Job losses rose by 539,000 in April. Government jobs increased by 66,000 during the same month.
This just shows the absurdity of the economic plan that this administration is offering. They are spending money on friends, donors and relatives that is impossible to replace within the next few generations. And, with government spending on government continuing at this pace, there may be no recovery. Now they are trying to show that jobs are being created. How are they doing it? They are intending to accomplish the feat by borrowing against one credit card to pay the bills of the other credit cards.
How did America and the world get into the current financial mess? It was by spending. It was by buying more than could be afforded. It was by anticipating income that never came. The immediate picture looked so good that even foreign countries heavily invested in our highly speculative and false economy.
How is the president trying to get out of the current financial mess? By spending and anticipating income that may never come about.
While our government had a role in configuring and conflagration of the situation by loosening the standards required for extending credit to individuals, and while greedy bankers and Wall Street executives also played their roles to the hilt, it is no one other the American people who are to blame. Joe Sixpack and family are the ones, despite all the fingers pointing to the big guys.
Yes, Congress made it possible by causing the lenders to accept applications from unqualified borrowers in the name of ‘fairness and equality’. And yes, it was the government and their cohorts that promoted spending and everyone having a piece of the American Dream pie. But who’s choice was it to grab the fork and dig into that pie? The final choice rested with Joe and family.
Anyone who has experienced life for 40 years or more should be able to recognize that there are peaks and valleys. Jobs come and jobs are lost. Home loan interest rates are affordable for the average family and then not. The price of gasoline goes down and the price goes up. This information should be passed down to our youth, but it’s not. In fact, during the good times, those who are supposed to be aware and educating others forget it altogether.
Most young people, when they land their first job, go out and buy as much car as they can afford (monthly). All is great until that job goes away or Joe Jr’s hours are cut back. Then mom and dad are asked and expected to save the car. There is no, or little, thought when buying that car to saving some of the earnings in anticipation that things could change. No, the money is there and is to be spent. It’s the American way. It’s the American mentality, “I’ll have extra money when the car is paid off and I can save then.”
Here’s the way it works. Maybe you’ve been caught in the same unfortunate situation. Almost everybody knows someone who has, be they friend, neighbor or relative. Anyway, you’ve spent all the family income to have toys and a lifestyle you could only afford by borrowing against future earnings. You put your life on a credit card. You couldafford all this and a pizza on Friday night, too. Then the accident happened that took you out of work for just long enough to outrun your sick and vcation time. The medical expenses piled up.
The savings had to be spent paying the bills and then when the savings were gone the salvation became the little remaining credit on the credit cards. In order to forestall bankruptcy, you then borrow against one credit card to make the minimum payments on the other five. Next month you borrow against card #2 and do the same. Month three…The interest continues to build on the borrowed money and the debt continues to rise, but to the neighbors it looks like you’re in good shape. The repo man hasn’t come and hooked up the SUV in the middle of the night and the kids are still wearing the obligatory designer clothing to school. You, and only you, know that the day is coming when you will have to pay the price, but you refuse to let it be known to anyone else.
This, as I see it, is exactly what is happening with the employment figures, and the national economy in general. Jobs are being lost in the private sector. This administration, with all the assistance of the network media, is showing them being offset by job starts. The problem is that the job starts are almost all in government.
Our current president is living the same lifestyle as Joe Sixpack and family did, only on our money. He has spent all of the country’s income buying cars (car companies) and homes (Fannie and Freddie) and paying back the lenders who provided Joe and family with the SUV, boat, big screen TV, etc. He is anticipating income from increased taxes, but will the income come? Right now jobs are in the toilet and consumer spending is off due to job losses. The American public, which has no savings, cannot afford to spend and pay the additional taxes imposed to offset the government spending because lenders will no longer front them the credit.
Three, four and five times the revenue is being spent on unemployment than has been necessary for over three decades. The states paying the unemployment didn’t save any of the surplus either, ‘cause it’s the American Way to spend all available money. And that mentality works for government just like it worked for Joe.
The government, which we can’t afford now, is growing and becoming more costly. Who’s going to pay the salaries of the newly employed? From where is the money going to come? The few businesses that are still open and viable cannot bear the proposed increase in taxes and remain viable. The citizens who still have income can’t. Consumers are buying less due to the lack of resources and the increased prices caused by the additional taxes on business, materials and labor.
Obummer has proposed increasing taxes on businesses even more to help pay for the deficit spending. Great! Businesses will have to lay people off to save the labor costs in order to cover the additional taxes. That will put more people in the unemployment lines. And the negative cycle deepens and continues to pick up speed.
The economic crisis is being deepened and widened by our government, not reduced or stimulated. It, I’m sure is a major step toward the “North American Union” or whatever the name choice is for this administration. The devaluation of the dollar that is projected by the increased printing of more money to pay the credit card looks like the creation of a crisis requiring the conversion to the “Amero”.
The situation America is in now has been created over the past twenty to thirty years and is just now beginning to escalate a pace that is readily recognizable even to those not paying attention. Despite the call for transparency in government that has been loudly shouted for years, there is more and more quiet whispering taking place in the darkened, sound proof caves of the country. The elite are, as they have been for a long time, telling us one thing and doing the diametric, hoping no one will notice and connect the dots until it’s too late.
A prime example is the stall on producing documents authorizing Obummer to actually have charge of this nation. The more he can set in place, the harder it is going to be to unwind and restore normalcy.
Meanwhile, back at the ranch, Michelle has some new sneakers to wear to the Wednesday night concerts we’re buying with the money we don’t have. At $540 they cost more than anybody is getting on unemployment. She’ll probably wear them five or six times. Let the good times roll!
Here’s hoping that you’re still working or at least have some money left in your retirement fund.