blog.milesfranklin.com / Andrew Hoffman / February 10th, 2014
Coincidentally, the two books I am reading regard the same topic; i.e., the human response to catastrophe. In Stephen King’s The Stand, said reaction is elicited by a plague that kills 99% of the population. However, in the other book I am reading – which I will disclose in the coming weeks, as it is about to be published by a faithful Miles Franklin Blog reader – humanity is challenged by the “Cataclysm” caused by a global currency collapse. Hopefully, these worst-case scenarios do not play out similarly; but sadly, the latter event is mathematically guaranteed. Which is why, when it comes to the protection of your financial assets – with real money - it’s better to be safe than sorry.
On to this week, when “Yellenomics” will be unveiled in the aftermath of yet another hideous employment report. Or should I say unemployment report; as the more we observe, the more we realize just how horrific – and structural – the U.S. employment decline has become. And thus, when Yellen ambiguously speaks tomorrow morning of the “recovery” ongoing since 2009, consider what actually occurred in January, excluding BLS “seasonal adjustments.” That is the economy actually lost 2.9 million jobs, as opposed to the 113,000 reported gain; a loss, by the way, exceeded only once in U.S. history – in January 2009; i.e., smack in the middle of the global financial crisis. As for Pollyanna’s focusing on the parallel-published “Household Survey” – desperately seeking “good news” – it did in fact report a 638,000 job gain. That is, until you strip out said “seasonal adjustments” – dropping it to an actual loss of 403,000. Either way, John Williams of Shadow Stats says BLS “adjustments” have not only rendered NFP employment data statistically insignificant, but not even comparable month-to-month!
And thus, if Janet Yellen attempts to purport a “job recovery” – which in and of itself, would be quite an accomplishment, following the past two miserable NFP reports – she will be decidedly lying. And if you still don’t believe us, take a gander at the below charts, depicting how just little U.S. consumers have “recovered” since Helicopter Ben took over the printing presses in 2006. As you can see, real household income has been in freefall ever since – but don’t worry, the “1%” is doing just fine; is the personal savings rate, on the verge of breaching 2008’s all-time low.
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