The Problem Is Debt, Not Jobs

The rate of job destruction has slowed appreciably. This is illustrated by the slow and steady climb of Jobs Creation Histogram (JCH) towards zero. While this is good news for job seekers, it does not suggest an end of the economic problems that continue to plague the global economy. The headlines and talking heads seem unable to recognize is that today’s economic problems are debt rather than job based.

Gold has and will not decline on “good” jobs news, because job creation is not driving it. Gold is rising as a result of currency devaluation across the globe. Currency devaluation, i.e. printing money to meet obligations, has been the politically acceptable solution to excessive debt burdens that trouble most industrialized economies.

Job Creation Histogram (JCH): Net Nonfarm Payrolls Added/(Lost) less Civilian Labor Force Added/(Lost), 12 Month Average.


Headline: February payrolls jump, jobless rate near 2-year low

Employers hired more workers in February than in any month since May last year and the unemployment rate fell to a near two-year low, the strongest sign yet the recovery has become self-sustaining.

Nonfarm payrolls increased 192,000, the Labor Department said on Friday, in line with expectations. Data for December and January was revised to show 58,000 more jobs created than previously estimated.

Source: finance.yahoo.com