Saturday, August 8, 2009

Nothing Ventured, NOTHING GAINED

With out a doubt, the biggest load of Bullshit we have been asked to swallow by our Orwellian National Leadership arrived steaming and full of stench at 8:30AM est Friday morning.

Falling unemployment rate signals economic turning point
Kansas City Star

Why the July Jobs Report Signals Hope
U.S. News & World Report

Jobs! Jobs! Jobs!

Recession improving: unemployment meltdown lessening

Where there are jobs there is hope

You can't help laughing at the insinuation that "The Recovery" is at hand because America lost ONLY 247,000 jobs in the month of July. Jobs? There were no "new" jobs. 247,000 jobs were LOST! The recession is not improving, it is getting worse. Hope? Hope is the reason the recession is getting, and will continue to get, worse. Until ALL hope is dashed, there can be no bottom, no recovery.

Can it get any more absurd? Well, sure it can...and it most certainly will. But seriously, the country lost ONE QUARTER OF A MILLION JOBS in July and Wall Street and the ever bullish financial media get out the party hats? There should be outrage. This is in NO WAY a "positive" for Wall Street, the economy, or the country. This is a travesty! We cannot argue that the "pace" of job losses has slowed, ...for now. Perhaps business is running out of people to lay-off. I see no headlines touting "jobs creation". There will be no economic recovery with out substantial jobs creation. For those that have lost count, America has LOST jobs for 19 months in a row now.

LOL! Recovery...

There was a lot of truth hidden in Friday's Jobs Report. That is if you can handle the truth:

If The Economy Lost 247,000 Jobs, How Did The Unemployment Rate Go Down?
The government reported Friday morning that the unemployment rate declined one-tenth of a percentage point to 9.4 percent after the economy shed 247,000 jobs in July. But if that many people lost their jobs, how could the unemployment rate go down instead of up?

The answer is that size of the labor force shrank by over 400,000 people. In June, the Labor Department estimated there were 154.9 million workers in the civilian labor force. In July, that number shrank to 154.5 million.

When the labor force shrinks even more rapidly than the job market, the unemployment rate goes down.

"That entirely explains the decline," Shierholz told the Huffington Post. "When you see a decline in the labor force in a market as crappy as this one, the bulk of what's happened is people are looking around saying, 'I've knocked on every door ten times. I'm just not looking anymore until things get better.'"

All of which means that there is nothing really to celebrate in the unemployment rate going down. The cold reality is that another quarter million jobs were lost.

Cloud over U.S. payrolls: job hunters take summer off
U.S. employers shed 247,000 jobs in July, far fewer than the 320,000 forecast and the 467,000 eliminated in June. The unemployment rate unexpectedly fell to 9.4 percent from 9.5 percent, the Labor Department said.

Helping to drive the unemployment rate lower, however, was a decline in the labor force participation rate by 0.2 percentage points to 65 percent. About 422,000 people stopped looking for work.

Meanwhile, the number of long-term unemployed, defined as those jobless for more than six months, rose by 584,000 to a to a record 4.97 million. More than one-third of those counted as unemployed have now been without work for six months, the highest level since the government started keeping these statistics in 1948.

So let's try and understand this. People that did not have a job, stopped looking for a job, so now they are no longer unemployed...even though they still don't have a job. LOL! ONLY in America.

Meltdown 101: Unemployment by the Numbers
WASHINGTON — Employers are laying off fewer workers, the government reported Friday, but widespread cuts are still happening — only about 30 percent of industries are adding jobs or holding steady.

That's up from 20 percent in March, at the depth of the recession, but it still means that 70 percent of the 271 industries tracked by the Labor Department are cutting jobs, according to the department's July employment report.

"We're still a long way from where we would be in an expansion," said Mark Vitner, senior economist at Wells Fargo Securities. "Job losses continue to be extremely broad-based."

...but recovery is right around the bend.

THE EMPLOYMENT SITUATION – JULY 2009[from the horse's mouth]
U.S. Bureau of Labor Statistics
Nonfarm payroll employment continued to decline in July (-247,000), and the unemployment rate was little changed at 9.4 percent, the U.S. Bureau of Labor Statistics reported today. The average monthly job loss for May through July (-331,000) was about half the average decline for November through April (-645,000). In July, job losses continued in many of the major industry sectors.

Guess What? Unemployment's Really at 16.3 Percent
The announcement today that the unemployment rate declined slightly to 9.4 percent in July while only 247,000 additional jobs were lost has been greeted as good news. The change in the unemployment rate puts the rate at what it was in May. Yet, even a rough look at the numbers indicates that the true unemployment rate has been getting significantly worse over the last few months.

How is it possible for the unemployment rate to essentially remain unchanged when 247,000 jobs have been lost? The reason is simple -- the number of people who stopped looking for work rose dramatically. Six hundred thirty-seven thousand additional people no longer consider themselves looking for work. This is by far the largest drop in the number of people who consider themselves in the labor force during the last year. -- It is almost twice the 358,000 increase in the people who left the labor force during June and almost four times the average monthly increase of 167,333 over the last year. Jobs are sufficiently scarce and the prospects of people finding them at wages that they are willing to work for so low that many individuals don't think that it is worth their time to even look for a job.

Part of the drop in unemployment is also due to the fact that some people are running out of unemployment benefits and taking part-time jobs. There is usually a big increase in the rate that people find jobs during the last few weeks that they have unemployment benefits. In July 102,670 people saw their unemployment benefits run out. That number rose to 141,538 in August and is expected to soar to 486,049 in September. It will keep on rising each month hitting 1.5 million in just December alone. This past Sunday on ABC's "This Week" Treasury Secretary Tim Geithner only promised "to look very carefully at [these lost benefits] as we get closer to the end of this year." Larry Summers, President Obama's chief economic advisor, was similarly noncommittal when he was interviewed that same day on CBS's "Face the Nation."

If we include the normally counted number of unemployed as well as those who have recently given up looking for work and those who have taken a part-time low paying job because they can't find full-time work, the implication is that the unemployment rate for July would be at 16.3 percent These discouraged workers will again look for work once the economy starts to improve, but this 6.9 percentage point gap between publicly discussed unemployment rate and these discouraged workers is unusually large.

Ah, some truth. But the Truth often hurts. The Truth can dash hopes. American can't handle the Truth. America would rather continue living a lie, then accept the Truth. America must accept the Truth before ANY economic recovery can begin.

Many Could Lose Unemployment Benefits
(CBS) It's becoming a painful routine for the millions of Americans out of work - lining up first outside job fairs, then asking for help at unemployment offices.

"It's very humbling," said Donald Mayes, now unemployed after a 19-year job. "I've never had to do this."

What's more, unless Congress acts to extend unemployment benefits, an estimated half million people will see their unemployment checks run out by the end of next month - almost a million and a half by the end of the year, reports CBS News correspondent Cynthia Bowers.

More than half a million more workers joined the line for unemployment benefits last week, falling in behind more than 6 million already collecting.

Current Economic Downturn Is Worst Since Great Depression
John WilliamsShadow Government Statistics
U.S. Economy Is in a Multiple-Dip Depression. The grand benchmark revision of the national income accounts on July 31, 2009 confirmed that the U.S. economy is in its worst economic contraction since the first downleg of the Great Depression, which was a double-dip depression. The current economic downturn increasingly will be referred to as a depression, and it is far from over. There will be intermittent blips of new activity, such as the current cash-for-clunkers automobile giveaway program that appears to be generating a one-time spike in auto sales. Yet, this downturn will continue to deteriorate, proving to be extremely protracted, extremely deep and particularly nonresponsive to traditional stimuli.

But wasn't the recession just declared over on Friday morning?

Dear Friend of GATA and Gold:

Financial market blogger Chris Martenson today reported that the Federal Reserve this week surreptitiously bought almost half the seven-year U.S. Treasury bonds that were auctioned last week. While this is the sort of debt monetization that Fed officials said would not happen, it is probably not the first debt monetization that has taken place recently, just the first monetization the Fed has been caught at. The Fed’s attempt to conceal its actions is far more objectionable and should be remembered whenever there are official denials of intervention in the gold market.

Martenson’s report can be found at his Internet site here:…

Market analyst Karl Denninger elaborates on Martenson’s disclosure at his own Internet site, the Market Ticker, here:…
It’s a fair assumption that the U.S. government’s surreptitious market intervention is nearing desperation levels.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Ah, nothing like a spritz of the Truth to wipeout the stench of bullshit...

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