FAST FIVE: The US Labor Market Is A House Of Cards – Here Are The Reasons Why

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Jobs and stock market tickers tell us nothing ahead of time.

  If you really want to know where the economy is headed, you look at inflation vs.

  GDP is also questionable, but for different reasons.  GDP numbers are essentially an inflated fantasy designed by governments to misrepresent economic health, and this is largely due to how they are calculated to include government spending.  Governments produce no wealth and no value; they only create waste, and they have to steal wealth from the population to then waste that money elsewhere.  That, or they print the money from thin air.  But this is not wealth creation, it's wealth destruction.

  In 2020, GDP took a nose dive due to half the country shutting down in the name of “flattening the curve.”  Then, it skyrocketed in late 2020 and remained stable into 2021.  How?  Because the Federal Reserve and the government instituted a $6 trillion+ stimulus package that dumped fiat dollars directly into the system.  That's $6 trillion of money creation in less than a year, and Biden has been trying to keep the money train going with his “Build Back Better” schemes.  Where did that money go?  It caused a tidal wave of retail spending and business spending.  And, with the government offering covid checks, PPP loans, a federal rent moratorium and other benefits on top of normal unemployment benefits, the jobs market shot to the moon while most companies found it impossible to meet worker quotas.  The government and the Fed conjured up perhaps the largest employment bubble in history, and it's about to burst.    How much time does $6 trillion of Fed fiat combined with welfare, unemployment benefits and not paying rent buy the country in terms of the US jobs market?  Not very long, apparently.    Massive inflation has ensued ever since, causing prices to double on most retail goods, food, gasoline, etc.  In the meantime, Biden brags about “the greatest economy ever” while the majority of Americans say they are more worried about the economy than any other issue in circulation today.  The public doesn't care about covid anymore, they care about price inflation and recession.  We have entered a classic stagflationary scenario; all that's left is for job losses to catch up, and they will in the near term.  And what about that incredible jobs print from the Bureau of Labor Statistics this past month?  Isn't that a signal that the economy is still in great shape?  Not really.  Think about it this way – Millions upon millions of Americans were happy to sit at home and do nothing for almost two years while collecting government payouts and living rent free.  Some have even tried to start an anti-work movement, demanding even more money and more respect for no-skill labor.

  We had a labor shortage from 2020 onward, but now, suddenly, 528,000 people are jumping into the jobs market again?  Is this a sign of a healthy economy?  Or, is this a sign that the covid money finally ran out, the public is broke and people are being forced to get jobs once again?  Everyone has to eat, after all, and you can you can only be an activist so long as your belly is full.    GDP numbers are telling us what is about to happen.  Spending is in steep decline.  Economic activity propped up by government projects is still falling, and the effect of trillions in covid stimulus is fading.  As spending drops the need for workers will reverse course.  All those jobs that were magically fabricated because of the covid stimulus buying spree in 2020 will now magically disappear as the money dries up.  It is only a matter of time; mass job losses will most likely be triggered by early 2023.  The Biden Admin, the Fed and some media economists know this event is coming, but they are pretending as if all is well.    Tyler Durden Thu, 08/11/2022 – 14:05.

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