US labor force at 35 year low
Paul Joseph Watson
January 10, 2014
Today’s horrendous jobs figures allied with the expected economic impact of Obamacare are stirring rumors that the Federal Reserve could resort to QE5 – yet another round of money printing madness.
The US Department of Labor released a report today which revealed that just 74,000 jobs had been added to the US economy in December, surprising analysts who had expected a figure above 200,000.
However, even more shocking is that the labor participation rate has dropped to a 35 year low, with only 62.8% of Americans participating in the jobs market in December. 91,808,000 Americans are not in the labor force. The reduction in the unemployment rate from 7% to 6.7% is explained by the fact that many more Americans have given up looking for work.
The result of over $1 trillion dollars of Fed spending in 2013 has resulted in all time highs for the stock market, but less jobs were created in 2013 compared to 2012.
This “jobless recovery” has sparked fresh talk that the Federal Reserve, which recently announced it would taper its bond buying program, may in fact be preparing to launch QE5, cranking up the printing presses once again in a desperate effort to prolong the illusion of economic rehabilitation.
A further factor that could prompt the Fed to panic is the expected cost to the economy of Obamacare.
Richmond Federal Reserve President Jeffrey Lacker told Reuters today that it would take two quarters of negative economic figures for the Fed to reverse its decision to taper, but he sounded an ominous warning about the impact of Obamacare.
“I think the Affordable Care Act is something that we are watching very closely because it’s something that could well have a substantial economic impact,” said Lacker, adding that he expects a lot of turmoil in the health care industry.
Some analysts have warned that Obamacare represents a “neutron bomb that will decimate the U.S. economy.”
The Financial Times is also reporting today that the unemployment figures could put the taper in doubt.
“Despite admitting asset-bubbles, fears over stock-multiples and excessively easy lending; the Fed will launch QE5 when Obamacare drags the US economy into trouble,” reports Zero Hedge.
This article was posted: Friday, January 10, 2014 at 1:50 pm