“When it becomes serious, you have to lie.” — Jean-Claude Junker, President of the European Commission.
Normally, I would not bring a European politician into a discussion about the U.S. economy. But in this case, European Commission President Jean-Claude Junker has “let the cat out of the bag.” In an unguarded moment, Junker let slip the working principle that guides politicians everywhere.
Think about it.
Is there any more serious issue for U.S. politicians than convincing you to give them your vote? You know that most voters in our intervention-addicted world credit politicians for prosperity they enjoy during their time in power. Just as primitive tribes credit the local chief or high priest for prosperity — or blame his sins when bad weather or pestilence make living conditions difficult.
Is there any more serious issue for you than understanding how you can preserve and build your capital in an uncertain world? Without capital, you are in danger of sinking to the level of the billions of Indians and Chinese whose livelihoods depend on their ability to rent their time. Not a happy prospect.
A crucial characteristic of the world that could make both the politicians’ dreams of power and your dreams of secure retirement come true would be the resumption of rapid economic growth — as reflected in both GDP accounting and employment reports.
Unhappily, the news on that score is far from encouraging…
In fact, a close reading of the data suggests that economic growth is negligible, and the real unemployment rate is about 23%.
That is the Shadow Government Statistics alternative unemployment rate for May 2016. Quite a contrast with the headline “official” unemployment rate of 4.7%.
But upon inspection, you can see that the alarming 23% ShadowStats unemployment rate is merely unemployment calculated as it was until the Kennedy administration, when out-of-work Americans who had suspended an active search for jobs — primarily because none could be found — were relabeled “discouraged workers” and dropped from the tally of the unemployed.
The Clinton administration widened the memory hole further.
In 1994, the Bureau of Labor Statistics (BLS) redefined the workforce to exclude all but the small percentage of the discouraged who had been seeking work for less than a year. The longer-term discouraged — some 4 million U.S. adults — disappeared into a statistical black hole.
Clinton also reduced the sample-sized employed in the household survey that determines the unemployment rate — excluding a disproportionate share of inner-city households who were less likely to have jobs.
Over the years, American politicians have used statistical sleight of hand to protect themselves from the angry mobs of voters in a way that the witch doctors and high priests of the past could only envy.
In the old days, when the rains didn’t come and the crops failed, the high priests could not fool anyone by merely issuing a proclamation thanking the gods for bumper crops.
Today, Obama proclaims a “vigorous recovery” and The New York Times pretends to believe it.
Why Janet Ain’t Yellin’ “Higher Interest” Anymore: Jobs Worse Than Expected And Far Worse Than Reported
…To put a positive spin on hideous numbers, the Bureau of Labor Statistics (BLS, which should simply be BS) reported 484,000 formerly unemployed people are no longer unemployed. That’s fantastic! Well, except they omitted the banal explanation that this was simply because most of those people had been unemployed so long that their unemployment benefits expired. (Sighs. Just when you might have thought you felt some lift.)…
Only a captured government drone could put out a report showing only 38,000 new jobs created, with the working age population rising by 205,000, and have the balls to report the unemployment rate plunged from 5.0% to 4.7%, the lowest since August 2007. If you ever needed proof these worthless bureaucrats are nothing more than propaganda peddlers for the establishment, this report is it. The two previous months were revised significantly downward in the fine print of the press release.
It is absolutely mind boggling that these government pond scum hacks can get away with reporting that 484,000 people who WERE unemployed last month are no longer unemployed this month. Life is so fucking good in this country, they all just decided to kick back and leave the labor force. Maybe they all won the Powerball lottery. How many people do you know who can afford to just leave the workforce and live off their vast savings?
In addition, 180,000 more Americans left the workforce, bringing the total to a record 94.7 million Americans not in the labor force. The corporate MSM will roll out the usual “experts” to blather about the retirement of Baby Boomers as the false narrative to deflect blame from Obama and his minions. The absolute absurdity of the data heaped upon the ignorant masses is clearly evident in the data over the last three months. Here is government idiocracy at its finest:
Number of working age Americans added since March – 406,000
Number of employed Americans since March – NEGATIVE 290,000
Number of Americans who have supposedly voluntarily left the workforce – 1,226,000
Unemployment rate – FELL from 5.0% to 4.7%
Talk about perpetrating the BIG LIE. Goebbels and Bernays are smiling up from the fires of hell as their acolytes of propaganda have kicked it into hyper-drive…
Today the Bureau of Labor Statistics announced that the US economy only created 38,000 new jobs in May and revised down by 59,000 jobs the previously reported gains in March and April.
Yet the BLS reported that the unemployment rate fell from 5.0 to 4.7 percent, a figure generally regarded as full employment.
The May jobs increase only covers a small fraction of the monthly growth in the labor force and, therefore, cannot account for the drop in unemployment.
Moreover, the BLS reported that the labor force participation rate fell by 0.2 percentage points, bringing the decline to 0.4 percentage points over the past two months. Normally, a strong labor market, such as one represented by a 4.7% unemployment rate, causes an increase in the labor force participation rate.
The question becomes: How real is the 4.7% rate of unemployment?
The answer is: Not at all.
The unemployment rate dropped because people unable to find jobs ceased looking and are no longer counted as being in the labor force. If you are unemployed but not considered part of the labor force, you are not included when unemployment is measured. The BLS says that in May there were 1.7 million Americans who “wanted and were available for work,” but “were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.”
In other words, the unemployment rate is a useless measure of unemployment, just as the consumer price index no longer measures inflation. What were once useful statistical measures have been converted into good news propaganda…