Monday, August 6, 2012

The Employment Picture (and why it might change)

There has been a slow but steady improvement in the employment picture since late 2009, since unemployment is a lagging indicator, this makes sense, as Bernanke really turned on the money printing machines in very late 2008 and early 2009.

Now that Bernanke has, once again slowed, money printing, the possibility that this lagging indicator turns down again in a couple of months, is a very real possibility.

Note: Most economists, who are nothing but trend followers (they project for upcoming months what has occurred in the last few months) are not forecasting any kind of decline. Only when you have a theory, like Austrian Business Cycle Theory, that explains the ups and downs can you understand inflection points that Keynesian economists always miss.

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