Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19
The Narrative About Gold is Changing Again - 2nd Dec 19
Stock Market Liquidity & Volume Diminish – What Next? - 2nd Dec 19
A Complete Guide To Finding The Best CFD Broker - 2nd Dec 19
See You On The Dark Side Of The Moon - 2nd Dec 19
Will Lib Dems Win Sheffield Hallam From Labour? General Election 2019 - 2nd Dec 19
Stock Market Where Are We?  - 1st Dec 19
Will Labour's Insane Manifesto Spending Plans Bankrupt Britain? - 1st Dec 19
Labour vs Tory Manifesto Debt Fuelled Voter Bribes Impact on UK General Election - 30th Nov 19
Growing Inequality Unrest Threatens Mining Industry - 30th Nov 19
Conspiracy Theories Are Killing This Nation - 30th Nov 19
How to Clip a Budgies / Parakeets Wings, Cut / Trim Bird's Flight Feathers - 30th Nov 19
Hidden Failure of SIFI Banks - 29th Nov 19
Use the “Ferrari Pattern” to Predictably Make 431% with IPOs - 29th Nov 19
Tax-Loss Selling Drives Down Gold and Silver Junior Stock Prices - 29th Nov 19
We Are on the Brink of the Second Great Depression - 29th Nov 19
How to Spot REAL Amazon Black Friday Bargains and Avoid FAKE Sales - 29th Nov 19
Central Banks’ Gold Buying and Repatriation Spree - 28th Nov 19
Another Precious Metals’ Reversal Coming Right Up! - 28th Nov 19
Stock Market 100% Measured Moves May Signal A Top - 28th Nov 19
Don’t Look for Investing Advice in the Media - 28th Nov 19
Why You Should Buy Trailer Park Stocks - 28th Nov 19
Will YouGov General Election Forecast 2019 be as Wrong as their REAL Forecast was for 2017? - 28th Nov 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

President Obama's Jobs Speech

Politics / US Politics Sep 04, 2011 - 10:24 AM GMT

By: Danny_Schechter

Politics

Best Financial Markets Analysis ArticleNew York, Labor Day Weekend 2011: The magic wand is being readied in the White House as the President and his minions finally unwrap the mother of all jobs plans that will be revealed to the rest of us in a speech next Thursday before the cameras and Congress with the gravitas-packed aura of a State of the Union Address.


Attention, collapsing Economy: you finally have the big man’s attention. Nearly 70 organizations are pressing the President to take strong action.

Please give him a break. He’s been busy tending Empire business -- waging GWOT warfare on IraqAfghanistanLibyaYemenPakistanSomalia et.al …
Call it the greatest “long war” in American history: an unending and unbelievably expensive intervention justified as necessary to keep us safe.

We can assume that contingency plans for new wars with Syria, Iran and the Republic of Wikileaks are being drafted as we speak.

The challenge this week is to bring together all of the Administration’s sophisticated strategic planning, disciplined focus and ‘get it done’ fervor finally to straighten out this out of control economic mess.

There are jobs to produce and one big job to save.

One hardly expects any sort of mea culpa or acknowledgment that the masters of the economic universe Obama appointed, like Geithner, Summers, Rohmer and Golsbee may not have served us well, i.e., may have blown it big time.

That’s history; Obama now has as a new Ivy League advisor, Alan Kreueger, who was, in fact, an old advisor and Geithner crony.

But, lets not be negative. Forget the past and banish any suggestion of a blame game,

Except, of course, for a clear but unspoken missive for the likes of policy critics Robert Reich and Paul Krugman. To them, the White House says, “Drop Dead!”

 What do you they know?

Instead, let’s look ahead at the next media event, a now 7PM barely “prime time” (Prime Time always starts at 8)speech to Congress in which, at last, ‘do something big economic recovery secrets’ that have so far eluded us, will be revealed.

The timing couldn’t be worse. Economist Max Wolff tells us, "For the second time in monthly jobs report history we have created no new jobs. ...We continue to see consistent and large job losses at the local government level… It is particularly alarming to see cuts remain concentrated among those who work in public schools.”

The brilliant Eric Jantzen of iTulip.com says. time is up: “attempts to restart the FIRE Economy - the economy oriented around the finance, insurance, and real estate industries - will fail at the expense of the Productive Economy - the economy of goods and services produces that employs over 90% of consumers.

“If policy makers persist with this wrong-headed approach… the result will be persistent high unemployment, a depreciating dollar, rising consumer price inflation, falling home prices, and rising budget deficits.”

And. let’s not talk about our divided Federal Reserve and squeamish Justice Department which has never seen a big bank it is willing to prosecute, not to mention, the deficit buster gang in Congress who won’t provide a single centavo to do what needs doing and should have been done in the first place: a sizable investment plan to stimulate job creation.

That is, alas, a non-starter, but we need to go through the motions anyway; the “experts” on the right gloat that the stimulus failed while the experts on the left counter that it was never really tried. Both are right, but does it matter?

Each day brings new reports of more jobs lost, not found---at banks, in local, state and federal government agencies and manufacturing. When you hear the term job creation, think job destruction.

Why is this happening? The smart folks at the Economic Cycle Research Institute point to structural problems beyond the reach of any President.

Ed Harrison reports on Credit Write Downs:  “we are in a decade-long post-credit crisis struggle which will mean high unemployment even if policy makers focused on jobs (which they have not, I would add)...The likely outcome for the next decade is one of sub-par global growth with short business cycles punctuated by fits of recession.”

So, yes, while it may be wrong to blame Obama for forces beyond his control, beyond any President’s control, it isn’t wrong to ask what has taken him so long to make jobs a priority?

Just as justice delayed is justice denied, waiting too long to do what has to be done insures that that we may be beyond the tipping point, too late to get much accomplished, given the political realities and uncertainties in this government killing environment.

Economist Dean Baker thinks this delay may prove fatal. “President Obama's weak response to the recession over the first two and a half years of his presidency, explains the tidal wave of skepticism facing his widely hyped upcoming speech on jobs after the Labor Day weekend. The list of remedies leaked ahead of time does little to inspire hope.
“At the top of the list of job-creating measures is extending the 2 percentage-point reduction in the social security payroll tax. This provides no boost to the economy, since it just keeps in place a tax cut that was already there, but if the cut is allowed to end at the start of 2012, it will be a drag on growth.”
And at a time of a crisis brought about in part by banks, the golden bullet now being touted is a National Infrastructure Bank. The idea: give investors who already have too much a chance to make even more by bailing out an economy they helped wreck.
Concludes Harrison, “Ocala’s failure to understand where we are in the economic cycle and the relationship to historical precedent has been catastrophic to the conduct of economic policy and critical in his missteps. There is more to Ocala’s misfortune than a bad economy.”

So what can he do? His proposals will be skewered just because he is making them, What buttons can he push when any initiative he takes will be labeled Marxist or worse?

Oddly enough---and perhaps as a sign of the times where the people who are supposed to know what to do don’t, a banker, George Magnus, writes on Bloomberg business news that Karl Marx may actually have had the answer all along.

He says the bearded one taught us, “We have to sustain aggregate demand and income growth, or else we could fall into a debt trap along with serious social consequences. Governments that don’t face an imminent debt crisis -- including the U.S., Germany, and the U.K. -- must make employment creation the litmus test of policy. In the U.S., the employment-to-population ratio is now as low as in the 1980s. Measures of underemployment almost everywhere are at record highs.”

Concludes Harrison, “What President and Congress do now will only be relevant in the medium-term as the election of 2012 nears. I have repeatedly indicated Republicans will be unlikely to support these current job initiatives. Instead they will focus on trimming government expenditure.”

It sounds like stalemate revisited, paralysis redux.

What no one is talking about is why the jobs are gone—and a good part of the reason has to do with the attacks on unions that fought to protect American workers. As one analyst noted, at least three million of 10.4 missing jobs can be traced to a form of aggressive class war where the “weakened bargaining position of labor was achieved by the growing assertiveness of management in slashing costs to maintain share prices.”

With their work outsourced, factories gone and anti-labor laws restraining their growth, Marx’s faith in the working class going from being a class in itself to a class for itself—and the rest of us—was sabotaged.

So if Marx can’t help us, and Obama is posturing for political reasons, and the Republicans are playing at trench warfare in the interest of big business, and while the US still lacks the kinds of populist movements that are rocking the streets of Europe and even Israel, where can a breakthrough occur?

Calling our superheroes. We need you now more than ever.

News Dissector Danny Schechters film and book Disinformation. For more information, Http://www.plunderhecrimeofourtime.com.

    News Dissector Danny Schechter has made a film and written a book on the “Crime Of Our Time.” (News Dissector.com/plunder.) Comments to dissector@mediachannel.org

    © 2011 Copyright Danny Schechter - All Rights Reserved

    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules