“I woke up this past Saturday morning and opened my local paper to find out that all was well. An Associated Press article declared a healthy jobs market, fantastic auto sales, a surging housing market, and a stock market rocketing to new all-time highs. What’s not to love? If the mainstream media says the economy is as good as new, it must be so. Why should we let facts get in the way of a good storyline? The stock market has surged to 2007 highs, so the country’s employment situation must be strong.
The chart above tells a slightly different story. The S&P 500 has regained almost all its losses since October 2007 as Bernanke and Washington politicians chose to save Wall Street and screw over Main Street. The working age population has risen by 12.8 million since 2007 and there are 4 million less Americans employed. The December Household Survey from the BLS being touted by the mainstream media as proof of a jobs recovery told a slightly different story:
- The number of unemployed Americans went up by 126,000 in one month
- Another 169,000 Americans left the workforce evidently because their stock market gains made them wealthy.
- There are 250,000 more Americans unemployed than there were in September 2012.
- There are 6,000 less Americans employed than there were in October 2012.
- The unemployment rate reported to the masses went up to 7.9% (the true rate reached 23%).
This is just the picture over the last few months. The picture since 2007 is beyond horrific, as more than 10 million Americans have left the workforce. Everyone knows people willingly leave the labor force when the economy crashes and their net worth is reduced by 30%. Who needs a paying job then? Just because there are 101 million working age Americans not working and the labor participation rate of 63.6% is at a three decade low, certainly doesn’t mean we aren’t experiencing a tremendous jobs recovery, according to the mainstream media.
The deep thinkers at CNBC, Fox, CNN and the rest of the captured corporate status quo mouthpieces, propagate the false storyline that the reason for Americans leaving the workforce is Baby Boomers retiring. Considering the average Boomer has $90,000 of total savings and 28% of them have less than $1,000 saved, I suspect there are few willingly leaving the workforce. The Boomers have taken on 4 million additional jobs since the low point in 2009, while the 16 to 54 year olds have lost an additional 2.9 million jobs. Does this reflect a strengthening jobs market? Does the fact that real hourly wages have fallen for the last two years reflect an improving labor market?
Inquiring minds might wonder how auto sales could be booming when there are 4 million less employed Americans and real wages are falling. Of course, mainstream media faux journalists aren’t paid to inquire, think critically, or even think at all. They are paid to regurgitate propaganda designed to keep the masses sedated and ignorant. The “fabulous” rebound in auto sales has been buoyed by the return of easy money lending, even to deadbeat borrowers with lousy credit histories. There is a reason the Federal government hasn’t attempted to spin off their 80% control of Ally Financial (aka GMAC, Ditech, Rescap). The Feds are attempting to manufacture a recovery by doling out subprime auto loans to anyone who can scratch an X on a loan document and offering 0% loans over 7 years to good credits. How exactly does a finance company generate a profit by making 0% loans for seven years and approving loans to people with no means of paying them back? Experian recently noted that 44% of ALL auto loans have been to subprime borrowers over the last year. When a financing company doesn’t have to worry about profits or loan losses, everyone gets a Cadillac Escalade. The losses on these subprime loans will be in the billions when the next leg down in this Crisis hits. The taxpayer will unknowingly pick up the tab, just as they have been doing for the last five years. The trend in this chart is nothing but a Federal government induced fraud.
PhD in Stupidity….”Comments »