Just when we were told a turnaround was just around the corner, the labor department reported this morning that a whopping quarter million jobs were lost in August alone.
U.S. employers cut a fewer-than-expected 216,000 jobs in August, while the unemployment rate rose to a 26-year high, the government said this morning, in a report showing a still fragile labor market.
The Labor Department said the unemployment rate rose to 9.7 percent after dipping to 9.4 percent in July and the decline in payrolls was the smallest in a year. The department revised job losses for June and July to show 49,000 more jobs lost than previously reported.
Analysts had expected non-farm payrolls to drop 225,000 in August and the unemployment rate to rise to 9.5 percent. The labor force increased by 73,000 in August, indicating the return of some jobless workers who had given up looking for work accounting for part of the rise in the unemployment rate.
Since the start of the recession in December 2007, the economy has shed 6.9 million jobs, the department said. Stubbornly high unemployment is wearing on consumer confidence and crimping domestic demand, pointing to an anemic recovery from the worst slump in 70 years. Consumer spending now accounts for over two-thirds of U.S. economic activity.
However, the August report confirmed the pace of layoffs was easing from early this year, when nearly three quarters of a million jobs were lost in January.
Manufacturing employment fell by 63,000, with a total of 2 million factory jobs lost since the start of the recession. Payrolls in construction industries dropped 65,000 after falling 73,000 in July.
The service-providing sector purged 80,000 workers in August, while the goods-producing industries shed 136,000 positions.
Education and health services continued to add jobs, with payrolls increasing 52,000 in August after rising 21,000 in July. Government employment fell 18,000 after slipping 28,000 in July.
So, why hasn't President Obama's $787 billion stimulus done anything to help save jobs? How can another 216,000 more people be out of jobs in a single month? Kind of makes you wonder how much more taxpayer money he will offer in his next urgent' stimulus needed to bailout past failed bailouts.
Bob Chapman, editor and founder of the International Forecaster newsletter, which is a compendium of information on business, finance, economics, social and political issues worldwide,
says that the endless suicidal cycle of bailouts is going to destroy the nation's economic recovery.
"Unemployment is not in the 9.7 percent range that is being reported," according to Chapman. "Unemployment is 20.5 percent. That's because the official, the government's statistics, for U6, are at 16.5 percent. That includes those who are no longer collecting unemployment insurance, those who are working part time and the average workweek is 33 hours, and those who are discouraged and no longer look for work.
"There is a thing called the birth-death ratio', which Chapman has been writing about for years and which is included in U6. No, "U6" isn't a new version of an Irish rock group. It is the more complete look at the victims of unemployment. These are the people who would most benefit from the expanded use of E-Verify to open up jobs held by illegal aliens.
President Obama, Nancy Pelosi and Harry Reid need to look at the 25 million American victims before they choose to once again favor illegal aliens for U.S. jobs.
That ratio, as it's called, is a guess by the federal government as to how many jobs were gained or lost in any particular month. If you extract that birth-death radio, you get unemployment of 20.5 percent. That is the real unemployment and that's what government refuses to talk about because their figures are bogus."
This afternoon, Chapman said that in the Great Depression unemployment was between 20 percent and 30 percent. In January Chapman projected 25 percent unemployment by the end of 2009 and even worse numbers for 2010.
It's tough to project with absolute certainty since part of the stimulus package will come in to operation during 2010. In January Chapman projected that the stimulus package as designed and timed, would not perform anywhere near its optimum.
Chapman was right and now says Obama will call for another stimulus package for $2 trillion dollars to cover up the incompetence of his Administration and to assist politicians in office getting re-elected.
Chapman, a credible source
Chapman, 73, was born in Boston and attended Northeastern University majoring in business management. He spent three years in the U. S. Army Counterintelligence, mostly in Europe. He speaks German and French and is conversant in Spanish. He lived in Europe for six years, off and on, three years in Africa, one year in Canada and another year in the Bahamas.
Chapman became a stockbroker in 1960 and retired in 1988. For 18 of those years he owned his own brokerage firm. He was probably the largest gold and silver stockbroker in the world during that period. When he retired he had over 6,000 clients.
From 1962 through 1976 he specialized in South African gold shares. He and his family lived in Salisbury, Rhodesia (now Harare, Zimbabwe) and Johannesburg, South Africa from 1970 to 1973. During that time he did a great deal of further study into the South African mining industry.
Starting in 1967 Chapman began writing articles on business, finance, economics and politics having been printed and reprinted over the years in over 200 publications.
He owned and wrote the Gary Allen Report, which had 30,000 subscribers. He currently is owner and editor of The International Forecaster, a compendium of information on business, finance, economics and social and political issues worldwide, which reaches 10,000 investors and brokers monthly. Parts of his publication are picked up by 60 different websites weekly exposing his ideas to over 10 million investors a week.
In 1976, after the Soweto riots, Chapman began buying North American shares exclusively for his clients. Up to that point only a handful of American and Canadian issues interested him, due to the high dividends the South African shares had paid out over the years.
Between 1976 and 1988 his business surged from 1,000 to 6,000 clients, so the bulk of his business ended up being Vancouver Stock Exchange issues. For this reason he is very conversant with the quality of management, geologists, properties and traders on today's North American scene. He is well known.
From 1976 to present he has spoken and given workshops at over 200 business conferences worldwide, and has been on radio and TV thousands of times. Until his retirement he was always judged by the attendees to be one of the top three speakers and never once was lower than first in workshops due to his vast knowledge of the mining business and his grasp of worldwide financial markets and political scenes.
In June of 1991, at the request of business associates, and due to retirement boredom, he began writing the International Forecaster.
Over the past 40 years, Chapman has immersed himself in the study of world politics and economics. His articles have run in more than 200 publications. His newsletter has active subscribers all across world. Chapman has conducted hundreds of workshops at business conferences and has been a featured guest on hundreds of radio and television programs.
Some of his uncanny predictions include: he called the top of the market in April 2000; predicted 9/11 or an event like that, nine months early, within 33 days of it actually occurring; predicted the invasion of both Afghanistan and Iraq two years before they happened.
JP Bender is a retired award winning investigative reporter with 35 years experience in the profession. He now spends his retirement living in Maryland with his children and grandchildren. He still reports on issues of national interest, while his peers claim he does not fully understand the meaning of the word“retired.”
I believe the media will tag it - "The Son of Stimulus" and it will receive widespread criticism. It wouldn't normally but his initial stimulus package was a flop and nobody understood why it was to be implemented over such a long peiod of time. If it was really needed, why not make if available immediately? Thanks Lorrie for reading the article and giving me feedback. JP
» left by Dr Clarence Rucker, Jr from MI (68 days 17 hours ago.)
JP, I may not be too knowlegable, but, I believe Chapman was the assistant secretary of treasury to Ronald Raegan (Raeganomics). Attached, I copied from the web page:
Chapman: We had a classical gold standard for 200 years that provided a good deal more monetary stability than the current system. There were problems with it, but the problems had little to do with the creation of money itself. Today we have a money problem and it is very obvious where the responsibility lies. Just go on the Internet and read about it. Then ask yourself, where did this concept of a central bank come from? Is that all there is to it?
Of course not. There are plenty of forces, families and extraordinarily wealthy individuals standing in the shadows of the central bank. They didn’t get a lot of exposure in previous decades, but they are certainly exposed now. (Is he talking about the ones that were caught in greed that put us at this level?) The Bush administration continued to rob our country on their way out of office. However, Cheney (Haliburton, KBR, Brown & Root), still have building contractors in Iraq and Afghanistan.) Remember the long battle between old man Bush & his two sons and Saddaam and his two sons over oil? Who is left? Chapman and Bush are friends, I believe.
I am still going to pray for the side of the President. I know for a fact that one cannot succeed unless he first fails. Failure is a natural consequence of success. But thanks for the information.
» left by Marijo Phelps from mountain meadow CO (67 days 8 hours ago.)
Loud and clear and we need to keep hearing this. Baring a miracle, my husband's work is about to play out again. He has been at the same job with the same boss for almost 14 years - this will be the 2 time this year and prior to that there was only one slow down and he chose to take time off to build our home. He is a construction superintendent and works in Colorado Springs. Marijo
Hi Maijo - as to your husband being in the construction industry - YIKES. That industry is usually the first to encounter problems and the last one to emerge out of problems. I can only wish you well. JP
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