Tag Archives: Unemployment
Will there be a statewide outcry for Tea Parties in North Carolina this April? There should be because at this point nothing has changed!
Hat Tip to Mike Church for this idea for a post.
NC’s current debt/income ratio is roughly 85%!
Let’s put that in perspective. Historically, in order to get a 30-yr mortgage on your home your debt/income ratio had to be around 25%. Even today, with the loose lending standards that led to the housing bubble, to qualify for an FHA government backed mortgage the HIGH end debt/income ratio is 41%. And the massive amount of sub-prime mortgage defaults are bringing those ratios back closer to historical levels.
As of 12/13/2010 NC’s revenue/spending ratio is
That means North Carolina is spending 33% more than it takes in from you and me in taxes.
Now is not the time for grass root groups to sit back. We must rally together and say collectively “we have not yet begun to fight!”
And Boehner, the soon to be Speaker of the House, goes on 60 minutes and announces a 5% cut? Really? And maybe if they would have had enough dixie cups they could have bailed out the Titanic. Mr. Speaker-Elect this IS NOT the answer we are looking for.
Y0u must start in your town. I am going to drop a challenge to any and all takers. Start asking questions in your town. Find out as best as you can what your debt/spending, and debt/income ratio is in your town or city. We must demand fiscal responsibility from our local, state, and national leaders! But it starts in your town.
More than 20% of Detroit’s 139 square miles could go without key municipal services under a new plan being developed for the city, with as few as seven neighborhoods seen as meriting the city’s full resources.
Hat tip to Mike Church Show on this one.
MATTHEW DOLAN WSJ Dec 11th
What does a basic year of long-term storable food look like? I have looked extensively on the internet and this is honestly one of the best blog posts I have been able to find. Trying to figure out how to get started storing a year’s worth of viable food for an emergency situation can be daunting.
Now I will be honest this is an ultra basic year’s worth of food that would allow someone to survive. Most “preppers” will recommend having a much better variety of foods on hand and I could not agree more. But if you are on a limited budget like my family is, what you see in this picture and this link to a post from the American Preppers Network is viable to begin on practically any budget.
If you are not preparing your family now for the coming economic collapse…what will it take for you to start?
You are running out of time.
In your household when the checking account is low, is that typically when you go have an expensive dinner, and a night out on the town? No of coarse not. You choose to stop spending money. You and I do not have a legal means of creating money to place in our checking account. The US Federal government does, in a round about way. A hybid creation that is a part private, part government entity called the Ferderal Reserve.
“Its duties today, according to official Federal Reserve documentation, are to conduct the nation’s monetary policy, supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to depository institutions, the U.S. government, and foreign official institutions.Wikipedia
The Fed ”maintains the stability of the financial system” by expanding and contracting the amount of money in circulation, and setting interest rates.
“Some economic theories have been developed that support the idea of expanding or shrinking a money supply as economic conditions warrant. Elastic currency is defined by the Federal Reserve as:
Currency that can, by the actions of the central monetary authority (The Ferderal Reserve), expand or contract in amount warranted by economic conditions.”WikiPedia
A fancy title for it is Quantitative Easing. Watch the above video for a brief but good explanation of “quantitative easing”. And bottom line whether it creates money digitally, or by having the US Treasury department print it, the Ferderal Reserve does have the ability to create money. Our country moved away from “the Gold Standard” where the amount of paper and coinage in the system had to be equal to the amount of gold on hand, to basing the worth or value of our money, on the Gross Domestic Product or GDP of the United States.
“is the market value of all final goods and services made within the borders of a country in a year” WikiPedia
Anyone that has purchased a home should have had a discussion at some point with their lender about their debt to income ratio. It is a comparison of one’s debt’s, to one’s income. Your credit score can be very negativly impacted if your debts outweigh your income. (This is budget/finance 101 for everyone outside of Washington D.C., all those inside D.C still do not understand this concept)
The concept of a debt to income ratio applies to countries as well. Our country has reached a point where our national outstanding debt is virtually the same as our GDP, $13-14 Trillion. We are litterally producing in a year as a whole, exactly as much as we owe. Our country is “living paycheck to paycheck”
Then in November 2010 the Federal Reserve announced QE2, a $600 billion buy up of long-term U.S. Treasury bonds. That is equivalent to me paying my mortage payment with a high interest credit card. It is a short term fix, that exponentially increases the amount of debt you have. And Bernanke indicated on 60 Minutes that he is not ruling out QE3 either. Which now makes Bernanke guilty of perjury, because in June of 2009 when Bernanke was asked by Rep. Hensarling if the Federal Reserve would monetize the debt, Bernanke unquivically answered no. You can view the 2 hr testimony here as well as see a transcript. http://www.c-spanvideo.org/program/StateoftheUSEconomy15
The US also announced in November it will substantially increase its contribution the International Monetary Fund for the European bailout.
”Paul Donovan, Deputy Head of Global Economics at UBS, wrote “In May 2010, the IMF and the EU announced the creation of the European Stabilization Mechanism (ESM), a 750 billion euro ($980 billion) lending facility to provide lines of credit to insolvent European countries. On December 1, 2010, Reuters reported that “The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment of money from the International Monetary Fund”
So since February of 2008: President Bush spent $152 billion on the Economic Stimulus Act of 2008 which was designed to “avert an economic resesssion”.
October 2008: President Bush spent $700 billion on TARP bill (Troubled Assest Relief Program) ”to purchase distressed assets, especially mortgage-backed securities, and make capital injections into banks.” WikePedia
February 2009: President Obama spends $800 billion on The American Recovery and Reinvestment Act (aka the Stimulus, or QE1, Quantitative Easing Part 1). This was a 1500 page bill which was intended to create jobs and promote investment and consumer spending during the recession.
In November The Federal Reserve spends $600 billion on QE2 and says QE3 is coming.
And the US continues to pour money into the IMF to bail out Europe.
We are continuing to pile up debt against a GDP that shrinks everytime unemployment increases.
I do not even think Einstein could make this math work. And IT WILL NOT END WELL. The continual printing of currencey in response to an increase in spending is the essence of unsustainability. It cannot last, and many experts are now of the opinion we have passed the point of no return to hyperinflation. A state where money loses its value very quickly, and cause the prices of everyday items to skyrocket.
It happened in Germany after World War I.
It happened in Argentina in 2001:
It happened in Zimbabwe in 2008:
It is beginning now in Greece and other European countries.
Please use the links you find on this site to get you and your family prepared.
Over one year, several commodities that are used in the manufacturing process of 1000′s of the items you buy on a monthly basis have increased in price percentage by double digits:
Crude oil: 17.8%, Heating Oil: 22.8%, Unleaded Gas 18.7%, Corn 44.2%, Wheat 32.9%, Cotton 79..6%, Sugar 29.1%
Anything you purchase that is made in, or packed in plastic; that requires oil. And if you think the corn price just means you will have to cut back on popcorn think again. According to the National Corn Growers Association approximately 80% of all corn grown in the US is consumed by domestic and foreign cattle. I would also challenge you to examine the ingredients of most of the items in your pantry. See anything with high fructose corn syrup in it? Please visit the following site to see how you can protect your family from these inflationary prices.
In a time in our history when the US economy is inter-woven with every other major economy this is very troubling. It is similar to the old cold war cliché of “mutually assured destruction”. Tying the worlds economies together was supposed to be a “guarantee” that all the major powers would make prudent decisions in foreign policy. Now it may contribute to our summer of “rehab”.
August 10, 2010
“The Labor Department greatly revised its headline number for June, widening the job loss figure for that month to 221,000 jobs, from 125,000. Private sector hiring in June, originally reported at 83,000, was lowered to 31,000″
The people that are supposed to keep track of the number of jobs created from month to month got the number of private sector jobs wrong by 168 percent last month. So the “it’s getting better” number that was reported in June was actually much worse. With example after example of this type of incompetence, is it any wonder that polls show that American’s don’t trust their government?
The private sector isn’t creating enough jobs to absorb the new entrants into the labor force each month, are you feeling the recovery yet? The only reason the unemployment rate held steady in May and June is that nearly 400,000 stopped looking for jobs. When one starts to look at the jobs created, the picture doesn’t get any rosier. As the Wall Street Journal points out;
“Private employment did inch up in July by 71,000 positions, with a nice 36,000 pick-up in manufacturing jobs, but even that number is deceptive. The vast majority of those jobs were in the auto industry. Alas, not every struggling manufacturing plant in America can have a lifeline to the federal Treasury.”
At a time when expect our government to be encouraging companies to hire, President Obama’s policies do the opposite. From the coming tax increases to President Obama’s recently signed health care legislation, each policy increases the already high costs associated with adding a new employee. It costs a NJ company $74,000 to put $44,000 in an employee’s pocket, and so companies in that position aren’t going to hire. What happens when taxes go up significantly next year? More companies will be doing more with less because they have to and President Obama’s policies have ensured that. How’s that summer of recovery working out for you? For more and more people it isn’t, and a majority of Americans are placing the blame squarely in President Obama’s lap.
What does our President have to say about all of this? The world according President Obama proclaims that it is all George W. Bush’s fault. This continual demagoguery might rev up the base, but it’s losing independents in droves. It’s also backfiring.
In 2008 then candidate Obama supported the initial “stimulus” bill, passed by a democratic Congress and signed by President Bush. When candidate Obama became President Obama, he took the stimulus idea and then doubled down with the passage of the budget busting American Recovery and Reinvestment Act of 2009. After complaining about fiscal responsibility, President Obama makes Bush look like a piker when it comes to running up deficits. With the national debt sky rocketing and unemployment high, Americans are taking notice. The mood in America is angry and the White House’s summer of recovery is about to become the fall of Obama’s discontent.
Aaron Gee is a US based IT consultant whose personal blog can be found at http://www.foundingideals.com
C-NBC- Economy’s recovery in jeopardy from its worst downturn since the 1930′s, while Michelle Obama flys to Spain on Air Force 2 and 70 secret service agents with your tax dollars.
131,000 Job Losses; 9.5% Unemployment Rate
Let’s fly to Europe, with 40 of our best friends, 70 secret service agents, and a 15 car motorcade, on an all-inclusive luxurious vacation in Spain’s 5-Star Hotel Padiema in Marbella. It only costs $2500/night!
This should make your head explode no matter what party you belong to!
Sure beats the Red Roof Inn my family and I stayed in when we felt compelled to drive to DC and protest the Health Care bill, that was passed against the wishes of 60% of the American people!