Jobs Vanished, No Surprise

On Wednesday’s episode of The Peter Schiff Show, Peter lays out a stark picture of how official data, monetary policy, and political posturing are masking deep problems in the U.S. economy. He walks through massive retroactive job cuts in the government numbers, explains why markets were misled by a faulty birth-death model, and ties the dollar’s decline to a broader process of de-dollarization.

He starts by calling attention to the startling scale of the government’s revisions to employment data and what that says about the real health of the labor market:

Now what people are overlooking, of course, is the far more significant downward revisions that were made today — announced for prior years, not just months, but years of data was revised yet again… The total number of revisions was about two and a half million jobs going back to 2019. The government now basically erased those jobs: ‘Never mind, they were never created; we reported that these jobs were created but now two and a half million jobs that we claimed were there never actually existed.’

The Real Crash Schiff, Peter D. Best Price: $0.10 Buy New $3.95 (as of 01:15 UTC - Details) He explains why these phantom jobs showed up in the data for years — a methodological assumption that systematically overstated hiring and misled markets:

In fact one of the major things that I pointed out every month that was wrong was the birth-death model, which constantly showed all of these jobs that were created even though there was no proof that they actually existed. But they were just assumed to have been created because the guys at the Bureau of Labor Statistics assumed that a bunch of new companies were starting up every month — they didn’t know if they were, they just assumed that they were — and they further assumed that these companies that they believed were starting up were also hiring a bunch of people.  

He then turns to the political narrative about foreign investment under tariff policies and finds the real money flows tell a different story:

Money is coming out of the United States; it is not going into the United States, and the world is in the process, as I’ve been saying, of de-dollarizing, walking back its relationship; the U.S. is going to be less important in global trade, not more important, the dollar is going to lose a considerable percent of its value and as a result we’re going to lose a lot of our influence.

He reminds listeners of a basic-economic insight many modern policymakers forget: wealth comes from production and savings, not from conjured demand: How an Economy Grows a... Schiff, Andrew J. Best Price: $1.99 Buy New $7.20 (as of 11:05 UTC - Details)

Abundance isn’t created by demand; it’s supply that creates stuff, and that comes into existence through self-sacrifice, through underconsumption, through savings, through investment. That’s what leads to eradicate poverty; that’s what lifts people out of poverty because we have more stuff — you’re poor because you don’t have enough stuff, and the way you eliminate poverty is through creating stuff so that there’s now more stuff that people can now afford.

Finally, Peter addresses the crypto conversation directly, explaining why tokenized gold has real economic logic behind it and why it should outperform Bitcoin as a reliable store of value:

No one’s going to get rich quick tokenizing gold because you actually have to have the gold — people got rich tokenizing nothing because it cost them nothing and they could sell it for a bunch of money to a bunch of fools who didn’t realize they were buying nothing. If the token is an ounce of gold you have to spend five thousand dollars to get the ounce of gold and then you sell it for just a little bit over five thousand dollars — it’s a low-margin business but it’s a great product, and it’s going to replace bitcoin because bitcoin is not a store of value.

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This article was originally published on SchiffGold.com.

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