[Edited 1.22.10]

Abstract: The chance for am economic recovery is nil given that the far left have complete control of Congress and the White House and will only tax and spend and print money and deny any incentives to their capitalist enemies in small business or elsewhere. There is no limit to how much money they can print as they consider tax cuts to be a ‘cost’ upon society and tax cuts are our only chance to improve the economy. The phony 10.2% unemployment rate has just fallen a bit in spite of the fact that we need 160,000 new jobs each month to be added to the economy to just keep even. The actual U6 unemployment rate is 17.5% and rising. The only solution to their problems is bigger government and higher taxes on everything we have from energy to health care to buttons, cars and food. Prepare for massive inflation and worse if we cannot reverse this by 2010.

We are not going to have a recovery and will have to suffer through years of 10%+ unemployment rates. The reasons are very simple and relate to only one basic tenet: your worthless government will not tolerate tax cuts for business so the small business people cannot hire more people and grow the economy so we can get out of debt. Indeed, the reverse is all too true. The exact opposite of what we should be doing is what we are doing: making up new government programs, spending us into debt, printing dollars so that our government can keep bloating our government and blaming the previous administration for all evils and above all: finding new ways to tax everything in sight.

Here is some of the baloney string starting with Obama as told by the New York Times:

“Mr. Obama told the chief executives that he wanted to know: “What’s holding back business investment and how we can increase confidence and spur hiring? And if there are things that we’re doing here in Washington that are inhibiting you, then we want to know about it.”[1]-- Obama Tackles Jobless Woes, but Warns of Limited Funds By Jackie Calmes Published: December 3, 2009 [Emphasis is mine in all quotes.]

The answer to that question is obvious: You and Nancy Pelosi and Harry Reid are the major problem and barrier to a recovery because they can think only of taxes and bigger government with massive healthcare programs and regulations and small business cannot handle that. They cannot make profits with such cost burdens. They will not risk hiring and be stuck an enormous array of new taxes and regulations.

Phony wealth transfer programs are at the top of the liberal list:

“The president said he would announce some new ideas of his own next week, which are likely to include a home-retrofitting proposal modeled on the popular “cash for clunkers” program that has particularly captured Mr. Obama’s imagination, according to aides.”-- Obama Tackles Jobless Woes

The previous ‘jobs’ program spent $92,000 per job![2] And, then, we spent $24,000 per car on the Clunker Follies and a mere $43,000 per house on the housing scam. [3] And, none of these had a lasting effect. All of the money to do this was either borrowed or printed up quickie fashion by our government.

False promise:

““I want to be clear: While I believe the government has a critical role in creating the conditions for economic growth, ultimately true economic recovery is only going to come from the private sector,” he told his audience”-- Obama Tackles Jobless Woes

Then, since there is no legislation in Congress [that will pass] that gives tax breaks and other allowances to small businesses [presumable part of the private sector who were not represented very well at this august gathering] we might assume that this spending is ‘temporary’ and ultimately the private sector will get something else other than more and more taxes and regulations. Don’t bet on this in our modern Socialist-Neo-Fascist governmental view.[4]

Confidence in our government?

“Mr. Obama told the chief executives that he wanted to know: “What’s holding back business investment and how we can increase confidence and spur hiring? And if there are things that we’re doing here in Washington that are inhibiting you, then we want to know about it.””-- Obama Tackles Jobless Woes

He asks? This is a joke. The answer to all these questions is the White House and Congress.

“Both Mr. Obama and Vice President Joseph R. Biden Jr., who introduced him, emphasized that the financial industry has stabilized and the stimulus package has created or saved up to 1.6 million jobs, according to recent nonpartisan analyses.”-- Obama Tackles Jobless Woes

That is a lie by Joe Biden[5]—a.k.a. Plugs[6] the Buffoon.[7] Apparently, nobody can find these jobs anywhere unless they look on recovery.gov where there are hundreds of nonexistent congressional districts where several hundred thousand jobs were saved. That is how our government works.

Where are the jobs from the stimulus?

““The American people are asking, ‘where are the jobs?’ but all they are getting from Washington Democrats is more spending, more debt, and more policies that hurt small businesses,” said Representative John A. Boehner of Ohio, the House Republican leader, in opening his roundtable with Republican economists and lawmakers.”-- Obama Tackles Jobless Woes

Here they are!! Magically, the job market improves! Flash! We are all going to get well!

“WASHINGTON (AP) -- The unemployment rate unexpectedly fell to 10 percent in November as employers cut the smallest number of jobs since the recession began.”[8]-- Nov. jobless rate falls to 10 pct., 11K job cuts Jobless rate drops to 10 percent in Nov.; employers shed 11,000 jobs, fewest since Dec. 2007 By Christopher S. Rugaber, AP Economics Writer December 4, 2009

These numbers are actually based on the loss of 11,000 jobs calculated by some ‘corrections’ factored in from past months. It is difficult to believe in these numbers based on what we have heard about job ‘creation’ and other lies on recovery.gov and in the New York Times.

Here are the barriers to a recovery and most of this depends on jobs.

[1] We are still in deflation since falling house prices erased wealth and the banks were stuck with toxic assets and still are.  Money is being printed in huge piles and the Fed will not tell us how much and where it is being dumped. An article by CNBC[9] thought our Fed put out 7.36 trillion dollars as of Nov. 13, 2008 and scattered it around the world. We cannot find out where this money went.  The fed balance sheet does not show this. The money supply M2 has only moved from 8 trillion to about 8.3 trillion so the velocity of money is very small and approaching zero because if such huge sums were to enter into the fractional reserve banking system we have the money would be multiplied by 10X[10] and this is not happening. The national debt is of $12 trillion or $200,000 for each taxpayer who pays federal taxes [only about 53% of the working population so around 65 million in count]. [11] Deficit spending is going wild with $1.4 trillion spent so far by this administration. Obama wants to spend $9 trillion more in the future. That would double the money supply and the multiplier would kick it up 10X to 100 trillion dollars and cause inflation to rise by 5,000 to 100,000% or higher. Obama’s economists must be taking advanced instructions in finance and economics from Zimbabwe or Argentina while ignoring Raúl Castro:

"Nobody, no individual nor country, can indefinitely spend more than she or he earns. Two plus two always adds up to four, never five," he said. "Within the conditions of our imperfect socialism, due to our own shortcomings, two plus two often adds up to three."[12]—Cuban President Raúl Castro

Even Warren Buffet predicts this.[13]

[2] The loss of wealth [credit = money =assets = home equity] causes consumers to buy less because they simply cannot get the money. The secondary effect is that the lower GDP causes job loses and these further compounds the problem with even more job loses. Capital is available for some businesses to borrow but there is reluctance to get into debt.  The ability for businesses to grow is thus hampered due to  the lack of capital and fear of the future and stricter credit restraints. There is only 6 trillion in capital left on the entire planet.[14] [15][16]  The loss of wealth was caused mainly by toxic assets that were bundles of mortgages sold to people with no credit and they defaulted on payments thus these bundles fell in value and started to sink the banks. Wealth evaporated and is lost, but the toxic assets are still there and growing. We have some 8 million mortgages in default now and all these will soon become toxic assets if jobs are being lost.

[3] The only word that our Congress can put out without slobbering on their shoes is the word TAX. They have a host of new taxes dreamed up from heal care taxes with fines and jail terms and a VAT tax and new inheritance taxes and the expiration of the Bush tax cuts and more and even more. As such business cannot construct a reasonable business plan for even one year and must guess wildly at what their costs might be in 2 or 3 years.  70% of all new jobs come directly from small business and they are the ideological and dogmatic targets of the socialists who now control Congress and sit in the White House.  These taxes are dwarfed by the potentially enormous taxes on energy we could have from the phony Cap and Trade legislation now pending in many countries. It is clear that this phony Global Warming scam[17], lowed to Climate Change because the temperature went down and not up is based on lies and a corruption of ‘science’ but there are too many who still believe in the socialist virtue of high taxes and could care not one whit if the theory is true or not—they want the money.

This ‘jobs summit’ was a joke and an example of tactless leftist theatre where we  heard that we can ‘get a consensus’ and ‘trade ideas’  in honest debate and search for a solution.  Small business was not even represented. There is NO INTENT by our current socialist government to give back any taxes or assist capitalists in this economy. The left is angry and incensed over the tax cuts that happened during the Reagan Era and continued in  spite of Bill Clinton and fortunately in the absent of Hillary Care into the Bush Era. They believe that tax cuts are a ‘cost’ to society[18] and must be paid back so they will only raise taxes and find any and all ways to defeat capitalism on the small business scale. For the larger businesses they will nationalize them as they did for the auto manufacturers and subsidize them and meddle with management and products for decades like they did with Amtrak.

We have to realize that to just barely maintain an economy of our size with a modest 2-3% growth we need 160,000 new jobs every month so that is 12 x 160,000 or 2 million lost jobs not included in these strange numbers.

There will be no recovery and our economy will just sink further into the abyss until we clean out Congress, stop this spending and money printing escapade and cut taxes for corporations and investors. Until then, we might experience some massive inflation and stagflation so this process might take a generation or two to fix. If you want a preview of what is coming then just think about California.[19] They are going to spend and spend and spend until the system crashes.

rycK

Comments: ryckki@gmail.com