Another round cooked number were presented to keep the face of DOWJONES above 12000 marks. Obama administration has again and will try in future to keep the face of Wall Street to be promising when in real terms it has no words to make any promise. The community of financial analyst should try to avoid and cut US economy from the map of investments and prospects or any type of clue which will guide the world market. Since cooked numbers will only give birth to bubble of speculation, where the future becomes quite dark.
In my last article I mentioned that US will try to cook numbers since Republican and Democrats are not street fight for the 2012 elections.
Companies in the private sector hired 154,000 workers, but governments at all levels continued to trim jobs, putting the overall gain at the critical headline figure of 117,000. Payrolls rose by 117,000 workers after a 46,000 increase in June Their is nothing to jump with joy that the number has come down to 9.1% since as per the New Policy of budget cuts governments are going to shed jobs in coming days. When the government jobs numbers are going to decline in coming days the unemployment numbers are not going to come down. So its can be easily estimated and not speculated that US unemployment will come down in coming days. According to the budget cuts government job creation will be less or negligible and the entire dependency will come on private sector.
The below image shows the payroll statistics.
This time the biggest increases occurred in health care (31,000), retail (26,000) and manufacturing (24,000). Government shed 37,000 jobs, marking the ninth consecutive decline in unemployment numbers. Now the real pictures come out like this that as government will not be able to create jobs, hence inflation which is backed upon consumption will not pick up as a result economic growth numbers will be less in coming days.
Now the interesting part is this that US private sector is not expanding or neither interested to hire as per the pre recession levels this will also add to the decline numbers of unemployment and GDP growth numbers of US. By this time Wall Street itself has went for shedding of jobs. The finance sector saw 4,000 jobs disappear last month, according to the Bureau of Labor Statistics, continuing the trend begun last month when the sector lost 15,000 jobs. If I drill down further I find Credit intermediation and related activities lost 3,000 jobs, while real estate, rental and leasing lost 900 jobs. Securities, commodity contracts and investments gained 700 jobs, while commercial banking saw an increase of 200.according to the estimations it is being expected that wall street to loose further jobs in coming months,.
Final part of the show will be that how US administration will cook its forth coming numbers to Bubble the Dow Jones.
Now get ready for the cooked numbers and BUBBLE DOW JONES.
Global Macro Economic Researcher and Business Strategist
Master of Economics, MBA in International Business Management, ICWAI (Final)/CWM Final/Journalist