'The Recovery That Isn’t'

Debt, Free Markets, Inflation, Labor

As you go over the alarming new unemployment numbers, remember what was said in this space with respect to that “unbeatable bit of political fraud; that fig leaf of a ‘jobless recovery’: “A jobless economic recovery is the equivalent of a housewarming for the homeless.”

It was revealed today that “employers shed 263,000 jobs in September. The losses propelled the headline unemployment rate to a 26-year high of 9.8%. U6, the Bureau of Labor Statistics’ most complete measure of unemployment, has risen to a dismal 17%. This figure includes those people who want to work full time, but have simply given up looking, or who have accepted part-time work in the interim. As it is similar to the methodology used during the Great Depression, U6 offers better historical perspective on the severity of our current crisis.”

More from Peter Schiff: “Those who do cling to the absurd belief that, absent exponential productivity gains, the economy can expand while workers are being laid off will undergo a massive test of their convictions now that it’s clear the employment picture is bleak. Today’s weaker-than-expected report on non-farm payrolls revealed that employers shed 263,000 jobs in September. The losses propelled the headline unemployment rate to a 26-year high of 9.8%. U6, the Bureau of Labor Statistics’ most complete measure of unemployment, has risen to a dismal 17%. This figure includes those people who want to work full time, but have simply given up looking, or who have accepted part-time work in the interim. As it is similar to the methodology used during the Great Depression, U6 offers better historical perspective on the severity of our current crisis.”

“Taken together with yesterday’s larger-than-expected pickup in unemployment claims (first time claims rose by 17,000 to 551,000), today’s report makes it certain that the job market is still contracting, even while some indicators like GDP and consumer confidence are moving in the opposite direction.”

“There is no question that the sense of panic has temporarily subsided. In recent interviews, Treasury Secretary Geithner has been almost giddy in his descriptions of the recovery – all the while crediting his own policies for averting disaster. Americans are once again taking the government’s bait by spending money they don’t have to buy things they can’t afford. Evidence of this trend was contained in data released earlier this week which showed that even while income growth was largely stagnant, U.S. consumers showed the biggest month-over-month increase in personal spending in ten years! With the same report showing a 25% drop in the savings rate, the source of the spending money is clear. But depleting savings and increasing borrowing does not a recovery make.”

“To really recuperate, the government must allow market forces to restructure our economy. The government and individuals must rein in their spending; we must replenish our stock of savings, allow interest rates to rise, asset prices to adjust to economic reality, insolvent businesses to fail, and wages to reflect productivity. To accomplish these goals, subsidies that distort market forces must be removed and regulations that undermine our competitiveness must be repealed.”

‘The Recovery That Isn’t’

Debt, Economy, Free Markets, Inflation, Labor

As you go over the alarming new unemployment numbers, remember what was said in this space with respect to that “unbeatable bit of political fraud; that fig leaf of a ‘jobless recovery’: “A jobless economic recovery is the equivalent of a housewarming for the homeless.”

It was revealed today that “employers shed 263,000 jobs in September. The losses propelled the headline unemployment rate to a 26-year high of 9.8%. U6, the Bureau of Labor Statistics’ most complete measure of unemployment, has risen to a dismal 17%. This figure includes those people who want to work full time, but have simply given up looking, or who have accepted part-time work in the interim. As it is similar to the methodology used during the Great Depression, U6 offers better historical perspective on the severity of our current crisis.”

More from Peter Schiff: “Those who do cling to the absurd belief that, absent exponential productivity gains, the economy can expand while workers are being laid off will undergo a massive test of their convictions now that it’s clear the employment picture is bleak. Today’s weaker-than-expected report on non-farm payrolls revealed that employers shed 263,000 jobs in September. The losses propelled the headline unemployment rate to a 26-year high of 9.8%. U6, the Bureau of Labor Statistics’ most complete measure of unemployment, has risen to a dismal 17%. This figure includes those people who want to work full time, but have simply given up looking, or who have accepted part-time work in the interim. As it is similar to the methodology used during the Great Depression, U6 offers better historical perspective on the severity of our current crisis.”

“Taken together with yesterday’s larger-than-expected pickup in unemployment claims (first time claims rose by 17,000 to 551,000), today’s report makes it certain that the job market is still contracting, even while some indicators like GDP and consumer confidence are moving in the opposite direction.”

“There is no question that the sense of panic has temporarily subsided. In recent interviews, Treasury Secretary Geithner has been almost giddy in his descriptions of the recovery – all the while crediting his own policies for averting disaster. Americans are once again taking the government’s bait by spending money they don’t have to buy things they can’t afford. Evidence of this trend was contained in data released earlier this week which showed that even while income growth was largely stagnant, U.S. consumers showed the biggest month-over-month increase in personal spending in ten years! With the same report showing a 25% drop in the savings rate, the source of the spending money is clear. But depleting savings and increasing borrowing does not a recovery make.”

“To really recuperate, the government must allow market forces to restructure our economy. The government and individuals must rein in their spending; we must replenish our stock of savings, allow interest rates to rise, asset prices to adjust to economic reality, insolvent businesses to fail, and wages to reflect productivity. To accomplish these goals, subsidies that distort market forces must be removed and regulations that undermine our competitiveness must be repealed.”

Updated: He's A Magic Man (Not)

Barack Obama, Etiquette, Europe, Foreign Policy, Politics, Sport

There are many ways in which a politician can throw his weight around and display his insularity and solipsistic self-absorption. The Obama entourage’s vulgar show of self-importance—down to the feeble-minded Talker they took along for the ride in their bid for the next Olympics—must have gotten under the collective skin of the more understated Nordic, European folks. Europeans have been first to shatter Obama’s messianic invincibility.

In a previous post, “How She Sacrifices For Us,” I wondered when the Europeans would finally get “sick-and-tired of the Obama dog-and-pony show. I assume they have some pride.”

Well, the time has arrived—and sooner than I imagined it would. But I’m not complaining. “The 2016 Games are going to Rio de Janeiro,” reports MSNBC. “Chicago was knocked out in the first round, despite in-person lobbying by President Barack Obama — one of the most shocking defeats ever handed down by the International Olympic Committee.”

The slap to Chicago was such that some IOC members were left squirming. The city’s plans for Olympic competition along its stunning Lake Michigan waterfront had long made it a front-runner and earned support from the highest possible level — President Barack Obama himself. His wife, Michelle, flew in two days before the vote to butter up IOC members, an essential part of the selection process. And Obama himself flew in Friday morning.

IOC members had seemed wowed, posing for photos with Mrs. Obama and taking souvenir shots of the president with their mobile phones. But, in the vote, Chicago was shunned.

Update (Oct. 3): THE TIMES OF ENGLAND (warning; intelligent writing ahead): “Mr Obama was greeted — as usual — like a rock star by the IOC delegates in Copenhagen — then humiliated by them. Perception is reality. A narrow defeat for Chicago would have been acceptable — but the sheer scale of the defeat was a bombshell, and is a major blow for Mr Obama at a time when questions are being asked about his style of governance.

… Chicago’s dismal showing yesterday, after Mr Obama’s personal, impassioned last-minute pitch, is a stunning humiliation for this President. It cannot be emphasised enough how this will feed the perception that on the world stage he looks good — but carries no heft.”

[SNIP]
In their understated, quiet way, the Europeans may have done us a favor. However, will a man with a messianic complex (Bush had it but, other than the Republicans, no one bought into his delusions) intensify his efforts at tyranny? On second thought, is that even possible?

Updated: He’s A Magic Man (Not)

Barack Obama, Etiquette, Europe, Foreign Policy, Politics, Sport

There are many ways in which a politician can throw his weight around and display his insularity and solipsistic self-absorption. The Obama entourage’s vulgar show of self-importance—down to the feeble-minded Talker they took along for the ride in their bid for the next Olympics—must have gotten under the collective skin of the more understated Nordic, European folks. Europeans have been first to shatter Obama’s messianic invincibility.

In a previous post, “How She Sacrifices For Us,” I wondered when the Europeans would finally get “sick-and-tired of the Obama dog-and-pony show. I assume they have some pride.”

Well, the time has arrived—and sooner than I imagined it would. But I’m not complaining. “The 2016 Games are going to Rio de Janeiro,” reports MSNBC. “Chicago was knocked out in the first round, despite in-person lobbying by President Barack Obama — one of the most shocking defeats ever handed down by the International Olympic Committee.”

The slap to Chicago was such that some IOC members were left squirming. The city’s plans for Olympic competition along its stunning Lake Michigan waterfront had long made it a front-runner and earned support from the highest possible level — President Barack Obama himself. His wife, Michelle, flew in two days before the vote to butter up IOC members, an essential part of the selection process. And Obama himself flew in Friday morning.

IOC members had seemed wowed, posing for photos with Mrs. Obama and taking souvenir shots of the president with their mobile phones. But, in the vote, Chicago was shunned.

Update (Oct. 3): THE TIMES OF ENGLAND (warning; intelligent writing ahead): “Mr Obama was greeted — as usual — like a rock star by the IOC delegates in Copenhagen — then humiliated by them. Perception is reality. A narrow defeat for Chicago would have been acceptable — but the sheer scale of the defeat was a bombshell, and is a major blow for Mr Obama at a time when questions are being asked about his style of governance.

… Chicago’s dismal showing yesterday, after Mr Obama’s personal, impassioned last-minute pitch, is a stunning humiliation for this President. It cannot be emphasised enough how this will feed the perception that on the world stage he looks good — but carries no heft.”

[SNIP]
In their understated, quiet way, the Europeans may have done us a favor. However, will a man with a messianic complex (Bush had it but, other than the Republicans, no one bought into his delusions) intensify his efforts at tyranny? On second thought, is that even possible?