Unemployment Support Group
Recently unemployed or frustrated with the job search? Unemployment can affect more than just the bank account - it has a negative effect on motivation and self-esteem, even sense of identity. This community addresses the challenges associated with unemployment and how to cope.
This is how the game is played,,, it is pretty simple really,,
We are in the midst of ongoing QE which essentially means that the Fed buys bonds to the tune of $85B a month or so,,, this greases the market to keep interest rates low or next to zero,,, Mr. B sez as long as unemployment is relatively high this will continue.. as the numbers begin the fall ,,so does the pressure to continue the QE. Now this is where it gets real interesting ...rumor has it that the QE will cease in Sept. because of the downward slippage of the UC numbers,, which means that businesses that were not really hiring anyway will contract and grow smaller as interest rates soar. The QE has been part of the engine to lift the Stock Market to a record high,, (QE obviously cannot sustain forever).
Unemployment numbers are misleading ,,, the type of jobs that are being created are mostly in the services industry... The services industry typically pays crap,,, It is a game of numbers not quality jobs,,, Major corporations are not hiring and in fact they may be getting smaller as they consolidate to meet forecast on earnings (which is a quarterly shell game if you are that interested).
The really nasty part of this is that UC payments have exhausted the kitty which initially comes from State coffers, The Feds are sick and tired of having to kick in additional funds. As folks exhaust there benefits they are thrown off of the UC which also reduces the numbers.
Businesses see UC as a drain on capital,, so the numbers are (again) manipulated to assist markets (not jobs !!)
The QE is like a bridge made of balsa wood, painted ,,, it looks spectacular,,, but if you put any weight on it ,,,,WATCH OUT !!!
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I only took Economics 101....
We are in the midst of ongoing QE which essentially means that the Fed buys bonds to the tune of $85B a month or so,,, this greases the market to keep interest rates low or next to zero,,, Mr. B sez as long as unemployment is relatively high this will continue.. as the numbers begin the fall ,,so does the pressure to continue the QE. Now this is where it gets real interesting ...rumor has it that the QE will cease in Sept. because of the downward slippage of the UC numbers,, which means that businesses that were not really hiring anyway will contract and grow smaller as interest rates soar. The QE has been part of the engine to lift the Stock Market to a record high,, (QE obviously cannot sustain forever).
Unemployment numbers are misleading ,,, the type of jobs that are being created are mostly in the services industry... The services industry typically pays crap,,, It is a game of numbers not quality jobs,,, Major corporations are not hiring and in fact they may be getting smaller as they consolidate to meet forecast on earnings (which is a quarterly shell game if you are that interested).
The really nasty part of this is that UC payments have exhausted the kitty which initially comes from State coffers, The Feds are sick and tired of having to kick in additional funds. As folks exhaust there benefits they are thrown off of the UC which also reduces the numbers.
Businesses see UC as a drain on capital,, so the numbers are (again) manipulated to assist markets (not jobs !!)
The QE is like a bridge made of balsa wood, painted ,,, it looks spectacular,,, but if you put any weight on it ,,,,WATCH OUT !!!
_____________________________________
I only took Economics 101....
So ,,what do we do ?? ..forget the QE and monetary stimulants instead embark on a jobs form of QE... buy government expenditures,, direct this job stimulation efforts in areas in most demand and need... healthcare, construction, national infrastructure, transportation systems... put people to work instead of reinforcing a very bloated market and banking system,, that just feeds and feeds to no real advantage except for those involved in markets and financial systems,
Globalization was fine, BUT turned in the wrong direction and became Godzilla that has eaten Tokyo,,