Supporters of the regime will crow over Friday’s lower unemployment number as a sign that the economy is recovering, even as signs abound that things are not at all rosy for the 99 percent.
The Bureau of Labor Statistic’s phony unemployment number has the unemployment rate dropping from 6.7 percent to 6.6 percent, even though hiring was weaker in January than expected and the month’s non-farm payroll numbers of 113,000 new jobs fell far short of the expected 180,000. The 6.6 percent number consists of the 10.2 million Americans actively seeking work. It ignores the 91.4 million working-age and work-capable Americans not working and not seeking work.
Despite an increase in U.S. population of almost 10 million people from January 2008 to today, there are 1,154,000 fewer Americans working now than six years ago. Those considered long-term unemployed (unemployed for 27 weeks or more) totaled 3.6 million.
Another 2.6 million were considered marginally attached the labor force. That means they were not working even though they were available for work and wanted and had been seeking jobs within the past 12 months (though not in the past four weeks), so they were not counted as unemployed. Another 837,000 were considered marginally attached discouraged workers because they were not currently looking for work in the belief that no jobs were available to them.
Regime supporters will probably also crow that, despite the “disappointing” job growth, the U.S. stock market continued to do what it’s been doing: acting irrationally. It is evidence that the stock market is supported by funny money and has no basis in reality. Or as CNNMoney wrote, “Bad news may be good news again.”
In other words, CNNMoney is saying that the bad news will cause the Fed to pull back on its taper of QE to infinity from $85 billion a month to $75 billion in December and then $65 billion in January. This is all the evidence needed to demonstrate the recent stock market highs are not reality-based but are based on the promise of more money printing.
Unfortunately, the bad news that is good news for the banksters is really bad news for the middle class. According to the Fed, half the U.S. population has seen a 40 percent decrease in wealth since 2007. That’s because the banksters get their hands on the newly printed money before inflation steals it away. But that’s not so for the rest of us.
The regime is currently pulling out all the stops in order to stave off collapse as long as possible. So far, it has been successful in keeping the masses happy and deceived, thanks to growing food stamp and disability rolls. But there is activity all over the world that signals the global financial collapse may be accelerating.
Mark Faber of the Boom, Gloom & Doom Report says that “company insiders are selling their shares like crazy.” He suggests to his clients to short the Russell 2000 index and says, “I own physical gold because the old system will implode. Those who own paper assets are doomed.”
On Jan. 29, investors pulled $6.3 billion from emerging market equity funds. That was the largest outflow on record. The sell-off actually began last month when Argentina gave up trying to defend the value of its currency. That forced central banks in India, Turkey and South Africa to raise interest rates to try to stop the outflow of their currencies.
Latin American currencies are collapsing. Year-over-year, they’ve dropped 15.75 percent. That’s the most since the Lehman Brothers collapse that set off the recession.
Peter Schiff, who predicted the 2007 collapse in August 2006 — way before almost everyone else saw it coming — says we’re headed for a worse economic crisis than we had in 2007.
“The crisis is imminent,” Schiff said. “I don’t think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems.”
“We’re broke, Schiff added. “We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out.”
Schiff points out that the market gains experienced recently, with the Dow first topping 17,000 on its way to setting record highs, are giving investors a false sense of security.
“It’s not that the stock market is gaining value… it’s that our money is losing value. And so if you have a debased currency… a devalued currency, the price of everything goes up. Stocks are no exception,” he said.
“The Fed knows that the U.S. economy is not recovering,” he noted. “It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.”
Meanwhile, life is growing tough for international banksters. In four days last week, three of them apparently committed suicide, writes Wall Street On Parade. All the dead were tied to banks and an investment firm currently involved in rigging scandals and under investigation by regulators.
While the regime has thus far kept inflation at bay because the printed money is currently being hoarded by the banksters, that money will inevitably hit the economy like a bursting dam.
Please remember that in the coming inflation, food stamps and all U.S. entitlement programs will come to a complete halt. For those millions of people on Social Security and/or other entitlements, I do not believe that these will be stopped or cut per se. But the same effect would come about through inflation of the currency. And there will be means testing for Social Security.
My friends, you will get your money; but it will be so worthless that it won’t buy anything. So what’s new? We have experienced this for years.
We have warned for years to buy silver and gold and store food and water. Ha, doesn’t sound so way out now, does it? Buying gold and silver and storing food and water is the only way Americans can survive the chaos that we are now in. You ain’t seen nothing yet. Be alert!
Buy and sell your gold and silver as it corrects down? Never!! If you do, you will be painfully sorry. You think that you are smart enough to sell and buy back in at a lower price? You’re not; you will lose your shirt. The manipulators use no rhyme or reason that you can discern.
What will happen at the top? Stay with us as we stay in tune with the markets.
Gold, silver and food will outrun the collapse of the dollar. If the U.S. dollar goes, as it surely will, you can begin bartering with your most valuable assets.
Some people suggest that a new dollar will appear, backed by silver or gold. I don’t know, but I expect either that or some quasi-gold monetary system.
Is the U.S. government and Federal Reserve system collapsing? I can easily answer that with this question: Is the U.S. dollar collapsing? A currency that is being depreciated or inflated is, by all definitions, collapsing. This fact has nothing to do with whether we believe it or not.
Can it be stopped short of collapse? If stopped now, it would cause a collapse even sooner. What do we mean? We mean that we have passed the point of no return. There is too much fraud and too much debt in the United States. That’s why you see the market pull back every time there is talk of taper and why you see it explode upward when the talk subsides.
How long do we have? It appears to me that we are very close to economic and social collapse. But times can yet wobble along for months or even a few years. It is a certainty that things will get visibly worse in many ways, especially now that the endgame is here.