Is It Really 'Jobs, Jobs, Jobs'?
It would be sterling if we could know the truth and stick with it? It’s uncanny how the media can warp one’s sense of reasoning or logical thinking. A politician or two can make a statement, maybe add a little enthusiasm to it and the media/population picks it up and runs with it like it was gospel.
Let's drill down on this mantra that this election is all about 'jobs, jobs, jobs'. Maybe, if we make a list of some truths re 'jobs' it will help to dispel the notion that this election is all about 'jobs'.
A majority of the 535 voted to adopt policies toward the implementation of globalism. The majority have been working on this project since the Carter administration. The thinking was that through a globalised economy, linked through free trade agreements and referred by the WTO, we could ensure a more peaceful world and bring most of the world population out of poverty. Implementation required three major initiatives. Commerce, especially heavy industry, would gravitate to the cheapest labor markets having a semblance of gov't/security. Laws relating to trade, travel and security would have to be harmonized among nations. Finally, for nations to be able to compete in a globalist economy worker wages would have to be normalized/harmonized around the world.
Toward that effort a majority voted for NAFTA, CAFTA and all the AFTA's. The NAU failed because US citizens would not bend on issues of sovereignty in attempting to create a regional trading bloc with Mexico and Canada. Still, much of NAU policy was shoe horned in under the auspices of NAFTA and similar.
From the mid-1980's forward numerous corporations, while keeping at least an office front in the US, moved to cheap labor markets. First to Mexico, then the Asian rim and of late, to Brazil and others. Estimates are that some 2 million jobs were relocated but the real number can't be known. When the Bureau of Labor Statistics counts a bus driver as a 'green job created' I can assure you we don't know how many jobs have moved overseas. Gov't will, and does, lie to score political points. But, the point is that jobs were lost to overseas markets, as planned.
In the mid-late 80's the Regan administration gave citizenship to some millions of immigrants. Since then several more millions of immigrants, we can't know for sure how many, have arrived seeking work and citizenship. Many of the highly skilled along with laborers have found jobs. But, there are far too few jobs to support the large number looking for work. Again, numbers are all over the place with estimates in the range of 20-25% of the workforce.
On the financial side the 535 colluded or allowed cornerstones to be removed from regulatory law which quickly led to risky financial policy in the private sector. Such policy resulted in the mortgage crisis which has put a good number of home owners underwater with their mortgage and/or out of their homes.
The culmination of moving work overseas, flooding the US with immigrant workers and removing regulatory pillars in the financial and mortgage sectors have worked to somewhat level the economic playing field as it relates to a global economy. Some 40% of middle class wealth has been eroded in just a few years. Many states are unable to pay their employees or fulfill pension payment requirements. One state is proposing that state workers accept a minimum wage salary as an austerity measure.
The recessionary events we have experienced are now being played out in Europe as they too, must go through a 'harmonizing' of wages so that they, and we can compete effectively in a globalised economy.
While the 535 has had much success we are not yet competitive as a nation. The average middle class wage still hangs somewhere around $23/hr compared to $3-4/hr in cheap labor markets. And, part of middle class wealth/wages are tied up in entitlements and retirement plans. These too, will need to be ground down to the lowest common denominator among nations.
Therefore, it is necessary for the 535 to maintain pressure on wages and jobs for the foreseeable future. Some economist are saying we will experience little to no growth for several outyears. So, for those who portend this election is about 'jobs' they are barking up the wrong tree, IMO. The some 80k jobs supposedly created in the recent jobs report are mostly attributable to people mowing each others grass and so on . . .
I recently posted that it is impossible for the gov't to even pay the interest on the federal debt. That assumes that the same policies are kept in place. But, suppose the US let the dollar crash to something near the value of the Chinese Yuan. That might be a solution to the debt and level the playing field as well.
But, please, let's make this election about pornography or religion or drugs . . . something more substantive than 'jobs, jobs jobs'. We need to just step back and let the 535 do their work
Posted by Roy Ellis at July 7, 2012 5:21 PM
Otherwise - - -
Yeah, more jobs would be great!
But doing what?
Because we cannot make a living doing each others’ laundry.
And we cannot continue to create so much new money out of new air, tax, and spend our way to prosperity.
Also, not enough U.S. citizens care enough to stop rewarding incumbent politicians for rewarding companines for moving jobs offshore or stopping greedy employers from employing illegal aliens.
These 10 major abuses continue to chip away at the nation’s future and security.
Warren Buffet said “I could end the deficit in 5 minutes,” he told CNBC reporter.
“You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.”
That’s a good idea, but it may now be too late?
Also, Congress will never reform itself.
Already, Congress ignores Article V of the U.S. Constitution, because they know there would be numerous such common-sense, no-brainer reforms to limit their abuses, corruption, and parasitic behavior.
How about a 28th Amendment to the U.S. Constitution?
Congressional Reform Act of 2012:
- (1) No Tenure / No Pension. A Congressman/woman collects a salary while in office and receives no pay when they’re out of office.
- (2) Congress (past, present & future) participates in Social Security.
All funds in the Congressional retirement fund move to the Social Security system immediately. All future funds flow into the Social Security system, and Congress participates with the American people. It may not be used for any other purpose.
- (3) Congress can purchase their own retirement plan.
- (4) Congress will no longer vote themselves a pay raise. Congressional pay will rise by the lower of CPI or 2%. That might give Congress some incentive to stop creating new money out of thin air?
- (5) Congress loses their current health care system and participates in the same health care system as the American people.
- (6) Congress must equally abide by all laws they impose on the American people.
- (7) All contracts with past and present Congressmen/women are void effective 12/1/12. The American people did not make this contract with Congressmen/women.
Congress made all these contracts for themselves. Serving in Congress is an honor, not a career. The Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and ack to work.
Roy wrote: I recently posted that it is impossible for the gov’t to even pay the interest on the federal debt.
Essentially, that is correct.
That is, not without creating more and more new money out of thin air.
And that is now the most likely outcome.
It has already been happening far too long, which is why a 2001 U$D is only worth 77 cents, and a 1950 U$D is only worth 11 cents.
3% inflation may not sound so bad, until you consider 3% every year, compounded, year after year after year, for decades. The U.S.
CPI (CPI=100 for year 1967)
650 + - - - - - - - - -X
600 + - - - - - - - - -X
550 + - - - - - - - - -X
500 + - - - - - - - - X
450 + - - - - - - - - X
400 + - - - - - - - - X
350 + - - - - - - - -X
300 + - - - - - - - X
250 + - - - - - - - X
200 + - - - - - - -X
150 + - - - - - - -X
100 + - - - - - -X
1 1 1 1 1 1 1 1 1 1 22
8 8 8 8 8 9 9 9 9 9 00
0 2 4 6 8 0 2 4 6 8 01
0 0 0 0 0 0 0 0 0 0 02
With $57 Trillion of nation-wide debt, it does beg the question which no one here can answer.
Where with the money come from to merely pay the interest on so much nation-wide debt, when the M2 Money supply is less than $10 Trillion, and nation-wide liabilites are $120 Trillion?
Of course, the only option left now is to create massive amounts of new money out of thin air.
But the amounts of new money required to merely service the debt will lead to hyperinflation.
Roy wrote: But, suppose the US let the dollar crash …
Yes, that is, unfortunately, the only option left.
That is, there are NO other options left, because the other options are all equally bad, and equally disastrous.
And Ben Bernanke (Federal Reserve Chairman) seems happy to keep creating more and more money out of thin air.
In fact, these are Ben Bernanke’s own words: “The U.S. government has a technology, called a printing press — or today, its electronic equivalent — that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”
Making matters worse, the Federal Reserve essentially looks the other way as the federal bugets and debt spiral farther out of control, which are already beyond nightmare proportions.
The Federal Reserve has lowered rates about as far as the can go.
What’s next? ZERO interest rates? Start dropping money from helicopters?
But what good is that if:
- the nation-wide debt is $57 Trillion and very few can borrow more money, because their credit is ruined already;
- they already have too much debt ($57 Trillion / 312 million U.S. population = $182,692 per person);
- they already have too much debt ($57 Trillion / 160 million employed workers = $356,250 per employed worker);
- they already have too much debt ($120 Trillion in liabilities / 160 million employed workers = $750,000 per employed worker);
- they already have too much debt ($120 Trillion in liabilities / 312 million U.S. popularion = $384,615 per citizen);
- 80% of the U.S. population owns less than 17% of all weatlh in the U.S.; and the wealthiest 1% owns over 40% of all wealth in the U.S.;
What good is a lot of new money if it takes a truck load of U$D to buy a cup of coffee?
But it is too late for spending cuts, tax increases, and stimulus from more new money created out of tin air?
Spending cuts are inevitable, but it is too late for it too make any difference.
To fully fund the U.S.’ entitlement programs, the U.S. federal government would have to cut discretionary spending by 100% (or more).
That is, the federal government is spending and borrowing far, far more than it receives in annual revenues, not to mention that the total federal debt is $16 Trillion (more than the nation’s GDP).
More borrowing is most certainly not the solution either.
Nations who continue to loan money to the U.S. are throwing their money down a black hole.
And the only reason why people buy U.S. bonds and securities is because while the U$D is like a hooker on crank cocaine, many other international currencies are like a hooker with AIDS.
The plan is this.
Continue to create more money out of thin air, but just enough to prevent revolt, and just enough to avoid hyperinflation.
However, that will not work now either.
Devaluing the U$D will certainly shrink the debt, but the total $16 Trillion of federal debt, and the $57 Trillion of nation-wide debt, and the $120 Trillion of nation-wide liabilites ($30 Trillion more than nation-wide assets) is too much to shrink to any significant amount without resorting to all-out hyperinflation.
The U.S. Federal Reserve is already creating over $100 Billion per month out of thin air.
Major International institutions are already calling for the dollar to be replaced as the World’s Reserve Currency.
The U.S. Dollar will most likely plunge against the Chinese currency, now that China has built up the world’s largest reserves (e.g. over $3 Trillion).
More than 300 million Chinese have been lifted out of poverty since 1990 (almost equal to the U.S.’ 312 Million population as of 2010).
China has 2.2 million active-duty military personnel; 600,000 more than the U.S.
At the same time, the number of Americans living in poverty soared more than 45%. More than 46 million Americans now live below the poverty line.
Americans ages 35 to 44 have lost 55% of their wealth, and are 70% poorer than their counterparts of the same age in 1984 (according to a Pew Research Center study from last year);
State and local pensions are $3.9-to-$5.0 Trillion in debt (much more than the previous estimate of about $900 Billion);
And here’s something very strange.
I work with a guy from China who works here in the U.S. on a 10 year Green Card.
He went to College at Texas A&M.
He told me he got grants and scholarships to pay for most of it.
So, after some more research, it appears that many U.S. colleges and universities are giving grants and scholarships to foreign citizens.
Why is this happening?
Seems like a stupid thing to do, eh? Educating foreigners instead of U.S. citizens?
However, not until you consider the reason: cheap labor.
Never underestimate human greed.
This is why illegal employers are not prosecuted.
This is why most politicians (mostly Democrats) pander to illegal aliens, hanging the perpetual carrot before them for yet another amnesty, like the amnesty of 1986, which quadrupled the problem.
This is why the borders are wide open.
This is why the federal government sues states for trying to enforce the laws that the federal government is supposed to enforce, but won’t.
This is why most politicians have more compasion for illegal aliens than they do for U.S. citizens.
This is why most politicians despicably pit illegal aliens and U.S. citizens against each other for votes and profits from cheap labor. Cha Ching!
Yet, Congress and most politicians STILL enjoy perpetual re-election!
90% of elections are won by the candidate that spends the most money on their campaign!
A tiny 0.3% of the wealthiest people in the U.S. make 83% of all federal campaign donations of $200 or more!!!
40%-to-50% of eligible voters don’t bother to vote at all.
Most voters blindly pull the party-lever (e.g. lazily vote straight ticket).
Most voters don’t even know who their Congress persons are.
Most voters vote for the politicians that do the best job bribing them with their own tax dollars. Cha Ching!
HHMMmmmmmmmmmmmmmmmmmm … it really doesn’t say much for the majority of voters, does it?
But, in a voting nation, we all (mostly) suffer the consequences of choices of the majority.
The one consolation is that the majority of voters will reap what they sow, and they will only have themselves to thank for it.
And that is as it should be, if there is any hope ever for voters to learn from their mistakes.
Unfortunately, the painful consequences of such mistakes can last for decades (if not lifetimes).
But, at any rate, the majority of voters have the government that they elect, and re-elect, … , and re-elect, at least, possibly, until repeatedly rewarding failure, repeatedly rewarding the duopoly, and repeatedly rewarding FOR-SALE, incompetent, arrogant, greedy, selfish, and corrupt incumbent politicians in Congress with perpetual re-election finally becomes too painful.