Tuesday, February 7, 2012
I think it is time, again, to expose the BLS' shennanigans to both keep the headline unemployment rate suppressed, and to generate an upward bias in the market courtesy of a "bigger than expected beat" of "expectations." Granted, various semantics experts continue to scratch their heads in attempting to explain a collapsing labor force when even Goldman's Sven Jari Stehn just predicted that it will drop to 63.1% by the end of 2012 (and 62.5% by the end of 2015). Funny, then, that the US will have no unemployment left when the participation rate drops to 58.5%.....And no, the "population soared" argument based on "revised data" doesn't quite cut it when the bulk of said surge not only did not get a job, but was not even counted toward the labor force. The biggest flaw with all these arguments that vainly attempt to defend the US economy - as if it is growing - is that they focus exclusively on the quantity of jobs, doctored or not, and completely ignore the quality.