* It is the first Friday of the month, and that means that this morning we got the September Non-Farm Payroll number

* Anyone who has listened to my podcasts and video blogs knows that for months I have criticized these so-called strong jobs reports

* I think what's going on is a transformation of the economy from full-time jobs to part-time jobs and that necessitates creating more jobs that you destroy, but the real story is beneath the surface

* The report we got today was one of the weakest reports relative to expectations than we've had in years

* This may be the final missing piece to the economic puzzle that shows that the economy is not as strong as everybody, including the Fed pretends it to be

* And that the rate hikes expected to be around the corner are a distant blur on the horizon

* Soon more will join me in recognizing the more QE is coming

* Of course QE is not medicine; it is toxic

* Let's get down to the tale of the tape with the jobs numbers

* First, the bigger number is the August number, which was expected to be revised up, was revised down to 136,000 jobs

* July was also revised down

* The September number was expected to be 203,000 and actually came in at 142,000

* This is an average of 163,000 jobs for the last 3 months

* Six of the last 8 jobs numbers have been revised downward

* The August labor force participation rate was 62.6, which was the lowest of the "recovery"

* The September rate dropped another .2 to 62.4, which is the lowest since 1977

* Another 579,000 left the labor force in September - now there are 94.6 million Americans not working

* Average hourly earnings, expected to rise .2, remained flat

* In fact, the average work week declined from 34.6 to 34.5

* If you remember, what has Janet Yellen stated as a requirement for a Fed rate hike? - An improvement in the labor market.

* The labor market was singled out as a reason why rates remained at zero in September

* While others speculated that rates might hike in October or December, I said the labor market is not going to improve, so the Fed will not raise rates

* Janet Yellen is looking at labor force participation, which has declined to a new low

* Yellen is also looking for an improvement in wages - that is going the other way

* If you also look at the details of this jobs report, you'll see that jobs created are low-paying jobs and jobs lost are higher-paying jobs

* For example, we lost jobs in wholesale trade, manufacturing and logging - those are good-paying blue collar jobs

* We gained jobs in leisure and hospitality, education and healthcare, retail trade - and a lot of these jobs are temporary or part time

* This is why there is not real recovery, why people can't save or buy houses

* This weak jobs number is another excuse for the Fed not to raise rates

* Some are pointing to this jobs number as proof of the Fed's wisdom in not raising rates in September

* However, Yellen stated that rates would go up if the economy continues to improve as the Fed expects - but the economy is getting worse

* I've always said that the Fed does not want to raise rates because it does not want to look foolish if it has to back down from a rate hike

* We got more economic data today: factory orders wer down 1.7% worse than the expected number of -1.3%

* Also, last month's number was revised down, making this the tenth month in a row that factory orders have been down, year over year

* This only happens in a recession

* Maybe we are in a recession

* We don't have Q3 GDP numbers yet, but yesterday the Atlanta Fed reduced its Q3 estimate to .9

* The consensus on Wall Street and at the Fed is still 2.5

* I think that given this jobs number,

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