More evidence that Fed money printing is creating a manipulated boom.
Last week, Gallup released results of its Job Creation Index for the 50 largest metropolitan regions in the United States. The results showed that companies in every city were hiring more often than they were firing. 24/7 Wall St. reviewed the nine U.S. metropolitan regions where workers think hiring is strongest.
The Job Creation Index scores assigned by Gallup reflect the difference between the number of workers reporting their businesses were hiring compared to those who believed people were being let go. According to the report, the below nine cities received Job Creation Index scores of 20 or better, meaning the percentage of employees who believed their companies were hiring was at least 20% more than those who believed their employers were looking to makes cuts to the payroll. As you will note, it is all about high technology, government and oil---all sectors that are among the first to experience the flow of newly printed Fed money.
9. San Jose-Sunnyvale-Santa Clara, Calif.
> Job creation index: 20
> Unemployment rate (Jan. 2012): 9.1%
> Change in unemployment (Jan. 2011 – Jan. 2012): -15.7%
8. San Antonio, Tex.
> Job creation index: 20
> Unemployment rate (Jan. 2012): 7.3%
> Change in unemployment (Jan. 2011 – Jan. 2012): -6.4%
7. Houston-Sugar Land-Baytown, Tex.
> Job creation index: 20
> Unemployment rate (Jan. 2012): 7.6%
> Change in unemployment (Jan. 2011 – Jan. 2012): -12.6%
6. Atlanta-Sandy Springs-Marietta, Ga.
> Job creation index: 20
> Unemployment rate (Jan. 2012): 9.2%
> Change in unemployment (Jan, 2011 – Jan. 2012): -10.7%
5. Orlando-Kissimmee, Fla.
> Job creation index: 21
> Unemployment rate (Jan. 2012): 9.5%
> Change in unemployment (Jan. 2011 – Jan. 2012): -15.2%
4. Nashville-Davidson-Murfreesboro-Franklin, Tenn.
> Job creation index: 22
> Unemployment rate (Jan. 2012): 7.2%
> Change in unemployment (Jan, 2011 – Jan. 2012): -18.2%
3. Richmond, Va.
> Job creation index: 22
> Unemployment rate (Jan. 2012): 6.6%
> Change in unemployment (Jan. 2011 – Jan. 2012): -13.2%
2. Pittsburgh, Pa.
> Job creation index: 22
> Unemployment rate (Jan. 2012): 7.6%
> Change in unemployment (Jan 2011 – Jan. 2012): -6.2%
1. Oklahoma City, Okla.
> Job creation index: 25
> Unemployment rate (Jan. 2012): 5.9%
> Change in unemployment (Jan. 2011 – Jan. 2012): -3.3%
Can you explain how the flow of "newly printed fed money" goes exactly to Oil and Technology? I'm not sure I see how you can draw that correlation? How is that a foregone conclusion? I work in Houston, exclusively with Energy companies and the Fed policy has NOTHING to do with employment in this city. I can see how it affects financial institutions. Or are you simply saying that inflation, a result of increasing the money supply by "printing money" has a correlary affect on commodity prices? The analysis in this article is weak at best...
ReplyDeleteThe expansion of the money supply hits capital goods first (generally speaking, you'd have to ask Wenzel why it hits specific capital goods) because that's where the investment goes.
DeleteSpoken like a true Ron Paul disciple. Me too. I hope Romney appoints him to Sec. of the Treasury.
DeleteNot a snowball in Hell's chance of that happening.
DeleteThe election in November will have one of two outcomes; either Gary Cohn's lawn jockey will remain with us for another four years, or a substitute lawn jockey will replace him.
#illusionofchoice
Pretty simple to me Democrat controlled money goes to these mostly Repuplican areas. Oh!! wait a minute.
DeleteInlation is a tax on the middle and poor classes. It decreases the value of the money they do have. Especially hard hit are people on fixed incomes. Inflation will decrease the value of their incomes, year after year. How does making them poorer help?
DeleteFar from fixing the terrible economy that the FED caused by their monetary manipulations, they will only cause a very high degree of price increases in the future. Don't forget the 1970s, when the FED fincanced "butter and guns." We paid dearly for that monetary expansion in the late 70s and early 80s, when we had very high interest rates, and high unemployment.
Thinking only of the present, and failing to recognize what will happen in the future is the worst thing one could do. How many times do we need to go down this road of destruction before we say, "Never again!"
I read that first as "Im that guy in a suit making important phone calls, living the life." Then as "Im the Direct Energy, TXU, or Reliant billing department call center guy who has to deal with customers paying their overdue balances." just a funny mental picture to compare.
ReplyDeleteThere is always a lag between when Gov. spends and results are seen. We'll have to see what happends now that government has no more of our money to spread around.
ReplyDeleteWhat an idiot. Who writes this crap? Houston and Oklahoma City - think energy. San Antonio - Military. Richmond, VA - big government. Look at those numbers. Most of them are in the 7% category. Certainly nothing to get excited about.
ReplyDeleteRichmond VA is 125 miles from DC. It's not the beltway by any stretch of the imagination. You did notice it had 6.6% unemployment - right? Well below the national average. Not ND, but still below.
DeleteRICK FARGO,N.D.
ReplyDeleteI'M SURPRISED THEY DIDN'T LIST ANY CITIES FROM N.D. OUR UNEMPLOYMENT
IS AROUND 3% OR LESS. THIS IS ALL ENERGY MONEY SUCH AS OIL,GAS AND
COAL.IT'S BOOMING OUT HERE. HAS NOTHING TO DO WITH FED MONEY. MATTER
OF FACT, REGULATIONS ARE GETTING TIGHTER ON THE ENERGY SECTOR WHICH
CAUSES HIGHER COSTS FOR THE CONSUMER AND OR ELIMINATION OF JOBS. THOSE REGULATIONS ARE FROM THE FEDS, NOT MONEY.
Oh, by all means, let's remove ALL regulations on the precious oil and gas producers so that they are truly free to trash the planet for jobs. (Eyes rolling.)
DeleteYou really think that is what they want to do? Come on!
DeleteRespect of private property rights and strict enforcement of private property rights and strict liability will deter such trashing you fearmonger. Nice try though.
DeleteIt's hard to believe there are still people who don't understand that Fed policy has EVERYTHING to do with employment in every city in America.
ReplyDeleteThe Treasury spent $231 billion in BORROWED money in February--an annualized deficit of $2.7 trillion--and it was the Federal Reserve that run rate possible by creating enough new money (credit) to loan to primary dealers to buy that debt.
The FedGovt is now borrowing about 55 cents of every dollar it spends. What do you think would happen to gas and oil demand if the feds cut off unemployment benefits, food stamps, and 100 other free money programs?
If Ron Paul is not nominated, 1/3 of the republican party is not voting for the establishments pick. Republican are done and Obama communists along with their NWO,CFR and Wallstreet handlers will get exactly what they want.
ReplyDeleteAs a native Floridian I can tell you that Orlando might be good for service industry $8-10 jobs. The greedy local governments and the State tax collectors have run of all industry and manufacturing. Florida is still recovering from years of democtatic control. Florida has unemployment of 15%.The Republicans have also made some very bad choices.
The real estate bubble was severe in Florida and we are not stable there yet.
Any survey that includes any Florida city is flawed.
Charger John
The bulk of the extra-ordinary (i.e. above and beyond its usual budgeted deficit spending) non-Tarp money the Fed has pumped into the economy (i.e. "quantitative easing") has gone to cover risky or uncollectable bond debt (bad mortgages, foreign national debt) held by banks. Since this money infusion is not direct (like payroll tax cuts to workers or spending on infrastructure projets) there is a large lag time between the banks becoming healthy (albeit artifically by the Fed socializing their bad loans) and society either borrowing more money to create jobs or restructuring their debt to free up cash flow for consumpution instead of debt service (i.e. return of capital and profits to lenders). We are about 1/3 way (time wise) through the largest controlled deleveraging the world ecomony has ever witnessed. The key word is "controlled." With any luck, it won't go out of controll which would likely result in some serious regional wars.
ReplyDeleteI don't understand. Explain this to me again, One gov't branch prints and loans money to buy another branch's debt. We pay money to people so they won't work. Can you imagine what would happen if all these people went to work? What do you think would happen if the free money programs were cut? When was the last time you saw a major construction project? Sorry, just thinking out loud.
ReplyDeleteYou REALLY don't understand. The "Fed" (as in Federal Reserve) is not a government branch - it is a private bank which Congress gave the power to "print" (both literally and electronically) money which the Constitution said Congress should do for free, but they prefer to pay the Fed interest to do it. I don't know what you imagine would happen if unemployment (a "free money program") were cut but I can tell you most would be starving and thrown into the streets or the mercy of friends or family. The jobs just aren't there. These people are not "paid to not work" - they can't get jobs. What the heck does that have to do with a major construction project? You don't see 'em bc they also aren't there - that would mean jobs, duh. Do your so-called thinking quietly, maybe people won't see how dumb you are.
DeleteIts too complicated. Has anyone heard of Porter Stansberry's idea that China is buying up gold like crazy as they desire to make the Chinese juan or remnimbi the world reserve currency?
DeleteMost of the people can't go back to work because Congress allowed many companies to go overseas. giving our jobs to other countries - that's also where our economy's money is going.
DeleteCongress has (and still is) giving money to other countries (i.e. 70 billion to Former President of Eygpt; money to Saddam Hussain, Bin Laden, Al quaeda groups, rebuilding Kuwait, Iraq, Afganistan, etc.)
And then people wonder why are economy is bad and why we are heading for a monitary breakdown. READ THE NEWS, GET OFF YOUR BUTTS, AND DO SOMETHING ABOUT CONGRESS!!
If you have any questions about Stansberry and Associates, please do not hesitate to call customer service at 1-888-261-2693. We would be happy to assist you. We are open Monday – Friday 9-5 EST.
DeleteTo fix the economy:
ReplyDelete1) Replace Congress (a must, seeing that most of them are in the 1% and don't pay their taxes)
2) Put strict laws in place to govern those who control the money
3) make the USA completely independent from other countries
(especially those in the oil business - middle east, china, etc)
other benefits: this will reduct the money getting to the terrorist
This is a completely bogus poll. It is based on "the percentage of employees who BELIEVED (emphasis mine) their companies were hiring."
ReplyDeleteThis is not real hiring data. This is based on the perception of hiring.
I live in Atlanta-Sandy Springs-Marietta, Ga. Business are still closing. Housing prices are still dropping.
Our state legislature just passed a tax overhaul bill that will kill thousands and thousands of small businesses. The same entities that control what happens in Washington control the state legislatures. Things aren't getting better. They are getting worse.
Robert, why you publishing bogus polls? Why are you participating in the effort to continue to lie and fool people? Why are you doing what the Fed/BLS/Treasury is doing?
Do you work for the Fed/BLS/Treasury?
K Smith
K Smith has it right this is a totally B.S. poll not based on hard data but personal opinions. As far as Atlanta is concerned K. Smith, I was there in 2001 and could not believe what people were paying for homes and condos, Crazy expensive.
ReplyDelete