Anthony B. Sanders:
How well is Fed monetary policy working on the employment front?
Last month, The Fed purchased $85 billion of agency mortgage-backed securities and Treasury debt. The ADP jobs report this morning indicated that only 130,000 jobs were added in October. That is $653,846.15 per job added
I have no doubt that The Fed will keep on printing at a rate of $85 billion per month, growing the Fed Balance Sheet.
But with slowing ADP job growth, the cost per job added is growing with the $85 billion per month in Fed asset purchases.
But as long as house prices (white line) and the stock market (green line) take off with Fed asset purchases (bubbles) …
And if I overlay the declining ADP private jobs added (purple), we get this “bubblicious” chart.
This is right along the lines of all of Obama’s pivots to jobs numbers.
His stimulus cost-per-job created is somewhere between $4.1 million and $540,000.
Recall that poverty line.
Simply giving every household in poverty an equal share of all of Obama’s spending for ”jobs,” would have lifted every home out of poverty by over $50,000.
And even if Obama didn’t do that, had he simply cut out the middle men (federal employees) and divvied up all welfare money to the poor, they would have gotten over $60,000 each household each year since he became president!
http://www.weeklystandard.com/blogs/over-60000-welfare-spentper-household-poverty_657889.html
Amazing! and the Fed keeps on printing despite complete failure. Obamacare is the Fed for healthcare.
I have my wheelbarrow. Argentina here we come.
It is getting crazy. Particularly with crashing money velocity (banks still aren’t lending).
http://confoundedinterest.wordpress.com/2013/11/01/free-fall-us-monetary-base-keeps-rising-while-m1-multiplier-and-m2-velocity-keep-falling/