If The Facts Bother You, Just Ignore Them!
According to the Bureau of Labor Statistics (BLS), the number of unemployed persons declined by 490,000 in the month of December, 2013. Does that mean, as some would interpret this data, that the reason for this decline was due to massive job growth? Unfortunately not. The reality is that, once again, the labor force participation rate declined further, moving to a fresh 36 year low.... more
This 'Gift' Is More Like A Trojan Horse
The only reason the unemployment rate has dropped so precipitously (notwithstanding the shenanigans alleged to have taken place in the Census Bureau regarding its counting procedures around election time) is because the labor participation rate has recently fallen to a 35 year low! The real rate of unemployment is almost double the headline rate and the headline rate itself is at its level chiefly because so many have stopped looking for work
that they have dropped off the unemployment rolls and are no longer counted as unemployed.... more
Irony: "Incongruity between the actual result of a sequence of events" and the normal or expected result.
I realize many of you may be confused by the topic of inflation, and more importantly, when actual deflation will start to unfold as I have predicted. Again, we must note a real irony here because, although there really isnít any true inflation, there appears to be for one main reason: the liquidity that the Fed has supplied to the big banks, allowing them to speculate in risky markets either directly or via their surrogates (hedge funds, etc.) has been responsible for the huge rise in oil prices and other commodities. The reason for that progression is that most investors came to believe that as long as the Fed was printing money at an alarming rate, inflation had to heat up. In reality, ho... more