Posted on October 3, 2015 by Martin Armstrong
The prevailing thinking to emerge from the job numbers alone are to confusing to say the least. They lead to the assumption that the U.S. economy has downshifted for the last three consecutive months. However, the Fed will not move into QE mode for that has robbed them of their power to even try to manipulate the economy in tune with Keynesian Economics. There is a lot more depth to the numbers than meets the eye.
The other side of the job numbers is the economic evolution underway. The introduction of technology is reducing jobs since basic jobs can be replaced with machines. We are seeing this trend everywhere. South Africa’s gold-mining companies are also now turning to machines to replace workers to reduce the cost of mining gold. This is a trend that is impacting the global economy. This is a wave of innovation which unsettles the economy and some jobs vanish as new types of jobs are created requiring different skill sets.
So the jobs number is nothing to get all excited over. You can see the stark contrast as household incomes are showing a sharp gain, which is reflected in car sales accelerating toward record levels. The jobs number by itself is not altogether a key indicator. The markets will collapse and rally based upon it, but that is trading noise.
This entry was posted in Uncategorized by Martin Armstrong. Bookmark the permalink.