BLS Unemployment Report

Today’s report was a complete disaster for Wall Street and a total shocker for the main stream economists who treat government forecasts as their talking points.

This is EXACTLY what has been warning our members about, weak job numbers due to structural imbalances and bad news being received negatively by Wall Street now that QE2 has ended. Gold practically went vertical after the jobs numbers were released!

The U.S. economy added only 18,000 jobs with economists’ expectations averaging 105,000, some as high as 175,000. Remember, the main stream economists are expecting a second half recovery, you know the one that gets priced in and predicted every year since 2007.

Other important things to note, the BLS Birth Death Model created 175,000 jobs, this is literally a guessing model presented as accurate by the government and media. The household survey was down 445,000 jobs and the actual labor participation rate dropped to a 25 year low at just 64.1%. Oh and last month when everyone thought May was bad, it was actually worse! May and April were both revised downward losing an additional 44,000 created jobs.

It’s only a matter of time before the whispers on Wall Street start pricing in QE3.