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The Other Reason The Fed Is Terrified Of A Government Shut Down
Zero Hedge
by Tyler Durden on 09/24/2013
While some have argued that the Fed is flying blind, given their endless efforts to convince the market that their actions (or inactions) are now all data-dependent – what happens when that data simply does not exist? As SMRA notes, the official word from the BLS is that they are working under the assumption that there will not be a government shutdown and the employment data will be released as scheduled; but what happens if the un-negotiation reaches beyond October 1st? How will our central-planners know what to do?
Via Ray Stone of Stone McCarthy,
The official word from the BLS is that they are working under the assumption that there will not be a government shutdown and the employment data will be released as scheduled.
That said, the Bureau does recognize that there is a risk of a shutdown and such could have implications for the timing of the Employment Situation release, and possibly other releases depending on the duration of the shutdown.
If there is a shutdown, the BLS won’t be able to tell us when the employment data, and other key economic reports will be released until after the shutdown ends.
If the Federal Government shuts down on October 1 some BLS employees will report to the office to provide for an orderly shutdown. No new work will occur, but computers will be shutdown to prevent problems. Those workers that worked from home or in the field will be forced to turn in laptops, and BLS provided cell phones.
A shutdown will interfere with the processing of the employment data, and depending on the duration could very well lead to a delay in the release.
Specifically, the prospective October 1 shutdown would be the Tuesday of the week in which the employment release is scheduled. Most of the work on the Household survey (unemployment rate, etc) should be completed by this time. But, as of Tuesday there will be much to be done to prepare the establishment (payroll data).
Considering how rigged their numbers constantly are, whether they ‘work’ or not is moot point. What I find interesting is not one person has mentioned the fact that one out of three people who still have jobs, work for the government in some capacity or another. So shut down the government, and you free the rest of Americans; and this removes the possibility of the ptb using them against the public.