Nonfarm Payrolls Down 11.3% Annual Rate in July

The economy shed 1,231,000 nonfarm jobs in July 2011. The part of the economy that produces goods and services. This combined with the European economic melt down has the DJIA plummeting again.

Any economist who understood economics, and does not believe in models, foretasted this years ago. We lost our economy in the housing boom and bust. We failed to suffer through the recession, because the economist and politicians in Washington believed in fairy tale models, and artificially pumped up the economy with fiat computer generated cash. Now the cash is gone. The spending is over either through economic collapse or hyperinflation. It is that simple.

We spent trillions to create economic distortions in the economy and misallocate resources on a scale never seen before. Now we will suffer the consequences of our folly. People think economics is a bunch of models that are up for debate among wise men. This has never been true. If you violate the laws of economics you pay sooner or latter. We choose latter and that day is arriving sooner than we anticipated.