A week when against all odds the market went up. On Thursday the initial unemployment number came in less than expected at 512,000.  Down from the 600,000 plus up until July. But even now half a million workers loose their jobs every week.  That is half a million people stressed out, probably unable to meet their mortgage payments, credit card payments etc.

Then on Friday the much awaited nonfarm payrolls report. Again this came in at less than expected with 190,000 job positions lost. But the kicker was the “official” unemployment number came in at 10.2%  But if one takes the U6 figure, which takes into account those working part time, but are looking for full time employment the actual underemployment and unemployment number is 17.5%

Lets look again at the nonfarm payrolls. The 190,000 figure was a surprise. But this figure is “seasonally adjusted”. If the number was not “seasonally adjusted” you are looking at 641,000. Just a small adjustment of 450,000!

To get back to the level of employment reached in 2006-7  there will have to be 15 to 18 MILLION jobs created in the next 5 years.  That would require an explosion in manufacturing, whole new industries created.  Even without the credit crunch, that is not going to happen.

Mean while the US is still giving away other peoples money.  This week the unemployment benefits have been extended to 99 weeks, and the housing tax credits extended and widened.  This week the vote on Health reform comes up with a cost of a Trillion over 10 years. No wonder gold is at record prices.  Sooner or later a US dollar won’t be worth the paper it is printed on.