Watching The US Economy Crumble

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Iris
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Watching The US Economy Crumble

Post by Iris » 08-11-2005 10:29 PM

Seroius stuff that will knock you out of denial...


Watching The US Economy Crumble

Good News! Soon You'll No Longer Need An
Expensive College Education to Work in the US

By Paul Craig Roberts
8-11-5

The US continues its descent into the Third World, but you would never know it from news reports of the Bureau of Labor Statistics' July payroll jobs release.

The media gives a bare bones jobs report that is misleading. The public heard that 207,000 jobs were created in July. If not a reassuring figure, at least it is not a disturbing one. On the surface things look to be pretty much OK. It is when you look into the composition of these jobs that the concern arises.

Of the new jobs, 26,000 (about 13%) are tax-supported government jobs. That leaves 181,000 private sector jobs. Of these private sector jobs, 177,000, or 98%, are in the domestic service sector.

Here is the breakdown of the major categories:

* 30,000 food servers and bar tenders;
* 28,000 health care and social assistance:
* 12,000 real estate;
* 6,000 credit intermediation;
* 8,000 transit and ground passenger transportation;
* 50,000 retail trade; and
* 8,000 wholesale trade.

(There were 7,000 construction jobs, most of which were filled by Mexicans immigrants.)

Not a single one of these jobs produces a tradable good or service that can be exported or serve as an import substitute to help reduce the massive and growing US trade deficit. The US economy is employing people to sell things, to move people around, and to serve them fast food and alcoholic beverages. The items may have an American brand name, but they are mainly made off shore. For example, 70% of Wal-Mart's goods are made in China.

Where are the jobs for the 65,000 engineers the US graduates each year? Where are the jobs for the physics, chemistry, and math majors? Who needs a university degree to wait tables and serve drinks, to build houses, to work as hospital orderlies, bus drivers, and sales clerks?

In the 21st century job growth in the US economy has consistently reflected that of a Third World country--low productivity domestic services jobs. This goes on month after month and no one catches on--least of all the economists and the policymakers.

Economists assume that every high productivity, high paying job that is shipped out of the country is a net gain for America. We are getting things cheaper, they say. Perhaps, for a while, until the dollar goes. What the cheaper goods argument overlooks are the reductions in the productivity and pay of employed Americans and in the manufacturing, technical, and scientific capability of the US economy.

What is the point of higher education when the job opportunities in the economy do not require it?

These questions are too difficult for economists, politicians, and newscasters. Instead, we hear that "last month the US economy created 207,000 jobs."

Television has an inexhaustible supply of optimistic economists.

Last weekend CNN had John Rutledge (erroneously billed as the person who drafted President Reagan's economic program) explaining that the strength of the US economy was "mom and pop businesses." The college student with whom I was watching the program broke out laughing.

What mom and pop businesses? Everything that used to be mom and pop businesses has been replaced with chains and discount retailers. Auto parts stores are chains, pharmacies are chains, restaurants are chains. Wal-Mart, Home Depot, and Lowes, have destroyed hardware stores, clothing stores, appliance stores, building supply stores, gardening shops, whatever--you name it.
Just try starting a small business today. Most gasoline station/convenience stores seem to be the property of immigrant ethnic groups who acquired them with the aid of a taxpayer-financed US government loan.

Today a mom and pop business is a cleaning service that employs Mexicans, a pool service, a lawn service, or a limo service.

In recent years the US economy has been kept afloat by low interest rates. The low interest rates have fueled a real estate boom. As housing prices rise, people refinance their mortgages, take equity out of their homes and spend the money, thus keeping the consumer economy going.

The massive American trade and budget deficits are covered by the willingness of Asian countries, principally Japan and China, to hold US government bonds and to continue to acquire ownership of America's real assets in exchange for their penetration of US markets.

This game will not go on forever. When it stops, what is left to drive the US economy?

Paul Craig Roberts has held a number of academic appointments and has contributed to numerous scholarly publications. He served as Assistant Secretary of the Treasury in the Reagan administration. His graduate economics education was at the University of Virginia, the University of California at Berkeley, and Oxford University. He is coauthor of The Tyranny of Good Intentions.He can be reached at: paulcraigroberts@yahoo.com

http://rense.com/general67/wrt.htm
We must, indeed, all hang together, or assuredly we shall all hang separately. B. Franklin

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It's going to get bad, really bad...

Post by Lord Moon » 08-11-2005 11:35 PM

The odds are that the national average for gasoline prices will be $3.00 within 3 months. The price of food will go up...

and because of Greenspan... the cost of housing will go up...

just in time for the new bankrupcy laws to take effect... I wonder if they planned it that way what do you think..?

In addition all that money that is being made by other countries who sell us the oil is coming back home, as those other countries begin bying up the good old USA, lock stock and barrel.....

and since the Neo con's haven't really thought all of this through they might want to ask themselves where the tax money is going to come from to fund their little adventures overseas.... from waitresses...waiters...socialworkers...chefs.....poolboys....florists...janitors.. teachers, bus drivers and clerks? (Many of whom used to be engineers, doctors, physics teachers, IT professionals and electronic's engineers)

Since the rich ones don't really have to pay taxes because of the tax loop holes created by the social elite in washington...

we're going to have to ask Bangalore for permission to go to war........

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Post by spaceprophet » 08-12-2005 02:34 AM

This country is just going down the tubes. All because the NeoCons so desperately want to return to feudalism.

The sad thing is many college students that are finding themselves making peanuts in the service industry are neck deep in debt. Because when conservatives cut taxes they also cut spending on education. This raises the cost of tuition and other college expenses. On top of that if there are no jobs upon graduation but low pay jobs graduates are screwed.

Now the NeoCons are going to throw people in jail if they cannot pay their bills. Oh yes, they will throw them in jail for having no money! How is that you may ask? Since they changed the bankruptcy law you will have your wages garnished if you claim you cannot repay your debts. This is done by the courts. And you know what happens if you defy the courts? Jail of course. Which is the typical answer from conservatives for people who aren't rich like them or look like them or behave like them or think like them.

This leads me to believe that they want more people in jail. They make college into a privatized, price gouging industry along with health care. Energy and gas prices are allowed to soar. They then send all the jobs over seas and force large portions of people to work low wage jobs in the wake. Then they change the bankruptcy law making it against the law to claim you're broke.

They're creating a master/slave or prison way of life I tell ya.

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Iris
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Re: It's going to get bad, really bad...

Post by Iris » 08-12-2005 04:04 AM

Lord Moon wrote: just in time for the new bankrupcy laws to take effect... I wonder if they planned it that way what do you think..?
But, of course.
and since the Neo con's haven't really thought all of this through
But they have. They're not "making mistakes" -- when we start to understand that, then the pieces fall in place. They're doing exactly as they please, and the NWO creeps have had centuries to plan this out. Chilling, isn't it?
We must, indeed, all hang together, or assuredly we shall all hang separately. B. Franklin

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Iris
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Post by Iris » 08-12-2005 04:05 AM

spaceprophet wrote: This leads me to believe that they want more people in jail.
Yes! Check who owns the private prisons.
We must, indeed, all hang together, or assuredly we shall all hang separately. B. Franklin

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Post by daboodaddy » 08-12-2005 05:55 PM

Prisoners are a cheap slave labour force in the eyes of the Neo-Cons, who also OWN many of the prisons.:mad:
Question EVERYTHING, even your OWN thoughts.
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Post by joequinn » 08-12-2005 07:14 PM

To those who know what they are:

You degenerate fascist trash, who voted for Dubya last November so that he could kill the queers, prepare to go under yourselves!
"Fuggedah about it, Jake --- it's Chinatown!"

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Post by fabzilla » 08-13-2005 06:47 AM

spaceprophet wrote:


Now the NeoCons are going to throw people in jail if they cannot pay their bills. Oh yes, they will throw them in jail for having no money! How is that you may ask? Since they changed the bankruptcy law you will have your wages garnished if you claim you cannot repay your debts. This is done by the courts. And you know what happens if you defy the courts? Jail of course. Which is the typical answer from conservatives for people who aren't rich like them or look like them or behave like them or think like them.

This leads me to believe that they want more people in jail. They make college into a privatized, price gouging industry along with health care. Energy and gas prices are allowed to soar. They then send all the jobs over seas and force large portions of people to work low wage jobs in the wake. Then they change the bankruptcy law making it against the law to claim you're broke.

They're creating a master/slave or prison way of life I tell ya.





And the general population will fill beyond capacity and the tax burden would increase as they also teeter on the verge of breaking thus thrusting the entire country into a crumbling effect of over taxation, like we are not alredy there, and the looming "vacation" plans at your local penitentiary.


Worse case scenario, you're either jailed and pissed, or you are going to go to jail and be pissed, and everyone else is pissed as the stasi take financial control of the remaining lump mass, which of course by this point will be looked at as a malignant tumor beckoning for a swift removal with a sharp object or laser device.


It may have to approach such a level for the damn majority to wake up enough to see what is actually occuring.

Oh yeah, close the borders wil be the knee jerk reaction, but will it be to keep people out, or keep them in....


fab








:(
Ah drrr drrr drrr

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Post by Iris » 08-13-2005 07:39 AM

fabzilla wrote: It may have to approach such a level for the damn majority to wake up enough to see what is actually occuring.
There's plenty of evidence (some right on this forum) to say that you're right. Why do you think that is?
We must, indeed, all hang together, or assuredly we shall all hang separately. B. Franklin

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Post by fabzilla » 08-13-2005 08:10 AM

Iris wrote: There's plenty of evidence (some right on this forum) to say that you're right. Why do you think that is?



Because it is happening Iris.

Forcing the hand will not be easy and it will not come free of charge.

This economy is weighing in on pins and needles.

The tax breaks are giving a false sense of "security" to some of the lower bracket corporate fundies, ushering investments pinned on the bogus inflation rate escalation and tactics coming out of Greenspan's cabal.

Iran will make or break this plan with either side showing their hand first and to what extreme they are willing to go.

Hope it is not a cold winter if it is, the foreclosure rate will escalate to unheard of parallels within history and the recent restructuring of the bankruptcy laws will usher in a new feeding frenzy against our once established individual ownership system.

The after effects will be a substantial decline in revenue for the states, counties, and local municipalities from now centraly owned property investment institutions opting for tax rollout and roll away packages from the F'ed instead of the states.

Who will they blame?

Well of course it will fall upon the misguided consumer's choices of spending and savings, which is all and all to blame at the feet of the multi media comglomerates preaching materialism and self indulgency on every level of their social engineered society.

It is something to carefully watch.


But this is a geopolitical issue often all to presented as a domestic policy of seperation which it is partly of, but not completely as some would love to imply.

Corporate internationalism is at a dangerous peak, and the quest for profits and subservient labor forces is leading the way to a failure in the international marketplace.


fab
Ah drrr drrr drrr

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Post by Cherry Kelly » 08-14-2005 05:36 PM

Surprisingly this didn't make it into the above news area... but its so new that its totally understandable. ENERGY - yes the making of corn alcohol gasoline -- each plant when in operation will have 40-50 workers. Now granted this is in the middle of the USA where "corn is king" - but it is where the majority of the conomy is tied to farming and where jobs are scarce.
There were 6 new facilities going into building stages for production as early as fall of 05, mid 2006. Now thats only a few hundred - but this was only in a small area, and word in the article stated that several other areas (where corn production is a big factor) were also adding these type facilities.

ANother one in energy - windmill 'farms' -- this won't require a whole lot of workers to make these huge windmill blades and storage units, but they too are adding jobs - skilled type jobs.

???
What category do the 40,000 police officers go with? town cops - projected to be added in 06????

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Post by spiritme » 08-30-2005 04:42 PM

AP
Poverty Rate Rises to 12.7 Percent
Tuesday August 30, 4:11 pm ET
By Jennifer C. Kerr, Associated Press Writer
Census Reports the Nation's Poverty Rate Rose to 12.7 Percent of the Population Last Year


WASHINGTON (AP) -- Even with a robust economy that was adding jobs last year, the number of Americans who fell into poverty rose to 37 million -- up 1.1 million from 2003 -- according to Census Bureau figures released Tuesday.
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It marks the fourth straight increase in the government's annual poverty measure.

The Census Bureau also said household income remained flat, and that the number of people without health insurance edged up by about 800,000 to 45.8 million people.

"I was surprised," said Sheldon Danziger, co-director of the National Poverty Center at the University of Michigan. "I thought things would have turned around by now."

While disappointed, the Bush administration -- which has not seen a decline in poverty numbers since the president took office -- said it was not surprised by the new statistics.

Commerce Department spokeswoman E.R. Anderson said they mirror a trend in the '80s and '90s in which unemployment peaks were followed by peaks in poverty and then by a decline in the poverty numbers the next year.

"We hope this is it, that this is the last gasp of indicators for the recession," she said.

Democrats seized on the numbers as proof the nation is headed in the wrong direction.

"America should be showing true leadership on the great moral issues of our time -- like poverty -- instead of allowing these situations to get worse," said John Edwards, the former North Carolina senator and Democratic vice presidential candidate. He has started a poverty center at the University of North Carolina at Chapel Hill.

Overall, the nation's poverty rate rose to 12.7 percent of the population last year. Of the 37 million living below the poverty level, close to a third were children.

The last decline in overall poverty was in 2000, during the Clinton administration, when 31.1 million people lived under the threshold. Since then, the number of people in poverty has increased steadily from 32.9 million in 2001, when the economy slipped into recession, to 35.8 million in 2003.

The poverty threshold differs by the size and makeup of a household. For instance, a family of four was considered living in poverty last year if annual income was $19,307 or less. For a family of two, it was $12,334.

The increase in poverty came despite strong economic growth, which helped create 2.2 million jobs last year -- the best showing for the labor market since 1999. By contrast, there was only a tiny increase of 94,000 jobs in 2003 and job losses in both 2002 and 2001.

Asians were the only ethnic group to show a decline in poverty -- from 11.8 percent in 2003 to 9.8 percent last year. The poverty rate for whites rose from 8.2 percent in 2003 to 8.6 percent last year. There was no noticeable change for blacks and Hispanics.

The median household income, meanwhile, stood at $44,389, unchanged from 2003. Among racial and ethnic groups, blacks had the lowest median income and Asians the highest. Median income refers to the point at which half of households earn more and half earn less.

Regionally, income declined only in the Midwest, down 2.8 percent to $44,657. The South was the poorest region and the Northeast and the West had the highest median incomes.

The number of people without health insurance coverage grew from 45 million to 45.8 million last year, but the number of people with health insurance grew by 2 million.

Charles Nelson, an assistant division chief at the Census Bureau, said the percentage of uninsured remained steady because of an "increase in government coverage, notably Medicaid and the state children's health insurance program that offset a decline in employment-based coverage."

The estimates on poverty, uninsured and income are based on supplements to the bureau's Current Population Survey, and are conducted over three months, beginning in February, at about 100,000 households nationwide.

Census Bureau: http://www.census.gov

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Something to consider Cherry in turning corn into fuel...

Post by Lord Moon » 08-31-2005 12:08 AM

It takes lots of diesel to run a tractor, and a combine, and process the corn.

It also takes lots of crude oil to turn into fertilizer, and pesticides, and put that NPK back into the soil because the top soil in the USofA is pretty much dead....

The net result is making corn into fuel is too dam expensive to do anyone any good...

Besides after China and India buy up all of our crops with our money Americans won't be able to pay as much for these grains as the Chinese and Indians so we'll all be starving......

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Post by Fred_Vobbe » 08-31-2005 03:06 AM

Perhaps we're making this too complicated.

A disaster like we have in MS, LA, AL combined with another disaster will take down the U.S. economy. Just remember that the money it takes to pay the government for search and rescue will come from somewhere. Can insurance companies pay the bills? What about all the financial ramifications from many businesses which only have paper for assets?

Two more events of this size and magnitude can do it.
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Post by Cherry Kelly » 08-31-2005 09:42 AM

Fred -- let alone the fact that there are MILLIONS of families without homes - jobs - etc. ...and this could go on for months!

- - -
short note - family friend who works in insurance industry - they received a home owners insurance claim on Monday morning. (from New Orleans) -- as if anyone could even get in to assess anything... (BTW most do not carry flood insurance)

---
Oil reserves are being tapped...

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