The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

“Summer of Recovery” Economic News Roundup! – UPDATED!

Posted by iusbvision on October 13, 2010

Stay tuned – more updates coming to this post soon!

The White House told us this would be the “Summer of Recovery” so how did it go? The elite media has been telling us that each and every month of woeful economic news has been “unexpected” or a “surprise” since shortly after Obama took power. Finally the canard is off and he elite media is running to catch up when the train has already left the station.   For previous posts check out our Econ 101 and Energy & Taxes categories!

IBD: U.S. Won’t Recover Lost Jobs Until March 2020 At Current Pace

The U.S. economy lost 95,000 jobs in September, far worse than expectations for no change in employment. More Census-related temp jobs ended, as expected, but state and local governments slashed staff far more than predicted.

So far in 2010, the U.S. has added just 613,000 jobs — for a monthly average of 68,111. [The U.S. needs to create 125,000-150,000 jobs each month just to absorb new workers and prevent unemployment from rising.]

Employment bottomed in December 2009 at 129.588 million — two years after peaking at 137.951 million. At this year’s pace, the U.S. won’t recoup all those 8.36 million lost jobs* until March 2020 — 147 months after the December 2007 high.

That would obliterate the old post-World War II record of 47 months set in the wake of the 2001 recession.

The current jobs slump also is the deepest of any in the post-war era, with payrolls down as much as 6.1%. They are still 5.6% below their December 2007 level.

With state and local governments likely to shed workers for at least the next year or two as budget woes continue, the hiring burden will fall entirely on the private sector.

Private employers did add 64,000 workers last month, but that was a little less than consensus forecasts and far below what’s needed.

The U.S. needs to create 125,000-150,000 jobs each month just to absorb new workers and prevent unemployment from rising. So returning to the old peak employment a decade later would hardly suggest a healthy labor market.

(Unemployment held at 9.6% last month as the separate household employment survey reported an increase in jobs. But the underemployment rate rose 0.4 point to 17.1%, matching the 2010 high.)

The bottom line: It’s quite possible that the next recession will hit before the U.S. returns to old employment highs [this means double dip recession very likely as we have predicted since march 2009.  – Editor].

AP: Unemployment has now topped 9.5 percent for 14 months in a row, the longest stretch since the Great Depression of the 1930s.

CNBC: Home foreclosure repo’s at record high – 95, 364 lost their homes in August alone

CNS News: Obama Added More to National Debt in First 19 Months Than All Presidents from Washington Through Reagan Combined, Says Gov’t Data

FactReal Report: Poverty Increasing under Obama and Democrat Congress

Reuters: Private employers unexpectedly cut 39,000 jobs in September [unexpected my ear, with Congress failing to act on keeping the current tax structure intact they have added to an already long list of new taxes coming soon]

UK Guardian: Indiana still awaits Obama’s promised green recovery.  More than a year after the president visited to announce a new era of green jobs, the grant he promised has not materialised and unemployment is high.

Montreal Gazette: Indiana’s ‘RV Capital of the World’ still awaits Obama’s promised recovery

CNBC: New Yorkers’ Income Falls for 1st Time in 70 Years

The recession put a 3.1 percent dent in the personal incomes of New York state residents, who endured their first full-year decline in more than 70 years, according to a report released Tuesday.

Paychecks or net earnings tumbled 5.4 percent, while dividends, interest and rent slid 8.4 percent, to a grand total of nearly $908 billion, the state comptroller’s report said. Not only did New Yorkers’ personal incomes fall “almost twice” as much as they did in the nation as a whole, but they have yet to recover to pre-recession levels, Comptroller Thomas DiNapoli said.

AP: Social Security Administration’s inspector general report – 89,000 stimulus payments went to people who were either dead or in prison

Patterico: $111 million in stimulus money to L.A. produces … 54 jobs

CNS News: Feds Spent $800,000 of Economic Stimulus on African Genital-Washing Program

CNS News: Obama Administration Gave General Electric—Parent Company of NBC–$24.9 Million in ‘Stimulus’ Grants – GE Laid Off 18,000 people and posted $156 BILLION profit

GE owns NBC and MSNBC – is it any wonder that they are completely in the tank for Obama and have the most left wing bias in the entire elite media?

NYT: Obama letting big corporations off the hook with ObamaCare waivers [Remember THIS Editor]

Video: Democrat Congressman calls deficit, debt a “myth”

Ed Morrissey comments:

The last we heard from Rep. Phil Hare (D-IL), he impressed voters nationwide by assuring us that he didn’t care about the Constitution when creating law in Congress. Now he wants to let us know that the national debt is nothing but a “myth.”  In what will almost certainly become a sound bite in House races across the nation, Hare not only disputes the existence of debt and deficits, he insists that Democrats have to keep spending money we don’t have … for the children…

Bloomberg: Food Stamp Recipients at Record 41.8 Million Americans in July

The number of Americans receiving food stamps rose to a record 41.8 million in July as the jobless rate hovered near a 27-year high, the government said.

Recipients of Supplemental Nutrition Assistance Program subsidies for food purchases jumped 18 percent from a year earlier and increased 1.4 percent from June, the U.S. Department of Agriculture said today in a statement on its website. Participation has set records for 20 straight months.

An average of 43.3 million people, more than an eighth of the population, will get food stamps each month in the year that began Oct. 1, according to White House estimates.

WSJ: Middle Class Slams Brakes on Consumer Spending

AP: Consumer confidence drops to lowest since Feb.

Bloomberg: Goldman Sachs predict possible double dip recession

Goldman Sachs Group Inc. said the U.S. economy is likely to be “fairly bad” or “very bad” over the next six to nine months.

“We see two main scenarios,” analysts led by Jan Hatzius, the New York-based chief U.S. economist at the company, wrote in an e-mail to clients. “A fairly bad one in which the economy grows at a 1 1/2 percent to 2 percent rate through the middle of next year and the unemployment rate rises moderately to 10 percent, and a very bad one in which the economy returns to an outright recession.” [Remember the economy must grow at 1.5% just to break even on people entering the job market, anything less means unemployment and underemployment continue to rise – Editor]

BLS: Youth Unemployment at record high 19.1% since statistic has been measured since 1948.

S.F. Gate: California used a 340% over estimate of pollution levels to pass new restrictions on economy

Daily Caller: Democrat Senators threaten to raise energy costs in lame duck session

Gallup: Unemployment up sharply to 10.1% in September

Summer of Recovery? 

Big Government: Stupid federal regulators forcing New York to replace 250,600 street signs over use of capital letters…

News Australia: CBO says US hiding true amount of debt – The CBO estimates the debt will be at $US16.5 trillion in two years, or 100.6 per cent of GDP. [at near 100% of Debt/GDP historically that is when currency and credit collapses – Editor]

CNBC: Retailers post weak July sales

HotAir: Manufacturing tanks in August

Reuters: CEOs less willing to hire, sales a worry

CNBC: July Home Sales Hit 15 year Low – Yahoo Finance: Existing home sales drop 27% in July

Rosenberg: Economy in depression, not recession

Chairman of Joint Chiefs of Staff Admiral Mullen: The national debt is the single biggest threat to national security

AP: Recession pushed birth rate to new low

AP: Marriages at record low

US News & World Report: The Most Fiscally Irresponsible Government in U.S. History

Fox News: Homelessness Up 50% In New York City

WSJ: Stock Market Logs Worst August in 9 Years.

USA Today: 50 million Americans on welfare programs

LA Times: 41 Obama White House aides owe the IRS $831,000 in back taxes – 638 workers on Capitol Hill owe the IRS $9.3 million in back taxes…

LA Times: Jobs aren’t coming back. Unemployment likely to stay high.

Bloomberg: Dollar falling

AFP: Dollar at 15 year low against the Yen

Business Insider: 19 Facts About The Deindustrialization Of America That Will Make You Weep

WSJ: GM Resumes Political Giving. $90,500 most to Democrats [Hey folks the govt owns 61% of that company, so this is the govt paying to get itself re-elected – Editor]

Financial Times:  US Cities Face Half a Trillion Dollars of Pension Deficits

Heritage Foundation: ObamaCare increases insurance premiums

Washington Post: Business leaders say Obama’s economic policies stifle growth

Short video that explains the current budget deficits

Priceless – Democrat Blumenthal stumped on how to create a job –

October 15 UPDATE

AP: Applications for jobless benefits rise to 462K

Jobless claims have been stuck near 450,000 all year. Few employers see much reason to create many jobs, and some are still laying off workers. [This means we have been losing almost half a million jobs a month all year – Editor]

CNN Money: 85% of college grads move home –

Stubbornly high unemployment — nearly 15% for those ages 20-24 — has made finding a job nearly impossible. And without a job, there’s nowhere for these young adults to go but back to their old bedrooms, curfews and chore charts. Meet the boomerangers.

Heritage Foundation: Obama EPA Regs – The New Job Killer

Reuters: Economic Growth Expectations Adjusted Downward  –  Our friends at HotAir had some fun with this report from Reuters saying “Reuters economists expect even more of the ‘unexpected’ next year”.

Reuters: Banks foreclosed on 102,134 properties in September, the first single month above the century mark.

CNBC: Jobless Claims, Inflation, Trade Deficit Each Surge Higher

AP: Dollar tanks, stocks drop as Bernanke speech looms

Proactive Investors:  Weak Dollar Has Gold at Record High

CNBC: US Consumer Sentiment Dips

WSJ: Mortgage Damage Spreads

AP: Government reports $1.3 trillion budget deficit


One Response to ““Summer of Recovery” Economic News Roundup! – UPDATED!”

  1. So here we are, only months after the Economic “Stimulus” Package the majority of American’s knew was a terrible idea. Rather than represent their voters, they shove it down our throat. Now that we have spent ourselves into a hole, we begin to see all the tell tale signs of completely undermining our own authority in the world. Our economy is losing it’s reputation and our ability to push economic agenda worldwide is observed with scrutiny.

    The majority of American’s knew, if not by their own logic, in their gut, that this spending spree was a terrible idea. Of course, they are shown to be right. A Trillion dollars later, we’re wishing we were back where we started – at least then we would be a trillion dollars ahead in our debt with the same results.

    I can’t wait to do some firing in November myself, I have full expectations that The Vision will be doing something to help me in my voting decisions… a sort of voter guide if you will… At least that would be my request. I don’t have enough time in my busy schedule to dig up the dirt on these guys. Everyone knows we are stuck voting for the least dirty.

    Great article, as usual, Chuck.

    Keep up the good work.

    [Thanks Craig!

    This is the one good thing about the GOP getting booted from office in 2006 and 2008. Most of the old guard Republican Party was either voted out in the last two elections or replaced by Tea Party candidates in the recent primaries. There is a great deal of new blood. The Republicans are likely to sweep the next two elections. The American people are going to give the new blood Republicans a chance. Unlike any election in my lifetime the Republicans are going to have a group of people with a clean slate and the party must understand that they had better perform or the voters wrath is going to get ugly.

    In the 2006 and 2008 elections the Democrat Party “new blood” was handed total power in DC with a working filibuster proof majority in the Senate. The Democrats could do anything they wanted and all that Democrat new blood showed us that the moderate to traditional rhetoric they used to get elected was a lie. Not only did they govern to the far far left; they have used payoffs, passed corrupt legislation to pick winners and losers, and have spent like crazy and steered it largely to their political allies.

    Now we are seeing in this election that the Democrats are willing to lie, edit and splice video to make Republicans appear to say things they did not and just make up allegations against their Republican opponents at a degree that I have not seen in my lifetime.

    The GOP lacks now is effective communications people to show the American people the truth of what is going on. I have been watching the ads many Republican candidates are using and far too many are undereffective. The GOP needs to learn that being accountable to the voter means having an ongoing and intelligent dialogue with them.]

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