A figure reflected by the participation rate falling .2% to 62.6%. Average wages continued to rise gaining 5 cents to $25.59, this was the highlight of the report. Average weekly hours were unchanged at 34.4. Part time employment jumped by 468,000.
Employment is a lagging indicator but when combined with the recent retail earnings reports, earnings reports in general, manufacturing and construction data it doesn’t look promising though will have to wait a little longer to see if this is merely a statistical blip or the start of something worse.
Japan is busy trying to rewrite the economic playbook with ever increasing amounts of its debt running negative yields. Allowing the most heavily indebted developed country to reduce its debt levels through the magic of money printing and monetization or the official government purchase of debt. If in fact it turns out that deficits don’t matter because a government can print money and pay its debts without limit. Why not just skip the debt charade in the first place and print the money required to pay the bills as you go? Perhaps because it’s too close in appearance to a classic Ponzi scheme, never mind that printing money to buy debt is effectively the same thing regardless of the clever terms like quantitative easing or unorthodox monetary policy used to describe it in the lamestream media.
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