Posted on 09/21/2012 3:50:07 AM PDT by Kaslin
To give you an idea how bad the jobs report released on Friday is, consider this fact: The employment situation in the country is so bad that economists can’t accurately measure it with the existing tools they use to measure jobs. In other words, we have entered a period in our country not contemplated by economists. They simply don’t have the tools to measure what’s actually occurring in the jobs market.
Modern economists never imagined a scenario in which a country with as much wealth, power and innovation as United States could stretch out a jobs recession as long as the country has under Obama.
Economists please meet Barack Hussein Obama, record-setter. More debt, more spending, more regulation than ever before- and fewer jobs.
We have a record amount of money in the system doing a record amount of nothing right now. And still the government policy wonks keep thinking that by injecting more money into a system already over-burdened by its money supply we will eventually get different results.
Only Obama could preside over an economy with so much money that has produced so little return as our economy has since January 2009.
Never in the annals of human history have so many dollars done so little for so many.
Yet the Obamunists keep calling for more money and more regulations.
The result is that investors today are still buying US Treasuries despite the fact that after calculating for the real inflation rate Treasury bonds are delivering net negative returns. In other words, investors choose to park money someplace where they are guaranteed to lose money. Because with Treasuries at least they know that their losses will be limited. If they invest in expanding businesses, they know they could lose their entire vig to the G-Men.
This phenomenon, where investors would rather have losses than any risk, has an effect on jobs.
As most of the commentariat is noting, the top-line unemployment number- the one that makes all the headlines- is going down not because of an improving jobs market, but rather because people are dropping out of the workforce at a record pace.
The 8.1 percent unemployment number is meaningless. It actually doesn’t exist. It’s like measuring an 8 foot board with a 12 inch ruler. Shortening the ruler doesn’t make the board smaller.
The rate at which Americans are participating in the jobs market is now 63.5 percent. More than one-third of Americans qualified to work have despaired of ever finding a job under Obama. That’s the highest number of Americans who have sat on the sidelines rather than look for work since 1981. For over a year the workforce participation rates have plunged, coinciding with expiring unemployment benefits.
And the problem is not that there is a lack of money in the system to sustain the economy. But there is a notable lack of demand. Demand comes from confidence that consumers and business feel about the health of the economy. Unlike politicians, those of us in the real world can’t spend what we don’t have. We have to manage our lives using the cash that we actually have at hand.
The problem here is not that businesses and banks don’t have money. Currently the money supply (MZM) stands at a record $11 trillion. Yet the velocity at which the money has moved through the system has plunged under Obama. Money is sitting in accounts, not contributing to GDP growth, but rather just chasing the price of hard assets up because people who make decisions fear that the worst in the economy is yet to come.
Obamacare, Dodd-Frank, Sarbanes-Oxley, TARP, public pensions, John Corzine, Solydnra and the UAW have done a fantastic job of muddying the waters for corporate America as well as small business owners and the self-employed.
These hostile acts taken by or on behalf of Big Government have our economy idling in place.
Economic conditions are so bad that the standard tools used by economists to explain current conditions can’t measure the depth of the peoples’- or the economy’s- depression. Jimmy Carter had the Misery Index. People, meet the President of the United States: Barack Hussien Obama.
The Obama Index is the new index for measuring our despair.
Modern economists never imagined a scenario in which a country with as much wealth, power and innovation as United States could stretch out a jobs recession as long as the country has under Obama.
Jimmy Carter is most pleased that he is not the worst President in American history now.
Bump
Modern civilization never imagined a scenario in which a country with as much wealth, power and innovation as United States could succumb to Socialism so quick and easy under Obama.
economists are idiots, nothing more than the psychologists of the finance world. Their “models” are caca
Thomas Sowell said on Cavuto that Obama is tons worse that Jimmy Carter
Let’s start by noting the U6 unemployment number, which is almost 15 percent. (The U6 number includes those many people who have given up looking for work.) Add to that the cost of gasoline, which was about $1.85 a gallon when George W. Bush left office. Now it is approaching $4 a gallon in many areas of the country.
Add to that the fact that inflation is back with a vengeance. Note the rapidly increasing cost of food, brought on by a government printing more “bastard bucks” to try to prop up the economy, which only deflates the value of all of the rest of the money we have. The cost of food is further aggravated by the ethanol fuel debacle, which diverts needed food from livestock.
The Romney campaign needs to jump on this and continue repeating the question, “Are you better off than you were four years ago?” Add to that the question, “Is America better off than it was four years ago?”
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