Thursday, February 17, 2011

Beautiful, beautiful pigs

Initial unemployment claims jumped back up over 400,000 for last week. This is getting to be a tired old song, the number will need to be under 275,000 to indicate new jobs are being created. The continued high number doesn’t indicate we are losing jobs but it reflects the continued decline in wages as workers are replaced with people working at ever lower wages.

The Federal Reserve is upping its prediction of growth for 2012 to somewhere between 3.4 to 3.9%. I’m predicting that pigs will fly. The Fed is buying out the rich who were invested heavily in 30 year Treasury Bonds to the tune of a trillion dollars. The rich are in turn buying into hedge funds that put money into anything and everything but creating jobs and the interest rates that were supposed to come down are going up on inflation fears. The Fed is predicting unemployment to remain high but to start coming down slowly. I predict supersonic flying pigs.

Not only is nothing meaningful being done to “create jobs” but this extra trillion the hedge funds now have to play with is driving up consumer prices which hobbles what little economy we have left. Besides no trade policy and no manufacturing policy, Obama has no problem with pay freezes despite the Consumer Price Index rising sharply which makes them into to pay cuts. This is of course exactly the wrong thing to do to head off a Depression, Herbert Hoover proved that.

With no Trade Policy (or rather with a pro trans-national corporate trade policy) any growth in the economy is reflected in a burgeoning trade deficit. Even no growth or a decline in economic activity there will still be an ever bigger trade deficit as factories continue to close, the latest count is 50,000 just since 2000. The bad economy encourages factory closings with tight credit, weak demand and increasing commodity costs as the hedge funds and Wall Street banks drive up the prices of raw materials.

Obama says everything will be okay if we just become more competitive and have more free trade deals. The Republicans say everything will be okay if we just cut taxes and stop regulating business and do away any government spending that doesn’t benefit the rich.

I say everything will be okay in the spring when the pigs come back north, They are beautiful flying in a graceful V formation their oink calls echoing across the prairie.


Anonymous said...

How much longer until we see people actually leaving the United States for employment opportunity, better benefits and an overall higher standard of living?

The war on the unions is coming to a climax with the assault on public sector workers (e.g. Wisconsin). When the rich finally rid themselves of the collective bargaining nuisance, the American middle class is toast. Could we see an emigration of educated and/or skilled middle class workers to greener pastures soon?

prairie2 said...

There won't be any mass exodus of Americans. Unless you have a suitcase of money, it's hard to find a country that will take you now and that will only get worse. The trans-national predators don't just operate here, things will be bad all over.

macnow said...

That door of moving to another country; realistically died at the end of the 90's (if not before).

Educated skilled middle class workers... HA... not from this country, and not any that can speak a foreign language fluently. Again we are talking middle and upper class; tutored living abroad trust fund kids do not count.

Oh and don’t be taken in by the recent news accounts of other countries starting to except us again. The only thing they’re accepting is rich (or not so rich) American’s money, traveling abroad on holiday (and even that is tentative and begrudged). AND they definitely ain’t saying move over (to their country); they are saying spend, and spend big please.

Sorry to burst your bubble, but we great Americans don't even come close to the level of education, critical thinking, and trade skills that are common in the other industrialized countries (that matter any more). That American greatness thread snapped in the early 80's, right when high school (evangelical Christian) guidance counselors started pushing “undefined” service jobs as the wave of the future. God bless Reagan and his minions.

SIDE NOTE: Remember all the “prayer around the flagpoles” and crap in the 80’s; and Jesus on the walls blah, blah, blah. You think that was just harmless, welcome to its grand fruition.

You sound like you drunk the Left's version of libertarian cool-aid in which they profess "I'll just leave to another country where me and my skills will be appreciated...". It ain't going to happen buttercup.

The Left’s version of “Going Galt” is just that... fantasy (and even more pathetic and delusional). You may really feel that you identify with those social democracies outside our decaying nation, but I am afraid they (those social democracies et all) really don’t “WANT” to identify with you. Nothing personal, but our “left” ain’t even close to their “left”, and they got more than enough to deal with beyond taking in some ignorant American workers.

See they still somewhat protect their workers, which would mean denying you a working visa. Oh... and don’t think marrying someone from that country will help, it won’t.

Of course if you’re a neocon etc. you can always try Austria. It’s Milton Friedman approved.

You have fallen into that Neocon/Neoliberal version of "American Exceptionalism". There ain't a damn thing exceptionally about us; in fact there is a lot of un-exceptional stuff about us that’s been piling up for the last 30 years. They don’t want us, don’t need us, and a lot of them privately would like to “FORGET” about us for the next decade or so. Our critical thinking skills, even in a lot (if not all) of the higher end schools And colleges... sucks.

I bet even now we will see a trend (starting to emerge) where those foreign students, who once came over here to get further schooling, are going to be traveling to other country’s schools and living abroad (were those country’s serfs still have some real wealth, not credit and debt masquerading as wealth).

Of course there will always be your Harvard, Stanford, and Yales; but these will be more or less the places to rub elbows with the last of this country’s rich, not about the pursuit of education. Those ivy hall gatherings will be more about discussing what to do with one’s serfs in one’s respective countries.

Sorry to harsh your daydream, but unless you can get ONE of these foreign countries to give ya "Amnesty for Economic oppression" you and all the daydreamers like ya ain't going no where... just the facts.

: - )

PitchingDoc said...

With the private sector worker destroyed after 30 years of Reaganomics, the sights are now set on public sector workers.

I'm tired of hearing "pensions are bankrupting states" but have not been able to find what % of state budgets go to pension funds.

Any sources on this?

I have emailed the Committee on Budget Policy and Priorities as they were on C-SPAN earlier this year discussing state budgets:

but of course nothing was discussed about pensions.