Posts Tagged ‘economy’
Barack Obama campaigned four years ago assailing President George W. Bush for wage losses suffered by the middle class. More than three years into Obama’s own presidency, those declines have only deepened.
The rebound from the worst recession since the 1930s has generated relatively few of the moderately skilled jobs that once supported the middle class, tightening the financial squeeze on many Americans, even those who are employed.
“It started long before Obama, but he hasn’t done anything,” said John Forsyth, 58, a railroad-car inspector and political independent from Lebanon, Ohio. “He kept pushing this change, change, change, and he hasn’t done anything.”
Underlying the erosion of the middle class, defined by some economists as the middle 60 percent of income earners, are trends that stretch back decades, including competition from lower-wage workers overseas and technological advances that allow factories and offices to produce more with less labor.
Read more By Mike Dorning at Bloomberg.com from 2012.
Call it the million-worker mystery.
A large chunk of American adults are no longer in the labor force. That has left economists divided over how many of them are voluntarily not working-or even looking for work-because they wanted to retire, go to school or take care of family members, versus how many have been forced out because they couldn’t find a job.
Read more by Allison Linn at CNBC.com
Employment: December’s disappointing job numbers came in below expectations, again dampening hopes for sustained economic growth. But the latest data just scratch the surface of Obama’s dismal failure on jobs.
The number of jobs created in December was the lowest in three years, and while the official unemployment number dropped to 6.7%, that was almost entirely due to more than half a million people giving up looking for work.
Of course, a month of data doesn’t mean much.
So, for some badly needed perspective, we’ve created Obama’s Jobs Index to show how Obama’s policies have failed to create adequate job growth. . . .
Read more at Investor’s Business Daily
Americans still seem willing to give a pass to the disaster in the White House.
Let me begin with a categorical statement that, given current events and recent political history, can be easily defended: Barack Hussein Obama is a willful, indoctrinated child of the Left with strong Islamic sympathies who is not fit to govern. Indeed, he would not be fit to govern Lower Slobovia, let alone the United States of America. Obama is a historic disaster of the first magnitude and, if not restrained, he will see to the irrevocable decline of the country which foolishly elected him, leaving the world on the brink of a conflict — or in the midst of one — whose repercussions cannot be underestimated.
Accompanying the undeniable havoc and damage that Obama is wreaking on his country and equally on its allies — Honduras, Saudi Arabia, Egypt, Poland, Czech Republic, Israel, and possibly Taiwan — is the sense of helplessness that overcomes one when writing or speaking about a rogue president and his destructive administration.
Read more by David Solway at PJmedia.com
Just before the Thanksgiving holiday, the Federal Deposit Insurance Corporation released financial data for all federally insured banks as of the end of the third quarter of 2013. The Quarterly Banking Profile, which is an important publication that provides a comprehensive summary of financial results for all FDIC-insured institutions, was also released. The “Quarterly,” as it is known in banking circles, is essential reading for analysts who follow the US economy.
The FDIC data confirms that the Fed’s policy of “quantitative easing” or QE is rapidly becoming a net negative for job growth, consumer income and the US economy overall. The data also suggests very strongly that QE is hurting, rather than helping, the US housing sector and the financial institutions that make mortgage loans. None of this is good for the US economic outlook.
–SNIP–In order to maintain the net interest margin for banks at +/- $100 billion per quarter, the Fed is robbing US savers, including companies, investors and the elderly, of almost the same amount each quarter in badly needed income.
Read more by Christopher Whalen at Breitbart.com
Is America Really a Superpower If It Can’t Even Produce The Lead For Its Own Bullets? — The Mess of the Doe Run Lead Smelter
The systematic dismantling of America from within its own walls continues. In one case of many, this one falls under crippling and shutting down critical industry via environmental regulation.
Read more at glblgeopolitics.wordpress.com
Confessions of a Quantitative Easer
We went on a bond-buying spree that was supposed to help Main Street. Instead, it was a feast for Wall Street.
–SNIP– Where are we today? The Fed keeps buying roughly $85 billion in bonds a month, chronically delaying so much as a minor QE taper. Over five years, its bond purchases have come to more than $4 trillion. Amazingly, in a supposedly free-market nation, QE has become the largest financial-markets intervention by any government in world history.
And the impact? Even by the Fed’s sunniest calculations, aggressive QE over five years has generated only a few percentage points of U.S. growth. By contrast, experts outside the Fed, such as Mohammed El Erian at the Pimco investment firm, suggest that the Fed may have created and spent over $4 trillion for a total return of as little as 0.25% of GDP (i.e., a mere $40 billion bump in U.S. economic output). Both of those estimates indicate that QE isn’t really working.
Read more by Andrew Huszar at WSJ.com
Just more ink-and-paper tickets being created.
We all keep hearing how minimum wage is never enough and prices keep going up. Why? Devalued money is why. Our dollar is based on debt not actual value. Remember when a dime was a dime’s worth of silver? Me either I wasn’t born yet. We just grew up with this federal reserve fiat money. What value the government gives government can take away. The more you print with no value to back it up the less it’s worth. That means it takes more to buy the same product than it used to. Thomas Jefferson warned us of this :
“I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” — Thomas Jefferson — The Debate Over The Recharter Of The Bank Bill, (1809)
Here’s a cool US Inflation Calculator. See for yourself
From Conservatarian Times
Recent comments by the head of the Bank of England, the U.K.’s powerful central bank, offered further evidence that Western central bankers are preparing to shower even greater quantities of fiat currency on private banks and financial institutions — all at public expense. Already, tens of trillions of dollars’ worth of debt-based currency has been created out of thin air by the Federal Reserve, the BoE, the European Central Bank, and other central banks to prop up private mega-banks and wild spending sprees by government amid the economic crisis. With help and guidance from the BoE’s new governor, Mark Carney, analysts say all of that appears set to accelerate.
Read more by Alex Newman at TheNewAmerican.com
The Obama administration has performed the unique trick of alienating the majority of our most important allies, while at the same time causing America to be viewed as a patsy by its enemies.
The situation is bound to get worse now that the administration has taken the position that most financial institutions outside the United States are conspiring to help Americans and others avoid U.S. taxes and, thus, is attempting to require all of these foreign financial institutions to report to — and, in effect, become agents of — the Internal Revenue Service.
A global revolt is brewing against the United States for being an international financial bully. The consequences of this revolt are likely to be extremely damaging and long-lasting to the nation.
Read more by Richard Rahn at ToThePointNews.com
If you live in a middle-class household, you generally expect your needs to be met through the marketplace. You buy or rent housing in the real estate market. When you aren’t driving your own car, you catch a taxicab or maybe even hire a limo. You or your employer buy health insurance, and you choose your doctor in the medical marketplace.
For most poor families, the experience is very different. Regulations designed to protect entrenched special interests have succeeded in raising the costs of basic services so much that low-income families have been priced out of the market for many essential services. Middle-class and poor communities differ not just by income. For the middle class, basic needs are met by markets and they benefit from the customer-pleasing innovations that competition produces. All too often, the poor must turn to public programs with all of the customer-pleasing attributes of the Department of Motor Vehicles.
Take housing, for example. The cheapest form of housing is small, prefabricated homes for zero-lot developments. However, zoning regulations in most cities outlaw them — an act that effectively doubles the price of the cheapest housing. There are also other expensive restrictions on new housing, such as forcing builders to build on bigger lots and mandating specific types of materials and construction methods. Regulations vary widely across the United States. In Houston, a less restrictive city, regulatory costs add about $13,200 to the price of an average home. In San Diego, a multitude of regulations add $240,000. These cost-increasing regulations have essentially priced many low-income residents out of the market for a private home, forcing them to turn to public housing instead.
Then there is transportation . . .
Read more by John Goodman from Oct 22, 2011 at Townhall