How long has this alleged recovery been going on? What’s it been, five, six years? I guess if you have a lot of money to invest you’re doing okay as long as the Fed keeps inflating the stock market. But what about the rest of the economy?
The Washington Examiner reports that one Wall Street analyst says the real unemployment rate is a whopping 37.2%, and the misery index is the worst it’s been in four decades. This is the Obama economy.
In a memo to clients provided to Secrets, David John Marotta calculates the actual unemployment rate of those not working at a sky-high 37.2 percent, not the 6.7 percent advertised by the Fed, and the Misery Index at over 14, not the 8 claimed by the government.
Marotta, who recently advised those worried about an imploding economy to get a gun, said that the government isn’t being honest in how it calculates those out of the workforce or inflation, the two numbers used to get the Misery Index figure.
“The unemployment rate only describes people who are currently working or looking for work,” he said. That leaves out a ton more.
“Unemployment in its truest definition, meaning the portion of people who do not have any job, is 37.2 percent. This number obviously includes some people who are not or never plan to seek employment. But it does describe how many people are not able to, do not want to or cannot find a way to work. Policies that remove the barriers to employment, thus decreasing this number, are obviously beneficial,” he and colleague Megan Russell in their new investors note from their offices in Charlottesville, Va. (Read More)
Nearly 40% of Americans don’t have jobs. How long can we keep that up? It kind of explains the miserable state of the retail sector, which gets very little media attention because it doesn’t fit the “recovery” narrative.
If ever a chart provided unequivocal proof the economic recovery storyline is a fraud, the one below is the smoking gun. November and December retail sales account for 20% to 40% of annual retail sales for most retailers. The number of visits to retail stores has plummeted by 50% since 2010. Please note this was during a supposed economic recovery. Also note consumer spending accounts for 70% of GDP. Also note credit card debt outstanding is 7% lower than its level in 2010 and 16% below its peak in 2008. Retailers like J.C. Penney, Best Buy, Sears, Radio Shack and Barnes & Noble continue to report appalling sales and profit results, along with listings of store closings. Even the heavyweights like Wal-Mart and Target continue to report negative comp store sales. How can the government and mainstream media be reporting an economic recovery when the industry that accounts for 70% of GDP is in free fall? The answer is that 99% of America has not had an economic recovery. Only Bernanke’s 1% owner class have benefited from his QE/ZIRP induced stock market levitation.
Stores keep leaving the mall in my town. It should be a prime spot for retail, but every time I set foot in the place I notice another store closed. Just the other day AC Moore announced they’re closing a big store in a busy shopping plaza nearby. Even online retail seems to be hurting, at least judging by the steep decline in ad revenue once the first of the year hit.
How can an economy thrive when so many people aren’t working?
Oh, and the number of people on food stamps has reached another new high – 20%! And the administration has been working hard to get even more people signed up. They actually have food stamp recruiters. They’re removing the incentive to work, and then blabbing about income inequality, when it’s their policies that are making income inequality worse.
And if you think it’s bad now, just wait until Obamacare’s high premiums, taxes and fees start kicking in. It’s all designed to hurt the productive class.