A quick follow-up on jobs versus employed persons in Minnesota. The other thing to note is that all the job growth in Minnesota for a long time has been in government, and in education and health care, which are largely paid for by government. The private sector is not growing. Construction, manufacturing, IT, finance and professional and business services have all seen losses of jobs. Government jobs have grown by 5% in the last year. Walz has put Minnesota on a collision course with reality. (BLS Mn. Data)
And now everyone sees interest rates going up, despite the Federal Reserve’s big rate cut, and everyone is saying it is because of the debt and excessive supply. Yesterday there was a 20-year bond sale, modest size at #13 billion, and it furthers the narrative, as demand was acceptable, but the interest rate paid was significantly higher than desired or expected, at 4,6% up over a half a percentage point from the prior month’s auction. People aren’t going to take on US debt instruments without being paid for the heightened risk of inflation or even default. (ZH Post)
