"ADP: Positive, But Structural Unemployment Remains"

"ADP: Positive, But Structural Unemployment Remains"

by Karl Denninger

"+32,000 ADP. Small businesses are not hiring and structural unemployment remains a problem. We're seeing a bit of hiring in large businesses, particularly in service-producing ones, which is a positive. But the numbers are nowhere near the necessary level to stop the deterioration in the labor market (remember, we need about 150,000 jobs created monthly in order to simply balance the incoming supply of workers net-on-net.)

This is rather weaker than I had expected, actually - I was looking for a private number closer to 50,000. It's not a catastrophe but the claimed "turnaround" simply isn't coming. Nor will it until the government can get out of the way, and it can't without causing the underlying economic Depression to immediately assert itself.

This is the rock and the hard place; we have shifted the damage to governments from private parties. The belief was that the government, of course, is "stronger". This belief is false; the only "strength" the government has is the force of arms, and as the government must gain its funds from taxation (ultimately) it is always weaker economically than the private sector.

I know all the arguments about them having a printing press. Yes, they do. But if they use it, it is like adding just a bit of arsenic to their evening meal - too much, and they (and everyone else) dies. This is the inherent restraint on the overuse of same - not that occasionally people won't do dumb things (Weimar and Zimbabwe anyone?) Reality is knocking on our door."

- http://market-ticker.denninger.net/

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