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Graham Summers
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Graham Summers is Chief Market Strategist for Phoenix Capital Investment Research, an independent financial research firm based in Charlottesville VA with clients in 56 countries around the world. He and his staff write Daily Market Alert (http://phoenixcapitalmarketing.com/dma.html), an... More
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  • THREE Charts That Prove We're In A Depression And That The Federal Reserve And Washington Are Wasting Money 0 comments
    Jun 16, 2014 3:19 PM

    Wall Street and mainstream economists are abuzz that we're seeing a recovery in the US due to the latest jobs data. These folks are not only missing the big picture, but they're not even reading the fine print (more on this in a moment).

    The reality is that what's happening in the US today is not a cyclical recession, but a one in 100 year, secular economic shift.

    See for yourself. Here's duration of unemployment. Official recessions are marked with gray columns. The Fed has spent over $4 trillion…. and this has barely dropped by a month or two .

    (click to enlarge)

    Here's the labor participation rate with recessions again market by gray columns:

    (click to enlarge)

    Another way to look at this chart is to say that since the Tech Crash, a smaller and smaller percentage of the US population has been working. Today, the same percentage of the US population are working as in the late 1970s.

    Here's average hours worked per week for the private sector.

    (click to enlarge)

    This number is of extreme importance. The reason is because companies don't just start laying people off en masse when the economy is weak. Instead they start cutting work hours bit by bit. The mass layoffs don't come until the official numbers announce that we're in a full-blown recession.

    Indeed, when you account for population growth and the drop in average hours worked per week, the US has created net ZERO jobs in the last five years. Put another way, there has been literally ZERO job growth since the recession "ended."

    Again, what's happening in the US is NOT a garden-variety cyclical recession. It is a STRUCTURAL SECULAR DEPRESSION.

    Folks, this is a DE-pression. And those who claim we've turned a corner are going by "adjusted" AKA "massaged" data. The actual data (which is provided by the Federal Reserve and Federal Government by the way) does not support these claims at all. In fact, if anything they prove we've wasted money by not permitted the proper debt restructuring/ cleaning of house needed in the financial system.

    It all boils down to the same simple sentence repeated by myself and others: you cannot solve a debt problem by issuing more debt (even if it's at better rates).

    This concludes this article. If you're looking for the means of protecting yourself from what's coming, you can pick up a FREE investment report titled Protect Your Portfolio at http://phoenixcapitalmarketing.com/special-reports.html.

    This report outlines a number of strategies you can implement to prepare yourself and your loved ones from the coming market carnage.

    Best Regards

    Phoenix Capital Research

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