Sunday, December 8, 2013

What will happen to total unemployment number if the fed begins tapering?

The federal reserve is not God.  It cannot create reality.  It can only temporarily distort reality.  If it distorts things for too long, it puts itself at risk.  The federal reserve has been running it's scam for 100 years.  I would be surprised if it is willing to give up the scam now.  But now it is up against some really difficult circumstances.  It has stretched itself to the limit in terms of what it can do as the global economic shock absorber.

Below is one of the fed's own charts which shows total unemployment.  This is the real unemployment number to care about because it tells us how many nonproductive mouths the rest of us workers have to somehow feed.  As you can see this chart has had 3 waves up since 2001 and is probably very near the 4th wave completion soon.  Note how the waves higher were quick to move, clearly motive while the waves lower were choppy, and slowly trending. Those are corrective waves for sure.

The fact that wave 4 looks like wave 2 in character tells me that a 5th wave is coming.   If adding trash to the fed's balance sheet was able to lower unemployment a bit, just think what selling those trash assets again will do to unemployment.  It will end up spiking higher and staying up longer than if the fed had just let the free market correct all of this.  The fed cannot taper without causing major, major economic problems and massive job losses as shown buy the red 5th wave up.

The con men running this show better be careful.  All of those out of work people could spend their free time surrounding the federal reserve and the White House.  It could get ugly.  If there are 25+ % of the population out of work there is going to be major civil unrest for sure.  At least that is the lesson that history teaches about time like this.

1 comment:

Anonymous said...

Well, were unemployment calculated as it were through the Carter administration, it's already at 24%: http://www.shadowstats.com/imgs/sgs-emp.gif

This is comparable to the Great Recession eighty years ago. Even the bread lines, AKA food stamps, are of comparable sizes.

The difference today is the gigantic Ponzi machine cum propaganda machine plus war machine pulling the wool before everyone's eyes.

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