Tag Archive for Bls

Obama’s Internal Devaluation Causes Income Inequality- Chriss Street

The Obama Administration’s $5.8 trillion of big government deficit spending has caused the United States to suffer an “internal devaluation,” as American worker wages after inflation were forced down in each of the last five years. American competitiveness increased by over 10% due to worker sacrifices, but all the benefits flowed directly to corporate officers and financial speculators. When the President recently lamented, “The combined trends of increased inequality and decreasing mobility pose a fundamental threat to the American dream,” he could count on the unwavering support from Warren Buffett, who was the last year’s biggest dollar gainer with a $12.5 billion jackpot.

Is this Growing Trend About to Fuel a 5-Year Stock Market Rally? – Money Morning

A rising tide of capital expenditure (capex) spending by U.S. companies will drive a stock market rally that could last as long as five years, BMO Capital Markets Chief Investment Strategist Brian Belski says.

In a message delivered to several news outlets, Belski argued that U.S. companies will soon start using their increasing cash piles to invest in their own businesses. He sees it as the next logical progression for companies with strong balance sheets.

Of the four ways a company can spend cash, he said, three have already been widely employed.

“What typically happens is you have a surge of [stock] buybacks, which has occurred. You have a surge of dividends, which has occurred,” Belski told Bloomberg News. He also noted the wave of recent mergers and acquisitions.

Capex is the fourth way, and Belski not only thinks it’s inevitable, he says the corporate growth that will result will power a stock market rally that will last “at least three to five years” and could well be the beginning of a “super bull market” that could go on for as long as 15 to 18 years.

“We think this train has a very long tail,” Belski told Breakout.

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Why the January 2013 U.S. Jobs Report May Surprise You – Money Morning

This is a syndicated repost courtesy of Money Morning. To view original, click here. The U.S. employment picture is expected to show continued signs of improvement when the Labor Department releases January’s U.S. jobs report Friday morning. Projections are for nonfarm payrolls to have gained 168,000 employees during the first month of 2013. While a…

Weakening Federal Withholding Tax Collections Do Not Bode Well For Employment

This report is an excerpt from the permanent Employment Chart page.  The edge that Federal Withholding Tax collections had held over last year continued to narrow last week, suggesting a weakening employment picture in May. The chart below compares current withholding tax collections with last year on the same date. This year collections have been…

Job Reports, Much Ado About Nothing

There has been much ado about the US employment numbers both from surveys and the BLS.  Most of this centers around bogus numbers from the BLS, but I prefer to jump to the quick, and look at withholding taxes. Really what difference does it make if there are few hundred thousand new jobs if they are part time, pay low wages, and have no benefits. The bottom line comes from stepping back and looking through the lens of the last four months, using the government fiscal year to date (October to now) , which incorporates XMAS hiring.  Lee Adler noted a surge in January which is now fading.  In using this data in the past, anytime you get something spiky it will usually have to do with YoY timing or an outlier.  Charles Biderman at Trim Tabs sees nothing here. The four month wages withheld data shows very little improvement either, which to me casts serious doubt at least on the quality of any job improvement. Per the Daily Treasury Statement, so far in the current fiscal year total withholding is 618.5 bn vs 616.7 bn YoY, hardly an employment boom. Corporate taxes collected are 74.5 bn vs 68.9 bn.  If you are wondering how corporations [...]