Despite an obviously collapsing economy, monetary system and fiscal condition, President Obama is not at all concerned:
I’m not concerned about a double dip recession. I am concerned about the fact that the recovery that we’re on is not producing jobs as quickly as I want it to happen.
Prior to this month we had seen three months of very robust job growth in the private sector. And, so we were very encouraged by that. This month you still saw job growth in the private sector but it slowed down. We don’t yet know if this is a one month episode or a longer trend.
Obviously we’re experiencing some headwinds.
The overall trend that we’ve seen over the last fifteen months…two million, over two millions jobs created over the past fifteen months, a rebounding of the manufacturing sector in the United States that’s exemplified by the recovery of the big three auto makers here, all indicates that we have set a path that will lead us to long term economic growth.
But we’ve still got some enormous work to do. As long as there are some folks out there who are unemployed, looking for work, then every morning that I wake up I’m going to be thinking about how we can get them back to work.
What, no mention of home sales, home prices, rising food stamp participation or the fact that the Treasury department just dipped into government pensions to the tune of $80 billion to cover Federal expenses?
Where to begin…
With regards to robust job growth, President Obama must be speaking to the majority of Americans who, instead of spending some time learning the details, prefer to tune in to whatever unreality television happens to be on that night. While we “officially” created jobs each of the last three months, it’s important to note that we are nowhere near creating enough jobs to offset new workers who are entering the marketplace. We need to create a minimum of 250,000 jobs per month just to break even. That’s not happening.
Take, for example, our report that 85% of graduating college students will not be able to find a job when they get out of school this year. That’s a whopping 1.7 million degreed individuals with nowhere to go but back to mom and dad’s basement.
On top of that, those “official” statistics being cited by the President woefully underestimate the reality of the situation. All those folks who lost their jobs in 2008 and early 2009 aren’t even counted because they are no longer receiving benefits. We really have no idea what that number amounts to, but at last glance it was upwards of one million.
Finally, we have government employment, which is a complete disaster right now and will get worse going forward. Over 350,000 government jobs have been lost through fiscal year 2011 and another 450,000 pink slips are going to be handed out in 2012. Within the next few years, there will be a total of some two million layoffs in local, state and federal public employment sectors.
Realistically we’re at Great Depression unemployment numbers and anyone who argues differently has their head in the sand. Job growth as described by the President is pure and utter conjecture.
While President Obama looks at the big three to promote positive manufacturing growth, we noted in Economic Double Dip – Or Double Tap? that manufacturing is collapsing. There is a simple reason for why this is happening – there’s no real job growth and without jobs people can’t buy consumer goods. With prices of food and energy reaching near all time highs, most discretionary spending has evaporated and his been forced to cover essential personal living expenses.
The President is trying to empathize with “some folks” who are currently out of work, and insists he wakes up every morning thinking about how he can help them. If this were the case, then why did The Hill report just yesterday that the President stopped receiving his morning economic briefings? Say one thing, do another. Typical of a politician who takes a monthly vacation with the family and spends millions of dollars on hotel rooms, shopping trips and luxurious dinner arrangements. To be clear, it’s more than just a few “folks” who are out of work – closer to the 20 million mark, and that’s using official U-6 statistics.
President Obama calls these headwinds. This is no moderate breeze we’re experiencing here. We’re actually sailing straight into hurricane force winds, and the President and his administration are not warning anyone to batten down the hatches.
He may tell us he’s not concerned about a double dip recession, and officially it will not be called that because we are still showing positive GDP growth. But, as was pointed out by Bert Dohmen of the Wellington Letter, this is due strictly to inflation and nothing else. As the prices for goods and services increase, the official GDP numbers show that we are spending more and subsequently that the economy is growing. Adjust for inflation, and we’re in negative territory and have been for a while – aka recession.
There is no path to economic growth. It’s exactly the opposite. We will continue to shed jobs to cheaper foreign slave labor because no one in decision making circles is willing to take on China, not to mention they get tons of lobbyist donations to ensure favorable status is given to countries that will provide cheaper labor. Small businesses, already under extreme financial pressure, will get no reprieve in the future. In fact, it will only get worse with higher taxes, more regulation and forced health care options. Our dollar will continue to depreciate in terms of purchasing power – this simply cannot be denied given the trillions upon trillions of dollars that are being directly and covertly pumped into the system. And, as politicians on the left and right continue to erode our Constitutional protections, with property rights being of fundamental importance, capital will continue to shift outside of the US over the long-term, seeking safety elsewhere.
The path we’re on is one of ruin, not growth or prosperity.
President Obama should be concerned, but he isn’t. He is willingly engaging in exactly those policies that will further erode our liberty and wealth as a nation.