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Obama’s Economic Nightmare

Barack Obama’s Mad Max Death Bus tour through the midwest is, as I noted in an earlier piece, a brain dead photo op that highlights his cluelessness about markets and economy. When you are tooling around in three massive fuel consuming buses and a legion of black SUVs you should not begin your stump speech by attacking folks who drive trucks and SUVs. But Barky did.

Instead of staying in Washington and trying to create the pretense that he understands there is a crisis and is trying to do something about it, he is dithering. Much like Nero fiddling while Rome burned, Barack is vacationing and politicking. The clueless Chicago Kid clearly does not understand how dire the situation is. Consider these recent developments:

Residential starts drop 1.5%, single-family starts drop 4.9% in July in the United States.

A large percentage of US banks say that lending standards for commercial real estate loans are the tightest they have been since 2005, highlighting a continued lack of appetite for real estate investment.

They were never going to attract outpourings of sympathy from the general public. But the job cuts that have hit whole echelons of the world’s biggest banks in recent weeks have not only attracted little compassion, they have barely been noticed at all amid the seesawing global markets and predictions of economic gloom. Yet the 60,000 redundancies un­veiled in a matter of weeks by eight big banks, six of them European – an average of about 5 per cent of the headcount of each institution – are likely to be just the start of a brutal reshaping of the industry that could result in the axing of hundreds of thousands of jobs worldwide.

Britain’s unemployment rate nudged upwards in the three months to June, while the number of people claiming jobless benefits rose at the fastest monthly rate since May 2009 when the nation was still mired in recession. According to the Office for National Statistics, the UK unemployment rate rose to 7.9 per cent in the three months to the end of June, from 7.8 per cent in the January to March period. A total of 2.49m people were out of work during the period, up from 2.45m in the three months to May.

And the global stock markets are falling again in the wake of Tuesday’s news that Germany’s second quarter GDP growth has stalled.

The worse-than-expected GDP data from Germany, which had been powering euro-area growth, add to signs Europe is flirting with a renewed economic slump as the debt crisis curbs spending across the region. France’s recovery unexpectedly ground to a halt in the second quarter, Italian and Spanish expansion remained sluggish and Greece’s economy contracted.

This is no longer just about the US economy. The global economy has slowed and we are in the midst of a new recession. We’ll just have to wait a few months before the statistics catch up and confirm what most folks already sense.

So, against this back drop, we also get to watch the Democrats panic at Rick Perry getting into the race. Perry is running in part on his record of creating jobs in Texas. Democrat water carriers–Paul Krugman and Harold Meyerson in particular–are out in force attacking Perry on this front. Meyerson claims:

Rick Perry’s Texas is Ross Perot’s Mexico come north. Through a range of enticements we more commonly associate with Third World nations — low wages, no benefits, high rates of poverty, scant taxes, few regulations and generous corporate subsidies — the state has produced its own “giant sucking sound,” attracting businesses from other states to a place where workers come cheap.

Perry’s calling card in the presidential race is his state’s record of job creation at a time when the national economy floundered. Yes, Texas has created lots of jobs, though that’s partly a reflection of the surge in oil prices, which in turn created tens of thousands of jobs in the oil and gas industries. What Perry touts in his stump speech, however, isn’t the oil boom but, rather, the low-tax, low-reg, handouts-to-business climate that prevails in Texas. It’s the kind of spiel that businesses hear every day from leaders of developing nations — Mexico and, even more, China.

Nice hatchet job, but Meyerson is wrong and dishonest. The Political Math Blog tears Meyerson and Krugman a new asshole.
Here are some of the highlights:

We can see that Texas has grown the fastest, having increased jobs by 2.2% since the recession started. I want to take a moment and point out that second place is held by North Dakota. I added North Dakota to my list of states to show something very important. North Dakota currently has the lowest unemployment rate of any state at 3.2%. And yet Texas is adding jobs at a faster rate than North Dakota. How can this be? The reason is that people are flocking to Texas in massive numbers.

Since the recession started hourly wages in Texas have increased at a 6th fastest pace in the nation. As a side note, the only blue state that has faster growing wages is Hawaii. Just thought I’d get that jab in since so many people have been making snarky “Yeah, I could get a job in Texas is I wanted to flip burgers!” comments at me on Twitter.

When we finally get the data, we discover that energy isn’t really the biggest part of the Texas economy. Increases in jobs in the energy sector (or closely related to it) account for about 25% of the job increases in the last year. Since the energy sector only makes up 3% of all employment, there is some truth to this claim. However, take the energy sector completely out of the equation and Texas is still growing faster than any other state. This indicates to us that the energy sector is not a single sector saving Texas from the same economic fate as the rest of the states. It’s not hurting, but Texas would still be growing like a weed without it.

Please take time to read the whole article at Political Math blog.

Here’s the bottomline–if Rick Perry makes his campaign for President exclusively about fixing the economy and creating jobs he will be the Republican nominee and he will kick Obama’s sorry yuppie ass. If Perry decides to get down in the weeds with conservative social issues he may give Obama an out. Regardless, the US and the world economy still face some tough times. Better to recognize we have a problem and try to do something about it rather than pretend that Obama’s stimulus program has worked. It hasn’t.

  • Pingback: Economic Nightmare and Texas Beacon | bearroombrawl

  • HELENK

    for some reason the comments will not come up on the post upstairs
    disqus is really going nuts today

  • http://pulse.yahoo.com/_HGANMGQB7HNZG62RMJSQH4BVGQ Puma GSD

    It is the Darth Vader bus and tour…All we need is a deep voice.

    • candymarl

      Deep Voice:

      I am Your Father America.

      America: 

      NOOoooooooo!

    • candymarl

      Deep Voice:

      I am Your Father America.

      America: 

      NOOoooooooo!

  • Anonymous

    Your insight about focusing on jobs and the economy and skipping the political-religious BS is right on the money vis a vis Perry competitiveness.  Obama has no defense against the question “Where are the jobs?”.
    Obama pathologically puts his insensitivity to the plight of the American people on full display every day, and to top it off, he’s now giving the New World Order conspiracy theorists a run for their money.  Does he really have to run around the country in Canadian-manufactured black busses lead and trailed by black SUVs?  The true believers who think that their are 20,000 black boxcars with “UN” painted on the sides in white letters that are outfitted with guillotines and handcuffs sitting on remote rail sidings all around the country are eating this black bus tour up as a sign that Obama really is the New World Order’s mant.  Lecturing American autobuilders about not building gas guzzlers because they don’t sell while riding around in a Canadian-manufactured gas guzzler is really over the top.  All Perry has to do at this point is buy nothing but American and concentrate on the “J word” and he’ll be ten points up going into the home stretch, at least..

  • Anonymous

    U.S. Government Investing
    $500Mil Solar Power Projects
    —In India

    Cybercast News Service,
    by Terence P. Jeffrey   
    8/17/2011

    The U.S. Export-Import Bank, an independent agency of the federal government, says that it has $500 million in loans in the “pipeline” to fund new solar energy projects—in India. The $500 million in new loans will come on top of $75 million in financing that the Export-Import Bank has already provided this year for solar power projects in India. “In fiscal year 2011 to
    date, the Bank has approved financing totaling approximately $75 million for four solar projects in India,” the bank said in a July 18 press release. “The Bank also has about $500 million of…..”

    http://www.cnsnews.com/news/article/obama-administration-investing-500m-sola

  • HELENK

    backtrack’a bus tour
    people not applauding and bowing

    http://www.newsdaily.com/stories/tre77g61b-us-usa-obama-tour/

    people are actually singing and playing this as he  passes

    http://www.youtube.com/watch?v=ALGnqyyhC20

     

  • Anonymous

    What is Obama’s case for re-election?

    Daily Mail [Charleston, WV], by Don
    Surber   

    8/17/2011

    As I watch Barack Obama flail on the campaign trail,
    I see a politician gasping for air. Here is what he said in Peosta, Iowa: “I’ve
    been traveling through these small towns and talking to folks, sitting down at
    diners, and you listen to people. You do your part. You meet your obligations.
    Well, it’s time Washington acted as responsibly as you do every single day. It’s
    past time.” He has been president for 2 1/2 years. What the heck was he doing in
    Washington? Golfing? Partying? Fund-raising? Having Sir Paul McCartney sing that
    gawdawful “Michelle”

    • Anonymous

      FROM THE COMMENTS:

      You just have to laugh listening to the narcisisstic one
      bragging about how he accomplished better fuel standards for cars we all will
      drive, all the while standing in front of the fuel guzzling Hearse. What he and
      the rest of the morons on the Liberal/Progressive side don’t get is, it’s a
      typical symbol of Lib hypocrisy on display for the whole world to see. Do as I
      say, not as I do. I’m thinking the messiah is going to need another vacation
      after this episode.

      ———————————————————————————
      President Obama is the most divisive president in
      history. He is a dark man with intense gotcha leanings. He invited the Supreme
      Court to listen to his speech in which he criticized their last decision. They
      had to sit quietly and take it. He invited Paul Ryan to listen to his speech. He
      criticized Ryan’s Plan with lies. He had to sit quietly and take it. He went to
      the United Nations and in front of every country in the world he called
      Americans corrupt militarists. Yesterday he make a big mistake. He called out a
      Texan who won’t sit and take it. Americans and New Yorkers won’t take Obama’s
      gotcha politics any longer. We love tea and eat pizza with beer. During these
      sessions we discuss how to make Obama a one-term-president.

      • Anonymous

        -
        You forgot Trump:  he did the same to him at a
        black tie function, where he could not either
        walk out or defend himself.

        Yea, O’bummer ir definitely a

        SCHOOLYARD BULLY!!!

  • Wbboe

    Larry, this morning I spoke to a friend of mine who is part of a large organization monitoring Obama and the economic nightmare that Obama has visited upon this country.  I debated on whether to post this, but decided that I would put it before you and the rest of the group– for what it is worth.

    First of all, he assured me that there was no default crisis as such.  Rather, this whole charade was designed to increase our debt limit so we could borrow more from China with the US taxpayer as guarantor. more taxpayer money could be sent to save European banks who hold US treasuries and trillions of worthless paper.

    Second, he says that those monies will be sent to bail out the European banks that are teetering on the edge of default, and hold worthless derivatives.  In other words our money is going to European banks as opposed to European countries.

    Third, he says that Angela Merkel objected to this massive bail-out fearing that it would bring down the German economy.  Whereupon, Barack Hussein Obama called her by phone and reassured her that the Federal Reserve would bail out Germany were that to happen.

    Fourth, he claims that the manipulation of our economy by what amounts to a syndicate of 24 banks in Britain Europe and the United States–the same interests who supported Messiah Obama– is being investigated by the governor and attorney general of New York.

    Fifth, that the head of the IMF was working on a further bail-out of $600 billion for Europe.  He was working with Obama, Geithner and Bernake.  He was taken down by a set of interests in New York opposed to this looting of the taxpayers. Elliot Spitzer is part of that group and knew the IMF head’s proclivities through call girl service.

    Sixth, that the Super Committee is a vehicle engineered by these big banks to reduce the financial obligations of government to American citizens so there is more money available to bail out the banks who are failing due to their speculative practices.  He calls if fascist.

    All I can say at this point is, we shall see how this thing develops. At the very least, it suggests why Mr Obama was installed as president and it portends what will happen if he is successful in bamboozling is way to a second term.

    • murray

      …makes sense to me…

    • Anonymous

      Thank you wbobe, very savory stuff. Will keep an ear to the ground on this.

    • Ferd_Berfle

      This administration needs to be investigated under the RICO Act. I want hard jail time for those bozos who are responsible for the outright theft our our hard-earned tax dollars.

      I need more nails, candymarl.

      • candymarl

        On the way Ferd!