When I read the AP’s story on the unemployment rate I decided to really dig deeper into the story and analyze it word for word. Even in their reporting the AP lets the cat out of the bag and reveals the strategic ploy by the Labor Department in how exactly they come up with an 8.8% unemployment rate for the month of March. It’s simple: They don’t count everyone like they should. If you count the number of people who stopped looking for work our unemployment rate would be well above 10%, maybe even higher than that. Although I shouldn’t use the word “would” because our unemployment rate I believe tops out at a higher level than Gallop’s finding of 10.2%. Now, I’m not one to simply lay out an argument without facts. Just look at what the AP said in its report on job creation and unemployment for the month of March:
“A big factor in the lower unemployment rate is that the proportion of people who either have a job or are looking for one is surprisingly low for this stage of the recovery.
People who stopped looking for work during the downturn are not counted as unemployed. If many out-of-work people start looking for work again, they will be counted and the unemployment rate could go up. That could happen even if the economy is adding jobs.”-AP Report, April 1st, 2011
Think about that passage right there. It says the Labor Department doesn’t count those who have stopped looking for work. It also states that the low unemployment rate stems in large part from an unusually low proportion of those who either have a job or are looking for work. So basically the Labor Department considers the unemployed as not unemployed? DO they realize that if you’re looking for work you’re unemployed? Is this some kind of new conventional wisdom that no one even attempts to challenge? The Labor Department is purposely ignoring the very definition of what constituted unemployment…UNEMPLOYED PEOPLE!
The media trumpets these so called signs of strong economic growth like a child his or her parent’s every move. What’s equally troubling is the issue of inflation. Right now the last line of defense between economic stability and a complete financial meltdown is the Fed’s taming of interest rates and the continued flood of paper into the open wound of the markets. And my friends you wonder why president Obama and the Democrats don’t want a balanced budget anytime soon or at least before 2012? It’s simple math really: If spending is cut well below the current proposed levels pushed out there then yes the economy will slow down for sure because our economy is basically being eased on what I would call the monetary equivalent to morphine. The FED pumps money which creates a bubble that props up the economy and has some effect on the unemployment rate.
If we cut spending that will slow the economy because our economy is running on paper and nothing else. We’re not creating jobs fast enough, nor are we creating enough jobs in the right areas for a full fledged and stronger recovery, one that will not burst if we cut spending and balance the budget. This has been the plan ever since Ben Bernanke announced the first round of interest rate cuts gosh, I don’t even remember when that was its been so long. This economy has become a house of cards sitting near the edge of a glass table and the table is placed under a large rock hanging from a thin piece of string.
The Obama administration with one hand stifles private sector growth and confidence while the other hand drowns the system with money and low interest rates which creates an illusion of equity which creates a false recovery.
Now here comes the scary part:
Sooner rather than later the FED will have to raise interest rates and I predict, and obviously I’m not the first nor the last to hold this view, inflation will set in and that my friend along with the coming housing crisis that everyone seems to be ignoring will expose our paper economy for what it truly is and has been since Obama took office: An economy built and propped up largely by a mountain of borrowed and printed dollars, missed targeted tax credits, a promised tax hike in two years, yeah that’s still coming don’t you worry, a health care law that has caused the price of private insurance to shoot through the sky, and if he gets his way new energy policies that in his words necessarily raise the price of energy.
Folks it ain’t hard to put two and two together, unfortunately we have an administration who’s trying to put two and two together and tell us it equals fourteen and not four. Yet no one calls them on their obvious tampering with simple mathematics and economic data. I’m still wondering if this recovery actually exists, because so far our unemployment rate, if you can call it that seeing as though the Labor Department doesn’t actually count the very component needed to even have something called unemployment, jobs are being added and cut at the exact same time, our debt and deficit continue to grow, the dollar is weaker at this point in our history than any other, GDP growth is barely above 2%, our real unemployment rate is somewhere between 11 and 15%, you know if you actually count unemployed people, and yet we here this collective BS campaign from the White House via their media arm that happy days are here again. Well maybe they are if you measure what happiness is nowadays. If just barely making it, having wages, flat wages I might add but wages nonetheless, temporary work and expensive free health care with your 26 year old son with the full grown beard living in your basement on your health plan equal happiness then yes, happy days are truly here once again.