Fake Employment Numbers – And 5 More Massive Economic Lies The Government Is Telling You

Lies - Photo by Rob KosterAccording to a whistleblower that has recently come forward, Census employees have been faking and manipulating U.S. employment numbers for years.  In fact, it is being alleged that this manipulation was a significant reason for why the official unemployment rate dipped sharply just before the last presidential election.  What you are about to read is incredibly disturbing.  The numbers that the American people depend upon to make important decisions are being faked.  But should we be surprised by this?  After all, Barack Obama has been caught telling dozens of major lies over the past five years.  At this point it is incredible that there are any Americans that still trust anything that comes out of his mouth.  And of course it is not just Obama that has been lying to us.  Corruption and deception are rampant throughout the entire federal government, and this has been the case for years.  Now that some light is being shed on this, hopefully the American people will respond with overwhelming outrage and disgust.

The whistleblower that I mentioned above has been speaking to John Crudele of the New York Post.  In his new article entitled “Census ‘faked’ 2012 election jobs report“, he says that the huge decline in the unemployment rate in September 2012 was “manipulated”…

In the home stretch of the 2012 presidential campaign, from August to September, the unemployment rate fell sharply — raising eyebrows from Wall Street to Washington.

The decline — from 8.1 percent in August to 7.8 percent in September — might not have been all it seemed. The numbers, according to a reliable source, were manipulated.

Two years earlier, the Census had actually caught an employee “fabricating data”, but according to this whistleblower the corruption at the Census Bureau goes much deeper than that

And a knowledgeable source says the deception went beyond that one employee — that it escalated at the time President Obama was seeking reelection in 2012 and continues today.

“He’s not the only one,” said the source, who asked to remain anonymous for now but is willing to talk with the Labor Department and Congress if asked.

The Census employee caught faking the results is Julius Buckmon, according to confidential Census documents obtained by The Post. Buckmon told me in an interview this past weekend that he was told to make up information by higher-ups at Census.

Well, is it really such a big deal that some of the unemployment numbers were faked?

After all, hasn’t the unemployment rate been consistently going down anyway?

Unfortunately, as you will see below, that is simply not the case.  The following are five massive economic lies that the government has been telling  you…

“The Unemployment Rate Has Been Steadily Going Down”

According to the official government numbers, the U.S. unemployment rate has fallen all the way down to 7.3 percent.

That sounds really good, and it would seem to imply that a higher percentage of the American people are now working.

Sadly, that is not the truth at all.

Posted below is one of my favorite charts.  The employment-population ratio measures the percentage of the working age population that actually has a job.  As you can see, this number fell dramatically during the last recession and since the end of 2009 it has remained remarkably flat.  In fact, it has stayed between 58 and 59 percent for 50 months in a row…

Employment-Population Ratio November 2013

At the moment, the employment-population ratio is just one-tenth of one percent above the lowest level that it has been throughout this entire crisis.

So are we in an “employment recovery”?

Absolutely not, and anyone that tries to tell you that is lying to you.

So how is the government getting the unemployment rate to go down?

Well, they are accomplishing this by pretending that millions upon millions of unemployed Americans have disappeared from the labor force.

According to the government, the percentage of Americans that want to work is now supposedly at a 35 year low…

Labor Force Participation Rate

If the labor force participation rate was still exactly where it was at when Barack Obama was first elected in 2008, the official unemployment rate would be about 11 percent right now.  People would be running around going crazy and wondering when the “economic depression” would finally end.

But when people hear “7.3 percent”, that doesn’t sound so bad.  It makes people feel better.

Of course if you are currently unemployed and looking for a job that doesn’t exactly help you.  At this point there is intense competition even for minimum wage jobs in America.  For example, according to Business Insider you actually have a better statistical chance of getting into Harvard than you do of being hired at a new Wal-Mart that is opening up in the Washington D.C. area…

The store is currently combing through more than 23,000 applications for 600 available positions, reports NBC Washington.

That means that Wal-Mart will be able to hire one person for every 38 applications it receives — i.e., just 2.6% of applicants will walk out with a job.

That’s more difficult than getting into Harvard. The Ivy League university accepts 6.1% of applicants.

“Inflation Is Low”

This is another lie that government officials love to tell.  In particular, the boys and girls over at the Federal Reserve love to try to convince all of us that inflation is super low because it gives them an excuse to recklessly print lots more money.

But anyone that goes to the grocery store or pays bills on a regular basis knows that there is plenty of inflation in the economy.  And if we were being given honest numbers, they would show that.

According to John Williams of shadowstats.com, if the U.S. inflation rate was still calculated the exact same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.

But the Federal Reserve certainly doesn’t want everyone running around talking about “Jimmy Carter” and “stagflation” because then people would really start pressuring them to end their wild money printing schemes.

And without a doubt, what the Fed is doing is absolutely insane.  The chart posted below shows that the M1 money supply has nearly doubled since the beginning of 2008…

M1 Money Supply 2013

“Quantitative Easing Is Economic Stimulus”

How many times have you heard the mainstream media tell you something along these lines…

“The Federal Reserve decided today that the economic stimulus must continue.”

There is just one thing wrong with that statement.

As I showed in a previous article, it is a total hoax.

In fact, a former Federal Reserve official that helped manage the Federal Reserve’s quantitative easing program during 2009 and 2010 is publicly apologizing to the rest of the country for being involved in “the greatest backdoor Wall Street bailout of all time”…

I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.

Yes, quantitative easing has most certainly helped Wall Street (at least temporarily).

Meanwhile, median household income in the U.S. has fallen for five years in a row.

Meanwhile, the federal government is now spending nearly a trillion dollars a year on welfare.

Meanwhile, 1.2 million students that attend public schools in America are now homeless.  In fact, that number has risen by 72 percent since the start of the last recession.

“Obamacare Is Going To Be Good For Middle Class Americans”

There were three giant promises that were used to sell Obamacare to the American people…

#1 We would all be able to keep our current health insurance plans.

#2 Millions more Americans were going to be covered by health insurance.

#3 Most Americans would be paying lower health insurance premiums.

Well, it turns out that all of them were lies.

At this point, approximately 4 million Americans have already had their health insurance plans canceled due to Obamacare, and according to Forbes that number could ultimately reach 93 million.

And so far only about 100,000 Americans have actually signed up for Obamacare, so that means that the number of Americans with health insurance has dropped by about 3.9 million since the beginning of October.

Good job Obama.

Meanwhile, Americans all over the country are being hit with a massive case of sticker shock as they start to realize what Obamacare is going to do to their wallets.

According to one study, health insurance premiums for men are going to go up by an average of 99 percent under Obamacare and health insurance premiums for women are going to go up by an average of 62 percent under Obamacare.

And if you are a young man, you are going to get hit particularly hard.  At this point, it is being projected that health insurance premiums for healthy 30-year-old men will rise by an average of 260 percent.

But you don’t have to be young to pay higher premiums.  As I mentioned the other day, one couple down in Texas was recently hit with a 539 percent rate increase.

“The U.S. National Debt Is Under Control”

The mainstream media would have us believe that the budget deficit is now under control and the U.S. national debt is not a significant problem any longer.

But that is not the truth.

The truth is that we are on pace to accumulate more new debt under the 8 years of the Obama administration than we did under all of the other presidents in all of U.S. history combined.

Every single hour of every single day, our politicians are stealing about $100,000,000 from future generations of Americans.  It is a crime so vast that it is hard to put into words, and it is literally destroying the economic future of this country.

Over the last 13 and a half months, the U.S. national debt has increased by more than 1.12 trillion dollars.

If you were alive when Jesus Christ was born and you had spent a million dollars every single day since then, you still would not have spent that much money by now.

And most Americans don’t realize this, but the U.S. government must borrow far more than a trillion dollars each year.  Trillions more in existing debt must be “rolled over” just to keep the game going.

For example, the U.S. government rolled over more than 7.5 trillion dollars of existing debt in fiscal 2013.

So what is going to happen someday when the rest of the world pulls out and stops lending us trillions of dollars at ridiculously low interest rates that are way below the real rate of inflation?

Our financial system is far more vulnerable than we are being told.  We are in the terminal phase of the greatest debt bubble in the history of the planet, and when this bubble bursts it is going to be an absolutely spectacular disaster.

Please don’t believe the mainstream media or the politicians when they promise you that everything is going to be okay.

The Number Of Private Sector Jobs Fell By 278,000 Last Month But The Economy Is Getting Better?

Barack Obama Oval OfficeHave you heard about the “wonderful” employment numbers that were just released?  Last month, the unemployment rate declined to 7.3 percent.  Somehow this happened even though the percentage of working age Americans with a job actually declined and the number of private sector workers fell by 278,000.  So how did the federal government magically produce a drop in the unemployment rate even though less people have jobs?  Well, they did it by pretending that more than half a million Americans “dropped out of the labor force” last month.  If the government is to be believed, the number of Americans that want to work dropped by an astounding 516,000 in a single month even though the population of our country is constantly increasing.  The federal government continues to feed us absolutely absurd numbers month after month, and at this point “the official unemployment rate” is essentially meaningless.

But that doesn’t mean that Barack Obama is about to drop the charade.  In fact, he continues to insist that the economy is getting better.  The following is an excerpt from one of Obama’s recent weekly radio addresses

Over the past four and a half years, we’ve fought our way back from the worst recession of our lifetimes. And thanks to the grit and resilience of the American people, we’ve begun to lay a foundation for stronger, more durable economic growth.

Oh really?

Does he actually believe that anyone is still buying what he is saying?

The cold, hard truth is that the U.S. economy has not recovered while Obama has been in the White House.  If you doubt this, please see my previous article entitled “33 Shocking Facts Which Show How Badly The Economy Has Tanked Since Obama Became President“.

Since World War II, the percentage of working age Americans that is employed had always bounced back dramatically after a recession ended.

Unfortunately, that has not happened this time.

As you can see from the chart posted below, the percentage of working age Americans with a job has stayed below 59 percent since late 2009.  This chart reflects the most recent employment numbers…

Employment-Population Ratio 2013

So where is the recovery Obama?

Can he possibly put a positive spin on the chart above?

Of course not.

The truth is that the official unemployment rate should still be up around 10 percent like it was a few years ago.

But that wouldn’t make Obama look very good, would it?  So the U.S. government has been pretending that millions upon millions of Americans have been “leaving the labor force”.  This has pushed the labor force participation rate to a 35-year-low

Labor Force Participation Rate

At this point, we have more than 90 million Americans that are considered to be “not in the labor force”…

On Friday, the BLS reported that the 90,473,000 Americans not currently in the labor force marked the first time the figure exceeded the 90 million threshold.

In January 2009, when President Obama first took office, there were 80.5 million Americans 16 years and older not in the labor force, meaning the number of Americans not in the labor force has increased 10 million during his presidency.

For men, the BLS reported the labor force participation rate, the percentage of the population working or considered looking for work, was 63.2 percent in August, basically unchanged from 63.5 percent in July. It’s also a record low.

How low can that number possibly go?

Meanwhile, the quality of our jobs continues to decline rapidly as well.  If you can believe it, at this point more than 40 percent of all U.S. workers actually make less than what a full-time minimum wage worker made back in 1968.

As a result, the U.S. middle class is steadily dying.  The following is from a recent Yahoo article

It’s the elephant in the room no one wants to talk about…

The middle class in the U.S. economy is on the verge of collapse. Yes, I said collapse. That social class that once helped the U.S. economy grow and prosper is coming apart. Will the U.S. economy ever be the same without it or is this the new norm?

For much more on this, please see my previous article entitled “44 Facts About The Death Of The Middle Class That Every American Should Know“.

And unfortunately, things look like they may start getting a lot worse for ordinary Americans.

There are a couple of major events which could potentially cause our economic decline to accelerate greatly in September…

#1 Fed Tapering

Right now, there is not much demand for U.S. Treasury bonds.  Foreigners have become net sellers of U.S. Treasuries and domestic demand has become quite weak.  Without the Federal Reserve buying up tens of billions of dollars worth of U.S. Treasuries each month, where will the demand come from?

That is a very good question.  If the Fed starts to taper quantitative easing in September, that is almost certainly going to send bond yields soaring.  Already, bond yields have been rising steadily, and if they get too high it is going to be absolutely disastrous for the U.S. economy.

#2 War With Syria

If the U.S. attacks Syria, it will likely cause financial markets all over the planet to descend into chaos and send the price of oil skyrocketing.

And that assumes that the conflict is limited to only the United States and Syria.  If Syria decides to retaliate by launching missiles at Israeli cities, that will set off a major regional war in the Middle East and the consequences for the global economy will be off the charts.

So as bad as the U.S. economy is right now, the truth is that things could easily get much, much worse.

Let us hope for the best, but let us also prepare for the worst.

If You Think The Employment Numbers Are Good, Then You Really Need To Read This Article

Homeless Bill Needs Rich Woman Photo By Josh SwieringaDo you actually believe that the employment numbers are getting better?  Do you actually believe that there is a bright future ahead for American workers?  If so, then you really need to read this article.  The truth is that we are in the midst of the worst employment crisis since the Great Depression, and there has been absolutely no employment recovery.  In fact, the percentage of working age Americans that are employed is just about exactly where it was during the darkest days of the last recession.  But the mainstream media is not telling you this.  The mainstream media is instead focusing on the fact that the official “unemployment rate” declined from 7.6% in June to 7.4% in July.  That sounds like great news, but when you take a deeper look at the employment numbers some very disturbing trends emerge.

Over the past several years, almost the entire decline in the unemployment rate can be accounted for by people “leaving the workforce”.  The “unemployment rate” has not been going down because people are actually getting jobs.  Rather, the “unemployment rate” has been going down because the government has been pretending that millions upon millions of American workers simply do not want jobs anymore.  This is extremely misleading.

We are being told that 162,000 jobs were created in July.  Okay, so that is just barely enough to keep up with population growth, and most of the jobs that were created last month were part-time jobs.

Meanwhile, the jobs numbers for the two previous months were both revised down

The change in total nonfarm payroll employment for May was revised from +195,000 to +176,000, and the change for June was revised from +195,000 to +188,000. With these revisions, employment gains in May and June combined were 26,000 less than previously reported.

Will this month eventually be revised down too?

When it comes to measuring employment in the United States, I believe that a much more accurate measurement than the highly manipulated “unemployment rate” is the civilian employment-population ratio.  This ratio tells us what percentage of working age Americans actually have a job.

Just prior to the last recession, about 63 percent of all working age Americans had a job.  During the recession, that number plunged dramatically and ultimately fell below 59 percent, and it has stayed below 59 percent for 47 months in a row

Employment-Population Ratio 2013

This is the first time in the post-World War II era that the employment-population ratio has not bounced back after a recession.

So there has not been an employment recovery.  Anyone that tells you that there has been an employment recovery is lying to you.

Since the end of 2009, we have been treading water at best.  But during that time, another disturbing trend has emerged.  Good paying full-time jobs are rapidly being replaced by low paying part-time jobs.

And this trend has definitely accelerated this year.  If you can believe it, an astounding 76.7 percent of the jobs that have been “created” in 2013 have been part-time jobs.

As I wrote about last month, the employment landscape in this country is fundamentally changing.  At this point, the number one employer in this country is Wal-Mart, and the number two employer in this country is a temp agency (Kelly Services).

This is a huge reason why the middle class is dying.  You simply can’t raise a family on a part-time income.

Our young adults are being hit particularly hard.  According to Gallup, the percentage of working age Americans under the age of 30 with a job fell from 47.0% in June 2012 to 43.6% in June 2013…

Fewer Americans aged 18 to 29 worked full time for an employer in June 2013 (43.6%) than did so in June 2012 (47.0%), according to Gallup’s Payroll to Population employment rate. The P2P rate for young adults is also down from 45.8% in June 2011 and 46.3% in June 2010.

When our young people get out of school and enter the real world, they are finding that “good jobs” are few and far between.  But unless our young people can find “breadwinner jobs”, they are not going to be able to get married, buy homes and raise families.

A lot of young people are doing their best, but things are really tough out there right now.  The lack of good jobs is the primary reason why families that have a head of household under the age of 30 have a poverty rate of 37 percent.

A lot of young adults are coping with this employment crisis by moving back in with their parents.  According to one recent study, 36 percent of all young adults in the 18 to 31 age bracket are currently living with their folks.

Are you starting to understand that our system is broken?

The quality of jobs in this country continues to steadily decline.  Just consider the following numbers from one of my previous articles

-The number of part-time workers in the United States has just hit a brand new all-time high, but the number of full-time workers is still nearly 6 million below the old record that was set back in 2007.

-In America today, only 47 percent of adults have a full-time job.

-At this point, one out of every four American workers has a job that pays $10 an hour or less.

-An astounding 53 percent of all American workers make less than $30,000 a year.

And as I mentioned yesterday, until we have a jobs recovery there will be no housing recovery no matter how much the Federal Reserve tries to manipulate the system.

The mainstream media continues to insist that “things are looking up” for the housing market, and yet the home ownership rate in the United States is the lowest that it has been in 18 years.

In order for the middle class to thrive, people have got to be able to get good jobs and people have got to be able to buy homes.

Instead, the percentage of good jobs in our economy continues to shrink, the level of home ownership continues to decline, and less than half of all Americans now consider themselves to be middle class.

The next wave of the economic crisis has not even hit us yet, but we continue to see poverty rates soar all over the nation.  In fact, just this week there was an article about the tent cities that are starting to pop up all over New Jersey

Tent cities have popped up across New Jersey including the state’s poorest city.

Meg Baker chased the story of Camden’s tent city.  Residing off Route 38 at Wilson Boulevard under an overpass, through woods and down a path of trash lays a community of people living in tents.  This particular community was relocated from Federal Street and it’s inhabited by an array of people: addicts, people who have fallen on hard times and some with mental illness.

Baker took a tour of this run down community and the pictures show just how heart-wrenching this situation really is.  Among the homes are decomposing food, broken furniture, and feral cats.

This is supposed to be “the economic recovery”.

If things were going to get “better” it should have happened by now.

But things didn’t get better, and now the next wave of the economic crisis is rapidly approaching.

As I tried to explain the other day, the most important number in our economy is the yield on 10 year U.S. Treasuries.  As that number goes up, interest rates all over our economic system go up.  And much higher interest rates would be absolutely devastating for our economy.

Unfortunately, many analysts now believe that interest rates are going to go much, much higher than they are right now.  Just check out this excerpt from a recent CNBC article

The Federal Reserve will lose control of interest rates as the “great rotation” out of bonds into equities takes off in full force, according to one market watcher, who sees U.S. 10-year Treasury yields hitting 5-6 percent in the next 18-24 months.

“It is our opinion that interest rates have begun their assent, that the Fed will eventually lose control of interest rates. The yield curve will first steepen and then will shift, moving rates significantly higher,” said Mike Crofton, President and CEO, Philadelphia Trust Company told CNBC on Wednesday.

If interest rates do go that high, our economy simply will not be able to handle that.  It would cripple the finances of state and local governments all over the nation, it would absolutely crush the housing market, and it would cause a derivatives crisis unlike anything that we have ever seen before.

The smart money knows that rising interest rates spell big trouble and they are already pulling their money out of the market as a Bloomberg article recently detailed…

Private-equity managers from Fortress Investment Group LLC (FIG) to Blackstone Group LP (BX), which made billions by buying low and selling high, say now is the time to exit investments as stocks rally and interest rates start to rise.

And Apollo Global Management LLC Chief Executive Officer Leon Black said the following back in April

“It’s almost biblical: there is a time to reap and there’s a time to sow,” Apollo (APO)’s Black said at a conference in April. “We think it’s a fabulous environment to be selling. We’re selling everything that’s not nailed down in our portfolio.”

The smart money is getting out while the getting is good.

They know that a storm is coming.

They know what higher interest rates will do to the economy.

As bad as the employment picture is right now, this is NOTHING compared to what is coming.

This is about as good as things are going to get.  It is all downhill from here.

So enjoy this false bubble of pseudo-prosperity while you still can.

When the next great wave of the economic crisis strikes, millions upon millions of Americans are going to lose their jobs and the official unemployment rate is going to soar well up into the double digits.

Economic Bizarro World: Persistently High Unemployment And Skyrocketing Bond Yields Are Good?

Bizarro Up Is Down - Photo by RRZEiconsThe mainstream media is heralding today’s “fantastic” employment numbers as evidence that the U.S. economy is steadily recovering.  But is that really true?  The number of jobs created in June was just a little bit more than what is required to keep up with population growth, and the official unemployment rate remained at 7.6 percent.  And if you look deeper in the numbers, they don’t look very good at all.  The percentage of low paying part-time jobs in the economy continues to rise, the number of full-time jobs actually decreased and the U-6 unemployment number jumped from 13.8% in May to 14.3% in June.  That is a stunning increase.  And if the labor participation rate in this country was at the level it was at prior to the last recession, the official unemployment rate would be sitting at 11.1%.  But according to the mainstream media, all of this is wonderful news.  It is like we are in some sort of economic bizarro world where bad is good and down is up.

When the jobs numbers were released on Friday, Business Insider breathlessly declared that it “was jobs day in America, and America crushed expectations.”

USA Today ran an article on the jobs numbers with the following headline: “First Take: As job gains grow, optimism rises“.

But should we really be celebrating?

Posted below is a chart that shows the percentage of working age Americans with a job since the beginning of the year 2000.  This chart does include the jobs numbers that were released on Friday…

Employment-Population Ratio 2013

Can you see a “recovery” in there somewhere?

Am I missing something?

Let me look again.  This time I will squint really hard.

Nope – I still can’t see a recovery.

For three and a half years we have been stuck in a range between 58 percent and 59 percent.  We are way, way below where we were before the recession.

So can we please not even begin to use the word “recovery” until we at least get above the 59 percent level?

And most of the jobs that are being created are of very poor quality.  As I mentioned above, the figures show that the number of full-time jobs actually decreased last month.  And as Zero Hedge pointed out, manufacturing employment has actually declined for four months in a row…

Even as the manufacturing jobs continue to collapse, posting their fourth consecutive monthly drop in June to 11.964 million jobs, minimum wage waiters and bartenders have never been happier. In June Restaurant and Bar employees just hit a new all time high of 10,339,800 workers, increasing by a whopping 51,700 in one month.

Things are pretty good in America right now if you want to flip burgers or wait tables.  But if you want a good job that you can support a family with, things are getting even worse.

Meanwhile, bond yields soaring into the stratosphere.

The yield on 10 year U.S. Treasuries absolutely exploded today.  It opened at 2.50% and closed at 2.71%.  When I saw what had happened I could hardly believe it.

If bond yields continue to climb like this, it is going to cause some massive problems in the financial markets.  The following is from an article by John Rubino

A few things to look for: recalculations of the deficit in light of spiking interest costs, comparisons of US and Japanese yields and speculation about what this means for Japanese rates — followed by dire analyses of Japan’s future borrowing costs — and last but not least, a growing concern for the hundreds of trillions of dollars of interest rate derivatives that now have one counterparty deeply in the red.

Most Americans don’t think too much about bond yields, but if they keep spiking it is going to dramatically affect every man, woman and child in the entire country.

Yesterday, I described some of the consequences that rapidly rising bond yields would have…

And if interest rates on U.S. Treasury bonds start to rise to rational levels, the U.S. government is going to have to pay more to borrow money, state and local governments are going to have to pay more to borrow money, junk bonds will crash, the market for home mortgages will shrivel up and economic activity in this country will slow down substantially.

Plus, as I am fond of reminding everyone, there is a 441 trillion dollar interest rate derivatives time bomb sitting out there that rapidly rising interest rates could set off.

Never before have we had anything like the gigantic derivatives bubble that is hanging over global financial markets like a sword of Damocles.

As interest rates continue to go up, the derivatives bubble could burst at any time.  When it does, we are going to see financial carnage unlike anything we have ever seen before.

2008 was just the warm up act.  What is coming next is going to be the main event.

But in the economic bizarro world that we are living in, the mainstream media insists that skyrocketing interest rates are nothing to worry about.

Today, USA Today ran a headline that declared the following: “Investors: Don’t panic over bond yield spike“.

And Yahoo actually ran a story entitled “Why higher U.S. yields should cheer investors“.  Needless to say, the arguments in that story are not very convincing.

And in that story they even admit that record amounts of money were being pulled out of bond funds in June…

Capital is already flowing out of low-yielding bonds. PIMCO Total Return fund, the world’s largest bond fund, suffered record outflows of $9.6 billion in June, in a second straight month of withdrawals.

Mutual and exchange-traded bond funds lost a record $79.8 billion in June, according to TrimTabs Investment Research.

The rush for the exits in the bond market is threatening to become an avalanche.

I hope that this is not the beginning of a financial panic.  I hope that we have more time before the next major wave of the economic collapse strikes.

But I certainly cannot guarantee that things will remain stable.  Once fear starts to sweep through financial markets, things can change very, very quickly.

Where Is The Recovery? A Higher Percentage Of Americans Had Jobs Three Years Ago

Where Is The Recovery?If you think that the latest employment numbers are good news, you might want to look again.  In April 2013, 58.6 percent of all working age Americans had a job.  But three years ago, in April 2010, 58.7 percent of all working age Americans had a job.  Well, you may argue, that is not much of a difference.  And that is precisely my point.  The percentage of Americans that have a job fell like a rock during the last recession.  It dropped from about 63 percent all the way down to below 59 percent, and it has stayed below 59 percent for 44 months in a row.  So where is the recovery?  This is the first time in the post-World War II era that the employment-population ratio has not bounced back after the end of a recession.  So anyone that tells you that we are experiencing an employment recovery is lying to you.  Yes, the U.S. economy added 165,000 jobs last month.  But it takes nearly that many jobs just to keep up with population growth.  The truth is that we are just treading water.

So why has the unemployment rate been going down?  Well, it is because the government has been pretending that millions upon millions of unemployed Americans “don’t want jobs” anymore.  In fact, an astounding 9.5 million Americans have “left the workforce” since Barack Obama took office.

Some in the mainstream media have started calling them “missing workers”.  But whatever label you want to use, the reality of the matter is that they are really hurting.  They are part of the reason why food stamp enrollment has soared from 32 million to more than 47 million while Barack Obama has been in the White House.

If you still believe that the employment market is getting better, just look at the following numbers.  The percentage of working age Americans with a job has been sitting at about the same level for four years in a row…

April 2008: 62.7 percent

April 2009: 59.8 percent

April 2010: 58.7 percent

April 2011: 58.4 percent

April 2012: 58.5 percent

April 2013: 58.6 percent

So why is everyone getting so excited over the latest numbers?  When you step back and look at what has happened to the employment-population ratio over the past decade it really is quite horrifying…

Employment-Population Ratio 2013

So exactly what part of that chart are we supposed to get excited about?

Yes, I suppose that we should be thankful that the percentage of Americans with a job has not continued to decline over the past few years.  Unfortunately, the next major wave of the economic collapse is rapidly approaching and that is going to make our employment crisis far worse.

A recovery was supposed to already happen by now.  Now we are running out of time before the next major downturn strikes.

And things have been particularly hard for our young people.  Even if our young people do go to college, there is a very good chance that good jobs will not be waiting for them once they graduate.

According to Accenture’s 2013 College Graduate Employment Survey, 41 percent of all Millennials who graduated from college during the past two years are working in jobs that actually do not require a college degree.

And a different survey conducted a while back found that 53 percent of all college graduates under the age of 25 are either unemployed or underemployed.

Perhaps you have noticed this.  Perhaps you have noticed that there seems to be large numbers of young people that are living with their parents or that can’t seem to get their lives started.

It is because the economy is not producing enough jobs for them.

We have shipped millions of good jobs overseas, we have replaced millions of jobs with technology, and we have created an economic environment that is murdering our small businesses.

Sadly, the future does not look bright for the American worker.  The big corporations that dominate our society are feverishly trying to increase profits by getting rid of as many “expensive” American workers as possible.  That is one of the reasons why corporate profits as a percentage of GDP are at a record high, but wages as a percentage of GDP are at an all-time low.

At this point there are more than 101 million working age Americans that do not have a job, and that number is going to go a lot higher in the years ahead.

But the financial markets seem to be absolutely thrilled with the present state of affairs.  The latest employment numbers caused the Dow to shoot past 15,000 and the S&P 500 to push past 1600.

Of course stocks have become completely and totally divorced from economic reality, but this does happen from time to time and it never lasts forever.  At some point there will be a rude awakening.

And I anticipated that we could potentially see the Dow hit 15,000 before it finally crashed.  Back in February, I made the following statement…

Right now, everyone seems to be quite giddy about the fact that the Dow is marching toward an all-time high.  And I actually do believe that the Dow will blow right past it.  In fact, it is even possible that we could see the Dow hit 15,000 before everything starts falling apart.

Well, now we have seen the Dow hit 15,000.  But that doesn’t change any of the long-term trends that are absolutely eviscerating our economy.

So enjoy this bubble of false hope while you can.

It will not last much longer.

The Beginning Of The End by Michael T. Snyder