The unemployment numbers continue to be fabricated in order to prop up the financial markets. Why? If investors were to switch from greed to fear, the stock market would take a dive. At this time, it represents discretionary wealth more so than any other investing arena. Bonds continue to represent a mine field once interest rates begin to rise. The housing market is consumer-driven and the consumers are still unwilling or unable to part with their cash. Only the large funds, backed by Fed lending, are keeping the equity market up and surpassing new highs.
If you were to consider the “employed” labor force rather than focusing on the unemployment numbers, you would find that true mainline unemployment based on these numbers would be 11%. When you add in discouraged and long-term unemployed, you arrive at John Williams’ 23.5% number. John’s charting of the real Gross Domestic Product (GDP):
Does that look like a healthy economy to you? How much lipstick can the pig handle? No wonder the unemployment numbers continue to reflect the underlying weakness on a month to month basis. The consumer isn’t spending:
(For a subscription to shadowstats.com, go to: http://www.shadowstats.com/subscriptions )
59% of America’s working population are working. Before the last recession, it was 63%. It has never recovered yet the mainline unemployment reporting would have you believe it has recovered. It is the first time this situation has occurred since WWII.
In 2000, the number of people on food stamps was 17 million. When Obama was elected, it was 32 million. Now, it stands at at 47 million.
In the last five years, the top six (too big to fail) banks have increased 37% in size compared to 2008. At the same time, 1,400 smaller banks have disappeared from the system. Do you think the exposure of a collapse has decreased? Concentration of financial exposure has only increased. Their “casino” operations have become more reckless, not less. Four of them have derivatives exposure of over $40 Trillion. If (actually when) a Black Swan event occurs, they will collapse and depositor money will evaporate.
40 years’ ago, the total debt was about $2 Trillion. Today, total debt stands at over $56 Trillion in the U.S. This has promoted an illusion of prosperity while 76% of all Americans live paycheck to paycheck. The middle class is shrinking in a rapid fashion and we will soon look like a third world country.
Prepare, become more self-sufficient, and insulate yourself from any economic calamity. Moreover, focus on listening to the Words of Our Heavenly Father!