After several months of promising reports, December's brutally low numbers delivered a sobering dose of reality. Even a welcome decline in the unemployment rate to 6.7% masked bad news. But the key point now is what this jobs report tells us about the health of the U.S. economy, and, in particular,
u.s. economy 2013
- Dismal December Jobs Report Tells Us What the Government Doesn't Want To
- Three Charts Obama Hopes You'll Never See
- Currency Trading Today: Follow the FOMC to Profits
- Will United States Debt Holders Bail on Treasuries?
- Debt Ceiling Deal Doesn't Fix This Larger Global Issue with United States
- What a Debt Ceiling Stalemate Will Do to the Market
- This Trend in the U.S. Economy Is Putting Your Job at Risk – But Can Make You Rich
- Recession 2013: The Signs Don't Look Good
- Brace Yourself: This Is What the Fed’s QE Has Done for Our Economy
- One Sure Winner as We Fight Deflation
- Symptoms Don't Lie
- Has Sequestration Saved the U.S. Economy?
- The Most Dangerous Man in the World
- What America's $2 Trillion Underground Economy Says About Jobs
- Ending the War on Pot Would Add $20 Billion to the U.S. Economy
- Can Wall Street Continue to Rally Without the U.S. Economy?
Today I'm going to show you three charts Obama hoped you'd never see.
You're about to get a very different view of the "recovery" picture that the administration keeps painting for us.
This one, for starters, is accurate.
It also explains why incoming Fed Chair Janet Yellen can't cut stimulus, which is one of the reasons you have an opportunity to make some money here... especially if you follow my "mid-December plan." More on that in a minute.
Let's start with the charts...
Another FOMC meeting is in the books, and to no one's surprise they decided to stay the course. That will weaken the U.S. dollar, which definitely has its risks, but can deliver profits for currency traders who know how to play it.
Since the mid-1990s, China and a host of other foreign governments have quietly acquired one-third of all United States public debt. Foreign holders of United States debt held more than $5.6 trillion in Treasury securities as of August 2013.
But continued debt-ceiling drama in the United States is starting to change that.
Senate leaders finally hammered out a debt ceiling deal today (Wednesday) that avoided a looming potential debt default. It also reopened the government that has been shut down for more than two weeks.
Investors cheered the news and sent stocks up 205 points, or 1.36%, today.
While a deal solves short-term problems, it's not doing much to help the long-term nightmare.
Yesterday (Monday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co."to make projections about what a stalemate on the debt ceiling will do to the market.
We are a little more than 24 hours away from the day that Treasury Secretary Jack Lew has said we'll exhaust the "extraordinary measures" and go over our debt limit. But even with the impending deadline, over the last five days the market has shakily climbed, with the Dow up 2.35%, Nasdaq up 1.16%, and the S&P 500 up slightly to 1.9%.
The biggest, and most ignored, trend in the U.S. economy is the ongoing divide between the wealthiest members of society and the average American worker.
Real wages are falling, while unemployment is stagnant. Politicians blame greed, but that's because class warfare is a valuable tool to gain power.
I argue instead that disruptive technologies have accelerated this divide.
Just recently, I noted that the U.S. wage-productivity gap has been driven heavily by the use of automation and technology in the U.S. economy, which is displacing workers at a faster pace than new jobs and job categories have been created.
Put a different way, robots are taking our jobs.
The government keeps telling us that the economy has turned a corner, that growth is picking up, that people are going back to work, that consumers are more optimistic. But we've got cold, hard numbers that tell an entirely different story...
Along with the Fed's easy money policies came bright promises of an economic recovery. Glancing at some recent headlines, you might even think the Fed succeeded... but why not take a deeper look into the mainstream media numbers and decide for yourself?…
The Library of Economics and Liberty defines the Law of Unintended Consequences as such: Actions of people-and especially of government-always have effects that are unanticipated or unintended.
Our current economic state is a perfect example. Central banks have flooded the economies, and yet the world still inches toward deflation. But for savvy investors looking at the right stats, this is an opportunity to buy one sector in particular.
Here's a great bargain and why it's a great buy now...
A good doctor will not simply make a diagnosis based on measurements. The symptoms and complaints expressed by the patient are at least as important in making a determination as the data provided by diagnostic tools.
When the data says one thing and the symptoms continuously say another, it makes sense to question the reliability of the instruments.
This would be particularly true if the instruments are furnished by a party with a stake in a favorable diagnosis, say an insurance company on the hook for treatment costs.
The same holds true for the U.S. economy. Although our government-supplied data suggests we are experiencing low inflation and modest economic growth, the economy shows symptoms of low growth, rising prices, and diminishing purchasing power
For all the griping about the sequestration, it may prove to be one of the best economic strategies we have going for the US economy.
A pair of "austerity" economists are in the news again for an oversight in their groundbreaking research but they may be on to something all the same.
Here's what I've uncovered...
When it comes to spending or saving, it's always a contentious debate.
But the risks are rarely as high as they are now for the US and most major industrial nations. Such fundamental economic decisions will move a country forward (or backward) for decades, not months, and can't be undone quickly.
Some think Paul Krugman won the debate this time around, but I disagree...
Doing what they can to survive in a dour job market, millions of Americans exist in an underground economy that has ballooned to $2 trillion annually.
By "underground economy," we're talking about all the business activity that is not reported to the government, which includes a growing number of people getting paid for their labor in cash.
That means the shadowy figures of the underground economy - the drug dealers and Mafia godfathers, for example - now have a lot more company.
So much for the war on drugs. For the first time ever, a majority of Americans now support legalizing marijuana.
According a new report from the Cato Institute, pot legalization could inject $20 billion a year into the U.S. economy due to the tax revenue generated and savings in law enforcement costs.