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Posts Tagged ‘unemployment’

Pinks Slips Coming For 450,000 State and Local Government Employees in 2012

June 3, 2011 Comments off

shtfplan

In June of 2010 we noted that well known financial sector analyst and the woman who blew the doors open on the 2008 mortgage crisis, Meredith Whitney, was forecasting that two million government employees would see their jobs cut over coming years because of fiscal problems.

It’s happening.

Over 300,000 jobs have been cut in fiscal year 2011, and that number is about to increase 50% going into 2012:

Around 450,000 people who work for U.S. states, counties, cities, towns and villages could get pink slips in fiscal 2012, sharply up from the 300,000 positions shed this year, a report said on Monday.

The number of job cuts will rise mainly because the federal stimulus program Read more…

New signs economy’s recovery faltering

June 2, 2011 Comments off

startribune

Evan Solomon worked at the New York Stock Exchange Wednesday as fears that the economy was stalling rattled the markets.

The U.S. economic recovery is faltering, and Washington is running out of ways to get it back on track.

New reports Wednesday showed a steep slowdown in the manufacturing sector and weak private-sector job creation in May. The grim news comes on the heels of other recent indicators — falling home prices and consumer spending — that reflect an economy slowing to a limp this spring.

The data dash the sunnier expectations that many analysts had entering the year; many forecasters had expected economic growth of 3.5 to 4 percent in 2011.

Instead, the U.S. economy appears to be settling back into a pattern of Read more…

Stimulus law will cost $43 billion more than estimated

May 26, 2011 Comments off

dailycaller

FILE – In this June 18, 2009, file photo a road sign reading “Putting America to Work” and “Project Funded by the American Recovery and Reinvestment Act” is seen along Route 120 in Waukegan, Ill. (AP Photo/Jim Prisching, File)

The Congressional Budget Office said in a new report that President Obama’s economic stimulus law will raise the federal deficit $830 billion over ten years, $43 billion more than the initially estimated cost of $787 billion.

During the law’s consideration in Congress, the Joint Committee on Taxation made the initial estimate.

CBO estimated the law lowered the unemployment rate by between .6 and 1.8 percent in the first quarter of 2011 and increased the number of people employed by between 1.2 million and 3.3 million during that same period.

Obama and congressional Democrats enacted the law, arguing it would provide a quick jolt to the economy. Republicans opposed the law, saying it would increase deficits and wasn’t designed to work quickly.

CBO estimated the government spending in the law had a major impact on the economy, increasing the Gross National Product by as much as 4.6 percent in the second quarter of 2010.

However, the unemployment rate has continued to remain high since 2009, hurting Obama politically.

CBO  based its estimate on macroeconomic modelling, saying the jobs “created or saved” reports by recipients of stimulus dollars could not provide a full picture of the economic impact.

Why oil prices will spike again soon

May 23, 2011 Comments off

cnn

How long till the next oil shock?

Energy prices have been coming down this spring as fears of a Middle East blowup fade. But persistent global demand, tepid supply growth and easy money mean it may not be long till the next damaging spike, Goldman Sachs economists say.

Higher and higher

Oil prices could surge again by the end of 2012, economists Jan Hatzius and Andrew Tilton wrote in a note to clients this past weekend. They say the snail-like pace of global oil supply expansion – which Goldman projects at 1% or so annually – can’t keep a petroleum-addicted world economy rolling without prices rising, perhaps sharply.

So don’t get too used to paying a mere $3 and change for gasoline. Higher prices are on the way soon enough, thanks to stretched supplies and a Federal Reserve spigot that is likely to remain wide open for years to come.

“The fundamental story of increased oil scarcity is unchanged, and our commodity strategists now see distinct upside risks to their current forecast of $120/barrel for Brent crude by late 2012,” Hatzius and Tilton write. “So the impact of scarcer oil and higher oil prices on economic activity remains at the top of our list of worries.”

What makes higher oil prices almost inevitable is the depth of the jobs deficit in the United States. Unemployment is officially 9% but is more like 13% if you consider the low rate of labor force participation, says Bernstein Research strategist Vadim Zlotnikov. That number has fallen this year to levels not seen since 1985.

High joblessness and weak inflation will keep the fed funds rate near zero at least through next year and perhaps longer, Hatzius and Tilton write. That should help keep pushing unemployment slowly toward its long-run average of around 6% — but at the expense of further dollar depreciation, stronger global demand and, ultimately, higher oil prices.

So the selloff that has taken the crude price down to $100 or so in New York and $112 in Europe, where Brent is traded, may persist through much of 2011. But it won’t last Read more…

Signals Spain may seek bailout spelling disaster for eurozone

May 16, 2011 Comments off

rt.com

Violent protests against austerity cuts have broken out in Spain, as the country struggles to deal with record-high unemployment signaling that Madrid could possibly be next in line for an EU bailout.

Across the border, Portugal’s crumbling economy is desperate for a €78 billion rescue package. Read more…

College Conspiracy

May 16, 2011 Comments off

Forbes Predicts U.S. Gold Standard Within 5 Years

May 12, 2011 Comments off

humanevents

A return to the gold standard by the United States within the next five years now seems likely, because that move would help the nation solve a variety of economic, fiscal, and monetary ills, Steve Forbes predicted during an exclusive interview this week with HUMAN EVENTS.

“What seems astonishing today could become conventional wisdom in a short period of time,” Forbes said.

Such a move would help to stabilize the value of the dollar, restore confidence among foreign investors in U.S. government bonds, and discourage reckless federal spending, the media mogul and former presidential candidate said.  The United States used gold as the basis for valuing the U.S. dollar successfully for roughly 180 years before President Richard Nixon embarked upon an experiment to end the practice in the 1970s that has contributed to a number of woes that the country is suffering from now, Forbes added.

If the gold standard had been in place in recent years, the value of the U.S. dollar would not have weakened as it has and excessive federal spending would have been curbed, Forbes told HUMAN EVENTS.  The constantly changing value of the U.S. dollar leads to marketplace uncertainty and consequently spurs speculation in commodity investing as a hedge against inflation. Read more…

Poverty spikes to record highs in US

May 9, 2011 Comments off

presstv

The number of American people living in poverty has soared to record-high levels, with African Americans suffering the bulk of the economic hardship in the US, reports say. Read more…

Should You Buy A Home In 2011? Check Out These 29 Absolutely Crazy Statistics About The Housing Crisis

April 27, 2011 Comments off

endoftheamericandream

Has the U.S. housing market reached a “bottom” yet?  Are home prices going to start recovering?  Is the housing crisis going to end at some point?  Today there are millions of American families that would like to buy homes but they are not sure what to do.  After all, nobody wants to end up like all the suckers that bought at the top of the market and now owe far more on their mortgages then their homes are worth.  A lot of people are really afraid to take out home loans right now.  So should you buy a home in 2011?  That is a very good question.  The reality is that there are a lot of reasons why home prices could continue to fall.  Unemployment is still rampant, and American families simply cannot afford to buy homes without good jobs.  Also, lending institutions have really, really tightened lending standards.  That is really restricting the number of buyers in the marketplace.  The number of foreclosures Read more…

Nigeria rioting leaves charred bodies in streets, over 200 dead

April 21, 2011 Comments off

nzherald

The mobs poured into the streets by the thousands in the dusty city of Kaduna, separating Nigeria’s Muslim north and Christian south, armed with machetes and poison-tipped arrows.

Muslim rioters burned homes, churches and police stations in Kaduna after results showed Nigeria’s Christian leader beat his closest Muslim opponent in Sunday’s vote.

Reprisal attacks by Christians began almost immediately, with one mob allegedly tearing a home apart to look for a Koran to prove the occupants were Muslims before setting the building ablaze.

The rioting in Kaduna and elsewhere across Nigeria’s north left charred bodies in the streets and showed the deep divisions in the African nation.

While curfews now stand in many areas, it remains unlikely the unrest will be soothed before the nation’s gubernatorial elections on Wednesday.

“Nigeria has spoiled … there is no peace,” said Rabiu Amadu, a 33-year-old technician in Kaduna. “I don’t think any of Read more…