A lot of people probably feel that the so-called "jobs boom" has been
fake. I'm one of them. Here's why:
Today the Fed meets to raise rates for what will probably not be the
last time. Indeed, a series of rate hikes is expected until the Fed
Funds rate is at 3%, or more.
The official story is that the Fed has had it's hands SUPPOSEDLY tied
by the punk jobs market.
In other words, the Fed was "forced" to keep rates UNNATURALLY LOW
until workers were happy!
Now, what's wrong with that picture? Well, since when does the Fed,
or anyone on Wall Street, worry about worker happiness!
INDEED, A HIGHER UNEMPLOYMENT RATE WOULD HAVE BEEN NICELY ANTI-
INFLATIONARY!! GREAT FOR GREENSPAN AND GOOD FOR THE STREET TOO!
So, you're probably asking; WHY THEN THE "FAKE JOBS?"
Here's why: The HYPER-LIQUIDITY had gone on for so long that
commodities speculation was getting to be too Popular among the
investing classes.
THIS MEANT OIL SPECULATION FIRST AND FOREMOST.
AND WITH DUBYA'S GEO-POLITICAL TIN EAR THERE WAS PLENTY OF FUEL FOR
THE RUMOUR MILL TO KEEP THE OIL FIRES BURNING AT LEAST ON WALL STREET.
Not only that, but the speculators were rushing to invest in China
with their hair on fire!
ENTER THE CHINA BOOM, FINANCED IN THE US BY GREENSPAN, ET AL.
The China Boom caused even more speculation. There was a shortage in
steel, copper, wood, nails, and even cement! The China Boom "revived"
the moribund Japanese Economy! Now that is something!
IN SHORT AND IN SUMMARY, GREENSPAN WOULD HAVE HAD TO RAISE RATES SOON
ANYWAY, EVEN IF THE US JOB MARKET WAS IN EXTREME DEPRESSION!
Now, that is not to say that the JOBS BOOM was entirely "cooked up"
by Wall Street and in Washington.
Yet the Plutocracy on Wall Street knows that if they want to keep their beloved tax cuts, they had better damn well come up with a "jobs boom" for the summer of an election year.
And, very likely, there would have been some seasonal spring and summer hiring that could be "fluffed" up with some "fudge factors" to produce the politically and economically "desired result."
THE "DESIRED RESULT?"
NOT JOBS FOR THE MUCH BELOVED WORKING CLASS! NOT REALLY.
RATHER;
TO GIVE GREENSPAN THE "COVER" HE NEEDED TO RAISE RATES, AND STOP THE
GROWING COMMODITIES BUBBLES IN OIL AND OTHER KEY COMMODITIES;
AND TO SLOW THE CHINA BOOM, THAT HAD BECOME THE RUNAWAY "ENGINE" OF A
DANGEROUS SPECULATIVE MANIA IN THE GLOBAL ECONOMY!
Need more proof?
Well consider, if there is a REAL "Jobs Boom?"
Why did Walmart and Target and GM just WARN of punk sales in June?
Yeah, it's kinda like that, isn't it?
Postscript: Perhaps a better way to judge "job creation" is by Help
Wanted Ad revenue and payroll withholding taxes? Nothing like REAL
money changing hands to keep people HONEST!
