WASHINGTON, Dece. 2, 2015 – Very little of interest going on today on Wall Street as stocks wander and decline, as investors glean whatever they want to out of Janet Yellen’s latest remarks about interest rate decisions being “data driven,” whatever the Sam Hill that means. Is that like how
global warming climate change is data driven—even if the data are facts and extrapolated from nonsense? Buried under recent snowstorms, most Midwesterners are wondering the same thing this week.
Back to jobs — ADP came out with a “positive” number on jobs Wednesday morning, positing that U.S. jobs increased by 217,000 jobs in November, a nice increase from the pitiful 196,000 jobs created in October. But why should this excite us?
First of all, ADP’s job numbers, while widely ballyhooed, are still viewed by most professionals as being wildly inaccurate when compared to the allegedly better U.S. government numbers that will be coming out a bit later this week. Yet even so, as we’re reminded readers of this column relentlessly since about 2009, we were told back then that we’d need well over 300,000 new jobs a month for many, many months in order to achieve the kind of employment levels we saw prior to the onset of the Great Recession.
Of course, such numbers are this administration’s inconvenient truth. So the lapdog media tout every single employment number that’s not in the red as “proof positive” that our continuously lousy economy is actually improving. What a bunch of balderdash, as any one of the currently over 10 percent of unemployed and unemployable Americans will tell you. (Based on the government’s more accurate U-6 unemployment measure.
Stick with us here, because this gets us back to the Fed. Yellen and company know full well what the U-6 number is really telling them. But they prefer the cloud cuckoo numbers that tell them (and the liars who populate the Obama administration) that we’ve now hit the perfect level of employment, meaning we can start scooching those interest rates up. It’s their story, and they’re sticking with it.
The market has other ideas today, and most stocks are hovering in relentlessly negative territory, fearing further dollar appreciation against the euro even as investors hope that Draghi and the ECB will actually get more stimulative later this week, coughing up the kind of increased QE that will further tank the Euro back to dollar parity. Which, in turn, will kill of U.S. imports, given that they’ll be priced too high.
Oh, yes, and the stronger dollar, too, will gobsmack the price of WTI and Brent crude oil, the former of which is off a whopping $1.80 and change as we write this midafternoon Wednesday. This, of course, is killing all commodities due to the ripple effect, meaning that we’re continuing to deflate, at least by this measure. Which makes you wonder why anyone is eager to increase interest rates, but what the heck good does logic do in the 21st century?
That said, all this is based on funny data anyway. But the Fed, absent anything useful from Congress or the White House for the last seven years, is doing the old “moral suasion” thing, persuading us that our economy is as hunky-dory as the world’s elites believe global warming climate change is awful and getting worse.
Likelihood is that the Fed will act on this fantasy employment and “robust economy” meme just the way the indefatigable warmist liars push their discredited and unprovable theories. The question is: Will the taxpayers footing the bill for this mass lie continue to put up with the ruination of their lives by theorists who game the data? We shall see.
But today, the market seems to be getting primed for more bad news, putting another dent in the 2015 Santa Claus Rally that’s increasingly looking as if it won’t get off the ground.
We continue to hold stocks, but are really at a loss as to what to invest in, or if we should just sell and spend our time whipping up a batch of real eggnog, the better to celebrate the holiday season?
More tomorrow. But if present custom holds true, very little that’s concrete. Funds and professional investors continue to quietly and relentlessly sell. Question is: Are they done? Or is the worst yet to come?
We wish we knew the answer.
Go out and do some Christmas shopping today. Maybe you can help move the economic needle, eh?