Skip to content

Predictions of the Gold-Silver Ratio

May 9, 2011

Via Daily Reckoning

Today, traders are celebrating that the U.S. economy added the most jobs in nearly a year. Or so they’re led to believe. Let’s examine the payroll data first:

* The economy supposedly added 244,000 jobs in April. The private sector added 268,000 jobs; government cut 24,000

* However, 175,000 of those new jobs can be attributed to the BLS’ “birth/death model” – in which the economists guess at the numbers based on the launch of new businesses and the demise of old ones.

In other words, nearly three-quarters of these new jobs are a statistical invention. And most of the rest are the 62,000 people McDonald’s hired in a one-day job fair publicity stunt.

The separate household survey is nothing to write home about, however:

* U-3 unemployment, the number the media latch onto, rose to from 8.8% to 9.0%

* U-6, the more honest figure that includes people who’ve given up looking for work and part-timers who want to work full-time, rose from 15.7% to 15.9%.


From → Silver

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: