Friday, March 8, 2013

Where the Jobs Are

February payrolls rose by a  236,000, much better than mainstrean economists forecasted. The unemployment rate fell to 7.7%. This is the lowest unemployment rate since December of 2008.  Check out the climb in average hours worked in the construction sector. Ben is happy, but how will he be able to land his helicopter and keep the manipulated boom going?

Here are the jobs added by sector.

(Jobs chart via ZeroHedge)


  1. He can't land the helicopter unless he wants to see the stock, housing, and bond markets all plunge. Hyperinflation is the only politically feasible option. That is not an exaggeration. It is the only option that allows a general sense of economic normalcy to continue for a long period of time. Remember, Mises said that the difference between tightening and further credit expansion is that further credit expansion allows the crisis to be pushed further into the future. This is the path the U.S. has chosen, and as Mises said, this option results in the termination of the currency system. They do not want to experience the crisis now. They would rather deal with it in the future. That's why they will continue with the monetary easing.

    Also, the hyperinflationary path is the only path that allows them to be perceived by the public as responsible adults who are attempting to solve economic problems, while blaming the resulting price increases on producers, retailers, and speculators.

    When Bernanke's money printing results in gasoline at $15.00 per gallon or more, you can bet your last dollar that evil speculators and the greedy Exxon Mobil will be blamed for it.

    1. No, they'll fix the price at $8.00 a gallon, there'll BE no gas, and we'll all be walking to work. If there IS work...

    2. Good point. When the prices do start to rise exhorbitantly due to further credit expansion by the FED, price controls are in fact a policy tool they're likely to use. And when the fuel shortages hit, they'll even ration it like they did under Chris Christie after Hurricane Sandy.

  2. FYI, the 236,000 number is bogus and will be revised down. Basically, that is an establishment survey number that is double counting people who have multiple part-time jobs. Obummercare has caused a transition away from full-time work to people requiring multiple part-time jobs.

    "According to the household survey (on which the unemployment rate is based) the economy added a healthy 170,000 jobs. However, a whopping 446,000 of those jobs were part-time jobs. Simply put, the economy shed 276,000 full-time jobs."