By Robert Fitzwilson of The Portola Group
March 9 (King World News) – While last week ended on a positive release from the Bureau of Labor Statistics on the number of jobs created, the number lacks credibility as others have already pointed out. The push for plausibility for the case to raise interest rates continues at a feverish pace.
Just Another Friday
Just as the financial markets breathed a sigh of relief after Fed Chair Janet Yellen suggested that a policy change in rates was further in the distance than was expected, the jobs report on Friday sent both the stock and bond markets into a tailspin. The oil and precious metals markets were also hit, but Friday is the traditional day for the elites to take down the metals, particularly with the Indians on the sidelines….
It has been said that there is a fine line between clever and stupid. When we assess the actions and language of the elites, it is really hard to say which is the case. While everyone should agree that raising interest rates in the face of a secularly weakening global economy is suicidal, that is exactly what the central bankers keep threatening. Whether it is clever or just plain stupid will make no difference. A meaningful rise in rates will collapse the global financial system.
Since the global financial bubble took off in earnest in 2000, it is sobering to reflect on the changes. In 2000, the U.S. work force numbered around 153 million. The U.S. work force in 2015 is roughly 148 million, a huge decline despite the fact that the population is significantly higher. In 2000, the median income was a little over $28,000. In 2015, the median income is slightly above $28,500, but in reality real incomes have plunged because of massive money printing and inflation.
A Real Tragedy
The median price of a new home in that period has soared from $170,000 to $295,000. It is no wonder that rents are skyrocketing. Home affordability is beyond the reach of the average person. Strong housing numbers are primarily in the multi-family dwellings. The media hypes any strength in those numbers, but it really reflects the tragedy of generations suffering a dramatic fall in their standards of living. The statistics for much of the rest of the world are equally tragic.
At the same time, the number of people not participating in the labor force has also mushroomed. In 2000, the number was 78 million. Currently, it is approaching 93 million.
Does Each Family Really Owe $730,000?
Turning to debt, the average family in the U.S. is on the hook for $730,000 just for the federal obligations. At a time when most people have little or no savings and are saddled with credit card and student loan debts, it is a ridiculous number to think will ever be serviced for much longer let alone repaid.