Showing posts with label recovery. Show all posts
Showing posts with label recovery. Show all posts
The Scam Presidency – The fact of recession versus the illusion of “good times.”
<<<< We need to stop pretending that the shrinking workforce is a temporary reality. It is here to stay, at no fault of anyone. But, failed policies will make its affect far worse than needs be.
For the past several months,
the Fed and Ben Bernake have been printing 40 billion dollars per month
and the stock market is eating this up.
Some argue that this ridiculous amount of printed money is only
replacing the trillions lost in the closing months of 2008 and into early
2009.
Speaking as a sheer layman,
on this matter, I see a
difference between losing money and printing replacement money. I would think that we replace lost income
with more earned income. Call me stupid.
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| Click on image to enlarge |
At any rate, Ben is
busy printing money and Obama is using the “success” of Wall Street” to frame his “successful recovery.” But, we know this “recovery” is only an
illusion, and how do we know this? Because the economy is rocking along at minus
.01 (GDP). A true recovery, at this point in time, should be 3 percent to 6 percent. It ran 8 percent during the Reagan recovery
and the Carter recession was far worse than this one, contrary to popular media wording.
Add to this recovery “illusion,” the fact that “7.8% unemployment,” today,
in 2013 represents 5 million fewer people working than the 7.8% record
at the end of February of 2009.
Understand that the shrinking workforce is not simply a function of failed Obama policy (it includes this, of course). The Boomer generation is beginning to exit the job market and have entered Social Security. Others have declared themselves "handicapped" are officially disabled (no less than 80% are actually disabled and that estimate might be low).
This combination of attrition and failed policy has created a degree of permanency that will extend well into the future - perhaps into perpetuity.
Problem: unless we can figure out how to create more income with fewer workers, out GDP promises to remain at record lows, effecting (killing) the needed recovery. Understand that the Boomers are leaving the workforce at the rate of 10,000 per day, and this reduction/exodus will last for close to 17 years before that rate significantly reduces.
No one in Washington is looking at this particular problem. Government cannot "supply" the millions of jobs, necessary, to turn the economy around. And, no one is talking about what to do with all those American who can work but have no chance of landing a job.
At some point, our need to financially help those without a job and those who are retiring, will [far] exceed the ability to meet these new "obligations."
What to do?
1) start moving out of high risk communities.
2) reduce your debt and monthly payments
3) pay off your cars and home.
4) understand that you are going to be responsible for "you." Make fun of "rugged individualism" all you want; turns out, there is no choice for those who want to have any quality of life after the unavoidable national bust that has positioned itself on our horizon.
Congressional Budget Office talks about 2012 - not good for re-election purposes
Continuing Annual Debt Increase
The CBO set the annual debt for 2012 at 1.1 trillion taking the
average annual debt, under Obama, down to 1.4 trillion (per year). Under
Bush, the previous record holder, average annual debt was $400 billion.
Understand that the four year plan, from this administration, called
for a $600 billion in deficit for 2012 ($800 billion for 2011).
Further, the
CBO sees unemployment at 8% or above through all of 2012. We tend to
forget that under Bush, unemployment averaged 5.5% for the eight year
term including the recession laden 2008 . . . . . . . 4.7% without 2008
numbers. We are in the fifth year of this recessionary period and Obama
continues to act as if his social agenda, moving this country
into an European style form of governance, is more important than dealing
the recession.
Housing prices
have declined in value, during this period (actually since 2006) by
33% and Obama's mortgage rescue plan has failed. Designed to give aid to
7 million troubled homeowners, less than 400,000 were benefited.
And the beat goes on. With latest totals, end of year (2011)
mortgage prices declined another 1.3% according to the S&P / Case Shiller
20 city index. Prices on that index fell in 19 of the 20 cities studied.
Phoenix, Arizona was the lone exception. Chicago,
Atlanta and Detroit are the hardest hit by the mortgage crisis.
Update:
True unemployment: According to the CBO, if we included the same size workforce as two years ago (the Obama Administration has reduced down the size of the workforce), the 8.5% unemployment rate reported for December of 2011 would actually be 10%.
Taxes are scheduled to increase by more than 30% over 2012 and 2013.
GDP (the measure of our economic expansion) will be 2.2% for 2012 (it was 1.7% for the entire of 2011), and just 1.0 % for 2013, the year that ObamaCare rises to full force as a forced law
Update:
True unemployment: According to the CBO, if we included the same size workforce as two years ago (the Obama Administration has reduced down the size of the workforce), the 8.5% unemployment rate reported for December of 2011 would actually be 10%.
Taxes are scheduled to increase by more than 30% over 2012 and 2013.
GDP (the measure of our economic expansion) will be 2.2% for 2012 (it was 1.7% for the entire of 2011), and just 1.0 % for 2013, the year that ObamaCare rises to full force as a forced law
End Notes:
CNN
Business News 1/31/2012
Latest jobs report for May. Remember Bush's WMDs? Well, Obama can't find those jobs as he brags that the recession could have been worse.
Latest job loss report for month of May?
472,000 - up from an expected 450,000 estimate
The monthly average is increasing, as well - to 463,000
a month for the first five months of 2010.
How's THAT for an average?
Recovery? What stinking recovery. Understand that Midknight
Review rejects the notion of a "jobless recovery."
Obama will talk about how bad the "recovery" would have been
without all those trillions of spent dollars. But, of course, that
is not what he promised or predicted, was it ?!
In Febrary, Biden was talking about "spectacular" was the
success of the Stimulus bill and the Administration was
predicting a job loss monthly total of under 400,000, by now.
Undestand that neither Obama or Biden have so much as
managed a donut shop. Maybe if they had, they would be
bragging about how many holes they had sold.
Bankruptcies recordings are up. New home sales are down
Interest rates are at a record 50 year low - good for consumers
but a negative indicator for the economy. The trade deficit is
increasing -- less jobs for American industry.
And, the worse economic news of all:
Obama and Biden are still in office
.
.
472,000 - up from an expected 450,000 estimate
The monthly average is increasing, as well - to 463,000
a month for the first five months of 2010.
How's THAT for an average?
Recovery? What stinking recovery. Understand that Midknight
Review rejects the notion of a "jobless recovery."
Obama will talk about how bad the "recovery" would have been
without all those trillions of spent dollars. But, of course, that
is not what he promised or predicted, was it ?!
In Febrary, Biden was talking about "spectacular" was the
success of the Stimulus bill and the Administration was
predicting a job loss monthly total of under 400,000, by now.
Undestand that neither Obama or Biden have so much as
managed a donut shop. Maybe if they had, they would be
bragging about how many holes they had sold.
Bankruptcies recordings are up. New home sales are down
Interest rates are at a record 50 year low - good for consumers
but a negative indicator for the economy. The trade deficit is
increasing -- less jobs for American industry.
And, the worse economic news of all:
Obama and Biden are still in office
.
.
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