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Obama's false economic claims
Mar 24, 2016 19:33:23   #
Ricktloml
 
Obama Peddles Economic Fiction, Ignores Fact
By Peter Schiff

In his seventh and final State of the Union address this Jan., President Obama, clearly looking to bolster his legacy as the president who vanquished the Great Recession, boldly asserted that "Anyone claiming that America's economy is in decline is peddling fiction." Unfortunately for the President, more and more Americans seem to believe (with an adequate basis in proof) that the fiction is emanating from the White House.
It's hard to imagine how anyone can really assert with a straight face that the economy is currently "strong". The most recent Gross Domestic Product (GDP), from Fourth Quarter 2015, shows us barely inching along at a 1% annualized growth rate (Bureau of Economic Analysis, 2/26/16). Given that MODERATE growth used to be measured in the 3%-4% range, and that recent declines in the trade balance could further subtract from both fourth (2015) and first quarter GDP, we could be forgiven for raising an eyebrow or two in reaction to Obama's boast.
For the President and his boosters, last week's Feb. non-farm payroll report, which showed 242,000 new jobs created and an unemployment rate below 5% level BLS (Bureau of Labor Statistics 3/14/16), produced proof that the administration's economic policies, wh**ever they may actually be, are working. By beating the 190,000 consensus forecast for Feb. of economists surveyed by Reuters, and revising upward the low 151,000 jobs previously reported in Jan. to 172,000 BLS 3/14/16), the government was able to point to two months that averaged north of 200,000 new jobs.
The good news prompted Obama to invite reporters into a Cabinet meeting to crow about the results and to shame those who somehow remain skeptical, saying (to paraphrase) "America's businesses are creating jobs at the fastest pace since the 1990s... and I don't expect..this evidence to convince some...to change their doomsday rhetoric." (The White House, Office of the Press Secretary, 3/14/16.) He's right on that point, the gloom SHOULD remain. Yes, the economy is creating jobs, but they are not the kind to bring us back to the days of solid growth. The more important fact, which Obama did not mention, was that report showed one of the largest drops in weekly earnings EVER reported. It's too bad that our media seems to be incapable of noticing such a tremendous problem, right below the surface.
One month ago, the Jan. jobs report was enlivened by a healthy .5% jump in average hourly earnings. At the time I argued that such good news would be a one-time as it resulted from the increase in minimum wages that kicked in at the start of the year in many states across the country. As predicted, the momentum was fleeting. In Feb., the average hourly earnings did not increase the .2% that was expected, but fell .1%. The drop may not seem like much, but it is the first decline since Dec. 2014, and one of only six in the past ten years, according to BLS data. Making matters worse, average hours worked declined from 34.6 hours to 34.4. Combining falling wages and falling hours t***slated into a .7% decline in weekly earnings, the biggest drop ever measured in the statistic (BLS 3/14/16). For some reason Obama let that one slide.
The t***h is that the big numbers in job creation do not reflect healthy economic growth, but a fundamental shift in the labor force away from high-paying, full-time jobs to low-paying, part-time jobs. The Feb household survey of job creation shows that 78% of the jobs created were part-time, and 82% of those were in the low-paying service industries such as food service and retail. This partially explains the Feb. data that shows exports at the lowers level in almost five years. It's hard to export things created by bartenders and waitresses. Meanwhile we lost higher-paying, full-time jobs in manufacturing, mining, and logging that would have produced things capable of being exported. Yes jobs are being created, but only at the expense of higher-paying jobs that are being destroyed. (BLS 3/14/16.)
Most observers assumed that the Feb. Challenger Job Cut Report (released the day before non-farm payrolls) would be a big improvement over the very large 75,000 layoff figure posted in Jan. And whule the 61,000 layoffs announced in Feb was an improvement, it was not nearly as much as observers had hoped. Averaging the two months puts the current pace for announced layoffs at 32% higher than the same period last year. Also last week, the PMI Service Index, which came in at 53.2 in Jan., came in at 49.7 in Feb., showing actual contraction (below 50), (joining the smaller manufacturing sector, which has been contracting for months.)
Companies have been incentivized to cut their full-time work force by a variety of costly and burdensome regulations that are largely the result of the Obama Administration. If a company replaces a full-time employee with two part-time workers, the statistics count that as a job gain. But this only holds up if you count quantity while ignoring quality. The view from the street looks quite different, as workers prefer one good job to several bad ones.
It appears that investors are no longer signing up for optimism, either. Normally, a much stronger than expected non-farm payroll report would have ignited a market rally, but this one ignited a rally in gold. Which at one point neared a high of $1,280 per ounce (gold was up 3% for the week).
The strong jobs report should have convinced investors that the feds would raise rates, which would hurt gold. But that didn't happen. The markets have started to figure out that the jobs numbers are meaningless and that soon they will roll over to mirror the bad data emanating from other sources.
I don't expect that the President will ever officially acknowledge that the economy has weakened, let alone relapsed into recession. He has walked too far out on his rhetorical branch to walk it back. As a lame duck, he really has no incentive to do so. Such admissions would undercut the campaign of Hillary Clinton, who is running as the logical successor to carry his torch.
But Janet Yellen is in a very difficult spot. If she continues to ignore the growing signs of recession, she runs the risk of letting one develop prior to the e******n. This would favor the Republican challenger, whether it is Donald Trump, or Ted Cruz, neither of whom would be inclined to reappoint her as Fed Chairwoman, if elected. Allowing the Greenspan bubble to bust on Bush's watch sealed John McCain's fate, allowing Obama to ride a wave of v**er outrage into the White House in 2008. Yellen does not want Trump to catch a similar wave in 2016.
As a result, I expect the fed to soften it's rhetoric in the very near future. They will promise that the punch bowl is going to remain on the table for the foreseeable future. This means that the market movements that have defined 2016 thus far may accelerate in the months ahead, and may provide relief for investors in commodities and foreign currencies who have had the patience to wait out the nonsense

Reply
Mar 24, 2016 22:04:01   #
America Only Loc: From the right hand of God
 
Ricktloml wrote:
Obama Peddles Economic Fiction, Ignores Fact
By Peter Schiff

In his seventh and final State of the Union address this Jan., President Obama, clearly looking to bolster his legacy as the president who vanquished the Great Recession, boldly asserted that "Anyone claiming that America's economy is in decline is peddling fiction." Unfortunately for the President, more and more Americans seem to believe (with an adequate basis in proof) that the fiction is emanating from the White House.
It's hard to imagine how anyone can really assert with a straight face that the economy is currently "strong". The most recent Gross Domestic Product (GDP), from Fourth Quarter 2015, shows us barely inching along at a 1% annualized growth rate (Bureau of Economic Analysis, 2/26/16). Given that MODERATE growth used to be measured in the 3%-4% range, and that recent declines in the trade balance could further subtract from both fourth (2015) and first quarter GDP, we could be forgiven for raising an eyebrow or two in reaction to Obama's boast.
For the President and his boosters, last week's Feb. non-farm payroll report, which showed 242,000 new jobs created and an unemployment rate below 5% level BLS (Bureau of Labor Statistics 3/14/16), produced proof that the administration's economic policies, wh**ever they may actually be, are working. By beating the 190,000 consensus forecast for Feb. of economists surveyed by Reuters, and revising upward the low 151,000 jobs previously reported in Jan. to 172,000 BLS 3/14/16), the government was able to point to two months that averaged north of 200,000 new jobs.
The good news prompted Obama to invite reporters into a Cabinet meeting to crow about the results and to shame those who somehow remain skeptical, saying (to paraphrase) "America's businesses are creating jobs at the fastest pace since the 1990s... and I don't expect..this evidence to convince some...to change their doomsday rhetoric." (The White House, Office of the Press Secretary, 3/14/16.) He's right on that point, the gloom SHOULD remain. Yes, the economy is creating jobs, but they are not the kind to bring us back to the days of solid growth. The more important fact, which Obama did not mention, was that report showed one of the largest drops in weekly earnings EVER reported. It's too bad that our media seems to be incapable of noticing such a tremendous problem, right below the surface.
One month ago, the Jan. jobs report was enlivened by a healthy .5% jump in average hourly earnings. At the time I argued that such good news would be a one-time as it resulted from the increase in minimum wages that kicked in at the start of the year in many states across the country. As predicted, the momentum was fleeting. In Feb., the average hourly earnings did not increase the .2% that was expected, but fell .1%. The drop may not seem like much, but it is the first decline since Dec. 2014, and one of only six in the past ten years, according to BLS data. Making matters worse, average hours worked declined from 34.6 hours to 34.4. Combining falling wages and falling hours t***slated into a .7% decline in weekly earnings, the biggest drop ever measured in the statistic (BLS 3/14/16). For some reason Obama let that one slide.
The t***h is that the big numbers in job creation do not reflect healthy economic growth, but a fundamental shift in the labor force away from high-paying, full-time jobs to low-paying, part-time jobs. The Feb household survey of job creation shows that 78% of the jobs created were part-time, and 82% of those were in the low-paying service industries such as food service and retail. This partially explains the Feb. data that shows exports at the lowers level in almost five years. It's hard to export things created by bartenders and waitresses. Meanwhile we lost higher-paying, full-time jobs in manufacturing, mining, and logging that would have produced things capable of being exported. Yes jobs are being created, but only at the expense of higher-paying jobs that are being destroyed. (BLS 3/14/16.)
Most observers assumed that the Feb. Challenger Job Cut Report (released the day before non-farm payrolls) would be a big improvement over the very large 75,000 layoff figure posted in Jan. And whule the 61,000 layoffs announced in Feb was an improvement, it was not nearly as much as observers had hoped. Averaging the two months puts the current pace for announced layoffs at 32% higher than the same period last year. Also last week, the PMI Service Index, which came in at 53.2 in Jan., came in at 49.7 in Feb., showing actual contraction (below 50), (joining the smaller manufacturing sector, which has been contracting for months.)
Companies have been incentivized to cut their full-time work force by a variety of costly and burdensome regulations that are largely the result of the Obama Administration. If a company replaces a full-time employee with two part-time workers, the statistics count that as a job gain. But this only holds up if you count quantity while ignoring quality. The view from the street looks quite different, as workers prefer one good job to several bad ones.
It appears that investors are no longer signing up for optimism, either. Normally, a much stronger than expected non-farm payroll report would have ignited a market rally, but this one ignited a rally in gold. Which at one point neared a high of $1,280 per ounce (gold was up 3% for the week).
The strong jobs report should have convinced investors that the feds would raise rates, which would hurt gold. But that didn't happen. The markets have started to figure out that the jobs numbers are meaningless and that soon they will roll over to mirror the bad data emanating from other sources.
I don't expect that the President will ever officially acknowledge that the economy has weakened, let alone relapsed into recession. He has walked too far out on his rhetorical branch to walk it back. As a lame duck, he really has no incentive to do so. Such admissions would undercut the campaign of Hillary Clinton, who is running as the logical successor to carry his torch.
But Janet Yellen is in a very difficult spot. If she continues to ignore the growing signs of recession, she runs the risk of letting one develop prior to the e******n. This would favor the Republican challenger, whether it is Donald Trump, or Ted Cruz, neither of whom would be inclined to reappoint her as Fed Chairwoman, if elected. Allowing the Greenspan bubble to bust on Bush's watch sealed John McCain's fate, allowing Obama to ride a wave of v**er outrage into the White House in 2008. Yellen does not want Trump to catch a similar wave in 2016.
As a result, I expect the fed to soften it's rhetoric in the very near future. They will promise that the punch bowl is going to remain on the table for the foreseeable future. This means that the market movements that have defined 2016 thus far may accelerate in the months ahead, and may provide relief for investors in commodities and foreign currencies who have had the patience to wait out the nonsense
Obama Peddles Economic Fiction, Ignores Fact br By... (show quote)


No one is paying much attention to a record that has hit an all time high for the entire History of the USA...JOB LOSS! That's right! JOBS are GONE in record numbers as one business/company after another has closed it's doors, downsized, or going under. The list of companies from Campbells Soup, McDonalds, Sears, JC Pennys, GAP, Burger King, Burger Chef, Pizza Hut, Walmarts, Ace Hardware, the list would take a week or two to type out here by a hundred people typing it. THANK YOU DIPSTICK DEMOCRATS! OBLAMMER! Not just service jobs or retailers but even manufacturing and suppliers all gone. Obama and the NUMBERS are a big damned LIE! You can't have a "better economy" when everyone is closing down.....it does not happen that way. BUT you have the dip sticks that believe when Obama has his team tell everyone that horse manure is better than ice cream and when Obama himself will stand infront of a camera and LIE as much as he does.

Reply
Mar 24, 2016 22:16:26   #
fuzzybill
 
I wish we had another John Wilkes Booth to take care of things.

Reply
 
 
Mar 24, 2016 22:38:50   #
America Only Loc: From the right hand of God
 
fuzzybill wrote:
I wish we had another John Wilkes Booth to take care of things.


Yep..would be real nice! Just get someone to attend the Ford Theatre! They could do a play, Old Man River!

Reply
Mar 25, 2016 03:09:19   #
Ricktloml
 
America Only wrote:
No one is paying much attention to a record that has hit an all time high for the entire History of the USA...JOB LOSS! That's right! JOBS are GONE in record numbers as one business/company after another has closed it's doors, downsized, or going under. The list of companies from Campbells Soup, McDonalds, Sears, JC Pennys, GAP, Burger King, Burger Chef, Pizza Hut, Walmarts, Ace Hardware, the list would take a week or two to type out here by a hundred people typing it. THANK YOU DIPSTICK DEMOCRATS! OBLAMMER! Not just service jobs or retailers but even manufacturing and suppliers all gone. Obama and the NUMBERS are a big damned LIE! You can't have a "better economy" when everyone is closing down.....it does not happen that way. BUT you have the dip sticks that believe when Obama has his team tell everyone that horse manure is better than ice cream and when Obama himself will stand infront of a camera and LIE as much as he does.
No one is paying much attention to a record that h... (show quote)


It may be hard for most people to lie with a straight face, but not Obama. This is the worst non-recovery since the great depression. Obama and his collaborative media continue to lie, and his cultish followers continue to swallow those lies. I never realized how many corrupt and stupid people existed until Obama was put in office and the slobbering, sycophantic support he eng****rs came to light

Reply
Mar 25, 2016 21:27:10   #
DamnYANKEE
 
Ricktloml wrote:
Obama Peddles Economic Fiction, Ignores Fact
By Peter Schiff

In his seventh and final State of the Union address this Jan., President Obama, clearly looking to bolster his legacy as the president who vanquished the Great Recession, boldly asserted that "Anyone claiming that America's economy is in decline is peddling fiction." Unfortunately for the President, more and more Americans seem to believe (with an adequate basis in proof) that the fiction is emanating from the White House.
It's hard to imagine how anyone can really assert with a straight face that the economy is currently "strong". The most recent Gross Domestic Product (GDP), from Fourth Quarter 2015, shows us barely inching along at a 1% annualized growth rate (Bureau of Economic Analysis, 2/26/16). Given that MODERATE growth used to be measured in the 3%-4% range, and that recent declines in the trade balance could further subtract from both fourth (2015) and first quarter GDP, we could be forgiven for raising an eyebrow or two in reaction to Obama's boast.
For the President and his boosters, last week's Feb. non-farm payroll report, which showed 242,000 new jobs created and an unemployment rate below 5% level BLS (Bureau of Labor Statistics 3/14/16), produced proof that the administration's economic policies, wh**ever they may actually be, are working. By beating the 190,000 consensus forecast for Feb. of economists surveyed by Reuters, and revising upward the low 151,000 jobs previously reported in Jan. to 172,000 BLS 3/14/16), the government was able to point to two months that averaged north of 200,000 new jobs.
The good news prompted Obama to invite reporters into a Cabinet meeting to crow about the results and to shame those who somehow remain skeptical, saying (to paraphrase) "America's businesses are creating jobs at the fastest pace since the 1990s... and I don't expect..this evidence to convince some...to change their doomsday rhetoric." (The White House, Office of the Press Secretary, 3/14/16.) He's right on that point, the gloom SHOULD remain. Yes, the economy is creating jobs, but they are not the kind to bring us back to the days of solid growth. The more important fact, which Obama did not mention, was that report showed one of the largest drops in weekly earnings EVER reported. It's too bad that our media seems to be incapable of noticing such a tremendous problem, right below the surface.
One month ago, the Jan. jobs report was enlivened by a healthy .5% jump in average hourly earnings. At the time I argued that such good news would be a one-time as it resulted from the increase in minimum wages that kicked in at the start of the year in many states across the country. As predicted, the momentum was fleeting. In Feb., the average hourly earnings did not increase the .2% that was expected, but fell .1%. The drop may not seem like much, but it is the first decline since Dec. 2014, and one of only six in the past ten years, according to BLS data. Making matters worse, average hours worked declined from 34.6 hours to 34.4. Combining falling wages and falling hours t***slated into a .7% decline in weekly earnings, the biggest drop ever measured in the statistic (BLS 3/14/16). For some reason Obama let that one slide.
The t***h is that the big numbers in job creation do not reflect healthy economic growth, but a fundamental shift in the labor force away from high-paying, full-time jobs to low-paying, part-time jobs. The Feb household survey of job creation shows that 78% of the jobs created were part-time, and 82% of those were in the low-paying service industries such as food service and retail. This partially explains the Feb. data that shows exports at the lowers level in almost five years. It's hard to export things created by bartenders and waitresses. Meanwhile we lost higher-paying, full-time jobs in manufacturing, mining, and logging that would have produced things capable of being exported. Yes jobs are being created, but only at the expense of higher-paying jobs that are being destroyed. (BLS 3/14/16.)
Most observers assumed that the Feb. Challenger Job Cut Report (released the day before non-farm payrolls) would be a big improvement over the very large 75,000 layoff figure posted in Jan. And whule the 61,000 layoffs announced in Feb was an improvement, it was not nearly as much as observers had hoped. Averaging the two months puts the current pace for announced layoffs at 32% higher than the same period last year. Also last week, the PMI Service Index, which came in at 53.2 in Jan., came in at 49.7 in Feb., showing actual contraction (below 50), (joining the smaller manufacturing sector, which has been contracting for months.)
Companies have been incentivized to cut their full-time work force by a variety of costly and burdensome regulations that are largely the result of the Obama Administration. If a company replaces a full-time employee with two part-time workers, the statistics count that as a job gain. But this only holds up if you count quantity while ignoring quality. The view from the street looks quite different, as workers prefer one good job to several bad ones.
It appears that investors are no longer signing up for optimism, either. Normally, a much stronger than expected non-farm payroll report would have ignited a market rally, but this one ignited a rally in gold. Which at one point neared a high of $1,280 per ounce (gold was up 3% for the week).
The strong jobs report should have convinced investors that the feds would raise rates, which would hurt gold. But that didn't happen. The markets have started to figure out that the jobs numbers are meaningless and that soon they will roll over to mirror the bad data emanating from other sources.
I don't expect that the President will ever officially acknowledge that the economy has weakened, let alone relapsed into recession. He has walked too far out on his rhetorical branch to walk it back. As a lame duck, he really has no incentive to do so. Such admissions would undercut the campaign of Hillary Clinton, who is running as the logical successor to carry his torch.
But Janet Yellen is in a very difficult spot. If she continues to ignore the growing signs of recession, she runs the risk of letting one develop prior to the e******n. This would favor the Republican challenger, whether it is Donald Trump, or Ted Cruz, neither of whom would be inclined to reappoint her as Fed Chairwoman, if elected. Allowing the Greenspan bubble to bust on Bush's watch sealed John McCain's fate, allowing Obama to ride a wave of v**er outrage into the White House in 2008. Yellen does not want Trump to catch a similar wave in 2016.
As a result, I expect the fed to soften it's rhetoric in the very near future. They will promise that the punch bowl is going to remain on the table for the foreseeable future. This means that the market movements that have defined 2016 thus far may accelerate in the months ahead, and may provide relief for investors in commodities and foreign currencies who have had the patience to wait out the nonsense
Obama Peddles Economic Fiction, Ignores Fact br By... (show quote)


No different than any other LIBTURD DEM C****Ecrat

Reply
Mar 25, 2016 21:27:49   #
DamnYANKEE
 
fuzzybill wrote:
I wish we had another John Wilkes Booth to take care of things.


LHO :thumbup: :thumbup: :thumbup: :thumbup:

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