Record Low Unemployment: Recession Is Coming

avatar
(Edited)

Friday saw the release of the monthly job report in the United States.

The numbers came in very good. The unemployment level his 3.5%, down from 3.7%. There were 136,000 jobs added during the month.

This is the lowest it has been since 1969.

Many view a 50 year low as positive news. Unfortunately, for the economy, this is awful news.

Each time record unemployment was seen since 1950, a recession followed within the following 12 months.


Source

Employment tends to be a lagging indicator. By the time capital flowed throughout the system, the boom from credit had exhausted itself.

Unfortunately, for the masses, the financial media tends to espouse myths about what is taking place. We are repeatedly told how strong employment is when it tends to be an indicator of a soon-to-be lagging economy. At the same time, we hear how well the consumer is doing when it is fueled by debt.

It is all part of the House of Cards that the established system has constructed. Since the masses tend to swallow what they are spoon fed, they will be totally caught off guard.

Of course, it was not all rosy in the jobs report. Wages are flat for the most part, similar to the last two decades. Ultimately, companies are not forced to pay more even with record low unemployment. This goes counter to what is commonly thought in economic circles.

I maintain technology is one of the main reasons for flat wages. Even the threat of automation is enough to put workers in a bind. Corporations are well aware of this, using it to their advantage.

A decade ago, the economy was sunk due to the antics of Wall Street. This time, we could be looking at a situation that is much worse. The systemic problems that were present in the last financial crisis were not solved. They were glossed over with easy money passed out by the banking system.

How soon until it all comes crashing down? If history is any guide, the unemployment rate says we will see an economic collapse within the next 12 months.

This could bode very well for cryptocurrency.

Here is a write up of the jobs report.

https://www.usatoday.com/story/money/2019/10/04/september-jobs-report-economy-added-135-000-145-000-were-forecast/3859017002/


If you found this article informative, please give an upvote and resteem.

image.png

image.png



0
0
0.000
4 comments
avatar

Congratulations @taskmaster4450le! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

You made more than 100 comments. Your next target is to reach 200 comments.

You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

Vote for @Steemitboard as a witness to get one more award and increased upvotes!
0
0
0.000