Wall Street Cheers Terrible Jobs Report, OpenAI Implodes, and France Goes Full Chaos | The Tom Bilyeu Show

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Tom Bilyeu (0:30)

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And this one is weird. The seven foot alien reptile story has got to be a sign up. I am convinced this is as fake as it gets, but nonetheless, it was popping off this weekend and I would ignore it if it wasn't for who is actually making the claims. And to keep things light on a Monday, we've got an airborne plague outbreak shutting down hospitals in Russia.

How it all started is about as infuriating as it gets. So we're gonna be diving into that. All right, we've got all that and more right now on the Tom Bilyeu Show Live. Welcome everybody.

All right, per usual, let us start with the economy. Bad news is apparently good news. Friday's job report was absolutely terrible, but the market's response was to rally instead of going the other direction. But as you look closer, it actually does make sense. The market is basically a cold calculating machine. It just responds to what's going on. Now, here's where we actually are.

Headline payroll, the growth came in well below expectations and came in with another wave of downward revisions to previous months. As I hope, by the way, at this point, you guys have all come to both hate and expect. And lying beneath the monthly fluctuations, the underlying trend reveals a massive structural gap. The US economy is now, get ready for it, an estimated 9.7 million jobs behind its prior trend line.

This is not a healthy economy.

The Fed looks at the official unemployment rate of around 4.2% and they want to claim it's a healthy economy. They want to tell you everything's great, strong, we're doing good, but that is absolute madness. That number basically masks something that's hiding beneath everything. All the hiring rates have stalled. Workers are simply dropping out of the active labor force and that artificially holds that official unemployment rate down, but that is all fakery. So when you have that metric basically hiding what's really going on, which is that you have a weak labor force, you have a very fragile economy with all kinds of disruptions happening. This leads to a misdiagnosis that basically ends up having knock on effects in their macroeconomic read of the situation. So what the Fed is officially doing is they fear that rising energy costs on top of a supposedly strong labor market is going to trigger a 1970s style wage price inflation spiral. But the reality is that a lot of the read of what happened in the 1970s is wrong and is far more tied to the breaking what Nixon did breaking the dollar peg to gold and far less the disruption in oil, though that is a part of it.