Chart of the Week: The Real Level of Unemployment

Shadowstats.com tells us what the real unemployment level is. The government's broadest measure, U-6, and not the one usually quoted in the CMM, is a full 7% lower than the figure widely accepted as reflecting reality. You can thank another Democratic shill, Bill Clinton, for fiddling with the government's measurements of unemployment by defining long-term discouraged workers out of existence (1994), as well tearing down the Glass-Steagel wall against commercial bank speculation (1999). When the Banking Act of 1933 was repealed, Clinton said, "Glass-Steagall is no longer relevant." So much for what Bubba knew when he knew it. The Great Depression (or Contraction to use an economist's term less fraught with psychological overtones) saw US unemployment officially reach 25% by 1932. We are close to that historic high again. Over on easy street, the global rich and mega-rich, those pillars of job creation, are hiding an estimated $21 trillion in off-shore tax havens. Buddy, can you spare a million?

In Europe the news just keeps getting worse, and that dear readers, will be bad news for America. There was panic selling of Spanish bonds yesterday as yields went over the 7.5% yield danger signal. The trigger was a request from the Valencia region for financial aid from Madrid. Murcia asked for help on Sunday and Catalonia appears to be next in line for aid. Talks with deep pocket Germany are scheduled for Tuesday, but Spanish officials vehemently deny their country will ask for a soverign bailout. Opinion is against them because Spain's problems go far beyond insolvent banks. Greece is about to be shoved out the door without a parachute by Germany and the IMF. Both Germany and the IMF refused new aid since Greece is not meeting fiscal targets imposed on it, and is seeking to renegotiate terms of the second loan package agreed to in March. Chancellor Merkel's Bavarian coalition partner the CSU said Germany has reached the "end of the road with Greece." Greek politicians are finally using the word "depression" in their description of the Greek economy.