The economy can’t recover until housing recovers, and neither can recover until the labor market recovers.
From Credit Suisse compliments of ZeroHedge.com:
[This measure of labor demand suggests businesses have become a lot less willing to hire in the last two months. Jobless claims in recent months are not showing a deteriorating picture for the layoff side of payrolls, but help wanted online ads are showing weakness on the hiring side.
Biggest two-month drop since the recession three years ago. Help wanted online ads posted a second straight triple-digit decline in Aug after Jul’s big drop. Importantly, new ads accounted for the bulk of the weakness.
The two-month drop for headline help wanted online ads was -262.3K, while the two-month drop for new ads was -325.7K. Both were the worst two-month stretches since Feb 2009.]
As stated by ZeroHedge these are numbers that can’t be manipulated by the BLS. More proof the labor market remains in serious trouble after all the grand designs of Obama’s Keynesian spending which led to the national debt surpassing $16 trillion this week.
This should be setting off alarms all across the nation. What does the administration do in response? Ignore the problem, concentrate on the Democratic convention where delegates fight over the inclusion of God, and Jerusalem as capital of Israel in their platform.
Then we were treated by Sandra Fluke, the nation’s largest consumer of condoms warning us women will die in emergency rooms if Romney wins the election, preceding William, ‘held in contempt, husband of the year, and cigar aficionado’ Clinton telling us Obama is the one to lead the way forward. Really?
Here is the danger of the $16 trillion dollar limit being breached while Democrats avoid it like church. Fiscal 2012 will produce a $1.3 trillion deficit based upon spending of $3.8 trillion with revenues of $2.5 trillion.
Mandatory spending which includes entitlements such as Social Security, Medicare, and Medicaid added to the interest (which is at record lows) EXCEEDS income. 100% of Discretionary spending which includes security like the military, and non-security agencies like education are being funded with borrowed money.
That’s right, 100% of government operations; military, bureaucracies, congress, judicial, and executive branches are funded with 100% borrowed money.
While surpassing $16 trillion we now have debt that is 104% of our GDP. The world economy is slowing and the response is that central banks need to print more money. Combined with Obama’s failed economic policies, this is the recipe for another financial collapse.
Instead of attacking the problem, balancing budgets, cutting spending that those ‘extremist’ Tea Party people, and conservatives have been calling for the past three years, congress simply raises the debt ceiling and borrows more.
What is Obama proposing as the solution? Raise taxes, spend more on entitlement programs, roads, bridges, and runways while slashing the military and our national defenses at a time of harrowing danger in the world. None of this makes any sense.
The fact is Obama is out of ideas. With only 8% of his administration with real world private sector experience, and conforming without waiver to strict leftist ideology that bigger government is the solution; how would the collapse of the economy be avoidable?
The liberal mass media ignores the alarms that the $16 trillion debt has set off. They blatantly ignore the reality of our dire situation, and simply regurgitate Obama and Democratic talking points. It is becoming harder to conceal the truth, and as a friend of mine just shared; Obama’s economic performance has been so bad that his support among journalists has slipped all the way to 95%.
The debt at today’s low interest rates consumes $280 billion. If Bernanke prints more money devaluing the dollar further, and the dollar collapses driving up interest rates with inflation, the interest payment alone will be more than entitlements.
We only know what Romney and Ryan are promising, we won’t know what they will do once in office, however they are worth voting for because we are living what Obama can deliver due to his strict ideology.
America is at crisis level and the Democrats are worried about how Sandra Fluke’s contraceptives will be paid. Time to elect a person with private sector experience, budgeting acumen, and real world plans to prevent collapse. Otherwise we’re all getting what Ms. Fluke does with her taxpayer paid contraceptives.
The opinions expressed here are solely those of Fritz Pfister or identified sources, and not necessarily those of RE/MAX Professionals of Springfield or RE/MAX International.