Busted: Bankers and The Global Economy

November 16, 2009

Why Job Cheerleading Won’t Save the Economy

Filed under: banking, corporatism, economy, government, recession — Tags: , , , , , , , , , — digitaleconomy @ 10:55 am

Unemployment is at a “26-year high” with 17.5 percent of formerly employed Americans that are no longer looking for work or underemployed.  The unemployment rate for workers aged 16 to 24 is at 19 percent. The unemployment rate for young African-Americans at 30 percent. The average length of unemployment is at a record high as the ratio of job seekers to open positions is currently 6 to 1. This is dismal news for Americans. As their “patriotic duty” many firms are now telling their employees that hours must be cut in order to save jobs. No less than 60 million American households are living at or below the poverty level. The nation is not seeing real ideas or action that even remotely resemble the urgency and aggressive action when banks and investment firms needed saving.

Behind the scenes, political powerhouses and their talking heads hope that cheerleading will do the trick. Surely the talent of the American people will save us says the court jester of economics, Warren Buffett. I cite the CNBC party show that is sure to insult your intelligence. The economy and the American people don’t need upbeat civic cheerleading about greatness. The nation needs serious action outside of more wars overseas. We need to realize that we have war going on right here.

The nation can expect weak recovery of consumption and economic growth coupled with larger budget deficits. The nation can expect greater delinquencies in real estate and the continued fall in real estate prices. The nation can expect greater losses for banks and financial institutions across the board in all sectors and a corresponding rate of bank failures.

Noriel Roubini’s Global Economonitor says: “we can expect that job losses will continue until the end of 2010 at the earliest. In other words, if you are unemployed and looking for work and just waiting for the economy to turn the corner, you had better hunker down. All the economic numbers suggest this will take a while. The jobs just are not coming back.”

Mr. Roubini says “that the unemployment rate will peak close to 11% and will remain at a very high level for two years or more.” This will put the real unemployment rate soundly past 18%. Last year, I predicted a real unemployment rate of 25%. Either way, the nation has some suffering to go through since the political powers that be firmly refuse to bail out the American people. The land of politics continues to bail out the world with free handouts and political programs. We can bankroll and void toxic debt for freewheeling investment bankers and financial geniuses that abused the system, but we can’t risk lowering the debt or responsibility of the American people without making them homeless. Clearly, the American people are simply too talented. Politics still needs slaves to grist the mill. We need martyrs for the cause. The nation has them while China gains mastery over the national economy. What will politics sell next?

You can now appreciate why the world of U.S. politics doesn’t want to end the wars in the Middle East. With all the men and women in the armed forces coming home, we really would be a nation without work.

 

May 8, 2009

The New Brand of Corporatism: Unemployment

unemployedThe fruits of the ‘new brand’ of corporatism have squarely placed the nation and world where it is today. Corporate cheerleaders and government experts are now combining forces to create a new outlook that fully accepts policy of the last few decades. For many decades, government has quietly adjusted record keeping to massage public statistics.  Once again, corporatism and a fully complicit government is seeking to adjust the future of the United States by redefining full employment. This vanity seeks to install the idea that we don’t need economic health or reasonable employment to enjoy record profits or the ideal of prosperity. If we can’t have prosperity the way the leaders of corporatism want, they will simply redefine that definition of prosperity to fit their own mold while continuing to blow their own horns.

The experts want the nation to bite off on the notion that “post-recession America” will be stressed with high unemployment even after the good times return. Good times for who? Obviously, the outlook of good times without a sizable portion of the United States participating involves only the outlook of corporate bodies and the capability of maintaining or promoting profits for the structure of the current system in place. The economy of the whole of the nation isn’t being considered, at least not realistically.

unemployment4Millions of jobs have vanished forever. Most will find it harder than ever to get hired again. The idea is being promoted that we will be required to accept lower earnings and a diminished economic role in the country as the rich get richer and the poor and disenfranchised fall off the economic map and into government assistance. As it stands approximately 54% of America that is employed is paying for the rest of America’s unemployed, disabled, retired and imprisoned.

unemployed1The ‘new brand’ of corporatism considers that employment has nothing to do with economic prosperity. Politicians and ‘economic corporatists’ console themselves and hopefully the populace by stating that the natural rate of unemployment neither accelerates or decelerates inflation.  They want us to accept a markedly higher ‘natural rate’ of unemployment by disassociating employment from the economy.

All this is drizzled by the news media with the admission that there is no relief in sight for the unemployed. By the admission of many, like Laurence Ball, it will be a long time before the nation sees 5 percent unemployment rates.

Then the media fully deploys the most heinous part of the corporate plan. The more time that workers spend without a job, the less attractive they become. Why? Ostensibly because the unemployed are not keeping up with ‘new technology’. This skewed outlook of corporatism is expected to keep the unemployment rate elevated. In the same breath, the experts say that the unemployed become discouraged and change lifestyle. Corporatism has dealt America a very nasty blow indeed and isn’t finished yet. Should Americans continue to bite off on the same old political and social wisdom of the past? We have a right and the privilege to reinvent ourselves. I encourage you to get on the road to reinventing yourself and standing on your own two feet without being dependent on corporatism. Otherwise, you have very little to look forward to beyond spending endless amounts of cash on dubious college training to continue to tickle corporatism’s insane fancies. ~ E. Manning

July 2, 2008

Welcome to the “Slow-Motion” Recession

“It’s a slow-motion recession,” said Ethan Harris, chief United States economist for Lehman Brothers. “In a normal recession, things kind of collapse and get so weak that you have nowhere to go but up. But we’re not getting the classic two or three negative quarters. Instead, we’re expecting two years of sub-par growth. Growth that’s not enough to generate jobs. It’s kind of a chronic rather than an acute pain.” Harris should have some idea as his company is a major player as part of the problem as an investment banker. Yep, things have “kind of collapsed.” Conditions are making honest men out of economists. Pervasive weakness is a more accurate concept.

The European Union bankers have a more apocalyptic take on what to expect here (more…)

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