THE REAL UNEMPLOYMENT NUMBERS EXPLAINED, THE COMING CURRENCY WAR AND OTHER STORIES THE MSM IS IGNORING

When the jobs report came out right before the election, Republicans cried foul and screamed that the unemployment numbers were rigged. Unfortunately for them, they were NOT rigged the way the GOP said, in that Obama cannot rig the numbers as they stand. Only by changing the way we calculate the numbers, as both Reagan and Clinton did during their term, is this possible. If the GOP had gone after that aspect, they would have had a case. But by blaming Obama, as they do for everything, they became a laughing stock because the president cannot change the numbers without changing the way they are counted and he hasn't done that yet. The Republican party is always a day late to the party it seems.

However, if we look the real numbers, we see a much different number than the ones being touted by the media and government. On rare occasions, the media will report that the real unemployment number is around 15% and even that number is low, as they use the Clinton adjusted numbers but fail to incorporate the Reagan changes as well. If we get rid of all the Hollywood math (that is math that is totally subjective to the actual numbers at hand to screw people out of royalties), we find that the unemployment rate is 23% and has remained steady there for the past four years. This is the same way calculations were done during the Great Depression which we have now surpassed as the longest stretch of high unemployment ever in US history, if we use actual math.

The media and government reported that in January, 157,000 jobs were added which helped propel the stock market to over 14,000. However, this is a statistical lie that falls apart under greater scrutiny. If we take away seasonal jobs, the number decreased by 1,446,000 between December and January when all the holiday temp workers lost their job. Funny how that never made the news isn't it?

In 2007, 146 million people had jobs. Today it's 141.6 million. We keep hearing about this mysterious "recovery" that is right around the corner for the average person which has been vomited forth by the media since 2009. Anybody out there know a majority of people killing it at their job right now? Only one person I know in the last year found a great job that pays almost six figures and she was currently employed at the time. Every single person I know laid off over the last few years has found a job that pays around $20,000 a year from the $50-70,000 they used to make. Try to live off that money any see how far it gets you.

These numbers from the Bureau Of Labor Statistics show a steady fall in employment since 2006.
 

2006: 63.1

2007: 63.0

2008: 62.2

2009: 59.3

2010: 58.5

2011: 58.4

 

So, according to these numbers, compiled by our own government say that only 58% of the population is employed. That is terrible. Now some of the labor force left over are retired, disabled or imprisoned, but even eliminating that, the numbers still won't reach the 7.9% the media and government is telling us.

Here is the numbers for people not in the labor force, also from Labor Board.

 

2006: 77,387,000

2007: 78,743,000

2008: 79,501,000

2009: 81,659,000

2010: 83,941,000

2011: 86,001,000

The numbers are growing rapidly as you can see and again, 86 million people out of work does not add up to 7.9% unemployment but closer to the 23% sites like shadowstats.com and this blog have demonstrated.

And what about those that have jobs? Most are making terrible money as two thirds of this country now makes less than $41,000 a year and whopping forty percent of them make less than $20,000. This is unsustainable for a nation and will lead to very bad things down the road. 146 million people in this country are poor or low income. That's half the nation. And trust me, those making  the "enormous sum" of $41,000 may not be poor but they aren't having an easy time either. A rapidly dwindling number are making all the money and letting the rest of us starve.

All of this is leading to another crash, one that will make 2008 look like a small speed bump in the economy compared to what is going to occur. We have massive instability throughout Europe, a currency war is forming and Wall St seems to be selling huge sums of stock over the last few weeks, perhaps knowing that a crash is coming again.

First off, let's explore the currency wars being fought right now between Japan and the US. Japan's new government has adapted a grow at any cost mentality with ultra low interest rates and money printing. If it sounds familiar it is because it exactly the same thing going on here. These kinds of manipulations when attempted throughout history have failed every time and this will be no different. Instead of doing what Iceland did like arresting the bankers and politicians that caused the problems and changing the laws so that it can't happen again, the US, Europe and Asia slapped a band aid on and said "all fixed," ignoring the gaping wound gushing blood everywhere.

Economists are warning that a currency war between the dollar and the yen may echo the same Depression that followed in the 1930's when similar actions happened with the fall of the Weimar Republican and the World War that followed.

This and other factors are making Wall St very nervous. This week, some unnamed investor bet over $11 million dollars in put options that the economy will tank in the next 60 days. Another bought 100,000 in put options against the economy that expire in April. I will point out that this happened before in  the fall of 2010 when all signs pointed to disaster and then nothing. Some investors put over several billion dollars in put options for a crash that never occurred. It is entirely possible that those rumors were spread to trick fools into selling off stock and betting big on a crash that was never going to happen while the elites with inside information bet big the other way, that the market would rise, and made a killing instead. I have no proof of any of that but it is an interesting theory.


However, it is telling that corporations and rich people are selling stock right now like it's on fire. Sell orders have risen to nine time the buy options over the last few weeks. Plus, many recognized economists are saying that the debt bubble is about to burst and the after effects could be catastrophic in ways never see before.

Second terms for re-elected Presidents rarely go well. This could be Obama's cross to bear as the economy goes belly up because neither he nor anyone else with power in Washington wanted to fix anything and instead we have gone back to the very policies that got us into this mess in the first place. Gold may be your best investment as stock may plummet 5-20% in the coming weeks. Or it could be 2010 all over again, where nothing happens. I am not betting on the latter.