Unemployment Decline An Illusion, Financial System Collapse

[Rockclimber]

Unemployment Decline An Illusion, Financial System Collapse Ahead

http://inflation.us/unemploymentdeclineillusion.html

On Friday it was announced by the Bureau of Labor Statistics that the U.S. unemployment rate in November declined from 10.2% to 10%. While the mainstream media would like you to believe we have seen a peak in unemployment and the worst of the economic crisis is behind us, we know that this dip in the unemployment number is phony and the recession is only beginning.

Although the unemployment number dipped in November, we still lost 11,000 nonfarm jobs. Unemployment fell by 0.2% only because the civilian labor force shrunk in November by 98,000 people. This means more people are becoming discouraged and giving up looking for jobs. When you combine both short and long-term discouraged workers who aren't included in the labor force along with those who are underemployed with part-time jobs, real unemployment in the U.S. today is nearly 22%.

The most important area of employment to look at is manufacturing jobs. Increasing manufacturing is the only way for our country to truly recover and build real wealth, because it will allow us to cut down on inflation by exporting real products instead of the money we print. Unfortunately, the U.S. lost 41,000 manufacturing jobs in November and has lost 2.1 million manufacturing jobs over the last two years.

The main areas of increasing employment in November were health care and government jobs, which are non-productive jobs that are increasing global imbalances. These jobs are not being created due to a strengthening economy, they are being created due to our artificial, temporary and destructive stimulus. They are forcing our country to get deeper into debt and create massive inflation.

Those who receive a paycheck for a non-productive health care or government job, compete against all Americans for the purchasing of consumer goods, without an increase in the supply of goods. This means after excess inventories of goods are done being worked off, prices of all the goods we consume will increase at an astronomical rate that is unimaginable to most Americans today.

Many Americans with jobs are not concerned about inflation because they believe if the prices of goods go up, so will their wages and everything will balance out. They don't understand our standard of living in America has already been declining for over a decade. Sure, we have plasma TV's, cell phones and the Internet today, but our lives are becoming harder to live and it is becoming more difficult for the middle class to survive.

Twenty years ago, a father with an average job was able to support an entire family of four or five on one income. Today, both parents need to work, and they are still unable to support their family without getting deeply into debt with credit cards, mortgages, auto loans, and college loans. Less families today have health insurance. Wages have not kept pace with inflation, all we have seen is an increase in debt to meet some of the demand from inflation.

With the babyboomers beginning to retire, the decline in our standard of living is about to dreadfully accelerate. The average American peaks in spending at around 46 years old and the last babyboomer will turn 46 in 2010. Therefore, a major drop-off in consumer spending is coming. But more importantly, beginning this next decade, 1.5 to 2 million Americans will apply for Social Security every year until 2026, compared to only 500,000 per year during the last decade. Tax receipts are about to fall off a cliff, at the same time as government entitlement spending for Social Security, Medicare, and Medicaid go through the roof.

Many people have been asking us on NIAnswers, if we see massive inflation and gold prices go through the roof like we predict, wouldn't that be good for the U.S. because we have the largest gold reserves at 8,133.5 tonnes? Well, at the current gold price, our gold reserves are worth approximately $300 billion. Our budget deficit this year alone was $1.6 trillion. If we had to pay back our $12 trillion national debt using only the gold in our vaults, it would require a $45,889.44 per ounce gold price. But once you factor in our $55 to $100 trillion in unfunded liabilities for Social Security, Medicare, and Medicaid, our gold reserves will not put a dent in saving our country from the financial system collapse that lies ahead.

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[abduLMaria]

i could believe a .2% decline in unemployment, as measured using the continually altering methods of BLS.

http://data.bls.gov/PDQ/servlet/SurveyO ... NS14000000

there's one of their primo curves showing the downtick.

i look at it sort of like Buoy 51001, which is the main buoy for Hawaii.  it's the buoy surfers in Hawaii look at to see when the big waves are coming.

there was a recent run of BIG waves, not as big as January 28, 1998 (Buoy 51001 went to 27 feet @ 25 seconds open ocean swell, resulting in wave faces of 80 feet) but big enough to run the Eddie.

watching the buoy numbers, which get recorded hourly -
http://www.ndbc.noaa.gov/station_page.php?station=51001

... it's common to see upticks & downticks when in the background there is a humongous swell arriving or you have the tail end of a humongous swell.

i over-cooked my green tomatoes for lunch and those unemployment #'s are WAY more overcooked than my green tomatoes.

to get back to the swell metaphor, the unemployment numbers remind me of the buoys the day Todd Chesser died in 1997.  he was out in 10 foot surf (Hawaiian scale) and got hammered by 2 "rogue" 25 footers (50 feet+ faces).  basically he didn't have the benefit of today's Internet buoys & didn't know that there was a rising swell and he drowned.

in other words, i'm saying unemployment is more than 10%.

i believe John Williams' forecasts at Shadowstats.com.  unemployment in the US is more like 20%, using the measurement techniques of the 1970's.

[Rockclimber]

wow, thanks for that, and I don't think you're too far off at all.