by Andy Hoffman, Miles Franklin:
Ho hum. Another first Friday of the month, and another fabricated “jobs” report with not a shred of correlation to realeconomic activity. Like, for instance, the completely ignored fact that – as I have discussed ad nauseum – the BLS’ “birth-death model”; which as we recently learned, accounts for 93% of all new “jobs” since the 2008 crisis; is based on the creation of unreported jobs at small businesses. This, despite the “inconvenient truth” that more small businesses have “died” since 2008 been “birthed.”
Thus, if you believe the 209,000 jobs supposedly created in July is true – when 158,000 such “jobs” were fabricated by the birth/death model’s fabricated, goal-seeking algorithms – I have a bridge in Brooklyn to sell you. Or, for that, the post-2008 low “unemployment rate”; which, when Trump was on the campaign trail, claimed to be a lie – as opposed to today, in true politician fashion, when it has magically turned “true.” This, amidst the weakest economic data since said Financial Crisis – atop surging loan defaults, record debt accumulation, and an exploding “Retail Armageddon.”
I’m not even going to wait for said “details,” as I know exactly what they’ll say. Which is, the vast majority of such “jobs” were low-paying, minimum-wage, part-time “gigs”; principally, in non-productive sectors like healthcare and education; and paradoxically, the same retail sector where sales have all but died, and Amazon.com is, all by itself, causing thousands of store closings. As quite obviously, the increasingly ignored jobs report is becoming the biggest joke in the financial world. That is, besides the credibility of the Central banks descrying “deflation,” as they print and pump “markets” to all-time highs – amidst the worst economic Depression in generations, fueled by history’s largest-ever, and parabolically-rising, debt edifice.
I mean geez, we just learned that the Bank of Japan owns 71% of all equity ETFs on the Nikkei exchange, whilst the Swiss National Bank owns $80 billion of U.S. stocks alone – led by Apple, which “coincidentally” has been the single biggest contributor to the “markets”’ recent gains. Which itself, owns $51 billion of Treasuries – i.e., more than most sovereign nations; which of course, it wouldn’t dream of doing if it didn’t know the “Yellen Put” was sitting below it. That said, of all the lunatic; hyper-inflationary; politically, economically, and socially destructive ramifications of QE – be it overt or covert – the “icing on the cake” is this damning chart; of how, following $1.3 trillion of ECB QE – which earlier this year, was extended from the sovereign to the corporate realm; and three years of negative interest rates; European “high-yield” – i.e., junkbond – yields are about to fall below that of 10-year U.S. Treasury bonds! I mean, what could possibly go wrong?
A LOT! As in, the explosion of money printing that hasn’t yet occurred; at least, compared to today’s “piddling,” all-time highlevel of $200 billion/month from the ECB and Bank of Japan alone. As, per what I have discussed in equally ad nauseumfashion since January 2014’s “direst prediction of all,” the deflation caused by years of money printing, financial engineering, economic propaganda, and market manipulation will drive Central bankers to relentlessly expand history’s largest, most destructive fiat Ponzi scheme. This, and historically ominous secular factors like demographics, automation, and the explosion of crypto-currency; the latter of which, will drive more of the economy away from desperate governments’ coffers with each passing day.
As, despite the exploding cost of living everyone on the planet is experiencing – for the most part, in “need versus want” items like housing, education, healthcare, and daycare; the way conniving, thieving governments measure “inflation,” it will NEVER achieve the arbitrary 2% rate they all seem to target. Except the Bank of Japan, that is; which, as of yesterday, after two decades of predictive failure, is no longer targeting any specific time frame to achieve it. In fact, per the below, Central-bank-damning chart, government-measured “inflation” just hit, on a worldwide basis, its lowest level since the tail end of the largest financial crisis of our lifetimes.
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