Where Are the Jobs?


In the absence of real jobs growth, monetary largesse is set to continue…

LAST WEEK’S unemployment figure for the US showed an uptick to 7.9% – not a significant change.


This was offset by revisions of job growth in November and December of 2012 that equaled nearly 250,000 jobs.

It is a very positive sign of course, but wait one moment. The participation rate was adjusted again for that same time period. And by taking a quick glance at the participation rate, it would indicate a number greater than those who just started working, stopped looking for work.

So is this really growth? Not so clearly. I think we are seeing stability with a trend to grow, perhaps. But the rosy picture painted by most talking heads last week shows conviction in quite a different story.

Of course we also have to look at the global economy and the first thing that jumps at us is the devastating continued loss of jobs in Spain. Up 2.7% from the month before cannot be a good signal. A combination of poor growth and austerity measures is sure to continue to drive this first world economy into chaos. Still there is hope, as Angela Merkel of Germany throws her support behind Spain and promises apprenticeships and education for the youth of that country.

I wonder how the German youth feel about her giving away their livelihood.

All this continued weakness means both the Federal Reserve and the ECB will continue on the path of continued monetary easing. Basically this means more money creation. The Feds’ target of 6.5% joblessness, though attainable, does not look like it is going to come to fruition in the near future. Many analysts see that level in 2015. I wouldn’t hold my breath.

Eventually our wallets will pay for this largesse. Sure it feels good right now. But when the spigot is turned off we will feel like a worm on hot pavement. That is if we have no gold umbrella to keep off the heat.

Miguel Perez-Santalla



Miguel Perez-Santalla is vice president of business development for BullionVault, the physical gold and silver exchange founded a decade ago and now the world’s #1 provider of physical bullion ownership online. A fierce advocate for retail investors, and a regular speaker at industry and media events, Miguel has over 30 years’ experience in the precious metals business, previously working at the United States’ top coin dealerships, as well as international refining group Heraeus.


(c) BullionVault 2013



Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.



avatarAdrian Ash - Bullion Vault posted Tuesday, February 5th, 2013.

1 Comment for “Where Are the Jobs?”

  1. The jobs are in China, you haven’t noticed? Maybe if yours went there you would. Or–are you one of the few that has been profiting from the massive, murderous outsourcing and are just pretending not to know?

    What America desperately needs now is a revolution. Not like the one that happened here before–like the one that happened in France–as in Robespierre, the Reign of Terror, the unquenchable GUILLOTINES.

    From Zero Hedge:

    “The compounding mistake [of the West]…was a wide-eyed belief that ‘globalization’ would make everyone richer, when the reality was that the out-sourcing of production to emerging economies was a SELF-INFLICTED DISASTER WITH FEW PARALLELS IN ECONOMIC HISTORY.

    Corporations’ outsourcing of production to emerging economies boosted their earnings (and, consequently, the incomes of the MINORITY AT THE VERY TOP) while hollowing out their domestic economies through the export of skilled jobs.

    Skilled, well-paid jobs had been exported, consumption had increased, and ever-greater quantities of debt had been used to fill the gap. This was, by any definition, unsustainable. Talk of Western economies modernizing themselves by moving from production into services always contained FAR MORE WAFFLE THAN LOGIC.

    CORPORATE EXECUTIVES prospered, as did the GATE-HOLDERS of the debt economy, while the VAST MAJORITY saw their real wages decline, their jobs disappear and their indebtedness spiral. Reducing production, increasing consumption and taking on escalating debt to fill the gap was never a remotely sustainable course of action.”

    From the start, irresponsible and deceptive ECONOMIC COMMENTATORS in a position to influence opinion in favor of global free trade have actually only had their eyes on the benefits that could accrue to THEMSELVES, while totally unconcerned about the tragedy of MANY MILLIONS OF AMERICAN JOBS lost and the subsequent destruction of families and shattering of communities it has led to—not to mention transformation of the United States into a debt-riddled basket case in free-fall decline.

    Defending free trade with the argument that it has lifted the living standards of many in the developing world is tantamount to saying that it’s good for American workers to surrender their jobs to those in nations with despotic and corrupt governments that do not possess the competence or will to work toward managing this outcome for themselves—so we need to do it for them, while strengthening their kleptocracies.

    And as nations like China conduct mercantilist driven, economic warfare against America, so much the better, more US jobs lost, higher profits to the few at the top.

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