Non-Farm Employment Nonsense: Down The Rabbit Hole

The US economy is a house of cards. Every aspect of it is fraudulent, and the illusion of recovery is created with fraudulent statistics.   – Dr. Paul Craig Roberts

While mainstream America will be greeted with news about the huge number of new jobs “created” in April, the truth is that the number of people employed in this country declined in April – by a significant amount.

I’m not going to go through the brain damage of dissecting the numbers other than report the fact that the Labor Force declined by 806,000. Most of that number is likely people who fell off the cliff of long-term jobless benefits. The labor force participation rate is now below 63%. The last time it was this low was March 1978.  This graph shows the “Civilian Labor Force Participation Rate,” which is the number of people employed plus the number of people considered “unemployed” as a percentage of the size of “working age” population.

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In addition to nearly  one million people “disappearing” from the labor force, the Government’s nefariously fraudulent “birth/death” model plugged 234,000 jobs into its statistical model.

Given the natural monthly growth of the population in this country, and given that over a million workers either disappeared down the rabbit hole or were fabricated by the Government statisticians,  it is likely that April in actuality experienced a big decline in jobs.  But the Government would never admit to that.

At least we can see from the reaction to the number in the markets that the stock market and the gold/silver market do not believe the report.  Initially the S&P 500 futures spiked up and gold and silver were trashed.  Now, as I write this, the SPX futures are red – down 9 points from the apex of their spike – and gold and silver have snapped back to resume the rally in the metals that started overnight.

I think that’s all you need to know about the number.

The thick smoke of Orwellian lies billowing out of Washington, DC  – i.e. the White House, Capitol Hill and the Federal Reserve – has become so noxiously thick that it leads me to believe that the House of Cards referred to as “the United States” is getting close to being blown away.

10 thoughts on “Non-Farm Employment Nonsense: Down The Rabbit Hole

  1. Silver is now finally starting to move up convincingly up $0.55 to $19.6. That’s a big jump. Gold is up $18 to $1,302. Is this rally going to last? JP Morgan yesterday said gold will never see $1,300 again. Well we know who is wrong.

    1. http://www.mining.com/morgan-stanley-gold-price-wont-see-1300-again-92623/
      Morgan Stanley(not related to JPMorganChase) has a history of creating a cacophony of spin to sooth their clients who might smell the “billowing smoke” Dave referred to today.
      See the headlines they generated thoughout 2014 for example: “Gold bear market to resume”, Gold least preferred asset”, “Gold to struggle” here using a Google search of “morgan stanley gold” @ https://www.google.com/search?q=morgan+stanley+gold&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
      If Morgan Stanley et al, like currency market volatility for their trades now, imagine what they will have when the dollar index acquires a habit of repeating today: http://quotes.ino.com/charting/index.html?s=NYBOT_DX&v=s&t=c&a=2&w=15

      1. This would be the same Morgan Stanley whose only acquaintance with the bullion market was taking money from clients and supposedly buying and storing gold and silver for them but having to later admit that they’d never bought any? Yet they were collecting storage fees from these muppets, er, clients for years.

        That Morgan Stanley?

  2. Great stuff dave as usual.
    The propaganda is the thickest that I can remember, what a pathetic government .

    Thanks for the posts, they help keep me sane.

  3. Same smoke was blowing before the crash of 2008. We all know that another one is long overdue.

    The numbers don’t tell if they were full-time jobs v.s. part-time/contract jobs/sales-commission jobs. Will either party force the BLS-BS to break down the numbers? hell, no – that would ruin the party they’re having right now.

  4. The labor participation rate is best measure. U3 is official (bogus) number, U6 is a little better because it includes PT workers (many are PT who want to be FT). Sure the economy is a little better, but not that much. QE mostly went to (zombie) banks and levitating stocks. Not much for Main St. We are either on the road to Argentina or Japan. Right now it looks like Japan, but will consider other opinions. :)

    “There are three kinds of lies: lies, damned lies, and statistics.” – Mark Twain
    “Practical politics consists in ignoring facts.” – Henry Adams

  5. Physical gold and silver behaving for the paper trades is at best unbelievable and laughable ! The physical metals should NOT be taking the orders from the paper make believe world of gold and silver. The capping of future rising metal prices are clearly a desperate move by the CME.
    A long overdue dynamic comprising of the physical headlining the true prices must take place .
    There are many indicators leading to this. Downward supply of world oil , world pressure to squash the US dollar as world currency by the BRIC nations , a finite amount of both gold and silver available to the world , industrial usage of silver , are but a few driving forces in place that will not go away.
    Until physical gold and silver miners collectively realize that they are not some dog with an electric collar around their neck, afraid of being shocked for straying out too far , the procedure will continue to partake in the grand paper circle jerk !

  6. Bank of America Finds a Mistake: $4 Billion Less Capital

    Bank of America disclosed on Monday that it had made a significant error in the way it calculates a crucial measure of its financial health, suffering another blow to its effort to shake its troubled history.

    The mistake, which had gone undetected for several years, led the bank to report recently that it had $4 billion more capital than it actually had. After Bank of America reported its error to the Federal Reserve, the regulator required the bank to suspend a share buyback and a planned increase in its quarterly dividend.

    http://dealbook.nytimes.com/2014/04/28/bank-of-america-suspends-buyback-and-dividend-increase/?_php=true&_type=blogs&_php=true&_type=blogs&_r=1&

    The banking industry is going down a snake hole itself.

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