Thursday, April 15, 2010

The Recovery That Isn't: Jobless Claims Going the Wrong Way

I don't care what that monkey Steve Liesman on CNBC says, the jobless claims numbers are getting bad again.  The headline number was 484,000, seasonally adjusted. The raw, unadjusted number was 514,742 an increase of 99,730 from a week earlier. The Extended Unemployment Claims jumped 261,817 to 5,855,301 from the previous week. That number represents the number of people who are on the 2 1/2 year jobless benefits payroll.  Here's the link: BLS Raw vs. CNBC BS

Now, here's a chart that CNBC DIDN'T show you this morning. I borrowed this from Casey's Daily Dispatch. This chart shows the amount of money States now have borrowed in order to hand out jobless benefits:

Take a good look at that chart.  It shows 10's of billions in extra deficit spending that does not show up in Obama's Budget Mathematics. Note that California has borrowed nearly $10 billion to keep food on the tables of its unemployed. See the chart in a post below for another view on the unemployment numbers.

This economy is NOT improving.  I combed thru JP Morgan's SEC filed 8-k report yesterday.  It's much more revealing than what you might have seen reported on CNBC or the WSJ.  JP Morgan's earnings yesterday reflected largely mark to market mark-ups on balance sheet positions that it can't get rid of.  Paper profits - not cash.

In fact, most of the earnings that will be reported this month for last quarter will be the result of GAAP garbage. The truth is found by taking the extra step to dig up the real "grassroots" numbers which get egregiously distorted by the Government and mainstream financial media. Please note that's a polite way to say that the Government and CNBC are full of sh!t.


  1. interesting that with mark to BS, all the money that has been funneled to the banks--all the off balances sheet crap (ala Enron) still around if we could see it--the 18 largest banks still have to do window dressing at quarter end to maintain capital ration to stay in business so they can continue their prop desk businesses so the chosen few can get massive bonuses.

    Ya can't make this stuff up.

  2. LOL. We all read Orwell in high school. He wrote about this in the 1950's...It's replay of Goebbel's and the 3rd Reich, only with different colors and flavors. Old wine in a new bottle, as one of my college English professors used to like to say.

  3. Only this time it's going to take out the whole world in a Tower of Babel analog.

  4. The propaganda/spin machine is in fifth gear-- have you guys seen the recent covers of Newsweak and Businessweak? Talk about Orwellian...


    Great piece!

  6. "Anonymous" asked how JPM and HSBC can get away with shorting the crap out of silver and gold and not be held accountable (I can find where the comment posted).

    The answer is that they will be held accountable if enough longs take delivery some month. Right now JPM is short close to 200mm ounces of silver on the Comex. But there's only about 50mm ozs. deliverable ("registered"). One of these days a "big boy" will stand for delivery and JPM AND the Comex will be in trouble.

    There has been a LOT of silver leaving SLV in the last several weeks (over 14mm ozs.) and the Comex has seen some unusually big withdrawals as well.

    The day of reckoning for the bullion banks is not far off.

  7. "There has been a LOT of silver leaving SLV in the last several weeks (over 14mm ozs.) and the Comex has seen some unusually big withdrawals as well."

    Sorry, that was me. Couldn't help it!
    Obviously kidding.

  8. LOL. I know you LOVE your silver almost as much as you love those beef BBQ ree-ibs!