Economic Stories of Relevance in Today's World -- September 18, 2011

The International Forecaster - Bob Chapman - The income of the typical American family long the envy of much of the world has dropped for the third year in a row and is now roughly where it was in 1996 when adjusted for inflation.

The income of a household considered to be at the statistical middle fell 2.3% to an inflation-adjusted $49,445 in 2010, which is 7.1% below its 1999 peak, the Census Bureau said.

The poverty rate clicked up again this year. WSJ's David Wessel, DJ Newswires' Neal Lipschutz and MarketWatch's David Callaway discuss on The News Hub whether the government needs to intervene to the rising number of Americans affected. The Census Bureau's annual snapshot of living standards offered a new set of statistics to show how devastating the recession was and how disappointing the recovery has been. For a huge swath of American families, the gains of the boom of the 2000s have been wiped out.

Earnings of the typical man who works full-time year round fell, and are lower adjusted for inflation than in 1978. Earnings for women, meanwhile, are a relative bright spot: Median incomes have been rising in recent years and rose again last year, though women still make 77 cents for every dollar earned by comparably employed men. The fraction of Americans living in poverty clicked up to 15.1% of the population, and 22% of children are now living below the poverty line, the biggest percentage since 1993.

To be sure, there are other measures of American financial health that are more positive. The nation's per capita net worth, for instance, hit $169,691 at the end of 2010, according to the Federal Reserve, up from $147,889 in 2007. Much of that gain is in the form of stocks, retirement accounts and other investments. The biggest asset of most American families is their homes, and those have declined in value in recent years. And there are those who argue the Census report offers a flawed gauge of living standards. For example, the Census Bureau adjusts for inflation using government measures that attempt to reflect the improving quality as well as price of goods. But these inflation adjustments are imperfect and don't reflect advances in medicine, the wonders of the Internet or the improvements in air quality.

Deborah Bagoy-Skinner and her husband, Chester, are among the faces behind the numbers. Four years ago, the Tucson, Ariz., couple owned their home and had a combined income of around $100,000, much of which came from Mr. Skinner's job conducting safety training classes for a heavy-equipment maker. They lost their three-bedroom home in 2007 during a two-year spell of unemployment, and have since downgraded to a two-bedroom rental. Through 2008 and 2009, the darkest days of the recession, they sold everything from golf clubs to antique nickels to pay rent and bills. Today the couple is well above the poverty line: Mr. Skinner makes about $65,000 a year doing contract safety classes. But with their savings wiped out it will be a long road back, and likely they won't own another home or ever make as much as they once did. "We've pretty much accepted that that probably won't happen," she says.

The Census report, viewed as a key gauge of American prosperity, comes at a time of growing anxiety about the health of the U.S. economy and is likely to play into the political dialog this election year. With more than 14 million unemployed, many of them out of jobs for extended periods, the recovery is faltering and the administration and Congress are debating how to respond. Consumers account for some 70% of demand, so thinner pay checks are a major problem for anyone trying to boost growth and get the unemployed back into jobs.

The Census report was studded with data that underscore the economic strains across society in the aftermath of the worst recession in more than half a century. Poverty rates among people younger than 18 grew to 22%, compared with 20.7% the year before, while the percentage of Americans lacking health insurance edged up to 16.3%. Echoing a longer-term trend that is in part a reflection of an aging population, the share of people covered by private insurance fell last year, while the share of people on government programs such as Medicare and Medicaid increased. As families struggle to make ends meet and young workers navigate the moribund labor market, many have turned to each other. According to the Census report, 5.9 million Americans between 25 and 34, or 14.2% of that group, lived with their parents in spring 2011, compared with 4.7 million before the recession, or 11.8%. Meanwhile, the gap between the best-off and worst-off Americans remained largely unchanged. The top fifth of households accounted for 50.2% of all pre-tax income; the bottom two-fifths got 11.8%. In 1999, the top fifth claimed 49.4% and the bottom got 12.5% of the income.

The Census Bureau said 15.1% of Americans were living below the poverty line, set at $22,314 for a family of four in 2010. That's up from 14.3% last year and from 12.5% in 2007, before the recession. The official poverty rate overestimates the number of people living in poverty because it doesn't count many government anti-poverty programs, such as subsidized housing, food stamps and the Earned Income Tax Credit.



5 most shocking Census facts about growing poverty in the U.S. - The Raw Story - Kase Wickman - September 13, 2011 -
1. The number of those living in poverty is the highest in Census history - the poverty rate rose for the third consecutive year, to 15.1 percent.
2. We were richer last millennium - Average income took a dramatic hit, declining 6.4 percent since 2007
3. Women still earn a fraction of what men make - a woman working full-time for a full year earned approximately 77 percent of what a man working the same amount of time in the same job was paid
4. There's no safety in numbers - About 9.2 million families (11.7 percent) were under the poverty line, up from 2009's 8.8 million families (11.1 percent).
5. Everything's bigger in the South — including the poverty rate - the South experienced an increase in poverty. In 2009, 17.6 million (15.7 percent) were under the poverty line. By 2010, they had added 1.5 million to that number, sending the poverty rate to 16.9 percent.


Payrolls Decreased in 30 States in August While Jobless Rate Climbed in 26 - Bloomberg - Bob Willis and Shobhana Chandra - Sep 16, 2011 - Payrolls fell in 30 U.S. states in August, led by New York and Georgia, while the jobless rate increased in 26, showing the slump in hiring is broad-based... Employers cut staff by 22,700 workers in New York last month, and by 18,200 in Georgia, figures from the Labor Department showed today in Washington. Nevada continued to lead the nation in unemployment with a rate of 13.4, up from 12.9 percent in July... The economy needs to generate more jobs to spur income growth after consumer spending stagnated in the second quarter, raising concerns of another recession. A Labor Department report on Sept. 2 showed employers added no workers to payrolls last month, the weakest reading since September 2010, and the jobless rate held at 9.1 percent.


US Real Unemployment Rises To 22.8% - Before It's News - Infowars.com - Kurt Nimmo - September 16, 2011 -The Census Bureau’s annual report released Tuesday offers a snapshot of the economic well-being of U.S. households for 2010, when joblessness hovered above 9 percent for a second year. It comes at a politically sensitive time for President Barack Obama, who has acknowledged in the midst of a re-election fight that the unemployment rate could persist at high levels through next year…. Measured by total numbers, the 46 million now living in poverty is the largest on record dating back to when the census began tracking poverty in 1959. Based on percentages, it tied the poverty level in 1993 and was the highest since 1983...   In fact, the real unemployment figure is 22.8%, according to John Williams’ Shadow Stats. During the last Great Depression, the unemployment rate peaked at 25 percent in 1933.


“During Great Inflations, Societies Turn On Themselves” And Prosecute Minorities … And We’ve Got A LOT Of Hidden Inflation - Washington Blog - September 15, 2011 -

Inflation Is A Tax

The father of the theory that government stimulus is the way to fight severe downturns – John Maynard Keynes – famously said about inflation:

By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.

Fed chairman Ben Bernanke also admits that inflation is a tax on the American people:




Money printing creates inflation.

But quantitative easing doesn’t help anyone but the biggest Wall Street companies (and see this, this and this). We can’t inflate our way out of our debt crisis, and without prosecution of Wall Street, all of the stimulus in the world won’t work. Indeed, Bernanke knew in 1988 that quantitative easing doesn’t work.
(War also causes inflation, and we’ve been on an endless series of wars over the past 10 years.)

Stimulus Versus Austerity: A False Debate

And as I’ve repeatedly noted, the never-ending fight between Keynesian stimulus and debt-cutting is a false debate. It is really a debate between helping the American people or continuing policies which simply redistribute wealth upwards to the richest .1%.
Stimulus could work … if it went to the American people and Main Street, instead of the Wall Street fatcats. And the Fed could easily deploy trillions into the economy if it simply stopped paying banks to park their excess reserves at the Fed.


Obama Team Backed $535 Million Solyndra Aid as Auditor Warned on Finances - Bloomberg - Jim Snyder and Christopher Martin - Sep 12, 2011 - Two months before Obama’s visit, accounting firm PricewaterhouseCoopers LLP warned that Solyndra, the recipient of $535 million in federal loan guarantees, had financial troubles deep enough to “raise substantial doubt about its ability to continue as a going concern.”... The Obama administration stood by Solyndra through the auditor’s warning, the abandonment of a planned initial public offering and a last-ditch refinancing where taxpayers took a back seat to new investors. That unwavering commitment has come under increasing scrutiny since the company’s travails culminated in its filing for bankruptcy protection on Sept. 6 and a raid on its headquarters by the Federal Bureau of Investigation two days later... “People including our government put blinders on and did not want to believe in the obvious,” Jonathan Dorsheimer, an analyst in Boston for Canaccord Genuity Inc. of Vancouver, said in an interview with Bloomberg Government. “The fact that the government chose Solyndra as their white horse is mind- boggling.”


Gerald Celente - Yahoo! Finance - 15 September 2011 : whoever have ever seen a summer like this ?1 Gold fluctuating a $200 a month , no the world is becoming very very wary and concerned that there is no way out of this mess if you take the United States for example yes there is ( a way out of this mess) cut military spending says trends master Gerald Celente , but there is nobody who seems to want to talk about it except Ron Paul cut military spending what we are talking about 1.5 trillion a year ! and how about taxing the billionaires , that makes sense to me , and stop the free trade , this is what got us into this says Gerald Celente exporting our manufacturing plants into slave labor countries and bringing back the finished products , probably October will see the big crash says Gerald Celente , it usually happens when people come back from the summer holidays and start facing reality , they are talking about double dip recession it is not a double dip recession this is a Depression

Will Hickory Airport Operators be forced to liquidate -- and why is no one talking about this?!?!?

In information sent to me this evening, we see that the operators of the Hickory Airport are to be forced into either Chapter 7 Bankruptcy or there will be a court appointed trustee who will administer River Hawk's Chapter 11 filing. Under United States Code Law, Chapter 7 Bankruptcy provides for "liquidation" of assets, ( i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.). Chapter 11 Bankruptcy provides for reorganization, usually involving a corporation or partnership (a business entity). A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.

According to the document provided, River Hawk filed the petition four months ago on May 19, 2011. On May 22nd, an order was given by the court to River Hawk that its operators must file monthly status reports and pay quarterly fees. According to the documents below, as of the motion within these documents on September 14, 2011, River Hawk owes status reports for May, June and July of this year and owes quarterly fees for the second quarter of 2011. This means that River Hawk has done nothing to meet its obligations under the rules of voluntary bankruptcy.

The Bankruptcy court attorneys state that "Cause exists to dismiss or convert the Debtor's case... whichever is in the best interests of creditors and the estate, for cause."


The Hound: It is high time that this show be brought to an end. This has been the Modus Operandi of this company and it is a sorry way for our airport to be managed. The City should have ended this charade long ago, but apparently they have been afraid to take any action. They are culpable in this mess, because they were not made privy to the buy out/merger of Profile Aviation to this entity known as River Hawk. Yet, they went along to get along, even though the lawyer who represented the city at the time on Aviation issues told the city that they should not carry forward with the Fixed Based Operator contract that was agreed to with Profile Aviation and transferred to River Hawk without the City of Hickory's knowledge or consent. The contract was breached, so they should have reopened an open process of negotiations to obtain a contract that would be in the city's best interests.

The other issue is that River Hawk basically doesn't own much of anything at the Hickory Airport. The Flight Operations Center and hangars are owned by the city. All River Hawk is doing is leasing these facilities. You can and should read the past documents that have been written on this subject matter (linked below). 

At a point in time two years ago, some aviation interests here in the area thought that River Hawk was operating in good faith, but over the subsequent time period they have expressed to me a much different conclusion. Has River Hawk taken out loans by using city property as collateral? How far behind is River Hawk in its payments to the city? What impact (negative) has the mismanagement of this situation had upon the viability of the airport? Will the City finally implement the recommendations of the 2006 Hickory Airport Task Force?

What I want you to understand is that this is what happens when government officials operate constantly under a cloak of darkness without communicating with the public. You only trust government officials when they prove themselves to be honest and forthright, not when they bungle issues of public interest!!! Where is the local media on this issue? Have you read anything about the happenings at the Airport in the Hickory Daily Record or heard anything on WHKY? What is going on around here? We are talking about millions of dollars folks. The next time city officials tell you that we don't have any money, you need to point to boondoggles such as this!!!

Do people even know? Hickory Airport Operators (River Hawk Aviation) in Bankruptcy - June 18, 2011 

Mind Blowing - The City's Mismanagement of the Hickory Regional Airport. - September 30, 2011

Hickory -- Poorest Income in one of the Poorest States in U.S.

The U.S. Census Bureau released two pieces of widely followed data yesterday — one on poverty and the other on median income for 2010. The most interesting findings in this release were the state-by-state figures, especially when compared to national averages. A closer look at the statistics shows that a relatively small number of states suffer such widespread levels of low income and poverty that they skew the national numbers downward.


The national poverty rate last year was 15.1%. That is up from 11.3% in 2000 and is the highest it has been since 1993. Over 46 million people lived below the poverty line in 2010. The cut-off for that line is households of four people who made under $22,314. The other troubling news was that median income per household nationwide was an inflation-adjusted $49,445. This is about the same as in 1989 and down 2.3% from 2009. Economists fear that Americans are not consumers. It is easy to tell why when their real income has been frozen in place for more than two decades.

The problems of poverty and low income are as much local as national. The poverty rate is 21% in Mississippi. The state also has the lowest median income at $36,850. Mississippi is among the states with the worst education systems, highest obesity levels, highest unemployment, and lowest rates of health insurance coverage. The state is an economic black hole, and it shows in the way people suffer there. And, as is true with black holes, it is nearly impossible for the residents of Mississippi to escape their difficult financial situations. There is a dearth of federal programs that target specific states and cities based on local economic need.

24/7 Wall St. reviewed census data from all 50 states on median income, poverty rates, unemployment, and lack of health insurance. We then identified the ten states that have the lowest median income. We also looked at why low-income households are concentrated in these states and what, in some cases, has been done to reverse the difficult situations.
These are the poorest states in America.

Read more: America’s Poorest States - 24/7 Wall St. http://247wallst.com/2011/09/14/americas-poorest-states/#ixzz1Y3h88N83

10. North Carolina
> Median income: $43,275
> Poverty rate: 16.1% (tied for 9th highest)
> Without health insurance: 16.7% (13th highest)
> Unemployment: 10.1% (9th highest)
North Carolina has one of the lowest median incomes in the country. It does not perform much better on other metrics related to poverty. There have been a number of programs implemented to help combat poverty in the state recently. One example is the No Kid Hungry program which aims to end childhood hunger in North Carolina by 2015. According to information from the program, “more than 1 in 4 children in North Carolina do not get sufficient food.”

Read more: America’s Poorest States - 24/7 Wall St. http://247wallst.com/2011/09/14/americas-poorest-states/#ixzz1Y3gjfZJQ

Estimated median household income in 2009: $36,220 (it was $37,236 in 2000)

Hickory:	$36,220
North Carolina:	$43,674

Estimated per capita income in 2009: $24,685

Read more: http://www.city-data.com/city/Hickory-North-Carolina.html#ixzz1Y3jVnIvb

	Best Places for Business and careers - Forbes Magazine - June 2011 Hickory, NC - #189 out of 200
	Hickory, NC Hickory-Lenoir-Morganton, NC Metropolitan Statistical Area Follow Hickory At a Glance Metro Population: 367,000 Major Industries: Technology Gross Metro Product: $12.6 B Median Household Income: $36,692 Median Home Price: $102,900 Unemployment: 11.7% Job Growth (2010): -1.3% Cost of Living: 11.1% below nat'l avg College Attainment: 14.6% Net Migration (2010): -1,000 Forbes Lists #189 Best Places for Business and Careers #6 in Cost of Doing Business #195 in Job Growth #195 in Education Did we get it right? Tell us what you think of our rankings. Map legend: Profile Hickory is home to one of the oldest furniture manufacturers in the United States that is still located and operated on the original site. Hickory White, formerly known as Hickory Manufacturing Company, was built in 1902 and has been in continuous operation ever since. It is estimated 60% of the nation's furniture used to be produced within a 200-mile radius of Hickory. Another key feature of the city is Lake Hickory, which was created in 1927 with the completion of the Oxford Dam. Duke Energy provides five public access areas on the lake in cooperation with the North Carolina Wildlife Resources Commission.

Do you really want Small Government? -- Silence DoGood

I’m not really intending this to be a political treatise, nor am I trying to be an ideologue.  However, let me say that I’m not that opposed to the size of the Federal Government, per se.  Now before you starting tuning up, let me finish.  Given a nation the size and complexity of ours, it takes much more than the generalized premises of the US Constitution to facilitate and make it go.  The founding fathers knew that the document they were drafting was simply an outline of what was to follow.  The reason it was written in such general and broad language, and some would perhaps use the term vague in places, is to allow formulation and adaptation to time, prosperity, and the unknown.  I’ve heard it spoken more than once that the Founding Fathers could have never conceived the scope and breadth this country has grown in to in the past 236 years, their approval or disapproval thereof aside.  Then take a look at The Federalist Papers.  Three writers, only one of which would eventually become President, but they each offered comprehensive insight into what the intent was behind the document for what the Central Government was to be and the ideals thereof.  All three were in a position to know and convey what the framers of the Constitution had in mind and those pleas and arguments came forth in that collection of documents.  But the point is, it is the compromises and contrasts between these men and their ideas which has brought us the government we have; for better or worse.  And thank God that all were honorable men!  The Constitution as ratified had no Bill of Rights and yet the promise to so amend the Constitution was made on the proposition that it be so ratified.  Can you imagine making such an agreement today among politicians or business people to adopt a literal foundation of something so inclusive first and then amend it after passage, based on a promise and verbal agreement?  That was the gee, wow portion of this piece.

Now, can Government stand to be scaled down?  I’m sure that it can.  Can government likewise run leaner than it does?  Again, I’m sure that it can.  In that regard however, I’m going to borrow the next bit from George Carlin.  If you’ve ever watched anything about Nazi Germany, then you’ve seen efficient government in action.  Accounting for each tooth, eyeglass, piece of clothing, and scrap of hair from each prisoner sent to the gas chambers.  Gentlemen, that is efficient government and quite frankly, I’m glad we have waste.  Bean counters want a strict accounting of debits and credits, the problem is, you have to be able to plan with foresight and that includes factoring the unknown.  So government and business are imprecise entities.  They depend on measures of precision to set and achieve goals, but they themselves are not.

Not to pick on anyone’s views and I certainly don’t mean to sound as if I am, but I want to examine two groups proffered in another piece in a bit of detail, without taking away from, or making any inferences about, that message.

Those groups would be the Libertarian Party and Tea Party Patriots, Inc.  Both groups profess an adherence to small limited government and free markets.  Well, let me point this out first of all.  Government doesn’t have to be small to be limited, nor large to be overbearing.  Now, reading the platform (http://www.lp.org/files/platform-2010.pdf) of the Libertarians, I find their views a bit more palatable than those of the Tea Party Patriots, Inc., because the Libertarians at least try to explain what they’re for and the ideology they have.  In fact, the Tea Party doesn’t even seem to have a platform, just a corporate philosophy: “Tea Party Patriots, Inc. as an organization believes in the Fiscal Responsibility, Constitutionally Limited Government, and Free Markets.”  That quote is taken directly from their website and I find that statement… confusing. They don’t go on to define what those terms mean to them or even what they are.  So ambiguity of purpose seems to ooze from that entire splinter faction of the GOP.  But, since both use or make inference to, the premises of, “Fiscal Responsibility, Constitutionally Limited Government, and Free Markets” lets look at what those terms would mean in implementation.

Fiscal Responsibility.  Okay, to most everyone, that means not spending more than you bring in.  That works as a general premise for everyone in the United States.  However, does anyone know how many years, since the United States has been a country it has been debt free?  The debt incurred from the Revolutionary War was finally paid back in the 1830’s and for a brief period of time, the US was relatively debt free.  Then the War Between the States rolls around and the United States has experienced some level of indebtedness ever since.  Now, not to the level of indebtedness we are currently experiencing for sure.  However, we have likewise not taken on as many commitments, foreign and domestic, had as many citizens, or maintained a standing military the size and breadth of the one we presently have in the field.  So fiscal responsibility in the form of debt abatement has only occurred once in the history of this nation since 1788.  Now think if you will about subsidies, farmers, businesses, emergency loans for catastrophe, none of that is fiscally responsible nor provided for in a responsible nation whereby all persons and corporate entities are held accountable for the decisions they make.  It is not the responsibility of government to act in the capacity of safety valve.  All of the ‘welfare’ is gone and off the table.  It is now sink or swim and there will be no life preserver or rescue boat coming.

Small Limited or Constitutionally Limited Government.  A reduction in the number of persons, scope, and authority across the two terms seeking to restrict or throttle back government.  Very well.  First of all, what are the implications for you?  For me, it takes everything off the table and puts back only those things provided for in the United States Constitution.  Now, you’re going to have read the Constitution to grasp what things are provided for. Basically if it’s not in the Constitution, you don’t get it.  You as a citizen have the freedom to make decisions and you are thereby held responsible for any consequences, good or bad, for the decisions you make.  That’s called rational choice theory and it posits that every individual always makes a rational choice to do everything they do or not.  Hurricane?  Didn’t stock up on supplies?  Sorry about your luck.  The airplane you just boarded sounding a little bit out of tune or there is a delay in it getting off the ground?  I guess that ‘first come, first serve, everything clear your way Bob’ take off and landing process needs some manners or a cop to stand at the intersection and direct traffic.  Maybe they could just install a yield sign.  But that’s what they talked about after the last 3 crashes.  Took all of your spare pennies, since there is no social security to invest in the stock market… until it crashed, did you?  I really hate that for you.  You should have chosen a better financial adviser.  Can’t afford to send your children to school because there is now no public school or education system?  I certainly hope that you have time to devote to the education of your children.  Perhaps you will be able to enter into a cooperative with others in order to share education responsibilities.  Of course, there is no telling what they may be taught, but that’s the way it goes I’m afraid.  Are those all gross exaggerations of outcomes?  Perhaps, in those exact words and phrased in that manner.

Free Markets.  The market dictates what pricing is in the marketplace.  It runs wild and free with no controls whatsoever.  It’s also known in some other circles as laissez faire economics.  No such thing as market stabilization on price (see fiscal responsibility above for elimination of that).  No such thing as anti-trust, or rules against monopolization of the marketplace.  The pricing is based on whatever the market will bear.  To illustrate that, look at some of the local gas stations around town, belonging to the same company.  Look at how they each price gas at different levels, based on what their competitors are selling fuel at around them.  The market and competition has shrunk from being town wide now to district or within a few blocks or each other.  Price fixing runs rampant…on the upper side.  Since it isn’t now based on competition in the marketplace, but rather, what your competition is selling at and you’re neither going to over price or severely undercut them.  And we all know that ABC gas is paying the same rate for each gallon they sell at each of their stations.  And yet, the price variation can be as much as ten cents on the gallon.  Lose your crop because the fields flooded?  I guess you should have seen that one coming.  Now you can sell out to cover your losses and go to work for Mr. Corporate Farming Cooperative.  It’s a buyer beware state of affairs now.  That new medication that you were just prescribed for your latest malady?  The one you have to have the med for since you won’t live without it...  Well, since it is the only medicine on the market for what you have, it’s $1,000 a tablet and you need 3 per day.  How free are you feeling today?  Since there is no such thing as Medicare/Medicaid, or healthcare… you lost all your money in the stock market, remember?  Yes more exaggerations.

Am I trying to scare you?  No, because the groundwork for those things is already being laid and has been talked about by some of the players now in contention for positions of power.  The problem, particularly with fuel at the moment is how can you do without it?  Electricity, and the overall cost of energy, is projected to increase by as much as 33% across the next decade.  And living isn’t going to get any cheaper for you.  And in this world, how can you do without those things and live?  Most of you have never had to and don’t know how.  That is a raw fact that isn’t lost on those that provide those services. 

I’m trying to enlighten you just as much as Thom and Harry are on this blog, to what is going on right before your eyes.  Right now, those in control are brash enough to not care if they conceal what they’re doing or not.  They have the money and resources to do as they pretty much please and they know it.  Right now, there is a fierce competition for your vote because votes are going to decide the course this nation is going to travel.  Those same upper echelon elites are trying to get you to freak out and make irrational choices, under the guise that there is something that you can immediately do to change this, that, or the other; but erstwhile, they are trying to ensure that politicians vital to their cause and their agenda are in seats of power.  They want you to look short term, while they have a long-range vision in place.  The only glimpse of the future you are given reference to is, that your children will be saddled with the payments on the current debt.  The only way of doing that is by hoodwinking you into electing those who parrot those hot button topics and buzz words.  Fiscal Responsibility, Small Government, Free Markets are broad categories of terms that are given no explanation or specific meaning.  Is that done intentionally?  There is a reason that no one has talked about the specific implications of what will happen if those policies are put into place, only how much the debt will be reduced and how much money will be saved.

Judge for yourself however.  And I say that a lot.  I leave a lot up to you to read, research, and understand.  Why?  It is not my intention or purpose to sway or influence you to any appreciable degree.  It is merely my intent to make you curious enough that you will want to go and search for the facts and truth in the things you hold as important.  Not information from political pundits, or speechwriters, or those who skew the facts or tell half-truths in order to influence.  Just the facts, both sides of the issue, so that you can inform and enable yourselves to make the decisions you need to make.  That is what I implore you to do, not only for yourselves, but this City, this State, and this Nation.  If you want to take this country back, that is what you have to do.  If not, someone else will be happy to do your thinking for you and you become the mindless automaton that is stuck with the outcomes of your actions, based on someone else’s capacity to think.  Another amazing revelation there isn’t it?  You are implored to think and consider only those things that you are told or prompted as important, but just those things.  Ironic don’t you think?  The choice, as they say, is yours.

Economic Stories of Relevance in Today's World -- September 11, 2011

Bob Chapman - The International Forecaster - September 10, 2011 - Bank of America Corp officials have discussed slashing roughly 40,000 jobs during the first wave of a restructuring, the Wall Street Journal said, citing people familiar with the plans... The number of job cuts are not final and could change. The restructuring aims to reduce the bank's workforce of 280,000 over a period of years, the Journal said.

BofA to cut at least 40,000 jobs - The layoffs reflect Bank of America's deepening woes and are likely to take a heavy toll on its California operations. - Los Angeles Times - Walter Hamilton and E. Scott Reckard - September 10, 2011 - Bank of America Corp. is preparing to slash 40,000 or more jobs nationwide, a dramatic retrenchment that reflects the deepening woes of the country's largest bank and the magnitude of the U.S. economic slowdown...  The layoffs will come mainly from the BofA's sprawling consumer-banking operations, which will take a heavy toll on branches, loan centers and other offices throughout California...  Bank of America has 45,000 employees in the state, about 1 in 6 of its nearly 300,000-person workforce, and is expected to roll out the job cuts over the next several years. The company, which for years was based in San Francisco and maintains its huge mortgage unit in Calabasas, also is in the process of closing 10% of its branches nationwide.



Bob Chapman - The International Forecaster - September 10, 2011 - In the past decade, the number of seniors in the labor force has grown nearly 60 percent, according to the Bureau of Labor Statistics. By 2018, the number of workers 65 or older is projected to climb to 11 million, from 6.5 million today... So employers face a dual challenge. They have to keep older workers productive and then, when those workers do leave, find qualified people to replace them. In 22 industries among them engineering, agriculture, real estate and health care more than three in 10 workers are 50 or older, according to a 2007 study from the Sloan Center on Aging & Work at Boston College. “Companies are not very long-term-oriented,” he added. “They don’t spend much time worrying about what might be coming down the pipe in the future.” ... “It’s been mitigated a little because of the economy, but I think it’s a huge problem for us,” Redlo said. In Texas, home to Dow and the Lockheed unit, public schools have de-emphasized vocational education, said John Ray, dean of information and community resources at Brazosport College. “Today, you don’t have students with experience in working with their hands,” Ray said.

As workforce ages, industries struggle to prepare for wave of retirements - Washington Post - Jason Alcorn and Jason Tomassini - September 2, 2011 - human resources experts, workers and executives from a range of industries say businesses are largely unprepared to accommodate an aging workforce or to cope with its eventual retirement... “They are oblivious,” said economist Steven Sass of the Center for Retirement Research at Boston College... Many industries find themselves in a quandary. They often need older workers for their expertise, yet they also may need to accommodate their physical disabilities and their desire for more flexible schedules. And as workers stay on the job longer, they may need training in new technologies or work procedures... In the past decade, the number of seniors in the labor force has grown nearly 60 percent, according to the Bureau of Labor Statistics. By 2018, the number of workers 65 or older is projected to climb to 11 million, from 6.5 million today... Baby boomers are fueling the trend. Healthier and better educated than any previous generation, many plan to continue working, at least part time, well past traditional retirement age. Human resources managers say voluntary retirement nearly stopped after the stock market collapse in 2007.


Goldman Head Gold Trader Speculates About "Authority" Intervention In Gold, Sees Precious Metal Pushing Higher - Zero Hedge - Tyler Durden - September 8, 2011 - From Goldman's head gold trader Zak Dhabalia (i.e., someone that can not be found on 360) who says what only fringe blogosphere dares to speculate: namely that central banks and/or metals excahnges (CME/LBMA) openly intervene at key inflection point to slam the price of gold down. More importantly, according to Zak, now that the latest "authority" intervention has been priced in, it is up, up and away for the yellow metal yet again... After rallying nearly 100 usd last week from 1795 to 1895 with demand coming from the official sector and some leveraged players rebuilding length following the severe prior correction we traded to new all time highs of 1922 on Tuesday shortly before the Swiss Franc intervention. The immediate aftermath was in complete contradiction to prior recent episodes of intervention and what anyone would have expected. Instead of spurring a further gold price rally on the basis that it was one of the few remaining safe haven “currencies” we saw a 50 usd collapse in minutes. The source of this flow seems hard to pin down with some speculating over whether “authorities” were concerned about the signals of an accelerating gold price and its impact on other fragile markets. Soon after, much of the losses were recovered but the psychological damage had been done and there followed a series of liquidations from within the leverage space with gold closing down 50 usd on the day. This was then exacerbated by a near 60 usd flash crash within 2 minutes during the Asian session... However official sector activity, and PWM is already using this latest dip to re-accumulate and it may be the case the market is already close to clean positions at ever higher prices...



The Obama Presidency by the Numbers - The president constantly reminds us that he was dealt a difficult hand. But the evidence is overwhelming that he played it poorly. - Wall Street Journal - Michael Boskin - September 8, 2011

Damon Vickers interview on Coast to Coast AM speaking about creating jobs by building an Entrepreneurial Economy. - Damon Vickers is a Seattle-based investor. He is also a periodic commentator on investments and social and economic trends in the general and financial press, maintains an investment-oriented channel on YouTube, and is the author of the New York Times business best-seller, The Day After the Dollar Crashes.