< HOME  Tuesday, May 09, 2006

Game Over - Press RESTART to Play Again

You know the game's over when the NY Post starts making sense about the economy.
THE high price of gasoline is starting to kill the economy: More than 100,000 jobs would probably have been lost last month if Washington hadn't made some very optimistic assumptions.

That's what the Federal Reserve should be considering tomorrow when it decides whether 15 consecutive interest rates hikes is enough. But it won't even come up because the facts I'm about to tell you aren't the kind that are shared by government agencies.
Last Friday, the Labor Department officially announced that only 138,000 jobs were created in April. That won't even cover the number of new people entering the workforce.

Wall Street had been expecting 200,000 new jobs, so investors used the disappointing employment number as an excuse to rally stocks based on the misguided belief that a weak economy is somehow good for corporations.

It isn't, except for the near-term and fleeting benefit that the Fed will have to think before it pulls the trigger on more interest rate hikes. The main idea behind the rate increases was to slow speculation in the housing market. That's starting to happen, but the bigger problem is that the rest of the economy isn't nearly as perky as the statistics suggest.

Take Friday's employment report as an example. The Labor Department had to work some statistical magic to even come up with the inadequate 138,000 job figure, which included a whopping 271,000 positions it believes - BUT CAN'T PROVE - were created by newly formed companies.

The government doesn't actually know if these new companies exist. The Bureau of Labor Statistics calls this its birth/death model.

The 271,000 jobs amounted to a much more optimistic assumption than even last April's guesstimate.

DO THE MATH. Without those estimated 271,000 jobs from new companies the country would have lost 133,000 jobs last month - not gained 138,000.

A chunk of those 271,000 jobs probably do exist, but the number is a guess.

And with the recent spike in oil prices there are probably more companies disappearing than the government thinks. So, unless oil prices give the economy a break, don't be surprised if you start hearing the words recession and stagflation.

The last backward-looking economic statistic was the 4.8 percent annualized growth in the gross domestic product reported recently by Washington for this year's first quarter. That number was as great as it was deceptive.

For each tick up in inflation, the GDP comes down by a tick.

The April jobs report was a warning sign. It should have been good - very good. Instead it was worse than it looked.

Fed Chairman Ben Bernanke had better take note. With energy prices already eating up so much of consumer's incomes, the Fed shouldn't push interest rates any higher.
--john.crudele@nypost.com
What Americans need to DO NOW is stop worrying about our utterly worthless dollar - it's finished. It's history. GAME OVER.

We need to START thinking about how we are going to RESTART our PHYSICAL economy - which is the ONLY economy that MATTERS, and which for the past fifty years has been completely gutted by our thoroughly corrupt FINANCIAL one.

I know some people have reservations about Lyndon LaRouche. But, nobody's perfect.

The man knows what he's talking about with respect to this nation's physical economy and what needs to be done. This video presentation on retooling the autosector to rebuild mass transit across America is essential to watch.

7 Comments:

At Tuesday, May 09, 2006, Anonymous Anonymous said...

You might enjoy some other sites with excellent ideas:
existentialistcowboy and wotisitgood4.

Keep up the good work. Cheers!

 
At Tuesday, May 09, 2006, Blogger Mike said...

Hey qrswave,

There are so many angles to take when thinking about the assault we have been taking for generations. Do you have any thoughts on the so-called secret societies/cults of the elite (ie. Skull & Bones, Bohemian Club, etc that seem to have so much influence in so many spheres, education, etc.). While much of this stuff just seems like a big fraternity, given the nature of humanity and power's relationship, it seems like these leagues of powerful are so entrenched currently, it can be overwhelming as to think of where to start, when the mandatory educational systems only handicap our ability to synthesize the world and make logical connections.
I mean I suppose the only option is to try and open the minds of the many against all odds of mental pollution.

 
At Tuesday, May 09, 2006, Blogger Mike said...

Link

 
At Tuesday, May 09, 2006, Blogger qrswave said...

Anon, thanks for the links!

Mike, I am fairly sure that secret-societies exist. But, the gross and pervasive evils that we suffer from today could not have been accomplished except in plain sight.

Evil that is openly accepted is far more deadly than anything which is hidden and despised.

Our world is a disaster zone because people believe that what is WRONG is RIGHT and what is RIGHT is WRONG.

The Federal Reserve System and all the other central banks in the world are prime examples of an open evil that is fully embraced, as is the practice of collecting interest on money loaned.

 
At Tuesday, May 09, 2006, Blogger borkafatty said...

http://tinyurl.com/j5u4x


And yet this is only the beginning.....the right to.bare arms my friends.

 
At Wednesday, May 10, 2006, Blogger Erosoplier said...

We have to stop trying to transform the world around us in our efforts to save ourselves. The physical economy is only necessary in order to sustain our biological lives. The physical economy of the past century is a biological abomination - an abomination crafted with profit for the very few as the guiding principle. We've become *so* lost as a result, so alienated from any inkling of what might truly make us happy, most of our efforts at future-building have become Quixotic.
We have to identify *inside ourelves* what we really need/want, but before we can do that we have to learn how to be honest with ourselves. We have a long way to go.
It would be a shame if we managed to turf our current masters out of their castles only to continue to live according to the rules and dictates that they, as our masters, fashioned for us. Losing your job ain't such a bad thing if it means regaining your humanity.

 
At Wednesday, May 10, 2006, Blogger qrswave said...

very eloquently said, erosoplier.

and very true.

 

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