Happy New Year. Well, probably not for a lot of people. Today is the first employment report of the year, and the bottom line is that the most optimistic view one could take from it is stagflation. The weakening employment trend does not support the bullish growth meme, especially as the “not in labor force” reaches a record 95.1 million. Adding back the “unemployed,” there are 102.6 million people not working – 0.675 for each employed person. Think about it.
Anyhow, the bubble lives on. US property prices are back to the previous bubble peak, and of course there are many other property bubbles around the world. The US stock market is by many measures the most over-valued in history. I could go on, but what’s the point. It will pop when it pops.
As previously explained in this blog, we are witnessing the death throes of liberal socialism. President-elect Trump is merely a symptom, as are the other “populist” political figures around the world. The liberal establishment that has benefited from the largesse is fighting back with every available weapon, but it is fated to be a losing battle. Que sera, sera.