(Melchizedek Communique, MC010810) Robert Reich (image shown), former Secretary of Labor, stated yesterday, "[W]e have a very long way to go, given the economy now has 7 million fewer jobs than it did two years ago -- along with an additional 2 million people who've wanted to join the labor force but never got in. So even when we're back to 200,000 net new jobs a month, which would be a normal, solid recovery, it's going to take years to shrink this mountain of unemployed." [1]

We now have an "economy on steroids," said Reich. What happens when the Fed tightens and the stimulus ends? [1]

Part of the "steroids" is over $2 trillion in new Treasury bond offerings scheduled to hit the market in 2010. "This year, President Barack Obama's administration will sell an estimated $2.5 trillion of notes, bonds and Treasury- Inflation Protected Securities," reports Bloomberg News. [2]

The giant "Going Out of Business" bond sales are imminent, with an initial "offering" of over $118 billion. A report dated December 24, 2009, and having an "update" of January 5, 2010, states, the initial $118 billion is to be sold "next week." So "next week" could have either already happened or is about to happen. [3]

(See also: "Bond Vigilantes Keep Watchful Eye", http://www.shout.net/~bigred/mc010710.html)

A little-noticed report in the Washington Post discovers the past 10 years as a "lost decade" in the United States. The Aughts began with "triumphalism": It was the "New Economy" (supposedly). NAFTA had been made law. There was "pent-up demand" from Mexican consumers who were eager to buy American-made products, the mainstream "news" proclaimed through their echo chamber. [4]

Now get this: Your mind may have become hopelessly befuddled by loud "Love Life of Golfers" supposed "news" stories, but little-noticed is, "There has been zero net job creation since December 1999. No previous decade going back to the 1940s had job growth of less than 20 percent. Economic output rose at its slowest rate of any decade since the 1930s as well." [4]

Repeat: Zero net job creation since December 1999.

And even while there has been zero net job creation for the past 10 years, the number of workers seeking jobs has been growing, along with the population. The labor pool has also been increased by Mexican workers having so much "pent-up demand" that they have entered the U.S. in defiance of her laws.

And what do the "news" reports keep saying? "Prosperity is just around the corner." This is the constant drumbeat of subtext in "glimmer of hope" reports we keep getting. (Background: "Prosperity Is Just Around the Corner", http://www.shout.net/~bigred/mc122909.html)

------- Notes -------
[1] "2010 recovery not likely to be vigorous". Steve Chiotakis interview of Robert Reich. NPR, Marketplace Morning, Jan. 7, 2010
[2] "Why Bonds May Trail Stocks Again in 2010", by Cordell Eddings. Bloomberg, Jan. 4, 2010
[3] "Bond vigilantes could send rates higher", by Allan Robinson. theglobeandmail.com
Published on Thursday, Dec. 24, 2009 11:41AM EST Last updated on Tuesday, Jan. 05, 2010 11:15AM EST
[4] "Aughts were a lost decade for U.S. economy, workers", by Neil Irwin. Washington Post, Jan. 2, 2010