80 Percent of Unemployment Rate Decline Due to Persons Leaving Labor Force

So says Peter Morici, quoted here by Elizabeth MacDonald at Fox Business:

“Some 80% of the reduction” in the unemployment rate from 10% hit in October 2009 to today’s 8.2% “has been from adults quitting the labor force,” says economist Peter Morici.

  

Morici adds the unemployment rate “rises to 14.5% if you factor back in those who’ve stopped looking for work but would re-enter if there were jobs, as well as part-time workers who would prefer full-time positions.” ...

The U.S. economy is creating jobs, but it is struggling, adding jobs at a rate of just 131,000 a month in 2011, which is not enough to reduce the unemployment rate.

Morici says the U.S. economy “must add 13 million jobs over the next three years -- 362,000 each month -- to bring unemployment down to 6%. GDP would have to increase at a 4% to 5% pace.”

So there you have it.

Since when does a nation’s labor force shrink during a recovery? It should not shrink, it should grow in a recovery.

Unemployment Falls to 8.1 Percent, 115K New Jobs

Consensus estimates had new jobs at 170K. Gee, they were off by only 55K this time.

Obama has been president for 39 full months, all of them with unemployment above 8 percent.

The Bureau of Labor Statistics reports the anemic results for April 2012 here:

Nonfarm payroll employment rose by 115,000 in April, and the unemployment rate was little changed at 8.1 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in professional and business services, retail trade, and health care, but declined in transportation and warehousing.

Unemployment in the US in the post-war period seems to get progressively worse only since America jettisoned strong dollar policy under Richard Nixon in 1971, as this graphic from The Wall Street Journal plainly illustrates.

And Obama wants us to go FORWARD with that, which means unemployment will only get worse over the long haul with the likes of him at the helm.

If only forward meant the past, like 1948-1968.

The Euro Area is Walking into Depression

So says The Economist, here:

"The euro area is walking, eyes wide open, into depression. Led by its periphery, which is already there."

How's Your Health Insurance? Mine's Up 25 Percent Since ObamaCare Passed

ObamaCare passed in March 2010, and since then my costs for health insurance for my family have gone up, and up again.

My first increase was effective in May of 2011, a 6.7 percent increase in the premium.

The second increase was effective just a few days ago on May 1, 2012, a whopping 17.2 percent rise in the cost.

Overall, my rates are up 25.1 percent for a plan that discounted a recent doctor-ordered 4 hour emergency room visit and follow-up care less than 23 percent.

Owie!

Between October 2006 and October 2011, US Real Estate is Down $7 Trillion

See here for the data.

The decline measured by the Federal Reserve's Z.1 Flow of Funds Release, B.100, shows the peak value of US real estate in October 2006 at $25 trillion. As of October 2011 the metric has fallen to $18.1 trillion.

Note the dramatic new uptrend in valuation which began in the late 1990s coincident with tax law changes permitting tax-free capital gains up to $500K in some circumstances to owners who occupied their homes for two years. Prior to that the gains were tax-free only once in a lifetime.

Call it housing commoditization.

Can you imagine returning to the trend line status quo ante? Hell to pay: at least another $2 trillion in declines coming.

Total Private Employment Today is at April 2000 Level

For the data, go here.

Peak private employment in America was reached in January 2008 under George W. Bush at 115.65 million. As of March 2012 the level is 4.85 million fewer, at 110.8 million.

Two Million German Women Violated By Stalin's Animals in 1945

An appalling story of human evil.

Here and here.

Norway is Anti-Semitic Because it Singles Out Israel for Opprobrium

So says Michael Sharnoff here, where he provides numerous examples dating from 2006 to the present:

Oslo’s recent behavior reveals a proclivity toward singling out Israel among all other nations for international opprobrium.

Norwegian leaders and officials attempt to justify their anti-Israel actions based on the narrative that Israel occupies Palestinian land. They typically avoid specifically targeting Jews, for fear of being labeled anti-Semitic, but their actions nonetheless exhibit traits of “genteel anti-Semitism.” ...

I would like to remind the Norwegian government and corporate CEOs of the European Union’s examples of the ways in which anti-Semitism manifests itself: “Claiming that the existence of a State of Israel is a racist endeavor, applying double standards by requiring of it a behavior not expected or demanded by any other democratic nation; and drawing comparisons of contemporary Israeli policy to that of the Nazis.”

Sarkozy v. Hollande: Their Only Difference (Small) Is Height

UMPS!

As observed by a supporter of Le Pen, quoted here in The Christian Science Monitor:

In a fiery speech to thousands of supporters waving French flags, Le Pen slammed Sarkozy's rhetoric on the need to strengthen borders and maintain a clear national identity as pure theatrics and labelled him and Hollande as lackeys of the European Central Bank, IMF and European Commission.

"The French have started their emancipation," she said, scorning the mainstream parties, the UMP and PS, or Socialists, as an indistinguishable "UMPS" bloc.

"The UMPS will not succeed," she said. "All of their efforts cannot stop us growing and cannot block our path to power."

Mockery of the two remaining candidates was a common theme among Le Pen's supporters:

"Sarkozy and Hollande, they are exactly the same," said an 18-year-old who gave her name as Justine. "If there is a difference between the two it's their height."

Another Geezer Eruption From Climate Alarmist James Lovelock: 'Put Democracy On Hold For A While'

This one in, where else?, the UK Guardian in 2010, which I missed, but many others noticed:

We need a more authoritative world. We've become a sort of cheeky, egalitarian world where everyone can have their say. It's all very well, but there are certain circumstances – a war is a typical example – where you can't do that. You've got to have a few people with authority who you trust who are running it. And they should be very accountable too, of course.

But it can't happen in a modern democracy. This is one of the problems. What's the alternative to democracy? There isn't one. But even the best democracies agree that when a major war approaches, democracy must be put on hold for the time being. I have a feeling that climate change may be an issue as severe as a war. It may be necessary to put democracy on hold for a while.

James should have been more honest. What he really meant to say was, "We need a more authoritarian world."

Remind you of anyone?

Obama Was Dismissive Of The Financial Panic In March 2009

"I have more than enough to do without having to worry [about] the financial system."

-- Barack Obama, here, the day before the March 2009 stock market bottom 

Flashback March 2009: It Really Bugged Obama to be Called 'Socialist'

So much so, the new president called back to The New York Times after he was interviewed on Air Force One.

From Joe Curl, here:

President Obama was so concerned that he had appeared to dismiss a question from New York Times reporters about whether he was a socialist that he called the newspaper from the Oval Office to clarify his policies.

"It was hard for me to believe that you were entirely serious about that socialist question," he told reporters, who had interviewed the president aboard Air Force One on Friday.

Presidents don't call newspapers. Newspapers call the president.

Old Communist Slogan Adopted By Obama 2012 Campaign

Birds of a feather, flock together:

George Orwell's Black Vision of Total Surveillance Realized With Drones

So says Peter Popham for the UK Independent, here:

The use of drones for the surveillance purposes sketched by Gitlin takes us back to their original function. The critical weakness of the Nazi doodlebug was the lack of control: its only use was as a mechanical kamikaze. Once you had control of the thing, everything changed. George Orwell was the first to describe the possibilities, in his novel 1984. "In the far distance a helicopter skimmed down between the roofs, hovered for an instant like a bluebottle, and dashed away again with a curving flight," he wrote in the novel's first chapter. "It was the police patrol, snooping into people's windows...". ...

It is the snooping function foreseen by Orwell that is the most significant next step for drones in our societies: with our cities and public buildings already saturated with surveillance cameras, we may fondly suppose that the state's monitoring of our daily lives has gone as far as it can go. But we ain't seen nothing yet. ...

Orwell's black vision of total surveillance – "It was even conceivable," he wrote in 1984, "that [the Thought Police] watched everybody all the time" – is finally achieving its technological apotheosis. In a few weeks, the US Army is expected to deploy in Afghanistan its latest helicopter-style drone, the A160 Hummingbird, equipped with 1.8 gigapixel colour cameras. Able to hover, unlike current drones, it will have "unprecedented capability to track and monitor activity on the ground", the Army says. Able to track people and vehicles from above 20,000ft, and with a 65sq-mile field of view, it will have 65 steerable "windows" able to follow separate targets. More modest surveillance drones may be used to enhance police monitoring of London's Olympics.

We Lack Sustainable Streams of Real Income from Productive Activity

So says Jeffrey Snider, here:

Central banks can proclaim that banks and the economy are one and the same, but that does not make it true. Again, there was no real danger of deflation in the real economy as currency, as in the usage of money to transact, was never in short supply. What has been in short supply, and remains in short supply, are sustainable streams of real income due to productive activities - the kinds of activities that have a hard time flourishing under continuously dysfunctional monetary regimes.

Today's Gold to Oil Price Ratio is About 15.86

In other words, 15.86 barrels of oil buys one ounce of gold.

Oil could rise to about $111 per barrel from today's $104.93 to achieve the perfect balance of 15:1.

Or gold could descend to about $1,575 the ounce to achieve the same thing.

The dollar has been trading in a fairly steady range of 3 percent for much of 2012 to date.

World's Most Disastrous Oil Spills, Updated

(see here and here)

Buy and Hold Investors Since October 2007 are Down Over 2 Percent

(source)

Justice Stephen Breyer, Secular Humanist: We'll Decide What's Enduring

Man the measure of all things:

“Why would people want to live under the ‘dead hand’ of an eighteenth-century constitution that preserved not enduring values but specific eighteenth-century thoughts about how those values then applied?”

-- Justice Stephen Breyer, Bill "Depends on what the meaning of is is" Clinton appointee, quoted here

He might as well have said:

“Why would people want to live under the ‘dead hand’ of an eighteenth-century constitution archaic Hebrew narrative that preserved not enduring values but specific second millennium BC thoughts about how those values then applied?”

Hmm. Why would they?

TARP Will Cost Taxpayers $60 Billion, Says Special Inspector General

Here:

"After 3 1⁄2 years, the Troubled Asset Relief Program (“TARP”) continues to be an active and significant part of the Government’s response to the financial crisis. It is a widely held misconception that TARP will make a profit. The most recent cost estimate for TARP is a loss of $60 billion. Taxpayers are still owed $118.5 billion (including $14 billion written off or otherwise lost). But the analysis should not be focused alone on money in and money out. TARP’s costs and legacies involve far more than just dollars and cents. Using a microscope to narrowly focus on the profit or loss of TARP risks losing sight of the bigger picture of whether TARP has been successful in meeting its goals and whether lessons learned from the financial crisis have been adequately implemented so that Treasury, banking regulators, and Congress do not find themselves in the position of rushing out another massive bailout of the financial industry, i.e., TARP 2.0.

"While TARP and other Government responses to the financial crisis may have prevented the immediate collapse of our financial and auto manufacturing industries, and improved stability since 2008, the tradeoff is not without profound long-term consequences. A significant legacy of TARP is increased moral hazard and potentially disastrous consequences associated with institutions deemed “too big to fail.” TARP’s legacy also includes the impact on consumers and homeowners from the large banks’ failure to lend TARP funds. TARP continues to be subject to criticism that TARP helped large banks but not homeowners. In addition, after 3 1⁄2 years, community banks have an uphill battle to exit TARP because they cannot find new capital to replace TARP funds. Finally, TARP’s legacy includes white-collar crime that SIGTARP is uncovering and stopping."

-- Christy L. Romero, Quarterly Report to Congress, April 25, 2012