The 800 lb. Gorilla - Increasing Jobs = Leveling the Global Playing Field

We can push all of the notions in the world about a service oriented creative economy, but if we don't get consumers back, then we won't grow the economy again. What does it take to grow consumption? People have to have money. How do people get money? As the EF Hutton commercial used to state, "They EEAARRNN IT!!!"

How do they earn it. The average person earns money through labor (a job), We have so debased our real job market, that it is no longer functioning properly. The National average real wage (Based on the Consumer Price Index) has not risen in almost two generations and I will bet you that it has actually fallen "substantially" in our area over that same time.

Below is an excellent article that I have read today that shows ten signs that we are in a free fall and I mean free fall in our economy.

10 Worrying Signs Obviously Missed During Tuesday's Market Rally - http://seekingalpha.com/article/272761-10-worrying-signs-obviously-missed-during-tuesday-s-market-rally?source=email_macro_view

Yes, call me an alarmist. Somebody has to be. But look at the real news. Turn off the TV and get on your computer and use the search engine. It will give you a completely different perspective than the pablum.

...According to the latest S&P/Case-Shiller price index the National Index fell 4.2% over the first quarter alone, and is down 5.1% compared to its year-ago level. This means housing prices have now fallen by more than they did during the Great Depression. It also means the housing market is not recovering anytime soon and declines seem to be accelerating.

...Tax revenues were 14.9 percent of G.D.P. in both 2009, and 2010. This is substantially less than the 18.5% postwar average. This means the economy is still struggling and one of key ways to slow the deficit is sorely lagging.

...The Financial Times bureau chief, Jamil Anderlini, came out with a piece showing how the growth in the Chinese property market is not sustainable. Given that some estimates show China now consumes up to 50 percent of key global commodities and materials such as cement, iron ore, steel and coal and Chinese real estate is the main driver of that demand; the bursting of this bubble or even a significant slowdown will have worldwide ramifications.

... May Consumer Confidence fell to 60.8. Estimates were for a reading of 66.3. Chicago PMI (The National outlook for Purchasing Manager's Index) was released and showed a reading of 56.3. This was much lower than the expected projection of 63. The previous reading was 67.3. This seems to show a decelerating rate of economic growth, confirming 2nd QTR GDP estimates probably need to come down further.

On the China Outlook -- Three worrying signs from China. Massive drought has caused food prices to rise a reported 20% this month in Shanghai. Chinese authorities also allowed energy producers to bump prices in some regions as the country is facing the worst energy shortages in a decade. Finally, land prices, which are already down 20% for the year, could fall further as Chinese developers may be forced to write down assets.

All of these people that want to tout the Global Economy, as in expansion helping the United States, better take some smelling salts and realize that if we don't take care of our our own sovereign interests, then we are going to be in a world of hurt. This is the time to place tariffs on labor to protect our labor base and this is the time to start prospecting for natural resources on our continent to protect our national interests. We are so vulnerable right now it is unbelievable.

What do you think China consuming up to 50 percent of key global commodities and materials such as cement, iron ore, steel and coal means? If you carry that out what will it mean for us? Competition for Global Natural Resources is going to cause the prices of commodities to sky rocket. And the Fed printing all of this money is only going to exacerbate that!!!

At a time when we need to be searching for stability, our national leaders are creating instability! We need to demand that they seek stability!