by Dave Kranzler, Investment Research Dynamics:
The monthly non-farm payroll report has become a fraud of epic proportions. The Government is claiming that 215k new jobs were created in March. In the goods producing category it claims that 37k jobs were created in construction. But there’s a problem with this – it doesn’t correlate with construction spending and housing starts:
Anyone who follows the housing market knows that for the last year that new housing starts – notwithstanding the conspicuous manipulation embedded in the Government’s reporting methodologies – have been largely driven by multi-family dwellings (big apartment buildings).
In other words, the Government would have us believe that 37k jobs in construction were created in March despite the fact that construction spending is in a downturn. It’s laughable. Keep in mind that the Census Bureau collects the data for the employment report, construction spending and housing starts. It’s no surprise that even its own data is inconsistent.
The same idea applies to all of the areas in which the Government is reporting there to be new jobs created except maybe healthcare. Healthcare has indeed been the one area of growth in the economy because Obamacare has triggered a massive increase in Government-backed healthcare spending which is being financed by additional Treasury issuance and a massive transfer of wealth from the middle class to the disadvantaged class and to all of the private companies associated with healthcare (big pharma, hospitals incorporated, insurance, etc).
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