The big number in the headlines was growth of 294,000 jobs. The sub headline was that the unemployment rate hikes back up to 9%–not so positive news. The BLS uses the Birth Death model to assume creation of jobs that are truly not being seen on mainstreet. So even in the 294,000 jobs that were “created,” how many of them were artificial?! The BLS always over estimates the amount of jobs actually created. In a household survey recently done, people were asked if they would want a job, and in only 30 days, this number jumped 232,000. Sentiment on mainstreet is dwindling.
The potential for a deflation scare is in the near future, just as we saw in 2008 except this time we are that much closer to severe hyper inflation. The U.S. is purchasing 70% of its own debt.
Opt-out of conventional wisdom!!!