“Mr. President, I like the coverage I have,” Laszweski said. “It is the best health insurance policy you can buy.”
Go and do your own math USA! The National Center for Public Policy Research uncovered the 1.5 million insurance cancellations have already gone out. These cancellations are all due to the mandate requiring every health insurance policy meet a requirement of a one-size-fits-all Cadillac plan that forces people to pay for coverage they neither want nor need.
ObamaCare is dead. But only and because We the People keep the pressure on those who work for us. We all concur at PBN & US Defence League we have never come close to being ashamed of a president as we have this ineffective, self-righteous community disorganizer Barack Hussein Obama -PBN
Photo President Barack Obama walks out to deliver remarks about the Affordable Care Act in the Rose Garden of the White House in Washington on Oct. 1, 2013 by Larry Downing / Reuters
By Lisa Myers and Hannah Rappleye, NBC News
President Obama repeatedly assured Americans that after the Affordable Care Act became law, people who liked their health insurance would be able to keep it. But millions of Americans are getting or are about to get cancellation letters for their health insurance under Obamacare, say experts, and the Obama administration has known that for at least read more
Ride For The Constitution is VERY real and so is every participant who loves the USA enough to give something up for this vital Republic. The disinformation by the media is irrelevant, ignore it. True journalists investigate and then report their findings, it’s called news, not rumors.
The Truckers who could not make the trip for whatever reasons are not driving, other non-truckers are not shopping and are avoiding purchasing fuel or driving. We here at PBN and US Defence League ask you to join us in support of this effort to make a difference, to be heard seen and felt. We the People are the people who OWN and RUN this Government, it is for US, and controlled by US, not special interests, political elitists or the UN who Obama is attempting to surrender our Nations Soverignty over to. We have given life and freedom to the world, and we will not lay down or roll over what our forefather and fathers have fought bled and died for.
We the People are the most important part of our nations equation, if we’re not happy, no one will be getting anything in the future. It won’t be Shutdown DC it will be Shut Down America. Every legal voice here, every man woman and child who are not in prison or illegally present have rights, and We are The People who will be sure to #MakeDCListen. -~PBN
Lord bless every trucker and truckers family and all those people who detest evil and embrace America, every American around the world even those who want to be Americans because they recognize this countries uniqueness and Love for You Lord. We pray an anointing and protection for us all In Jesus’ precious and MIGHTY Name! Amen and amen.
#T2SDA – Truckers Ride for the Constitution aka Truckers to Shutdown America #1MVetsMarch – 1 Million Vets March #2MBikersDC – 2 Milllion Bikers to DC
Credit ratings agency Fitch on Friday announced its decision to revise the U.K.’s credit rating AA+, down from its previous AAA rating.
Here’s the full text of the agency’s announcement:
Fitch Ratings-London-19 April 2013: Fitch Ratings has downgraded the United Kingdom’s Long-term foreign and local currency Issuer Default Ratings (IDR) to ‘AA+’ from ‘AAA’. The Outlook is Stable. At the same time, the agency has affirmed the UK’s Short-term foreign currency rating at ‘F1+’ and the Country Ceiling at ‘AAA’.
The rating actions follow the conclusion of the review of the UK’s sovereign ratings initiated on 22 March and resolve the Rating Watch Negative. The previous Negative Outlook on the UK’s sovereign ratings had been in place since 14 March 2012.
KEY RATING DRIVERS
The downgrade of the UK’s sovereign ratings primarily reflects a weaker economic and fiscal outlook and hence the upward revision to Fitch’s medium-term projections for UK budget deficits and government debt. Despite the loss of its ‘AAA’ status, the UK’s extremely strong credit profile is reflected in its ‘AA+’ rating and the Stable Outlook.
- Fitch now forecasts that general government gross debt (GGGD) will peak at 101% of GDP in 2015-16 (equivalent to 86% of GDP for public sector net debt, PSND) and will only gradually decline from 2017-18. This compares with Fitch’s previous projection for GGGD peaking at 97% and declining from 2016-17 and the ‘AAA’ median of around 50%.
- Fitch previously commented that failure to stabilise debt below 100% of GDP and place it on a firm downward path towards 90% of GDP over the medium term would likely trigger a rating downgrade. Despite the UK’s strong fiscal financing flexibility underpinned by its own currency with reserve currency status and the long average maturity of public debt, the fiscal space to absorb further adverse economic and financial shocks is no longer consistent with a ‘AAA’ rating.
- Higher than previously projected budget deficits and debt primarily reflects the weak growth performance of the UK economy in recent years, partly due to headwinds of private and public sector deleveraging and the eurozone crisis. Fitch has revised down its forecast economic growth in 2013 and 2014 to 0.8% and 1.8%, respectively, from 1.5% and 2.0% at the time of the last review of the UK’s sovereign ratings in September 2012. The UK economy is not expected to reach its 2007 level of real GDP until 2014, underscoring the weakness of the economic recovery.
- Despite significant progress in reducing public sector net borrowing (PSNB from a peak of 11.2% of GDP (GBP159bn) in 2009-10, the budget deficit remains 7.4% of GDP (excluding the effect of the transfer of Royal Mail pensions) and is not expected to fall below 6% of GDP and GBP100bn until the end of the current parliament term. The slower pace of deficit reduction means that the next government will be required to implement substantial spending reductions (and/or tax increases) if public debt is to be stabilised and reduced over the medium term.
The Stable Outlook on the UK’s sovereign ratings reflects the following factors.
- Under Fitch’s baseline economic and fiscal scenario, which assumes a continued policy commitment to reducing the underlying budget deficit and medium-term annual growth potential of 2%-2.25%, government debt gradually falls as a share of national income in the latter half of the decade.
- The long average maturity of public debt (15 years) – the longest of any high-grade sovereign -exclusively denominated in local currency and low interest service burden implies a higher level of debt tolerance than many high-grade peers.
- The international reserve currency status of sterling and the ability and willingness of the Bank of England to intervene in the UK government debt market largely eliminates the risk of a self-fulfilling fiscal financing crisis.
- The gradual improvement in the UK banking sector’s capital and liquidity position has further reduced contingent liabilities arising from this sector.
The UK’s ‘AA+’ rating is underpinned by its high-income, diversified and flexible economy as well as a high degree of political and social stability. The monetary policy framework as well as sterling’s international reserve currency status afford the UK a high degree of financial and economic policy flexibility. Strong civil and policy institutions and a high degree of transparency enhance the predictability of the business and economic policy environment that compares favourably with peers in the ‘AA’ category.
Weak economic performance and growth prospects, relatively high levels of private and foreign as well as public debt, along with sizeable twin fiscal and current account deficits, are weaknesses relative to rating peers.
The Stable Outlook indicates a less than 50% chance of a change in the UK sovereign ratings over the next two years.
The main factors that could lead to a negative rating action, individually or collectively, are:
- Failure to stabilise the government debt to GDP ratio over the medium term.
- Increased threat to macro-financial stability, for example arising from an intensification of the eurozone crisis or an erosion of confidence in the UK’s policy commitment to price stability.
The main factors that could lead to a positive rating action, individually or collectively, are:
- Stronger economic recovery and rebalancing of the UK economy than currently forecast.
- Government budget deficits and debt declining at a faster pace than currently projected so that GGGD is on a sustainable path towards 90% of GDP and below.
A key assumption underpinning Fitch’s medium-term fiscal projections reflected in the ‘AA+’ rating and Stable Outlook is that the growth potential of the UK economy is around 2%-2.25% pa. This assumption is based on the UK’s labour market and demographic outlook and expectation that labour productivity will revert to its long-run trend of around 2% pa. In the event that productivity and hence economic growth is permanently lower than its long-run historical average prior to the financial crisis, the fiscal outlook would be materially worse than currently assessed with adverse implications for the UK’s sovereign credit profile and ratings.
For the purposes of its economic and fiscal forecasts, Fitch assumes a current ‘output gap’ of 2.7% of potential GDP that gradually declines over the forecast horizon. However, there is considerable uncertainty over the extent and future evolution of productive spare capacity in the UK economy. According to Fitch’s simulations, in a ‘no output gap’ scenario GGGD would remain above 100% of GDP until 2018 in the absence of further structural deficit-reduction measures.
The strong institutional framework for control of public expenditure and effective tax administration alongside the broad-based political and public commitment to deficit reduction underpins Fitch’s assumption that fiscal consolidation will be sustained beyond the term of the current parliament through a combination of spending and tax measures. 3.5pp of the 6.9pp total reduction in expenditure as a percentage of GDP for the 2009-10 to-2017-18 period fall outside the term of the current parliament.
Fitch assumes that no contingent liabilities arising from the financial sector and other government interventions to ease constraints on the availability of bank credit to the private sector will have a material impact on the path of UK government debt over the projection horizon.
Fitch’s current global economic forecasts (published in the March 2013 edition of the Global Economic Outlook) are incorporated into its near-term economic forecast for the UK including the assumption that severe tail-risks to the global economy, including a break-up of the eurozone, do not materialise and oil prices remain broadly at current levels.
Fitch will publish early next week an update of its medium-term economic and fiscal projections for the UK that will supplant those published by Fitch in September 2012 (‘UK Public Finances Update’, 28 September 2012).
The ratings of related entities and transactions will be reviewed in light of today’s sovereign rating action and any changes announced shortly.
obama along with a willing media, are daily calling out a list of things that will happen when a mere $85 billion worth of budget cuts takes place in 2013 due to the agreement he signed into law and was gleefully for back in November 2011. read more
Imagine the worst-case scenario if the sequester goes through. The market nosedives. The economy implodes. Empty shelves. Riots. The feds hit the streets in force to restore order in a “national emergency.”
Sounds like something in a Third World country or Greece. It could never happen here, right? Think again, says Sarah Palin.
The former Alaska governor and Republican vice-presidential nominee believes the federal government is “stockpiling bullets in case of civil unrest.”
Palin says the feds are afraid of what might happen if the sequester goes into effect.
She writes on her Facebook page: “If we are going to wet our proverbial pants over 0.3% in annual spending cuts when we’re running up trillion dollar annual deficits, then we’re done. Put a fork in us. We’re finished. We’re going to default eventually and that’s why the feds are stockpiling bullets in case of civil unrest.”
The sequester will trigger $85 billion in immediate cuts to federal funding and $1.2 trillion over 10 years unless lawmakers reach a deal by Friday.
The prospect of civil unrest puts a chilling spin on an off-teleprompter remark then-candidate Barack Obama made in a Colorado campaign speech in July, 2008.
“We cannot continue to rely on our military in order to achieve the national security objectives that we’ve set. We’ve got to have a civilian national security force that’s just as powerful, just as strong, just as well-funded,” said candidate Obama.
Palin’s warning echoes a WND report Feb. 17 citing radio host Mark Levin’s point that federal non-military agencies have purchased enough ammunition recently not only to shoot every American five times but also engage in a prolonged, domestic war.
Why do federal agencies need all that ammunition?
The government’s official explanation for the massive ammo buy is that law enforcement agents in the respective agencies need the bullets for “mandatory quarterly firearms qualifications and other training sessions.”
The staggering number and lack of details in the official explanation, however, has led to rampant speculation, including concerns DHS is arming itself to fight off insurrection by Americans.
“To provide some perspective,” Levin noted, “experts estimate that at the peak of the Iraq war American troops were firing around 5.5 million rounds per month. At that rate, the [DHS] is armed now for a 24-year Iraq war. A 24-year Iraq war!
“I’m going to tell you what I think is going on,” Levin offered. “I don’t think domestic insurrection. Law enforcement and national security agencies, they play out multiple scenarios. I’ll tell you what I think they’re simulating: the collapse of our financial system, the collapse of our society and the potential for widespread violence, looting, killing in the streets, because that’s what happens when an economy collapses.
“I suspect that just in case our fiscal situation, our monetary situation, collapses, and following it the civil society collapses, that is the rule of law, they want to be prepared,” Levin said. “I know why the government’s arming up: It’s not because there’s going to be an insurrection; it’s because our society is unraveling.”
As WND reported last August, news that the Social Security Administration was set to purchase 174,000 rounds of hollow-point bullets for 41 locations across the country followed word of major ammo buys by the DHS and the National Oceanic and Atmospheric Administration.
A solicitation posted by the SSA on the FedBizOpps website asked for contractors to supply 174,000 rounds of .357 Sig 125 grain bonded jacketed hollow-point pistol ammunition.
An online ammunition retailer described the bullets as suitable “for peak performance rivaling and sometimes surpassing handloads in many guns,” noting that the ammo is “a great personal defense bullet.”
WND has been at the forefront of reporting growing federal police power across dozens of government agencies for more than a decade and a half.
In 1997, WND blew the lid off 60,000 federal agents enforcing over 3,000 criminal laws, a report that prompted Larry Pratt of Gun Owners of America to remark, “Good grief, that’s a standing army. … It’s outrageous.”
Also in 1997, as part of a ongoing series on the militarization of the federal government, WND reported on the armed, “environment crime” cops employed by the Environmental Protection Agency and a federal law enforcement program that had trained 325,000 prospective federal police since 1970.
WND also reported on thousands of armed officers in the Inspectors’ General office and a gun-drawn raid on a local flood control center to haul off 40 boxes of … paperwork.
WND further reported on a plan by then Delaware Sen. Joe Biden to hire hundreds of armed Hong Kong policemen into dozens of U.S. federal agencies to counter Asian organized crime in America.
In 1999, WND CEO Joseph Farah warned there were more than 80,000 armed federal law enforcement agents, constituting “the virtual standing army over which the founding fathers had
nightmares.” Today, that number has nearly doubled.
Also in 1999 WND reported plans made for the Federal Emergency Management Agency, or FEMA, to use military and police forces to deal with Y2K.
In 2000, Farah discussed a Justice Department report on the growth of federal police agents under President Clinton, something Farah labeled “the biggest arms buildup in the history of the
federal government – and it’s not taking place in the Defense Department.”
A 2001 report warned of a persistent campaign by the Department of the Interior, this time following 9/11, to gain police powers for its agents.
In 2008, WND reported on proposed rules to expand the military’s use inside U.S. borders to prevent “environmental damage” or respond to “special events” and to establish policies for “military support for civilian law enforcement.”
Most recently, WND reported that while local police have found themselves short of necessary ammunition, the federal government has been stockpiling billions of rounds for its non-military, non-FBI law enforcement officers.
Recently, other media outlets have begun to take notice of the alarming trend.
Andrew Malcolm wrote Feb. 8 for Investors.com: “In a puzzling, unexplained development, the Obama administration has been buying and storing vast amounts of ammunition in recent months, with the Department of Homeland Security just placing another order for an additional 21.6 million rounds.
“Several other agencies of the federal government also began buying large quantities of bullets last year. The Social Security Administration, for instance, not normally considered on the frontlines of anything but dealing with seniors, explained that its purchase of millions of rounds was for special agents’ required quarterly weapons qualifications. They must be pretty poor shots.”
Another recent report questions the motives of the DHS.
On Jan. 4, Ryan Keller wrote at Examiner.com: “DHS has stockpiled nearly 2 billion rounds of ammo. This is an unusually large amount for a federal agency to be stockpiling. The agency has refused to give an explanation for these purchases, going so far as to black out information on another solicitation, which is illegal without Congressional authorization or in response to national security issues.
“The typical response from the media has been that the rounds are for target practice; however, hollow points are not used for target shooting. Hollow points are too expensive and not designed for target practice; instead, full metal jacket rounds are used for training.”
(Reuters) – Egyptian President Mohamed Mursi declared a month-long state of emergency in three cities along the Suez Canal where dozens of people have been killed over the past four days in protests that his allies say are designed to overthrow him.
Seven people were shot dead and hundreds were injured in Port Said on Sunday during the funerals of 33 people killed there when locals angered by a court decision went on the rampage as anti-government protests spread around the country.
A total of 49 people have been killed since Thursday and Mursi’s opponents, who accuse his Islamist Muslim Brotherhood of betraying the revolution that ousted long-time ruler Hosni Mubarak, have called for more demonstrations on Monday.
“Down, down Mursi, down down the regime that killed and tortured us!” people in Port Said chanted as the coffins of those killed on Saturday were carried through the streets.
Mursi, who was elected in June, is trying to fix a beleaguered economy and cool tempers before a parliamentary poll in the next few months which is supposed to cement Egypt’s transition to democracy. Repeated eruptions of violence have weighed heavily on the Egyptian pound.
In a televised address, he said a nightly curfew would be introduced in Port Said, Ismailia and Suez, starting Monday.
Several hundred people protested in Ismailia, Suez and Port Said after the announcement, in which Mursi also called for a dialogue with top politicians. Activists in the three cities vowed to defy the curfew in protest at the decision.
“The protection of the nation is the responsibility of everyone. We will confront any threat to its security with force and firmness within the remit of the law,” he said, offering condolences to families of the victims.
In Cairo the newly appointed Interior Minister Mohamed Ibrahim was ejected from the funeral of one of the police officers who died during Saturday’s clashes in Port Said, according to witnesses and police sources.
A police officer at the funeral said many of his colleagues blame the interior minister for the deaths of at least two policemen during Saturday’s clashes as he did not allow the police there to carry weapons and were only given teargas bombs.
The violence has exposed a deep rift in the nation. Liberals and other opponents accuse Mursi of failing to deliver on economic promises and say he has not lived up to pledges to represent all Egyptians. His backers say the opposition is seeking to topple Egypt’s first freely elected leader.
Distancing itself from the latest flare-ups, the opposition National Salvation Front said Mursi should have acted far sooner to impose extra security measures that would end the violence.
“Of course we feel the president is missing the real problem on the ground which is his own polices,” spokesman Khaled Dawoud told Reuters. “His call to implement emergency law was an expected move given what is going on, namely thuggery and criminal actions.”
The Front, formed late last year when Mursi provoked protests and violence by expanding his powers and driving through an Islamist-tinged constitution, has threatened to boycott the parliamentary poll and call for more protests if its demands are not met, including for an early presidential vote
Mursi had invited 11 political parties, including Islamist, liberal and leftist groups, along with four top politicians to a meeting on Monday at 6 p.m. local time (1600 GMT)to work out a basis for a fruitful dialogue that would resolve the political crisis, according to a statement from his office.
The Front said it will meet earlier on Monday to discuss the invitation.
But some of the Front’s top leaders had already announced their position. Hamdeen Sabahy, a leftist politician and former presidential candidate who was one of the four invited by Mursi, said he would not attend Monday’s meeting “unless the bloodshed stops and the people’s demands are met.”
Sabahy’s Popular Current movement said in a statement the protests are due to economic and political problems that need to be addressed by policies and not through “security solutions”.
Front leader Mohamed ElBaradie described the dialogue “a waste of time” on his Twitter account.
State television said seven people died from gunshot wounds in Port Said on Sunday. Port Said’s head of hospitals, Abdel Rahman Farag, told Reuters more than 400 people had suffered from teargas inhalation, while 38 were wounded by gunshots.
Gunshots had killed many of the 33 who died on Saturday when residents rioted after a court sentenced 21 people, mostly from the Mediterranean port, to death for their role in deadly soccer violence at a stadium there last year.
A military source said many people in Port Said, which lies next to the increasingly lawless Sinai Peninsula, possess guns because they do not trust the authorities to protect them. However it was not clear who was behind the deaths and injuries.
In Cairo, police fired teargas at dozens at protesters throwing stones and petrol bombs in a fourth day of clashes over what demonstrators there and in other cities say is a power grab by Islamists two years after Mubarak was overthrown.
In Ismailia city, which lies on the Suez Canal between the cities of Suez and Port Said, police also fired teargas at protesters attacking a police station with petrol bombs and stones, according to witnesses and a security source there.
Most of the deaths since Thursday were in Port Said and Suez, both cities where the army has now been deployed.
Heba Morayef of Human Rights Watch in Cairo said a state of emergency reintroduced laws that gave police sweeping powers of arrest “purely because (people) look suspicious”.
“It is a classic knee-jerk reaction to think the emergency law will help bring security,” she said. “It gives so much discretion to the Ministry of Interior that it ends up causing more abuse which in turn causes more anger.”
The opposition Popular Current and other groups have called for more protests on Monday to mark what was one of the bloodiest days of the 2011 uprising.
Anti-Mursi protesters who have been camped out in Tahrir Square for weeks also demonstrated against Mursi’s move to impose a state of emergency, reviving memories of Mubarak’s era when emergency codes were in place for three decades and used to crush dissent and detain people without charge.
Protesters say Mursi has betrayed the revolution’s aims.
“None of the revolution’s goals have been realised,” said Mohamed Sami, a protester in Cairo’s Tahrir Square, the cauldron of the uprising that erupted on January 25, 2011 and toppled Mubarak 18 days later.
“Prices are going up. The blood of Egyptians is being spilt in the streets because of neglect and corruption and because the Muslim Brotherhood is ruling Egypt for their own interests.”
Clashes also erupted in other streets near the square. The U.S. and British embassies, both close to Tahrir, said they were closed for public business on Sunday, normally a working day.
The army, Egypt’s interim ruler until Mursi’s election, was sent back onto the streets to restore order in Port Said and Suez, which both lie on the Suez canal. In Suez, at least eight people were killed in clashes with police.
Many ordinary Egyptians are frustrated by the violence that have hurt the economy and their livelihoods.
“They are not revolutionaries protesting,” said taxi driver Kamal Hassan, 30, referring to those gathered in Tahrir. “They are thugs destroying the country.”
(Additional reporting by Shaimaa Fayed in Cairo and Yusri Mohamed in Ismailia; editing by Philippa Fletcher and Christopher Wilson)
Supporter of Keynesian economics believes it is the government’s job to smooth out the bumps in business cycles. Intervention would come in the form of government spending and tax breaks in order to stimulate the economy, and government spending cuts and tax hikes in good times, in order to curb inflation.
UPDATE: The Labor Department reported this morning that initial jobless claims last week rose by 4,000 to 371,000.
The truth is not close to the numbers the pundits and politicians share in public. Underemployment must be part of this mix. Please read and share the article by Markos Kaminis, aka the Wall Street Greek. -PBN
Nonfarm Payrolls increased by 155,000 on net in December 2012, a number that perfectly matched against the consensus of economists surveyed by Bloomberg. The Unemployment Rate was likewise perfectly placed against economists’ expectations at 7.8%, and it was unchanged from November. But America wants to know what the real rate of unemployment is.
Years ago, we were one of the first to shed light on the concept of an underemployment rate, which incorporates people who are not satisfied with their less than full employment and also includes those desperate Americans detached from the labor force. Ahead of the presidential election, Mitt Romney was talking about another version of unemployment that we also suggested Americans consider. That figure used a labor participation rate from when President Obama took office, though we would look back further to when unemployment was under 5.0% instead. It makes sense to use such a participation rate, if you believe population growth and the maturing of Americans at least matches the number of seniors retiring by choice and Americans passing away prematurely. Obviously there are demographic trends at play as well, like the aging of the baby boomers, but so much so soon? Because of the relevant issue of long-term unemployment in America today and workers falling off the labor force radar screen while still interested in working, these figures are likely closer to reflecting the true state of American labor.
The calculation of the under-employment rate, or the U-6 by government notation, takes into account the number of Americans working part-time for economic reasons and the detached workforce. Working part-time for economic reasons is equivalent to folks who would prefer full-time employment but have had their hours cut or have had to otherwise settle for part-time work. Detached workers are those Americans who have not recently looked for work, sometimes because they do not believe work exists for them today. In getting to the U-6 “underemployment” figure, we’ll need to include these groups of workers with unemployed Americans. If we add back the excluded 2.614 million displaced workers to the labor market, and include the 7.918 million underemployed part-timers in the unemployed count, December adjusted unemployment is found to be ((12.206M + 2.614M + 7.918M) / (155.511M + 2.614M)) * 100 = 14.4%. In November, the rate was ((12.042M + 2.505M + 8.138M) / (155.319M + 2.505M)) * 100 = 14.4%, or the same misery.
This data can be skewed by any of its components. Starting with the denominator, the labor force count increased in December, which would dilute the numerator and moderate the unemployment rate. Note, however, that in December the number of detached workers increased by 109K and the number of forced part-timers decreased by 220K. It’s hard to say whether detached workers disappeared off the radar screen and part-timers got fired, or if these folks found work of some sort. Most importantly, the number of people reporting unemployed status was up by 164,000. The end result of the changes in the categories netted into something less than significant enough to change the underemployment rate, matching the message of the unchanged unemployment rate in December.
Historically speaking, U-6 unemployment is improved, as you can see by the table here. However, this improvement may be for another reason which is unaccounted for by this data, which we discuss in the paragraphs below.
U-6 Unemployment Rate (Seasonally Adjusted)
What About the Forgotten?
I often talk about the great degree of long-term unemployment plaguing our nation today and how this has uniquely impacted reported employment data. The number of Americans unemployed for 27 weeks or longer was relatively unchanged in December at roughly 4.8 million. This represented 39% of the total unemployed count.
The proportion is down from recent history, though it continues to reflect poorly on the state of labor. That’s because the longer people remain unemployed, the harder it gets for them to find jobs in their specialty fields due to eroding and outdated skill sets. Many of us fear that improvement in the proportion of long-term unemployment is partly due to Americans simply falling out of the labor force count rather than finding new employment.
For this reason, some, including yours truly and more notably Mitt Romney, have been considering what the unemployment rate might be at labor force participation rates of the past. The labor force participation rate was 63.6% in December 2012. That compares against 66.4% in December 2006, which was the high for December since 2002. Now, maybe that participation rate reflected the excesses of the mortgage, construction and finance industries that resulted from greed and the fault of the rating agencies and those industries. Those faults are still bearing out in layoffs, like the significant cuts announced last year by Bank of America (BAC) and again late this year by Citigroup (C). Still, let’s calculate what the unemployment rate would be at such a participation rate, because if the economy had not been so disrupted by the financial crisis, perhaps those employed in the synthetically fattened fields might have found other work.
Applying the 66.4% rate to the civilian noninstitutional population count in December 2012, we get a civilian labor force count of 162,248,400, versus the 155,511,000 reported (Note calculation error exists because of the seasonal adjustment to the labor force count. I’ve attempted to back into that adjustment and apply it to the theorized labor force count, resulting in this figure for the adjusted labor force: 162,357,396). After that adjustment, the difference from this December’s workforce count is 6,846,396 million Americans who would be added to the unemployed count as well. So, the real unemployment rate could be 11.7% (not 7.8%) if those nearly 7 million Americans have simply fallen off the radar. Likewise, the real underemployment rate could be as high as 17.9% today.
Those are much more significant figures reflecting a poorer state of health for American labor and the economy. Now, the trend would still seem to be improving, but the data would argue for continued stimulation of the economy by the Federal Reserve and through fiscal policy. The theme of this article is to simply show what real unemployment might be, and not to get deeper into resulting fiscal and monetary policy consequences and strategy, but perhaps we’ll expand upon this in upcoming work for you. It’s clear that we need to continue to stimulate job creation in America so that we can support and grow consumer spending and personal income, and in so doing raise revenues to support our nation’s needs and growth.
If we can accomplish this while at the same time reining in excess spending and gaining control of our debt, then we might maintain an environment supportive of business. An environment supportive of business is an environment supportive of the stock market. Thus, dignified decision-making must overtake dysfunctional politics in Washington D.C. if we are to see the historical average gains of the market continue over the next several decades. Therefore, we must demand more from our politicians. Otherwise, the performance of the broader indexes, reflected in the SPDR S&P 500 (SPY), SPDR Dow Jones Industrial Average (DIA) and the PowerShares QQQ (QQQ) will diverge from their historical gains. For this reason, today’s market is a stock-pickers’ market, but one burdened by the heavy weight of macroeconomic issues. To help to lighten that burden, we must continue to seek to spur job creation, because the situation is worse than it seems as indicated by the real unemployment rate.
E15 fuel can wreck your engine, according to new data presented by auto industry trade groups. The potential costs to consumers are significant. The most likely repair would be cylinder head replacement, which costs from $2,000 (to) $4,000 for single cylinder head engines and twice as much for V-type engines. This will affect every single American. Is the Government trying to immobilize us now?
The government has approved the use of E15, a blend of 15% ethanol and 85% gasoline, but that was premature, because testing wasn’t finished, according to Auto Alliance and Global Automakers, Washington, D.C., trade groups that represent most car companies.
E10, a blend of 10% alcohol and 90% gasoline, is common at U.S. service stations. Automakers have designed their vehicles to work on that mix, but boosting it to E15 is over the line, they say.
Alcohol is corrosive and attracts moisture, properties that can threaten mechanical parts.
Alcohol has a high-octane rating, and engines designed to exploit that can produce significant power. But alcohol also has considerably less energy content than gasoline or diesel fuel, so mileage drops as alcohol content rises.
Some engines in race cars and in passenger cars sold in other countries are designed specifically to use fuel with high concentrations of alcohol. But race engines are rebuilt after every event, so offer little evidence of whether alcohol increases wear and tear in street-driven vehicles. And the long-term effects of high-alcohol-content fuel on engines in other markets is unclear.
Groups representing small-engine manufacturers and power-equipment makers have said that alcohol-blend fuels — even E10 — are bad for the engines in boats, chain saws, lawn mowers, generators and the like.
A statement today from the two auto groups cites “new results from a two-year study on engine durability” done for the Coordinating Research Council (CRC). The study for CRC was done by FEV, which the groups describe as “a longtime consultant to the U.S. Environmental Protection Agency.”
The statement from Auto Alliance and Global Automakers says:
The CRC study released today showed adverse results from E15 use in certain popular, high-volume models of cars. Problems included damaged valves and valve seats, which can lead to loss of compression and power, diminished vehicle performance, misfires, engine damage, as well as poor fuel economy and increased emissions.
“Clearly, many vehicles on the road today are at risk of harm from E15. The unknowns concern us greatly, since only a fraction of vehicles have been tested to determine their tolerance to E15,” said Mitch Bainwol, president and CEO of Auto Alliance. “Automakers did not build these vehicles to handle the more corrosive E15 fuel. That’s why we urged EPA to wait for the results of further testing.”
The potential costs to consumers are significant. The most likely repair would be cylinder head replacement, which costs from $2,000 (to) $4,000 for single cylinder head engines and twice as much for V-type engines.
Growth Energy, representing ethanol producers, in 2009 petitioned the EPA to allow E15 fuel, which it has done for newer vehicles.
But in 2008, EPA had outlined the tests needed to approve the waiver allowing E15, and those weren’t done before the government OK was given to E15, the auto groups say.
Growth Energy disputed the CRC data as being based on “misinformation and inaccurate data.”
Here’s why Growth Energy says the CRC study is worthless:
Growth Energy says:
The EPA tests were much more thorough, testing more engines for longer periods, and for 120,000 miles, and the results were consistently clear – E15 did not produce any negative effects. If that is not enough, consider the fact that NASCAR has run close to two million miles on E15 in some of the toughest engine conditions imaginable with no problems whatsoever. As a matter of fact, their extensive use of E15 has shown the benefits of increased horsepower and performance.
Here’s what the auto groups/CRC study did:
The CRC Engine Durability study took duplicates of eight different vehicle model engines spanning 2001-2009 model years. All 16 vehicles were tested over a 500-hour durability cycle corresponding to about 100,000 miles of vehicle usage. A range of engine operating parameters was monitored during the test, including cylinder compression, valve wear, valve leakage, emissions and emissions control system diagnostics. Two of the engines tested on E15 had mechanical damage. Another engine showed increased tailpipe emissions beyond the allowable limit.
This study adds to the body of knowledge on the effects of higher blends of ethanol. Ten research papers have been published on the effects of increasing the ethanol blend ratio to E15 from the current E10. In a study by the Oak Ridge National Laboratory on the impact on fuel dispensers, all gaskets, seals and O-rings swelled and showed effects that can result in leaks. The National Renewable Energy Laboratory (NREL) tested samples of service station equipment, and found that, on average, about half of the equipment failed the compatibility tests. Another NREL study found severe damage to marine engines run on E15.
Automakers advise consumers to continue to follow the guidance on fuel selection in their vehicle owner’s manuals. While automakers do market certain vehicles called Flex Fuel Vehicles (FFV) that can use up to 85 percent ethanol, these vehicles have been designed to tolerate the more corrosive ethanol, including changes to fuel pumps, fuel tanks, fuel injectors, engines, control systems, various calibration capacities, emissions systems and materials used.
Russian president Vladimir Putin claims President Barack Obama is planning to visit Russia, the outlet RIA Novosti reports.
During the campaign Obama famously got caught on a hot microphone passing along a message to Putin. “This is my last election. After my election I have more flexibility,” Obama told then Russian president Dmitri Medvedev. “I understand. I will transmit this information to Vladimir,” Medvedev responded in the overheard conversation. read more
A scathing video review of President Barack Obama’s first term is sweeping the internet less than two days before the most important presidential election in a generation. The video, titled “Conservatism Is Calling,” outlines Obama’s broken promise to bring “hope and change” to Washington D.C.
The video, which currently has more than 500,000 views on YouTube, also highlights a number of Obama’s empty pledges he made on the campaign trail in 2008. Obama can be seen promising to “fundamentally transform the United States of America,” pledging to cut the federal deficit in half, fix the economy and reign in unemployment in his first term. While he did make good on his promise to “transform” the nation, it wasn’t in the way that many had hoped.
He called the Bush administration “unpatriotic” for running up massive annual deficits. However, as the YouTube video points out, Obama’s deficit at $1.3 trillion in 2012 alone was more than four years under former President George W. Bush combined. The video also indicates that Obama missed his pledge to cut the deficit in half by 500 percent.
he video blasts Obama for playing more than 100 rounds of golf, which at four hours per round, equals roughly 10 work weeks — “Just for golf.” Meanwhile, the American people continue to struggle in the “worst economy since the Great Depression.”
The unemployment rate ticked higher, according to a report released just four days before the presidential election.
When the Labor Department revealed its September job count, it sparked criticism from some quarters that the numbers were being manipulated for political purposes as the November presidential election drew near.
In September the DLS lied about job creation, claiming 162,000 jobs were created, and they moved the 7.9% to 7.8% but Jack Welsh put a light on the fraud, saying the numbers were cooked, now suddenly the September jobs number went from 162,000 jobs created to 88,200 jobs.
Welch said: “Unbelievable jobs numbers…these Chicago guys will do anything…can’t debate so change numbers.”
The economy added 171,000 jobs in October, while the unemployment ticked up to 7.9, from 7.8% in September, the Labor Department said Friday.
While many industries are adding jobs, the current tepid pace of growth is not enough to climb out of the jobs hole, economists said. Companies remain hesitant to boost payrolls. One of their main worries? How the president and Congress deal with the looming fiscal cliff.
Wake up America, they lie to drop the unemployment numbers, if obama is re-elected they won’t lie anymore, we will see the numbers for what they really are which is 9 to 10%, obama want have a need to doctor them if he wins, we will be stuck…. VOTE OBAMA OUT, SAVE AMERICA AND AMERICANS…