H1Bs from overseas and illegal aliens to take the existing American jobs.

More Social Security disability, food stamps and Obama phone.

Higher and higher US debt. Onward to $25 trillion.

Fri, 01/10/2014 - 11:49 | 4319499 RaceToTheBottom
RaceToTheBottom's picture

I say give H1Bs the complete American experience.  Felony strip search for all H1Bs....

Spread the wealth!!!!

Fri, 01/10/2014 - 13:27 | 4319984 SAT 800
SAT 800's picture

Why is there no mass political reaction to this Amnesty crap? Doesn't anyone understand the purpose of the excess bodies?

Fri, 01/10/2014 - 13:28 | 4319994 SAT 800
SAT 800's picture

A president who shills for amnesty for illegal aliens should be tried for treason.

Sat, 01/11/2014 - 04:03 | 4322251 TheMerryPrankster
TheMerryPrankster's picture

Pyscho-Pharmaceuticals, flouridated water and food, and 24/7 cable tv, ensure the populace is docile, catatonic and distracted.

they still think they have a Constitution, a functional government and healthcare. they are clueless with a capital clue.

The government is the media and the media says everything is hunkydory and look at these cute kittens aren't they precious and say what about that game last night, stay tuned for an exclusive interview with the star everybody is talking about right after this.

an endless loop of drivel that they apparently can't turn off is more important to them than their actual lives. they are zombies, they will eat each other and ask for more.

Sat, 01/11/2014 - 09:32 | 4322453 lakecity55
lakecity55's picture

(Excerpt from  former US History, published in 2040, Spanish Version, translated:)

 

"Slowly but surely, the citizens of America were disenfranchised, rounded up, and liquidated. Their bodies were recycled into cheap food used to feed the illegal immigrants who replaced them. By 2025, no actual Americans existed except for the few who escaped their national prison for other lands."

Fri, 01/10/2014 - 10:58 | 4319312 22winmag
22winmag's picture

1978... those where the days.

Fri, 01/10/2014 - 11:10 | 4319348 Calmyourself
Calmyourself's picture

http://nationalreview.com/article/368071/main-street-gop-groups-and-thei...

Michelle continues to expose the big labor/Soros/establisment funding of the GOP, no surprise to many here but a great eye opener..

 

Fri, 01/10/2014 - 12:03 | 4319544 NaiLib
NaiLib's picture

:) A good illustration of the fact that the "divide" between GOP and Dems is just for the galleries. They are all in it for the power and priviliges, nothing else. The falling deficit is the final proof. Its only been realized thanks to the sequester. Both sides can blame the other and they shrink the deficit. Next election they can all say: "So you lost out on our deficit shrinking?" "Not my fault - its the other guys" ... And finally they legalize pot in order to get an even more pacified population, eating junk food watching stupid reality shows hoping that they might win the loto one day, while smoking a little more.

 

USA is doomed.

Sat, 01/11/2014 - 09:26 | 4322447 lakecity55
lakecity55's picture

"Professor Smithers, your plan to legalize pot is working! We just ripped off a test subject's bank account and all he did was ask for a roach clip. The Big Boys are impressed. Expect more funding for your think tank."

"Thank you, Director."

Fri, 01/10/2014 - 22:20 | 4321660 Lost Word
Lost Word's picture

RINO's funded by left wing, Tea Party, not so much.

Fri, 01/10/2014 - 11:11 | 4319353 F.A. Hayek
F.A. Hayek's picture

Forward

Sat, 01/11/2014 - 09:22 | 4322443 lakecity55
lakecity55's picture

Soviet

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