Unemployment : The Truth

In the last few weeks, the market and the public have become aware of inflation. The Federal Reserve even admitted that for the first time in decades, it rose above its 2% target. It reached 3% in food and gasoline is up almost $1 from this time last year. Of course, the Fed said that this is only a temporary spike. The usual mouthpieces, as if they had any creditability, joined the chorus. Screaming Yellen backed Powell on a word-for-word basis. The market began falling as fears over President Biden's talk of tax increases as well as the spike in the 10-year Treasury came into focus. 

What we see...

JFL was going to do a piece on gold, but the consensus here at Evolution pointed to the weekly charts. Although gold has broken its down trendline on a daily chart, the weekly chart shows consolidation. We will look into it again in two weeks. Instead, Sebastian bought up this quote by chairman Powell, "Unemployment fell to 6.2% in February. The GDP will rise to 6.5%." This reminds me of the BS artist, Bernanke who stated at the beginning of the financial crisis of 2008 that the Fed has the situation under control." Do you remember that?

The Fed chairman is lying through his teeth. Sebastian checked the labor participation rate. It keeps falling. It is down to 61.4%. It is probably even lower. If you didn't know the participation rate in 2000, it was 67.3%. Where did all those jobs go? They died because our government does not protect our workers like last week when Ford said it is moving production from Ohio to Mexico. By the way, the Fed said last year that by this time the participation rate would be at 63%. Why doesn't any reporters call him or the Fed out on their many mistakes? Here are the three unemployment claims for the month of March. *4 Mar=745K, *11 Mar=712K and *18 Mar=770K. If you check the number of claims on a monthly basis, it averages between three and four million per month. Sebastian used the lower number. No matter how you do it, the bottom line is 36 million workers are out of work over the last twelve months. The Fed says the number of unemployed dropped below 10 million last month when it compiled its data. It went on to say that the unemployment rate is down to 6.2%. We say that is a lie and BS!  

US Census 2000...

showed that there were 217.2 million Americans employed. Powell last week revealed the labor force "reached" 150.2 million. Can you see the lie, the BS?

67,000,000 million fewer workers. Where are they?

How about this aspect? In the year 2000, the US population was 281 million. Today, we are over 320 million. We have more people and less working. Where are they, you ask? They are living with their parents or grandparents. They are collecting food stamps (43-million as of July 2020) and lining up at food banks. They are collecting unemployment and some are perpetual students who now WANT their debt forgiven.

Real Unemployment is is 26%. You read it right!

This spells trouble in River City or any other place. How about his other claim that our GDP will rise to 6.5%? Sebastian doubts it and even if Powell is correct and Sebastian is wrong, consider hourly employment? Very few Americans receive a 40-hour work week. The new normal is 34 hours. It is no wonder that the rumor of another stimulus plan (which was already in the works) will include more money for families and raising the minimum wage level. Does anyone understand our responsibility of being the world's reserve currency? Our debt percentage is growing. At present, it is already at 86.9% of GDP. When the infrastructure stimulus under Build Back Better is announced, we will surpass 100%. The world is watching and China is chopping at the bits. It wants the title. We know it has the ego and the Communist Party is evil enough to achieve its goal doing anything and everything that they can. At evolution, we already believe that China is the world's largest economy. If we lose our reserve status of our dollar, the US could fall to third world level overnight. You can thank the Fed for destroying the dollar and paid off politicians for putting corporation profits before the well being of American workers, society and starting the Federal Reserve and ending our gold standard currency. Maybe at some point you will realize these truths and join our meme, End the Fed!