Thursday, September 13, 2012

Economic Fuel Gauge

Here is the Civilian Employment Population Ratio chart published by the Federal Reserve.
Generational employment as a percentage of the population have been declining since the dot.com bubble in 2000. Then the unprecedented downward momentum caused by the financial crash in 2007 left the chart hanging just over the gains forty years ago.  The chart is sort of an economic fuel gauge which illustrates the dilemma the Fed is in.  Their accommodations cannot seem to find the economic gas tank for the broad middle class and one can sense Bernanke is nervous.  He does not want the current consolidation turning into a ledge for further declines.  "Do something" is now the policy impetus.  Yet all accommodative QE programs have come from what has been called "the double down on trickle down" method.  Feeding the top so they might feed the rest is leaving the chart hanging.