Saturday, June 5, 2010

Heading For Double Dip Recession

Former Labor Secretary Gets It Right

I don’t recall ever agreeing with former Clinton Labor Secretary Robert B. Reich before, if I did I’m sure it was a pretty cold day in hell.

But Reich got it exactly right on Friday when he spoke with Money News about the risk of the United States going into a double-dip recession:

“The only reason the economy isn't in a double-dip recession already is because of three temporary boosts: the federal stimulus (of which 75 percent has been spent), near-zero interest rates (which can't continue much longer without igniting speculative bubbles), and replacements (consumers have had to replace worn-out cars and appliances, and businesses had to replace worn-down inventories).” 

“Oh, and, yes, all those Census workers (who will be out on their ears in a month or so).”

As we now know, the Federal Government has been manipulating the unemployment figures by firing and re-hiring Census workers.  In April for example, the Census fired and re-hired more than 400,000 workers, seemingly “boosting” employment and driving the unemployment rate down to 9.7%.

But wait, the Private Sector, the true jobs engine that pays the taxes in this Country, created only 41,000 jobs.   In reality, the Private Sector needs to create at a minimum 100,000 jobs a month just to keep up with population growth.

As Government “supports” such as those “shovel ready” jobs paid for with taxpayer dollars borrowed from China to create make-shift work for U.S. Citizens comes to an end along with subsidies for housing, cars, green energy appliances and the like the economy will assuredly dip back into recession. 

Why is this?  First, Consumers make up more than 70% of all economic activity in this country.  For several years, they were hunkered down focused on paying down on their debt.  They could only go so long without replacing cars and other long term durable goods so the “blip” we’ve seen in manufacturing and consumers returning to spending has really been about manufacturers and stores simply replenishing depleted inventories to minimum levels.  The Consumer is not “back” to drive the economic recovery.

Second, a weak demand for labor continues to drive up the average length of unemployment in this country, that is, the time it takes for a laid off worker to find a new job.  As in past months, the average length of unemployment has hit yet another new high of 39 weeks according to the Bureau of Labor and Statistics.

Finally there’s the 600,000+ Census workers that the Federal Government hired in temporary positions but reported as “employed” that will once again hit the unemployment rolls just in time to drive the unemployment rate over 10% in the fall – right before the mid-term elections.

We all know that a growing unemployment rate, weak consumer confidence and a weaker economy spells doom for the Democrats come November.


Daddy, Did You Plug The Hole Yet?

I’ve lost track of the number of days we’ve had oil leaking in the Gulf at this point.  It’s day forty-something as best I know and we still have thousands of barrels of oil leaking into the Gulf of Mexico with no end in sight.

I simply wanted to remind you that Obama said he was in charge “since day one” according to his speech last week at the White House, so consequently he’s responsible for all the delays in plugging that “damn hole” and all the dead wildlife we’ve seen wash up on the beaches since this whole mess started.

Now ask yourself just who’s to blame for this oil leak?  Is it BP?  The White House?  Minerals Mining Service and their lack of oversight for the Deepwater Horizon Project?

How about President Bush?

The answer: None of the above.  We have the Environmentalist Whacko’s that infest our society and our Government to thank for this.  These are the same people that won’t let us drill anywhere else but a mile underwater in the ocean where we cannot plug a damn’ leak that’s causing all this mess.  If this had happened on land, the leak would’ve been plugged day one or day two at the latest.  Even in shallow water this would’ve been plugged a long time ago.

The fact is these Environmental whacko’s want us all to live naked in caves without heat, electricity or fire to keep us warm to save “Mother Earth.”

Well you bastards have created this situation where the only place America can drill for oil is a mile under the ocean surface so you’re responsible for this mess.  Now take your mother earth and cram her up your asses.

Live WebCam Feeds From Oil Spill Site

Thank You Environmentalists, For Causing This Mess!


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