Saturday, April 2, 2011

Lies, Lies, and More Lies About the Obama Recession

It was all Butch on this day at the Cafe as he pulled his notes from his Wranglers:

"When the American people elected Obama President, they also gave him the country's scorecard. Combine Obama as the scorekeeper with a liberal media that worships this President and the hen house is in big trouble. And man, are the feathers flying. Take unemployment as reported to the American public. This is our President's stated number one goal, right? Obama believes if he can keep unemployment below 9% and possibly get it to 8% he can get re-elected and claim a victory for the way he stimulated us.  Today the good news was announced that unemployment was "only" 8.8%.  But,  let's look at the facts. Non farm payroll employment increased by 192,000 in February (remember this number), and the published unemployment rate was little changed at 8.9 percent. The number of unemployed persons was (13.7 million). However when you look at the number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) these numbers also held at the huge number of 8.3 million in February. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

Additionally in February, 2.7 million persons were what they call marginally attached to the labor force, up from 2.5 million a year earlier. Notice how this 200,000 who quit looking is slightly larger than the reported 192,000 who were supposed to have started back to work. Now ain't that convenient. It keeps the unemployment number as 8.9%. These individuals were not counted in the labor force, even though they want jobs, were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had given up and had not searched for work in the 4 weeks preceding the survey.

In other words when a worker has taken a part time job because they could not find a full time job and when other workers had given up looking in the last four weeks, these workers were DROPPED from the unemployment figures therefore reducing the reported unemployment rate.

Totaling those that are counted as unemployed (13.7 million), part time because they could not find full time jobs (8.3 million), and those who had stopped looking (2.7 million, the real unemployment number is 16% with a whopping 24.7 million Americans who are unable to find full time employment. For those from Mr. Calm, that is 1 out of every 6 workers. And for the last year the Obama administration has found some single statistic (they call 'em facts) to announce and spin as positive feedback that his $1 Trillion payoff of his Union friends and financial supporters is working. And then you get this BS that 'it could have been a lot worse'. Hell, I'm not even sure Hillary could have been worse. With this kind of math if you give Obama another 4 years all unemployed people will quit looking and the unemployment rate will go to zero.

On the cost of living side even though consumer prices are up 4.6% we are told inflation is under control.  The Federal Reserve has been printing money like a counterfeiter drinking Thunderbird wine, and yet we are told inflation is under control. Why? The government announces inflation numbers 'adjusted' for food and gasoline. This means they don't count what you eat and put in your gas tanks when they give you the phony inflation numbers. Why? They say these are too 'volatile'. That is Obama-speak for 'not conducive to his re-election'. Facts: A gallon of gasoline cost $1.84 when Obama took office. It now averages $3.55 per gallon, an increase of 92% in two years. Yes, I know these have been two really, really long years but still that is a huge increase."

Most of us eat food on a semi-regular basis. A January, 2011 report said 'The Food and Agriculture Organization’s (FAO) food price index hit a record high in December, 2010 topping 2008’s previous high when soaring food costs led to food shortages and riots in many parts of the world. The index, which measures the average price of a food commodity basket consisting of cereals, oils, dairy, meat, and sugar, was up for the sixth month in a row in December, to reach a high of 215 points, up from 206 points in November, and the highest since records began in 1990. And hell, with prices like that you should be able to put some ribs and fried chicken in that basket.

Bottom line, Obama has us in a deep hole with slow, slow growth and higher, higher prices.  There is no debate about that.  The only debate is whether he is doing this on purpose or is just incompetent."

In an unusual turn of Cafe events, Sweet Lou actually closed the proceedings on this day, "I guess Obama is saying that if folks don't eat or go anyplace or need a job then they'll be fine. Just stay home and live on stimulation, I reckon."

Think about it,


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