Monday, September 28, 2015

Okun’s Razor: How can the Fed ever raise rates with real unemployment over 12%

There is one sure thing about central banks and government agencies… neither one will ever do the right thing.  And when the propaganda we have been getting for more than a decade from both the Fed and the Bureau of Labor Statistics (BLS) suddenly was shattered 10 days ago when Janet Yellen chose not to raise interest rates, the reality of believing in false models and manipulated data revealed itself like a Black Swan.
Which brings us to an economic model known as Okun’s Law, which says that for every one point increase in the cyclical unemployment rate, two percentage points of negative growth in real GDP are experienced.


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