To the Editor:
Back in the shadowy days of the Clinton administration of the stained black dress, wagging fingers telling us he did not have sex with that intern, and friends that got murdered with the Park Police in charge, we have a change that happened in 1994 that allowed the Clinton crew to change the Bureau of Labor Statistics. The methodology included an alternative unemployment rate that removed from the unemployment rolls those that were categorized as the long term discouraged workers which the BLS crossed off the list of those that were considered unemployed.
A Politically Skewed Manipulation
With a politically skewed manipulation of the real unemployment figures getting whittled down to 8.3%, when the real unemployed are figured in it looks like a more truthful picture is found at the logical number of 22.5%. The manipulation of the numbers by the BLS makes it look like the Obama Administration is making headway when in fact real unemployment, when you count in the totals for workers that are no longer looking, runs to 1920’s depression levels of the previous real number of 22.5% that John Williams of the “Shadow Government Statistics” who has railed for years that the fed twists the numbers to make them say what they want them to say.
What is a Depression?
The media in the financial world usually defines a financial depression as being a loss of 10% in the Gross Domestic Product (GDP) which is more than anything just a rule of thumb. Ronald Reagan once said, “Recession is when a neighbor loses his job. Depression is when you lose yours.”
Numbers Are Skewed for Political Reasons
In a world where the very thought of trying to analyze a macroeconomic happening measured in dollars in a world where cash is electronic debt, property is still declining in value, capital investments flows freely across economic borders, cheap labor immigrates across our southern borders uninhibited, and politicians leave the government’s biggest expenses off the books has become increasingly absurd over time. How could you ever try to figure out if the economy is expanding or contracting when the numbers used are skewed for political purposes?
News Release Says
A Feb. 2012 news release from BLS told the public that the rate of unemployment had fallen 0.2% from the previous 8.5% we previously had in Dec. of 2011. However, the part of the report that did not make the evening news is the BLS reports the U6 unemployment is 15.6%, U6 meaning those people that were marginally attached to the work force in what is now called the under employed, people looking for full time wages but had to settle for part time jobs. So in not releasing those figures, then dropping those workers who had fallen off the radar after looking for jobs for a year, it is quite clear what the present administration is trying to do. Williams reported that the stats of 8.3% that made the media sound bites were mathematically manipulated and just simply not believable.
Williams put it this way in a report, his official Alternative Unemployment Rate comes out to be 22.5% when you add back into the Bureau of Labor Statistics U6 numbers, the long termed laborers that have fallen off the radar, and have stopped looking for jobs the past year. The BLS of course only reports the U3 stats that are adjusted seasonally which was the 8.3% that was blared out over every news media station.
You can tell just by looking at the BLS own fully reported stats that the nation is in fact in trouble, has been for quite some time, is getting better no time soon, and there seems to be no remedy on the horizon coming down the road. The torpedoing of the Keystone pipeline that was to run from Canada down into Houston Texas would have employed at the peak at least 100,000 jobs directly and another 20,000 jobs indirectly, has been moved to the back burner.
The jobless recovery scenario is a little more nebulous, with the precise timing of the recovery unknown, with little growth for the future estimated, and in danger of turning into a double dip recession, the uncertainty of the foreign export markets, contractions in the European and Asian markets, the double dip looks like the ice cream of the future.
Obama Stimulus a Bust
While the Obama stimulus package looks like a bust, the call for more recovery money not looking good, the pundits and the economists saying that whatever economic growth we do have will not sufficiently reduce the unemployment numbers and the figures will be much higher than normal, the look for economic growth looks grim for 2012 with little or no growth predicted.
The Straight Ahead Future
Looking into this crystal ball into the straight ahead future, while car sales have been good, manufacturing up slightly, and enough money flowing into the treasury to pay the necessary bills on time, if things just stay the same the double dip still looks like it could happen with the jobless recovery in full bloom. Those who adhere to variants of the jobless recovery say the USA is headed for a prolonged jobless recovery where only certain parts of the economy will recover while other segments will remain stagnant.
The Truth Is Different
What we really have waiting for us is historical warning signs that there are increasing numbers of consumer bankruptcies and mortgage defaults, credit debt is out of sight, there is also the unknown impact of enough possible bank failures to render the FDIC insolvent, the possibility of a U.S. state like California going bankrupt, or a possible crash in the derivatives market. Not speaking to the fact that being 4 trillion in debt will do anything good for the future economy or that the out of control printing of money by the Fed might have on our inflation scale when the working class will be unable to keep up. My take on this is the future looks so bright I have to wear shades.
Originally seen here.