Category Archives: The Economy

The Next 5 Things: #2 The Employees Free Choice Act

As I’ve been writing for several months, our way of life, our freedom, our liberty and the America that we all love is under attack from the Socialist Left. They are led by President Obama, a Harvard educated community organizer who grew up in the rough and tumble world of Chicago politics. As we have discussed previously, he has a plan and he built a team around him to execute it. He is counting on your passive – “that can’t happen in America attitude” to provide a window of opportunity for him to “Fundamentally transform America!”

Remember – his team is mostly the Czars who work inside the Executive Branch of the Government and are only accountable to the President – no congressional/judicial oversight or approval- and sure as hell – no transparency!

The President likes to discuss policies in general terms describing how the administration might interpret and administer proposed programs. All the while deftly avoiding discussion of the contents of the bills which might become law. Think back – tax cuts for 95% of Americans, transparency and the veto pen to stop pork barrel spending policies, all of which have or are changing because “the situation changed”. As a result we must be vigilant because healthcare reform is not the only game changing bill on the table. Keeping up with these guys is like playing 3 card monte with a street hustler. Don’t be distracted by one hand because the other is up to something too.

Remember the administration is following the community organizer’s handbook. This is why there is such a rush to pass all this legislation. The plan – overwhelm the system because they are betting we can’t organize fast enough to stop everything.

So here is part 2 of a 5 part series on the Socialist Left’s agenda to “transform” the American Way of Life. These items are the building blocks for a national shift to socialism. This agenda must be stopped – our freedom and liberty depend on it.

In part 1 of the series we covered the plan to reintroduce Immigration Reform. In part 2 we will discuss The Employees Free Choice Act or Card Check.

The Employee Free Choice Act, or “card check,” has been introduced in the past three Congresses, but it always failed to win the 60 votes needed to pass the controversial legislation in the Senate.

The proposed law gives workers a choice of forming a union through majority sign-up (“card check”) or an election by secret ballot. Critics warn that this will lead to employee intimidation to sign cards and will deny individuals the right to a secret ballot. The secret ballot has been the safety valve in the organizing process. Employees could go along with process to allow a vote by signing the organizing petition but had they always had the safety of the secret ballot to protect their individual vote. As a manufacturing manager for 30 years I have had a front row seat to union organizing efforts twice. In both cases, employees were under tremendous peer pressure to sign the petition. However, both times the union was defeated by the secret ballot. It seems like the process worked as it was supposed to each time.

Supporters say the legislation will improve wages, benefits, and working conditions by helping workers form unions. However, employers say that “card check” will kill jobs because small to medium size companies will not be able to afford unionized shops and in many cases the incremental costs will drive them out of business.

“Voting is the most precious right of every citizen, and we have a moral obligation to ensure the integrity of our voting process.” – Hillary Clinton

Shouldn’t this apply towards something as important as a union election too? After all the signing the card means that you want to hear more. After both sides present their case you go cast your vote in private.

So why do we need this law? First, it will help the unions get easier victories and build their dwindling membership. Oh, yeah and the labor unions strongly support the Democrats. Can you say UAW and SEIU? This is as much about politics as it is about employee’s rights.

There is one more aspect to the bill that is equally as troubling as the secret ballot issue. That is the method by which negotiations would be handled under the bill. If the employer and the union did not reach a deal in 120 days, a government arbitration panel could intervene and take over the negotiations.

For many, the government arbitration clause looks to be a deal breaker. As long as that provision is in the bill Sen. Orrin Hatch of Utah says, “I don’t know how anybody can talk compromise.” He added, “If it wasn’t for the political power of the national unions, this wouldn’t have a chance. But they are powerful.”

A new development that makes this bill even more dangerous is the recently negotiated exemption from the proposed 5.25% luxury tax that will apply to “Cadillac health plans”. Under the terms of the agreement, “Cadillac health plans” that are negotiated through a collective bargaining agreement are exempt. This could turn into another tool for union organizers to use to entice new members.

Ironically, during the 2008 elections anti card check ads featured the leading liberal of his time – former S.D. Sen. George McGovern as their spokesman.

Even George could not get behind elimination of the secret ballot to protect the privacy of each employee. We must fight this legislation. With unemployment already tracking at over 10% nationally, we can not afford to lose more jobs. This legislation is bad for business, it is un-American and since when are we against a secret ballot? Write your Senator and tell them –just say no!

Unfortunately, Congress is currently littered with a variety of proposed legislation that supports the administration’s social reengineering agenda. Write your representatives and tell them we are not interested in an American makeover or living in a socialist nanny state. We must send them a clear message that these bills must not pass. We must be vigilant in identifying these bills and fighting them. After all, the only thing at stake is the American Dream!

Restore the Republic, Reject Socialism!

“Sometimes I wonder whether the world is being run by smart people who are putting us on, or by imbeciles who really mean it.” – Mark Twain

The Geography of a Recession

Watch this video which provides a time elapsed county by county update to the advancing unemployment. It is both unsettling and confirming. America is being fundamentally transformed right before our eyes.

or you can watch it here:

http://cohort11.americanobserver.net/latoyaegwuekwe/multimediafinal.html

We are in trouble and the administration is not addressing the real issue – UNEMPLOYMENT! No more phony stimulus plans – we need tax cuts and the government to get out of the way.

In the week ending Dec. 12, the advance figure for seasonally adjusted initial claims was 480,000, an increase of 7,000 from the previous week’s revised figure of 473,000. Insured unemployment during the week ending Dec. 5 was 5,186,000, an increase of 5,000 from the preceding week’s revised level of 5,181,000.

Currently, there are 38,093,394 Americans on food stamps. With 15,407,486 Americans “officially unemployed” and 26,486,807 actually unemployed; stimulating job creation should be the primary focus of Congress. However, their role is only to create tax breaks that reward investment the markets will do the rest. The only reason business owners are not investing is because of the government’s over involvement in the market. The government has created fear with talk of Cap & Trade, Healthcare Reform and tax increases so everyone has taken a wait and see attitude.

Wake up America – we can not survive this level of unemployment for long. It will bring another collapse. A jobless recovery is not a recovery. We can not afford anymore wasteful spending or pork barrel politics.

Restore the Republic, Reject the Agenda of the Democrats!

Obama Under Fire… Matthews & Rasmussen

The President’s numbers are tanking again. He is making such a mess of things that he has lost ground in almost every major area. Things are so bad that even MSNBC’s Chris Matthews a normally staunch supporter of President Obama recently referred to him as “Carteresque”.

Here is a transcript from the that show:

CHRIS MATTHEWS, HOST: Welcome back. The word these days is optics, visuals, signals. In the Carter presidency, the optics were not exactly robust, and Ronald Reagan rode that to a big victory in 1980. Is the Obama White House sending some Carteresque signals these days? Some see that in the deep bow to the Emperor of Japan, an unforced error say critics. Then there was, there was what happened in China: Obama got nothing in the way of concessions over there in spite of playing the polite visitor. And his effort to speak directly to the Chinese was jammed by the government. Third, that decision to try the terrorists up in that federal court in New York City. Again, nothing that had to be done, and critics say it shows that Obama, his team doesn’t understand this is a war we’re in. David, that’s the question. These optics are everything in a president. Carter used to carry that garment bag over his shoulder. This president is he making mistakes like in China like in Japan? 

DAVID IGNATIUS, WASHINGTON POST : I think he is coming across as stiff. He is talking too much sometimes and communicating too little. So the opposite of what we saw during the campaign. Although the decision to try Khalid Sheikh Mohammed in New York apparently was Eric Holder’s, it strikes me that it really is a mistake. I mean, there are too many bad things that could happen. There is no reason to have to have done this. And, you know, it’s a political feel for decision-making. That wonderful thing you just did about President Johnson’s feel for the moment. That’s what I think is missing now with this group in the White House. I don’t know where it’s gone. They certainly had it during the campaign. Maybe they’ll get it back. But it’s missing now.

MATTHEWS: It’s the political touch. You were in China. You just got back. Tell me about that. The president tried to speak to the Chinese people and apparently it was jammed. Tell me about that.

ANNE KORNBLUT, WASHINGTON POST: This was the big moment of the whole trip to Asia in fact, eight days in Asia he was going to speak to Chinese students in Shanghai unfiltered at least in his answers, and in fact the Chinese government, you know, they allowed the event to take place, but it was only shown locally on Shanghai television. People didn’t see it. The one piece of news he made in it saying that the internet should be free and people should have access dribbled out to the Chinese public and then started being deleted from all the Chinese websites. So, then, the following day he held a quote unquote press conference with the Chinese President Hu Jintao in which there were no questions and they read statements. Now, this is of course, this is the Chinese, it’s their home turf. They were allowed to do what they wanted to. That was the White House’s argument. And the White House haggled with them to get it more open. 

MATTHEWS: The White House got jammed here.

The once untouchable president is beginning to struggle with the public’s growing discontent with his policies and job performance. This administration has demonstrated an ongoing attitude of superiority and an apparent disregard for the wishes of the people by continuing to push unpopular programs and spending down our throats.

If you need proof look no further than the numbers below from the most recent Rasmussen Reports Daily Presidential Tracking Poll. Also note that Republicans are currently beating the Democrats in every policy category and that leaders on both sides of the aisle in Congress have major problems with their “Unfavorable” ratings. For the record, the Republicans have done nothing to deserve this turnaround. The country is mostly conservative and independent – this is more a vote against the Democrts than for the Republicans. See numbers below:

Perceptions of Obama

Obama Approval Index -15

Strongly Approve 27%

Strongly Disapprove 42%

Taxes Will Go Down 19%

Gov’t Spending Will Go Up 66%

Obama on Economy – Ex/Good 34%

Trust on Issues

Education  Dem 38%   GOP 43%

Health Care  Dem 40%   GOP 46%

War in Iraq  Dem 38%   GOP 45%

Social Security  Dem 37%   GOP 45%

National Security  Dem 37%   GOP 50%

Economy  Dem 36%   GOP 48%

Taxes  Dem 35%   GOP 50%

Abortion  Dem 35%   GOP 47%

Immigration  Dem 33%   GOP 45% 

Gov’t Ethics/Corruption  Dem 31%   GOP 34%

Congressional Leadership

Nancy Pelosi  Fav 33%   Unfav 57% 

John Boehner  Fav 27%   Unfav 34% 

Mitch McConnell  Fav 26%  Unfav 32%

Harry Reid  Fav 25%  Unfav 47%

The numbers speak for themselves with 64% of Americans saying the country is on the wrong track. It’s time to go back to what works; a constitutional government and a free market economy.

Restore the Republic, Reject the Agenda of the Radical Left!

“The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government — lest it come to dominate our lives and interests.” — Patrick Henry

Even the N.Y.Times gets it… Spending is out of control!

Are we on the edge of financial disaster as a nation? Is the entire economy a house of cards? Has a recovery really begun? Whether you believe it has or not read the article below from the New York Times. Even given their normally liberal stance, it is clear that the growing deficit raises fear everywhere – even at the N.Y. Times! This is an excellent explanation of the problem.

NY Times – Wave of Debt Payments Facing U.S. Government

By EDMUND L. ANDREWS

Published: November 22, 2009

WASHINGTON — The United States government is financing its more than trillion-dollar-a-year borrowing with i.o.u.’s on terms that seem too good to be true.

But that happy situation, aided by ultralow interest rates, may not last much longer.

Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.

Even as Treasury officials are racing to lock in today’s low rates by exchanging short-term borrowings for long-term bonds, the government faces a payment shock similar to those that sent legions of overstretched homeowners into default on their mortgages.

With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.

In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.

The potential for rapidly escalating interest payouts is just one of the wrenching challenges facing the United States after decades of living beyond its means.

The surge in borrowing over the last year or two is widely judged to have been a necessary response to the financial crisis and the deep recession, and there is still a raging debate over how aggressively to bring down deficits over the next few years. But there is little doubt that the United States’ long-term budget crisis is becoming too big to postpone.

Americans now have to climb out of two deep holes: as debt-loaded consumers, whose personal wealth sank along with housing and stock prices; and as taxpayers, whose government debt has almost doubled in the last two years alone, just as costs tied to benefits for retiring baby boomers are set to explode.

The competing demands could deepen political battles over the size and role of the government, the trade-offs between taxes and spending, the choices between helping older generations versus younger ones, and the bottom-line questions about who should ultimately shoulder the burden.

“The government is on teaser rates,” said Robert Bixby, executive director of the Concord Coalition, a nonpartisan group that advocates lower deficits. “We’re taking out a huge mortgage right now, but we won’t feel the pain until later.”

So far, the demand for Treasury securities from investors and other governments around the world has remained strong enough to hold down the interest rates that the United States must offer to sell them. Indeed, the government paid less interest on its debt this year than in 2008, even though it added almost $2 trillion in debt.

The government’s average interest rate on new borrowing last year fell below 1 percent. For short-term i.o.u.’s like one-month Treasury bills, its average rate was only sixteen-hundredths of a percent.

“All of the auction results have been solid,” said Matthew Rutherford, the Treasury’s deputy assistant secretary in charge of finance operations. “Investor demand has been very broad, and it’s been increasing in the last couple of years.”

The problem, many analysts say, is that record government deficits have arrived just as the long-feared explosion begins in spending on benefits under Medicare and Social Security. The nation’s oldest baby boomers are approaching 65, setting off what experts have warned for years will be a fiscal nightmare for the government.

“What a good country or a good squirrel should be doing is stashing away nuts for the winter,” said William H. Gross, managing director of the Pimco Group, the giant bond-management firm. “The United States is not only not saving nuts, it’s eating the ones left over from the last winter.”

The current low rates on the country’s debt were caused by temporary factors that are already beginning to fade. One factor was the economic crisis itself, which caused panicked investors around the world to plow their money into the comparative safety of Treasury bills and notes. Even though the United States was the epicenter of the global crisis, investors viewed Treasury securities as the least dangerous place to park their money.

On top of that, the Fed used almost every tool in its arsenal to push interest rates down even further. It cut the overnight federal funds rate, the rate at which banks lend reserves to one another, to almost zero. And to reduce longer-term rates, it bought more than $1.5 trillion worth of Treasury bonds and government-guaranteed securities linked to mortgages.

Those conditions are already beginning to change. Global investors are shifting money into riskier investments like stocks and corporate bonds, and they have been pouring money into fast-growing countries like Brazil and China.

The Fed, meanwhile, is already halting its efforts at tamping down long-term interest rates. Fed officials ended their $300 billion program to buy up Treasury bonds last month, and they have announced plans to stop buying mortgage-backed securities by the end of next March.

Eventually, though probably not until at least mid-2010, the Fed will also start raising its benchmark interest rate back to more historically normal levels.

The United States will not be the only government competing to refinance huge debt. Japan, Germany, Britain and other industrialized countries have even higher government debt loads, measured as a share of their gross domestic product, and they too borrowed heavily to combat the financial crisis and economic downturn. As the global economy recovers and businesses raise capital to finance their growth, all that new government debt is likely to put more upward pressure on interest rates.

Even a small increase in interest rates has a big impact. An increase of one percentage point in the Treasury’s average cost of borrowing would cost American taxpayers an extra $80 billion this year — about equal to the combined budgets of the Department of Energy and the Department of Education.

But that could seem like a relatively modest pinch. Alan Levenson, chief economist at T. Rowe Price, estimated that the Treasury’s tab for debt service this year would have been $221 billion higher if it had faced the same interest rates as it did last year.

The White House estimates that the government will have to borrow about $3.5 trillion more over the next three years. On top of that, the Treasury has to refinance, or roll over, a huge amount of short-term debt that was issued during the financial crisis. Treasury officials estimate that about 36 percent of the government’s marketable debt — about $1.6 trillion — is coming due in the months ahead.

To lock in low interest rates in the years ahead, Treasury officials are trying to replace one-month and three-month bills with 10-year and 30-year Treasury securities. That strategy will save taxpayers money in the long run. But it pushes up costs drastically in the short run, because interest rates are higher for long-term debt.

Adding to the pressure, the Fed is set to begin reversing some of the policies it has been using to prop up the economy. Wall Street firms advising the Treasury recently estimated that the Fed’s purchases of Treasury bonds and mortgage-backed securities pushed down long-term interest rates by about one-half of a percentage point. Removing that support could in itself add $40 billion to the government’s annual tab for debt service.

This month, the Treasury Department’s private-sector advisory committee on debt management warned of the risks ahead.

“Inflation, higher interest rate and rollover risk should be the primary concerns,” declared the Treasury Borrowing Advisory Committee, a group of market experts that provide guidance to the government, on Nov. 4.

“Clever debt management strategy,” the group said, “can’t completely substitute for prudent fiscal policy.”

Look at numbers, they speak for themselves: http://www.usdebtclock.org/

Don’t fall for the recovery line. We need to remain vigilant and continue to fight for fiscal responsibility. We must shut down the runaway government spending and let the free markets “fix” the economy. It is time to worry about the future of our children. If we don’t get the economy back on track our children and grandchildren will be condemned to a country with a European style economy and a substantially reduced standard of living. Is that what we want our legacy to be?

Wakeup, America! Speak up and be heard. Hold them accountable, they had their chance, it didn’t work – time to return to what works; the private sector, a free market economy less government and lower taxes. To save the country we love, we must revive the original American Dream, we must trust the structure of our constitutional government and the freedom it nurtures or the dream will not survive.

I’ll close with some words of wisdom from a few of our founding fathers and great leaders:

“If we can prevent the government from wasting the labors of the people, under the pretence of taking care of them, they must become happy”. – Thomas Jefferson

“With respect to the two words ‘general welfare,’ I have always regarded them as qualified by the detail of powers connected with them. To take them in a literal and unlimited sense would be a metamorphosis of the Constitution into a character which there is a host of proofs was not contemplated by its creators.” — James Madison

As Thomas Jefferson said, “I sincerely believe… that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.”  And…“With respect to future debts, would it not be wise and just for [a] nation to declare in [its] constitution that neither the legislature nor the nation itself can validly contract more debt than they may pay within their own age, or within the term of 19 years? And that all future contracts shall be deemed void as to what shall remain unpaid at the end of 19 years from their date?”

Restore the Republic, Reject the Agenda of the Progressive Left!

 

More Bad News for Obama – The Oct. Economic Report

  • The Labor Department said employers cut more jobs than expected in October, pushing the unemployment rate above 10 percent for the first time since 1983. Employers cut 190,000 jobs last month, 29,000 less than were lost in September, but more than the 175,000 than had been predicted. The unemployment rate jumped to 10.2 percent from 9.8 percent in September. The sectors hardest hit continue to be manufacturing, construction and retail. Total unemployment has reached 15.7 million.
  • Safe-haven assets like Treasury bonds were mixed. Oil prices are down to $77.12 a barrel. Gold is trading at a record high of $1,100 an ounce due to fear about a weak dollar and inflation.
  • The jobs report indicates a continued slump in consumer spending, a major component of economic activity. Economists say consumer spending must improve to sustain a recovery.
  • The administration said last week that the economy expanded 3.5 percent in the third quarter. Much of that growth was driven by stimulus measures and government expansion which is not true or sustainable growth. The Federal Reserve kept interest rates at a record low in an attempt to prop up the recovery. 

How’s that stimulus plan working for you? The economy keeps getting worse and the Obama administration continues to spend money like it comes from a printing press! Oh wait; apparently that is what they think because they are printing it like it is free. Printing currency, creating government jobs and phony economic stimulus gimmicks such as Cash for Clunkers and First time Homebuyers Credit will not create jobs. These are just artificial attempts to re-inflate the bubble. A jobless recovery is a false recovery and a precursor to the next downturn. The real question is; where is the bottom and have we hit it yet? 

For 15.7 million unemployed citizens until there are jobs and paychecks there is no recovery. With predictions of more home foreclosures in the 3rd and 4th quarters these families are hanging by a thread. The Obama plan IS NOT WORKING!

 We have lost an additional 3.5 million job since Feb. 2009. We have more people on food stamps than ever before. Since the stimulus is not creating jobs, maybe we should return all the unspent money to the Treasury. Then we can use it to pay down the debt, fund tax credits for business and capital investment to jump start the economy. 

Here are a few ideas to get “the free market” working again: 

  • Support targeted tax relief to stimulate investment
  • Eliminating job killing legislation such as:  
    •  the proposed cap-and-trade approach to climate change which will increase energy costs for all employers
    • the health care reform bill which will raise taxes on small businesses and hijack 17% of the economy

Don’t fall for the recovery line. We need to remain vigilant and continue to fight for fiscal responsibility. We must shut down the runaway government spending and let the free markets “fix” the economy. To hell with “The Dreams of his Father” it is time to worry about “the Dreams of our Children”. If we don’t get the economy back on track our children and grandchildren will be condemned to a country with a European style economy and a substantially reduced standard of living. Is that what we want our legacy to be?

Wakeup, America! Speak up and be heard. Hold them accountable, they had their chance, it didn’t work – time to return to what works; the private sector, a free market economy less government and lower taxes.

As Thomas Jefferson said, “I sincerely believe… that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.”  And…“With respect to future debts, would it not be wise and just for [a] nation to declare in [its] constitution that neither the legislature nor the nation itself can validly contract more debt than they may pay within their own age, or within the term of 19 years? And that all future contracts shall be deemed void as to what shall remain unpaid at the end of 19 years from their date?”

Restore the Republic, Reject the Agenda of the Progressive Left!

Barney Frank – “…we are trying at every front to increase the role of government in the regulatory area”

In a recent debate with Ralph Nader, Barney Frank said the following:

“…We’re in there fighting these things. The right wing took control of government and ruined it. They gave it a bad reputation. Now that we are trying at every front to increase the role of government in the regulatory area, we run into this public opinion that says, hey, those are the guys who screwed up Katrina. So the frustration is they’re benefiting from their own incompetence”.

Then he went on to say….

“There’s going to be a systematic risk council. The systematic risk council will have the duty of monitoring to see in any institution or any pattern is causing a risk. If it is they will step in well before we’re faced with this kind of collapse. They would have said to AIG, you may not sell any more credit to false swaps, we are going to use the bankruptcy authority of the Constitution to put these — this regulatory body in charge of putting these people out of their misery. When the right wing started talking about death panels, they were right for the wrong reason. We are going to have death panels, but they’re going to be death panels that are going to put to death these institutions before they can cause us problems, not old people”.

The arrogance of this Congressman and his cohorts is unbelievable! Watch the video below:

Where are we headed as a country when the government thinks that they need to create a systemic risk council so they can run rough shod over businesses that step out of line in their eyes?  What happened to businesses being able to succeed or fail on their own? What happened to good old fashioned bankruptcy? What happened to the free market  capitalism on which our economy  and our country were built?

To quote Rush Limbaugh, “I wonder how many regulators Barney whacked trying to stop what was going on in the subprime mortgage stuff. By the way, these guys want to try to take risk out of everything. I made the point last week, this is a nation built on risk-taking. That’s what entrepreneurism is. … You know, I was thinking, Barney Frank is worse, ladies and gentlemen, than any executive who has ever been a crook in the private sector. Barney Frank uses his position and the law to promote the destruction of the housing market and all that goes with it. Then he blocked efforts to correct what he and others of his ilk had unleashed”.

If we are going to save our country and our national sovereignty, we must save our economy first! We can not save the economy if the government is going to continue to meddle in the free market. Nationalization of the banks and the auto companies coupled a manufacturing czar, a pay czar, cap and tax legislation, a meddling EPA  and a pro union administration spells doom for a meaningful recovery.

As Americans we need to face the facts. The administration’s economic policy which punishes success and capitalism is killing the economy. Unemployment continues to rise and new jobs are not being created. The credit market for business capitalization remains mostly frozen. Regional banks failures have already  reached 100 this year. Home foreclosures continue to rise and our country’s credit rating is in decline. The handwriting is on the wall, if we don’t do something soon we will be facing an economic crash of epic proportions, followed by hyper-inflation.

The G20, the IMF and the UN are waiting, watching and licking their chops. If our economy fails we lose our position as leaders of the free world. The dollar will no longer be the premier currency and ultimately it will compromise our national sovereignty.

It is time to take action. It is time to tell the government to stop meddling in business and end their excessive spending. Government does not create wealth it, consumes it. We do not need contrived shovel ready projects or non value added government jobs. It is time to return to our roots, to what made us great; small government, free market capitalism and American ingenuity. We need to rebuild our manufacturing base and manufacture durable goods which will create jobs. We need to lower taxes to stimulate investment to get the economy moving.

It is time to contact your elected representatives and tell them: No more spending and No more meddling! The time is now – Restore the Republic, Restore the American Dream and Reject the Economic Policies of the Socialist Left!

 “…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.” – Prime Minister Thatcher

“The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government — lest it come to dominate our lives and interests.” — Patrick Henry 

Smoke & Mirrors… Obama’s Economic Recovery

Yesterday the Dow Jones hit 10,015.86 (+144.8 for the day) and eclipsed the 10,000 threshold for the first time in a year. The Nasdaq also rallied to 2,172.23 (+32.34 for the day). The Dow reached that level on the back by strong earning reports from JPMorgan Chase & Co. and Intel Corp. On the strength of this break through some are suggesting that the economy is on the rebound.

However, here are the facts: 

From the AP: 

  • The Labor Department said Thursday that first-time claims for jobless benefits dropped to a seasonally-adjusted 514,000 from an upwardly revised 524,000 the previous week.
  • The tally of people continuing to claim benefits is to 5.99 million
  • Employers have eliminated a net total of 7.2 million jobs since the recession began in December 2007, sending the unemployment rate to a 26-year high of 9.8 percent.
  • The decline in jobless claims shows companies are cutting fewer workers, though the drop isn’t yet steep enough to signal new hiring 

From RealtyTrac: 

  • RealtyTrac®  the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for Q3 2009, which shows that foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 937,840 properties in the third quarter, a 5 percent increase from the previous quarter and an increase of nearly 23 percent from Q3 2008. One in every 136 U.S. housing units received a foreclosure filing during the quarter — the highest quarterly foreclosure rate since RealtyTrac began issuing its report in the first quarter of 2005.

This may in fact be a sucker’s rally. So far this is a jobless recovery. Currently there are over 15 million people out of work and people are losing their homes at an alarming rate. 

According to former Fed Chairman Alan Greenspan, “my own suspicion is that we’re going to penetrate the 10 percent barrier and stay there for a while before we start down”. “People who are out of work for very protracted periods of time lose their skills eventually,” he said. “What makes an economy great is a combination of the capital assets of the economy and the people who run it. And if you erode the human skills that are involved there, there is a real and, in one sense, an irretrievable loss.” Greenspan also expressed his concern over the growing size of the federal deficit and the federal debt. 

Sen. Jon Kyl, R-Ariz. Appearing on CNN, said Democrats could best help the economy:

  • by supporting targeted tax relief
  • eliminating job killing legislation such as: 
    • the proposed cap-and-trade approach to climate change which will increase energy costs for all employers
    • the health care reform bill which will raise taxes on small businesses 

Don’t fall for the recovery line. We need to remain vigilant and continue to fight for fiscal responsibility. We must shut down the runaway government spending and let the free markets “fix” the economy.

As Thomas Jefferson said, “I sincerely believe… that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.”  And…“With respect to future debts, would it not be wise and just for [a] nation to declare in [its] constitution that neither the legislature nor the nation itself can validly contract more debt than they may pay within their own age, or within the term of 19 years? And that all future contracts shall be deemed void as to what shall remain unpaid at the end of 19 years from their date?”

Restore the Republic, Reject the Agenda of the Progressive Left!

Ross Perot was Right! The Economic Truth

In 1992 Ross Perot burst on to the national political scene with his charts and Texas swagger. Although, he eventually lost his presidential bid, he shined a bright light on the ecomomic truths of our country and accurately predicted the path our economy over the last 17 years.

Recently, Perot put up a new web site called PerotCharts.com where he has expanded on the classic charts from his presidential campaign infomercials. Watch the video that launches his web site below:

Here are some of the new charts on his web site that clearly illustrate the self destructive path that we have placed our country on.

The Growing National Debt Combined 1968 - 2007

This is the cumulative amount of money that the government has borrowed from outside sources to meet its obligations during the years that it runs deficits. Debt Held by the Public includes domestic buyers, such as mutual funds, state and local governments, Federal Reserve banks, commercial banks, insurance companies, and individuals, as well as private foreign entities and central banks of foreign countries. Of the $5.1 trillion in outstanding public debt at the end of 2007, domestic investors owned 55 percent ($2.8 trillion) and foreign investors held 45 percent ($2.2 trillion). When the government runs surpluses, the debt gets paid down as can be seen from the trough in the late 1990s.

The Nation’s Healthcare Dollar 2004

Sixty percent of the private insurance healthcare dollar goes toward physician and hospital services, and fourteen percent goes toward both prescription drugs and administrative costs.

The term tipping point can be applied to a process in which, beyond a certain point, the rate at which the process continues will increase dramatically. The budget of the United States has reached its tipping point. A recent event could have, in fact, marked the point in time. The first Baby Boomer—born January 1, 1946—has applied for early retirement at age 62 and received her first Social Security check. On the chart, an upturn in the Medicare growth rate can be detected in 2011 when the first Baby Boomers turn 65. Thereafter, the number of retirees continues to increase while the number of workers per retiree continues to decrease. The pyramid scheme has collapsed.

On July 31, 2008, the total federal debt stood at $9.586 trillion. Of that amount, $4.182 trillion was owed to the various “trust funds” (e.g., Social Security, Medicare, federal employees retirement funds, etc.) because the government “borrowed” that money from them. That leaves $5.404 trillion of debt “held by the public.” Of that amount, $2.728 trillion is held domestically by banks, mutual funds, and other U.S. investors. This leaves $2.676 held by foreign countries, institutions and individuals.

Notes:

1 Oil Exporters includes: Ecuador, Venezuela, Venezuela, Indonesia, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the UAE, Algeria, Gabon, Libya and Nigeria.

2 Caribbean Banking Centers includes: Bahamas, Bermuda, the Cayman Islands, Netherland Antilles, Panama, and British Virgin Islands.

For more common sense and a truthful view of the economic situation, visit: http://perotcharts.com/home/

Where are the leaders with the saavy to lead us out of this mess? How do we find our way before it’s too late?

Wake up America, the American Dream and the future of our children is at stake!

“Sometimes I wonder whether the world is being run by smart people who are putting us on, or by imbeciles who really mean it”. – Mark Twain

Restore the Republic, Reject the Agenda of ALL Unscrupulous Politicians! We need Leaders Now!

 

 

Economic and Employment Update – Losses Continue

Despite what the administration is saying, the economy is still very sick.

From http://www.economicindicators.gov/

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for August, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $351.4 billion, an increase of 2.7 percent (±0.5%) from the previous month, but 5.3 percent (±0.7%) below August 2008. Total sales for the June through August 2009 period were down 7.6 percent (±0.3%) from the same period a year ago. The June to July 2009 percent change was revised from -0.1 percent (±0.5%)* to -0.2 percent (±0.2%)*.

Retail trade sales were up 3.0 percent (±0.7%) from July 2009, but 6.0 percent (±0.7%) below last year. Gasoline stations sales were down 26.7 percent (±1.5%) from August 2008 and building material and garden equipment and supplies dealers were down 13.6 percent (±2.0%) from last year.

The up tick in consumer spending was artificially created by the Cash for Clunkers program. This may ultimately hurt the car companies by pulling forward sales that would have occurred naturally over several months. This created a short term but unsustainable spike which may be followed by a long sales slump. Note that this is a straight spending comparison and that prices are not considered, so if prices go up on essentials the increase in spending will follow out of necessity. Also note that while spending is up slightly it remains significantly down from last year.

From http://www.economicindicators.gov/

New orders for manufactured goods in July, up five of the last six months, increased $4.6 billion or 1.3 percent to $355.5 billion, the U.S. Census Bureau reported today. This followed a 0.9 percent June increase. Excluding transportation, new orders decreased 0.7 percent. Shipments, down eleven of the last twelve months, decreased $0.2 billion to $359.7 billion. This followed a 1.8 percent June increase. Unfilled orders, down ten consecutive months, decreased $0.1 billion to $740.6 billion. This was the longest streak of consecutive monthly decreases since the series was first published on a NAICS basis in 1992. This followed a 0.8 percent June decrease. The unfilled orders-to-shipments ratio was 5.95, down from 6.00 in June. Inventories, down eleven consecutive months, decreased $3.6 billion or 0.7 percent to $503.1 billion. This was the longest streak of consecutive monthly decreases since March 2003-January 2004 and followed a 1.1 percent June decrease. The inventories-to-shipments ratio was 1.40, down from 1.41 in June.

Other areas of concern are the residential real estate market and what appears to be an attempt to re-inflate the housing market.

From The Center for American Progress (this source proves even the left is not buying the fairy tales)

http://www.americanprogress.org/pressroom/statements/2008/08/foreclosures.html

It’s 1930 all over again. While cheerleaders for the real estate industry proclaim the housing markets are ready to turn the corner, with first-time homebuyers ready to jump into the market, the reported 55 percent increase in foreclosure activity over last July should put a damper on the excitement. July marks the third month of accelerating increases in foreclosure activity reported by RealtyTrac and an unbroken streak going back to January 2006 of year-over-year increases in monthly foreclosures. With RealtyTrac reporting in excess of 750,000 bank-owned properties, we estimate that nearly 0.6 percent of all housing units in the United States are now bank-owned. While this may appear to be a small slice of the total housing stock, this is the same ratio of foreclosed properties to housing units in 1930. Foreclosures increased steadily from 1930 until peaking in 1933, at which point 10 percent of all homes had become bank-owned. They did not return to pre-Depression levels until 1938.

Now that Congress has passed and the president has signed housing legislation, there is a danger of complacency in thinking the problem has been addressed. The ball is in the loan servicers’ court to see if they will participate at meaningful rates in the new FHA loan program to refinance at-risk borrowers into sustainable loans. The Hope Now alliance of over 30 major loan services holding vast numbers of home mortgage loans reported modifying 220,000 loans during the second quarter of this year. To put that figure in context, RealtyTrac reported 272,121 foreclosure actions (notices of default, auctions, or repossessions) in July alone. If the mortgage industry doesn’t pick up the pace and more rapidly restructure or refinance existing mortgages headed for default and foreclosure, things will get worse before they get better.

Whether the situation is truly a harbinger of things becoming as dire as they did between 1930 and 1933 is something we will only know after the fact. But foreclosures are mounting, with 1 in 11 American families with a home loan in trouble as of June. If voluntary programs do not begin taking effective advantage of the tools offered by the recent housing bill, we would expect to see calls for still greater government action to avert a 1930s-like economic plunge.

The last line of this article is cause for concern , “we would expect to see calls for still greater government action to avert a 1930s-like economic plunge”.

Excerpts From The Associated Press

It could be another year before the final taxpayer tab for Fannie and Freddie is known, and that outcome will depend on when delinquencies and foreclosures finally crest.

The Obama administration doesn’t expect to announce its plans for the two companies until early next year, but powerful interest groups aren’t waiting until then. The Mortgage Bankers Association on Wednesday offered a detailed plan to replace Fannie and Freddie with several federally regulated private companies.

In the meantime, both Fannie and Freddie have been drafted to implement the Obama administration’s effort to reduce the number of foreclosures.

The early results have been disappointing. For example, while Fannie or Freddie refinanced 2.9 million loans from January through July, only about 60,000 were taking advantage of an Obama administration plan to help “underwater” borrowers who owe more than their homes are worth.

At the same time, nearly 70 percent of U.S. mortgages made in the first half of this year went through Fannie or Freddie, up from 62 percent last year, according to Inside Mortgage Finance, a trade publication.

See full article at:

http://www2.timesdispatch.com/rtd/business/local/article/B-MORT05_20090904-213604/290762/

Again the story is in the last paragraph, if “nearly 70 percent of U.S. mortgages made in the first half of this year went through Fannie or Freddie”, that means that the “government” is still guaranteeing these loans – which really means unfunded taxpayer liabilities continue to grow.

Jobs:

Excerpts From The Associated Press 

By CHRISTOPHER S. RUGABER 

WASHINGTON – September 18, 2009 — Forty-two states lost jobs last month, up from 29 in July, with the biggest net payroll cuts coming in Texas, Michigan, Georgia and Ohio.

The Labor Department also reported Friday that 27 states saw their unemployment rates increase in August, and 14 states and Washington D.C., reported unemployment rates of 10 percent or above.

The jobless rate nationwide is expected to peak above 10 percent next year, from its current 9.7 percent

The United States lost 216,000 jobs in August, the department said earlier this month, down from 276,000 in July. Employers have eliminated 6.9 million jobs since the recession began in December 2007.

Texas lost 62,200 jobs as its unemployment rate rose to 8 percent in August for the first time in 22 years.

Michigan saw 42,900 jobs disappear, including 25,000 in manufacturing, as the state continued to suffer along with its struggling auto industry. Michigan’s unemployment rate rose to 15.2 percent, the highest in the nation.

Nevada has the second-highest rate at 13.2 percent, followed by Rhode Island at 12.8 percent and California and Oregon at 12.2 percent each.

The jobless rates in California, Nevada and Rhode Island were the highest on records dating to 1976. California and Nevada have been slammed by the housing bust, while Rhode Island has lost thousands of manufacturing and government jobs in the past year.

Georgia and Ohio reported the third and fourth-highest job losses… respectively,

New Jersey added 800 jobs, but its jobless rate jumped to 9.7 percent, the highest in 33 years, from 9.3 percent.

Bottom line: The recovery so far is not creating new jobs in the private sector. The majority of new hires right now are in the government sector which will not result in boosting the GDP. Government does on create earnings, it consumes them.

The facts are this, we have unemployment of 9.7%. The stimulus was supposed to prevent us from going over 8.0%. What happened to those shovel ready projects that were going to put people to work right away? We have lost an additional 2.5 million job since Feb. 2009. We have more people on food stamps than ever before. Since the stimulus money is not creating jobs, maybe we should return all the unspent money to the Treasury. Then we can use it to pay down the debt, fund tax credits for business and capital investment to jump start the economy.

Even more concerning is; if the administration is successful in its’ efforts to put through Tax and Cap, Health Care Reform and tax increases more jobs will be lost.

It is time for a new plan. It is time to start telling your representatives that; we want the unused portion of the stimulus money returned to the Treasury, no more bailouts as well as tax breaks to stimulate business investment and job creation. We need to create jobs! We need to create them immediately. Government can hire people but that does not create revenue or national economic prosperity. No good will come from more government regulation and involvement in the markets. We do not want or need a welfare state. If the government spending does not stop and the free market be allowed to function on its’ own, we will bankrupt America. I for one have no desire to become part of a global nation that takes away my rights, liberties, freedom and the American Dream.

Restore the Republic, Reject the agenda of the Progressive Left!

“But with respect to future debt; would it not be wise and just for that nation to declare in the constitution they are forming that neither the legislature, nor the nation itself can validly contract more debt, than they may pay within their own age, or within the term of 19 years”.….. The principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale”.  –  Thomas Jefferson

5 Million Jobs Short

jobsgapsaugust

While the promoting  the stimulus plan the Obama administration promised it would create 2.5 million jobs by the end of 2010. Later the Obama administration revised the number to 4 million new jobs. This makes the target number 138.6 million employed if the plan performs as advertised.

In August another 216,000 jobs were lost , lowering total U.S. employment to 131.2 million. We are still going the wrong direction leading most to beleve the stimulus is not working.

Unemployment is now at 9.7% and threatening to continue its’ climb. What happened to those shovel ready projects that were going to put [eople to work right away. Even more concerning is if the administration is successful in its’ efforts to put through Tax and Cap, Health Care Reform and tax increases more jobs will be lost.

It is time for a new plan. Since all the money has not been spent and the results are so poor, maybe it is time to return the unspent money to the Treasury, pay down the debt and try something different.

Maybe we should consider business tax cuts and tax credits for capital investment. No good will come from more government regulation and involvement in the markets.  

 

 Here are some other stats:

National Tracking: Economy

Rate Economy – Poor 56%
Economy Getting Worse 44%
RR Employment Index 63.9
Hiring 15%
Laying Off 28%
Worried about Losing Job 29%
The US is on the Wrong Track 63%