The strongest economy in the world

**Humbert** · 19-02-2012, 01:31 PM

Originally Posted by Boon Mee

Democrats are touting downward ticks of the formal unemployment rate to 8.3 percent, but Republicans are making an increased effort to highlight the painfully low employment participation rate

So, a downward movement in the unemployment rate from almost 10% to 8.3% is a bad thing, right booners? You really are living in a bubble.

**robuzo** · 19-02-2012, 06:39 PM

The Republicans would happily sabotage any improvement in the economy in their effort to oust Obama.

**spudge** · 19-02-2012, 07:12 PM

Originally Posted by Humbert

So, a downward movement in the unemployment rate from almost 10% to 8.3% is a bad thing, right booners?

It's a terrible thing if one wishes to claim that the economy is currently getting worse; it blows a hole in one of the favoured talking points.

When Bush the lesser took office the US economy was booming and their budget was in surplus. Luckily he went on to prove that deficits don't matter until the next Democratic presidency. yay!

**robuzo** · 19-02-2012, 07:19 PM

Originally Posted by spudge

When Bush the lesser took office the US economy was booming and their budget was in surplus.

This is important to remember. Bush not only tanked the economy, he tanked a really strong economy and is responsible for the deficits that the Thugs now claim will eat our children. Of course, the response from the Bush supporters as to what happened is always the same: "9/11 changed everything." They are scoundrels who use a national tragedy as camouflage for their misdeeds.

**OhOh** · 22-02-2012, 08:58 AM

As US Debt To GDP Passes 101%, The Global Debt Ponzi Enters Its Final Stages | ZeroHedge

"Today, without much fanfare, US debt to GDP hit 101% with the latest issuance of $32 billion in 2 Year Bonds.

If the moment when this ratio went from double to triple digits is still fresh in readers minds, is because it is: total debt hit and surpassed the most recently revised Q4 GDP on January 30, or just three weeks ago. Said otherwise, it has taken the US 21 days to add a full percentage point to this most critical of debt sustainability ratios: but fear not, with just under $1 trillion in new debt issuance on deck in the next 9 months, we will be at 110% in no time. Still, this trend made us curious to see who has been buying (and selling) US debt over the past year.

The results are somewhat surprising. As the chart below, which highlights some of the biggest and most notable holders of US paper, shows, in the period December 31, 2010 to December 31, 2011, there have been two very distinct shifts: those who are going all in on the ponzi, and those who are gradually shifting away from the greenback, and just as quietly, and without much fanfare of their own, reinvesting their trade surplus in something distinctly other than US paper. The latter two: China and Russia, as we have noted in the past. Yet these are more than offset by... well, we'll let the readers look at the chart below based on TIC data and figure out it.

That the Fed is now actively monetizing US debt is beyond dispute (although some semantic holdouts remain - we are quite happy for them). Alas, with China, which has traditionally been the biggest buyer of US paper, no longer buying Treasurys, we are confident that the Fed will have no choice but to be dragged kicking and screaming once again into the fray, especially since traditional buyers of paper, even when allowing for exponential repo market leveraging (and someone please look at what is going on in the BoNY, State Street sponsored $15 trillion quicksand of repo'ed securities, which is the biggest black hole in the shadow banking system and will be the next pillar of the ponzi system to collapse) will be unable to keep up with US issuance. Especially since Primary Dealers already saw their Treasury holding rise to an all time high in the past week, and are loaded to the gills with US paper. So who is buying? Why Japan and the UK.

Japan and the UK? Hmm, if these two names sound oddly familiar, allow us to refresh one's memory. Behold the pristine leverage condition of both these two countries, in all its glory.

Hint: look at the far left.

So somehow the world's two most indebted countries (recall that Japan is about to in total pass 1 quadrillion debt) are out there and buying up the biggest amount of US debt (after the Fed of course)? Sorry, but while we are amusing by this attempt by the global ponzi regime to keep itself alive (even as Russia and China prudently step aside from the mauling that is sure to follow), whereby the most indebted nations keep buying each other's debt in the most transparent and potentially deadly shell game in history, we are also confident this is unsustainable. Which means the Fed will have no choice but to step in. And since when it comes to the capital markets, the ride up is over since we have now crossed the point where incremental profits are drowned by incremental input costs (thank you $106 WTI), the Fed now has just one mandate: to keep the US fiscal machine well-greased by buying up US debt at zero (and beginning in May negative) rates, through wanton monetization. 2012 may prove to be quite eventful after all."

**Boon Mee** · 25-02-2012, 06:57 AM

The Moonbats are getting nervous:

Pelosi 2008: Bush to Blame for High Gas Prices; Pelosi 2012: Wall Street to Blame for High Gas Prices

What recovery, eh?

**sabang** · 25-02-2012, 07:17 AM

It is ludicrous for any government figure to point the bone elsewhere about high gas prices, given the current escalation of sanctions against Iran- which had the predictable effect of causing gas prices to shoot up. It seems they'll do anything inside the Beltway to kowtow to those Hebrews, at any cost to our financial, diplomatic and security interests.

**barbaro** · 25-02-2012, 08:14 PM

Gas prices & unemployment and everything else.

Presidents and politicians cannot change it for the better or worse.

Wast of time discussing.

**OhOh** · 25-02-2012, 08:55 PM

The US Oil reserve is at record levels, one might see a calculated easing of storage to cut petrol prices before the election.

Maggie did the same before the last miners strike.

**Boon Mee** · 28-02-2012, 06:16 AM

Originally Posted by Humbert

Originally Posted by Boon Mee

Democrats are touting downward ticks of the formal unemployment rate to 8.3 percent, but Republicans are making an increased effort to highlight the painfully low employment participation rate

So, a downward movement in the unemployment rate from almost 10% to 8.3% is a bad thing, right booners? You really are living in a bubble.

It's only 'downward' because of the folks that have opted out of the work force. Real unemployment figures are much higher than 8.3%...

**Boon Mee** · 01-03-2012, 07:43 AM

Poll: Only 27% of Americans Favor Keynesian Economics, 50% Prefer Free-Market.

In 1970, former President Richard Nixon famously declared “We are all Keynesians now,” citing the depression-era belief that a government-managed economy performs better than it’s free-market counterpart.
Forty years later, a new poll calls his bluff.
The Rasmussen Report survey, which came out Wednesday, shows only 27 percent of Americans believe government management stimulates the economy. Half of Americans take the opposite view and say government intervention does more harm than good. Six percent say it has no impact and 17 percent polled said they were unsure.
In the era of auto bailouts, debt ceilings and Dodd-Frank reform, government intervention appears to be the Obama administration’s solution of choice, opening a deep, partisan gap between those who support intervention and those who do not.

Keynesian Economics Goes Out of Style for Americans - Washington Whispers (usnews.com)

That's right - intervention does not work...

**OhOh** · 01-03-2012, 05:19 PM

China holdings of US debt at $1.15 trillion

"China cut its holdings of US debt by $118 billion as its own reserves fell in the fourth quarter, newly revised US Treasury figures showed Wednesday.
China's holdings of US Treasury securities fell 9.3 percent from September to December to $1.1529 trillion -- with most of the fall coming apparently in the final month of the quarter, according to the revised Treasury data.

In addition, US Treasury bonds held by Chinese territory Hong Kong totalled $121.7 billion in December, up $10.1 billion from September.

The new data showed Japan closing in on China's ranking as the top foreign investor in US debt.

Japan's Treasuries holdings rose 7.5 percent in the quarter to $1.0582 trillion.

The drop in China's share paralleled a sharp fall in China's overall foreign exchange reserves late last year.

In January, Beijing reported its total foreign exchange reserves, including US debt, fell to $3.18 trillion at the end of December from a peak of $3.27 trillion in October.

The fall came as its trade surplus began to narrow and as capital moved out of the country amid expectations that the yuan's appreciation against the dollar would ease"

No problems there then.

**sabang** · 01-03-2012, 07:16 PM

Originally Posted by Boon Mee

intervention does not work

I'll be sure to tell them that in Detroit.
No point telling the Big Banks, they already know.

**mikesch4ever** · 01-03-2012, 07:30 PM

look at us history. roosevelt did a great job by intervening after the depression, bush fucked up the country by laissez faire, no bank regulations etc.

**Minnie Maugham** · 02-03-2012, 12:03 AM

^ Bank regs? You been like Frank-Dodd? Did I hear right that Fannie is back at the public trough for more money after more major losses?

**OhOh** · 03-03-2012, 05:05 AM

Where have you seen this graph before?

Apple stock price or food stamp recipients?

**Boon Mee** · 04-03-2012, 06:02 AM

Definition of Irony

Isn't It Ironic? The food stamp program, part of the Department of Agriculture, is pleased to be distributing the greatest amount of food stamps ever.

Meanwhile, the Park Service, also part of the Department of Agriculture, asks us to "please do not feed the animals" because they may grow dependent and not learn to take care of themselves.

Strong economy, eh?

**barbaro** · 06-03-2012, 09:35 PM

^ Not a strong economy, Boon.

We agree on that.

I'd like to hear from Storekeeper, who started this thread.

Hmm....he's not around.

**sabang** · 08-03-2012, 07:45 AM

It is a sad statistic to see so many Americans on food stamps, but there is something even sadder about it- many of those US citizens on food stamps (the modern version of soup kitchens) are already employed, but they are being paid so abysmally that they still need government food stamps to survive decently. That is just appalling, and utterly unacceptable in a first world country, which as it happens is the worlds premier economy. See my "Marx was Right" thread.

**misskit** · 08-03-2012, 07:53 AM

^So true. These jobs at likes of Walmart pay so low the employees are forced to use food stamps to feed themselves and their families. Pushes them into Medicaid too. Makes me sick.

Then we have the conservatives angry because so may people get benefits. I just don't understand them. Why can't they see? Why do they think these corporations are the greatest when they have pushed so many people onto benefits?

**OhOh** · 08-03-2012, 07:56 AM

^It's what happens when big business don't seem to want employees to be paid a wage for a days work but rely on government schemes to enable the survival of the slaves.

Some people in the UK are being forced to accept "work" in exchange for bus fares. Even though there are minimum wage laws. The carrot is the people retain their benefits, starvation wage + housing cost, the stick is the benefits are removed if refused.

**Minnie Maugham** · 08-03-2012, 01:40 PM

You gotta love this -- watch the video of this bimbo

LINCOLN PARK, MI (CNN/WDIV) -- A new house and a new car! That's what a Michigan woman bought following a big $1 million lottery win. But the winnings apparently weren't enough to cover her grocery bill. The woman was spotted using a state issued food assistance card to buy food.
Listen to her reasoning. Amanda Clayton says, "Well, I thought that they would cut me off. But since they didn't, I thought maybe it was ok because I'm not working. I won a million but after I took the lump sum, it dropped down to $700,000 and then after taxes it was just a little bit over half." The reporter asks, "Tax payers are really struggling that really need that money. Do you really think you have a right to that money?" Clayton responds, "I mean, I kind of do. I mean, I have no income and I have bills to pay. I have two houses."

$1M lottery winner still on welfare | todaysthv.com

**Humbert** · 08-03-2012, 04:53 PM

^^^As long as the shareholders are happy who gives a damn anyway.

**phomsanuk** · 08-03-2012, 11:51 PM

Originally Posted by barbaro

Gas prices & unemployment and everything else.

Presidents and politicians cannot change it for the better or worse.

Wast of time discussing.

The economy is like a supper tanker, not a nimble speedboat.

**barbaro** · 10-03-2012, 12:23 AM

^ Oversimplification? Please explain? Did I imply the econ as a like a "supper tanker?"

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