Proof Positive the "Recovery" is a Myth

Phoenix Capital Research's picture

For years, I’ve been warning that all claims of economic “recovery” in the US are complete fiction.

We now have definitive proof in the form of tax receipts.

Receipts from the Federal Unemployment Tax Act (FUTA) have been falling steadily since 2012, according to the Office of Management and Budget, moving counter to the growing number of people employed. The FUTA tax is levied at 6 percent on the first $7,000 of an employee's wage…

Source: CNBC

There you have it. Since 2012, unemployment tax receipts have been FALLING. If the US economy was indeed creating jobs, this number should be rising.

Why is this number falling… particularly when the unemployment number is supposedly below 5% and job growth is great?

There are a couple of answers to that question and neither is favorable. The BLS numbers are either wrong or the quality of new jobs created must be very poor. The latter response seems the most credible; a combination of an increase in the proportion of part-time workers and full-time jobs that provide lower compensation.

Source: CNBC

As I’ve been saying for years… the recovery narrative is a myth.The unemployment number has become a political propaganda tool and has no reflection on the US' economic realities.

In simple terms, job growth has NOT come back in the US. Those jobs that are being created are low paying.

Meanwhile, the stock market is at al -time highs...

On that note, we firmly believe the markets are preparing to enter another Crisis. With over 30% of global bonds posting negative yields, the financial system is a powder keg ready to blow. And as usual, the Central Banks are clueless about the risks.

We are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline the coming crash will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

We are giving away just 1,000 copies of this report for FREE to the public.

To pick up yours, swing by:

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research



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santiagodl's picture

I'm hearing since 2012 "prepare for the next crisis" "prepare for the apocalypse" ...and nothing actually happens but a bull market with certain exceptions.

The market doesnt give a crap wether jobs are good or bad, so this is just another bear trader who misses every single estimate or a very smart trader who creates false expectatives.

If you want to avoid being hit if a bear market appears, learn about money management in your investments rather than directional trades.



Jtrillian's picture

It's the TYPE of jobs being created.  High paying full time jobs have been replaced with low paying part time jobs.  Lower paying jobs, means lower tax receipts.  This important fact has been ignored by the Obama administration during his State Of the Union speeches as well as the mainstream media. 

This can also be seen via median household income. 

So the moral of this story is that all jobs are not created equal.  In order to see through the mainstream media bs you must look at median household incomes and federal tax receipts. 

Those who have been paying attention know this recovery is completely false.  It has only been possible via the central banks respective balance sheets.  It has created the demise of all fiat currency and the end of the Western economic world.  We are one black swan away from that happening. 

JailBanksters's picture

Who you gonna call ?

Myth Busters

If in doubt C4

ajkreider's picture

It's falling because the Feds instituted a surcharge, in 2012, for states to repay the deficit in unemployment produced by the massive layoffs during the recession.  The states racked up big unemployment debts, that they started paying back then.  In 2012, most states had the surcharge - thus the high revenue.  In 2015, only 4 states did - thus the lower revenue.

Is this crap what passes for research on ZH?


I done my research, Obama says economy is good, so does THE FED

50 million on food stamps YEP economy is good!

highwaytoserfdom's picture


but but but  participation rate wait wait birth/death rate 


The truth is the Dot Plot is bladder Acid or a 420 Colorado creation..   (don't use condone condemn or collect on enforcement   laundering )  Has to be it or we are just being spoon feed FED garbage by a bunch of fucking liars that are doing a pretty good job of pissing me off about stealing from kids and grand kids.

Storm Chaser's picture

Big deal the "recovery" is PROVEN a myth.  So WHAT?  Does the "truth" matter any more than the fundamentals, technicals, or anything else in a totaly controlled world?

Troy Ounce's picture


Watch out what you are saying.

If Central Banks buy the world, we will be living in a a paradise for the well connected.