Non-Farm Payrolls: There’s Not Enough Lipstick In The World To Pretty Up This Pig

Every good lie has to retain an element of truth. If today’s non-farm payroll report is the best possible lie, how bad is the truth?  – Investment Research Dynamics

Well, now we know why they aggressively and blatantly tried to push gold as low as possible this week.  Is this the best they got?

I am not going to discuss the actual details of what was reported in today’s NFP (non-farm payroll report). This serves no purpose other than to imbue the numbers that were reported with some sense of legitimacy.   The numbers are a fairytale and I’m not in the business of engaging in a debate over the “finer points” of fantasy-derived fiction.

Having said that, and given that the August lie was revised lower by 21%…think about that for a moment:   the stock market screamed higher on a number originally reported in September that they decided was incorrect by twenty-one percent…let that sink in for a moment…one has to wonder just how bad the truth is that lies beneath the carefully constructed fiction.  

If you take a paint-scraper to the heavy latex paint applied on top of the facade, just how badly damaged is the underlying structure?

Again, without giving any assent to the validity of the number that was reported, the Government is telling us that the percentage of the population that is “participating” in the labor force is at its lowest rate since 1977.   That is a staggering statistic because in 1977 this country was largely still a one-income producing household. So how catastrophic is the real number? 

Interestingly, after the “number” was reported, the S&P 500 futures embarked on a 40 point reversal from the 10 point gain that the Fed had managed to achieve overnight.  A 40 point reversal that was not just a “flash crash” because it took several minutes to transpire.  Conversely, gold had been pushed lower by Yellen’s gang and it embarked on a $33 dollar upward reversal.

The reason this is interesting is that if this “miss” by a major “economic” report had occurred 3 months ago, the S&P 500 would have spiked up 30-40 points on the “renewed” indication that the Fed would not raise interest rates at the next meeting. Conversely,  gold would have been slaughtered because the only way to smear the lipstick of legitimacy on ZIRP is to make sure gold stays in a dungeon.

Something has changed in the complete character of the market and the Fed’s ability to manipulate it. We saw this a couple weeks ago when the stock market behaved scatologically – and gold shot higher – after the Fed deferred (predictably by me) on hiking Fed funds by even a tiny amount.

The Fed is losing control of a system that is rapidly collapsing from countless skeletons in the closet that have come to life.  Too much debt in every nook and cranny of the U.S. system;  hidden OTC derivatives bombs with lit fuses; impending emerging market sovereign bankruptcies; declining tax revenues and State/local Governments on the verge of insolvency;  a real economy that is in a frenetic downward spiral; the most overvalued stock market in history (when you strip out all the accounting gimmicks piled into what is being reported by S&P 500 America).

Perhaps most frightening is a political system with the wheels coming off.  A good friend and colleague of mine – and someone who was actively involved in politics at one time – commented, after Boehner announced that he was quitting the job he was elected and paid well to do, that he couldn’t recall ever seeing so many “insiders” voluntarily leaving the system (Congressmen, Bernanke, high profile hedge fund managers) as we’ve seen the past couple years.

And now guys like Carl Icahn are openly stating that the system is fake and will sooner or later crash.  This is the guy who got rich off of exploiting and front-running waves of dumb money piling into the the markets (he was an original beneficiary of Drexel Burnham’s junk bond odyssey).

Something really devastating is coming at us in the system.  The insiders see it but we can only see and interpret the smoke signals that are leaking out from the cracks in the Orwellian wall that has been built over the last 40 years which has prevented the herd from seeing the truth.

The best we can hope for now is that the insane neocons running the Department of Defense do not start pushing the wrong buttons as a means of deflecting our attention from a system that is economically, financially, politically and socially collapsing…

31 thoughts on “Non-Farm Payrolls: There’s Not Enough Lipstick In The World To Pretty Up This Pig

  1. Dave it´s not only the question about putting lipstick at one pig at a time.
    They are spraypainting 50 pigs at once.
    It seems like PPT are working overtime buying every stock in every company to keep them from crashing- how in the hell can they do that?
    These printed money (because that is what they are using) must turn up on a balance sheet somewhere.
    In the end the FED (PPT) will own every stock in every overvalued company and these stocks are worth zero.
    In the meantime I comfortably rellax in my sofa with popcorn and the assymetric hedges I have in place “waiting for the drunk falling in to the ditch”
    It´s like Zerohedges statement.
    “I feel like I´m taking crazypills”

    1. That might be their fall-back plan: (1) Buy stock with freshly printed money; (2) Get certificates for the majority of each meaningful company while everybody else is content holding digital positions that have been hypothecated and rehypothecated; (3) Step up for ownership or controlling interest of all major companies based on certificates in hand while everybody else is left holding the bag of broken promises.

  2. This is utter insanity. Just after 10 am the biotech indexes shot straight up, just like a switch had been turned on. The Nasdaq Biotech Index (NBI) is now up 1.86% and the S&P Biotechnology Sector Index is now up 2.72%. Does anyone think biotech is somehow immune to the rest of the economy? Most of these companies have zero revenues.

    1. Mark in Denver: You seeing what I’m seeing. A LOT of for sale and “coming soon” signs sprouting up and in some
      ‘hoods it’s an avalanche (go drive thru cherry creek north from Clayton to Jackson and from 6th ave down to 1st).

      I’m also seeing more “for rent” signs in Wash Park/Capitol Hill than ever before AND I’m even seeing them in Stapelton and Lowery. The “investor” who bought to rent then flip is going to get crushed.

      1. Dave,

        I was driving down University, Cherry Hills Village/Greenwood Village area, about 1-2 weeks ago and was blown away by the number of for sale signs. I live in Castle Rock, in a very modest area and the summer was crazy, nothing lasted more than a few days before it was sold. Not much listed now, at least in my neighborhood.

        Jason

  3. Did the five year Wall Street wet orgasmic dream that”The Fed is going to raise rates soon because the economy is going to liftoff next quarter” finally die today?

    It should have died after the epic Fed September bluff but it didn’t. The markets have been ignoring ALL domestic and international downward trending economic data because “US job creation is awesome.”

    Now we know why Yellen was choking on her own BS the other day! She just realized she got left holding the dog shit bag and is going to have to eat it!

    Will she dare resign?

    1. My bet would be that Yellen was poisoned by the PTB in order to make it crystal clear they are serious about Stanley Fisher taking over.

  4. This article should be read by every sheeple and fainting
    goat in America. This is going to get real bad and I personally
    can feel the g forces accelerating.
    Thank you for the quality work that you produce.

  5. Well chosen and highly accurate words Dave, great write-up. Hopefully Putin’s chess moves will neuter the DoD fools, but I’m sure they’ll keep up their bullying in various locations just to make themselves feel relevant. As far as the wall of deceit, and DB in Germany, I wonder if they already collapsed and were bailed-out in secret as part of some wierd agreement. Who the fuck knows at this point. Wife & I added 20% to our physical gold holdings last weekend, tightness is getting serious. We’re thinking of storing half our phyzz with her sister in Beijing.

    1. Imagine how times have changed because of access to independent media like Daves website and others.
      30 years ago (at least here in Sweden) Soviet was always the bad guy and the west (USA) was always the good guy and all the propaganda was forcefed by countless movies from Hollywood.
      Thanks to internet nowadays you can see both sides of the coin and decide for yourself and the ugly gets better and the “good guys”look like shit.
      As a Swede I´m amazed by how many Americans who really hate their corrupt stinking government.
      As a Swede I have been pissed of by this country for a long time and haven´t watched a Swedish news program for 2 years.
      In Sweden all news are dictaded by Washington since we are a puppet state so ther is no use watching it you might as well watch Kardashians ass.
      The dumbing down goes on here as well and I recognise everything you talk about except we don´t have a police state yet but we will soon have one in order to keep all the importedarabs at bay.

      1. Dude, we quit chanting USA, USA about 7 years ago. Those of us paying attention anyway.

        The problem we have is trying to determine how long this can continue and when the fraud ends…what the fuck is our country perhaps world going to look like.

        I don’t laugh at preppers anymore and I’m amazed at how guys like Dave can keep chugging along. I don’t even want to comment anymore. I cannot tell you how ridiculous I feel watching CNBC and listening to those young idiots talking about our economy as though it is real.

        Our country was once great. The last day- was long ago.

      2. Lars:

        Unfortuantely, there’s only a few Americans who suspect that our government lies about most things were told. In fact, most Americans know very little about the government at all and only care about the latest gossip regarding Kardashian’s ass or their favorite NFL team. I think the reality is that most Americans just don’t want to believe the truth about the government and the poor state of our economy because of the implications. Nevertheless, there are a few truth seekers here and the number is growing slowly but steadily. Good luck to you in Sweden and keep stacking!!!

        1. Yes, I merely suggested that the Oregon shooting was a hoax on a mountain biking forum I hang out in and everyone is up in arms and then they bring up 9/11 and I explain some simple undeniable evidence of what it actually was but no one has any interest in even looking at the evidence or understanding the truth, they actually want to delude themselves, it’s much easier on the mind. It’s hopeless I’m afraid. After a few posts of me defending my positions and presenting evidence, I get banned for a week. And it’s in the Off – Topic branch too, I got banned because I talked too much politics and because “I made the moderator angry”, but I wasn’t even the one to bring up the topic!

          1. I quit trying to “enlighten” long ago. Waste of time. Save yourself grief. I cannot, however, argue with your intentions.

  6. If the neo-cons start another shakedown of another poor country it will be such obvious hooliganism nobody will believe any excuse. Even now people only watch or listen to news just to see or hear “live” people…nobody believes a word of anything. The real issue is…how much criminality are WE the people willing to turn a blind eye to if we feel our own lifestyles are in jeopardy? How cynical are the American people? That’s what the world is wondering. How cynical are we rather than “come to Jesus” and attempt a better society? It would mean changes, but not necessarily catastrophe. That might follow if we don’t, though.

    1. The problem in trying to discuss the criminality of the system as a whole is there is no single America any longer, if there ever was. The takers pay not attention at all to anything involving the government so long as the next check arrives. When the checks either stop of the total amount will maybe buy a six pack of cheap stuff, then something’s gonna happen. My own guess is martial law or a variant. I mean what else are the geniuses running the government going to do? And it does strike me as inevitable that the checks must either stop or lose their purchasing power. If you live in an urban area, good luck, you’ll need it. Those of us in rural areas aren’t exactly expecting a party but it seems likely things won’t get as bad out of the cities and suburbs. It regularly hits 20-30 below in the winter where I live and I suspect that will discourage the urban scum. If not they’ll rot in the spring.

  7. I like it that the charade blows up on obama’s watch. That Marxist
    scumbag promised to fundamentally change America but I think
    even that self serving foreign born prick will be surprised how
    much the country is about to change and how vilified he is about
    to become.

    1. Sadly, like most corrupt leaders, he gets away with it, and is protected by the country that he destroys; to boot. Human nature has not changed since Roman times. We will not survive as long as did the dino’s.

    1. I saw that video. I believe Icahn is hedging his bets for the next chapter in American history. He doesn’t want the masses gunning for him when he and his wife go out for a night on the town, or his kid goes for a bucket of ice cream. I have family in Venezuela and they are always worried about being kidnapped, robbed, or shot because they were in the wrong place at the wrong time. FYI..all three have happened to one member or another just over the last year or so. Their stories are more like the recollection of a nightmare. Tough to see them trying to re-invent themselves well into middle age. Their kids at least have youth and vitality for a new start. They can’t continue living in Venezuela but the idea of relocating to a foreign nation whose language is not their own, with no family or friends availble for support, is more then they can overcome. They’ve always saved in Dollars, which has saved them from Venezuela’s hyper-inflationary collapse. It breaks my heart imagining what internal and external pain they will have to overcome when that last pillar of dependability has been removed.

  8. The truth is that the unemployment data from the Bureau of Liars Statistics has become a meaningless defunct statistic that the government still like to use because it now only reflects low paying jobs that do not pay a livable wage being created. The labor utilization rate is around 61 or 62% still falling every month. Worker wage elasticity has reached its peak and the American middle class has no more money to spend. raising the interest rate will not help the economy grow while commodity prices and bonds continue to fall. Wall St should support a work driven manufacturing economy rather that the greed and hoard economy we are seeing from the big banks, the military-industrial complex and the insurance-healthcare complex. You can only fight organized greed with organized labor and perhaps some industry wide strikes will bring up the pay for the long over due low wage earners.

  9. Lip stick on a pig, add a wig. An old whore in a new dress, “covering the ugliness” …trying to stay up wind from the stench! Prep and prepare for the end !

    This not coming to a theater near you – “Hellman and Deceived” … It’s not a movie about a road trip with our leaders drunk with power behind the wheel, while we sleep with troubled dreams or substance induced nightmares in the back seat as we hurl toward the cliff with the [jackboot] too the floor… Kind’ a like ‘’Thelma and Louise”; just not as sexy… “Hang on to your knickers”, this is going to get ugly!

    Thank you for your hard work and honest reporting!!!!

  10. Here is an interesting “sales” piece by CIA/Pentagon/FED/LTCM insider Jim Rickards: http://research.agorafinancial.com/research/html/awn_accountinghoax_0815/?code=MAWNR918&ver=1&o=10448&s=10890&u=164807&l=116315&g=0&r=MC2&a=24&n=AWN_accthoax_0815
    This insider claims to be warning his fellow americans of the fed’s imminent collapse–how is it that his insider is able to offer this derogatory [at best] info–while remaining an insider? How it be that his real sales piece agenda is to legitimize the fall of the US dollar while [fed leveraged 70:1] while also legitimizing the introduction of the IMF’s SDR.
    You can’t have a NWO without a NWO currency {SDR]–these shady characters have not lost control–the plan goes as planned. The adjustment(s) to the elimination of sovereign currencies [worldwide] will be painful if not fatal for those unprepared.
    Also, the VW thing–it seems that the German’s are resisting dilution of their culture while also having to carry the weight of the NWO european machinations–and so their auto, jet and turbine industries are being attacked to keep the Rhineland in line. Rage, rage against the dying of the light!

  11. And the physical plant (infrastructure) is crumbling. Highways, bridges, water systems, sewage treatment plants ad infinitum. While you still have some cash go to the Republic of the Philippines and take a good long look around. That is our future.

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