This is not as far fetched as you would think! At some point in the near future no one will lend the Federal government any more money. In 8 full years Bush added 4.9 Trillion to the debt. In 5 years and 8 months Obama added 7.2 Trillion to the national debt. On January 2001 the national debt was only 54.3% of the GDP today it is over 100% and climbing — we have been living on borrowed money since 9/11 and at some point those that have lent the money will want to be paid back!
Tag Archives: Jobs
Obama’s Unemployment Rate Is 5.9% ~ But 5.9% Of What?: 29% Of U.S. Labor Population Out Of Work And Out Of Labor Force!
The following re-post shows the facts and figures of what is happening in our counter as Obama and his appointed minions “Fundamentally Transform” the country into their vision of what it should be. The next result of 6 years of this has been to shift large percentages of the middle class out of the work force and its worse than what is presented here as the BLS reports do not count self employed or military jobs both of which tend to the higher side in the middle class.
The bottom line is that there are fewer and fewer jobs in the middle class which as this post suggests those people have either gone on welfare or taken early retirement. That means that few and fewer “workers” that pay taxes are going to be forced to take care of more and more people that are not working.Using BLS figures, as of last month, only 46.0% of the population of the united states was holding a job. 6 years ago that was 48.5% of the population which means that we are short at least 8.0 million jobs right now.
Fast food protesters to be hit with massive job losses when Obama grants amnesty in November
As most any competent economist will tell you minimum wages do nothing for the beginning or low end workers. If yo raise the $8 worker to $15 then all those between $8 and $15 will demand increases and those from $15 to where every (especially with union contracts) will also what a raise. The bottom line is within a few years the purchasing power of $15 will be the same as it was before at $8 so there is no gain. Also with cheaper and cheaper tech the cost benefit from automation gets better and better The current order takers only push buttons and make change. Flip the terminals around and let the customers enter there own orders. How many stores today have self checkout lanes so the concept is not new and at some pay level that is what will happen.
De-Dollarization Continues: China-Argentina Agree Currency Swap, Will Trade In Yuan
Re-Posted from ZEROHEDGE
Submitted by Tyler Durden on 09/07/2014 17:58 -0400
It appears there is another nation on planet Earth that is becoming isolated. One by one, Russia and China appear to be finding allies willing to ‘de-dollarize’; and the latest to join this trend is serial-defaulter Argentina. As Reuters reports, China and Argentina’s central banks have agreed a multi-billion dollar currency swap operation “to bolster Argentina’s foreign reserves” or “pay for Chinese imports with Yuan,” as Argentina’s USD reserves dwindle. In addition, Argentina claims China supports the nation’s plans in the defaulted bondholder dispute.
Having met ‘on the sidelines’ in Basel, Switzerland in July, Argentine and Chinese central banks agreed to a currency swap equivalent to $11b that Cabinet Chief Jorge Capitanich said could be used to stabilize reserves.. (as Reuters reports)
Argentina, which defaulted on its debt in July, will receive the first tranche of a multi-billion dollar currency swap operation with China’s central bank before the end of this year, the South American country’s La Nacion newspaper reported on Sunday.The swap will allow Argentina to bolster its foreign reserves or pay for Chinese imports with the yuan currency at a time weak export revenues and an ailing currency have put the Latin American nation’s foreign reserves under intense pressure.
La Nacion said Argentina would receive yuan worth $1 billion by the end of 2014, the first payment of a loan worth a total $11 billion signed by Argentina’s President Cristina Fernandez and her Chinese counterpart in July.
In addition, Bloomberg reports
People’s Bank of China Governor Zhou Xiaochuan expressed his support for Argentina in its legal fight against holdout bondholders
Labor Participation Rate Drops To Lowest Since 1978; People Not In Labor Force Rise To Record 92.3 Million
Re-Post from ZEROHEDGE
Submitted by Tyler Durden on 09/05/2014 09:03 -0400
It is almost as if the Fed warned us this would happen. In a note released yesterday, a Fed working paper titled “Labor Force Participation: Recent Developments and Future Prospects“, looked at the US labor force and concluded that “while we see some of the current low level of the participation rate as indicative of labor market slack, we do not expect the participation rate to show a substantial increase from current levels as labor market conditions continue to improve.” But don’t blame it on the greatest recession/depression since 1929: “our overall assessment is that much – but not all – of the decline in the labor force participation rate since 2007 is structural in nature.”
Well that’s very odd, because it was only two months ago that the Census wrote the following: “Many older workers managed to stay employed during the recession; in fact, the population in age groups 65 and over were the only ones not to see a decline in the employment share from 2005 to 2010 (Figure 3-25)… Remaining employed and delaying retirement was one way of lessening the impact of the stock market decline and subsequent loss in retirement savings.”
So yeah… sounds like most of the decline in the participation rate is not structural in nature and is merely a response to what everyone but the 1% sees as the biggest – and ongoing – economic devastation perhaps in history, papered over conveniently for the 1% with trillions in liquidity injections.
In any event, no matter how you spin it, today’s data was bad: because not only did the headline data disappoint, the labor force participation rate dropped once again to 62.8% from 62.9%, matching the lowest since 1978, as a result of the people not in labor force rising once again, and hitting a new all time high record of 92,269,000, up 268,000 from the prior month. In fact, in August the number of people not in the labor force increased by nearly double the number of people who found jobs, which as we reported previously, was only 142K.
Putting it another way, since the start of the depression in December 2007, the number of people not in the labor force has increased by 13.0 million. The number of jobs added: 768,000.
Average:
LEADING KEYNESIAN ECONOMIST USES THE ‘D’ WORD
These numbers are real I track them every month and the “D” word is coming and soon.
This Unprecedented Monetary Experiment Will End Very Badly
As both a trained economist and engineer I can see that This is 100% true. the difference between most engineering is time frames engineering issue work in very short time frames like a car is good for between 100,000 and 150,000 miles before repairs start become an issue. In economics these things can take several generations to work out so the politicians can fool you for a relatively long time before it all falls apart.
16 million Americans have dropped out of the labor force in the last 10 years
And with fewer (percentage wise) people working others have to work harder to make up the difference!
The debate is work for you stuff or get free stuff from the government nt
Charles Koch: How to Get Our Economy Moving Again
If there is anyone in the world who knows how to create wealth and generate good, high-paying jobs, it is Charles Koch. In USA Today, Koch sets out a basic prescription for how to improve our economy, accompanied by some eye-popping statistics:
Like most Americans, I am deeply concerned about our weak economic recovery and its effects on millions of families. Opportunity, especially for the young and disadvantaged, is declining. High underemployment has become our new norm. …
Too many businesses focus on getting subsidies and mandates from government rather than creating value for customers. According to George Mason University’s Mercatus Center, such favors cost us more than $11,000 per person in lost GDP every year, a $3.6 trillion economic hit.
That is astonishing. Everyone knows (unless he is a liberal economist like Paul Krugman) that cronyism promotes inefficiency. But the magnitude of the problem is stunning: if the Mercatus Center analysis is correct, cronyism is deflating the economy by around 21%! Imagine if every American got a 21% raise: that is only a small part of what free market economic policies could accomplish, if they were not blocked by the Democratic Party. Then, of course, we have the problem of excessive government regulation:
Federal rules cost America an estimated $1.86 trillion per year, calculated the Competitive Enterprise Institute. At Koch Industries, we’ve seen how punitive permitting for large projects creates years of delay, increasing uncertainty and cost. Sometimes projects are canceled and jobs with them. Meanwhile, 30% of U.S. employees need government licenses to work. We need a system that rewards those who create real value, not impedes them.
The main thing standing between you and a higher income, assuming you own an alarm clock, is the government. More:
[W]e should eliminate the artificial cost of hiring. Government policies such as Obamacare have given businesses a powerful incentive to hire two part-time people to do one full-time job. This trend was reflected in June’s employment data, which included the loss of half a million full-time jobs. In 2007, 4.4 million Americans worked part-time jobs because they could not find full-time work. That number now stands at 7.5 million, up 275,000 in June.
The Obama administration hailed the June employment data as a triumph, even though the number of full-time jobs declined by a half million. They want you and your children to accept a “new normal” in which part-time employment as a barista is a reasonable expectation for a college graduate.
Government likes for its citizens to be lazy, incompetent and dependent. That’s bad for the citizens, but good for the government:
Finally, we need greater incentives to work. Costly programs, such as paying able-bodied people not to work, are addictive disincentives. By undermining people’s will to work, our government has created a culture of dependency and hopelessness.
Government control over the economy, promotion of dependence and cronyism have been tried. They have failed. It is time for something different:
Our government’s decades-long, top-down approach to job creation has failed. Its policies have made our problems worse, leaving tens of millions chronically un- or underemployed, millions of whom have given up ever finding meaningful work. In doing so, our government has not only thwarted real job creation, it also has reduced the supply and quality of goods and services that make people’s lives better and undermined the culture required to sustain a free society.
When it comes to creating opportunities for all, we can do much better. It’s time to let people seek opportunities that best suit their talents, for businesses to forsake cronyism and for government to get out of the way.
A friend who knows Charles Koch well describes him as a genius. I can believe it: creating tens of billions of dollars in wealth and tens of thousands of productive, high-paying jobs probably does require a touch of genius. But when it comes to politics and the economy, what Charles Koch has to say is just common sense.
Russia And India Begin Negotations To Use National Currencies In Settlements, Bypassing Dollar
If Russia and India do this its really bad for us! Obama’s sanctions will backfire on him as he is now playing to the major league and he is only a minor league player!
Re-Post from Zero Hedge Submitted by Tyler Durden on 07/31/2014 11:44 -0400
Over the past 6 months, there has been much talk about the strategic proximity between Russia and China, made even more proximal following the “holy grail” gas deal announced in May which would not have happened on such an accelerated time frame had it not been for US escalation in Ukraine.
And yet little has been said about that other just as crucial for the “new BRIC-centric world order” relationship, that between Russia and India. That is about to change when yesterday the Russian central bank announced that having been increasingly shunned by the west, Russia discussed cooperation with Reserve Bank of India Executive Director Shrikant Padmanabhan. The punchline: India agreed to create a task group to work out a mechanism for using national currencies in settlements. And so another major bilateral arrangement is set up that completely bypasses the dollar.
From the Russian Central Bank:
First Deputy Chairman of the Central Bank of the Russian Federation KV Yudaeva and Executive Director of the Reserve Bank of India G. Padmanabhan at the twentieth meeting of the Subgroup on banking and financial issues of the Russian-Indian intergovernmental commission on trade-economic, scientific-technical and cultural cooperation discussed the current state and prospects of cooperation between banks.
The meeting was attended by representatives of central banks, ministries and agencies, credit organizations in Russia and India.
During the meeting dealt with the problems faced by the branches and subsidiaries of banks in the two countries and ways of addressing these problems.
As a priority area discussed the use of national currencies in mutual settlements. Given the urgency of the issue and the interest of commercial structures of the two countries, the meeting decided to establish a working group to develop a mechanism for the use of national currencies in mutual settlements. It will consist of representatives of banks and, if necessary, the ministries and departments of the two countries to coordinate its activities will be central banks of Russia and India.
What is curious is that now that China has sided firmly with Russia when it comes to geopolitical strategy (not least when it comes to recent development surrounding the downing of flight MH-17, recall “China Blasts “One-Sided Western Rush To Judge Russia” Over MH17″), and thus Russia behind China when it comes to claims by the world’s most populous nation in its territorial dispute with Japan, Japan too is scrambling to secure a major ally in Asia, and it too is trying desperately to get on India’s good side.
Bloomberg reports that “Japan’s Sasebo naval base this month saw unusual variety in vessel traffic that’s typically dominated by Japanese and U.S. warships. An Indian frigate and destroyer docked en route to joint exercises in the western Pacific.”
The INS Shivalik and INS Ranvijay’s appearance at the port near Nagasaki showed Japan’s interest in developing ties with the South Asian nation as Prime Minister Shinzo Abe’s government faces deepening tensions with China. Japan for the third time joined the U.S. and India in the annual “Malabar” drills that usually are held in the Bay of Bengal.
With Abe loosening limits on his nation’s military, the exercises that conclude today showcase Japan’s expanding naval profile as China pushes maritime claims in disputed areas of the East and South China Seas. For newly installed Indian Prime Minister Narendra Modi, Japan’s attention adds to that of China itself, in an opportunity to expand his own country’s sway.
Japan’s involvement in Malabar underscores its interest in helping secure its trade routes to Europe and the Middle East. The Indian Ocean is “arguably the world’s most important trading crossroads,” according to the Henry L. Stimson Center, a foreign policy research group in Washington. It carries about 80 percent of the world’s seaborne oil, mostly headed to China and Japan.
“The Japanese are facing huge political problems in China,” said Kondapalli in a phone interview. “So Japanese companies are now looking to shift to other countries. They’re looking at India.”
So on one hand Japan is rushing to extend a much needed olive branch by the “insolvent western alliance + Japan” to India; on the other Russia is preparing to transact bilterally with India in a way that bypasses the dollar.
Which means that just as Germany has become the fulcrum and most strategic veriable in Europe (more on this shortly) whose future allegiance to Russia or the US may determine the fate of Europe, so suddenly India is now the great Asian wildcard.
Perhaps a very important hint of which way India is headed came moments ago from Reuters, which said that India has raised the issue of U.S. surveillance activities in the South Asian nation with Secretary of State John Kerry, the foreign minister said on Thursday. “Yes, I raised this issue (U.S. snooping) with Secretary John Kerry … I have also conveyed to him that this act on the part of U.S. authorities is completely unacceptable to us,” Sushma Swaraj said at a joint news conference in New Delhi. In response, Kerry said: “We (the United States) fully respect and understand the feelings expressed by the minister.”
Thank you Snowden for helping move the geopolitical tectonic plates that much faster.
Now let the real courting begin.
Centinel2012 