A fraction is made up of 2 numbers. The top number is called the NUMERATOR and the bottom number is called the DENOMINATOR. Inthe fraction the 3 is the numerator and the 4 is the denominator.
DENOMINATOR: This number shows how many equal 'pieces' something has been divided into. In the fraction, the denominator is 4 which means there are 4 equal pieces that make up the whole.
NUMERATOR: This shows how many of those pieces there are. In the fraction there are 3 out of the total of 4 pieces.
In order to convert a fraction to a percentage, divide the top of the fraction by the bottom, multiply by 100 and add a "%" sign.
So, just for fun, in our example above 3 divided by 4 equals .75. .75 multiplied by 100 equals 75%.
I bring this up as a preface to a discussion of the headline unemployment rate otherwise known as U3 which is presently at 4.9% according to the bureau of labor statistics.
U3 is calculated as follows, unemployment rate = number unemployed / civilian labor force x 100
So, here's an example of a calculation employing the above formula that yields a five percent unemployment rate.
unemployment rate = 5,000,000 / 100,000,000 x 100 = 5 percent
Got it? Of course you do, it's simple. But there is mischief afoot and that mischief is found in the catagory "Civilian Labor Force."
Civilian Labor Force" is defined by the Bureau of labot Statistics for purposes of this calculation as follows: All persons in the civilian noninstitutional population classified as either employed or unemployed.
Employed persons are defined for purposes of this calculation as follows: All persons who, during the reference week (week including the twelfth day of the month), (a) did any work as paid employees, worked in their own business or profession or on their own farm, or worked 15 hours or more as unpaid workers in an enterprise operated by a member of their family, or (b) were not working but who had jobs from which they were temporarily absent. Each employed person is counted only once, even if he or she holds more than one job.
Unemployed persons are defined for purposes of this calculation as follows : All persons who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment some time during the 4 week-period ending with the reference week. Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed.
Lets go back up to our example above: unemployment rate = 5,000,000 / 100,000,000 x 100 = 5 percent unemployed.
Only let's suppose that we have only 75,000,000 in "Civilian Labor Force rather than the 100 million in the above example.
The calculation now looks like this, unemployment rate = 5,000,000 / 75,000,000 x 100 = 6.7 percent unemployed.
Let's say we have unly 60 million people in the labor force. The calculation now looks like this, unemployment rate = 5,000,000 / 60,000,000 x 100 = 8.3 percent unemployed.
It's easy to see here how increasing the numerator, in this case the number of people within the "Civilian Labor Force" reduces the unemployment rate without adding a single job.
How do you increase the numerator? It's pretty simple really. Let's say an employer decides, for any reason whatsover, that rather than employing one, fulltime, 40 hour a week employee, he would prefer to have two, 20 hour a week, part time employees. Presto, for purposes of this calculation you now have two employed people where before you only had one despite the fact that the total hours worked and subsequently compensated for hasn't change at all.
Lets take a look at the denominator or the number of people unemployed. The definition for "Unemployed Worker" requires that person to have actively looked for a job in the preceeding four weeks. If you stop looking, you no longer count within the calculation.
So again using our example above, unemployment rate = 5,000,000 / 100,000,000 x 100 = 5 percent, lets say 1 million unemployed people, for any reason, stopped looking for work last month. they no longer count as unemployed, so the calculation becomes as follows, unemployment rate = 4,000,000 / 99,000,000 x 100 = 4.04 percent.
You have to take that million people who stopped looking for a job from both the numerator and the denominator in order to make the defined calculation, but by virtue of the nature of division, the result is profound. You knock nearly 1% of the unemployment rate.
Here's some charts to think about the next time someone, most likely the President of The United States starts yammering about what a fine job he's done in reducing the rate of unemployment.
The chart below was taken from an NPR piece titled "Unfit For WorK the startling rise of disability in America". Click anywhere on the chart to pull up their presentation.
Maybe we'll look into U6 next week. I dunno. You could go look into it yourself if you want. Then tell me about it.
The motor is running slow this morning. So I'm goofing off watching video, lacking the energy even to sit and read.
The first is Colonels Shining Gun, a very nice reining stallion that recently came back to the States from Europe. I'll probably be sending a mare to this stud next year.
This next one is Special Nu Baby tying the all time record for the highest score ever recorded in a cutting horse contest, marking a 234.
Punch it out to about 52 seconds, there's a bunch of nothing going on before that.
Pretty spectacular stuff if you ask me.
Friday Night. It's time to rock.
From 1972, Chi Coltrane likely doesn't consider herself to be a one hit wonder, but this is the one that matters.
Thunder and Lightning hit the charts in May of 72 and lasted all summer, reaching #18 in the US while charting all over Europe as well.
To my way of thinking, one of the finer examples of "Blue Eyed Soul" ever recorded.
Thunder and Lightning, Chi Coltrane.
From Mises Daily, an excerpt from John Denson’s book A Century of War: Lincoln, Wilson and Roosevelt.
It's been a while, so as always, click on the photo for the inspring story of the Christmas Truce of 1914 between German and British soldiers fighting "The Great War".
If you take a minute to understand how our money is created, the perversity and corruption in our system will become clear. And, when I say system, I mean our monetary system to be sure, but also our entire system of government as it functions today.
Most of our money starts out in life as debt. When the Federal Government of the United States of America decides that it needs money that it otherwise does not have, it issues debt ….. bonds. Those bonds are sold at auction by the Treasury Department. Much if not most all of these bonds are purchased by a group of twenty or so large, mostly Wall Street banks designated by The Federal Reserve Bank as "Primary Dealers".
Interestingly, The Federal Reserve Bank or "The Fed" as it is commonly known is not an agency of the Federal Government of the United States of America as one would reasonably expect by virtue of it's name. It rather is a privately held institution, owned in large part by ..... wait for it ..... the "Primary Dealers. The Federal Reserve Bank adds or subtracts money from the economy by trading government bonds with the "Primary Dealers", mostly always at a profit to the "Primary Dealers".
Purchasing bonds from the "Primary Dealers" injects cash into the economy as the Federal Reserve simply makes a journal entry into it’s own computer system for it's own account, and in so doing it deposits a sum of money which did not exist one instant before and thus some number of billions of dollars of new money is born out of thin air. It only dies when the Fed subsequently sells those bonds back into the economy, thus drawing cash out of the economy, or when the government pays that money back by redeeming it's previously issued bonds. In other words, that money is for the most part immortal.
The Federal Government of the United States of America then pays the required interest on this debt out of tax revenue.
Lately the Federal Reserve Bank has on occasion been buying the bonds back from the "Primary Dealers" the very next day following their original purchase by the "Primary Dealers" from the Treasury Department. This enables these preferred banks to buy the next batch of new bonds and then subsequently resell them to the Federal Reserve Bank at another profit whenever the Federal Government of the United States of America again decides that it needs to spend some money that it does not have. Usually, that would be tomorrow.
This is the nuts and bolts of the proceedure commonly referred to as "Monetizing The Debt".
Here is where it gets real interesting ..... at least to me. Congress is empowered by the Constitution to “coin” money without ever having to fool around with The Fed, issuing bonds, debt or making interest payments. U.S. Constitution - Article 1 Section 8 begins as follows: The Congress shall have Power To ….. some stuff you should probably take the time to read ….. Clause 5, “Coin Money, regulate the Value thereof” ….. and then some other stuff you should probably also take the time to read. Congress punted on that right with the passage of The Federal Reserve Act of 1913, which Act created The Federal Reserve Bank as a privately held institution.
Were the Federal Government of the United States of America or any other nation in the world for that matter, to simply make it's own entry into it’s own account at it's own bank, rather than the privately owned institution that it now banks with, there would be no debt, no sale of bonds and no need to pay any subsequent interest payments out of tax receipts.
There most certainly would be instances of inflation, which would most certainly be underreported by a legion of governmental economists kept on the payroll, in one way or another, for purposes of massaging numbers in an effort to obscure the true rate of inflation in a cynical effort to evade accountability to the American people. BUT ..... how is any of that different from what we have today?
The hidden benefit here is of course that there would be no insider profits to be had for the "Primary Dealers”. Which profits they are presently using for the purchase of among other things, legislation that suits their own special interests, largely to the detriment of the American people. That last part there is just my opinion.
Were we to simply cut out the middle man by chartering a bank that is wholly owned by the American people through the Federal Government of the United States of America and let it give birth to it's own money, a lot of our problems, most notably our debt, would become a whole lot more manageable.
Doesn't that strike you as an ever so much better approach? It certainly worked for Andrew Jackson.
A good thing to bear in mind while listening to another dumb-ass President agitating for another dumb-ass war.
We are called to be architects of the future, not its victims.”
There is nothing in a caterpillar that tells you it's going to be a butterfly.”
“God, to me, it seems, is a verb, not a noun, proper or improper.”
“Controlled time is our true wealth.”
“Our power is in our ability to decide.”
“Man knows so much and does so little.”
“Truth is a tendency.”
“The end move in politics is always to pick up a gun.”
“By 2000, politics will simply fade away. We will not see any political parties.”
Oopsies on that last one.
“Pollution is nothing but the resources we are not harvesting. We allow them to disperse because we've been ignorant of their value.”
“How often I found where I should be going only by setting out for somewhere else.”
“I have spent most of my life unlearning things that were proved not to be true”
A problem adequately stated is a problem well on its way to being solved.”
Our last post of charts was probably our all-timer for calls.
Probably/mostly because the posting around here has been less than haphazard for a good long while.
Some of you were worried that I had gone out and got me a job.
Like somebody's gonna hire me.
Anyway ..... we continue.
As always clicking the image will mostly take you to the source article from which it was taken.
On that military gear coming to a county near you thing .....
I'll post it again despite it being just a post or two below mostly because I think it matters.
One outcome is predictable.
The above was taken from an economist piece that concludes, "This is not because they are trigger-happy but because they are nervous. The citizens they encounter have perhaps 300m guns between them, so a cop never knows whether the hand in a suspect’s pocket is gripping a Glock.
I don't disagree.
The ignored issue here is the fact that the citizenry is equally nervous, as the following is the image that Cops are aggressively projecting to the American people on a daily basis.
Why the facemasks?
Here are two other reasonable questions.
The Economist also doesn't care much to consider this next issue.
I'm not relying much on the Economist's numbers on "Death by Police Shootings" for perfect accuracy as I wish there was better sourcing.
As an aside, I frequently come away from The Economist with that same thought ... but I digress.
I mostly believe it though because of this.
If you go through all the numbers in the linked pieces above, they don't always add up real well as these charts come from different years and sources, but the message holds regardless of the details.
Compared to any other country in the world, we put an extraordinary number of people in prison relative to our population.
Your intuition is correct however as high incarceration rates have led to a reduction in crime ..... at least on the outside.
I linked all of the charts below to the same University of Chicago research paper which offers it's own batch of charts as I thought it was the best thing out there.
Lying Al Sharpton among others will tell you that America's criminal justice system is racist because Black and Hispanic People are significantly more likely to run afoul of the law than are White People.
He is absolutely right about that second part.
Maybe not so much there on that first part.
The following statistics are taken from the 2005 edition of The Color of Crime by Jared Taylor.
Apologies for making you read, but I found the following summary to be significantly better than any five charts I could assemble.
Click anywhere below to link up to the entire work.