Friday, September 28, 2012

The shaping of the future is at hand

Initial jobless claims fell back to a more reasonable number last week indicating that the pace of growth could be picking up. Gasoline prices are starting down, speculators simply can't hold the price up with 30% of refinery output being exported. There is no good reason that we should have to pay more than a dollar per gallon for what is essentially refinery waste. Don't cry for the Wall Street bankers, they make money as the price goes down too.

A more powerful indicator of a turnaround is the hiring plans of the major retailers for the Christmas season. At the same time that the corporate CEOs are relentlessly painting a gloomy picture for the economy based on their uncertainty about Obama's policies, they are hiring big time. This isn't based on their belief that Romney will be President, they aren't stupid.

The Bureau of Labor Statistics has revised the job creation numbers up by nearly 400,000 for the year to date. This is despite all of the efforts of Republicans to hold the economy back, after the election you can expect things to really pick up speed. This 'rosy' prediction is based on several factors: there is a huge pent up demand in the consumer sector, corporations would like to go back to making money instead of trying to make Obama look bad, the housing slump is at or near bottom, and the Fed has committed to printing money as needed.

That's not that I'm saying everything is good and go donate the canned goods to the food bank. The banks are still too big to fail, and we have no national economic policies that make any sense. We also have a tremendous parasite load in the 0.01% that must be dealt with. If you think you can relax because Obama will be re-elected, you are simply crazy. An intelligent Congress is just as important, but that isn't an impossible goal thanks to Romney-Ryan.


Anonymous said...

I sincerely hope the opportunity to shape the future is at hand and taken advantage of. I wish for a United States of America with vibrant economy for the little people and not just corporate interests.
I hope for a populace that is informed and expects and demands more from its politicians.
Vigilance is a good thing, get active and verbally bit&%h smack a politician a day!