Peter Schiff: The Latest Jobs Report Was Anything But Strong

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The August jobs report came out last Friday. Mike Maharrey offered a little bit of analysis during the Friday Gold Wrap podcast, saying he was skeptical that the actual employment situation is as great as the mainstream seems to think. Peter Schiff offered a more in-depth breakdown of the employment report in his latest podcast, saying it was “anything but strong.”

The headline number was the 201,000 jobs employers added last month. That came in above expectations, and as Peter noted, people tend to get excited when the number pushes north of 200K.

“For an economy the size of the United States, this is really not a lot of jobs, even if we were creating 200,000 jobs a month.”

Peter said that lost in all the breathless reporting about that August number was the fact that the labor department revised the previous two months downward. It came to a net loss of 50,000 jobs. Analysts took 10,000 jobs away from the July number and 40,000 off the June estimate.

“So, it was a weaker report than probably what everybody was looking for, yet it was spun positive by the media because the current month was better than estimates.”

And when you look at the types of jobs the economy is generating, the picture becomes even less impressive. Not only did the labor department revise down the number of manufacturing jobs created in July, the economy actually lost manufacturing jobs in August, according to the report.

“So, we actually fired people in the month of August from manufacturing. So much for the manufacturing revolution. So much for how the tariffs are working and we’re bringing our jobs back and American manufacturers are bringing back the jobs. Three thousand pink slips sent out in the month of August. So, this is bad news. If you’re trying to hang your hat on the revival of American industry, of American manufacturing, we lost 3,000 jobs.”

Peter also looked at the labor participation rate. It was at 62.9 in July and had been ticking up. People in the Trump administration were even saying, “See, people are coming in off the sidelines.” Well, in the latest report, labor force participation came in at 62.7. The payroll-to-population ratio also dropped from 60.5 to 60.3.

This means fewer people are in the workforce. The unemployment rate held steady at 3.9%, but more people simply dropped out of the labor force.

“So, had people not left the labor force then the unemployment rate might have gone up, because maybe some of the people who left the labor force, well, now they’re no longer looking for jobs because they’re no longer part of the labor force. And so if you’re not in the labor force, you can’t be unemployed even though you’re not working.”

The gain in average hourly earnings got the most attention from the mainstream. It came in at 0.4 – higher than expected. The year-over-year number also came in higher than expected at 2.9%.

“Is a 2.9% year-over-year gain in wages really indicative of a strong economy, or is it indicative of inflation? See, I think it’s the latter. I think it’s inflation that is the reason wages are going up. Remember, wages are prices. They’re the price that you pay to hire labor. So, the price of labor is wages… The price of goods and the price of labor are both affected by inflation. So, because we have all this inflation, prices are rising. They’re rising for goods and they’re rising for labor.”

Peter noted the CPI is currently at 2.9%, exactly the same as the growth in hourly wages. And he said he thinks the real cost of living is rising far faster than 2.9%.

“If all you’ve done with your increased wages is keep pace with higher prices, there’s nothing to brag about.”

Peter went on to talk about how the markets reacted to the jobs report. Of course, it continued to buoy expectations that the Fed will keep pushing forward with interest rate hikes. That made Peter wonder what investors are smoking. You’ll want to listen to the rest of the podcast to get his breakdown of what all of this really means for the markets. One thing he pointed out is that people should be buying gold.

“Gold is an inflation hedge! It’s the absence of inflation that might be bad for gold. As inflation rears its ugly head, that makes gold look prettier and prettier. So, people should be buying gold when the inflation numbers are higher. Now, eventually, they will, once people realize no matter how hot the inflation fire burns, the Fed’s not going to put it out.”

By SchiffGold

Posted by The NON-Conformist

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Study: Minorities lean to low-paying majors

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Black and Hispanic students disproportionately earn more bachelors degrees in low-paying majors, putting them at higher risk for financial instability after graduation, according to a new study from Young Invincibles, an advocacy group.

The study identified the highest-paying and lowest-paying majors using data from the Education Department and Payscale. The highest-paying majors through mid-career were primarily in science, technology, engineering and math-related fields, while the lowest were in law enforcement, education and professional studies.

Researchers found blacks are over-represented in four of the six lowest-paying fields; the same is true for Hispanic students in three of the six majors at the bottom of the income ladder. Starting salaries in low-paid majors are about $35,000 a year and barely grow to $55,000 within 10 or 15 years into a career. By contrast, students with STEM degrees start out making at least $50,000 and can reasonably expect to make more than $75,000 by the middle of their careers.

More from Washington Post via Triblive

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Silicon Valley Firms Are Even Whiter and More Male Than You Thought

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After stalling for years, Google finally released data on the diversity of its workforce , admitting that the company is “miles from where want to be.” Lazlo Bock, Google’s senior vice president of people operations, noted that “being totally clear about the extent of the problem is a really important part of the solution,” adding that the company is supporting code education among historically underrepresented groups.

Image: Google

But those efforts may not be enough. Exclusive data obtained from the Labor Department by Mother Jones shows that top Silicon Valley tech firms lag far behind the general population in diversity, and that while Google is average in its recruitment of women, it has even fewer African-American and Latino employees than other major tech firms. More from Mother Jones

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5 Years of #obama

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bluesyemre

obama

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Ladies and Gentlemen… Cultural and Poverty Expert Paul Ryan*!*^%

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Paul Ryan cites ‘white nationalist’ to blame poverty on lazy men in ‘inner cities’ (via Raw Story )

Rep. Paul Ryan (R-WI) on Wednesday suggested that men in “inner cities” who refused to work were one of the main causes of poverty in the United States. In an interview with conservative radio host Bill Bennett that was first noticed by Igor Volsky at Think Progress, Ryan reflected on his controversial poverty discussion at last week’s Conservative Political Action Conference.

“We call it a poverty trap,” he explained. “There are incentives not to work, and to stay where you are.”

Ryan also pointed to the work of Charles Murray, a white nationalist, who has used “racist pseudoscience and misleading statistics to argue that social inequality is caused by the genetic inferiority,” according to the Southern Poverty Law Center.

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Target eliminates 475 jobs, most at Minneapolis HQ

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Target Corp. laid off 475 employees Wednesday and said it will not fill 700 open positions as the company struggles with stubbornly sluggish sales and fallout from the massive computer security breach that short-circuited its crucial holiday period.

The retailer described the cuts as “worldwide.” It didn’t say how many were at its headquarters in downtown Minneapolis, but sources told the Star Tribune that the majority of the layoffs were there.

“The economy is simply not growing that fast, and retail’s moves are highly correlated to the economy,” said George John, associate dean at the University of Minnesota’s Carlson School of Management. “All these retailers face very challenging business times.”

Target is by far the largest employer downtown and a key driver of its vitality. The company has 11,000 people at its flagship offices on Nicollet Mall and a total of 14,000 corporate employees in Minnesota.

The retailer declined to make an executive available for questions or say whether more layoffs are in the works. The company also wouldn’t say how many of the 700 open positions were based in the Twin Cities.

The layoffs are Target’s largest since January 2009, when the nation’s second-largest retailer said it would cut 1,100 positions from its headquarters.

More from The Star Tribune

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NYPD, FDNY members cashed in on bogus 9/11 woes as part of massive $400M Social Security fraud: prosecutor

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NYC PAPERS OUT. Social media use restricted to low res file max 184 x 128 pixels and 72 dpi

Image: Facebook via NY Daily News

Dozens of former cops and firefighters claiming 9/11 trauma were among the 106 indicted for gaming the Social Security disability system to take early retirement and leech off the taxpayers, authorities said.

They spat on the memory of the real victims of 9/11.

Dozens of former city cops and firefighters used the 2001 terror attacks as an excuse to fund carefree lifestyles on the taxpayer’s dime, authorities said Tuesday.

The former NYPD and FDNY members — who claimed to have suffered stress-related woes from the World Trade Center attacks — were among 106 people indicted for a longstanding Social Security disability scam, officials said.

A former Brooklyn cop, Glenn Lieberman, 44, became the unwitting poster boy for the sprawling ripoff ring, which includes 71 other retired city cops, eight former firefighters and five ex-correction employees.

Lieberman, accused of being part of the crooked crew that soaked taxpayers for $21.5 million, showed his contempt in an undated photo released by prosecutors with a sick grin and two extended middle fingers.

More from the NY Daily News

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