Catching up on the news after a month wasted not buying a house, I was fascinated to find the MSM touting the great Obama economic recovery. The DOJ industrial average is over a record busting 1700, something like 280,000 jobs were added in June, and unemployment is almost down to 6%. Wow! What’s not to like?
Well, this humble observer of the asylum we all have to live has to ask: if the economy is doing so well, why do we have record numbers of people on welfare, why do we have millions less Americans working today than were working in 2007, why can’t recent college graduates find jobs, and why did the GDP fall 2.9% into negative territory in the first quarter of 2014? Something isn’t adding up. Let’s take a closer look.
Jason Furman at WaPo says the 2888,000 jobs added in June concludes the best six months since the late 1990’s. But, Zero Hedge took a closer look and tells us the Bureau of Labor Statistics reported that part-time jobs increased 799K in June while we lost 5333K full-time jobs. Our economy lost a half a million full-time jobs and all the media wants to talk about is the gain in part-time jobs!
I’m not going to waste much time talking about the so-called unemployment number. We all know that the BLS does not count those that have given up looking for work and anyone working one hour per week is counted as employed.
But, what about the 1700+ Dow Jones? That number can’t be fudged. I suggest you read this New York Post article. Wall Street in general and the Wall Street bankers in particular have been the only beneficiaries Federal Reserves Quantitative Easing policies, especially the Zero Interest Rate Policy (ZIRP). The big corporations have used the cheap money to buy back their stocks to make their earnings per share to look better. They’ve held wages down and outsourced everything they could. But, the Dow did not reach its new record because the corporations are selling record amounts of their goods and services. S&P 500 sales, according to the linked article, were $2.65 billion in the first quarter of 2008 when the Great Recession was in full bloom and now after five years of the Obama recovery the S&P 500 sales for the first quarter of 2014 were only $2. 49 billion. There is nothing rational about today’s stock market!
The game was rigged from the moment the government decided to bail out the Wall Street bankers in 2008 and put the screws to America’s middle class savers and the retired. 99% of Americans would have been better off if, in 2008, the Fed and all the Boys and Girls, in Washington had just sat on their hands and did nothing. But, a small handful of people have benefited enormously from the Fed’s policies. The 1%of the One-Percenters still have Mr. Bernanke on their Christmas card list and now Ms. Yellen, as well.
God bless America!
Well, that’s what I’m thinking. What are your thoughts?