WELCOME TO THE RECOVERY!
A year after the outgoing secretary of the treasury top ticked the economy and ushered in QE 2 with his abysmal NYT op-ed "Welcome to the Recovery" it is only appropriate that we get news that Cisco is preparing to fire 10,000, or 14% of its entire workforce, over and above the number of people that the company said was going to be let go in May. "The cuts include as many as 7,000 jobs that would be eliminated by the end of August, said the people, who asked not to be identified because the plans aren’t final. Cisco, based in San Jose, California, is also providing early-retirement packages to about 3,000 workers who took buyouts, the people said. Read Zero Hedge Article
ABYSMAL JUNE EMPLOYMENT FIGURES WARN OF GREAT DEPRESSION AHEAD
The Bureau of Labor Statistics within the Labor Department reported Friday, July 8th that in the month of June, only 18,000 net new jobs were created in America. That is a disgrace. It means our Central Planners' policies have failed miserably. They drove the budget deficit up, drove the debt ceiling up, yet created no net jobs over the past several months. You see, the 18,000 figure is a lie. It is false. The true number was much worse. The CESBD Birth/Death adjustment in June was 131,000. In other words, the Labor Department took a wild assed guess that 131,000 jobs probably were created by new businesses they think started up in June. This is a pure guess. Plus, anyone who has ever started a new business knows folks take no pay or deep pay cuts at the start. The truth is, if you back out the 131,000 phony guesstimate CESBD figure, we find that the economy actually lost 113,000 Jobs in June. May's figure was revised lower to 25,000 new non-farm payroll jobs being created from what was originally reported as 54,000. But again, if you back out the 206,000 CESBD make pretend jobs, May saw a decline of 181,000 Jobs. So, for the two months May and June, the economy lost 294,000 Jobs. Then, if you consider we need to create 150,000 new jobs each month just to keep pace with population growth, this means the economy fell short of breakeven by 594,000 jobs just in May and June. This is alarming. Not only are we not creating new jobs to get those who are unemployed back to work, but the situation is worsening. Read More