Written by Jeff Nielson Sunday, 23 March 2014 13:46
Regular readers are familiar with the plight of the massive numbers of unemployed in Western nations, in general, and in the United States, in particular. There are approximately 100 million unemployed people across the Western world, roughly half of those inside the United States. Worse still, over 90% of these people are permanently unemployed.
This is the worst unemployment ever experienced in the history of our societies. Proof comes in the numbers, the real numbers and (ironically) the best data available is U.S. data. There are 144 million people in the U.S. with jobs, out of a population of 317 million. That translates into 46% of Americans with jobs, and 54% without jobs – a working minority.
Of course not all Americans (or all people in any society) are employable. Some are too old, or too young, or otherwise physically/mentally unfit for employment. Fortunately we also have data on employable Americans, the “civilian participation rate”. The chart below shows how many employable Americans are actually working.
Currently, only a little over 63% of employable Americans have jobs, and that rate continues to fall like a rock, throughout the mythical “U.S. recovery”. Regular readers are also aware that the standard of living in the U.S. (and across the Western world) has fallen by more than 50% over the past 40 years. In real dollars; the workers of 2014 are paid Great Depression wages.
The Middle Class are now the Working Poor (those who still have jobs). Where a single wage-earner used to be able to support a family (comfortably); it now requires two wage-earners. This is why before our governments destroyed our economies we saw the civilian participation rate going rapidly higher in the U.S. (and throughout the West).
To get most of the Poor out of poverty in the United States, in 2014 (at Great Depression wages), the U.S. would require a civilian participation rate of at least 80%, and likely closer to 90%. There are about 230 million employable Americans, meaning there are 86 million employable Americans without jobs.
If we assume an ideal/necessary civilian participation of 80%, this translates into 40 million unemployed Americans who need/want jobs today. If we assume a rate of 90%, that means 63 million unemployed Americans who need jobs – and (as the chart above proves) that number increases every month.
If we assume there are 40 million unemployed Americans needing jobs, that translates into an unemployment rate of over 18%. If we assume 60 million unemployed, that puts the U.S. unemployment rate well above 25%. Yet the liars in the Corporate media, the U.S. government, and the Federal Reserve pretend that the U.S. “unemployment rate” is only 6.5%, that ‘only’ about 15 million Americans need jobs. Janet Yellen, the Fed’s new Chief Liar boasted last week about: “cumulative progress toward maximum employment”.
Written by Jeff Nielson Thursday, 20 March 2014 13:04
The descent into Wonderland continues. After five years of promising an Exit Strategy; in September of last year former Fed-head, B.S. Bernanke finally confessed that any “tapering” was impractical (if not impossible), as the U.S. economy was now a Ponzi-scheme which required ever increasing money-printing to avoid implosion, as clearly illustrated below.
Yet here we are in mid-March, and now we have new Fed-head Yellen telling us that the “tapering” (begun by B.S. Bernanke) is now smoothly proceeding on schedule. How is this possible? It’s not.
Here is what is really happening. First of all, there has been no “tapering”. All that has happened is that a Cheap Magician has reduced the quantity of money-printing in one program – the only one publicly disclosed. But he/she has increased the money-printing in the programs they refuse to disclose to the public, such as their fraudulent “0% loans” to Wall Street banks.
Why has the Fed fought all attempts at fully disclosing its money-printing, the primary function of any central bank? Because it is (literally) counterfeiting more and more of the worthless funny-money which it prints-up by the trillions. With the open hand he/she shows to the Sheep; the Cheap Magician announces a reduction in the money-printing. Meanwhile, in the closed hand which the Cheap Magician hides behind his/her back; the money-printing is increased by an even greater amount.
How can we know this? The chart above tells us so. There can be no “exit” or even “tapering” from an out-of-control exponential function that extreme. It is mathematically/economically impossible. The money-printing must increase (and at an accelerating rate) or the Ponzi-scheme (i.e. the U.S. economy) will implode. Those are the only, two possible outcomes.
However, because the Federal Reserve (and its mouthpieces in the Corporate media) continue to broadcast the lie of “tapering”, the Sheep believe that tapering is actually taking place. And so markets react, even our own fraud-tortured markets, ruled by the bankers’ Pied Piper trading algorithms.
These algorithms are only tools, tools programmed to respond to particular stimuli, in a particular way. Thus with U.S. interest rates permanently manipulated to an absurd/extreme low, any stimuli which dictate higher interest rates (such as less funny-money to use in buying Treasuries) cause the One Bank’s own trading algorithms to work against it…unless it can create even more extreme stimuli pushing in the opposite direction.