Intel Barter

Most important indicator of the economy is unemployment levels. But it is even more important to know how to read the unemployment data by properly knowing the important facts. Lets take a look at a several thing going back 20 years, for unemployment, population, inflation and public stock-market value.

In 1990 unemployment level was around 6%. Since 1990 Americas population has increased over 25% from about to around 250mil to 310mil. Since then our inflation has gone up around 67%.

Population: About/around 250mil

Inflation: 67% Yr1990-2010

250×6% = 15mil people unemployed

DJIA: 2700+

Population: 310mil 25%+

Inflation: $1 in 1990 = $1.65 in 2010

310×9.6 = 29.76mil people unemployed

DJIA: 10999+

• (from 2008-2009 when the stock market crashed inflation was -0.4%)

There can correlation for this data. One key note I made in italic above is to show what happened to the currency when the market crashed, and no that is not a coincidence. That happens when the markets recess, so supply of money goes down. (during the recent crisis if you research, you will see that all of the worlds major central banks rushed money into the FOREX systems for American dollar market in order to maintain it from collapse from over deflating and preventing the markets from going down further by providing an quantitative-easing; currency and stock-markets are heavily correlated to a great extent) If there are repeats between the technical analysis, there are ways of predicting certain movements bot big and small. But those movements cannot be identified without crossing referencing them with fundamental analysis which is the larger decisive factor. Technical’s alone are always at best 50/50, but when combined with fundamental analysis it becomes more reliable. For instance when unemployment started to go up and there were signs of the recession before the crash of the markets, which many people figured out, but most ignored and went forward without protection. I wish it was like that coming out of the recession where people can see it and ignore the recession and just go on; in a way you can.

This data is not to compare the economic situations, but to show you that it’s not only about looking at just one indicator, its about looking at all relative factors and performance indicators.