Another sign of underemployment driven stagflation - decelerating employment cost index of 0.8% from 0.9%
Sam Adelton
Oct. 29, 2006

The employment cost index is falling very fast compared to the inflation. It is actually falling apart when compared to the rise in gold prices in the last four years. That is a sign of underemployment and stagflation. Fed has done little to stop the stagflation.

On October 31, a very important report will come out at 8.30 AM. It is the third quarter employment cost index. It is expected to rise 0.8% from 0.9%. Compared to the rise of gold prices the employment cost index is actually falling at a rate never seen before. In other wages are getting depressed while prices are rising fast especially in housing and energy.

These are signs of stealth economic troubles. Common people are suffering while the numbers show the economy is in great shape. It is in great shape for those who are sitting on inherited wealth. It is in great shape for those who pays minuscule amount of tax compared to their entire net worth. But it is not pleasant for the main street.

As for employment what is happening is strange. If a person is qualified for grade 10 job, he is finding it as impossible to get that job unless he knows someone. At the same time it is very easy for him to find a grade three job paying little since so one wants to take that low grade job and waste their time.

Another sign of underemployment driven stagflation - decelerating employment cost index of 0.8% from 0.9%
Sam Adelton
These are signs of stealth economic troubles. Common people are suffering while the numbers show the economy is in great shape.
READ MORE>>

Personal spending went up 0.2% but rate of personal income increase stayed the same at 0.3% – stagflation in full swing
Peter Oberois
The housing market collapse, the underemployment and overall mood of uncertainty are having deep effects on the economy...
READ MORE>>

Dow getting ready to head towards 5000, oil $20 a barrel and gold $240 an ounce
Peter Oberois
How is that possible you may ask. But that is how the markets behave. The collapse in 2000 was just the start of wave one downwards. The wave two in reverse direction is getting completed with horrible fundamentals.
READ MORE>>

GDP growth of 1.6% confirms stagflation as economy heads for a deflation plagued depression
Sam Adelton
The deflation will be triggered by the inability of the economy to purchase goods and services. Every long term depression starts with underemployment and stagflation...
READ MORE>>

Sharp increase in new home sales with 7.8% increase in durable orders is the recipe for higher rates
Fred Day
The inflation expectation is rising and that can affect the future rates. It seems Fed will start hiking rates again as early as March 2007.
READ MORE>>

Sentiment indicator says real estate bottomed - new homebuilders in panic mode with sharpest decline in prices
Peter Oberois
The number of homes sold actually increased but the prices dropped sharply...
READ MORE>>

MORE ARTICLES >>