Recently, the Bureau of Labor Statistics (BLS) released its February, 2011 unemployment estimate of 8.9%, down slightly from January’s 9.0%. It was, of course, trumpeted by the Obama administration and in-the-fold economists as positive proof the economy is on the mend. But is it? Are we being told the truth? It appears we are not, on a number of issues.
If one looks deeper for the truth, as has the Gallup polling group and economist John Williams, originator of the Shadow Government Statistics website, you will discover very disturbing truths that are being suppressed by the Obama administration.
Even among the BLS’s own statistics for February, “Not Seasonally Adjusted” unemployment was 9.5%. Keep in mind that the BLS defines unemployment as those workers who have been looking for work the past 4 weeks, are available to work but have not found work. The BLS, for public reporting purposes, ignores all those who have been unemployed for months, or who out of desperation, take part time or low wage service jobs just to survive.
According to an unemployment release by Gallup on February 17, 2011, a survey of 18,000 adults across the 50 states, showed a significant increase in unemployment from 8.8% in December to 10.0% by mid-February.
Gallup also discovered that the unemployment/underemployment rate rose to 19.6% by mid-February. “Underemployment” is defined by Gallup as those unemployed, plus those working part-time that want full-time work. This rate is also considerably higher than the BLS rate of 16.7% for February, which includes underemployed workers.
However, John Williams calculates this rate to be far worse, at 22.1%.
Such data is unsettling enough, but when it is coupled together with the Obama administration and Congress’s unfettered spending spree; rising oil prices; world food shortages and the prospects of hyper-inflation, 2011 is not looking too promising.
On Thursday, March 3, the U.S. Treasury Department released the Fed’s monthly expenditures for February and they exceeded $1 trillion. However, it’s not the first time. There have been 13 such months of one trillion in expenditures since October, 2008. Keep in mind, the Obama budget was proposed at $2.174 trillion in income and $3.819 trillion in expenditures for FY2011, leaving an annual deficit of $1.645 trillion.
The worst part of this February expenditure was that the Fed had to shell out over half trillion ($585 billion) just to pay holders of U.S. Treasury securities. It then borrowed another $660.86 billion by selling more securities, thus increasing the national debt another $63.71 billion. (The total National Debt stands at $14.19 trillion and rising). You can, of course, see where this is headed. It would be like you having a Visa and a Master Card credit cards. Each month you borrow from the Visa card to pay just the interest on the Master Card. But each month the balance on the Visa keeps going up. So then you borrow from the Master Card to pay the Visa interest, and so on, until complete disaster hits your financial world.
The more that the Fed borrows to pay just the interest on the federal debt, the higher interest rates will go as buyers of U.S. securities get more cautious and demand higher interest rates to offset their risk in holding those securities. So, buckle your seat belts, the ride is not going to be pretty.
Tags: Bureau of Labor Statistics, downsizing your lifestyle, Federal Debt, National Debt, Personal Finances, U.S. Economy, U.S. Indebtedness, U.S. Treasury Department Expenditures, unemployment, USA Bankruptcy