The Bureau of Labor Statistics announced last week the creation of some two million "seasonally adjusted" jobs and a reduction in the rate of unemployment to 8.3%
The press release was breathlessly reported by all the major media outlets across the nation if not the world, none of whom bothered to pull out their calculators and check the number.
The problem with 8.3% aside from the "seasonal adjustments" the formulas for which have never (to my knowledge) been explained anywhere, is the fact that millions and millions ... and millions and millions of Americans of employment age have and continue to be dropped from the count.
Take note of Mr. Williams calculated rate of about 23% and consider that unemployment during the great depression hit it's high of about 25% in 1933, which number I believe was calculated using Mr. Williams preferred method (the blue line).
The following chart is a simple history of the Fed Funds Rate since 2007.
The second chart is all over the place in multiple formats usually with a notation to note the decline since 1914 when the Fed came into existence with the expressed charge of preserving the purchasing power of the dollar.
The third chart demonstrates the comparable success of the Bank of England in it's pursuit of the exact same charge.
Remember when we were gonna fix that too big to fail thing?
Finally as stated, the total credit market debt owed from 2001 through 2010.
Have a pleasant evening.