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Sunday, November 11, 2012

Economic Stories of Relevance in Today's World -- November 11, 2012

Share This Massive List Of Post-Election Firings And Layoffs With Everyone You Can - Economic Collapse Blog  - Michael - November 9th, 2012 - The victory by Barack Obama on election night has resulted in a huge wave of firings and layoffs all over America. A large number of businesses seem to have suddenly shifted into panic mode. The number of layoff announcements that we have seen in the last 48 hours has been absolutely shocking. So why is this happening? Well, the truth is that the federal government is absolutely suffocating small businesses all over America with rules, regulations and taxes. If you have never tried to run a small business, then you have no idea how oppressive this system actually is for people that are trying to run small businesses successfully. It has steadily gotten worse over the years no matter who has been in the White House and no matter who has controlled Congress. So we shouldn't put 100% of the blame on Obama. Bush massively expanded government and made things harder on small business people too. But what many small business people were looking for on this election day was just a little bit of help. Many were desperately holding out hope that Obamacare would be repealed so that they would not have to get rid of some of their employees. Many were hoping to get a little bit of relief from the crippling regulations and taxes that are absolutely crushing them. But now that Barack Obama has been given another four years, they understand that there is no hope on the horizon and that things are only going to get worse. So they are making the hard decisions that they feel are necessary in order to survive in this economic environment.                     And I certainly don't blame them. You only want to have employees if you can make a profit on them. And in this environment it is getting harder than ever to make a profit on an employee. You see, the truth is that what you cost your employer goes far beyond your salary or your hourly wage. I think many of you would be absolutely shocked if you learned how much it actually costs your employer to employ you. And now thanks to Obamacare, that cost is going to go up even more.                 Many businesses are not even feasible at all in this economic environment. Many small businesses had been holding out hope that somehow this election might turn things around and make it possible for them to keep going, but when Obama won it was kind of like the straw that broke the camel's back.                 You can't do what the federal government and the state governments are doing to us and expect to have a thriving economy. They are choking the life out of us.                     New businesses and small businesses are supposed to be at the heart of our economic system. Unfortunately, the environment that has been created is absolutely killing them. This is a recipe for disaster.                  In a previous article, I noted that the number of jobs created at new businesses in 2010 in the United States was less than half of what it was back in the year 2000.                 Now we can expect that number to get even worse and we can expect large numbers of small businesses to shrink in size or close their doors completely.                The following is a list of some of the post-election firings and layoffs that we have seen since Tuesday night...

How Many Businesses Have Announced Closings or Layoffs Since Obama Won A Second Term? - The Blaze - November 8, 2012 - Do elections have consequences? If you have been paying attention to the financial markets, you might think so. Wall Street has had two horrible days since President Obama won a second term.               However, stock prices are not the only thing taking a hit. It appears that the job market is also suffering. In the last 48 hours, the following major corporations have announced layoffs in America (links take you to news stories about the layoffs – with details from the companies): Energizer, Exide Technologies, Westinghouse, Research in Motion Limited, Lightyear Network Solutions, Providence Journal, Hawker Beechcraft, Boeing (30% of their management staff), CVPH Medical Center, US Cellular, Momentive Performance Materials, Rocketdyne, Brake Parts, Vestas Wind Systems, Husqvarna, Center for Hospice New York, Bristol-Meyers, OCE North America Darden Restaurants, West Ridge Mine, United Blood Services Gulf

America Has Shifted To The Left And The Culture War Is Over - End of the American Dream Blog - Election day 2012 showed once again that America is moving steadily to the left.  Yes, Barack Obama defeated Mitt Romney, but the underlying dynamics run much deeper than that – especially when you take a look at social issues.  Older voters are more conservative when it comes to social issues, but they are slowly dying off and being replaced by younger voters that tend to be much more liberal.  So on a whole host of controversial social issues including gay marriage, abortion, immigration and drug legalization we are seeing a dramatic shift take place.  The American people as a whole are rejecting traditional values and are embracing a more “progressive” view of morality that is being promoted by our education system, the entertainment industry and the federal government.  Those that want to cling to the morality of the past are being told that they “are on the wrong side of history” and that they need to come into the 21st century.  On election night I spent a lot of time watching CNN, and even their “conservative pundits” were trashing those that still believe in traditional values.  Sadly, it is likely that those that believe in traditional values are going to have a harder and harder time trying to win national elections.  It is much easier to get people to change their minds about economic issues or foreign policy issues than it is about fundamental questions of right and wrong.  The demographic tidal wave that is pushing America to the left is not going to stop, and it would literally take a miracle to see this country start to move back in the direction of traditional values. (Read More.....)

Fed Report: 100% Chance of Recession - - Mac Slavo - November 7th, 2012 - Now that the election is over, the propaganda media can back off the burying of those critical stories that they couldn’t be bothered to report in the lead up to the re-election of President Obama.                What are we talking about?                    For starters, the Federal Reserve’s recent report, which received nary a comment from the political and financial pundits on television.                   While the economy was on the minds of most voters last night, what they didn’t know may have very well swung the election to one candidate over another.                 And this particular tidbit of data is as important as it gets when we’re talking about economic health:

Moreover, if you look at the real numbers behind the numbers, like the rate of real inflation, and bounce those against this purported economic growth you may be surprised to find that we never exited the recession!                           Look at the chart below. You see that red line? That’s the government’s official GDP, a measure for economic growth. The government shows it in positive territory and its been heralded without question by the mainstream machine as the proof for an economic recovery.                   Now look at the blue line. That’s the unofficial GDP as calculated by economist John Williams using algorithms that account for distortions in the way government calculates inflation.

FEMA Disaster Centers Shut Doors 'Due to Weather' - DNA Info New York - November 7, 2012 - TOTTENVILLE — They fly into disaster areas, but flee from raindrops.                   FEMA disaster recovery centers in Hurricane Sandy-ravaged sections of the city that were supposed to provide assistance to hurricane victims went MIA Wednesday morning, posting signs saying that they were closed due to the approaching Nor'easter.                   The temporary shuttering of the facilities, which help victims register for disaster relief, as well as city food distribution centers come even as many of those still reeling from the monster storm were not told that they had to leave the battered areas.            On Tuesday, Mayor Michael Bloomberg said that residents in the low-lying portions of Staten Island, Queens and Brooklyn were advised to leave ahead of the nor'easter, which could hit the city with 60 mph gusts and several inches of rain Wednesday afternoon, but that the evacuation was not mandatory like the one issued for all of Zone A ahead of Sandy.              “We do not believe that it’s necessary to evacuate people,” said the mayor Wednesday.                      The move left residents of the storm-ravaged areas fuming.                    "The storm is coming. We don't know how hard it's going to hit us," said Jenny Cartagena, 46, who found the FEMA center in Coney Island closed Wednesday when she went there looking for food. "I need some help now."                  Because the FEMA centers were located with food distribution and warming services, some residents who arrived there were confused by the closed centers.

Fed QE3 May Hit $1 Trillion as Fiscal Deadlock Persists - Bloomberg - Caroline Salas Gage and Jeff Kearns - Nov 8, 2012 - The Federal Reserve stands as the only source of policy support for a U.S. economy burdened by 7.9 percent unemployment after the presidential election preserved the balance of power between Democrats and Republicans.         “If you’re going to get stimulus, it’s got to come from the Fed,” said Paul Edelstein, the director of financial economics at IHS Global Insight in Lexington, Massachusetts. “They’re the only game in town.”...                           fiscal boost to the economy is probably off the table as President Barack Obama negotiates revenue increases and spending cuts with leaders of a Democratic-controlled Senate and a House of Representatives led by Republicans, Edelstein said. That may leave only the Fed in the position of trying to boost the economy, and its third round of quantitative easing may extend through next year and climb past $1 trillion, said economists at JPMorgan Chase & Co. and Pierpont Securities LLC.        

Foodstamps Surge By Most In One Year To New All Time Record - Zero Hedge - Tyler Durden - November 10, 2012 - While there had been speculation that the BLS may delay the release of its October nonfarm payroll number until after the election, it turned out there was no reason to worry. Perhaps this is because the number, while at stall speed, was not quite as horrible as some had expected (even if the change in average hourly earnings did tumble to new all time lows) and so boosted Obama's reelection chances. There was, however, another closely tracked number which perhaps is far more indicative of the economic "growth" in the past 4 years, which certainly had a delayed release. The number of course is that showing how many Americans are on foodstamps, and usually is released at the end of the month, or the first day or two of the next month. This time the USDA delayed its release nine days past the semi-official deadline, far past the election, and until Friday night to report August foodstamp data. One glance at the number reveals why: at 47.1 million, this was not only a new all time record, but the monthly increase of 420,947 from July was the biggest monthly increase in one year. One can see why a reported surge in foodstamps ahead of the elections is something the USDA, and the administration may not have been too keen on disclosing.

Chart Of The Day: When $0.99 Becomes Unaffordable, We Have A Problem - Tyler Durden - November 8, 2012 - Earlier today, fast food juggernaut McDonalds reported same store sales for the month October. At -1.8%, this number was well below expectations of -1.1%, and a drop from September's 1.9%. It was driven by a 2%+ drop in comp store sales across all locations: US, Europea and APMEA, with the US performing just as bad as Europe. Most importantly, this was the first monthly drop in MCD comp sales since March 2003! So our question is: at what point does the perpetually self-deluded US population finally admit to itself that when even 99 cent meals are no longer affordable, that this country has a problem? Charting the last 4 years of McD sales, and eagerly looking forward to 4 more years.

US employers post fewest job openings in 5 months in September; layoffs also fall - AP through Fox News - November 06, 2012 - U.S. employers posted fewer job openings in September after advertising more in August than first estimated. The report suggests hiring will likely remain modest in the coming months.                   The Labor Department said Tuesday that job openings dropped by 100,000 to 3.56 million, the fewest in five months. August's openings were revised up to 3.66 million.                    The number of available jobs has jumped about 63 percent since July 2009, one month after the recession ended. It remains well below the more than 4 million jobs a month advertised before the recession began in December 2007.                    The job market remains very competitive. With 12.1 million people unemployed in September, there were 3.4 unemployed people, on average, competing for each open job. In a healthy economy, that ratio is roughly 2 to 1.                      Employers filled fewer available positions in September than in August. And the number of people who quit fell to the lowest level in 10 months. That's a bad sign for the job market, because it suggests workers see fewer opportunities to move to a better job. Workers tend to quit when they have other job offers.                      One positive sign in the report: Layoffs fell.
Hiring looked a little better in October, according to the Labor Department's employment report released Friday. Employers added 171,000 jobs last month and hiring in August and September was better than first estimated.

Fiscal Cliff Explained by Mike Maloney
- (Words from the Gerald Celente Blog) - Peter Schiff and Ron Paul have been calling this "fiscal cliff" for years and years. But general public are too oblivious to heed the advice. Mike gets lost in details that have nothing to do with the fundamentals of money. What is money & how money is created and traded. The trap was set in the wee hours of Dec night in 1913 with passage of the Federal Reserve Act. That trap was sprung when Nixon, w/o any Constitutionally granted authority, reneged on international trade agreements to tie US Dollars to gold reserves. The ability to create money from nothing was thus borne and the collapse of economies around the globe begun.


mbg said...

But shouldn't companies continue to hire, profits be darned,just so employees can have wages and health insurance? After all in our discussion on the election you responded to my comments with,
"What we need from business is job creation (putting people back to work) and to operate in the interests of this country (USA) that they are doing business in...You can yank their charter"
Again I am not convinced our views differ greatly, but relate those comments to this piece.
How long before we see the Obama administration threaten some "charter yanking" is companies layoff or refuse to hire (or drop health benefits). Of course this won't be done to Obama friendly companies - you know the ones that have already received the Obamacare wavers. That is scary as hell.
Because with the lack of education on economics the average Joe has in this country the majority will believe that you can fix the job situation by decree. Heck 51% voted for a president who by any measure has completely failed. They'll believe anything he tells them.
Again I say what rises from the ashes that are surely coming?

James Thomas Shell said...

You mistake me for an Obama supporter. And while I don't support Obama, I also don't support the Status Quo, "I've got mine, you get yours" policies of the Republicans. Especially when they climb the ladder and then pull it up behind them so that you don't have access.

That is the system of both parties. 'Dems get into office and take care of their contributors, 'Pubs get into office and take care of their contributors. The rest of us are just cannon fodder.

Many of the 51% didn't want to go back to the Bush policies. Can you blame them? Also, many looked at Romney's Hedge Fund activities and didn't trust him. Can you blame them?

I saw where upwards of 8 million Republicans didn't vote. Why didn't members of the Republican Party go vote? Maybe the Mormon thing had something to do with it. Maybe that is a lesson that could be learned about having a viable candidate?

Obama had less support this time, but the Republicans had less support than with McCain or Bush's run in '04. Republicans lost in '08 and virtually tied in '04. What is the lesson to be learned there? We aren't appealing.

Where does this lead. It leads to social unrest. What has been going on in New York is an example of what could be coming to a community near you. Who is to blame? We are all to blame... some more than others.

It is called Crapping your bed. It has been done by both parties and it is all about extremist and divisive politics. This isn't sports. This is life. And I have never been one to get excited one way or the other like fools do. Life will go on. We just need to figure out how to move forward to succeed. That doesn't happen by insisting upon moving forward with a message that has led to failure.

Harry Hipps said...

The thing that mystifies me about the GOP is that, despite the talk about going back they never, never talk like Reagan. Reagan, most of all was passionate about the exceptional character of America and the power of the people to build our futures. He preached free enterprise and was able to get people to stay with his course even when the carping in the media got intense. Compare this with Romney's pitch that he will get you a better paying job (which is good but not particularly inspirational) and you see the difference between an inspirational leader and a crass pitchman.
The Republicans need to take the general themes of free enterprise, truly egalitarian justice, power from the ground up and promote it and adjust their policies to really bring it about. It's no wonder fewer people want to fight for a few tax cuts and some economic theories most don't understand.