The Jobs Report for the month of August from the Bureau of Labor Statistics is out this morning and shows a new, record high of over 94 million Americas out of work. The national unemployment rate fell to 5.1%, however, as usual in the New Normal in the Age of Barack Obama, the Labor Participation Rate declined to 62.2%, the lowest since 1977. Only some 174,000 new, non-farm jobs were created, far below the expected 220,000 economists were predicting. I hate sounding like a broken record, as we have seen this story over and over again since the Obama administration changed the formula for calculating unemployment in August of 2010. Back then, the objective was to reduce the unemployment rate from 10.5% as the congressional mid-term elections approached. The BLS formula was tweaked again just before the 2012 reelection vote for Obama to help get the number below 7%.
I could fill pages with more doom and gloom statistics on our economy. More and more people are starting to realize that the improvement in the stock markets is more due to the cheap money being shoveled about by the Federal Reserve Bank than any real growth. Speaking of which, the Fed now appears to be postponing a planned, minor hike in interest rates from September back to December, if even then. The prime rate has been at or near 0% now for over 6 years. Normally, it should be around 4% to 5%. If it ever does increase, such will dramatically impact the federal budget, particularly the amount paid to fund the National Debt. But another method of numerical trickery, the Obama administration has essentially frozen the debt at around $18.5 Trillion dollars for over 5 months. Its probably well over $19 Trillion by now.
What this means is that if interest rates ever do increase, the $200 Billion or so the government must dole out to cover interest payments each year will rise sharply. Currently, only about 4% of the federal budget is spent on this. If it ever returns to the same rate as under George W. Bush, the interest payments on the National Debt would be around 28%. In other words, about the same amount we spend on defense and all other non-entitlement programs combined! Can you say…, DEFAULT?
Does the new Jobs Report for August by the Bureau of Labor Statistics surprise you? Are you still believing the BLS numbers that unemployment rates are actually declining? Or have you wised up and accepted that in the New Normal in the Age of Obama, the unemployment rate is pure fiction? That even with fudging the numbers, they cannot hide the fact that a record high of 94 Million Americans, all of ′job age′, are unemployed. That we have the worst Labor Participation Rate since 1977! That there never was any economic recovery under Barack Obama.