Day traders and other investors everywhere are being misled by the very organization that we are trusting to lead us out of the current economic predicament that we as a country, even a world, have found ourselves in – The United States Government. And those who want to position themselves to take advantage of the resulting market turmoil will learn day trading strategies of success.
You’ve no doubt noticed the rising unemployment rate over the past year. In recent months, the unemployment rate has crested 10%, and most recently, dipped back down below 10%, to 9.7%. However, the unemployment rate that is released by the Government is not the “true” economic unemployment rate.
In fact, it’s downright misleading. And it is meant to be.
Consider this – in the most recent unemployment data release, the so-called economic “experts” predicted a job GAIN of 10,000 jobs. But instead, we actually lost another 20,000 jobs. And despite the job loss, the “unemployment rate” actually DROPPED from 10% to 9.7%. So ask yourself – how is it possible that the unemployment rate would DROP when we had a net LOSS of 20,000 jobs?
How could we lose jobs, and also reduce our unemployment rate by 0.3%? The answer is very simple – the “unemployment rate” released by the government isn’t the true “unemployment rate”. The unemployment rate that you are most likely familiar with doesn’t include all categories of the unemployed. And the figures have also been “seasonally adjusted”, which artificially skews the data.
If you visit the Bureau of Labor Statistics website and actually research the economic data yourself, you’ll discover that, while the “seasonally adjusted” unemployment rate is 9.7%, the “not seasonally adjusted rate” is actually 10.6%, as compared to the “not seasonally adjusted rate” in December 2009 of 9.7%. So did the unemployment rate really drop 0.3%? Or has the data been manipulated to paint a better picture than reality?
But the unemployment shenanigans don’t end there. In fact, the “seasonal adjusting” factor is just the beginning! The unemployment data released by the government doesn’t actually include ALL unemployment – they conveniently leave out several key categories of American workers. For example, the data fails to include a group called “marginally attached to the labor force”, and a subset of this group called “discourage workers”.
People who fit into this category would include those who have searched for a job, who want a job, but who are not “actively seeking a job”. People who have become so discouraged that they have (at least temporarily) given up. The government would have you believe that these groups should not be included in the unemployment data, because they aren’t actively looking for work.
But this group is still in many cases receiving unemployment compensation, and they are still creating a drag on the economy. Just because you aren’t actively looking for a job does NOT mean that you are no longer “unemployed”. Also, the government’s interpretation of unemployment doesn’t include those workers who …