73% of all jobs "created in the last 5 months are Government jobs: LINKThese are not GDP-producing jobs, as jobs created by the Government are a result of tax revenue generated by the economy: In fact, it can be argued that every Government job created subtracts from the wealth of this country.
The Bureau of Labor Statistics should be re-named the Bureau of Laughable Statistics. I wasn't surprised when the headline number was reported to be an increase in jobs during November of 146,000, well in excess of the forecast increase of 80,000. But I was shocked by the reaction to the number by the cast of clowns on CNBC, who were in total disbelief. I was shocked because typically CNBC hypes and promotes a good number and "spins" a bad number into a good number. To me that is emblematic of the extreme degree of implausibility with the BLS jobs report now assumed by everyone.
Of course, as usual, it doesn't take much digging below the surface to find serious holes and inconsistencies: BLS report Right off the top, the BLS posts a disclaimer saying that Hurricane Sandy did not affect the sampling results. Well, if that's the case, then why bother mentioning it other than in a footnote, like everything else? The Government has qualified every other weak economic report released since the beginning of July as being affected by the hurricane. This one isn't? LOL
The real shocker was the downward revision to October's reported headline number. Originally coming in at 171,000, it was revised down to 138,000. 31,000 jobs disappeared with computer keystroke at the BLS. Recall, very few analysts were not skeptical of the 171k reported and the BLS just confirmed why. I would suggest that we will see a massive downward revision to the number released today when December's headline is reported next month. Please note that the revisions are not typically reported in mainstream media news reports.
But I don't have to shoot holes in this report. The Census Bureau released a report yesterday in which it measures the unemployment rate at 8.3% vs. today's BLS' reported 7.7%. Furthermore, Gallup's index which measures the intentions of small businesses to hire in the next 12 months plunged to -4. The matches the all-time low for this index, which was hit previously in November 2008. You can see the details HERE
The truth is that we'll never get the truth out of the Government. If you delve into the depths of the BLS employment report, even their own more comprehensive measurement of the level of unemployment in this country shows 14.4% unemployment. The way that metric is calculated more closely resembles how the unemployment was calculated 30 years, before the real statistical manipulation of economic numbers started occurring.
Just one more point about this. It won't be too long before the number of people receiving some form of Government support payment will outnumber the number of people paying for those payments (taxpayers). The payees will outnumber the payers. Make no mistake about it, as tragic and catastrophic as this is for our system, it is going to get worse. I can guarantee you that it will mean more debt accumulation, more money printing/currency devaluation and much higher prices in store for precious metals.
Have a great weekend.