Fed Charts of the Week: Credit, Unemployment

A lot of charts have been updated this week, but I just want to point out a few in particular as the rest have not really changed that much since I last presented them.

Regarding credit and money, keep in mind that CREDIT far exceeds MONEY. Here’s what’s happening to the yoy percent change in nonfinancial commercial paper:

Here is what’s happening to the monetary base:

Which one is winning, and what does winning look like (keep in mind that’s only one type of credit)? Remember, we can’t directly see the effects on the Shadow banking world of derivatives and leverage.

Regarding employment, below is a chart of the Civilian Employment–Population Ratio:

Below is the raw number of employees engaged in manufacturing. The number of employees in manufacturing has not been this low since 1942:

Below is a chart of those unemployed for 27 weeks or longer:

Below is the chart of those unemployed for only 5 weeks or longer:

While the numbers on the short term chart are dropping from the peak, they are still at a very high range historically and short term chars are much noisier than longer term ones.

While the jobs are obviously no longer in the manufacturing sector, most of the other sectors are back to employment levels of the late 1990s. I am left wondering what happens when the monetary stimulus is pulled? Where are the jobs in America going to come from? “DING…”

Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!

About Nathan A. Martin 121 Articles

Nathan A. Martin is President of Wingman Investments, LLC, and author of the book Flight to Financial Freedom – Fasten Your Finances. He sees people, both young and old, facing a new era where they are forced to be responsible for their own financial success or failure. His message is clear; become financially literate or be a victim of the external forces that are impacting everyone. Nathan possesses an undergraduate degree in Professional Aviation and Business as well as a Master’s degree in Aviation Management and Operations.

A former Air Force and retired airline pilot, his flying took him the world over participating in many operations including the invasion of Panama, and combat time during Operation Desert Storm. Experience has come over 26 years of flight - logging more than 12,000 flight hours both civilian and military, and as the owner of a corporate aviation management company whose focus was aircraft efficiency.

Influenced by his parents entrepreneurial activities, Nathan began his business and investment training early in life and has used that knowledge every step along the way... from business school to his own corporations and personal investments.

Visit: Nathan's Economic Edge

Be the first to comment

Leave a Reply

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.