Nothing new with employment – those participating in the labor force are declining, the unemployment rate dropped because people are dropping out of the labor force, incomes are down, and those that are finding employment are only getting part-time jobs. Stocks reacted by hitting new highs because “investors think” that crappy employment means the Fed will temper the “taper”, and not reduce their money printing until the end of 2014.
News flash: The Fed will not stop printing or risk immediate implosion…just as would happen with any Ponzi scheme. Just the hint of “tapering” caused rates to spike (and they have not contracted even after the Fed said they would not taper any time soon). Jim Sinclair first used the expression “QE to infinity” in June 2009 when the Fed showed its hand with QE 1…and he was dead on! All of the jawboning and press leaks are for one purpose – to get the masses ensnared in the “credibility trap“, and to react so the prop trading desks of the bankster banks can pick their pocket and pay out executive bonuses. The big heist will come after they’ve pushed the Dow to the top of “Jaws of Death“.
Payrolls missed, and weekly hours declined, and as Karl highlights, if you look at the average weekly earnings loss ($3.09) and multiply it by the total employed (145,113,000) then divide by the average weekly earnings the imputed job loss due to hourly earnings and hour declines is 543,573, massively dwarfing the so-called “gains.”
Of the 953,000 jobs created In 2013, 77%, or 731,000 are part-time do to the fear of Obamacare. So, don’t worry, be happy. Every hour/dollar you lose each month will be replaced by a printed dollar the Fed will send to the bankster banks so they can dump into the stock market. Oh, you don’t own stocks? No worries, you will feel much better by 2016 when all those “rich” people have their breath knocked out of them again by a collapsing market and “bail-in’s” that confiscate all the money they’ve made. Until then, you should be happy that retirees will simply have their wealth stealthily confiscated:
Pension funds (retirees) and other that hedge interest rate risk lost hundreds of millions of dollars to market manipulators. How could this happen? Simple, according the CFTC (the Regulator in charge), ICAP brokers at the U.S. interest-rate swap desk (nicknamed Treasure Island) were paid as much as $7 million a year at the market’s peak. The 20 brokers made $100 million to $120 million annually for ICAP around 2008 and 2009.
Everyone in our corrupt financial system has a price, and that includes regulators, politicians, and judges. If you think there is no solution to all this fraud, you are mistaken. Markets (the invisible hand) always win in the end, and in this case the fraud and lack of prosecutions is scaring capital away from lawless Wall Street. Declining capital means declining growth and tax receipts, which increases the deficit and the desperation of govt to try to collect more taxes to keep their jobs, perks and power. This death spiral is how all nations have destroyed themselves. It would be nice if the solution could be managed. Unfortunately, a managed solution would require govt to admit that they are wrong….good luck with that one!