Economy Strong and Growing, Job Creation New High–Oops

I thought the economy turned around. Didn’t we get that impression during the election? When you wondered how fewer jobs equaled lower unemployment, you were told that you were being too negative. Now we know the economy shrank ever so slightly or at least did not grow in the last quarter, and now unemployment is inching back up. Part of the shrinkage was the fact manufacturers did not build more inventory for Christmas but sold it off because they did not have confidence in the economy. If that were not true, the economy would have had very tepid growth.

What is clear is that America is stuck in a Japan lost decade scenario with little hope of recovery anytime soon. High Debt and more regulations equal slow growth where ever it is tried.

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About David Anderson

Councilman David Anderson is a citizen activist who has served the community in several areas. He is a member of the Academy of Dover Charter School board of directors, a former Dover Human Relations Commissioner, past Chair of Delaware Right to Life PAC, Proud member of the Delaware Army National Guard, former Because We Care Inc. alternative school board member, Republican committee person, and co-founder of the Delaware Initiative and Referendum Coalition. He is currently Huck PAC state coordinator.

28 thoughts on “Economy Strong and Growing, Job Creation New High–Oops

  1. But corporations and the 1% are doing better than ever, while the middle class gets hosed. That’s the Bush tax cuts working as planned.

  2. Yes David, Obama and his cohorts told us that the economy had turned around and of course, during his administration. So of course, he deserved to be reelected.
    But isn’t it all George Bush’s fault?

  3. alpha writes in #2 “But corporations and the 1% are doing better than ever, ”

    The stock market is soaring because the Federal Reserve is pumping money into the system, “printing” (electronically creating) phantom dollars.

    The first place money inflation is felt is in the stock market, because the Federal Reserve works through financial institutions. So when the Fed is pouring phantom money into the economy, the first place it hits is the stock market.

    So when you see the paradox that the stock market is soaring while the economy is languishing, sometimes (not always but often) it is because the Fed is inflating the money supply and pouring fake money into the system.

  4. Jon, now I’m confused over what you just said…. if…

    “The stock market is soaring because the Federal Reserve is pumping money into the system”

    But…

    sometimes (not always but often) it is because the Fed is inflating the money supply and pouring fake money into the system.

    Are you making stuff up? Because if I’m always driving to Washington DC, except when I’m driving to Ocean City, Maryland, then I’m not always driving to Washington, DC.

    Here are some more.

    If birds are always flying except when they are on the ground. I guess they aren’t alway flying.

    if Republicans are always right except when they are wrong. Well i guess they aren’t always right.

    If Republicans know that always cutting taxes and cutting spending will grow us out of a deficit, except when that Republican is Ronald Reagan who became convinced that his initial tax cuts would increase the deficit too much so the pushed the TAX INCREASE EQUAL TO 1% OF THE GDP in order to keep the deficit from ending his presidency…. well, then, …I guess always cutting taxes and cutting spending doesn’t always work for our economy….

    What it appears Jon, is that you are creating a statement out of thin air, and then using a random pieces of arbitrary evidence to support it…..

    How can something always be true, except when it isn’t?

    :)

  5. But corporations and the 1% are doing better than ever…

    No, they’re not doing ‘better than ever’…although the CEO’s of green and bailout companies sure got nice golden parachutes or bonuses, courtesy of BO.

    How could anybody think that two people who’ve never run as much as a lemonade stand in their lives- BO and Geithner- could ‘fix’ the economy. You’d be better off with The Three Stooges in charge.

    Now, raise taxes. That should really help.

  6. Kavips, let me help you out.

    Right now the Federal Reserve is pumping money into the system like crazy to try (in vain) to stimulate the economy. As David points out, this kind of strategy failed in Japan and led to Japan’s “LOST DECADE” of stagnation which I think actually lasted 20-25 years, long after the
    stagnation earned a snazzy name in the first decade.

    It is a fact that right now the ONLY reason the stock market is rising is because the Fed is pumping money into the financial markets.

    This is why the stock market is moving contrary to the actual economy.

    A rising stock market does not necessarily mean a strong economy or that businesses are doing well.

    It is often the case that when the stock market is rising but the economy and unemployment are stagnating it is because the Federal Reserve is playing games with the money supply

    Right now it is 100% a fact that that is what is going on with the stock market at this point in time.

    The point is that a rising stock market does not always mean that busineses are doing well.

    Another reason is that traders trade on their expectations of what OTHER people are thinking, not based on realty.

    So if stock traders believe that everyone else thinks th stock market is going up, they will jump in and try to ride the markets up, and then jump off before to collapses again.

    So certain news headlines will cause people to jump in the stock market, thinking they can jump out again after they make a quick buck.

  7. So if stock traders believe that everyone else thinks the stock market is going up, they will jump in and try to ride the markets up, and then jump off before to collapses again.

    Somewhat like ’99.

    When riding a stock up in a sucker’s market (one driven up by big accounts, like this one), it’s wise to utilize the ‘stop order,’ which instructs the broker to sell if a stock falls to a certain price. This ‘stop’ must be adjusted upward as the stock climbs. This technique will allow you to ride up without taking the inevitable ride down. Sure, it could kick-in and then the stock turns back up- if so, you can get back in if you feel it’s warranted.

  8. Rick

    The stock market has been nothing but a giant Ponzi scheme since the global economy tanked.
    The only people making money in the market are the very large global investors.
    They’re playing the market like finely tuned fiddle, removing their profits at exactly the right time, driving down the market a few hundred points to draw the suckers (small investors) in, while sitting in their palaces laughing at the new group of “poor schmucks” that they have suckered in.
    These large global investors have gotten most of the serious money out of the market and now they are after our “pocket change.”

  9. Rick
    But the worst part of it is: Obama knows exactly what is happening and is printing money to give the impression that the American and global economy are slowly recovering, while knowing this is false. He is the biggest con artist in the world and he’s getting away with it. He will continue to keep the market afloat until he leaves office, then blame it on the next guy.
    Right now, he’s still using Bush as a whipping boy and what’s more, he’s getting away with it. The more he suckers and lies to the progressive liberals, the more they love him. He’s spreading money around to his friends like their is no tomorrow.

  10. The simplest explanation is usually the correct one. In this case, the simplest explanation is “superstorm” Sandy, which put most of the economy of the New York City area out of commission for a week or more. As the federal disaster funds are spent, it should act as a stimulus, so when these numbers tick up in the next quarter, remember that the spending, too, is temporary.

    That said, what y’all are saying about the printing of money is true. And this is why I have been saying for years that the path we (the government) will choose to escape our debt is inflation. Neither side can find the votes to either cut spending or raise taxes, so we’ll go with the course of least resistance — printing money.

    This is also the course that has been taken by every past society that has faced problems similar to ours. I don’t believe in American exceptionalism enough to think we’ll suddenly change human nature.

  11. Yes, the simplest explanation is the increased costs being imposed by Obama Care and a flood of new regulations coming out of Obama Administration.

    If you hit the brakes, the car will slow down.

    Liberals don’t seem to be able to figure that out.

  12. Actually, no. The taxes imposed by Obamacare come nowhere near the amount of the drop in economic activity caused by the storm.

    The things you — not all conservatives, just you — can’t seem to figure out is a list too long to type here.

  13. Yes, the simplest explanation is the increased costs being imposed by Obama Care and a flood of new regulations coming out of Obama Administration.

    Looking at the election, Romney Inc. wouldn’t have stopped the trends and the bureaucracy and the power of the global banksters, etc. Who was his top economic adviser or whatever, again? Wasn’t that the same guy who appeared in Inside Job and got a little upset when they started asking about his speaking fees?

    If you hit the brakes, the car will slow down.

    That’s a good metaphor. Because that’s all you really seem to be doing, driving off a cliff slowly or accelerating and getting it over with. In fact, I know people who made investments and decided to step on the accelerator (i.e. Obama) to profit. They also seem to want to see stuff happen in their lifespan, especially to the “sex in the city” vote and all the free birth control coverage they thought that they were going to get from winning the war on women.

    Hatred? It’s pathetic. But they’re right in their calculations with respect to the single women vote chasing birth control down the street. I.e. there’s no utopia of tolerance somewhere over the main stream media’s rainbow that’s entertaining them now.

    Look at it this way, do the banksters have the health of men or women at heart? If not, then why support being forced to give them bigger pools of “federal reserve notes” to supposedly ensure that you get coverage? How many times does the ruling class have to dangle a carrot in front of people to get them to pull the cart before they realize that they’re always paying the same price to eat the carrot at the end of the day? Maybe next time it’ll be in reach and things will get better in reality where people create wealth for each other and techniques in the real world.

    The level of stupidity and ignorance involved in believing that Romney and Obama Inc. and their banksters could ever be interested in ensuring or providing more healthcare in reality… well, it’d be pathetic if it wasn’t so tragic. The reason it’s tragic is that they do manipulate things so that they get more wealth stored on private banking islands of dubious sovereignty while debt slaves are busy chasing carrots dangled in front of them that they probably would have been able to eat without pulling the cart anyway.

    Anyway, if the time comes when the banksters manipulate their federal reserve notes even more and drive the prices of healthcare even higher… just do like the Amish do and go to Mexico? Although, doing things like that and paying for services in gold and silver will probably be illegal if things get bad enough in our lifespans. Meanwhile, veterans with all their syndromes from depleted uranium* and so on will probably have a hard time wringing enough healthcare out of their “federal reserve notes” if the banksters that usually send them to war are not “checked and balanced.”

    (Modern politicians are a lagging indicator, as far as corrections of that sort go. If they see that people are getting angry, then they take the political stage to play pretend by entertaining the masses with the idea that they’re a leader.)

    *Ironically, people have less to fear from WMDs given that they’ve often already been subjected to similar forms of environmental contamination for the sake of global banks and so on. E.g. 9/11 rescue workers…. still waiting on BBC or CNN to investigate and report things accurately with respect to “official reports” from the EPA in that case. As it seems that the military industrial media investigates and reports on some “theories” about things more quickly than others.

  14. Geezer, it is not a one to one relationship. Maybe this is why you are a liberal. Maybe we have discovered one of the mistakes where you have gone astray.

    It is NOT the case that $1 of taxes reduces the GDP by $1. Oh, no. $1 in taxes discourages investment, effort, hiring other workers, etc. So $1 in taxes may reduce GDP by $10, not $1.

    However, what I was referring to is REGULATION, and the uncertainty regulations create.

    Businesses have to stop and figure out what their obligations are and spend time figuring out how to comply.

    The #1 depressant of the economy is UNCERTAINTY. Businesses pull WAY back and investors stop investing if they cannot predict what the effects of business investments and contracts and activities are going to be (that is, if it is much harder than usual to predict what will happen).

  15. Imagine this: the “federal” reserve attributes a million dollars to every American’s account so that everyone can afford healthcare.

    Yay!

    No? No. Because even according to the marketing of bankers, everyone knows that you can’t get a free little pony that poops rainbows of love.

    But having the Fed create debt/money in everyone’s accounts is probably still a better plan than forcing everyone to pool a bunch of “federal reserve notes” in insurance companies that will probably fail right when their CEOs become too big to jail.

  16. 12 “Yes, the simplest explanation is the increased costs being imposed by Obama Care and a flood of new regulations coming out of Obama Administration.”

    15 “The #1 depressant of the economy is UNCERTAINTY. Businesses pull WAY back and investors stop investing if they cannot predict what the effects of business investments and contracts and activities are going to be”

    Uncertainty is a fact of life and business is a part of life. If a businessman can’t handle uncertainty, swing at a curve or roll with the punches, he would have joined a monastery instead of gone into business.

  17. But regulations INCREASE uncertainty, especially when the law is changing and the government is epanding regulations.

    The greatest drag on the economy is excessive regulation, far more than taxes

  18. Also, note the liberal attitude toward business. Liberals believe that burdens on business don’t have any effect because they assume that busienss can carry any tax burdens and regulatory burdens

  19. Related:

    Up until now, Argentina’s descent into a hyperinflationary basket case, with a crashing currency and loss of outside funding was relatively moderate and controlled. All this is about to change. Today, in a futile attempt to halt inflation, the government of Cristina Kirchner announced a two-month price freeze on supermarket products. The price freeze applies to every product in all of the nation’s largest supermarkets — a group including Walmart, Carrefour, Coto, Jumbo, Disco and other large chains. The companies’ trade group, representing 70 percent of the Argentine supermarket sector, reached the accord with Commerce Secretary Guillermo Moreno, the government’s news agency Telam reported. As AP reports, “The commerce ministry wants consumers to keep receipts and complain to a hotline about any price hikes they see before April 1.”
    Perhaps they will. What consumers will certainly do is scramble into local stores to take advantage of artificially-controlled prices knowing very well they have two short months to stock up on perishable goods at today’s prices, before the country’s inflation comes soaring back, only this time many of the local stores will not be around as their profit margins implode and as owners, especially of foreign-based chains, make the prudent decision to get out of Dodge while the getting’s good and before the next steps, including such measures as nationalization, in the escalation into a full out hyperinflationary collapse, are taken by Argentina’s female ruler. Argentina Freezes Supermarket Prices To Halt Soaring Inflation; Chaos To Follow

    I guess the question for Americans is, if the military industrial media and the global banksters that own them can’t balance or hold their schemes together and a tidal wave of “federal reserve notes” were to come flooding back to their shores… how will JP Morgan’s food stamp business be effected?

    What would their new and very patriotic currency be, a new “federal reserve note” or food stamps? Could they put pictures of presidents on the food stamps to make them more patriotic?

    Also, who gets to be the “terrist” who tries to use something of value in reality as a means of trade if it came to that?

    Would local leadership or state currencies emerge with local people inevitably becoming the terrists who are detained without trial by the banksters mercenaries and so on and so forth? Etc.

    More generally… who gets to be on the terrist list if/when there is “social unrest” like the last time, except worse? Given all the precedents that have been setup with assassinations and detentions (not to mention the sooper dooper top secret assassination squads*), mercenaries and so on and so forth that America has behind the scenes now? Maybe abandoning the Constitution and any concept of the rule of law in general for the sake of a growing warfare/welfare $tate run by Obama’s global banksters wasn’t such a good idea… (Mainly because they don’t have your national security or health and wealth at heart in reality.

    Oh well.. safety first! Security first! This is all that both Blue Team/Democrats and Republicans/Red Team have demonstrated that they want at the level of “the base.” And those seeking central control and political power above all else always have to keep their bases covered, right?

    *Death squads, mercenaries and an emergent death cult.. anyone know anything about that? Probably not.

  20. Too bad Argentinians can’t eat the irony:

    The move comes days after the International Monetary Fund (IMF) censured Argentina for issuing inaccurate economic data.
    The government says inflation is below 11% but ["""""""""]economists["""""""""] say it is double.
    Analysts have accused Argentina specifically of understating the rate of inflation since 2007 in order to keep interest rate payments on its debt low, and to flatter the political regime. Google

    I guess they weren’t able to get in enough “hedonic quality adjustments” for themselves in the data, unlike military industrial economists and their media in America.

    Enjoy. Because it’s unlikely that enough “adjustments” can be made to “trickle down” from the central $tate being financed by the banksters to pay for healthcare, social security and so on in the near future. Still waiting on the latest official reports from economists in the military industrial media… apparently Argentina should invest* more in education! Not that it would really matter. They don’t have the military so they can’t have a military industrial media for economists to publish their reports in.

    Maybe from the perspective of “the base” on both sides of the welfare/warfare $tate, maybe we shouldn’t cut military spending. After all, there seem to be large returns on that investment. At least, if “fiscal only” conservatism or money is all that you care about in general.

    *Other investments don’t seem to be working out:

    Borrowers beware. If you miss a payment on your car loan, don’t go parking it in Ghana thinking it’s safe from repossession. Turns out, the long arm of the repo man reaches all the way to Africa.
    That was news to Argentina, which got a shock earlier this month when authorities in the Ghanaian port of Tema seized the flagship of the Argentinean Navy — the ARA Libertad. ….
    This story actually began more than a decade ago, when Argentina ran up some $100 billion in debt and then defaulted on the lot of it back in 2001 — the biggest sovereign default in history. Several years of negotiations with creditors resulted in most lenders agreeing to accept 30 cents on the dollar in a new bond issuance.
    But “most” isn’t “all,” and one hedge fund, NML Capital, still wants the payment on the $1.6 billion worth in bonds it bought at fire-sale prices post-default. (Repo Man Goes to Ghana to Tow Away Argentinean Navy’s Flagship)

    Side note, if you’re going to establish faith based systems and temples/banks based entirely on “full faith and credit”… then you’d better make sure that you represent priceless things in life like honor, integrity and so on and so forth.

    But is that what Obama Inc. and the banksters that finance him represent?

  21. Well good thing the US complies with the IMF’s stringent “seasonally adjusted” data reporting quality control. Or else, the US may have been expelled from the IMF too. And then who would fund the creeping bailout of Europe (aside from Germany of course)?
    The IMF censure “is not just a new error … it’s also a clear example of the organization’s unequal treatment and double standards in regard to certain member countries,” Lorenzino said. “Argentina, just as it agreed with the IMF to do, will keep working to improve its statistical procedures in accordance with good international standards.”
    So to summarize: first capital controls, then a currency crisis, then expectations of sovereign default, then a rise in military tensions, and finally – price controls, after which all out chaos usually follows.
    Study this sequence well: it is coming to every “developed” country near you in the months and years ahead.
    But, as with every other hyperinflationary implosion, there is a silver lining: the stock market is soaring… Zerohedge

  22. The simplest explanation is usually the correct one. In this case, the simplest explanation is “superstorm” Sandy, which put most of the economy of the New York City area out of commission for a week or more.

    Please, Geezer. What about before Sandy? At most, Sandy briefly exacerbated the problem. We have an out-of-control government, and until it’s reined-in, we can’t expect long-term economic prosperity. However, we can expect an ever-growing parasite class- which just happens to be what BO and the Alinskyites within the Socialist-Democrats want.

  23. Rick: About 70% of the economy is consumer spending. Sandy hit in early November, just a few weeks before the start of the Christmas shopping season. Millions of people — including several relatives of mine through marriage — curtailed their holiday spending because they will need the money to rebuild. One of my daughter-in-law’s sisters and her husband lost their house and both cars. There was no Christmas shopping in their household. Multiply that by hundreds of thousands and it leaves a mark.

    In the absence of Sandy, you would have seen the usual tepid growth rate, probably around 1%.

  24. One of my daughter-in-law’s sisters and her husband lost their house and both cars. There was no Christmas shopping in their household. Multiply that by hundreds of thousands and it leaves a mark.

    Oh, I thought it left a sort of “economic stimulus” similar to war spending by the central government (financed by banksters) so that the numbers would look good. And then when the imaginary numbers look good that creates wealth and a “wealth effect” in reality. Or something like that.. which is probably why Christie should have called the cast of the Jersey Shore to do a little song and dance to provide decentralized sources of energy in reality, etc.

    Wait, does entertainment and “illuminati” paper ponzi really illuminate all that much or have much to do with creating wealth in reality?

    Anyway, meanwhile:

    Immigration Reform And Social Security – An Unintended Consequence? – The weekend talk shows were filled with talk of immigration reform. There were long lists of consequences discussed. Yet none that I heard mentioned Social Security.
    There are said to be about 11 million undocumented folks around the country who need immigration reform. Most of them are working at any job they can find to make ends meet.
    In order to get most of those jobs, they have to supply their employers with a Social Security number. Since they are undocumented, they don’t have a Social Security number so many have to submit a false Social Security number.
    That, in turn, means a great many have FICA deducted and sent to a Social Security system from which they will never collect. For each, their employers also contribute in their name.
    If those perceptions are correct, those folks and their employers have poured millions and millions of “bonus” dollars into Social Security, yet the system remains broken.
    The same type of thing occurs when somebody works two or three jobs. If his (or her) earnings go over the FICA limit, the worker can claim a refund of the overdraft on their income tax form. The employers, however, don’t know about the other employers. So, their share of the overpayment lingers as another “bonus” in the system.
    Despite the various bonuses, the system is still going broke each day. If immigration reform comes, the undocumented may finally get a fairer break but Social Security will lose those unfair bonuses. Zerohedge

    That’s the thing about the welfare/warfare state, most people aren’t really better off than they would have been otherwise in it. Increase the theatrical production! Drag new people to the top of the pyramid scheme! Etc.

    Caring for the elderly doesn’t matter in reality to corrupt politicians and the central banksters that finance everything they do. If they cared then they would try to lead people toward storing their wealth at a local or decentralized level instead of trying to have them incorporated into huge pools of wealth for banksters to trade with each other, loot and steal from. But Joe blow Biden doesn’t care about you… imagine that.

  25. If immigration is a problem for social security and then if they try to “fix” that problem (while making a fortune for themselves in the $tate based on insider trading, etc.)…. they’ll probably only create yet another problem to fix. They are the cause of the disease that they purport to cure and care for.

    This pattern goes back to the fact that people care about each other at a local level but the top of any pyramid scheme where “shared sacrifices” are distributed draws psychopaths… like flies to a corpse.

    On a random note, if the ruling class has nothing to hide and should be like an open source network then why not install cameras in every government building in DC and broadcast everything on the internet? (Not to mention having drones follow politicians home, etc.) Isn’t that what lemmings say among themselves every time that their rights are violated… something along the lines of, “Well, we have nothing to hide… or somethin’… care for me more! Yay, they care.” (Especially the female of the species…)

    Anyway, hopium and change didn’t last long:The Most Transparent Administration Ever™

    But you shouldn’t be looking to the central $tate to guarantee your Constitutional rights anyway. I mean, it’s probably fine to rely on the federal government to safeguard or possess your rights, as long as you don’t need them. Maybe the concept of the central government providing or affording rights to citizens instead of enabling citizens to have their rights reside with them (First and Second Amendment*) is sort of like the central bankster’s paper ponzi in that way.

    *So decentralized techniques like the internet and guns in the hands of law abiding citizens must be overcome… which would have a lot of explanatory power with respect to things that go on in the “mainstream” the military industrial media (inc.). The reason that hackivists always seem to be able to get through the virtual security of the police $tate is probably this, they’re usually working for free. But if you want a paycheck… then welcome to being incorporated into the paper ponzi of the central banksters and their tin pot politicians?

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