With the US trapped in depression, this really is starting to feel like 1932 – July 4, 2010
The US workforce shrank by 652,000 in June, one of the sharpest contractions ever. The rate of hourly earnings fell 0.1pc. Wages are flirting with deflation.
“Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March of last year. So what are we doing about it? Less than nothing,” he said.
California is tightening faster than Greece. State workers have seen a 14pc fall in earnings this year due to forced furloughs. Governor Arnold Schwarzenegger is cutting pay for 200,000 state workers to the minimum wage of $7.25 an hour to cover his $19bn (£15bn) deficit.
Can Illinois be far behind? The state has a deficit of $12bn and is $5bn in arrears to schools, nursing homes, child care centres, and prisons. “It is getting worse every single day,” said state comptroller Daniel Hynes. “We are not paying bills for absolutely essential services. That is obscene.”
Roughly a million Americans have dropped out of the jobs market altogether over the past two months. That is the only reason why the headline unemployment rate is not exploding to a post-war high.
Let us be honest. The US is still trapped in depression a full 18 months into zero interest rates, quantitative easing (QE), and fiscal stimulus that has pushed the budget deficit above 10pc of GDP.
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Rush Limbaugh: America has become ‘Obamaville’ – June 30, 2010
‘The only difference is Obama is doing this on purpose. Hoover wasn’t’
At the height of the Great Depression in the 1930s, many Americans fighting for survival ended up living in crudely built shantytowns known as “Hoovervilles,” in humiliating honor of President Herbert Hoover, who many blamed for the economic distress.
Now in 2010, radio giant Rush Limbaugh is declaring the United States has become one giant “Obamaville,” thanks directly to the policies of President Barack Obama.
“The whole country is Obamaville,” Limbaugh said on his program today. “Obama is Herbert Hoover. You know they used to call those unemployment camps Hoovervilles. Well, now we’re going to see Obamavilles springing up all across the nation.”
“Hoover was trying to fix things. Obama’s not. The only difference is Obama is doing this on purpose. Hoover wasn’t.”
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Analyst: Obama has U.S. economy in ‘death spiral’ – July 4, 2010
‘Simple math’ confirms unemployment won’t be solved by government hiring
A new analysis of the U.S. economy shows that since 2007, the private sector has lost 10.5 million jobs while the public sector has added 720,000 jobs, creating a “death spiral” for the nation’s economy.
The study comes from The Free Enterprise Nation, a nonpartisan national membership/advocacy organization for individuals and businesses that make up the private sector.
The analysis was done using statistics about employment data from the U.S. Bureau of Labor Statistics.
The recession of the last two years exacerbated the larger problem that already was in place, it revealed.
“Over the 10-year period between March 2000 and March 2010, the private sector lost over three million jobs, while the public sector gained nearly two million jobs,” the analysis concludes.
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Fox and Friends: The Hidden Costs of Government
Dow Repeats Great Depression Pattern: Charts
The Dow Jones Industrial Average is repeating a pattern that appeared just before markets fell during the Great Depression, Daryl Guppy, CEO at Guppytraders.com, told CNBC Monday.
“Those who don’t remember history are doomed to repeat it…there was a head and shoulders pattern that developed before the Depression in 1929, then with the recovery in 1930 we had another head and shoulders pattern that preceded a fall in the market, and in the current Dow situation we see an exact repeat of that environment,” Guppy said.
The Dow retreated 457.33 points, or 4.5 percent last week, to close at 9,686 Friday. Guppy said a Dow fall below 9,800 confirmed the head and shoulders pattern.
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