Friday, January 7, 2011

Private sector jobs up, sort of

Unemployment claims were up again last week and pretty much stay above 400,000 due to the churn in jobs as companies fire fulltime employees and hire younger, lower paid people and contract workers or temps to fatten the bottom line. A consistent number over 250,000 should indicate declining employment but according to the private payroll processor ADP there was a spike in hiring in December. They estimate the government report on Friday will show close to 300,000 new private sector jobs which would be one of the few months with a net gains in jobs over population growth in ten years.

Unfortunately ADP turned out to be wrong with actual government numbers showing only 103,000 new jobs in December but they also increased the number of jobs created in the previous two months by 90,000 as more accurate numbers are now available. In total 1,100,000 new private sector jobs were created in 2010 which is more than Bush created in his entire term. The never elected President did create a million new government jobs, mostly in the Security State.

The endless war on a tactic is also keeping several million people employed. Obama finds himself between a rock and a hard place, the war is draining the Treasury but ending it would plunge the country into the mother of all Depressions. Weapons systems are one of few areas where we still do any significant manufacturing but even that is draining away to China.

We need between 150,000 jobs for new adults and perhaps another 100,000 new jobs every month to cover the immigrants coming in and with no manufacturing base this is impossible. The Republicans have a stranglehold on all aspects of the economy and for Obama to change this would require a commit this country hasn’t had since FDR’s wartime economic martial law. The average American has no clue about this history, how economics really work or who is screwing them over since 99% of media is under the control of the enemy force.

5 comments:

Andrea said...

What do you think of Stanberry & Associates as an economic adviser? He is recommending buying foreign currencies and precious metals and a bunch of other stuff.

prairie2 said...

Sorry, I don't recommend investments except canned goods. Beware of an investment advisor who has a "crash" mentality, fear can drive you to pay too much and end up with big losses. As far as currencies go, none are safe. Just because the USD is in trouble doesn't mean the smaller currencies are won't go under first.
Metals and real estate are "safe" in the sense that they can never go to zero but you can lose "money" on them as the "price" can go down. Beware of bargains, they rarely are....

Andrea said...

Our house is paid for, but I don't know whether freeze dried foods are the way to go, or just canned foods that don't last as long. I am about to have a psychotic break over all this.

Andrea said...

I thought you might have an opinion about their credibility as financial advisors.

prairie2 said...

The advantage to canned goods is that you can eat them and rotate your stock. If money isn't a concern and canned food isn't something you normally eat, freeze dried might be the way to go. Canned goods can be rotated by donating them to the food bank. I wouldn't buy freeze dried without doing a lot of research first as some a just a scam. Try not to obsess over all of this, nothing is set in stone. Just paying attention increases your odds, like crossing the street in traffic.