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The economy is choking

12/2/22
from The Gray Area:
12/2/22:
The headlines read today: One would think that everything is great in the US economy, but is it? Certainly this is much better news than the opposite direction for jobs & unemployment, but what is 'the rest of the story'? Is it "the Biden economy keeps churning out jobs"?  If so, why is the stock market not elated today? Here is why according to the Boock Report:
  1. The data came out unexpectedly strong this morning.
  2. The initial market reaction was negative, even though the broader trends didn’t change much.
  3. US payrolls grew 263,000 in November and the unemployment rate held steady at 3.7%.
  4. That's because the labor force shrank by 186,000, with the participation rate falling for a third straight month.
  5. Average hourly earnings rose, however, a drop in hours worked meant slower growth in average weekly earnings, just 0.3% for the month and 3.9% year over year.
  6. Losses in retail and temporary help may be a leading indicator of recession.
  7. Smoothing out the monthly noise, job growth is clearly slowing over the last year.
It is laughable to say Biden's economy is a 'job churning' machine, it is not!.  It has been clear for 2 years that "his economy' (energy supply crippled, gas prices soaring, government spending exploding, COVID payouts and subsidies everywhere, government mandates, supply chain disruptions continue, shortages rampant, rising prices, ....) is an 'economy & growth killing' machine. The result of this ongoing absorption of the U.S. economy into the hands of government and politicians will be, according to CBO, a slowing and sputtering of the U.S. economy   The US economy returned from COVID roaring in spite of Biden's restrictive efforts which have kept people home (participation rate), not filling the available jobs (10M), inflation spiking and threatening recession continually for months, all of which is 'choking the economy to death'. Because of this 'choking', the Federal Reserve says it will begin stepping back a little on the dramatic action it has been taking on interest rates that have been necessary to save the economy from the Administration's mistakes. The economy and Biden still have a lot of work to do.  But, they deny recession fears and on the inflation issue, Biden and his team continue to reveal how he and his administration do not understand inflation and actively do things to make it worse. Remember that when you see Biden and his team taking economic victory laps as they have done before.  They have done nothing positive because they don't know how and because they have a different objective than growing the economy. Watch this. Enough said! More From Wall Street Journal (subscription required):


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