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Friday, October 19, 2012


AN INSIDE JOB...REPORT: Suspecting the unemployment rate in last weeks' U.S. Labor Department jobless report had been "cooked" to favor the Obama Administration's economic performance, analysts discover that California was indeed omitted from the numbers and, in the course of their inquiry also find that California's Labor Secretary, Marty Morgenstern, is a big Obama campaign donor.
by Dan Crosby of The Daily Pen
NEW YORK, NY – The state governments in Hawaii and California rely heavily on federal tax revenue to support their municipal operations, infrastructure and public services. One relies on the federal government because it is so remote, the other because it is so big…and both because they are so liberal.    
For more than four years, many have suspected the State of Hawaii has lied to hide information about Obama’s natal history. The reason for the suspicion is rooted in Hawaii’s refusal to provide information from their Health Department files which would help prove that Obama is a Natural-Born citizen and, therefore, eligible to hold the office of President.
Now, California is lying for Obama too.
On October 11, the U.S. Labor Department reported that jobless claims had fallen by 30,000 to 339,000, suggesting the first dramatic increase in economic growth and a decline in layoffs since February 2008.
However, speculation among business analysts and economists immediately questioned the accuracy of the report after a review of the volume of jobless claims in comparison with volumes in previous reports. As a result, they found strong evidence that the unemployment rate had been falsely reported as 7.8%, down 0.5%.

The drop in percentage of jobless claims caused analysts to then look at the comparative volumes from each state and what they found was a volume of jobless claims which indicated that one state may have failed to report its data. This was determined after it was realized the denominator of a key labor rate indicator measuring the available labor force had sharply increased.
Changing the denominator of the jobless rate without changing the numerator will change the percentage, without changing the volume. For example, if 3 out 12 people are unemployed, that is a 25% unemployment rate. But if you show those 3 unemployed people as a part of 15 available workers, instead of 12, the unemployment rate magically drops to 20%...BUT the same 3 people are still not working!

"...if you show those same three unemployed people as a part of 15 available workers, instead of 12, the unemployment rate magically drops to 20%...BUT the same three people are still not working!" 
Based on the increase of the denominator in the ratio, the analysts focused on California as the possible state which they believed had been left out because California has the largest population and largest labor force in the U.S. which, if omitted, would indeed cause about a 0.5% fluctuation based on previous report numbers.
In reaction to accusations of impropriety, the California Employment Development Department strongly denied that it had failed to properly document the data.
“Reports that California failed to fully report data to the U.S. Department of Labor, as required, are incorrect and irresponsible,” California Employment Development Department director Pam Harris said in a statement last week.

“The California Employment Development Department, which administers the Unemployment Insurance (UI) program in the state, has reported all UI claims data and submitted the data on time.”

However, it now appears the analysts were right. Early Thursday, the federal government finally revealed that California was indeed the state that had, in fact, underreported jobless claims, as suspected by many, after the weekly Labor Department job report, skewing the national jobless claims results. This week’s updated jobs report corrected the error and showed unemployment claims spiking back up by 46,000.
The intentional omission of California’s data promoted an artificially favorable economic report for the Obama administration because the inclusion of California’s unemployed would have cause the jobless rate to increase by 0.02%, not decrease by 0.48% to 7.8%.
Regardless, the pro-Obama, biased media spread the “good news” quickly, with outlets like CNN and Bloomberg declaring, “Jobless claims fall to four-year low.”
Within hours, the Bureau of Labor Statistics and Labor Department analysts announced that one major state had failed to fully document jobless claims. They declined to name the state.
Now, it has been learned that Marty Morgenstern, the secretary of the California municipal agency that under-reported unemployment claims, contributed to President Barack Obama’s 2008 presidential election campaign.
According to campaign disclosure records, Morgenstern donated $4,600 — the maximum amount allowed by law — to the 2008 Obama campaign, beginning with a $1,000 contribution to Obama for America in February 2008. Morgenstern followed up that donation with a $1,300 contribution in June, and then a $2,300 payout in early September.
Democratic Gov. Jerry Brown appointed Morgenstern to lead the California Labor & Workforce Development Agency in 2011. The state agency oversees the Employment Development Department.
California recent in-state report claims its unemployment rate has dropped from 10.6% to 10.2%.
Analysts are rightly skeptical of the report.

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