The US economy continues to be a disaster.
Last week’s jobs report was just plain awful. The media is trumpeting the fact that the unemployment percentage fell, but they forgot to mention that this is because over 500,000 people left the labor force.
Indeed, the actual number of folks who left the labor force (516,000) was a RECORD. And the number of people not in the labor force is another record at 90.47 million.
This is not because these people found jobs, nor is it because the economy is improving. It’s because the Feds don’t count you as “unemployed” if you stop looking for work.
On top of this, the labor participation rate (total number of those employed divided by those of working age) fell to 63.2%. This is the lowest level since the late ‘70s. As a segment, men have an employment ratio of 69.5%. This is the single lowest reading in the history of this metric (going back to 1948).
So that’s three economic records. None of them good.
Add to this the new record of people on food stamps and you have an economic disaster.
This is an economic disaster. It shows us point blank that the economy has not recovered and that all talk of recovery is based on either phony data or outright fraud.
The fact of the matter is that we are on the cusp of a market correction if not something more.
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