The recession ended and the recovery began in June, 2009. It’s an ugly third birthday for the labor market
More than 7 million U.S. jobs disappeared during the recession. Fewer than 3 million have been added in the recovery. And the rate of job growth has been falling lately; in May, the economy added just 69,000 jobs. That’s not even enough to keep up with population growth.
It’s NOT a recovery, folks. It was going to be tough in any case — balance sheet adjustments always come to be called depressions — but this administration, like Hoover’s, has made things vastly worse.
How? You cannot solve a problem of too much debt by borrowing more. Especially when you pressure banks to fund your debt instead of investment in the productive economy. Guess what? I terminated an enterprise, and four people lost their jobs. Ya think I’m the only one?
It is absolutely and unquestionably a [b][i]SPENDING[/b][/i] problem, and the chief culprit are Democrat Senators who (in direct violation of the law) have not passed a budget in over three years. Consequently the Executive branch spends as — and where — it wishes, so there’s nobody else to blame.
If we were simply to pass the 2005 Budget, and shift $160 Billion from the wars of that era to social security and medicare, the federal budget would be in slight surplus, today. Was 2005 so bad?
The real problem is that the current administration quite plainly wishes to expropriate from future workers in order to pay off their present political friends. Tar and feathers is too good for them.
Adding to what Bart said, I just read this morning that when you consider people who have stopped looking for work and people who are working part time in jobs they are highly over qualifed for (like Home Depot and WalMart clerks) but who are looking for full time work, the real unemployment rate is 15 to 17%, about twice what Obama is telling us. Also as I write this the stock market is down 280 ponits.
“US and European regulators are essentially forcing banks to buy up their own government’s debt—a move that could end up making the debt crisis even worse, a Citigroup analysis says. While that helps governments issue more and more debt, the strategy could ultimately explode if the governments are unable to make the bond payments, leaving the banks with billions of toxic debt, says Citigroup strategist Hans Lorenzen.
” ‘Captive bank demand can buy time and can help keep domestic yields low,’ Lorenzen wrote in an analysis for clients. ‘However, the distortions that build up over time can sow the seeds of an even bigger crisis, if the time bought isn’t used very prudently.’ ” Cox, CNBC
This is finally making it into the old-line media, and (along with 25,000 new regulations since 2009, most of them anti-business) is the main reason the economy sucks and nobody is hiring. It’s why we stopped growing flowers, and four jobs disappeared. Our SUPPLIERS got squeezed by their banks to stop offering the normal trade terms prevailing for two generations and demand COD on all orders. We had enough to do food or flowers: We chose the food. The banks buckled and have been buying federal government debt. Much safer than lending to a business, you know.
Unfortunately, the current administration is using the “time bought” very IMPRUDENTLY. You cannot solve a problem of too much debt by borrowing an additional 1.6 Trillion dollars every year and passing most of that excess borrowing to your political cronies.
We went into this with tons of debt built up through 40 years from LBJ onward. That debt is like an anchor and stimulus only makes it worse. Yet that is all politicians know how to do. Spend to buy votes. Democrats are past masters, but the Republicans do it too.
One word: HopeChangeâ„¢.
Looks like many of us will be hoping for spare change. 🙁
In the Faith,
NW Bob
The US Comptroller of the Currency reports (4th Q 2011) that US commercial banks are holding $231 TRILLION in derivatives. World wide, there are about $1.5 QUADRILLION in derivatives. There’s only about $60 to $70 Trillion in currency globally. The entire world economic fiat currency system is balanced on the head of a pin with Greece and Spain breakdancing the night away.
The Lord detests dishonest scales,
but accurate weights find favor with him.
~ Proverbs 11:1