Negative Growth: Economy Tanks in Fourth Quarter
Yesterday, Breitbart News reported that consumer confidence had dropped to its lowest level
in almost two years. Much of the media spun the number as the result of
a payroll tax increase that hit millions who were repeatedly told by
Obama that only the rich would see their taxes increase. Surprise! But
the spin didn't explain why consumer confidence had steadily dropped
during the months prior. Well, now we know: The American economy has taken a nosedive.
For the first time in over three years,
the U.S. Gross Domestic Product shrank. Between October and December of
2012, the GDP had a negative growth of 0.1. And let's remember that
this is the same quarter where we saw the media go into hyper-drive to
spin Obama's anemic job and GDP growth into a repeat of the Roaring
Twenties.
The problem with the American economy
is that Obama and his media can't fool it. Happy talk and spin and
distractions about contraception don’t create jobs or growth. You might
be able to fool legions of people into voting a certain way, but you
can't fool them into spending and hiring and investing.
Apparently, though, the media and Obama have managed to fool themselves. Even the Wall Street Journal calls today's news "unexpected."
And anyone who watched Obama's Inauguration speech knows that his
failed economy and the millions suffering in it are either not on his
radar or of no concern whatsoever. Obama spoke of many things, but not
the economy. He's in a war to win the culture, not to win anyone a job
to lift them out of poverty.
The media is just as bad. The biggest
story in our country today should be the increase in poverty and an
unemployment crisis so dire our labor force has shrunk to thirty-year
lows. But neither will speak of it. We do, however, know all about some
idiot and his phony girlfriend. We know all about a "heckle'' that didn’t happen. One wonders which is the bread and which is the circus.
The pickle both Obama and the media
have put themselves in, though, is this: If either makes the economy a
priority, that's an admission Obama's economy is in trouble. And so we
find ourselves in a situation we've seen in other countries where the
state and media have aligned -- a situation where we're told a bad
economy is a good economy, and the victims of this propaganda are those
suffering in a bad economy no one wants to admit exists.
Already the media's spinning this GDP
report in a way that says our economy tanked because the government
didn’t spend enough. That's right, annual trillion dollar deficits for
as far as the eye can see, but the media push to protect the State from
blame and to use this terrible news as a way to further grow the State,
is already on.
NBC's Chief White House
Correspondent, Chuck Todd, just assured America this was a one-time
economic anomaly and that prosperity is right around the corner. If a
job had been created every time a member of Obama's media said this,
we'd have full employment today.
We live in interesting and dangerous times.
http://www.breitbart.com/Big-Government/2013/01/30/Obama-Economy-Shrinks-In-Fourth-Quarter
Obama’s Economy: The Excuses Begin
Just days after the November presidential and congressional elections which gave President Barack Obama a non-mandate of 50.6% of the popular vote and the demonstrated supported of less than 27% of all U.S. adults, NBC’s Brian Williams actually told viewers:Blame everything, except the government's policies.
With the election now over, it is once again safe to talk about the economy and jobs. Now that it is not a campaign issue, it’s back to reality.Still in Democrat-supportive campaign mode, Williams then introduced a report by correspondent Harry Smith about how “the idea that manufacturing in America is dead … is an outright falsehood.” Mary Andringa, president and CEO of Iowa manufacturer Vermeer Corporation and then-board chair at the National Association of Manufacturers, told Smith:
What’s really outstanding is the fact that in 2010, the U.S. had an output of $4.8 trillion of manufactured goods. That was up from $4.1 (trillion) in 2000 — and we’ve been through two recessions in the past decade.That is undoubtedly an impressive achievement which should not be discounted. But then Smith delivered the kicker:
Five million manufacturing jobs were lost in the U.S. in the last decade. But new jobs have been created too, and believe it or not, many manufacturers in the U.S. are looking for help.This highlights two problems. The first, which is that our educational system and culture are not preparing enough people for the jobs which need to be filled, is self-evident to anyone with open eyes.
The second, despite the unfilled positions just noted, is even more important: unlike what occurred after every other post-World War II downturn, not enough new jobs are currently being created to make up for the ones being lost. The new companies and entire industries which have always emerged and generated enough new jobs to replace those lost as a result of increased productivity in existing industries aren’t appearing at a rate necessary to reduce unemployment to an acceptable level.
Why not?
At the Associated Press, aka the Administration’s Press, the post-election search for an explanation clearly had two important constraints. First: do not blame the Obama administration or the federal government for anything. Second: find something to blame which appears to be plausible and can’t be immediately refuted.
http://pjmedia.com/blog/obamas-economy-the-excuses-begin/
Surprised? U.S. Economy Shrinks — and See What the White House Blames
For its part, the White House says the
downturn is because of — wait for it — Hurricane Sandy, because
apparently that’s still an excuse.
“Both international trade flows and
inventory accumulation could have been affected by disruptions caused by
Hurricane Sandy, although a precise estimate of the effect of the
hurricane on GDP is not available,” said Alan B. Krueger, the Chairman
of the Council of Economic Advisers in a statement.
“Nonetheless, the BEA reported that
Hurricane Sandy destroyed $44 billion worth of fixed capital, which
indicates one of the storm’s significant economic effects,” he adds.
He said spending cuts are also to blame for the decrease.
“A likely explanation for the sharp
decline in Federal defense spending is uncertainty concerning the
automatic spending cuts that were scheduled to take effect in January,
and are currently scheduled to take effect on March 1st,” he said.
“The decline in government spending across all levels reduced real GDP by 1.33 percentage points in the quarter,” he adds.
Final Thought (via AEI’s James Pethokoukis):
Forward!
http://www.theblaze.com/stories/2013/01/30/surprised-u-s-economy-declined-in-q4-and-see-what-the-white-house-blames/
PK'S NOTE: But wait, there's more. Ok, WHO'S been the president for the last FOUR YEARS? They NEVER take responsibility for a blessed thing.
White House: GOP responsible for economic slowdown
White House press secretary Jay Carney laid the blame for a surprise economic contraction squarely at the feet of congressional Republicans Wednesday, saying economic threats during the "fiscal cliff" negotiations had prevented important defense spending."This is political brinksmanship that results in one primary victim. That's American taxpayers and the American middle class," Carney said.
Carney said economic observers were "rightly appalled" by the threat of sequestration or default to drive a debt deal, and charged that Republicans were harming the economy to the benefit of the wealthiest Americans.
"It can't be we'll let sequester kick in because we insist tax loopholes remain in place for corporate jet-owners," Carney said.
Republicans have argued that dire threats are necessary to force Democrats to agree to entitlement reforms and spending cuts. The Republican National Committee on Wednesday circulated a document labeling Obama "President -0.1%" and argued the GDP numbers were evidence the president's stimulus plan had not worked.
The unexpected dip was the first time the economy shrank since the 2009 economic depression, and came as a surprise to economists, who had projected modest growth.
In a statement posted Wednesday morning, Alan Krueger, Chairman of the White House's Council of Economic Advisers said that reduced government spending from the sequester and economic uncertainty stemming from the "fiscal cliff" negotiations was likely to blame. Krueger also said Hurricane Sandy likely disrupted significant economic activity.
"Although GDP is the broadest measure of economic activity, other indicators of economic performance suggest that the economy continued to recover in the fourth quarter, despite the impact of Hurricane Sandy and uncertainty surrounding fiscal issues," Krueger said.
Krueger and other economic advisers pointed to a boost in personal income, disposable income, and worker-hours to argue that the economy was likely outperforming the initial estimate and would be revised upward.
"Moreover, as the Administration stresses with each economic report, indicators of economic performance can be volatile and are subject to substantial revision," Krueger said. "The average absolute revision from the 'advance' estimate of real GDP growth to the most current data is 1.3 percentage points."
The decline also drew new questions about the decision to delay, rather than eliminate, sequestration in the "fiscal cliff" deal struck earlier this month. But despite that delay, defense spending was cut to its lowest level in 40 years — evidence that uncertainty over an eventual deal was preventing spending on new projects.
With the sequester delayed just two months, that drag threatens to bleed into a second consecutive fiscal quarter.
The White House has maintained that it wants to avoid the sequester. But when asked Monday on whether the president was planning specific meetings or events to address the topic, Carney said said he did not have "any specifics" to provide.
"We believe that the right course of action is to take steps to make sure that sequester doesn’t happen because it’s bad for the economy and bad overall for the effort to reduce our deficits in a reasonable way," Carney said Monday.
Judge: Immigration Agents Suing Obama Can Move Forward
A federal judge ruled that nearly a dozen federal immigration agents can move forward with their lawsuit against their own bosses and even President Obama over change in enforcement policy that the agents argue prevent them from doing their jobs.Federal Judge Reed O'Conner ruled on Friday Immigration and Customs Enforcement agents' case has legal merit. They argue their bosses essentially have forced them to look the other way and not enforce the law -- thus overstepping Congress by changing laws through directives rather than legislation.
The state of Mississippi joined the lawsuit against the administration but judge O'Conner dismissed the state from the lawsuit on Friday in the 35-page opinion.
The agents filed the lawsuit in October against the head of the Department of Homeland Security, Janet Napolitano, and ICE Director John Morton, to ask the courts to overturn last year's directive by Obama to suspend deportation proceedings and offer temporary work authorization to some immigrants brought to the United States illegally as children.
“We are very pleased with this ruling," said Kris Kobach, Kansas Secretary of State who's representing the agents and is also widely known as the author of strict immigration laws in Arizona and Kansas.
"It appears that the Obama Administration had hoped that no court would ever review the legality of its executive amnesty," Kobach said.
Chris Crane, the president of ICE agents' union that initiated the legal fight, accused the Obama administration of not even consulting with agents when he made his policy change.
“We’ve repeatedly tried to work with the administration and they’ve just excluded us from everything since day one,” Crane said on a conference call with reporters announcing the lawsuit.
Crane went on to say that the new guidelines left agents powerless to enforce immigration law because they had no way to distinguish who qualifies for deferred deportation.
“The alien has no burden of proof to establish that claim,” Crane said. “So we’re not enforcing the law anymore, we’re not enforcing the policy. It’s pretty much just let everyone go.”
OWS is exposed: Rich, white, educated and working
It seems those Occupy Wall Streeters were a lot closer to the 1 percent than they would like to admit.A new study of the OWS movement in New York found that many of the protesters were highly educated and not nearly as down on their luck as they portrayed.
A third of protesters in the Occupy Wall Street movement in New York lived in households earning more than $100,000 and more than two- thirds were employed professionals, according to the study from CUNY’s Joseph A. Murphy Institute for Worker Education and Labor Studies.
The study also showed the movement was mostly organized by experienced political operatives and nearly all of those involved — 76 percent — were college educated.
“Occupy Wall Street was not a spontaneous eruption but rather an action carefully planned by committed activists,” the study concluded.
Additionally, the study found that the protesters were also disproportionately men — 55 percent — and many were white.
“It’s a pretty affluent demographic and highly educated,” said Professor Ruth Milkman, one of the study’s authors. “Many were the children of the elite, if you will.”
While they weren’t all homeless, many of the under-30 crowd who participated in the movement were recently laid off or underemployed, with nearly a quarter saying they work fewer than 35 hours a week.
“Most OWS activists and supporters were deeply skeptical of the mainstream political system as an effective vehicle for social change,” the study found.
About 750 protesters were surveyed for the study, which took about six months.
http://www.nypost.com/p/news/local/ows_is_exposed_YNtIaMcv6cToWt448kLQYO
A123 Sale Approved
Chinese firm buys bankrupt DOE-grant recipient, reportedly looking at Fisker
The Hill reports:
The Committee on Foreign Investment in the United States (CFIUS) approved Wanxiang America’s purchase of A123 Systems’ automotive, energy storage, commercial and government operations for $256.6 million.Long troubled, A123 filed for bankruptcy in October 2012. The company had received $133 million of a $249 million grant from the Department of Energy, and received $1 million from the federal government the day it filed for bankruptcy. After security concerns arose among some Republicans about the sale, A123 sought a lobbying firm earlier this month while securing the sale to Wanxiang.
“The future is bright for A123. It is a company with exceptional talent and potential, and Wanxiang America is committed to its long-term success and the continuance of its U.S. operations,” Pin Ni, president of Wanxiang America, said in a statement.
CFIUS, an interagency panel led by the Treasury Department, has the power to negate deals with foreign firms if they harm national security. Some GOP lawmakers worried that was the case with the bid for Waltham, Mass.-based A123, and they lobbied CFIUS to block the transaction.
The effects of A123′s bankruptcy and sale are not isolated.
The company’s bankruptcy disrupted the production of DOE loan recipient and battery-powered carmaker Fisker Automotive, which used A123′s batteries. Fisker received $193 million in DOE loans; the original package was for $529 million, but was frozen by DOE in 2011.
Fisker leadership is reportedly considering a sale of the company, and is seeking investors to either improve the prospects of that sale or continue operation. Wanxiang is currently in talks with Fisker to become an investor, the Wall Street Journal reported this week.
http://freebeacon.com/a123-sale-approved/
Fmr. Tester Staffer Heads to Pro-Tester Consultancy
A secretive Democratic consultancy is hiring one of Sen. Jon Tester’s (D., Mont.) top campaign staffers after using a web of affiliated groups to attack Tester’s 2012 challenger.
Hilltop Public Solutions, which has refused to answer questions about its ties to a number of liberal political groups, will hire Aaron Murphy, a long-time Tester staffer and his 2012 campaign’s communications director, according to an emailed statement from Hilltop partner Barrett Kaiser.
“Murphy was a top adviser to Tester for nearly seven years as the senator’s communications director, chief spokesman and speechwriter,” Kaiser’s email said. “In 2011 and 2012, Murphy oversaw communications, press and social media on Tester’s successful and highly regarded U.S. Senate campaign.”
Kaiser is Hilltop’s director of western operations, and works out of the firm’s Billings, Mont., office. He is a former staffer for Sen. Max Baucus (D., Mont.), and consulted for Tester’s 2006 campaign.
The move deepens the consultancy’s ties to the sitting Montana senator. Hilltop actively engaged in Tester’s reelection fight through a handful of AstroTurf groups. Kaiser himself filed Federal Election Commission paperwork for Montana Hunters and Anglers Action!, the activist arm of a group credited with tipping the race in Tester’s favor by backing a spoiler Libertarian candidate.
Montana Hunters and Anglers, the group’s affiliated political action committee, listed Hilltop associate Joe Splinter as its treasurer.
The group ran at least two television ads hitting Rep. Denny Rehberg, Tester’s 2012 opponent, for supporting legislation that would give the Department of Homeland Security some authority over public land in the state.
Hilltop partner Jeremy Van Ess is listed as an officer of another group that was active in the Montana Senate race: the Citizens for Strength and Security Fund. That group ran at least three television ads and two radio ads attacking Rehberg.
Tester’s campaign echoed many of the attacks from both the Hunters and Anglers and Citizens for Strength and Security Fund ads, including charges that Rehberg violated a pledge to refuse pay raises, voted to give the Department of Homeland Security control over Montana land, and voted for the Patriot Act and Real ID immigration legislation.
Murphy did not respond to requests for comment.
http://freebeacon.com/fmr-tester-staffer-heads-to-pro-tester-consultancy/
The Lupine Socialist Dream
"A society of sheep begets a government of wolves." -- Bertrand de JouvenelIn his short but profound work, The Ethics of Redistribution, the 20th Century French Philosopher Bertrand de Jouvenel uncovered the ontological core of collectivism's ideological precepts. In the process, he succeeded in ripping off the mask of altruism that accompanies all economic structures that ultimately infringe upon human initiative and freedom in service to a "benevolent and promethean" reordering of human affairs. On the surface, it appears that confiscatory taxation and the distribution of its proceeds are consistent with a theory of justice that elevates "fairness" and demonizes the inequalities that arise from unfettered markets. Yet Jouvenel, with stunning clarity, draws our attention to the true locus of intent that a systematic revolution of economics portends for societies that place their faith in collectivist schemes. Thus, he writes:
The
more one considers the matter, the clearer it becomes that
redistribution is in effect far less a redistribution of free income
from the richer to the poorer, as we imagined, than a redistribution of
power from the individual to the State.
The expansionist state methodically grows in scope and power into unanticipated nooks and crannies of the private sphere and ultimately metastasizes into a structure where equality not only eclipses negative freedom, but government assumes the gravitas of an avenging angel that rewrites the codes of morality and eventually becomes the arbiter of both success and failure by virtue of its laws, regulatory schemes, and patronage.
As republics inexorably begin their death swoons into full democracies, that great magnetic pull towards equality in all of its forms becomes culturally irresistible, and this degraded form of regime, warned of by Plato and Aristotle, eventually acts as a leveling agent for society. It is but a few small steps from egalitarian collectivist economics to ideological homogeneity. This is not to say that humanity will assume a common face, but that as the incrementally empowered regime reaches its full bloom and ascendency, it by necessity becomes the sole arbiter of moral questions. Since philosophy and the search for transcendent truths are both relegated to a defunct history, the state will countenance and tolerate various modes of being as long as these do not either question the sovereign authority of the regime or declare that their own political expression is categorically superior to the others. It is there that its tolerance bluntly terminates. Jouvenel characterizes the full blown character of the democratic descent:
Democracy,
then, in the centralizing, pattern-making, absolutist shape which we
have given to it is, it is clear, the time of tyranny's incubation.
When the decrepit Twentieth Century dinosaurs of Marxism met their inglorious ends, it was left to the Progressives and Keynesians to soften the gaze of the collectives' Stalinist façade; and by jettisoning sound fiscal and monetary policy, a clever political elite could spend profligately while postponing the Day of Reckoning. That day is perhaps at hand for the West, and all we have to show for our labors is a gargantuan debt and an edifice of government institutionally entrenched in nearly every aspect of our lives. In retrospect, Jouvenel was prescient in that he foresaw redistribution as the velvet manacles that ushered in an irresistible state power -- but he left out one detail. We have not merely sold our own birthrights for boiled cabbage, but we have passed on this crushing debt to our sons and daughters as we have become profligates of the lowest order. And long after we are dead, should America survive so long, those same children will be tied to the burden we ourselves could not face on our own, having lived so lavishly at their expense.
Is there any doubt that our heirs will be facing a bleak and impoverished future as we pass on our very own special incarnation of the Lupine American Dream: having taken every lamb for our own ravenous appetites, while spitting out the bones and scraps for our young cubs to fight over?
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