Last week's Jobs Report showed that there were 190,000 jobs lost in October, higher than the 175,000 job losses that were expected.  Also, the Unemployment Rate rose to 10.2%, quite a bit higher than the 9.9% expected, and the highest Unemployment level since 1983!

While this number is shocking, what is even more concerning is the "real" unemployment rate being closer to 17.5%. This includes those who have not searched for a job for at least four weeks, known as "discouraged or detached" workers, as well as those desiring full time work but having to settle for part time, the "underemployed". There was a tiny bit of good news; there was an upward revision for August and September, showing 91,000 fewer jobs lost than previously reported.
However, in order to just keep up with population growth - or to keep the ranks of the unemployed from rising - there must be 125,000 jobs created each month. So the latest report of 190,000 jobs lost, really means we have fallen behind by 315,000 jobs, just last month!

Thursday brings another Initial Jobless Claims Report, and now that the bill to extend unemployment benefits has been signed into law, the number of Continuing Jobless Claims is likely to rise significantly. This number had been moving lower, which the media and other "experts" have been rejoicing over, not understanding that it is moving lower because so many people have been on unemployment for so long, their unemployment benefits have actually expired before they were able to find work. It's more important than ever to keep an eye on this information, since the labor market is a key factor in our overall economic recovery.

The dollar is getting hit hard again this morning; stocks rallying, crude oil higher and gold up----all a function of the dollar's decline. So far a good thing for the markets, equities and rate markets. America is for sale and there are buyers out there willing to step up. Eventually however, there will be a huge price to pay for the collapse; inflation. No one in Washington from the President to Congress to the Fed and to Treasury has uttered a peep about it. This is the first administration in over a decade that hasn't jaw boned and do the required thing, saying the US wants a strong dollar. No matter those comments are meaningless. This administration and the Fed don't want to create the least ripple, in fear that markets might take them seriously. While the Fed continues to talk the talk and walk the walk keeping interest rates low for that "extended" period, I hope the Fed is watching closely. While there are no immediate concerns as long as unemployment is increasing, but when the rate turns so too will the Fed and more importantly investors will sell US bonds and stocks in fire sale moves?   I certainly hope not for all our sakes.