Welcome to the recovery!
– Americans Not In The Labor Force Soar By 640,000 To Record 93.6 Million; Participation Rate Drops To 1977 Levels (ZeroHedge, July 2, 2015):
The devastation of the US labor force continues.
In what was an “unambiguously” unpleasant June jobs payrolls report, with both April and May jobs revised lower, the fact that the number of Americans not in the labor force soared once again, this time by a whopping 640,000 or the most since April 2014 to a record 93.6 million, with the result being a participation rate of 62.6 or where itt was in September 1977, will merely catalyze even more upside to the so called “market” which continues to reflect nothing but central bank liquidity, and thus – the accelerating deterioration of the broader economy.
End result: with the civilian employment to population ratio dropping from last month to 59.3%, one can easily on the chart below why there will be no broad wage growth any time soon, which will merely allow the Fed to engage in its failed policies for a long, long time.
Not only does it soar, participation rate at a 37 year low……Our population was much lower in 1977; total population slightly over 200 million, we have 325 million today. I was in college, and all research, development and Mfg was done here. The opportunities were endless, especially if you had an education.
Even more disconcerting to those of us who have followed what is being bought and sold today. There is only one product being sold around the world, and that is debt. In the last so-called boom years, standard business procedure was to take $100 million and leverage it into $100 Billion a 1000:1 ratio. A couple of years ago, they started leveraging the leveraged funds……we are now into the quadrillions…….
They continue the practices that caused the crash of 2007-08. Mortgage backed securities: They package enough A+ rated mortgages together with B and C rated loans(they raise rate of return) to offer A+ rated securities on Wall Street. All mortgages, credit card debt, business loans, new auto loans are all sold on Wall Street. NOTHING was done to repair any of the corrupt practices that caused the biggest global economic collapse in modern history…..The US lost a lot of credibility.
No bank carries any debt. In 1977, they carried auto loans, business loans, credit card loans, no longer, they are empty shells. Every deal they make is bundled into bonds or securities and sold on Wall Street. Everything bought and sold is debt.
The money changers talk about a stronger dollar all the time, but the converse is true. Just go buy a new vehicle, a house, buy groceries, pay for medical insurance…..energy and water costs……the power of our dollar is falling like a stone. Our economy, and our currency is dropping every month.
This story is only one example of the results from NAFTA and all the other awful trade deals put through by clinton, bush and obama. All have worked assiduously against our national economic and social best interests every day.
It is time to replace congress, and get someone new as president……I don’t know if that is possible any longer….we lost our republic in the Coup of 2000, and most Americans slept through it.
It is only going to get worse. Obama’s trade deal guarantees another 40% loss of American jobs. In my mind, such a deal is outright treason. I remember a time when such a secretive bill would never have gotten past congress. But, in 1977, we still had a free press.
I keep recalling what the great Edmund Burke said in the 18th century: “For evil to flourish, good men only need to do nothing.”
People really need to wake up and speak up.
Just saw CNN numbers.
Unemployment rate Down to 5.3%
As my grandfather used to say, there are lies, damn lies and statistics.