By Chriss Street: After their May 21 meeting, the Fed stated that they saw no inflation risk in fueling job growth. Then came the JOLTS report for jobs and hiring that Fed Chair Yellen said she closely follows. And it was red hot.
Entries in Jobs (69)
The equation might not have gone so horribly awry if each class of graduates had seen their incomes skyrocket in line with their student debt. But that’s a crummy joke in America.
By James Murray: 30 years ago, if you’d told me I’d go to a fast-food joint, order on a tablet, and eat a machine-made burger, I would have said, "No way." And today?
New Zealand’s central bank didn’t follow the Fed’s lead in monetary policy that favors capital over labor, Wall Street over savers, at any cost.
It didn’t even start with the financial crisis. It started before the 2001 recession. But the strategy exploded in 2009, and it’s still getting worse.
A very inconvenient chart. Inconvenient for the Fed – it turns their rhetoric upside down.
For the millions of unemployed Americans who are looking for a job, this economy is still a historic fiasco. And it’s getting worse again.
California is at it again. It released its employment and jobs reports today, in parallel with the national reports released by the Bureau of Labor Statistics. What a doozie. Is the California boom already over?
“There is never a good time to raise the minimum wage,” explained Joseph Sabia, an associate professor of economics at San Diego State University. The Capitol Hill briefing was co-sponsored by the Employment Policies Institute, which is tied to the fast-food industry.
The Fed uses the easing unemployment rate as proof that its heroic policies are successful and that Bernanke could ride off into the sunset with a nimbus above his head. Other official measures are less gung-ho. And the most important one has become the Fed’s nightmare.
The steep rise in income inequality is a consequence of a spectacular reallocation of income from labor to capital. It repressed wages and created the biggest profit bubble ever. But pressures are rising. The bubble will get pricked. There will be consequences.
Today’s employment report is special. Exactly five years ago, the Fed kicked off its zero interest rate policy and QE to create the “wealth effect”: the elite would borrow for free and buy assets to drive up asset prices and make those people immensely rich; in return, they’d spend some crumbs of this new wealth, which would create jobs, say, at luxury retailers.
There are millions of people in that category. And their numbers are growing, not diminishing.
If you come to San Francisco or Silicon Valley and look around, you’d think California is booming, that companies jump through hoops to hire people, that they douse them with money, stock options, and free lunches. And some do. But in other parts of the state?
By Lee Adler, The Wall Street Examiner: Looks can be deceiving. The way the media reports housing starts today, you’d think housing is booming. Total starts were reported at 1.09 million units. Consensus expectation was 950,000. Headline writers went nuts on that.
By Lee Adler, The Wall Street Examiner: Since the 2009-2010 rebound, it has become abundantly clear that the apparent correlation between QE-ZIRP and economic recovery, if it ever existed, no longer exists.
By Chriss Street: The Field Poll reported the number of Californians who believe the state is "one of the best places to live" dropped from almost 80% in 1985 to just over 40% today. Over 90% agree that cost of living is outrageous and job prospects are lousy.
By Lee Adler, The Wall Street Examiner: Beneath the surface, some early signs of possibly ugly trends.
By Lee Adler, The Wall Street Examiner: Overlaying raw employment data from the Bureau of Labor Statistics with the Fed’s balance sheet offers surprising insights. Brief must-see video with excellent chart and explanation. Somebody should send it to Yellen.
By Don Quijones: Despite a miraculous economic “recovery,” EU-wide youth unemployment hit 24%. New records were set in Spain (56.5%), Greece (57.3%), Italy (40%), and France (26%). The warnings from history are clear: governments that allow youth unemployment to escalate, do so at their own peril.