Monday, October 12, 2015

JOBS....ANOTHER PESKY FACT!

JOBS

The September jobs report showed the grand sum of 96,000 jobs gains for the entire US economy outside of the government financed Health, Education And Social Services sectors (HES Complex) since December 2007.

Needless to say, the Fed's ZIRP and QE policies had absolutely noting to do with the hiring of more home health care workers, nurses and teachers aides. Yet outside of those fiscally-dependent domains all of Bernanke's radical financial repression and $3.5 trillion monetization of the public debt barely got the jobs market back to where it started before the recession; and, actually, not much beyond where it stood in January 2001.

So lets see. The Fed's balance sheet has grown from $500 billion to $4.5 trillion or 9X during that span, but job growth outside the HES Complex amounts to less than 2%. For crying out loud, that's a 12,000 per month rounding error in an economy which has 250 million adults.

Virtually every job gained since December 2009 shown in the chart below was not a "new" job at all; it was just a "born-again" job that Greenspan had claimed credit for a few years earlier. 

Yet Bernanke has the nerve to boast about the Fed's success on jobs and claim that the "labor market is close to normal"!


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