Obama: The Economy's Great, Now Shut Up and Give Me a "Big Round of Applause"

President Obama, amidst news that the employment rate has increased to 9.6 despite his declaration that this season was a "recovery summer," stated today that the economy is doing great.  Then, during his speech, he demanded people applaud him, stating that the jobs he has created "deserve a big round of applause:"



At times you honestly wonder if he believes the tripe that he is spewing.  He "deserves a big round of applause?"  There's spin and then there's actually believing lies and having the arrogance to back it up.

Don't forget to comment and to bookmark our site!

Consider advertising on our site!

Proof: Democrats at Fault for the Recession

Claims have been bandied about that President Bush was at fault for the economic down-turn that began in late 2007.  Until now, Democrats have pointed the finger at our 43rd President, stating that he single-handedly pushed our nation to the brink of economic collapse.  That stops today.  Examining unemployment, national debt data, and GDP growth, the truth becomes clear and apparent.  President Bush was not at fault for the recession we are in.  The Democrats who took over Congress in 2007 are.

From 1995 to January of 2007, Republicans held at least one house of Congress.  However, in the 2006 mid-term elections, Democrats won control of both the House and Senate.  They took their new offices in January, 2007.  Soon after that time until now, the United States has entered a deep recession, often attributed to President Bush.  However, examining the actions of the Democratic Congress and the effects that came, the truth is revealed.

Unemployment is a figure that commands the attention of everyone, from the rich to the poor.  Examining its data seems the logical place to start.  While President Bush and Republicans controlled Congress, unemployment stayed around 5%, increasing by slightly over 1% after 9/11, from 4.7% to 6.3% in January of 2002.  However, it eventually fell to 4.1% by the time of the November 2006 election.  After Democrats took office, they passed incredibly expensive new bills, including raising minimum wage and the CLEAN Energy Act.

Under the Democrats, unemployment started to balloon.  It stated to climb, rising past 4.5%, past 5%, past 6%, and past 6.5%, all the way to 8.5% by the time they had been in office for just two years.  By then, President Obama had been inaugurated, and unemployment continued to rise as spending increased.  This chart explains, in depth, the bills Democrats passed, and the effects they had from November 2006-March 2010 (click for a sharper, bigger image):

As you can see, the massive new spending that has been taking place from 2007-the present has had a major effect on unemployment.

A large National Debt data is also something that Democrats like to blame President Bush for.  However, examining our debt as a percent of our GDP shows the truth again.  This number sounds complicated, but in fact it is pretty simple.  "Our debt as a percent of our GDP" simply means that if our GDP is $100 and our debt is $60, then our "debt as a percent of our GDP" is 60%.  From 2001-2007 (when Republicans left office), the percent of our debt grew from 57.4% to 65.6%, or 8.8% (around 1.2% a year).  Though the number did rise, you must take into account 9/11, the devastation from Hurricane Katrina, and the wars in Afghanistan and Iraq.  Further, from 2005-2007, it slowed to an average of .5% per year, which means it may have began to go down in the near future.

Then Democrats took office.  In their first full year in office, the debt as a percent of GDP rose 4.6%, from 65.6% to 70.2%.  The next year was even more astounding, as the percent rose 15.9%, to 86.1%.  So far this year, the percent is up another 5% to 91.1%.  This graph explains in greater detail (click for a better image):

See the huge spike on the right side?  That's when Democrats took control of Congress.

The growth of our very economy is also very important to examine.  Under President Bush and the Republican Congress, our GDP grew on average around 3%, peaking in the fall of 2003 to nearly 7%.  The GDP only decreased in the immediate aftermath of 9/11, and that was only for one quarter.

Then Democrats took Congress.  At the beginning of 2008, our GDP sharply dropped.  By the end of 2008, it was retracting at a rate of almost 7%.  This graph shows everything in more detail (click for a bigger, sharper image):

The fall in growth under Democrats is amazing.

Examining this data, there can only be one conclusion: the United States entered our recession as the result of the Democratic takeover of Congress in 2007.  The truth is out.  Once again, the Democratic strategy of blaming President Bush for everything is revealed to be a lie.  It is quite possible that the only way to remedy the recession we are in is to once again elect a Republican majority.

The truth is out.

If you like this story and favor the truth, please consider submitting this to Reddit, Digg, StumbleUpon, or any forums or people that you think may be interested.

Don't forget to comment and to bookmark our site!

Consider advertising on our site!

GDP Growth Down to 1.6%

The economy appears to be slowing further as GDP growth has fallen yet again. After the quick sugar rush of the stimulus pushed annual GDP growth to 3.6% earlier this year, the rate is dropping. According to the Commerce Department that number has slipped to 1.6%-- and imports hiked, weakening American industry.

Gross domestic product growth previously was estimated at 2.4 percent and analysts had feared it would be pushed down even more sharply. But robust business investment and a slight firming in consumer spending partially cushioned the blow from imports.

What a great recovery summer, Obama!


Don't forget to comment and to bookmark our site!

Consider advertising on our site!

New Home Construction Tumbles 3.1%

 Some more terrible news from the supposed "Recovery Summer" that Vice President Biden proclaimed earlier this year. Apparently, along with jobless numbers going up, a falling GDP, and mounting trade and fiscal deficit, we have some more bad news. In July the rate of new home construction fell a remarkable 3.1%.

China Now World's Second-Largest Economy

Some interesting news from the economic and geopolitical side of things. The People's Republic of China has surpassed Japan to become the world's second-largest economy.

Experts say unseating Japan — and in recent years passing Germany, France and Great Britain — underscores China’s growing clout and bolsters forecasts that China will pass the United States as the world’s biggest economy as early as 2030. America’s gross domestic product was about $14 trillion in 2009.

“This has enormous significance,” said Nicholas R. Lardy, an economist at the Peterson Institute for International Economics. “It reconfirms what’s been happening for the better part of a decade: China has been eclipsing Japan economically. For everyone in China’s region, they’re now the biggest trading partner rather than the U.S. or Japan.”

 Pretty interesting, especially considering China's growing between 5-15% per year while we may go back to negative growth...


Don't forget to comment and to bookmark our site!

Consider advertising on our site!

"Recovery Summer" Over: Economy To Slow Further

 Bloomberg News has a fairly depressing but not all-that-surprising article today stating that the growth of the economy may be drying up after the short ill-fated sugar rush of the stimulus. With factory orders receding and the trade deficit increasing, the United States may be in for tougher times still.

The U.S. trade deficit widened by $7.9 billion in June, the most since record-keeping began in 1992, to $49.9 billion, a report from the Commerce Department showed. Exports posted the biggest decline since April 2009.
The figures prompted some economists to reduce estimates for second-quarter growth. David Resler, chief economist at Nomura Securities International Inc. in New York, said the economy probably grew at a 1.3 percent pace. 

And expect more contractions next year when taxes increase and inventories tumble.

Don't forget to comment and to bookmark our site!

Consider advertising on our site!

Economy Sheds 131k Jobs

Some more bad news for the economy as 131,000 jobs left the economy last month. While overall private employment did increase over 70,000, 200,000 public jobs (mainly census) disappeared. This is more evidence that the economy is slowing down and that the effects of the stimulus were far fewer than advertised and far more temporary.

Plus we lost almost 100,000 more jobs than previously believed in June, leaving us down over 200,000 that month.

Ouch.

Don't forget to comment and to bookmark our site!

Consider advertising on our site!

Interview With Bill Frezza

 Jumping in Pools is proud to present its 103rd interview in our ongoing series. Today we are interviewing Bill Frezza, who is a partner with Adams Capital Management and is an economic expert. His columns have appeared at Fox Business and RealClearMarkets. One of his recent articles explains that by removing the corporate income tax the economy will grow by leaps and bounds, removing our unemployment problem. We appreciate the time he took to participate in this interview.

1. Do you expect that the economy will face another downturn next year when the Bush tax cuts expire?

Yes, of course. A country cannot tax and spend its way back to prosperity. If an attempt is made to do that our current jobless recovery will turn back into a jobless recession.

2. Has President Obama been better or worse for the economy than you had anticipated?

I expected the worst from a president with Barack Obama’s economic views. I did not realize his leadership skills were as bad as they have proven to be, turning over the legislative agenda to Harry Reid and Nancy Pelosi. On balance, then, Obama has been worse for the economy than I expected.

3. What is the best part about being a columnist?

It’s a great way to vent without boring my friends and dinner companions to death.

4. Do you foresee the federal budget deficit returning to manageable levels if the Democrats retain control of the White House and both Houses of Congress?

Not a chance. The best thing that can be said if the Democrats hold on to both houses is that there will be no one else to blame when Obama comes up for re-election, hence he will go the way of Jimmy Carter. The long term problem, however, is that when Republicans gain power they spend like Democrats.

5. Will California be able to solve its debt problems without having to declare bankruptcy?

I do not believe there is a legal mechanism for a state to “declare bankruptcy” and thereby seek protection from creditors. I do believe we are going to the California default on numerous financial obligations include bond payments, pension payouts, vendor payments, and state worker payrolls.

6. Any thoughts on running for office at some point?

If nominated I shall not run. If elected, I shall not serve. :)

Don't forget to comment and to bookmark our site!

Consider advertising on our site!

Massive Upswing in Jobless Claims

The number of Americans who are claiming jobless benefits has surged over the last week as former temporary census workers are thrown out of work and the economy appears to be dipping back down. Jobless claims jumped almost 10% over last week, which was assuredly a poor sign.

The Labor Department says new claims for unemployment insurance jumped by 37,000 to a seasonally adjusted 464,000. Analysts expected a smaller rise, according to a survey by Thomson Reuters. 

Expect a larger increase as summer jobs begin to peter out.

So it looks like the "recovery summer" is not going as well as advertised.

Don't forget to comment and to bookmark our site!

Consider advertising on our site!

Interview With Lee Ohanian, UCLA Economics Professor

Jumping in Pools is proud to present interview number 101 in our ongoing interview series. Today we are interviewing Lee Ohanian, a professor of economics from UCLA. He received his Phd from the University of Rochester and is advising the Federal Reserve Bank of Minneapolis. He wrote a fantastic piece about the causes of the Great Depression which caught my eye last year. He was also interviewed by Reason and has been featured on Forbes.

1. During the current recession, do you believe that unemployment has peaked or may rise further?

Unemployment has likely peaked, but it is very worrisome that it is not coming down, despite the fact that the recession hit bottom a year ago. Since that time, real output has been growing, but jobs are not coming back.

2. Do you foresee a period of inflation exceeding 5% annually within the next decade?

Inflation is very hard to forecast, based on my work with Atkeson. Five percent is certainly possible, and higher is also possible. It will depend on the Fed's ability to withdraw liquidity when broader measures of the money supply begin to rise.

3. Which do you believe was a larger influence in damaging the economy: the banking collapse or higher energy prices?

Banking collapse was damaging, but was over very quickly. The most troubling issue now is that energy prices are down, and the banking sector has been restored, but jobs are not coming back.

4. How will liquidity affect the market in the next five years?

There is a lot of liquidity in the banking system, so there is the potential for banks to make lots of loans. The reason they aren't doing much lending now is partially because the demand for investment is way down, reflecting the weak economy.

Don't forget to comment and to bookmark our site!




Consider advertising on our site!

Economy Loses 125k Jobs

The job market shrunk for the first time in six months, leading to fears of a stalled recovery. The unemployment rate dropped, however, as more workers became so disgusted with the job search that they dropped out of the employment pool altogether.

Apparently, many of the layoffs came from census positions, just as last month's report was inflated by census jobs added. However, only 83,000 private sector jobs were created. While I appreciate any jobs being fostered at all, this is far below the minimum requirement to even keep the economy stable.

There was even more bad news:

In a separate report, factory orders fell by 1.4 percent in May, the Commerce Department said. It was the first decline after nine months of gains and the biggest drop since March 2009.

Damn. Thanks, stimulus!

Don't forget to comment and to bookmark our site!

Consider advertising on our site!

A Depression in 2010?

A look into an interesting article linked at RCP.

There are eerie, if crude, parallels now. The welfare state is today's equivalent of the gold standard. With aging societies, advanced countries have promised more benefits than their tax bases can support. Hence, high government debt. Greece is merely the canary in the coal mine. But politicians resist cutting popular benefits except under extreme pressure. It takes a crisis. Greece, again. Another unsettling parallel is the global economy. The United States' leadership since World War II is eroding before China's ascent. There's a danger now, as then, of a power vacuum. Witness the long delay in coming to Greece's aid. No one country acted decisively, even as markets grew nervous.

Hmmmm.

Bookmark our site!

Consider advertising on our site!

BREAKING-- Dow Fell 1,000 Points

We have been watching as the Dow Jones Industrial Average collapsed 998 points during afternoon trading on fears of the Greek debt situation. It also came as Proctor and Gamble lost 50% of its value briefly. The Dow is currently down 260 points or about 2.4%. It was one of the largest single-day drops in the Dow's history.

The euro plunged almost 2% and financial stocks sold off on fears that Greece's debt crisis will spread to other high-debt European nations like Portugal and Spain. Underscoring the volatility on Wall Street, the VIX, or so-called fear gauge, soared 50% to fresh 52-week highs. 

“This is a currency crisis that has the potential to blow up into a global financial crisis,” said Peter Kenny, managing director at Knight Capital Partners. “The only thing that’s going to turn this thing around is action.”

Wall Street bounced off its lows, regaining more than 500 points, as the markets recovered from severely oversold conditions.

In good news, it appears that the Dow may rebound in triple digits tomorrow.


Bookmark our site!

Consider advertising on our site!

Home Sales Improve 27% Last Month

Bloomberg is reporting that existing home sales have increased over 25% over the last month. Existing sales increased 27% in March 2010. According to the article it would now appear that the narrative of economic recovery is heating up:

Stocks rose and Treasuries slid as the reports pointed to pickups in housing, business investment and exports that may benefit companies from builders such as Pulte Group Inc. to makers of capital goods including Eaton Corp. The outlook for the rest of the year hinges on job gains that will spur consumer spending, which makes up 70 percent of the economy.

“The pieces are falling into place for a strong recovery,” said Gus Faucher, director of macroeconomics at Moody’s Economy.com in West Chester, Pennsylvania. “We’ve got strong business investment and we’re going to have some investment in residential” real estate.

Maybe the recovery is starting. But remember that we had strong home sales in 2007 and look at what happened the next year.


Bookmark our site!

Consider advertising on our site!

Biden Promises 500k Jobs Soon

Well, at least Joe Biden is making predictions about how much the economy will or will not come back. Maybe the expanding White House staff alone will create 500,000 jobs alone. Maybe all of the lobbyists they hire will create the remaining jobs we need for a recovery.

Vice President Biden is predicting a half a million jobs will soon be being created every month in the "recovery."

We had almost 200,000 jobs created last month, but over a third of those were created by the census:

"All in all we're going to be creating somewhere between 100[,000] and 200,000 jobs next month, I predict," Biden said, according to a pool report, adding that he "got in trouble" for a job growth prediction last month. "Even some in the White House said, 'Hey, don't get ahead of yourself.' Well, I'm here to tell you, some time in the next couple of months, we're going to be creating between 250,000 jobs a month and 500,000 jobs a month."

We have a firm barometer to judge the Obama Administration on now.

Bookmark our site!

Consider advertising on our site!

California at 12.6% Unemployment

So you're still asking yourself how the powers of big government might be bad for the country? Well, just ask the fine people of California who face a 12.6% unemployment rate even as the national rate is now below 10%. Now we see that CA voted for President Obama in 2008. Does the article give any further trend?

Michigan leads the nation with a 14.1 percent unemployment rate, followed by Nevada at 13.4 percent.
California was tied with Rhode Island for the third-highest jobless rate.

 No kidding. Four for four.

Bookmark our site!

Consider advertising on our site!

More Good News: Insurance Costs Up 17% Due to Mandatory Purchasing

Some more just perfect news coming in the wake of the passage of the ObamaCare law last week. Apparently it turns out that by forcing people to purchase things they don't want from a limited pool actually increases the cost of the item. In this case, it's expected to raise health care insurance by 17% in four years when it becomes mandatory for all adults to purchase insurance.

Now, I thought that the mantra was that the law would not increase the cost of either health care or insurance. Now that it's not even fully implemented yet we're looking at an increase of 17%!? And that's just the beginning of the new regulations. Just wait until later when there are more restrictions on the health insurance industry and much higher demand.

The higher costs will pinch many people in their 20s and early 30s who are struggling to start or advance their careers at a time when the unemployment rate is at a 26-year high.

In addition, think of it this way. New York requires all drivers to have car insurance. The result? New York has some of the highest car insurance rates in the country. And if that's the case in just one of fifty states, just wait till this kicks in.

Bookmark our site!


Consider advertising on our site!

American Income Plunges Under Obama

The Wall Street Journal is reporting that since President Obama entered office in January of last year American incomes have fallen in over 40 states.

Nationally, personal income from wages, dividends, rent, retirement plans and government benefits declined 1.7% last year, unadjusted for inflation.

Change your checkbook can believe in! Hopefully you have some change left...

Bookmark our site!


Consider advertising on our site!

Gas Up Over $1 Per Gallon Since Obama Came into Office

Since January of 2009 when President Obama took office gas has increased in price by about 50% or about $1.00 per gallon. The explanation is very, very clear in the Washington Times piece about it.

"The reason that it dropped is because the U.S. sent a signal to the markets, by dropping the moratoria, that we're going to drill on our lands. Obviously, we never followed up, and thus you see the crisis gradually rising," said Rep. Doc Hastings of Washington, the ranking Republican on the Natural Resources Committee.

Of course the President ingeniously reversed President Bush's orders to allow more drilling offshore. Remember "drill, baby, drill"? Remember how Joe Biden ridiculed it? Gas is at $3 with no major crisis and a floundering economy. A major crisis coupled with a great economy (unlikely, I know) could get the price up near $5-$6 per gallon.

Bookmark our site!


Consider advertising on our site!

Obama: Capitalism Could be Facing 'Slippery Slope'

"Off the record" comments detail President's plan to transform economy
September 16, 2009
Peter Acheson

The White House is condemning this morning reports that an "off the record" conversation took place in which the President described his plans to revamp the US economy.

The reporter, who wishes to have their identity withheld for safety purposes, states that in early September the President agreed to an interview offer. "I knew that President Obama would give me the same talking points about Health Care and the Stimulus," the journalist stated. "But he didn't really open up.

"I knew there was something more. Too many questions were shoved aside, too many were ignored; I figured that I had to make him comfortable, so I told him that the rest of the interview was off the record. That's when the interview really began."

According to the source, the President began to answer questions much more directly and candidly. "Before, I'd ask him about the Stimulus and he'd say it did what it was supposed to, that it saved an ailing economy. But after, he went into greater detail; he described some of its faults, things he wished he could have done differently."

However, the interview strayed into the unusual when the source asked the President about the US economy as a whole. "I just meant to ask what he thought the economy was doing, would we come out of the recession with new growth, stuff like that.

"The President caught me totally off guard. He began talking about the struggle that capitalism was facing in the coming years, that if we not careful, it would fall like feudalism did. He said that anyone who knows anything of history knows that great social changes are impossible without upheaval and that we must avoid that by integrating 'new' practices into the economy."

According to the journalist, the President proposed plans to regulate the economy heavily and enable new government oversight into industry. "'We saved the car industry,' he told me. 'Why should we stop there?'"

"I'm not proud of what I have done," the source stated, "but this is information I just couldn't sit on."

The White House responded quickly, saying that the writer "broke all journalistic integrity" by releasing the conversation after promising it was off the record. President Obama could not be reached for comment.



Bookmark our site!

Consider advertising on our site!