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Since today’s theme is political farce – coincident with Congressional failure to address the 1.3 million Americans whose unemployment benefits expire December 28th; it’s the perfect time to further the discussion of one of the most damning statistics of the “so-called recovery.”  You know, the recovery in Wall Street that has left “the 99%” out in the cold; yielding record wealth inequality, a 35-year low in the Labor Participation Rate, an expanding “war against poverty wages,” record low Presidential and Congressional approval ratings, and polls concluding two-thirds of citizens believe the “American Dream” is dead.

Income Share Graph

There’s only so much I can write of fraudulent BLS employment data – such last week’s ”More BLS lies, coming right up”’; or the rapidly declining quality of new jobs, as in May’s “New Employment Paradigm.”  However, in light of the fact that said 1.3 million people are about to be considered ‘permanently discouraged’ – and thus, no longer members of the “Labor Force,” it seemed apropos to note how fraudulent – and diabolical – BLS employment calculations have become?

Incredibly, the below chart depicts a 25,000 person reduction in the U.S. Civilian Labor Force this year, despite a 2.4 million increase in the amount of employable Americans.  In other words, an inexorable plunge in job openings was causing the BLS’ calculation of the “Labor Force” to dramatically decline, despite surging population growth.  Throw in the 35-year low in the Labor Force participation rate, and you can see why the true “unemployment rate” diverges so starkly from what the BLS reports.

Labor Force Graphs

To wit, in this fantastic article, Paul Craig Roberts discusses the divergence between the comical “U3” unemployment rate reported by the government – currently, 7.0%; the 13.2% “U6” rate, comparable to the 12.1% rate reported in Europe; and what I view as the most realistic metric of all, the 23.2% unemployment rate depicted in the below chart, courtesy of John Williams’ Shadow Stats.

Unemployment Rate Graph

Essentially, the denominator of the U3 “unemployment rate” includes those that are either employed or have actively sought work for the past four weeks.  Yes, you heard me right – four weeks.  As for the U6 denominator, one is considered “unemployed” if they have been seeking work for up to one year; while the Shadow Stats denominator includes ‘permanently discouraged’ workers that have not been able to find a job for more than a year.  In other words, the BLS “writes you off” at light speed; so as to reduce the “unemployment rate” denominator as rapidly as possible.  Not that they are fooling anyone – except the captive, brainwashed MSM.  However, in a world sustained solely by money printing, market manipulation, and propaganda, these are the extreme levels of lunacy undertaken by TPTB to attempt to maintain a dying status quo.

And if you don’t believe me, take a look at this chart; depicting an incredible 50% reduction in the cumulative employees of the Russell 2000 components – whilst their average stock price has tripled!  Tell me, is there anyone on that planet that actually believes “productivity gains” are driving stock gains, as opposed to the Fed printing trillions of dollars – which it in turn hands to Wall Street, for injection into equities?

Russell Employees

Thanks to the BLS’ bastardized accounting process, the 1.3 million soon-to-be permanently discouraged workers will reduce the Labor Force Participation rate by nearly an entire percent by month’s end; which, in turn, could push the BLS’s U3 “unemployment rate” below the Fed’s supposed 6.5% “threshold” for commencing QE tapering.  In other words, a reduction in monetary stimulus based on a falling unemployment rate – whilst not a single new job is created!  Ah, the tangled web Bennie, Janet, and company have woven.

To conclude, just as Congress pretends it has reduced spending – and the COMEX pretends it has real gold and silver to back fraudulent paper contracts; the BLS is pretending employment is “recovering.”  Fortunately, such pretenses are becoming “common knowledge” on the worldwide stage; and thus, it shouldn’t be long before the entire charade ends.  And when it does – yielding dramatic declines in fiat currencies, particularly the heavily overvalued dollar; if you haven’t already secured your PHYSICAL gold and silver, it will be too late.