Weak March Jobs' Report & Fed's got all scenarios covered

 * The pics have nothing to do with the topic we're writing on.. Just felt like some Star Trek pics to liven things up..

Its Friday.. been a long week so we go right into it...

The Dow is down -111 pts as of noon..  OK, Good.. wish another '1' was added to make it a four-digit plunge but we're patient.. it will ultimately happen..

OK, so why is it dropping?

" Job creation slowed to a crawl during March, with the U.S. economy creating just 88,0000 positions though the unemployment rate fell to 7.6 percent.  The number was a sharp slide from February's upwardly revised 268,000. "  (CNBC)

Honestly, we really don't think the Investors and traders really gave two spits about the Jobs report for March.. Just a nice excuse to cash in some profits which will Never Ever be circulated back into the Main Street USA economy Ever...

But the numbers are real..and terrible.. A quick look:

1)  268k minus 88k equals 160k.   The 'experts' were off by 160k jobs in their guessing based on their normal sampling of 1% of Corporate hiring.

It would be far too complicated a task to compute actual job creation or losses with smaller businesses, so they're always ignored when the Bureau of Labor Stats compiles its figures

2)  Unemployment "Dropped" to 7.6%  -- Thank God for those so discouraged from trying to find work, they've given up, ehh?  You can just roll them off the records like recently shot deer from the back of a Ford pick-up...

"The labor-force participation rate tumbling to a 34-year low of 63.3 percent.."

That's not good is it...

Wonder what the experts will blame this on?  The weather is always a convenient scapegoat-- Oh, no..we know.. we know..  'Teacher... Teacher... (hand raised)  OOOHh.  OOOhh..'

"Wall Street had been waiting to see how the mandatory spending cuts in Washington, known as the sequester, would affect the economy, and may have gotten at least a preview with the latest jobs data."

Ah-Hah!  Sequester.. we were going to say that...

Yes, that must be it... 4+ years of no one in government doing a single fucking thing to create a single real job while pushing the political hot-potato of re-financing the banks and stock market onto the Fed...

And they're going to blame it on 'sequester' which was a month ago..

Brilliant..

Here's an interesting part of the CNBC article:

"The central bank has tied the end of its zero interest rate policy to a drop in the unemployment rate to 6.5 percent, but Friday's number showed that a falling level is not always a good economic omen. "

So let's say hypothetically, due to the statistical anomaly the unemployment rate eventually does fall to 6.5% because SO Many people have not found work..

Well, does that mean that despicable Bastard Ben Bernanke at the Fed will keep his word and begin to raise rates so savers can start to have something to live off of?  Or will he lie-- again?  Will he find some excuse or caveat to keep interest rates artificially low forever?

And here's the other side of the statistical anomaly 'coin' which that Evil, Evil man knows full well: Let's say there was True job creation.. 300-500k a month new employment openings...  Well what do you think happens to the unemployment rate at first?

Yes. it goes UP, not down...  Why?   Because when so many new jobs are created, it means many people who have jobs now which they may hate or pay poorly will quit and enter the employment pool.  And thus the figure goes up, up until there's a settling period which would take realistically a good 6-9 months based on consistent job growth.

So you see Bernanke covers his bets either way... No job creation and unemployment rate meanders at over 7%..  Truthful job creation and employment increases for 6-9 months before it begins 'falling' to under 6.5%

This gives Bernanke many Years of political cover to keep interest rates at zero or near zero.. And ultimately why?  Banks can borrow super cheap then speculate in market and it artificially keeps repayment on public debts relatively manageable.

Are you beginning to see how this con game is played?

~  So True!   Have a good weekend... ~waves

Japan's Incompetent Equivalent to Fed's Bernanke

We knock Fed Chair Ben Bernanke often for his continual sabotage of savers and destruction of the value i.e. purchasing power of the US Dollar...

Everything we've ever written on the man and the Fed has been negative, at times brutally harsh and 100% deservedly so..

Seems he's not the only Vile, Evil currency saboteur on the planet...

Japan has their own version-- his name is Haruhiko Kuroda and he runs the Bank of Japan..  OK, so what makes this guy as dangerous to his nation and global economy as Bernanke?

Well.. let's let Reuters answer for us (in blue font)..

"The Bank of Japan unleashed the world's most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.

New Governor Haruhiko Kuroda committed the BOJ to open-ended asset buying and said the monetary base would nearly double to 270 trillion yen ($2.9 trillion) by the end of 2014 in a shock therapy to end two decades of stagnation..."

~  The equivalent of $2.9 Trillion dollars for a nation a little more than 1/3rd the population the US and 1/3 America's GDP.   That would be the same as that piece of shit Bernanke committing the US to $8.7 Trillion dollars of open ended QE..

And do you think Japan can ever repay it?  Yeah, right..

"This is an unprecedented degree of monetary easing," a smiling Kuroda told a news conference after his first policy meeting at the helm of the central bank.  "We took all available steps we can think of. I'm confident that all necessary measures to achieve 2 percent inflation in two years were taken today," he said.

~ Only the pathologically Insane or professional Investors (no real difference) would smile at such a dangerous and ultimately disastrous course of action.

And here's the Interesting part.. to the average reader, it would sound like the goal was to curb inflation to 2%... Nope.. Kuroda's goal is to Create inflation..   So you take the combination of creating a rate of inflation where prices continually rise, stagnant wages and killing savers, and you have an utter mess for the bottom 99% of Japan...

Looks like Kuroda's a good disciple of "Shogun" Bernanke

* Shogun -- hereditary military dictators of Japan from 1192 to 1867

"The scope of the changes Kuroda pushed through, and the fact he secured unanimous board support for them, drove the yen down sharply, knocked the 10-year bond yield to a record low, and nudged Tokyo share prices just shy of a 4-1/2 year closing high."

~  Currency is Down.. Bonds are Down.. Japan's Nikkei market Up..  The elite quite happy...   Notice any similarities?

So what does this all mean?

In Summary:

1) The world is in a currency war... A never-ending war to see who can devalue their currency the quickest and most dramatically.  China's done it for years... US is doing it.. The Eurozone, Japan, South America..

Everyone who can do it, is...

2)  Will this hurt everyday people? -- Of course.  Will this ultimately trigger a trade war somewhere in the world or globally? -- Oh, sure..   Could this be the beginnings ultimately of another world war?  Been following the script of the early 1930's so far...

All that's really missing is a fascist up-swell.  Greece has its Nazi-like 'Golden Dawn' party making inroads with its people.. What European nation will be next?

3)  How will it hurt people.. all this continual, never ending QE?  Currency devalued of course... takes more little pieces of paper or binary 1s and 0s to buy products/services while wages and social benefits remain stagnant.  Forces people to eat quicker into savings or expand debt load to maintain standard of living..

All part of central government's plan.

What can we say?  When the peoples of the world are finally awaken to the reality of the level of sabotage by their governments against them and are 'Mad as Hell' to quote the movie 'Network', we'll start handing out the pitchforks..

Until then.. let's relax with nice warm saki, watch TV and continue pretending all is well