August 22, 2009
Here is a chart released by the government that claims to show the percentage of unemployed people in the United States as of July, 2009. It is a fictional snapshot of the actual number of unemployed and under-employed people.
As economics professor John Miller notes in an article posted on the Dollars&Sense website, the actual number of unemployed and — importantly — under-employed people is actually in the double-digits, probably twice the official figure. Miller writes that government figures
dramatically understate the true extent of unemployment. First, they exclude anyone without a job who is ready to work but has not actively looked for a job in the previous four weeks. The Bureau of Labor Statistics classifies such workers as “marginally attached to the labor force” so long as they have looked for work within the last year. Marginally attached workers include so-called discouraged workers who have given up looking for job-related reasons, plus others who have given up for reasons such as school and family responsibilities, ill health, or transportation problems.
The government figures also leave out out part-time workers looking for full-time work because part-time workers are “employed” even if they work as little as one hour a week, according the the bean counters and number crunchers in the district of criminals. “The vast majority of people working part time involuntarily have had their hours cut due to slack or unfavorable business conditions,” Miller explains. “The rest are working part time because they could only find part-time work.” Miller notes that “forced part-time work” is at an all-time high, going all the way back to 1956 and including the 1982 recession. In May 2009, 8.8 million workers were forced to work part time for economic reasons, in other words they were forced out of the job market by the banksters and their long-standing plot to turn the country into a third world cesspool (the latter was not stated by Mr. Miller).
During the last bankster engineered economic depression in the 1930s, the official unemployment rate was 24.9%. If we accept the premise that the actual unemployment rate is double the officially cooked figures, then the states in the above chart with 12 percent or higher unemployment are actually experiencing unemployment on par with the so-called Great Depression. If we accept the “or higher” on the chart, some parts of the country are suffering unemployment worse than the Great Depression.
The GDP is now floundering in negative territory — officially at -1.89% — which means massive job losses will continue. Conventional economic wisdom states that in order to maintain stable employment, the GDP must be around 2.5% per year and it must go much higher to make up for the catastrophic losses suffered since the “recession” began in November, 2007.
Once again, the government is playing a shell game with the numbers. The GDP numbers are distorted by manipulation of the money supply, which creates inflation. If you look at the Federal Reserve’s M3 data, you will see that GDP has decreased substantially since 1990. In order to hide this from the American people, the Fed stopped publishing the M3 monetary aggregate report on March 23, 2006. The discontinuation of the M3 “detracts from the transparency the Fed preaches and adds to the suspicion that the Fed wants to hide anything showing money growth high enough to fuel inflation, just so people won’t know how bad it is and possibly react and thus make it worse,” writes Bud Conrad for Financial Sense.
Or react and storm the castle with pitch forks and raised fists.
Earlier this month, the U.S. government told the one-worlders at the European Union that at the end of the third quarter it will not meet its forecast for the annual budget deficit and the forecast must be revised to a figure in excess of 10.75%. On Saturday, Obama’s budget office said the figure will be 11.2% of GDP, a staggering $1.8 trillion, the highest deficit as a percentage of GDP since 1945 when the people were obliged to pay for the last world war created by the banksters and their international minions.
In order to give this dire situation a somewhat softer and fuzzier glow, Obama’s folks removed from the 2009 budget deficit projection $250 billion given away to the banksters.
Even if the “recession” ends this quarter — and in the meantime, you may as well wish for a pony — Obama’s number crunchers admit unemployment will continue to skyrocket. “Unemployment has continued to rise for several months after six of the past seven recessions. That’s just what it does as a lagging indicator,” write the brain surgeons over at the CIA’s favorite newspaper, the Washington Post. “What we’ll be watching for, however, is whether the gap between the officially and unofficially unemployed continues to grow. If it does, this recovery will take even longer than people think.”
Of course, we shouldn’t expect the Grand Dame of Operation Mockingbird to level with us, even if her scribes realized the truth — the “economic crisis” is an engineered affair. It is the largest and most elaborate transfer of wealth from the people to the banksters in the history of mankind.
Back when Obama signed the so-called American Recovery and Reinvestment Act — absurdly called the “stimulus” bill — he said the plan would create three and a half million jobs over a two year period and that unemployment would be less than 8 percent — 16 percent? — by June of 2009. The corporate media is now turning somersaults over an officially reported drop in unemployment — from 9.5% in June to 9.4% (multiply by two) — but with the caveat that things will get worse before they get better.
It doesn’t take a rocket scientist to figure out things will get worse — much worse — and there will be no recovery at the end of the rainbow.
“There is no economy left to recover. The US manufacturing economy was lost to offshoring and free trade ideology,” economist and former Assistant Secretary of the Treasury Paul Craig Roberts wrote last month. “The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans’ wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.” Americans are “over their heads in debt. Jobs are disappearing. America’s consumer economy, approximately 70% of GDP, is dead. Those Americans who still have jobs are saving against the prospect of job loss. Millions are homeless. Some have moved in with family and friends; others are living in tent cities.”
“Obama’s policy, like Bush’s before him, is keyed to the enrichment of Goldman Sachs and the armament industries,” Roberts concluded.
“Will Americans realize that they are not ruled by elected representatives but by an oligarchy that owns the Washington whorehouse?” the economist wrote more recently. “Will Americans ever understand that they are impotent serfs?”
At this late hour, it remains to be seen.