The Recovery™ - Stagnant Wages, Lowest Labor Participation Rate in 37 Years

"While it has taken a long time, and extraordinary monetary policy actions, the U.S. economy is now close to full employment..."

Stanley Fischer, Vice Chairman Federal Reserve, Monetary Policy In the US and Developing Countries, 30 June 2015

 

While officialdom celebrates the unemployment rate falling to 5.3%, even a cursory look at the numbers today tells the real story for those who would look at them.

Wage growth in the latest month was 0.0%. That is consistent with a long trend of wage stagnation.

Non-Farm payrolls came in light, and the prior month was revised sharply lower from 280,000 to 254,000.  But it made for a good cheery headline last month.

For a more contemporary number, new unemployment claims rose to 281,000 and continuing unemployment claims rose to 2,264,000.

The reason that the unemployment percentage is falling is that as more unemployed workers fall off the roles of unemployment compensation the government stops counting them as ready to work. 

People become discouraged by the bleak prospects of finding gainful employment, and they even fall further into the 'off the books' economy that is a portion of the decay caused by policy errors of fiscal blockheadedness and monetary largesse for the one percent.

And the sign of economic vigor and the breadth of economic recovery, the labor participation rate has fallen to a 37 year low.

And the spokesperson comes down from the big house and assures us that the President is thinking about what to do about this terrible situation every day.  He has certainly been mulling this over for a long time.  And in fairness, most of the Congress could care less about what happens to anyone who does not have a lackey sitting in their waiting room without a sack full of 'campaign donations' and honorariums.  Oh they may talk a good game, but at the end of the day, they are getting paid.

 

We are now in the seventh year of  The Recovery™.

 

I know, let's shove a corporatist trade agreement, trading jobs for corporate profits, down the nation's throat over the people's strong objections, and call it a jobs creator in true Orwellian fashion, while transforming the US into a nation of insecure, underpaid servants.

 

Oh, well done.

Gold Daily and Silver Weekly Charts - Non-Farm Payrolls Tomorrow - Pride, Privilege, Will to Power

 

"He promises you illumination, he offers you knowledge, science, philosophy, enlargement of mind. He scoffs at times gone by; he scoffs at every institution which reveres them. He prompts you what to say, and then listens to you, and praises you, and encourages you. He bids you mount aloft. He shows you how to become as gods. Then he laughs and jokes with you, and gets intimate with you; he takes your hand, and gets his fingers between yours, and grasps them, and then you are his."

J. H. Newman

Gold and silver were under some heavy handed action today, ahead of the US Non-Farm Payrolls report tomorrow.    It is coming a day early because of the upcoming July 4th weekend.

 

Greece tends to dominate the news with lots of uninformed speculation and interpretation, often driven more by a person's particular bias and ego than the facts.  So it is sometimes difficult to determine what is exactly happening.

 

There will be a referendum on the austerity plan by the public.  Yes the Troika, like a spoiled child, claims that the deal is 'off the table now,' too late, and two for flinching.

 

It could not be more obvious that the reason that the Eurocrats are driving such a hard bargain is that they find the relatively independent government of Greece to be highly unpalatable for their neoliberal tastes. 

 

Let's see what happens.

 

Remember the people of Greece, and of the other troubled nations in your prayers. 

 

And especially remember those who have none to pray for them, and those who think that they need no one and no forgiveness.  They are near a spiritual death, which is worse than the death of the body.

 

I am deeply concerned about the well-being of Pope Francis as he comes to visit the US.  He is loved by many, but deeply hated by some of the darker hearts of the world.  His misfortune, or some other tragic incident would provide a convenient diversion for wickedness in high places. 

 

What would these devotees of riches and worldly power not do to get their way?   They are of those who scatter, accuse, destroy, and lie.   And if you serve them, know whom you serve.

 

Have a pleasant evening.  

 

 

 

 

SP 500 and NDX Futures Daily Charts - Corruptio Optimi Pessima

"If ever you find yourself environed with difficulties and perplexing circumstances, out of which you are at a loss how to extricate yourself, do what is right, and be assured that that will extricate you the best out of the worst situations. Though you cannot see, when you take one step, what will be the next, yet follow truth, justice, and plain dealing, and never fear their leading you out of the labyrinth, in the easiest manner possible.

The knot which you thought a Gordian one, will untie itself before you. Nothing is so mistaken as the supposition, that a person is to extricate himself from a difficulty, by intrigue, by chicanery, by dissimulation, by trimming, by an untruth, by an injustice. This increases the difficulties ten fold; and those who pursue these methods, get themselves so involved at length, that they can turn no way but their infamy becomes more exposed. It is of great importance to set a resolution, not to be shaken, never to tell an untruth.

There is no vice so mean, so pitiful, so contemptible; and he who permits himself to tell a lie once, finds it much easier to do it a second and third time, till at length it becomes habitual; he tells lies without attending to it, and truths without the world's believing him. This falsehood of the tongue leads to that of the heart, and in time depraves all its good dispositions."

Thomas Jefferson, Letter from Paris, August 19, 1785

 

Stocks enjoyed a 'dead cat bounce today' ahead of the Non-Farm Payrolls report tomorrow. 

 

Greek concerns tend to dominate the market action, with the other crises in the Ukraine and Puerto Rico falling into the background.

 

The Fed is investigating the markets to try and understand why there is an absence of liquidity, and what the consequences might be.  That seems like a drunk looking for their car keys.

 

The commentary on the financial networks is getting very heavy handed in some cases, and almost surreal overall.

 

Have a pleasant evening.